CHAPTER 287. HEALTH SERVICES DISTRICTS

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HEALTH AND SAFETY CODE

TITLE 4. HEALTH FACILITIES

SUBTITLE D. HOSPITAL DISTRICTS

CHAPTER 287. HEALTH SERVICES DISTRICTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 287.001. DEFINITIONS. In this chapter:

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

(2) "District" means a health services district created under

this chapter.

(3) "Director" means a member of the board.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.002. DISTRICT AUTHORIZATION. A health services

district may be created and established and, if created, must be

maintained, operated, and financed in the manner provided by this

chapter.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER B. CREATION OF DISTRICT

Sec. 287.021. CREATION BY CONCURRENT ORDERS. (a) Except as

provided by Subsection (b), a county or hospital district and one

or more other counties or hospital districts may create a health

services district by adopting concurrent orders.

(b) A county or portion of a county that is in the boundaries of

a hospital district may not be a party to the creation of a

health services district or to a contract with a health services

district. The hospital district that serves the county or portion

of the county may create and contract with the health services

district for the boundaries of the hospital district.

must:

(1) be approved by the governing body of each creating county

and hospital district;

(2) contain identical provisions; and

(3) define the boundaries of the district to be coextensive with

the combined boundaries of each creating county and hospital

district.

(d) A concurrent order to create a health services district

adopted by a hospital district for which the tax rate is set by

the commissioners court of the county in which the hospital

district operates must be approved by the commissioners court of

that county.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.022. CONTRACT TERMS. (a) A county or hospital

district that creates a district under this chapter shall

contract with the district to provide, at a minimum, the health

care services the county or hospital district is required to

provide by law or under the constitution. A contract with a

county or hospital district that created the health services

district under this chapter must:

(1) state the term of the contract, not to exceed six years;

(2) specify the purpose, terms, rights, and duties of the

district, as authorized by this chapter;

(3) specify the financial contributions to be made by each party

to the contract to fund the district, as described by Section

287.024; and

(4) specify the land, buildings, improvements, equipment, and

other assets owned by a party to the contract that the district

will be required to manage and operate.

(b) Chapter 791, Government Code, does not apply to a contract

made under this chapter.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.023. PURPOSE AND DUTIES. (a) A health services

district shall:

(1) provide health care services to indigent residents of the

district;

(2) manage the funds contributed to the district by each county

or hospital district that contracts with the district; and

(3) plan and coordinate with public and private health care

providers and entities for the long-term provision of health care

services to residents of the district.

(b) A health services district may:

(1) provide health care services on a sliding-fee scale to

residents of the district who do not meet the basic income and

resources requirements established under Sections 61.006 and

61.008 to be eligible for assistance under Chapter 61 but who are

unable to pay for the full cost of health care services; and

(2) assume responsibility for management and operation of the

land, buildings, improvements, equipment, and other assets that

are acquired by the district or for which the district agrees to

assume responsibility under the terms of the contract.

(1) establish, conduct, or maintain an institution as defined by

Section 242.002; or

(2) establish or operate a personal care facility as defined by

Section 247.002.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.024. FUNDING. (a) Each county or hospital district

that contracts with the district shall contribute to the district

for its operation:

(1) a specified dollar amount from or a percentage of the

contracting entity's operating budget and reserves if the

contracting entity is a hospital district;

(2) a specified percentage, not less than the percentage

required under Section 61.037 for state assistance, of the

contracting entity's general revenue levy for each state fiscal

year for the term of the contract, if the contracting entity is a

county;

(3) state assistance received under Chapter 61;

(4) federal matching funds received by a hospital district under

the Medicaid disproportionate share program; and

(5) any funds that are:

(A) received under the Agreement Regarding Disposition of

Settlement Proceeds dated July 18, 1998, or July 24, 1998, and

filed in the United States District Court, Eastern District of

Texas, in the case styled The State of Texas v. The American

Tobacco Company, et al., No. 5-96CV-91; and

(B) received on or after the date on which the district is

created and before the district is dissolved.

(b) The district shall maintain an accounting of the funds

received from each county or hospital district that contracts

with the district.

all parties to the contract for district purposes.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER C. DISTRICT ADMINISTRATION

Sec. 287.041. BOARD OF DIRECTORS. (a) A county or hospital

district that creates the district and has a population of

125,000 or more shall appoint one director to the board for every

125,000 persons in the population of the county or hospital

district, rounded to the nearest 125,000.

(b) A county or hospital district that creates the district and

has a population of less than 125,000 may appoint one director to

the board.

shall appoint the directors to the board on behalf of the county.

The board of directors of a hospital district that creates the

district shall appoint the directors to the board on behalf of

the hospital district.

(d) Directors serve staggered two-year terms, with as near as

possible to one-half of the directors' terms expiring each year.

(e) The number of directors appointed to the board by each

county or hospital district that creates the district is

determined at the time of the initial appointment of directors

under this section and does not vary with subsequent variations

in the population of the county or hospital district.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.042. QUALIFICATIONS FOR OFFICE. (a) To be eligible to

serve as a director, a person must be a resident of the county or

hospital district that appoints the person under Section 287.041.

(b) An employee of the district may not serve as a director.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.043. BOND. (a) Before assuming the duties of the

office, each director must execute a bond for $5,000 payable to

the district, conditioned on the faithful performance of the

person's duties as director.

(b) The bond shall be kept in the permanent records of the

district.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.044. BOARD VACANCY. A vacancy in the office of

director shall be filled for the unexpired term in the same

manner as the original appointment.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.045. OFFICERS. (a) The board shall elect from among

its members a president and a vice president.

(b) The board shall appoint a secretary, who need not be a

director.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.046. OFFICERS' TERMS; VACANCY. (a) Each officer of

the board serves for a term of one year.

(b) The board shall fill a vacancy in a board office for the

unexpired term.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.047. COMPENSATION. (a) Directors and officers serve

without compensation but may be reimbursed for actual expenses

incurred in the performance of official duties.

(b) Expenses reimbursed under this section must be:

(1) reported in the district's minute book or other district

records; and

(2) approved by the board.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.048. VOTING REQUIREMENT. A majority of the members of

the board voting must concur in a matter relating to the business

of the district.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.049. ADMINISTRATOR AND ADDITIONAL STAFF. (a) The

board may appoint qualified persons as administrator of the

district and as additional administrative staff members as the

board considers necessary for the efficient operation of the

district.

(b) The administrator and other administrative staff members

serve at the will of the board.

entitled to compensation as determined by the board.

(d) Before assuming the administrator's duties, the

administrator shall execute a bond payable to the health services

district in an amount not less than $5,000 as determined by the

board, conditioned on the faithful performance of the

administrator's duties under this chapter. The board may pay for

the bond with district funds.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.050. APPOINTMENTS TO STAFF. The board may:

(1) appoint to the staff any doctors the board considers

necessary for the efficient operation of the district; and

(2) make temporary appointments the board considers necessary.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.051. TECHNICIANS, NURSES, AND OTHER DISTRICT EMPLOYEES.

(a) The district may employ technicians, nurses, fiscal agents,

accountants, architects, additional attorneys, and other

necessary employees.

(b) The board may delegate to the administrator the authority to

employ persons for the district.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.052. GENERAL DUTIES OF ADMINISTRATOR. The

administrator shall:

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

(2) direct the general affairs of the district, subject to the

limitations prescribed by the board.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.053. RETIREMENT BENEFITS. The board may provide

retirement benefits for employees of the district by:

(1) establishing or administering a retirement program; or

(2) electing to participate in the Texas County and District

Retirement System or in any other statewide retirement system in

which the district is eligible to participate.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER D. POWERS AND DUTIES

Sec. 287.071. RESPONSIBILITY OF GOVERNMENTAL ENTITY. On

creation of a district, a county or hospital district that

creates the district may transfer to the district:

(1) management and operation of any land, buildings,

improvements, and equipment related to the health care system

located wholly in the district that are owned by the county or

hospital district in which the district is located, as specified

in the contract with the counties and hospital districts that

created the district; and

(2) operating funds and reserves for operating expenses and

funds that have been budgeted by the county or hospital district

in which the district is located to provide medical care for

residents of the district, as specified in the contract with the

counties and hospital districts that created the district.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.072. DISTRICT RESPONSIBILITIES. On creation of a

district, the district assumes the duties required under Section

287.023 and any additional duties specified in the contract with

the counties and hospital districts that created the district.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.073. MANAGEMENT, CONTROL, AND ADMINISTRATION. The

board shall manage, control, and administer the health care

system and the funds and resources of the district that are

transferred under Section 287.071.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.074. DISTRICT RULES. The board may adopt rules

governing the operation of the district and the duties,

functions, and responsibilities of district staff and employees.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.075. METHODS AND PROCEDURES. The board may prescribe:

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

the district; and

(2) accounting and control procedures for the district.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.076. HEALTH CARE PROPERTY, FACILITIES, AND EQUIPMENT.

(a) The board shall determine:

(1) the type, number, and location of buildings required to

establish and maintain an adequate health care system; and

(2) the type of equipment necessary for health care.

(b) The board may:

(1) acquire property, facilities, and equipment for the district

for use in the health care system;

(2) mortgage or pledge the property, facilities, or equipment

acquired as security for the payment of the purchase price;

(3) transfer by lease to physicians, individuals, companies,

corporations, or other legal entities or acquire by lease

district health care facilities;

(4) sell or otherwise dispose of property, facilities, or

equipment acquired by the district; and

(5) contract with a state agency or other qualified provider to

provide services.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.077. CONSTRUCTION CONTRACTS. (a) The board may enter

into construction contracts for the district.

(b) The board may enter into construction contracts that involve

spending more than $10,000 only after competitive bidding as

provided by Subchapter B, Chapter 271, Local Government Code.

and payment bonds, applies to construction contracts let by the

district.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.078. DISTRICT CONTRACTS AND COLLABORATIONS. (a) The

board may enter into operating or management contracts relating

to health care facilities owned by the district or for which the

district assumes responsibility for managing and operating under

the terms of the contract with the counties and hospital

districts that created the district.

(b) The board may contract or collaborate with a local

governmental entity, as defined by Section 534.002, Government

Code, or any other public or private entity as necessary to

provide or deliver health care services under a demonstration

project established under Section 534.201 or 534.202, Government

Code, in which the district participates.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2003, 78th Leg., ch. 1139, Sec. 3, eff.

Sept. 1, 2003.

Sec. 287.079. PAYMENT FOR HEALTH CARE SERVICES. (a) The

district without charge shall supply to a patient residing in the

district the care and treatment that the patient or a relative of

the patient who is legally responsible for the patient's support

cannot pay.

(b) Not later than the first day of each operating year, the

district shall adopt an application procedure to determine

eligibility for assistance that complies with Section 61.053.

into the financial circumstances of:

(1) a patient residing in the district and admitted to a

district facility; and

(2) a relative of the patient who is legally responsible for the

patient's support.

(d) The board may adopt a sliding-fee scale for health care

services provided to a patient who can pay for some, but not all,

of the care and treatment provided by the district.

(e) A county that created and contracted with the district may

credit a district expenditure for the care and treatment of an

eligible county resident to the same extent and in the same

manner the county would be able to claim the expenditure under

Chapter 61 if the county made the expenditure.

(f) The board shall adopt rules regarding the collection of

money that is owed to the district for health care services

provided to a patient who is determined to be able to pay for all

or any part of the services from a patient, a patient's estate,

or a relative who is legally responsible for the patient's

support.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.080. REIMBURSEMENT FOR SERVICES. (a) The board shall

require reimbursement from a county, municipality, or public

hospital located outside the boundaries of the district for the

district's care and treatment of a sick, diseased, or injured

person of that county, municipality, or public hospital as

provided by Chapter 61.

(b) The board shall require reimbursement from the sheriff or

police chief of a county or municipality for the district's care

and treatment of a person confined in a jail facility of the

county or municipality who is not a resident of the district, as

determined in the same manner as the person's residence is

determined under Chapter 61.

political subdivision of the state to provide health care

services.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.081. SERVICE CONTRACTS. The board may contract with a

municipality, county, special district, or other political

subdivision of the state or with a state or federal agency for

the district to:

(1) furnish a mobile emergency medical service; or

(2) provide for the investigatory or welfare needs of

inhabitants of the district.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.082. GIFTS AND ENDOWMENTS. On behalf of the district,

the board may accept gifts and endowments to be held in trust for

any purpose and under any direction, limitation, or provision

prescribed in writing by the donor that is consistent with the

proper management of the district.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.083. AUTHORITY TO SUE AND BE SUED. The board may sue

and be sued on behalf of the district.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER E. DISSOLUTION OF DISTRICT

Sec. 287.101. DISSOLUTION. (a) A district shall be dissolved

if:

(1) the contract with the counties and hospital districts that

created the district expires and is not renewed; or

(2) the counties and hospital districts that created the

district adopt concurrent orders to terminate the contract and

dissolve the district and the concurrent orders:

(A) are approved by the governing bodies of each county and

hospital district; and

(B) contain identical provisions.

(b) The governing body of a county or hospital district may

adopt orders to terminate the contract with the district and end

the county's or hospital district's participation in the

district. The county or hospital district must give written

notice to the district at least one fiscal year, as established

by the board under Section 287.121, before terminating the

contract and ending participation in the district. On termination

of the contract with the district, the district shall transfer to

the county or hospital district all unspent funds contributed by

the county or hospital district to the district and the land,

buildings, improvements, equipment, and other assets acquired by

the district that are located in the county or hospital district.

The termination of the contract by a county or hospital district

does not affect the operation of the district with respect to

each other county or hospital district that created the district.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.102. TRANSFER OF ASSETS AFTER DISSOLUTION. (a) If the

district is dissolved, the board shall:

(1) transfer the land, buildings, improvements, equipment, and

other assets acquired by the district to the county or hospital

district in which the property is located; or

(2) administer the property, assets, and debts in accordance

with Section 287.103.

(b) If the district transfers its land, buildings, improvements,

equipment, and other assets to a county or hospital district, the

county or hospital district assumes all debts and obligations of

the district related to the land, buildings, improvements,

equipment, or assets at the time of the transfer, and the

district is dissolved.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.103. ADMINISTRATION OF PROPERTY, DEBTS, AND ASSETS

AFTER DISSOLUTION. (a) If the district does not transfer its

land, buildings, improvements, equipment, and other assets to a

county or hospital district in the district, the board shall

continue to control and administer the property, debts, and

assets of the district until all funds have been disposed of and

all district debts have been paid or settled.

(b) If, after administering the property and assets, the board

determines that the district's property and assets are

insufficient to pay the debts of the district, the district shall

transfer the remaining debts to the counties and hospital

districts that created the district in proportion to the funds

contributed to the district by each county or hospital district.

determines that unused funds remain, the board shall transfer the

unused funds to the counties and hospital districts that created

the district in proportion to the funds contributed to the

district by each county or hospital district.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.104. ACCOUNTING. After the district has paid all its

debts and has disposed of all its assets and funds as prescribed

by Sections 287.102 and 287.103, the board shall provide an

accounting to each county and hospital district that created and

contracted with the district. The accounting must show the manner

in which the assets and debts of the district were distributed.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER F. DISTRICT FINANCES

Sec. 287.121. FISCAL YEAR. (a) The district operates on the

fiscal year established by the board.

(b) The fiscal year may not be changed if revenue bonds of the

district are outstanding or more than once in a 24-month period.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.122. ANNUAL AUDIT. (a) The board annually shall have

an independent audit made of the financial condition of the

district.

(b) A copy of the audit must be provided to:

(1) each county and hospital district that created and

contracted with the district;

(2) each state and federal agency with which the district

contracts; and

(3) each other entity that contributes substantial funds to the

district.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.123. DISTRICT AUDIT AND RECORDS. The annual audit and

other district records are open to inspection during regular

business hours at the principal office of the district.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.124. ANNUAL BUDGET. (a) The administrator of the

district shall prepare a proposed annual budget for the district.

(b) The proposed budget must contain a complete financial

statement, including a statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash on hand to the credit of each fund of the

district;

(3) the amount of money received by the district from all

sources during the previous year;

(4) the amount of money available to the district from all

sources during the ensuing year;

(5) the amount of the balances expected at the end of the year

in which the budget is being prepared; and

(6) the estimated amount of revenues and balances available to

cover the proposed budget.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.125. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The

board shall hold a public hearing on the proposed annual budget.

(b) The board shall publish notice of the hearing in a newspaper

of general circulation in the district not later than the 10th

day before the date of the hearing.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt a

budget by acting on the budget proposed by the administrator. The

board may make any changes in the proposed budget that in its

judgment the interests of the residents of the district demand.

(e) The budget is effective only after adoption by the board.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.126. AMENDING BUDGET. After adoption, the annual

budget may be amended on the board's approval.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.127. LIMITATION OF EXPENDITURES. Money may not be

spent for an expense not included in the annual budget or an

amendment to it.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.128. SWORN STATEMENT. As soon as practicable after the

close of the fiscal year, the administrator shall prepare for the

board a sworn statement of the amount of money that belongs to

the district and an account of the disbursements of that money.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.129. SPENDING AND INVESTMENT LIMITATIONS. (a) Except

for construction contracts under Section 287.077(a) or as

provided by Sections 287.142 and 287.143, the district may not

incur a debt payable from revenues of the district other than the

revenues on hand or to be on hand in the current and immediately

following fiscal year of the district.

(b) The board may invest operating, depreciation, or building

reserves only in:

(1) bonds of the United States;

(2) certificates of indebtedness issued by the United States

secretary of the treasury;

(3) bonds of this state or a county, municipality, or school

district of this state; or

(4) shares or share accounts of savings and loan associations

organized under the laws of this state or federal savings and

loan associations domiciled in this state, if the shares or share

accounts are insured by the Federal Deposit Insurance

Corporation.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.102, eff.

Sept. 1, 2001.

Sec. 287.130. DEPOSITORY. (a) The board shall name at least

one bank to serve as depository for district funds.

(b) District funds, other than those invested as provided by

Section 287.129(b) and those transmitted to a bank of payment for

bonds or obligations issued or assumed by the district, shall be

deposited as received with the depository bank and must remain on

deposit. This subsection does not limit the power of the board to

place a portion of district funds on time deposit or to purchase

certificates of deposit.

that exceeds the maximum amount secured by the Federal Deposit

Insurance Corporation, the bank must execute a bond or other

security in an amount sufficient to secure from loss the district

funds that exceed the amount secured by the Federal Deposit

Insurance Corporation.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.131. AD VALOREM TAXATION. A district may not impose an

ad valorem tax.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER G. BONDS

Sec. 287.141. GENERAL OBLIGATION BONDS. A district may not

issue general obligation bonds.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.142. REVENUE BONDS. (a) The board may issue revenue

bonds to:

(1) purchase, construct, acquire, repair, equip, or renovate

buildings or improvements for district purposes;

(2) acquire sites to be used for district purposes; or

(3) acquire and operate a mobile emergency medical service to

assist the district in carrying out its purposes.

(b) The bonds must be payable from and secured by a pledge of

all or part of the revenues derived from the operation of the

district. The bonds may be additionally secured by a mortgage or

deed of trust lien on all or part of district property.

264.042, 264.043, 264.046, 264.047, 264.048, and 264.049 for

issuance of revenue bonds by county hospital authorities.

(d) Revenue derived from the operation of the district and

pledged to the repayment of revenue bonds issued by the district

must be used to repay the principal and interest owed on the

bonds before being used to repay any other obligation of the

district, including money owed to physicians who are employed by

or who contract with the district.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.143. REFUNDING BONDS. (a) Refunding bonds of the

district may be issued to refund an outstanding indebtedness the

district has issued or assumed.

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

Subchapter D, Chapter 1207, Government Code.

the payment of outstanding indebtedness or may be exchanged in

whole or in part for not less than a similar principal amount of

outstanding indebtedness. If the refunding bonds are to be sold

and the proceeds applied to the payment of outstanding

indebtedness, the refunding bonds must be issued and payments

made in the manner provided by Subchapters A-C, Chapter 1207,

Government Code.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.267, eff.

Sept. 1, 2001.

Sec. 287.144. INTEREST AND MATURITY. District bonds must mature

not later than the 50th anniversary of the date of their issuance

and must bear interest at a rate not to exceed that provided by

Chapter 1204, Government Code.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.268, eff.

Sept. 1, 2001.

Sec. 287.145. EXECUTION OF BONDS. The president of the board

shall execute the bonds in the name of the district, and the

secretary of the board shall countersign the bonds in the manner

provided by Chapter 618, Government Code.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.268, eff.

Sept. 1, 2001.

Sec. 287.146. APPROVAL AND REGISTRATION OF BONDS. (a) District

bonds are subject to the same requirements with regard to

approval by the attorney general and registration by the

comptroller as the law provides for approval and registration of

bonds issued by counties.

(b) On approval by the attorney general and registration by the

comptroller, the bonds are incontestable for any cause.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.147. BONDS AS INVESTMENTS. District bonds and

indebtedness assumed by the district are legal and authorized

investments for:

(1) banks;

(2) savings banks;

(3) trust companies;

(4) savings and loan associations;

(5) insurance companies;

(6) fiduciaries;

(7) trustees;

(8) guardians; and

(9) sinking funds of municipalities, counties, school districts,

and other political subdivisions of the state and other public

funds of the state and its agencies, including the permanent

school fund.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.148. BONDS AS SECURITY FOR DEPOSITS. District bonds

are eligible to secure deposits of public funds of the state and

of municipalities, counties, school districts, and other

political subdivisions of the state. The bonds are lawful and

sufficient security for deposits to the extent of their value if

accompanied by all unmatured coupons.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

Sec. 287.149. TAX STATUS OF BONDS. Because the district created

under this chapter is a public entity performing an essential

public function, bonds issued by the district, any transaction

relating to the bonds, and profits made in the sale of the bonds

are free from taxation by the state or by any municipality,

county, special district, or other political subdivision of the

state.

Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,

1999.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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