    SPECIAL DISTRICT LOCAL LAWS CODE
    TITLE 3. HEALTH
    SUBTITLE A. HOSPITAL DISTRICTS
    CHAPTER 1040.  HASKELL COUNTY HOSPITAL DISTRICT
    SUBCHAPTER A.  GENERAL PROVISIONS
    Sec. 1040.001.  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 Haskell County Hospital District.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1040.002.  AUTHORITY FOR OPERATION.  The district operates in accordance with and has the powers and responsibilities provided by Section 9, Article IX, Texas Constitution.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1040.003.  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. 1040.004.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of Haskell County, except the district does not include any territory located in the Stamford Hospital District as the Stamford Hospital District existed on June 14, 1967.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1040.005.  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. 1040.051.  BOARD; TERM.  (a)  The board consists of six directors appointed by the Commissioners Court of Haskell County.(b)  Directors serve staggered two-year terms, with three directors appointed each year.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1040.052.  QUALIFICATIONS FOR OFFICE.  (a)  A person may not be appointed as a director unless the person  is a district resident.(b)  A person may not be appointed as a director if the person is:(1)  a district employee; or(2)  an employee of Haskell County.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.Amended by: Acts 2015, 84th Leg., R.S., Ch. 131 (H.B. 795), Sec. 1, eff. May 28, 2015.

    Sec. 1040.053.  BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF OFFICE.  (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)  Repealed by Acts 2015, 84th Leg., R.S., Ch. 131 , Sec. 7, eff. May 28, 2015.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.Amended by: Acts 2015, 84th Leg., R.S., Ch. 131 (H.B. 795), Sec. 7, eff. May 28, 2015.

    Sec. 1040.054.  OFFICERS.  The board shall elect from among its members a president, a vice 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. 1040.055.  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 entire board.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1040.056.  VOTING REQUIREMENT.  A concurrence of four 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. 1040.057.  EMPLOYEES.  The board may employ a general manager and other necessary professional and clerical personnel.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1040.058.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.  Except as provided by Section 1040.053, 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. 1040.059.  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. 1040.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for providing medical and hospital care 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. 1040.102.  RESTRICTION ON COUNTY OR MUNICIPALITY TAXATION.  Haskell County or a municipality in Haskell County may not impose a tax for hospital purposes.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1040.103.  MANAGEMENT AND CONTROL.  The management and control of the district is 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. 1040.104.  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. 1040.105.  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. 1040.106.  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, real, personal, or mixed, located in district territory, if the 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 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 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1040.107.  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 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1040.108.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient 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 it is determined 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 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 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'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)  Either party to the dispute may appeal the order 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. 1040.109.  AUTHORITY TO SUE AND BE SUED.  As a governmental agency, the district may sue and be sued in its own name in any court in 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. 1040.151.  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. 1040.152.  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 Haskell County not later than the 10th day before the date of the hearing.(c)  Any district resident 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.Amended by: Acts 2015, 84th Leg., R.S., Ch. 131 (H.B. 795), Sec. 2, eff. May 28, 2015.

    Sec. 1040.153.  FISCAL YEAR.  The district operates on a fiscal year established by the board.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.Amended by: Acts 2015, 84th Leg., R.S., Ch. 131 (H.B. 795), Sec. 3, eff. May 28, 2015.

    Sec. 1040.154.  ANNUAL AUDIT.  (a)  The board annually shall have an independent audit made of the district's books and records for the fiscal year.(b)  The audit shall be open to inspection during regular business hours  at the district's principal office.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.Amended by: Acts 2015, 84th Leg., R.S., Ch. 131 (H.B. 795), Sec. 4, eff. May 28, 2015.

    Sec. 1040.155.  DEPOSITORY OR TREASURER.  (a)  The board by resolution shall designate a bank or banks as the district's depository.(b)  All income received by the district shall be deposited with the district depository.(c)  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.Amended by: Acts 2015, 84th Leg., R.S., Ch. 131 (H.B. 795), Sec. 5, eff. May 28, 2015.

    SUBCHAPTER E.  BONDS
    Sec. 1040.201.  GENERAL OBLIGATION BONDS.  The board may issue and sell general obligation bonds in the name and on the faith and credit of the district for any purpose relating to:(1)  the purchase, construction, acquisition, repair, or renovation of buildings or improvements; and(2)  equipping 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. 1040.202.  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 by the district under Section 1040.201 as the bonds mature.(b)  The tax required by this section together with any maintenance and operation tax the district imposes may not in any year 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. 1040.203.  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 held for that purpose.(b)  The board may order the election on its own motion.(c)  The order calling the election must specify:(1)  the location of the polling places;(2)  the presiding election officers;(3)  the purpose of the bond issuance;(4)  the amount of the bonds to be authorized;(5)  the maximum interest rate of the bonds; and(6)  the maximum maturity date 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 Haskell 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. 1040.204.  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. 1040.205.  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. 1040.206.  REFUNDING BONDS.  (a)  The board may, without an election, issue refunding bonds in the manner provided by this subchapter to refund outstanding bonds 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 to be refunded; or(2)  exchanged wholly or partly for not less than a similar amount of the outstanding bonds and the unpaid matured interest on those bonds.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1040.207.  REVENUE BONDS.  (a)  The board may issue revenue bonds to:(1)  purchase, construct, acquire, repair, renovate, or equip buildings or improvements for hospitals and the hospital system; or(2)  acquire sites to be used for hospital purposes.(b)  The bonds must be payable from and secured by a pledge of all or part of the revenue derived from the operation of the district's hospital system.(c)  The bonds may be additionally secured by a mortgage or deed of trust on all or part of the district's property.(d)  The bonds must be issued in the manner and in accordance with the procedures and requirements prescribed 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 a county hospital authority.
    Added by Acts 2015, 84th Leg., R.S., Ch. 131 (H.B. 795), Sec. 6, eff. May 28, 2015.

    Sec. 1040.208.  ADDITIONAL MEANS OF SECURING REPAYMENT OF BONDS.  In addition to the authority to issue general obligation bonds and revenue bonds under this subchapter, the board may provide for the security and payment of district bonds from a pledge of a combination of ad valorem taxes as authorized by Section 1040.202 and revenue and other sources as authorized by Section 1040.207.
    Added by Acts 2015, 84th Leg., R.S., Ch. 131 (H.B. 795), Sec. 6, eff. May 28, 2015.

    Sec. 1040.209.  USE OF BOND PROCEEDS.  The district may use the proceeds of bonds issued under this subchapter to pay:(1)  any expense the board determines is reasonable and necessary to issue, sell, and deliver the bonds;(2)  interest payments on the bonds during a period of acquisition or construction of a project or facility to be provided through the bonds, not to exceed five years;(3)  costs related to the operation and maintenance of a project or facility to be provided through the bonds:(A)  during an estimated period of acquisition or construction, not to exceed five years; and(B)  for one year after the project or facility is acquired or constructed;(4)  costs related to the financing of the bond funds, including debt service reserve and contingency funds;(5)  costs related to the bond issuance;(6)  costs related to the acquisition of land or interests in land for a project or facility to be provided through the bonds; and(7)  construction costs of a project or facility to be provided through the bonds, including the payment of related professional services and expenses.
    Added by Acts 2015, 84th Leg., R.S., Ch. 131 (H.B. 795), Sec. 6, eff. May 28, 2015.

    SUBCHAPTER F.  TAXES
    Sec. 1040.251.  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 or assumed by the district for hospital purposes;(2)  provide for the operation and maintenance of the hospital or 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 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1040.252.  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. 1040.253.  TAX ASSESSOR-COLLECTOR.  The tax assessor-collector of Haskell 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.