CHAPTER 1046. JACKSON COUNTY HOSPITAL DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 3. HEALTH
SUBTITLE A. HOSPITAL DISTRICTS
CHAPTER 1046. JACKSON COUNTY HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1046.001. 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 Jackson County Hospital District.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.002. AUTHORITY FOR OPERATION. The district operates
and is administered and financed 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. 1046.003. 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. 1046.004. DISTRICT TERRITORY. The boundaries of the
district are coextensive with the boundaries of Jackson County.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE
OBLIGATION. The support and maintenance of the district may not
become a charge against or obligation of this state.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.006. 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.
Sec. 1046.007. ELECTION DATE. Section 41.001(a), Election Code,
does not apply to an election held under this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 1046.051. BOARD ELECTION; TERM. (a) The board consists of
nine directors elected from the district by position as follows:
(1) two directors from each commissioners precinct; and
(2) one director from the district at large.
(b) To be elected, a candidate must receive a majority of the
votes cast in the election for that position.
(c) The board shall declare the results of a district election.
(d) Unless different terms are established under Section
1046.054, directors serve staggered two-year terms as follows:
(1) directors elected to even-numbered positions are elected in
even-numbered years; and
(2) directors elected to odd-numbered positions and the director
elected at large are elected in odd-numbered years.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.052. NOTICE OF ELECTION. (a) Except as provided by
Subsection (b), at least 30 days before the date of an election
of directors, the board shall publish notice of the election one
time in a newspaper or newspapers that individually or
collectively have general circulation in the district.
(b) At least seven days before the date of a runoff election of
directors, the board shall publish notice of the election one
time in a newspaper or newspapers that individually or
collectively have general circulation in the area of the runoff
election.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.053. FORM OF BALLOT AT RUNOFF ELECTION. Of the names
printed on the ballot at a runoff election, the name of the
candidate who received the higher number of votes at the general
election of directors must be printed first on the ballot.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.054. MODIFICATION OF TERM. (a) Notwithstanding
Section 1046.051, the board, on its own motion, may order that
directors serve staggered three-year or four-year terms. After
an initial change under this section from staggered two-year
terms, the board may not change the terms again.
(b) If the board orders four-year terms, the directors are to be
elected in accordance with Section 285.081, Health and Safety
Code.
(c) If the board orders staggered three-year terms, directors
are to be elected as follows:
(1) if the first election that occurs at least 120 days after
the date the order is entered is an election in an even-numbered
year:
(A) the four directors elected at that election shall draw lots
to determine the three directors that serve three-year terms and
the director that serves a two-year term;
(B) the at-large director elected at the first odd-numbered year
election after the order is entered serves a three-year term; and
(C) the four other directors elected at the first odd-numbered
year election after the order is entered shall draw lots to
determine which two directors serve three-year terms and which
two directors serve one-year terms; and
(2) if the first election that occurs at least 120 days after
the date the order is entered is an election in an odd-numbered
year:
(A) the at-large director elected at that election serves a
three-year term;
(B) the four other directors elected at that election shall draw
lots to determine the two directors that serve three-year terms
and the two directors that serve two-year terms; and
(C) the four directors elected at the first even-numbered year
election after the order is entered shall draw lots to determine
which three directors serve three-year terms and which director
serves a one-year term.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.055. QUALIFICATIONS FOR OFFICE. (a) A person may not
be elected or appointed as a director unless the person is:
(1) a district resident; and
(2) a qualified voter.
(b) A director elected or appointed to represent a commissioners
precinct must be a resident of that commissioners precinct.
Failure of the director to maintain residence in the
commissioners precinct is a ground for removal from office in the
manner provided by law for removal of county officers.
(c) A person is not eligible to serve as a director if the
person is:
(1) an administrator for the district or a district hospital;
(2) the attorney for the district; or
(3) a district employee.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.056. BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF
OFFICE. (a) As soon as practicable after a director is elected
or appointed, the director shall execute a bond for $5,000 that
is:
(1) approved by the board;
(2) payable to the district; and
(3) conditioned on the faithful performance of the director's
duties.
(b) The district may pay for a director's bond with district
money.
(c) Each director's bond and constitutional oath or affirmation
of office shall be filed with the board and retained in the
board's records.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.057. 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. 1046.058. OFFICERS. (a) The board shall elect a
president, vice president, and secretary from among its members.
(b) Each officer of the board serves for a term of one year.
(c) The board may require an officer to execute a bond that is
payable to the district and conditioned on the faithful
performance of the officer's duties. The board may pay for the
bond with district money.
(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. 1046.059. COMPENSATION; EXPENSES. A director serves
without compensation but may be reimbursed for travel or other
expenses incurred on the district's behalf if:
(1) the director presents a verified statement; and
(2) the board approves the expenses.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.060. VOTING REQUIREMENT. Except as provided by
Sections 1046.119 and 1046.122, a concurrence of five directors
is required 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. 1046.061. ADMINISTRATOR FOR EACH DISTRICT HOSPITAL. (a)
The board may appoint a qualified administrator for each district
hospital.
(b) An administrator serves at the will of the board and is
entitled to the compensation determined by the board.
(c) On assuming the duties of an administrator, the
administrator shall execute a bond payable to the district in an
amount set by the board of not less than $5,000 that:
(1) is conditioned on the administrator performing the
administrator's duties; and
(2) contains other conditions the board may require.
(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. 1046.062. APPOINTMENT AND REMOVAL 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 employ or contract with persons the board
considers necessary or advisable to conduct district affairs,
including a hospital administrator for the district or for each
facility and nurses, medical technicians, engineers, architects,
attorneys, financial advisors, accountants, fiscal agents,
bookkeepers, auditors, and secretaries.
(c) The board shall determine the powers, duties, term of
employment, and compensation of all employees and consultants by
contract or by resolution or order of the board. The board may
terminate the employment of any district employee.
(d) The board may delegate to an administrator the authority to
hire and discharge district or hospital employees, including
doctors, nurses, and technicians, or to appoint and remove staff
doctors under bylaws and rules.
(e) The board may require any employee to execute a bond payable
to the district and conditioned on the faithful performance of
the employee's duties. 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. 1046.063. ATTORNEY; ASSISTANT HOSPITAL ADMINISTRATOR. (a)
The board may appoint:
(1) an attorney for the district; and
(2) a qualified assistant administrator for each district
hospital.
(b) The attorney for the district and an assistant hospital
administrator serve at the will of the board and shall receive
the compensation determined by the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.064. GENERAL DUTIES OF ADMINISTRATOR. (a) The board
may delegate to the administrator for the district or the
administrators for each district hospital the power to manage and
operate all or any part of the hospital system.
(b) Subject to the limitations prescribed by the board, the
administrator for each district hospital shall:
(1) supervise the work and activities of the hospital; and
(2) direct the affairs of the hospital.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.065. RETIREMENT BENEFITS. The district may provide
retirement benefits for district employees by:
(1) creating and administering a public retirement system for
the district;
(2) participating in the Texas County and District Retirement
System; or
(3) purchasing annuity contracts from an insurer or annuity
company authorized to engage in business in this state.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.066. SEAL. The board shall 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. 1046.101. DISTRICT RESPONSIBILITY. The district has full
responsibility for 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. 1046.102. BOARD RESPONSIBILITY. The board shall provide
for the administration, maintenance, and operation of a hospital
transferred to the district to furnish adequate medical and
hospital care in the district and to ensure that the hospital is
provided with sufficient money, personnel, and equipment for
district residents to have access to quality and competent health
facilities.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.103. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND
DEBT. A political subdivision other than the district may not
impose a tax or issue bonds or other obligations for hospital
purposes or to provide medical care in the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.104. MANAGEMENT, CONTROL, AND ADMINISTRATION. The
board shall:
(1) manage and control all district affairs; and
(2) 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. 1046.105. 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 for hospital and medical care purposes; and
(3) administering the system for hospital purposes.
(b) The hospital system may include:
(1) domiciliary care and treatment of the sick, injured, or
geriatric;
(2) outpatient clinics;
(3) dispensaries;
(4) convalescent home facilities;
(5) necessary nurses;
(6) domiciliaries and training centers;
(7) blood banks;
(8) community health centers;
(9) research centers or laboratories; and
(10) any other facilities the board considers necessary for
hospital and medical care.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.106. RULES. (a) The board may adopt rules governing
the operation of the hospital, the hospital system, and the
district's staff and employees.
(b) The board shall adopt reasonable and necessary rules and
bylaws to govern:
(1) the board's proceedings and activities; and
(2) the hospitals or the hospital or medical system.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.107. 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. 1046.108. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.
(a) The board shall determine the type, number, and location of
buildings required to maintain an adequate hospital system.
(b) The board may purchase all necessary materials, supplies,
equipment, and vehicles.
(c) The district may:
(1) acquire equipment for use in the district's hospital system;
and
(2) mortgage or pledge the property as security for the payment
of the purchase price.
(d) Except as provided by Section 1046.119, 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.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.109. 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 or convenient for the district to
exercise a power, right, or privilege conferred by this chapter.
(b) The district must exercise the power of eminent domain in
the manner provided by Chapter 21, Property Code, 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. 1046.110. 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, electric
transmission, telegraph or telephone line, conduit, pole, or
facility, or pipeline, the district must bear the actual cost of
relocating, raising, lowering, rerouting, changing the grade, 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. 1046.111. GIFTS AND ENDOWMENTS. The board may accept for
the district a gift or endowment to be held in trust for the
purposes and under the directions, limitations, or other
provisions prescribed in writing by the donor that are consistent
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. 1046.112. 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 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. 1046.113. OPERATING AND MANAGEMENT CONTRACTS. The board
may enter into an operating or management contract relating to a
district hospital or the hospital system.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.114. CONTRACT IN NAME OF DISTRICT. The district shall
contract in the name of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.115. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND
TREATMENT. (a) The board may contract with a county or
municipality located outside the district's boundaries to
reimburse the district for the care and treatment of a sick or
injured person of that county or municipality.
(b) The board may contract with this state or a federal agency
for reimbursement 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. 1046.116. PROVISION OF SERVICES OUTSIDE DISTRICT. The
district may provide health care services outside the district's
boundaries provided that the services serve the purposes of the
district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.117. 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 facilities for the
medical care, 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. 1046.118. LEASES. (a) The board may lease all or part of
the facilities comprising the hospitals or hospital system on
terms the board considers to be in the district's best interest.
(b) When leasing a facility, the board may delegate as it
considers appropriate the board's power to manage, control, and
administer the leased facilities to furnish hospital and medical
care.
(c) For each leased facility, the lease must require the lessee
to charge rates for services rendered or goods provided at the
leased premises that, together with other sources of the lessee's
revenue, produce an amount sufficient to enable the lessee to pay
the expenses of operating and maintaining the leased premises
required of the lessee under the lease. The lease must also
require the lessee to pay lease rentals to the district that will
be sufficient when taken with any other sources of the district's
estimated revenue that are pledged for the same purposes to:
(1) pay the interest on any revenue or special obligation bonds
that are payable wholly or partly from the lease rentals;
(2) create and maintain a sinking fund to pay the principal of
and premium, if any, on the bonds as they become due;
(3) create and maintain a bond reserve fund and any other fund
provided for in the bond order, resolution, or trust indenture
authorizing the issuance of the bonds; and
(4) pay all other charges, fees, costs, and expenses the lessee
is required to pay under the resolution or indenture.
(d) The lease, management agreement, bond resolution, or trust
indenture may prescribe systems, methods, routines, procedures,
and policies for the operation of the facilities owned by the
district.
(e) A lease of a district hospital must require the lessee to
operate the hospital in a manner that complies with the
requirements of this chapter that would apply to the board if the
board were operating the hospital.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.119. AUTHORITY TO SELL OR CLOSE CERTAIN DISTRICT
HOSPITALS. (a) The board may not sell or close a hospital
transferred to the district by the Edna Hospital District unless
the sale or closing is approved by a two-thirds majority vote of
the district voters voting at an election held for that purpose.
A concurrence of seven directors is required to call the
election.
(b) The board may not call another election before the first
anniversary of the date of a previous election held under this
section.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.120. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a
patient who resides in the district is admitted to a district
facility, the administrator for the hospital to which the patient
is admitted 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 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 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 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 administrator, the board shall hold a hearing
and, after calling witnesses, shall:
(1) resolve the dispute or doubt; and
(2) issue a final order.
(f) A 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. 1046.121. 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. 1046.122. RECOMMENDATION OF LEGISLATION; NOTICE. (a) The
board may not recommend to the legislature legislation to amend
this chapter unless the recommendation is approved by a
concurrence of seven directors.
(b) The board shall give notice of the date, hour, place, and
subject of a meeting at which the recommendation of legislation
will be discussed in accordance with the open meetings law,
Chapter 551, Government Code, except that the board shall furnish
to the county clerk the notice required by Section 551.054,
Government Code, at least 30 days before the date of the meeting.
(c) The notice must be published in a newspaper of general
circulation in the district once a week for four weeks. The
first publication must occur at least 30 days before the date of
the meeting.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 1046.151. BUDGET. (a) Each administrator shall prepare an
annual budget for each hospital for which that person is the
administrator. The board shall combine these budgets into a
single budget for the district.
(b) The proposed budget for the district must contain a complete
financial statement of:
(1) the outstanding obligations of the district;
(2) the cash on hand in each district fund;
(3) the money received by the district from all sources during
the previous year;
(4) the money available to the district from all sources during
the ensuing year;
(5) 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. 1046.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The
board shall hold a public hearing on the proposed annual budget.
(b) Notice of the hearing must be published in a newspaper of
general circulation in the district one time at least 10 days
before the date of the hearing.
(c) Any district resident or taxpayer 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 administrators.
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. 1046.153. 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. 1046.154. 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. 1046.155. FISCAL YEAR. (a) The district operates on a
fiscal year established by the board.
(b) The fiscal year may not be changed:
(1) during a period that 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. 1046.156. 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. 1046.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT RECORDS.
The annual 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. 1046.158. FINANCIAL REPORT. As soon as practicable after
the close of each fiscal year, the administrators 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. 1046.159. DEPOSITORY. (a) After advertising in the manner
provided by Chapter 252 and Subchapter C, Chapter 262, Local
Government Code, the board shall choose by competitive bidding
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 1046.160(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.
(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. 1046.160. SPENDING AND INVESTMENT RESTRICTIONS. (a)
Except as otherwise provided by Section 1046.108(c), Section
1046.161, and 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
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. 1046.161. AUTHORITY TO BORROW MONEY; SECURITY. (a) The
district may incur a debt or borrow money on the credit of the
district or secured by any source of revenue, including district
taxes to be imposed in the next 12-month period, that is not
pledged to pay the principal of or interest on district bonds.
(b) The district may incur a debt or borrow money in any amount
at a rate not to exceed the maximum annual percentage rate
allowed by law for district obligations at the time the loan is
made and on other terms the district considers advisable.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
SUBCHAPTER E. BONDS
Sec. 1046.201. GENERAL OBLIGATION BONDS. The board may issue
and sell general obligations 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; and
(2) equipping buildings or improvements for hospital purposes.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the
time general obligation bonds are issued by the district under
Section 1046.201, 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 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. 1046.203. 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.
(b) The board, in ordering a bond 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; and
(5) the maximum maturity of the bonds.
(c) Notice of a bond election shall be given as provided by
Section 1251.003, Government Code.
(d) 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. 1046.204. 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. 1046.205. 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 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. 1046.206. 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. 1046.207. REFUNDING BONDS. (a) The board may, without an
election, 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 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. 1046.208. 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. 1046.251. IMPOSITION OF AD VALOREM TAX. (a) The board may
impose a tax on all property in the district subject to district
taxation.
(b) The board may impose the tax to pay:
(1) indebtedness issued or assumed by the district; and
(2) the maintenance and operating expenses of the district,
including improvements to district facilities.
(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. 1046.252. 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. 1046.253. ASSESSMENT AND COLLECTION BY COUNTY TAX
ASSESSOR-COLLECTOR. (a) This section applies unless the board
elects to have taxes assessed and collected under Section
1046.254.
(b) The tax assessor-collector of Jackson County shall assess
and collect taxes imposed by the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1046.254. ASSESSMENT AND COLLECTION BY DISTRICT TAX
ASSESSOR-COLLECTOR. (a) The board may elect to have district
taxes assessed and collected by a tax assessor-collector
appointed by the board. An election under this subsection must be
made by December 1 and governs the manner in which taxes are
assessed and collected, until changed by a similar resolution.
(b) The district tax assessor-collector must:
(1) reside in the district; and
(2) own real property subject to district taxation.
(c) The board shall set for the district tax assessor-collector:
(1) the term of employment; and
(2) compensation.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.