Texas Health And Safety Code Title 4, Chapter 286 - Hospital Districts Created By Voter Approval

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 286.001 - Definitions
  In this chapter: (1) "Board" means the board of directors of the district. (2) "District" means a hospital district created under this chapter. (3) "Director"...

SUBCHAPTER B CREATION OF DISTRICT

• Texas Section 286.002 - District Authorization
  A hospital district may be created and established and, if created, must be maintained, operated, and financed in the manner provided by Article IX, Section...
• Texas Section 286.021 - Petition For Creation Of District
  (a) Before a district located wholly in one county may be created, the county judge of that county must receive a petition signed by at...
• Texas Section 286.022 - Contents Of Petition
  (a) The petition prescribed by Section 286.021 must show: (1) that the district is to be created and is to operate under Article IX, Section...
• Texas Section 286.023 - Filing Of Petition; Hearing; Ordering Election
  (a) If the petition is in proper form, the county judge shall receive the petition and shall file the petition with the county clerk. (b)...
• Texas Section 286.0235 - Bond Proposition At Election
  (a) The petition prescribed by Section 286.021 may include a request that a proposition be submitted at the election to determine whether the board may...
• Texas Section 286.024 - Election Order
  The order calling the election must state: (1) the nature of the election, including the proposition that is to appear on the ballot; (2) the...
• Texas Section 286.025 - Notice
  (a) The commissioners court shall give notice of the election by publishing a substantial copy of the election order in a newspaper with general circulation...
• Texas Section 286.026 - Ballot Proposition
  (a) The ballot for an election proposing to create a hospital district that imposes a property tax shall be printed to permit voting for or...
• Texas Section 286.027 - Election Result
  (a) Except as provided in Subsections (b) and (c), a district is created and organized under this chapter if a majority of the votes cast...
• Texas Section 286.028 - Commissioners Court Order
  When a district is created, the commissioners court of each county in which the district is located shall enter an order in its minutes that...
• Texas Section 286.029 - Overlapping Districts
  (a) If the territory in one or more districts overlaps, the commissioners court of the county in which the most recently created district is located...

SUBCHAPTER C DISTRICT ADMINISTRATION

• Texas Section 286.030 - Temporary Directors
  (a) On the date a commissioners court enters the order required by Section 286.028, the commissioners court shall also appoint the temporary directors of the...
• Texas Section 286.041 - Board Of Directors
  The directors shall be elected in accordance with the petition prescribed by Section 286.021. Added by Acts 1991, 72nd Leg., ch. 14, Sec. 121, eff....
• Texas Section 286.042 - Director's Election
  (a) The initial directors shall be elected at an election to be held on the first Saturday in May following the creation of the district....
• Texas Section 286.043 - Notice Of Election
  Before the 35th day before the date of an election of directors, notice of the election shall be published one time in a newspaper with...
• Texas Section 286.044 - Petition
  (a) A person who wishes to have the person's name printed on the ballot as a candidate for director must file an application with the...
• Texas Section 286.045 - Qualifications For Office
  (a) To be eligible to be a candidate for or to serve as a director, a person must be: (1) a resident of the district;...
• Texas Section 286.046 - Bond
  (a) Before assuming the duties of the office, each director must execute a bond for $5,000 payable to the district, conditioned on the faithful performance...
• Texas Section 286.047 - Board Vacancy
  A vacancy in the office of director shall be filled for the unexpired term by appointment by the remaining directors. Added by Acts 1991, 72nd...
• Texas Section 286.048 - Officers
  (a) The board shall elect from among its members a president and a vice-president. (b) The board shall appoint a secretary who need not be...
• Texas Section 286.049 - Officers' Terms; Vacancy
  (a) Each officer of the board serves for a term of one year. (b) The board shall fill a vacancy in a board office for...
• Texas Section 286.050 - Compensation
  (a) Directors and officers serve without compensation but may be reimbursed for actual expenses incurred in the performance of official duties. (b) Expenses reimbursed under...
• Texas Section 286.051 - Voting Requirement
  A majority of the members of the board voting must concur in a matter relating to the business of the district. Added by Acts 1991,...
• Texas Section 286.052 - Administrator, Assistant Administrator, And Attorney
  (a) The board may appoint qualified persons as administrator of the district, assistant administrator, and attorney for the district. (b) The administrator, assistant administrator, and...
• Texas Section 286.053 - Appointments To Staff
  The board may: (1) appoint to the staff any doctors the board considers necessary for the efficient operation of the district; and (2) make temporary...
• Texas Section 286.054 - Technicians, Nurses, And Other District Employees
  (a) The district may employ technicians, nurses, fiscal agents, accountants, architects, additional attorneys, and other necessary employees. (b) The board may delegate to the administrator...
• Texas Section 286.055 - General Duties Of Administrator
  The administrator shall: (1) supervise the work and activities of the district; and (2) direct the general affairs of the district, subject to the limitations...

SUBCHAPTER D POWERS AND DUTIES

• Texas Section 286.056 - Retirement Benefits
  The board may provide retirement benefits for employees of the district by: (1) establishing or administering a retirement program; or (2) electing to participate in...
• Texas Section 286.071 - Responsibility Of Governmental Entity
  On creation of a district, a county, municipality, or other governmental entity in which the district is located shall convey or transfer to the district:...
• Texas Section 286.072 - Limitation On Governmental Entity
  On or after creation of the district, a county, municipality, or other governmental entity in which the district is located may not levy taxes or...
• Texas Section 286.073 - District Responsibilities
  (a) On creation of a district, the district: (1) assumes full responsibility for operating hospital facilities and for furnishing medical and hospital care for the...
• Texas Section 286.074 - Management, Control, And Administration
  The board shall manage, control, and administer the hospital system and the funds and resources of the district. Added by Acts 1991, 72nd Leg., ch....
• Texas Section 286.075 - District Rules
  The board may adopt rules governing the operation of the hospital and hospital system and the duties, functions, and responsibilities of district staff and employees....
• Texas Section 286.076 - Methods And Procedures
  The board may prescribe: (1) the method of making purchases and expenditures by and for the district; and (2) accounting and control procedures for the...
• Texas Section 286.077 - Hospital Property, Facilities, And Equipment
  (a) The board shall determine: (1) the type, number, and location of buildings required to establish and maintain an adequate hospital system; and (2) the...
• Texas Section 286.078 - Construction Contracts
  (a) The board may enter into construction contracts for the district. (b) The board may enter into construction contracts that involve spending more than $10,000...
• Texas Section 286.079 - District Operating And Management Contracts
  The board may enter into operating or management contracts relating to hospital facilities. Added by Acts 1991, 72nd Leg., ch. 14, Sec. 121, eff. Sept....
• Texas Section 286.080 - Eminent Domain
  (a) A district may exercise the power of eminent domain to acquire a fee simple or other interest in property located in the territory of...
• Texas Section 286.081 - Expenses For Moving Facilities Of Railroads Or Utilities
  If, in exercising the power of eminent domain, the board requires relocating, raising, lowering, rerouting, changing the grade, or altering the construction of any railroad,...
• Texas Section 286.082 - Indigent Care
  (a) The district without charge shall supply to a patient residing in the district the care and treatment that the patient or a relative of...
• Texas Section 286.083 - Reimbursement For Services
  (a) The board shall require reimbursement from a county, municipality, or public hospital located outside the boundaries of the district for the district's care and...
• Texas Section 286.084 - Service Contracts
  The board may contract with a municipality, county, special district, or other political subdivision of the state or with a state or federal agency for...
• Texas Section 286.085 - Gifts And Endowments
  On behalf of the district, the board may accept gifts and endowments to be held in trust for any purpose and under any direction, limitation,...

SUBCHAPTER E CHANGE IN BOUNDARIES OR DISSOLUTION OF DISTRICT

• Texas Section 286.086 - Authority To Sue And Be Sued
  The board may sue and be sued on behalf of the district. Added by Acts 1991, 72nd Leg., ch. 14, Sec. 121, eff. Sept. 1,
• Texas Section 286.101 - Expansion Of District Territory
  (a) Registered voters of a defined territory that is not included in a district may file a petition with the secretary of the board requesting...
• Texas Section 286.102 - Dissolution
  (a) A district may be dissolved as provided by this section. (b) The board may order an election on the question of dissolving the district...
• Texas Section 286.103 - Transfer Of Assets After Dissolution
  (a) If a majority of the votes in the election favor dissolution, the board shall: (1) transfer the land, buildings, improvements, equipment, and other assets...
• Texas Section 286.104 - Administration Of Property, Debts, And Assets After Dissolution
  (a) If the district does not transfer the land, buildings, improvements, equipment, and other assets to a county or another governmental entity in the district,...
• Texas Section 286.105 - Return Of Surplus Property Tax Money
  (a) When all outstanding debts and obligations of the district are paid, the board shall order the secretary to return the pro rata share of...

SUBCHAPTER F DISTRICT FINANCES

• Texas Section 286.106 - Report; Dissolution Order
  (a) After the district has paid all its debts and has disposed of all its assets and funds as prescribed by Sections 286.104 and 286.105,...
• Texas Section 286.121 - Fiscal Year
  (a) The district operates on the fiscal year established by the board. (b) The fiscal year may not be changed if revenue bonds of the...
• Texas Section 286.122 - Annual Audit
  The board annually shall have an audit made of the financial condition of the district. Added by Acts 1991, 72nd Leg., ch. 14, Sec. 121,...
• Texas Section 286.123 - District Audit And Records
  The annual audit and other district records are open to inspection during regular business hours at the principal office of the district. Added by Acts...
• Texas Section 286.124 - Annual Budget
  (a) The administrator of the district shall prepare a proposed annual budget for the district. (b) The proposed budget must contain a complete financial statement,...
• Texas Section 286.125 - Notice; Hearing; Adoption Of Budget
  (a) The board shall hold a public hearing on the proposed annual budget. (b) The board shall publish notice of the hearing in a newspaper...
• Texas Section 286.126 - Amending Budget
  After adoption, the annual budget may be amended on the board's approval. Added by Acts 1991, 72nd Leg., ch. 14, Sec. 121, eff. Sept. 1,
• Texas Section 286.127 - Limitation Of Expenditures
  Money may not be spent for an expense not included in the annual budget or an amendment to it. Added by Acts 1991, 72nd Leg.,...
• Texas Section 286.128 - Sworn Statement
  As soon as practicable after the close of the fiscal year, the administrator shall prepare for the board a sworn statement of the amount of...
• Texas Section 286.129 - Spending And Investment Limitations
  (a) Except as provided by Section 286.078(a) and by Sections 286.141, 286.144, and 286.145, the district may not incur a debt payable from revenues of...

SUBCHAPTER G BONDS

• Texas Section 286.130 - Depository
  (a) The board shall name at least one bank to serve as depository for district funds. (b) District funds, other than those invested as provided...
• Texas Section 286.141 - General Obligation Bonds
  The board may issue and sell bonds authorized by an election in the name and on the faith and credit of the hospital district to:...
• Texas Section 286.142 - Taxes To Pay Bonds
  (a) At the time the bonds are issued by the district, the board shall levy a tax. (b) The tax must be sufficient to create...
• Texas Section 286.143 - Bond Election
  (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the qualified voters of the district voting...
• Texas Section 286.144 - Revenue Bonds
  (a) The board may issue revenue bonds to: (1) purchase, construct, acquire, repair, equip, or renovate buildings or improvements for hospital purposes; (2) acquire sites...
• Texas Section 286.145 - Refunding Bonds
  (a) Refunding bonds of the district may be issued to refund an outstanding indebtedness the district has issued or assumed. (b) The bonds must be...
• Texas Section 286.146 - Interest And Maturity
  District bonds must mature not later than the 50th anniversary of the date of their issuance and must bear interest at a rate not to...
• Texas Section 286.147 - Execution Of Bonds
  The president of the board shall execute the bonds in the name of the district, and the secretary of the board shall countersign the bonds...
• Texas Section 286.148 - Approval And Registration Of Bonds
  (a) District bonds are subject to the same requirements with regard to approval by the attorney general and registration by the comptroller as the law...
• Texas Section 286.149 - Bonds As Investments
  District bonds and indebtedness assumed by the district are legal and authorized investments for: (1) banks; (2) savings banks; (3) trust companies; (4) savings and...
• Texas Section 286.150 - Bonds As Security For Deposits
  District bonds are eligible to secure deposits of public funds of the state and of municipalities, counties, school districts, and other political subdivisions of the...

SUBCHAPTER H PROPERTY TAXES

• Texas Section 286.151 - Tax Status Of Bonds
  Because the district created under this chapter is a public entity performing an essential public function, bonds issued by the district, any transaction relating to...
• Texas Section 286.161 - Tax Authorized
  (a) A majority of voters in a district or proposed district may, at the creation election under Subchapter B or in conjunction with any other...
• Texas Section 286.162 - Board Authority
  The board may impose taxes for the entire year in which the district is created. Added by Acts 1991, 72nd Leg., ch. 14, Sec. 121,...
• Texas Section 286.163 - Adopting Tax Rate
  In adopting the tax rate, the board shall consider the income of the district from sources other than taxation. Added by Acts 1991, 72nd Leg.,...

SUBCHAPTER I SALES AND USE TAXES FOR DISTRICTS IN SMALL COUNTIES

• Texas Section 286.164 - Tax Assessment And Collection
  (a) The Tax Code governs the appraisal, assessment, and collection of district taxes. (b) The board may provide for the appointment of a tax assessor-collector...
• Texas Section 286.171 - Tax Authorized
  (a) A majority of voters in a proposed district of which all or a majority of the territory is located in a county or counties...
• Texas Section 286.172 - Limitation On Combined Tax Rate; Effect On Elections
  An election to create a hospital district and to authorize the imposition of a sales and use tax under this subchapter, or an election to...
• Texas Section 286.173 - Election In Other Taxing Authority
  (a) In this section, "taxing authority" means any entity authorized to impose a local sales and use tax. (b) If a district or proposed district...
• Texas Section 286.174 - Tax Rate; Change In Rate
  (a) A district may impose the tax in increments of one-eighth of one percent, with a minimum rate of one-eighth of one percent and a...
• Texas Section 286.175 - Use Of Tax
  The taxes imposed may be used to pay: (1) the indebtedness issued or assumed by the district; and (2) the maintenance and operating expenses of...
• Texas Section 286.176 - Effective Date
  (a) The adoption or abolition of the tax or a change in the rate of the tax takes effect on the first day of the...

SUBCHAPTER X MISCELLANEOUS

• Texas Section 286.177 - County Sales And Use Tax Act Applicable
  Except to the extent that a provision of this chapter applies, Chapter 323, Tax Code, applies to the tax authorized by this chapter in the...
• Texas Section 286.951 - Limitation On State Assistance
  The state may not become obligated for the support or maintenance of a hospital district created under this chapter, and the legislature may not make...

Last modified: September 28, 2016