Texas Health And Safety Code Title 4, Chapter 221 - Health Facilities Development Act

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 221.001 - Short Title
  This chapter may be cited as the Health Facilities Development Act. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
• Texas Section 221.002 - Purpose; Construction
  (a) The purpose of this chapter is to enable a municipality, county, or hospital district to create a corporation with the power to provide, expand,...
• Texas Section 221.003 - Definitions
  In this chapter: (1) "Board of directors" means the board of directors of a development corporation. (2) "Bonds" includes notes, interim certificates, or other evidences...
• Texas Section 221.004 - Adoption Of Alternate Procedure
  If a court holds that a procedure under this chapter violates the federal or state constitution, a development corporation by resolution may provide an alternate...

SUBCHAPTER B CREATION AND OPERATION OF DEVELOPMENT CORPORATION

• Texas Section 221.005 - Effect Of Chapter On Other Law
  (a) This chapter does not limit the police powers provided by law to the state, a municipality, or other political subdivision of the state or...
• Texas Section 221.011 - Authority To Create
  (a) A sponsoring entity may create one or more nonmember, nonstock development corporations for the sole public purpose of acquiring, constructing, providing, improving, financing, and...
• Texas Section 221.012 - Procedure
  (a) If the governing body of a sponsoring entity determines that it is in the public interest and to the benefit of the sponsoring entity's...
• Texas Section 221.013 - Articles Of Incorporation
  (a) The articles of incorporation of a development corporation must include: (1) the corporation's name; (2) a statement that the corporation is a nonprofit public...
• Texas Section 221.014 - Certificate Of Incorporation
  (a) The incorporators shall deliver to the secretary of state the original and two copies of the articles of incorporation and a certified copy of...
• Texas Section 221.015 - Organizational Meeting
  (a) After issuance of the certificate of incorporation and at the call of a majority of the incorporators, the board of directors named in the...
• Texas Section 221.016 - Amendment Of Articles Of Incorporation
  (a) Articles of incorporation may be amended to contain any provision that is lawful under this chapter if the sponsoring entity's governing body by appropriate...
• Texas Section 221.017 - Certificate Of Amendment
  (a) The original and two copies of the articles of amendment and a certified copy of the resolution of the sponsoring entity's governing body authorizing...
• Texas Section 221.018 - Restated Articles Of Incorporation
  (a) A development corporation may authorize, execute, and file restated articles of incorporation by following the procedure to amend articles of incorporation, including obtaining authorization...
• Texas Section 221.019 - Restated Certificate Of Incorporation
  (a) The original and two copies of the restated articles of incorporation and a certified copy of the resolution of the sponsoring entity's governing body...
• Texas Section 221.020 - Registered Office And Agent
  (a) A development corporation shall continuously maintain a registered office and registered agent in this state. (b) The registered office may be, but need not...
• Texas Section 221.021 - Change Of Registered Office Or Agent
  (a) A development corporation may change its registered office, registered agent, or both, by filing the original and a copy of a statement in the...
• Texas Section 221.022 - Resignation Of Registered Agent
  (a) A registered agent of a development corporation may resign by: (1) mailing or delivering written notice to the corporation; and (2) filing the original...
• Texas Section 221.023 - Agents For Service
  (a) The president, each vice-president, and the registered agent of a development corporation are the corporation's agents on whom may be served a process, notice,...
• Texas Section 221.024 - Board
  (a) A development corporation's affairs are governed by a board of directors composed of at least three individuals appointed by the sponsoring entity's governing body....
• Texas Section 221.025 - Officers
  (a) The officers of a development corporation are: (1) the president, vice-president, and secretary; and (2) other officers, including a treasurer, and assistant officers considered...
• Texas Section 221.026 - Indemnification
  (a) Except as provided by Subsection (c), a development corporation may indemnify a director or officer or a former director or officer for expenses and...
• Texas Section 221.027 - Bylaws
  (a) The board of directors shall adopt a development corporation's initial bylaws and may amend or repeal the bylaws or adopt new bylaws. The bylaws...
• Texas Section 221.028 - Committees
  (a) If permitted by the articles of incorporation or bylaws, the board of directors, by resolution adopted by a majority of directors in office, may...
• Texas Section 221.029 - Meetings; Action Without Meeting
  (a) A regular board of directors meeting may be called and held, with or without notice, as provided by the bylaws. A special board of...
• Texas Section 221.030 - Corporation's General Powers
  (a) Subject to Section 221.035, a development corporation has the rights and powers necessary or convenient to accomplish the corporation's purposes, including the power to:...
• Texas Section 221.031 - Conveyance Of Land
  (a) A development corporation may convey land by deed if the conveyance is authorized by an appropriate resolution of the board of directors. The deed...
• Texas Section 221.032 - Perfection Of Security Interest
  A security interest granted by a corporation may be perfected in the manner and with the effect provided by Chapter 9, Business & Commerce Code....
• Texas Section 221.033 - Taxation
  (a) A health facility, including a leasehold estate in a health facility, that is owned by a development corporation and that, except for the purposes...
• Texas Section 221.034 - Net Earnings
  A development corporation is a nonprofit corporation, and no part of its net earnings remaining after payment of its bonds and expenses of accomplishing its...
• Texas Section 221.035 - Alteration Of Development Corporation Or Activities
  The sponsoring entity, in its sole discretion, may alter the development corporation's structure, organization, programs, or activities, subject only to limitations provided by law relating...
• Texas Section 221.036 - Examination Of Books And Records
  A representative of the sponsoring entity may examine all books and records of the development corporation at any time. Acts 1989, 71st Leg., ch. 678,...

SUBCHAPTER C BONDS

• Texas Section 221.037 - Waiver Of Notice
  If a notice is required to be given to a director by this chapter, the articles of incorporation, or bylaws, a waiver of the notice...
• Texas Section 221.061 - Authority To Issue; Use Of Proceeds
  (a) A development corporation may issue bonds to pay all or part of the cost of a health facility or for cash management. (b) Before...
• Texas Section 221.062 - Information Filed With Sponsoring Entity
  (a) Not later than the 15th day before the date on which bonds are issued, the proceeds of which are to be used to pay...
• Texas Section 221.063 - Terms
  (a) Bonds issued under this chapter must be dated and bear interest at a fixed or variable rate determined by the development corporation. The bonds...
• Texas Section 221.064 - Sale
  (a) A development corporation shall sell at a public or private sale the bonds at the price it determines. (b) The net effective interest rate...
• Texas Section 221.065 - Refunding Bonds
  (a) A development corporation may issue bonds to refund any of its valid outstanding bonds, including any bonds issued for unspecified projects and including any...
• Texas Section 221.066 - Source Of Payment; Bonds Not General Obligation
  (a) The principal of, interest on, and any redemption penalty on bonds issued under this chapter are payable solely from, and may be secured by...
• Texas Section 221.067 - Exempt Securities
  (a) Bonds issued under this chapter and any interest coupons are exempt securities under The Securities Act (Article 581-1 et seq., Vernon's Texas Civil Statutes)....

SUBCHAPTER D DISSOLUTION OF CORPORATION

• Texas Section 221.068 - Legal Investments; Security For Deposits
  (a) Unless made ineligible under other law, rules, or rulings, bonds are legal and authorized investments for: (1) a bank; (2) a savings bank; (3)...
• Texas Section 221.081 - Dissolution Authorized
  After a development corporation's bonds and other obligations are paid and discharged, or adequate provision is made for their payment and discharge, the sponsoring entity's...
• Texas Section 221.082 - Articles Of Dissolution
  (a) Articles of dissolution on behalf of the corporation shall be executed by: (1) the president or vice-president and the secretary or assistant secretary; or...
• Texas Section 221.083 - Certificate Of Dissolution
  (a) The original and two copies of the articles of dissolution shall be delivered to the secretary of state. (b) If the secretary of state...
• Texas Section 221.084 - Extension Of Duration
  If a corporation is dissolved by expiration of its duration, the corporation may amend its articles of incorporation to extend its duration within three years...
• Texas Section 221.085 - Vesting Property In Sponsoring Entity
  The title to all funds and other property owned by a development corporation when it dissolves automatically vests in the sponsoring entity without further conveyance,...

SUBCHAPTER E ADMINISTRATION BY SECRETARY OF STATE

• Texas Section 221.086 - Rights, Claims, And Liabilities Before Dissolution
  The dissolution of a development corporation by issuance of a certificate of dissolution or expiration of its duration does not impair a remedy available to...
• Texas Section 221.101 - Administration Of Chapter
  The secretary of state may act as reasonably necessary to efficiently administer this chapter and to perform the duties imposed by this chapter. Acts 1989,...
• Texas Section 221.102 - Fees
  (a) The secretary of state shall charge and collect fees for: (1) filing articles of incorporation and issuing two certificates of incorporation; (2) filing articles...
• Texas Section 221.103 - Notice And Appeal Of Disapproval
  (a) If the secretary of state fails to approve a document required by this chapter to be approved by the secretary of state, the secretary...
• Texas Section 221.104 - Documents As Prima Facie Evidence
  The following documents shall be received by a court, public office, or official body as prima facie evidence of the facts, or the existence or...

Last modified: September 28, 2016