CHAPTER 1008. CHILLICOTHE HOSPITAL DISTRICT

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SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 3. HEALTH

SUBTITLE A. HOSPITAL DISTRICTS

CHAPTER 1008. CHILLICOTHE HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1008.001. DEFINITIONS. In this chapter:

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

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

(3) "District" means the Chillicothe Hospital District.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.002. AUTHORITY FOR OPERATION. The Chillicothe

Hospital District operates and is administered and financed in

accordance with Section 9, Article IX, Texas Constitution.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.003. ESSENTIAL PUBLIC FUNCTION. The district performs

an essential public function in carrying out the purposes of this

chapter.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.004. DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of County

Commissioners Precinct No. 3 of Hardeman County, Texas, as those

boundaries existed on April 26, 1979.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The support or maintenance of the district may not

become a charge against or obligation of this state.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.006. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The

legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1008.051. BOARD ELECTION; TERM. (a) The board consists of

seven directors elected from the district at large.

(b) The board shall declare the results of the election.

terms are established under Section 285.081, Health and Safety

Code.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.052. NOTICE OF ELECTION. At least 30 days before the

date of an election of directors, notice of the election shall be

published one time in a newspaper or newspapers that individually

or collectively have general circulation in the district.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.053. BALLOT APPLICATION. (a) A person must file an

application with the board secretary to have the person's name

printed on the ballot as a candidate for director.

(b) The application must be filed at least 45 days before the

date of the election.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.054. QUALIFICATIONS FOR OFFICE. (a) A person may not

be elected or appointed as a director unless the person is:

(1) a resident of the district; and

(2) a qualified voter.

(b) A person is not eligible to serve as a director if the

person is:

(1) the district administrator;

(2) the attorney for the district; or

(3) a district employee.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.055. BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF

OFFICE. (a) Each director may be required to execute a good and

sufficient bond for $5,000 that is:

(1) approved by the Commissioners Court of Hardeman County;

(2) payable to the district; and

(3) conditioned on the faithful performance of the director's

duties.

(b) The district may pay for the directors' bonds with district

money.

of office shall be kept in the permanent records of the district.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.056. BOARD VACANCY. If a vacancy occurs in the office

of director, the remaining directors shall appoint a director for

the unexpired term.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.057. OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

unexpired term.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.058. COMPENSATION. A director or officer serves

without compensation but may be reimbursed for actual expenses

incurred in the performance of official duties. The expenses

must be:

(1) reported in the district's records; and

(2) approved by the board.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.059. VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.060. DISTRICT ADMINISTRATOR. (a) The board may

appoint a qualified person as district administrator.

(b) The district administrator serves at the will of the board

and is entitled to the compensation determined by the board.

administrator may execute a bond payable to the district in an

amount set by the board of not less than $5,000 that:

(1) is conditioned on the administrator performing the

administrator's required duties; and

(2) contains other conditions the board may require.

(d) The board may pay for the bond with district money.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.061. GENERAL DUTIES OF DISTRICT ADMINISTRATOR.

Subject to the limitations prescribed by the board, the district

administrator shall:

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

(2) direct the affairs of the district.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.062. ATTORNEY; ASSISTANT DISTRICT ADMINISTRATOR. (a)

The board may appoint qualified persons as:

(1) the attorney for the district; and

(2) the assistant district administrator.

(b) The attorney for the district and the assistant district

administrator serve at the will of the board and are entitled to

the compensation determined by the board.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.063. APPOINTMENT AND RECRUITMENT OF STAFF AND

EMPLOYEES. (a) The board may appoint to the staff any

physicians the board considers necessary for the efficient

operation of the district and may make temporary appointments as

necessary.

(b) The district may employ fiscal agents, accountants,

architects, and attorneys the board considers proper.

authority to hire district employees, including technicians and

nurses.

(d) The board may spend district money to recruit physicians,

nurses, and other trained medical personnel. The board may pay

the tuition or other expenses of a full-time medical student or

other student in a health occupation who:

(1) is enrolled in and is in good standing at an accredited

medical school, college, or university; and

(2) contractually agrees to become a district employee or

independent contractor in return for that assistance.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.064. PERSONNEL CONTRACTS. (a) The board may contract

to provide administrative or other personnel for the operation of

the hospital facilities.

(b) The contract may not have a term of more than 25 years.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.065. RETIREMENT BENEFITS. The board may provide

retirement benefits for district employees by:

(1) establishing or administering a retirement program; or

(2) participating in:

(A) the Texas County and District Retirement System; or

(B) another statewide retirement system in which the district is

eligible to participate.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1008.101. DISTRICT RESPONSIBILITY. The district has full

responsibility to:

(1) operate all hospital facilities; and

(2) provide medical and hospital care for the district's needy

residents.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND

DEBT. A political subdivision located wholly or partly within

the district may not impose a tax or issue bonds or other

obligations for hospital purposes or to provide medical care for

district residents.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The

board shall manage, control, and administer the hospital system

and the district's money and resources.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.104. HOSPITAL SYSTEM. (a) The district shall provide

for the establishment of a hospital system by:

(1) acquiring, purchasing, constructing, repairing, or

renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the system for hospital purposes.

(b) The hospital system may include any facilities the board

considers necessary for hospital care.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.105. RULES. The board may adopt rules governing the

operation of the hospital, the hospital system, and the

district's staff and employees.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.106. PURCHASING AND ACCOUNTING PROCEDURES. The board

may prescribe:

(1) the method and manner of making purchases and expenditures

by and for the district; and

(2) all accounting and control procedures.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.

(a) The board shall determine the type, number, and location of

buildings required to maintain an adequate hospital system.

(b) The board may:

(1) purchase or lease property, including facilities or

equipment, for the district to use in the hospital system; and

(2) mortgage or pledge the property as security for the payment

of the purchase price.

individuals, corporations, or other legal entities.

(d) The board may sell or otherwise dispose of the district's

property.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.108. OPERATING AND MANAGEMENT CONTRACTS. The board

may enter into an operating or management contract relating to a

district facility.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.109. INTERLOCAL AGREEMENT. The board may enter into

an interlocal agreement with another political subdivision to

operate the district.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.110. SERVICE CONTRACTS. The board may contract with a

political subdivision or governmental agency for the district to

provide investigatory or other services as to facilities for the

medical care, hospital, or welfare needs of district residents.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.111. EMINENT DOMAIN. (a) The district may exercise

the power of eminent domain to acquire a fee simple or other

interest in any type of property located in district territory if

the interest is necessary or convenient for the district to

exercise a right, power, or privilege conferred by this chapter.

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

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

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

bond as provided by Section 21.021, Property Code.

district is not required to:

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

in the trial court;

(2) provide a bond for the issuance of a temporary restraining

order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on an appeal

or writ of error.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.112. COST OF RELOCATING OR ALTERING PROPERTY. In

exercising the power of eminent domain, if the board requires

relocating, raising, lowering, rerouting, changing the grade of,

or altering the construction of any railroad, electric

transmission, telegraph or telephone lines, conduits, poles, or

facilities, or pipeline, the district must bear the actual cost

of relocating, raising, lowering, rerouting, changing the grade,

or altering the construction to provide comparable replacement

without enhancement of facilities, after deducting the net

salvage value derived from the old facility.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.113. GIFTS AND ENDOWMENTS. The board may accept for

the district a gift or endowment to be held in trust for a

purpose and under a written direction, limitation, or provision

of the donor that is consistent with the proper management and

objectives of the district.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.114. CONTRACTS FOR SERVICES TO CERTAIN PERSONS. (a)

The board may contract with a county or municipality located

outside the district's boundaries to reimburse the district for

the care and treatment of a sick or injured person of that county

or municipality.

(b) The board may contract with this state or a federal agency

for the state or agency to reimburse the district for the

treatment of a sick or injured person.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.115. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a

patient who resides in the district is admitted to a district

facility, the district administrator may have an inquiry made

into the circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for the

patient's support.

(b) If the district administrator determines that the patient or

those relatives cannot pay all or part of the costs of the care

and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

those relatives can pay for all or part of the costs of the

patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district administrator may collect the amount from the

patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt in

the mind of the district administrator, the board shall hold a

hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue a final order.

(f) The final order may be appealed to the district court. The

substantial evidence rule applies to the appeal.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.116. AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.117. ADVERTISING FOR CERTAIN CONSTRUCTION CONTRACTS.

Contracts for construction involving the expenditure of more than

$15,000 may be made only after advertising as provided by

Subchapter B, Chapter 271, Local Government Code.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

SUBCHAPTER D. DISSOLUTION

Sec. 1008.151. DISSOLUTION; ELECTION. (a) The district may be

dissolved only on approval of a majority of the voters voting in

an election held for that purpose.

(b) The board may order an election on the question of

dissolving the district and disposing of the district's assets

and obligations.

petition requesting an election that is signed by a number of

residents of the district equal to at least 15 percent of the

registered voters in the district.

(d) The election shall be held not later than the 60th day after

the date the election is ordered.

(e) The order calling the election must state:

(1) the nature of the election, including the proposition to

appear on the ballot;

(2) the date of the election;

(3) the hours during which the polls will be open; and

(4) the location of the polling places.

(f) Section 41.001(a), Election Code, does not apply to an

election ordered under this section.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.152. NOTICE OF ELECTION. (a) The board shall give

notice of an election under this subchapter by publishing once a

week for two consecutive weeks the election order in a newspaper

with general circulation in the district.

(b) The first publication of the notice must appear not later

than the 35th day before the date set for the election.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.153. BALLOT. The ballot for an election under this

subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the Chillicothe Hospital

District."

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.154. ELECTION RESULTS. (a) If a majority of the

votes in an election under this subchapter favor dissolution, the

board shall find that the district is dissolved.

(b) If a majority of the votes in the election do not favor

dissolution, the board shall continue to administer the district

and another election on the question of dissolution may not be

held before the first anniversary of the date of the most recent

election to dissolve the district.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.155. TRANSFER OR ADMINISTRATION OF ASSETS. (a) If a

majority of the votes in the election held under this subchapter

favor dissolution, the board shall:

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

other assets that belong to the district to Hardeman County or

another governmental agency in Hardeman County; or

(2) administer the property, assets, and debts until all money

has been disposed of and all district debts have been paid or

settled.

(b) If the board makes the transfer under Subsection (a)(1), the

county or agency assumes all debts and obligations of the

district at the time of the transfer, and the district is

dissolved.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.156. SALE OR TRANSFER OF ASSETS AND LIABILITIES. (a)

Notwithstanding any other provision of this subchapter, the

district may not be dissolved unless the board provides for the

sale or transfer of the district's assets and liabilities to

another person or entity.

(b) The dissolution of the district and the sale or transfer of

the district's assets or liabilities may not contravene a trust

indenture or bond resolution relating to the district's

outstanding bonds. The dissolution and sale or transfer does not

diminish or impair the rights of a holder of an outstanding bond,

warrant, or other obligation of the district.

liabilities must satisfy the debt and bond obligations of the

district in a manner that protects the interests of the residents

of the district, including the residents' collective property

rights in the district's assets. The district may not transfer

or dispose of the district's assets except for due compensation

unless the transfer is made to another governmental agency that

serves the district and the transferred assets are to be used for

the benefit of the district's residents.

(d) A grant from federal funds is an obligation to be repaid in

satisfaction.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.157. IMPOSITION OF TAX AND RETURN OF SURPLUS TAXES.

(a) After the board finds that the district is dissolved, the

board shall:

(1) determine the debt owed by the district; and

(2) impose on the property included in the district's tax rolls

a tax that is in proportion of the debt to the property value.

(b) On the payment of all outstanding debts and obligations of

the district, the board shall order the secretary to return to

each district taxpayer the taxpayer's pro rata share of all

unused tax money.

tax money be credited to the taxpayer's county taxes. If a

taxpayer requests the credit, the board shall direct the

secretary to transmit the money to the county tax

assessor-collector.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.158. REPORT; DISSOLUTION ORDER. (a) After the

district has paid all its debts and has disposed of all its money

and other assets as prescribed by this subchapter, the board

shall file a written report with the Commissioners Court of

Hardeman County summarizing the board's actions in dissolving the

district.

(b) Not later than the 10th day after the date the Commissioners

Court of Hardeman County receives the report and determines that

the requirements of this subchapter have been fulfilled, the

commissioners court shall enter an order dissolving the district

and releasing the board from any further duty or obligation.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 1008.201. BUDGET. (a) The district administrator shall

prepare an annual budget for approval by the board.

(b) The proposed budget must contain a complete financial

statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash on hand in each district fund;

(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;

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

cover the proposed budget; and

(7) the estimated tax rate required.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.202. 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 accordance

with Subchapter C, Chapter 551, Government Code.

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 district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the

taxpayers and that the law warrants.

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

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.203. AMENDMENTS TO BUDGET. The budget may be amended

as required by circumstances. The board must approve all

amendments.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.204. RESTRICTION ON EXPENDITURES. Money may be spent

only for an expense included in the budget or an amendment to the

budget.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.205. FISCAL YEAR. (a) The district operates

according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that revenue bonds of the district are

outstanding; or

(2) more than once in a 24-month period.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.206. ANNUAL AUDIT. The board annually shall have an

audit made of the district's financial condition.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.207. INSPECTION OF ANNUAL AUDIT AND DISTRICT RECORDS.

The annual audit and other district records shall be open to

inspection at the district's principal office.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.208. FINANCIAL REPORT. As soon as practicable after

the close of each fiscal year, the district administrator shall

prepare for the board:

(1) a complete sworn statement of all district money; and

(2) a complete account of the disbursements of that money.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.209. DEPOSITORY. (a) The board shall select one or

more banks inside or outside the district to serve as a

depository for district money.

(b) District money, other than money invested as provided by

Section 1008.210, and money transmitted to a bank for payment of

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

deposited as received with the depository bank and shall remain

on deposit.

power of the board to place a part of district money on time

deposit or to purchase certificates of deposit.

(d) The district may not deposit money with a bank in an amount

that exceeds the maximum amount secured by the Federal Deposit

Insurance Corporation unless the bank has first executed a bond

or other security in an amount sufficient to secure from loss the

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.210. SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by this chapter, the district may

not incur an obligation payable from district revenues other than

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

following district fiscal years.

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

reserves only in funds or securities specified by Chapter 2256,

Government Code.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.211. AUTHORITY TO BORROW MONEY; SECURITY. (a) The

board may borrow money for district obligations at the time the

loan is made.

(b) To secure a loan, the board may pledge:

(1) district revenue that is not pledged to pay the district's

bonded indebtedness;

(2) a district tax to be imposed by the district in the next

12-month period that is not pledged to pay the principal of or

interest on district bonds; or

(3) district bonds that have been authorized but not sold.

later than the first anniversary of the date the loan is made. A

loan for which district revenue is pledged must mature not later

than the fifth anniversary of the date the loan is made.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

SUBCHAPTER F. BONDS

Sec. 1008.251. GENERAL OBLIGATION BONDS. The board may issue

and sell general obligations bonds in the name and on the faith

and credit of the district for any purpose relating to:

(1) the purchase, construction, acquisition, repair, or

renovation of buildings or improvements; and

(2) equipping buildings or improvements for hospital purposes.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.252. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the

time general obligation bonds are issued by the district under

Section 1008.251, the board shall impose an ad valorem tax at a

rate sufficient to create an interest and sinking fund to pay the

principal of and interest on the bonds as the bonds mature.

(b) The tax required by this section together with any other tax

the district imposes in any year may not exceed the limit

approved by the voters at the election authorizing the imposition

of the tax.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.253. GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the voters voting at an election held

for that purpose.

(b) The board must specify in the order calling the election:

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding and alternate election judges for each polling

place;

(4) the amount of the bonds to be authorized; and

(5) the maximum maturity of the bonds.

Section 1251.003, Government Code.

(d) Chapter 41, Election Code, does not apply to an election

held under this section.

(e) The board shall declare the results of the election.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 13.003, eff. September 1, 2007.

Sec. 1008.254. MATURITY OF GENERAL OBLIGATION BONDS. District

general obligation bonds must mature not later than 40 years

after the date of issuance.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.255. EXECUTION OF GENERAL OBLIGATION BONDS. (a) The

board president shall execute the general obligation bonds in the

district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.256. REVENUE BONDS. (a) The board may issue revenue

bonds to:

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

buildings or improvements for hospital purposes; or

(2) acquire sites to be used for hospital 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's hospitals.

of trust lien on all or part of district property.

(d) The bonds must be issued in the manner and in accordance

with the procedures and requirements prescribed by Sections

264.042, 264.043, and 264.046-264.049, Health and Safety Code,

for issuance of revenue bonds by a county hospital authority.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.257. REFUNDING BONDS. (a) The board may, without an

election, issue refunding bonds to refund outstanding bonds

issued or assumed by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bonds applied to

the payment of the bonds to be refunded; or

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

principal amount of outstanding indebtedness.

payments must be made in the manner provided by Chapter 1207,

Government Code.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.258. BONDS EXEMPT FROM TAXATION. The following are

exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) the transfer and issuance of the bonds; or

(3) profits made in the sale of the bonds.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

SUBCHAPTER G. TAXES

Sec. 1008.301. IMPOSITION OF AD VALOREM TAX. (a) The board

shall impose a tax on all property in the district subject to

district taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district; and

(2) the maintenance and operating expenses of the district.

interest on revenue bonds issued under this chapter.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.302. TAX RATE. (a) The board may impose the tax at a

rate not to exceed the limit approved by the voters at the

election authorizing the imposition of the tax.

(b) The tax rate on all taxable property in the district for all

purposes may not exceed 75 cents on each $100 valuation of all

taxable property in the district.

of the district from sources other than taxation.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1008.303. TAX ASSESSOR-COLLECTOR. The board may provide

for the appointment of a tax assessor-collector for the district

or may contract for the assessment and collection of taxes as

provided by the Tax Code.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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