MCCULLOCH COUNTY HOSPITAL DISTRICT

Tex. SPEC. DIST. LOCAL LAWS Code ch. 1059
in effect

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.001. 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 McCulloch County Hospital District. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.002. AUTHORITY FOR OPERATION.

The district operates and is financed as provided by Section 9, Article IX, Texas Constitution, and by this chapter. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.003. ESSENTIAL PUBLIC FUNCTION.

The district is a public entity performing an essential public function. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.004. DISTRICT TERRITORY.

The boundaries of the district are coextensive with the boundaries of McCulloch County, Texas. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION.

The state may not become obligated for the support or maintenance of the district. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.006. 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 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009. SUBCHAPTER B. DISTRICT ADMINISTRATION

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.051. BOARD ELECTION; TERMS.

(a) The district is governed by a board of seven directors. (b) One director is elected from each commissioners precinct and three directors are elected from the district at large. (c) Directors serve staggered three-year terms. (d) An election shall be held on the uniform election date in May of each year to elect the appropriate number of directors. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.052. NOTICE OF ELECTION.

Notice of an election of directors shall be published in accordance with Section 4.003 , Election Code, in a newspaper with general circulation in the district. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009. Acts 2013, 83rd Leg., R.S., Ch. 328 (H.B. 1920 ), Sec. 1, eff. June 14, 2013.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.053. QUALIFICATIONS FOR OFFICE.

(a) To be eligible to be a candidate for or to serve as a director, a person must be: (1) a district resident; (2) a qualified voter; and (3) able to obtain a bond as prescribed by Section 1059.054 . (b) In addition to Subsection (a), a person who is elected from a commissioners precinct or who is appointed to fill a vacancy for a commissioners precinct must be a resident of that commissioners precinct. (c) A district employee or member of the district's medical staff may not serve as a director. (d) A person formerly employed by the district may not serve as a director before the second anniversary of the date of the termination of that person's employment by the district. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.054. BOND; RECORD OF BOND.

(a) Before assuming the duties of office, each director must execute a bond for $5,000 that is: (1) payable to the district; and (2) conditioned on the faithful performance of the director's duties. (b) Each director's bond shall be kept in the district's permanent records. (c) The director shall obtain the bond from an insurer authorized to engage in business in this state. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.055. 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 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.056. OFFICERS.

(a) The board shall elect a president and a vice president from among its members. (b) The board shall appoint a secretary, who need not be a director. (c) Each officer of the board serves for a term of one year. (d) The board shall fill a vacancy in a board office for the unexpired term. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.057. 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 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.058. VOTING REQUIREMENT.

A concurrence of a majority of the directors voting is necessary in any matter relating to district business. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.059. DISTRICT ADMINISTRATOR.

(a) The board may appoint a qualified person as district administrator. (b) The district administrator serves at the will of the board and is entitled to the compensation determined by the board. (c) Before assuming the duties of district administrator, the administrator shall execute a bond in the amount determined by the board of not less than $5,000 that is: (1) payable to the district; and (2) conditioned on the faithful performance of the administrator's duties under this chapter. (d) The bond shall be kept in the district's permanent records. (e) The district administrator shall obtain the bond from an insurer authorized to engage in business in this state. (f) The board may pay for the bond with district money. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.060. 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; and (2) direct the general affairs of the district. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.061. EMPLOYEES; APPOINTMENT AND REMOVAL OF STAFF.

(a) The board may: (1) appoint to or remove from the staff any doctors the board considers necessary for the efficient operation of the district and may make temporary appointments as necessary; and (2) adopt policies relating to the method of appointing and removing staff members. (b) The district may employ technicians, nurses, fiscal agents, accountants, architects, attorneys, and other necessary employees. (c) The board may delegate to the district administrator the authority to employ persons for the district. (d) The district may not employ a person who is related to a director within the second degree by consanguinity or affinity, as determined under Subchapter B , Chapter 573 , Government Code, during that director's term of office. A district employee who is related to a person elected as a director within the second degree by consanguinity or affinity shall resign from employment when that director takes office. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.062. RECRUITMENT OF MEDICAL STAFF AND PROFESSIONAL PERSONNEL.

The board may use innovative methods to recruit physicians, nurses, technicians, and other professional personnel, including: (1) scholarship programs; (2) agreements for future services; (3) shared personnel; (4) bonuses; and (5) any other method the district considers necessary. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.063. RETIREMENT BENEFITS.

The board may provide retirement benefits for district employees by: (1) establishing or administering a retirement program; or (2) participating in: (A) the Texas County and District Retirement System; or (B) another statewide retirement system in which the district is eligible to participate. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009. SUBCHAPTER C. POWERS AND DUTIES

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.101. DISTRICT RESPONSIBILITY.

The district has full responsibility for: (1) operating hospital facilities; and (2) providing medical and hospital care for the district's needy inhabitants. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT.

McCulloch County, the City of Brady, and the McCulloch County Hospital Authority may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care for district residents. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.103. 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 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.104. RULES.

The board may adopt rules governing: (1) the operation of the hospital and hospital system; and (2) the duties, functions, and responsibilities of district staff and employees. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.105. PURCHASING AND ACCOUNTING PROCEDURES.

The board may prescribe: (1) the method of making purchases and expenditures by and for the district; and (2) accounting and control procedures for the district. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.106. MOBILE EMERGENCY MEDICAL OR AIR AMBULANCE SERVICE.

The district may operate or provide for the operation of a mobile emergency medical or air ambulance service. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.107. DISTRICT PROPERTY, FACILITIES, EQUIPMENT, AND SERVICES.

(a) The board shall determine: (1) the type, number, and location of buildings required to maintain an adequate hospital system; and (2) the type of equipment necessary for hospital care. (b) The district has complete discretion as to the type and extent of services the district will offer. The district may provide any services or facilities the board finds necessary for hospital or medical care, including: (1) facilities for domiciliary care, including geriatric domiciliary care; (2) outpatient clinics; (3) dispensaries; (4) convalescent home facilities; (5) necessary nurses; (6) domiciliaries and training centers; (7) blood banks; (8) community mental health centers; (9) alcohol or chemical dependency centers; (10) minor emergency centers; (11) research centers; or (12) laboratories. (c) The board may: (1) acquire property, including facilities and equipment, for the district for use in the hospital system; and (2) mortgage or pledge the property as security for the payment of the purchase price. (d) The board may lease hospital facilities for the district. (e) The board may sell or otherwise dispose of property, including facilities or equipment, for the district at public or private sale at the price and terms the board considers most advantageous. (f) The board by resolution may order the lease of a hospital or other facility owned by the district to any person. The resolution must include a finding by the board that the lease of the hospital or facility is in the best interest of the residents of the district. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009. Acts 2013, 83rd Leg., R.S., Ch. 328 (H.B. 1920 ), Sec. 2, eff. June 14, 2013.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.108. EMINENT DOMAIN.

(a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in property located in district territory if the property interest is necessary to exercise a right or authority 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 writ of error. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.109. COST OF RELOCATING OR ALTERING PROPERTY.

In exercising the power of eminent domain, if the board requires relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of any railroad, highway, pipeline, or electric transmission and electric distribution, telegraph, or telephone line, conduit, pole, or facility, the district must bear the actual cost of relocating, raising, lowering, rerouting, changing the grade, or altering the construction to provide comparable replacement without enhancement of facilities, after deducting the net salvage value derived from the old facility. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.110. GIFTS AND ENDOWMENTS.

The board may accept for the district a gift or endowment to be held in trust for any purpose and under any direction, limitation, or other provision prescribed in writing by the donor that is consistent with the proper management of the district. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.111. CONSTRUCTION CONTRACTS.

(a) The board may enter into construction contracts for the district. (b) The board may enter into a construction contract that involves the expenditure of more than the amount provided by Section 271.024 , Local Government Code, only after competitive bidding as provided by Subchapter B , Chapter 271 , Local Government Code. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.112. OPERATING AND MANAGEMENT CONTRACTS.

The board may enter into an operating or management contract relating to a hospital facility for the district. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR SERVICES.

The board may contract with a political subdivision of this state or with a state or federal agency for the district to: (1) furnish a mobile emergency medical or air ambulance service; or (2) provide for the investigatory or welfare needs of district inhabitants. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.114. PAYMENT FOR TREATMENT; PROCEDURES.

(a) When a patient who resides in the district is admitted to a district facility, the district administrator may have an inquiry made into the financial circumstances of: (1) the patient; or (2) a relative of the patient who is legally responsible for the patient's support. (b) As required by Section 9, Article IX, Texas Constitution, the district without charge shall provide to a patient who resides in the district the care and treatment that the patient or a relative of the patient who is legally responsible for the patient's support cannot pay. (c) On determining that the patient or a relative legally responsible for the patient's support can pay for all or part of the care and treatment provided by the district, the district administrator shall report that determination to the board, and the board shall issue an order directing the patient or the relative to pay the district a specified amount each week. The amount must be based on the individual's ability to pay. (d) The district administrator may collect money owed to the district from the patient's estate or from that of a relative who was legally responsible for the patient's support in the manner provided by law for collection of expenses of the last illness of a deceased person. (e) If there is a dispute relating to an individual's ability to pay or if the district administrator has any doubt concerning an individual's ability to pay, the board shall: (1) call witnesses; (2) issue subpoenas and subpoenas duces tecum; (3) administer oaths; (4) hear and resolve the question; and (5) issue a final order. (f) A final order of the board may be appealed to a district court in McCulloch County. The substantial evidence rule applies to the appeal. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.115. POLICIES OR RULES ON INDIGENT HEALTH CARE.

(a) The district may adopt, amend, or repeal policies or rules relating to indigent health care that include: (1) eligibility of patients for indigent health care; (2) application forms for patients or relatives of patients requesting indigent health care that may require personal and financial information to be furnished; (3) procedures for obtaining and completing applications for indigent health care and for filing the completed applications with the district; (4) procedures for reviewing applications to determine eligibility for indigent health care; and (5) other procedures provided by this section and Section 1059.116 . (b) The application procedure to determine eligibility for indigent health care must be adopted not later than the beginning of each operating year and must comply with Chapter 61 , Health and Safety Code. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.116. REIMBURSEMENT FOR SERVICES.

(a) The board shall require a county, municipality, or public hospital located outside the district to reimburse the district for the district's care and treatment of a sick or injured person of that county, municipality, or public hospital as provided by Chapter 61 , Health and Safety Code. (b) The board shall require the sheriff of McCulloch County to reimburse the district for the district's care and treatment of a person who is confined in a jail facility of McCulloch County and is not a district resident. (c) The board may contract with the state or federal government for that government to reimburse the district for treatment of a sick or injured person. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.117. AUTHORITY TO SUE AND BE SUED.

(a) The board may sue and be sued on behalf of the district. (b) The district may assert any defense or counterclaim the McCulloch County Hospital Authority could have asserted related to any debt that was: (1) incurred by the authority for hospital purposes; and (2) assumed by the district on the district's creation. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009. SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.151. BUDGET.

(a) The district administrator shall prepare a proposed annual budget for the district. (b) The proposed budget must contain a complete financial statement, including a statement of: (1) the outstanding obligations of the district; (2) the amount of cash on hand in each district fund; (3) the amount of money received by the district from all sources during the previous year; (4) the amount of money available to the district from all sources during the ensuing year; (5) the amount of the balances expected at the end of the year in which the budget is being prepared; (6) the estimated amount of revenue and balances available to cover the proposed budget; and (7) the estimated tax rate required. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.152. 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 a newspaper of general circulation in the district not later than the 10th day before the date of the hearing. (c) Any district resident is entitled to be present and participate at the hearing. (d) At the conclusion of the hearing, the board shall adopt a budget by acting on the budget proposed by the district administrator. The board may make any changes in the proposed budget that the board judges to be in the interests of the taxpayers. (e) The budget is effective only after adoption by the board. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.153. AMENDMENTS TO BUDGET.

After adoption, the annual budget may be amended on the board's approval. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.154. RESTRICTION ON EXPENDITURES.

Money may be spent only for an expense included in the budget or an amendment to the budget. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.155. FISCAL YEAR.

(a) The district operates on a fiscal year established by the board. (b) The fiscal year may not be changed: (1) when revenue bonds of the district are outstanding; or (2) more than once in a 24-month period. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.156. ANNUAL AUDIT.

The board annually shall have an audit made of the district's financial condition. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT RECORDS.

The annual audit and other district records are open to inspection during regular business hours at the district's principal office. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.158. FINANCIAL REPORT.

As soon as practicable after the close of the fiscal year, the district administrator shall prepare for the board: (1) a sworn statement of the amount of district money; and (2) an account of the disbursements of that money. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.159. DEPOSITORY.

(a) The board shall select at least one bank to serve as a depository for district money. (b) District money, other than money invested as provided by Section 1059.160 (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 must remain on deposit. This subsection does not limit the power of the board to place a portion of district money on time deposit or to purchase certificates of deposit. (c) The district may not deposit money with a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation unless the bank first executes a bond or other security in an amount sufficient to secure from loss the district money that exceeds the amount secured by the Federal Deposit Insurance Corporation. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.160. SPENDING AND INVESTMENT RESTRICTIONS.

(a) Except as provided by Sections 1059.111 , 1059.201 , 1059.204 , and 1059.205 , the district may not incur a debt payable from district revenue other than the revenue on hand or to be on hand in the current and immediately following district fiscal years. (b) The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256 , Government Code. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.161. AUTHORITY TO BORROW MONEY.

(a) The district may borrow money for district operating expenses in an amount not to exceed the amount of tax revenue the district expects to receive during the 12-month period following the date the money is borrowed. (b) The district may pledge all or any part of that tax revenue to repay the amount borrowed. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009. SUBCHAPTER E. BONDS

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.201. GENERAL OBLIGATION BONDS.

The board may issue and sell general obligation bonds authorized by an election in the name and on the faith and credit of the district to: (1) purchase, construct, acquire, repair, or renovate buildings or improvements; (2) equip buildings or improvements for hospital purposes; or (3) acquire and operate a mobile emergency medical or air ambulance service. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.202. TAX TO PAY GENERAL OBLIGATION BONDS.

(a) At the time general obligation bonds are issued by the district under Section 1059.201 , 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 the limit approved by the voters at the election authorizing the imposition of the tax. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.203. 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 a bond election. (c) The order calling the election must specify: (1) the nature and date of the election; (2) the hours during which the polls will be open; (3) the location of polling places; (4) the amount of the bonds to be authorized; and (5) the maximum maturity of the bonds. (d) Notice of a bond election shall be given as provided by Section 1251.003 , Government Code. (e) The board shall declare the results of the bond election. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.204. REVENUE BONDS.

(a) The board may issue revenue bonds to: (1) purchase, construct, acquire, repair, equip, or renovate buildings or improvements for hospital purposes, including the purposes described by Section 1059.107 ; (2) acquire sites to be used for hospital purposes; or (3) acquire and operate a mobile emergency medical or air ambulance service to assist the district in carrying out its 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 hospital system. (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 provided 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 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.205. 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 the 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 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.206. MATURITY OF BONDS.

District bonds must mature not later than 50 years after the date of issuance. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.207. 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 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.208. 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) any transaction relating to the bonds; and (3) profits made in the sale of the bonds. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009. SUBCHAPTER F. AD VALOREM TAX

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.251. IMPOSITION OF AD VALOREM TAX.

(a) The board may impose a tax on all property in the district subject to district taxation. (b) The tax may be used to pay: (1) indebtedness issued or assumed by the district; and (2) the maintenance and operating expenses of the district. (c) The district may not impose a tax to pay the principal of or interest on revenue bonds issued under this chapter. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.252. TAX RATE.

(a) The board may impose the tax at a rate not to exceed the limit approved by the voters at the election authorizing the imposition of the tax. (b) The tax rate for all purposes may not exceed 75 cents on each $100 valuation of all taxable property in the district. (c) 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 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.253. 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 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009. SUBCHAPTER G. DISSOLUTION

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.301. DISSOLUTION; ELECTION.

(a) The district may be dissolved only on approval of a majority of the 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 a number of district residents equal to at least 15 percent of the registered voters in the district. (d) 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. (e) Section 41.001 (a), Election Code, does not apply to an election ordered under this section. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.302. NOTICE OF ELECTION.

(a) The board shall give notice of an election under this subchapter by publishing once a week for two consecutive weeks 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 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.303. BALLOT.

The ballot for an election under this subchapter must be printed to permit voting for or against the proposition: "The dissolution of the McCulloch County Hospital District." Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.304. 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 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.305. 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 McCulloch County or another governmental entity in McCulloch 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. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.306. SALE OR TRANSFER OF ASSETS AND LIABILITIES.

(a) The district may not be dissolved unless the board provides for the sale or transfer of the district's assets and liabilities to another person. (b) The dissolution of the district and the sale or transfer of the district's assets or liabilities may not contravene a trust indenture or bond resolution relating to the district's outstanding bonds. The dissolution and sale or transfer does not diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district. (c) The sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of district residents, including the residents' collective property rights in the district's assets. (d) The district may not transfer or dispose of the district's assets except for due compensation unless: (1) the transfer is made to another governmental entity that serves the district; and (2) the transferred assets are to be used for the benefit of district residents. (e) A grant from federal funds is an obligation to be repaid in satisfaction. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.307. IMPOSITION OF TAX AND RETURN OF SURPLUS TAXES.

(a) After the board finds that the district is dissolved, the board shall: (1) determine the debt owed by the district; and (2) impose on the property included in the district's tax rolls a tax that is in proportion of the 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 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.

Tex. SPEC. DIST. LOCAL LAWS Code § 1059.308. 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 McCulloch County summarizing the board's actions in dissolving the district. (b) Not later than the 10th day after the date the Commissioners Court of McCulloch 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 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.02, eff. April 1, 2009.
Source: TX Statutes (Official Site)URL: https://statutes.capitol.texas.gov/Fetched: 6/29/2026