CHAPTER 287. HEALTH SERVICES DISTRICTS
HEALTH AND SAFETY CODE
TITLE 4. HEALTH FACILITIES
SUBTITLE D. HOSPITAL DISTRICTS
CHAPTER 287. HEALTH SERVICES DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 287.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of a district.
(2) "District" means a health services district created under
this chapter.
(3) "Director" means a member of the board.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.002. DISTRICT AUTHORIZATION. A health services
district may be created and established and, if created, must be
maintained, operated, and financed in the manner provided by this
chapter.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER B. CREATION OF DISTRICT
Sec. 287.021. CREATION BY CONCURRENT ORDERS. (a) Except as
provided by Subsection (b), a county or hospital district and one
or more other counties or hospital districts may create a health
services district by adopting concurrent orders.
(b) A county or portion of a county that is in the boundaries of
a hospital district may not be a party to the creation of a
health services district or to a contract with a health services
district. The hospital district that serves the county or portion
of the county may create and contract with the health services
district for the boundaries of the hospital district.
(c) A concurrent order to create a health services district
must:
(1) be approved by the governing body of each creating county
and hospital district;
(2) contain identical provisions; and
(3) define the boundaries of the district to be coextensive with
the combined boundaries of each creating county and hospital
district.
(d) A concurrent order to create a health services district
adopted by a hospital district for which the tax rate is set by
the commissioners court of the county in which the hospital
district operates must be approved by the commissioners court of
that county.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.022. CONTRACT TERMS. (a) A county or hospital
district that creates a district under this chapter shall
contract with the district to provide, at a minimum, the health
care services the county or hospital district is required to
provide by law or under the constitution. A contract with a
county or hospital district that created the health services
district under this chapter must:
(1) state the term of the contract, not to exceed six years;
(2) specify the purpose, terms, rights, and duties of the
district, as authorized by this chapter;
(3) specify the financial contributions to be made by each party
to the contract to fund the district, as described by Section
287.024; and
(4) specify the land, buildings, improvements, equipment, and
other assets owned by a party to the contract that the district
will be required to manage and operate.
(b) Chapter 791, Government Code, does not apply to a contract
made under this chapter.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.023. PURPOSE AND DUTIES. (a) A health services
district shall:
(1) provide health care services to indigent residents of the
district;
(2) manage the funds contributed to the district by each county
or hospital district that contracts with the district; and
(3) plan and coordinate with public and private health care
providers and entities for the long-term provision of health care
services to residents of the district.
(b) A health services district may:
(1) provide health care services on a sliding-fee scale to
residents of the district who do not meet the basic income and
resources requirements established under Sections 61.006 and
61.008 to be eligible for assistance under Chapter 61 but who are
unable to pay for the full cost of health care services; and
(2) assume responsibility for management and operation of the
land, buildings, improvements, equipment, and other assets that
are acquired by the district or for which the district agrees to
assume responsibility under the terms of the contract.
(c) A health services district may not:
(1) establish, conduct, or maintain an institution as defined by
Section 242.002; or
(2) establish or operate a personal care facility as defined by
Section 247.002.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.024. FUNDING. (a) Each county or hospital district
that contracts with the district shall contribute to the district
for its operation:
(1) a specified dollar amount from or a percentage of the
contracting entity's operating budget and reserves if the
contracting entity is a hospital district;
(2) a specified percentage, not less than the percentage
required under Section 61.037 for state assistance, of the
contracting entity's general revenue levy for each state fiscal
year for the term of the contract, if the contracting entity is a
county;
(3) state assistance received under Chapter 61;
(4) federal matching funds received by a hospital district under
the Medicaid disproportionate share program; and
(5) any funds that are:
(A) received under the Agreement Regarding Disposition of
Settlement Proceeds dated July 18, 1998, or July 24, 1998, and
filed in the United States District Court, Eastern District of
Texas, in the case styled The State of Texas v. The American
Tobacco Company, et al., No. 5-96CV-91; and
(B) received on or after the date on which the district is
created and before the district is dissolved.
(b) The district shall maintain an accounting of the funds
received from each county or hospital district that contracts
with the district.
(c) The district may administer the financial contributions of
all parties to the contract for district purposes.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER C. DISTRICT ADMINISTRATION
Sec. 287.041. BOARD OF DIRECTORS. (a) A county or hospital
district that creates the district and has a population of
125,000 or more shall appoint one director to the board for every
125,000 persons in the population of the county or hospital
district, rounded to the nearest 125,000.
(b) A county or hospital district that creates the district and
has a population of less than 125,000 may appoint one director to
the board.
(c) The county judges of a county that creates the district
shall appoint the directors to the board on behalf of the county.
The board of directors of a hospital district that creates the
district shall appoint the directors to the board on behalf of
the hospital district.
(d) Directors serve staggered two-year terms, with as near as
possible to one-half of the directors' terms expiring each year.
(e) The number of directors appointed to the board by each
county or hospital district that creates the district is
determined at the time of the initial appointment of directors
under this section and does not vary with subsequent variations
in the population of the county or hospital district.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.042. QUALIFICATIONS FOR OFFICE. (a) To be eligible to
serve as a director, a person must be a resident of the county or
hospital district that appoints the person under Section 287.041.
(b) An employee of the district may not serve as a director.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.043. BOND. (a) Before assuming the duties of the
office, each director must execute a bond for $5,000 payable to
the district, conditioned on the faithful performance of the
person's duties as director.
(b) The bond shall be kept in the permanent records of the
district.
(c) The board may pay for directors' bonds with district funds.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.044. BOARD VACANCY. A vacancy in the office of
director shall be filled for the unexpired term in the same
manner as the original appointment.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.045. OFFICERS. (a) The board shall elect from among
its members a president and a vice president.
(b) The board shall appoint a secretary, who need not be a
director.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.046. OFFICERS' TERMS; VACANCY. (a) Each officer of
the board serves for a term of one year.
(b) The board shall fill a vacancy in a board office for the
unexpired term.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.047. COMPENSATION. (a) Directors and officers serve
without compensation but may be reimbursed for actual expenses
incurred in the performance of official duties.
(b) Expenses reimbursed under this section must be:
(1) reported in the district's minute book or other district
records; and
(2) approved by the board.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.048. VOTING REQUIREMENT. A majority of the members of
the board voting must concur in a matter relating to the business
of the district.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.049. ADMINISTRATOR AND ADDITIONAL STAFF. (a) The
board may appoint qualified persons as administrator of the
district and as additional administrative staff members as the
board considers necessary for the efficient operation of the
district.
(b) The administrator and other administrative staff members
serve at the will of the board.
(c) The administrator and other administrative staff members are
entitled to compensation as determined by the board.
(d) Before assuming the administrator's duties, the
administrator shall execute a bond payable to the health services
district in an amount not less than $5,000 as determined by the
board, conditioned on the faithful performance of the
administrator's duties under this chapter. The board may pay for
the bond with district funds.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.050. APPOINTMENTS TO STAFF. The board may:
(1) appoint to the staff any doctors the board considers
necessary for the efficient operation of the district; and
(2) make temporary appointments the board considers necessary.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.051. TECHNICIANS, NURSES, AND OTHER DISTRICT EMPLOYEES.
(a) The district may employ technicians, nurses, fiscal agents,
accountants, architects, additional attorneys, and other
necessary employees.
(b) The board may delegate to the administrator the authority to
employ persons for the district.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.052. GENERAL DUTIES OF ADMINISTRATOR. The
administrator shall:
(1) supervise the work and activities of the district; and
(2) direct the general affairs of the district, subject to the
limitations prescribed by the board.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.053. RETIREMENT BENEFITS. The board may provide
retirement benefits for employees of the district by:
(1) establishing or administering a retirement program; or
(2) electing to participate in the Texas County and District
Retirement System or in any other statewide retirement system in
which the district is eligible to participate.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER D. POWERS AND DUTIES
Sec. 287.071. RESPONSIBILITY OF GOVERNMENTAL ENTITY. On
creation of a district, a county or hospital district that
creates the district may transfer to the district:
(1) management and operation of any land, buildings,
improvements, and equipment related to the health care system
located wholly in the district that are owned by the county or
hospital district in which the district is located, as specified
in the contract with the counties and hospital districts that
created the district; and
(2) operating funds and reserves for operating expenses and
funds that have been budgeted by the county or hospital district
in which the district is located to provide medical care for
residents of the district, as specified in the contract with the
counties and hospital districts that created the district.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.072. DISTRICT RESPONSIBILITIES. On creation of a
district, the district assumes the duties required under Section
287.023 and any additional duties specified in the contract with
the counties and hospital districts that created the district.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.073. MANAGEMENT, CONTROL, AND ADMINISTRATION. The
board shall manage, control, and administer the health care
system and the funds and resources of the district that are
transferred under Section 287.071.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.074. DISTRICT RULES. The board may adopt rules
governing the operation of the district and the duties,
functions, and responsibilities of district staff and employees.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.075. METHODS AND 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 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.076. HEALTH CARE PROPERTY, FACILITIES, AND EQUIPMENT.
(a) The board shall determine:
(1) the type, number, and location of buildings required to
establish and maintain an adequate health care system; and
(2) the type of equipment necessary for health care.
(b) The board may:
(1) acquire property, facilities, and equipment for the district
for use in the health care system;
(2) mortgage or pledge the property, facilities, or equipment
acquired as security for the payment of the purchase price;
(3) transfer by lease to physicians, individuals, companies,
corporations, or other legal entities or acquire by lease
district health care facilities;
(4) sell or otherwise dispose of property, facilities, or
equipment acquired by the district; and
(5) contract with a state agency or other qualified provider to
provide services.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.077. CONSTRUCTION CONTRACTS. (a) The board may enter
into construction contracts for the district.
(b) The board may enter into construction contracts that involve
spending more than $10,000 only after competitive bidding as
provided by Subchapter B, Chapter 271, Local Government Code.
(c) Chapter 2253, Government Code, as it relates to performance
and payment bonds, applies to construction contracts let by the
district.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.078. DISTRICT CONTRACTS AND COLLABORATIONS. (a) The
board may enter into operating or management contracts relating
to health care facilities owned by the district or for which the
district assumes responsibility for managing and operating under
the terms of the contract with the counties and hospital
districts that created the district.
(b) The board may contract or collaborate with a local
governmental entity, as defined by Section 534.002, Government
Code, or any other public or private entity as necessary to
provide or deliver health care services under a demonstration
project established under Section 534.201 or 534.202, Government
Code, in which the district participates.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2003, 78th Leg., ch. 1139, Sec. 3, eff.
Sept. 1, 2003.
Sec. 287.079. PAYMENT FOR HEALTH CARE SERVICES. (a) The
district without charge shall supply to a patient residing 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.
(b) Not later than the first day of each operating year, the
district shall adopt an application procedure to determine
eligibility for assistance that complies with Section 61.053.
(c) The administrator of the district may have an inquiry made
into the financial circumstances of:
(1) a patient residing in the district and admitted to a
district facility; and
(2) a relative of the patient who is legally responsible for the
patient's support.
(d) The board may adopt a sliding-fee scale for health care
services provided to a patient who can pay for some, but not all,
of the care and treatment provided by the district.
(e) A county that created and contracted with the district may
credit a district expenditure for the care and treatment of an
eligible county resident to the same extent and in the same
manner the county would be able to claim the expenditure under
Chapter 61 if the county made the expenditure.
(f) The board shall adopt rules regarding the collection of
money that is owed to the district for health care services
provided to a patient who is determined to be able to pay for all
or any part of the services from a patient, a patient's estate,
or a relative who is legally responsible for the patient's
support.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.080. REIMBURSEMENT FOR SERVICES. (a) The board shall
require reimbursement from a county, municipality, or public
hospital located outside the boundaries of the district for the
district's care and treatment of a sick, diseased, or injured
person of that county, municipality, or public hospital as
provided by Chapter 61.
(b) The board shall require reimbursement from the sheriff or
police chief of a county or municipality for the district's care
and treatment of a person confined in a jail facility of the
county or municipality who is not a resident of the district, as
determined in the same manner as the person's residence is
determined under Chapter 61.
(c) The board may contract with a state or federal agency or
political subdivision of the state to provide health care
services.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.081. SERVICE CONTRACTS. The board may contract with a
municipality, county, special district, or other political
subdivision of the state or with a state or federal agency for
the district to:
(1) furnish a mobile emergency medical service; or
(2) provide for the investigatory or welfare needs of
inhabitants of the district.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.082. GIFTS AND ENDOWMENTS. On behalf of the district,
the board may accept gifts and endowments to be held in trust for
any purpose and under any direction, limitation, or provision
prescribed in writing by the donor that is consistent with the
proper management of the district.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.083. AUTHORITY TO SUE AND BE SUED. The board may sue
and be sued on behalf of the district.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER E. DISSOLUTION OF DISTRICT
Sec. 287.101. DISSOLUTION. (a) A district shall be dissolved
if:
(1) the contract with the counties and hospital districts that
created the district expires and is not renewed; or
(2) the counties and hospital districts that created the
district adopt concurrent orders to terminate the contract and
dissolve the district and the concurrent orders:
(A) are approved by the governing bodies of each county and
hospital district; and
(B) contain identical provisions.
(b) The governing body of a county or hospital district may
adopt orders to terminate the contract with the district and end
the county's or hospital district's participation in the
district. The county or hospital district must give written
notice to the district at least one fiscal year, as established
by the board under Section 287.121, before terminating the
contract and ending participation in the district. On termination
of the contract with the district, the district shall transfer to
the county or hospital district all unspent funds contributed by
the county or hospital district to the district and the land,
buildings, improvements, equipment, and other assets acquired by
the district that are located in the county or hospital district.
The termination of the contract by a county or hospital district
does not affect the operation of the district with respect to
each other county or hospital district that created the district.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.102. TRANSFER OF ASSETS AFTER DISSOLUTION. (a) If the
district is dissolved, the board shall:
(1) transfer the land, buildings, improvements, equipment, and
other assets acquired by the district to the county or hospital
district in which the property is located; or
(2) administer the property, assets, and debts in accordance
with Section 287.103.
(b) If the district transfers its land, buildings, improvements,
equipment, and other assets to a county or hospital district, the
county or hospital district assumes all debts and obligations of
the district related to the land, buildings, improvements,
equipment, or assets at the time of the transfer, and the
district is dissolved.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.103. ADMINISTRATION OF PROPERTY, DEBTS, AND ASSETS
AFTER DISSOLUTION. (a) If the district does not transfer its
land, buildings, improvements, equipment, and other assets to a
county or hospital district in the district, the board shall
continue to control and administer the property, debts, and
assets of the district until all funds have been disposed of and
all district debts have been paid or settled.
(b) If, after administering the property and assets, the board
determines that the district's property and assets are
insufficient to pay the debts of the district, the district shall
transfer the remaining debts to the counties and hospital
districts that created the district in proportion to the funds
contributed to the district by each county or hospital district.
(c) If, after administering the property and assets, the board
determines that unused funds remain, the board shall transfer the
unused funds to the counties and hospital districts that created
the district in proportion to the funds contributed to the
district by each county or hospital district.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.104. ACCOUNTING. After the district has paid all its
debts and has disposed of all its assets and funds as prescribed
by Sections 287.102 and 287.103, the board shall provide an
accounting to each county and hospital district that created and
contracted with the district. The accounting must show the manner
in which the assets and debts of the district were distributed.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER F. DISTRICT FINANCES
Sec. 287.121. FISCAL YEAR. (a) The district operates on the
fiscal year established by the board.
(b) The fiscal year may not be changed if revenue bonds of the
district are outstanding or more than once in a 24-month period.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.122. ANNUAL AUDIT. (a) The board annually shall have
an independent audit made of the financial condition of the
district.
(b) A copy of the audit must be provided to:
(1) each county and hospital district that created and
contracted with the district;
(2) each state and federal agency with which the district
contracts; and
(3) each other entity that contributes substantial funds to the
district.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.123. DISTRICT AUDIT AND RECORDS. The annual audit and
other district records are open to inspection during regular
business hours at the principal office of the district.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.124. ANNUAL BUDGET. (a) The administrator of the
district 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 to the credit of each fund of the
district;
(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; and
(6) the estimated amount of revenues and balances available to
cover the proposed budget.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.125. 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 resident of the district 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 administrator. The
board may make any changes in the proposed budget that in its
judgment the interests of the residents of the district demand.
(e) The budget is effective only after adoption by the board.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.126. AMENDING BUDGET. After adoption, the annual
budget may be amended on the board's approval.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.127. LIMITATION OF EXPENDITURES. Money may not be
spent for an expense not included in the annual budget or an
amendment to it.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.128. SWORN STATEMENT. As soon as practicable after the
close of the fiscal year, the administrator shall prepare for the
board a sworn statement of the amount of money that belongs to
the district and an account of the disbursements of that money.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.129. SPENDING AND INVESTMENT LIMITATIONS. (a) Except
for construction contracts under Section 287.077(a) or as
provided by Sections 287.142 and 287.143, the district may not
incur a debt payable from revenues of the district other than the
revenues on hand or to be on hand in the current and immediately
following fiscal year of the district.
(b) The board may invest operating, depreciation, or building
reserves only in:
(1) bonds of the United States;
(2) certificates of indebtedness issued by the United States
secretary of the treasury;
(3) bonds of this state or a county, municipality, or school
district of this state; or
(4) shares or share accounts of savings and loan associations
organized under the laws of this state or federal savings and
loan associations domiciled in this state, if the shares or share
accounts are insured by the Federal Deposit Insurance
Corporation.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.102, eff.
Sept. 1, 2001.
Sec. 287.130. DEPOSITORY. (a) The board shall name at least
one bank to serve as depository for district funds.
(b) District funds, other than those invested as provided by
Section 287.129(b) and those transmitted to a bank of payment for
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 funds on time deposit or to purchase
certificates of deposit.
(c) Before the district deposits funds in a bank in an amount
that exceeds the maximum amount secured by the Federal Deposit
Insurance Corporation, the bank must execute a bond or other
security in an amount sufficient to secure from loss the district
funds that exceed the amount secured by the Federal Deposit
Insurance Corporation.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.131. AD VALOREM TAXATION. A district may not impose an
ad valorem tax.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER G. BONDS
Sec. 287.141. GENERAL OBLIGATION BONDS. A district may not
issue general obligation bonds.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.142. REVENUE BONDS. (a) The board may issue revenue
bonds to:
(1) purchase, construct, acquire, repair, equip, or renovate
buildings or improvements for district purposes;
(2) acquire sites to be used for district purposes; or
(3) acquire and operate a mobile emergency medical service to
assist the district in carrying out its purposes.
(b) The bonds must be payable from and secured by a pledge of
all or part of the revenues derived from the operation of the
district. The bonds may be additionally secured by a mortgage or
deed of trust lien on all or part of district property.
(c) The bonds must be issued in the manner provided by Sections
264.042, 264.043, 264.046, 264.047, 264.048, and 264.049 for
issuance of revenue bonds by county hospital authorities.
(d) Revenue derived from the operation of the district and
pledged to the repayment of revenue bonds issued by the district
must be used to repay the principal and interest owed on the
bonds before being used to repay any other obligation of the
district, including money owed to physicians who are employed by
or who contract with the district.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.143. REFUNDING BONDS. (a) Refunding bonds of the
district may be issued to refund an outstanding indebtedness the
district has issued or assumed.
(b) The bonds must be issued in the manner provided by
Subchapter D, Chapter 1207, Government Code.
(c) The refunding bonds may be sold and the proceeds applied to
the payment of outstanding indebtedness or may be exchanged in
whole or in part for not less than a similar principal amount of
outstanding indebtedness. If the refunding bonds are to be sold
and the proceeds applied to the payment of outstanding
indebtedness, the refunding bonds must be issued and payments
made in the manner provided by Subchapters A-C, Chapter 1207,
Government Code.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.267, eff.
Sept. 1, 2001.
Sec. 287.144. INTEREST AND MATURITY. District bonds must mature
not later than the 50th anniversary of the date of their issuance
and must bear interest at a rate not to exceed that provided by
Chapter 1204, Government Code.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.268, eff.
Sept. 1, 2001.
Sec. 287.145. EXECUTION OF BONDS. The president of the board
shall execute the bonds in the name of the district, and the
secretary of the board shall countersign the bonds in the manner
provided by Chapter 618, Government Code.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.268, eff.
Sept. 1, 2001.
Sec. 287.146. APPROVAL AND REGISTRATION OF BONDS. (a) District
bonds are subject to the same requirements with regard to
approval by the attorney general and registration by the
comptroller as the law provides for approval and registration of
bonds issued by counties.
(b) On approval by the attorney general and registration by the
comptroller, the bonds are incontestable for any cause.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.147. BONDS AS INVESTMENTS. District bonds and
indebtedness assumed by the district are legal and authorized
investments for:
(1) banks;
(2) savings banks;
(3) trust companies;
(4) savings and loan associations;
(5) insurance companies;
(6) fiduciaries;
(7) trustees;
(8) guardians; and
(9) sinking funds of municipalities, counties, school districts,
and other political subdivisions of the state and other public
funds of the state and its agencies, including the permanent
school fund.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.148. BONDS AS SECURITY FOR DEPOSITS. District bonds
are eligible to secure deposits of public funds of the state and
of municipalities, counties, school districts, and other
political subdivisions of the state. The bonds are lawful and
sufficient security for deposits to the extent of their value if
accompanied by all unmatured coupons.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.
Sec. 287.149. TAX STATUS OF BONDS. Because the district created
under this chapter is a public entity performing an essential
public function, bonds issued by the district, any transaction
relating to the bonds, and profits made in the sale of the bonds
are free from taxation by the state or by any municipality,
county, special district, or other political subdivision of the
state.
Added by Acts 1999, 76th Leg., ch. 1293, Sec. 1, eff. Sept. 1,
1999.