CHAPTER 1023. EASTLAND MEMORIAL HOSPITAL DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 3. HEALTH
SUBTITLE A. HOSPITAL DISTRICTS
CHAPTER 1023. EASTLAND MEMORIAL HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1023.001. 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 Eastland Memorial Hospital District.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.002. AUTHORITY FOR OPERATION. The district operates
and is financed as provided by Section 9, Article IX, Texas
Constitution, and by this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.003. ESSENTIAL PUBLIC FUNCTION. The district is a
public entity performing an essential public function.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.004. DISTRICT TERRITORY. The district is composed of
the territory described by Section 1.03, Chapter 221, Acts of the
71st Legislature, Regular Session, 1989.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE
OBLIGATION. The state may not be obligated for the support or
maintenance of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.006. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The
legislature may not make a direct appropriation for the
construction, maintenance, or improvement of a district facility.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 1023.051. BOARD ELECTION; TERMS. (a) The district is
governed by a board of nine directors elected from the district
at large.
(b) Unless four-year terms are established under Section
285.081, Health and Safety Code:
(1) directors serve staggered two-year terms; and
(2) an election shall be held on the uniform election date in
May of each year to elect the appropriate number of directors.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.052. NOTICE OF ELECTION. Not earlier than 30 days or
later than 10 days before the date of an election of directors,
notice of the election shall be published one time in a newspaper
with general circulation in the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.053. QUALIFICATIONS FOR OFFICE. To be eligible to be
a candidate for or to serve as a director, a person must be:
(1) a district resident; and
(2) a qualified voter.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.054. BOARD VACANCY. (a) A vacancy in the office of
director shall be filled for the unexpired term at the next
regular election.
(b) If at least five director positions become vacant, the
remaining directors may call a special election to fill the
vacancies for the unexpired terms.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.055. OFFICERS. (a) The board shall elect a president
and a vice president from among its members.
(b) The board shall appoint a secretary.
(c) Each officer of the board serves for a term of one year.
(d) The board shall fill a vacancy in a board office for the
unexpired term.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.056. COMPENSATION; EXPENSES. A director or officer
serves without compensation but may be reimbursed for actual
expenses incurred in the performance of official duties. The
expenses must be:
(1) reported in the district's records; and
(2) approved by the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.057. VOTING REQUIREMENT. A concurrence of a majority
of the directors voting is necessary in any matter relating to
district business.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.058. DISTRICT ADMINISTRATOR. (a) The board may
appoint a qualified person as district administrator.
(b) The district administrator serves at the will of the board
and is entitled to compensation determined by the board.
(c) Before assuming the duties of district administrator, the
board may require the administrator to execute a bond in an
amount determined by the board of not less than $5,000 that is:
(1) payable to the district; and
(2) conditioned on the faithful performance of the
administrator's duties under this chapter.
(d) The board may pay for the bond with district money.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.059. GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
Subject to the limitations prescribed by the board, the district
administrator shall:
(1) supervise the work and activities of the district; and
(2) direct the general affairs of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.060. ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY. (a)
The board may appoint qualified persons as:
(1) the assistant district administrator; and
(2) the attorney for the district.
(b) The assistant district administrator and attorney for the
district serve at the will of the board and are entitled to the
compensation determined by the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.061. EMPLOYEES; APPOINTMENT AND RECRUITMENT OF STAFF.
(a) The district may employ technicians, nurses, fiscal agents,
accountants, architects, additional attorneys, and other
necessary employees.
(b) The board may appoint to the staff any doctors the board
considers necessary for the efficient operation of the district
and may make temporary appointments as necessary.
(c) The board may delegate to the district administrator the
authority to employ persons for the district.
(d) The board may recruit physicians and other health care
professionals or persons.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.062. PERSONNEL CONTRACTS. (a) The board may contract
to provide administrative or other personnel for the operation of
the hospital facilities.
(b) The term of the contract may not exceed 25 years.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.063. RETIREMENT BENEFITS. The board may provide
retirement benefits for district employees by:
(1) establishing or administering a retirement program; or
(2) participating in:
(A) the Texas County and District Retirement System; or
(B) another statewide retirement system in which the district is
eligible to participate.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 1023.101. DISTRICT RESPONSIBILITY. The district has full
responsibility for:
(1) operating hospital facilities; and
(2) providing medical and hospital care for the district's needy
inhabitants.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.102. RESTRICTION ON COUNTY TAXATION AND DEBT.
Eastland County may not impose a tax or issue bonds or other
obligations to provide hospital or medical care for district
residents.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The
board shall manage, control, and administer the hospital system
and the district's money and resources.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.104. RULES. The board may adopt rules governing:
(1) the operation of the hospital and hospital system; and
(2) the duties, functions, and responsibilities of district
staff and employees.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.105. PURCHASING AND ACCOUNTING PROCEDURES. The board
may prescribe:
(1) the method of making purchases and expenditures by and for
the district; and
(2) accounting and control procedures for the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.106. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.
(a) The board shall determine:
(1) the type, number, and location of buildings required to
maintain an adequate hospital system; and
(2) the type of equipment necessary for hospital care.
(b) The board may:
(1) acquire property, including facilities and equipment, for
the district for use in the hospital system; and
(2) mortgage or pledge the property as security for payment of
the purchase price.
(c) The board may lease hospital facilities for the district to
individuals, corporations, or other legal entities.
(d) The board may sell or otherwise dispose of property,
including facilities or equipment, for the district. The board
shall give notice of intent to sell land or buildings by
publishing a notice of intent in a newspaper with general
circulation in Eastland County not later than the 30th day before
the date of sale.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.107. EMINENT DOMAIN. (a) The district may exercise
the power of eminent domain to acquire a fee simple or other
interest in property located in district territory if the
interest is necessary for the district to exercise a right or
authority conferred by this chapter.
(b) The district must exercise the power of eminent domain in
the manner provided by Chapter 21, Property Code, except that the
district is not required to deposit in the trial court money or a
bond as provided by Section 21.021(a), Property Code.
(c) In a condemnation proceeding brought by the district, the
district is not required to:
(1) pay in advance or provide a bond or other security for costs
in the trial court;
(2) provide a bond for the issuance of a temporary restraining
order or a temporary injunction; or
(3) provide a bond for costs or a supersedeas bond on an appeal
or writ of error.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.108. COST OF RELOCATING OR ALTERING PROPERTY. In
exercising the power of eminent domain, if the board requires
relocating, raising, lowering, rerouting, changing the grade of,
or altering the construction of any railroad, highway, pipeline,
or electric transmission and electric distribution, telegraph, or
telephone line, conduit, pole, or facility, the district shall
pay the actual cost of relocating, raising, lowering, rerouting,
changing the grade of, or altering the construction to provide
comparable replacement, without enhancement of facilities, after
deducting the net salvage value derived from the old facility.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.109. GIFTS AND ENDOWMENTS. The board may accept for
the district a gift or endowment to be held in trust for any
purpose and under any direction, limitation, or other provision
prescribed in writing by the donor that is consistent with the
proper management of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.110. CONSTRUCTION CONTRACTS. (a) The board may enter
into construction contracts for the district.
(b) The board may enter into a construction contract that
involves the expenditure of more than the amount provided by
Section 271.024, Local Government Code, only after competitive
bidding as provided by Subchapter B, Chapter 271, Local
Government Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.111. OPERATING AND MANAGEMENT CONTRACTS. The board
may enter into an operating or management contract relating to a
hospital facility for the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
SERVICES. The board may contract with a political subdivision of
the state or 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 district
inhabitants.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.113. PROVISION OF CERTAIN HEALTH SERVICES. The
district may:
(1) operate or provide for the operation of a mobile emergency
medical service; and
(2) establish and operate a home health service.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.114. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a
patient who resides in the district is admitted to a district
facility, the district administrator may have an inquiry made
into the financial circumstances of:
(1) the patient; and
(2) a relative of the patient who is legally responsible for the
patient's support.
(b) The district without charge shall provide to a patient who
resides in the district the care and treatment that the patient
or a relative of the patient who is legally responsible for the
patient's support cannot pay.
(c) On determining that the patient or a relative legally
responsible for the patient's support can pay for all or part of
the care and treatment provided by the district, the district
administrator shall report that determination to the board, and
the board shall issue an order directing the patient or the
relative to pay the district a specified amount each week. The
amount must be based on the individual's ability to pay.
(d) The district administrator may collect money owed to the
district from the patient's estate or from that of a relative who
was legally responsible for the patient's support in the manner
provided by law for the collection of expenses in the last
illness of a deceased person.
(e) If there is a dispute relating to an individual's ability to
pay or if the district administrator has any doubt concerning an
individual's ability to pay, the board shall:
(1) call witnesses;
(2) hear and resolve the question; and
(3) issue a final order.
(f) A final order of the board may be appealed to a district
court in Eastland County. The substantial evidence rule applies
to the appeal.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.115. REIMBURSEMENT FOR SERVICES. (a) The board shall
require a county, municipality, or public hospital located
outside the district to reimburse the district for the district's
care and treatment of a sick or injured person of that county,
municipality, or hospital, as provided by Chapter 61, Health and
Safety Code.
(b) The board shall require the sheriff of Eastland County or
the police chief of the City of Eastland to reimburse the
district for the district's care and treatment of a person who is
confined in a jail facility of Eastland County or the City of
Eastland and is not a district resident.
(c) On behalf of the district, the board may contract with the
state or federal government for that government to reimburse the
district for treatment of a sick or injured person.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.116. AUTHORITY TO SUE AND BE SUED. The board may sue
and be sued on behalf of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 1023.151. BUDGET. (a) The district administrator shall
prepare a proposed annual budget for the district.
(b) The proposed budget must contain a complete financial
statement, including a statement of:
(1) the outstanding obligations of the district;
(2) the amount of cash on hand in each district fund;
(3) the amount of money received by the district from all
sources during the previous year;
(4) the amount of money available to the district from all
sources during the ensuing year;
(5) the amount of the balances expected at the end of the year
in which the budget is being prepared;
(6) the estimated amount of revenue and balances available to
cover the proposed budget; and
(7) the estimated tax rate required.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The
board shall hold a public hearing on the proposed annual budget.
(b) The board shall publish notice of the hearing in a newspaper
with general circulation in the district not later than the 10th
day before the date of the hearing.
(c) Any district resident is entitled to be present and
participate at the hearing.
(d) At the conclusion of the hearing, the board shall adopt a
budget by acting on the budget proposed by the district
administrator. The board may make any changes in the proposed
budget that the board judges to be in the interests of the
taxpayers.
(e) The budget is effective only after adoption by the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.153. AMENDMENTS TO BUDGET. After adoption, the annual
budget may be amended on the board's approval.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.154. RESTRICTION ON EXPENDITURES. Money may be spent
only for an expense included in the budget or an amendment to the
budget.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.155. FISCAL YEAR. (a) The district operates on the
fiscal year established by the board.
(b) The fiscal year may not be changed:
(1) when revenue bonds of the district are outstanding; or
(2) more than once in a 24-month period.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.156. ANNUAL AUDIT. The board annually shall have an
audit made of the district's financial condition.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT RECORDS.
The annual audit and other district records are open to
inspection during regular business hours at the district's
principal office.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.158. FINANCIAL REPORT. As soon as practicable after
the close of the fiscal year, the district administrator shall
prepare for the board:
(1) a sworn statement of the amount of district money; and
(2) an account of the disbursements of that money.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.159. DEPOSITORY. (a) The board shall select at least
one bank to serve as a depository for district money.
(b) District money, other than money invested as provided by
Section 1023.160(b) and money transmitted to a bank for payment
of bonds or obligations issued or assumed by the district, shall
be deposited as received with the depository bank and shall
remain on deposit. This subsection does not limit the power of
the board to place a portion of district money on time deposit or
to purchase certificates of deposit.
(c) The district may not deposit money with a bank in an amount
that exceeds the maximum amount secured by the Federal Deposit
Insurance Corporation unless the bank first executes a bond or
other security in an amount sufficient to secure from loss the
district money that exceeds the amount secured by the Federal
Deposit Insurance Corporation.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.160. SPENDING AND INVESTMENT RESTRICTIONS. (a)
Except as provided by Sections 1023.110, 1023.161, 1023.162,
1023.201, 1023.204, and 1023.205, the district may not incur a
debt payable from district revenue other than revenue on hand or
to be on hand in the current and immediately following district
fiscal years.
(b) The board may invest operating, depreciation, or building
reserves only in funds or securities specified by Chapter 2256,
Government Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.161. GENERAL AUTHORITY TO BORROW MONEY; SECURITY. (a)
The board may borrow money at a rate of interest not to exceed
the maximum annual percentage rate allowed by law for district
obligations at the time the loan is made.
(b) To secure a loan, the board may pledge:
(1) district revenue that is not pledged to pay the district's
bonded indebtedness;
(2) tax revenue to be collected by the district in the next
12-month period that is 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 tax revenue or bonds are pledged must
mature not later than the first anniversary of the date the loan
is made. A loan for which other district revenue is pledged must
mature not later than the fifth anniversary of the date the loan
is made.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.162. AUTHORITY TO BORROW 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 determines
that:
(1) money is not available to meet lawful obligations of the
district; and
(2) an emergency exists.
(b) To secure a loan, the board may pledge:
(1) district revenue that is not pledged to pay the district's
bonded indebtedness;
(2) tax revenue to be collected by the district in the next
12-month period that is 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 tax revenue or bonds are pledged must
mature not later than the first anniversary of the date the loan
is made. A loan for which other district revenue is 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 tax revenue 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 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
SUBCHAPTER E. BONDS
Sec. 1023.201. GENERAL OBLIGATION BONDS. The board may issue
and sell general obligation bonds authorized by an election in
the name and on the faith and credit of the district to:
(1) purchase, construct, acquire, repair, or renovate buildings
or improvements; or
(2) equip buildings or improvements for hospital purposes.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the
time general obligation bonds are issued by the district under
Section 1023.201, the board shall impose an ad valorem tax at a
rate sufficient to create an interest and sinking fund to pay the
principal of and interest on the bonds as the bonds mature.
(b) The tax required by this section together with any other ad
valorem tax the district imposes may not in any year exceed the
limit approved by the voters at the election authorizing the
imposition of the tax.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.203. GENERAL OBLIGATION BOND ELECTION. (a) The
district may issue general obligation bonds only if the bonds are
authorized by a majority of the district voters voting at an
election held for that purpose.
(b) The board may order a bond election.
(c) The order calling the election must specify:
(1) the nature and date of the election;
(2) the hours during which the polls will be open;
(3) the location of the polling places;
(4) the amounts of the bonds to be authorized; and
(5) the maximum maturity of the bonds.
(d) Notice of a bond election must be given as provided by
Section 1251.003, Government Code.
(e) The board shall declare the results of the election.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.204. REVENUE BONDS. (a) The board may issue revenue
bonds to:
(1) purchase, construct, acquire, repair, equip, or renovate
buildings or improvements for hospital purposes; or
(2) acquire sites to be used for hospital purposes.
(b) The bonds must be payable from and secured by a pledge of
all or part of the revenue derived from the operation of the
district's hospital system.
(c) The bonds may be additionally secured by a mortgage or deed
of trust lien on all or part of district property.
(d) The bonds must be issued in the manner provided by Sections
264.042, 264.043, and 264.046-264.049, Health and Safety Code,
for issuance of revenue bonds by a county hospital authority.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.205. REFUNDING BONDS. (a) The board may issue
refunding bonds to refund outstanding indebtedness issued or
assumed by the district.
(b) A refunding bond may be:
(1) sold, with the proceeds of the refunding bond applied to the
payment of the outstanding indebtedness; or
(2) exchanged wholly or partly for not less than a similar
principal amount of outstanding indebtedness.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.206. MATURITY OF BONDS. District bonds must mature
not later than 50 years after the date of issuance.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.207. EXECUTION OF BONDS. (a) The board president
shall execute the district's bonds in the district's name.
(b) The board secretary shall countersign the bonds in the
manner provided by Chapter 618, Government Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.208. BONDS EXEMPT FROM TAXATION. The following are
exempt from taxation by this state or by a political subdivision
of this state:
(1) bonds issued by the district;
(2) any transaction relating to the bonds; and
(3) profits made in the sale of the bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
SUBCHAPTER F. TAXES
Sec. 1023.251. IMPOSITION OF AD VALOREM TAX. (a) The board may
impose a tax on all property in the district subject to district
taxation.
(b) The tax may be used to pay:
(1) indebtedness issued or assumed by the district; and
(2) the maintenance and operating expenses of the district.
(c) The district may not impose a tax to pay the principal of or
interest on revenue bonds issued under this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.252. TAX RATE. (a) The board may impose the tax at a
rate not to exceed the limit approved by the voters at the
election authorizing the imposition of a tax.
(b) The tax rate for all purposes may not exceed 37.5 cents on
each $100 valuation of all taxable property in the district.
(c) In setting the tax rate, the board shall consider the income
of the district from sources other than taxation.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.253. TAX ASSESSOR-COLLECTOR. The board may provide
for the appointment of a tax assessor-collector for the district
or may contract for the assessment and collection of taxes as
provided by the Tax Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
SUBCHAPTER G. DISSOLUTION
Sec. 1023.301. DISSOLUTION; ELECTION. (a) The district may be
dissolved and the district's assets and liabilities sold or
transferred to another person only on approval of a majority of
the district voters voting at an election held for that purpose.
(b) A majority of the directors may order an election to
dissolve the district and transfer its assets and liabilities.
(c) The board shall order an election if the board receives a
petition requesting an election that is signed by at least 15
percent of the registered voters in the district, according to
the most recent official list of registered voters.
(c-1) The election shall be called not later than the 60th day
after the date the petition is presented to the district.
(d) The order calling the election must state:
(1) the nature of the election, including the proposition to
appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open; and
(4) the location of the polling places.
(e) Section 41.001(a), Election Code, does not apply to an
election ordered under this section.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.003, eff. September 1, 2009.
Sec. 1023.302. NOTICE OF ELECTION. (a) The board shall give
notice of an election under this subchapter by publishing once a
week for two consecutive weeks a substantial copy of the election
order in a newspaper with general circulation in the district.
(b) The first publication must appear at least 35 days before
the date set for the election.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.303. BALLOT. The ballot for an election under this
subchapter must be printed to permit voting for or against the
proposition: "The dissolution of the Eastland Memorial Hospital
District and the transfer of its assets and liabilities in the
following manner: __________ (insert provisions for transfer)."
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.304. ELECTION RESULTS. (a) If the board finds the
election results favor the proposition to dissolve the district,
the board shall:
(1) issue an order declaring the district dissolved; and
(2) proceed with the sale or transfer of the district's assets
and liabilities according to the plan proposed on the ballot.
(b) If the board finds the election results do not favor the
proposition to dissolve the district, another dissolution
election may not be held before the first anniversary of the date
of the election in which voters disapproved the proposition.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.305. TRANSFER OR ADMINISTRATION OF ASSETS. (a) If a
majority of the votes in an election under this subchapter favor
dissolution, the board shall:
(1) transfer the district's assets to Eastland County or another
governmental entity in Eastland County; or
(2) administer the district's assets and debts until all assets
have been disposed of and all district debts have been paid or
settled.
(b) If the board makes the transfer under Subsection (a)(1),
Eastland County or the governmental entity assumes all debts and
obligations of the district at the time of the transfer, and the
district is dissolved.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.306. SALE OR TRANSFER OF ASSETS AND LIABILITIES. (a)
The district may not be dissolved unless the board provides for
the sale or transfer of the district's assets and liabilities to
another person.
(b) The dissolution of the district and the sale or transfer of
the district's assets and liabilities may not:
(1) contravene a trust indenture or bond resolution relating to
the outstanding bonds of the district; or
(2) diminish or impair the rights of the holders of any
outstanding bonds, warrants, or other obligations of the
district.
(c) The sale or transfer of the district's assets and
liabilities must satisfy the debt and bond obligations of the
district in a manner that protects the interests of citizens in
the district, including the citizens' collective property rights
in the district's assets.
(d) The district may not transfer or dispose of the district's
assets except for due compensation unless:
(1) the transfer is made to another governmental agency
embracing the district; and
(2) the transferred assets are used for the benefit of the
citizens formerly in the district.
(e) A grant from federal funds is an obligation to be repaid in
satisfaction.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.307. IMPOSITION OF TAX AND RETURN OF SURPLUS TAXES.
(a) If a majority of the votes in an election to dissolve the
district favor dissolution, the board shall:
(1) determine the debt owed by the district; and
(2) impose a tax on the taxable property in the district at a
rate that will raise sufficient revenue to pay the debt owed by
the district.
(b) On the payment of all outstanding debts and obligations of
the district, the board shall order the secretary to return to
each district taxpayer the taxpayer's pro rata share of all
unused tax money.
(c) A taxpayer may request that the taxpayer's share of surplus
tax money be credited to the taxpayer's county taxes. If a
taxpayer requests the credit, the board shall direct the
secretary to transmit the funds to the county tax
assessor-collector.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1023.308. REPORT; DISSOLUTION ORDER. (a) After the
district has paid all district debts and has disposed of all
district assets as prescribed by this subchapter, the board shall
file a written report with the Commissioners Court of Eastland
County summarizing the board's actions in dissolving the
district.
(b) Not later than the 10th day after the date the Commissioners
Court of Eastland County receives the report and determines that
the requirements of this subchapter have been fulfilled, the
commissioners court shall enter an order dissolving the district
and releasing the board from any further duty or obligation.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.