CHAPTER 1050. KNOX COUNTY HOSPITAL DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 3. HEALTH
SUBTITLE A. HOSPITAL DISTRICTS
CHAPTER 1050. KNOX COUNTY HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1050.001. 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 Knox County Hospital District.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1050.002. AUTHORITY FOR OPERATION. The district operates
in accordance with Section 9, Article IX, Texas Constitution.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1050.003. POLITICAL SUBDIVISION. The district is a
political subdivision of this state.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1050.004. DISTRICT TERRITORY. The boundaries of the
district are coextensive with the boundaries of Knox County,
Texas.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1050.005. 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.
Sec. 1050.006. PUBLIC PURPOSE; TAX EXEMPTION. All property
owned by the district:
(1) shall be held for public purposes; and
(2) is exempt from taxation of every character.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 1050.051. BOARD ELECTION AND APPOINTMENT; TERM. (a) The
district is governed by a board of seven directors as follows:
(1) four directors appointed by the Commissioners Court of Knox
County to board positions 1 through 4, with one director
appointed from each of the four county commissioner precincts as
the precincts existed on May 22, 1967; and
(2) three directors elected from the district at large to board
positions 5 through 7.
(b) Directors serve staggered two-year terms.
(c) The Commissioners Court of Knox County shall appoint two
successor directors on or before the first Saturday in April of
each year.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1050.052. NOTICE OF ELECTION. At least 10 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 Knox
County.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1050.053. BALLOT PETITION. A person who wants to have the
person's name printed on the ballot as a candidate for elected
director must file with the board secretary a petition requesting
that action. The petition must:
(1) be signed by at least 25 registered district voters; and
(2) be filed at least 25 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. 1050.054. QUALIFICATIONS FOR OFFICE. (a) A person is not
qualified for appointment or election as a director unless the
person:
(1) is a district resident;
(2) owns land subject to taxation by the district; and
(3) is at least 18 years of age at the time of the appointment
or election.
(b) A person may not be appointed as a director for a
commissioners precinct unless at the time of appointment the
person is a resident of that commissioners precinct.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1050.055. 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. 1050.056. BOARD VACANCY. (a) If a vacancy occurs in the
office of an elected director, the remaining directors shall
appoint a director for the unexpired term.
(b) If a vacancy occurs in the office of an appointed director,
the Commissioners Court of Knox County 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. 1050.057. DIRECTOR RIGHTS, PRIVILEGES, AND DUTIES. The
directors have identical rights, privileges, and duties in all
matters concerning the board's business.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1050.058. OFFICERS. The board shall elect from among its
members a president and a secretary.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1050.059. 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 board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1050.060. VOTING REQUIREMENT. A concurrence of four
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. 1050.061. EMPLOYEES. The board may employ a general
manager, attorneys, bookkeepers, architects, or any other
employees considered 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. 1050.062. MAINTENANCE OF RECORDS; PUBLIC INSPECTION.
Except as provided by Section 1050.055, 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. 1050.063. 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. 1050.101. 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. 1050.102. RESTRICTION ON COUNTY OR MUNICIPALITY TAXATION
AND DEBT. Knox County or a municipality in Knox County may not
impose a tax on property in the district for hospital purposes.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1050.103. RULES. (a) The board may adopt rules governing
the operation of the district, including district facilities.
(b) On approval of 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. 1050.104. 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. 1050.105. 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. 1050.106. 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 objectives of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1050.107. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a
patient who resides in the district 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) If an agent designated by the district to handle the inquiry
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 board determines that the patient or those relatives
are liable to pay 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. 1050.108. AUTHORITY TO SUE AND BE SUED. As a governmental
agency, the district may sue and be sued in its own name in any
court in 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. 1050.151. 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. 1050.152. 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 Knox County not later than
the 10th day before the date of the hearing.
(c) Any district taxpayer 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.
Sec. 1050.153. 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. 1050.154. 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:
(1) with the comptroller; and
(2) at the district office.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1050.155. DEPOSITORY OR TREASURER. (a) The board by
resolution shall designate a bank in Knox County as the
district's depository or treasurer. A designated bank serves for
two years 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. 1050.156. AUTHORITY TO BORROW MONEY; SECURITY. (a) The
board may borrow money at a rate of interest the board determines
is appropriate.
(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) property acquired with the loan proceeds that is not pledged
to pay the district's bonded indebtedness.
(c) A loan authorized by this section 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. 1050.201. 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; 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. 1050.202. 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 1050.201 as the bonds mature.
(b) Except as provided by Section 1050.253, the tax required by
this section together with any other ad valorem tax the district
imposes may not in any year exceed 35 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. 1050.203. 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 date of the election;
(2) the location of the polling places;
(3) the presiding election officers;
(4) the purpose of the bond issuance;
(5) the amount of the bonds to be authorized;
(6) the maximum interest rate of the bonds; and
(7) 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 Knox County once each 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. 1050.204. 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. 1050.205. 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.
SUBCHAPTER F. TAXES
Sec. 1050.251. 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 board shall impose the tax to:
(1) pay the interest on and create a sinking fund for bonds or
other obligations issued or assumed by the district for hospital
purposes;
(2) provide for the operation and maintenance of the district
and hospital system;
(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. 1050.252. TAX RATE. The board may impose the tax at a rate
not to exceed 35 cents on each $100 valuation of taxable property
in the district, unless the tax rate is increased as provided by
Section 1050.253.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1050.253. 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 may order the election on its own motion.
(d) The election order must specify:
(1) the date of the election;
(2) the location of the polling places;
(3) the presiding election officers; and
(4) the purpose of the election.
(e) Notice of the election shall be given by publishing a
substantial copy of the election order in a newspaper of general
circulation in Knox 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. 1050.254. TAX ASSESSOR-COLLECTOR. The tax
assessor-collector of Knox 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.