Texas Health and Safety Code 223.011 – Providing Hospital Projects
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(a) An issuer acting for itself or through a nonprofit organization may provide one or more hospital projects by acquisition, construction, or improvement. An acquisition may occur by purchase, devise, gift, lease, or a combination of those methods.
(b) A hospital project must be located in this state and within or partially within the issuer’s boundaries, except that a hospital project of a municipality may be located:
(1) outside the municipality’s limits if it is within the municipality’s extraterritorial jurisdiction; or
(2) in another municipality if the governing body of the other municipality consents to the former municipality’s provision of the project.
Terms Used In Texas Health and Safety Code 223.011
- Appraisal: A determination of property value.
- Devise: To gift property by will.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
(c) An issuer may only acquire a hospital project from a nonprofit organization that has been in existence and has operated the hospital project for at least three years before the date of acquisition by the issuer.
(d) An issuer must affirmatively find that the cost of an acquired hospital project is not more than:
(1) the actual audited cost of the hospital project to the date of acquisition; or
(2) the fair market value of the hospital project at the date of acquisition as determined by an appraisal obtained by the issuer.