By: Duncan S.B. No. 1026
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the nonsubstantive revision of certain local laws
  concerning special districts, including conforming amendments.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. NONSUBSTANTIVE REVISION OF LOCAL LAWS
         SECTION 1.01.  Subtitle A, Title 3, Special District Local
  Laws Code, is amended by adding Chapters 1075, 1076, 1087, 1096,
  1107, 1109, 1110, 1112, 1113, 1114, 1115, 1116, and 1117 to read as
  follows:
  CHAPTER 1075. STAMFORD HOSPITAL DISTRICT
  SUBCHAPTER A.  GENERAL PROVISIONS
  Sec. 1075.001.  DEFINITIONS 
  Sec. 1075.002.  AUTHORITY FOR CREATION 
  Sec. 1075.003.  ESSENTIAL PUBLIC FUNCTION 
  Sec. 1075.004.  DISTRICT TERRITORY 
  Sec. 1075.005.  DISTRICT SUPPORT AND MAINTENANCE NOT
                   STATE OBLIGATION 
  Sec. 1075.006.  RESTRICTION ON STATE FINANCIAL
                   ASSISTANCE 
  [Sections 1075.007-1075.050 reserved for expansion]
  SUBCHAPTER B.  DISTRICT ADMINISTRATION
  Sec. 1075.051.  BOARD ELECTION; TERM 
  Sec. 1075.052.  NOTICE OF ELECTION 
  Sec. 1075.053.  BALLOT PETITION 
  Sec. 1075.054.  QUALIFICATIONS FOR OFFICE 
  Sec. 1075.055.  BOND; RECORD OF BOND AND OATH 
  Sec. 1075.056.  BOARD VACANCY 
  Sec. 1075.057.  OFFICERS 
  Sec. 1075.058.  COMPENSATION; EXPENSES 
  Sec. 1075.059.  DISTRICT ADMINISTRATOR; ASSISTANT
                   ADMINISTRATOR 
  Sec. 1075.060.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1075.061.  EMPLOYEES 
  Sec. 1075.062.  RETIREMENT PROGRAM 
  [Sections 1075.063-1075.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
  Sec. 1075.101.  DISTRICT RESPONSIBILITY 
  Sec. 1075.102.  RESTRICTION ON POLITICAL SUBDIVISION
                   TAXATION AND DEBT 
  Sec. 1075.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
  Sec. 1075.104.  HOSPITAL SYSTEM 
  Sec. 1075.105.  RULES 
  Sec. 1075.106.  PURCHASING AND ACCOUNTING 
  Sec. 1075.107.  RATES AND CHARGES 
  Sec. 1075.108.  EMINENT DOMAIN 
  Sec. 1075.109.  GIFTS AND ENDOWMENTS 
  Sec. 1075.110.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR CARE AND TREATMENT 
  Sec. 1075.111.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1075.112.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1075.113-1075.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 1075.151.  BUDGET 
  Sec. 1075.152.  FISCAL YEAR 
  Sec. 1075.153.  AUDIT 
  Sec. 1075.154.  FINANCIAL REPORT 
  Sec. 1075.155.  DEPOSITORY 
  Sec. 1075.156.  AUTHORITY TO BORROW MONEY; SECURITY 
  [Sections 1075.157-1075.200 reserved for expansion]
  SUBCHAPTER E. BONDS
  Sec. 1075.201.  GENERAL OBLIGATION BONDS 
  Sec. 1075.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1075.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1075.204.  EXECUTION OF GENERAL OBLIGATION BONDS 
  Sec. 1075.205.  REFUNDING BONDS 
  Sec. 1075.206.  BONDS EXEMPT FROM TAXATION 
  [Sections 1075.207-1075.250 reserved for expansion]
  SUBCHAPTER F. TAXES
  Sec. 1075.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1075.252.  TAX RATE 
  CHAPTER 1075. STAMFORD HOSPITAL DISTRICT
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 1075.001.  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 Stamford Hospital District.
  (New.)
         Sec. 1075.002.  AUTHORITY FOR CREATION. The Stamford
  Hospital District is created under the authority of Section 9,
  Article IX, Texas Constitution, and has the rights, powers, and
  duties prescribed by this chapter.  (Acts 59th Leg., R.S., Ch. 108,
  Sec. 1 (part).)
         Sec. 1075.003.  ESSENTIAL PUBLIC FUNCTION. The district
  performs an essential public function in carrying out the purposes
  of this chapter. (Acts 59th Leg., R.S., Ch. 108, Sec. 8 (part).)
         Sec. 1075.004.  DISTRICT TERRITORY. The district is
  composed of the territory described by Section 1a, Chapter 108,
  Acts of the 59th Legislature, Regular Session, 1965, as amended by
  Section 1, Chapter 563, Acts of the 63rd Legislature, Regular
  Session, 1973.  (New.)
         Sec. 1075.005.  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. (Acts 59th
  Leg., R.S., Ch. 108, Sec. 18 (part).)
         Sec. 1075.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.
  The legislature may not make a direct appropriation for the
  construction, maintenance, or improvement of a district facility.
  (Acts 59th Leg., R.S., Ch. 108, Sec. 18 (part).)
  [Sections 1075.007-1075.050 reserved for expansion]
  SUBCHAPTER B.  DISTRICT ADMINISTRATION
         Sec. 1075.051.  BOARD ELECTION; TERM. (a) The board
  consists of seven elected directors.
         (b)  Directors serve staggered two-year terms unless
  four-year terms are established under Section 285.081, Health and
  Safety Code.
         (c)  The election order must state the time, place, and
  purpose of the election. (Acts 59th Leg., R.S., Ch. 108, Sec. 4
  (part).)
         Sec. 1075.052.  NOTICE OF ELECTION. At least five days
  before the date of a directors' election, notice of the election
  must be published one time in a newspaper of general circulation in
  the district. (Acts 59th Leg., R.S., Ch. 108, Sec. 4 (part).)
         Sec. 1075.053.  BALLOT PETITION. A person who wants to have
  the person's name printed on the ballot as a candidate for director
  must file with the board secretary a petition requesting that
  action. The petition must be:
               (1)  signed by at least 10 registered voters; and
               (2)  filed by the deadline imposed by Section 144.005,
  Election Code. (Acts 59th Leg., R.S., Ch. 108, Sec. 4 (part).)
         Sec. 1075.054.  QUALIFICATIONS FOR OFFICE. To be eligible
  to hold office as a director, a person must be a resident
  property-owning taxpaying voter of the district. (Acts 59th Leg.,
  R.S., Ch. 108, Sec. 4 (part).)
         Sec. 1075.055.  BOND; RECORD OF BOND AND OATH.  (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)  Each director's bond and constitutional oath of office
  shall be deposited with the district's depository bank for
  safekeeping.  (Acts 59th Leg., R.S., Ch. 108, Sec. 4 (part).)
         Sec. 1075.056.  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. (Acts 59th Leg., R.S.,
  Ch. 108, Sec. 4 (part).)
         Sec. 1075.057.  OFFICERS. (a) The board shall elect from
  among its members a president, vice president, secretary, and other
  officers as in the judgment of the board are necessary.
         (b)  The president is the chief executive officer of the
  district and has the same right to vote as any other director.
         (c)  If the president is absent or fails and declines to act,
  the vice president shall perform the president's duties and
  exercise the president's powers under this chapter. (Acts 59th
  Leg., R.S., Ch. 108, Sec. 4 (part).)
         Sec. 1075.058.  COMPENSATION; EXPENSES. A director is not
  entitled to compensation but is entitled to receive actual expenses
  incurred in attending to district business on approval of the
  expenses by the remainder of the board. (Acts 59th Leg., R.S., Ch.
  108, Sec. 4 (part).)
         Sec. 1075.059.  DISTRICT ADMINISTRATOR; ASSISTANT
  ADMINISTRATOR. (a) The board shall appoint a qualified person as
  district administrator.
         (b)  The board may appoint an assistant administrator.
         (c)  The district administrator and assistant administrator
  serve at the will of the board and shall receive the compensation
  determined by the board.
         (d)  On assuming the duties of district administrator, the
  administrator shall execute a bond payable to the district in an
  amount set by the board of not less than $10,000 that:
               (1)  is conditioned on the administrator performing the
  administrator's duties; and
               (2)  contains any other condition the board requires.
  (Acts 59th Leg., R.S., Ch. 108, Sec. 5 (part).)
         Sec. 1075.060.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
  Subject to any limitations prescribed by the board, the district
  administrator shall:
               (1)  supervise the work and activities of the district;
  and
               (2)  direct the affairs of the district. (Acts 59th
  Leg., R.S., Ch. 108, Sec. 5 (part).)
         Sec. 1075.061.  EMPLOYEES. The board may employ any
  doctors, technicians, nurses, and other employees as considered
  necessary for the efficient operation of the district or may
  provide that the district administrator has the authority to employ
  those persons.  (Acts 59th Leg., R.S., Ch. 108, Sec. 5 (part).)
         Sec. 1075.062.  RETIREMENT PROGRAM. The board may enter
  into any contract or agreement with this state or the federal
  government as required to establish or continue a retirement
  program for the benefit of the district's employees. (Acts 59th
  Leg., R.S., Ch. 108, Sec. 5 (part).)
  [Sections 1075.063-1075.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 1075.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for:
               (1)  operating all hospital facilities for providing
  medical and hospital care of indigent persons in the district; and
               (2)  providing medical and hospital care for the
  district's needy inhabitants.  (Acts 59th Leg., R.S., Ch. 108,
  Secs. 2 (part), 17 (part).)
         Sec. 1075.102.  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 or for medical treatment of indigent persons
  in the district. (Acts 59th Leg., R.S., Ch. 108, Sec. 17 (part).)
         Sec. 1075.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.
  The board shall manage, control, and administer the district's
  hospitals and hospital system. (Acts 59th Leg., R.S., Ch. 108, Sec.
  5 (part).)
         Sec. 1075.104.  HOSPITAL SYSTEM. The district shall provide
  for:
               (1)  the establishment of a hospital or hospital system
  by:
                     (A)  purchasing, constructing, acquiring,
  repairing, or renovating buildings and improvements; and
                     (B)  equipping the buildings and improvements;
  and
               (2)  the administration of the hospital or hospital
  system for hospital purposes. (Acts 59th Leg., R.S., Ch. 108, Sec. 2
  (part).)
         Sec. 1075.105.  RULES. The board may adopt rules for the
  operation of the district and as required to administer this
  chapter. (Acts 59th Leg., R.S., Ch. 108, Secs. 5 (part), 9 (part).)
         Sec. 1075.106.  PURCHASING AND ACCOUNTING. 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. (Acts 59th
  Leg., R.S., Ch. 108, Sec. 9 (part).)
         Sec. 1075.107.  RATES AND CHARGES.  The board shall
  prescribe the rates and charges for:
               (1)  services;
               (2)  supplies; and
               (3)  the use of hospital facilities.  (Acts 59th Leg.,
  R.S., Ch. 108, Sec. 14 (part).)
         Sec. 1075.108.  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 to 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. (Acts 59th
  Leg., R.S., Ch. 108, Sec. 12.)
         Sec. 1075.109.  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. (Acts 59th Leg., R.S., Ch. 108,
  Sec. 15.)
         Sec. 1075.110.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  CARE AND TREATMENT. The board may contract with:
               (1)  any county or municipality located outside the
  district for the care and treatment of a sick or injured person of
  that county or municipality; and
               (2)  this state or a federal agency for the treatment of
  a sick or injured person for whom this state or the federal
  government is responsible. (Acts 59th Leg., R.S., Ch. 108, Sec. 5
  (part).)
         Sec. 1075.111.  PAYMENT FOR TREATMENT; PROCEDURES. (a)
  When a patient who resides in the district is admitted to a district
  facility, the district administrator shall have an inquiry made
  into the circumstances of:
               (1)  the patient; and
               (2)  the patient's relatives legally liable for the
  patient's support.
         (b)  If the district administrator determines that the
  patient or those relatives cannot pay for all or part of the
  patient's care and treatment in the hospital, the amount that
  cannot be paid becomes a charge against the district.
         (c)  If the district administrator determines that the
  patient or those relatives can pay for all or part 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 their
  financial ability and may not exceed the actual per capita cost of
  maintenance.
         (d)  The district administrator may collect the amount from
  the patient's estate, or from those relatives 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 administrator, the board shall hold a
  hearing and, after calling witnesses, shall:
               (1)  resolve the dispute or doubt; and
               (2)  issue any appropriate orders. (Acts 59th Leg.,
  R.S., Ch. 108, Sec. 14 (part).)
         Sec. 1075.112.  AUTHORITY TO SUE AND BE SUED. The district,
  through the board, may sue and be sued. (Acts 59th Leg., R.S., Ch.
  108, Sec. 5 (part).)
  [Sections 1075.113-1075.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 1075.151.  BUDGET. (a) The district administrator
  shall prepare for approval by the board an annual budget that
  corresponds to the district's fiscal year.
         (b)  Not later than August 31 of each year, the board shall
  publish 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 of the
  hearing. (Acts 59th Leg., R.S., Ch. 108, Secs. 6 (part), 16.)
         Sec. 1075.152.  FISCAL YEAR. The district shall operate on a
  fiscal year that begins on October 1 and ends on September 30.
  (Acts 59th Leg., R.S., Ch. 108, Sec. 6 (part).)
         Sec. 1075.153.  AUDIT. (a) The district 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. (Acts 59th Leg., R.S., Ch. 108, Sec. 6
  (part).)
         Sec. 1075.154.  FINANCIAL REPORT. As soon as practicable
  after the close of each fiscal year, the district administrator
  shall prepare for the board:
               (1)  a complete sworn statement of all district money;
  and
               (2)  a complete account of the disbursements of that
  money. (Acts 59th Leg., R.S., Ch. 108, Sec. 6 (part).)
         Sec. 1075.155.  DEPOSITORY. (a) The board shall select one
  or more banks in the district to serve as a depository for district
  money.
         (b)  All district money shall be immediately deposited on
  receipt with a depository bank, except that sufficient money must
  be remitted to an appropriate 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
  designated as depository. (Acts 59th Leg., R.S., Ch. 108, Sec. 10.)
         Sec. 1075.156.  AUTHORITY TO BORROW MONEY; SECURITY. (a)  
  The board may borrow money from a federally insured lending
  institution or make other financial arrangements for district
  operating expenses or other authorized obligations.
         (b)  The board may borrow money in an amount and subject to a
  rate of interest and other terms the board finds appropriate.
         (c)  To secure a loan, the board may pledge:
               (1)  district revenue that is not pledged to pay the
  district's bonded indebtedness; or
               (2)  property acquired with borrowed money that is not
  pledged to pay the district's bonded indebtedness.
         (d)  A loan for which district revenue is pledged must mature
  not later than the fifth anniversary of the date the loan is made.
         (e)  The district must provide for the payment of all
  district debts and obligations before dissolution.  (Acts 59th
  Leg., R.S., Ch. 108, Sec. 17a, as added Acts 74th Leg., R.S., Ch.
  52, Sec. 1, and amended Acts 76th Leg., R.S., Ch. 1566, Sec. 1.)
  [Sections 1075.157-1075.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 1075.201.  GENERAL OBLIGATION BONDS. (a)  The board may
  issue and sell general obligation bonds in the name and on the faith
  and credit of the district for any purpose related to the purchase,
  construction, acquisition, repair, or renovation of buildings and
  improvements, and equipping buildings and improvements for a
  hospital and the hospital system, as determined by the board.
         (b)  The board shall issue the bonds in compliance with the
  applicable provisions of Subtitles A and C, Title 9, Government
  Code.  (Acts 59th Leg., R.S., Ch. 108, Sec. 7 (part).)
         Sec. 1075.202.  TAX TO PAY GENERAL OBLIGATION BONDS. (a) At
  the time general obligation bonds are issued by the district, 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 75
  cents on each $100 valuation of taxable property in the district.  
  (Acts 59th Leg., R.S., Ch. 108, Sec. 7 (part).)
         Sec. 1075.203.  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 shall call the election. The election must be
  held in accordance with Chapter 1251, Government Code.
         (c)  The bond election order must specify:
               (1)  the date of the election;
               (2)  the location of the polling places;
               (3)  the presiding election officers;
               (4)  the amount of the bonds to be authorized;
               (5)  the maximum maturity of the bonds; and
               (6)  the maximum interest rate of the bonds. (Acts 59th
  Leg., R.S., Ch. 108, Sec. 7 (part).)
         Sec. 1075.204.  EXECUTION OF GENERAL OBLIGATION BONDS. The
  board president shall execute the general obligation bonds in the
  district's name, and the board secretary shall attest the bonds as
  provided by Chapter 618, Government Code. (Acts 59th Leg., R.S.,
  Ch. 108, Sec. 7 (part).)
         Sec. 1075.205.  REFUNDING BONDS. (a) District refunding
  bonds may, without an election, be issued to refund any bonds or
  other refundable indebtedness 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. (Acts 59th Leg., R.S., Ch. 108, Sec. 7
  (part).)
         Sec. 1075.206.  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 and issuance of the bonds; and
               (3)  any profits made in the sale of the bonds. (Acts
  59th Leg., R.S., Ch. 108, Sec. 8 (part).)
  [Sections 1075.207-1075.250 reserved for expansion]
  SUBCHAPTER F. TAXES
         Sec. 1075.251.  IMPOSITION OF AD VALOREM TAX. (a) The board
  may impose a tax on all taxable property in the district subject to
  district taxation.
         (b)  The tax may be used to meet the requirements of district
  bonds and for the district's maintenance and operating expenses.
  (Acts 59th Leg., R.S., Ch. 108, Sec. 3a (part).)
         Sec. 1075.252.  TAX RATE. The district may impose the tax at
  a rate not to exceed 75 cents on each $100 valuation of taxable
  property in the district. (Acts 59th Leg., R.S., Ch. 108, Sec. 3a
  (part).)
  CHAPTER 1076. STARR COUNTY HOSPITAL DISTRICT
  OF STARR COUNTY, TEXAS
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1076.001.  DEFINITIONS 
  Sec. 1076.002.  AUTHORITY FOR CREATION 
  Sec. 1076.003.  POLITICAL SUBDIVISION 
  Sec. 1076.004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE 
  Sec. 1076.005.  DISTRICT TERRITORY 
  [Sections 1076.006-1076.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1076.051.  BOARD ELECTION; TERM 
  Sec. 1076.052.  NOTICE OF ELECTION 
  Sec. 1076.053.  QUALIFICATIONS FOR OFFICE 
  Sec. 1076.054.  BOND 
  Sec. 1076.055.  BOARD VACANCY 
  Sec. 1076.056.  OFFICERS; DUTIES; ABSENCE OF PRESIDENT
                   OR SECRETARY 
  Sec. 1076.057.  COMPENSATION; EXPENSES 
  Sec. 1076.058.  DISTRICT ADMINISTRATOR; ASSISTANT
                   ADMINISTRATOR 
  Sec. 1076.059.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1076.060.  APPOINTMENT AND REMOVAL OF MEDICAL
                   STAFF AND EMPLOYEES 
  Sec. 1076.061.  RECRUITMENT OF MEDICAL STAFF AND
                   EMPLOYEES 
  Sec. 1076.062.  HEALTH CARE EDUCATIONAL PROGRAMS 
  Sec. 1076.063.  RETIREMENT BENEFITS 
  [Sections 1076.064-1076.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1076.101.  DISTRICT RESPONSIBILITY 
  Sec. 1076.102.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
  Sec. 1076.103.  HOSPITAL SYSTEM 
  Sec. 1076.104.  RULES 
  Sec. 1076.105.  PURCHASING AND ACCOUNTING 
  Sec. 1076.106.  DISTRICT PROPERTY, FACILITIES, AND
                   EQUIPMENT 
  Sec. 1076.107.  EMINENT DOMAIN 
  Sec. 1076.108.  GIFTS, GRANTS, AND ENDOWMENTS 
  Sec. 1076.109.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR CARE AND TREATMENT 
  Sec. 1076.110.  CONTRACTS FOR SERVICES 
  Sec. 1076.111.  PROVISION OF CERTAIN HEALTH SERVICES 
  Sec. 1076.112.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1076.113.  NONPROFIT CORPORATION 
  [Sections 1076.114-1076.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 1076.151.  BUDGET 
  Sec. 1076.152.  PROPOSED BUDGET: NOTICE AND HEARING 
  Sec. 1076.153.  FISCAL YEAR 
  Sec. 1076.154.  ANNUAL AUDIT 
  Sec. 1076.155.  FINANCIAL REPORT 
  Sec. 1076.156.  PROJECTS AND PURCHASES EXEMPT FROM
                   ASSESSMENT OR TAXATION 
  Sec. 1076.157.  DEPOSITORY 
  Sec. 1076.158.  AUTHORITY TO BORROW MONEY; SECURITY 
  Sec. 1076.159.  INVESTMENT OF DISTRICT MONEY 
  [Sections 1076.160-1076.200 reserved for expansion]
  SUBCHAPTER E. BONDS
  Sec. 1076.201.  GENERAL OBLIGATION BONDS 
  Sec. 1076.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1076.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1076.204.  EXECUTION OF GENERAL OBLIGATION BONDS 
  Sec. 1076.205.  REVENUE BONDS 
  Sec. 1076.206.  REFUNDING BONDS 
  Sec. 1076.207.  MATURITY OF BONDS 
  Sec. 1076.208.  ADDITIONAL MEANS OF SECURING REPAYMENT
                   OF BONDS 
  Sec. 1076.209.  USE OF BOND PROCEEDS 
  Sec. 1076.210.  BONDS EXEMPT FROM TAXATION 
  [Sections 1076.211-1076.250 reserved for expansion]
  SUBCHAPTER F. TAXES
  Sec. 1076.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1076.252.  TAX RATE 
  Sec. 1076.253.  TAX ASSESSOR-COLLECTOR 
  [Sections 1076.254-1076.300 reserved for expansion]
  SUBCHAPTER G. DISSOLUTION
  Sec. 1076.301.  DISSOLUTION; ELECTION 
  Sec. 1076.302.  NOTICE OF ELECTION 
  Sec. 1076.303.  BALLOT 
  Sec. 1076.304.  ELECTION RESULTS 
  Sec. 1076.305.  TRANSFER OR ADMINISTRATION OF ASSETS 
  Sec. 1076.306.  IMPOSITION OF TAX AND RETURN OF SURPLUS
                   TAXES 
  Sec. 1076.307.  REPORT; DISSOLUTION ORDER 
  CHAPTER 1076. STARR COUNTY HOSPITAL DISTRICT
  OF STARR COUNTY, TEXAS
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1076.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the board of trustees of the
  district.
               (2)  "District" means the Starr County Hospital
  District of Starr County, Texas.
               (3)  "Trustee" means a member of the board. (Acts 63rd
  Leg., R.S., Ch. 118, Sec. 1 (part); New.)
         Sec. 1076.002.  AUTHORITY FOR CREATION. The Starr County
  Hospital District of Starr County, Texas, is created under the
  authority of Section 9, Article IX, Texas Constitution. (Acts 63rd
  Leg., R.S., Ch. 118, Sec. 1 (part).)
         Sec. 1076.003.  POLITICAL SUBDIVISION. The district is a
  political subdivision of this state. (Acts 63rd Leg., R.S., Ch.
  118, Sec. 12 (part).)
         Sec. 1076.004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
  The accomplishment of the purposes stated in this chapter is for the
  benefit of the people of this state and for the improvement of their
  property and industries.
         (b)  The district is a governmental agency performing an
  essential public function under the constitution in carrying out
  the purposes of this chapter. (Acts 63rd Leg., R.S., Ch. 118, Secs.
  12 (part), 13 (part).)
         Sec. 1076.005.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of Starr County,
  Texas, including all "cut over" or "banco" land on the north side of
  the Rio Grande River. (Acts 63rd Leg., R.S., Ch. 118, Sec. 1
  (part).)
  [Sections 1076.006-1076.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1076.051.  BOARD ELECTION; TERM. (a) A board of five
  trustees shall exercise the powers of the district.
         (b)  One trustee is elected from each commissioners precinct
  and one trustee is elected from the district at large by a majority
  of district voters.
         (c)  Unless four-year terms are established under Section
  285.081, Health and Safety Code:
               (1)  trustees serve two-year terms;
               (2)  trustees who represent odd-numbered precincts and
  the trustee elected at large are elected in odd-numbered years;
               (3)  trustees who represent even-numbered precincts
  are elected in even-numbered years; and
               (4)  a trustee's election shall be held each year on the
  May uniform election date prescribed by Section 41.001, Election
  Code, or another date authorized by law.  (Acts 63rd Leg., R.S., Ch.
  118, Secs. 4(a) (part), (c) (part).)
         Sec. 1076.052.  NOTICE OF ELECTION. Notice of a trustees'
  election shall be published in a newspaper of general circulation
  in the district in accordance with Section 4.003, Election Code.
  (Acts 63rd Leg., R.S., Ch. 118, Sec. 4(c) (part).)
         Sec. 1076.053.  QUALIFICATIONS FOR OFFICE. To qualify for
  election as a trustee, a person must:
               (1)  be at least 18 years of age;
               (2)  have been a resident of the district for at least
  two years;
               (3)  have been a resident of the commissioners precinct
  from which the person is to be elected for at least two years,
  unless the person is running at large; and
               (4)  be a qualified voter. (Acts 63rd Leg., R.S., Ch.
  118, Sec. 4(a) (part).)
         Sec. 1076.054.  BOND. (a) Each trustee shall execute a good
  and sufficient commercial bond for $1,000 that is:
               (1)  payable to the district; and
               (2)  conditioned on the faithful performance of the
  trustee's duties.
         (b)  The district may pay for a trustee's bond with district
  money. (Acts 63rd Leg., R.S., Ch. 118, Sec. 4(a) (part).)
         Sec. 1076.055.  BOARD VACANCY. If a vacancy occurs on the
  board, the majority of remaining trustees shall appoint a trustee
  for the unexpired term. (Acts 63rd Leg., R.S., Ch. 118, Sec. 4(c)
  (part).)
         Sec. 1076.056.  OFFICERS; DUTIES; ABSENCE OF PRESIDENT OR
  SECRETARY. (a) The board shall elect from among its members a
  president, vice president, and secretary, and other officers as in
  the judgment of the board are necessary.
         (b)  The president shall preside over district meetings and
  has the same right to vote as any other trustee.
         (c)  If the president is absent or fails or declines to act,
  the vice president shall perform the president's duties and
  exercise the president's powers under this chapter.
         (d)  The secretary:
               (1)  shall keep and sign the minutes of the board
  meetings; and
               (2)  is the custodian of the district's minutes and
  records.
         (e)  If the secretary is absent from a board meeting, the
  board shall name a secretary pro tem for the meeting who may:
               (1)  exercise all the duties and powers of the
  secretary for the meeting; and
               (2)  sign the minutes of the meeting. (Acts 63rd Leg.,
  R.S., Ch. 118, Sec. 4(d).)
         Sec. 1076.057.  COMPENSATION; EXPENSES. A trustee serves
  without compensation but may be reimbursed for actual expenses
  incurred in the performance of official duties on approval of the
  expenses by the board. (Acts 63rd Leg., R.S., Ch. 118, Sec. 4(a)
  (part).)
         Sec. 1076.058.  DISTRICT ADMINISTRATOR; ASSISTANT
  ADMINISTRATOR. (a) The board may appoint a qualified person as
  district administrator.
         (b)  The board may appoint an assistant administrator.
         (c)  The district administrator and any assistant
  administrator serve at the will of the board and shall receive the
  compensation determined by the board.
         (d)  On assuming the duties of district administrator, the
  administrator shall execute a bond payable to the district in an
  amount set by the board that:
               (1)  is conditioned on the administrator performing the
  administrator's duties; and
               (2)  contains other conditions the board may require.
         (e)  On assuming the duties of assistant administrator, the
  assistant administrator shall execute a bond payable to the
  district in an amount set by the board that:
               (1)  is conditioned on the assistant administrator
  performing the assistant administrator's duties; and
               (2)  contains other conditions the board may require.
  (Acts 63rd Leg., R.S., Ch. 118, Sec. 5(b) (part).)
         Sec. 1076.059.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
  Subject to the limitations prescribed by the board, the district
  administrator shall:
               (1)  supervise the work and activities of the district;
  and
               (2)  direct the affairs of the district. (Acts 63rd
  Leg., R.S., Ch. 118, Sec. 5(b) (part).)
         Sec. 1076.060.  APPOINTMENT AND REMOVAL OF MEDICAL STAFF AND
  EMPLOYEES. (a) The board may appoint any doctors to its medical
  staff and employ any technicians, nurses, and other employees as
  considered necessary for the efficient operation of the district or
  may provide that the district administrator has the authority to
  employ those persons.
         (b)  The board may make temporary appointments the board
  considers necessary.
         (c)  The board may, after due process, remove from the
  medical staff any doctor whose removal the board considers
  necessary for the efficient operation of the district. (Acts 63rd
  Leg., R.S., Ch. 118, Sec. 5(c).)
         Sec. 1076.061.  RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES.
  The board may use district money, enter into agreements, and take
  other necessary action to recruit or otherwise obtain physicians
  and other personnel for the district's medical staff or for
  employment with the district, including:
               (1)  advertising and marketing;
               (2)  paying recruitment expenses;
               (3)  paying travel and relocation expenses;
               (4)  providing a guarantee, subsidy, loan, or
  scholarship;
               (5)  sharing personnel; and
               (6)  authorizing a physician to use space in a district
  facility or providing a rent subsidy to a physician. (Acts 63rd
  Leg., R.S., Ch. 118, Sec. 4(e).)
         Sec. 1076.062.  HEALTH CARE EDUCATIONAL PROGRAMS. The board
  may use district money, enter into agreements, and take other
  necessary action to conduct, participate in, or assist health care
  educational programs for the public and for current or potential
  medical staff members or employees. (Acts 63rd Leg., R.S., Ch. 118,
  Sec. 4(f).)
         Sec. 1076.063.  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. (Acts 63rd Leg., R.S., Ch.
  118, Sec. 5(e).)
  [Sections 1076.064-1076.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1076.101.  DISTRICT RESPONSIBILITY. The district shall
  provide medical and hospital care for the district's needy
  inhabitants. (Acts 63rd Leg., R.S., Ch. 118, Sec. 2 (part).)
         Sec. 1076.102.  MANAGEMENT, CONTROL, AND ADMINISTRATION.
  (a) The district has authority to operate hospital facilities.
         (b)  The board shall manage, control, and administer the
  district's hospital and hospital system and carry out the functions
  of the district. (Acts 63rd Leg., R.S., Ch. 118, Secs. 2 (part),
  5(a) (part).)
         Sec. 1076.103.  HOSPITAL SYSTEM. The district shall provide
  for:
               (1)  the establishment of a hospital or hospital system
  in the district to provide medical and hospital care and treatment
  and related services to district residents by:
                     (A)  purchasing, constructing, acquiring,
  repairing, or renovating buildings, facilities, and improvements;
  and
                     (B)  equipping the buildings, facilities, and
  improvements for hospital purposes; and
               (2)  the operation, maintenance, and administration of
  the hospital or hospital system for hospital purposes. (Acts 63rd
  Leg., R.S., Ch. 118, Sec. 2 (part).)
         Sec. 1076.104.  RULES. The board may adopt rules for the
  operation of the district. (Acts 63rd Leg., R.S., Ch. 118, Sec. 5(a)
  (part).)
         Sec. 1076.105.  PURCHASING AND ACCOUNTING. 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. (Acts 63rd
  Leg., R.S., Ch. 118, Sec. 5(f).)
         Sec. 1076.106.  DISTRICT PROPERTY, FACILITIES, AND
  EQUIPMENT. (a) The board shall determine:
               (1)  the type, number, and location of buildings
  required to maintain an adequate hospital system; and
               (2)  the type of equipment necessary for hospital care.
         (b)  The board may:
               (1)  acquire property, including facilities and
  equipment, for the district for use in the hospital system;
               (2)  mortgage or pledge the property as security for
  the payment of the purchase price;
               (3)  lease hospital facilities for the district; and
               (4)  sell or otherwise dispose of property, including
  facilities or equipment, for the district. (Acts 63rd Leg., R.S.,
  Ch. 118, Sec. 5(j).)
         Sec. 1076.107.  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 a bond for the issuance
  of a temporary restraining order or a temporary injunction; or
               (2)  provide a bond for costs or a supersedeas bond on
  an appeal or petition for review. (Acts 63rd Leg., R.S., Ch. 118,
  Sec. 6.)
         Sec. 1076.108.  GIFTS, GRANTS, AND ENDOWMENTS. The board may
  accept for the district a gift, grant, 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. (Acts 63rd Leg., R.S., Ch. 118,
  Sec. 11.)
         Sec. 1076.109.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  CARE AND TREATMENT. 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 federal government is responsible. (Acts
  63rd Leg., R.S., Ch. 118, Sec. 5(d).)
         Sec. 1076.110.  CONTRACTS FOR SERVICES.  (a)  The board may
  contract with any person to obtain or supply the facilities and
  services the board considers necessary for the efficient operation
  of the district.
         (b)  The board may contract with a public or private
  hospital, a political subdivision of this state, or a state or
  federal agency for the district to provide a mobile emergency
  medical service or to provide for the investigatory or welfare
  needs of district inhabitants.  (Acts 63rd Leg., R.S., Ch. 118,
  Secs. 5(h), (i).)
         Sec. 1076.111.  PROVISION OF CERTAIN HEALTH SERVICES. The
  district may operate or provide for:
               (1)  the operation of a mobile emergency medical or air
  ambulance service;
               (2)  home health services, long-term care, skilled
  nursing care, intermediate nursing care, or hospice care; and
               (3)  any other reasonable or appropriate medical care
  or medical service. (Acts 63rd Leg., R.S., Ch. 118, Sec. 2 (part).)
         Sec. 1076.112.  PAYMENT FOR TREATMENT; PROCEDURES. (a) When
  a patient who resides in the district is admitted to a district
  facility, the board or district administrator shall have an inquiry
  made into the circumstances of:
               (1)  the patient; and
               (2)  the patient's relatives legally liable for the
  patient's support.
         (b)  If the board or district administrator determines that
  the patient or those relatives cannot pay for all or part of the
  patient's care and treatment in the hospital, the amount that
  cannot be paid becomes a charge against the district.
         (c)  If the board or district administrator determines that
  the patient or those relatives are liable to pay for all or part 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 care. The amount ordered must be proportionate to
  their financial ability and may not exceed the usual and customary
  charges for services.
         (d)  The board or district administrator may collect the
  amount from the patient's estate, or from any relative 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 between
  any party and the board or district administrator, the county court
  shall hold a hearing and, after calling witnesses, shall:
               (1)  resolve the dispute; and
               (2)  issue any appropriate orders.
         (f)  Either party to the dispute may appeal the order to the
  district court. (Acts 63rd Leg., R.S., Ch. 118, Sec. 9.)
         Sec. 1076.113.  NONPROFIT CORPORATION. (a) The district
  may create and sponsor a nonprofit corporation under the Business
  Organizations Code and may contribute money to or solicit money for
  the corporation.
         (b)  The corporation may use money contributed by the
  district only to provide health care or other services the district
  is authorized to provide under this chapter.
         (c)  The corporation may enter into a joint venture with any
  public or private entity or individual to provide health care or
  other services the district is authorized to provide under this
  chapter.
         (d)  The corporation may invest the corporation's money in
  any manner in which the district may invest the district's money,
  including investing money as authorized by Chapter 2256, Government
  Code.
         (e)  The board shall establish controls to ensure that the
  corporation uses its money as required by this section. (Acts 63rd
  Leg., R.S., Ch. 118, Sec. 5A.)
  [Sections 1076.114-1076.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 1076.151.  BUDGET. The board shall prepare a budget
  that includes:
               (1)  proposed expenditures and disbursements;
               (2)  estimated receipts and collections for the next
  fiscal year; and
               (3)  the amount of taxes required to be imposed to meet
  the proposed budget. (Acts 63rd Leg., R.S., Ch. 118, Sec. 5(g)
  (part).)
         Sec. 1076.152.  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 the district not later than
  the 10th day before the date of the hearing.
         (c)  Any district resident is entitled to:
               (1)  appear at the hearing; and
               (2)  be heard regarding any item in the proposed
  budget. (Acts 63rd Leg., R.S., Ch. 118, Sec. 5(g) (part).)
         Sec. 1076.153.  FISCAL YEAR. (a) The board shall establish
  the district fiscal year.
         (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. (Acts 63rd
  Leg., R.S., Ch. 118, Sec. 5(g) (part).)
         Sec. 1076.154.  ANNUAL AUDIT. As soon as practicable after
  the close of each fiscal year, the board shall have an annual audit
  made of the district's books and records by an independent public
  accountant. (Acts 63rd Leg., R.S., Ch. 118, Sec. 5(g) (part).)
         Sec. 1076.155.  FINANCIAL REPORT. (a) As soon as
  practicable after the close of each fiscal year, the district
  administrator shall prepare a report that includes:
               (1)  a complete sworn statement of all district money;
               (2)  a complete account of the disbursements of that
  money during the previous fiscal year; and
               (3)  the details of district operation during the
  previous fiscal year.
         (b)  The district administrator shall make the report to the
  board. (Acts 63rd Leg., R.S., Ch. 118, Sec. 5(g) (part).)
         Sec. 1076.156.  PROJECTS AND PURCHASES EXEMPT FROM
  ASSESSMENT OR TAXATION. The district is not required to pay a tax
  or assessment on:
               (1)  a district project or any part of the project; or
               (2)  a district purchase. (Acts 63rd Leg., R.S., Ch.
  118, Sec. 13 (part).)
         Sec. 1076.157.  DEPOSITORY. (a) The board shall select one
  or more banks in this state to act as a depository of bond proceeds
  or of revenue derived from the operation of district facilities.
         (b)  The depository shall, as determined by the board:
               (1)  furnish indemnity bonds;
               (2)  pledge securities; or
               (3)  meet any other requirement.
         (c)  Membership on the district's board of an officer or
  director of a bank does not disqualify the bank from being selected
  as depository. (Acts 63rd Leg., R.S., Ch. 118, Sec. 8.)
         Sec. 1076.158.  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)  a district tax to be imposed by the district during
  the 12-month period following the date of the pledge that is not
  pledged to pay the principal of or interest on district bonds; or
               (3)  a district bond that has 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. (Acts 63rd
  Leg., R.S., Ch. 118, Sec. 5B.)
         Sec. 1076.159.  INVESTMENT OF DISTRICT MONEY. (a)  The law
  applicable to municipalities with respect to security for and
  investment of money governs, as applicable, the investment of
  district money. The bond order, resolution, or trust indenture may
  further restrict the investment.
         (b)  To the extent authorized in the bond order, resolution,
  or trust indenture and until the money is needed, the district may
  invest the proceeds of district bonds in direct obligations of or
  obligations unconditionally guaranteed by the United States. (Acts
  63rd Leg., R.S., Ch. 118, Sec. 15.)
  [Sections 1076.160-1076.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 1076.201.  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 the purchase, construction,
  acquisition, repair, or renovation of buildings and improvements
  and equipping the buildings and improvements for district purposes
  or any combination of those purposes. (Acts 63rd Leg., R.S., Ch.
  118, Sec. 7(a) (part).)
         Sec. 1076.202.  TAX TO PAY GENERAL OBLIGATION BONDS. (a) At
  the time general obligation bonds are issued by the district, 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
  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 75
  cents on each $100 valuation of all taxable property in the
  district. (Acts 63rd Leg., R.S., Ch. 118, Secs. 7(a) (part), 12
  (part).)
         Sec. 1076.203.  GENERAL OBLIGATION BOND ELECTION. (a) The
  district may issue general obligation bonds or other bonds secured
  wholly or partly by an ad valorem tax, other than refunding bonds,
  only if the bonds are authorized by a majority of the voters voting
  at an election held for that purpose.
         (b)  The order and publication of notice for the bond
  election must be provided in accordance with Chapter 1251,
  Government Code. (Acts 63rd Leg., R.S., Ch. 118, Secs. 7(a) (part),
  7B(b).)
         Sec. 1076.204.  EXECUTION OF GENERAL OBLIGATION BONDS. The
  board president shall execute district general obligation bonds in
  the district's name, and the board secretary shall countersign the
  bonds in the manner provided by Chapter 618, Government Code. (Acts
  63rd Leg., R.S., Ch. 118, Sec. 7(c) (part).)
         Sec. 1076.205.  REVENUE BONDS. (a) The board may issue
  revenue bonds to:
               (1)  purchase, construct, acquire, repair, equip, or
  renovate buildings and improvements for district purposes; or
               (2)  acquire sites for district purposes.
         (b)  The bonds must be payable from and secured by a pledge of
  all or part of district revenue derived from the operation of the
  district's hospital or health care facilities.
         (c)  The bonds may be additionally secured by a mortgage or
  deed of trust lien on all or part of district 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.  (Acts 63rd Leg., R.S., Ch. 118, Secs. 7A(a) (part), (b),
  (c), (d).)
         Sec. 1076.206.  REFUNDING BONDS. (a) The board may issue
  refunding bonds to refund any outstanding indebtedness issued or
  assumed by the district.
         (b)  A refunding bond may be sold, with the proceeds of the
  refunding bond applied to the payment of outstanding indebtedness.
  (Acts 63rd Leg., R.S., Ch. 118, Secs. 7(b) (part), 7A(a) (part).)
         Sec. 1076.207.  MATURITY OF BONDS. District bonds must
  mature not later than 40 years after the date of issuance. (Acts
  63rd Leg., R.S., Ch. 118, Sec. 7(c) (part).)
         Sec. 1076.208.  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
  1076.202 and revenue and other sources as authorized by Section
  1076.205. (Acts 63rd Leg., R.S., Ch. 118, Sec. 7B(a).)
         Sec. 1076.209.  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. (Acts 63rd Leg., R.S., Ch.
  118, Sec. 7C.)
         Sec. 1076.210.  BONDS EXEMPT FROM TAXATION. The following
  are exempt from taxation by this state:
               (1)  bonds issued by the district;
               (2)  the transfer of the bonds; and
               (3)  the income from the bonds, including profits made
  on the sale of the bonds. (Acts 63rd Leg., R.S., Ch. 118, Sec. 13
  (part).)
  [Sections 1076.211-1076.250 reserved for expansion]
  SUBCHAPTER F. TAXES
         Sec. 1076.251.  IMPOSITION OF AD VALOREM TAX. The board may
  impose a tax on all property in the district subject to district
  taxation. (Acts 63rd Leg., R.S., Ch. 118, Secs. 3(a) (part), 10(a)
  (part).)
         Sec. 1076.252.  TAX RATE. 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 taxes, which may not exceed 75 cents
  on each $100 valuation of all taxable property in the district.
  (Acts 63rd Leg., R.S., Ch. 118, Secs. 3(a) (part), 10(a) (part).)
         Sec. 1076.253.  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. (Acts 63rd Leg., R.S., Ch. 118, Sec.
  10(b).)
  [Sections 1076.254-1076.300 reserved for expansion]
  SUBCHAPTER G. DISSOLUTION
         Sec. 1076.301.  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.
         (c)  The board shall order an election if the board receives
  a petition requesting an election that is signed by at least 15
  percent of the registered district voters.
         (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, Election Code, does not apply to an
  election ordered under this section. (Acts 63rd Leg., R.S., Ch.
  118, Secs. 11A(a), (b), (c), (d).)
         Sec. 1076.302.  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 notice must appear not later
  than the 35th day before the date set for the election. (Acts 63rd
  Leg., R.S., Ch. 118, Sec. 11A(e).)
         Sec. 1076.303.  BALLOT. The ballot for an election under
  this subchapter must be printed to permit voting for or against the
  proposition: "The dissolution of the Starr County Hospital
  District." (Acts 63rd Leg., R.S., Ch. 118, Sec. 11A(f).)
         Sec. 1076.304.  ELECTION RESULTS. (a) If a majority of the
  votes in an election under this subchapter favor dissolution, the
  board shall order that the district be 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. (Acts 63rd Leg., R.S., Ch. 118, Sec.
  11A(g).)
         Sec. 1076.305.  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 Starr
  County or another governmental entity in Starr 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 district 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.
         (c)  If the district does not make the transfer under
  Subsection (a)(1) and the board administers the property, assets,
  and debts of the district under Subsection (a)(2), the district is
  dissolved when all the money has been disposed of and all district
  debts have been paid or settled. (Acts 63rd Leg., R.S., Ch. 118,
  Secs. 11A(h), (i), (j).)
         Sec. 1076.306.  IMPOSITION OF TAX AND RETURN OF SURPLUS
  TAXES. (a) After the board finds that the district is dissolved,
  the board shall:
               (1)  determine any debt owed by the district; and
               (2)  impose on the property included on the district's
  tax roll a tax that is in proportion of any debt to the property
  value.
         (b)  On the payment of all outstanding debts and obligations
  of the district, the board shall order the board 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 board
  secretary to transmit the money to the county tax
  assessor-collector. (Acts 63rd Leg., R.S., Ch. 118, Secs. 11A(k),
  (l).)
         Sec. 1076.307.  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 Starr County summarizing the board's actions in dissolving the
  district.
         (b)  Not later than the 10th day after the date the
  commissioners court receives the report and determines that the
  requirements of this subchapter have been fulfilled, the
  commissioners court shall enter an order:
               (1)  dissolving the district; and
               (2)  releasing the board from any further duty or
  obligation. (Acts 63rd Leg., R.S., Ch. 118, Sec. 11A(m).)
  CHAPTER 1087. RANKIN COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1087.001.  DEFINITIONS 
  Sec. 1087.002.  AUTHORITY FOR CREATION 
  Sec. 1087.003.  POLITICAL SUBDIVISION 
  Sec. 1087.004.  DISTRICT TERRITORY 
  Sec. 1087.005.  CONSOLIDATION OF DISTRICT AND MCCAMEY
                   COUNTY HOSPITAL DISTRICT 
  [Sections 1087.006-1087.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1087.051.  BOARD ELECTION; TERM 
  Sec. 1087.052.  NOTICE OF ELECTION 
  Sec. 1087.053.  QUALIFICATIONS FOR OFFICE 
  Sec. 1087.054.  BOND; RECORD OF BOND 
  Sec. 1087.055.  BOARD VACANCY 
  Sec. 1087.056.  OFFICERS 
  Sec. 1087.057.  VOTING REQUIREMENT 
  Sec. 1087.058.  DISTRICT ADMINISTRATOR 
  Sec. 1087.059.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1087.060.  ASSISTANT TO DISTRICT ADMINISTRATOR 
  Sec. 1087.061.  LEGAL COUNSEL 
  Sec. 1087.062.  RETIREMENT PROGRAM 
  Sec. 1087.063.  MAINTENANCE OF RECORDS; PUBLIC
                   INSPECTION 
  [Sections 1087.064-1087.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1087.101.  DISTRICT RESPONSIBILITY 
  Sec. 1087.102.  RESTRICTION ON COUNTY OR MUNICIPALITY
                   TAXATION 
  Sec. 1087.103.  PURCHASING AND ACCOUNTING 
  Sec. 1087.104.  EMINENT DOMAIN 
  Sec. 1087.105.  GIFTS AND ENDOWMENTS 
  Sec. 1087.106.  CONSTRUCTION CONTRACTS 
  Sec. 1087.107.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR CARE AND TREATMENT 
  Sec. 1087.108.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1087.109.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1087.110-1087.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 1087.151.  BUDGET 
  Sec. 1087.152.  PROPOSED BUDGET: NOTICE AND HEARING 
  Sec. 1087.153.  FISCAL YEAR 
  Sec. 1087.154.  ANNUAL AUDIT 
  Sec. 1087.155.  FINANCIAL REPORT 
  Sec. 1087.156.  DEPOSITORY 
  Sec. 1087.157.  INVESTMENT RESTRICTIONS 
  Sec. 1087.158.  AUTHORITY TO BORROW MONEY; SECURITY 
  [Sections 1087.159-1087.200 reserved for expansion]
  SUBCHAPTER E. BONDS
  Sec. 1087.201.  GENERAL OBLIGATION BONDS 
  Sec. 1087.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1087.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1087.204.  MATURITY OF GENERAL OBLIGATION BONDS 
  Sec. 1087.205.  EXECUTION OF GENERAL OBLIGATION BONDS 
  Sec. 1087.206.  REVENUE BONDS 
  Sec. 1087.207.  REFUNDING BONDS 
  Sec. 1087.208.  ADDITIONAL MEANS OF SECURING REPAYMENT
                   OF BONDS 
  Sec. 1087.209.  USE OF BOND PROCEEDS 
  [Sections 1087.210-1087.250 reserved for expansion]
  SUBCHAPTER F. TAXES
  Sec. 1087.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1087.252.  TAX RATE 
  Sec. 1087.253.  ASSESSMENT AND COLLECTION BY COUNTY TAX
                   ASSESSOR-COLLECTOR 
  Sec. 1087.254.  ELECTION FOR SEPARATE TAX ASSESSOR AND
                   SEPARATE TAX COLLECTOR 
  Sec. 1087.255.  APPOINTMENT OF SEPARATE TAX ASSESSOR
                   AND SEPARATE TAX COLLECTOR 
  CHAPTER 1087. RANKIN COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1087.001.  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 Rankin County Hospital
  District. (New.)
         Sec. 1087.002.  AUTHORITY FOR CREATION. The Rankin County
  Hospital District is created under the authority of Section 9,
  Article IX, Texas Constitution, and has the rights, powers, and
  duties prescribed by this chapter. (Acts 60th Leg., R.S., Ch. 182,
  Sec. 1 (part).)
         Sec. 1087.003.  POLITICAL SUBDIVISION. The district is a
  political subdivision of this state. (Acts 60th Leg., R.S., Ch.
  182, Sec. 21 (part).)
         Sec. 1087.004.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of the Rankin
  Independent School District, as those boundaries existed on January
  1, 1967. (Acts 60th Leg., R.S., Ch. 182, Sec. 1 (part).)
         Sec. 1087.005.  CONSOLIDATION OF DISTRICT AND MCCAMEY COUNTY
  HOSPITAL DISTRICT. (a) The McCamey County Hospital District may be
  consolidated into the Rankin County Hospital District as provided
  by this section.
         (b)  On the request of 25 percent or more of the taxpaying
  voters of each hospital district, the Upton County Commissioners
  Court shall submit the consolidation proposal for vote.
         (c)  Consolidation of the district and the McCamey County
  Hospital District must be separately approved by a two-thirds
  majority of the voters voting in each hospital district at an
  election ordered and held for that purpose.
         (d)  At the consolidation election, five directors shall be
  elected to serve the consolidated district.
         (e)  Not more than one consolidation election may be held
  after each general election.
         (f)  Refunding bonds may be issued by the consolidated
  district to refund any outstanding bonds, including bonds issued by
  the district on consolidation, original bonds, and refunding bonds.
  Additional funding may be provided as authorized by this chapter.
  (Acts 60th Leg., R.S., Ch. 182, Sec. 18.)
  [Sections 1087.006-1087.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1087.051.  BOARD ELECTION; TERM. (a) The board
  consists of five directors elected from the district at large.
         (b)  Directors serve staggered two-year terms unless
  four-year terms are established under Section 285.081, Health and
  Safety Code.
         (c)  An election shall be held annually on the May uniform
  election date or another date authorized by law. (Acts 60th Leg.,
  R.S., Ch. 182, Secs. 3(a), (i) (part).)
         Sec. 1087.052.  NOTICE OF ELECTION. Notice of a directors' 
  election shall be published in a newspaper of general circulation
  in Upton County in accordance with Section 4.003, Election Code.
  (Acts 60th Leg., R.S., Ch. 182, Sec. 3(i) (part).)
         Sec. 1087.053.  QUALIFICATIONS FOR OFFICE. (a)  A person may
  not be elected or appointed a director unless the person is:
               (1)  a resident of the district; and
               (2)  at least 18 years of age.
         (b)  A district employee may not serve as director.  (Acts
  60th Leg., R.S., Ch. 182, Secs. 3(b), (c).)
         Sec. 1087.054.  BOND; RECORD OF BOND. (a) Before assuming
  the duties of office, each director must execute a bond for $1,000
  that is:
               (1)  payable to the district; and
               (2)  conditioned on the faithful performance of the
  director's duties.
         (b)  The district shall pay for a director's bond.
         (c)  Each director's bond shall be deposited with a
  depository bank of the district for safekeeping. (Acts 60th Leg.,
  R.S., Ch. 182, Sec. 3(d).)
         Sec. 1087.055.  BOARD VACANCY. (a) If a vacancy occurs in
  the office of director, the remaining directors shall appoint a
  director.
         (b)  A director appointed under this section serves until the
  next election for directors. A director elected under this
  subsection serves only for the remainder of the unexpired term.  
  (Acts 60th Leg., R.S., Ch. 182, Sec. 3(h).)
         Sec. 1087.056.  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 a
  director. (Acts 60th Leg., R.S., Ch. 182, Sec. 3(e).)
         Sec. 1087.057.  VOTING REQUIREMENT. A concurrence of three
  directors is sufficient in any matter relating to district
  business. (Acts 60th Leg., R.S., Ch. 182, Sec. 3(f).)
         Sec. 1087.058.  DISTRICT ADMINISTRATOR. (a) The board may
  appoint a qualified person as district administrator.
         (b)  The district administrator serves at the will of the
  board and receives the compensation determined by the board.
         (c)  The board may remove the district administrator at any
  time.
         (d)  Before assuming the duties of district administrator,
  the administrator must execute a bond payable to the district in an
  amount of not less than $10,000 that:
               (1)  is conditioned on the administrator performing
  well and faithfully the administrator's required duties; and
               (2)  contains any other condition the board may
  require.
         (e)  The board may pay for the bond with district money.  
  (Acts 60th Leg., R.S., Ch. 182, Secs. 4(a), (b), (c).)
         Sec. 1087.059.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
  Subject to any limitation prescribed by the board, the district
  administrator shall:
               (1)  perform the duties required by the board;
               (2)  supervise the work and activities of the district;
  and
               (3)  direct the affairs of the district. (Acts 60th
  Leg., R.S., Ch. 182, Sec. 4(d).)
         Sec. 1087.060.  ASSISTANT TO DISTRICT ADMINISTRATOR. (a)
  The board may designate an assistant to the district administrator
  to discharge a duty or function of the administrator in the event of
  the administrator's incapacity, absence, or inability to discharge
  the duty or function.
         (b)  The assistant shall post the bond required by board
  order.
         (c)  The assistant is subject to any limitation prescribed by
  board order. (Acts 60th Leg., R.S., Ch. 182, Sec. 5.)
         Sec. 1087.061.  LEGAL COUNSEL. The board may employ legal
  counsel to represent the district in all legal matters. (Acts 60th
  Leg., R.S., Ch. 182, Sec. 20.)
         Sec. 1087.062.  RETIREMENT PROGRAM. (a)  With the approval
  of the Upton County Commissioners Court, the board may contract
  with this state and the federal government as necessary to
  establish or continue a retirement program for the benefit of
  district employees.
         (b)  The board may establish other retirement programs for
  the benefit of district employees as the board considers necessary
  and advisable. (Acts 60th Leg., R.S., Ch. 182, Secs. 4(e) (part),
  (f).)
         Sec. 1087.063.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.
  Except as provided by Section 1087.054, 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. (Acts 60th Leg., R.S., Ch. 182, Secs.
  3(g), 9 (part).)
  [Sections 1087.064-1087.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1087.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for providing medical and hospital care for the
  district's needy and indigent residents. (Acts 60th Leg., R.S.,
  Ch. 182, Sec. 11 (part).)
         Sec. 1087.102.  RESTRICTION ON COUNTY OR MUNICIPALITY
  TAXATION.  A county or a municipality in the district may not impose
  any tax for hospital purposes. (Acts 60th Leg., R.S., Ch. 182, Sec.
  11 (part).)
         Sec. 1087.103.  PURCHASING AND ACCOUNTING.  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
  district. (Acts 60th Leg., R.S., Ch. 182, Secs. 13(a), (b).)
         Sec. 1087.104.  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 a bond for the issuance
  of a temporary restraining order or a temporary injunction; or
               (2)  provide a bond for costs or a supersedeas bond on
  an appeal or petition for review.  (Acts 60th Leg., R.S., Ch. 182,
  Sec. 17.)
         Sec. 1087.105.  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, and provisions prescribed in writing by
  the donor that are not inconsistent with the proper management and
  objectives of the district. (Acts 60th Leg., R.S., Ch. 182, Sec.
  16.)
         Sec. 1087.106.  CONSTRUCTION CONTRACTS.  (a)  The board may
  enter into purchase or construction contracts for the district.
         (b)  The board may enter into a construction contract that
  involves the expenditure of more than the amount provided by
  Section 271.024, Local Government Code, only after advertising as
  provided by Subchapter B, Chapter 271, Local Government Code.
  (Acts 60th Leg., R.S., Ch. 182, Sec. 13(c).)
         Sec. 1087.107.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  CARE AND TREATMENT. The board, with the approval of the Upton
  County Commissioners Court, may contract with:
               (1)  a county, other than Upton County, for the care and
  treatment of a person of that county; and
               (2)  this state or a federal agency for the care and
  treatment of a sick or injured person for whom the state or agency
  is responsible. (Acts 60th Leg., R.S., Ch. 182, Sec. 4(e) (part).)
         Sec. 1087.108.  PAYMENT FOR TREATMENT; PROCEDURES. (a)
  When a patient from the district is admitted to a district facility,
  the district administrator shall have an inquiry made into the
  circumstances of:
               (1)  the patient; and
               (2)  the patient's relatives legally liable for the
  patient's support.
         (b)  If the district administrator determines that the
  patient or those relatives cannot pay all or part of the patient's
  care and treatment in the hospital, the amount that cannot be paid
  becomes a charge against the district.
         (c)  If the district administrator determines that the
  patient or those relatives are liable to pay for all or part 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 the financial ability and may not exceed the
  actual per capita cost of maintenance.
         (d)  The district administrator may collect the amount from
  the patient's estate, or from those relatives 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, or doubt in the district
  administrator's mind, as to the ability to pay, the board shall hold
  a hearing and, after calling witnesses, shall:
               (1)  resolve the dispute or doubt; and
               (2)  issue any appropriate order.
         (f)  Either party to the dispute may appeal the order to the
  district court. The appeal is de novo as that term is used in an
  appeal from a justice court to a county court. (Acts 60th Leg.,
  R.S., Ch. 182, Sec. 15.)
         Sec. 1087.109.  AUTHORITY TO SUE AND BE SUED. As a
  governmental agency, the district may sue and be sued in its own
  name in any court of this state. (Acts 60th Leg., R.S., Ch. 182,
  Sec. 21 (part).)
  [Sections 1087.110-1087.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 1087.151.  BUDGET. The board annually shall have a
  budget 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. (Acts 60th Leg., R.S., Ch. 182, Sec. 9 (part).)
         Sec. 1087.152.  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 Upton County not later than
  the 10th day before the date of the hearing.
         (c)  Any district taxpayer 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. (Acts 60th Leg., R.S., Ch. 182, Sec. 9 (part).)
         Sec. 1087.153.  FISCAL YEAR. The district's fiscal year
  begins on October 1 and ends on September 30. (Acts 60th Leg.,
  R.S., Ch. 182, Sec. 9 (part).)
         Sec. 1087.154.  ANNUAL AUDIT. (a)  The board annually shall
  have an independent audit made of the district's books and records
  for the preceding fiscal year.
         (b)  Not later than December 31 of each year, the audit shall
  be filed:
               (1)  with the county clerk of Upton County; and
               (2)  at the district's office. (Acts 60th Leg., R.S.,
  Ch. 182, Sec. 9 (part).)
         Sec. 1087.155.  FINANCIAL REPORT. (a) The board and the
  district administrator shall annually prepare a report under oath
  that includes:
               (1)  a complete statement of:
                     (A)  all money and choses in action; and
                     (B)  how the money and choses in action were
  disbursed or otherwise disposed;
               (2)  the details of district operation during the
  preceding fiscal year; and
               (3)  a full and complete list of all delinquent
  accounts owing and due the district, including names and addresses
  of delinquent debtors.
         (b)  The report shall be filed in:
               (1)  the district office; and
               (2)  the office of the county clerk of Upton County.  
  (Acts 60th Leg., R.S., Ch. 182, Sec. 9 (part).)
         Sec. 1087.156.  DEPOSITORY.  (a) The board shall select one
  or more banks to serve as a depository for district money.
         (b)  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.
         (c)  Membership on the district's board of an officer or
  director of a bank does not disqualify the bank from being
  designated as depository. (Acts 60th Leg., R.S., Ch. 182, Sec.
  10(a).)
         Sec. 1087.157.  INVESTMENT RESTRICTIONS. The board may
  invest operating, depreciation, or building reserves only in funds
  or securities specified by Chapter 2256, Government Code.  (Acts
  60th Leg., R.S., Ch. 182, Sec. 10(b).)
         Sec. 1087.158.  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)  tax revenue to be collected by the district during
  the 12-month period following the date of the pledge that is 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.  (Acts 60th
  Leg., R.S., Ch. 182, Sec. 7A.)
  [Sections 1087.159-1087.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 1087.201.  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 and improvements; and
               (2)  equipping buildings and improvements for hospital
  purposes. (Acts 60th Leg., R.S., Ch. 182, Sec. 7(a).)
         Sec. 1087.202.  TAX TO PAY GENERAL OBLIGATION BONDS. (a) At
  the time general obligation bonds are issued by the district, 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
  the bonds as the bonds mature.
         (b)  The tax required by this section together with any other
  ad valorem tax imposed for the district may not in any year exceed
  75 cents on each $100 valuation of all taxable property in the
  district. (Acts 60th Leg., R.S., Ch. 182, Sec. 7(b).)
         Sec. 1087.203.  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 call the election on the board's 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 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 the district once each week for two
  consecutive weeks before the date of the election. The first
  publication must occur at least 20 days before the date of the
  election. (Acts 60th Leg., R.S., Ch. 182, Sec. 7(d) (part).)
         Sec. 1087.204.  MATURITY OF GENERAL OBLIGATION BONDS.
  District general obligation bonds must mature not later than 40
  years after the date of issuance. (Acts 60th Leg., R.S., Ch. 182,
  Sec. 7(d) (part).)
         Sec. 1087.205.  EXECUTION OF GENERAL OBLIGATION BONDS. The
  board's presiding officer shall execute the general obligation
  bonds in the district's name, and the board secretary shall
  countersign the bonds. (Acts 60th Leg., R.S., Ch. 182, Sec. 7(c).)
         Sec. 1087.206.  REVENUE BONDS. (a) The board may issue
  revenue bonds to:
               (1)  purchase, construct, acquire, repair, or renovate
  buildings or improvements;
               (2)  equip buildings or improvements for hospital
  purposes; or
               (3)  acquire real property 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 lien 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. (Acts 60th Leg., R.S., Ch. 182, Secs. 7(f),
  (g).)
         Sec. 1087.207.  REFUNDING BONDS. (a) The board may, without
  an election, issue refunding bonds to refund outstanding bonds
  issued or assumed 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 outstanding bonds and the unpaid matured interest
  on the bonds. (Acts 60th Leg., R.S., Ch. 182, Sec. 7(e).)
         Sec. 1087.208.  ADDITIONAL MEANS OF SECURING REPAYMENT OF
  BONDS. In addition to the authority to issue general obligation 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 1087.202
  and revenue and other sources as authorized by Section 1087.206.
  (Acts 60th Leg., R.S., Ch. 182, Sec. 7(h).)
         Sec. 1087.209.  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. (Acts 60th Leg., R.S., Ch.
  182, Sec. 7(i).)
  [Sections 1087.210-1087.250 reserved for expansion]
  SUBCHAPTER F. TAXES
         Sec. 1087.251.  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 as
  provided by this chapter;
               (2)  provide for the operation and maintenance of the
  hospital or hospital system;
               (3)  make improvements and additions to the district's
  hospital system; and
               (4)  acquire necessary sites for improvements or
  additions by purchase, lease, or condemnation. (Acts 60th Leg.,
  R.S., Ch. 182, Secs. 6 (part), 9 (part).)
         Sec. 1087.252.  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. (Acts 60th Leg., R.S., Ch. 182, Sec. 6
  (part).)
         Sec. 1087.253.  ASSESSMENT AND COLLECTION BY COUNTY TAX
  ASSESSOR-COLLECTOR. (a)  This section applies unless an election
  is held under Section 1087.254.
         (b)  The tax assessor-collector of Upton County shall
  collect the taxes imposed on all property subject to district
  taxation. (Acts 60th Leg., R.S., Ch. 182, Secs. 6 (part), 9
  (part).)
         Sec. 1087.254.  ELECTION FOR SEPARATE TAX ASSESSOR AND
  SEPARATE TAX COLLECTOR. (a) On receipt of a petition signed by at
  least five percent of the taxpaying voters in the district, the
  court may order an election to determine whether the district shall
  have a separate tax assessor and separate tax collector for the
  assessment and collection of district taxes.
         (b)  Notice of the election shall be given as required by
  Section 1087.052. (Acts 60th Leg., R.S., Ch. 182, Sec. 19 (part).)
         Sec. 1087.255.  APPOINTMENT OF SEPARATE TAX ASSESSOR AND
  SEPARATE TAX COLLECTOR. If the appointment of a separate tax
  assessor and separate tax collector is approved by a two-thirds
  majority vote of the district voters voting at an election held
  under Section 1087.254, the board shall appoint:
               (1)  a suitable person as tax assessor; and
               (2)  a suitable person as tax collector. (Acts 60th
  Leg., R.S., Ch. 182, Sec. 19 (part).)
  CHAPTER 1096. SOUTH LIMESTONE HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1096.001.  DEFINITIONS 
  Sec. 1096.002.  AUTHORITY FOR CREATION 
  Sec. 1096.003.  DISTRICT TERRITORY 
  Sec. 1096.004.  CORRECTION OF INVALID PROCEDURES 
  Sec. 1096.005.  DISTRICT SUPPORT AND MAINTENANCE NOT
                   STATE OBLIGATION 
  Sec. 1096.006.  RESTRICTION ON STATE FINANCIAL
                   ASSISTANCE 
  [Sections 1096.007-1096.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1096.051.  BOARD ELECTION; TERM 
  Sec. 1096.052.  QUALIFICATIONS FOR OFFICE 
  Sec. 1096.053.  BOND; RECORD OF BOND AND OATH 
  Sec. 1096.054.  BOARD VACANCY 
  Sec. 1096.055.  OFFICERS 
  Sec. 1096.056.  COMPENSATION; EXPENSES 
  Sec. 1096.057.  DISTRICT ADMINISTRATOR 
  Sec. 1096.058.  EMPLOYEES 
  Sec. 1096.059.  MAINTENANCE OF RECORDS; PUBLIC
                   INSPECTION 
  Sec. 1096.060.  RECRUITMENT OF MEDICAL STAFF 
  Sec. 1096.061.  CONTINUING EDUCATION; RETRAINING 
  [Sections 1096.062-1096.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1096.101.  DISTRICT RESPONSIBILITY 
  Sec. 1096.102.  RESTRICTION ON POLITICAL SUBDIVISION
                   TAXATION AND DEBT 
  Sec. 1096.103.  MANAGEMENT AND CONTROL OF DISTRICT 
  Sec. 1096.104.  HOSPITAL SYSTEM 
  Sec. 1096.105.  RULES 
  Sec. 1096.106.  PURCHASING AND ACCOUNTING PROCEDURES 
  Sec. 1096.107.  EMINENT DOMAIN 
  Sec. 1096.108.  GIFTS AND ENDOWMENTS 
  Sec. 1096.109.  CONTRACTS WITH POLITICAL SUBDIVISION
                   FOR HOSPITAL CARE 
  Sec. 1096.110.  PROVISION OF CERTAIN HEALTH SERVICES 
  Sec. 1096.111.  OPERATION OF HOSPITAL; RATES CHARGED;
                   RESERVE FUNDS 
  Sec. 1096.112.  PAYMENT FOR TREATMENT; PROCEDURES 
  [Sections 1096.113-1096.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 1096.151.  BUDGET 
  Sec. 1096.152.  PROPOSED BUDGET: NOTICE AND HEARING 
  Sec. 1096.153.  FISCAL YEAR 
  Sec. 1096.154.  ANNUAL AUDIT 
  Sec. 1096.155.  DEPOSITORY 
  Sec. 1096.156.  AUTHORITY TO BORROW MONEY; SECURITY 
  Sec. 1096.157.  INVESTMENT OF DISTRICT MONEY 
  Sec. 1096.158.  TAX EXEMPTION 
  [Sections 1096.159-1096.200 reserved for expansion]
  SUBCHAPTER E. BONDS
  Sec. 1096.201.  REVENUE BONDS 
  Sec. 1096.202.  EXECUTION OF BONDS 
  Sec. 1096.203.  MATURITY OF BONDS 
  Sec. 1096.204.  REFUNDING BONDS 
  [Sections 1096.205-1096.250 reserved for expansion]
  SUBCHAPTER F.  TAXES
  Sec. 1096.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1096.252.  TAX RATE 
  Sec. 1096.253.  TAX ASSESSOR-COLLECTOR 
  CHAPTER 1096. SOUTH LIMESTONE HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1096.001.  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 South Limestone Hospital
  District. (New.)
         Sec. 1096.002.  AUTHORITY FOR CREATION. The South Limestone
  Hospital District is created under the authority of Section 9,
  Article IX, Texas Constitution, and has the rights, powers, and
  duties provided by this chapter. (Acts 61st Leg., R.S., Ch. 638,
  Secs. 1, 2 (part).)
         Sec. 1096.003.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of the Groesbeck
  Independent School District as those boundaries existed on January
  1, 1969. (Acts 61st Leg., R.S., Ch. 638, Sec. 2 (part).)
         Sec. 1096.004.  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. (Acts 61st Leg., R.S., Ch. 638, Sec. 28 (part).)
         Sec. 1096.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE
  OBLIGATION. The support and maintenance of the district's hospital
  system and any indebtedness incurred by the district under this
  chapter may not become a charge against or obligation of this state.
  (Acts 61st Leg., R.S., Ch. 638, Sec. 26 (part).)
         Sec. 1096.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.
  The legislature may not make a direct appropriation for the
  construction, maintenance, or improvement of a district facility.
  (Acts 61st Leg., R.S., Ch. 638, Sec. 26 (part).)
  [Sections 1096.007-1096.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1096.051.  BOARD ELECTION; TERM. (a) The district is
  governed by a board of seven directors elected from the district at
  large.
         (b)  Each even-numbered year, on the May uniform election
  date or another date authorized by law, the appropriate number of
  directors shall be elected.
         (c)  Directors serve staggered four-year terms. (Acts 61st
  Leg., R.S., Ch. 638, Secs. 5(a), (e).)
         Sec. 1096.052.  QUALIFICATIONS FOR OFFICE. (a) To qualify
  for election to the board, a person must:
               (1)  be at least 18 years of age;
               (2)  have been a resident of the district for at least
  two years; and
               (3)  be a qualified property tax paying voter of the
  district.
         (b)  A person may not serve as a director if the person:
               (1)  is a district employee;
               (2)  was a district employee at any time during the two
  years preceding the date of the election; or
               (3)  receives compensation under a contract with the
  district. (Acts 61st Leg., R.S., Ch. 638, Secs. 5(f), (j).)
         Sec. 1096.053.  BOND; RECORD OF BOND AND OATH. (a) Each
  director shall qualify by executing 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)  The district shall pay for the directors' bonds.
         (c)  Each director's bond and constitutional oath of office
  shall be deposited with the district's depository bank for
  safekeeping. (Acts 61st Leg., R.S., Ch. 638, Sec. 5(b).)
         Sec. 1096.054.  BOARD VACANCY. If a vacancy occurs in the
  office of director, the remaining directors shall appoint a
  director for the unexpired term. (Acts 61st Leg., R.S., Ch. 638,
  Sec. 5(d).)
         Sec. 1096.055.  OFFICERS. (a) The board shall elect from
  among its members a president, vice president, secretary, and
  treasurer.
         (b)  The board may combine the offices of secretary and
  treasurer at the board's discretion. (Acts 61st Leg., R.S., Ch.
  638, Sec. 5(c).)
         Sec. 1096.056.  COMPENSATION; EXPENSES. A director is not
  entitled to compensation but is entitled to reimbursement for any
  necessary expense incurred in the performance of official duties.
  (Acts 61st Leg., R.S., Ch. 638, Sec. 5(i).)
         Sec. 1096.057.  DISTRICT ADMINISTRATOR. (a) The board may
  employ a district administrator to manage the operations of the
  hospital system.
         (b)  The district administrator may hire necessary personnel
  to perform the services provided by the hospital system. (Acts 61st
  Leg., R.S., Ch. 638, Sec. 20(e) (part).)
         Sec. 1096.058.  EMPLOYEES. The board may employ an
  attorney, a general manager, a bookkeeper, an architect, nurses,
  and other employees necessary for the efficient operation of the
  district. (Acts 61st Leg., R.S., Ch. 638, Sec. 20(e) (part).)
         Sec. 1096.059.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.
  Except as provided by Section 1096.053, the board shall:
               (1)  maintain all district records, including books,
  accounts, notices, minutes, and other matters of the district and
  its operation, at the district office; and
               (2)  make those records available for public inspection
  at reasonable times. (Acts 61st Leg., R.S., Ch. 638, Sec. 20(b).)
         Sec. 1096.060.  RECRUITMENT OF MEDICAL STAFF. The board may
  spend district money to recruit physicians, nurses, and other
  trained medical personnel. The board may pay the tuition or other
  education-related costs or expenses of a person who:
               (1)  graduates from a medical school, a nursing school,
  or an institution of higher education; and
               (2)  contractually agrees to become a district
  employee. (Acts 61st Leg., R.S., Ch. 638, Sec. 20(h) (part).)
         Sec. 1096.061.  CONTINUING EDUCATION; RETRAINING. The board
  may spend district money for the continuing education and
  retraining of district employees. (Acts 61st Leg., R.S., Ch. 638,
  Sec. 20(h) (part).)
  [Sections 1096.062-1096.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1096.101.  DISTRICT RESPONSIBILITY. The district shall
  provide all necessary hospital and medical care for the district's
  needy inhabitants. (Acts 61st Leg., R.S., Ch. 638, Sec. 3 (part).)
         Sec. 1096.102.  RESTRICTION ON POLITICAL SUBDIVISION
  TAXATION AND DEBT. A political subdivision of this state, other
  than the district, may not impose a tax or issue bonds or other
  obligations to provide hospital service or medical care in the
  district. (Acts 61st Leg., R.S., Ch. 638, Sec. 3 (part).)
         Sec. 1096.103.  MANAGEMENT AND CONTROL OF DISTRICT. The
  board has full power to manage and control the district. (Acts 61st
  Leg., R.S., Ch. 638, Sec. 20(a) (part).)
         Sec. 1096.104.  HOSPITAL SYSTEM. The district has the
  responsibility to establish a hospital or hospital system within
  its boundaries to provide hospital and medical care to the
  district's residents. (Acts 61st Leg., R.S., Ch. 638, Sec. 3
  (part).)
         Sec. 1096.105.  RULES. (a) The board shall adopt rules for
  the efficient operation of the district, including district
  facilities.
         (b)  The board shall:
               (1)  publish the rules in book form; and
               (2)  provide copies to interested persons on request at
  district expense. (Acts 61st Leg., R.S., Ch. 638, Sec. 20(c).)
         Sec. 1096.106.  PURCHASING AND ACCOUNTING PROCEDURES. The
  board may prescribe the method of making purchases and expenditures
  and the manner of accounting and control used by the district.
  (Acts 61st Leg., R.S., Ch. 638, Sec. 20(e) (part).)
         Sec. 1096.107.  EMINENT DOMAIN. (a) To carry out a power
  provided by this chapter, the district may exercise the power of
  eminent domain to acquire the fee simple title to land and other
  property and easements.
         (b)  The district must exercise the power of eminent domain
  in the manner provided by Chapter 21, Property Code.
         (c)  In a condemnation proceeding, the district is not
  required to:
               (1)  pay in advance or provide a bond or other security
  for costs in the trial court;
               (2)  provide a bond for costs or a supersedeas bond on
  an appeal or petition for review; or
               (3)  deposit in the trial court money or a bond as
  provided by Section 21.021(a), Property Code.
         (d)  The district is a municipal corporation for the purposes
  of Chapter 21, Property Code.
         (e)  The board shall determine the amount and the type of
  interest in land, other property, or easements to be acquired.
  (Acts 61st Leg., R.S., Ch. 638, Secs. 17, 23.)
         Sec. 1096.108.  GIFTS AND ENDOWMENTS. The board may accept a
  gift or endowment to be held and administered as required by the
  respective donor, to the extent that those requirements do not
  contravene law. (Acts 61st Leg., R.S., Ch. 638, Sec. 19.)
         Sec. 1096.109.  CONTRACTS WITH POLITICAL SUBDIVISION FOR
  HOSPITAL CARE. The board may contract with a political subdivision
  to provide hospital and medical care for needy persons who reside
  outside the district. (Acts 61st Leg., R.S., Ch. 638, Sec. 20(f).)
         Sec. 1096.110.  PROVISION OF CERTAIN HEALTH SERVICES. The
  board may provide emergency services, home health care services,
  long-term health care services, or any other health care services
  the board determines are necessary to meet the needs of the
  district. (Acts 61st Leg., R.S., Ch. 638, Sec. 20(g).)
         Sec. 1096.111.  OPERATION OF HOSPITAL; RATES CHARGED;
  RESERVE FUNDS. (a) The district shall operate a hospital without
  the intervention of private profit for the use and benefit of the
  public.
         (b)  The board shall charge sufficient rates for services
  provided by the hospital and use other sources of district revenue
  that will produce an amount sufficient to:
               (1)  pay all expenses in connection with the ownership,
  operation, and upkeep of the hospital;
               (2)  pay the interest on the bonds as it becomes due;
               (3)  create a sinking fund to pay the bonds as they
  become due; and
               (4)  create and maintain a bond reserve fund and other
  funds as provided in the bond resolution or trust indenture.
         (c)  The bond resolution or trust indenture may prescribe
  systems, methods, routines, and procedures needed for the operation
  of the hospital. (Acts 61st Leg., R.S., Ch. 638, Sec. 15.)
         Sec. 1096.112.  PAYMENT FOR TREATMENT; PROCEDURES. (a) A
  person who resides in the district is entitled to receive necessary
  medical and hospital care regardless of whether the person has the
  ability to pay for the care and may apply to receive this care
  without cost.
         (b)  The board or the district administrator shall employ a
  person to investigate the ability of the patient and any relative
  liable for the patient's support to pay for the medical and hospital
  care received by the patient.
         (c)  If the investigator finds that neither the patient nor
  those relatives can pay for all or part of the patient's care, the
  expense of that care becomes a charge against the district.
         (d)  If the patient or those relatives can pay for all or part
  of the costs of the patient's care, the board shall order the
  patient or those relatives to pay to the district treasurer each
  week an amount specified in the order. The amount must be
  proportionate to the person's ability to pay.
         (e)  The district may collect the amount from the patient's
  estate, or from any relative 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.
         (f)  If there is a dispute as to the ability to pay, or doubt
  in the mind of the investigator, the board shall hold a hearing and,
  after calling witnesses, shall:
               (1)  determine the question; and
               (2)  make the proper order based on the board's
  findings.
         (g)  A party to the hearing who is not satisfied with the
  result of the order may appeal to the district court. The appeal is
  de novo. (Acts 61st Leg., R.S., Ch. 638, Sec. 22.)
  [Sections 1096.113-1096.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 1096.151.  BUDGET. The board shall prepare a budget
  that includes:
               (1)  proposed expenditures and disbursements;
               (2)  estimated receipts and collections for the next
  fiscal year; and
               (3)  the amount of taxes required to be imposed during
  the next fiscal year to meet the proposed budget. (Acts 61st Leg.,
  R.S., Ch. 638, Sec. 21(b).)
         Sec. 1096.152.  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 in a newspaper
  of general circulation in the district at least once before the 10th
  day before the date of the hearing.
         (c)  Any person who owns taxable property in the district and
  has duly rendered that property for taxation is entitled to:
               (1)  appear at the hearing; and
               (2)  be heard regarding any item in the proposed
  budget. (Acts 61st Leg., R.S., Ch. 638, Secs. 21(c), (d).)
         Sec. 1096.153.  FISCAL YEAR. The district's fiscal year is
  from October 1 to September 30. (Acts 61st Leg., R.S., Ch. 638,
  Sec. 21(a).)
         Sec. 1096.154.  ANNUAL AUDIT. (a) The board annually shall
  require an independent audit of the district's books and records.
         (b)  Not later than December 1 of each year, the board shall
  file a copy of the audit with:
               (1)  the comptroller; and
               (2)  the district. (Acts 61st Leg., R.S., Ch. 638, Sec.
  20(d).)
         Sec. 1096.155.  DEPOSITORY. (a) The board by resolution
  shall designate a bank in the county in which the district is
  located as the district's depository. A designated bank serves for
  two years and until a successor is designated.
         (b)  All district money shall be deposited in the depository
  and secured in the manner provided for securing county funds. (Acts
  61st Leg., R.S., Ch. 638, Sec. 24.)
         Sec. 1096.156.  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 if the board declares that:
               (1)  money is not available to meet authorized
  obligations of the district; and
               (2)  an emergency exists.
         (b)  To secure a loan, the board may pledge:
               (1)  district revenue that is not pledged to pay the
  district's bonded indebtedness;
               (2)  a district tax to be imposed by the district in the
  next 12-month period that is 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)  The board may not spend money obtained from a loan under
  this section for any purpose other than:
               (1)  the purpose for which the board declared an
  emergency; and
               (2)  if district taxes or bonds are pledged to pay the
  loan, the purpose for which the pledged taxes were imposed or the
  pledged bonds were authorized. (Acts 61st Leg., R.S., Ch. 638, Sec.
  20A.)
         Sec. 1096.157.  INVESTMENT OF DISTRICT MONEY. (a)  The law
  applicable to municipalities with respect to security for and
  investment of money governs, as applicable, the investment of
  district money. The bond resolution or indenture may further
  restrict the investment.
         (b)  To the extent authorized in the bond resolution or
  indenture and until the money is needed, the district may invest the
  proceeds of district bonds in direct obligations of or obligations
  unconditionally guaranteed by the United States. (Acts 61st Leg.,
  R.S., Ch. 638, Sec. 18.)
         Sec. 1096.158.  TAX EXEMPTION. Because property owned by
  the district is held for public purposes only and is devoted
  exclusively to the use and benefit of the public, the property is
  exempt from taxation of every character. (Acts 61st Leg., R.S., Ch.
  638, Sec. 16.)
  [Sections 1096.159-1096.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 1096.201.  REVENUE BONDS. (a) The district may issue
  revenue bonds to provide for any district purposes.  The bonds must
  be authorized by a board resolution adopted by a majority vote of a
  quorum of the board.
         (b)  Revenue bonds must be payable from and secured by a
  pledge of all or part of the revenue derived from:
               (1)  the operation of the district's hospitals; and
               (2)  any other revenue resulting from the ownership of
  the hospital properties.
         (c)  Revenue bonds may be additionally secured by a mortgage
  or deed of trust lien on real property of the district or by a
  chattel mortgage on the district's personal property, or by both.
         (d)  The board may issue:
               (1)  bonds that are a junior lien on the district's net
  revenue or property, unless prohibited by the bond resolution or
  trust indenture; and
               (2)  parity bonds under conditions specified in the
  bond resolution or trust indenture.
         (e)  A bond issued under this subchapter must contain the
  provision: "The holder hereof shall never have the right to demand
  payment thereof out of money raised or to be raised by taxation."
  (Acts 61st Leg., R.S., Ch. 638, Secs. 8, 9 (part), 11, 14 (part).)
         Sec. 1096.202.  EXECUTION OF BONDS. District bonds must be
  signed by the president or vice president and countersigned by the
  secretary. (Acts 61st Leg., R.S., Ch. 638, Sec. 9 (part).)
         Sec. 1096.203.  MATURITY OF BONDS. District bonds must
  mature not later than 40 years after their date of issuance.  (Acts
  61st Leg., R.S., Ch. 638, Sec. 9 (part).)
         Sec. 1096.204.  REFUNDING BONDS.  The board may issue bonds
  for the purpose of refunding outstanding bonds in the manner
  provided by this subchapter for other bonds. (Acts 61st Leg., R.S.,
  Ch. 638, Sec. 13 (part).)
  [Sections 1096.205-1096.250 reserved for expansion]
  SUBCHAPTER F.  TAXES
         Sec. 1096.251.  IMPOSITION OF AD VALOREM TAX. (a) The board
  shall impose a tax on all property in the district subject to
  district taxation.
         (b)  The tax proceeds may be used only to:
               (1)  provide for the operation and maintenance of the
  district and hospital system;
               (2)  make improvements and additions to the hospital
  system; or
               (3)  acquire sites for additions to the hospital
  system. (Acts 61st Leg., R.S., Ch. 638, Secs. 7(a) (part), (b).)
         Sec. 1096.252.  TAX RATE.  The board shall impose the tax at
  a rate not to exceed 38 cents on each $100 valuation. (Acts 61st
  Leg., R.S., Ch. 638, Sec. 7(a) (part).)
         Sec. 1096.253.  TAX ASSESSOR-COLLECTOR. The board may use
  any of the following to assess and collect district taxes:
               (1)  the tax assessor-collector for Limestone County;
               (2)  the tax assessor-collector for the Groesbeck
  Independent School District; or
               (3)  any tax assessor-collector established by the
  board for the district. (Acts 61st Leg., R.S., Ch. 638, Sec. 7(d).)
  CHAPTER 1107. TITUS COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1107.001.  DEFINITIONS 
  Sec. 1107.002.  AUTHORITY FOR OPERATION 
  Sec. 1107.003.  DISTRICT TERRITORY 
  [Sections 1107.004-1107.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1107.051.  BOARD ELECTION; TERM 
  Sec. 1107.052.  NOTICE OF ELECTION 
  Sec. 1107.053.  BALLOT PETITION 
  Sec. 1107.054.  QUALIFICATIONS FOR CANDIDACY 
  Sec. 1107.055.  BOARD VACANCY 
  Sec. 1107.056.  NONATTENDANCE 
  Sec. 1107.057.  OFFICERS 
  Sec. 1107.058.  COMPENSATION 
  Sec. 1107.059.  LIABILITY INSURANCE 
  Sec. 1107.060.  QUORUM; VOTING REQUIREMENT 
  Sec. 1107.061.  RECORDS OF PROCEEDINGS 
  Sec. 1107.062.  PERSONNEL MATTERS; CLOSED MEETING 
  Sec. 1107.063.  DISTRICT ADMINISTRATOR 
  Sec. 1107.064.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1107.065.  ASSISTANT TO DISTRICT ADMINISTRATOR 
  Sec. 1107.066.  APPOINTMENT AND RECRUITMENT OF STAFF
                   AND EMPLOYEES 
  Sec. 1107.067.  HEALTH CARE EDUCATIONAL PROGRAMS 
  Sec. 1107.068.  LEGAL COUNSEL 
  Sec. 1107.069.  RETIREMENT PROGRAM 
  Sec. 1107.070.  SEAL 
  [Sections 1107.071-1107.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1107.101.  DISTRICT RESPONSIBILITY 
  Sec. 1107.102.  RESTRICTION ON COUNTY OR MUNICIPALITY
                   TAXATION 
  Sec. 1107.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
  Sec. 1107.104.  RULES 
  Sec. 1107.105.  PURCHASING AND ACCOUNTING 
  Sec. 1107.106.  DISTRICT FACILITIES 
  Sec. 1107.107.  PROMOTION OF DISTRICT SERVICES 
  Sec. 1107.108.  EMINENT DOMAIN 
  Sec. 1107.109.  GIFTS AND ENDOWMENTS 
  Sec. 1107.110.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR CARE AND TREATMENT 
  Sec. 1107.111.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1107.112.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1107.113-1107.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 1107.151.  BUDGET 
  Sec. 1107.152.  ANNUAL AUDIT 
  Sec. 1107.153.  FINANCIAL REPORT 
  Sec. 1107.154.  DEPOSITORY 
  Sec. 1107.155.  WARRANTS 
  [Sections 1107.156-1107.200 reserved for expansion]
  SUBCHAPTER E. BONDS
  Sec. 1107.201.  BONDS 
  Sec. 1107.202.  TAX TO PAY BONDS 
  Sec. 1107.203.  BOND ELECTION 
  Sec. 1107.204.  REFUNDING BONDS 
  Sec. 1107.205.  EXECUTION OF BONDS 
  [Sections 1107.206-1107.250 reserved for expansion]
  SUBCHAPTER F. TAXES
  Sec. 1107.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1107.252.  TAX RATE 
  Sec. 1107.253.  COLLECTION BY COUNTY TAX
                   ASSESSOR-COLLECTOR 
  Sec. 1107.254.  ASSESSMENT AND COLLECTION BY DISTRICT
                   TAX ASSESSOR-COLLECTOR 
  CHAPTER 1107. TITUS COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1107.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the board of hospital managers of
  the district.
               (2)  "District" means the Titus County Hospital
  District.
               (3)  "Manager" means a member of the board. (New.)
         Sec. 1107.002.  AUTHORITY FOR OPERATION. The Titus County
  Hospital District operates in accordance with Section 9, Article
  IX, Texas Constitution, and has the powers and responsibilities
  provided by that section. (Acts 58th Leg., R.S., Ch. 298, Sec. 1
  (part).)
         Sec. 1107.003.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of Titus County.
  (Acts 58th Leg., R.S., Ch. 298, Sec. 1 (part).)
  [Sections 1107.004-1107.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1107.051.  BOARD ELECTION; TERM. (a) The board
  consists of seven voting managers and one nonvoting manager as
  follows:
               (1)  one voting manager elected from each
  commissioners precinct of Titus County;
               (2)  three voting managers elected from the district at
  large; and
               (3)  the chief of the medical staff of the district's
  principal hospital serving as a nonvoting ex officio manager.
         (b)  The election order must provide for clerks as in county
  elections and must specify:
               (1)  the date of the election;
               (2)  the location of the polling places;
               (3)  the presiding and alternate election judges for
  each polling place; and
               (4)  the form of the ballot.
         (c)  The board shall declare the results of the election.
         (d)  Voting managers serve staggered four-year terms.
         (e)  An election shall be held on the uniform election date
  in May, or another date authorized by law, of each even-numbered
  year to elect the appropriate number of voting managers. (Acts 58th
  Leg., R.S., Ch. 298, Secs. 6b(a) (part), (b), (c) (part), 6c(b);
  Acts 71st Leg., R.S., Ch. 1116, Sec. 2.)
         Sec. 1107.052.  NOTICE OF ELECTION. (a) The board shall
  give notice of an election of managers 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 at least
  30 days before the date set for the election. (Acts 58th Leg.,
  R.S., Ch. 298, Secs. 6b(a) (part), (c) (part).)
         Sec. 1107.053.  BALLOT PETITION. A person seeking to have
  the person's name printed on the ballot as a candidate for manager
  must file with the board secretary a petition requesting that
  action. The petition must:
               (1)  be signed by at least 10 registered voters who
  reside in the district;
               (2)  be filed by the deadline imposed by Section
  144.005, Election Code; and
               (3)  specify the commissioners precinct the candidate
  seeks to represent or specify that the candidate seeks to represent
  the district at large.  (Acts 58th Leg., R.S., Ch. 298, Sec. 6b(c)
  (part).)
         Sec. 1107.054.  QUALIFICATIONS FOR CANDIDACY. (a) A
  candidate for manager must be a resident of the district.
         (b)  A candidate  for a commissioners precinct must be a
  resident of that commissioners precinct. (Acts 58th Leg., R.S.,
  Ch. 298, Sec. 6b(c) (part).)
         Sec. 1107.055.  BOARD VACANCY. If a vacancy occurs in the
  office of manager, other than the ex officio manager, the remaining
  managers shall appoint a manager for the unexpired term. (Acts 58th
  Leg., R.S., Ch. 298, Sec. 6c(f).)
         Sec. 1107.056.  NONATTENDANCE. The failure of a manager to
  attend three consecutive regular board meetings causes a vacancy in
  the manager's office unless the absence is excused by formal action
  of the board. (Acts 58th Leg., R.S., Ch. 298, Sec. 6 (part).)
         Sec. 1107.057.  OFFICERS. (a) The board shall select from
  among the managers a presiding officer, who shall preside over the
  board.
         (b)  A presiding officer pro tem shall preside in the absence
  of the presiding officer.
         (c)  The district administrator or any manager may be
  appointed secretary. (Acts 58th Leg., R.S., Ch. 298, Sec. 6
  (part).)
         Sec. 1107.058.  COMPENSATION. A manager serves without
  compensation, but the board may establish a system and set the
  amount of meeting fees for attending board or committee meetings.
  (Acts 58th Leg., R.S., Ch. 298, Sec. 6 (part).)
         Sec. 1107.059.  LIABILITY INSURANCE. The board may purchase
  and provide the managers with liability insurance the board
  considers necessary or advisable to protect the managers from risks
  that might result from serving on the board. (Acts 58th Leg., R.S.,
  Ch. 298, Sec. 6 (part).)
         Sec. 1107.060.  QUORUM; VOTING REQUIREMENT. (a) Four
  managers, not including the ex officio manager, constitute a
  quorum.
         (b)  A concurrence of a majority of the voting managers
  present is required in any matter relating to district business.
  (Acts 58th Leg., R.S., Ch. 298, Sec. 6c(g).)
         Sec. 1107.061.  RECORDS OF PROCEEDINGS. (a) The board shall
  require the secretary to keep suitable records of all proceedings
  of each board meeting.
         (b)  After each meeting:
               (1)  the manager presiding at the meeting shall read
  and sign the record; and
               (2)  the secretary shall attest the record. (Acts 58th
  Leg., R.S., Ch. 298, Sec. 6 (part).)
         Sec. 1107.062.  PERSONNEL MATTERS; CLOSED MEETING. A member
  or prospective member of the medical staff or a person who serves or
  is being considered for a position as a medical director of services
  or departments in the district is a public officer or employee for
  purposes of Section 551.074, Government Code. (Acts 58th Leg.,
  R.S., Ch. 298, Sec. 6f.)
         Sec. 1107.063.  DISTRICT ADMINISTRATOR. (a) The board
  shall appoint under terms prescribed by the board a general manager
  qualified by training and experience as the district administrator.
         (b)  The district administrator shall receive the
  compensation determined by the board.
         (c)  The board may remove the district administrator at any
  time.
         (d)  Before assuming the duties of district administrator,
  the administrator must execute a bond payable to the district in an
  amount of not less than $10,000 that:
               (1)  is conditioned on the administrator performing
  well and faithfully the administrator's required duties; and
               (2)  contains any other condition the board requires.
  (Acts 58th Leg., R.S., Ch. 298, Sec. 6 (part).)
         Sec. 1107.064.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
  Subject to any limitations prescribed by the board, the district
  administrator shall:
               (1)  perform the duties required by the board;
               (2)  supervise the work and activities of the district;
  and
               (3)  direct the affairs of the district. (Acts 58th
  Leg., R.S., Ch. 298, Sec. 6 (part).)
         Sec. 1107.065.  ASSISTANT TO DISTRICT ADMINISTRATOR. (a)
  The board may designate an assistant to the district administrator
  to discharge a duty or function of the administrator in the event of
  the administrator's incapacity, absence, or inability to discharge
  the duty or function.
         (b)  The assistant shall post bond and is subject to the
  limitations prescribed by board order. (Acts 58th Leg., R.S., Ch.
  298, Sec. 8.)
         Sec. 1107.066.  APPOINTMENT AND RECRUITMENT OF STAFF AND
  EMPLOYEES. (a) The board may employ under terms prescribed by the
  board any employees as considered advisable for the efficient
  operation of the hospital or hospital system.
         (b)  The board may spend district money, enter into
  agreements, and take other necessary action to recruit physicians
  and other persons to serve as the district's medical staff or
  employees, including:
               (1)  advertising and marketing;
               (2)  paying travel, recruitment, and relocation
  expenses; and
               (3)  allowing a physician to use space in a district
  facility or paying the physician a rent subsidy until not later than
  the first anniversary of the date the physician is first admitted to
  the district's medical staff.
         (c)  The district may provide a loan or scholarship to a
  person who:
               (1)  is enrolled in health care education courses; and
               (2)  contractually agrees to practice in or become
  employed by the district. (Acts 58th Leg., R.S., Ch. 298, Secs. 6
  (part), 6d(a), (c).)
         Sec. 1107.067.  HEALTH CARE EDUCATIONAL PROGRAMS. The board
  may spend district money, enter into agreements, and take other
  necessary action to conduct, participate in, or assist health care
  educational programs for staff members or employees or potential
  staff members or employees. (Acts 58th Leg., R.S., Ch. 298, Sec.
  6d(b).)
         Sec. 1107.068.  LEGAL COUNSEL. (a) The appropriate county,
  district, or criminal district attorney charged with representing
  Titus County in civil matters shall represent the district in all
  legal matters.
         (b)  The district shall contribute sufficient money to the
  Titus County general fund for the account designated for the
  appropriate attorney described in Subsection (a) to pay all
  additional salaries and expenses incurred by the attorney in
  performing the duties required by the district.
         (c)  The board may employ additional legal counsel the board
  considers advisable. (Acts 58th Leg., R.S., Ch. 298, Secs. 1
  (part), 13.)
         Sec. 1107.069.  RETIREMENT PROGRAM. The board may:
               (1)  contract with this state or the federal government
  as necessary to establish or continue a retirement program for the
  benefit of district employees; or
               (2)  establish other retirement programs for the
  benefit of district employees as the board considers necessary and
  advisable. (Acts 58th Leg., R.S., Ch. 298, Secs. 6 (part), 6c(c).)
         Sec. 1107.070.  SEAL. The board shall have a seal engraved
  with the district's name to authenticate the acts of the board. The
  board secretary shall keep the seal. (Acts 58th Leg., R.S., Ch.
  298, Sec. 6 (part).)
  [Sections 1107.071-1107.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1107.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for providing medical and hospital care for the
  district's needy and indigent residents. (Acts 58th Leg., R.S.,
  Ch. 298, Secs. 2 (part), 14 (part).)
         Sec. 1107.102.  RESTRICTION ON COUNTY OR MUNICIPALITY
  TAXATION. Titus County or a municipality in the county may not
  impose a tax for hospital purposes. (Acts 58th Leg., R.S., Ch. 298,
  Sec. 14 (part).)
         Sec. 1107.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.
  The board shall manage, control, and administer the district's
  hospital or hospital system. (Acts 58th Leg., R.S., Ch. 298, Sec. 6
  (part).)
         Sec. 1107.104.  RULES. The board may adopt rules for the
  operation of the hospital or hospital system. (Acts 58th Leg.,
  R.S., Ch. 298, Sec. 6 (part).)
         Sec. 1107.105.  PURCHASING AND ACCOUNTING. (a) 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.
         (b)  The district shall pay the salaries and expenses
  necessarily incurred by the board or by an officer or agent of the
  board in performing a duty prescribed or required by this chapter.
         (c)  An officer, employee, or agent of the board shall
  perform any function or service prescribed by the board under this
  section or Section 1107.152. (Acts 58th Leg., R.S., Ch. 298, Sec. 7
  (part).)
         Sec. 1107.106.  DISTRICT FACILITIES. The board may:
               (1)  purchase or build facilities for medical purposes;
  and
               (2)  rent the facilities or space in the facilities at a
  rate sufficient to cover the district's cost. (Acts 58th Leg.,
  R.S., Ch. 298, Sec. 6e(a).)
         Sec. 1107.107.  PROMOTION OF DISTRICT SERVICES. The board
  may market or advertise to promote district services, the orderly
  operation of the district, and the appropriate delivery of health
  care in the district. (Acts 58th Leg., R.S., Ch. 298, Sec. 6e(b).)
         Sec. 1107.108.  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, real, personal, or mixed,
  located in district territory, if the interest is necessary or
  convenient 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 a bond for the issuance
  of a temporary restraining order or a temporary injunction; or
               (2)  provide a bond for costs or a supersedeas bond on
  an appeal or petition for review. (Acts 58th Leg., R.S., Ch. 298,
  Sec. 10.)
         Sec. 1107.109.  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 provisions prescribed in writing by the
  donor that are not inconsistent with the proper management and
  objectives of the district. (Acts 58th Leg., R.S., Ch. 298, Sec.
  16.)
         Sec. 1107.110.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  CARE AND TREATMENT. The board may contract with:
               (1)  any county for the care and treatment of a sick or
  injured person of that county; and
               (2)  this state or a federal agency for the care and
  treatment of a sick or injured person for whom the state or agency
  is responsible. (Acts 58th Leg., R.S., Ch. 298, Secs. 6 (part),
  6c(c).)
         Sec. 1107.111.  PAYMENT FOR TREATMENT; PROCEDURES. (a)
  When a patient from Titus County is admitted to a district facility,
  the district administrator shall have an inquiry made into the
  circumstances of:
               (1)  the patient; and
               (2)  the patient's relatives legally liable for the
  patient's support.
         (b)  If the district administrator determines that the
  patient or those relatives cannot pay for all or part of the
  patient's care and treatment in the hospital, the amount that
  cannot be paid becomes a charge against the district.
         (c)  If the district administrator determines that the
  patient or those relatives can pay for all or part 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 their
  financial ability and may not exceed the actual per capita cost of
  maintenance.
         (d)  The district administrator may collect the amount from
  the patient's estate, or from those relatives 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 administrator, the county court shall
  hold a hearing and, after calling witnesses, shall:
               (1)  resolve the dispute or doubt; and
               (2)  issue any appropriate orders.
         (f)  Either party to the dispute may appeal the order to the
  district court. (Acts 58th Leg., R.S., Ch. 298, Sec. 15.)
         Sec. 1107.112.  AUTHORITY TO SUE AND BE SUED. The board may
  sue and be sued. (Acts 58th Leg., R.S., Ch. 298, Sec. 6 (part).)
  [Sections 1107.113-1107.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 1107.151.  BUDGET. (a) The district administrator,
  under the direction of the board, shall prepare an annual budget.
         (b)  The budget must be approved by the board. (Acts 58th
  Leg., R.S., Ch. 298, Sec. 9 (part).)
         Sec. 1107.152.  ANNUAL AUDIT. As soon as practicable after
  the close of each fiscal year, the board shall have an audit made of
  the district's books and records for the fiscal year by an
  independent public accountant. (Acts 58th Leg., R.S., Ch. 298,
  Sec. 7 (part).)
         Sec. 1107.153.  FINANCIAL REPORT. (a) As soon as
  practicable after the close of each fiscal year, the district
  administrator shall prepare a report that includes:
               (1)  a complete sworn statement of:
                     (A)  all money and choses in action received by
  the administrator; and
                     (B)  how the money and choses in action were
  disbursed or otherwise disposed; and
               (2)  the details of district operation during the
  preceding fiscal year.
         (b)  The district administrator shall make the report to:
               (1)  the board; and
               (2)  the Titus County Commissioners Court. (Acts 58th
  Leg., R.S., Ch. 298, Sec. 9 (part).)
         Sec. 1107.154.  DEPOSITORY. (a) After advertising in the
  manner provided by Chapter 252 and Subchapter C, Chapter 262, Local
  Government Code, the board shall choose by competitive bidding at
  least one bank to serve as depository for district money.
         (b)  All income received by the district shall be deposited
  in the district depository. (Acts 58th Leg., R.S., Ch. 298, Secs.
  3(b) (part), 11 (part).)
         Sec. 1107.155.  WARRANTS. A warrant against district money
  does not require the signature of the county clerk of Titus County.
  (Acts 58th Leg., R.S., Ch. 298, Sec. 3(b) (part).)
  [Sections 1107.156-1107.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 1107.201.  BONDS. The board may issue and sell bonds as
  district obligations for any purpose relating to:
               (1)  the purchase, construction, acquisition, repair,
  or renovation of buildings and improvements; and
               (2)  equipping buildings and improvements for hospital
  purposes. (Acts 58th Leg., R.S., Ch. 298, Secs. 4 (part), 6c(e)
  (part).)
         Sec. 1107.202.  TAX TO PAY BONDS. (a) An ad valorem tax
  shall be imposed at a rate sufficient to create an interest and
  sinking fund to pay the principal of and interest on bonds issued
  under Section 1107.201 as the bonds mature.
         (b)  The tax required by this section together with any other
  ad valorem tax imposed for the district may not in any year exceed
  75 cents on each $100 valuation of taxable property in the district.
  (Acts 58th Leg., R.S., Ch. 298, Sec. 4 (part).)
         Sec. 1107.203.  BOND ELECTION. The district may issue bonds
  only if the bonds are authorized by a majority of the district
  voters voting at an election called by the board and held in
  accordance with the provisions of Chapter 1251, Government Code,
  relating to county bonds.  (Acts 58th Leg., R.S., Ch. 298, Secs. 4
  (part), 6c(e) (part).)
         Sec. 1107.204.  REFUNDING BONDS. (a) District refunding
  bonds may be issued without an election and in the manner provided
  by this subchapter to refund outstanding indebtedness issued or
  assumed by the district.
         (b)  A refunding bond may be:
               (1)  sold, with the proceeds of the refunding bond
  applied to the payment of outstanding bonds; or
               (2)  exchanged wholly or partly for not less than a
  similar amount of outstanding bonds and the unpaid matured interest
  on the bonds. (Acts 58th Leg., R.S., Ch. 298, Sec. 4 (part).)
         Sec. 1107.205.  EXECUTION OF BONDS. The board's presiding
  officer shall execute the district's bonds in the district's name
  and the board secretary shall countersign the bonds in the manner
  provided by Chapter 618, Government Code. (Acts 58th Leg., R.S.,
  Ch. 298, Secs. 4 (part), 6c(e) (part).)
  [Sections 1107.206-1107.250 reserved for expansion]
  SUBCHAPTER F. TAXES
         Sec. 1107.251.  IMPOSITION OF AD VALOREM TAX. (a) 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 assumed or issued by the district for hospital purposes as
  provided by this chapter;
               (2)  provide for the operation and maintenance of the
  hospital or hospital system; and
               (3)  make improvements and additions to the hospital
  system and acquire necessary sites for improvements and additions
  by purchase, lease, or condemnation. (Acts 58th Leg., R.S., Ch.
  298, Secs. 3(a) (part), 6c(d).)
         Sec. 1107.252.  TAX RATE. The board shall impose the tax at
  a rate not to exceed 75 cents on each $100 valuation of all property
  in the district subject to district taxation. (Acts 58th Leg.,
  R.S., Ch. 298, Sec. 3(a) (part).)
         Sec. 1107.253.  COLLECTION BY COUNTY TAX
  ASSESSOR-COLLECTOR. Unless the board elects to have district taxes
  assessed and collected by its own tax assessor-collector under
  Section 1107.254, the tax assessor-collector of Titus County shall
  assess and collect taxes imposed by the district. (Acts 58th Leg.,
  R.S., Ch. 298, Sec. 3(b) (part).)
         Sec. 1107.254.  ASSESSMENT AND COLLECTION BY DISTRICT TAX
  ASSESSOR-COLLECTOR. (a) The board may elect to employ a tax
  assessor-collector to assess and collect district taxes by adopting
  an appropriate resolution before December 1 of any year. The
  election remains in effect until revoked by a resolution adopted by
  the board.
         (b)  The district tax assessor-collector must  reside in the
  district.
         (c)  The board shall set the term of employment and
  compensation for the district tax assessor-collector. (Acts 58th
  Leg., R.S., Ch. 298, Sec. 3(c) (part).)
  CHAPTER 1109.  TYLER COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1109.001.  DEFINITIONS 
  Sec. 1109.002.  AUTHORITY FOR OPERATION 
  Sec. 1109.003.  ESSENTIAL PUBLIC FUNCTION 
  Sec. 1109.004.  DISTRICT TERRITORY 
  [Sections 1109.005-1109.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1109.051.  BOARD APPOINTMENT; TERM 
  Sec. 1109.052.  QUALIFICATIONS FOR OFFICE 
  Sec. 1109.053.  BOARD VACANCY 
  Sec. 1109.054.  NONATTENDANCE 
  Sec. 1109.055.  OFFICERS 
  Sec. 1109.056.  COMPENSATION; EXPENSES 
  Sec. 1109.057.  DISTRICT ADMINISTRATOR 
  Sec. 1109.058.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1109.059.  ASSISTANT DISTRICT ADMINISTRATOR;
                   ATTORNEY 
  Sec. 1109.060.  APPOINTMENT AND REMOVAL OF STAFF AND
                   EMPLOYEES 
  Sec. 1109.061.  RETIREMENT BENEFITS 
  Sec. 1109.062.  SEAL 
  [Sections 1109.063-1109.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1109.101.  DISTRICT RESPONSIBILITY 
  Sec. 1109.102.  RESTRICTION ON COUNTY OR MUNICIPALITY
                   TAXATION 
  Sec. 1109.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
  Sec. 1109.104.  HOSPITAL OR HOSPITAL SYSTEM 
  Sec. 1109.105.  RULES 
  Sec. 1109.106.  PURCHASING AND ACCOUNTING 
  Sec. 1109.107.  DISTRICT PROPERTY, FACILITIES, AND
                   EQUIPMENT 
  Sec. 1109.108.  EMINENT DOMAIN 
  Sec. 1109.109.  GIFTS AND ENDOWMENTS 
  Sec. 1109.110.  CONSTRUCTION CONTRACTS 
  Sec. 1109.111.  OPERATING AND MANAGEMENT CONTRACTS 
  Sec. 1109.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR CARE AND TREATMENT 
  Sec. 1109.113.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1109.114.  REIMBURSEMENT FOR SERVICES 
  Sec. 1109.115.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1109.116-1109.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 1109.151.  BUDGET 
  Sec. 1109.152.  NOTICE; HEARING; ADOPTION OF BUDGET 
  Sec. 1109.153.  AMENDMENTS TO BUDGET 
  Sec. 1109.154.  FISCAL YEAR 
  Sec. 1109.155.  ANNUAL AUDIT 
  Sec. 1109.156.  FINANCIAL REPORT 
  Sec. 1109.157.  DEPOSITORY 
  Sec. 1109.158.  INVESTMENTS 
  Sec. 1109.159.  AUTHORITY TO BORROW MONEY; SECURITY 
  [Sections 1109.160-1109.200 reserved for expansion]
  SUBCHAPTER E. BONDS
  Sec. 1109.201.  GENERAL OBLIGATION BONDS 
  Sec. 1109.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1109.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1109.204.  EXECUTION OF GENERAL OBLIGATION BONDS 
  Sec. 1109.205.  REVENUE BONDS 
  Sec. 1109.206.  REFUNDING BONDS 
  Sec. 1109.207.  MATURITY OF BONDS 
  Sec. 1109.208.  EXECUTION OF BONDS 
  Sec. 1109.209.  BONDS EXEMPT FROM TAXATION 
  [Sections 1109.210-1109.250 reserved for expansion]
  SUBCHAPTER F. TAXES
  Sec. 1109.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1109.252.  TAX RATE 
  Sec. 1109.253.  TAX ASSESSOR-COLLECTOR 
  [Sections 1109.254-1109.300 reserved for expansion]
  SUBCHAPTER G. DISSOLUTION
  Sec. 1109.301.  DISSOLUTION; ELECTION 
  Sec. 1109.302.  NOTICE OF ELECTION 
  Sec. 1109.303.  BALLOT 
  Sec. 1109.304.  ELECTION RESULTS 
  Sec. 1109.305.  TRANSFER OR ADMINISTRATION OF ASSETS 
  Sec. 1109.306.  SALE OR TRANSFER OF ASSETS AND
                   LIABILITIES 
  Sec. 1109.307.  IMPOSITION OF TAX AND RETURN OF SURPLUS
                   TAXES 
  Sec. 1109.308.  REPORT; DISSOLUTION ORDER 
  CHAPTER 1109.  TYLER COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1109.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the board of hospital managers of
  the district.
               (2)  "Commissioners court" means the Commissioners
  Court of Tyler County.
               (3)  "District" means the Tyler County Hospital
  District.
               (4)  "Manager" means a member of the board. (New.)
         Sec. 1109.002.  AUTHORITY FOR OPERATION. The Tyler County
  Hospital District operates in accordance with Section 9, Article
  IX, Texas Constitution, and has the powers and responsibilities
  provided by that section. (Acts 58th Leg., R.S., Ch. 110, Sec. 1
  (part).)
         Sec. 1109.003.  ESSENTIAL PUBLIC FUNCTION. The district is
  a public entity performing an essential public function.  (Acts
  58th Leg., R.S., Ch. 110, Sec. 4(e) (part).)
         Sec. 1109.004.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of Tyler County.
  (Acts 58th Leg., R.S., Ch. 110, Sec. 1 (part).)
  [Sections 1109.005-1109.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1109.051.  BOARD APPOINTMENT; TERM. (a) The board
  consists of:
               (1)  six managers appointed by the commissioners court;
  and
               (2)  the county judge of Tyler County as an ex officio
  manager.
         (b)  Appointed managers serve two-year terms. The terms may
  overlap. (Acts 58th Leg., R.S., Ch. 110, Sec. 6(a) (part).)
         Sec. 1109.052.  QUALIFICATIONS FOR OFFICE. (a) To serve as
  a manager, a person must be a resident and qualified voter of the
  district.
         (b)  A district employee may not serve as a manager. (Acts
  58th Leg., R.S., Ch. 110, Sec. 6(a) (part).)
         Sec. 1109.053.  BOARD VACANCY. The commissioners court
  shall fill a vacancy on the board by appointment. (Acts 58th Leg.,
  R.S., Ch. 110, Sec. 6(a) (part).)
         Sec. 1109.054.  NONATTENDANCE. The failure of a manager to
  attend three consecutive regular board meetings causes a vacancy in
  the manager's office unless the absence is excused by formal action
  of the board. (Acts 58th Leg., R.S., Ch. 110, Sec. 6(a) (part).)
         Sec. 1109.055.  OFFICERS. (a) The board shall elect from
  among its members a president, who shall preside, and a vice
  president, who shall preside in the president's absence.
         (b)  The board shall appoint a secretary, who need not be a
  manager.
         (c)  Each officer serves a one-year term.
         (d)  The board shall fill a vacancy in a board office for the
  unexpired term. (Acts 58th Leg., R.S., Ch. 110, Sec. 6(h) (part).)
         Sec. 1109.056.  COMPENSATION; EXPENSES. A manager serves
  without compensation but may be reimbursed for actual and necessary
  travel and other expenses incurred in the performance of the
  manager's duties as determined by the board. The reimbursed
  expenses must be reported in the district's records. (Acts 58th
  Leg., R.S., Ch. 110, Sec. 6(a) (part).)
         Sec. 1109.057.  DISTRICT ADMINISTRATOR. (a) The board may
  appoint a person qualified by training and experience as district
  administrator.
         (b)  The district administrator serves at the will of the
  board and receives compensation as may be determined by the board.
         (c)  The board may require the district administrator,
  before assuming the administrator'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
  administrator's duties; and
               (2)  contains other conditions the board may require.
  (Acts 58th Leg., R.S., Ch. 110, Sec. 6(b) (part).)
         Sec. 1109.058.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
  Subject to any limitations prescribed by the board, the district
  administrator shall:
               (1)  perform the duties required by the board;
               (2)  supervise the work and activities of the district;
  and
               (3)  direct the affairs of the district. (Acts 58th
  Leg., R.S., Ch. 110, Sec. 6(b) (part).)
         Sec. 1109.059.  ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.
  (a) The board may appoint an assistant district administrator and
  an attorney.
         (b)  The assistant district administrator and the attorney
  serve at the will of the board and receive compensation as may be
  determined by the board. (Acts 58th Leg., R.S., Ch. 110, Sec. 6(b)
  (part).)
         Sec. 1109.060.  APPOINTMENT AND REMOVAL OF STAFF AND
  EMPLOYEES. (a) The board may appoint to and remove from the staff
  any doctors and employ any other employees considered advisable for
  the efficient operation of the district's hospital or hospital
  system.
         (b)  The board may delegate to the district administrator the
  authority to hire employees.
         (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. (Acts
  58th Leg., R.S., Ch. 110, Secs. 6(c), (d) (part).)
         Sec. 1109.061.  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. (Acts 58th Leg., R.S., Ch.
  110, Sec. 6(d) (part).)
         Sec. 1109.062.  SEAL. The board shall have a seal engraved
  with the district's name to authenticate the acts of the board. The
  board secretary shall keep the seal. (Acts 58th Leg., R.S., Ch.
  110, Sec. 6(h) (part).)
  [Sections 1109.063-1109.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1109.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for providing medical and hospital care for the
  district's needy and indigent residents. (Acts 58th Leg., R.S.,
  Ch. 110, Secs. 2 (part), 14 (part).)
         Sec. 1109.102.  RESTRICTION ON COUNTY OR MUNICIPALITY
  TAXATION. Tyler County or a municipality in the county may not
  impose a tax for hospital purposes. (Acts 58th Leg., R.S., Ch. 110,
  Secs. 1 (part), 14 (part).)
         Sec. 1109.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.
  The board shall manage, control, and administer:
               (1)  the district's hospital or hospital system; and
               (2)  the district's business, funds, and resources.
  (Acts 58th Leg., R.S., Ch. 110, Sec. 6(a) (part).)
         Sec. 1109.104.  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. (Acts 58th Leg., R.S., Ch. 110, Sec. 2 (part).)
         Sec. 1109.105.  RULES. The board may adopt rules for the
  operation of the hospital or hospital system. (Acts 58th Leg.,
  R.S., Ch. 110, Sec. 6(a) (part).)
         Sec. 1109.106.  PURCHASING AND ACCOUNTING. (a) 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.
         (b)  The district shall pay the salaries and expenses
  necessarily incurred by the board or by an officer or agent of the
  board in performing a duty prescribed or required by this section or
  Section 1109.155.
         (c)  An officer, employee, or agent of the board shall
  perform any function or service prescribed by the board under this
  section or Section 1109.155. (Acts 58th Leg., R.S., Ch. 110, Sec. 7
  (part).)
         Sec. 1109.107.  DISTRICT PROPERTY, FACILITIES, AND
  EQUIPMENT. (a) The board shall determine:
               (1)  the type, number, and location of buildings
  required to maintain an adequate hospital system; and
               (2)  the type of equipment necessary for hospital care.
         (b)  The board may:
               (1)  acquire by purchase or lease property, including
  facilities and 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 or
  from individuals, companies, corporations, or other legal
  entities.
         (d)  The board may sell or otherwise dispose of property,
  including facilities and equipment. (Acts 58th Leg., R.S., Ch.
  110, Sec. 6(e) (part).)
         Sec. 1109.108.  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, real, personal, or mixed,
  located in district territory, if the interest is necessary or
  convenient 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 required 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 a bond for the issuance
  of a temporary restraining order or a temporary injunction; or
               (2)  provide a bond for costs or a supersedeas bond on
  an appeal or petition for review. (Acts 58th Leg., R.S., Ch. 110,
  Sec. 10.)
         Sec. 1109.109.  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 provisions prescribed in writing by the
  donor that are not inconsistent with the proper management and
  objectives of the district. (Acts 58th Leg., R.S., Ch. 110, Sec.
  16.)
         Sec. 1109.110.  CONSTRUCTION CONTRACTS. The board may enter
  into construction contracts for the district. (Acts 58th Leg.,
  R.S., Ch. 110, Sec. 6(e) (part).)
         Sec. 1109.111.  OPERATING AND MANAGEMENT CONTRACTS. The
  board may enter into an operating or management contract relating
  to a hospital facility. (Acts 58th Leg., R.S., Ch. 110, Sec. 6(e)
  (part).)
         Sec. 1109.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  CARE AND TREATMENT. The board, with the approval of the
  commissioners court, may contract with:
               (1)  any county for the care and treatment of a sick or
  injured person of that county; and
               (2)  this state or a federal agency for the care and
  treatment of a sick or injured person for whom the state or agency
  is responsible. (Acts 58th Leg., R.S., Ch. 110, Sec. 6(g) (part).)
         Sec. 1109.113.  PAYMENT FOR TREATMENT; PROCEDURES. (a)  
  When a patient who resides in the district is admitted to a district
  facility, the district administrator shall have an inquiry made
  into the financial circumstances of:
               (1)  the patient; and
               (2)  the patient's relatives legally responsible for
  the patient's support.
         (b)  The district without charge shall provide to a patient
  who resides in the district the care and treatment for which the
  patient or those relatives cannot pay.
         (c)  If the district administrator determines that the
  patient or those relatives cannot pay for all or part of the
  patient's care and treatment in the hospital, the amount of the
  costs that cannot be paid becomes a charge against the district.
         (d)  If the district administrator determines that the
  patient or those relatives can pay for all or part of the care and
  treatment provided by the district, the district administrator
  shall report that determination to the board, and the board shall
  issue an order directing the patient or those relatives 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.
         (e)  The district administrator may collect the amount from
  the patient's estate, or from any relative legally responsible for
  the patient's support, in the manner provided by law for the
  collection of expenses of the last illness of a deceased person.
         (f)  If there is a dispute as to the ability to pay, or doubt
  in the mind of the district administrator concerning the ability to
  pay, the county court shall hold a hearing and, after calling
  witnesses, shall:
               (1)  resolve the dispute or doubt; and
               (2)  issue any appropriate order.
         (g)  Either party to the dispute may appeal the order to the
  district court. (Acts 58th Leg., R.S., Ch. 110, Secs. 15(a) (part),
  (b).)
         Sec. 1109.114.  REIMBURSEMENT FOR SERVICES. (a) The board
  shall require a county, municipality, or public hospital located
  outside the district to reimburse the district for the district's
  care or treatment of a sick or injured person for whom that county,
  municipality, or public hospital has an obligation to provide care,
  as provided by Chapter 61, Health and Safety Code.
         (b)  The board shall seek reimbursement under Article
  104.002, Code of Criminal Procedure, for the district's care or
  treatment of a person who is confined in a Tyler County jail
  facility and is not a district resident. (Acts 58th Leg., R.S., Ch.
  110, Sec. 6(g) (part).)
         Sec. 1109.115.  AUTHORITY TO SUE AND BE SUED. The board may
  sue and be sued. (Acts 58th Leg., R.S., Ch. 110, Sec. 6(a) (part).)
  [Sections 1109.116-1109.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 1109.151.  BUDGET. (a) The district administrator,
  under the direction of the board, shall prepare a proposed annual
  budget.
         (b)  The budget must be approved by the board. (Acts 58th
  Leg., R.S., Ch. 110, Sec. 9(b) (part).)
         Sec. 1109.152.  NOTICE; HEARING; ADOPTION OF BUDGET. (a)
  The board shall publish notice of a public hearing on the proposed
  annual budget.  The notice must be published in a newspaper of
  general circulation in the district one time before the 10th day
  before the date of the hearing.
         (b)  The board shall adopt a budget by acting on the budget
  proposed by the district administrator.
         (c)  The budget is effective only after adoption by the
  board. (Acts 58th Leg., R.S., Ch. 110, Sec. 9(b) (part).)
         Sec. 1109.153.  AMENDMENTS TO BUDGET.  The budget may be
  amended on the board's approval.  (Acts 58th Leg., R.S., Ch. 110,
  Sec. 9(b) (part).)
         Sec. 1109.154.  FISCAL YEAR. (a) The district operates
  according to a fiscal year established by the board.
         (b)  The fiscal year may not be changed:
               (1)  when revenue bonds are outstanding; or
               (2)  more than once in a 24-month period. (Acts 58th
  Leg., R.S., Ch. 110, Sec. 8.)
         Sec. 1109.155.  ANNUAL AUDIT. As soon as practicable after
  the close of each fiscal year, the board shall have an audit made of
  the district's financial condition for the fiscal year by an
  independent public accountant. (Acts 58th Leg., R.S., Ch. 110,
  Sec. 7 (part).)
         Sec. 1109.156.  FINANCIAL REPORT. (a) As soon as
  practicable after the close of each fiscal year, the district
  administrator shall prepare a report that includes:
               (1)  a complete sworn statement of:
                     (A)  all money and choses in action received by
  the administrator; and
                     (B)  how the money and choses in action were
  disbursed or otherwise disposed; and
               (2)  the details of district operation during the
  preceding fiscal year.
         (b)  The district administrator shall make the report to:
               (1)  the board; and
               (2)  the commissioners court. (Acts 58th Leg., R.S.,
  Ch. 110, Sec. 9(a).)
         Sec. 1109.157.  DEPOSITORY. Every two years, the board
  shall select a depository for the district to secure all district
  money in the manner provided for securing county funds.  (Acts 58th
  Leg., R.S., Ch. 110, Sec. 11 (part).)
         Sec. 1109.158.  INVESTMENTS. The board may purchase, sell,
  and invest district funds in investments authorized by Chapter
  2256, Government Code. (Acts 58th Leg., R.S., Ch. 110, Sec. 11
  (part).)
         Sec. 1109.159.  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 if the board declares that:
               (1)  money is not available to meet authorized
  obligations of the district; and
               (2)  an emergency exists.
         (b)  To secure a loan, the board may pledge:
               (1)  district revenue that is not pledged to pay the
  district's bonded indebtedness;
               (2)  a district tax to be imposed by the district in the
  next 12-month period that is not pledged to pay the principal of or
  interest on district bonds; or
               (3)  a district bond that has 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)  The board may not spend money obtained from a loan under
  this section for any purpose other than:
               (1)  the purpose for which the board declared an
  emergency; and
               (2)  if district taxes or bonds are pledged to pay the
  loan, the purposes for which the taxes were imposed or the bonds
  were authorized. (Acts 58th Leg., R.S., Ch. 110, Sec. 21.)
  [Sections 1109.160-1109.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 1109.201.  GENERAL OBLIGATION BONDS. The commissioners
  court may issue and sell general obligation bonds of the district
  for any purpose relating to:
               (1)  purchasing, constructing, acquiring, repairing,
  or renovating buildings and improvements;
               (2)  equipping buildings and improvements;
               (3)  acquiring or operating a mobile emergency medical
  service; and
               (4)  hospital purposes. (Acts 58th Leg., R.S., Ch.
  110, Sec. 4(a) (part).)
         Sec. 1109.202.  TAX TO PAY GENERAL OBLIGATION BONDS. (a) An
  ad valorem tax shall be imposed at a rate sufficient to create an
  interest and sinking fund to pay the principal of and interest on
  bonds issued under Section 1109.201 as the bonds mature.
         (b)  The tax required by this section together with any other
  ad valorem tax imposed for the district may not in any year exceed
  75 cents on each $100 valuation of all taxable property in the
  district. (Acts 58th Leg., R.S., Ch. 110, Sec. 4(a) (part).)
         Sec. 1109.203.  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 in accordance with the provisions of Chapter 1251,
  Government Code, relating to county bonds.
         (b)  The commissioners court:
               (1)  may call the election on its own motion; or
               (2)  shall call the election at the request of the
  board.
         (c)  The cost of the bond election is a charge on the
  district, and the district must provide for the payment of the bond
  election costs before the commissioners court is required to order
  an election. (Acts 58th Leg., R.S., Ch. 110, Sec. 4(a) (part).)
         Sec. 1109.204.  EXECUTION OF GENERAL OBLIGATION BONDS. (a)
  The county judge of Tyler County shall execute the general
  obligation bonds in the district's name.
         (b)  The county clerk of Tyler County shall countersign the
  bonds. (Acts 58th Leg., R.S., Ch. 110, Sec. 4(a) (part).)
         Sec. 1109.205.  REVENUE BONDS. (a) The district may issue
  revenue bonds to:
               (1)  purchase, construct, acquire, repair, or renovate
  buildings and improvements;
               (2)  equip buildings and improvements for the hospital
  or hospital system;
               (3)  acquire sites to be used for hospital purposes; or
               (4)  acquire and operate a mobile emergency medical
  service to assist the district in carrying out its 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 lien on all or part of the district property.
         (d)  The district shall issue revenue bonds in the manner
  provided by Sections 264.042, 264.043, 264.046, 264.047, 264.048,
  and 264.049, Health and Safety Code. (Acts 58th Leg., R.S., Ch.
  110, Sec. 4(c).)
         Sec. 1109.206.  REFUNDING BONDS. (a) The district may,
  without an election, issue refunding bonds to refund any bonds
  issued or assumed 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
               (2)  exchanged wholly or partly for not less than a
  similar principal amount of the outstanding bonds. (Acts 58th
  Leg., R.S., Ch. 110, Secs. 4(a) (part), (b) (part).)
         Sec. 1109.207.  MATURITY OF BONDS. District bonds must
  mature not later than 40 years after the date of issuance. (Acts
  58th Leg., R.S., Ch. 110, Sec. 4(g) (part).)
         Sec. 1109.208.  EXECUTION OF BONDS. The board president
  shall execute district bonds in the district's name, and the board
  secretary shall countersign the bonds in the manner provided by
  Chapter 618, Government Code. (Acts 58th Leg., R.S., Ch. 110, Sec.
  4(d).)
         Sec. 1109.209.  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)  any transaction relating to the bonds; and
               (3)  profits made in the sale of the bonds. (Acts 58th
  Leg., R.S., Ch. 110, Sec. 4(e) (part).)
  [Sections 1109.210-1109.250 reserved for expansion]
  SUBCHAPTER F. TAXES
         Sec. 1109.251.  IMPOSITION OF AD VALOREM TAX. (a) The
  commissioners court shall impose a tax for the benefit of the
  district on all property in the district subject to district
  taxation.
         (b)  The commissioners court shall impose the tax to:
               (1)  pay the interest on and create a sinking fund for
  general obligation bonds assumed or issued by the district for
  hospital purposes as provided by this chapter;
               (2)  provide for the operation and maintenance of the
  hospital or hospital system; and
               (3)  when requested by the board and approved by the
  commissioners court, make improvements and additions to the
  hospital system, and acquire necessary sites for the hospital
  system by purchase, lease, or condemnation.
         (c)  The district may not impose a tax to pay the principal of
  or interest on revenue bonds. (Acts 58th Leg., R.S., Ch. 110, Secs.
  3 (part), 4(f) (part).)
         Sec. 1109.252.  TAX RATE. The commissioners court shall
  impose the tax at a rate not to exceed 75 cents on each $100
  valuation of all taxable property in the district. (Acts 58th Leg.,
  R.S., Ch. 110, Sec. 3 (part).)
         Sec. 1109.253.  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. (Acts 58th Leg., R.S., Ch. 110, Sec.
  4(f) (part).)
  [Sections 1109.254-1109.300 reserved for expansion]
  SUBCHAPTER G. DISSOLUTION
         Sec. 1109.301.  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 at least 15
  percent of the registered district voters.
         (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. (Acts 58th Leg., R.S., Ch.
  110, Secs. 22(a), (b) (part).)
         Sec. 1109.302.  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 copy of the election order in a
  newspaper with general circulation in the district.
         (b)  The first publication of notice must appear before the
  35th day before the date set for the election. (Acts 58th Leg.,
  R.S., Ch. 110, Sec. 22(c) (part).)
         Sec. 1109.303.  BALLOT. The ballot for an election under
  this subchapter must be printed to permit voting for or against the
  proposition: "The dissolution of the Tyler County Hospital
  District."  (Acts 58th Leg., R.S., Ch. 110, Sec. 22(c) (part).)
         Sec. 1109.304.  ELECTION RESULTS. (a) If a majority of the
  district voters favor dissolution, the board shall find that the
  district is dissolved.
         (b)  If the board finds that the election results do not
  favor the proposition to dissolve the district, another dissolution
  election may not be held before the first anniversary of the date of
  the most recent election to dissolve the district. (Acts 58th Leg.,
  R.S., Ch. 110, Secs. 22(d) (part), (g).)
         Sec. 1109.305.  TRANSFER OR ADMINISTRATION OF ASSETS. (a)
  If a majority of the district voters favor dissolution, the board
  shall:
               (1)  transfer the land, buildings, improvements,
  equipment, and other assets that belong to the district to Tyler
  County or another governmental entity in Tyler 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.  
  (Acts 58th Leg., R.S., Ch. 110, Secs. 22(d) (part), (f).)
         Sec. 1109.306.  SALE OR TRANSFER OF ASSETS AND LIABILITIES.
  (a) Notwithstanding any other provision of this subchapter, 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:
               (1)  contravene a trust indenture or bond resolution
  relating to the district's outstanding bonds; or
               (2)  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 transfer or dispose of the district's
  assets only for due compensation, unless the transfer is made to
  another governmental agency embracing the district and using the
  transferred assets for the benefit of residents formerly in the
  district.
         (e)  A grant from federal funds is an obligation to be repaid
  in satisfaction. (Acts 58th Leg., R.S., Ch. 110, Secs. 22(k), (l).)
         Sec. 1109.307.  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 roll 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 board 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 board
  secretary to transmit the money to the Tyler County tax
  assessor-collector. (Acts 58th Leg., R.S., Ch. 110, Secs. 22(e),
  (h).)
         Sec. 1109.308.  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
  summarizing the board's actions in dissolving the district.
         (b)  Not later than the 10th day after the date the
  commissioners court receives the report and determines that the
  requirements of this subchapter have been fulfilled, the
  commissioners court shall enter an order:
               (1)  dissolving the district; and
               (2)  disbanding and releasing the board from any
  further duty or obligation. (Acts 58th Leg., R.S., Ch. 110, Secs.
  22(i), (j).)
  CHAPTER 1110. VAL VERDE COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1110.001.  DEFINITIONS 
  Sec. 1110.002.  AUTHORITY FOR OPERATION 
  Sec. 1110.003.  ESSENTIAL PUBLIC FUNCTION 
  Sec. 1110.004.  DISTRICT TERRITORY 
  Sec. 1110.005.  CORRECTION OF INVALID PROCEDURES 
  Sec. 1110.006.  DISTRICT SUPPORT AND MAINTENANCE NOT
                   STATE OBLIGATION 
  Sec. 1110.007.  RESTRICTION ON STATE FINANCIAL
                   ASSISTANCE 
  [Sections 1110.008-1110.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1110.051.  BOARD ELECTION; TERM 
  Sec. 1110.052.  QUALIFICATIONS FOR OFFICE 
  Sec. 1110.053.  EX OFFICIO DIRECTOR 
  Sec. 1110.054.  BALLOT PETITION 
  Sec. 1110.055.  NOTICE OF ELECTION 
  Sec. 1110.056.  BOARD VACANCY 
  Sec. 1110.057.  OFFICERS 
  Sec. 1110.058.  COMPENSATION 
  Sec. 1110.059.  BOND; RECORD OF BOND AND OATH 
  Sec. 1110.060.  VOTING REQUIREMENT 
  Sec. 1110.061.  BOARD MEETINGS 
  Sec. 1110.062.  DISTRICT ADMINISTRATOR; ASSISTANT
                   ADMINISTRATOR 
  Sec. 1110.063.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1110.064.  APPOINTMENT OF STAFF AND EMPLOYEES 
  Sec. 1110.065.  SENIORITY; RETIREMENT BENEFITS 
  [Sections 1110.066-1110.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1110.101.  DISTRICT RESPONSIBILITY 
  Sec. 1110.102.  RESTRICTION ON POLITICAL SUBDIVISION
                   TAXATION AND DEBT 
  Sec. 1110.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
  Sec. 1110.104.  HOSPITAL SYSTEM 
  Sec. 1110.105.  RULES 
  Sec. 1110.106.  PURCHASING AND ACCOUNTING 
  Sec. 1110.107.  OPERATING, MANAGEMENT, OR CONSULTING
                   CONTRACTS 
  Sec. 1110.108.  DISTRICT PROPERTY, FACILITIES, AND
                   EQUIPMENT 
  Sec. 1110.109.  GIFTS AND ENDOWMENTS 
  Sec. 1110.110.  CONSTRUCTION AND PURCHASE CONTRACTS 
  Sec. 1110.111.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR CARE AND TREATMENT 
  Sec. 1110.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR INVESTIGATORY OR OTHER SERVICES 
  Sec. 1110.113.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1110.114.  FEE SCHEDULE FOR OUT-OF-DISTRICT
                   RESIDENTS 
  Sec. 1110.115.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1110.116-1110.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 1110.151.  BUDGET 
  Sec. 1110.152.  PROPOSED BUDGET: NOTICE AND HEARING;
                   APPROVAL OF BUDGET 
  Sec. 1110.153.  AMENDMENTS TO BUDGET 
  Sec. 1110.154.  RESTRICTION ON EXPENDITURES 
  Sec. 1110.155.  FISCAL YEAR 
  Sec. 1110.156.  ANNUAL AUDIT 
  Sec. 1110.157.  INSPECTION OF AUDIT AND DISTRICT
                   RECORDS 
  Sec. 1110.158.  FINANCIAL REPORT 
  Sec. 1110.159.  DEPOSITORY 
  Sec. 1110.160.  SPENDING AND INVESTMENT RESTRICTIONS 
  [Sections 1110.161-1110.200 reserved for expansion]
  SUBCHAPTER E. BONDS
  Sec. 1110.201.  GENERAL OBLIGATION BONDS 
  Sec. 1110.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1110.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1110.204.  REVENUE BONDS 
  Sec. 1110.205.  REFUNDING BONDS 
  Sec. 1110.206.  MATURITY OF BONDS 
  Sec. 1110.207.  EXECUTION OF BONDS 
  Sec. 1110.208.  BONDS EXEMPT FROM TAXATION 
  [Sections 1110.209-1110.250 reserved for expansion]
  SUBCHAPTER F. TAXES
  Sec. 1110.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1110.252.  TAX RATE 
  CHAPTER 1110. VAL VERDE COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1110.001.  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 Val Verde County Hospital
  District. (New.)
         Sec. 1110.002.  AUTHORITY FOR OPERATION. The Val Verde
  County Hospital District operates in accordance with Section 9,
  Article IX, Texas Constitution, and has the rights, powers, and
  duties provided by that section and this chapter. (Acts 64th Leg.,
  R.S., Ch. 658, Sec. 1 (part).)
         Sec. 1110.003.  ESSENTIAL PUBLIC FUNCTION. The district
  performs an essential public function in carrying out the purposes
  of this chapter.  (Acts 64th Leg., R.S., Ch. 658, Sec. 21 (part).)
         Sec. 1110.004.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of Val Verde County,
  Texas.  (Acts 64th Leg., R.S., Ch. 658, Sec. 1 (part).)
         Sec. 1110.005.  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. (Acts 64th Leg., R.S., Ch. 658, Sec. 23 (part).)
         Sec. 1110.006.  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. (Acts 64th
  Leg., R.S., Ch. 658, Sec. 20 (part).)
         Sec. 1110.007.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.
  The legislature may not make a direct appropriation for the
  construction, maintenance, or improvement of a district facility.
  (Acts 64th Leg., R.S., Ch. 658, Sec. 20 (part).)
  [Sections 1110.008-1110.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1110.051.  BOARD ELECTION; TERM. (a) The board
  consists of seven directors elected as follows:
               (1)  one director elected from each county
  commissioners precinct; and
               (2)  three directors elected from the district at
  large.
         (b)  A district voter may vote on the directors to be elected
  at large and on the director to be elected from the precinct in
  which the voter resides.
         (c)  On the May uniform election date of each even-numbered
  year or another date authorized by law, the appropriate number of
  directors shall be elected.
         (d)  Directors serve staggered four-year terms.  (Acts 64th
  Leg., R.S., Ch. 658, Secs. 4(a) (part), (c) (part).)
         Sec. 1110.052.  QUALIFICATIONS FOR OFFICE. (a)  A person may
  not be elected or appointed as a director unless the person is:
               (1)  at least 18 years of age at the time of the
  appointment or election;
               (2)  a resident of the district; and
               (3)  a qualified voter.
         (b)  A director who represents a county commissioners
  precinct must be a resident of that precinct.  (Acts 64th Leg.,
  R.S., Ch. 658, Sec. 4(a) (part).)
         Sec. 1110.053.  EX OFFICIO DIRECTOR. The chief of staff may
  serve as an ex officio director without the right to vote as a
  director. (Acts 64th Leg., R.S., Ch. 658, Sec. 4(a) (part).)
         Sec. 1110.054.  BALLOT PETITION. A person who wants to have
  the person's name printed on the ballot as a candidate for director
  must file with the board secretary a petition requesting that
  action. The petition must be:
               (1)  signed by at least 10 registered voters; and
               (2)  filed by the deadline imposed by Section 144.005,
  Election Code. (Acts 64th Leg., R.S., Ch. 658, Sec. 4(c) (part).)
         Sec. 1110.055.  NOTICE OF ELECTION. At least 10 days before
  the date of a directors' election, notice of the election shall be
  published one time in a newspaper of general circulation in Val
  Verde County. (Acts 64th Leg., R.S., Ch. 658, Sec. 4(c) (part).)
         Sec. 1110.056.  BOARD VACANCY. (a) If a vacancy occurs in
  the office of director, the remaining directors shall appoint a
  director for the unexpired term.
         (b)  If the number of directors is reduced to fewer than four
  for any reason, the remaining directors shall immediately call a
  special election to fill the vacancies. If the remaining directors
  do not call the election, a district court, on application of a
  district voter or taxpayer, may order the directors to hold the
  election. (Acts 64th Leg., R.S., Ch. 658, Sec. 4(b) (part).)
         Sec. 1110.057.  OFFICERS. The board shall elect from among
  its members a president and secretary. (Acts 64th Leg., R.S., Ch.
  658, Sec. 4(b) (part).)
         Sec. 1110.058.  COMPENSATION. A director serves without
  compensation. (Acts 64th Leg., R.S., Ch. 658, Sec. 4(a) (part).)
         Sec. 1110.059.  BOND; RECORD OF BOND AND OATH. (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)  Each director's bond and constitutional oath of office
  must be deposited with the district's depository bank for
  safekeeping. (Acts 64th Leg., R.S., Ch. 658, Sec. 4(a) (part).)
         Sec. 1110.060.  VOTING REQUIREMENT. A concurrence of four
  directors is sufficient in any matter relating to district
  business. (Acts 64th Leg., R.S., Ch. 658, Sec. 4(b) (part).)
         Sec. 1110.061.  BOARD MEETINGS. (a) A board meeting may be
  called by the president or any four directors.
         (b)  Notice of the time and place of a board meeting must be
  given to each director at least 72 hours before the time of the
  meeting. (Acts 64th Leg., R.S., Ch. 658, Sec. 4(b) (part).)
         Sec. 1110.062.  DISTRICT ADMINISTRATOR; ASSISTANT
  ADMINISTRATOR. (a) The board may appoint a qualified person as
  district administrator.
         (b)  The board may appoint an assistant administrator.
         (c)  The administrator and assistant administrator, if any,
  serve at the will of the board and shall receive the compensation
  determined by the board.
         (d)  On assuming the duties of district administrator, the
  administrator shall 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 administrator performing the
  administrator's duties; and
               (2)  contains any other condition the board requires.
  (Acts 64th Leg., R.S., Ch. 658, Sec. 6 (part).)
         Sec. 1110.063.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
  Subject to any limitations prescribed by the board, the district
  administrator shall:
               (1)  supervise the work and activities of the district;
  and
               (2)  direct the affairs of the district. (Acts 64th
  Leg., R.S., Ch. 658, Sec. 6 (part).)
         Sec. 1110.064.  APPOINTMENT OF STAFF AND EMPLOYEES. (a) The
  board may appoint to the staff any doctors the board considers
  necessary for the efficient operation of the district and may make
  temporary appointments as warranted.
         (b)  The district may employ fiscal agents, accountants,
  architects, and attorneys as the board considers proper.
         (c)  The board may delegate to the district administrator the
  authority to employ technicians, nurses, and district employees.
  (Acts 64th Leg., R.S., Ch. 658, Secs. 6 (part), 15.)
         Sec. 1110.065.  SENIORITY; RETIREMENT BENEFITS. The board
  may:
               (1)  adopt rules relating to the seniority of district
  employees, including rules for a retirement plan based on
  seniority; and
               (2)  give effect to previous years of service for those
  employees continuously employed in the operation or management of
  hospital facilities:
                     (A)  constructed by the district; or
                     (B)  acquired by the district, including
  facilities acquired when the district was created because of former
  Section 2, Chapter 658, Acts of the 64th Legislature, Regular
  Session, 1975. (Acts 64th Leg., R.S., Ch. 658, Sec. 6 (part).)
  [Sections 1110.066-1110.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1110.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for providing hospital care for the district's
  indigent residents. (Acts 64th Leg., R.S., Ch. 658, Sec. 19
  (part).)
         Sec. 1110.102.  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 or to provide medical care. (Acts 64th Leg.,
  R.S., Ch. 658, Sec. 19 (part).)
         Sec. 1110.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.
  The board shall manage, control, and administer the hospital system
  and all the district's money and resources. (Acts 64th Leg., R.S.,
  Ch. 658, Sec. 6 (part).)
         Sec. 1110.104.  HOSPITAL SYSTEM. The district shall provide
  for:
               (1)  the establishment of a hospital system by:
                     (A)  purchasing, constructing, acquiring,
  repairing, or renovating buildings and equipment; and
                     (B)  equipping the buildings; and
               (2)  the administration of the hospital system for
  hospital purposes. (Acts 64th Leg., R.S., Ch. 658, Sec. 2 (part).)
         Sec. 1110.105.  RULES. The board may adopt rules governing
  the operation of the hospital, the hospital system, and the
  district's staff and employees. (Acts 64th Leg., R.S., Ch. 658,
  Sec. 6 (part).)
         Sec. 1110.106.  PURCHASING AND ACCOUNTING. 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. (Acts 64th
  Leg., R.S., Ch. 658, Sec. 11(a).)
         Sec. 1110.107.  OPERATING, MANAGEMENT, OR CONSULTING
  CONTRACTS. (a) The board may enter into an operating, management,
  or consulting contract with respect to all or part of the district's
  facilities. The contract must provide that the board retains
  responsibility for and control of the district's operation.
         (b)  A company providing services to the district under the
  contract, and the officers, directors, and employees of the
  company, while performing services under the contract for benefit
  of the district:
               (1)  are employees of the district solely for purposes
  of the immunity or liability of the company and the company's
  officers, directors, and employees; and
               (2)  have immunity or limited liability under laws
  applicable to district employees, whether statutory or common law,
  to the extent a district employee would be entitled to immunity or
  limited liability under the same circumstances. (Acts 64th Leg.,
  R.S., Ch. 658, Sec. 10(a).)
         Sec. 1110.108.  DISTRICT PROPERTY, FACILITIES, AND
  EQUIPMENT. (a) The board may lease all or part of the district's
  property, including facilities or equipment, on terms the board
  considers to be in the best interest of the district's residents.
  The term of the lease may not exceed 25 years from the date entered.
         (b)  The board may:
               (1)  lease or acquire property, including facilities or
  equipment, for the use of the district; and
               (2)  mortgage or pledge the property as security for
  the payment of the purchase price.
         (c)  The board may sell or otherwise dispose of property,
  including facilities or equipment, for the district.  Sale or other
  disposal under this subsection must be at a public sale and at a
  price and on terms the board determines are most advantageous to the
  district.
         (d)  The board may donate to another governmental entity or
  to a charitable organization any surplus personal property or
  equipment if the donation serves a public purpose and is
  accompanied by adequate consideration.  (Acts 64th Leg., R.S., Ch.
  658, Secs. 10(b), (c), (d), 11(c) (part).)
         Sec. 1110.109.  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, and other provisions prescribed in
  writing by the donor that are not inconsistent with the proper
  management and objectives of the district. (Acts 64th Leg., R.S.,
  Ch. 658, Sec. 18 (part).)
         Sec. 1110.110.  CONSTRUCTION AND PURCHASE CONTRACTS. (a) A
  construction contract that involves the expenditure of more than
  $50,000 shall be procured in the manner provided by Subchapter B,
  Chapter 271, Local Government Code.
         (b)  A contract for a purchase that involves the expenditure
  of more than $50,000, other than a contract subject to Subchapter B,
  Chapter 271, Local Government Code, or Chapter 2253, Government
  Code, shall be procured in the manner provided by Subchapter C,
  Chapter 262, Local Government Code.
         (c)  The provisions of Chapter 2253, Government Code,
  relating to performance and payment bonds, apply to construction
  contracts let by the district. (Acts 64th Leg., R.S., Ch. 658, Sec.
  11(b).)
         Sec. 1110.111.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  CARE AND TREATMENT. The board may contract with:
               (1)  any county or municipality located outside the
  district's boundaries for the care and treatment of a sick or
  injured person of that county or municipality; and
               (2)  this state or a federal agency for the treatment of
  a sick or injured person. (Acts 64th Leg., R.S., Ch. 658, Sec. 6
  (part).)
         Sec. 1110.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  INVESTIGATORY OR OTHER SERVICES. The board may contract with a
  political subdivision or governmental agency for the district to
  provide investigatory or other services as to the hospital or
  welfare needs of district inhabitants. (Acts 64th Leg., R.S., Ch.
  658, Sec. 6 (part).)
         Sec. 1110.113.  PAYMENT FOR TREATMENT; PROCEDURES. (a)
  When a patient who resides in the district is admitted to a district
  facility, the district administrator may have an inquiry made into
  the circumstances of:
               (1)  the patient; and
               (2)  the patient's relatives legally liable for the
  patient's support.
         (b)  If the district administrator determines that the
  patient or those relatives cannot pay for all or part of the
  patient's care and treatment in the hospital, the amount that
  cannot be paid becomes a charge against the district.
         (c)  If the district administrator determines that the
  patient or those relatives can pay for all or part 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
  care and support. The amount ordered must be proportionate to their
  financial ability.
         (d)  The district administrator may collect the amount from
  the patient's estate, or from those relatives 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 administrator, 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. (Acts 64th Leg., R.S., Ch. 658, Sec. 16.)
         Sec. 1110.114.  FEE SCHEDULE FOR OUT-OF-DISTRICT RESIDENTS.
  The board may adopt a fee schedule for services rendered to
  out-of-district residents which may be different from the fee
  schedule for services rendered to district residents. (Acts 64th
  Leg., R.S., Ch. 658, Sec. 17.)
         Sec. 1110.115.  AUTHORITY TO SUE AND BE SUED. (a) The
  district, through the board, may sue and be sued.
         (b)  The district is entitled to all causes of action and
  defenses to which similar authorities performing only governmental
  functions are entitled. (Acts 64th Leg., R.S., Ch. 658, Sec. 6
  (part).)
  [Sections 1110.116-1110.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 1110.151.  BUDGET. (a) The district administrator
  shall prepare an annual budget for approval by the board.
         (b)  The proposed budget must contain a complete financial
  statement of:
               (1)  the outstanding obligations of the district;
               (2)  the cash on hand to the credit of each district
  fund;
               (3)  the money received by the district from all
  sources during the previous year;
               (4)  the money available to the district from all
  sources during the ensuing year;
               (5)  the balances expected at the end of the year in
  which the budget is being prepared;
               (6)  the estimated revenue and balances available to
  cover the proposed budget;
               (7)  the estimated tax rate required; and
               (8)  the proposed expenditures and disbursements and
  the estimated receipts and collections for the following fiscal
  year. (Acts 64th Leg., R.S., Ch. 658, Sec. 7 (part).)
         Sec. 1110.152.  PROPOSED BUDGET: NOTICE AND HEARING;
  APPROVAL OF BUDGET. (a) The board shall hold a public hearing on
  the proposed annual budget.
         (b)  At least 10 days before the date of the hearing, notice
  of the hearing shall be published one time in a newspaper or
  newspapers that individually or collectively provide general
  circulation in the district.
         (c)  Any property tax payer of the district is entitled to be
  present and participate at the hearing in accordance with the rules
  of decorum and procedures prescribed by the board.
         (d)  At the conclusion of the hearing, the board shall act on
  the budget proposed by the district administrator. The board may
  make any changes in the proposed budget that the board judges the
  law warrants and the interests of the taxpayers demand. The board
  must approve the annual budget. (Acts 64th Leg., R.S., Ch. 658, Sec.
  7 (part).)
         Sec. 1110.153.  AMENDMENTS TO BUDGET. The annual budget may
  be amended as required by circumstances. The board must approve all
  amendments. (Acts 64th Leg., R.S., Ch. 658, Sec. 7 (part).)
         Sec. 1110.154.  RESTRICTION ON EXPENDITURES. Money may be
  spent only for an expense included in the budget or an amendment to
  the budget. (Acts 64th Leg., R.S., Ch. 658, Sec. 7 (part).)
         Sec. 1110.155.  FISCAL YEAR. (a) The district operates
  according to a fiscal year established by the board.
         (b)  The fiscal year may not be changed more than once in any
  24-month period. (Acts 64th Leg., R.S., Ch. 658, Sec. 7 (part).)
         Sec. 1110.156.  ANNUAL AUDIT. (a) The board annually shall
  have an independent audit made of the district's financial
  condition for the fiscal year.
         (b)  As soon as the audit is completed, the audit shall be
  filed at the district's office. (Acts 64th Leg., R.S., Ch. 658,
  Sec. 7 (part).)
         Sec. 1110.157.  INSPECTION OF AUDIT AND DISTRICT RECORDS.
  The audit and other district records shall be open to inspection at
  the district's principal office. (Acts 64th Leg., R.S., Ch. 658,
  Sec. 7 (part).)
         Sec. 1110.158.  FINANCIAL REPORT. As soon as practicable
  after the close of each fiscal year, the district administrator
  shall prepare for the board:
               (1)  a complete sworn statement of all district money;
  and
               (2)  a complete account of the disbursement of that
  money. (Acts 64th Leg., R.S., Ch. 658, Sec. 7 (part).)
         Sec. 1110.159.  DEPOSITORY. (a) The board shall select one
  or more banks inside or outside the district to serve as a
  depository for district money.
         (b)  District money, other than money invested as provided by
  Section 1110.160(b) and money transmitted to a bank for payment of
  bonds or obligations issued or assumed by the district, shall be
  deposited as received with the depository bank and shall remain on
  deposit.
         (c)  This chapter, including Subsection (b), does not limit
  the power of the board to:
               (1)  place a part of district money on time deposit; or
               (2)  purchase certificates of deposit. (Acts 64th
  Leg., R.S., Ch. 658, Sec. 12.)
         Sec. 1110.160.  SPENDING AND INVESTMENT RESTRICTIONS. (a)
  Except as otherwise provided by Section 1110.108(b) and Sections
  1110.201-1110.207, the district may not incur an obligation payable
  from district revenue other than the revenue on hand or to be on
  hand in the current and following district fiscal years.
         (b)  The board may invest operating, depreciation, or
  building fund reserves only in funds or securities specified by
  Chapter 2256, Government Code. (Acts 64th Leg., R.S., Ch. 658,
  Secs. 6 (part), 11(c) (part).)
  [Sections 1110.161-1110.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 1110.201.  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)  constructing, acquiring, repairing, or renovating
  buildings and improvements; and
               (2)  equipping buildings and improvements for hospital
  purposes. (Acts 64th Leg., R.S., Ch. 658, Sec. 8 (part).)
         Sec. 1110.202.  TAX TO PAY GENERAL OBLIGATION BONDS. (a) At
  the time general obligation bonds are issued by the district under
  Section 1110.201, 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 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
  tax rate approved by the voters at the election authorizing the
  imposition of the tax. (Acts 64th Leg., R.S., Ch. 658, Sec. 8
  (part).)
         Sec. 1110.203.  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 order calling the bond election must provide for
  clerks as in county elections and must specify:
               (1)  the date of the election;
               (2)  the location of the polling places;
               (3)  the presiding and alternate election judges for
  each polling place;
               (4)  the amount of the bonds to be authorized;
               (5)  the maximum interest rate of the bonds; and
               (6)  the maximum maturity of the bonds.
         (c)  Notice of a bond election shall be given as provided by
  Section 1251.003, Government Code. (Acts 64th Leg., R.S., Ch. 658,
  Sec. 8 (part).)
         Sec. 1110.204.  REVENUE BONDS. (a) The board may issue
  revenue bonds to  purchase, construct, acquire, repair, renovate,
  or equip buildings and improvements for hospital purposes.
         (b)  The bonds must be payable from and secured by a pledge of
  all or part of the district revenue derived from the operation of
  the district's hospitals.
         (c)  The bonds may be additionally secured by a mortgage or
  deed of trust lien on all or part of district 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. (Acts 64th Leg., R.S., Ch. 658, Sec. 9(b) (part).)
         Sec. 1110.205.  REFUNDING BONDS. (a) The board may issue
  refunding bonds to refund outstanding indebtedness issued or
  assumed by the district.
         (b)  A refunding bond may be:
               (1)  sold, with the proceeds of the refunding bond
  applied to the payment of outstanding indebtedness; or
               (2)  exchanged wholly or partly for not less than a
  similar principal amount of outstanding indebtedness. (Acts 64th
  Leg., R.S., Ch. 658, Secs. 9(a) (part), (b) (part).)
         Sec. 1110.206.  MATURITY OF BONDS. District bonds must
  mature not later than 40 years after their date of issuance. (Acts
  64th Leg., R.S., Ch. 658, Sec. 9(c) (part).)
         Sec. 1110.207.  EXECUTION OF BONDS. The board president
  shall execute the district's bonds in the district's name and the
  board secretary shall countersign the bonds in the manner provided
  by Chapter 618, Government Code. (Acts 64th Leg., R.S., Ch. 658,
  Sec. 9(c) (part).)
         Sec. 1110.208.  BONDS EXEMPT FROM TAXATION.  The following
  are exempt from taxation by this state or a political subdivision of
  this state:
               (1)  any bonds issued by the district;
               (2)  the transfer and issuance of the bonds; and
               (3)  any profits made in the sale of the bonds. (Acts
  64th Leg., R.S., Ch. 658, Sec. 21 (part).)
  [Sections 1110.209-1110.250 reserved for expansion]
  SUBCHAPTER F. TAXES
         Sec. 1110.251.  IMPOSITION OF AD VALOREM TAX. (a) The board
  shall impose a tax on all property in the district subject to
  district taxation.
         (b)  The board shall impose the tax for the benefit of the
  district to:
               (1)  pay the interest on and create a sinking fund for
  bonds and other obligations issued or assumed by the district for
  hospital purposes as provided by this chapter;
               (2)  pay indebtedness incurred or assumed by the
  district;
               (3)  provide for the operation and maintenance of the
  district and hospital system; and
               (4)  make improvements and additions to the hospital
  system. (Acts 64th Leg., R.S., Ch. 658, Secs. 5 (part), 13 (part).)
         Sec. 1110.252.  TAX RATE. (a) The board may impose the tax
  at a rate not to exceed 30 cents on each $100 valuation of all
  taxable property in the district.
         (b)  In setting the tax rate, the board shall consider the
  income of the district from sources other than taxation. (Acts 64th
  Leg., R.S., Ch. 658, Secs. 5 (part), 13 (part).)
  CHAPTER 1112. WEST COKE COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1112.001.  DEFINITIONS 
  Sec. 1112.002.  AUTHORITY FOR CREATION 
  Sec. 1112.003.  ESSENTIAL PUBLIC FUNCTION 
  Sec. 1112.004.  DISTRICT TERRITORY 
  Sec. 1112.005.  DISTRICT SUPPORT AND MAINTENANCE NOT
                   STATE OBLIGATION 
  Sec. 1112.006.  RESTRICTION ON STATE FINANCIAL
                   ASSISTANCE 
  [Sections 1112.007-1112.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1112.051.  BOARD ELECTION; TERM 
  Sec. 1112.052.  NOTICE OF ELECTION 
  Sec. 1112.053.  BALLOT PETITION 
  Sec. 1112.054.  QUALIFICATIONS FOR OFFICE 
  Sec. 1112.055.  FILING OF OATH 
  Sec. 1112.056.  BOARD VACANCY 
  Sec. 1112.057.  OFFICERS 
  Sec. 1112.058.  COMPENSATION 
  Sec. 1112.059.  VOTING REQUIREMENT 
  Sec. 1112.060.  DISTRICT ADMINISTRATOR; ASSISTANT
                   ADMINISTRATOR 
  Sec. 1112.061.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1112.062.  EMPLOYEES 
  Sec. 1112.063.  RETIREMENT PROGRAM 
  Sec. 1112.064.  MAINTENANCE OF RECORDS; PUBLIC
                   INSPECTION 
  [Sections 1112.065-1112.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
  Sec. 1112.101.  DISTRICT RESPONSIBILITY 
  Sec. 1112.102.  RESTRICTION ON POLITICAL SUBDIVISION
                   TAXATION AND DEBT 
  Sec. 1112.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
  Sec. 1112.104.  HOSPITAL SYSTEM 
  Sec. 1112.105.  RULES 
  Sec. 1112.106.  PURCHASING AND ACCOUNTING 
  Sec. 1112.107.  EMINENT DOMAIN 
  Sec. 1112.108.  GIFTS AND ENDOWMENTS 
  Sec. 1112.109.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR CARE AND TREATMENT 
  Sec. 1112.110.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1112.111.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1112.112-1112.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
  Sec. 1112.151.  BUDGET 
  Sec. 1112.152.  FISCAL YEAR 
  Sec. 1112.153.  AUDIT 
  Sec. 1112.154.  FINANCIAL REPORT 
  Sec. 1112.155.  DEPOSITORY 
  [Sections 1112.156-1112.200 reserved for expansion]
  SUBCHAPTER E.  BONDS
  Sec. 1112.201.  GENERAL OBLIGATION BONDS 
  Sec. 1112.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1112.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1112.204.  EXECUTION OF GENERAL OBLIGATION BONDS 
  Sec. 1112.205.  REFUNDING BONDS 
  Sec. 1112.206.  BONDS EXEMPT FROM TAXATION 
  [Sections 1112.207-1112.250 reserved for expansion]
  SUBCHAPTER F.  TAXES
  Sec. 1112.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1112.252.  TAX RATE 
  Sec. 1112.253.  ELECTION TO INCREASE MAXIMUM TAX RATE 
  Sec. 1112.254.  TAX ASSESSOR-COLLECTOR 
  CHAPTER 1112. WEST COKE COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1112.001.  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 West Coke County Hospital
  District. (New.)
         Sec. 1112.002.  AUTHORITY FOR CREATION. The West Coke
  County Hospital District is created under the authority of Section
  9, Article IX, Texas Constitution, and has the rights, powers, and
  duties prescribed by this chapter. (Acts 58th Leg., R.S., Ch. 315,
  Sec. 1 (part).)
         Sec. 1112.003.  ESSENTIAL PUBLIC FUNCTION. The district
  performs an essential public function in carrying out the purposes
  of this chapter. (Acts 58th Leg., R.S., Ch. 315, Sec. 10 (part).)
         Sec. 1112.004.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of County
  Commissioners Precincts 1 and 3 of Coke County, Texas, as those
  boundaries existed on January 1, 1963. (Acts 58th Leg., R.S., Ch.
  315, Sec. 1 (part).)
         Sec. 1112.005.  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. (Acts 58th
  Leg., R.S., Ch. 315, Sec. 20 (part).)
         Sec. 1112.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.
  The legislature may not make a direct appropriation for the
  construction, maintenance, or improvement of a district facility.
  (Acts 58th Leg., R.S., Ch. 315, Sec. 20 (part).)
  [Sections 1112.007-1112.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1112.051.  BOARD ELECTION; TERM. (a) The district is
  governed by a board of five directors elected from the district at
  large.
         (b)  Unless four-year terms are established under Section
  285.081, Health and Safety Code, directors serve staggered two-year
  terms, with the terms of two or three directors expiring each year,
  as appropriate. (Acts 58th Leg., R.S., Ch. 315, Sec. 4 (part).)
         Sec. 1112.052.  NOTICE OF ELECTION. At least 10 days before
  the date of a directors' election, notice of the election must be
  published one time in a newspaper of general circulation in Coke
  County. (Acts 58th Leg., R.S., Ch. 315, Sec. 4 (part).)
         Sec. 1112.053.  BALLOT PETITION. A person who wants to have
  the person's name printed on the ballot as a candidate for director
  must file a petition requesting that action. The petition must be:
               (1)  signed by at least 25 registered voters; and
               (2)  filed by the deadline imposed by Section 144.005,
  Election Code. (Acts 58th Leg., R.S., Ch. 315, Sec. 4 (part).)
         Sec. 1112.054.  QUALIFICATIONS FOR OFFICE. A person must at
  the time of election or appointment as director:
               (1)  be a resident of the district;
               (2)  own land subject to taxation in the district; and
               (3)  be at least 18 years of age.  (Acts 58th Leg.,
  R.S., Ch. 315, Sec. 4 (part).)
         Sec. 1112.055.  FILING OF OATH. The constitutional oath of
  office executed by a director must be filed in the district's
  office. (Acts 58th Leg., R.S., Ch. 315, Sec. 4 (part).)
         Sec. 1112.056.  BOARD VACANCY. (a) If a vacancy occurs in
  the office of director, the remaining directors shall appoint a
  director for the unexpired term.
         (b)  If the number of directors is reduced to fewer than
  three for any reason, the remaining directors shall immediately
  call a special election to fill the vacancies. If the remaining
  directors do not call the election, the county judge of Coke County
  may fill the vacancies by appointment. (Acts 58th Leg., R.S., Ch.
  315, Sec. 4 (part).)
         Sec. 1112.057.  OFFICERS. The board shall elect from among
  its members a president, a vice president, and a secretary. (Acts
  58th Leg., R.S., Ch. 315, Sec. 4 (part).)
         Sec. 1112.058.  COMPENSATION. A director serves without
  compensation. (Acts 58th Leg., R.S., Ch. 315, Sec. 4 (part).)
         Sec. 1112.059.  VOTING REQUIREMENT. A concurrence of three
  directors is sufficient in any matter relating to district
  business. (Acts 58th Leg., R.S., Ch. 315, Sec. 4 (part).)
         Sec. 1112.060.  DISTRICT ADMINISTRATOR; ASSISTANT
  ADMINISTRATOR. (a) The board shall appoint a qualified person as
  district administrator.
         (b)  The board may appoint an assistant administrator.
         (c)  The district administrator and any assistant
  administrator serve at the will of the board and shall receive the
  compensation determined by the board.
         (d)  On assuming the duties of district administrator, the
  administrator shall execute a bond payable to the district in an
  amount set by the board of not less than $10,000 that:
               (1)  is conditioned on the administrator performing the
  administrator's duties; and
               (2)  contains other conditions the board may require.
  (Acts 58th Leg., R.S., Ch. 315, Sec. 5 (part).)
         Sec. 1112.061.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
  Subject to any limitations prescribed by the board, the district
  administrator shall:
               (1)  supervise the work and activities of the district;
  and
               (2)  direct the affairs of the district. (Acts 58th
  Leg., R.S., Ch. 315, Sec. 5 (part).)
         Sec. 1112.062.  EMPLOYEES. The board may employ any
  doctors, technicians, nurses, and other employees as considered
  necessary for the efficient operation of the district or may
  provide that the district administrator has the authority to employ
  those persons. (Acts 58th Leg., R.S., Ch. 315, Sec. 5 (part).)
         Sec. 1112.063.  RETIREMENT PROGRAM. The board may enter
  into any contract or agreement with this state or the federal
  government as required to establish or continue a retirement
  program for the benefit of the district's employees. (Acts 58th
  Leg., R.S., Ch. 315, Sec. 5 (part).)
         Sec. 1112.064.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.  
  (a)  The board shall:
               (1)  keep an accurate account of board meetings and
  proceedings; and
               (2)  maintain at the district's principal office all
  district records and accounts, including contracts, notices,
  duplicate vouchers, and duplicate receipts.
         (b)  The information described by Subsection (a) shall be
  open to public inspection at the district's principal office at all
  reasonable times. (Acts 58th Leg., R.S., Ch. 315, Sec. 4 (part).)
  [Sections 1112.065-1112.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 1112.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for:
               (1)  operating all hospital facilities for providing
  medical and hospital care of indigent persons; and
               (2)  providing medical and hospital care for the
  district's needy inhabitants. (Acts 58th Leg., R.S., Ch. 315,
  Secs. 2 (part), 19 (part).)
         Sec. 1112.102.  RESTRICTION ON POLITICAL SUBDIVISION
  TAXATION AND DEBT. Coke County or another political subdivision,
  other than 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. (Acts 58th Leg., R.S., Ch. 315,
  Sec. 19 (part).)
         Sec. 1112.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.
  The board shall manage, control, and administer the district's
  hospitals and hospital system. (Acts 58th Leg., R.S., Ch. 315, Sec.
  5 (part).)
         Sec. 1112.104.  HOSPITAL SYSTEM. (a)  The district shall
  provide for:
               (1)  the establishment of a hospital system by:
                     (A)  purchasing, constructing, acquiring,
  repairing, or renovating buildings and equipment; and
                     (B)  equipping the buildings; and
               (2)  the administration of the hospital system for
  hospital purposes.
         (b)  The board shall determine the type, number, and location
  of buildings required to maintain an adequate hospital system.
         (c)  The hospital system may include:
               (1)  outpatient clinics; and
               (2)  any other facilities the board considers necessary
  for hospital care.  (Acts 58th Leg., R.S., Ch. 315, Secs. 2 (part),
  7A.)
         Sec. 1112.105.  RULES. The board may adopt rules for the
  operation of the district and as required to administer this
  chapter. (Acts 58th Leg., R.S., Ch. 315, Secs. 5 (part), 11
  (part).)
         Sec. 1112.106.  PURCHASING AND ACCOUNTING. 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. (Acts 58th
  Leg., R.S., Ch. 315, Sec. 11 (part).)
         Sec. 1112.107.  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 to 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. (Acts 58th
  Leg., R.S., Ch. 315, Sec. 14.)
         Sec. 1112.108.  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. (Acts 58th Leg., R.S., Ch. 315,
  Sec. 17.)
         Sec. 1112.109.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  CARE AND TREATMENT. The board may contract with:
               (1)  any county or municipality located outside the
  district for the care and treatment of a sick or injured person of
  that county or municipality; and
               (2)  this state or a federal agency for the treatment of
  a sick or injured person for whom this state or the federal
  government is responsible. (Acts 58th Leg., R.S., Ch. 315, Sec. 5
  (part).)
         Sec. 1112.110.  PAYMENT FOR TREATMENT; PROCEDURES. (a)
  When a patient who resides in the district is admitted to a district
  facility, the district administrator shall have an inquiry made
  into the circumstances of:
               (1)  the patient; and
               (2)  the patient's relatives legally liable for the
  patient's support.
         (b)  If the district administrator determines that the
  patient or those relatives cannot pay all or part of the patient's
  care and treatment in the hospital, the amount that cannot be paid
  becomes a charge against the district.
         (c)  If the district administrator determines that the
  patient or those relatives can pay for all or part 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 district administrator may collect the amount from
  the patient's estate, or from those relatives 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 administrator, the board shall hold a
  hearing and, after calling witnesses, shall:
               (1)  resolve the dispute or doubt; and
               (2)  issue any appropriate orders. (Acts 58th Leg.,
  R.S., Ch. 315, Sec. 16.)
         Sec. 1112.111.  AUTHORITY TO SUE AND BE SUED. The district,
  through the board, may sue and be sued. (Acts 58th Leg., R.S., Ch.
  315, Sec. 5 (part).)
  [Sections 1112.112-1112.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 1112.151.  BUDGET. (a)  The district administrator
  shall prepare for approval by the board an annual budget that
  corresponds to the district's fiscal year.
         (b)  Not later than August 31 of each year, the board shall
  publish notice of a public hearing on the proposed budget. The
  notice must be published in a newspaper of general circulation in
  Coke County at least 10 days before the date of the hearing. (Acts
  58th Leg., R.S., Ch. 315, Secs. 6 (part), 18.)
         Sec. 1112.152.  FISCAL YEAR. The district operates on a
  fiscal year that begins on October 1 and ends on September 30.
  (Acts 58th Leg., R.S., Ch. 315, Sec. 6 (part).)
         Sec. 1112.153.  AUDIT. (a) The district 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. (Acts 58th Leg., R.S., Ch. 315, Sec. 6
  (part).)
         Sec. 1112.154.  FINANCIAL REPORT. As soon as practicable
  after the close of each fiscal year, the district administrator
  shall prepare for the board:
               (1)  a complete sworn statement of all district money;
  and
               (2)  a complete account of the disbursements of that
  money. (Acts 58th Leg., R.S., Ch. 315, Sec. 6 (part).)
         Sec. 1112.155.  DEPOSITORY. (a) The board shall select one
  or more banks in the district to serve as a depository for district
  money.
         (b)  All district money shall be immediately deposited on
  receipt with a depository bank, except that sufficient money must
  be remitted to an appropriate bank to pay the principal of and
  interest on the district's outstanding bonds or other obligations
  assumed by the district 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.  (Acts 58th Leg., R.S., Ch. 315, Sec. 12.)
  [Sections 1112.156-1112.200 reserved for expansion]
  SUBCHAPTER E.  BONDS
         Sec. 1112.201.  GENERAL OBLIGATION BONDS. (a) The board may
  issue and sell general obligation bonds in the name and on the faith
  and credit of the district for any purpose related to the purchase,
  construction, acquisition, repair, or renovation of buildings and
  improvements, and equipping buildings and improvements for a
  hospital and the hospital system, as determined by the board.
         (b)  The board shall issue the bonds in compliance with the
  applicable provisions of Subtitles A and C, Title 9, Government
  Code.  (Acts 58th Leg., R.S., Ch. 315, Sec. 9 (part).)
         Sec. 1112.202.  TAX TO PAY GENERAL OBLIGATION BONDS. (a) At
  the time general obligation bonds are issued by the district, 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 25 cents on each $100 valuation of taxable property in the
  district. (Acts 58th Leg., R.S., Ch. 315, Sec. 9 (part).)
         Sec. 1112.203.  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 shall call the election. The election must be
  held in accordance with Chapter 1251, Government Code.
         (c)  The bond election order must specify:
               (1)  the date of the election;
               (2)  the location of the polling places;
               (3)  the presiding election officers;
               (4)  the amount of the bonds to be authorized;
               (5)  the maximum maturity of the bonds; and
               (6)  the maximum interest rate of the bonds. (Acts 58th
  Leg., R.S., Ch. 315, Sec. 9 (part).)
         Sec. 1112.204.  EXECUTION OF GENERAL OBLIGATION BONDS. The
  board president shall execute the general obligation bonds in the
  district's name and the board secretary shall attest the bonds.
  (Acts 58th Leg., R.S., Ch. 315, Sec. 9 (part).)
         Sec. 1112.205.  REFUNDING BONDS. (a) District refunding
  bonds may, without an election, be issued to refund any bonds or
  other refundable indebtedness issued or assumed 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. (Acts 58th Leg., R.S., Ch. 315, Sec. 9
  (part).)
         Sec. 1112.206.  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 and issuance of the bonds; and
               (3)  any profits made in the sale of the bonds. (Acts
  58th Leg., R.S., Ch. 315, Sec. 10 (part).)
  [Sections 1112.207-1112.250 reserved for expansion]
  SUBCHAPTER F.  TAXES
         Sec. 1112.251.  IMPOSITION OF AD VALOREM TAX. (a) The
  district may impose a tax on all property in the district subject to
  district taxation.
         (b)  The tax may be used to meet the requirements of:
               (1)  district bonds;
               (2)  indebtedness assumed by the district; and
               (3)  district maintenance and operating expenses.
  (Acts 58th Leg., R.S., Ch. 315, Sec. 3 (part).)
         Sec. 1112.252.  TAX RATE. Unless the rate is increased as
  provided by Section 1112.253, the district may impose the tax at a
  rate not to exceed 25 cents on each $100 valuation of all taxable
  property in the district. (Acts 58th Leg., R.S., Ch. 315, Secs. 3
  (part), 9A (part).)
         Sec. 1112.253.  ELECTION TO INCREASE MAXIMUM TAX RATE. (a)
  The board may order an election to increase the district's maximum
  tax rate to a rate not to exceed 75 cents on each $100 valuation of
  all taxable property in the district.
         (b)  Notice of election shall be given by publishing a
  substantial copy of the election order in a newspaper of general
  circulation in the district once a week for two consecutive weeks
  before the date of the election. The first notice must be published
  at least 14 days before the date of the election.
         (c)  The ballot for the election shall be printed to permit
  voting for or against the proposition: "The imposition of annual
  taxes by the district for hospital purposes at a rate not to exceed
  75 cents on the $100 valuation of all taxable property in the
  district."
         (d)  If a majority of district voters approve the
  proposition, the board may impose taxes as authorized by the
  proposition.
         (e)  A copy of the election results are a public record.
  (Acts 58th Leg., R.S., Ch. 315, Secs. 3 (part), 9A (part).)
         Sec. 1112.254.  TAX ASSESSOR-COLLECTOR. The tax
  assessor-collector of Coke County shall assess and collect taxes
  imposed by the district. (Acts 58th Leg., R.S., Ch. 315, Sec. 15
  (part).)
  CHAPTER 1113. W