CHAPTER 1055. MARION COUNTY HOSPITAL DISTRICT

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SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 3. HEALTH

SUBTITLE A. HOSPITAL DISTRICTS

CHAPTER 1055. MARION COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1055.001. 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 Marion County Hospital District.

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

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

Sec. 1055.002. AUTHORITY FOR OPERATION. The district operates

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

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

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

Sec. 1055.003. POLITICAL SUBDIVISION. The district is a

political subdivision of this state.

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

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

Sec. 1055.004. DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Marion County,

Texas.

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

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

Sec. 1055.005. 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.

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1055.051. BOARD ELECTION; TERM. (a) The district is

governed by a board of seven directors elected from the district

at large.

(b) Directors serve staggered two-year terms unless four-year

terms are established under Section 285.081, Health and Safety

Code.

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

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

Sec. 1055.052. NOTICE OF ELECTION. Not later than the 10th day

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

election shall be published one time in a newspaper of general

circulation in Marion County.

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

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

Sec. 1055.053. QUALIFICATIONS FOR OFFICE. A person may not be

elected or appointed as a director unless the person is a

district resident.

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

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

Sec. 1055.054. BOND; RECORD OF BOND AND OATH OR AFFIRMATION.

(a) Each director shall execute a good and sufficient bond for

$1,000 that is:

(1) payable to the district; and

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

duties.

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

affirmation of office shall be deposited with the district's

depository bank for safekeeping.

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

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

Sec. 1055.055. BOARD VACANCY. (a) If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term.

(b) If the number of directors is reduced to fewer than four for

any reason, the remaining directors shall immediately call a

special election to fill the vacancies. If the remaining

directors do not call the election, a district court, on

application of a district voter or taxpayer, may order the

directors to hold the election.

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

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

Sec. 1055.056. DIRECTOR RIGHTS AND RESPONSIBILITIES. All

directors have the same rights and responsibilities with regard

to voting and other matters.

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

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

Sec. 1055.057. OFFICERS. The board shall elect from among its

members a president and a secretary.

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

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

Sec. 1055.058. COMPENSATION; EXPENSES. A director serves

without compensation but may be reimbursed for actual expenses

incurred in the performance of official duties on approval of the

expenses by a majority of the board.

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

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

Sec. 1055.059. VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business.

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

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

Sec. 1055.060. EMPLOYEES. The board may employ a general

manager, attorneys, bookkeepers, architects, or any other

employees considered necessary for the efficient operation of the

district.

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

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

Sec. 1055.061. MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

Except as provided by Section 1055.054, all district records,

including books, accounts, notices, minutes, and all other

matters of the district and the operation of its facilities,

shall be:

(1) maintained at the district office; and

(2) open to public inspection at the district office at all

reasonable hours.

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

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

Sec. 1055.062. SEAL. The board may adopt a seal for the

district.

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

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

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1055.101. DISTRICT RESPONSIBILITY. The district has full

responsibility for providing medical and hospital care for the

district's needy and indigent residents.

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

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

Sec. 1055.102. RESTRICTION ON COUNTY OR MUNICIPALITY TAXATION.

Marion County or a municipality in the district may not impose a

tax on property in the district for hospital purposes.

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

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

Sec. 1055.103. RULES. (a) The board may adopt rules governing

the operation of the district, including district facilities.

(b) On approval by the board, the rules may be published in

booklet form at district expense and made available to any

taxpayer on request.

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

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

Sec. 1055.104. PURCHASING AND ACCOUNTING PROCEDURES. (a) The

board may prescribe the method and manner of making purchases and

expenditures by and for the district.

(b) The board shall prescribe:

(1) all accounting and control procedures; and

(2) the method of purchasing necessary supplies, materials, and

equipment.

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

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

Sec. 1055.105. 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, real, personal, or mixed,

located in district territory, if the interest is necessary or

convenient for the district to exercise a right, power,

privilege, or function conferred on the district by this chapter.

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

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

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

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

district is not required to:

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

in the trial court;

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

order or a temporary injunction; or

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

or writ of error.

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

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

Sec. 1055.106. 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 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. 1055.107. AUTHORITY TO LEASE DISTRICT FACILITIES. (a) The

district may lease district facilities acquired or constructed

under this chapter to any person for consideration the board

determines is reasonable and adequate.

(b) The terms of a lease entered under this section may include

a provision that requires the lessee to:

(1) agree to maintain the district's hospital facilities; or

(2) care for and treat the indigent or needy patients of Marion

County.

by Subsection (b)(2), Marion County may:

(1) spend money and make payments to the lessee for the care and

treatment;

(2) impose ad valorem taxes; or

(3) pledge any of the county's money or resources to payments

made under the contract.

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

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

Sec. 1055.108. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a

patient who resides in the district is admitted to a district

facility, the board shall 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 an agent designated by the district to handle the inquiry

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.

are liable to 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's treasurer a specified amount each

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

proportionate to the person's financial ability and may not

exceed the actual per capita cost of maintenance.

(d) The district 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's designated agent, the board shall hold

a hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue an appropriate order.

(f) Either party to the dispute may appeal the order to the

district court.

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

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

Sec. 1055.109. AUTHORITY TO SUE AND BE SUED. As a governmental

agency, the district may sue and be sued in its own name in any

court of this state.

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

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

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1055.151. BUDGET. The board annually shall require a

budget to be prepared for the next fiscal year that includes:

(1) proposed expenditures and disbursements;

(2) estimated receipts and collections; and

(3) the amount of taxes required to be imposed for the year.

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

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

Sec. 1055.152. PROPOSED BUDGET: NOTICE AND HEARING. (a) The

board shall hold a public hearing on the proposed budget.

(b) Notice of the hearing must be published at least once in a

newspaper of general circulation in Marion County not later than

the 10th day before the date of the hearing.

(1) appear at the time and place designated in the notice; and

(2) be heard regarding any item included in the proposed budget.

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

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

Sec. 1055.153. FISCAL YEAR. The district operates on a fiscal

year that begins on October 1 and ends on September 30.

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

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

Sec. 1055.154. ANNUAL AUDIT. (a) The board annually shall have

an independent audit made of the district's books and records for

the fiscal year.

(b) Not later than December 31 each year, the audit shall be

filed:

(1) with the comptroller; and

(2) at the district office.

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

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

Sec. 1055.155. DEPOSITORY OR TREASURER. (a) The board by

resolution shall designate a bank in Marion County as the

district's depository or treasurer. A designated bank serves for

two years until a successor is designated.

(b) All income received by the district shall be deposited with

the district depository.

for securing county funds.

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

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

SUBCHAPTER E. BONDS AND OTHER FINANCIAL ARRANGEMENTS

Sec. 1055.201. GENERAL OBLIGATION BONDS AND OTHER FINANCIAL

ARRANGEMENTS. The board may issue and sell general obligation

bonds, secure long-term loans, or make other financial

arrangements as district obligations in the name and on the faith

and credit of the district. The money shall be used for any

purpose relating to:

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

renovation of buildings or improvements;

(2) equipping buildings or improvements for hospital purposes;

and

(3) the operation of the district.

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

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

Sec. 1055.202. TAX TO PAY GENERAL OBLIGATION BONDS OR OTHER

FINANCIAL ARRANGEMENTS. (a) 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 general

obligation bonds issued or other financial arrangements made

under Section 1055.201 as the bonds or other arrangements 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. 1055.203. ELECTION FOR GENERAL OBLIGATION BONDS OR OTHER

FINANCIAL ARRANGEMENTS. (a) The district may issue general

obligation bonds or make other financial arrangements secured by

tax revenue only if authorized by a majority of the district

voters voting at an election held for that purpose.

(b) The board may order the election on its own motion.

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding election officers;

(4) the purpose for which the bonds are to be issued or the

financial arrangements made;

(5) the amount of the bonds or other financial arrangements to

be authorized;

(6) the maximum interest rate for the bonds or other financial

arrangements; and

(7) the maximum maturity of the bonds.

(d) Notice of an election under this section shall be given by

publishing a substantial copy of the order calling the election

in a newspaper of general circulation in Marion County once a

week for two consecutive weeks before the date of the election.

The first publication must occur at least 14 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. 1055.204. 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.

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

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

Sec. 1055.205. REVENUE BONDS; OTHER FINANCIAL ARRANGEMENTS. (a)

The board may, without an election, issue revenue bonds or make

other financial arrangements payable from and secured by a pledge

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

district's hospital system. The district may use the money 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 issued in the manner provided 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. 1055.206. MATURITY OF BONDS. General obligation bonds and

revenue 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.

SUBCHAPTER F. TAXES

Sec. 1055.251. IMPOSITION OF AD VALOREM TAX. (a) On final

approval of the annual budget, 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 or

other obligations issued or assumed by the district for hospital

purposes;

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

and hospital system;

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

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

lease, or condemnation.

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

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

Sec. 1055.252. TAX RATE. The board may impose the tax at a rate

not to 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. 1055.253. TAX ASSESSOR-COLLECTOR. The tax

assessor-collector of Marion 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.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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