CHAPTER 1049. KIMBLE COUNTY HOSPITAL DISTRICT OF KIMBLE COUNTY, TEXAS

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 3. HEALTH

SUBTITLE A. HOSPITAL DISTRICTS

CHAPTER 1049. KIMBLE COUNTY HOSPITAL DISTRICT OF KIMBLE COUNTY,

TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1049.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the district.

(2) "Commissioners court" means the Commissioners Court of

Kimble County.

(3) "Director" means a member of the board.

(4) "District" means the Kimble County Hospital District of

Kimble County, Texas.

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

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

Sec. 1049.002. AUTHORITY FOR CREATION. The district is created

under the authority of Section 9, Article IX, Texas Constitution.

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

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

Sec. 1049.003. DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Kimble County.

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

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

Sec. 1049.004. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The support and maintenance of the district's

hospital system and any indebtedness incurred by the district

under this chapter 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. 1049.005. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The

legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

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

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

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1049.051. BOARD ELECTION; TERM. (a) The board consists of

seven directors elected from the district at large.

(b) Directors serve staggered three-year terms.

(c) An election shall be held each year on the May uniform

election day prescribed by Section 41.001, Election Code, 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. 1049.052. QUALIFICATIONS FOR OFFICE. To qualify for

election to the board, a person must:

(1) be at least 18 years of age;

(2) have been a district resident for at least two years; and

(3) be a qualified property tax paying voter of the district.

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

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

Sec. 1049.053. BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF

OFFICE. (a) Each director shall qualify for office by executing

a good and sufficient commercial bond for $1,000 that is:

(1) payable to the district; and

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

duties.

(b) The district shall pay for a director's bond.

(c) Each director's bond and constitutional oath or affirmation

of office shall be deposited with the district's depository for

safekeeping.

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. 21.018, eff. September 1, 2009.

Sec. 1049.054. BOARD VACANCY. If a vacancy occurs in the office

of director, a majority of the 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. 1049.055. OFFICERS. The board shall elect from among its

members a president, a secretary, and a treasurer at the first

meeting after each director's election.

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

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

Sec. 1049.056. COMPENSATION; EXPENSES. A director serves

without compensation but is entitled to reimbursement for

necessary expenses incurred in the performance of official

duties.

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

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

Sec. 1049.057. DISTRICT ADMINISTRATOR. (a) The board may

employ a district administrator to manage the operations of the

hospital system.

(b) The district administrator may employ necessary personnel to

perform the services provided by the hospital system.

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

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

Sec. 1049.058. EMPLOYEES. The board may employ an attorney, a

general manager, a bookkeeper, an architect, and other employees

necessary for the efficient operation of the district.

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

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

Sec. 1049.059. MAINTENANCE OF RECORDS; PUBLIC INSPECTION. The

board shall:

(1) maintain all district records, including books, accounts,

notices, minutes, and other matters of the district and its

operation, at the district office; and

(2) make those records available for public inspection at

reasonable times.

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

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

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1049.101. DISTRICT RESPONSIBILITY. The district shall

provide all necessary hospital and medical 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. 1049.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND

DEBT. A political subdivision of this state, other than the

district, may not impose a tax or issue bonds or other

obligations to provide hospital service or medical care in the

district.

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

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

Sec. 1049.103. MANAGEMENT AND CONTROL OF DISTRICT. The board

has full power to manage and control the district.

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

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

Sec. 1049.104. HOSPITAL SYSTEM. The district has the

responsibility to establish a hospital or hospital system within

its boundaries to provide hospital and medical care to the

district's residents.

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

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

Sec. 1049.105. RULES. (a) The board shall adopt rules for the

efficient operation of the district, including district

facilities.

(b) The board shall:

(1) publish the rules in book form; and

(2) provide copies to interested persons on request at district

expense.

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

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

Sec. 1049.106. PURCHASING AND ACCOUNTING PROCEDURES. The board

may prescribe the method of making purchases and expenditures and

the manner of accounting and control used by the district.

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

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

Sec. 1049.107. EMINENT DOMAIN. (a) The district may exercise

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

interest in real, personal, or mixed property located in district

territory if the interest is necessary or convenient for the

district to exercise a power or duty 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, the district is not required

to:

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

in the trial court; or

(2) 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. 1049.108. GIFTS AND ENDOWMENTS. The board may accept for

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

administered by the board under the directions, limitations, or

other provisions prescribed in writing by the donor that are not

inconsistent with the proper management of the district.

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

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

Sec. 1049.109. CONTRACTS FOR HEALTH CARE. The board may

contract with any public or private entity, including a

charitable organization, the federal government, this state, or

any political subdivision, to provide health care or related

services inside or outside the district.

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

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

Sec. 1049.110. PAYMENT FOR TREATMENT; PROCEDURES. (a) A person

who resides in the district is entitled to receive necessary

medical and hospital care regardless of whether the person has

the ability to pay for the care and may apply to receive this

care without cost.

(b) The board or the district administrator shall employ a

person to investigate the ability of the patient and any relative

who is liable for the patient's support to pay for the medical

and hospital care received by the patient.

(c) If the investigator determines that the patient or relative

legally liable for the patient's support cannot pay all or part

of the costs of the patient's care, the expense of the care

becomes a charge against the district.

(d) If the patient or a relative legally liable for the

patient's support can pay for all or part of the costs of the

patient's care, the board shall:

(1) order the patient or relative to pay the district each week

an amount specified in the order, which must be proportionate to

the person's ability to pay; and

(2) send a billing statement charging that amount to the person.

(e) The district may collect the amount from the patient's

estate, or from any relative who is 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.

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

the mind of the investigator, the board shall hold a hearing and,

after calling witnesses, shall:

(1) determine the question; and

(2) make the proper order based on the board's findings.

(g) A party to the hearing who is not satisfied with the result

of the order may appeal to the district court. The appeal is de

novo.

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

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

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1049.151. BUDGET. The board shall prepare a budget that

includes:

(1) proposed expenditures and disbursements;

(2) estimated receipts and collections for the next fiscal year;

and

(3) the amount of taxes required to be imposed to meet the

proposed budget.

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

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

Sec. 1049.152. 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 the district not later than

the 11th day before the date of the hearing.

(c) Any person is entitled to:

(1) appear at the hearing; and

(2) be heard regarding any item in the proposed budget.

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

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

Sec. 1049.153. FISCAL YEAR. The district's fiscal year is from

October 1 to September 30.

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

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

Sec. 1049.154. ANNUAL AUDIT. (a) The board annually shall

require an independent audit of the district's books and records.

(b) Not later than December 1 of each year, the board shall file

a copy of the audit with:

(1) the comptroller; and

(2) the district.

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

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

Sec. 1049.155. DEPOSITORY. (a) The board by resolution shall

designate a bank in Kimble County as the district's depository.

A designated bank serves for two years and until a successor is

designated.

(b) All district money shall be deposited in the depository and

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. 1049.156. AUTHORITY TO BORROW MONEY; 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.

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

(1) district revenue that is not pledged to pay the district's

bonded indebtedness;

(2) a district tax to be imposed by the district during the

12-month period following the date of the pledge that is not

pledged to pay the principal of or interest on district bonds; or

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

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

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

loan for which district revenue is pledged must mature not later

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

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

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

SUBCHAPTER E. BONDS

Sec. 1049.201. BONDS. The district may issue bonds to:

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

and improvements; and

(2) equip buildings for hospital purposes.

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

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

Sec. 1049.202. TAX TO PAY BONDS. The board may issue bonds

under Section 1049.201 only if the board imposes 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.

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

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

Sec. 1049.203. BOND ELECTION. (a) The board may issue bonds

under Section 1049.201 only if the bonds are authorized by a

majority of district voters voting in an election held for that

purpose. The total face value of the bonds may not exceed the

amount specified in the election order.

(b) The board may order a bond election at any time.

(c) The order calling the election must include:

(1) the time of the election;

(2) the location of the polling places;

(3) the form of the ballots;

(4) the presiding judge for each polling place;

(5) the purpose of the bond issuance;

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

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

(8) the maximum maturity date of the bonds.

(d) A substantial copy of the election order shall be published

in a newspaper of general circulation in the district once a week

for two consecutive weeks before the date of the election. The

first notice must be published not later than the 15th day before

the date of the election.

(e) A copy of the election results must be filed with the county

clerk and become a public record.

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

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

Sec. 1049.204. 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. 1049.205. EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds.

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

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

Sec. 1049.206. REVENUE BONDS. (a) The board may issue and sell

revenue bonds in the name and on the faith and credit of the

district to purchase, construct, acquire, repair, renovate, or

equip buildings or improvements for district purposes.

(b) The bonds must be payable from and secured by a pledge of

all or part of the revenue derived from the operation of the

district's hospital system.

(c) The bonds may be additionally secured by a mortgage or deed

of trust on all or part of district property.

(d) The bonds must be issued in the manner provided by Sections

264.042, 264.043, and 264.046-264.049, Health and Safety Code,

for the 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.

SUBCHAPTER F. TAXES

Sec. 1049.251. IMPOSITION OF AD VALOREM TAX. (a) The board

shall impose a tax on all property in the district subject to

district taxation.

(b) The tax may be used only to:

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

issued under this chapter;

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

and hospital system;

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

(4) acquire sites for additions to the hospital system.

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

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

Sec. 1049.252. TAX RATE. The board may impose the tax at a rate

not to 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. 1049.253. TAX ASSESSOR-COLLECTOR. (a) The tax

assessor-collector for Kimble County shall collect taxes for the

district.

(b) The tax assessor-collector is entitled to a reasonable fee

that is agreed to by the district as compensation for the

person's services.

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

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

SUBCHAPTER G. DISSOLUTION

Sec. 1049.301. DISSOLUTION; ELECTION. (a) The district may be

dissolved on approval of a majority of the district voters voting

in an election held for that purpose.

(b) The commissioners court may order an election to dissolve

the district on its own order recorded in the minutes. The

commissioners court shall order the election if the commissioners

court receives a petition from 50 district voters.

(c) The order calling the election must specify:

(1) the location of the polling places;

(2) the form of the ballots; and

(3) the presiding judge for each polling place.

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

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

Sec. 1049.302. NOTICE OF ELECTION. (a) The commissioners court

shall publish a substantial copy of the election order in a

newspaper of general circulation in the district once a week for

two consecutive weeks before the date of an election under this

subchapter.

(b) The first notice must be published not later than the 15th

day before the date of the election.

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

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

Sec. 1049.303. BALLOT. The ballot for an election under this

subchapter must be printed to permit voting for or against the

proposition: "The Dissolution of Kimble County Hospital District

of Kimble County, Texas."

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

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

Sec. 1049.304. ELECTION RESULTS. (a) If a majority of the

votes in an election under this subchapter favor dissolution, the

commissioners court shall, within 10 days after the date the

results are filed, declare the results and order the district

dissolved. A copy of the order shall be placed in the minutes of

the court, and a copy shall be sent to the board.

(b) If a majority of the votes are against dissolution, this

does not prevent the holding of other dissolution elections after

the passage of one year.

(c) A copy of the election results must be filed with the county

clerk and become a public record.

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

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

Sec. 1049.305. AUDIT; TRANSFER OF ASSETS AND LIABILITIES. (a)

Within 30 days after the election results are filed under Section

1049.304, the commissioners court shall employ an independent

audit of the dissolved district's assets and liabilities.

(b) Within 10 days after the audit is completed, the

commissioners court shall:

(1) publish a copy of the audit in a newspaper of general

circulation in the district; and

(2) by declaration:

(A) formally transfer the assets of the dissolved district to

Kimble County; and

(B) formally declare the county liable for all debts and

liabilities incurred by the dissolved district.

(c) The declarations shall be published in a newspaper of

general circulation within 10 days after the declarations are

made.

(d) Any assets transferred to Kimble County shall be used to

benefit the citizens formerly in the district.

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

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