CHAPTER 1064. MOORE COUNTY HOSPITAL DISTRICT

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SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 3. HEALTH

SUBTITLE A. HOSPITAL DISTRICTS

CHAPTER 1064. MOORE COUNTY HOSPITAL DISTRICT

Text of effective on April 01, 2011

SUBCHAPTER A. GENERAL PROVISIONS

Text of section effective on April 01, 2011

Sec. 1064.001. 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 Moore County Hospital District.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.002. AUTHORITY FOR OPERATION. The Moore County

Hospital District operates in accordance with Section 9, Article

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

provided by this chapter.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.003. ESSENTIAL PUBLIC FUNCTION. The district performs

an essential public function in carrying out the purposes of this

chapter.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.004. DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Moore County,

Texas, unless the boundaries are expanded under Subchapter D.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.005. 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 2009, 81st Leg., R.S., Ch.

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.006. 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 2009, 81st Leg., R.S., Ch.

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.007. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The

legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

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

1139, Sec. 1.01, eff. April 1, 2011.

SUBCHAPTER B. DISTRICT ADMINISTRATION

Text of section effective on April 01, 2011

Sec. 1064.051. DEFINITION. In this subchapter, "medical staff"

means physicians who:

(1) are licensed to practice medicine in this state; and

(2) hold medical staff privileges granted by the district.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.052. BOARD; TERM. (a) The board consists of seven

directors, appointed as follows:

(1) six directors appointed by the Commissioners Court of Moore

County; and

(2) one director appointed by the medical staff of the

district's hospital in accordance with procedures prescribed by

the directors appointed under Subdivision (1).

(b) The director appointed under Subsection (a)(2) must be a

member of the medical staff of the district's hospital. If the

director is no longer a member of the medical staff, the person

vacates the position.

three-year terms. The director appointed under Subsection (a)(2)

serves a two-year term.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.053. QUALIFICATIONS FOR OFFICE. (a) A person may not

be appointed as a director unless the person is:

(1) a district resident; and

(2) a qualified voter.

(b) Except as provided by Section 1064.052(a)(2), a person is

not eligible to serve as a director if the person is:

(1) a district administrator;

(2) a district employee; or

(3) a member of the medical staff.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.054. BOARD VACANCY. If a vacancy occurs in the office

of a director, the entity that appointed the vacating director

shall appoint a director for the unexpired term.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.055. OFFICERS. (a) The board shall elect:

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

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

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

unexpired term.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.056. 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 2009, 81st Leg., R.S., Ch.

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.057. VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.058. ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The

board shall appoint a qualified person as district administrator.

(b) The board may appoint an assistant administrator.

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 $500,000 that:

(1) is conditioned on the administrator performing the

administrator's duties; and

(2) contains any other conditions the board requires.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.059. GENERAL DUTIES OF DISTRICT ADMINISTRATOR.

Subject to any 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 2009, 81st Leg., R.S., Ch.

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.060. APPOINTMENT OF STAFF; EMPLOYEES. (a) The board

may appoint doctors to the staff as the board considers necessary

for the efficient operation of the district and may make

temporary appointments to the staff if warranted.

(b) The board may employ physicians or other health care

providers as the board considers necessary for the efficient

operation of the district.

architects, and attorneys as the board considers proper.

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

authority to employ technicians, nurses, and other district

employees, except physicians.

(e) This section does not authorize the board to supervise or

control the practice of medicine, as prohibited by Subtitle B,

Title 3, Occupations Code.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.061. SENIORITY; RETIREMENT BENEFITS. The board may:

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

including rules for a retirement plan based on seniority; and

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

employee continuously employed in the operation or management of

hospital facilities:

(A) constructed by the district; or

(B) acquired by the district, including facilities acquired when

the district was created.

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

1139, Sec. 1.01, eff. April 1, 2011.

SUBCHAPTER C. POWERS AND DUTIES

Text of section effective on April 01, 2011

Sec. 1064.101. DISTRICT RESPONSIBILITY. The district has full

responsibility for providing hospital care for the district's

indigent residents.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.102. 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 or to provide medical care.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The

board shall manage, control, and administer the hospital system

and the district's money and resources.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.104. HOSPITAL SYSTEM; ANCILLARY HEALTH CARE SERVICES

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 and treatment of the sick or

injured;

(2) facilities for outpatient clinics;

(3) dispensaries;

(4) facilities for geriatric domiciliary care;

(5) convalescent home facilities;

(6) necessary nurses' domiciliaries and training centers;

(7) blood banks;

(8) community mental health centers;

(9) research centers or laboratories; and

(10) any other facilities the board considers necessary for

hospital care.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.105. 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 2009, 81st Leg., R.S., Ch.

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.106. 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 2009, 81st Leg., R.S., Ch.

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.107. 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. 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.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.108. EMINENT DOMAIN. (a) The district may exercise

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

interest in any type of property located in district territory if

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

right, or privilege conferred by this chapter.

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

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

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

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

district is not required to:

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

in the trial court;

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

order or a temporary injunction; or

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

or petition for review.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.109. 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 2009, 81st Leg., R.S., Ch.

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.110. CONSTRUCTION AND PURCHASE CONTRACTS. (a) A

construction or purchase contract that involves the expenditure

of more than $15,000 may be made only after advertising in the

manner provided by Subchapter B, Chapter 271, Local Government

Code.

(b) Section 271.059, Local Government Code, relating to

performance and payment bonds, applies to construction contracts

let by the district.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.111. OPERATING AND MANAGEMENT CONTRACTS. The board

may enter into an operating or management contract relating to a

district facility.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.112. CONTRACTS FOR CERTAIN SERVICES. The board may

contract with any state, the United States, an agency or

political subdivision of those entities, or a charitable or other

private entity inside or outside the district for the district

to:

(1) furnish a mobile emergency medical service; or

(2) provide for the investigatory or welfare needs of district

inhabitants or of persons for whom the public or private entity

has an obligation to provide care.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.113. CONTRACTS FOR HEALTH CARE. The board may

contract with any public or private entity, including a

charitable organization or a political subdivision, to provide

health care or related services inside or outside the district.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.114. 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

patient's 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) determine the patient's ability to pay; and

(2) issue any appropriate orders.

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

substantial evidence rule applies to the appeal.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.115. REIMBURSEMENT FOR SERVICES. (a) The board shall

require a county, municipality, or public hospital located

outside the district to reimburse the district for the district's

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

municipality, or public hospital as provided by Chapter 61,

Health and Safety Code.

(b) The board shall require the sheriff of Moore County to

reimburse the district for the district's care and treatment of a

person confined in a Moore County jail facility who is not

indigent and does not reside in the district.

municipality located in Moore County to reimburse the district

for the district's care and treatment of a person confined in a

jail facility of that municipality who is not indigent and does

not reside in the district.

(d) The board may contract with this or any other state, the

United States, or an agency or political subdivision of those

entities to reimburse the district for the care and treatment of

a sick or injured person.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.116. SALE OR LEASE OF HOSPITAL. (a) In this section,

"long-term lease" means a lease for a term that exceeds 10 years.

(b) The board may not sell a hospital owned and operated by the

district, including real property, or lease the hospital under a

long-term lease that relinquishes control of the hospital to the

lessee unless:

(1) the agreement for the sale or lease of the hospital provides

for indigent care in the district;

(2) in the event of a sale of the hospital, the board has

published notice of the proposed sale twice in a newspaper with

general circulation in Moore County, with the first publication

occurring not later than the 61st day before the date of the

proposed sale, and the second publication occurring not earlier

than the 30th day or later than the eighth day before the date of

the proposed sale; and

(3) the majority of the votes cast by district voters at an

election held for that purpose approve the sale or lease, as

appropriate.

(1) date of the proposed sale;

(2) name and address of the proposed buyer; and

(3) proposed purchase price.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.117. AUTHORITY TO SUE AND BE SUED. (a) The district,

through the board, may sue and be sued.

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

defenses to which similar authorities are entitled.

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

1139, Sec. 1.01, eff. April 1, 2011.

SUBCHAPTER D. CHANGE IN BOUNDARIES

Text of section effective on April 01, 2011

Sec. 1064.151. TERRITORY THAT MAY BE ANNEXED. (a) The

district may annex territory that is not located in:

(1) Moore County;

(2) the boundaries of another hospital district; or

(3) the proposed boundaries of another hospital district

authorized by the legislature under Section 9, Article IX, Texas

Constitution.

(b) Territory may be annexed in one or more tracts. Each tract

must be contiguous to:

(1) the district; or

(2) territory proposed to be annexed to the district.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.152. PETITION TO ANNEX TERRITORY. (a) A petition

requesting that territory be annexed to the district may be

presented to the board. The petition must:

(1) describe the tract or tracts of land to be annexed; and

(2) be signed by 100 or a majority of the registered voters who:

(A) reside in the territory to be annexed; and

(B) own property that will be subject to district taxation.

(b) This chapter does not prohibit simultaneous action on

several petitions for annexation. Each ballot proposition must

be submitted for each different territory proposed to be annexed,

and an election held in each territory represented by a petition.

that include all or part of the same territory to be annexed to

the district, the petition filed first with the board shall be

considered and another petition that includes any of the same

territory has no effect.

(d) The board may consider all petitions for annexation

presented to it and may approve or reject each petition. The

board may not partly approve or partly reject any petition.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.153. ELECTION ORDER. (a) If, on receipt of a

petition under Section 1064.152, the board finds that annexing

the territory is in the district's best interest, the board shall

within 90 days of the board's finding:

(1) approve the petition; and

(2) order an election on the question of annexing the territory

to the district.

(b) The election order shall provide for a separate election:

(1) in the territory proposed to be annexed; and

(2) in the district.

elections and must specify:

(1) the date of the election;

(2) the location of the polling places;

(3) the form of ballot; and

(4) the presiding judge and alternate judge for each polling

place.

(d) The election order may provide that:

(1) the entire district is one election precinct; or

(2) the county election precincts be combined for the election.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.154. BALLOT. The ballot for the election shall be

printed to permit voting for or against the proposition: "The

establishment of the Moore County Hospital District with extended

boundaries and establishment of a hospital district tax at a rate

not to exceed 75 cents on the $100 valuation on all taxable

property in the extended boundaries of the hospital district that

is subject to hospital district taxation for hospital purposes."

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.155. NOTICE OF ELECTION. (a) Notice of the election

shall be given by publishing once a week for two consecutive

weeks a substantial copy of the election order in a newspaper or

newspapers that individually or collectively have general

circulation in the county or district.

(b) The first publication must appear at least 30 days before

the date of the election.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.156. ELECTION RESULTS. (a) Territory may not be

annexed to the district unless:

(1) an election is held in accordance with this subchapter; and

(2) the annexation is approved by a majority of the voters

voting in the election in:

(A) the district; and

(B) the territory proposed to be annexed.

(b) If the territory is annexed to the district, a certified

copy of the order canvassing the returns of the election shall be

filed and recorded in the deed records.

months of an election previously held under this subchapter.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.157. EFFECT OF ANNEXATION. (a) Territory annexed to

the district is part of the district for all purposes.

(b) The annexation of territory to the district does not change

the manner in which the board or district officers are selected.

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

1139, Sec. 1.01, eff. April 1, 2011.

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Text of section effective on April 01, 2011

Sec. 1064.201. BUDGET. (a) The district administrator shall

prepare an annual budget for approval by the board.

(b) The proposed budget must contain a complete financial

statement of:

(1) the outstanding obligations of the district;

(2) the 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 2009, 81st Leg., R.S., Ch.

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.202. 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.

(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, in the board's sole judgment and discretion:

(1) applicable federal and state law warrants and allows; and

(2) the interest of district residents requires in furtherance

of hospital purposes.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.203. AMENDMENTS TO BUDGET. The budget may be amended

as required by circumstances. The board must approve all

amendments.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.204. RESTRICTION ON EXPENDITURES. Money may be spent

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

budget.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.205. FISCAL YEAR. The district operates according to

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

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.206. AUDIT. (a) The district shall have an

independent audit made of the district's financial condition for

the fiscal year.

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

at the district's office.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.207. 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 2009, 81st Leg., R.S., Ch.

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.208. FINANCIAL REPORT. As soon as practicable after

the close of each fiscal year, the district administrator shall

prepare for the board:

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

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

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.209. DEPOSITORY. (a) The board shall select one or

more depositories for district money.

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

Section 1064.210(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 and shall remain on

deposit.

power of the board to:

(1) place a part of district money on time deposit or other

forms of deposit; or

(2) purchase certificates of deposit.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.210. SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Section 1064.107(c) and by

Subchapter F, the district may not incur an obligation payable

from district revenue other than the revenue on hand or to be on

hand in the current and following district fiscal years.

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

fund reserves only in any funds or securities authorized by law,

including Chapter 2256, Government Code.

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

1139, Sec. 1.01, eff. April 1, 2011.

SUBCHAPTER F. BONDS

Text of section effective on April 01, 2011

Sec. 1064.251. GENERAL OBLIGATION BONDS, CERTIFICATES OF

OBLIGATION, AND OTHER FINANCING. The board may issue and sell

general obligation bonds, certificates of obligation, or any

other type of financing authorized by the laws of this state,

including that type of financing authorized by Chapter 271, Local

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.252. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the

time general obligation bonds are issued under Section 1064.251,

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

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

interest on the bonds as the bonds mature.

(b) The tax required by this section together with any other 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 2009, 81st Leg., R.S., Ch.

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.253. 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 interest rate of the bonds; and

(6) the maximum maturity of the bonds.

Section 1251.003, Government Code.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.254. 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.

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, 264.046, 264.047, 264.048, and 264.049, Health

and Safety Code, for issuance of revenue bonds by a county

hospital authority.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.255. 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 outstanding indebtedness; or

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

principal amount of outstanding indebtedness.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.256. MATURITY OF BONDS. District bonds must mature

not later than 40 years after the date of issuance.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.257. EXECUTION OF BONDS. (a) The board president

shall execute district 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 2009, 81st Leg., R.S., Ch.

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.258. BONDS EXEMPT FROM TAXATION. The following are

exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

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

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

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

1139, Sec. 1.01, eff. April 1, 2011.

SUBCHAPTER G. TAXES

Text of section effective on April 01, 2011

Sec. 1064.301. IMPOSITION OF AD VALOREM TAX. (a) The board

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

district taxation.

(b) The board shall impose the tax to:

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

other obligations issued or assumed by the district for hospital

purposes;

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

and hospital system;

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

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

lease, or condemnation.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.302. 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 2009, 81st Leg., R.S., Ch.

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.303. ASSESSMENT AND COLLECTION OF TAXES IN SAME MANNER

AS COUNTY. (a) This section applies unless the board elects to

have taxes assessed and collected under Section 1064.304.

(b) District taxes shall be assessed and collected in the same

manner as provided by law for the assessment and collection of

county taxes.

imposed by the district.

(d) The tax assessor-collector shall charge and deduct from

payments to the district an amount as fees for assessing and

collecting the taxes at a rate determined by the board.

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

1139, Sec. 1.01, eff. April 1, 2011.

Text of section effective on April 01, 2011

Sec. 1064.304. 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 before December 1 and governs the manner in which taxes

are assessed and collected, until changed by a similar

resolution.

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

(1) the terms of employment;

(2) compensation; and

(3) the requirement for bond to assure the faithful performance

of the tax assessor-collector's duties.

amount of not less than $100,000.

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

1139, Sec. 1.01, eff. April 1, 2011.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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