CHAPTER 1021. DONLEY COUNTY HOSPITAL DISTRICT

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SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 3. HEALTH

SUBTITLE A. HOSPITAL DISTRICTS

CHAPTER 1021. DONLEY COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1021.001. 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 Donley County Hospital District.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.002. AUTHORITY FOR OPERATION. The district operates

in accordance with Section 9, Article IX, Texas Constitution.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.003. ESSENTIAL PUBLIC FUNCTION. The district performs

an essential public function in carrying out the purposes of this

chapter.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.004. DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Donley County,

Texas.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.005. CORRECTION OF INVALID PROCEDURES. If a court

holds that any procedure under this chapter violates the

constitution of this state or of the United States, the district

by resolution may provide an alternative procedure that conforms

with the constitution.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.006. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The support and maintenance of the district may not

become a charge against or obligation of this state.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.007. 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 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1021.051. BOARD ELECTION; TERM. (a) The board consists of

seven directors elected from the district by position. To be

elected, a candidate must receive a majority of the votes cast in

the election for that position.

(b) The official ballot must indicate the position number of

each office to be voted on at the election.

(d) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) the terms of directors elected to positions 1 through 3

expire in odd-numbered years and the terms of directors elected

to positions 4 through 7 expire in even-numbered years.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.052. NOTICE OF RUNOFF ELECTION. At least seven days

before the date of a runoff election of directors, notice of the

runoff election shall be published one time in a newspaper of

general circulation in Donley County.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.053. QUALIFICATIONS FOR OFFICE. (a) A person may not

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

(1) a district resident;

(2) a freeholder; and

(3) a qualified voter.

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

person is:

(1) the district administrator;

(2) a district employee; or

(3) a hospital staff member.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.054. BOND. (a) Each director shall execute a good

and sufficient bond for $1,000 that is:

(1) payable to the district; and

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

duties.

(b) The district shall pay for the directors' bonds.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.055. BOARD VACANCY. If a vacancy occurs in the office

of director, the board shall appoint a director for the unexpired

term.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.056. 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 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.057. COMPENSATION; EXPENSES. 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 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.058. VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.059. DISTRICT ADMINISTRATOR; ASSISTANT DISTRICT

ADMINISTRATORS. (a) The board may appoint a qualified person as

district administrator.

(b) The board may appoint one or more assistant administrators.

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

compensation determined by the board.

(d) On assuming the duties of district administrator, the

administrator shall 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 duties; and

(2) contains other conditions the board may require.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.060. 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 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.061. APPOINTMENT AND DISMISSAL OF STAFF AND EMPLOYEES.

(a) The board may appoint to or dismiss from the staff any

doctors 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.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.062. SENIORITY; RETIREMENT BENEFITS. The board may:

(1) adopt rules related to the seniority of district employees,

including rules for a retirement plan based on seniority; and

(2) give effect to previous years of service for district

employees continuously employed in the operation or management of

hospital facilities acquired or constructed by the district.

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

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1021.101. DISTRICT RESPONSIBILITY. The district has full

responsibility for operating all hospital facilities for

providing medical and hospital care for the district's needy

inhabitants.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND

DEBT. A political subdivision located within the district or

that has the same boundaries as the district may not impose a tax

or issue bonds or other obligations for hospital purposes or to

provide medical care.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The

board shall manage, control, and administer the hospital system

and the district's money and resources.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.104. HOSPITAL SYSTEM. The hospital system, as

determined by the board, may include:

(1) facilities for domiciliary care of the sick, injured, or

geriatric;

(2) facilities for outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses centers;

(6) research centers or laboratories;

(7) nursing homes or similar facilities for the care of the

elderly; and

(8) any other facilities the board considers necessary for

hospital care.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.105. 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 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.106. 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 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.107. 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 contract with the Health and Human Services

Commission to lease all or part of the district's buildings and

other facilities on terms considered to be in the best interest

of the district's inhabitants. The term of the lease may not

exceed 25 years.

hospital system and mortgage or pledge the property as security

for the payment of the purchase price. A contract entered into

under this subsection must provide that the entire obligation be

retired not later than the fifth anniversary of the date of the

contract.

(d) The district may sell or otherwise dispose of any property,

including equipment, on terms the board finds are in the best

interest of the district's inhabitants.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.108. 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 for the district to exercise a power,

right, 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(a), 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 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.109. GIFTS AND ENDOWMENTS. The board may accept for

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

administered by the board for the purposes and under the

directions, limitations, or other provisions prescribed in

writing by the donor that are not inconsistent with the proper

management and objectives of the district.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.110. CONSTRUCTION OR PURCHASE CONTRACTS. A

construction or purchase contract that involves the expenditure

of more than $2,000 may be made only after advertising in the

manner provided by Chapter 252 and Subchapter C, Chapter 262,

Local Government Code.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.111. OPERATING AND MANAGEMENT CONTRACTS. The board

may enter into an operating or management contract relating to a

district facility.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR HOSPITAL

TREATMENT. (a) The board may contract with a county or

municipality located outside the district's boundaries for the

hospitalization 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 hospital treatment of a sick or injured person.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

INVESTIGATORY OR OTHER SERVICES. The board may contract with a

political subdivision or governmental agency for the district to

provide investigatory or other services as to the hospital or

welfare needs of district inhabitants.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.114. 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 care and 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 any appropriate orders.

(f) The final order of the board may be appealed to the district

court. The substantial evidence rule applies to the appeal.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.115. AUTHORITY TO SUE AND BE SUED. (a) The district,

through the board, may sue and be sued.

(b) The district is entitled to all causes of action and

defenses to which similar authorities are entitled.

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

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1021.151. 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 cash on hand in each district fund;

(3) the money received by the district from all sources during

the previous year;

(4) the money available to the district from all sources during

the ensuing year;

(5) the balances expected at the end of the year in which the

budget is being prepared;

(6) the estimated revenue and balances available to cover the

proposed budget;

(7) the estimated tax rate required; and

(8) the proposed expenditures and disbursements and the

estimated receipts and collections for the following fiscal year.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The

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

(b) At least 10 days before the date of the hearing, notice of

the hearing shall be published one time in a newspaper or

newspapers that individually or collectively have general

circulation in the district.

present and 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 interest of the

taxpayers and that the law warrants.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.153. AMENDMENTS TO BUDGET. The budget may be amended

as required by circumstances. The board must approve all

amendments.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.154. RESTRICTION ON EXPENDITURES. Money may be spent

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

budget.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.155. FISCAL YEAR. The district operates on a fiscal

year that begins on July 1 and ends on June 30.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.156. AUDIT. (a) The district shall have an

independent audit made of the district's financial condition for

the fiscal year.

(b) As soon as the audit is completed, the audit shall be filed

at the district's office.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.157. INSPECTION OF AUDIT AND DISTRICT RECORDS. The

audit and other district records shall be open to inspection at

the district's principal office.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.158. 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 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.159. DEPOSITORY. (a) The board shall select one or

more banks in the district to serve as a depository for district

money.

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

Section 1021.160(b) and money transmitted to a bank for payment

of bonds or obligations issued 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.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.160. SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as provided by Section 1021.107(c) and by Subchapter E,

the district may not incur an obligation payable from district

revenue other than the revenue on hand or to be on hand in the

current and following district fiscal years.

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

fund reserves only in funds or securities specified by Chapter

2256, Government Code.

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

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER E. BONDS

Sec. 1021.201. GENERAL OBLIGATION BONDS. The board may issue

and sell general obligation 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 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the

time general obligation bonds are issued by the district under

Section 1021.201, 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 ad

valorem tax the district imposes may not in any year exceed the

tax rate approved by the voters at the election authorizing the

imposition of the tax.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.203. GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the district voters voting at an

election held for that purpose.

(b) The order calling the election shall provide for clerks as

in county elections and must specify:

(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 interest rate of the bonds.

Section 1251.003, Government Code.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.204. MATURITY OF GENERAL OBLIGATION BONDS. District

general obligation bonds must mature not later than 40 years

after the date of issuance.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.205. 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 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.206. REVENUE BONDS. (a) The board may issue revenue

bonds to:

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

buildings or improvements for the district's hospital system

facilities; or

(2) acquire sites to be used for the district's hospital system

facilities.

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

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

district's hospitals.

of trust lien on all or part of district property.

(d) The bonds must be used 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 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.207. REFUNDING BONDS. (a) The board may, without an

election, issue refunding bonds to refund outstanding

indebtedness issued or assumed by the district.

(b) Refunding bonds may be:

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

the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a similar

principal amount of outstanding indebtedness.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.208. 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; and

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

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

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER F. TAXES

Sec. 1021.251. IMPOSITION OF AD VALOREM TAX. (a) The board

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

district taxation.

(b) The board shall impose the tax to:

(1) pay the interest on and create a sinking fund for bonds and

other obligations issued or assumed by the district for hospital

purposes;

(2) provide for the operation and maintenance of the district

and hospital system;

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

(4) acquire necessary sites for the hospital system by purchase,

lease, or condemnation.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.252. TAX RATE. (a) The board may impose the tax at a

rate not to exceed 75 cents on each $100 valuation of taxable

property in the district.

(b) In setting the tax rate, the board shall consider the income

of the district from sources other than taxation.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR. (a) This section applies unless the board

elects to have taxes assessed and collected under Section

1021.254.

(b) The tax assessor-collector of Donley County shall assess and

collect taxes imposed by the district.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1021.254. ASSESSMENT AND COLLECTION BY DISTRICT TAX

ASSESSOR-COLLECTOR. (a) The board may elect to have district

taxes assessed and collected by a tax assessor-collector

appointed by the board. An election under this subsection must

be made by December 1 and governs the manner in which taxes are

assessed and collected, until changed by a similar resolution.

(b) The district tax assessor-collector must:

(1) reside in the district; and

(2) own real property subject to district taxation.

(1) the terms of employment; and

(2) compensation.

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

920, Sec. 1.02, eff. April 1, 2009.

State Codes and Statutes

State Codes and Statutes

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State Codes and Statutes

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