CHAPTER 1077. GAINESVILLE HOSPITAL DISTRICT

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SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 3. HEALTH

SUBTITLE A. HOSPITAL DISTRICTS

CHAPTER 1077. GAINESVILLE HOSPITAL DISTRICT

Text of effective on April 01, 2011

SUBCHAPTER A. GENERAL PROVISIONS

Text of section effective on April 01, 2011

Sec. 1077.001. 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 Gainesville 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. 1077.002. AUTHORITY FOR OPERATION. The Gainesville

Hospital District operates in accordance with Section 9, Article

IX, Texas 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. 1077.003. POLITICAL SUBDIVISION. The district is a

political subdivision 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. 1077.004. DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Cooke County,

Texas, except that the district does not include territory

located in the Muenster Hospital District on the date the

election to approve the creation of the Gainesville Hospital

District was called.

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. 1077.005. PUBLIC PURPOSE; TAX EXEMPTION. All property

owned by the district:

(1) shall be held for public purposes; and

(2) is exempt from taxation of every character by this state or

a political subdivision 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. 1077.006. 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. 1077.007. 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. 1077.051. BOARD ELECTION; TERM. (a) The district is

governed by a board of nine directors.

(b) Directors serve staggered three-year terms.

May of each year to elect the appropriate number of directors.

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. 1077.052. NOTICE OF ELECTION. Notice of an election of

directors shall be published in a newspaper of general

circulation in the area of the district in accordance with

Section 4.003, Election 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. 1077.053. QUALIFICATIONS FOR OFFICE. To be qualified to

hold office as a director, a person must be:

(1) a resident of the district; and

(2) a registered voter.

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. 1077.054. MEETING ATTENDANCE REQUIREMENT. (a) A director

who fails to attend at least four regular meetings in any

12-month period is considered to have resigned the director's

position, effective immediately on the date of the fourth

absence. Further action is not required by the director or the

board to effectuate a vacancy under this subsection.

(b) A vacancy created by a resignation under this section shall

be filled as provided by Section 1077.055.

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. 1077.055. 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 2009, 81st Leg., R.S., Ch.

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

Text of section effective on April 01, 2011

Sec. 1077.056. OFFICERS. 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.

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. 1077.057. COMPENSATION; EXPENSES. A director is not

entitled to compensation but is entitled to receive actual

expenses incurred in attending to district business on approval

of the expenses by the remainder of 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. 1077.058. 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.

(e) The board may pay for the bond with district 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. 1077.059. 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 2009, 81st Leg., R.S., Ch.

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

Text of section effective on April 01, 2011

Sec. 1077.060. APPOINTMENT AND DISMISSAL OF STAFF AND EMPLOYEES.

(a) The board may appoint to or dismiss from the medical staff

the physicians, dentists, and podiatrists the board determines

necessary for the efficient operation of the district.

(b) The district may employ technicians, nurses, fiscal agents,

accountants, architects, additional attorneys, and other

necessary employees.

authority to hire district 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. 1077.061. PERSONNEL CONTRACTS. (a) The board may contract

with a nonprofit corporation for the corporation to provide

administrative and other personnel for the operation of the

hospital facilities.

(b) The term of the contract may not exceed 25 years from the

date the contract is executed.

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. 1077.062. RETIREMENT BENEFITS. The board may enter into

any contract or agreement with this state or the federal

government that is required to establish or continue a retirement

program for the benefit of the district's employees.

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. 1077.101. DISTRICT RESPONSIBILITY. (a) The district has

full responsibility for operating all hospital facilities for

providing medical and hospital care of the indigent persons in

the district.

(b) The district shall provide medical and hospital care for the

district's needy 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. 1077.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND

DEBT. A political subdivision in the district, other than the

district, may not impose a tax or issue bonds or other

obligations for hospital purposes for medical treatment of

indigent persons in 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. 1077.103. 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. 1077.104. RULES. The board may adopt rules governing the

operation of the district and as required to administer 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. 1077.105. 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. 1077.106. DISTRICT PROPERTY, FACILITIES, EQUIPMENT, AND

SERVICES. (a) The board has exclusive authority to determine

the type, character, and use of facilities in the hospital

system.

(b) The district may:

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

and improvements; and

(2) equip buildings and 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. 1077.107. EMINENT DOMAIN. (a) The district may exercise

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

interest in any type of property located in district territory if

the interest is necessary or convenient for the district to

exercise a power, right, or privilege conferred by this chapter.

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

the manner provided by Chapter 21, Property Code.

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. 1077.108. 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. 1077.109. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND

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

municipality located outside the district 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 for whom this state

or the agency is responsible.

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. 1077.110. PAYMENT FOR TREATMENT; PROCEDURES. (a) When an

indigent patient who resides in the district is admitted to a

district facility or a person who does not reside in the district

is admitted as an emergency patient to a district facility, the

district administrator 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 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 as care for

indigents.

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 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 administrator may collect the amount from the

estate of the patient, or from any relative who is legally liable

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

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

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

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

hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue any appropriate orders.

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

court. The substantial evidence rule applies to the appeal.

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

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

Text of section effective on April 01, 2011

Sec. 1077.111. AUTHORITY TO SUE AND BE SUED. As a governmental

entity, the district, through the board, may sue and be sued in

its own name in any court of this state.

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

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

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Text of section effective on April 01, 2011

Sec. 1077.151. BUDGET. (a) The district administrator shall

prepare an annual budget for approval by the board.

(b) The budget must be for the next fiscal year and must

include:

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

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

Text of section effective on April 01, 2011

Sec. 1077.152. 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 Cooke 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 2009, 81st Leg., R.S., Ch.

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

Text of section effective on April 01, 2011

Sec. 1077.153. FISCAL YEAR. (a) The district operates

according to a fiscal year established by the board.

(b) The fiscal year may not be changed more than once in a

36-month period.

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. 1077.154. AUDIT. (a) The district shall have an audit

made of the district's financial condition.

(b) The audit shall be open to inspection at all times 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. 1077.155. FINANCIAL REPORT. As soon as practical 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. 1077.156. DEPOSITORY. (a) The board shall select one or

more banks in the district to serve as a depository for district

money.

(b) District money shall be immediately deposited on receipt

with a depository bank to pay the principal of and interest on

the district's outstanding bonds on or before the maturity date

of the principal and interest.

by the Federal Deposit Insurance Corporation, the money must be

secured in the manner provided by law for the security of county

funds.

(d) Membership on the district's board of an officer or director

of a bank does not disqualify the bank from being designated as a

depository bank.

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

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

SUBCHAPTER E. BONDS

Text of section effective on April 01, 2011

Sec. 1077.201. BONDS. The board may issue and sell bonds to:

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

and improvements; and

(2) equip buildings and 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. 1077.202. TAX TO PAY BONDS. (a) The board may issue bonds

under Section 1077.201 payable from ad valorem taxes. If the

bonds are payable from ad valorem taxes, the board shall impose

an ad valorem tax to create an interest and sinking fund

sufficient to pay the principal of and interest on the bonds as

the bonds mature.

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

valorem tax the district imposes may not in any year exceed 75

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

district.

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

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

Text of section effective on April 01, 2011

Sec. 1077.203. BOND ELECTION. (a) The district may issue bonds

under Section 1077.201 that are payable from taxes only if the

bonds are 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 of the bond issuance;

(5) the amount of the bonds to be authorized; and

(6) the maximum maturity of the bonds.

(d) Notice of a bond election shall be given by publishing a

substantial copy of the order calling the election in a newspaper

of general circulation in the district once each 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 2009, 81st Leg., R.S., Ch.

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

Text of section effective on April 01, 2011

Sec. 1077.204. REVENUE BONDS. (a) The board may issue bonds

under Section 1077.201 payable from the district's revenue. The

board may issue the revenue bonds without an election.

(b) The bonds must be payable from 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. 1077.205. MATURITY OF TAX BONDS. District bonds payable

from taxes 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. 1077.206. EXECUTION OF BONDS. (a) The board president

shall execute the district bonds in the district's name.

(b) The board secretary shall countersign the bonds.

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

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

SUBCHAPTER F. TAXES

Text of section effective on April 01, 2011

Sec. 1077.251. 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

issued or assumed by the district for hospital purposes; and

(2) care for indigents.

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. 1077.252. TAX RATE. (a) 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.

(b) Not more than 65 cents of the rate authorized by Subsection

(a) may be imposed in any year to pay the interest on and create

a sinking fund for bonds issued or assumed by the district 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. 1077.253. TAX ASSESSOR-COLLECTOR. (a) Except as provided

by Subsection (b), the tax assessor-collector of Cooke County

shall assess and collect taxes imposed by the district.

(b) The board may appoint a district tax assessor-collector

under Section 285.041, Health and Safety Code.

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

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

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