CHAPTER 1037. HAMLIN HOSPITAL DISTRICT

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SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 3. HEALTH

SUBTITLE A. HOSPITAL DISTRICTS

CHAPTER 1037. HAMLIN HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1037.001. DEFINITIONS. In this chapter:

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

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

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

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

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

Sec. 1037.002. AUTHORITY FOR CREATION. The district is created

under the authority of Section 9, Article IX, Texas Constitution.

The district has the rights, powers, and duties conferred by

this chapter and general laws relating to hospital districts.

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

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

Sec. 1037.003. 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. 1037.004. DISTRICT TERRITORY. The district is composed of

the territory described by Section 1, Chapter 561, Acts of the

63rd Legislature, Regular Session, 1973.

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

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

Sec. 1037.005. CORRECTION OF INVALID PROCEDURES. If a court

holds that any procedure under this chapter violates the

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

by resolution may provide an alternative procedure that conforms

with the constitution.

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

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

Sec. 1037.006. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The support and maintenance of the district may not

become a charge against or obligation of this state.

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

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

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1037.051. BOARD ELECTION; TERM. (a) The board consists of

seven directors elected from the district at large.

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

285.081, Health and Safety Code:

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

(2) the terms of four directors expire in odd-numbered years and

the terms of three directors expire in even-numbered years.

of the election.

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

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

Sec. 1037.052. NOTICE OF ELECTION. At least five days before

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

shall be published one time in a newspaper of general circulation

in the district.

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

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

Sec. 1037.053. BALLOT PETITION. A person who wants to have the

person's name printed on the ballot as a candidate for director

must file with the board secretary a petition requesting that

action. The petition must be:

(1) signed by at least 10 registered voters; and

(2) filed at least 25 days before the date of the election.

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

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

Sec. 1037.054. QUALIFICATIONS FOR OFFICE. To be eligible to

hold office as a director, a person must be a resident

property-owning taxpaying voter of the district.

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

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

Sec. 1037.055. BOARD VACANCY. If a vacancy occurs in the office

of director, the remaining directors by majority vote 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. 1037.056. OFFICERS. (a) The board shall elect from among

its members a president, vice president, secretary, and other

officers as in the judgment of the board are necessary.

(b) The president is the chief executive officer of the district

and has the same right to vote as any other director.

vice president shall perform the president's duties and exercise

the president's powers under this chapter.

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

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

Sec. 1037.057. COMPENSATION; EXPENSES. A director serves

without compensation but may receive actual expenses incurred in

attending to district business on approval of the expenses by the

remainder of the board.

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

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

Sec. 1037.058. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR.

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

administrator.

(b) The board may appoint an 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. 1037.059. 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. 1037.060. 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 board shall determine the type, number, and location of

district employees required to maintain an adequate hospital

system. The board may employ fiscal agents, accountants,

architects, attorneys, and other employees the board considers

proper.

authority to hire district employees, including technicians and

nurses.

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

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

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1037.101. DISTRICT RESPONSIBILITY. The district has full

responsibility for providing hospital care for the district's

indigent residents.

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

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

Sec. 1037.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND

DEBT. A political subdivision located within the district may

not impose a tax or issue bonds or other obligations for hospital

purposes for the area of the district or to provide medical care

for district inhabitants.

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

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

Sec. 1037.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. (a)

The board shall manage, control, and administer the hospital

system and the district's money and resources.

(b) Unless specifically stated otherwise in this chapter, the

board has the power to do anything which, in their opinion, is

necessary for the good maintenance, operation, and welfare of the

district and the district's employees, patients, and property.

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

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

Sec. 1037.104. 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:

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

geriatric;

(2) facilities for outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses' domiciliaries and training centers;

(6) blood banks;

(7) research centers or laboratories; and

(8) ambulance and other facilities or services 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. 1037.105. 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. 1037.106. 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. 1037.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.

(a) The board shall determine the type of equipment and 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. The term of the lease

may not exceed 25 years.

hospital system and mortgage or pledge the property as security

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

under this subsection must provide that the entire obligation be

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

contract.

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

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

interest of the district's inhabitants. The board may not sell

or dispose of any real property unless the board affirmatively

finds that the real property is not needed for the operation of

the hospital system.

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

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

Sec. 1037.108. EMINENT DOMAIN. (a) The district may exercise

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

interest in any type of property located in district territory if

the interest is necessary for the district to exercise a power,

right, or privilege conferred by this chapter.

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

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

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

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

district is not required to:

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

in the trial court;

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

order or a temporary injunction; or

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

or writ of error.

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

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

Sec. 1037.109. GIFTS AND ENDOWMENTS. The board may accept for

the district a gift or endowment for hospital purposes 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. 1037.110. CONSTRUCTION CONTRACTS. A construction contract

that involves the expenditure of more than $2,000 may be made

only after advertising in the manner provided by Chapter 252 and

Subchapter C, Chapter 262, Local Government Code.

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

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

Sec. 1037.111. 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. 1037.112. 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. 1037.113. 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. 1037.114. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a

patient who resides in the district is admitted to a district

facility, the district administrator may have an inquiry made

into the circumstances of:

(1) the patient; and

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

patient's support.

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

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

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

cannot be paid becomes a charge against the district.

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

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

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

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

proportionate to the person's financial ability.

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

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

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

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

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

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

hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue any appropriate orders.

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

court. The substantial evidence rule applies to the appeal.

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

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

Sec. 1037.115. 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. 1037.151. BUDGET. (a) The district administrator shall

prepare an annual budget for approval by the board.

(b) The proposed budget must contain a complete financial

statement of:

(1) the outstanding obligations of the district;

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

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

the previous year;

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

the ensuing year;

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

budget is being prepared;

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

proposed budget;

(7) the estimated tax rate required; and

(8) the proposed expenditures and disbursements and the

estimated receipts and collections for the following fiscal year.

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

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

Sec. 1037.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The

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

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

the hearing shall be published one time in a newspaper or

newspapers that individually or collectively have general

circulation in the district.

participate at the hearing in accordance with the rules of

decorum and procedures prescribed by the board.

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

final 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. 1037.153. AMENDMENTS TO BUDGET. The annual 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. 1037.154. FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed 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. 1037.155. AUDIT. (a) The board shall have an independent

audit made of the district's financial condition for the fiscal

year.

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

at the district's principal office.

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

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

Sec. 1037.156. INSPECTION OF AUDIT AND DISTRICT RECORDS. The

audit and other district records shall be open to inspection at

the district's principal office.

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

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

Sec. 1037.157. 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. 1037.158. 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 1037.159(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.

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

deposit or to purchase certificates of deposit.

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

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

Sec. 1037.159. SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Section 1037.107(c) and by

Subchapter E, the board 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.

SUBCHAPTER E. BONDS

Sec. 1037.201. 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. 1037.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the

time general obligation bonds are issued under Section 1037.201,

the board shall impose an ad valorem tax at a rate sufficient to

create an interest and sinking fund to pay the principal of and

interest on the bonds as the bonds mature.

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

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

tax rate approved by the voters at the election authorizing the

imposition of the tax.

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

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

Sec. 1037.203. GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the district voters voting at an

election held for that purpose.

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

in county elections and must specify:

(1) the date of the election;

(2) the location of the polling places;

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

place;

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

(5) the maximum maturity of the bonds; and

(6) the maximum interest rate of the bonds.

Section 1251.003, Government Code.

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

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

Sec. 1037.204. REVENUE BONDS. (a) The board may, without an

election, 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.

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. 1037.205. 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. 1037.206. MATURITY OF BONDS. District bonds must mature

not later than 40 years after the date of issuance.

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

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

Sec. 1037.207. EXECUTION OF BONDS. (a) The board president

shall execute the district's 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. 1037.208. BONDS EXEMPT FROM TAXATION. The following are

exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

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

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

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

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

SUBCHAPTER F. TAXES

Sec. 1037.251. IMPOSITION OF AD VALOREM TAX. (a) The board

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

district taxation.

(b) The board shall impose the tax to:

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

other obligations issued or assumed by the district for hospital

purposes;

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

and hospital system, based on the final budget;

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

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

lease, or condemnation.

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

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

Sec. 1037.252. 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. 1037.253. TAX ASSESSOR-COLLECTOR. (a) The board shall

appoint a tax assessor-collector to assess and collect taxes

imposed by the district.

(b) The district tax assessor-collector must reside in the

district.

(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.

State Codes and Statutes

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