    SPECIAL DISTRICT LOCAL LAWS CODE
    TITLE 3. HEALTH
    SUBTITLE A. HOSPITAL DISTRICTS
    CHAPTER 1065. MOTLEY COUNTY HOSPITAL DISTRICT
    SUBCHAPTER A. GENERAL PROVISIONS
    Sec. 1065.001.  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 Motley County Hospital District.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.002.  AUTHORITY FOR OPERATION.  The district operates in accordance with Section 9, Article IX, Texas Constitution. The district has the rights, powers, and duties provided by this chapter.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.003.  POLITICAL SUBDIVISION.  The district is a political subdivision of this state.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.004.  DISTRICT TERRITORY.  The boundaries of the district are identical with the boundaries of Motley County, Texas.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.005.  CORRECTION OF INVALID PROCEDURES.  If a court holds that any procedure under this chapter violates the constitution of this state or of the United States, the district by resolution may provide an alternative procedure that conforms with the constitution.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    SUBCHAPTER B. DISTRICT ADMINISTRATION
    Sec. 1065.051.  BOARD ELECTION; TERM.  (a)  The board consists of five directors elected from the district at large.(b)  Directors serve staggered two-year terms unless four-year terms are established under Section 285.081, Health and Safety Code.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.052.  NOTICE OF ELECTION.  At least 10 days before the date of an election of directors, notice of the election shall be published one time in a newspaper of general circulation in Motley County.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.053.  BALLOT PETITION.  A person who wants to have the person's name printed on the ballot as a candidate for director must file with the board secretary a petition requesting that action.  The petition must be:(1)  signed by not less than five registered voters; and(2)  filed at least 25 days before the date of the election.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.054.  QUALIFICATIONS FOR OFFICE.  A director must:(1)  be a district resident;(2)  own land in the district subject to taxation; and(3)  be at least 18 years of age when appointed or elected.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.055.  BOND NOT REQUIRED.  A director is not required to post a public official's bond.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.056.  BOARD VACANCY.  (a)  If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term.(b)  If the number of directors is reduced to fewer than three for any reason, the remaining directors shall immediately call a special election to fill the vacancies.  If the remaining directors do not call the election, a district court, on application of a district voter or taxpayer, may order the directors to hold the election.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.057.  OFFICERS.  The board shall elect from among its members a president and a secretary.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.058.  COMPENSATION; EXPENSES.  A director serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties on approval of the expenses by the board.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.059.  VOTING REQUIREMENT.  A concurrence of three directors is sufficient in any matter relating to district business.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.060.  EMPLOYEES.  The board may employ a general manager, attorney, bookkeeper, and architect and any other employees considered necessary for the efficient operation of the district.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.061.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.  All district records, including books, accounts, notices, minutes, and all other matters of the district and the operation of its facilities, shall be:(1)  maintained at the district office; and(2)  open to public inspection at the district office at all reasonable hours.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.062.  SEAL.  The board may adopt a seal for the district.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    SUBCHAPTER C.  POWERS AND DUTIES
    Sec. 1065.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for providing medical and hospital care for the district's needy inhabitants and for the district's needy and indigent residents.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.102.  RESTRICTION ON COUNTY OR MUNICIPALITY TAXATION.  Motley County or a municipality in the district may not impose a tax on property in the district for hospital purposes.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.103.  MANAGEMENT AND CONTROL.  The management and control of the district are vested in the board.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.104.  HOSPITAL SYSTEM.  The district shall provide for the establishment of a hospital system to provide medical and hospital care to the district's residents by:(1)  purchasing, constructing, acquiring, repairing, or renovating buildings and improvements;(2)  equipping the buildings and improvements; and(3)  administering the buildings and improvements for hospital purposes.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.105.  RULES.  (a)  The board may adopt rules governing the operation of the district, including district facilities.(b)  On approval by the board, the rules may be published in booklet form at district expense and made available to any taxpayer on request.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.106.  PURCHASING AND ACCOUNTING PROCEDURES.  (a)  The board may prescribe the method and manner of making purchases and expenditures by and for the district.(b)  The board shall prescribe:(1)  all accounting and control procedures; and(2)  the method of purchasing necessary supplies, materials, and equipment.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.107.  DISTRICT PROPERTY AND FACILITIES.  (a)  The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system.  Nothing here prohibits the establishing and equipping of a clinic as part of the hospital system.(b)  The board may lease all or part of the district's buildings and other facilities on terms considered to be in the best interest of the district's inhabitants.  The term of the lease may not exceed 25 years.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.108.  EMINENT DOMAIN.  (a)  The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property located in district territory if the property interest is necessary or convenient for the district to exercise a right, power, privilege, or function conferred on the district by this chapter.(b)  The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, except the district is not required to deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code.(c)  In a condemnation proceeding brought by the district, the district is not required to:(1)  pay in advance or provide a bond or other security for costs in the trial court;(2)  provide a bond for the issuance of a temporary restraining order or a temporary injunction; or(3)  provide a bond for costs or a supersedeas bond on an appeal or writ of error.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.109.  GIFTS AND ENDOWMENTS.  The board may accept for the district a gift or endowment for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.110.  OPERATING AND MANAGEMENT CONTRACTS.  The board may enter into an operating or management contract relating to a district facility.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.111.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient who resides in the district is admitted to a district facility, the board shall have an inquiry made into the circumstances of:(1)  the patient; and(2)  the patient's relatives who are legally liable for the patient's support.(b)  If an agent designated by the district to handle the inquiry determines that the patient or those relatives cannot pay all or part of the costs of the care and treatment in the hospital, the amount of the costs that cannot be paid becomes a charge against the district.(c)  If the board determines that the patient or those relatives are liable to pay for all or part of the costs of the patient's care and treatment, the patient or those relatives shall be ordered to pay to the district's treasurer a specified amount each week for the patient's support.  The amount ordered must be proportionate to the person's financial ability and may not exceed the actual per capita cost of maintenance.(d)  The district may collect the amount from the patient's estate, or from any relative who is legally liable for the patient's support, in the manner provided by law for the collection of expenses of the last illness of a deceased person.(e)  If there is a dispute as to the ability to pay, or doubt in the mind of the district's designated agent, the board shall hold a hearing and, after calling witnesses, shall:(1)  resolve the dispute or doubt; and(2)  issue an appropriate order.(f)  The order may be appealed to the district court.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.112.  AUTHORITY TO SUE AND BE SUED.  As a governmental agency, the district may sue and be sued in its own name in any court of this state.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
    Sec. 1065.151.  BUDGET.  The board annually shall require a budget to be prepared for the next fiscal year that includes:(1)  proposed expenditures and disbursements;(2)  estimated receipts and collections; and(3)  the amount of taxes required to be imposed for the year.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.152.  PROPOSED BUDGET:  NOTICE AND HEARING.  (a)  The board shall hold a public hearing on the proposed budget.(b)  Notice of the hearing must be published at least once in a newspaper of general circulation in Motley County not later than the 10th day before the date of the hearing.(c)  Any district taxpayer is entitled to:(1)  appear at the time and place designated in the notice; and(2)  be heard regarding any item included in the proposed budget.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.153.  FISCAL YEAR.  The district operates on a fiscal year that begins on October 1 and ends on September 30.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.154.  ANNUAL AUDIT.  The board annually shall have an independent audit made of the district's books and records.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.155.  DEPOSITORY OR TREASURER.  (a)  The board by resolution shall designate a bank or banks in Motley County as the district's depository or treasurer.  A designated bank serves for two years and until a successor is designated.(b)  All district money shall be secured in the manner provided for securing county funds.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    SUBCHAPTER E. BONDS
    Sec. 1065.201.  GENERAL OBLIGATION BONDS.  The board may issue and sell general obligation bonds in the name and on the faith of the district for any purpose relating to:(1)  the purchase, construction, acquisition, repair, or renovation of buildings or improvements; and(2)  equipping buildings or improvements for hospital purposes.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  The board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on general obligation bonds issued under Section 1065.201 as the bonds mature.(b)  The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed 75 cents on each $100 valuation of taxable property in the district.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.203.  GENERAL OBLIGATION BOND ELECTION.  (a)  The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election.(b)  The board may call the election on its own motion.(c)  The order calling the election must specify:(1)  the date of the election;(2)  the location of the polling places;(3)  the presiding election officers;(4)  the purpose of the bond issuance;(5)  the amount of the bonds to be authorized;(6)  the maximum interest rate of the bonds; and(7)  the maximum maturity of the bonds.(d)  Notice of a bond election shall be given by publishing a substantial copy of the order calling the election in a newspaper of general circulation in Motley County once each week for two consecutive weeks before the date of the election.  The first publication must occur at least 14 days before the date of the election.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.204.  MATURITY OF GENERAL OBLIGATION BONDS.  District general obligation bonds must mature not later than 40 years after the date of issuance.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.205.  EXECUTION OF GENERAL OBLIGATION BONDS.  (a)  The board president shall execute the general obligation bonds in the district's name.(b)  The board secretary shall countersign the bonds.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.206.  REVENUE OR SPECIAL OBLIGATION BONDS.  (a)  The board may issue and sell revenue or special obligation bonds for the purposes provided by Section 1065.201.(b)  Special obligation bonds must be payable from the revenue of the district's entire hospital system, including that portion originally acquired and all past or future extensions, additions, or replacements, excluding taxes, after deducting the cost of maintaining and operating the system.  For purposes of this subsection, the cost of maintaining and operating the system:(1)  may include only the items set forth and defined in the resolution authorizing the bond issuance; and(2)  may not include the cost of providing medical or hospital care for the district's needy inhabitants. (c)  A cost described by Subsection (b)(2) is a maintenance and operating expense for budget and tax purposes.(d)  The district may issue revenue bonds without an election.(e)  Revenue bonds may be additionally secured by:(1)  a mortgage or deed of trust on real property;(2)  a chattel mortgage on the district's personal property; or(3)  both.(f)  The board may issue bonds that are a junior lien on the district's net revenue or property and additional parity bonds under conditions specified in the bond resolution or trust indenture.(g)  Money for the payment of not more than two years' interest on the bonds and an amount the board estimates will be required for maintenance and operating expenses during the first two years of operation may be set aside out of the proceeds from the sale of the bonds.(h)  A revenue bond issued by the district must contain the provision:  "The holder of the bond may not demand payment of this bond or appurtenant coupons out of money raised or to be raised by taxation."
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.207.  CHARGES FOR SERVICES RENDERED.  If the board issues revenue bonds, the board shall charge and collect rates for services rendered by the hospital system that are sufficient to:(1)  pay the maintenance and operating expenses described by Section 1065.206;(2)  pay the principal of and interest on the bonds as each becomes due; and(3)  create and maintain a bond reserve fund and other funds as provided in the bond resolution or trust indenture.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    SUBCHAPTER F.  TAXES
    Sec. 1065.251.  IMPOSITION OF AD VALOREM TAX.  (a)  On final approval of the annual budget, the board shall impose a tax on all property in the district subject to district taxation.(b)  The board shall impose the tax to:(1)  pay the interest on and create a sinking fund for bonds issued by the district for hospital purposes; and(2)  provide for the maintenance and operation of the district and hospital system.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.252.  TAX RATE.  The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of all taxable property in the district.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1065.253.  TAX ASSESSOR-COLLECTOR.  The tax assessor-collector of Motley County shall assess and collect taxes imposed by the district.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.