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Statutes > Texas > Special-district-local-laws-code > Title-3-health > Chapter-1032-gonzales-healthcare-systems

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 3. HEALTH

SUBTITLE A. HOSPITAL DISTRICTS

CHAPTER 1032. GONZALES HEALTHCARE SYSTEMS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1032.001. 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 Gonzales Healthcare Systems.

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

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

Sec. 1032.002. AUTHORITY FOR OPERATION. The district operates

and is administered and financed in accordance with Section 9,

Article IX, Texas Constitution, and has the rights, powers, and

duties provided by this chapter.

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

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

Sec. 1032.003. 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. 1032.004. DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Gonzales County

except the district does not include the territory of the

following districts that lie within the county as those districts

existed on January 1, 1975:

(1) Nixon Hospital District of Gonzales and Wilson Counties;

(2) DeWitt Medical District;

(3) Yoakum Hospital District; and

(4) Shiner Independent School District of Shiner and Lavaca

Counties.

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

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

Sec. 1032.005. 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. 1032.006. 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 2007, 80th Leg., R.S., Ch.

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

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1032.051. BOARD ELECTION; TERM. (a) The board consists of

nine directors elected as follows:

(1) four directors, each of whom is elected from the county

commissioners precinct represented by the director; and

(2) five directors from the district at large.

(b) Directors serve staggered four-year terms.

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

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

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 1, eff. June 19, 2009.

Sec. 1032.052. NOTICE OF ELECTION. Notice of an election of

directors shall be published in accordance with Section 4.003,

Election Code, in a newspaper or newspapers that individually or

collectively have general circulation in the district.

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

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

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 2, eff. June 19, 2009.

Sec. 1032.054. QUALIFICATIONS FOR OFFICE. (a) A person may not

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

(1) a district resident; and

(2) a qualified voter.

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

person is:

(1) the district administrator; or

(2) a district employee.

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

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

Sec. 1032.055. 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1032.056. 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.

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

unexpired term.

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

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

Sec. 1032.057. 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. 1032.058. VOTING REQUIREMENT. A concurrence of five

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. 1032.059. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR.

(a) The board shall appoint a qualified person as district

administrator.

(b) The board may appoint an assistant administrator.

(c) The district administrator and any assistant administrator

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. 1032.060. 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. 1032.061. EMPLOYEES; APPOINTMENT OF STAFF. (a) The board

may appoint to 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.

(c) The board may delegate to the district administrator the

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.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1032.101. 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. 1032.102. 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1032.103. 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. 1032.104. HOSPITAL SYSTEM. (a) The district shall provide

for the establishment of a hospital system by:

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

renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the buildings and equipment for hospital

purposes.

(b) The hospital system may include any 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. 1032.105. 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. 1032.106. 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. 1032.107. 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 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.

(c) The district may acquire equipment for use in the district's

hospital system and mortgage or pledge the property as security

for the payment of the purchase price.

(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. 1032.108. 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 or convenient 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.

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

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. 1032.109. 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. 1032.110. CONSTRUCTION CONTRACTS. A construction contract

that involves the expenditure of more than the amount provided by

Section 271.024, Local Government Code, may be made only after

competitive bidding in the manner provided by Subchapter B,

Chapter 271, Local Government Code.

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

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

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 3, eff. June 19, 2009.

Sec. 1032.111. 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. 1032.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND

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

municipality located outside the district's boundaries 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 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. 1032.113. 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 for the medical,

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. 1032.114. 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.

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

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) A 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. 1032.115. AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued.

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

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

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1032.151. 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; and

(7) the estimated tax rate required.

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

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

Sec. 1032.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The

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

(b) Notice of the hearing must be published one time at least 10

days before the date of the hearing.

(c) Any district resident is entitled to be 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 interests 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. 1032.153. 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. 1032.154. 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. 1032.155. FISCAL YEAR. (a) The district operates on 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1032.156. ANNUAL AUDIT. The board annually shall have an

audit made of the district's financial condition.

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

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

Sec. 1032.157. 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1032.158. 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. 1032.159. 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 1032.160(b), 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.

(c) This chapter, including Subsection (b), does not limit the

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 first executes 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1032.160. SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Section 1032.107(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

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.

Sec. 1032.161. GENERAL AUTHORITY TO BORROW MONEY; SECURITY. (a)

The board may borrow money at a rate not to exceed the maximum

annual percentage rate allowed by law 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 following the date of the pledge that is not

pledged to pay the principal of or interest on district bonds; or

(3) a district bond that has been authorized but not sold.

(c) A loan for which taxes or bonds are pledged must mature not

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 2009, 81st Leg., R.S., Ch.

605, Sec. 4, eff. June 19, 2009.

SUBCHAPTER E. BONDS

Sec. 1032.201. 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. 1032.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the

time general obligation bonds are issued by the district under

Section 1032.201, 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 75

cents on each $100 valuation of all taxable property in the

district.

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

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

Sec. 1032.203. 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.

(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 maturity of the bonds.

(c) Notice of a bond election shall be given as provided by

Section 1251.003, Government Code.

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

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

Sec. 1032.204. MATURITY OF GENERAL OBLIGATION BONDS. District

general obligation bonds must mature not later than 50 years

after the date of issuance.

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

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

Sec. 1032.205. 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. 1032.206. 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 revenue derived from the operation of the

district's hospitals.

(c) The bonds may be additionally secured by a mortgage or deed

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

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

Sec. 1032.207. REFUNDING BONDS. (a) The board may, without an

election, issue refunding bonds to refund outstanding

indebtedness issued or assumed by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bond 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. 1032.208. 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.

Sec. 1032.209. ADDITIONAL MEANS OF SECURING REPAYMENT OF BONDS.

In addition to the authority to issue general obligation bonds

and revenue bonds under this subchapter, the board may provide

for the security and payment of district bonds from a pledge of a

combination of ad valorem taxes as authorized by Section 1032.202

and revenue and other sources authorized by Section 1032.206.

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 5, eff. June 19, 2009.

Sec. 1032.210. USE OF BOND PROCEEDS. The district may use the

proceeds of bonds issued under this subchapter to pay:

(1) any expense the board determines is reasonable and necessary

to issue, sell, and deliver the bonds;

(2) interest payments on the bonds during a period of

acquisition or construction of a project or facility to be

provided through the bonds, not to exceed five years;

(3) costs related to the operation and maintenance of a project

or facility to be provided through the bonds:

(A) during an estimated period of acquisition or construction,

not to exceed five years; and

(B) for one year after the project or facility is acquired or

constructed;

(4) costs related to the financing of the bond funds, including

debt service reserve and contingency funds;

(5) costs related to the bond issuance;

(6) costs related to the acquisition of land or interests in

land for a project or facility to be provided through the bonds;

and

(7) costs of construction of a project or facility to be

provided through the bonds, including the payment of related

professional services and expenses.

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 5, eff. June 19, 2009.

SUBCHAPTER F. TAXES

Sec. 1032.251. 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 pay:

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

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

(c) The board may not impose a tax to pay the principal of or

interest on revenue bonds issued under this chapter.

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

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

Sec. 1032.252. 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. 1032.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

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

elects to have taxes assessed and collected under Section

1032.254.

(b) The tax assessor-collector of Gonzales 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. 1032.254. 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 reside in the

district.

(c) The board shall set for the district tax assessor-collector:

(1) the term of employment; and

(2) compensation.

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

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

SUBCHAPTER G. DISSOLUTION

Sec. 1032.301. DISSOLUTION; ELECTION. (a) The district may be

dissolved only on approval of a majority of the district 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.

(c) The board shall order an election if the board receives a

petition requesting an election that is signed by at least 30

percent of the registered voters in the district.

(d) 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.

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

election ordered under this section.

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

Sec. 1032.302. NOTICE OF ELECTION. (a) The board shall give

notice of an election under this subchapter by publishing once a

week for two consecutive weeks a substantial copy of 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 of the election.

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

Sec. 1032.303. BALLOT. The ballot for an election under this

subchapter must be printed to permit voting for or against the

proposition: "The dissolution of Gonzales Healthcare Systems."

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

Sec. 1032.304. 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 on the question of dissolution.

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

Sec. 1032.305. TRANSFER OF 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 Gonzales County or

another governmental entity in Gonzales 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 district makes the transfer under Subsection (a)(1),

the county or entity assumes all debts and obligations of the

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

dissolved.

(c) If Subsection (a)(1) does not apply and the board

administers the property, assets, and debts of the district under

Subsection (a)(2), the district is dissolved when all money has

been disposed of and all district debts have been paid or

settled.

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

Sec. 1032.306. 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.

(c) A taxpayer may request that the taxpayer's share of surplus

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 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

Sec. 1032.307. 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

Gonzales County summarizing the board's actions in dissolving the

district.

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

Court of Gonzales 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 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-3-health > Chapter-1032-gonzales-healthcare-systems

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 3. HEALTH

SUBTITLE A. HOSPITAL DISTRICTS

CHAPTER 1032. GONZALES HEALTHCARE SYSTEMS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1032.001. 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 Gonzales Healthcare Systems.

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

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

Sec. 1032.002. AUTHORITY FOR OPERATION. The district operates

and is administered and financed in accordance with Section 9,

Article IX, Texas Constitution, and has the rights, powers, and

duties provided by this chapter.

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

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

Sec. 1032.003. 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. 1032.004. DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Gonzales County

except the district does not include the territory of the

following districts that lie within the county as those districts

existed on January 1, 1975:

(1) Nixon Hospital District of Gonzales and Wilson Counties;

(2) DeWitt Medical District;

(3) Yoakum Hospital District; and

(4) Shiner Independent School District of Shiner and Lavaca

Counties.

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

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

Sec. 1032.005. 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. 1032.006. 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 2007, 80th Leg., R.S., Ch.

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

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1032.051. BOARD ELECTION; TERM. (a) The board consists of

nine directors elected as follows:

(1) four directors, each of whom is elected from the county

commissioners precinct represented by the director; and

(2) five directors from the district at large.

(b) Directors serve staggered four-year terms.

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

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

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 1, eff. June 19, 2009.

Sec. 1032.052. NOTICE OF ELECTION. Notice of an election of

directors shall be published in accordance with Section 4.003,

Election Code, in a newspaper or newspapers that individually or

collectively have general circulation in the district.

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

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

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 2, eff. June 19, 2009.

Sec. 1032.054. QUALIFICATIONS FOR OFFICE. (a) A person may not

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

(1) a district resident; and

(2) a qualified voter.

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

person is:

(1) the district administrator; or

(2) a district employee.

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

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

Sec. 1032.055. 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1032.056. 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.

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

unexpired term.

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

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

Sec. 1032.057. 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. 1032.058. VOTING REQUIREMENT. A concurrence of five

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. 1032.059. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR.

(a) The board shall appoint a qualified person as district

administrator.

(b) The board may appoint an assistant administrator.

(c) The district administrator and any assistant administrator

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. 1032.060. 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. 1032.061. EMPLOYEES; APPOINTMENT OF STAFF. (a) The board

may appoint to 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.

(c) The board may delegate to the district administrator the

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.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1032.101. 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. 1032.102. 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1032.103. 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. 1032.104. HOSPITAL SYSTEM. (a) The district shall provide

for the establishment of a hospital system by:

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

renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the buildings and equipment for hospital

purposes.

(b) The hospital system may include any 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. 1032.105. 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. 1032.106. 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. 1032.107. 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 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.

(c) The district may acquire equipment for use in the district's

hospital system and mortgage or pledge the property as security

for the payment of the purchase price.

(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. 1032.108. 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 or convenient 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.

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

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. 1032.109. 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. 1032.110. CONSTRUCTION CONTRACTS. A construction contract

that involves the expenditure of more than the amount provided by

Section 271.024, Local Government Code, may be made only after

competitive bidding in the manner provided by Subchapter B,

Chapter 271, Local Government Code.

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

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

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 3, eff. June 19, 2009.

Sec. 1032.111. 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. 1032.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND

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

municipality located outside the district's boundaries 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 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. 1032.113. 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 for the medical,

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. 1032.114. 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.

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

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) A 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. 1032.115. AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued.

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

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

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1032.151. 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; and

(7) the estimated tax rate required.

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

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

Sec. 1032.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The

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

(b) Notice of the hearing must be published one time at least 10

days before the date of the hearing.

(c) Any district resident is entitled to be 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 interests 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. 1032.153. 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. 1032.154. 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. 1032.155. FISCAL YEAR. (a) The district operates on 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1032.156. ANNUAL AUDIT. The board annually shall have an

audit made of the district's financial condition.

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

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

Sec. 1032.157. 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1032.158. 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. 1032.159. 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 1032.160(b), 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.

(c) This chapter, including Subsection (b), does not limit the

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 first executes 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1032.160. SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Section 1032.107(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

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.

Sec. 1032.161. GENERAL AUTHORITY TO BORROW MONEY; SECURITY. (a)

The board may borrow money at a rate not to exceed the maximum

annual percentage rate allowed by law 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 following the date of the pledge that is not

pledged to pay the principal of or interest on district bonds; or

(3) a district bond that has been authorized but not sold.

(c) A loan for which taxes or bonds are pledged must mature not

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 2009, 81st Leg., R.S., Ch.

605, Sec. 4, eff. June 19, 2009.

SUBCHAPTER E. BONDS

Sec. 1032.201. 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. 1032.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the

time general obligation bonds are issued by the district under

Section 1032.201, 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 75

cents on each $100 valuation of all taxable property in the

district.

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

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

Sec. 1032.203. 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.

(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 maturity of the bonds.

(c) Notice of a bond election shall be given as provided by

Section 1251.003, Government Code.

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

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

Sec. 1032.204. MATURITY OF GENERAL OBLIGATION BONDS. District

general obligation bonds must mature not later than 50 years

after the date of issuance.

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

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

Sec. 1032.205. 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. 1032.206. 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 revenue derived from the operation of the

district's hospitals.

(c) The bonds may be additionally secured by a mortgage or deed

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

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

Sec. 1032.207. REFUNDING BONDS. (a) The board may, without an

election, issue refunding bonds to refund outstanding

indebtedness issued or assumed by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bond 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. 1032.208. 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.

Sec. 1032.209. ADDITIONAL MEANS OF SECURING REPAYMENT OF BONDS.

In addition to the authority to issue general obligation bonds

and revenue bonds under this subchapter, the board may provide

for the security and payment of district bonds from a pledge of a

combination of ad valorem taxes as authorized by Section 1032.202

and revenue and other sources authorized by Section 1032.206.

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 5, eff. June 19, 2009.

Sec. 1032.210. USE OF BOND PROCEEDS. The district may use the

proceeds of bonds issued under this subchapter to pay:

(1) any expense the board determines is reasonable and necessary

to issue, sell, and deliver the bonds;

(2) interest payments on the bonds during a period of

acquisition or construction of a project or facility to be

provided through the bonds, not to exceed five years;

(3) costs related to the operation and maintenance of a project

or facility to be provided through the bonds:

(A) during an estimated period of acquisition or construction,

not to exceed five years; and

(B) for one year after the project or facility is acquired or

constructed;

(4) costs related to the financing of the bond funds, including

debt service reserve and contingency funds;

(5) costs related to the bond issuance;

(6) costs related to the acquisition of land or interests in

land for a project or facility to be provided through the bonds;

and

(7) costs of construction of a project or facility to be

provided through the bonds, including the payment of related

professional services and expenses.

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 5, eff. June 19, 2009.

SUBCHAPTER F. TAXES

Sec. 1032.251. 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 pay:

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

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

(c) The board may not impose a tax to pay the principal of or

interest on revenue bonds issued under this chapter.

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

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

Sec. 1032.252. 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. 1032.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

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

elects to have taxes assessed and collected under Section

1032.254.

(b) The tax assessor-collector of Gonzales 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. 1032.254. 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 reside in the

district.

(c) The board shall set for the district tax assessor-collector:

(1) the term of employment; and

(2) compensation.

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

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

SUBCHAPTER G. DISSOLUTION

Sec. 1032.301. DISSOLUTION; ELECTION. (a) The district may be

dissolved only on approval of a majority of the district 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.

(c) The board shall order an election if the board receives a

petition requesting an election that is signed by at least 30

percent of the registered voters in the district.

(d) 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.

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

election ordered under this section.

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

Sec. 1032.302. NOTICE OF ELECTION. (a) The board shall give

notice of an election under this subchapter by publishing once a

week for two consecutive weeks a substantial copy of 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 of the election.

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

Sec. 1032.303. BALLOT. The ballot for an election under this

subchapter must be printed to permit voting for or against the

proposition: "The dissolution of Gonzales Healthcare Systems."

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

Sec. 1032.304. 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 on the question of dissolution.

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

Sec. 1032.305. TRANSFER OF 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 Gonzales County or

another governmental entity in Gonzales 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 district makes the transfer under Subsection (a)(1),

the county or entity assumes all debts and obligations of the

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

dissolved.

(c) If Subsection (a)(1) does not apply and the board

administers the property, assets, and debts of the district under

Subsection (a)(2), the district is dissolved when all money has

been disposed of and all district debts have been paid or

settled.

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

Sec. 1032.306. 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.

(c) A taxpayer may request that the taxpayer's share of surplus

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 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

Sec. 1032.307. 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

Gonzales County summarizing the board's actions in dissolving the

district.

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

Court of Gonzales 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 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-3-health > Chapter-1032-gonzales-healthcare-systems

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 3. HEALTH

SUBTITLE A. HOSPITAL DISTRICTS

CHAPTER 1032. GONZALES HEALTHCARE SYSTEMS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1032.001. 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 Gonzales Healthcare Systems.

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

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

Sec. 1032.002. AUTHORITY FOR OPERATION. The district operates

and is administered and financed in accordance with Section 9,

Article IX, Texas Constitution, and has the rights, powers, and

duties provided by this chapter.

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

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

Sec. 1032.003. 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. 1032.004. DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Gonzales County

except the district does not include the territory of the

following districts that lie within the county as those districts

existed on January 1, 1975:

(1) Nixon Hospital District of Gonzales and Wilson Counties;

(2) DeWitt Medical District;

(3) Yoakum Hospital District; and

(4) Shiner Independent School District of Shiner and Lavaca

Counties.

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

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

Sec. 1032.005. 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. 1032.006. 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 2007, 80th Leg., R.S., Ch.

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

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1032.051. BOARD ELECTION; TERM. (a) The board consists of

nine directors elected as follows:

(1) four directors, each of whom is elected from the county

commissioners precinct represented by the director; and

(2) five directors from the district at large.

(b) Directors serve staggered four-year terms.

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

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

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 1, eff. June 19, 2009.

Sec. 1032.052. NOTICE OF ELECTION. Notice of an election of

directors shall be published in accordance with Section 4.003,

Election Code, in a newspaper or newspapers that individually or

collectively have general circulation in the district.

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

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

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 2, eff. June 19, 2009.

Sec. 1032.054. QUALIFICATIONS FOR OFFICE. (a) A person may not

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

(1) a district resident; and

(2) a qualified voter.

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

person is:

(1) the district administrator; or

(2) a district employee.

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

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

Sec. 1032.055. 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1032.056. 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.

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

unexpired term.

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

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

Sec. 1032.057. 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. 1032.058. VOTING REQUIREMENT. A concurrence of five

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. 1032.059. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR.

(a) The board shall appoint a qualified person as district

administrator.

(b) The board may appoint an assistant administrator.

(c) The district administrator and any assistant administrator

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. 1032.060. 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. 1032.061. EMPLOYEES; APPOINTMENT OF STAFF. (a) The board

may appoint to 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.

(c) The board may delegate to the district administrator the

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.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1032.101. 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. 1032.102. 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1032.103. 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. 1032.104. HOSPITAL SYSTEM. (a) The district shall provide

for the establishment of a hospital system by:

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

renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the buildings and equipment for hospital

purposes.

(b) The hospital system may include any 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. 1032.105. 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. 1032.106. 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. 1032.107. 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 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.

(c) The district may acquire equipment for use in the district's

hospital system and mortgage or pledge the property as security

for the payment of the purchase price.

(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. 1032.108. 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 or convenient 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.

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

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. 1032.109. 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. 1032.110. CONSTRUCTION CONTRACTS. A construction contract

that involves the expenditure of more than the amount provided by

Section 271.024, Local Government Code, may be made only after

competitive bidding in the manner provided by Subchapter B,

Chapter 271, Local Government Code.

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

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

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 3, eff. June 19, 2009.

Sec. 1032.111. 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. 1032.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND

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

municipality located outside the district's boundaries 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 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. 1032.113. 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 for the medical,

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. 1032.114. 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.

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

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) A 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. 1032.115. AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued.

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

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

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1032.151. 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; and

(7) the estimated tax rate required.

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

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

Sec. 1032.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The

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

(b) Notice of the hearing must be published one time at least 10

days before the date of the hearing.

(c) Any district resident is entitled to be 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 interests 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. 1032.153. 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. 1032.154. 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. 1032.155. FISCAL YEAR. (a) The district operates on 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1032.156. ANNUAL AUDIT. The board annually shall have an

audit made of the district's financial condition.

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

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

Sec. 1032.157. 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1032.158. 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. 1032.159. 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 1032.160(b), 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.

(c) This chapter, including Subsection (b), does not limit the

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 first executes 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1032.160. SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Section 1032.107(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

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.

Sec. 1032.161. GENERAL AUTHORITY TO BORROW MONEY; SECURITY. (a)

The board may borrow money at a rate not to exceed the maximum

annual percentage rate allowed by law 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 following the date of the pledge that is not

pledged to pay the principal of or interest on district bonds; or

(3) a district bond that has been authorized but not sold.

(c) A loan for which taxes or bonds are pledged must mature not

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 2009, 81st Leg., R.S., Ch.

605, Sec. 4, eff. June 19, 2009.

SUBCHAPTER E. BONDS

Sec. 1032.201. 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. 1032.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the

time general obligation bonds are issued by the district under

Section 1032.201, 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 75

cents on each $100 valuation of all taxable property in the

district.

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

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

Sec. 1032.203. 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.

(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 maturity of the bonds.

(c) Notice of a bond election shall be given as provided by

Section 1251.003, Government Code.

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

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

Sec. 1032.204. MATURITY OF GENERAL OBLIGATION BONDS. District

general obligation bonds must mature not later than 50 years

after the date of issuance.

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

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

Sec. 1032.205. 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. 1032.206. 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 revenue derived from the operation of the

district's hospitals.

(c) The bonds may be additionally secured by a mortgage or deed

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

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

Sec. 1032.207. REFUNDING BONDS. (a) The board may, without an

election, issue refunding bonds to refund outstanding

indebtedness issued or assumed by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bond 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. 1032.208. 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.

Sec. 1032.209. ADDITIONAL MEANS OF SECURING REPAYMENT OF BONDS.

In addition to the authority to issue general obligation bonds

and revenue bonds under this subchapter, the board may provide

for the security and payment of district bonds from a pledge of a

combination of ad valorem taxes as authorized by Section 1032.202

and revenue and other sources authorized by Section 1032.206.

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 5, eff. June 19, 2009.

Sec. 1032.210. USE OF BOND PROCEEDS. The district may use the

proceeds of bonds issued under this subchapter to pay:

(1) any expense the board determines is reasonable and necessary

to issue, sell, and deliver the bonds;

(2) interest payments on the bonds during a period of

acquisition or construction of a project or facility to be

provided through the bonds, not to exceed five years;

(3) costs related to the operation and maintenance of a project

or facility to be provided through the bonds:

(A) during an estimated period of acquisition or construction,

not to exceed five years; and

(B) for one year after the project or facility is acquired or

constructed;

(4) costs related to the financing of the bond funds, including

debt service reserve and contingency funds;

(5) costs related to the bond issuance;

(6) costs related to the acquisition of land or interests in

land for a project or facility to be provided through the bonds;

and

(7) costs of construction of a project or facility to be

provided through the bonds, including the payment of related

professional services and expenses.

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 5, eff. June 19, 2009.

SUBCHAPTER F. TAXES

Sec. 1032.251. 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 pay:

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

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

(c) The board may not impose a tax to pay the principal of or

interest on revenue bonds issued under this chapter.

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

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

Sec. 1032.252. 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. 1032.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

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

elects to have taxes assessed and collected under Section

1032.254.

(b) The tax assessor-collector of Gonzales 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. 1032.254. 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 reside in the

district.

(c) The board shall set for the district tax assessor-collector:

(1) the term of employment; and

(2) compensation.

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

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

SUBCHAPTER G. DISSOLUTION

Sec. 1032.301. DISSOLUTION; ELECTION. (a) The district may be

dissolved only on approval of a majority of the district 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.

(c) The board shall order an election if the board receives a

petition requesting an election that is signed by at least 30

percent of the registered voters in the district.

(d) 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.

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

election ordered under this section.

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

Sec. 1032.302. NOTICE OF ELECTION. (a) The board shall give

notice of an election under this subchapter by publishing once a

week for two consecutive weeks a substantial copy of 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 of the election.

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

Sec. 1032.303. BALLOT. The ballot for an election under this

subchapter must be printed to permit voting for or against the

proposition: "The dissolution of Gonzales Healthcare Systems."

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

Sec. 1032.304. 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 on the question of dissolution.

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

Sec. 1032.305. TRANSFER OF 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 Gonzales County or

another governmental entity in Gonzales 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 district makes the transfer under Subsection (a)(1),

the county or entity assumes all debts and obligations of the

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

dissolved.

(c) If Subsection (a)(1) does not apply and the board

administers the property, assets, and debts of the district under

Subsection (a)(2), the district is dissolved when all money has

been disposed of and all district debts have been paid or

settled.

Added by Acts 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

Sec. 1032.306. 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.

(c) A taxpayer may request that the taxpayer's share of surplus

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 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.

Sec. 1032.307. 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

Gonzales County summarizing the board's actions in dissolving the

district.

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

Court of Gonzales 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 2009, 81st Leg., R.S., Ch.

605, Sec. 6, eff. June 19, 2009.