SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 3. HEALTH

SUBTITLE A. HOSPITAL DISTRICTS

CHAPTER 1067.  MUENSTER HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1067.001.  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 Muenster Hospital District.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.002.  AUTHORITY FOR CREATION.  The Muenster Hospital District is created under the authority of Section 9, Article IX, Texas Constitution.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.003.  ESSENTIAL PUBLIC FUNCTION.  The district performs an essential public function in carrying out the purposes of this chapter.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.004.  DISTRICT TERRITORY.  The district is composed of the territory described by Section 2a, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.005.  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 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.006.  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 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1067.051.  BOARD ELECTION; TERM.  (a)  The district consists of seven elected directors.
(b)  Directors serve staggered three-year terms.
(c)  An election shall be held on the uniform election date in May of each year to elect the appropriate number of directors.
(d)  The election order must state the time, place, and purpose of the election.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.
Amended by: 
Acts 2019, 86th Leg., R.S., Ch. 221 (H.B. 886), Sec. 1, eff. May 25, 2019.

Sec. 1067.052.  NOTICE OF ELECTION.  Notice of an election of directors shall be published one time in a newspaper of general circulation in the area of the district in accordance with Section 4.003(a)(1), Election Code.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.053.  QUALIFICATIONS FOR OFFICE.  (a)  To be eligible to serve as a director, a person must be:
(1)  a resident of the district; and
(2)  a qualified voter.
(b)  A district employee may not serve as a director.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.054.  BOARD VACANCY.  If a vacancy occurs in the office of director, the remaining directors by majority vote shall appoint a director for the unexpired term.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.055.  OFFICERS.  (a)  The board shall elect one of the directors as president and one director as vice president-secretary.
(b)  The vice president-secretary shall act as a secretary of the board.
(c)  Each officer serves for a term of one year.
(d)  The president has the same right to vote as any other director.
(e)  If the president is absent or fails and declines to act, the vice president-secretary shall perform the president's duties and exercise the president's powers under this chapter.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.
Amended by: 
Acts 2019, 86th Leg., R.S., Ch. 221 (H.B. 886), Sec. 2, eff. May 25, 2019.

Sec. 1067.056.  COMPENSATION; EXPENSES.  A director is not entitled to compensation but is entitled to reimbursement for actual expenses incurred in attending to district business.  The expenses must be:
(1)  reported in the district's records; and
(2)  approved by the remainder of the board.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.057.  CHIEF EXECUTIVE OFFICER; ASSISTANT TO CHIEF EXECUTIVE OFFICER.  (a)  The board shall appoint a qualified person to be known as the chief executive officer of the district.
(b)  The board may appoint an assistant to the chief executive officer.
(c)  The chief executive officer and any assistant to the chief executive officer serve at the will of the board and are entitled to the compensation determined by the board.
(d)  The board may require the chief executive officer, before assuming the chief executive officer's duties, to execute a bond payable to the district in an amount set by the board of not less than $5,000 that:
(1)  is conditioned on the faithful performance of the chief executive officer's duties; and
(2)  contains other conditions the board may require.
(e)  The board may pay for the bond with district money.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.
Amended by: 
Acts 2019, 86th Leg., R.S., Ch. 221 (H.B. 886), Sec. 3, eff. May 25, 2019.
Acts 2019, 86th Leg., R.S., Ch. 221 (H.B. 886), Sec. 4, eff. May 25, 2019.

Sec. 1067.058.  GENERAL DUTIES OF CHIEF EXECUTIVE OFFICER.  Subject to the limitations prescribed by the board, the chief executive officer shall:
(1)  supervise the work and activities of the hospital; and
(2)  direct the affairs of the district.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.
Amended by: 
Acts 2019, 86th Leg., R.S., Ch. 221 (H.B. 886), Sec. 5, eff. May 25, 2019.

Sec. 1067.059.  APPOINTMENT AND RECRUITMENT OF STAFF AND EMPLOYEES.  (a)  The board, with the chief executive officer, may appoint to the staff any doctors the board considers necessary for the efficient operation of the district.
(b)  The board may employ technicians, nurses, and other employees as considered necessary for the efficient operation of the hospital or may provide that the chief executive officer has the authority to admit or employ those persons.
(c)  The board may spend district money to recruit physicians, nurses, and other trained medical personnel.  The board may pay the tuition or other expenses of a full-time medical student or other student in a health occupation who:
(1)  is enrolled in and is in good standing at an accredited medical school, college, or university; and
(2)  contractually agrees to become a district employee or independent contractor in return for that assistance.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.
Amended by: 
Acts 2019, 86th Leg., R.S., Ch. 221 (H.B. 886), Sec. 6, eff. May 25, 2019.

Sec. 1067.060.  PERSONNEL CONTRACTS.  (a)  The board may contract to provide administrative and other personnel for the operation of the hospital facilities.
(b)  The term of the contract may not exceed 25 years from the date the contract is entered.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.061.  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.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1067.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for:
(1)  operating all hospital facilities for providing medical and hospital care of the indigent persons in the district; and
(2)  providing medical and hospital care for the district's needy inhabitants.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.102.  RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT.  A political subdivision located within the district may not impose a tax or issue bonds or other obligations for hospital purposes for medical treatment of indigent persons in the district.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  The board shall manage, control, and administer the hospital, the hospital system, and the district's business, money, and resources.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.104.  HOSPITAL OR HOSPITAL SYSTEM.  (a)  The district shall provide for the establishment, administration, maintenance, operation, and financing of a hospital or hospital system in the district.
(b)  The district may provide any services or facilities necessary for hospital or medical care, including:
(1)  rural health clinics;
(2)  outpatient clinics;
(3)  nursing homes;
(4)  home health care agencies;
(5)  extended care facilities;
(6)  assisted living or personal care facilities;  and
(7)  retirement, housing, and medical office buildings.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.105.  RULES.  The board may adopt rules for the operation of the district and as required to administer this chapter.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.106.  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 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.107.  DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.  (a)  The board has exclusive authority to determine the type, character, and use of facilities in the hospital system.
(b)  The board may:
(1)  purchase or lease property, including facilities or equipment, for the district to use in the hospital system; and
(2)  mortgage or pledge the property as security for the payment of the purchase price.
(c)  The board may lease district hospital facilities to individuals, corporations, or other legal entities.
(d)  The board may sell or otherwise dispose of the district's property, including facilities and equipment.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.108.  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 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 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.109.  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 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.110.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT.  (a)  The board may contract with a county or municipality located outside the district for the care and treatment of a sick or injured person 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 agency is responsible.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.111.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When an indigent patient who resides in the district is admitted to a district facility or a person who does not reside in the district is admitted as an emergency patient to a district facility, the chief executive officer 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 chief executive officer 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 as care for indigents.
(c)  If the chief executive officer 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 the person's financial ability and may not exceed the actual per capita cost of maintenance.
(d)  The chief executive officer 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 chief executive officer, the board shall hold a hearing and, after calling witnesses, shall:
(1)  resolve the dispute or doubt; and
(2)  issue any appropriate orders.
(f)  A final order of the board may be appealed to the district court.  The substantial evidence rule applies to the appeal.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.
Amended by: 
Acts 2019, 86th Leg., R.S., Ch. 221 (H.B. 886), Sec. 7, eff. May 25, 2019.

Sec. 1067.112.  AUTHORITY TO SUE AND BE SUED.  The district, through the board, may sue and be sued.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Sec. 1067.151.  BUDGET.  Not later than the 30th day before the first day of each fiscal year, the board shall have an annual budget prepared for that fiscal year.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.152.  NOTICE; ADOPTION OF BUDGET.  (a)  Not later than the 30th day before the first day of each fiscal year, the board shall give notice of a public hearing on the proposed budget.  The notice must be published in a newspaper of general circulation in the district one time at least 10 days before the date set for the hearing.
(b)  The board shall adopt a budget by acting on the budget proposed by the chief executive officer.
(c)  The budget is effective only after adoption by the board.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.
Amended by: 
Acts 2019, 86th Leg., R.S., Ch. 221 (H.B. 886), Sec. 8, eff. May 25, 2019.

Sec. 1067.153.  AMENDMENTS TO BUDGET.  After the annual budget is adopted, the budget may be amended on the board's approval.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.154.  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 that revenue bonds of the district are outstanding; or
(2)  more than once in a 24-month period.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.155.  ANNUAL AUDIT.  (a)  The board annually 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 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.156.  DEPOSITORY.  (a)  The board shall select one or more banks to serve as a depository for district money.
(b)  District money shall be immediately deposited on receipt with a depository 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 the 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 selected as a depository bank.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.157.  AUTHORITY TO BORROW MONEY; 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.
(b)  To secure a loan, the board may pledge:
(1)  district revenue that is not pledged to pay the district's bonded indebtedness;
(2)  district taxes to be imposed by the district during the 12-month period following the date of the pledge 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 revenue is pledged must mature not later than the fifth anniversary of the date the loan is made.
(d)  Repealed by Acts 2011, 82nd Leg., R.S., Ch. 91, Sec. 22.010, eff. September 1, 2011.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.
Amended by: 
Acts 2011, 82nd Leg., R.S., Ch. 91 (S.B. 1303), Sec. 22.009(a), eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 91 (S.B. 1303), Sec. 22.010, eff. September 1, 2011.

SUBCHAPTER E.  BONDS

Sec. 1067.201.  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)  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 or air ambulance service.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  For general obligation bonds issued under Section 1067.201, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund and 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 ad valorem tax the district imposes may not in any year exceed the limit approved by the voters at the election authorizing the imposition of the tax.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.203.  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 a bond election.
(c)  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 the polling places;
(4)  the amount of the bonds to be authorized; and
(5)  the maximum maturity of the bonds.
(d)  Notice of a bond election shall be given as provided by Section 1251.003, Government Code.
(e)  The board shall declare the results of the bond election.
(f)  Except as otherwise provided by this chapter, the election is governed by the general laws relating to county elections.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.204.  MATURITY OF GENERAL OBLIGATION BONDS.  District general obligation bonds must mature not later than 40 years after the date of issuance.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.205.  EXECUTION OF GENERAL OBLIGATION BONDS.  (a)  The board president shall execute the general obligation bonds in the district's name.
(b)  The vice president-secretary shall attest the bonds as provided by Chapter 618, Government Code.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.
Amended by: 
Acts 2019, 86th Leg., R.S., Ch. 221 (H.B. 886), Sec. 9, eff. May 25, 2019.

Sec. 1067.206.  REVENUE BONDS.  (a)  The district may issue revenue bonds to:
(1)  purchase, construct, acquire, repair, or renovate buildings or improvements;
(2)  equip buildings or improvements for hospitals and the hospital system;
(3)  acquire sites to be used for hospital purposes; or
(4)  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 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 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 a county hospital authority.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.207.  REFUNDING BONDS.  (a)  The board may issue refunding bonds to refund any bond 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 outstanding bonds or other refundable indebtedness; or
(2)  exchanged wholly or partly for not less than a similar principal amount of the outstanding bonds or other refundable indebtedness.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.208.  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 of the bonds; or
(3)  bond revenue, including any profits made in the sale of the bonds.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.209.  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 1067.202 and revenue and other sources authorized by Section 1067.206.
Added by Acts 2011, 82nd Leg., R.S., Ch. 91 (S.B. 1303), Sec. 22.008(a), eff. September 1, 2011.

Sec. 1067.210.  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)  costs of construction of a project or facility to be provided through the bonds, including the payment of related professional services and expenses.
Added by Acts 2011, 82nd Leg., R.S., Ch. 91 (S.B. 1303), Sec. 22.008(a), eff. September 1, 2011.

SUBCHAPTER F. TAXES

Sec. 1067.251.  IMPOSITION OF AD VALOREM TAX.  (a)  The board may impose a tax on all property in the district subject to 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 board may not impose a tax to pay the principal of or interest on revenue bonds.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.252.  TAX RATE.  (a)  The board may impose the 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 for all purposes may not exceed 75 cents on each $100 valuation of taxable property in the district.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.253.  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 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

SUBCHAPTER G.  DISSOLUTION

Sec. 1067.301.  DISSOLUTION; ELECTION.  (a)  The district may be dissolved only on approval of a majority of the district 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 a number of residents of the district equal to at least 15 percent of the registered voters in the district.
(d)  The order calling the election must state:
(1)  the nature of the election, including the proposition 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.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.302.  NOTICE OF ELECTION.  (a)  The board shall give notice of an election under this subchapter by publishing once a week for two consecutive weeks a substantial copy of the election order in a newspaper with general circulation in the district.
(b)  The first publication of the notice must appear not later than the 35th day before the date set for the election.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.303.  BALLOT.  The ballot for an election under this subchapter must be printed to permit voting for or against the proposition:  "The dissolution of the Muenster Hospital District."
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.304.  ELECTION RESULTS.  (a)  If a majority of the votes in an election under this subchapter favor dissolution, the board shall find that the district is dissolved.
(b)  If a majority of the votes in the election 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.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.305.  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 that belong to the district to Cooke County or another governmental entity in Cooke County; or
(2)  administer the property, assets, and debts 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.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.306.  SALE OR TRANSFER OF ASSETS AND LIABILITIES.  (a)  Notwithstanding any other provision of this chapter, the district may not be dissolved unless the board provides for the sale or transfer of the district's assets and liabilities to another person.
(b)  The dissolution of the district and the sale or transfer of the district's assets or liabilities may not contravene a trust indenture or bond resolution relating to the district's outstanding bonds.  The dissolution and sale or transfer does not diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district.
(c)  The sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of district residents, including the residents' collective property rights in the district's assets.
(d)  The district may not transfer or dispose of the district's assets except for due compensation unless:
(1)  the transfer is made to another governmental entity that serves the district; and
(2)  the transferred assets are to be used for the benefit of the district's residents.
(e)  A grant from federal funds is an obligation to be repaid in satisfaction.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.

Sec. 1067.307.  IMPOSITION OF TAX AND RETURN OF SURPLUS TAXES.  (a)  After the board finds 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 vice president-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 vice president-secretary to transmit the money to the county tax assessor-collector.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.
Amended by: 
Acts 2019, 86th Leg., R.S., Ch. 221 (H.B. 886), Sec. 10, eff. May 25, 2019.

Sec. 1067.308.  REPORT; DISSOLUTION ORDER.  (a)  After the district has paid all district debts and has disposed of all district money and other assets as prescribed by this subchapter, the board shall file a written report with the Commissioners Court of Cooke County summarizing the board's actions in dissolving the district.
(b)  Not later than the 10th day after the date the Commissioners Court of Cooke County 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.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.