2005 Texas Special Districts Code CHAPTER 1005. BAYLOR COUNTY HOSPITAL DISTRICT


SPECIAL DISTRICT LOCAL LAWS CODE
CHAPTER 1005. BAYLOR COUNTY HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
§ 1005.001. 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 Baylor County Hospital District. (4) "Hospital system" includes a hospital and an alternative delivery system of care created under Section 1005.107. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.002. AUTHORITY FOR OPERATION. The Baylor County Hospital District operates and is financed as provided by Section 9, Article IX, Texas Constitution, and by this chapter. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.003. ESSENTIAL PUBLIC FUNCTION. The district is a public entity performing an essential public function. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Baylor County, Texas, as those boundaries existed on September 1, 1989. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. The state may not become obligated for the support or maintenance of the district. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.006. 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 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007.
SUBCHAPTER B. DISTRICT ADMINISTRATION
§ 1005.051. BOARD. The district is governed by a board of seven directors. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.052. ELECTION; TERM. (a) Directors are elected from the district at large. (b) Unless a four-year term is established under Section 285.081, Health and Safety Code: (1) directors serve staggered two-year terms; and (2) an election shall be held on the first Saturday in May of each year to elect the appropriate number of directors. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.053. NOTICE OF ELECTION. At least 35 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 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.054. APPLICATION. (a) A person who wants to have the person's name printed on the ballot as a candidate for director must file with the secretary of the board a petition requesting that the person's name be printed on the ballot. (b) The petition must be signed by at least 10 registered voters of the district. (c) The application must be filed at least 31 days before the date of the election. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.055. QUALIFICATIONS FOR OFFICE. (a) To be a candidate for or to serve as a director, a person must be: (1) a resident of the district; and (2) a qualified voter. (b) An employee of the district or an employee's spouse, child, parent, or parent-in-law may not serve as director. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.056. BOARD VACANCY. If a vacancy occurs in the office of director, the Commissioners Court of Baylor County shall appoint a director for the unexpired term. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.057. 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 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.058. COMPENSATION. 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 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.059. VOTING REQUIREMENT. A concurrence of a majority of the directors voting is necessary in matters relating to district business. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.060. DISTRICT ADMINISTRATOR. (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 the compensation determined by the board. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.061. 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 and hospital system. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.062. APPOINTMENT AND RECRUITMENT OF STAFF. (a) The board may appoint to the staff any physicians the board considers necessary for the efficient operation of the district and may make temporary appointments as necessary. (b) The board may delegate to the district administrator the authority to make temporary appointments to the medical staff, with subsequent approval of the board. (c) The board may spend district money, including making guarantees and loans, to recruit physicians to the hospital staff as required to meet the medical needs of district residents. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.063. EMPLOYEES. (a) The district may employ physicians, technicians, nurses, fiscal agents, accountants, architects, attorneys, and other necessary employees. (b) The board may delegate to the district administrator the authority to employ persons for the district. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.064. HEALTH EDUCATION. The board may spend district money to provide scholarships and student loans to educate county residents in health-related fields. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.065. RETIREMENT BENEFITS. The board may provide retirement benefits for employees of the district and hospital system 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 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007.
SUBCHAPTER C. POWERS AND DUTIES
§ 1005.101. DISTRICT RESPONSIBILITY. The district has full responsibility for operating hospital facilities and for providing medical and hospital care for the district's needy residents, in accordance with district policy. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.102. RESTRICTION ON COUNTY AND MUNICIPAL TAXATION AND DEBT. Baylor County and the City of Seymour may not impose a tax or issue a bond or other obligation for hospital purposes or to provide medical care or other services the district provides to district residents. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the hospital system and the money and resources of the district. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.104. DISTRICT RULES. The board may adopt rules governing: (1) the operation of the hospital and hospital system; and (2) the duties, functions, and responsibilities of the district staff and employees. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.105. PURCHASING AND ACCOUNTING PROCEDURES. The board may prescribe: (1) the method of the making of purchases and expenditures by and for the district; and (2) accounting and control procedures for the district. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.106. MOBILE EMERGENCY MEDICAL SERVICE. The district may operate or provide for the operation of a mobile emergency medical service. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.107. ALTERNATIVE DELIVERY SYSTEMS OF CARE. The board may create alternative delivery systems of care, including: (1) nursing homes; (2) home health care agencies; (3) extended care facilities; (4) retirement villages; and (5) medical office buildings. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.108. 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 to furnish health care to district residents. (b) The board may: (1) acquire property, facilities, and equipment for the district for use in the hospital system; and (2) mortgage or pledge the property, facilities, or equipment acquired as security for the payment of the purchase price. (c) The board may lease the hospital system for the district. (d) The board may sell or otherwise dispose of property, facilities, or equipment for the district. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.109. CONSTRUCTION CONTRACTS. (a) The board may enter into construction contracts for the district. (b) The board may enter into a construction contract that involves spending more than $10,000 only after competitive bidding as provided by Chapter 271, Local Government Code. (c) Chapter 2253, Government Code, as it relates to performance and payment bonds, applies to a construction contract let by the district. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.110. OPERATING AND MANAGEMENT CONTRACTS. The board on behalf of the district may enter into operating or management contracts relating to the hospital system. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.111. SERVICE CONTRACTS. The board may contract with a political subdivision of the state or with a state or federal agency for the district to: (1) provide a mobile emergency medical service; or (2) provide for the investigatory or welfare needs of district residents. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.112. 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 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 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 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 writ of error. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.113. 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 lines, conduits, poles, or facilities, the district must bear the actual cost of that activity to provide comparable replacement without enhancement of facilities, after deducting the net salvage value derived from the old facility. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.114. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust for the purpose and under a written direction, limitation, or provision of the donor that is consistent with the proper management of the district. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.115. PAYMENT FOR TREATMENT; PROCEDURES. (a) When an individual 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; or (2) a relative of the patient who is legally responsible for the patient's support. (b) 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 acting on the board's behalf shall issue an order directing the patient or the relative to pay the district a specified amount each week or month. The amount must be based on the individual's ability to pay. (c) 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. The money must be collected in the manner provided by law for collection of expenses of the last illness of a deceased person. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.116. REIMBURSEMENT FOR SERVICES. (a) The board shall require a county, municipality, or public hospital located outside the boundaries 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 Baylor County to reimburse the district for the district's care and treatment of a person who is confined in a jail facility of Baylor 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. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.117. AUTHORITY TO SUE AND BE SUED. The board may sue and be sued on behalf of the district. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
§ 1005.151. 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 revenues and balances available for the proposed budget; and (7) the estimated tax rate required. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.152. 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 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 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 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.153. AMENDMENT OF BUDGET. After the budget is adopted, the budget may be amended on the board's approval. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.154. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the annual budget or an amendment to the budget. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.155. 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 that revenue bonds of the district are outstanding; or (2) more than once in a 24-month period. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.156. ANNUAL AUDIT. The board annually shall have an audit made of the financial condition of the district. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT RECORDS. The annual audit and other district records shall be open to inspection during regular business hours at the principal office of the district. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.158. FINANCIAL REPORT. As soon as practicable after the close of the fiscal year, the district administrator shall prepare for the board a sworn statement of the amount of district money and an account of the disbursements of that money. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.159. DEPOSITORY. (a) The board shall select one or more banks to serve as depository for district money. (b) District money, other than money invested as provided by Section 1005.161 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 power of the board to place a part 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 has first executed 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 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.160. AUTHORITY TO BORROW MONEY; SECURITY. (a) The board may borrow money if the board declares that there is an emergency because money is not available to meet authorized obligations of the district. (b) To secure a loan, the board may pledge: (1) district revenues that are not pledged to pay any bonded indebtedness of the district; (2) a district tax to be imposed by the district in the next 12-month period that is not pledged to pay the principal of or interest on district bonds; or (3) a district bond that has been authorized but not sold. (c) If a tax or bond is pledged to pay the loan, the loan shall mature not later than the first anniversary of the date the loan is made. If revenues of the district are pledged for payment of the loan, the loan shall mature not later than the fifth anniversary of the date the loan is made. (d) The district may not spend money obtained from a loan under this section for any purpose other than: (1) the purpose for which the board declared the emergency; or (2) if a tax or bond is pledged to pay the loan, the purpose for which the pledged tax was imposed or the pledged bond was authorized. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.161. RESTRICTION ON INVESTMENT. The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007.
SUBCHAPTER E. BONDS
§ 1005.201. 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) acquire, purchase, construct, repair, or renovate buildings or improvements; (2) equip buildings or improvements for hospital system purposes; or (3) acquire and operate a mobile emergency medical service. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1005.201, 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 tax the district imposes in any year may not exceed the limit approved by the voters at the election authorizing the imposition of the tax. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.203. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of voters voting at an election held for that purpose. (b) The board may order a general obligation bond election. The order calling the election must specify: (1) the nature and date of the election; (2) the hours during which the polls must be open; (3) the location of the polling places; (4) the amount of the bonds to be authorized; and (5) the maximum maturity of the bonds. (c) Notice of a bond election shall be given as provided by Section 1251.003, Government Code. (d) The board shall declare the results of the election. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.204. REVENUE BONDS. (a) The board may issue revenue bonds to: (1) acquire, purchase, construct, repair, renovate, or equip buildings or improvements for hospital system purposes; (2) acquire sites to be used for hospital system 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 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 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.205. MATURITY. District bonds must mature not later than 50 years after the date of issuance. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.206. 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. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.207. 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. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.208. REFUNDING BONDS. (a) The board may issue refunding bonds to refund outstanding indebtedness issued or assumed by the district. (b) Refunding bonds may be: (1) sold, with the proceeds of the refunding bonds applied to the payment of the bonds to be refunded; or (2) exchanged in whole or in part for not less than a similar principal amount of outstanding indebtedness. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007.
SUBCHAPTER F. AD VALOREM TAX
§ 1005.251. IMPOSITION OF 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 and the district's hospital system. (c) The district may not impose a tax to pay the principal of or interest on a revenue bond issued under this chapter. Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.252. TAX RATE. (a) The board may impose an annual 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 on all taxable property in the district for all purposes may not exceed 75 cents on each $100 assessed value of the property according to the most recent certified tax appraisal roll of 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 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007. § 1005.253. 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 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 2007.

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