CHAPTER 1043. HOPKINS COUNTY HOSPITAL DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 3. HEALTH
SUBTITLE A. HOSPITAL DISTRICTS
CHAPTER 1043. HOPKINS COUNTY HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1043.001. 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 Hopkins County Hospital District.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.002. AUTHORITY FOR OPERATION. The district operates
under the authority of and has the powers and responsibilities
provided by Section 11, Article IX, Texas Constitution.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.003. ESSENTIAL PUBLIC FUNCTION; POLITICAL SUBDIVISION.
The district is:
(1) a public entity performing an essential public function; and
(2) a political subdivision of this state.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.004. DISTRICT TERRITORY. The boundaries of the
district are coextensive with the boundaries of Hopkins County.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.005. 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
with the constitution.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 1043.051. BOARD ELECTION; TERM. (a) The board consists of
seven elected directors.
(b) Directors serve staggered three-year terms.
(c) 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. 1043.052. NOTICE OF ELECTION. Notice of an election of
directors shall be published in a newspaper of general
circulation in the district in accordance with Section 4.003,
Election Code.
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.
1011, Sec. 1, eff. June 19, 2009.
Sec. 1043.053. QUALIFICATIONS FOR OFFICE. (a) A person may not
be elected or appointed as a director unless the person is:
(1) a district resident;
(2) a qualified voter of the district; and
(3) more than 21 years of age at the time of election or
appointment.
(b) A district employee may not serve as a director.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.054. BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF
OFFICE. (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) Each director's bond and constitutional oath or affirmation
of office shall be deposited with the district's depository bank
for safekeeping.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.055. 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 less than the
number that constitutes a majority 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 order the directors to hold the election.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.056. OFFICERS. The board shall elect a president,
vice president, and secretary.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.057. COMPENSATION; EXPENSES. A director serves
without compensation but may be reimbursed for actual expenses
incurred in the performance of official duties on approval of the
expenses by the entire board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.058. VOTING REQUIREMENT. A concurrence of a majority
of the 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. 1043.059. APPOINTMENT AND RECRUITMENT OF STAFF AND
EMPLOYEES. (a) The board may employ a general manager, attorney,
bookkeeper, and architect.
(b) The board may spend district money to recruit physicians,
nurses, or other trained medical personnel to the hospital staff.
(c) The board may agree to pay all or part of the tuition or
other costs of a medical technician or nursing student who:
(1) is enrolled and in good standing in an accredited hospital,
school, or college; and
(2) contractually agrees to serve as a district employee on
terms prescribed by the board.
(d) Subject to Subsection (e), the board may provide financial
inducements to a full-time medical intern or physician who
contractually agrees to:
(1) reside and practice in Hopkins County; and
(2) provide care and treatment to its needy residents.
(e) Repealed by Acts 2009, 81st Leg., R.S., Ch. 1011, Sec. 6,
eff. June 19, 2009.
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.
1011, Sec. 2, eff. June 19, 2009.
Acts 2009, 81st Leg., R.S., Ch.
1011, Sec. 6, eff. June 19, 2009.
Sec. 1043.060. MAINTENANCE OF RECORDS; PUBLIC INSPECTION.
Except as provided by Section 1043.054, all district records,
including books, accounts, notices, minutes, and all other
matters of the district and the operation of its facilities,
shall be:
(1) maintained at the district office; and
(2) open to public inspection at the district office at all
reasonable hours.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.061. SEAL. The board may adopt a seal for the
district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 1043.101. DISTRICT RESPONSIBILITY. The district has full
responsibility for providing medical and hospital care for the
district's needy and indigent residents.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.102. RESTRICTION ON COUNTY OR MUNICIPALITY TAXATION.
Hopkins County or a municipality in Hopkins County may not impose
a tax for hospital purposes.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.103. MANAGEMENT AND CONTROL. The management and
control of the district is vested in the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.104. HOSPITAL SYSTEM. The district may provide for
the establishment of a hospital or hospital system to provide
medical and hospital care to the district's needy residents.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.105. RULES. (a) The board may adopt rules governing
the operation of the district, including district facilities.
(b) On approval by the board, the rules may be published in
booklet form at district expense and made available to any
taxpayer on request.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.106. PURCHASING AND ACCOUNTING PROCEDURES. (a) The
board may prescribe the method and manner of making purchases and
expenditures by and for the district.
(b) The board shall prescribe:
(1) all accounting and control procedures; and
(2) the method of purchasing necessary supplies, materials, and
equipment.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.
(a) The board shall determine the type, number, and location,
either inside or outside the district, of facilities required to
maintain an adequate hospital system and ancillary health care
system and the type of equipment necessary for hospital care and
ancillary health care services, including:
(1) domiciliary care and treatment of sick or injured patients;
(2) geriatric services;
(3) outpatient clinics;
(4) rural health clinics;
(5) convalescent home facilities;
(6) physician's offices;
(7) home health services;
(8) durable medical equipment;
(9) long-term care;
(10) skilled nursing care;
(11) intermediate nursing care;
(12) hospice care;
(13) ambulatory surgery centers;
(14) urgent care facilities;
(15) operation of a mobile emergency medical service;
(16) extended care facilities;
(17) assisted living facilities; and
(18) any other facility or equipment the board considers
necessary for the delivery of hospital, medical, and ancillary
health care services.
(b) The board may:
(1) acquire by lease, purchase, or lease to purchase property,
including facilities, supplies, and equipment, for the district
for use in the hospital system and ancillary health care system;
and
(2) mortgage or pledge the property as security for the payment
of the purchase price.
(c) The board may lease, sell, or otherwise dispose of all or
part of the district's property for the district, including
facilities, supplies, or equipment, to a public or private
entity, but only to the extent necessary to maintain an adequate
hospital system for the residents of Hopkins County.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.108. PROPERTY, FACILITIES, AND EQUIPMENT FOR HEALTH
CARE PROVIDERS. (a) The board shall determine the type, number,
and location of buildings required to establish and maintain
office facilities for health care providers as necessary to
provide adequate health care services.
(b) The board may:
(1) acquire property, including equipment, and construct
facilities for the district for use by health care providers; and
(2) mortgage or pledge the property or facilities as security
for the payment of the purchase or construction price.
(c) The board for the district may:
(1) lease the office facilities and equipment to health care
providers; and
(2) sell or otherwise dispose of the property, including
facilities and equipment.
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.
1011, Sec. 3, eff. June 19, 2009.
Sec. 1043.109. 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, real, personal, or mixed,
located in district territory, if the interest is necessary or
convenient for the district to exercise a right, power,
privilege, or function conferred on the district 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. 1043.110. 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 any nonprofit purpose 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 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.111. JOINT OWNERSHIP ARRANGEMENT. (a) The board may
enter into a joint ownership arrangement for the district with
one or more public or private entities for:
(1) the provision of management or operating services; and
(2) the ownership of all or part of real property, facilities,
equipment, or supplies.
(b) Before the board enters into the arrangement, the board must
determine that the arrangement is:
(1) in the district's best interest; and
(2) for a public purpose of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.112. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a
patient is admitted to a district facility, the board 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) 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) If it is determined that the patient or those relatives are
liable to 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 to the district's treasurer a specified amount each week for
the patient's support. The amount ordered must be proportionate
to the person's financial ability and may not exceed the actual
per capita cost of maintenance.
(d) The district 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's designated agent, the board shall hold
a hearing and, after calling witnesses, shall:
(1) resolve the dispute or doubt; and
(2) issue an appropriate order.
(f) Either party to the dispute may appeal the order to the
district court.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.113. NONPROFIT CORPORATION. (a) The district may
become a member of a nonprofit corporation or enter into an
agreement with a nonprofit corporation to serve the purposes of
this chapter. Under an agreement with a nonprofit corporation,
the district may require that:
(1) the nonprofit corporation grant the district the power to
appoint one or more members of the corporation's board of
directors;
(2) the nonprofit corporation obtain the district's consent
before changing the corporation's articles of incorporation or
bylaws or before taking other action; and
(3) the district receive all or part of the net assets of the
nonprofit corporation on the corporation's dissolution, merger,
or consolidation.
(b) The district is not liable for any debt, obligation, or
other liability of the nonprofit corporation.
(c) This section does not affect the district's authority to
make payments to or otherwise provide money to the nonprofit
corporation.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.114. AUTHORITY TO SUE AND BE SUED. As a governmental
agency, the district may sue and be sued in its own name in any
court of this state.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 1043.151. BUDGET. The board annually shall require a
budget to be prepared for the next fiscal year that includes:
(1) proposed expenditures and disbursements;
(2) estimated receipts and collections; and
(3) the amount of taxes required to be imposed for the year.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.152. PROPOSED BUDGET: NOTICE AND HEARING. (a) The
board shall hold a public hearing on the proposed budget.
(b) Notice of the hearing must be published at least once in a
newspaper of general circulation in Hopkins County not later than
the 10th day before the date of the hearing.
(c) Any district resident is entitled to:
(1) appear at the time and place designated in the notice; and
(2) be heard regarding any item included in the proposed budget.
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.
1011, Sec. 4, eff. June 19, 2009.
Sec. 1043.153. FISCAL YEAR. The district operates on a fiscal
year that begins on October 1 and ends on September 30.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.154. ANNUAL AUDIT. (a) The board annually shall have
an independent audit made of the district's books and records for
the fiscal year.
(b) Not later than December 31 each year, the audit shall be
filed at the district office.
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.
1011, Sec. 5, eff. June 19, 2009.
Sec. 1043.155. DEPOSITORY OR TREASURER. (a) The board by
resolution shall designate a bank or banks in Hopkins County as
the district's depository or treasurer. A designated bank serves
for two years and until a successor is designated.
(b) All income received by the district shall be deposited with
the district depository.
(c) All district money shall be secured in the manner provided
for securing county funds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.156. AUTHORITY TO BORROW MONEY; SECURITY. (a) If the
board declares that money is not available to meet authorized
district obligations, the board may:
(1) by majority vote borrow money to satisfy the obligations in
an amount not to exceed, at any one time in the aggregate, 10
percent of the annual district operational expenses for the prior
fiscal year; and
(2) by unanimous vote borrow additional money if the obligations
exceed the amount described by Subdivision (1).
(b) To secure a loan, the board may pledge:
(1) district revenue that is not pledged to pay the district's
bonded indebtedness; or
(2) a district tax to be imposed by the district in the next
12-month period that is not pledged to pay the principal of or
interest on district bonds.
(c) A loan for which taxes are pledged must mature and be paid
not later than the first 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 are pledged to pay the loan, the purposes
for which the pledged taxes were imposed.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
SUBCHAPTER E. BONDS
Sec. 1043.201. 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 relating to:
(1) the purchase, construction, acquisition, repair, or
renovation of buildings or improvements, including medical
facilities; and
(2) equipping buildings or improvements for hospital or medical
purposes.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) 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 general obligation bonds issued by the district under
Section 1043.201 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:
(1) 25 cents on each $100 valuation of all taxable property in
the district; or
(2) the maximum tax rate approved under Section 1043.253, which
may not exceed 75 cents on each $100 valuation of all taxable
property in the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.203. 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 the election on its own motion.
(c) The order calling the election must specify:
(1) the location of the polling places;
(2) the presiding election officers;
(3) the purpose of the bond issuance;
(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.
(d) Notice of a bond election shall be given by publishing a
substantial copy of the order calling the election in a newspaper
of general circulation in Hopkins County once a week for two
consecutive weeks before the date of the election. The first
publication must occur at least 14 days before the date of the
election.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.204. MATURITY OF GENERAL OBLIGATION BONDS. District
general obligation 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. 1043.205. 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 countersign the bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.206. REVENUE BONDS. (a) The board may issue revenue
bonds to:
(1) purchase, construct, acquire, repair, or renovate buildings
or improvements, including necessary equipment and furnishings,
for hospital purposes and the hospital system;
(2) acquire sites to be used for hospital purposes; or
(3) acquire and operate a mobile emergency medical or air
ambulance service to assist the district in carrying out its
hospital purpose.
(b) The bonds may be 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, 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. 1043.207. REFUNDING BONDS. (a) The board may, without an
election, issue refunding bonds to refund outstanding bonds
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 bonds to be refunded; or
(2) exchanged wholly or partly for not less than a similar
amount of outstanding bonds and the unpaid matured interest on
the bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.208. 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) 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. 1043.251. IMPOSITION OF AD VALOREM TAX. (a) On final
approval of the annual budget, the board shall impose a tax on
all property in the district subject to district taxation.
(b) The tax may be used for all hospital district purposes
mentioned in this chapter and in Section 11, Article IX, Texas
Constitution, including to:
(1) pay the indebtedness issued or assumed by the district; and
(2) maintain and operate the district.
(c) The district may not impose a tax to pay the principal of or
interest on revenue bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.252. TAX RATE. The board may impose the tax at a rate
not to exceed 25 cents on each $100 valuation of all taxable
property in the district unless the tax rate is increased as
provided by Section 1043.253.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.253. ELECTION TO INCREASE MAXIMUM TAX RATE. (a) The
board may order an election to increase the district's maximum
tax rate to a rate not to exceed 75 cents on each $100 valuation
of taxable property in the district.
(b) The maximum tax rate may not be increased unless the
increase is approved by a majority of the district voters voting
in an election held for that purpose.
(c) The board shall give notice in the manner provided for a
bond election under Section 1043.203.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1043.254. TAX ASSESSOR-COLLECTOR. (a) Except as provided
by Subsection (b), the tax assessor-collector of Hopkins County
shall assess and collect taxes imposed by the district.
(b) 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. 1043.301. 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) The board may order an election on the question of
dissolving the district and transferring the district's assets
and liabilities.
(c) The board shall order an election if the board receives a
petition requesting an election that is signed by a number of
district residents equal to 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 board.
(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. 21.017, eff. September 1, 2009.
Sec. 1043.302. 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. 1043.303. BALLOT. The ballot for an election under this
subchapter must be printed to permit voting for or against the
proposition: "The dissolution of the Hopkins County 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. 1043.304. 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. 1043.305. 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 and 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 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 district
residents, including the residents' 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 that
serves the district; and
(2) the transferred assets are to be used for the benefit of the
district's residents.
(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.