CHAPTER 1059. MCCULLOCH COUNTY HOSPITAL DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 3. HEALTH
SUBTITLE A. HOSPITAL DISTRICTS
CHAPTER 1059. MCCULLOCH COUNTY HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1059.001. 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 McCulloch County Hospital District.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.002. AUTHORITY FOR OPERATION. The district operates
and is financed as provided by Section 9, Article IX, Texas
Constitution, and by this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.003. ESSENTIAL PUBLIC FUNCTION. The district is a
public entity performing an essential public function.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.004. DISTRICT TERRITORY. The boundaries of the
district are coextensive with the boundaries of McCulloch County,
Texas.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE
OBLIGATION. The state may not become obligated for the support
or maintenance of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.006. 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.
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 1059.051. BOARD ELECTION; TERMS. (a) The district is
governed by a board of seven directors.
(b) One director is elected from each commissioners precinct and
three directors are elected from the district at large.
(c) Directors serve staggered three-year terms.
(d) 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. 1059.052. NOTICE OF ELECTION. Not earlier than 30 days or
later than 10 days before the date of an election of directors,
notice of the election shall be published one time in a newspaper
with general circulation in the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.053. QUALIFICATIONS FOR OFFICE. (a) To be eligible
to be a candidate for or to serve as a director, a person must
be:
(1) a district resident;
(2) a qualified voter; and
(3) able to obtain a bond as prescribed by Section 1059.054.
(b) In addition to Subsection (a), a person who is elected from
a commissioners precinct or who is appointed to fill a vacancy
for a commissioners precinct must be a resident of that
commissioners precinct.
(c) A district employee or member of the district's medical
staff may not serve as a director.
(d) A person formerly employed by the district may not serve as
a director before the second anniversary of the date of the
termination of that person's employment by the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.054. BOND; RECORD OF BOND. (a) Before assuming the
duties of office, each director must execute a bond for $5,000
that is:
(1) payable to the district; and
(2) conditioned on the faithful performance of the director's
duties.
(b) Each director's bond shall be kept in the district's
permanent records.
(c) The director shall obtain the bond from an insurer
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. 1059.055. BOARD VACANCY. If a vacancy occurs in the office
of director, the remaining directors shall appoint a director for
the unexpired term.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.056. OFFICERS. (a) The board shall elect a president
and a vice president from among its members.
(b) The board shall appoint a secretary, who need not be a
director.
(c) Each officer of the board serves for a term of one year.
(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. 1059.057. COMPENSATION; EXPENSES. A director or officer
serves without compensation but may be reimbursed for actual
expenses incurred in the performance of official duties. The
expenses must be:
(1) reported in the district's records; and
(2) approved by the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.058. VOTING REQUIREMENT. A concurrence of a majority
of the directors voting is necessary 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. 1059.059. DISTRICT ADMINISTRATOR. (a) The board may
appoint a qualified person as district administrator.
(b) The district administrator serves at the will of the board
and is entitled to the compensation determined by the board.
(c) Before assuming the duties of district administrator, the
administrator shall execute a bond in the amount determined by
the board of not less than $5,000 that is:
(1) payable to the district; and
(2) conditioned on the faithful performance of the
administrator's duties under this chapter.
(d) The bond shall be kept in the district's permanent records.
(e) The district administrator shall obtain the bond from an
insurer authorized to engage in business in this state.
(f) 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. 1059.060. GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
Subject to the limitations prescribed by the board, the district
administrator shall:
(1) supervise the work and activities of the district; and
(2) direct the general affairs of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.061. EMPLOYEES; APPOINTMENT AND REMOVAL OF STAFF. (a)
The board may:
(1) appoint to or remove from the staff any doctors the board
considers necessary for the efficient operation of the district
and may make temporary appointments as necessary; and
(2) adopt policies relating to the method of appointing and
removing staff members.
(b) The district may employ technicians, nurses, fiscal agents,
accountants, architects, attorneys, and other necessary
employees.
(c) The board may delegate to the district administrator the
authority to employ persons for the district.
(d) The district may not employ a person who is related to a
director within the second degree by consanguinity or affinity,
as determined under Subchapter B, Chapter 573, Government Code,
during that director's term of office. A district employee who is
related to a person elected as a director within the second
degree by consanguinity or affinity shall resign from employment
when that director takes office.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.062. RECRUITMENT OF MEDICAL STAFF AND PROFESSIONAL
PERSONNEL. The board may use innovative methods to recruit
physicians, nurses, technicians, and other professional
personnel, including:
(1) scholarship programs;
(2) agreements for future services;
(3) shared personnel;
(4) bonuses; and
(5) any other method the district considers necessary.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.063. RETIREMENT BENEFITS. The board may provide
retirement benefits for district employees by:
(1) establishing or administering a retirement program; or
(2) participating in:
(A) the Texas County and District Retirement System; or
(B) another statewide retirement system in which the district is
eligible to participate.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 1059.101. DISTRICT RESPONSIBILITY. The district has full
responsibility for:
(1) operating hospital facilities; and
(2) 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. 1059.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND
DEBT. McCulloch County, the City of Brady, and the McCulloch
County Hospital Authority may not impose a tax or issue bonds or
other obligations for hospital purposes or to provide medical
care for district residents.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The
board shall 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. 1059.104. RULES. The board may adopt rules governing:
(1) the operation of the hospital and hospital system; and
(2) the duties, functions, and responsibilities of district
staff and employees.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.105. PURCHASING AND ACCOUNTING PROCEDURES. The board
may prescribe:
(1) the method of making purchases and expenditures by and for
the district; and
(2) accounting and control procedures for the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.106. MOBILE EMERGENCY MEDICAL OR AIR AMBULANCE
SERVICE. The district may operate or provide for the operation
of a mobile emergency medical or air ambulance service.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.107. DISTRICT PROPERTY, FACILITIES, EQUIPMENT, AND
SERVICES. (a) The board shall determine:
(1) the type, number, and location of buildings required to
maintain an adequate hospital system; and
(2) the type of equipment necessary for hospital care.
(b) The district has complete discretion as to the type and
extent of services the district will offer. The district may
provide any services or facilities the board finds necessary for
hospital or medical care, including:
(1) facilities for domiciliary care, including geriatric
domiciliary care;
(2) outpatient clinics;
(3) dispensaries;
(4) convalescent home facilities;
(5) necessary nurses;
(6) domiciliaries and training centers;
(7) blood banks;
(8) community mental health centers;
(9) alcohol or chemical dependency centers;
(10) minor emergency centers;
(11) research centers; or
(12) laboratories.
(c) The board may:
(1) acquire property, including facilities and equipment, for
the district for use in the hospital system; and
(2) mortgage or pledge the property as security for the payment
of the purchase price.
(d) The board may lease hospital facilities for the district.
(e) The board may sell or otherwise dispose of property,
including facilities or equipment, for the district at public or
private sale at the price and terms the board considers most
advantageous.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.108. EMINENT DOMAIN. (a) The district may exercise
the power of eminent domain to acquire a fee simple or other
interest in property located in district territory if the
property interest is necessary to exercise a right or authority
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. 1059.109. 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, highway, pipeline,
or electric transmission and electric distribution, telegraph, or
telephone line, conduit, pole, or facility, 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. 1059.110. GIFTS AND ENDOWMENTS. The board may accept for
the district a gift or endowment to be held in trust for any
purpose and under any direction, limitation, or other provision
prescribed in writing by the donor that is consistent 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. 1059.111. CONSTRUCTION CONTRACTS. (a) The board may enter
into construction contracts for the district.
(b) The board may enter into a construction contract that
involves the expenditure of more than the amount provided by
Section 271.024, Local Government Code, only after competitive
bidding as 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. 1059.112. OPERATING AND MANAGEMENT CONTRACTS. The board
may enter into an operating or management contract relating to a
hospital facility for the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
SERVICES. The board may contract with a political subdivision of
this state or with a state or federal agency for the district to:
(1) furnish a mobile emergency medical or air ambulance service;
or
(2) provide for the investigatory or welfare needs of district
inhabitants.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.114. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a
patient who resides in the district is admitted to a district
facility, the district administrator may have an inquiry made
into the financial circumstances of:
(1) the patient; or
(2) a relative of the patient who is legally responsible for the
patient's support.
(b) As required by Section 9, Article IX, Texas Constitution,
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) On determining that the patient or a relative legally
responsible for the patient's support can pay for all or part of
the care and treatment provided by the district, the district
administrator shall report that determination to the board, and
the board shall issue an order directing the patient or the
relative to pay the district a specified amount each week. The
amount must be based on the individual's ability to pay.
(d) The district administrator may collect money owed to the
district from the patient's estate or from that of a relative who
was legally responsible for the patient's support in the manner
provided by law for collection of expenses of the last illness of
a deceased person.
(e) If there is a dispute relating to an individual's ability to
pay or if the district administrator has any doubt concerning an
individual's ability to pay, the board shall:
(1) call witnesses;
(2) issue subpoenas and subpoenas duces tecum;
(3) administer oaths;
(4) hear and resolve the question; and
(5) issue a final order.
(f) A final order of the board may be appealed to a district
court in McCulloch County. 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. 1059.115. POLICIES OR RULES ON INDIGENT HEALTH CARE. (a)
The district may adopt, amend, or repeal policies or rules
relating to indigent health care that include:
(1) eligibility of patients for indigent health care;
(2) application forms for patients or relatives of patients
requesting indigent health care that may require personal and
financial information to be furnished;
(3) procedures for obtaining and completing applications for
indigent health care and for filing the completed applications
with the district;
(4) procedures for reviewing applications to determine
eligibility for indigent health care; and
(5) other procedures provided by this section and Section
1059.116.
(b) The application procedure to determine eligibility for
indigent health care must be adopted not later than the beginning
of each operating year and must comply with Chapter 61, Health
and Safety Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.116. REIMBURSEMENT FOR SERVICES. (a) The board shall
require a county, municipality, or public hospital located
outside the district to reimburse the district for the district's
care and treatment of a sick or injured person of that county,
municipality, or public hospital as provided by Chapter 61,
Health and Safety Code.
(b) The board shall require the sheriff of McCulloch County to
reimburse the district for the district's care and treatment of a
person who is confined in a jail facility of McCulloch County and
is not a district resident.
(c) The board may contract with the state or federal government
for that government to reimburse the district for 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. 1059.117. AUTHORITY TO SUE AND BE SUED. (a) The board may
sue and be sued on behalf of the district.
(b) The district may assert any defense or counterclaim the
McCulloch County Hospital Authority could have asserted related
to any debt that was:
(1) incurred by the authority for hospital purposes; and
(2) assumed by the district on the district's creation.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 1059.151. BUDGET. (a) The district administrator shall
prepare a proposed annual budget for the district.
(b) The proposed budget must contain a complete financial
statement, including a statement of:
(1) the outstanding obligations of the district;
(2) the amount of cash on hand in each district fund;
(3) the amount of money received by the district from all
sources during the previous year;
(4) the amount of money available to the district from all
sources during the ensuing year;
(5) the amount of the balances expected at the end of the year
in which the budget is being prepared;
(6) the estimated amount of revenue and balances available to
cover the proposed budget; and
(7) the estimated tax rate required.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The
board shall hold a public hearing on the proposed annual budget.
(b) The board shall publish notice of the hearing in a newspaper
of general circulation in the district not later than the 10th
day before the date of the hearing.
(c) Any district resident 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 district
administrator. The board may make any changes in the proposed
budget that the board judges to be in the interests of the
taxpayers.
(e) The budget is effective only after adoption by the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.153. AMENDMENTS TO BUDGET. After adoption, the annual
budget may be amended on the board's approval.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.154. 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. 1059.155. FISCAL YEAR. (a) The district operates on a
fiscal year established by the board.
(b) The fiscal year may not be changed:
(1) when 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. 1059.156. 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. 1059.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT RECORDS.
The annual audit and other district records are open to
inspection during regular business hours at the district's
principal office.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.158. FINANCIAL REPORT. As soon as practicable after
the close of the fiscal year, the district administrator shall
prepare for the board:
(1) a sworn statement of the amount of district money; and
(2) an 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. 1059.159. DEPOSITORY. (a) The board shall select at least
one bank to serve as a depository for district money.
(b) District money, other than money invested as provided by
Section 1059.160(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 must remain
on deposit. This subsection does not limit the power of the
board to place a portion of district money on time deposit or to
purchase certificates of deposit.
(c) 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. 1059.160. SPENDING AND INVESTMENT RESTRICTIONS. (a)
Except as provided by Sections 1059.111, 1059.201, 1059.204, and
1059.205, the district may not incur a debt payable from district
revenue other than the revenue on hand or to be on hand in the
current and immediately 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. 1059.161. AUTHORITY TO BORROW MONEY. (a) The district may
borrow money for district operating expenses in an amount not to
exceed the amount of tax revenue the district expects to receive
during the 12-month period following the date the money is
borrowed.
(b) The district may pledge all or any part of that tax revenue
to repay the amount borrowed.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
SUBCHAPTER E. BONDS
Sec. 1059.201. GENERAL OBLIGATION BONDS. The board may issue
and sell general obligation bonds authorized by an election in
the name and on the faith and credit of the district to:
(1) purchase, construct, acquire, repair, or renovate buildings
or improvements;
(2) equip buildings or improvements for hospital purposes; or
(3) acquire and operate a mobile emergency medical or air
ambulance service.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the
time general obligation bonds are issued by the district under
Section 1059.201, 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 the
limit approved by the voters at the election authorizing the
imposition of the tax.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.203. 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 a bond election.
(c) The order calling the election must specify:
(1) the nature and date of the election;
(2) the hours during which the polls will be open;
(3) the location of polling places;
(4) the amount of the bonds to be authorized; and
(5) the maximum maturity of the bonds.
(d) Notice of a bond election shall be given as provided by
Section 1251.003, Government Code.
(e) The board shall declare the results of the bond election.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.204. REVENUE BONDS. (a) The board may issue revenue
bonds to:
(1) purchase, construct, acquire, repair, equip, or renovate
buildings or improvements for hospital purposes, including the
purposes described by Section 1059.107;
(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 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 lien 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 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. 1059.205. REFUNDING BONDS. (a) The board may issue
refunding bonds to refund outstanding indebtedness issued or
assumed by the district.
(b) A refunding bond may be:
(1) sold, with the proceeds of the refunding 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. 1059.206. MATURITY OF BONDS. District bonds must mature
not later than 50 years after the date of issuance.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.207. 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 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. 1059.208. 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. AD VALOREM TAX
Sec. 1059.251. IMPOSITION OF AD VALOREM TAX. (a) The board may
impose a tax on all property in the district subject to district
taxation.
(b) The tax may be used to pay:
(1) indebtedness issued or assumed by the district; and
(2) the maintenance and operating expenses of the district.
(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. 1059.252. TAX RATE. (a) The board may impose the tax at a
rate not to exceed the limit approved by the voters at the
election authorizing the imposition of the tax.
(b) The tax rate for all purposes may not exceed 75 cents on
each $100 valuation of all taxable property in the district.
(c) 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. 1059.253. TAX ASSESSOR-COLLECTOR. The board may provide
for the appointment of a tax assessor-collector for the district
or may contract for the assessment and collection of taxes as
provided by the Tax Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
SUBCHAPTER G. DISSOLUTION
Sec. 1059.301. DISSOLUTION; ELECTION. (a) The district may be
dissolved only on approval of a majority of the district voters
voting in an election held for that purpose.
(b) The board may order an election on the question of
dissolving the district and disposing of the district's assets
and obligations.
(c) The board shall order an election if the board receives a
petition requesting an election that is signed by a number of
district residents equal to at least 15 percent of the registered
voters in the district.
(d) The order calling the election must state:
(1) the nature of the election, including the proposition to
appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open; and
(4) the location of the polling places.
(e) Section 41.001(a), Election Code, does not apply to an
election ordered under this section.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.302. NOTICE OF ELECTION. (a) The board shall give
notice of an election under this subchapter by publishing once a
week for two consecutive weeks the election order in a newspaper
with general circulation in the district.
(b) The first publication of notice must appear not later than
the 35th day 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. 1059.303. BALLOT. The ballot for an election under this
subchapter must be printed to permit voting for or against the
proposition: "The dissolution of the McCulloch County Hospital
District."
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.304. ELECTION RESULTS. (a) If a majority of the
votes in an election under this subchapter favor dissolution, the
board shall find that the district is dissolved.
(b) If a majority of the votes in the election do not favor
dissolution, the board shall continue to administer the district
and another election on the question of dissolution may not be
held before the first anniversary of the date of the most recent
election to dissolve the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.305. TRANSFER OR ADMINISTRATION OF ASSETS. (a) If a
majority of the votes in the election held under this subchapter
favor dissolution, the board shall:
(1) transfer the land, buildings, improvements, equipment, and
other assets that belong to the district to McCulloch County or
another governmental entity in McCulloch County; or
(2) administer the property, assets, and debts until all money
has been disposed of and all district debts have been paid or
settled.
(b) If the district makes the transfer under Subsection (a)(1),
the county or entity assumes all debts and obligations of the
district at the time of the transfer, and the district is
dissolved.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.306. SALE OR TRANSFER OF ASSETS AND LIABILITIES. (a)
The district may not be dissolved unless the board provides for
the sale or transfer of the district's assets and liabilities to
another person.
(b) The dissolution of the district and the sale or transfer of
the district's assets or liabilities may not contravene a trust
indenture or bond resolution relating to the district's
outstanding bonds. The dissolution and sale or transfer does not
diminish or impair the rights of a holder of an outstanding bond,
warrant, or other obligation of the district.
(c) The sale or transfer of the district's assets and
liabilities must satisfy the debt and bond obligations of the
district in a manner that protects the interests of district
residents, including the residents' collective property rights in
the district's assets.
(d) The district may not transfer or dispose of the district's
assets except for due compensation unless:
(1) the transfer is made to another governmental entity that
serves the district; and
(2) the transferred assets are to be used for the benefit of
district 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.
Sec. 1059.307. IMPOSITION OF TAX AND RETURN OF SURPLUS TAXES.
(a) After the board finds that the district is dissolved, the
board shall:
(1) determine the debt owed by the district; and
(2) impose on the property included in the district's tax rolls
a tax that is in proportion of the debt to the property value.
(b) On the payment of all outstanding debts and obligations of
the district, the board shall order the secretary to return to
each district taxpayer the taxpayer's pro rata share of all
unused tax money.
(c) A taxpayer may request that the taxpayer's share of surplus
tax money be credited to the taxpayer's county taxes. If a
taxpayer requests the credit, the board shall direct the
secretary to transmit the money to the county tax
assessor-collector.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.
Sec. 1059.308. REPORT; DISSOLUTION ORDER. (a) After the
district has paid all district debts and has disposed of all
district money and other assets as prescribed by this subchapter,
the board shall file a written report with the Commissioners
Court of McCulloch County summarizing the board's actions in
dissolving the district.
(b) Not later than the 10th day after the date the Commissioners
Court of McCulloch County receives the report and determines that
the requirements of this subchapter have been fulfilled, the
commissioners court shall enter an order dissolving the district
and releasing the board from any further duty or obligation.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.02, eff. April 1, 2009.