CHAPTER 265. JOINT MUNICIPAL AND COUNTY HOSPITALS
HEALTH AND SAFETY CODE
TITLE 4. HEALTH FACILITIES
SUBTITLE C. LOCAL HOSPITALS
CHAPTER 265. JOINT MUNICIPAL AND COUNTY HOSPITALS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 265.001. MUNICIPALITY WITH POPULATION OF AT LEAST 10,000
AND ANY COUNTY. (a) The commissioners court of a county may
cooperate with the proper authorities of a municipality with at
least 10,000 inhabitants to establish, build, equip, and maintain
a hospital in the municipality.
(b) The commissioners court may appropriate funds for the
hospital that the commissioners court considers appropriate after
a joint conference with the municipal authorities.
(c) The commissioners court and the municipal authorities shall
jointly control the management of the hospital.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.002. COUNTY AND ANY TWO OR MORE MUNICIPALITIES. (a)
The commissioners court of a county may cooperate with the proper
authorities of two or more municipalities to establish, build,
equip, and maintain a hospital in the county.
(b) The commissioners court may appropriate funds for the
hospital that the court considers appropriate after a joint
conference with the municipal authorities.
(c) The commissioners court and the municipal authorities shall
jointly control the management of the hospital.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.003. COUNTY WITH POPULATION OF AT LEAST 92,600 AND
MUNICIPALITY WITH POPULATION OF AT LEAST 57,250. (a) The
commissioners court of a county with a population of at least
92,600 and the governing body of a municipality in that county
with a population of at least 57,250 may establish, build, equip,
maintain, and operate a hospital for the care and treatment of
sick, infirm, or injured inhabitants of the county or
municipality.
(b) The commissioners court and the governing body by agreement
may divide the hospital costs between the county and the
municipality.
(c) If the amounts in the county or municipal general funds are
insufficient to pay the hospital costs, the commissioners court
or the governing body at a special or general election may submit
to the qualified voters of the county or municipality,
respectively, a proposition for the county and municipality to
establish, build, equip, maintain, and operate a hospital and
for:
(1) the levy of a tax for that purpose not to exceed 10 cents on
each $100 of the taxable value of real and personal property that
is taxable by the county or municipality; or
(2) the issuance of bonds by the county or municipality in an
amount not to exceed the amount specified in the proposition for
all or part of the cost of establishing, building, or equipping
the hospital and for the levy of a tax to create a sinking fund
for the payment of interest on the bonds not to exceed 10 cents
on each $100 of the taxable value of real and personal property
that is taxable by the county or municipality.
(d) The commissioners court or governing body may assess and
levy a tax, or may issue bonds in the manner provided for
issuance of other bonds by the county or municipality and assess
and levy a tax, as stated in the proposition if the proposition
is approved by a majority of votes cast in the election.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
SUBCHAPTER B. JOINT HOSPITAL WITH BOARD OF MANAGERS
Sec. 265.011. ESTABLISHMENT OF HOSPITAL BY COMMISSIONERS COURT
AND MUNICIPAL GOVERNING BODY. The commissioners court of a
county and the governing body of a municipality in that county
may jointly appoint a board of managers to establish, build,
equip, maintain, and operate one or more hospitals for the care
and treatment of the sick, infirm, or injured.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.012. FINANCING. (a) If the municipality or county has
issued and sold bonds to establish, build, equip, maintain, and
operate a joint municipal and county hospital, the municipality
or county may finance the hospital out of general revenue and may
levy and collect a tax to finance the hospital not to exceed 10
cents on each $100 of the taxable value of property taxable by
the municipality or county.
(b) The commissioners court and the municipal governing body may
contribute to the funds necessary for the hospital in a
proportion to which they agree.
(c) The board of managers may spend, in a manner determined by
the board, funds provided by the county or municipality through
the issuance of bonds or other obligations or by appropriation
from other funds, for purposes related to the hospital as if the
action were taken by the commissioners court or the governing
body.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.013. BOARD OF MANAGERS. (a) The board of managers is
composed of seven members.
(b) The commissioners court and the municipal governing body
shall each appoint three members to the board, and the
commissioners court and the governing body shall jointly appoint
one member to the board. Members are appointed for six-year
terms. However, in making the initial appointments to the board,
each appointing entity shall designate one of its appointees for
a term expiring two years after the date of appointment, one for
a term expiring four years after the date of appointment, and one
for a term expiring six years after the date of appointment. The
term of the initial joint appointee expires six years after the
date of appointment.
(c) The entity that made an original appointment shall appoint a
successor member on the expiration of a member's term or to fill,
for the unexpired part of a term, a vacancy caused by death or
resignation.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.014. CHAIRMAN. The board of managers shall select a
chairman from among its members who shall:
(1) preside over the board's meetings; and
(2) sign any contract, agreement, or other instrument made by
the board on behalf of the county and municipality.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.015. CONTRACTS. The board of managers may execute any
contract relating to establishing, building, equipping,
maintaining, or operating the hospital as if the action were
taken by the commissioners court or the municipal governing body.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.016. FINANCIAL STATEMENT; BUDGET. (a) The board of
managers shall annually prepare and present to the commissioners
court and the municipal governing body a statement of the
hospital's financial status with a proposed budget for the
following year.
(b) On the basis of the financial statement and budget, the
commissioners court and the governing body shall appropriate an
amount those entities consider proper and necessary for the use
of the board of managers in the operation of the hospital.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.017. ISSUANCE OF REVENUE BONDS. (a) The board of
managers may issue and sell revenue bonds in the name of the
hospital to finance:
(1) the acquisition of real property, the acquisition,
construction, improvement, repair, or rehabilitation of hospital
facilities, or the acquisition of equipment or supplies necessary
for the hospital to provide hospital services; or
(2) the installation of equipment necessary for the hospital to
provide hospital services.
(b) The board of managers has the powers of an issuer under
Chapter 1371, Government Code, and may enter into a credit
agreement under that chapter. A bond issued under this subchapter
is an obligation under Chapter 1371, Government Code, but is not
required to be rated as required by that chapter. In this
subsection, "credit agreement" and "obligation" have the meanings
assigned by Section 1371.001, Government Code.
(c) Bonds issued under this subchapter must be approved by:
(1) a resolution adopted by the board of managers; and
(2) a resolution or order adopted by the commissioners court of
the county and the governing body of the municipality that
appointed the board.
(d) At the time of issuance of the bonds, the board of managers
may:
(1) determine the title of the bonds, provided the title
includes the following: "Board of Managers Joint (insert county
name)-(insert municipality name) Hospital Revenue Bonds";
(2) prescribe procedures for the operation and maintenance of
the hospital in the proceedings authorizing issuance of the
revenue bonds; and
(3) provide for the issuance of additional parity bonds or
subordinate lien bonds under terms prescribed by the board of
managers in the proceedings authorizing issuance of the revenue
bonds.
Added by Acts 2001, 77th Leg., ch. 151, Sec. 1, eff. May 16,
2001.
Sec. 265.0171. REPAYMENT OF BONDS. The board of managers may
provide for the payment of principal of, premium on, if any, and
interest on the bonds by pledging all or any part of the
hospital's revenue derived from the operation of the hospital or
from other sources.
Added by Acts 2001, 77th Leg., ch. 151, Sec. 1, eff. May 16,
2001.
Sec. 265.0172. ADDITIONAL SECURITY FOR BONDS. The bonds may be
additionally secured by a deed of trust or mortgage lien on part
or all of the physical properties of the hospital and rights
appurtenant to those properties.
Added by Acts 2001, 77th Leg., ch. 151, Sec. 1, eff. May 16,
2001.
Sec. 265.0173. MATURITY. A bond issued under this subchapter
must mature not later than 40 years after its date.
Added by Acts 2001, 77th Leg., ch. 151, Sec. 1, eff. May 16,
2001.
Sec. 265.0174. BONDS NOT PAYABLE FROM TAXES. A bond issued
under this subchapter must contain the following provision: "The
holder of this obligation is not entitled to demand payment of
this obligation out of any money raised by taxation by (name of
county) or by (name of municipality) or from any other income of
the county or municipality. The board of managers of the hospital
has no taxing power."
Added by Acts 2001, 77th Leg., ch. 151, Sec. 1, eff. May 16,
2001.
Sec. 265.0175. SALE OF BONDS. The board of managers may sell
bonds issued under this subchapter at public or private sale in
the manner and on the terms approved by the board.
Added by Acts 2001, 77th Leg., ch. 151, Sec. 1, eff. May 16,
2001.
Sec. 265.0176. REFUNDING BONDS. (a) The board of managers may
refund bonds issued under this subchapter by issuing refunding
bonds under terms approved by the board.
(b) All appropriate provisions of this subchapter apply to the
refunding bonds. The refunding bonds shall be issued in the
manner provided by this subchapter for issuing other bonds.
(c) The refunding bonds may be sold and delivered in amounts
sufficient to pay the principal of and interest and any
redemption premium on the bonds to be refunded, at maturity or on
any redemption date.
(d) The refunding bonds may be issued to be exchanged for the
bonds being refunded by them. In that case, the comptroller shall
register the refunding bonds and deliver them to the holder of
the bonds being refunded as approved by the board. The exchange
may be made in one delivery or in installment deliveries.
Added by Acts 2001, 77th Leg., ch. 151, Sec. 1, eff. May 16,
2001.
Sec. 265.0177. AUTHORITY TO BORROW MONEY. (a) After approval
by resolution of the commissioners court of the county and the
governing body of the municipality that appointed the board, the
board of managers may, on behalf of the hospital, borrow money
from a federally insured lending institution for a purpose
described by Section 265.0179. The board may execute a loan
agreement or promissory note as evidence of the obligation to
repay the loan.
(b) The board of managers may borrow money in an amount it
considers advisable, subject to a rate of interest, security, and
other terms it considers advisable. The loan shall mature not
later than the 30th anniversary of the date on which the loan is
made.
(c) Before entering into a loan under this section, the board of
managers must determine that there will be sufficient money
available from revenues generated by the hospital to pay the loan
when the loan becomes due.
(d) The commissioners court of the county and the governing body
of the municipality that appointed the board of managers must
approve the terms of a loan agreement by written resolution.
(e) Chapter 1202, Government Code, does not apply to a
promissory note or any other instrument evidencing a loan under
this section.
Added by Acts 2003, 78th Leg., ch. 719, Sec. 1, eff. June 20,
2003.
Sec. 265.0178. PLEDGE OF SECURITY. (a) A loan under Section
265.0177 may be:
(1) payable from and secured by a pledge of all or part of the
revenues, income, or resources of the hospital that are not
pledged to pay a bonded indebtedness of the hospital; or
(2) secured by a deed of trust or other security interest in any
property of the hospital that is not pledged to pay a bonded
indebtedness of the hospital.
(b) The holder of a loan obligation under Section 265.0177 is
not entitled to demand payment of the principal and interest on
the loan from any money or property of the hospital other than
the money or property specifically pledged to secure payment of
the loan.
Added by Acts 2003, 78th Leg., ch. 719, Sec. 1, eff. June 20,
2003.
Sec. 265.0179. PERMISSIBLE USES OF LOAN PROCEEDS. The proceeds
from a loan under Section 265.0177 may be used to pay costs
related to the acquisition, construction, rehabilitation, and
equipping of a hospital facility, including costs related to the
acquisition of real property and any other improvement considered
necessary and appropriate by the board of managers.
Added by Acts 2003, 78th Leg., ch. 719, Sec. 1, eff. June 20,
2003.
Sec. 265.018. HOSPITAL PROPERTY. The board of managers may
acquire, hold, or dispose of property or an interest in property.
As agreed by the county and municipality, the county or
municipality may hold title to hospital property, or title may be
held in the name of the hospital.
Added by Acts 2001, 77th Leg., ch. 151, Sec. 1, eff. May 16,
2001.
Sec. 265.0181. TRANSFER OF PROPERTY. On dissolution of the
board of managers, title to property held by the board or in the
name of the hospital shall be transferred to the county and
municipality as agreed to by the county and municipality.
Added by Acts 2001, 77th Leg., ch. 151, Sec. 1, eff. May 16,
2001.
Sec. 265.019. USE OF EARNINGS OR ASSETS FOR PRIVATE PURPOSES
PROHIBITED. Except as reasonable compensation for services
rendered or reasonable allowance for authorized expenditures
incurred on behalf of the board of managers or the hospital, the
net earnings of the board or the hospital may not be used for the
benefit of a private officer, board member, individual, or
substantial contributor to the board of managers or the hospital.
The assets of the board or the hospital may not be distributed
to, be divided among, be used for, accrue to, or benefit a
private officer, board member, individual, or substantial
contributor to the board or the hospital.
Added by Acts 2001, 77th Leg., ch. 151, Sec. 1, eff. May 16,
2001.
Sec. 265.020. APPLICABILITY. Sections 265.017-265.019 apply
only to a hospital located in a county with a population of
75,000 or more.
Added by Acts 2001, 77th Leg., ch. 151, Sec. 1, eff. May 16,
2001.
SUBCHAPTER C. JOINT HOSPITAL CONTROLLED BY MUNICIPALITY OR COUNTY
Sec. 265.021. OWNERSHIP AND CONTROL DESIGNATED. (a) A county
with a population of at least 200,000 and one or more
municipalities in the county that jointly own and operate a
hospital in the county may by agreement designate one of those
governmental entities to assume the entire ownership and control
of the hospital on terms to which those governmental entities
agree.
(b) On the agreement of the commissioners court and the
governing body of each municipality that jointly owns and
operates the hospital, a countywide election on the issue of the
future ownership and operation of the hospital may be ordered.
The majority vote on the propositions submitted shall govern the
future ownership and operation of the hospital. The commissioners
court shall pay the costs of the election from county funds.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.022. BOARD OF MANAGERS OF HOSPITAL CONTROLLED BY
COUNTY. (a) If the county is designated to own and control the
hospital, the commissioners court shall appoint a board of
managers with at least three and not more than nine members.
(b) The board of managers has control of the management of the
hospital.
(c) The board of managers shall give a report of their
management, including all acts and rules of the board, to the
commissioners court once each quarter or more often at the
request of the commissioners court.
(d) The board of managers shall give a quarterly financial
statement to the commissioners court that shows all money spent
and received by the board and the purposes of the expenditures.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.023. BOARD OF MANAGERS OF HOSPITAL CONTROLLED BY
MUNICIPALITY. If the municipality is designated to own and
control the hospital, the governing body of the municipality may
appoint the board of managers under its charter or as it
considers appropriate.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.024. TERMS. Members of the board of managers shall be
appointed for staggered six-year terms, with one-third of the
terms expiring every two years.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.025. TAX. (a) The commissioners court may authorize
and levy a tax not to exceed 50 cents on each $100 of the taxable
value of property taxable by the county for construction of
buildings or building additions, for other improvements or
equipment, or for operation and maintenance of the hospital if
the tax is approved by a majority vote at a county election.
Additional taxes may be authorized at subsequent elections if the
total tax does not exceed the limit imposed by this subsection.
(b) The voters may approve a part of the tax to be used for the
interest and sinking fund for outstanding bonds of the
municipality or county issued for construction or maintenance of
the hospital, whether issued before or after the ownership and
control of the hospital are designated under this chapter.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.026. TUBERCULOSIS CONTROL. (a) The commissioners
court and each municipal governing body that designates the
ownership and control of a joint hospital under this subchapter
may conduct a joint program of tuberculosis control in their
jurisdictions to protect the public health through alleviation,
suppression, and prevention of the spread of tuberculosis.
(b) The program may include cooperation with public or private
agencies that have the same objective, whether federal, state, or
local.
(c) The commissioners court may levy a tax not to exceed 10
cents on each $100 of the taxable value of property taxable by
the county, in addition to the tax under Section 265.025, if
approved by a majority vote at a county election. The revenue
from that tax shall be kept separate from other funds and shall
be used only for the purposes of this section.
(d) The governing body of a municipality participating in the
program may levy a tax not to exceed five cents on each $100 of
the taxable value of property taxable by the municipality if
approved by a majority vote at a municipal election in accordance
with the municipal charter in a home-rule municipality or with
other law in a general-law municipality. The revenue from the tax
shall be kept separate from other funds and shall be used only
for the purposes of this section. The municipal charter of a
home-rule municipality may be amended to create the fund for the
tax proceeds or other income.
(e) The county and each municipality participating in the
program and levying the taxes may create a joint tuberculosis
control board to administer this section. The board must have at
least five members. The district judges of the county by majority
action, the county health board, the municipal health board of
the participating municipality with the largest population, the
county judge, and the mayor of each participating municipality
shall each appoint a member to the board. Board members serve
without compensation.
(f) The members are appointed for three-year terms. However, the
term of the first appointment by the county health board or by a
mayor expires one year after the date of appointment, the term of
the first appointment by the municipal health board or the county
judge expires two years after the date of appointment, and the
term of the first appointment by the district judges expires
three years after the date of appointment. The entity that made
an original appointment shall appoint a successor member on the
expiration of a member's term or to fill, for the unexpired part
of a term, a vacancy caused by death or resignation.
(g) The board may administer this section to alleviate,
suppress, and prevent the spread of tuberculosis in the county as
a public health function.
(h) The county and each municipality participating under this
section may combine the proceeds from taxes levied under this
section to be spent under the board's direction only to:
(1) provide necessary economic aid to indigent persons with
tuberculosis and dependent members of their immediate family, on
certification by the county or municipal health authority that
those persons are indigent and have resided in the county for at
least six months before receiving aid or assistance from a public
or private charity or service for the person's support or the
support of the person's family, in order to treat and prevent the
disease and protect the public health; or
(2) pay administrative expenses, including the expenses of case
investigation and necessary equipment and services.
(i) The board quarterly shall report the condition of the fund,
the expenditures from the fund, and the services performed to the
commissioners court and the governing body of each municipality
participating under this section. The commissioners court or the
governing body of a municipality participating under this section
may examine and audit the books and other records of the board.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
SUBCHAPTER D. JOINT COUNTY-MUNICIPAL HOSPITAL BOARDS
Sec. 265.031. CREATION OF BOARD. (a) The commissioners court
of a county and the governing body of a municipality located in
whole or in part in that county may adopt resolutions creating a
joint county-municipal hospital board, without taxing power,
designated the "____________ County-Municipality of ____________,
Texas, Hospital Board."
(b) A board created under this section is a public agency and
body politic.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.032. APPOINTMENT OF BOARD. (a) The board consists of
seven directors. A director may serve successive terms.
(b) The commissioners court shall appoint four directors in its
resolution creating the board, and the municipal governing body
shall appoint three directors in its resolution creating the
board.
(c) Directors are appointed for staggered terms of two years.
However, in making the initial appointments to the board the
commissioners court shall designate two of its appointees to
serve two-year terms and two to serve one-year terms, and the
governing body shall designate two of its appointees to serve
two-year terms and one to serve a one-year term.
(d) The entity that makes an original appointment shall appoint
a successor director on the expiration of a director's term or to
fill, for the unexpired part of a term, a vacancy caused by death
or resignation.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.033. OFFICERS. (a) The board shall elect a director
as chairman. The chairman shall preside at board meetings and
perform other duties and functions prescribed by the board. The
chairman may vote in the same manner as any other director.
(b) The board shall elect a secretary, who is not required to be
a director. The secretary is the official custodian of the
minutes, books, records, and seal of the board and shall perform
other duties and functions prescribed by the board.
(c) The board may elect any other officer that the board
considers necessary or advisable.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.034. AUTHORITY OF BOARD. (a) The board shall act
through resolutions adopted by the board. The affirmative vote of
four directors is required to adopt a resolution.
(b) The board is a joint agent of the county and the
municipality for hospital purposes and shall act solely for the
joint benefit of the county and the municipality. However, the
board shall act independently in the exercise of powers, duties,
and functions under this subchapter.
(c) The board may appoint or employ any agent, employee, or
official that the board considers necessary or advisable to carry
out any power, duty, or function of the board.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.035. SUITS. The board may sue and be sued in its own
name, capacity, and behalf.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.036. COMPENSATION. A director may not receive
compensation but is entitled to reimbursement for actual expenses
incurred in the performance of the duties of director to the
extent authorized by the board.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.037. HOSPITAL FACILITIES; OTHER PROPERTY. (a) The
board may purchase, construct, receive, lease, or otherwise
acquire hospital facilities and may improve, enlarge, furnish,
equip, operate, and maintain those facilities.
(b) The county or the municipality may lease or convey title to,
or any other interest in, all or part of the county's or
municipality's hospital facilities, including real and personal
property, to the board on terms agreed to by the county or
municipality and the board.
(c) The board may own, receive, encumber, sell, lease, or convey
any interest in real or personal property, including gifts and
grants. However, the board may not encumber, sell, lease, or
convey real or personal property unless the commissioners court
and the governing body of the municipality by resolution approve
the transaction.
(d) A board existing in a county with a population of more than
100,000 and a municipality with a population of more than 75,000,
as an exercise of its powers as a public agency and body politic,
may purchase, construct, receive, lease, or otherwise acquire
hospital facilities, including the sublease of one or more
hospital facilities, regardless of whether the action might be
considered anticompetitive under the antitrust laws of the United
States or this state.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1997, 75th Leg., ch. 909, Sec. 1, eff. Sept. 1,
1997.
Sec. 265.038. CONTRACTS FOR HOSPITAL SERVICES. The county or
the municipality may contract with the board for the care and
treatment of indigent or needy patients or for any other hospital
services. The county or the municipality may make payments to the
board under the contract and may levy ad valorem taxes or pledge
funds or resources for the payments.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.039. FUNDS. (a) The board may apply for, receive, and
spend federal or state funds available for hospital purposes.
(b) The county or the municipality by resolution may authorize
the board to apply for, receive, and spend federal or state funds
available for county or municipal hospital purposes.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.040. AUTHORITY TO ISSUE REVENUE BONDS. (a) The board
may issue revenue bonds to perform any power, duty, or function
under this subchapter. The issuance must be approved by
resolution by the commissioners court and the municipal governing
body.
(b) The board may prescribe procedures for the operation and
maintenance of the hospital in the proceedings authorizing the
issuance of the bonds.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.041. TERMS OF BONDS. (a) The revenue bonds may mature
serially or otherwise not more than 40 years after they are
issued. The bonds may bear interest at a rate not to exceed the
maximum rate provided by Chapter 1204, Government Code, and may
be made redeemable prior to maturity.
(b) The bonds and any appurtenant interest coupons are
negotiable instruments.
(c) The bonds may be made registrable as to principal or as to
principal and interest.
(d) The directors may determine, in the proceedings authorizing
the issuance of the bonds:
(1) the form, denominations, and manner in which the bonds are
issued;
(2) the terms and details under which the bonds are issued; and
(3) the manner in which the bonds are executed.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.258, eff. Sept.
1, 2001.
Sec. 265.042. PLEDGE OF SECURITY. (a) The revenue bonds may be
payable from, and secured by a pledge of, all or part of the
revenues, income, or resources of the board or the board's
hospital facilities. Additionally, the bonds may be secured by a
mortgage or deed of trust on real or personal property, and the
board may authorize the execution and delivery of trust
indentures or other encumbrances to evidence the security.
(b) The bonds must contain substantially the following
statement: "The owner hereof shall never have the right to demand
payment of this obligation from taxes levied by the hospital
board."
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.043. SALE AND USE OF PROCEEDS. (a) The revenue bonds
may be sold at public or private sale at a price and under terms
determined by the directors. The bonds may bear interest at a
rate not to exceed the maximum rate provided by Chapter 1204,
Government Code.
(b) Proceeds from the sale of the bonds may be used, if the use
is authorized in the proceedings authorizing issuance of the
bonds, to:
(1) pay interest on the bonds during the construction of
hospital facilities acquired through issuance of the bonds;
(2) pay operation and maintenance expense of the hospital
facilities to the extent and for the time specified in the
proceedings;
(3) create reserves for the payment of principal of and interest
on the bonds; or
(4) invest, until needed, to the extent and in the manner
provided in the bond resolution or a trust indenture executed in
connection with the bonds.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.259, eff. Sept.
1, 2001.
Sec. 265.044. PARITY AND SUBORDINATE LIEN BONDS. The directors
may provide in the authorization of the revenue bonds for the
subsequent issuance of additional parity bonds or subordinate
lien bonds under terms set by the board in the proceedings
authorizing the issuance of the revenue bonds.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.045. NOTICE; PETITION FOR ELECTION. (a) Before the
directors authorize the issuance of bonds other than refunding
bonds, the directors shall prepare and publish a notice of:
(1) its intention to adopt a resolution authorizing the issuance
of bonds;
(2) the date it intends to adopt the resolution; and
(3) the maximum amount and maximum maturity of the bonds.
(b) The notice must be published once a week for two consecutive
weeks in a newspaper of general circulation in the county and the
municipality. The first notice must be published not later than
the 15th day before the date set for adopting the bond
resolution.
(c) A petition requesting an election on the proposition for the
issuance of the bonds may be presented to the hospital board
secretary before the date set for adoption of the bond
resolution. The petition must be signed by at least 10 percent of
the qualified voters residing in the county and in any part of
the municipality that is not in the county.
(d) The directors shall order an election requested under
Subsection (c) in the county and any part of the municipality
that is not in the county. The election shall be held
substantially as provided by Chapter 1251, Government Code. The
board may issue the bonds if the issuance is approved at the
election.
(e) The bond resolution may be adopted on the date set for the
adoption, or not later than the 30th day after that date, if no
petition is filed, and the bonds may be issued and delivered
without an election or the creation of an encumbrance.
(f) The directors may order an election on the issuance of the
bonds on their own motion if they consider it advisable.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.260, eff. Sept.
1, 2001.
Sec. 265.046. REFUNDING BONDS. Any bonds issued under this
subchapter may be refunded by the issuance of refunding bonds in
the manner provided by this subchapter for the issuance of other
bonds, except the refunding bonds may be issued to be exchanged
for the bonds being refunded. If the refunding bonds are issued
to be exchanged, the comptroller shall register the refunding
bonds and deliver them to each holder of the bonds being refunded
as provided by the proceedings authorizing the refunding bonds.
The exchange may be made in one delivery or several installment
deliveries.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.047. EXAMINATION, APPROVAL, AND REGISTRATION OF BONDS.
(a) The board shall submit to the attorney general for
examination the bonds issued under this subchapter and the
proceedings authorizing their issuance.
(b) The attorney general shall approve the bonds if the attorney
general finds that the bonds have been authorized in accordance
with this subchapter, and the comptroller shall register the
bonds.
(c) Following approval and registration, the bonds are
incontestable and are valid and binding obligations in accordance
with their terms.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.048. LEGAL INVESTMENTS; SECURITY FOR DEPOSITS. (a)
Bonds issued under this subchapter are legal and authorized
investments for:
(1) a bank;
(2) a savings bank;
(3) a trust company;
(4) a savings and loan association;
(5) an insurance company;
(6) a fiduciary;
(7) a trustee;
(8) a guardian; and
(9) an interest and sinking fund or other public fund of the
state or of an agency, subdivision, or instrumentality of the
state, including a municipality, county, school district, special
district, public agency, and body politic.
(b) The bonds are eligible and lawful security for the deposits
of public funds of the state or of an agency, subdivision, or
instrumentality of the state, including a municipality, county,
school district, special district, public agency, and body
politic. The bonds may secure those deposits in an amount up to
the value of the bonds, if accompanied by all appurtenant
unmatured interest coupons.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.049. CHARGES FOR SERVICES AND FACILITIES. The board
shall operate its hospital facilities for the use and benefit of
the public, but shall establish and collect charges for services
and facilities that are sufficient combined with other revenue
and income to:
(1) pay all expenses related to ownership, operation, and
maintenance of its hospital facilities;
(2) pay principal of and interest on its bonds; and
(3) create and maintain reserves and any other funds provided
for in the proceedings authorizing the issuance of bonds.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.050. DEPOSITORY. The board may:
(1) select a depository in the same manner that a municipality
or county may select a depository under Chapter 105 or Chapter
116, Local Government Code; or
(2) execute a depository contract with a depository selected by
the municipality or the county on the same terms as the
municipality or county.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.051. INVESTMENT OF FUNDS. (a) The law relating to
security for and investment of municipal or county funds applies
to hospital board funds. A bond resolution or trust indenture
executed for hospital board bonds may further restrict the
security for and investment of hospital board funds.
(b) The hospital board may invest, until needed, all or part of
its bond proceeds in direct obligations of the United States to
the extent authorized in the bond resolution or trust indenture.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.052. EMINENT DOMAIN. (a) The hospital board may
acquire the fee simple title to or any other interest in land and
other property by condemnation under Chapter 21, Property Code,
to carry out any power, duty, or function under this subchapter.
(b) The board has the same rights as a county or municipality
under Section 21.021, Property Code.
(c) The board shall determine the amount and character of the
interest in land or other property to be acquired under this
section.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
SUBCHAPTER E. SALE, LEASE, OR CLOSING
Sec. 265.071. OFFICIAL ACTION. (a) The commissioners court by
order and the governing body of a municipality by ordinance may
order the sale, lease, or closing of all or part of a joint
municipal and county hospital, including real property, owned and
operated by the county and municipality.
(b) The order and ordinance must include a finding that the
sale, lease, or closing is in the best interest of the residents
of the county or municipality, respectively.
(c) A sale or closing may not take effect before the expiration
of the period in which a petition may be filed under Section
265.072.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 265.072. PETITION AND ELECTION. (a) A petition requesting
an election on the sale or closing of the hospital may be
presented to the commissioners court and the municipal governing
body before the 31st day after the date the commissioners court
and the governing body order the sale or closing.
(b) The petition must be signed by at least 10 percent of the
qualified voters of the county and any part of the municipality
that is not in the county.
(c) On receipt of the petition, the commissioners court and the
governing body shall order and conduct the election. The
commissioners court and the governing body may sell or close the
hospital only if a majority of the qualified voters voting at the
election approve the sale or closing.
(d) The number of qualified voters of the county and any part of
the municipality that is not in the county is determined
according to the most recent official list of registered voters.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.