CHAPTER 1006. CAPROCK HOSPITAL DISTRICT

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 3. HEALTH

SUBTITLE A. HOSPITAL DISTRICTS

CHAPTER 1006. CAPROCK HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1006.001. 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 Caprock Hospital District.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.002. AUTHORITY FOR CREATION. The Caprock Hospital

District is created under the authority of Section 9, Article IX,

Texas Constitution.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.003. ESSENTIAL PUBLIC FUNCTION. The district performs

an essential public function in carrying out the purposes of this

chapter.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.004. DISTRICT TERRITORY. (a) The boundaries of the

district are coextensive with the boundaries of County

Commissioners Precincts 1, 3, and 4 of Floyd County as those

boundaries existed on January 1, 1963.

(b) Territory may not be annexed or added to the district.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The support and maintenance of the district may not

become a charge against or obligation of this state.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.006. 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 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1006.051. BOARD ELECTION; TERM. (a) The board consists of

five directors elected from the district at large.

(b) Directors serve two-year staggered terms unless four-year

terms are established under Section 285.081, Health and Safety

Code.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.052. NOTICE OF ELECTION. At least 10 days before the

date of an election of directors, notice of the election shall be

published one time in a newspaper of general circulation in Floyd

County.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.053. BALLOT PETITION. A person who wants to have the

person's name printed on the ballot as a candidate for director

must file with the board's secretary a petition requesting that

action. The petition must be:

(1) signed by at least 25 qualified voters; and

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

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.054. QUALIFICATIONS FOR OFFICE. To be eligible to be

elected or appointed as a director, a person must:

(1) be a resident of the district; and

(2) own land in the district subject to taxation.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.055. DIRECTOR'S BOND; RECORD OF BOND AND OATH OR

AFFIRMATION. (a) Each director shall execute a good and

sufficient bond for $1,000 that is:

(1) payable to the district; and

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

duties.

(b) The bond and the constitutional oath or affirmation of

office shall be deposited with the depository bank of the

district.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.056. BOARD VACANCY. (a) If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term.

(b) If the number of directors is reduced to fewer than three

for any reason, the remaining directors shall immediately call a

special election to fill the vacancies. If the remaining

directors do not call the election, a district court on

application of a district voter or taxpayer may issue an order

requiring the directors to call an election.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.057. OFFICERS. The board shall elect from among its

members a president and a secretary.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.058. VOTING REQUIREMENT. A concurrence of three

directors is sufficient in any matter relating to district

business.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.059. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR.

(a) The board shall appoint a qualified person as a district

administrator.

(b) The board may appoint an assistant to the district

administrator.

(c) The district administrator and any assistant district

administrator serves at the will of the board and is entitled to

the compensation determined by the board.

(d) On assuming the duties of district administrator, the

administrator shall execute a bond payable to the district in an

amount of not less than $10,000 to be set by the board that:

(1) is conditioned on the administrator performing the

administrator's duties; and

(2) contains any other condition the board may require.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.060. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. The

district administrator shall supervise the work and activities of

the district subject to any limitation the board may prescribe.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.061. EMPLOYEES. The board may employ technicians,

nurses, and other employees considered necessary for the

efficient operation of the district or may delegate that

authority to the district administrator.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.062. RETIREMENT PROGRAM. The board may enter into a

contract or agreement with this state or the federal government

to establish or continue a retirement program for the benefit of

the district's employees.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1006.101. DISTRICT RESPONSIBILITY. The district has full

responsibility for:

(1) operating all hospital facilities for providing medical and

hospital care to indigent persons in the district; and

(2) providing medical and hospital care for the district's needy

residents.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND

DEBT. A political subdivision located in the district may not

impose taxes or issue bonds or other obligations for hospital

purposes for medical treatment of indigent persons.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The

board shall manage, control, and administer the district's

hospitals and hospital system.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.104. HOSPITAL SYSTEM. The district shall provide for

the establishment of a hospital or hospital system in the

district by:

(1) purchasing, constructing, acquiring, repairing, or

renovating buildings and improvements;

(2) equipping the buildings and improvements; and

(3) administering the buildings and improvements for hospital

purposes.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.105. RULES. The board may adopt rules for the

operation of the district and as required to administer this

chapter.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.106. PURCHASING AND ACCOUNTING PROCEDURES. The board

may prescribe:

(1) the method and manner of making purchases and expenditures

by and for the district; and

(2) all accounting and control procedures.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.107. EMINENT DOMAIN. (a) The district may exercise

the power of eminent domain to acquire a fee simple or other

interest in any type of property located in district territory if

the interest is necessary or convenient for the district to

exercise a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain in

the manner provided by Chapter 21, Property Code.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.108. GIFTS AND ENDOWMENTS. The board may accept for

the district a gift or endowment to be held in trust and

administered by the board for the purposes and under the

directions, limitations, or other provisions prescribed in

writing by the donor that are not inconsistent with the proper

management and objectives of the district.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.109. CONTRACTS FOR SERVICES TO CERTAIN PERSONS. (a)

The board may contract with a county or a municipality located

outside the district for the care and treatment of sick or

injured persons of that county or municipality.

(b) The board may contract with this state or a federal agency

for the treatment of a sick or injured person for whom this state

or the federal government is responsible.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.110. PAYMENT FOR TREATMENT; PROCEDURES. (a) When an

individual who resides in the district is admitted to a district

facility, the district administrator shall have an inquiry made

into the circumstances of:

(1) the patient; and

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

patient's support.

(b) If the district administrator determines that the patient or

those relatives cannot pay all or part of the costs of the

patient's care and treatment, the amount of the costs that cannot

be paid becomes a charge against the district.

(c) If the district administrator determines that the patient or

those relatives can pay for all or part of the costs of the

patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's support. The amount ordered must be

proportionate to financial ability and may not exceed the actual

per capita cost of maintenance.

(d) The district administrator may collect the amount from the

patient's estate, or from a relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay or doubt in

the mind of the district administrator, the board shall hold a

hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue an appropriate order.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.111. AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

SUBCHAPTER D. FINANCIAL ADMINISTRATION OF DISTRICT

Sec. 1006.151. BUDGET. (a) The district administrator shall

prepare an annual budget for approval by the board. The budget

must be for the fiscal year prescribed by Section 1007.152.

(a) The district administrator shall prepare an annual budget

for approval by the board. The budget must be for the fiscal

year prescribed by Section 1006.152.

(b) Not later than August 31 of each year, the board shall

publish notice of a public hearing on the proposed budget. The

notice must be published one time in a newspaper of general

circulation in the district at least 10 days before the date of

the hearing.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 13.001, eff. September 1, 2007.

Sec. 1006.152. FISCAL YEAR. The district operates on a fiscal

year that begins on October 1 and ends on September 30.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.153. AUDIT. (a) The district shall have an audit

made of the district's financial condition.

(b) The audit shall be open to inspection at all times at the

district's principal office.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.154. FINANCIAL REPORT. As soon as practicable after

the close of each fiscal year, the district administrator shall

prepare for the board:

(1) a complete sworn statement of all district money; and

(2) a complete account of the disbursements of that money.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.155. DEPOSITORY. (a) The board shall select one or

more banks in the district to serve as a depository for district

money.

(b) All district money shall be immediately deposited on receipt

with a depository bank, except that sufficient money must be

remitted to the appropriate bank to pay the principal of and

interest on the district's outstanding bonds on or before the

maturity date of the principal and interest.

(c) To the extent that money in a depository bank is not insured

by the Federal Deposit Insurance Corporation, the money must be

secured in the manner provided by law for security of county

funds.

(d) Membership on the district's board of an officer or director

of a bank does not disqualify the bank from being designated as a

depository bank.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.156. BORROWING MONEY IN EMERGENCY; SECURITY. (a) The

board may borrow money at a rate not to exceed the maximum annual

percentage rate allowed by law for district obligations at the

time the loan is made if the board declares that:

(1) money is not available to meet authorized obligations of the

district; and

(2) an emergency exists.

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

(1) district revenues that are not pledged to pay bonded

indebtedness of the district;

(2) district taxes to be imposed by the district in the next

12-month period that are not pledged to pay the principal of or

interest on district bonds; or

(3) district bonds that have been authorized but not sold.

(c) A loan for which taxes or bonds are pledged must mature not

later than the first anniversary of the date the loan is made. A

loan for which district revenues are pledged must mature not

later than the fifth anniversary of the date the loan is made.

(d) The board may not spend money obtained from a loan under

this section for any purpose other than:

(1) the purpose for which the board declared an emergency; and

(2) if district taxes or bonds are pledged to pay the loan, the

purpose for which the pledged taxes were imposed or the pledged

bonds were authorized.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

SUBCHAPTER E. BONDS

Sec. 1006.201. GENERAL OBLIGATION BONDS. (a) The board may

issue and sell general obligation bonds in the name and on the

faith and credit of the district to purchase, construct, acquire,

repair, or renovate buildings or improvements and to equip

buildings and improvements for a hospital and the hospital

system.

(b) The board shall issue the bonds in compliance with the

applicable provisions of Subtitles A and C, Title 9, Government

Code.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.202. TAXES TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued under Section

1007.201, the board shall impose an ad valorem tax at a rate

sufficient to:

(1) create an interest and sinking fund; and

(2) pay the principal of and interest on the bonds as the bonds

mature.

(a) At the time general obligation bonds are issued under

Section 1006.201, the board shall impose an ad valorem tax at a

rate sufficient to:

(1) create an interest and sinking fund; and

(2) pay the principal of and interest on the bonds as the bonds

mature.

(b) The tax required by this section together with any other tax

the district imposes in any year may not exceed 75 cents on each

$100 assessed value of all taxable property in the district.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 13.002, eff. September 1, 2007.

Sec. 1006.203. GENERAL OBLIGATION BOND ELECTION. (a) The board

may issue general obligation bonds only if the bonds are

authorized by a majority of the voters voting in an election held

for that purpose.

(b) The board shall call the election. The election must be

held in accordance with Chapter 1251, Government Code.

(c) The bond election order must specify:

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding election officers;

(4) the amount of the bonds to be authorized;

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

(6) the maximum maturity of the bonds.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.204. EXECUTION OF GENERAL OBLIGATION BONDS. (a) The

board president shall execute the general obligation bonds in the

district's name.

(b) The board secretary shall attest the bonds as provided by

Chapter 618, Government Code.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.205. REFUNDING BONDS. (a) The board may issue

refunding bonds to refund outstanding general obligation bonds or

other refundable indebtedness issued by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bond applied to the

payment of the bonds or other refundable indebtedness to be

refunded; or

(2) exchanged in whole or in part for not less than a like

principal amount of the bonds or other refundable indebtedness to

be refunded.

(c) If a refunding bond is sold, the bond must be issued and the

payments must be made in the manner provided by Subchapters B and

C, Chapter 1207, Government Code.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.206. BONDS EXEMPT FROM TAXATION. The following are

exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) the transfer and issuance of the bonds; and

(3) the profit made in the sale of the bonds.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

SUBCHAPTER F. TAXES

Sec. 1006.251. IMPOSITION OF AD VALOREM TAX. (a) The board

shall impose a tax on all property subject to district taxation

in the manner provided by law for county taxes.

(b) The board shall impose the tax to:

(1) pay the interest on and create a sinking fund for bonds

issued by the district for hospital purposes;

(2) provide for the operation and maintenance of the district

and hospital system;

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

(4) acquire necessary sites for the hospital system by purchase,

lease, or condemnation.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.252. TAX RATE. The tax rate may not exceed 75 cents

on each $100 assessed value of all taxable property.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.

Sec. 1006.253. TAX ASSESSOR-COLLECTOR. (a) The tax

assessor-collector of Floyd County shall collect taxes imposed by

the district and promptly transfer the money collected to the

district depository.

(b) The assessor-collector shall receive the compensation

provided for by contract with the district, except the

compensation may not exceed the amount allowed for assessment and

collection of county taxes. The compensation shall be deposited

in the county's general fund and reported as fees of office of

the assessor-collector.

Added by Acts 2005, 79th Leg., Ch.

729, Sec. 1.01, eff. April 1, 2007.