    SPECIAL DISTRICT LOCAL LAWS CODE
    TITLE 3. HEALTH
    SUBTITLE A. HOSPITAL DISTRICTS
    CHAPTER 1006.  CAPROCK HOSPITAL DISTRICT
    SUBCHAPTER A.  GENERAL PROVISIONS
    Sec. 1006.001.  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 Caprock Hospital District.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.002.  AUTHORITY FOR CREATION.  The Caprock Hospital District is created under the authority of Section 9, Article IX, Texas Constitution.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.003.  ESSENTIAL PUBLIC FUNCTION.  The district performs an essential public function in carrying out the purposes of this chapter.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.004.  DISTRICT TERRITORY.  (a)  The boundaries of the district are coextensive with the boundaries of County Commissioners Precincts 1, 3, and 4 of Floyd County as those boundaries existed on January 1, 1963.(b)  Territory may not be annexed or added to the district.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION.  The support and maintenance of the district may not become a charge against or obligation of this state.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.006.  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 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    SUBCHAPTER B.  DISTRICT ADMINISTRATION
    Sec. 1006.051.  BOARD ELECTION; TERM.  (a)  The board consists of five directors elected from the district at large.(b)  Directors serve two-year staggered terms unless four-year terms are established under Section 285.081, Health and Safety Code.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.052.  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 Floyd County.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.053.  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's secretary a petition requesting that action.  The petition must be:(1)  signed by at least 25 qualified voters; and(2)  filed at least 25 days before the date of the election.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.054.  QUALIFICATIONS FOR OFFICE.  To be eligible to be elected or appointed as a director, a person must:(1)  be a resident of the district; and(2)  own land in the district subject to taxation.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.055.  DIRECTOR'S BOND; RECORD OF BOND AND OATH OR AFFIRMATION.  (a)  Each director shall execute a good and sufficient bond for $1,000 that is:(1)  payable to the district; and(2)  conditioned on the faithful performance of the director's duties.(b)  The bond and the constitutional oath or affirmation of office shall be deposited with the depository bank of the district.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.056.  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 issue an order requiring the directors to call an election.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.057.  OFFICERS.  The board shall elect from among its members a president and a secretary.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.058.  VOTING REQUIREMENT.  A concurrence of three directors is sufficient in any matter relating to district business.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.059.  DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR.  (a)  The board shall appoint a qualified person as a district administrator.(b)  The board may appoint an assistant to the district administrator.(c)  The district administrator and any assistant district administrator serves at the will of the board and is entitled to the compensation determined by the board.(d)  On assuming the duties of district administrator, the administrator shall execute a bond payable to the district in an amount of not less than $10,000 to be set by the board that:(1)  is conditioned on the administrator performing the administrator's duties; and(2)  contains any other condition the board may require.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.060.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.  The district administrator shall supervise the work and activities of the district subject to any limitation the board may prescribe.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.061.  EMPLOYEES.  The board may employ technicians, nurses, and other employees considered necessary for the efficient operation of the district or may delegate that authority to the district administrator.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.062.  RETIREMENT PROGRAM.  The board may enter into a contract or agreement with this state or the federal government to establish or continue a retirement program for the benefit of the district's employees.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    SUBCHAPTER C.  POWERS AND DUTIES
    Sec. 1006.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for:(1)  operating all hospital facilities for providing medical and hospital care to indigent persons in the district; and(2)  providing medical and hospital care for the district's needy residents.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.102.  RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT.  A political subdivision located in the district may not impose taxes or issue bonds or other obligations for hospital purposes for medical treatment of indigent persons.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  The board shall manage, control, and administer the district's hospitals and hospital system.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.104.  HOSPITAL SYSTEM.  The district shall provide for the establishment of a hospital or hospital system in the district 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 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.105.  RULES.  The board may adopt rules for the operation of the district and as required to administer this chapter.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.106.  PURCHASING AND ACCOUNTING PROCEDURES.  The board may prescribe:(1)  the method and manner of making purchases and expenditures by and for the district; and(2)  all accounting and control procedures.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.107.  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 interest is necessary or convenient for the district to exercise a power, right, or privilege conferred by this chapter.(b)  The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.108.  GIFTS AND ENDOWMENTS.  The board may accept for the district a gift or endowment to be held in trust and administered by the board 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 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.109.  CONTRACTS FOR SERVICES TO CERTAIN PERSONS.  (a)  The board may contract with a county or a municipality located outside the district for the care and treatment of sick or injured persons of that county or municipality.(b)  The board may contract with this state or a federal agency for the treatment of a sick or injured person for whom this state or the federal government is responsible.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.110.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When an individual who resides in the district is admitted to a district facility, the district administrator 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 the district administrator determines that the patient or those relatives cannot pay all or part of the costs of the patient's care and treatment, the amount of the costs that cannot be paid becomes a charge against the district.(c)  If the district administrator determines that the patient or those relatives can 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 the district a specified amount each week for the patient's support.  The amount ordered must be proportionate to financial ability and may not exceed the actual per capita cost of maintenance.(d)  The district administrator may collect the amount from the patient's estate, or from a 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 administrator, the board shall hold a hearing and, after calling witnesses, shall:(1)  resolve the dispute or doubt; and(2)  issue an appropriate order.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.111.  AUTHORITY TO SUE AND BE SUED.  The district, through the board, may sue and be sued.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    SUBCHAPTER D.  FINANCIAL ADMINISTRATION OF DISTRICT
    Sec. 1006.151.  BUDGET.  (a)  The district administrator shall prepare an annual budget for approval by the board.  The budget must be for the fiscal year prescribed by Section 1006.152.(b)  Not later than August 31 of each year, the board shall publish notice of a public hearing on the proposed budget.  The notice must be published one time in a newspaper of general circulation in the district at least 10 days before the date of the hearing.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.Amended by: Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 13.001, eff. September 1, 2007.

    Sec. 1006.152.  FISCAL YEAR.  The district operates on a fiscal year that begins on October 1 and ends on September 30.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.153.  AUDIT.  (a)  The district shall have an audit made of the district's financial condition.(b)  The audit shall be open to inspection at all times at the district's principal office.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.154.  FINANCIAL REPORT.  As soon as practicable after the close of each fiscal year, the district administrator shall prepare for the board:(1)  a complete sworn statement of all district money; and(2)  a complete account of the disbursements of that money.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.155.  DEPOSITORY.  (a)  The board shall select one or more banks in the district to serve as a depository for district money.(b)  All district money shall be immediately deposited on receipt with a depository bank, except that sufficient money must be remitted to the appropriate bank to pay the principal of and interest on the district's outstanding bonds on or before the maturity date of the principal and interest.(c)  To the extent that money in a depository bank is not insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by law for security of county funds.(d)  Membership on the district's board of an officer or director of a bank does not disqualify the bank from being designated as a depository bank.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.156.  BORROWING MONEY IN EMERGENCY; SECURITY.  (a)  The board may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time the loan is made if the board declares that:(1)  money is not available to meet authorized obligations of the district; and(2)  an emergency exists.(b)  To secure a loan, the board may pledge:(1)  district revenues that are not pledged to pay bonded indebtedness of the district;(2)  district taxes to be imposed by the district in the next 12-month period that are not pledged to pay the principal of or interest on district bonds; or(3)  district bonds that have been authorized but not sold.(c)  A loan for which taxes or bonds are pledged must mature not later than the first anniversary of the date the loan is made.  A loan for which district revenues are pledged must mature not later than the fifth anniversary of the date the loan is made.(d)  The board may not spend money obtained from a loan under this section for any purpose other than:(1)  the purpose for which the board declared an emergency; and(2)  if district taxes or bonds are pledged to pay the loan, the purpose for which the pledged taxes were imposed or the pledged bonds were authorized.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    SUBCHAPTER E.  BONDS
    Sec. 1006.201.  GENERAL OBLIGATION BONDS.  (a)  The board may issue and sell general obligation bonds in the name and on the faith and credit of the district to purchase, construct, acquire, repair, or renovate buildings or improvements and to equip buildings and improvements for a hospital and the hospital system.(b)  The board shall issue the bonds in compliance with the applicable provisions of Subtitles A and C, Title 9, Government Code.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.202.  TAXES TO PAY GENERAL OBLIGATION BONDS.  (a)  At the time general obligation bonds are issued under Section 1006.201, the board shall impose an ad valorem tax at a rate sufficient to:(1)  create an interest and sinking fund; and(2)  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 75 cents on each $100 assessed value of all taxable property in the district.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.Amended by: Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 13.002, eff. September 1, 2007.

    Sec. 1006.203.  GENERAL OBLIGATION BOND ELECTION.  (a)  The board 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 shall call the election.  The election must be held in accordance with Chapter 1251, Government Code.(c)  The bond election order must specify:(1)  the date of the election;(2)  the location of the polling places;(3)  the presiding election officers;(4)  the amount of the bonds to be authorized;(5)  the maximum interest rate of the bonds; and(6)  the maximum maturity of the bonds.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.204.  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 attest the bonds as provided by Chapter 618, Government Code.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.205.  REFUNDING BONDS.  (a)  The board may issue refunding bonds to refund outstanding general obligation bonds or other refundable indebtedness issued by the district.(b)  A refunding bond may be:(1)  sold, with the proceeds of the refunding bond applied to the payment of the bonds or other refundable indebtedness to be refunded; or(2)  exchanged in whole or in part for not less than a like principal amount of the bonds or other refundable indebtedness to be refunded.(c)  If a refunding bond is sold, the bond must be issued and the payments must be made in the manner provided by Subchapters B and C, Chapter 1207, Government Code.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.206.  BONDS EXEMPT FROM TAXATION.  The following are exempt from taxation by this state or a political subdivision of this state:(1)  bonds issued by the district;(2)  the transfer and issuance of the bonds; and(3)  the profit made in the sale of the bonds.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    SUBCHAPTER F.  TAXES
    Sec. 1006.251.  IMPOSITION OF AD VALOREM TAX.  (a)  The board shall impose a tax on all property subject to district taxation in the manner provided by law for county taxes.(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;(2)  provide for the operation and maintenance of the district and hospital system;(3)  make improvements and additions to the hospital system; and(4)  acquire necessary sites for the hospital system by purchase, lease, or condemnation.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.252.  TAX RATE.  The tax rate may not exceed 75 cents on each $100 assessed value of all taxable property.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.

    Sec. 1006.253.  TAX ASSESSOR-COLLECTOR.  (a)  The tax assessor-collector of Floyd County shall collect taxes imposed by the district and promptly transfer the money collected to the district depository.(b)  The assessor-collector shall receive the compensation provided for by contract with the district, except the compensation may not exceed the amount allowed for assessment and collection of county taxes.  The compensation shall be deposited in the county's general fund and reported as fees of office of the assessor-collector.
    Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.01, eff. April 1, 2007.