Law:Title 3. Health. Subtitle A. Hospital Districts from Chapter 1050. Knox County Hospital District (Texas)

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Subtitle A. Hospital Districts

Contents

Chapter 1050. Knox County Hospital District

Subchapter A. General Provisions

Section 1050.001.  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 Knox County Hospital District.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.002.  Authority For Operation.

The district operates in accordance with Section 9, Article IX, Texas Constitution.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.003.  Political Subdivision.

The district is a political subdivision of this state.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.004.  District Territory.

The boundaries of the district are coextensive with the boundaries of Knox County, Texas.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.005.  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.



Section 1050.006.  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.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Subchapter B. District Administration

Section 1050.051.  Board Election And Appointment; Term.

(a) The district is governed by a board of seven directors as follows:

(1)  four directors appointed by the Commissioners Court of Knox County to board positions 1 through 4, with one director appointed from each of the four county commissioner precincts as the precincts existed on May 22, 1967; and

(2)  three directors elected from the district at large to board positions 5 through 7.

(b)  Directors serve staggered two-year terms.

(c)  The Commissioners Court of Knox County shall appoint two successor directors on or before the first Saturday in April of each year.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.052.  Notice Of Election.

At least 10 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 Knox County.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.053.  Ballot Petition.

A person who wants to have the person's name printed on the ballot as a candidate for elected director must file with the board secretary a petition requesting that action.  The petition must:

(1)  be signed by at least 25 registered district voters; and

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

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.054.  Qualifications For Office.

(a) A person is not qualified for appointment or election as a director unless the person:

(1)  is a district resident;

(2)  owns land subject to taxation by the district; and

(3)  is at least 18 years of age at the time of the appointment or election.

(b)  A person may not be appointed as a director for a commissioners precinct unless at the time of appointment the person is a resident of that commissioners precinct.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.055.  Bond; Record Of Bond And Oath Or Affirmation Of Office.

(a) Each director shall execute a good and sufficient bond for $1,000 that is:

(1)  payable to the district; and

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

(b)  Each director's bond and constitutional oath or affirmation of office shall be deposited with the district's depository bank for safekeeping.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.056.  Board Vacancy.

(a) If a vacancy occurs in the office of an elected director, the remaining directors shall appoint a director for the unexpired term.

(b)  If a vacancy occurs in the office of an appointed director, the Commissioners Court of Knox County 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.



Section 1050.057.  Director Rights, Privileges, And Duties.

The directors have identical rights, privileges, and duties in all matters concerning the board's business.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.058.  Officers.

The board shall elect from among its members a president and a secretary.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.059.  Compensation; Expenses.

A director serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties on approval of the expenses by the board.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.060.  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.



Section 1050.061.  Employees.

The board may employ a general manager, attorneys, bookkeepers, architects, or any other employees considered necessary for the efficient operation of the district.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.062.  Maintenance Of Records; Public Inspection.

Except as provided by Section 1050.055, all district records, including books, accounts, notices, minutes, and all other matters of the district and the operation of its facilities, shall be:

(1)  maintained at the district office; and

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

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.063.  Seal.

The board may adopt a seal for the district.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Subchapter C. Powers And Duties

Section 1050.101.  District Responsibility.

The district has full responsibility for providing medical and hospital care for the district's needy and indigent residents.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.102.  Restriction On County Or Municipality Taxation And Debt.

Knox County or a municipality in Knox County may not impose a tax on property in the district for hospital purposes.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.103.  Rules.

(a) The board may adopt rules governing the operation of the district, including district facilities.

(b)  On approval of the board, the rules may be published in booklet form at district expense and made available to any taxpayer on request.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.104.  Purchasing And Accounting Procedures.

(a) The board may prescribe the method and manner of making purchases and expenditures by and for the district.

(b)  The board shall prescribe:

(1)  all accounting and control procedures; and

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

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.105.  Eminent Domain.

(a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property, real, personal, or mixed, located in district territory, if the interest is necessary or convenient for the district to exercise a right, power, privilege, or function conferred on the district by this chapter.

(b)  The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, except the district is not required to deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code.

(c)  In a condemnation proceeding brought by the district, the 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.



Section 1050.106.  Gifts And Endowments.

The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or 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.



Section 1050.107.  Payment For Treatment; Procedures.

(a) When a patient who resides in the district is admitted to a district facility, the board shall have an inquiry made into the circumstances of:

(1)  the patient; and

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

(b)  If an agent designated by the district to handle the inquiry determines that the patient or those relatives cannot pay all or part of the costs of the care and treatment in the hospital, the amount of the costs that cannot be paid becomes a charge against the district.

(c)  If the board determines that the patient or those relatives are liable to pay all or part of the costs of the patient's care and treatment, the patient or those relatives shall be ordered to pay to the district's treasurer a specified amount each week for the patient's support.  The amount ordered must be proportionate to the person's financial ability and may not exceed the actual per capita cost of maintenance.

(d)  The district may collect the amount from the patient's estate, or from any relative who is legally liable for the patient's support, in the manner provided by law for the collection of expenses of the last illness of a deceased person.

(e)  If there is a dispute as to the ability to pay, or doubt in the mind of the district's designated agent, the board shall hold a hearing and, after calling witnesses, shall:

(1)  resolve the dispute or doubt; and

(2)  issue an appropriate order.

(f)  Either party to the dispute may appeal the order to the district court.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.108.  Authority To Sue And Be Sued.

As a governmental agency, the district may sue and be sued in its own name in any court in this state.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Subchapter D. General Financial Provisions

Section 1050.151.  Budget.

The board annually shall require a budget to be prepared for the next fiscal year that includes:

(1)  proposed expenditures and disbursements;

(2)  estimated receipts and collections; and

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

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.152.  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 Knox County not later than the 10th day before the date of the hearing.

(c)  Any district taxpayer is entitled to:

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

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

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.153.  Fiscal Year.

The district operates on a fiscal year that begins on October 1 and ends on September 30.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.154.  Annual Audit.

(a) The board annually shall have an independent audit made of the district's books and records for the fiscal year.

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

(1)  with the comptroller; and

(2)  at the district office.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.155.  Depository Or Treasurer.

(a) The board by resolution shall designate a bank in Knox County as the district's depository or treasurer.  A designated bank serves for two years until a successor is designated.

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

(c)  All district money shall be secured in the manner provided for securing county funds.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.156.  Authority To Borrow Money; Security.

(a) The board may borrow money at a rate of interest the board determines is appropriate.

(b)  To secure a loan, the board may pledge:

(1)  district revenue that is not pledged to pay the district's bonded indebtedness; or

(2)  property acquired with the loan proceeds that is not pledged to pay the district's bonded indebtedness.

(c)  A loan authorized by this section must mature not later than the fifth anniversary of the date the loan is made.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Subchapter E. Bonds

Section 1050.201.  General Obligation Bonds.

The board may issue and sell general obligation bonds in the name and on the faith and credit of the district for any purpose relating to:

(1)  the purchase, construction, acquisition, repair, or renovation of buildings or improvements; and

(2)  equipping buildings or improvements for hospital purposes.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.202.  Tax To Pay General Obligation Bonds.

(a) The board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on general obligation bonds issued by the district under Section 1050.201 as the bonds mature.

(b)  Except as provided by Section 1050.253, the tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed 35 cents on each $100 valuation of all taxable property in the district.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.203.  General Obligation Bond Election.

(a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

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

(c)  The order calling the election must specify:

(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;

(6)  the maximum interest rate of the bonds; and

(7)  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 Knox County 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 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.204.  Maturity Of General Obligation Bonds.d

istrict general obligation 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.



Section 1050.205.  Execution Of General Obligation Bonds.

(a) The board president shall execute the general obligation bonds in the district's name.

(b)  The board secretary shall countersign the bonds.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Subchapter F. Taxes

Section 1050.251.  Imposition Of Ad Valorem Tax.

(a) On final approval of the annual budget, the board shall impose a tax on all property in the district subject to district taxation.

(b)  The board shall impose the tax to:

(1)  pay the interest on and create a sinking fund for bonds or other obligations issued or assumed by the district for hospital purposes;

(2)  provide for the operation and maintenance of the district and hospital system;

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

(4)  acquire necessary sites for the hospital system by purchase, lease, or condemnation.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.252.  Tax Rate. The

board may impose the tax at a rate not to exceed 35 cents on each $100 valuation of taxable property in the district, unless the tax rate is increased as provided by Section 1050.253.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.253.  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.

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

(d)  The election order must specify:

(1)  the date of the election;

(2)  the location of the polling places;

(3)  the presiding election officers; and

(4)  the purpose of the election.

(e)  Notice of the election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in Knox County once a week for two consecutive weeks before the date of the election.  The first publication must occur at least 14 days before the date of the election.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.



Section 1050.254.  Tax Assessor-collector.

The tax assessor-collector of Knox County shall assess and collect taxes imposed by the district.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.02, eff. April 1, 2009.


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