CHAPTER 1070. HANSFORD COUNTY HOSPITAL DISTRICT

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SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 3. HEALTH

SUBTITLE A. HOSPITAL DISTRICTS

CHAPTER 1070. HANSFORD COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1070.001. 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 Hansford County Hospital District.

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

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

Sec. 1070.002. AUTHORITY FOR OPERATION. The 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1070.003. 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. 1070.004. DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Hansford County,

Texas, unless the boundaries are expanded under Subchapter D.

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

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

Sec. 1070.005. 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. 1070.006. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The support and maintenance of the district may not

become a charge against or obligation of this state.

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

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

Sec. 1070.007. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The

legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

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

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

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1070.051. BOARD; TERM. (a) The board consists of six

directors appointed by the Commissioners Court of Hansford County

unless the method for selecting directors is changed under

Section 1070.052.

(b) Directors serve staggered two-year terms.

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

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

Sec. 1070.052. PETITION TO CHANGE METHOD FOR SELECTING

DIRECTORS; ELECTION. (a) The Commissioners Court of Hansford

County shall order an election on the question of electing

directors if the court receives a petition requesting that action

signed by at least 250 registered district voters who own taxable

property in the district as of the date the petition is presented

to the court. The election shall be held within 90 days of the

date the petition is presented and notice of the election is

given as provided by Section 1251.003, Government Code.

(b) The order calling the election must:

(1) specify the date of the election, the location of the

polling places, and the presiding judge and alternate judge for

each voting place; and

(2) provide for clerks as in a county election.

the proposition: "Providing the office of director of the

Hansford County Hospital District shall hereafter be an elective

office."

(d) If a majority of the district voters voting in the election

favor the proposition:

(1) directors in office at the time of the election shall serve

the terms for which the directors were appointed; and

(2) successor directors shall be elected as provided by Section

1070.053.

(e) Another election on the question of electing directors may

not be held before the third anniversary of the date of the most

recent election on electing directors.

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

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

Sec. 1070.053. DIRECTORS' ELECTION. (a) If a majority of the

votes in an election under Section 1070.052 favor electing the

directors, an election shall be held on the uniform election date

in May of each year.

(b) The order calling a directors' election must specify the

time, place, and purpose of the election.

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 50 registered voters; and

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

(d) 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.

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

285.081, Health and Safety Code, elected directors serve

staggered two-year terms.

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

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

Sec. 1070.054. QUALIFICATIONS FOR OFFICE. (a) A person may not

serve 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. 1070.055. BOARD VACANCY. (a) If a vacancy occurs in the

office of an appointed director, the commissioners court shall

appoint a director for the unexpired term.

(b) If a vacancy occurs in the office of an elected 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. 1070.056. OFFICERS. (a) The board shall elect:

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

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

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

unexpired term.

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

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

Sec. 1070.057. 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. 1070.058. VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business.

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

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

Sec. 1070.059. ADMINISTRATORS; ASSISTANT ADMINISTRATORS. (a)

The board shall appoint qualified persons as administrators of

the district or the ancillary health care facilities.

(b) The board may appoint assistant administrators.

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. 1070.060. 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;

(2) direct the affairs of the district; and

(3) have overall management responsibility for ancillary health

care facilities.

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

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

Sec. 1070.061. EMPLOYEES; APPOINTMENT OF STAFF. (a) The board

may appoint to the staff any doctors and allied health personnel

the board considers necessary for the efficient operation of the

district and may make temporary appointments as necessary.

(b) The district may employ fiscal agents, accountants,

architects, and attorneys the board considers proper.

authority to hire district employees, including technicians and

nurses.

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

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

Sec. 1070.062. RECRUITMENT OF STAFF AND EMPLOYEES. The board

may spend district money, enter into agreements, and take other

necessary action to recruit physicians, ancillary and allied

health professionals, and other persons to serve on the

district's medical staff or to be employed by the district,

including:

(1) advertising and marketing;

(2) paying travel, recruitment, and relocation expenses;

(3) providing a loan or scholarship to a physician or other

person who:

(A) is enrolled in health care education courses at an

institution of higher education; and

(B) contractually agrees to become a district employee or

medical staff member; and

(4) providing on a rent-free basis or subsidizing the cost of

office space or other facilities for a health care professional,

including a physician.

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

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

Sec. 1070.063. HEALTH CARE AND PROFESSIONAL EDUCATIONAL

PROGRAMS. The board may spend district money, enter into

agreements, and take other necessary action to conduct,

participate in, or otherwise assist in providing health care and

professional educational, development, or retraining programs for

current or prospective medical staff members or district

employees.

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

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

Sec. 1070.064. DAY-CARE SERVICES. (a) The board may take any

action to provide day-care services for the district's medical

staff members, allied health professionals, officers, directors,

and employees, including:

(1) spending district money;

(2) entering into agreements; and

(3) acquiring by lease, purchase, or lease to purchase

facilities, supplies, and equipment.

(b) The district may provide day-care services to district

residents as space permits.

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

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

Sec. 1070.065. 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 or ancillary health care facilities:

(A) constructed by the district; or

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

the district was created.

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

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

Sec. 1070.066. LIABILITY INSURANCE; INDEMNIFICATION. (a) The

board may defend or indemnify an officer, director, board

appointee, medical staff member, or district employee against or

from a claim, expense, or liability arising from duties performed

in that capacity, including a duty performed at a district

facility.

(b) The board may purchase and maintain liability insurance

coverage or establish a self-insurance program to fund an

indemnity obligation under this section.

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

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

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1070.101. DISTRICT RESPONSIBILITY. (a) The district has

full responsibility for providing hospital services for the

district's indigent residents.

(b) The district may assume full responsibility for providing

ancillary health care services for the district's indigent

residents.

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

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

Sec. 1070.102. 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1070.103. 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. 1070.104. 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 and ancillary health care services systems may

include:

(1) facilities and equipment to provide domiciliary care and

treatment of the sick or injured;

(2) outpatient clinics;

(3) dispensaries;

(4) geriatric domiciliary care;

(5) convalescent home facilities;

(6) physicians' offices;

(7) home health services;

(8) durable medical equipment;

(9) long-term care;

(10) skilled nursing care;

(11) intermediate nursing care;

(12) hospice care;

(13) ambulatory surgery centers;

(14) urgent care facilities;

(15) rural health clinics;

(16) operation of a mobile emergency medical service;

(17) necessary nurses' domiciliaries and training centers;

(18) blood banks;

(19) research centers or laboratories; and

(20) any other facilities or equipment the board considers

necessary to provide hospital and ancillary health care services.

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

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

Sec. 1070.105. RULES. The board may adopt rules governing:

(1) the operation of the hospital, ancillary health care

facilities, hospital system, and ancillary health care system;

and

(2) the duties, functions, and responsibilities of district

staff, employees, contractors, or agents.

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

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

Sec. 1070.106. 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. 1070.107. MOBILE EMERGENCY MEDICAL SERVICE. The district

may operate or provide for the operation of a mobile emergency

medical service.

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

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

Sec. 1070.108. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.

(a) The board shall determine the type, number, and location,

either inside or outside the district, of buildings required to

maintain an adequate hospital system and ancillary health care

services system.

(b) The board may lease all or part of the district's buildings,

facilities, or equipment on terms considered to be in the best

interest of the district's inhabitants. The term of the lease

may not exceed 25 years.

purchase, equipment for use in the district's hospital system and

mortgage or pledge the property as security for the payment of

the purchase or lease 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, lease, 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 otherwise dispose of any real property unless the

board affirmatively finds that the sale, lease, or disposition is

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. 1070.109. 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, 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. 1070.110. 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. 1070.111. CONSTRUCTION CONTRACTS. A construction contract

that involves the expenditure of more than $10,000 may be made

only after advertising in the manner provided by Chapter 252,

Local Government Code, Subchapter B, Chapter 271, Local

Government Code, or Section 286.078, Health and Safety Code.

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

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

Sec. 1070.112. OPERATING AND MANAGEMENT CONTRACTS. The board

may enter into an operating or management contract with a public

or private entity relating to the district's facilities,

equipment, or services.

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

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

Sec. 1070.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

TREATMENT. The board may contract with this state, another

state, a political subdivision of this or another 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. 1070.114. 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 hospital,

ancillary health care, or welfare needs of district inhabitants.

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

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

Sec. 1070.115. PROVISION OF SERVICES OUTSIDE DISTRICT. The

board may provide health care services outside the district for

the care and treatment of the sick or injured persons of any

jurisdiction.

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

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

Sec. 1070.116. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a

patient 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 provided to the patient by the district and that

payment is not available from any other source, 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1070.117. 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 performing only

governmental functions are entitled.

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

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

SUBCHAPTER D. CHANGE IN BOUNDARIES

Sec. 1070.151. TERRITORY THAT MAY BE ANNEXED. (a) The

district may annex territory that is not located in:

(1) Hansford 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1070.152. 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 if

the territory is annexed.

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

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

Sec. 1070.153. ELECTION ORDER. (a) If, on receipt of a

petition, 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 annexation of the territory described in 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1070.154. BALLOT. The ballot for the election shall be

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

establishment of the Hansford County Hospital District with

extended boundaries and establishment of a hospital district tax

at a rate not to exceed 50 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1070.155. 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1070.156. 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 of each county in which

the district is located following the annexation election.

months of an election previously held under this subchapter.

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

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

Sec. 1070.157. 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 2007, 80th Leg., R.S., Ch.

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

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 1070.201. 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1070.202. 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.

present and 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

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. 1070.203. 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. 1070.204. RESTRICTION ON EXPENDITURES. Money may be spent

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

budget.

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

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

Sec. 1070.205. 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. 1070.206. 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 office.

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

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

Sec. 1070.207. 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1070.208. 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1070.209. 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 1070.210(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 bank and shall

remain on deposit.

power of the board to:

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

(2) purchase certificates of deposit; or

(3) make other investments authorized by Chapter 2256,

Government Code.

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

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

Sec. 1070.210. SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Sections 1070.062, 1070.063,

1070.064, 1070.108(c), and 1070.211 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

money 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. 1070.211. AUTHORITY TO BORROW MONEY; SECURITY. (a) The

district may borrow money for district operating expenses in an

amount not to exceed the amount of tax or other revenue the

district expects to receive during the fiscal year in which the

money is borrowed.

(b) To repay the debt, the board may pledge all or part of the

tax or other revenue received during the fiscal year in which the

board borrows money under this section.

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

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

SUBCHAPTER F. BONDS

Sec. 1070.251. OBLIGATIONS AND CREDIT AGREEMENTS. The district

may issue, sell, and deliver obligations and execute

corresponding credit agreements in the manner provided by

Chapters 1201 and 1371, Government Code.

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

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

Sec. 1070.252. 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 and

ancillary health care purposes.

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

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

Sec. 1070.253. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the

time general obligation bonds are issued under Section 1070.252,

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. 1070.254. 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1070.255. REVENUE BONDS. (a) The board may issue revenue

bonds to:

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

buildings or improvements for hospital or ancillary health care

purposes; or

(2) acquire sites to be used for hospital or ancillary health

care 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 or ancillary health care facilities.

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. 1070.256. REFUNDING BONDS. (a) The board may 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1070.257. 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. 1070.258. 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1070.259. 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 G. TAXES

Sec. 1070.301. 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 2007, 80th Leg., R.S., Ch.

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

Sec. 1070.302. TAX RATE. (a) The board may impose the tax at a

rate not to exceed 50 cents on each $100 valuation of taxable

property in the district unless the maximum tax rate is increased

as provided by Section 1070.303.

(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. 1070.303. ELECTION TO INCREASE MAXIMUM TAX RATE. (a) The

board may order an election to increase the district's maximum

tax rate to a rate not to exceed 75 cents on each $100 valuation

of taxable property in the district.

(b) The maximum tax rate may not be increased unless the

increase is approved by a majority of the district voters voting

in an election held for that purpose.

notice must be given in the manner provided for a bond election

under Subchapter F.

(d) The election order must specify:

(1) the ballot proposition;

(2) the proposed maximum tax rate;

(3) the time of the election;

(4) the location of the polling places; and

(5) the presiding judge for each polling place.

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

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

Sec. 1070.304. TAX ASSESSOR-COLLECTOR. The board may provide

for the appointment of a tax assessor-collector for the district

or may contract for the assessment and collection of taxes as

provided by the Tax Code.

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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