Health and Safety Code
SUBTITLE D. HOSPITAL DISTRICTS
CHAPTER 281. HOSPITAL DISTRICTS IN COUNTIES OF AT LEAST 190,000
SUBCHAPTER A. CREATION OF DISTRICT
Sec. 281.001. Definitions.
In this chapter:
(1) "Board" means the board of hospital managers of a district.
(2) "District" means a hospital district created under this
chapter.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.002. District Authorization.
(a) A county with at least 190,000 inhabitants that does not
own or operate a hospital system for indigent or needy persons
may create a countywide hospital district and provide for the
establishment of a hospital or hospital system to furnish medical
aid and hospital care to indigent and needy persons residing in
the district.
(b) A county with at least 190,000 inhabitants that owns and
operates a hospital or hospital system for indigent or needy
persons, separately or jointly with a municipality, may create a
countywide hospital district and take over the hospital or
hospital system to furnish medical aid and hospital care to
indigent and needy persons residing in the district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.003. Creation Election Required.
(a) The district may be created only if the creation is
approved by a majority of the qualified voters of the county in
which the proposed district is to be located who vote at an
election called and held for that purpose.
(b) The commissioners court may order a creation election to be
held on its own motion and shall order the election on the
presentation of a petition for a creation election signed by at
least 100 qualified property taxpaying voters of the county.
(c) The election shall be held on the first authorized uniform
election date prescribed by the Election Code that allows
sufficient time to comply with other requirements of law.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.004. Ballot Propositions.
(a) Except as provided by Subsection (b), the ballot for an
election under this chapter shall be printed to provide for
voting for or against the proposition: "The creation of a
hospital district and the levy of a tax not to exceed 75 cents on
each $100 of the taxable value of property taxable by the
district."
(b) If the county or a municipality in the county has any
outstanding bonds issued for hospital purposes, the ballot for an
election under this chapter shall be printed to provide for
voting for or against the proposition: "The creation of a
hospital district, the levy of a tax not to exceed 75 cents on
each $100 of the taxable value of property taxable by the
district, and the assumption by the district of all outstanding
bonds previously issued for hospital purposes by ____________
County and by any municipality in the county."
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 281.021. Appointment of Board.
(a) The commissioners court of a county in which a district is
created under this chapter shall appoint a board of hospital
managers composed of not less than five or more than seven
members.
(b) The commissioners court of a county with a population of more
than 650,000 but less than 1.18 million in which a district is
created under this chapter shall appoint a board composed of not
less than five or more than 15 members.
(c) The Harris County Commissioners Court shall appoint a board
composed of not less than seven or more than nine members.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1991, 72nd Leg., ch. 597, Sec. 72, eff. Sept. 1,
1991.
Sec. 281.022. Term.
(a) A board member serves a two-year term, except that the
commissioners court may make some initial appointments for one
year in order to stagger terms.
(b) The members of the board of hospital managers of the Nueces
County Hospital District serve staggered three-year terms, with
as near as possible to one-third of the members' terms expiring
each year.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1995, 74th Leg., ch. 212, Sec. 1, eff. Sept. 1,
1995.
Sec. 281.023. Officers.
(a) The board shall elect from among its members:
(1) a chairman; and
(2) a vice-chairman to preside in the chairman's absence.
(b) The board shall appoint a board member or the administrator
to serve as secretary.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.024. Compensation.
A board member serves without compensation.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.025. Record of Board Meeting.
(a) The board shall require the secretary to keep a suitable
record of each board meeting.
(b) The presiding member shall read and sign the record after
the meeting, and the secretary shall attest to the record.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.026. Administrator; Duties.
(a) The board shall appoint a person qualified by training and
experience as the administrator for the district.
(b) The administrator serves at the will of the board and for
terms of not more than two years.
(c) The administrator is entitled to compensation as determined
by the board.
(d) Before assuming duties, the administrator shall execute a
bond payable to the district in the amount of not less than
$10,000, conditioned on the faithful performance of the
administrator's duties and any other requirements determined by
the board.
(e) Subject to the limitations prescribed by the board, the
administrator shall:
(1) perform duties required by the board;
(2) supervise the work and activities of the district; and
(3) generally direct the affairs of the district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.027. Assistant Administrator.
(a) If the administrator is incapacitated, absent, or unable to
perform the administrator's duties, the board may designate an
assistant administrator to perform any of the administrator's
powers or duties, subject to limitations prescribed by board
order.
(b) The assistant administrator or other persons shall execute
a bond as required by board order.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.028. Staff.
(a) The board may appoint doctors to the district's staff and
hire technicians, nurses, and other employees the board considers
advisable for the district's efficient operation.
(b) An employment contract of a person appointed or hired under
this section may not exceed four years.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1991, 72nd Leg., ch. 110, Sec. 1, eff. Aug. 26,
1991.
Sec. 281.029. Retirement Programs.
(a) With the approval of the commissioners court, the board may
contract with the state or the federal government as necessary to
establish or continue a retirement program for the benefit of
district employees.
(b) In addition to the retirement programs authorized by
Subsection (a), the board may establish a retirement program the
board considers necessary and advisable for the benefit of
district employees.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.030. Seal.
The board shall have a seal engraved with the district's name.
The seal shall be kept by the secretary and used to authenticate
the board's acts.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
SUBCHAPTER C. GENERAL POWERS AND DUTIES
Sec. 281.041. Transfer of County and Municipal Hospital Property and
Funds.
(a) On the creation of a district under this chapter and the
appointment and qualification of the district board, the county
owning the hospital or hospital system, or the county and
municipality jointly operating a hospital or hospital system,
shall execute and deliver to the district board a written
instrument conveying to the district the title to land,
buildings, and equipment jointly or separately owned by the
county and municipality and used to provide medical services or
hospital care, including geriatric care, to indigent or needy
persons of the county or municipality.
(b) On the creation of a district under this chapter and the
appointment and qualification of the district board, the county
owning the hospital or hospital system, or the county and
municipality jointly operating a hospital or hospital system,
shall, on the receipt of a certificate executed by the board's
chairman stating that a depository for the district has been
chosen and qualified, transfer to the district:
(1) all joint or separate county and municipal funds that are the
proceeds of any bonds assumed by the district under Section
281.044; and
(2) all unexpended joint or separate county and municipal funds
that have been established or appropriated by the county or
municipality to support and maintain the hospital facilities for
the year in which the district is created, to be used by the
district to operate and maintain those facilities for the
remainder of the year.
(c) Funds transferred to the district under this section may be
used only for a purpose for which the county or the municipality
that transferred the funds could lawfully have used the funds if
the funds had remained the property and funds of the county or
municipality.
(d) On the creation of the district, the board of managers of the
county or municipal hospital system shall continue to manage and
control the property and affairs of that system until the board
of the district is appointed and organized. At that time, the
county or municipal board of managers shall transfer to the
district board all county and municipal hospital system records,
property, and affairs and shall cease to exist.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.042. Return of Transferred Property to County or Municipality.
(a) The board by deed may transfer to the county or a
municipality any property that:
(1) was transferred to the district by that county or
municipality under Section 281.041; and
(2) the board considers is not and will not be useful for
the purposes for which the property was originally transferred
to the district.
(b) The transfer may be made on terms determined suitable by
the board and the commissioners court.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.043. Assumption of Contract Obligations.
On the creation of the district, the district assumes, without
prejudice to the rights of third parties, any outstanding
contract obligations legally incurred by the county or
municipality, or both, for the construction, support, or
maintenance of hospital facilities before the creation of the
district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.044. Assumption of Bonded Indebtedness; Cancellation of Unsold
Municipal or County Bonds.
(a) On the creation of the district, the district assumes:
(1) any outstanding bonded indebtedness incurred by the
county or municipality, or both, in the acquisition of land,
buildings, and equipment transferred to the district or in the
construction and equipping of hospital facilities; and
(2) any other outstanding bonds issued by the county or
municipality for hospital purposes, the proceeds of which are
in whole or in part unexpended.
(b) On the creation of the district, the county or a
municipality in the district that issued bonds for hospital
purposes is no longer liable for the payment of the bonds or for
providing interest and sinking fund requirements on those bonds.
(c) This section does not limit or affect the rights of a
bondholder against the county or municipality if there is a
default in payment of the principal or interest on the bonds in
accordance with their terms.
(d) If the issuance of bonds by the county or municipality, or
both, to provide hospital facilities was approved at a bond
election but the bonds have not been sold on the date on which
the hospital district is created under this chapter, the bond
authority is canceled and the county or municipality, or both,
may not sell the bonds.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.045. Limitation on Taxing Power by Governmental Entity;
Disposition of Delinquent Taxes.
(a) On or after the creation of the district, the county or a
municipality located in the district may not levy taxes for
hospital purposes.
(b) The county or a municipality located in the district that
collects delinquent taxes owed to the county or municipality on
levies for county and municipal hospital systems under
Chapter 265 shall pay the amount of the collected delinquent
taxes to the district, and the district shall apply that money to
the purposes for which the taxes were originally levied.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.046. District Responsibility for Medical Aid and Hospital Care.
Beginning on the date on which taxes are collected for the
district, the district assumes full responsibility for furnishing
medical and hospital care for indigent and needy persons residing
in the district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.0465. Nursing Services for School Districts.
A hospital district may contract with a school district
included in the hospital district to provide nursing services and
assistance to employees or students of the school district.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 38, eff. May 30,
1995.
Sec. 281.047. Management, Control, and Administration.
The board shall manage, control, and administer the hospital or
hospital system of the district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.048. District Rules.
The board may adopt rules governing the operation of the
hospital or hospital system.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.049. Purchasing and Accounting Methods and Procedures.
(a) The commissioners court may prescribe:
(1) the method of making purchases and expenditures by and
for the district; and
(2) accounting and control procedures for the district.
(b) The commissioners court by resolution or order may delegate
its powers under Subsection (a) to the board.
(c) A county officer, employee, or agent shall perform any
function or service required by the commissioners court under
this section.
(d) The district shall pay salaries and expenses necessarily
incurred by the county or by a county officer or agent in
performing a duty prescribed or required under this section.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.050. Powers Relating to District Property, Facilities, and
Equipment.
With the approval of the commissioners court, the board may
construct, condemn, acquire, lease, add to, maintain, operate,
develop, regulate, sell, exchange, and convey any property,
property right, equipment, hospital facility, or system to
maintain a hospital, building, or other facility or to provide a
service required by the district. Approval of the commissioners
court shall be required for the sale or lease of a hospital
facility regardless of the provisions of Section 285.051.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1997, 75th Leg., ch. 137, Sec. 1, eff. Sept. 1,
1997.
Sec. 281.051. Contracting Authority.
(a) With the approval of the commissioners court, the board
may, in performing its powers under Section 281.050, contract or
cooperate with:
(1) the federal government;
(2) this state;
(3) another governmental entity; or
(4) a privately owned or operated hospital.
(b) With the approval of the commissioners court, the board may
contract with:
(1) a county for care and treatment of the county's sick,
diseased, or injured persons; and
(2) this state or the federal government for care and
treatment of sick, diseased, or injured persons for whom the
state or federal government is responsible.
(c) The board shall encourage and promote participation by all
sectors of the business community, including small businesses and
businesses owned by members of a minority group or by women, in
the process by which the district enters into contracts. The
board shall develop a plan for the district to identify and
remove barriers that do not have a definite or objective
relationship to quality or competence and that unfairly
discriminate against small businesses and businesses owned by
members of a minority or by women. These barriers may include
contracting procedures and contract specifications or conditions.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1993, 73rd Leg., ch. 996, Sec. 1, eff. Aug. 30,
1993; Acts 1997, 75th Leg., ch. 137, Sec. 2, eff. Sept. 1, 1997.
Sec. 281.0515. Procedures for Health Maintenance Organization.
A district may establish a health maintenance organization in
accordance with the Texas Health Maintenance Organization Act
(Chapter 20A, Vernon's Texas Insurance Code) to provide or
arrange for health care services for the residents of the
district.
Added by Acts 1993, 73rd Leg., ch. 908, Sec. 2, eff. Aug. 30,
1993.
Sec. 281.0517. Integrated Health Care System.
(a) In this section:
(1) "Integrated health care system" means a nonprofit
corporation established and operated by a district and a
medical school to provide or arrange for comprehensive health
care services for residents of the district.
(2) "Provider" means a physician or a provider as defined
under Section 2, Texas Health Maintenance Organization Act
(Article 20A.02, Vernon's Texas Insurance Code).
(3) "Medical school" means a medical school governed by
Chapter 110, Education Code.
(b) The El Paso County Hospital District and a medical school
may establish and operate an integrated health care system.
(c) To provide or arrange for comprehensive health care
services, an integrated health care system created under this
section may:
(1) own, acquire, lease, or contract for all necessary
assets;
(2) enter into contracts with providers for the provision of
health care services directly or indirectly through
subcontract;
(3) provide or enter into a contract with an individual or
business entity under which the individual or entity provides
necessary management or administrative services for the system
and the system's providers;
(4) enter into a contract or other agreement with a business
or governmental entity under which the system is paid to
provide health care services; and
(5) enter into a fee-for-service, capitated, or risk-sharing
health care service arrangement.
(d) An integrated health care system that recites in its
articles of incorporation that it is created under this section
is:
(1) subject to:
(A) Chapter 551, Government Code;
(B) Chapter 552, Government Code;
(C) the Texas Health Maintenance Organization Act
(Chapter 20A, Vernon's Texas Insurance Code);
(D) Article 21.52F, Insurance Code; and
(E) Chapter 262, Local Government Code; and
(2) a unit of local government for the purposes of Chapter
101, Civil Practice and Remedies Code.
(e) Notwithstanding Subsection (d)(1)(A), an integrated health
care system created under this section may hold a closed meeting
to deliberate:
(1) pricing or financial planning relating to a bid or
negotiation for a contract to provide a service or product
line, if an open meeting would have a detrimental effect on the
position of the system in the bid or negotiation process; or
(2) a proposed new service or product line, if the meeting
is held before public announcement of the service or product
line.
(f) Notwithstanding Subsection (d)(1)(B), information relating
to the following is confidential and not subject to disclosure:
(1) pricing or financial planning relating to a bid or
negotiation for a contract to provide a service or product
line, if disclosure would have a detrimental effect on the
position of the integrated health care system in the bid or
negotiation process; or
(2) a proposed new service or product line, if disclosure is
requested before public announcement of the service or product
line.
(g) Subject to the requirements and limitations of the local
health care market, an integrated health care system created
under this section shall make reasonable efforts to include in
its provider group community providers other than the medical
school and a hospital of the El Paso County Hospital District.
Added by Acts 1997, 75th Leg., ch. 947, Sec. 1, eff. Sept. 1,
1997.
Sec. 281.052. County Authority to Sell, Lease, and Purchase Facilities for
District Purposes.
(a) The commissioners court of a county in which a district is
created under this chapter may sell real or personal property in
order to enter into a contract to:
(1) lease or rent buildings, land, facilities, equipment, or
services from others for district purposes;
(2) construct, repair, renovate, improve, or enlarge
buildings, land, facilities, or equipment for district
purposes; and
(3) pay regular monthly utility bills, including
electricity, gas, and water bills, for the leased or rented
buildings, land, facilities, equipment, or services.
(b) The commissioners court may pay for the facilities,
equipment, and services and for the regular monthly utility bills
for those facilities, equipment, and services from the county's
general fund if a majority of the commissioners court considers
the facilities, equipment, and services essential to the proper
administration of the county.
(c) A construction project under this section shall be let by
contract. The contract must contain the prevailing wage for
mechanics, laborers, and other persons employed in the project.
The Tarrant County Commissioners Court shall set the prevailing
wage in the amount set by the commissioners court for all
construction projects involving the expenditure of county funds.
(d) On or before the expiration of the lease or rental
contract, the county may purchase the facilities with county
general funds if a majority of the commissioners court considers
the purchase price reasonable.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.053. District Inspections.
(a) The district may be inspected by a representative of the
commissioners court, the Texas Board of Health, or the Texas
Department of Human Services.
(b) A district officer shall:
(1) admit an inspector into the district facilities; and
(2) on demand give the inspector access to records, reports,
books, papers, and accounts related to the district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.054. Eminent Domain.
(a) The district has the power of eminent domain to acquire any
interest in real, personal, or mixed property located in the
district if the property interest is necessary or convenient for
the exercise of the rights or authority 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, but the
district is not required to deposit with 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 give bond or other security for costs
in the trial court;
(2) give bond for the issuance of a temporary restraining
order or a temporary injunction; or
(3) give bond for costs or supersedeas on an appeal or writ
of error.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.055. Gifts and Endowments.
On behalf of the district, the board may accept gifts and
endowments to be held in trust and administered by the board for
the purposes and under the directions, limitations, or provisions
prescribed in writing by the donor that are consistent with the
proper management of the district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.056. Authority to Sue and be Sued; Legal Representation.
(a) The board may sue and be sued.
(b) The county attorney, district attorney, or criminal
district attorney, as appropriate, with the duty to represent the
county in civil matters shall represent the district in all legal
matters.
(c) The board may employ additional legal counsel when the
board determines that additional counsel is advisable.
(d) The district shall contribute sufficient funds to the
general fund of the county for the account of the budget of the
county attorney, district attorney, or criminal district
attorney, as appropriate, to pay all additional salaries and
expenses incurred by that officer in performing the duties
required by the district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.0565. Charitable Organizations.
(a) In this section, "charitable organization" means an
organization that is exempt from federal income tax under Section
501(a) of the Internal Revenue Code of 1986 by being listed as an
exempt organization in Section 501(c)(3) or 501(c)(4) of the
code.
(b) A district may create a charitable organization to
facilitate the management of a district health care program by
providing or arranging health care services, developing resources
for health care services, or providing ancillary support services
for the district.
(c) A charitable organization created by a district under this
section is a unit of local government for purposes of Chapter
101, Civil Practice and Remedies Code.
Added by Acts 1997, 75th Leg., ch. 104, Sec. 1, eff. Sept. 1,
1997.
Sec. 281.057. Employment of District Peace Officers.
(a) The board of the Dallas County Hospital District, the
Tarrant County Hospital District, or the Bexar County Hospital
District may employ and commission peace officers for the
district.
(b) A district peace officer may make an arrest if:
(1) the arrest is necessary to prevent or abate the
commission of a criminal offense and the offense or threatened
offense occurs on any land, easement, right-of-way, or other
property owned and controlled by the district; or
(2) the offense involves injury or harm to any property
owned or controlled by the district.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1991, 72nd Leg., ch. 853, Sec. 1, eff. Sept. 1,
1991.
SUBCHAPTER D. MEDICAL TREATMENT AND CARE
Sec. 281.071. Payment and Support.
(a) The administrator shall inquire into a patient's
circumstances and the circumstances of the patient's relatives
legally responsible for the patient's support if the patient is
admitted to district facilities from the county in which the
hospital is located. If the administrator finds that the patient
or the patient's relatives are liable for the patient's care and
treatment in whole or in part, the administrator shall issue an
order directing the patient or the patient's relatives to pay to
the district treasurer a specified amount each week in proportion
to the financial ability of the patient or the patient's
relatives to pay.
(b) A patient or the patient's relatives may not be required to
pay an amount greater than the actual per capita cost of
maintenance.
(c) An administrator may collect an amount owed under this
section from the estate of a patient, or the relatives legally
responsible for the patient's support, in the manner provided by
law for the collection of expenses of the last illness of a
deceased person.
(d) If the administrator finds that the patient and the patient's
relatives are not able to pay in whole or in part, the district
shall without charge supply the care and treatment to the
patient.
(e) A county court of the county in which a patient's hospital is
located shall hear and determine the ability of the patient or
the patient's relatives to pay under this section if there is a
dispute over this ability or if there is doubt in the mind of the
administrator over this ability. The court shall hear witnesses
and issue any order that may be proper.
(f) An appeal from an order of the county court must be made to a
district court in the county in which the district is located.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.072. Reimbursement for Services.
The board shall require reimbursement from a county,
municipality, or public hospital located outside the boundaries
of the district for the district's care and treatment of a sick,
diseased, or injured person of that county, municipality, or
public hospital as provided by Chapter 61 (Indigent Health Care
and Treatment Act).
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.073. Disposition of District Records.
(a) The preservation, microfilming, destruction, or other
disposition of the records of a district is subject to Subtitle
C, Title 6, Local Government Code.
(b) The period that medical records are retained shall be in
accordance with rules relating to the retention of medical
records adopted by the Texas Department of Health and with other
applicable federal and state laws and rules.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1991, 72nd Leg., ch. 14, Sec. 118, eff. Sept. 1,
1991.
SUBCHAPTER E. DISTRICT FINANCES
Sec. 281.091. Budget.
(a) The administrator shall prepare an annual budget under the
board's direction.
(b) The budget and budget revisions must be approved by the board
and then shall be presented to the commissioners court for final
approval.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.092. Administrator's Report.
(a) As soon as practicable after the close of the fiscal year,
the administrator shall make a report to the board, commissioners
court, Texas Board of Health, and comptroller.
(b) The report must:
(1) consist of a sworn statement of all money and choses in
action received by the administrator and their disposition; and
(2) show in detail the operations of the district for the
fiscal year.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.093. Depository.
(a) Not later than the 30th day after the appointment of the
board, the board shall:
(1) select a depository for district funds in the manner
provided by law for the selection of a county depository; or
(2) elect to use the depository previously selected by the
county.
(b) If the board selects a depository in accordance with
Subsection (a)(1), the depository shall serve as the district
depository for four years and until its successor is selected and
qualified.
(c) The board may extend any contract with a depository to the
next October and then select a depository for the following four
years.
(d) All income of the district shall be deposited in the
district depository.
(e) Warrants against district funds do not require the county
clerk's signature.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 1993, 73rd Leg., ch. 246, Sec. 1, eff. Aug. 30,
1993.
SUBCHAPTER F. DISTRICT BONDS
Sec. 281.101. General Obligation Bonds.
The commissioners court, in the district's name and on the
district's faith and credit, may issue and sell bonds to acquire,
construct, equip, or enlarge the hospital or hospital system.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.102. Bond Election.
(a) The district may not issue bonds, excluding refunding
bonds, unless the bonds are authorized by a majority of the
qualified voters of the district voting at an election called and
held for that purpose.
(b) The commissioners court may order a bond election on its
own motion or on the board's request.
(c) The election must be:
(1) called and held in accordance with Chapter 1, Title 22,
Revised Statutes; and
(2) conducted in the same manner as other countywide
elections.
(d) The district shall pay for the cost of the election and
shall provide for payment before the commissioners court orders
the election.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.103. Refunding Bonds.
(a) Refunding bonds of the district may be issued to refund and
pay any outstanding bonded indebtedness of the district,
including assumed bonded indebtedness.
(b) The refunding bonds must be issued in the manner provided
for other bonds of the district except that an election is not
required.
(c) The refunding bonds may be:
(1) sold and the proceeds applied to the payment of
outstanding bonds; or
(2) exchanged in whole or in part for not less than a
similar principal amount of the outstanding bonds plus the
unpaid, matured interest on those bonds.
(d) The average annual interest cost on the refunding bonds,
computed in accordance with recognized standard bond interest
cost tables, may not exceed the average annual interest cost so
computed on the bonds to be discharged out of the proceeds of the
refunding bonds, unless the total interest cost on the refunding
bonds, computed to their respective maturity dates, is less than
the total interest cost so computed on the bonds to be discharged
out of those proceeds. In those computations, any premium
required to be paid on the bonds to be refunded as a condition to
payment in advance of their stated maturity dates shall be taken
into account as an addition to the net interest cost to the
district of the refunding bonds.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.104. Execution of Bonds.
The county judge of the county in which the district is created
shall execute the bonds in the name of the district, and the
county clerk shall countersign the bonds.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 281.105. Approval and Registration of Bonds.
(a) District bonds are subject to the same requirements with
regard to approval by the attorney general and registration by
the comptroller as the law provides for approval and registration
of bonds issued by the county.
(b) The attorney general's approval of district bonds has the
same effect as that approval for other bonds issued by the
county.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
SUBCHAPTER G. TAXES TO PAY BONDS
Sec. 281.121. Taxes to Pay Bonds; Tax Assessment and Collection.
(a) When the district issues bonds under this chapter, the
commissioners court shall impose a tax for the benefit of the
district on all property subject to district taxation. The
commissioners court may impose the tax for the entire year in
which the district is created in order to finance initial
district operation and to pay bonds assumed by the district.
(b) The tax amount:
(1) must be sufficient to create an interest and sinking fund to
pay the principal of and interest on the bonds as they mature;
and
(2) may not exceed 75 cents on each $100 of the taxable value of
property taxable by the district.
(c) The proceeds of the tax may be used:
(1) to pay the interest on and create a sinking fund for bonds
that may be assumed or issued by the district for hospital
purposes in accordance with this chapter;
(2) to provide for the operation and maintenance of the hospital
or hospital system; and
(3) if requested by the board and approved by the commissioners
court, to make further improvements and additions to the hospital
system, including acquiring necessary sites by purchase, lease,
or condemnation.
(d) The county tax assessor-collector shall collect the tax.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989