Bill Text: TX SB1920 | 2013-2014 | 83rd Legislature | Engrossed
Bill Title: Relating to the creation of the Hidalgo County Hospital District; granting the authority to impose a tax and issue bonds; granting the power of eminent domain.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Engrossed - Dead) 2013-05-17 - Referred to Special Purpose Districts [SB1920 Detail]
Download: Texas-2013-SB1920-Engrossed.html
| By: Hinojosa, Lucio | S.B. No. 1920 | |
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| relating to the creation of the Hidalgo County Hospital District; | ||
| granting the authority to impose a tax and issue bonds; granting the | ||
| power of eminent domain. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle A, Title 3, Special District Local Laws | ||
| Code, is amended by adding Chapter 1122 to read as follows: | ||
| CHAPTER 1122. HIDALGO COUNTY HOSPITAL DISTRICT | ||
| SUBCHAPTER A. GENERAL PROVISIONS | ||
| Sec. 1122.001. 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 Hidalgo County Hospital | ||
| District. | ||
| Sec. 1122.002. DISTRICT AUTHORIZATION. The Hidalgo County | ||
| Hospital District may be created and, if created, operates and is | ||
| financed as provided by Section 9, Article IX, Texas Constitution, | ||
| and by this chapter. | ||
| Sec. 1122.003. ESSENTIAL PUBLIC FUNCTION. The district is | ||
| a public entity performing an essential public function. | ||
| Sec. 1122.004. DISTRICT TERRITORY. The boundaries of the | ||
| district are coextensive with the boundaries of Hidalgo County. | ||
| Sec. 1122.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE | ||
| OBLIGATION. The state may not be obligated for the support or | ||
| maintenance of the district. | ||
| Sec. 1122.006. RESTRICTION ON STATE FINANCIAL ASSISTANCE. | ||
| The legislature may not make a direct appropriation for the | ||
| construction, maintenance, or improvement of a district facility. | ||
| SUBCHAPTER A-1. TEMPORARY PROVISIONS | ||
| Sec. 1122.021. CREATION ELECTION; ORDERING ELECTION. | ||
| (a) The district may be created and a tax may be authorized only if | ||
| the creation and the tax are approved by a majority of the | ||
| registered voters of the territory of the proposed district voting | ||
| at an election called and held for that purpose. | ||
| (b) The Hidalgo County Commissioners Court shall order an | ||
| election for the registered voters of Hidalgo County on the | ||
| question of creation of the Hidalgo County Hospital District if the | ||
| commissioners court receives a petition requesting an election that | ||
| is signed by at least 50 registered voters who are residents of | ||
| Hidalgo County. | ||
| (c) The order calling an election under this section must | ||
| state: | ||
| (1) the nature of the election, including the | ||
| proposition that is 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. | ||
| (d) Section 41.001(a), Election Code, does not apply to an | ||
| election ordered under this section. | ||
| (e) The Hidalgo County Commissioners Court shall give | ||
| notice of an election under this section by publishing a | ||
| substantial copy of the election order in a newspaper with general | ||
| circulation in Hidalgo County once a week for two consecutive | ||
| weeks. The first publication must appear not later than the 30th | ||
| day before the date set for the election. | ||
| (f) The ballot for an election under this section must be | ||
| printed to permit voting for or against the proposition: "The | ||
| creation of the Hidalgo County Hospital District, providing for the | ||
| imposition of an ad valorem tax at a rate not to exceed 75 cents on | ||
| each $100 valuation on all taxable property in the district." | ||
| (g) The Hidalgo County Commissioners Court shall find that | ||
| the Hidalgo County Hospital District is created if a majority of the | ||
| voters voting in the election held under this section favor the | ||
| creation of the district. | ||
| Sec. 1122.022. TEMPORARY DIRECTORS. (a) If the creation | ||
| of the district is approved at the election held under Section | ||
| 1122.021, the Hidalgo County Commissioners Court shall appoint five | ||
| temporary directors to represent the district at large. | ||
| (b) Temporary directors serve until the date of the next | ||
| regular election of directors that occurs after the date of the | ||
| election held under Section 1122.021 and that allows sufficient | ||
| time to comply with other requirements of law. | ||
| (c) A vacancy on the temporary board of directors shall be | ||
| filled by appointment by the Hidalgo County Commissioners Court. | ||
| (d) A person must be a qualified voter of the district to | ||
| serve as a temporary director. | ||
| (e) An employee of the district may not serve as a temporary | ||
| director. | ||
| Sec. 1122.023. TEMPORARY OFFICERS. (a) The temporary | ||
| board shall elect a president and a vice president from among the | ||
| temporary directors. | ||
| (b) The temporary board shall appoint a secretary, who need | ||
| not be a temporary director. | ||
| (c) The temporary board shall fill a vacancy in a board | ||
| office for the remainder of the unexpired term. | ||
| SUBCHAPTER B. DISTRICT ADMINISTRATION | ||
| Sec. 1122.051. BOARD ELECTION; TERM. (a) The board | ||
| consists of five directors elected at large. | ||
| (b) An election shall be held each year on an authorized | ||
| uniform election date to elect the appropriate number of directors. | ||
| (c) Directors serve staggered two-year terms. | ||
| Sec. 1122.052. NOTICE. Notice of the directors' election | ||
| shall be published at least once in a newspaper with general | ||
| circulation in the district in accordance with Section 4.003(a), | ||
| Election Code. | ||
| Sec. 1122.053. QUALIFICATION FOR OFFICE. (a) To be | ||
| eligible to hold office on the board, a person must be: | ||
| (1) a resident of the district; and | ||
| (2) a qualified voter. | ||
| (b) An administrator or an employee of the district may not | ||
| serve as a director. | ||
| Sec. 1122.054. DIRECTOR'S BOND. (a) Before assuming the | ||
| duties of office, each director must execute a bond in the amount of | ||
| $5,000 payable to the district and conditioned on the faithful | ||
| performance of the director's duties. | ||
| (b) The bond shall be kept in the permanent records of the | ||
| district. | ||
| (c) The board may pay for a director's bond with district | ||
| money. | ||
| Sec. 1122.055. BOARD VACANCY. If a vacancy occurs in the | ||
| office of director, the remaining directors shall appoint a | ||
| director for the remainder of the unexpired term. | ||
| Sec. 1122.056. OFFICERS. (a) The board shall elect a | ||
| president and a vice president from among the directors. | ||
| (b) The board shall appoint a secretary, who need not be a | ||
| director. | ||
| (c) Each officer of the board serves a one-year term. | ||
| (d) The board shall fill a vacancy in a board office for the | ||
| remainder of the unexpired term. | ||
| Sec. 1122.057. COMPENSATION; REIMBURSEMENT. 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. | ||
| Sec. 1122.058. VOTING REQUIREMENT. A concurrence of a | ||
| majority of the directors voting is necessary in matters relating | ||
| to district business. | ||
| Sec. 1122.059. DISTRICT ADMINISTRATOR; ADMINISTRATOR'S | ||
| BOND. (a) The board may appoint a qualified person as district | ||
| administrator. | ||
| (b) The district administrator serves at the will of the | ||
| board. | ||
| (c) The district administrator is entitled to compensation | ||
| determined by the board. | ||
| (d) Before assuming the duties of district administrator, | ||
| the administrator must execute a bond payable to the district in an | ||
| amount not less than $5,000, as determined by the board, | ||
| conditioned on the faithful performance of the administrator's | ||
| duties. | ||
| (e) The board may pay for the bond with district money. | ||
| Sec. 1122.060. 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. | ||
| Sec. 1122.061. ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY. | ||
| (a) The board may appoint qualified persons as assistant district | ||
| administrator and attorney for the district. | ||
| (b) The assistant district administrator and attorney for | ||
| the district serve at the will of the board. | ||
| (c) The assistant district administrator and attorney for | ||
| the district are entitled to compensation determined by the board. | ||
| Sec. 1122.062. EMPLOYEES. (a) The district may employ | ||
| nurses, technicians, fiscal agents, accountants, architects, | ||
| additional attorneys, and other necessary employees. | ||
| (b) The board may delegate to the district administrator the | ||
| authority to employ persons for the district. | ||
| Sec. 1122.063. RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES. | ||
| The board may spend district money, enter into agreements, and take | ||
| other necessary actions to recruit physicians and other persons to | ||
| serve as medical staff members or district employees. The actions | ||
| may include: | ||
| (1) advertising and marketing; | ||
| (2) paying travel, recruitment, and relocation | ||
| expenses; | ||
| (3) providing a loan or scholarship to a physician or a | ||
| person currently enrolled in health care education courses at an | ||
| institution of higher education who contracts to become a medical | ||
| staff member or district employee; or | ||
| (4) contracting with a full-time medical student or | ||
| other student in a health occupation who is enrolled in and in good | ||
| standing at an accredited medical school, college, or university to | ||
| pay the student's tuition or other expenses for the consideration | ||
| of the student agreeing to serve as an employee or independent | ||
| contractor for the district. | ||
| Sec. 1122.064. APPOINTMENT AND REMOVAL OF MEDICAL STAFF. | ||
| The board may: | ||
| (1) appoint to the medical staff any doctor the board | ||
| considers necessary for the efficient operation of the district; | ||
| (2) remove any doctor from the medical staff, after | ||
| due process, if the board considers the doctor's removal necessary | ||
| for the efficient operation of the district; and | ||
| (3) make temporary appointments to the medical staff | ||
| as the board considers necessary. | ||
| Sec. 1122.065. 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. | ||
| SUBCHAPTER C. POWERS AND DUTIES | ||
| Sec. 1122.101. DISTRICT RESPONSIBILITY. The district has | ||
| full responsibility for operating hospital facilities and | ||
| providing medical and hospital care for the district's needy | ||
| residents. | ||
| Sec. 1122.102. MANAGEMENT, CONTROL, AND ADMINISTRATION. | ||
| The board shall manage, control, and administer the hospital system | ||
| and the money and resources of the district. | ||
| Sec. 1122.103. 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. | ||
| Sec. 1122.104. 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. | ||
| Sec. 1122.105. PROVISION OF CERTAIN HEALTH SERVICES. | ||
| (a) The district may operate or provide for the operation of a | ||
| mobile emergency medical service. | ||
| (b) The district may operate or provide for home health | ||
| services, long-term care, skilled nursing care, intermediate | ||
| nursing care, or hospice care. | ||
| Sec. 1122.106. DISTRICT PROPERTY, FACILITIES, AND | ||
| EQUIPMENT. (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 board may: | ||
| (1) acquire property, facilities, and equipment for | ||
| the district for use in the hospital system; | ||
| (2) mortgage or pledge the property, facilities, or | ||
| equipment as security for payment of the purchase price; | ||
| (3) sell or otherwise dispose of property, facilities, | ||
| or equipment for the district; or | ||
| (4) lease hospital facilities for the district. | ||
| Sec. 1122.107. OPERATING AND MANAGEMENT CONTRACTS. The | ||
| board may enter into operating or management contracts relating to | ||
| hospital facilities for the district. | ||
| Sec. 1122.108. SERVICE CONTRACTS. (a) The board may | ||
| contract with a public or private hospital, a political subdivision | ||
| of the state, or a state or federal agency for the district to | ||
| provide a mobile emergency medical service or other health care | ||
| services needed to provide for the investigatory or welfare needs | ||
| of residents of the district. | ||
| (b) The board may contract with a person to receive or | ||
| supply the services the board considers necessary for the effective | ||
| operation of the district. | ||
| Sec. 1122.109. 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 | ||
| interest is necessary for the district to exercise the rights 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 that 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 provide bond or other security | ||
| for costs in the trial court; | ||
| (2) provide 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 petition for review. | ||
| Sec. 1122.110. COST OF RELOCATING OR ALTERING PROPERTY. In | ||
| exercising the power of eminent domain, if the board requires | ||
| relocating, raising, lowering, rerouting, changing the grade, 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 shall pay | ||
| the actual cost of that activity to provide a comparable | ||
| replacement, without enhancement of facilities, after deducting | ||
| the net salvage value derived from the old facility. | ||
| Sec. 1122.111. 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 provision in | ||
| writing by the donor that is consistent with the proper management | ||
| of the district. | ||
| Sec. 1122.112. PAYMENT FOR TREATMENT; PROCEDURES. | ||
| (a) When a person who resides in the district is admitted as a | ||
| patient to a district facility, the district administrator may have | ||
| an inquiry made into the financial circumstances of: | ||
| (1) the patient; and | ||
| (2) a relative of the patient who is legally | ||
| responsible for the patient's support. | ||
| (b) To the extent that the patient or a relative of the | ||
| patient who is legally responsible for the patient's support cannot | ||
| pay for care and treatment provided by the district, the district | ||
| shall supply the care and treatment without charging the patient or | ||
| the patient's relative. | ||
| (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 person'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 | ||
| legally responsible for the patient's support in the manner | ||
| provided by law for the collection of expenses in the last illness | ||
| of a deceased person. | ||
| (e) If there is a dispute relating to a person's ability to | ||
| pay or if the district administrator has any doubt concerning a | ||
| person's ability to pay, the board shall call witnesses, hear and | ||
| resolve the question, and issue a final order. The order may be | ||
| appealed to a district court in any county in which the district is | ||
| located. The substantial evidence rule applies to an appeal under | ||
| this subsection. | ||
| Sec. 1122.113. REIMBURSEMENT FOR SERVICES. (a) The board | ||
| shall require a county, municipality, or public hospital located | ||
| outside of the district to reimburse the district for the | ||
| district's care and treatment of a sick or injured person of that | ||
| county, municipality, or hospital, as provided by Chapter 61, | ||
| Health and Safety Code. | ||
| (b) The board shall require the sheriff of Hidalgo County to | ||
| reimburse the district for the district's care and treatment of a | ||
| person who is confined in a jail facility of Hidalgo County and is | ||
| not a resident of the district. | ||
| (c) On behalf of the district, 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. | ||
| Sec. 1122.114. NONPROFIT CORPORATION. (a) The district | ||
| may create and sponsor a nonprofit corporation under the Business | ||
| Organizations Code and may contribute money to or solicit money for | ||
| the corporation. | ||
| (b) A corporation created under this section may use money | ||
| contributed by the district only to provide health care or other | ||
| services the district is authorized to provide under this chapter. | ||
| (c) The corporation may invest the corporation's money in | ||
| any manner in which the district may invest the district's money, | ||
| including investing money as authorized by Chapter 2256, Government | ||
| Code. | ||
| (d) The board shall establish controls to ensure that the | ||
| corporation uses its money as required by this section. | ||
| Sec. 1122.115. LOANS AND GRANTS FOR ECONOMIC DEVELOPMENT | ||
| PURPOSES. Under the authority granted by Section 52-a, Article | ||
| III, Texas Constitution, the district may loan or grant money to any | ||
| person for the development of medical education and research in the | ||
| district. | ||
| Sec. 1122.116. AUTHORITY TO SUE AND BE SUED. The board may | ||
| sue and be sued on behalf of the district. | ||
| Sec. 1122.117. CONSTRUCTION CONTRACTS; ADVERTISING FOR | ||
| CERTAIN CONSTRUCTION CONTRACTS. (a) The board may enter into a | ||
| construction contract on the district's behalf. | ||
| (b) The board may enter into a construction contract only | ||
| after competitive bidding as provided by Subchapter B, Chapter 271, | ||
| Local Government Code, if the amount of the contract is greater than | ||
| the amount provided by Section 271.024 of that code. | ||
| SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS | ||
| Sec. 1122.151. 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 to the credit of each | ||
| fund of the district; | ||
| (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 revenues and balances | ||
| available to cover the proposed budget; and | ||
| (7) the estimated tax rate required. | ||
| Sec. 1122.152. NOTICE; HEARING; ADOPTION OF BUDGET. | ||
| (a) The board shall hold a public hearing on the proposed budget. | ||
| (b) The board shall publish notice of the hearing in a | ||
| newspaper with 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 a change in the proposed budget | ||
| that the board determines to be in the interests of the taxpayers. | ||
| (e) The budget is effective only after adoption by the | ||
| board. | ||
| Sec. 1122.153. AMENDMENT OF BUDGET. After the budget is | ||
| adopted, the budget may be amended on the board's approval. | ||
| Sec. 1122.154. FISCAL YEAR. (a) The district operates | ||
| according to a fiscal year established by the board. | ||
| (b) The fiscal year may not be changed: | ||
| (1) during a period in which revenue bonds of the | ||
| district are outstanding; or | ||
| (2) more than once in a 24-month period. | ||
| Sec. 1122.155. ANNUAL AUDIT. The board shall have an annual | ||
| audit made of the financial condition of the district. | ||
| Sec. 1122.156. INSPECTION OF ANNUAL AUDIT AND DISTRICT | ||
| RECORDS. The annual audit and other district records are open to | ||
| inspection during regular business hours at the principal office of | ||
| the district. | ||
| Sec. 1122.157. FINANCIAL REPORT. As soon as practicable | ||
| after the close of each fiscal year, the district administrator | ||
| shall prepare for the board a sworn statement of the amount of | ||
| district money and an account of the disbursement of that money. | ||
| Sec. 1122.158. SHORT-TERM FINANCING. The district may | ||
| borrow money through short-term financing. | ||
| Sec. 1122.159. DEBT LIMITATION. Except as provided by this | ||
| chapter and Chapter 1207, Government Code, the district may not | ||
| incur a debt payable from district revenue other than revenue | ||
| available in the current fiscal year and the immediately following | ||
| fiscal year of the district. | ||
| Sec. 1122.160. DEPOSITORY. (a) The board shall select at | ||
| least one bank to serve as a depository for district money. | ||
| (b) The board may solicit bids from local financial | ||
| institutions to determine which institution may serve as a | ||
| depository for district money. | ||
| (c) District money, other than money invested as provided by | ||
| Section 1122.161 and money transmitted to a bank for payment of | ||
| bonds or obligations issued or assumed by the district, shall be | ||
| deposited as received with the depository bank and shall remain on | ||
| deposit. This subsection does not limit the board's power to place | ||
| part of the district's money on time deposit or to purchase | ||
| certificates of deposit. | ||
| Sec. 1122.161. RESTRICTION ON INVESTMENT. The board may | ||
| invest operating, depreciation, or building reserves only in funds | ||
| or securities specified by Chapter 2256, Government Code. | ||
| SUBCHAPTER E. BONDS | ||
| Sec. 1122.201. GENERAL OBLIGATION BONDS. If authorized by | ||
| an election, the board may issue and sell general obligation bonds | ||
| 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 | ||
| service. | ||
| Sec. 1122.202. TAX TO PAY GENERAL OBLIGATION BONDS. | ||
| (a) At the time general obligation bonds are issued by the | ||
| district under Section 1122.201, the board shall impose an ad | ||
| valorem tax in an amount 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 | ||
| tax the district imposes in any year may not exceed the limit | ||
| approved by the voters at the election authorizing the imposition | ||
| of taxes. | ||
| Sec. 1122.203. GENERAL OBLIGATION BOND ELECTION. (a) The | ||
| district may issue general obligation bonds only if the bonds are | ||
| authorized by a majority of the voters voting in an election held | ||
| for that purpose. | ||
| (b) The board may order a bond election. 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 amounts of the bonds to be authorized; and | ||
| (5) the maximum maturity of the bonds. | ||
| (c) Notice of a bond election must be given as provided by | ||
| Chapter 1251, Government Code. | ||
| (d) The board shall declare the results of the election. | ||
| Sec. 1122.204. REVENUE BONDS. (a) The board may issue | ||
| revenue bonds to: | ||
| (1) acquire, purchase, construct, repair, renovate, | ||
| or equip buildings or improvements for hospital purposes; | ||
| (2) acquire sites to be used for hospital purposes; or | ||
| (3) acquire and operate a mobile emergency medical | ||
| 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 revenues 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 the district property. | ||
| (d) The bonds must be issued in the manner provided by | ||
| Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, | ||
| Health and Safety Code, for issuance of revenue bonds by county | ||
| hospital authorities. | ||
| Sec. 1122.205. MATURITY. District bonds must mature not | ||
| later than 40 years after the date of their issuance. | ||
| Sec. 1122.206. EXECUTION OF BONDS. (a) The board | ||
| president shall execute district bonds in the district's name. | ||
| (b) The board secretary shall countersign the bonds in the | ||
| manner provided by Chapter 618, Government Code. | ||
| Sec. 1122.207. BONDS NOT SUBJECT TO TAXATION. The | ||
| following are not subject to taxation by the state or by a political | ||
| subdivision of the state: | ||
| (1) bonds issued by the district; | ||
| (2) any transaction relating to the bonds; and | ||
| (3) profits made in the sale of the bonds. | ||
| SUBCHAPTER F. AD VALOREM TAX | ||
| Sec. 1122.251. IMPOSITION OF AD VALOREM TAX. (a) The | ||
| board shall impose a tax on all property in the district subject to | ||
| hospital 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. | ||
| Sec. 1122.252. TAX RATE. (a) The tax rate on all taxable | ||
| property in the district for all purposes may not exceed 75 cents on | ||
| each $100 valuation of the property according to the most recent | ||
| certified tax appraisal roll of the district. | ||
| (b) In setting the tax rate, the board shall consider | ||
| district income from sources other than taxation. | ||
| Sec. 1122.253. 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. | ||
| SUBCHAPTER G. DISSOLUTION | ||
| Sec. 1122.301. DISSOLUTION; ELECTION. (a) The district | ||
| may be dissolved only on approval of a majority of the 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 at least 15 | ||
| percent of the district's registered voters. | ||
| (d) The order calling the election must state: | ||
| (1) the nature of the election, including the | ||
| proposition that is 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. | ||
| Sec. 1122.302. NOTICE OF ELECTION. (a) The board shall | ||
| give notice of an election under this subchapter by publishing a | ||
| substantial copy of the election order in a newspaper with general | ||
| circulation in the district once a week for two consecutive weeks. | ||
| (b) The first publication must appear not later than the | ||
| 30th day before the date set for the election. | ||
| Sec. 1122.303. BALLOT. The ballot for an election under | ||
| this subchapter must be printed to permit voting for or against the | ||
| proposition: "The dissolution of the Hidalgo County Hospital | ||
| District." | ||
| Sec. 1122.304. ELECTION RESULTS. (a) If a majority of the | ||
| votes in an election under this subchapter favor dissolution, the | ||
| board shall order that the district be dissolved. | ||
| (b) If a majority of the votes in an election under this | ||
| subchapter 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. | ||
| Sec. 1122.305. TRANSFER OR ADMINISTRATION OF ASSETS. | ||
| (a) If a majority of the votes in an election under this subchapter | ||
| favor dissolution, the board shall: | ||
| (1) transfer the land, buildings, improvements, | ||
| equipment, and other assets belonging to the district to Hidalgo | ||
| County or another governmental entity in Hidalgo County; or | ||
| (2) administer the property, assets, and debts of the | ||
| district until all money has been disposed of and all district debts | ||
| have been paid or settled. | ||
| (b) If the board 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. | ||
| (c) If Subsection (a)(1) does not apply and the board | ||
| administers the property, assets, and debts of the district under | ||
| Subsection (a)(2), the district is dissolved when all money has | ||
| been disposed of and all district debts have been paid or settled. | ||
| Sec. 1122.306. IMPOSITION OF TAX AND RETURN OF SURPLUS | ||
| TAXES. (a) After the board determines 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 funds to the tax assessor-collector for Hidalgo | ||
| County. | ||
| Sec. 1122.307. REPORT; DISSOLUTION ORDER. (a) After the | ||
| district has paid all its debts and has disposed of all its money | ||
| and other assets as prescribed by this subchapter, the board shall | ||
| file a written report with the Hidalgo County Commissioners Court | ||
| summarizing the board's actions in dissolving the district. | ||
| (b) Not later than the 10th day after the date the Hidalgo | ||
| County Commissioners Court 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. | ||
| SECTION 2. (a) The members of the board of directors of the | ||
| Hidalgo County Hospital District elected at the first election held | ||
| under Section 1122.051, Special District Local Laws Code, as added | ||
| by this Act, shall draw lots to determine which three directors | ||
| serve a two-year term and which two directors serve a one-year term. | ||
| (b) Successor directors shall serve two-year terms. | ||
| SECTION 3. Proof of publication of the notice required in | ||
| the enactment of this Act under the provisions of Section 9, Article | ||
| IX, Texas Constitution, has been made in the manner and form | ||
| provided by law pertaining to the enactment of local and special | ||
| laws, and the notice is found and declared proper and sufficient to | ||
| satisfy the requirement. | ||
| SECTION 4. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2013. | ||
