Law:Title 3. Health. Subtitle A. Hospital Districts from Chapter 1081. Nocona Hospital District (Texas)

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Subtitle A. Hospital Districts

Contents

Chapter 1081. Nocona Hospital District

Subchapter A. General Provisions

Section 1081.001.  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 Nocona Hospital District.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.002.  Authority For Operation.

The Nocona 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.



Section 1081.003.  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.



Section 1081.004.  District Territory.

The boundaries of the district are coextensive with the boundaries of the Nocona and Prairie Valley Independent School Districts of Montague County, Texas, as those boundaries existed on January 1, 1971.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.005.  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.



Section 1081.006.  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.



Section 1081.007.  Restriction On State Financial Assistance.

The legislature may not make a direct appropriation for 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

Section 1081.051.  Board Election; Term.

(a) The board consists of seven directors elected from the district at large.

(b)  Unless four-year terms are established under Section 285.081, Health and Safety Code:

(1)  directors serve staggered two-year terms;

(2)  an election shall be held annually on the May uniform election date under Section 41.001, Election Code; and

(3)  the terms of four directors expire in odd-numbered years and the terms of three directors expire in even-numbered years.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.052.  Qualifications For Office.

(a) A person may not be elected or appointed as a director unless the person is:

(1)  a resident of the district; and

(2)  a qualified voter.

(b)  A person is not eligible to serve as a director if the person is:

(1)  the district chief executive officer;

(2)  a district employee; or

(3)  a medical staff member of the hospital.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.053.  Board Vacancy.

If a vacancy occurs in the office of director, the remaining directors 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.



Section 1081.054.  Officers.

(a) The board shall elect:

(1)  a president and 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.

(c)  The board shall fill a vacancy in a board office for the unexpired term.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.055.  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.



Section 1081.056.  Quorum.

Any five directors constitute a quorum.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.057.  Voting Requirement.

A concurrence of five 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.



Section 1081.058.  Chief Executive Officer; Assistant To Chief Executive Officer.

(a) The board shall appoint a qualified person as the chief executive officer of the district.

(b)  The board may appoint an assistant to the chief executive officer.

(c)  The chief executive officer and any assistant to the chief executive officer serve at the will of the board and are entitled to the compensation determined by the board.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.059.  General Duties Of Chief Executive Officer.

Subject to the limitations prescribed by the board, the chief executive officer 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.



Section 1081.060.  Appointment Of Staff And Employees.

(a) The board may appoint to the staff any doctors 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.

(c)  The board may delegate to the chief executive officer the authority to hire district employees, including technicians and nurses.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Subchapter C. Powers And Duties

Section 1081.101.  District Responsibility.

The district has full responsibility for operating all hospital facilities for providing 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.



Section 1081.102.  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 for the district's inhabitants.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.103.  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.



Section 1081.104.  Hospital 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)  residential care of the sick and injured;

(2)  outpatient clinics;

(3)  dispensaries;

(4)  nursing home facilities;

(5)  necessary nurses;

(6)  training centers;

(7)  blood banks;

(8)  community mental health centers;

(9)  research centers or laboratories; and

(10)  any other facility the board considers necessary for hospital care.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.105.  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.



Section 1081.106.  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.



Section 1081.107.  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.

(c)  The district may acquire equipment for use in the district's hospital system and mortgage or pledge the property as security for the payment of the purchase 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 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.



Section 1081.108.  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 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, 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 petition for review.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.109.  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.



Section 1081.110.  Construction Contracts.

A construction contract that requires the expenditure of more than the amount provided by Section 271.024, Local Government Code, may be entered into only after competitive bidding as provided by Subchapter B, Chapter 271, Local Government Code.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.111.  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.



Section 1081.112.  Contracts With Governmental Entities For Hospitalization.

(a) The board may contract with a county or municipality located outside the district's  boundaries for the hospitalization 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 hospital treatment of a sick or injured person.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.113.  Contracts With Governmental Entities For Investigatory And Other Services.

The board may contract with a political subdivision or governmental agency for the district to provide investigatory or other services for the hospitalization needs of district inhabitants.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.114.  Care And Treatment For Indigent.

The district shall provide health care and treatment to indigent persons in accordance with policies and procedures adopted by the board.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.115.  Authority To Sue And Be Sued.

The district, through the board, may sue and be sued.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Subchapter D. General Financial Provisions

Section 1081.151.  Budget.

(a) The chief executive officer 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; and

(7)  the estimated tax rate required.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.152.  Notice; Hearing; Adoption Of Budget.

(a) The board shall hold a public hearing on the proposed annual budget.

(b)  The board shall publish notice of the hearing in accordance with Chapter 551, Government Code.

(c)  Any district resident is entitled to be present and be heard at the hearing.

(d)  At the conclusion of the hearing, the board shall adopt a budget by acting on the budget proposed by the chief executive officer.  The board may make any changes in the proposed budget that the board judges to be in the interest of the taxpayers and that the law warrants.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.153.  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.



Section 1081.154.  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.



Section 1081.155.  Fiscal Year.

(a) The district operates according to a fiscal year established by the board.

(b)  The fiscal year may not be changed:

(1)  if revenue bonds of the district are outstanding; or

(2)  more than once in a 24-month period.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.156.  Audit.

The board shall have an audit made of the district's financial condition.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.157.  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.



Section 1081.158.  Financial Report.

As soon as practicable after the close of each fiscal year, the chief executive officer 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.



Section 1081.159.  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 1081.160(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.

(c)  This chapter, including Subsection (b), does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.160.  Spending And Investment Restrictions.

(a) Except as otherwise provided by Section 1081.107(c) and Subchapter E, 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 year.

(b)  The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Subchapter E. Bonds

Section 1081.201.  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 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.202.  Tax To Pay General Obligation Bonds.

(a) At the time general obligation bonds are issued by the district under Section 1081.201, 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 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.



Section 1081.203.  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 order and publication of notice for the bond election must be provided in accordance with Chapter 1251, Government Code.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.204.  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.

(c)  The bonds may be additionally secured by a mortgage or deed 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.



Section 1081.205.  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.



Section 1081.206.  Execution Of Bonds.

(a) The board president shall execute the district's 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.



Section 1081.207.  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 bonds.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Subchapter F. Taxes

Section 1081.251.  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 pay:

(1)  indebtedness issued or assumed by the district; and

(2)  the maintenance and operating expenses of the district.

(c)  The board may not impose the tax to pay the principal of or interest on revenue bonds issued under Section 1081.204.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.252.  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)  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.



Section 1081.253.  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 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Subchapter G. Dissolution

Section 1081.301.  Dissolution; Election.

(a) The district may be dissolved only on approval of a majority of the registered district voters voting in an election held for that purpose.

(b)  The board may order an election on the question of dissolving the district and disposing of the district's assets and obligations.

(c)  The board shall order an election if the board receives a petition requesting an election that is signed by at least 15 percent of the registered voters in the district.

(d)  The election shall be held not later than the 60th day after the date the election is ordered.

(e)  The order calling the election must state:

(1)  the nature of the election, including the proposition to appear on the ballot;

(2)  the date of the election;

(3)  the hours during which the polls will be open; and

(4)  the location of the polling places.

(f)  Section 41.001(a), Election Code, does not apply to an election ordered under this section.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.302.  Notice Of Election.

(a) The board shall give notice of an election under this subchapter by publishing once a week for two consecutive weeks a substantial copy of the election order in a newspaper with general circulation in the district.

(b)  The first publication of notice must appear not later than the 35th day before the date set for the election.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.303.  Ballot.

The ballot for an election under this subchapter must be printed to permit voting for or against the proposition:  "The dissolution of the Nocona Hospital District."

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.304.  Election Results.

(a) If a majority of the votes in an election under this subchapter favor dissolution, the board shall find that the district is dissolved.

(b)  If a majority of the votes in the election do not favor dissolution, the board shall continue to administer the district and another election on the question of dissolution may not be held before the first anniversary of the date of the most recent election to dissolve the district.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.305.  Transfer Or Administration Of Assets.

(a) If a majority of the votes in the election held under this subchapter favor dissolution, the board shall:

(1)  transfer the land, buildings, improvements, equipment, and other assets that belong to the district to Montague County or another governmental entity in Montague County; or

(2)  administer the property, assets, and debts until all money has been disposed of and all district debts have been paid or settled.

(b)  If the district makes the transfer under Subsection (a)(1), the county or entity assumes all debts and obligations of the district at the time of the transfer, and the district is dissolved.

(c)  If Subsection (a)(1) does not apply and the board administers the property, assets, and debts of the district under Subsection (a)(2), the district is dissolved when all the money has been disposed of and all district debts have been paid or settled.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.306.  Imposition Of Tax And Return Of Surplus.

(a) After the board finds that the district is dissolved, the board shall:

(1)  determine any debt owed by the district; and

(2)  impose on the property included on the district's tax roll a tax that is in proportion of any debt to the property value.

(b)  On the payment of all outstanding debts and obligations of the district, the board shall order the secretary to return to each district taxpayer the taxpayer's pro rata share of all unused tax money.

(c)  A taxpayer may request that the taxpayer's share of surplus tax money be credited to the taxpayer's county taxes.  If a taxpayer requests the credit, the board shall direct the secretary to transmit the money to the county tax assessor-collector.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.



Section 1081.307.  Report; Dissolution Order.

(a) After the district has paid all district debts and has disposed of all district money and other assets as prescribed by this subchapter, the board shall file a written report with the Commissioners Court of Montague County summarizing the board's actions in dissolving the district.

(b)  Not later than the 10th day after the date the Commissioners Court of Montague County receives the report and determines that the requirements of this subchapter have been fulfilled, the commissioners court shall enter an order dissolving the district and releasing the board from any further duty or obligation.

Added by Acts 2009, 81st Leg., R.S., Ch. 1139, Sec. 1.01, eff. April 1, 2011.


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