CHAPTER 1027. FISHER COUNTY HOSPITAL DISTRICT

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 3. HEALTH

SUBTITLE A. HOSPITAL DISTRICTS

CHAPTER 1027. FISHER COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1027.001. 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 Fisher County Hospital District.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.002. AUTHORITY FOR OPERATION. The district operates

in accordance with Section 9, Article IX, Texas Constitution, and

has the rights, powers, and duties provided by this chapter.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.003. ESSENTIAL PUBLIC FUNCTION. The district performs

an essential public function in carrying out the purposes of this

chapter.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.004. DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Fisher County,

Texas.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.005. CORRECTION OF INVALID PROCEDURES. If a court

holds that any procedure under this chapter violates the

constitution of this state or of the United States, the district

by resolution may provide an alternative procedure that conforms

to the constitution.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.006. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The support or maintenance of the district may not

become a charge against or obligation of this state.

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

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1027.051. BOARD ELECTION; TERM. (a) The board consists of

five directors elected from the district at large unless the

board changes the method for electing directors under Section

1027.052.

(b) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) three directors are elected in one year and two directors

are elected the following year.

(c) An election shall be held on the uniform election date in

May of each year to elect the appropriate number of directors.

(d) The board shall announce the election results.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.052. CHANGE IN ELECTION FORMAT. (a) On its own

initiative or on receipt of a petition signed by a number of

district residents equal to at least 10 percent of the district's

registered voters, the board by order shall seek input from

district residents to determine whether to change the method of

electing directors under this chapter to one of the following

methods:

(1) four single-member districts and one at-large member;

(2) five single-member districts;

(3) four single-member districts, with each district coextensive

with a county commissioner's precinct, and one at-large member;

or

(4) cumulative voting.

(b) Not later than the 30th day after the date the board enters

the order, the board shall establish an advisory committee

composed of district residents to advise and assist the board in

making the determination required by Subsection (a). Committee

members must represent all segments of the district's population.

(c) Not later than the 60th day after the date the advisory

committee is established, the committee shall hold a public

hearing regarding the proposed change in the election format.

Not later than the 30th day after the date the public hearing is

held, the committee shall submit a recommendation to the board

that includes comments and concerns raised by district residents

regarding any proposed change in the election format.

(d) After reviewing the advisory committee recommendation, the

board may adopt an order changing the method by which directors

are elected.

(e) A change in the election format adopted by the board under

this section shall be implemented at the next general directors'

election for which the change can be implemented consistently

with the Election Code and federal law.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.053. NOTICE OF ELECTION. (a) At least 35 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 the district.

(b) The election notice shall state:

(1) the purpose of the election;

(2) the date of the election; and

(3) the location of the polling places.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.054. QUALIFICATIONS FOR OFFICE. (a) A person may not

serve as a director unless the person is:

(1) a district resident; and

(2) a qualified voter.

(b) A person is not eligible to serve as a director if the

person is:

(1) the district administrator; or

(2) a district employee.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.055. BOARD VACANCY. If a vacancy occurs in the office

of director, the remaining directors shall appoint a director for

the unexpired term.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.056. OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

(c) 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. 1027.057. COMPENSATION; EXPENSES. A director or officer

serves without compensation but may be reimbursed for actual

expenses incurred in the performance of official duties. The

expenses must be:

(1) reported in the district's records; and

(2) approved by the board.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.058. VOTING REQUIREMENT. A concurrence of three

directors is sufficient 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. 1027.059. DISTRICT ADMINISTRATOR. (a) The board shall

appoint a qualified person as district administrator.

(b) The district administrator serves at the will of the board

and is entitled to the compensation determined by the board.

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

administrator shall execute a bond payable to the district in an

amount set by the board that:

(1) is conditioned on the administrator performing the

administrator's duties; and

(2) contains other conditions the board may require.

(d) The cost of the bond is the responsibility of the district.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.060. GENERAL DUTIES OF DISTRICT ADMINISTRATOR.

Subject to the limitations prescribed by the board, the district

administrator shall:

(1) supervise the work and activities of the district; and

(2) direct the affairs of the district.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.061. APPOINTMENT AND RECRUITMENT OF STAFF AND

EMPLOYEES. (a) 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.

(b) The board shall determine the type, number, and location of

district employees required to maintain an adequate hospital

system. The board may employ fiscal agents, accountants,

architects, attorneys, and other employees the board considers

proper.

(c) The board may delegate to the district administrator the

authority to:

(1) hire district employees, including medical practitioners,

technicians, and nurses; and

(2) incur reasonable and necessary expenses relating to the

search, recruitment, and hiring of medical practitioners and

district employees, including contracting with a private entity

such as a professional recruiting service.

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

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1027.101. DISTRICT RESPONSIBILITY AND AUTHORITY. The

district has full responsibility for:

(1) operating hospital facilities and furnishing medical and

hospital care for the district's needy residents; and

(2) providing hospital care for the district's indigent

residents.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND

DEBT. A political subdivision located within the district may

not impose a tax or issue bonds or other obligations for hospital

purposes or to provide medical care.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. (a)

The board shall manage, control, and administer the hospital

system and the district's money and resources.

(b) Unless specifically stated otherwise in this chapter, the

board has the power to do anything which, in their opinion, is

necessary for the good maintenance, operation, and welfare of the

district and the district's employees, patients, and property.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.104. HOSPITAL SYSTEM. (a) The district shall provide

for the establishment of a hospital system by:

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

renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the buildings and equipment for hospital

purposes.

(b) The hospital system may include:

(1) facilities for domiciliary care of the sick, injured, or

geriatric;

(2) facilities for outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses' domiciliaries and training centers;

(6) blood banks;

(7) research centers and laboratories; and

(8) ambulance and other facilities or services the board

considers necessary for hospital care.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.105. RULES. The board may adopt rules governing the

operation of the hospital, the hospital system, and the

district's staff and employees.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.106. 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 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.107. PROVISION OF CERTAIN HEALTH SERVICES. In the

geographic service area designated by the board, the district may

operate or provide for:

(1) the operation of a mobile emergency medical service; and

(2) home health services, long-term care services, skilled

nursing care services, intermediate nursing care services,

assisted living services, hospice care, or other health-related

services.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.108. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.

(a) The board shall determine the type of equipment and the

type, number, and location of buildings required to maintain an

adequate hospital system.

(b) The board may lease all or part of the district's buildings

and other facilities on terms considered to be in the best

interest of the district's inhabitants. The term of the lease

may not exceed 25 years.

(c) The district may acquire equipment for use in the district's

hospital system and mortgage or pledge the property as security

for the payment of the purchase price. A contract entered into

under this subsection must provide that the entire obligation be

retired not later than the fifth anniversary of the date of the

contract.

(d) The district may sell or otherwise dispose of any property,

including equipment, on terms the board finds are in the best

interest of the district's inhabitants. The board may not sell

or dispose of any real property unless the board affirmatively

finds that the real property is not needed for the operation of

the hospital system.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.109. 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 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, except the

district is not required to deposit in the trial court money or a

bond as provided by Section 21.021(a), Property Code.

(c) In a condemnation proceeding brought by the district, the

district is not required to:

(1) pay in advance or provide a bond or other security for costs

in the trial court;

(2) provide a bond for the issuance of a temporary restraining

order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on an appeal

or writ of error.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.110. 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 objective of the district.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.111. CONSTRUCTION CONTRACTS. A construction contract

that involves the expenditure of more than $10,000 may be made

only after advertising in the manner provided by Chapter 252,

Local Government Code.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.112. OPERATING AND MANAGEMENT CONTRACTS. The board

may enter into an operating or management contract relating to a

district facility.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.113. CONTRACTS FOR CARE AND TREATMENT. (a) The board

may contract with a political subdivision of this state or a

public or private hospital, private corporation, partnership, or

cooperative, located inside or outside the district, for the care

and treatment of a sick or injured person of the political

subdivision.

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

for the 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. 1027.114. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

INVESTIGATORY OR OTHER SERVICES. The board may contract with a

political subdivision or governmental agency for the district to

provide investigatory or other services as to the medical,

hospital, or welfare needs of district inhabitants.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.115. 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 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 care

and treatment in the hospital, 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 care and support. The amount ordered must be

proportionate to the person's financial ability.

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

patient's estate, or from any 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 any appropriate orders.

(f) The final order of the board may be appealed to the district

court. 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. 1027.116. AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.117. AUTHORITY TO PROVIDE HEALTH CARE SERVICES. (a)

In this section, "health care services" includes:

(1) home health care services;

(2) respiratory or physical therapy services;

(3) mobile emergency medical services; and

(4) clinic services.

(b) This chapter does not limit the district in providing health

care services to any ill or injured person, regardless of whether

the person is a district resident.

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

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1027.151. BUDGET. (a) The district administrator shall

prepare an annual budget for approval by the board.

(b) The proposed budget must contain a complete financial

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. 1027.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The

board shall hold a public hearing on the proposed annual budget.

(b) At least 10 days before the date of the hearing, notice of

the hearing shall be published one time in a newspaper or

newspapers that individually or collectively have general

circulation in the district.

(c) Any property tax payer of the district is entitled to be

present and participate at the hearing in accordance with the

rules of decorum and procedures prescribed by the board.

(d) At the conclusion of the hearing, the board shall adopt a

final 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 and that the law warrants.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.153. AMENDMENTS TO BUDGET. The budget may be amended

as required by circumstances. The board must approve all

amendments.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.154. FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed 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. 1027.155. AUDIT. (a) The board shall have an independent

audit made of the district's financial condition for the fiscal

year.

(b) As soon as it is completed, the audit shall be filed at the

district's office.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.156. INSPECTION OF AUDIT AND DISTRICT RECORDS. The

audit and other district records shall be open to inspection at

the district's principal office.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.157. 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 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.158. DEPOSITORY. (a) The board shall select one or

more banks inside or outside the district to serve as a

depository for district money.

(b) District money, other than money invested as provided by

Section 1027.159(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.

(c) This chapter, including Subsection (b), does not limit the

power of the board to place a part of district money on time

deposit or to purchase certificates of deposit.

(d) 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. 1027.159. SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Section 1027.108(c) and by

Subchapter E, the district may not incur an obligation payable

from district revenue other than the revenue on hand or to be on

hand in the current and following district fiscal years.

(b) The board may invest operating, depreciation, or building

fund 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. 1027.160. 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 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 revenue that is not pledged to pay the district's

bonded indebtedness;

(2) district taxes to be imposed by the district during the

12-month period following the date of the pledge 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.

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

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER E. BONDS

Sec. 1027.201. GENERAL OBLIGATION BONDS. The board may issue

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

and credit of the district for any purpose designed to provide,

improve, or expand the district's health care services,

including:

(1) the purchase, construction, acquisition, repair, or

renovation of buildings or improvements;

(2) equipping buildings or improvements for hospital purposes;

and

(3) the acquisition and operation of a mobile emergency medical

service.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the

time general obligation bonds are issued by the district under

Section 1027.201, 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 tax

the district imposes may not in any year exceed the tax rate

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. 1027.203. 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 order calling the election shall provide for clerks as

in county elections and must specify:

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding and alternate election judges for each polling

place;

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

(5) the maximum maturity of the bonds; and

(6) the maximum interest rate of the bonds.

(c) Notice of a bond election shall be given as provided by

Section 1251.003, Government Code.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.204. REVENUE BONDS. (a) The board may issue revenue

bonds to:

(1) purchase, construct, acquire, repair, renovate, or equip

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 hospitals.

(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 and in accordance

with the procedures and requirements prescribed 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. 1027.205. 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 bonds applied to

the payment of 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. 1027.206. MATURITY OF BONDS. District bonds must mature

not later than 40 years after the date of issuance.

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.207. EXECUTION OF BONDS. (a) The board president

shall execute district 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. 1027.208. BONDS EXEMPT FROM TAXATION. The following are

exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) the transfer and issuance of 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. 1027.251. IMPOSITION OF AD VALOREM TAX. (a) The board

annually shall impose a tax on all property in the district

subject to district taxation.

(b) The board shall impose the tax to:

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

other obligations issued or assumed by the district for hospital

purposes;

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

and hospital system, based on the final budget;

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.252. TAX RATE. (a) The board may impose the tax at a

rate not to exceed 75 cents on each $100 valuation of taxable

property in the district.

(b) 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. 1027.253. 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. 1027.301. DISSOLUTION; ELECTION. (a) The district may be

dissolved and its assets and obligations sold or transferred to

another person only on approval of a majority of the district

voters voting in an election held for that purpose.

(b) The board may order an election on the question of

dissolving the district and disposing of the district's assets

and obligations.

(c) The board shall order an election if the board receives a

petition requesting an election that is signed by at least 300

registered district voters 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. 21.014, eff. September 1, 2009.

Sec. 1027.302. 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 of the notice 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. 1027.303. BALLOT. The ballot for an election under this

subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the Fisher County Hospital

District and the _________ (transfer or sale, as appropriate) of

its assets and liabilities in the following manner: _________."

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

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1027.304. 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, the board shall continue to

administer the district and 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. 1027.305. SALE OR TRANSFER OF ASSETS AND LIABILITIES. (a)

The district may not be dissolved unless the board provides for

the sale or transfer of the district's assets and liabilities to

another person.

(b) The dissolution of the district and the sale or transfer of

the district's assets or liabilities may not:

(1) contravene a trust indenture or bond resolution relating to

the district's outstanding bonds; or

(2) diminish or impair the rights of a holder of an outstanding

bond, warrant, or other obligation of the district.

(c) The sale or transfer of the district's assets and

liabilities must satisfy the debt and bond obligations of the

district in a manner that protects the interests of district

residents, including the residents' collective property rights in

the district's assets.

(d) The district may transfer or sell the district's assets only

for due compensation, unless the transfer or sale is made to

another governmental agency serving the district and using the

transferred or purchased assets for the benefit of the residents

formerly in the district.

(e) A grant from federal funds is an obligation to be repaid in

full.

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

920, Sec. 1.02, eff. April 1, 2009.