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Statutes > Texas > Health-and-safety-code > Title-4-health-facilities > Chapter-283-optional-hospital-district-law-of-1957

HEALTH AND SAFETY CODE

TITLE 4. HEALTH FACILITIES

SUBTITLE D. HOSPITAL DISTRICTS

CHAPTER 283. OPTIONAL HOSPITAL DISTRICT LAW OF 1957

SUBCHAPTER A. CREATION OF DISTRICT

Sec. 283.001. SHORT TITLE. This Act may be cited as the

Optional Hospital District Law of 1957.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.002. DEFINITIONS. In this chapter:

(1) "Board" means the board of hospital managers of a district.

(2) "District" means a hospital district created under this

chapter.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.003. DISTRICT AUTHORIZATION. (a) A county authorized

to establish a hospital district under Article IX, Section 4, of

the Texas Constitution may create a hospital district and provide

for the establishment of a countywide hospital or hospital system

to furnish medical aid and hospital care to indigent and needy

persons residing in the district.

(b) If the county authorized to establish a hospital district

under Article IX, Section 4, of the Texas Constitution owns and

operates a hospital or hospital system for indigent or needy

persons, separately or jointly with a municipality, the

countywide hospital district may take over the hospital or

hospital system to furnish medical aid and hospital care to

indigent and needy persons residing in the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.004. CREATION ELECTION REQUIRED. (a) The district may

be created only if the creation is approved by a majority of the

qualified voters of the county in which the proposed district

will be located who vote at an election called and held for that

purpose.

(b) The commissioners court may order a creation election to be

held on its own motion or on the presentation of a petition for a

creation election signed by at least 100 qualified property

taxpaying voters of the county.

(c) When the commissioners court orders the election, the court

shall determine, subject to Section 283.121(c)(2), a rate of

property tax that produces the amount of tax revenue necessary:

(1) to operate and maintain the proposed district's hospital

system; and

(2) to pay when due the principal of and interest on bonds

assumed by the district.

(d) The election shall be held on the first authorized uniform

election date prescribed by the Election Code that allows

sufficient time to comply with other requirements of law.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.005. BALLOT PROPOSITIONS. (a) Except as provided by

Subsection (b), the ballot for an election under this subchapter

shall be printed to provide for voting for or against the

proposition: "The creation of a hospital district under the

Optional Hospital District Law of 1957 and the levy of a tax not

to exceed ______ cents (the amount determined by the

commissioners court in the election order) on each $100 of the

taxable value of property taxable by the district."

(b) If the county or a municipality in the county has any

outstanding bonds issued for hospital purposes, the ballot for an

election under this subchapter shall be printed to provide for

voting for or against the proposition: "The creation of a

hospital district, the levy of a tax not to exceed (the amount

determined by the commissioners court in the election order) on

each $100 of the taxable value of property taxable by the

district, and the assumption by the district of all outstanding

bonds previously issued for hospital purposes by ____________

County and by any municipality in the county."

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 283.021. DISTRICT BOARD; OFFICERS. (a) The commissioners

court of a county in which a district is created under this

chapter serves as the district board of hospital managers.

(b) The county judge of the county in which the district is

located serves as the district board chairman.

(c) The county clerk serves as the district board secretary.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.022. COMPENSATION. A board member serves without

compensation other than the compensation provided by law for a

county judge or a commissioner.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.023. RECORD OF BOARD MEETING. The secretary shall keep

a suitable record of each board meeting.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.024. ADMINISTRATOR; DUTIES. (a) The board shall

appoint an administrator for the district. The person must be

qualified by training and experience.

(b) The administrator holds an office for a term of not more

than two years but is subject to removal by the board at any

time.

(c) The administrator is entitled to compensation as determined

by the board.

(d) Before assuming duties, the administrator shall execute a

bond payable to the district in the amount of not less than

$10,000, conditioned on the faithful performance of the

administrator's duties and any other requirements determined by

the board.

(e) Subject to the limitations prescribed by the board, the

administrator shall:

(1) perform duties required by the board;

(2) supervise the work and activities of the district; and

(3) generally direct the affairs of the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.025. ASSISTANT ADMINISTRATOR. (a) If the

administrator is absent or unable to perform any of the

administrator's duties, the board may designate an assistant

administrator to perform any of the administrator's functions or

duties, subject to limitations prescribed by board order.

(b) The assistant administrator and other employees shall

execute a bond as required by board order.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.026. STAFF. (a) The board may hire doctors,

technicians, nurses, and other employees the board considers

advisable for the district's efficient operation.

(b) An employment contract may not exceed two years.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.027. RETIREMENT PROGRAMS. The commissioners court may

include district employees in:

(1) an existing county employees' pension or retirement program;

or

(2) an employees' pension or retirement program established for

the benefit of district employees.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.028. SEAL. The commissioners court's seal is the

district seal. The seal shall be used to authenticate the board's

acts.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER C. GENERAL POWERS AND DUTIES

Sec. 283.041. TRANSFER OF COUNTY AND MUNICIPAL HOSPITAL PROPERTY

AND FUNDS. (a) On the creation of a district under this chapter

and the appointment and qualification of the district board, the

county owning a hospital or hospital system located in the

district, or the county and municipality jointly operating a

hospital or hospital system located in the district, shall

execute and deliver to the district board a written instrument

conveying to the district the title to land, buildings, and

equipment jointly or separately owned by the county or

municipality and used to provide medical services or hospital

care, including geriatric care, to indigent or needy persons of

the county or municipality.

(b) On the creation of a district under this chapter and the

appointment and qualification of the district board, the county

owning the hospital or hospital system, or the county and

municipality jointly operating a hospital or hospital system,

shall, on the receipt of a certificate executed by the board's

chairman stating that a depository for the district has been

chosen and qualified, transfer to the district:

(1) the unspent proceeds of any bonds assumed by the district

under Section 283.043; and

(2) all unspent joint or separate county or municipal funds that

have been established or appropriated by the county or

municipality to support and maintain the hospital facilities for

the year in which the district is created.

(c) Funds transferred to the district under this section may be

used only for a purpose for which the county or the municipality

that transferred the funds could lawfully have used the funds if

the funds had remained the property and funds of the county or

municipality.

(d) As soon as practical after the declaration of the election

results, the county or municipal board of managers shall transfer

to the district board all county and municipal hospital system

records, property, and affairs and shall cease to exist.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.042. ASSUMPTION OF CONTRACT OBLIGATIONS. On the

creation of the district, the district assumes without prejudice

to the rights of third parties any outstanding contract

obligations legally incurred by the county or municipality, or

both, for the construction, support, or maintenance of hospital

facilities before the creation of the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.043. ASSUMPTION OF BONDED INDEBTEDNESS; CANCELLATION OF

UNSOLD MUNICIPAL OR COUNTY BONDS. (a) On the creation of the

district, the district assumes:

(1) any outstanding bonded indebtedness incurred by the county

or municipality, or both, in the acquisition of land, buildings,

and equipment transferred to the district or in the construction

and equipping of hospital facilities; and

(2) any other outstanding bonds issued by the county or

municipality for hospital purposes, the proceeds of which are in

whole or in part unexpended.

(b) A county or municipality in the district that issued bonds

for hospital purposes is no longer liable for the payment of

bonds assumed by the district or for providing interest and

sinking fund requirements on those bonds.

(c) This section does not limit or affect the rights of a

bondholder against the county or municipality if there is a

default in payment of the principal or interest on the bonds in

accordance with their terms.

(d) If the issuance of bonds to provide hospital facilities was

approved at a bond election but the bonds have not been sold on

the date on which the hospital district is created under this

chapter, the bond authority is canceled and the bonds may not be

sold.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.044. LIMITATION ON TAXING POWER BY GOVERNMENTAL ENTITY;

DISPOSITION OF DELINQUENT TAXES. (a) On or after the creation

of the district, the county or a municipality located in the

district may not levy taxes for hospital purposes.

(b) The county or a municipality located in the district that

collects delinquent taxes owed to the county or municipality on

levies for county and municipal hospital systems or for the

payment of bonds issued for the systems shall pay the amount of

the collected delinquent taxes to the district, and the district

shall apply that money to the purposes for which the taxes were

originally levied.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.045. DISTRICT RESPONSIBILITY FOR MEDICAL AID AND

HOSPITAL CARE. The district assumes full responsibility for

furnishing medical and hospital care for indigent and needy

persons residing in the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.046. MANAGEMENT, CONTROL, AND ADMINISTRATION. The

board shall manage, control, and administer the hospital or

hospital system of the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.047. DISTRICT RULES. The board may adopt rules

governing the operation of the hospital or hospital system.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.048. PURCHASING AND ACCOUNTING METHODS AND PROCEDURES.

(a) The commissioners court may prescribe:

(1) the method of making purchases and expenditures by and for

the district; and

(2) accounting and control procedures for the district.

(b) A county officer, employee, or agent shall perform any

function or service required by the commissioners court under

this section.

(c) The district shall pay salaries and expenses necessarily

incurred by the county or by a county officer or agent in

performing a duty prescribed or required under this section.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.049. DISTRICT INSPECTIONS. (a) The district

facilities may be inspected by a representative of the Texas

Board of Health or any other state board authorized to supervise

a hospital.

(b) A resident district officer shall:

(1) admit an inspector into the district facilities; and

(2) on demand give the inspector access to records, reports,

books, papers, and accounts related to the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.050. EMINENT DOMAIN. (a) The district may exercise

the power of eminent domain to acquire by condemnation a fee

simple or other interest in real, personal, or mixed property

located in the district if the property interest is necessary or

convenient for the exercise of the rights or authority conferred

on the district by this chapter.

(b) The district must exercise the power of eminent domain in

the manner provided by Chapter 21, Property Code, but the

district is not required to deposit in the trial court money or a

bond as provided by Section 21.021(a), Property Code.

(c) In a condemnation proceeding brought by the district, the

district is not required to:

(1) pay in advance or give bond or other security for costs in

the trial court;

(2) give bond for the issuance of a temporary restraining order

or a temporary injunction; or

(3) give bond for costs or supersedeas on an appeal or writ of

error.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.051. GIFTS AND ENDOWMENTS. (a) On behalf of the

district, the board may accept gifts and endowments to be held in

trust and administered by the board for the purposes and under

the directions, limitations, or provisions prescribed in writing

by the donor that are consistent with the proper management of

the district.

(b) The board may contract with the state to receive a payment

or grant provided by the state for the care or treatment of

hospital patients or patients in district facilities.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.052. AUTHORITY TO SUE AND BE SUED; LEGAL

REPRESENTATION. (a) The board may sue and be sued.

(b) The county attorney, district attorney, or criminal district

attorney, as appropriate, with the duty to represent the county

in civil matters shall represent the district in all legal

matters.

(c) The board may employ additional legal counsel when the board

determines that additional counsel is advisable.

(d) The district shall contribute sufficient funds to the

general fund of the county for the account of the budget of the

county attorney, district attorney, or criminal district

attorney, as appropriate, to pay all additional salaries and

expenses incurred by that officer in performing the duties

required by the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER D. MEDICAL TREATMENT AND CARE

Sec. 283.071. ADMISSION CRITERIA AND PAYMENT; CRIMINAL PENALTY.

(a) The board shall enter an order in district records defining

"indigent or needy person" for the purpose of determining

qualifications for admission to district hospital facilities.

(b) An order under Subsection (a) must detail the criteria for

an emergency admission to district facilities without regard to

indigency and for the length and basis of the stay at the

facility.

(c) The board may require evidence of indigency that it

considers appropriate, including an affidavit of inability to

pay.

(d) The board may hire personnel necessary to determine the

eligibility of an applicant for admission to district facilities

and to process admissions.

(e) A person commits an offense if the person is able to pay for

the person's hospital care at a district facility and makes a

false statement for the purpose of obtaining admission to a

district hospital facility. An offense under this subsection is a

misdemeanor and punishable by a fine not to exceed $200.

(f) A person who violates Subsection (e) is also liable for the

cost of the person's hospital care.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER E. DISTRICT FINANCES

Sec. 283.081. BUDGET. (a) The administrator shall prepare an

annual budget.

(b) The budget and all budget revisions shall be approved by the

commissioners court.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.082. ADMINISTRATOR'S REPORT. (a) As soon as

practicable after the close of the fiscal year, the administrator

shall make a report to the commissioners court, Texas Board of

Health, and comptroller.

(b) The report must:

(1) contain a sworn statement of all money and choses in action

received by the administrator and the disposition of the money

and actions; and

(2) detail the operations of the district for the fiscal year.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.083. DEPOSITORY. (a) Not later than the 30th day

after the appointment of the board, the board shall:

(1) select a depository for district funds in the manner

provided by law for the selection of a county depository; or

(2) elect to use the county depository.

(b) If the board selects a depository in accordance with

Subsection (a)(1), the depository shall serve as the district

depository for two years and until its successor is selected and

qualified.

(c) All income of the district shall be deposited in the

district depository.

(d) The county clerk's signature is not required on warrants

against district funds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER F. DISTRICT BONDS

Sec. 283.101. GENERAL OBLIGATION BONDS. The commissioners court

may issue and sell bonds in the district's name and on the

district's faith and credit to acquire, purchase, construct,

equip, or enlarge the hospital or hospital system if:

(1) a tax may be imposed at a rate that:

(A) is sufficient to create an interest and sinking fund to pay

the principal of and interest on the bonds; and

(B) when added to the rates of other taxes imposed by the

district, does not exceed the maximum tax rate of the district;

and

(2) the bonds are authorized by majority vote of the qualified

voters of the district voting at an election held for the

purpose.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.102. BOND ELECTION. (a) A bond election may be held

at any time the commissioners court considers advisable, except

that it may not be held within two years after the date of a

previous election.

(b) The election must be:

(1) ordered and held in accordance with Chapter 1251, Government

Code; and

(2) conducted in the same manner as other countywide elections.

(c) The district shall pay for the cost of the election and

shall provide for payment before the commissioners court orders

the election.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.262, eff. Sept.

1, 2001.

Sec. 283.103. REFUNDING BONDS. (a) Refunding bonds of the

district may be issued to refund outstanding bonded indebtedness

the district has issued or assumed.

(b) The bonds must be issued in the manner provided for other

bonds of the district except that an election to authorize their

issuance is not required.

(c) The refunding bonds may be:

(1) sold and the proceeds applied to the payment of outstanding

bonds; or

(2) exchanged in whole or in part for not less than a similar

principal amount of the outstanding bonds plus the unpaid,

matured interest on those bonds.

(d) The average annual interest cost on the refunding bonds,

computed in accordance with recognized standard bond interest

cost tables, may not exceed the average annual interest cost so

computed on the bonds to be discharged from the proceeds of the

refunding bonds, unless the total interest cost on the refunding

bonds, computed to their respective maturity dates, is less than

the total interest cost so computed on the bonds to be discharged

from those proceeds. In those computations, any premium required

to be paid on the bonds to be refunded as a condition to payment

in advance of their stated maturity dates shall be taken into

account as an addition to the net interest cost to the district

of the refunding bonds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.104. EXECUTION OF BONDS. The county judge of the

county in which the district is created shall execute the bonds

in the name of the district, and the county clerk shall

countersign the bonds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.105. APPROVAL AND REGISTRATION OF BONDS. (a) District

bonds must be approved by the attorney general and registered by

the comptroller subject to the same requirements for approval and

registration of bonds issued by the county.

(b) The attorney general's approval of district bonds has the

same effect as that approval for other bonds issued by the

county.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER G. TAXES

Sec. 283.121. TAX ASSESSMENT AND COLLECTION. (a) If the

district has issued or assumed bonds payable from taxes, the

commissioners court shall impose a tax for the benefit of the

district on all property subject to district taxation.

(b) The commissioners court may impose a tax for:

(1) the entire year in which the district is created;

(2) maintenance and operation of the district; and

(3) improvements and additions to the hospital system.

(c) The total tax rate of the district may not exceed:

(1) the rate authorized by the voters of the district; or

(2) the constitutional tax rate limit.

(d) The tax revenue may be used:

(1) to create an interest and sinking fund for bonds that may be

assumed or issued by the district for hospital purposes in

accordance with this chapter;

(2) to provide for the operation and maintenance of the hospital

or hospital system; and

(3) to make improvements and additions to the hospital system,

including the acquisition of necessary sites.

(e) The county tax assessor-collector shall collect the tax.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.122. ELECTION TO INCREASE TAX AMOUNT. (a) The tax

rate approved in the creation of the district may be increased

only if the increase is approved by a majority of the qualified

voters of the district who vote in an election called and held

for that purpose.

(b) The commissioners court may order an election to increase

the allowable tax rate to be held on its own motion or on the

presentation of a petition for an election signed by at least 100

qualified property taxpaying voters of the district.

(c) When the commissioners court orders the election, the court

shall determine the amount of tax necessary for the proper

maintenance of the hospital district.

(d) The election shall be held on the first authorized uniform

election date prescribed by the Election Code that allows

sufficient time to comply with the other requirements of law and

that occurs at least 30 days after the date on which the court

orders the election.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.123. BALLOT PROPOSITION FOR TAX INCREASE. The ballot

for a tax increase under this subchapter shall be printed to

provide for voting for or against the proposition: "The increase

of the hospital district tax from (the existing tax levy) to (the

amount of existing tax plus the increase determined by the

commissioners court in its order calling the election) on each

$100 of the taxable value of property taxable by the district."

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER H. DISTRICT CONVERSION

Sec. 283.131. DISTRICT CONVERSION AUTHORITY. A hospital

district created in accordance with Chapter 281 may be converted

into a district subject to this chapter, or a district created in

accordance with this chapter may be converted into a district

subject to Chapter 281.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.132. CONVERSION ELECTION REQUIRED. (a) A district may

be converted under this subchapter only if the conversion is

approved by a majority of the qualified voters of the county in

which the district is located who vote at an election called and

held for that purpose.

(b) The commissioners court shall order a conversion election

not later than the 20th day after the date of presentation of a

petition for conversion signed by at least five percent of the

qualified property taxpaying voters of the county.

(c) If the election is on the question of conversion of a

district created in accordance with Chapter 281, when the

commissioners court orders the election, the court shall

determine the amount of tax necessary:

(1) to operate and maintain the district's hospital system;

(2) to make improvements and additions to the hospital system,

including the acquisition of necessary sites; and

(3) to pay when due the principal of and interest on district

bonds assumed by the original district but excluding bonds issued

by the original district.

(d) The election shall be held on the first authorized uniform

election date prescribed by the Election Code that allows

sufficient time to comply with other requirements of law and that

occurs at least 30 days after the date on which the court orders

the election.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.133. BALLOT PROPOSITIONS. (a) The ballot for the

election held to determine the question of conversion of a

district created under this chapter shall be printed to provide

for voting for or against the proposition: "The conversion of the

hospital district from a district operated under the Optional

Hospital District Law of 1957 to a district operated under

Chapter 281, Health and Safety Code, and the levy of a tax not to

exceed 75 cents on each $100 of the taxable value of property

taxable by the district."

(b) The ballot for an election held to determine the question of

conversion of a district created in accordance with Chapter 281,

if no bonds issued by the district are outstanding, shall be

printed to provide for voting for or against the proposition:

"The conversion of the hospital district from a district operated

under Chapter 281, Health and Safety Code, to a district operated

under the Optional Hospital District Law of 1957, and the levy of

a tax not to exceed (the amount determined by the commissioners

court in the election order) on each $100 of the taxable value of

property taxable by the district."

(c) The ballot for an election held to determine the question of

conversion of a district created in accordance with Chapter 281,

if bonds issued by the district are outstanding, shall be printed

to provide for voting for or against the proposition: "The

conversion of the hospital district from a district operated

under Chapter 281, Health and Safety Code, to a district operated

under the Optional Hospital District Law of 1957, and the levy of

a tax not to exceed 75 cents on each $100 of the taxable value of

property taxable by the district until presently outstanding

bonds issued by the district have been retired, and thereafter

the levy of a tax not to exceed (the amount determined by the

commissioners court in the election order) on each $100 of the

taxable value of property taxable by the district."

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.134. EFFECTIVE DATE OF CONVERSION. If a majority of

the qualified voters participating in the election vote in favor

of the proposition, the conversion becomes effective on the 30th

day after the date that the election results are declared.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.135. EFFECT OF CONVERSION. (a) The district's

identity is not affected by the conversion, and the district is

liable for all outstanding debts and obligations assumed or

incurred by the district.

(b) Any bonds voted by a district originally created under

Chapter 281 which have not been issued on the date of the

conversion election may not be issued.

(c) On conversion of a district from one operated under Chapter

281 to one operated under this chapter, the district may not

impose a tax in excess of the amount determined by the

commissioners court in the election order for any purposes other

than to pay the principal of and interest on the unpaid bonds

issued by the district before the date of conversion.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.136. LIMITATION ON FURTHER ELECTIONS. (a) If the

proposition fails to carry at the conversion election, the

district may not hold another election on the proposition for two

years after the date of the election.

(b) A district that has converted under this subchapter may hold

an election for reconversion after five years after the date of

the conversion. The election for reconversion must be held in the

same manner as provided in this subchapter for the conversion.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

State Codes and Statutes

Statutes > Texas > Health-and-safety-code > Title-4-health-facilities > Chapter-283-optional-hospital-district-law-of-1957

HEALTH AND SAFETY CODE

TITLE 4. HEALTH FACILITIES

SUBTITLE D. HOSPITAL DISTRICTS

CHAPTER 283. OPTIONAL HOSPITAL DISTRICT LAW OF 1957

SUBCHAPTER A. CREATION OF DISTRICT

Sec. 283.001. SHORT TITLE. This Act may be cited as the

Optional Hospital District Law of 1957.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.002. DEFINITIONS. In this chapter:

(1) "Board" means the board of hospital managers of a district.

(2) "District" means a hospital district created under this

chapter.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.003. DISTRICT AUTHORIZATION. (a) A county authorized

to establish a hospital district under Article IX, Section 4, of

the Texas Constitution may create a hospital district and provide

for the establishment of a countywide hospital or hospital system

to furnish medical aid and hospital care to indigent and needy

persons residing in the district.

(b) If the county authorized to establish a hospital district

under Article IX, Section 4, of the Texas Constitution owns and

operates a hospital or hospital system for indigent or needy

persons, separately or jointly with a municipality, the

countywide hospital district may take over the hospital or

hospital system to furnish medical aid and hospital care to

indigent and needy persons residing in the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.004. CREATION ELECTION REQUIRED. (a) The district may

be created only if the creation is approved by a majority of the

qualified voters of the county in which the proposed district

will be located who vote at an election called and held for that

purpose.

(b) The commissioners court may order a creation election to be

held on its own motion or on the presentation of a petition for a

creation election signed by at least 100 qualified property

taxpaying voters of the county.

(c) When the commissioners court orders the election, the court

shall determine, subject to Section 283.121(c)(2), a rate of

property tax that produces the amount of tax revenue necessary:

(1) to operate and maintain the proposed district's hospital

system; and

(2) to pay when due the principal of and interest on bonds

assumed by the district.

(d) The election shall be held on the first authorized uniform

election date prescribed by the Election Code that allows

sufficient time to comply with other requirements of law.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.005. BALLOT PROPOSITIONS. (a) Except as provided by

Subsection (b), the ballot for an election under this subchapter

shall be printed to provide for voting for or against the

proposition: "The creation of a hospital district under the

Optional Hospital District Law of 1957 and the levy of a tax not

to exceed ______ cents (the amount determined by the

commissioners court in the election order) on each $100 of the

taxable value of property taxable by the district."

(b) If the county or a municipality in the county has any

outstanding bonds issued for hospital purposes, the ballot for an

election under this subchapter shall be printed to provide for

voting for or against the proposition: "The creation of a

hospital district, the levy of a tax not to exceed (the amount

determined by the commissioners court in the election order) on

each $100 of the taxable value of property taxable by the

district, and the assumption by the district of all outstanding

bonds previously issued for hospital purposes by ____________

County and by any municipality in the county."

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 283.021. DISTRICT BOARD; OFFICERS. (a) The commissioners

court of a county in which a district is created under this

chapter serves as the district board of hospital managers.

(b) The county judge of the county in which the district is

located serves as the district board chairman.

(c) The county clerk serves as the district board secretary.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.022. COMPENSATION. A board member serves without

compensation other than the compensation provided by law for a

county judge or a commissioner.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.023. RECORD OF BOARD MEETING. The secretary shall keep

a suitable record of each board meeting.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.024. ADMINISTRATOR; DUTIES. (a) The board shall

appoint an administrator for the district. The person must be

qualified by training and experience.

(b) The administrator holds an office for a term of not more

than two years but is subject to removal by the board at any

time.

(c) The administrator is entitled to compensation as determined

by the board.

(d) Before assuming duties, the administrator shall execute a

bond payable to the district in the amount of not less than

$10,000, conditioned on the faithful performance of the

administrator's duties and any other requirements determined by

the board.

(e) Subject to the limitations prescribed by the board, the

administrator shall:

(1) perform duties required by the board;

(2) supervise the work and activities of the district; and

(3) generally direct the affairs of the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.025. ASSISTANT ADMINISTRATOR. (a) If the

administrator is absent or unable to perform any of the

administrator's duties, the board may designate an assistant

administrator to perform any of the administrator's functions or

duties, subject to limitations prescribed by board order.

(b) The assistant administrator and other employees shall

execute a bond as required by board order.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.026. STAFF. (a) The board may hire doctors,

technicians, nurses, and other employees the board considers

advisable for the district's efficient operation.

(b) An employment contract may not exceed two years.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.027. RETIREMENT PROGRAMS. The commissioners court may

include district employees in:

(1) an existing county employees' pension or retirement program;

or

(2) an employees' pension or retirement program established for

the benefit of district employees.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.028. SEAL. The commissioners court's seal is the

district seal. The seal shall be used to authenticate the board's

acts.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER C. GENERAL POWERS AND DUTIES

Sec. 283.041. TRANSFER OF COUNTY AND MUNICIPAL HOSPITAL PROPERTY

AND FUNDS. (a) On the creation of a district under this chapter

and the appointment and qualification of the district board, the

county owning a hospital or hospital system located in the

district, or the county and municipality jointly operating a

hospital or hospital system located in the district, shall

execute and deliver to the district board a written instrument

conveying to the district the title to land, buildings, and

equipment jointly or separately owned by the county or

municipality and used to provide medical services or hospital

care, including geriatric care, to indigent or needy persons of

the county or municipality.

(b) On the creation of a district under this chapter and the

appointment and qualification of the district board, the county

owning the hospital or hospital system, or the county and

municipality jointly operating a hospital or hospital system,

shall, on the receipt of a certificate executed by the board's

chairman stating that a depository for the district has been

chosen and qualified, transfer to the district:

(1) the unspent proceeds of any bonds assumed by the district

under Section 283.043; and

(2) all unspent joint or separate county or municipal funds that

have been established or appropriated by the county or

municipality to support and maintain the hospital facilities for

the year in which the district is created.

(c) Funds transferred to the district under this section may be

used only for a purpose for which the county or the municipality

that transferred the funds could lawfully have used the funds if

the funds had remained the property and funds of the county or

municipality.

(d) As soon as practical after the declaration of the election

results, the county or municipal board of managers shall transfer

to the district board all county and municipal hospital system

records, property, and affairs and shall cease to exist.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.042. ASSUMPTION OF CONTRACT OBLIGATIONS. On the

creation of the district, the district assumes without prejudice

to the rights of third parties any outstanding contract

obligations legally incurred by the county or municipality, or

both, for the construction, support, or maintenance of hospital

facilities before the creation of the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.043. ASSUMPTION OF BONDED INDEBTEDNESS; CANCELLATION OF

UNSOLD MUNICIPAL OR COUNTY BONDS. (a) On the creation of the

district, the district assumes:

(1) any outstanding bonded indebtedness incurred by the county

or municipality, or both, in the acquisition of land, buildings,

and equipment transferred to the district or in the construction

and equipping of hospital facilities; and

(2) any other outstanding bonds issued by the county or

municipality for hospital purposes, the proceeds of which are in

whole or in part unexpended.

(b) A county or municipality in the district that issued bonds

for hospital purposes is no longer liable for the payment of

bonds assumed by the district or for providing interest and

sinking fund requirements on those bonds.

(c) This section does not limit or affect the rights of a

bondholder against the county or municipality if there is a

default in payment of the principal or interest on the bonds in

accordance with their terms.

(d) If the issuance of bonds to provide hospital facilities was

approved at a bond election but the bonds have not been sold on

the date on which the hospital district is created under this

chapter, the bond authority is canceled and the bonds may not be

sold.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.044. LIMITATION ON TAXING POWER BY GOVERNMENTAL ENTITY;

DISPOSITION OF DELINQUENT TAXES. (a) On or after the creation

of the district, the county or a municipality located in the

district may not levy taxes for hospital purposes.

(b) The county or a municipality located in the district that

collects delinquent taxes owed to the county or municipality on

levies for county and municipal hospital systems or for the

payment of bonds issued for the systems shall pay the amount of

the collected delinquent taxes to the district, and the district

shall apply that money to the purposes for which the taxes were

originally levied.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.045. DISTRICT RESPONSIBILITY FOR MEDICAL AID AND

HOSPITAL CARE. The district assumes full responsibility for

furnishing medical and hospital care for indigent and needy

persons residing in the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.046. MANAGEMENT, CONTROL, AND ADMINISTRATION. The

board shall manage, control, and administer the hospital or

hospital system of the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.047. DISTRICT RULES. The board may adopt rules

governing the operation of the hospital or hospital system.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.048. PURCHASING AND ACCOUNTING METHODS AND PROCEDURES.

(a) The commissioners court may prescribe:

(1) the method of making purchases and expenditures by and for

the district; and

(2) accounting and control procedures for the district.

(b) A county officer, employee, or agent shall perform any

function or service required by the commissioners court under

this section.

(c) The district shall pay salaries and expenses necessarily

incurred by the county or by a county officer or agent in

performing a duty prescribed or required under this section.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.049. DISTRICT INSPECTIONS. (a) The district

facilities may be inspected by a representative of the Texas

Board of Health or any other state board authorized to supervise

a hospital.

(b) A resident district officer shall:

(1) admit an inspector into the district facilities; and

(2) on demand give the inspector access to records, reports,

books, papers, and accounts related to the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.050. EMINENT DOMAIN. (a) The district may exercise

the power of eminent domain to acquire by condemnation a fee

simple or other interest in real, personal, or mixed property

located in the district if the property interest is necessary or

convenient for the exercise of the rights or authority conferred

on the district by this chapter.

(b) The district must exercise the power of eminent domain in

the manner provided by Chapter 21, Property Code, but the

district is not required to deposit in the trial court money or a

bond as provided by Section 21.021(a), Property Code.

(c) In a condemnation proceeding brought by the district, the

district is not required to:

(1) pay in advance or give bond or other security for costs in

the trial court;

(2) give bond for the issuance of a temporary restraining order

or a temporary injunction; or

(3) give bond for costs or supersedeas on an appeal or writ of

error.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.051. GIFTS AND ENDOWMENTS. (a) On behalf of the

district, the board may accept gifts and endowments to be held in

trust and administered by the board for the purposes and under

the directions, limitations, or provisions prescribed in writing

by the donor that are consistent with the proper management of

the district.

(b) The board may contract with the state to receive a payment

or grant provided by the state for the care or treatment of

hospital patients or patients in district facilities.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.052. AUTHORITY TO SUE AND BE SUED; LEGAL

REPRESENTATION. (a) The board may sue and be sued.

(b) The county attorney, district attorney, or criminal district

attorney, as appropriate, with the duty to represent the county

in civil matters shall represent the district in all legal

matters.

(c) The board may employ additional legal counsel when the board

determines that additional counsel is advisable.

(d) The district shall contribute sufficient funds to the

general fund of the county for the account of the budget of the

county attorney, district attorney, or criminal district

attorney, as appropriate, to pay all additional salaries and

expenses incurred by that officer in performing the duties

required by the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER D. MEDICAL TREATMENT AND CARE

Sec. 283.071. ADMISSION CRITERIA AND PAYMENT; CRIMINAL PENALTY.

(a) The board shall enter an order in district records defining

"indigent or needy person" for the purpose of determining

qualifications for admission to district hospital facilities.

(b) An order under Subsection (a) must detail the criteria for

an emergency admission to district facilities without regard to

indigency and for the length and basis of the stay at the

facility.

(c) The board may require evidence of indigency that it

considers appropriate, including an affidavit of inability to

pay.

(d) The board may hire personnel necessary to determine the

eligibility of an applicant for admission to district facilities

and to process admissions.

(e) A person commits an offense if the person is able to pay for

the person's hospital care at a district facility and makes a

false statement for the purpose of obtaining admission to a

district hospital facility. An offense under this subsection is a

misdemeanor and punishable by a fine not to exceed $200.

(f) A person who violates Subsection (e) is also liable for the

cost of the person's hospital care.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER E. DISTRICT FINANCES

Sec. 283.081. BUDGET. (a) The administrator shall prepare an

annual budget.

(b) The budget and all budget revisions shall be approved by the

commissioners court.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.082. ADMINISTRATOR'S REPORT. (a) As soon as

practicable after the close of the fiscal year, the administrator

shall make a report to the commissioners court, Texas Board of

Health, and comptroller.

(b) The report must:

(1) contain a sworn statement of all money and choses in action

received by the administrator and the disposition of the money

and actions; and

(2) detail the operations of the district for the fiscal year.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.083. DEPOSITORY. (a) Not later than the 30th day

after the appointment of the board, the board shall:

(1) select a depository for district funds in the manner

provided by law for the selection of a county depository; or

(2) elect to use the county depository.

(b) If the board selects a depository in accordance with

Subsection (a)(1), the depository shall serve as the district

depository for two years and until its successor is selected and

qualified.

(c) All income of the district shall be deposited in the

district depository.

(d) The county clerk's signature is not required on warrants

against district funds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER F. DISTRICT BONDS

Sec. 283.101. GENERAL OBLIGATION BONDS. The commissioners court

may issue and sell bonds in the district's name and on the

district's faith and credit to acquire, purchase, construct,

equip, or enlarge the hospital or hospital system if:

(1) a tax may be imposed at a rate that:

(A) is sufficient to create an interest and sinking fund to pay

the principal of and interest on the bonds; and

(B) when added to the rates of other taxes imposed by the

district, does not exceed the maximum tax rate of the district;

and

(2) the bonds are authorized by majority vote of the qualified

voters of the district voting at an election held for the

purpose.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.102. BOND ELECTION. (a) A bond election may be held

at any time the commissioners court considers advisable, except

that it may not be held within two years after the date of a

previous election.

(b) The election must be:

(1) ordered and held in accordance with Chapter 1251, Government

Code; and

(2) conducted in the same manner as other countywide elections.

(c) The district shall pay for the cost of the election and

shall provide for payment before the commissioners court orders

the election.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.262, eff. Sept.

1, 2001.

Sec. 283.103. REFUNDING BONDS. (a) Refunding bonds of the

district may be issued to refund outstanding bonded indebtedness

the district has issued or assumed.

(b) The bonds must be issued in the manner provided for other

bonds of the district except that an election to authorize their

issuance is not required.

(c) The refunding bonds may be:

(1) sold and the proceeds applied to the payment of outstanding

bonds; or

(2) exchanged in whole or in part for not less than a similar

principal amount of the outstanding bonds plus the unpaid,

matured interest on those bonds.

(d) The average annual interest cost on the refunding bonds,

computed in accordance with recognized standard bond interest

cost tables, may not exceed the average annual interest cost so

computed on the bonds to be discharged from the proceeds of the

refunding bonds, unless the total interest cost on the refunding

bonds, computed to their respective maturity dates, is less than

the total interest cost so computed on the bonds to be discharged

from those proceeds. In those computations, any premium required

to be paid on the bonds to be refunded as a condition to payment

in advance of their stated maturity dates shall be taken into

account as an addition to the net interest cost to the district

of the refunding bonds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.104. EXECUTION OF BONDS. The county judge of the

county in which the district is created shall execute the bonds

in the name of the district, and the county clerk shall

countersign the bonds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.105. APPROVAL AND REGISTRATION OF BONDS. (a) District

bonds must be approved by the attorney general and registered by

the comptroller subject to the same requirements for approval and

registration of bonds issued by the county.

(b) The attorney general's approval of district bonds has the

same effect as that approval for other bonds issued by the

county.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER G. TAXES

Sec. 283.121. TAX ASSESSMENT AND COLLECTION. (a) If the

district has issued or assumed bonds payable from taxes, the

commissioners court shall impose a tax for the benefit of the

district on all property subject to district taxation.

(b) The commissioners court may impose a tax for:

(1) the entire year in which the district is created;

(2) maintenance and operation of the district; and

(3) improvements and additions to the hospital system.

(c) The total tax rate of the district may not exceed:

(1) the rate authorized by the voters of the district; or

(2) the constitutional tax rate limit.

(d) The tax revenue may be used:

(1) to create an interest and sinking fund for bonds that may be

assumed or issued by the district for hospital purposes in

accordance with this chapter;

(2) to provide for the operation and maintenance of the hospital

or hospital system; and

(3) to make improvements and additions to the hospital system,

including the acquisition of necessary sites.

(e) The county tax assessor-collector shall collect the tax.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.122. ELECTION TO INCREASE TAX AMOUNT. (a) The tax

rate approved in the creation of the district may be increased

only if the increase is approved by a majority of the qualified

voters of the district who vote in an election called and held

for that purpose.

(b) The commissioners court may order an election to increase

the allowable tax rate to be held on its own motion or on the

presentation of a petition for an election signed by at least 100

qualified property taxpaying voters of the district.

(c) When the commissioners court orders the election, the court

shall determine the amount of tax necessary for the proper

maintenance of the hospital district.

(d) The election shall be held on the first authorized uniform

election date prescribed by the Election Code that allows

sufficient time to comply with the other requirements of law and

that occurs at least 30 days after the date on which the court

orders the election.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.123. BALLOT PROPOSITION FOR TAX INCREASE. The ballot

for a tax increase under this subchapter shall be printed to

provide for voting for or against the proposition: "The increase

of the hospital district tax from (the existing tax levy) to (the

amount of existing tax plus the increase determined by the

commissioners court in its order calling the election) on each

$100 of the taxable value of property taxable by the district."

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER H. DISTRICT CONVERSION

Sec. 283.131. DISTRICT CONVERSION AUTHORITY. A hospital

district created in accordance with Chapter 281 may be converted

into a district subject to this chapter, or a district created in

accordance with this chapter may be converted into a district

subject to Chapter 281.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.132. CONVERSION ELECTION REQUIRED. (a) A district may

be converted under this subchapter only if the conversion is

approved by a majority of the qualified voters of the county in

which the district is located who vote at an election called and

held for that purpose.

(b) The commissioners court shall order a conversion election

not later than the 20th day after the date of presentation of a

petition for conversion signed by at least five percent of the

qualified property taxpaying voters of the county.

(c) If the election is on the question of conversion of a

district created in accordance with Chapter 281, when the

commissioners court orders the election, the court shall

determine the amount of tax necessary:

(1) to operate and maintain the district's hospital system;

(2) to make improvements and additions to the hospital system,

including the acquisition of necessary sites; and

(3) to pay when due the principal of and interest on district

bonds assumed by the original district but excluding bonds issued

by the original district.

(d) The election shall be held on the first authorized uniform

election date prescribed by the Election Code that allows

sufficient time to comply with other requirements of law and that

occurs at least 30 days after the date on which the court orders

the election.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.133. BALLOT PROPOSITIONS. (a) The ballot for the

election held to determine the question of conversion of a

district created under this chapter shall be printed to provide

for voting for or against the proposition: "The conversion of the

hospital district from a district operated under the Optional

Hospital District Law of 1957 to a district operated under

Chapter 281, Health and Safety Code, and the levy of a tax not to

exceed 75 cents on each $100 of the taxable value of property

taxable by the district."

(b) The ballot for an election held to determine the question of

conversion of a district created in accordance with Chapter 281,

if no bonds issued by the district are outstanding, shall be

printed to provide for voting for or against the proposition:

"The conversion of the hospital district from a district operated

under Chapter 281, Health and Safety Code, to a district operated

under the Optional Hospital District Law of 1957, and the levy of

a tax not to exceed (the amount determined by the commissioners

court in the election order) on each $100 of the taxable value of

property taxable by the district."

(c) The ballot for an election held to determine the question of

conversion of a district created in accordance with Chapter 281,

if bonds issued by the district are outstanding, shall be printed

to provide for voting for or against the proposition: "The

conversion of the hospital district from a district operated

under Chapter 281, Health and Safety Code, to a district operated

under the Optional Hospital District Law of 1957, and the levy of

a tax not to exceed 75 cents on each $100 of the taxable value of

property taxable by the district until presently outstanding

bonds issued by the district have been retired, and thereafter

the levy of a tax not to exceed (the amount determined by the

commissioners court in the election order) on each $100 of the

taxable value of property taxable by the district."

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.134. EFFECTIVE DATE OF CONVERSION. If a majority of

the qualified voters participating in the election vote in favor

of the proposition, the conversion becomes effective on the 30th

day after the date that the election results are declared.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.135. EFFECT OF CONVERSION. (a) The district's

identity is not affected by the conversion, and the district is

liable for all outstanding debts and obligations assumed or

incurred by the district.

(b) Any bonds voted by a district originally created under

Chapter 281 which have not been issued on the date of the

conversion election may not be issued.

(c) On conversion of a district from one operated under Chapter

281 to one operated under this chapter, the district may not

impose a tax in excess of the amount determined by the

commissioners court in the election order for any purposes other

than to pay the principal of and interest on the unpaid bonds

issued by the district before the date of conversion.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.136. LIMITATION ON FURTHER ELECTIONS. (a) If the

proposition fails to carry at the conversion election, the

district may not hold another election on the proposition for two

years after the date of the election.

(b) A district that has converted under this subchapter may hold

an election for reconversion after five years after the date of

the conversion. The election for reconversion must be held in the

same manner as provided in this subchapter for the conversion.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Health-and-safety-code > Title-4-health-facilities > Chapter-283-optional-hospital-district-law-of-1957

HEALTH AND SAFETY CODE

TITLE 4. HEALTH FACILITIES

SUBTITLE D. HOSPITAL DISTRICTS

CHAPTER 283. OPTIONAL HOSPITAL DISTRICT LAW OF 1957

SUBCHAPTER A. CREATION OF DISTRICT

Sec. 283.001. SHORT TITLE. This Act may be cited as the

Optional Hospital District Law of 1957.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.002. DEFINITIONS. In this chapter:

(1) "Board" means the board of hospital managers of a district.

(2) "District" means a hospital district created under this

chapter.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.003. DISTRICT AUTHORIZATION. (a) A county authorized

to establish a hospital district under Article IX, Section 4, of

the Texas Constitution may create a hospital district and provide

for the establishment of a countywide hospital or hospital system

to furnish medical aid and hospital care to indigent and needy

persons residing in the district.

(b) If the county authorized to establish a hospital district

under Article IX, Section 4, of the Texas Constitution owns and

operates a hospital or hospital system for indigent or needy

persons, separately or jointly with a municipality, the

countywide hospital district may take over the hospital or

hospital system to furnish medical aid and hospital care to

indigent and needy persons residing in the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.004. CREATION ELECTION REQUIRED. (a) The district may

be created only if the creation is approved by a majority of the

qualified voters of the county in which the proposed district

will be located who vote at an election called and held for that

purpose.

(b) The commissioners court may order a creation election to be

held on its own motion or on the presentation of a petition for a

creation election signed by at least 100 qualified property

taxpaying voters of the county.

(c) When the commissioners court orders the election, the court

shall determine, subject to Section 283.121(c)(2), a rate of

property tax that produces the amount of tax revenue necessary:

(1) to operate and maintain the proposed district's hospital

system; and

(2) to pay when due the principal of and interest on bonds

assumed by the district.

(d) The election shall be held on the first authorized uniform

election date prescribed by the Election Code that allows

sufficient time to comply with other requirements of law.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.005. BALLOT PROPOSITIONS. (a) Except as provided by

Subsection (b), the ballot for an election under this subchapter

shall be printed to provide for voting for or against the

proposition: "The creation of a hospital district under the

Optional Hospital District Law of 1957 and the levy of a tax not

to exceed ______ cents (the amount determined by the

commissioners court in the election order) on each $100 of the

taxable value of property taxable by the district."

(b) If the county or a municipality in the county has any

outstanding bonds issued for hospital purposes, the ballot for an

election under this subchapter shall be printed to provide for

voting for or against the proposition: "The creation of a

hospital district, the levy of a tax not to exceed (the amount

determined by the commissioners court in the election order) on

each $100 of the taxable value of property taxable by the

district, and the assumption by the district of all outstanding

bonds previously issued for hospital purposes by ____________

County and by any municipality in the county."

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 283.021. DISTRICT BOARD; OFFICERS. (a) The commissioners

court of a county in which a district is created under this

chapter serves as the district board of hospital managers.

(b) The county judge of the county in which the district is

located serves as the district board chairman.

(c) The county clerk serves as the district board secretary.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.022. COMPENSATION. A board member serves without

compensation other than the compensation provided by law for a

county judge or a commissioner.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.023. RECORD OF BOARD MEETING. The secretary shall keep

a suitable record of each board meeting.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.024. ADMINISTRATOR; DUTIES. (a) The board shall

appoint an administrator for the district. The person must be

qualified by training and experience.

(b) The administrator holds an office for a term of not more

than two years but is subject to removal by the board at any

time.

(c) The administrator is entitled to compensation as determined

by the board.

(d) Before assuming duties, the administrator shall execute a

bond payable to the district in the amount of not less than

$10,000, conditioned on the faithful performance of the

administrator's duties and any other requirements determined by

the board.

(e) Subject to the limitations prescribed by the board, the

administrator shall:

(1) perform duties required by the board;

(2) supervise the work and activities of the district; and

(3) generally direct the affairs of the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.025. ASSISTANT ADMINISTRATOR. (a) If the

administrator is absent or unable to perform any of the

administrator's duties, the board may designate an assistant

administrator to perform any of the administrator's functions or

duties, subject to limitations prescribed by board order.

(b) The assistant administrator and other employees shall

execute a bond as required by board order.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.026. STAFF. (a) The board may hire doctors,

technicians, nurses, and other employees the board considers

advisable for the district's efficient operation.

(b) An employment contract may not exceed two years.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.027. RETIREMENT PROGRAMS. The commissioners court may

include district employees in:

(1) an existing county employees' pension or retirement program;

or

(2) an employees' pension or retirement program established for

the benefit of district employees.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.028. SEAL. The commissioners court's seal is the

district seal. The seal shall be used to authenticate the board's

acts.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER C. GENERAL POWERS AND DUTIES

Sec. 283.041. TRANSFER OF COUNTY AND MUNICIPAL HOSPITAL PROPERTY

AND FUNDS. (a) On the creation of a district under this chapter

and the appointment and qualification of the district board, the

county owning a hospital or hospital system located in the

district, or the county and municipality jointly operating a

hospital or hospital system located in the district, shall

execute and deliver to the district board a written instrument

conveying to the district the title to land, buildings, and

equipment jointly or separately owned by the county or

municipality and used to provide medical services or hospital

care, including geriatric care, to indigent or needy persons of

the county or municipality.

(b) On the creation of a district under this chapter and the

appointment and qualification of the district board, the county

owning the hospital or hospital system, or the county and

municipality jointly operating a hospital or hospital system,

shall, on the receipt of a certificate executed by the board's

chairman stating that a depository for the district has been

chosen and qualified, transfer to the district:

(1) the unspent proceeds of any bonds assumed by the district

under Section 283.043; and

(2) all unspent joint or separate county or municipal funds that

have been established or appropriated by the county or

municipality to support and maintain the hospital facilities for

the year in which the district is created.

(c) Funds transferred to the district under this section may be

used only for a purpose for which the county or the municipality

that transferred the funds could lawfully have used the funds if

the funds had remained the property and funds of the county or

municipality.

(d) As soon as practical after the declaration of the election

results, the county or municipal board of managers shall transfer

to the district board all county and municipal hospital system

records, property, and affairs and shall cease to exist.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.042. ASSUMPTION OF CONTRACT OBLIGATIONS. On the

creation of the district, the district assumes without prejudice

to the rights of third parties any outstanding contract

obligations legally incurred by the county or municipality, or

both, for the construction, support, or maintenance of hospital

facilities before the creation of the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.043. ASSUMPTION OF BONDED INDEBTEDNESS; CANCELLATION OF

UNSOLD MUNICIPAL OR COUNTY BONDS. (a) On the creation of the

district, the district assumes:

(1) any outstanding bonded indebtedness incurred by the county

or municipality, or both, in the acquisition of land, buildings,

and equipment transferred to the district or in the construction

and equipping of hospital facilities; and

(2) any other outstanding bonds issued by the county or

municipality for hospital purposes, the proceeds of which are in

whole or in part unexpended.

(b) A county or municipality in the district that issued bonds

for hospital purposes is no longer liable for the payment of

bonds assumed by the district or for providing interest and

sinking fund requirements on those bonds.

(c) This section does not limit or affect the rights of a

bondholder against the county or municipality if there is a

default in payment of the principal or interest on the bonds in

accordance with their terms.

(d) If the issuance of bonds to provide hospital facilities was

approved at a bond election but the bonds have not been sold on

the date on which the hospital district is created under this

chapter, the bond authority is canceled and the bonds may not be

sold.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.044. LIMITATION ON TAXING POWER BY GOVERNMENTAL ENTITY;

DISPOSITION OF DELINQUENT TAXES. (a) On or after the creation

of the district, the county or a municipality located in the

district may not levy taxes for hospital purposes.

(b) The county or a municipality located in the district that

collects delinquent taxes owed to the county or municipality on

levies for county and municipal hospital systems or for the

payment of bonds issued for the systems shall pay the amount of

the collected delinquent taxes to the district, and the district

shall apply that money to the purposes for which the taxes were

originally levied.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.045. DISTRICT RESPONSIBILITY FOR MEDICAL AID AND

HOSPITAL CARE. The district assumes full responsibility for

furnishing medical and hospital care for indigent and needy

persons residing in the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.046. MANAGEMENT, CONTROL, AND ADMINISTRATION. The

board shall manage, control, and administer the hospital or

hospital system of the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.047. DISTRICT RULES. The board may adopt rules

governing the operation of the hospital or hospital system.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.048. PURCHASING AND ACCOUNTING METHODS AND PROCEDURES.

(a) The commissioners court may prescribe:

(1) the method of making purchases and expenditures by and for

the district; and

(2) accounting and control procedures for the district.

(b) A county officer, employee, or agent shall perform any

function or service required by the commissioners court under

this section.

(c) The district shall pay salaries and expenses necessarily

incurred by the county or by a county officer or agent in

performing a duty prescribed or required under this section.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.049. DISTRICT INSPECTIONS. (a) The district

facilities may be inspected by a representative of the Texas

Board of Health or any other state board authorized to supervise

a hospital.

(b) A resident district officer shall:

(1) admit an inspector into the district facilities; and

(2) on demand give the inspector access to records, reports,

books, papers, and accounts related to the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.050. EMINENT DOMAIN. (a) The district may exercise

the power of eminent domain to acquire by condemnation a fee

simple or other interest in real, personal, or mixed property

located in the district if the property interest is necessary or

convenient for the exercise of the rights or authority conferred

on the district by this chapter.

(b) The district must exercise the power of eminent domain in

the manner provided by Chapter 21, Property Code, but the

district is not required to deposit in the trial court money or a

bond as provided by Section 21.021(a), Property Code.

(c) In a condemnation proceeding brought by the district, the

district is not required to:

(1) pay in advance or give bond or other security for costs in

the trial court;

(2) give bond for the issuance of a temporary restraining order

or a temporary injunction; or

(3) give bond for costs or supersedeas on an appeal or writ of

error.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.051. GIFTS AND ENDOWMENTS. (a) On behalf of the

district, the board may accept gifts and endowments to be held in

trust and administered by the board for the purposes and under

the directions, limitations, or provisions prescribed in writing

by the donor that are consistent with the proper management of

the district.

(b) The board may contract with the state to receive a payment

or grant provided by the state for the care or treatment of

hospital patients or patients in district facilities.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.052. AUTHORITY TO SUE AND BE SUED; LEGAL

REPRESENTATION. (a) The board may sue and be sued.

(b) The county attorney, district attorney, or criminal district

attorney, as appropriate, with the duty to represent the county

in civil matters shall represent the district in all legal

matters.

(c) The board may employ additional legal counsel when the board

determines that additional counsel is advisable.

(d) The district shall contribute sufficient funds to the

general fund of the county for the account of the budget of the

county attorney, district attorney, or criminal district

attorney, as appropriate, to pay all additional salaries and

expenses incurred by that officer in performing the duties

required by the district.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER D. MEDICAL TREATMENT AND CARE

Sec. 283.071. ADMISSION CRITERIA AND PAYMENT; CRIMINAL PENALTY.

(a) The board shall enter an order in district records defining

"indigent or needy person" for the purpose of determining

qualifications for admission to district hospital facilities.

(b) An order under Subsection (a) must detail the criteria for

an emergency admission to district facilities without regard to

indigency and for the length and basis of the stay at the

facility.

(c) The board may require evidence of indigency that it

considers appropriate, including an affidavit of inability to

pay.

(d) The board may hire personnel necessary to determine the

eligibility of an applicant for admission to district facilities

and to process admissions.

(e) A person commits an offense if the person is able to pay for

the person's hospital care at a district facility and makes a

false statement for the purpose of obtaining admission to a

district hospital facility. An offense under this subsection is a

misdemeanor and punishable by a fine not to exceed $200.

(f) A person who violates Subsection (e) is also liable for the

cost of the person's hospital care.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER E. DISTRICT FINANCES

Sec. 283.081. BUDGET. (a) The administrator shall prepare an

annual budget.

(b) The budget and all budget revisions shall be approved by the

commissioners court.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.082. ADMINISTRATOR'S REPORT. (a) As soon as

practicable after the close of the fiscal year, the administrator

shall make a report to the commissioners court, Texas Board of

Health, and comptroller.

(b) The report must:

(1) contain a sworn statement of all money and choses in action

received by the administrator and the disposition of the money

and actions; and

(2) detail the operations of the district for the fiscal year.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.083. DEPOSITORY. (a) Not later than the 30th day

after the appointment of the board, the board shall:

(1) select a depository for district funds in the manner

provided by law for the selection of a county depository; or

(2) elect to use the county depository.

(b) If the board selects a depository in accordance with

Subsection (a)(1), the depository shall serve as the district

depository for two years and until its successor is selected and

qualified.

(c) All income of the district shall be deposited in the

district depository.

(d) The county clerk's signature is not required on warrants

against district funds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER F. DISTRICT BONDS

Sec. 283.101. GENERAL OBLIGATION BONDS. The commissioners court

may issue and sell bonds in the district's name and on the

district's faith and credit to acquire, purchase, construct,

equip, or enlarge the hospital or hospital system if:

(1) a tax may be imposed at a rate that:

(A) is sufficient to create an interest and sinking fund to pay

the principal of and interest on the bonds; and

(B) when added to the rates of other taxes imposed by the

district, does not exceed the maximum tax rate of the district;

and

(2) the bonds are authorized by majority vote of the qualified

voters of the district voting at an election held for the

purpose.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.102. BOND ELECTION. (a) A bond election may be held

at any time the commissioners court considers advisable, except

that it may not be held within two years after the date of a

previous election.

(b) The election must be:

(1) ordered and held in accordance with Chapter 1251, Government

Code; and

(2) conducted in the same manner as other countywide elections.

(c) The district shall pay for the cost of the election and

shall provide for payment before the commissioners court orders

the election.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.262, eff. Sept.

1, 2001.

Sec. 283.103. REFUNDING BONDS. (a) Refunding bonds of the

district may be issued to refund outstanding bonded indebtedness

the district has issued or assumed.

(b) The bonds must be issued in the manner provided for other

bonds of the district except that an election to authorize their

issuance is not required.

(c) The refunding bonds may be:

(1) sold and the proceeds applied to the payment of outstanding

bonds; or

(2) exchanged in whole or in part for not less than a similar

principal amount of the outstanding bonds plus the unpaid,

matured interest on those bonds.

(d) The average annual interest cost on the refunding bonds,

computed in accordance with recognized standard bond interest

cost tables, may not exceed the average annual interest cost so

computed on the bonds to be discharged from the proceeds of the

refunding bonds, unless the total interest cost on the refunding

bonds, computed to their respective maturity dates, is less than

the total interest cost so computed on the bonds to be discharged

from those proceeds. In those computations, any premium required

to be paid on the bonds to be refunded as a condition to payment

in advance of their stated maturity dates shall be taken into

account as an addition to the net interest cost to the district

of the refunding bonds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.104. EXECUTION OF BONDS. The county judge of the

county in which the district is created shall execute the bonds

in the name of the district, and the county clerk shall

countersign the bonds.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.105. APPROVAL AND REGISTRATION OF BONDS. (a) District

bonds must be approved by the attorney general and registered by

the comptroller subject to the same requirements for approval and

registration of bonds issued by the county.

(b) The attorney general's approval of district bonds has the

same effect as that approval for other bonds issued by the

county.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER G. TAXES

Sec. 283.121. TAX ASSESSMENT AND COLLECTION. (a) If the

district has issued or assumed bonds payable from taxes, the

commissioners court shall impose a tax for the benefit of the

district on all property subject to district taxation.

(b) The commissioners court may impose a tax for:

(1) the entire year in which the district is created;

(2) maintenance and operation of the district; and

(3) improvements and additions to the hospital system.

(c) The total tax rate of the district may not exceed:

(1) the rate authorized by the voters of the district; or

(2) the constitutional tax rate limit.

(d) The tax revenue may be used:

(1) to create an interest and sinking fund for bonds that may be

assumed or issued by the district for hospital purposes in

accordance with this chapter;

(2) to provide for the operation and maintenance of the hospital

or hospital system; and

(3) to make improvements and additions to the hospital system,

including the acquisition of necessary sites.

(e) The county tax assessor-collector shall collect the tax.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.122. ELECTION TO INCREASE TAX AMOUNT. (a) The tax

rate approved in the creation of the district may be increased

only if the increase is approved by a majority of the qualified

voters of the district who vote in an election called and held

for that purpose.

(b) The commissioners court may order an election to increase

the allowable tax rate to be held on its own motion or on the

presentation of a petition for an election signed by at least 100

qualified property taxpaying voters of the district.

(c) When the commissioners court orders the election, the court

shall determine the amount of tax necessary for the proper

maintenance of the hospital district.

(d) The election shall be held on the first authorized uniform

election date prescribed by the Election Code that allows

sufficient time to comply with the other requirements of law and

that occurs at least 30 days after the date on which the court

orders the election.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.123. BALLOT PROPOSITION FOR TAX INCREASE. The ballot

for a tax increase under this subchapter shall be printed to

provide for voting for or against the proposition: "The increase

of the hospital district tax from (the existing tax levy) to (the

amount of existing tax plus the increase determined by the

commissioners court in its order calling the election) on each

$100 of the taxable value of property taxable by the district."

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER H. DISTRICT CONVERSION

Sec. 283.131. DISTRICT CONVERSION AUTHORITY. A hospital

district created in accordance with Chapter 281 may be converted

into a district subject to this chapter, or a district created in

accordance with this chapter may be converted into a district

subject to Chapter 281.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.132. CONVERSION ELECTION REQUIRED. (a) A district may

be converted under this subchapter only if the conversion is

approved by a majority of the qualified voters of the county in

which the district is located who vote at an election called and

held for that purpose.

(b) The commissioners court shall order a conversion election

not later than the 20th day after the date of presentation of a

petition for conversion signed by at least five percent of the

qualified property taxpaying voters of the county.

(c) If the election is on the question of conversion of a

district created in accordance with Chapter 281, when the

commissioners court orders the election, the court shall

determine the amount of tax necessary:

(1) to operate and maintain the district's hospital system;

(2) to make improvements and additions to the hospital system,

including the acquisition of necessary sites; and

(3) to pay when due the principal of and interest on district

bonds assumed by the original district but excluding bonds issued

by the original district.

(d) The election shall be held on the first authorized uniform

election date prescribed by the Election Code that allows

sufficient time to comply with other requirements of law and that

occurs at least 30 days after the date on which the court orders

the election.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.133. BALLOT PROPOSITIONS. (a) The ballot for the

election held to determine the question of conversion of a

district created under this chapter shall be printed to provide

for voting for or against the proposition: "The conversion of the

hospital district from a district operated under the Optional

Hospital District Law of 1957 to a district operated under

Chapter 281, Health and Safety Code, and the levy of a tax not to

exceed 75 cents on each $100 of the taxable value of property

taxable by the district."

(b) The ballot for an election held to determine the question of

conversion of a district created in accordance with Chapter 281,

if no bonds issued by the district are outstanding, shall be

printed to provide for voting for or against the proposition:

"The conversion of the hospital district from a district operated

under Chapter 281, Health and Safety Code, to a district operated

under the Optional Hospital District Law of 1957, and the levy of

a tax not to exceed (the amount determined by the commissioners

court in the election order) on each $100 of the taxable value of

property taxable by the district."

(c) The ballot for an election held to determine the question of

conversion of a district created in accordance with Chapter 281,

if bonds issued by the district are outstanding, shall be printed

to provide for voting for or against the proposition: "The

conversion of the hospital district from a district operated

under Chapter 281, Health and Safety Code, to a district operated

under the Optional Hospital District Law of 1957, and the levy of

a tax not to exceed 75 cents on each $100 of the taxable value of

property taxable by the district until presently outstanding

bonds issued by the district have been retired, and thereafter

the levy of a tax not to exceed (the amount determined by the

commissioners court in the election order) on each $100 of the

taxable value of property taxable by the district."

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.134. EFFECTIVE DATE OF CONVERSION. If a majority of

the qualified voters participating in the election vote in favor

of the proposition, the conversion becomes effective on the 30th

day after the date that the election results are declared.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.135. EFFECT OF CONVERSION. (a) The district's

identity is not affected by the conversion, and the district is

liable for all outstanding debts and obligations assumed or

incurred by the district.

(b) Any bonds voted by a district originally created under

Chapter 281 which have not been issued on the date of the

conversion election may not be issued.

(c) On conversion of a district from one operated under Chapter

281 to one operated under this chapter, the district may not

impose a tax in excess of the amount determined by the

commissioners court in the election order for any purposes other

than to pay the principal of and interest on the unpaid bonds

issued by the district before the date of conversion.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 283.136. LIMITATION ON FURTHER ELECTIONS. (a) If the

proposition fails to carry at the conversion election, the

district may not hold another election on the proposition for two

years after the date of the election.

(b) A district that has converted under this subchapter may hold

an election for reconversion after five years after the date of

the conversion. The election for reconversion must be held in the

same manner as provided in this subchapter for the conversion.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.