80(R) HB 3166 - Enrolled version



	H.B. No. 3166

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 2, Special District Local

Laws Code, is amended by adding Chapter 21 to read as follows:

CHAPTER 21. UPPER SABINE VALLEY SOLID WASTE MANAGEMENT DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 21.001. DEFINITIONS

Sec. 21.002. NATURE OF DISTRICT

Sec. 21.003. PURPOSE

Sec. 21.004. FINDINGS AND DECLARATION OF POLICY

Sec. 21.005. STATE POLICY REGARDING WASTE DISPOSAL

[Sections 21.006-21.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND CHANGES TO

DISTRICT TERRITORY

Sec. 21.051. DISTRICT TERRITORY

Sec. 21.052. ANNEXATION OF COUNTY; PETITION

Sec. 21.053. ANNEXATION PETITION HEARING; NOTICE

Sec. 21.054. EXCLUSION OF COUNTY

Sec. 21.055. ELECTION ON ANNEXATION OR EXCLUSION OF

COUNTY

Sec. 21.056. CONTINUED BOND OBLIGATION FOR EXCLUDED

COUNTY

[Sections 21.057-21.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec. 21.101. GOVERNING BODY; COMPOSITION

Sec. 21.102. APPOINTMENT OF DIRECTORS FROM ANNEXED

COUNTY

Sec. 21.103. TERM

Sec. 21.104. ELIGIBILITY TO SERVE

Sec. 21.105. VACANCY

Sec. 21.106. DIRECTOR'S BOND

Sec. 21.107. TERM OF OFFICERS

Sec. 21.108. BYLAWS

Sec. 21.109. BOARD MEETINGS

Sec. 21.110. COMPENSATION

Sec. 21.111. CONFLICT OF INTEREST IN CONTRACT

[Sections 21.112-21.150 reserved for expansion]

SUBCHAPTER D. ADMINISTRATIVE POWERS AND DUTIES

Sec. 21.151. PRINCIPAL OFFICE

Sec. 21.152. GENERAL MANAGER

Sec. 21.153. EMPLOYEE AND GENERAL MANAGER FIDELITY

BONDS

Sec. 21.154. ATTORNEY

Sec. 21.155. RECORDS; LIMIT ON DISCLOSURE

[Sections 21.156-21.200 reserved for expansion]

SUBCHAPTER E. GENERAL POWERS AND DUTIES

Sec. 21.201. ADMINISTRATION, ENFORCEMENT, AND

ACCOMPLISHMENT OF CHAPTER

Sec. 21.202. CONSERVATION AND RECLAMATION DISTRICT

POWERS

Sec. 21.203. RULES; HEARINGS

Sec. 21.204. SCOPE OF DISTRICT'S REGULATORY POWER

Sec. 21.205. PLANS

Sec. 21.206. STUDIES AND RESEARCH

Sec. 21.207. COOPERATIVE AGREEMENTS WITH OTHER

POLITICAL SUBDIVISIONS

Sec. 21.208. GIFTS, GRANTS, AND LOANS

Sec. 21.209. ACQUISITION OF PROPERTY

Sec. 21.210. EMINENT DOMAIN; COST OF RELOCATING

PROPERTY

Sec. 21.211. ENTRY ON LAND

Sec. 21.212. ROAD RIGHT-OF-WAY

Sec. 21.213. CONSENT FOR CHANGE OR DAMAGE TO STATE

PROPERTY

Sec. 21.214. BIDS ON CONTRACTS FOR PURCHASE OF

VEHICLES, EQUIPMENT, AND SUPPLIES OVER

$15,000; EXCEPTION

[Sections 21.215-21.250 reserved for expansion]

SUBCHAPTER F. CONSTRUCTION, RENOVATION, AND REPAIR CONTRACTS

Sec. 21.251. AUTHORITY TO ENTER INTO CONSTRUCTION,

RENOVATION, AND REPAIR CONTRACTS

Sec. 21.252. BIDS ON CONTRACTS OVER $15,000

Sec. 21.253. CONTRACT SPECIFICATIONS, PLANS, AND

DETAILS

Sec. 21.254. EXECUTION AND AVAILABILITY OF CONTRACTS

Sec. 21.255. CONTRACTOR'S BOND

Sec. 21.256. BOARD CONTROL AND DETERMINATION

Sec. 21.257. INSPECTION OF WORK

Sec. 21.258. PAYMENTS FOR WORK

[Sections 21.259-21.300 reserved for expansion]

SUBCHAPTER G. WASTE DISPOSAL

Sec. 21.301. ACQUISITION OF EXISTING FACILITIES

Sec. 21.302. SOLID WASTE RECOVERY FACILITY

Sec. 21.303. STANDARDS FOR SOLID WASTE HANDLING

Sec. 21.304. MANAGEMENT OF MUNICIPAL SOLID WASTE

Sec. 21.305. ON-SITE SEWAGE DISPOSAL SYSTEMS

Sec. 21.306. ACQUISITION, CONSTRUCTION, AND OPERATION

OF DISPOSAL SYSTEMS

Sec. 21.307. WASTE DISPOSAL CONTRACTS

[Sections 21.308-21.350 reserved for expansion]

SUBCHAPTER H. GENERAL FINANCIAL PROVISIONS

Sec. 21.351. ACCOUNTING

Sec. 21.352. ANNUAL BUDGET

Sec. 21.353. SWORN STATEMENT REGARDING MONEY AND

DISBURSEMENTS

Sec. 21.354. DEPOSITORY

Sec. 21.355. INVESTMENTS

Sec. 21.356. PAYMENT OF EXPENSES

Sec. 21.357. BORROWING MONEY

Sec. 21.358. PAYMENT OF JUDGMENTS

[Sections 21.359-21.400 reserved for expansion]

SUBCHAPTER I. BONDS

Sec. 21.401. AUTHORITY TO ISSUE BONDS

Sec. 21.402. BOND PAYMENT

Sec. 21.403. BOND ELECTION

Sec. 21.404. MATURITY OF BONDS

Sec. 21.405. SIGNATURE

Sec. 21.406. BOND PROVISIONS

Sec. 21.407. MANDAMUS BY BONDHOLDERS

Sec. 21.408. REFUNDING BONDS

Sec. 21.409. TAX EXEMPTION

[Sections 21.410-21.450 reserved for expansion]

SUBCHAPTER J. TAXES

Sec. 21.451. AUTHORITY TO IMPOSE PROPERTY TAXES

Sec. 21.452. AMOUNT OF TAX

Sec. 21.453. TAX RATE

Sec. 21.454. TAX COLLECTOR

CHAPTER 21. UPPER SABINE VALLEY SOLID WASTE MANAGEMENT DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.21.001.DEFINITIONS. In this Act:

(1) "Board" means the district's board of directors.

(2) "Commission" means the Texas Commission on

Environmental Quality.

(3) "Director" means a board member.

(4) "District" means the Upper Sabine Valley Solid

Waste Management District.

(5) "Local government" means:

(A) a municipality;

(B) a county; or

authority acting under Sections 52(b)(1) and (2), Article III, or

Section 59, Article XVI, Texas Constitution.

(6) "Solid waste" has the meaning assigned by Section

361.003, Health and Safety Code.

(7) "Water" means groundwater, percolating or

otherwise, lakes, bays, ponds, springs, rivers, streams, creeks,

and all other bodies of surface water, natural or artificial, that

are wholly or partly in the district.

(8) "Water pollution" means alteration of the

physical, chemical, or biological quality of water or contamination

of water that:

(A) renders the water harmful, detrimental, or

injurious to:

(i) humans, animal life, vegetation, or

property; or

(ii) public health, safety, or welfare; or

(B) impairs the usefulness or the public

enjoyment of the water for any lawful or reasonable purpose.

(V.A.C.S. Art. 4477-7k, Secs. 1.03(1), (2), (4), (5), (7), (14),

(16), (17).)

Sec.21.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district created under Section 59,

Article XVI, Texas Constitution. (V.A.C.S. Art. 4477-7k, Sec.

2.01.)

Sec.21.003.PURPOSE. The purpose of this chapter is to

establish an instrumentality to develop and carry out a regional

water quality protection program through solid waste management and

regulation of waste disposal for Rains, Upshur, and Wood Counties

and for the portion of Smith County that is north of Interstate

Highway 20. (V.A.C.S. Art. 4477-7k, Sec. 1.01.)

Sec.21.004.FINDINGS AND DECLARATION OF POLICY. (a) The

legislature finds that:

(1) the quality of water in East Texas is materially

affected by the disposal of waste throughout the region;

(2) a regional effort to study water pollution, plan

corrective and preventive measures, provide coordinated facilities

for waste disposal, and regulate waste disposal is far more

effective than efforts on a smaller scale;

(3) solid waste, as well as other waste, may impair

water quality by seepage or drainage; and

(4) creation of the district would advance the

established policy of this state to maintain the quality of the

water in the state consistent with:

(A) public health and enjoyment;

(B) the propagation and protection of

terrestrial and aquatic life;

(D) the economic development of the state.

(b) All area included in the district will benefit from the

exercise of the power conferred by this chapter.

public function. (V.A.C.S. Art. 4477-7k, Secs. 1.02(a), (c), 7.01

(part).)

Sec.21.005.STATE POLICY REGARDING WASTE DISPOSAL. The

district's powers and duties are subject to the state policy of

encouraging the development and use of integrated area-wide waste

collection, treatment, and disposal systems to serve the waste

disposal needs of this state's residents, if integrated systems can

reasonably be provided for an area, so as to avoid the economic

burden on residents and the impact on state water quality caused by

the construction and operation of numerous small waste collection,

treatment, and disposal facilities. (V.A.C.S. Art. 4477-7k, Sec.

4.23.)

[Sections 21.006-21.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND CHANGES TO

DISTRICT TERRITORY

Sec.21.051.DISTRICT TERRITORY. Unless the district

territory has been modified under this subchapter, Subchapter J,

Chapter 49, Water Code, or other law, the district's territory

consists of Rains, Upshur, and Wood Counties and the portion of

Smith County north of Interstate Highway 20. (V.A.C.S. Art.

4477-7k, Sec. 2.02.)

Sec.21.052.ANNEXATION OF COUNTY; PETITION. (a) The board

may annex an adjacent county in the manner provided by this section

and Sections 21.053 and 21.055.

(b) To initiate annexation proceedings, the commissioners

court of the adjacent county must petition the board requesting the

board to call an election for the annexation of the petitioner's

county. The petition must be in writing and be endorsed by a

majority of the members of the commissioners court. (V.A.C.S. Art.

4477-7k, Secs. 8.01, 8.02.)

Sec.21.053.ANNEXATION PETITION HEARING; NOTICE. (a) On

receipt of a petition under Section 21.052, the board shall set a

date, time, and place to hold a hearing on the petition. The date

may not be later than the 20th day after the date on which the board

receives the petition.

(b) In addition to the notice required under the open

meetings law, Chapter 551, Government Code, the board shall publish

notice of the date, time, place, and purpose of the hearing in one

or more newspapers with general circulation in the district and in

the county to be annexed.

annexation of the county to the district.

(d) At the conclusion of the hearing, the board shall

determine if an annexation election should be held in the county to

be annexed. (V.A.C.S. Art. 4477-7k, Secs. 8.03(a), (b), (c), (d).)

Sec.21.054.EXCLUSION OF COUNTY. (a) The commissioners

court of a county in the district may petition the board to hold an

election in the county to determine if a majority of voters of that

county want to exclude the county from the district.

(b) If the district has not issued bonds or incurred other

long-term debt before the commissioners court filed the petition,

the board shall, on receipt of the petition, enter an order

authorizing the commissioners court to call an election in that

county.

before the commissioners court filed the petition, the board must

obtain adequate legal and financial assurances that, if the county

withdraws from the district, the county will assume and pay to the

district the county's proportionate share of the district's

outstanding debt based on assessed valuation of taxable property in

the county and district. After obtaining assurances the board

considers adequate, the board shall enter an order authorizing the

commissioners court of that county to call an election in that

county to determine if the county should be excluded from the

district. (V.A.C.S. Art. 4477-7k, Sec. 9.01.)

Sec.21.055.ELECTION ON ANNEXATION OR EXCLUSION OF COUNTY.

(a) Annexation or exclusion of a county is final when approved by a

majority of the voters at an election held in the county to be

annexed or excluded. An election in the existing district

accepting the addition of a county is not required.

(b) Section 41.001(a), Election Code, does not apply to an

election held under this section.

voting for or against the following, as applicable:

(1) "Adding (description of county to be added) to the

Upper Sabine Valley Solid Waste Management District."

(2) "(Description of county to be added) assuming its

proportionate share of the outstanding debts and taxes of the Upper

Sabine Valley Solid Waste Management District, if it is added to the

district."

(3) "The exclusion of ____________________ County

from the Upper Sabine Valley Solid Waste Management District and

assumption by the county of a duty to pay its proportionate share of

the outstanding indebtedness of the district."

(d) If a district has outstanding debts or taxes, the voters

in an election to approve the annexation must also determine if the

annexed county will assume its proportion of the debts or taxes if

added to the district.

(e) If the district has outstanding bonds or other long term

obligations, the voters in the election to approve the exclusion

must also determine if the excluded county will assume a duty to pay

its proportion of the district's outstanding indebtedness.

(f) The board shall file a copy of the election results with

the commission. (V.A.C.S. Art. 4477-7k, Secs. 8.03(e), (f), (g)

(part), (h), 9.02(a), (b), (c) (part), (d).)

Sec.21.056.CONTINUED BOND OBLIGATION FOR EXCLUDED COUNTY.

The exclusion of a county under Section 21.054(c) does not relieve

the district of its obligation to perform and observe the covenants

and obligations or the conditions prescribed by the order or

resolution authorizing the issuance of the district's bonds.

(V.A.C.S. Art. 4477-7k, Sec. 9.03.)

[Sections 21.057-21.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec.21.101.GOVERNING BODY; COMPOSITION. (a) The

district is governed by a board of directors composed of at least

six directors.

(b) If the district is composed of only one county, the

commissioners court of that county shall appoint six persons to

serve as directors.

commissioners court of each county included in the district shall

each appoint three persons to serve as directors.

(d) If the district is composed of three or more counties,

the commissioners court of each county included in the district

shall each appoint two persons to serve as directors.

(e) At least one of the directors appointed by each

commissioners court shall represent the interests of

municipalities and of unincorporated communities with a population

of 1,000 or more that are located in that county. (V.A.C.S. Art.

4477-7k, Sec. 3.01.)

Sec.21.102.APPOINTMENT OF DIRECTORS FROM ANNEXED COUNTY.

(a) The commissioners court of an annexed county shall appoint two

directors to serve on the board.

(b) The newly appointed directors shall draw lots to

determine their initial terms of office. One new director shall

serve an initial term that coincides with the terms of directors

that expire before the expiration of two years and the other new

director shall serve a term that expires after the expiration of

two years but before the expiration of four years. (V.A.C.S. Art.

4477-7k, Sec. 8.04.)

Sec.21.103.TERM. Except as provided by Section

21.102(b), a director serves a term of four years. (V.A.C.S. Art.

4477-7k, Sec. 3.03.)

Sec.21.104.ELIGIBILITY TO SERVE. To be eligible to be

appointed as or to serve as a director, a person must be:

(1) at least 18 years of age;

(2) a qualified voter; and

(3) a resident of the county governed by the

appointing commissioners court. (V.A.C.S. Art. 4477-7k, Sec.

3.02(a).)

Sec.21.105.VACANCY. A vacancy on the board shall be

filled in the same manner as the original appointment for the

unexpired term. (V.A.C.S. Art. 4477-7k, Sec. 3.04.)

Sec.21.106.DIRECTOR'S BOND. Each director must execute a

$5,000 bond with a corporate surety authorized to do business in

this state and conditioned on the faithful performance of the

director's duties. (V.A.C.S. Art. 4477-7k, Sec. 3.02(c) (part).)

Sec.21.107.TERM OF OFFICERS. A person selected as an

officer serves for a term of one year. (V.A.C.S. Art. 4477-7k, Sec.

3.06(b).)

Sec.21.108.BYLAWS. The board shall adopt bylaws. The

bylaws must prescribe the powers and duties of, and procedures for

removal from, a board office. (V.A.C.S. Art. 4477-7k, Sec. 3.06(d)

(part).)

Sec.21.109.BOARD MEETINGS. Except as otherwise provided

by law, the board shall meet at least one time each quarter and may

meet at any other time provided by its bylaws. (V.A.C.S. Art.

4477-7k, Sec. 3.07(a).)

Sec.21.110.COMPENSATION. (a) Unless the board by

resolution increases the rate of reimbursement to an amount

authorized by Section 49.060, Water Code, a director other than a

director described by Subsection (c) is entitled to receive $50 a

day and reimbursement for actual and necessary expenses incurred

for each day the director:

(1) attends a board meeting; and

(2) attends to the business of the district that is

authorized by board resolution or motion.

(b) A director is not entitled to receive a per diem

allowance for more than 60 days in a calendar year.

government officer is appointed as a director, the member's or

officer's service as a director is considered an additional duty of

the member's or officer's existing office. The member or officer is

not entitled to a per diem allowance under this section, but is

entitled to reimbursement for actual and necessary expenses

incurred in performing official duties as a director. (V.A.C.S.

Art. 4477-7k, Secs. 3.02(b), 3.10.)

Sec.21.111.CONFLICT OF INTEREST IN CONTRACT. A director

who is financially interested in a contract to be executed by the

district for the purchase of property or the construction of

facilities shall disclose that fact to the other directors and may

not vote on the acceptance of the contract. (V.A.C.S. Art. 4477-7k,

Sec. 3.09.)

[Sections 21.112-21.150 reserved for expansion]

SUBCHAPTER D. ADMINISTRATIVE POWERS AND DUTIES

Sec.21.151.PRINCIPAL OFFICE. The district shall maintain

its principal office in the district. (V.A.C.S. Art. 4477-7k, Sec.

3.13.)

Sec.21.152.GENERAL MANAGER. (a) The board shall employ a

general manager for a term and salary set by the board.

(b) The general manager is the chief executive officer of

the district. Under policies established by the board, the general

manager is responsible to the board for:

(1) administering board directives;

(2) keeping district records, including minutes of the

board's meetings;

(3) coordinating with state, federal, and local

agencies;

(4) developing plans and programs for the board's

approval;

(5) hiring, supervising, training, and discharging

district employees;

(6) contracting for or retaining technical,

scientific, legal, fiscal, and other professional services; and

(7) performing any other duty assigned to the general

manager by the board.

majority vote. (V.A.C.S. Art. 4477-7k, Sec. 3.11.)

Sec.21.153.EMPLOYEE AND GENERAL MANAGER FIDELITY BONDS.

(a) The general manager and each district employee charged with the

collection, custody, or payment of any district money shall execute

a fidelity bond. The board shall approve the form, amount, and

surety of the bond.

(b) The district shall pay the premiums on employee bonds

under this section. (V.A.C.S. Art. 4477-7k, Sec. 3.12.)

Sec.21.154.ATTORNEY. (a) The board may appoint an

attorney for the district.

(b) The person appointed under this section is entitled to

the compensation provided by the district's budget. (V.A.C.S. Art.

4477-7k, Secs. 3.08(a), (b).)

Sec.21.155.RECORDS; LIMIT ON DISCLOSURE. (a) The

district shall keep its accounts, contracts, documents, minutes,

and other records at its principal office.

(b) The board and its employees may not disclose a district

record that relates to trade secrets or the economics of an

industry's operations. (V.A.C.S. Art. 4477-7k, Secs. 3.14(c),

(d).)

[Sections 21.156-21.200 reserved for expansion]

SUBCHAPTER E. GENERAL POWERS AND DUTIES

Sec. 21.201. ADMINISTRATION, ENFORCEMENT, AND

ACCOMPLISHMENT OF CHAPTER. (a) The district shall:

(1) administer and enforce this chapter; and

(2) use district facilities and powers to accomplish

the purposes of this chapter.

(b) The district may advise, consult, contract, and

cooperate with the federal government, the state, a local

government, or a private entity to carry out any purpose or power

under this chapter. (V.A.C.S. Art. 4477-7k, Secs. 4.01(a), 4.03.)

Sec.21.202.CONSERVATION AND RECLAMATION DISTRICT POWERS.

Except as expressly limited by this chapter, the district has all

powers, rights, and privileges necessary and convenient for

accomplishing the purposes of this chapter that are conferred by

general law on a conservation and reclamation district created

under Section 59, Article XVI, Texas Constitution, including the

powers, rights, and privileges conferred by Subtitle B, Title 5,

Health and Safety Code, on a local or regional government.

(V.A.C.S. Art. 4477-7k, Sec. 4.01(g).)

Sec.21.203.RULES; HEARINGS. (a) The board, after notice

and hearing, may adopt rules necessary to carry out this chapter.

(b) The board shall adopt rules establishing procedures for

giving notice and holding a hearing. (V.A.C.S. Art. 4477-7k, Sec.

4.01(b).)

Sec.21.204.SCOPE OF DISTRICT'S REGULATORY POWER. The

regulatory powers of the district under this chapter apply to each

person in the district. (V.A.C.S. Art. 4477-7k, Sec. 4.01(f).)

Sec.21.205.PLANS. The district may prepare and adopt

plans for and may purchase, construct, acquire, own, operate,

maintain, repair, improve, and extend inside and outside district

boundaries any works, improvements, waste disposal, treatment, and

other facilities, plants, pipelines, equipment, and appliances

necessary to collect, transport, process, dispose of, and control

domestic, industrial, and communal waterborne and solid waste in

the district. (V.A.C.S. Art. 4477-7k, Sec. 4.01(c).)

Sec.21.206.STUDIES AND RESEARCH. The district shall:

(1) study and research the control of water pollution

and waste disposal in the district;

(2) cooperate with the commission in any study; and

(3) use the results of the studies. (V.A.C.S. Art.

4477-7k, Sec. 4.01(e).)

Sec. 21.207. COOPERATIVE AGREEMENTS WITH OTHER POLITICAL

SUBDIVISIONS. The district may enter into a cooperative agreement

with a local government or other political subdivision to:

(1) jointly conduct solid waste management

activities; and

(2) charge reasonable fees for solid waste management

activities. (V.A.C.S. Art. 4477-7k, Sec. 4.01(i).)

Sec.21.208.GIFTS, GRANTS, AND LOANS. The district may

apply for, accept, receive, and administer gifts, grants, loans,

and other money available from any source to carry out any purpose

or power under this chapter. (V.A.C.S. Art. 4477–7k, Sec. 4.02.)

Sec.21.209.ACQUISITION OF PROPERTY. The district may

acquire by gift, grant, devise, purchase, lease, or the exercise of

the power of eminent domain any land, easement, right-of-way, or

other property interest necessary to carry out the powers and

duties under this chapter. (V.A.C.S. Art. 4477–7k, Sec. 4.04.)

Sec.21.210.EMINENT DOMAIN; COST OF RELOCATING PROPERTY.

(a) The district may exercise the power of eminent domain to

acquire land for a purpose authorized by Section 21.205 if the board

determines, after notice and hearing, that it is necessary.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, but the

district is not required to:

(1) deposit in the trial court money or a bond as

provided by Section 21.021(a), Property Code;

(2) pay in advance or give bond or other security for

costs in the trial court;

(3) give bond for the issuance of a temporary

restraining order or a temporary injunction; or

(4) give bond for costs or supersedeas on an appeal or

writ of error.

domain, requires relocating, raising, lowering, rerouting,

changing the grade of, or altering the construction of any

railroad, highway, pipeline, or electric transmission and electric

distribution, telegraph, or telephone lines, conduits, poles, or

facilities, the district must bear the actual cost of relocating,

raising, lowering, rerouting, changing the grade of, or altering

the construction to provide comparable replacement without

enhancement of facilities, after deducting the net salvage value

derived from the old facility. (V.A.C.S. Art. 4477-7k, Sec. 4.05.)

Sec.21.211.ENTRY ON LAND. (a) A district director,

engineer, or employee may go on any land inside or outside the

district to survey and examine the land with reference to the

location of works, improvements, and waste disposal, treatment, and

other facilities, plants, pipelines, equipment, and appliances,

and to attend to district business.

(b) The director, engineer, or employee must give the

landowner five days' written notice before entering on the land.

the land or property, the district shall restore the land or

property as nearly as possible to its original state. The district

shall pay the restoration's cost. (V.A.C.S. Art. 4477-7k, Sec.

4.14.)

Sec.21.212.ROAD RIGHT-OF-WAY. A governmental entity

having jurisdiction over a right-of-way along and across a public

state or county road or highway may:

(1) designate the placement of district facilities

located on the right-of-way; and

(2) require the relocation of district facilities to

accommodate widening or changing traffic lanes. (V.A.C.S. Art.

4477-7k, Sec. 4.15(a) (part).)

Sec. 21.213. CONSENT FOR CHANGE OR DAMAGE TO STATE

PROPERTY. The district must obtain the written consent of the

governmental entity having control and jurisdiction over state

property, including a facility, before the district may proceed

with an action to change or damage the property. (V.A.C.S. Art.

4477-7k, Sec. 4.15(b).)

Sec. 21.214. BIDS ON CONTRACTS FOR PURCHASE OF VEHICLES,

EQUIPMENT, AND SUPPLIES OVER $15,000; EXCEPTION. (a) If the

estimated amount of a proposed contract to purchase vehicles,

equipment, or supplies is more than $15,000, the board shall ask for

competitive bids as provided by Subchapter B, Chapter 271, Local

Government Code.

(b) This section does not apply to:

(1) the purchase of property from a public agency; or

(2) a contract for personal or professional services.

(V.A.C.S. Art. 4477-7k, Sec. 4.13.)

[Sections 21.215-21.250 reserved for expansion]

SUBCHAPTER F. CONSTRUCTION, RENOVATION, AND REPAIR CONTRACTS

Sec. 21.251. AUTHORITY TO ENTER INTO CONSTRUCTION,

RENOVATION, AND REPAIR CONTRACTS. The district may contract with

any person to construct, renovate, repair, or make improvements to

any district works, improvements, waste disposal, treatment, or

other facilities, plants, pipelines, equipment, and appliances.

(V.A.C.S. Art. 4477-7k, Sec. 4.06.)

Sec.21.252.BIDS ON CONTRACTS OVER $15,000. The district

may enter into a contract under Section 21.251 that requires an

expenditure of more than $15,000 only after competitive bidding as

provided by Subchapter B, Chapter 271, Local Government Code.

(V.A.C.S. Art. 4477-7k, Sec. 4.07.)

Sec.21.253.CONTRACT SPECIFICATIONS, PLANS, AND DETAILS.

A contract under Section 21.251 must contain, or have attached to

it, the specifications, plans, and details for work included in the

contract. The work shall be done according to the plans and

specifications under the supervision of the district. (V.A.C.S.

Art. 4477-7k, Sec. 4.08.)

Sec.21.254.EXECUTION AND AVAILABILITY OF CONTRACTS. (a)

A contract under Section 21.251 must be in writing and signed by:

(1) the contractor; and

(2) a district representative designated by the board.

(b) The contract shall be kept in the district's office and

must be available for public inspection. (V.A.C.S. Art. 4477-7k,

Sec. 4.09.)

Sec.21.255.CONTRACTOR'S BOND. (a) A contractor shall

execute a bond:

(1) in an amount determined by the board, not to exceed

the contract price;

(2) payable to the district and approved by the board;

and

(3) conditioned on the faithful performance of the

contract.

(b) The bond must provide that a contractor pay to the

district all damages sustained as a result of the contractor's

default on the contract.

depository. A copy of the bond shall be kept in the district's

office. (V.A.C.S. Art. 4477-7k, Sec. 4.10.)

Sec.21.256.BOARD CONTROL AND DETERMINATION. (a) The

board has control of construction, renovation, or repairs being

done for the district under a contract under Section 21.251.

(b) The board shall determine whether the contract is being

fulfilled. (V.A.C.S. Art. 4477-7k, Sec. 4.11(a).)

Sec.21.257.INSPECTION OF WORK. (a) The board shall have

the work contracted for under Section 21.251 inspected by

engineers, inspectors, and personnel of the district.

(b) During the progress of the contracted work, the

engineers, inspectors, and personnel shall submit to the board

written reports that show whether the contractor is complying with

the contract.

inspectors, and personnel shall submit to the board a final

detailed written report that includes information necessary to show

whether the contractor has fully complied with the contract.

(V.A.C.S. Art. 4477-7k, Secs. 4.11(b), (c), (d).)

Sec.21.258.PAYMENTS FOR WORK. (a) The district shall pay

the contract price of a construction, renovation, or repair

contract in accordance with this section.

(b) The district shall make monthly progress payments under

a contract as the work proceeds or at more frequent intervals as

determined by the board.

the contractor, on the request of the board, shall furnish, in the

detail requested, an analysis of the total contract price showing

the amount included for each principal category of the work.

(d) In making progress payments, the board shall retain 10

percent of the estimated amounts until final completion and

acceptance of the contract work. The board may authorize any of the

remaining progress payments to be made in full if:

(1) the board finds that satisfactory progress is

being made; and

(2) at least 50 percent of the work has been completed.

(e) If the work under a contract is substantially complete

and the board finds the amount retained to be in excess of the

amount adequate for the protection of the district, the board may

release to the contractor all or part of the excess amount.

(f) On completion and acceptance of each separate project,

work, or other division of the contract on which the price is stated

separately in the contract, payment may be made without retention

of a percentage.

(g) When work is completed according to the contract, the

board shall draw a warrant on the depository to pay any balance due

on the contract. (V.A.C.S. Art. 4477-7k, Sec. 4.12.)

[Sections 21.259-21.300 reserved for expansion]

SUBCHAPTER G. WASTE DISPOSAL

Sec.21.301.ACQUISITION OF EXISTING FACILITIES. If the

district acquires existing works, improvements, and waste

disposal, treatment, and other facilities, plants, pipelines,

equipment, and appliances that are completed, partially completed,

or under construction, the district may:

(1) assume the contracts and obligations of the

previous owner; and

(2) perform the obligations of the previous owner in

the same manner and to the same extent that any other purchaser or

assignee would be bound. (V.A.C.S. Art. 4477-7k, Sec. 4.17.)

Sec.21.302.SOLID WASTE RECOVERY FACILITY. The district

may construct or acquire and operate a facility used to store,

handle, sort, bail, recycle, process, and recover solid waste.

(V.A.C.S. Art. 4477-7k, Secs. 1.03(11), 4.18.)

Sec.21.303.STANDARDS FOR SOLID WASTE HANDLING. (a) The

district shall establish minimum standards of operation for all

aspects of solid waste handling, including:

(1) storage;

(2) collection;

(3) incineration;

(4) recycling;

(5) sanitary landfill; and

(6) composting.

(b) Before establishing the standards, the district must:

(1) hold public hearings after giving public notice in

the time and manner prescribed by board rule;

(2) consult with the commission to ensure that the

standards are not inconsistent with established criteria; and

(3) find that the standards are reasonably necessary

to protect the public health or welfare from water pollution or

other harm to the environment.

same procedures required for establishing standards.

(d) The board may adopt rules reasonably necessary to

implement solid waste disposal standards. (V.A.C.S. Art. 4477-7k,

Secs. 4.19(a), (b), (c), (d).)

Sec.21.304.MANAGEMENT OF MUNICIPAL SOLID WASTE. (a) The

district may assume the exclusive authority to exercise the powers

granted to a county under Section 361.165, Health and Safety Code,

including the power to issue licenses and exercise municipal solid

waste management authority.

(b) If the district exercises the licensing authority

granted under this section, the district must adopt and enforce

rules for the management of municipal solid waste.

(1) compatible with and at least as stringent as those

of the commission; and

(2) approved by the commission. (V.A.C.S. Art.

4477-7k, Sec. 4.19(e).)

Sec.21.305.ON-SITE SEWAGE DISPOSAL SYSTEMS. (a) The

district may apply to the commission for designation as an

authorized agent to implement and enforce on-site sewage disposal

rules under Chapter 366, Health and Safety Code.

(b) If the district finds that due to the nature of the soil

or drainage in the area it is necessary to prevent water pollution

that may injure the public health, the board by rule may:

(1) provide limits on the number and kind of septic

tanks in an area defined by the rule;

(2) prohibit the use of septic tanks in the area; or

(3) prohibit the installation of new septic tanks in

the area.

adoption of a rule under Subsection (b).

(d) The board may not adopt a rule under Subsection (b)

without first holding a public hearing in the area to be affected by

the rule.

(e) The board by order may provide for a gradual and

systematic reduction of the number or kind of septic tanks in the

area and, by rule, may provide for a system to license and issue

permits for the installation of new septic tanks in the area

affected. If the board adopts a license and permit system, a person

may not install a septic tank in the area without a license or

permit from the board. (V.A.C.S. Art. 4477-7k, Sec. 4.20.)

Sec. 21.306. ACQUISITION, CONSTRUCTION, AND OPERATION OF

DISPOSAL SYSTEMS. The district may:

(1) acquire and provide by purchase, gift, or lease a

disposal system in the district or in a county adjacent to the

district;

(2) construct and provide a disposal system in the

district or in a county adjacent to the district;

(3) operate or sell a disposal system that it

constructs or acquires;

(4) contract with a person to operate and maintain a

disposal system belonging to the person; and

(5) contract with a person to train or supervise

employees of a disposal system. (V.A.C.S. Art. 4477-7k, Secs.

1.03(9), 4.21.)

Sec.21.307.WASTE DISPOSAL CONTRACTS. (a) The district

may contract to receive and to treat or dispose of waste from a

person in the district.

(b) The district shall set fees in the contract after

considering:

(1) the quality of the waste;

(2) the quantity of the waste;

(3) the difficulty encountered in treating or

disposing of the waste;

(4) operation and maintenance expenses and debt

retirement services; and

(5) any other reasonable consideration. (V.A.C.S.

Art. 4477-7k, Sec. 4.22.)

[Sections 21.308-21.350 reserved for expansion]

SUBCHAPTER H. GENERAL FINANCIAL PROVISIONS

Sec.21.351.ACCOUNTING. The district shall keep complete

and accurate accounts of its business transactions in accordance

with generally accepted methods of accounting. (V.A.C.S. Art.

4477-7k, Sec. 3.14(a).)

Sec.21.352.ANNUAL BUDGET. (a) The district's annual

budget must contain a complete financial statement, including a

statement of:

(1) the outstanding district obligations;

(2) the amount of cash on hand to the credit of each

district fund;

(3) the amount of money received by the district from

all sources during the previous year;

(4) the amount of money available to the district from

all sources during the ensuing year;

(5) the amount of the balances expected at the end of

the year in which the budget is being prepared;

(6) the estimated amount of revenue and balances

available to cover the proposed budget; and

(7) the estimated tax rate that will be required.

(b) The board may amend the budget after adoption.

included in the annual budget or an amendment to it unless the board

by order declares the expense to be necessary. (V.A.C.S. Art.

4477-7k, Secs. 5.03(b), 5.04, 5.05.)

Sec. 21.353. SWORN STATEMENT REGARDING MONEY AND

DISBURSEMENTS. As soon as practicable after the close of the fiscal

year, the district treasurer shall prepare for the board a sworn

statement of:

(1) the amount of money that belongs to the district;

and

(2) an account of the disbursement of that money.

(V.A.C.S. Art. 4477-7k, Sec. 5.06.)

Sec.21.354.DEPOSITORY. (a) The board shall name one or

more banks to serve as depository for the district's money.

(b) District money, other than money transmitted to a bank

for payment of bonds issued by the district, shall be deposited as

received with the depository bank and shall remain on deposit.

amount that exceeds the maximum amount secured by the Federal

Deposit Insurance Corporation, the bank must execute a bond or

provide other security in an amount sufficient to secure from loss

the amount of the district's deposits that exceed the amount

secured by the Federal Deposit Insurance Corporation.

(d) This section does not limit the board's power to invest

the district's money as provided by Subchapter A, Chapter 2256,

Government Code. (V.A.C.S. Art. 4477-7k, Sec. 5.07.)

Sec.21.355.INVESTMENTS. (a) The board may place district

money in a certificate of deposit of a state or national bank or a

state or federal savings and loan association in this state if the

money is secured in the manner required for the security of county

funds.

(b) The board by resolution may provide that an authorized

representative may invest and reinvest district money and provide

for money to be withdrawn from the appropriate district accounts

for investments on terms the board considers advisable. (V.A.C.S.

Art. 4477-7k, Secs. 5.08(b), (c).)

Sec.21.356.PAYMENT OF EXPENSES. (a) The board may pay:

(1) costs and expenses necessarily incurred in the

district's operation;

(2) legal fees; and

(3) other incidental expenses.

(b) The board may reimburse a person for money advanced for

a payment described by Subsection (a).

bonds, taxes, or fees or from other district revenue. (V.A.C.S.

Art. 4477-7k, Sec. 5.09.)

Sec.21.357.BORROWING MONEY. The district may borrow

money for any purpose authorized by this chapter. (V.A.C.S. Art.

4477-7k, Sec. 5.10.)

Sec.21.358.PAYMENT OF JUDGMENTS. A court of this state

that renders a money judgment against the district may require the

board to pay the judgment from money in the district depository that

is not dedicated to the payment of any district debt. (V.A.C.S. Art.

4477-7k, Sec. 3.17(c).)

[Sections 21.359-21.400 reserved for expansion]

SUBCHAPTER I. BONDS

Sec.21.401.AUTHORITY TO ISSUE BONDS. The board may issue

and sell bonds in the district's name to acquire land and construct

works, improvements, and waste disposal, treatment, and other

facilities, plants, pipelines, equipment, and appliances as

provided by this chapter. (V.A.C.S. Art. 4477-7k, Sec. 6.01.)

Sec.21.402.BOND PAYMENT. The board may provide for the

payment of the principal of and interest on the bonds:

(1) from the imposition of property taxes on all

taxable property in the district;

(2) by pledging all or part of the designated revenue

from the ownership or operation of the district's works,

improvements, and facilities; or

(3) from a combination of the sources listed by

Subdivisions (1) and (2). (V.A.C.S. Art. 4477-7k, Sec. 6.02.)

Sec.21.403.BOND ELECTION. (a) The district may not issue

bonds until the issuance is approved by a majority of voters voting

in the district at an election held for that purpose.

(b) The board may order a bond election. The order calling

the election must state:

(1) the hours during which the polls will be open;

(2) the location of the polling places;

(3) the amount of bonds to be authorized; and

(4) the maximum maturity of the bonds.

printed to provide for voting for or against the issuance of bonds

and the imposition of property taxes for payment of the bonds.

(d) If a majority of the votes cast at the election favor the

issuance of the bonds, the bonds may be issued by the board. If a

majority of the votes cast at the election do not favor issuance of

the bonds, the bonds may not be issued. (V.A.C.S. Art. 4477-7k,

Secs. 6.03(a), (b), (d), (e) (part).)

Sec.21.404.MATURITY OF BONDS. District bonds may mature

not more than 50 years after the date of issuance. (V.A.C.S. Art.

4477-7k, Sec. 6.04(b) (part).)

Sec.21.405.SIGNATURE. District bonds must be signed and

executed as provided by the board in the resolution or order

authorizing the bonds. (V.A.C.S. Art. 4477-7k, Sec. 6.04(d)

(part).)

Sec.21.406.BOND PROVISIONS. (a) In an order or

resolution authorizing the issuance of bonds, including refunding

bonds, the board may:

(1) provide for the flow of money;

(2) provide for the establishment and maintenance of

an interest and sinking fund, a reserve fund, and other funds; and

(3) prohibit the further issuance of bonds or other

obligations payable from the pledged fees or reserve the right to

issue additional bonds to be secured by a pledge of and payable from

the pledged fees on a parity with or subordinate to the pledge in

support of the bonds being issued; and

(4) provide for other provisions as the board

determines.

(b) The board may adopt and have executed any other

proceeding or instrument necessary and convenient in the issuance

of bonds. (V.A.C.S. Art. 4477-7k, Sec. 6.05.)

Sec.21.407.MANDAMUS BY BONDHOLDERS. A holder of a

district bond is entitled, in addition to any other right or remedy

provided by law, to a writ of mandamus requiring the district and

its officials to observe and perform any covenant, condition, or

obligation provided by the order or resolution authorizing issuance

of the bond that the district fails to observe or perform,

including:

(1) a default in the payment of principal, interest,

or redemption price on the bond when due; and

(2) a failure to make payment into any fund created in

the order or resolution. (V.A.C.S. Art. 4477-7k, Sec. 6.09.)

Sec.21.408.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 the bonds to be refunded; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (V.A.C.S.

Art. 4477-7k, Secs. 6.07(a), (c) (part).)

Sec.21.409.TAX EXEMPTION. District bonds, transactions

relating to the bonds, and profits made in the sale of the bonds are

exempt from state taxation or taxation by a municipality, county,

special district, or other political subdivision of the state.

(V.A.C.S. Art. 4477-7k, Sec. 7.01 (part).)

[Sections 21.410-21.450 reserved for expansion]

SUBCHAPTER J. TAXES

Sec.21.451.AUTHORITY TO IMPOSE PROPERTY TAXES. The board

annually may impose a tax on all property in the district subject to

district taxation. (V.A.C.S. Art. 4477-7k, Secs. 7.02(a) (part),

7.03(b).)

Sec.21.452.AMOUNT OF TAX. (a) The amount of tax imposed

by the board must be in an amount necessary to pay:

(1) the principal of and interest on district bonds;

and

(2) the expense of assessing and collecting taxes.

(b) The district may impose a maintenance and operating tax

in an amount not to exceed three cents on each $100 of assessed

valuation of property in the district to pay the district's

maintenance and operating expenses. (V.A.C.S. Art. 4477-7k, Sec.

7.02 (part).)

Sec.21.453.TAX RATE. In setting the tax rate, the board

shall take into consideration the income of the district from

sources other than taxation. (V.A.C.S. Art. 4477-7k, Sec. 7.04

(part).)

Sec.21.454.TAX COLLECTOR. The board may:

(1) provide for the appointment of a tax collector for

the district; or

(2) contract for the collection of taxes as provided

by the Tax Code. (V.A.C.S. Art. 4477-7k, Sec. 7.05(b).)

SECTION 1.02. Subtitle A, Title 3, Special District Local

Laws Code, is amended by adding Chapters 1007, 1010, 1012, 1013,

1014, 1015, 1016, 1017, 1018, 1019, 1020, 1021, 1022, 1023, 1024,

1025, 1026, 1027, 1028, 1029, 1030, 1031, 1032, 1033, 1036, 1037,

1038, 1039, 1040, 1041, 1042, 1043, 1044, 1045, 1046, 1047, 1048,

1049, 1050, 1051, 1052, 1053, 1054, 1055, 1057, 1059, 1060, 1062,

1065, 1066, 1068, 1070, and 1071 to read as follows:

CHAPTER 1007. BIG BEND REGIONAL HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1007.001. DEFINITIONS

Sec. 1007.002. AUTHORITY FOR CREATION

Sec. 1007.003. DISTRICT TERRITORY

Sec. 1007.004. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1007.005. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1007.006-1007.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1007.051. BOARD ELECTION; TERM

Sec. 1007.052. NOTICE OF ELECTION

Sec. 1007.053. QUALIFICATIONS FOR OFFICE

Sec. 1007.054. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE

Sec. 1007.055. OFFICERS

Sec. 1007.056. COMPENSATION; EXPENSES

Sec. 1007.057. DISTRICT ADMINISTRATOR

Sec. 1007.058. EMPLOYEES

Sec. 1007.059. RETIREMENT BENEFITS

Sec. 1007.060. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

[Sections 1007.061-1007.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1007.101. DISTRICT RESPONSIBILITY

Sec. 1007.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1007.103. MEDICAL SERVICES FOR PRESIDIO COUNTY

Sec. 1007.104. MANAGEMENT AND CONTROL OF DISTRICT

Sec. 1007.105. HOSPITAL SYSTEM

Sec. 1007.106. RULES

Sec. 1007.107. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1007.108. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1007.109. SURPLUS PROPERTY

Sec. 1007.110. EMINENT DOMAIN

Sec. 1007.111. GIFTS AND ENDOWMENTS

Sec. 1007.112. CONTRACTS WITH POLITICAL SUBDIVISIONS

FOR HOSPITAL AND MEDICAL CARE

Sec. 1007.113. PAYMENT FOR TREATMENT; PROCEDURE

[Sections 1007.114-1007.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1007.151. BUDGET

Sec. 1007.152. PROPOSED BUDGET: NOTICE AND HEARING

Sec. 1007.153. FISCAL YEAR

Sec. 1007.154. ANNUAL AUDIT

Sec. 1007.155. DEPOSITORY

[Sections 1007.156-1007.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1007.201. BONDS

Sec. 1007.202. TAX TO PAY BONDS

Sec. 1007.203. BOND ELECTION

Sec. 1007.204. MATURITY OF BONDS

Sec. 1007.205. EXECUTION OF BONDS

[Sections 1007.206-1007.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1007.251. IMPOSITION OF AD VALOREM TAX

Sec. 1007.252. TAX RATE

Sec. 1007.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1007. BIG BEND REGIONAL HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1007.001.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 Big Bend Regional Hospital

District. (New.)

Sec.1007.002.AUTHORITY FOR CREATION. The district is

created under Section 9, Article IX, Texas Constitution. (Acts

59th Leg., R.S., Ch. 643, Sec. 1.)

Sec.1007.003.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of:

(1) Presidio County, including all "cut over" or

"banco" land on the north side of the Rio Grande; and

(2) Brewster County. (Acts 59th Leg., R.S., Ch. 643,

Secs. 2(a), 2A(h) (part).)

Sec. 1007.004. 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 59th Leg., R.S., Ch. 643, Sec. 18 (part).)

Sec.1007.005.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. 643, Sec. 18 (part).)

[Sections 1007.006-1007.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1007.051.BOARD ELECTION; TERM. (a) The board

consists of five directors elected from single-member voting

subdistricts established by the board.

(b) The board shall revise each single-member subdistrict

after each federal decennial census to reflect population changes.

At the first election after the subdistricts are revised, a new

director shall be elected from each subdistrict. The directors

shall draw lots to determine which two directors shall serve

two-year terms and which three directors shall serve four-year

terms.

(d) An election shall be held on the uniform election date

in May of each even-numbered year to elect the appropriate number of

directors. (Acts 59th Leg., R.S., Ch. 643, Secs. 2B(c) (part),

2C(c), (g), 7(b) (part).)

Sec.1007.052.NOTICE OF ELECTION. At least 35 days before

the date of an election of directors, notice of the election must be

published one time in a newspaper with general circulation in the

district. (Acts 59th Leg., R.S., Ch. 643, Sec. 7(c), as added by

Acts 72nd Leg., R.S., Ch. 89.)

Sec.1007.053.QUALIFICATIONS FOR OFFICE. (a) A person may

not be a candidate for or serve as a director unless the person is:

(1) a district resident; and

(2) a qualified voter.

(b) A person is not eligible to serve as a director if the

person is:

(1) a district employee;

(2) a party to a contract with the district to perform

services for compensation; or

(3) a physician who has staff privileges at a district

facility.

or who is appointed to fill a vacancy for a single-member

subdistrict must reside in that subdistrict. (Acts 59th Leg.,

R.S., Ch. 643, Secs. 2C(h) (part), 7B(a), (c).)

Sec. 1007.054. BOND; RECORD OF BOND AND OATH OR AFFIRMATION

OF OFFICE. (a) Each director shall qualify for office by executing

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

director's duties.

(b) The district shall pay for the directors' bonds.

affirmation of office shall be deposited in the district depository

for safekeeping. (Acts 59th Leg., R.S., Ch. 643, Sec. 8(a).)

Sec.1007.055.OFFICERS. The board shall elect from among

its members a president, secretary, and treasurer at the first

meeting of the board after each directors' election. (Acts 59th

Leg., R.S., Ch. 643, Sec. 8(b).)

Sec.1007.056.COMPENSATION; EXPENSES. A director serves

without compensation but is entitled to reimbursement for necessary

expenses incurred in the performance of official duties. (Acts 59th

Leg., R.S., Ch. 643, Sec. 8(c).)

Sec.1007.057.DISTRICT ADMINISTRATOR. (a) The board may

employ a district administrator to manage the operations of the

hospital system.

(b) The district administrator may employ necessary

personnel to perform the services provided by the system. (Acts

59th Leg., R.S., Ch. 643, Sec. 12(e) (part).)

Sec.1007.058.EMPLOYEES. The board may employ an attorney,

general manager, bookkeeper, architect, and other employees

necessary for the efficient operation of the district. (Acts 59th

Leg., R.S., Ch. 643, Sec. 12(e) (part).)

Sec.1007.059.RETIREMENT BENEFITS. The board may enter

into any contract or agreement with this state or the federal

government that is required to establish or continue a retirement

program for the benefit of the district's employees. (Acts 59th

Leg., R.S., Ch. 643, Sec. 12(h).)

Sec.1007.060.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

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 59th Leg., R.S., Ch. 643, Sec. 12(b).)

[Sections 1007.061-1007.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1007.101.DISTRICT RESPONSIBILITY. The district shall

provide all necessary hospital and medical care for the district's

needy inhabitants. (Acts 59th Leg., R.S., Ch. 643, Sec. 3 (part).)

Sec. 1007.102. 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 59th Leg., R.S., Ch. 643, Sec. 3 (part).)

Sec.1007.103.MEDICAL SERVICES FOR PRESIDIO COUNTY. (a)

The board shall periodically review the feasibility and

desirability of operating a hospital in Presidio County.

(b) The district shall operate a facility that provides

medical services in Presidio County. At a minimum, the facility

must provide outpatient medical services to the district's

residents.

another entity to provide the services required by Subsection (b).

(Acts 59th Leg., R.S., Ch. 643, Secs. 2E(b) (part), 2F(a) (part),

(b).)

Sec.1007.104.MANAGEMENT AND CONTROL OF DISTRICT. The

management and control of the district is vested in the board, and

the board has full power to manage and control the district. (Acts

59th Leg., R.S., Ch. 643, Secs. 2E(a) (part), 12(a) (part).)

Sec.1007.105.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 59th Leg., R.S., Ch. 643, Sec. 3

(part).)

Sec.1007.106.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 59th Leg., R.S., Ch. 643, Sec. 12(c).)

Sec.1007.107.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 59th Leg., R.S., Ch. 643, Sec. 12(e) (part).)

Sec. 1007.108. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. The board may sell, lease, or otherwise dispose of

property, including facilities or equipment, for the district. The

sale or other disposal must be at a public sale and at a price and on

terms the board determines are most advantageous to the district.

(Acts 59th Leg., R.S., Ch. 643, Sec. 12(i).)

Sec.1007.109.SURPLUS PROPERTY. 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

59th Leg., R.S., Ch. 643, Sec. 12(j).)

Sec.1007.110.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in any real, personal, or mixed property located in

district territory if the interest is necessary or convenient for

the district to exercise a power or duty 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.

required to:

(1) pay in advance or provide a bond or other security

for costs in the trial court; or

(2) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 59th Leg., R.S., Ch. 643, Sec.

15.)

Sec.1007.111.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust and

administered by the board under the directions, limitations, or

other provisions prescribed in writing by the donor that are not

inconsistent with the proper management of the district. (Acts

59th Leg., R.S., Ch. 643, Sec. 12(f).)

Sec. 1007.112. CONTRACTS WITH POLITICAL SUBDIVISIONS FOR

HOSPITAL AND MEDICAL CARE. The board may contract with another

political subdivision to provide hospital and medical care for

needy persons who reside outside the district. (Acts 59th Leg.,

R.S., Ch. 643, Sec. 12(g).)

Sec.1007.113.PAYMENT FOR TREATMENT; PROCEDURE. (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.

(b) The board by rule shall adopt a procedure for

determining:

(1) the ability of a patient to pay for the patient's

medical and hospital care; and

(2) the amount each patient is required to pay. (Acts

59th Leg., R.S., Ch. 643, Sec. 14.)

[Sections 1007.114-1007.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1007.151.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 59th Leg., R.S., Ch. 643, Sec. 13(b).)

Sec.1007.152.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.

has 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 59th Leg., R.S., Ch. 643, Secs. 13(c), (d).)

Sec.1007.153.FISCAL YEAR. The district's fiscal year is

from October 1 to September 30. (Acts 59th Leg., R.S., Ch. 643,

Sec. 13(a).)

Sec.1007.154.ANNUAL AUDIT. (a) The board annually shall

require an independent audit of the district's books and records.

(b) Not later than December 1 each year, the board shall

file a copy of the audit with:

(1) the comptroller; and

(2) the district. (Acts 59th Leg., R.S., Ch. 643, Sec.

12(d).)

Sec.1007.155.DEPOSITORY. (a) The board by resolution

shall designate a bank in Brewster or Presidio County as the

district's depository. The 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

59th Leg., R.S., Ch. 643, Sec. 16.)

[Sections 1007.156-1007.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1007.201.BONDS. The district may issue bonds to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements; and

(2) equip buildings for hospital purposes. (Acts 59th

Leg., R.S., Ch. 643, Secs. 10(a) (part), 11(a) (part).)

Sec.1007.202.TAX TO PAY BONDS. The board may issue bonds

under Section 1007.201 only if the board imposes 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.

(Acts 59th Leg., R.S., Ch. 643, Sec. 11(c).)

Sec.1007.203.BOND ELECTION. (a) The board may issue

bonds under Section 1007.201 only if the bonds are authorized by a

majority of the district voters voting in an election held for that

purpose. The total face value of the bonds may not exceed the

amount specified in the election order.

(b) The board may order a bond election at any time.

(1) the time of the election;

(2) the location of the polling places;

(3) the form of the ballots;

(4) the presiding judge for each polling place;

(5) the purpose of the bond issuance;

(6) the amount of the proposed bond issuance;

(7) the maximum interest rate of the bonds; and

(8) the maximum maturity of the bonds.

(d) A substantial copy of the election order shall be

published 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 not later than the

14th day immediately preceding the day of the election.

(e) A copy of the election results must be filed with the

county clerk and become a public record. (Acts 59th Leg., R.S., Ch.

643, Secs. 4(c), (d), (e) (part), 10(a) (part), (b), (d), 11(a)

(part).)

Sec.1007.204.MATURITY OF BONDS. District bonds must

mature not later than 40 years after the date of issuance. (Acts

59th Leg., R.S., Ch. 643, Sec. 10(c) (part).)

Sec.1007.205.EXECUTION OF BONDS. (a) The board president

shall execute the bonds in the district's name.

(b) The board secretary shall countersign the bonds. (Acts

59th Leg., R.S., Ch. 643, Sec. 11(b) (part).)

[Sections 1007.206-1007.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1007.251.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 may be used only to:

(1) pay the interest on and create a sinking fund for

bonds issued under this chapter;

(2) provide for the operation and maintenance of the

district and hospital system;

(3) make improvements and additions to the hospital

system; and

(4) acquire sites for additions to the hospital

system. (Acts 59th Leg., R.S., Ch. 643, Secs. 9(a) (part), (c).)

Sec.1007.252.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 59th Leg., R.S., Ch. 643, Sec. 9(a)

(part).)

Sec.1007.253.TAX ASSESSOR-COLLECTOR. The tax

assessor-collector for Brewster or Presidio County shall collect

taxes for the district. (Acts 59th Leg., R.S., Ch. 643, Sec. 9(d)

(part).)

CHAPTER 1010. BURLESON COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1010.001. DEFINITIONS

Sec. 1010.002. AUTHORITY FOR OPERATION

Sec. 1010.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1010.004. DISTRICT TERRITORY

Sec. 1010.005. CORRECTION OF INVALID PROCEDURES

[Sections 1010.006-1010.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1010.051. BOARD ELECTION; TERM

Sec. 1010.052. QUALIFICATIONS FOR OFFICE

Sec. 1010.053. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE

Sec. 1010.054. BOARD VACANCY

Sec. 1010.055. OFFICERS

Sec. 1010.056. COMPENSATION; EXPENSES

Sec. 1010.057. VOTING REQUIREMENT

Sec. 1010.058. MEETINGS

Sec. 1010.059. PERSONNEL

Sec. 1010.060. DUTIES OF MANAGER

Sec. 1010.061. RETIREMENT, DISABILITY, AND DEATH

COMPENSATION FUND

Sec. 1010.062. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

Sec. 1010.063. SEAL

[Sections 1010.064-1010.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1010.101. DISTRICT RESPONSIBILITY

Sec. 1010.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1010.103. MANAGEMENT AND CONTROL

Sec. 1010.104. HOSPITAL SYSTEM

Sec. 1010.105. DISTRICT ELECTIONS

Sec. 1010.106. BYLAWS

Sec. 1010.107. EMINENT DOMAIN

Sec. 1010.108. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 1010.109. GIFTS AND ENDOWMENTS

Sec. 1010.110. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1010.111. CONTRACT IN NAME OF DISTRICT

Sec. 1010.112. CONTRACTS FOR CARE AND TRAINING

Sec. 1010.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1010.114. MISCELLANEOUS CONTRACT REQUIREMENTS

Sec. 1010.115. LEASES

Sec. 1010.116. PURCHASING

Sec. 1010.117. DISPOSITION OF PROPERTY

Sec. 1010.118. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1010.119. REIMBURSEMENT FOR SERVICES TO

NONRESIDENTS

Sec. 1010.120. AUTHORITY TO SUE AND BE SUED; SERVICE

OF PROCESS

[Sections 1010.121-1010.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1010.151. BUDGET

Sec. 1010.152. AMENDMENTS TO BUDGET

Sec. 1010.153. FISCAL YEAR

Sec. 1010.154. ANNUAL AUDIT

Sec. 1010.155. DEPOSITORY

Sec. 1010.156. INVESTMENT OF DISTRICT MONEY

[Sections 1010.157-1010.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1010.201. GENERAL OBLIGATION BONDS

Sec. 1010.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1010.203. REVENUE AND SPECIAL OBLIGATION BONDS

Sec. 1010.204. BOND ELECTION

Sec. 1010.205. MATURITY OF BONDS

Sec. 1010.206. EXECUTION OF BONDS

Sec. 1010.207. BONDS EXEMPT FROM TAXATION

Sec. 1010.208. REFUNDING OR FUNDING AND RETIRING

CERTAIN OLDER BONDS

[Sections 1010.209-1010.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1010.251. TAX ELECTION

Sec. 1010.252. IMPOSITION OF AD VALOREM TAX

Sec. 1010.253. TAX RATE

Sec. 1010.254. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR

Sec. 1010.255. ASSESSMENT AND COLLECTION BY DISTRICT

TAX ASSESSOR-COLLECTOR

Sec. 1010.256. ASSESSMENT AND COLLECTION BY TAX

ASSESSOR-COLLECTOR OF ANOTHER

POLITICAL SUBDIVISION

CHAPTER 1010. BURLESON COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1010.001.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 Burleson County Hospital

District. (Acts 65th Leg., R.S., Ch. 726, Secs. 1 (part), 5(a)

(part); New.)

Sec.1010.002.AUTHORITY FOR OPERATION. The district

operates under and has the rights, powers, and duties provided by

Section 9, Article IX, Texas Constitution, and this chapter. (Acts

65th Leg., R.S., Ch. 726, Secs. 1 (part), 3.)

Sec.1010.003.ESSENTIAL PUBLIC FUNCTION. The district is

a governmental agency performing an essential public function in

carrying out the purposes of this chapter. (Acts 65th Leg., R.S.,

Ch. 726, Secs. 13 (part), 30 (part).)

Sec.1010.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Burleson County.

(Acts 65th Leg., R.S., Ch. 726, Sec. 2.)

Sec.1010.005.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 board by

resolution or order may provide an alternative procedure that

conforms with the constitution. (Acts 65th Leg., R.S., Ch. 726,

Sec. 31 (part).)

[Sections 1010.006-1010.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1010.051.BOARD ELECTION; TERM. (a) The district is

governed by a board of 11 elected directors.

(b) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve two-year terms; and

(2) the terms of the five directors elected to

even-numbered places expire in even-numbered years and the terms of

the six directors elected to odd-numbered places expire in

odd-numbered years. (Acts 65th Leg., R.S., Ch. 726, Sec. 8 (part).)

Sec.1010.052.QUALIFICATIONS FOR OFFICE. To serve as a

director, a person must be:

(1) at least 21 years of age; and

(2) a qualified voter of the district. (Acts 65th

Leg., R.S., Ch. 726, Sec. 8 (part).)

Sec. 1010.053. BOND; RECORD OF BOND AND OATH OR AFFIRMATION

OF OFFICE. (a) As soon as practicable after a director is elected

or appointed, the director shall execute a bond for $5,000 that is:

(1) approved by the board;

(2) payable to the district; and

(3) conditioned on the faithful performance of the

director's duties.

(b) Each director's bond and constitutional oath or

affirmation of office shall be filed with the district and retained

in the district's records. (Acts 65th Leg., R.S., Ch. 726, Secs.

12(h), (i), (k).)

Sec.1010.054.BOARD VACANCY. If a vacancy occurs in the

office of director, the board shall promptly appoint a director for

the unexpired term. (Acts 65th Leg., R.S., Ch. 726, Sec. 8 (part).)

Sec.1010.055.OFFICERS. (a) The board shall elect from

its membership a president, a vice president, a secretary, a

treasurer, and any other officers the board considers necessary.

The district's depository bank may be designated as district

treasurer.

(b) The president is the district's chief executive officer

and shall preside at all board meetings. The vice president shall

act as president if the president is absent or disabled.

(1) act as president if both the president and vice

president are absent or disabled;

(2) act as secretary of the board; and

(3) see that all district records and books are

properly kept.

(d) The board may appoint an assistant or deputy secretary

to assist the secretary. The assistant or deputy secretary may

certify the authenticity of any district record, including any

proceeding related to district contracts or bonds or other

indebtedness.

(e) The board may require an officer to execute a bond that

is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

officer's duties.

(f) If a vacancy occurs in an office, the board shall

appoint a replacement for the unexpired term. (Acts 65th Leg.,

R.S., Ch. 726, Secs. 5(b), 8 (part), 9(b), (c), (d), 12(d) (part).)

Sec.1010.056.COMPENSATION; EXPENSES. A director serves

without compensation but may be reimbursed for travel or other

expenses incurred on the district's behalf if:

(1) the director presents a verified statement; and

(2) the board approves the expenses. (Acts 65th Leg.,

R.S., Ch. 726, Sec. 12(g).)

Sec.1010.057.VOTING REQUIREMENT. A concurrence of six

directors is sufficient in any matter relating to district

business. (Acts 65th Leg., R.S., Ch. 726, Sec. 9(a) (part).)

Sec.1010.058.MEETINGS. (a) The board:

(1) shall hold the board's meetings at the board's

designated meeting place;

(2) may establish a schedule of regular meetings to

conduct district business; and

(3) may hold special meetings at other times as

district business requires.

(b) Except as provided by this section, Chapter 551,

Government Code, applies to board meetings.

posting of notice of a board meeting is not required.

(d) Failure to post notice does not affect the validity of

an action taken at a regular board meeting. Failure to post notice

may affect the validity of an action taken at a special meeting

unless the board declares, by an action taken at the special

meeting, that an emergency exists.

(e) Any interested person may attend a board meeting. (Acts

65th Leg., R.S., Ch. 726, Sec. 11 (part).)

Sec.1010.059.PERSONNEL. (a) The board shall employ or

contract with all persons the board considers necessary or

advisable to conduct district affairs, including doctors, nurses,

medical technicians, engineers, architects, attorneys, financial

advisors, a hospital administrator, bookkeepers, auditors, and

secretaries.

(b) The board shall determine the powers, duties, terms of

office, and compensation of all employees and consultants by

contract or by resolution or order of the board. The board may

delegate to any district employee any power that the board

considers advisable.

(d) The board may require an employee to execute a bond

payable to the district and conditioned on the faithful performance

of the employee's duties. (Acts 65th Leg., R.S., Ch. 726, Secs.

12(a) (part), (b), (c), (d) (part).)

Sec.1010.060.DUTIES OF MANAGER. The district may

delegate to the manager the power to:

(1) manage and operate the district hospital or

hospital system or a portion of the district hospital or hospital

system; and

(2) employ and discharge employees or appoint and

remove doctors from the staff. (Acts 65th Leg., R.S., Ch. 726, Sec.

15(b) (part).)

Sec. 1010.061. RETIREMENT, DISABILITY, AND DEATH

COMPENSATION FUND. (a) The board may:

(1) provide for and administer a retirement,

disability, and death compensation fund for district officers and

employees; and

(2) adopt a plan to effectuate the purpose of this

section, including the forms of insurance and annuities that the

board considers advisable.

(b) The board may change a plan or rule after notice to the

employees and a hearing.

money provided:

(1) from the compensation of officers and employees

participating in the fund and plan authorized by this section; and

(2) by the district for the retirement, disability,

and death compensation fund after the money has been received by the

district.

(d) The board may invest the money in:

(1) bonds of the United States, this state, or any

political subdivision of this state;

(2) bonds issued by any agency of the United States if

the payment of the principal and interest is guaranteed by the

United States; and

(3) life insurance policies, endowment or annuity

contracts, or interest-bearing certificates of legal reserve life

insurance companies authorized to write the contracts in this

state.

(e) A sufficient amount of money shall be kept on hand to

meet the immediate payment of amounts likely to become due each year

out of the fund as determined by the board.

(f) The recipients or beneficiaries of the fund are not

eligible for any other pension, retirement fund, or direct aid from

this state unless the fund created under this chapter is released to

the state as a condition precedent to receiving the other pension or

aid or the joining of any other system.

(g) The board may:

(1) include hospitalization and medical benefits to

district officers and employees as part of the compensation

currently paid to the officers and employees;

(2) adopt a plan or rule in connection with the

benefits provided under Subdivision (1); or

(3) amend or change a plan or rule adopted under

Subdivision (2) as the board determines.

(h) The board may contract with the state and federal

governments as necessary to establish and continue a retirement

program for the benefit of the district's employees. (Acts 65th

Leg., R.S., Ch. 726, Secs. 16(a), (b), (c), (d), (e), (g).)

Sec.1010.062.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

(a) The district shall maintain records and accounts in which full

and proper entries are made of:

(1) all dealings, transactions, and business matters

that in any way affect or relate to the district; and

(2) the allocation and application of all revenue

relating to the dealings, transactions, and business matters.

(b) The district records, including the audit report, shall

be available for public inspection at reasonable hours and under

reasonable circumstances. (Acts 65th Leg., R.S., Ch. 726, Sec. 17

(part).)

Sec.1010.063.SEAL. The board shall adopt a seal for the

district. (Acts 65th Leg., R.S., Ch. 726, Sec. 12(f).)

[Sections 1010.064-1010.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1010.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for providing medical and hospital care for the

district's needy inhabitants. (Acts 65th Leg., R.S., Ch. 726, Sec.

4 (part).)

Sec. 1010.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT. A political subdivision other than the district

may not impose a tax or issue bonds or other obligations for

hospital purposes or to provide medical care in the district. (Acts

65th Leg., R.S., Ch. 726, Sec. 4 (part).)

Sec.1010.103.MANAGEMENT AND CONTROL. The board shall

manage and control all district affairs. (Acts 65th Leg., R.S., Ch.

726, Sec. 12(a) (part).)

Sec.1010.104.HOSPITAL SYSTEM. (a) The district shall

provide for the establishment of a hospital or hospital system in

the district by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and improvements for hospital and medical

care purposes; and

(2) equipping the buildings and improvements for those

purposes.

(b) The district shall provide for the administration,

maintenance, and operation of the hospital or hospital system to

furnish hospital and medical care in the district.

of buildings required to maintain an adequate hospital system.

(d) The hospital system may include:

(1) domiciliary hospital care of the sick or injured;

(2) outpatient clinics;

(3) dispensaries;

(4) geriatric domiciliary care;

(5) convalescent home facilities;

(6) necessary nurses;

(7) domiciliaries and training centers;

(8) blood banks;

(9) community health centers;

(10) research centers or laboratories; and

(11) any other facilities that the board considers

necessary for hospital care. (Acts 65th Leg., R.S., Ch. 726, Secs.

4 (part), 15 (part).)

Sec.1010.105.DISTRICT ELECTIONS. (a) Each district

election shall be called by resolution or order of the board. The

order or resolution must specify:

(1) the date of the election;

(2) the proposition to be submitted and voted on;

(3) the polling place; and

(4) any other matter considered necessary or advisable

by the board.

(b) Notice of each district election shall be given by

publishing one time a substantial copy of the election resolution

or order in a newspaper of general circulation in the district at

least 20 days before the date set for the election.

election. (Acts 65th Leg., R.S., Ch. 726, Sec. 6 (part).)

Sec.1010.106.BYLAWS. The board may adopt bylaws to

govern:

(1) the time, place, and manner of conducting board

meetings;

(2) the powers, duties, and responsibilities of the

board's officers and employees;

(3) the disbursement of money by check, draft, or

warrant;

(4) the appointment and authority of board committees;

(5) the keeping of records and accounts; and

(6) other matters the board considers appropriate.

(Acts 65th Leg., R.S., Ch. 726, Sec. 10.)

Sec.1010.107.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 for the

district to exercise a right, power, 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, 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.

the district is not required to:

(1) pay in advance or provide bond or other security

for costs in the trial court;

(2) provide bond for the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 65th Leg., R.S., Ch. 726, Sec.

26(a).)

Sec.1010.108.COST OF RELOCATING OR ALTERING PROPERTY. In

exercising the power of eminent domain, if the board requires

relocating, raising, lowering, rerouting, changing the grade of, or

altering the construction of any railroad, electric transmission,

telegraph or telephone lines, conduits, poles, or facilities, or

pipeline, the district must bear the actual cost of relocating,

raising, lowering, rerouting, changing the grade, or altering the

construction to provide comparable replacement without enhancement

of facilities, after deducting the net salvage value derived from

the old facility. (Acts 65th Leg., R.S., Ch. 726, Sec. 26(b).)

Sec.1010.109.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, in the board's opinion, with

the proper management and objectives of the district. (Acts 65th

Leg., R.S., Ch. 726, Sec. 29.)

Sec.1010.110.OPERATING AND MANAGEMENT CONTRACTS. The

district may enter into an operating or management contract with

any person regarding any district hospital or any part of the

district hospital system. (Acts 65th Leg., R.S., Ch. 726, Sec.

15(b) (part).)

Sec.1010.111.CONTRACT IN NAME OF DISTRICT. The district

shall contract in the name of the district. (Acts 65th Leg., R.S.,

Ch. 726, Sec. 13 (part).)

Sec.1010.112.CONTRACTS FOR CARE AND TRAINING. (a) The

district may contract with this state, including agencies of this

state, or the United States for:

(1) the rendition of hospital or medical care; and

(2) the training of doctors, nurses, and other health

care disciplines.

(b) The board may contract with any lessee of the district's

hospitals or any other person to provide hospital care to needy

district inhabitants for payments and terms and under conditions

that the board considers to be in the district's best interests.

(Acts 65th Leg., R.S., Ch. 726, Sec. 14 (part).)

Sec. 1010.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

INVESTIGATORY OR OTHER SERVICES. The board may contract with any

political subdivision or governmental agency for investigatory or

other services as to:

(1) the hospital or medical needs of district

inhabitants; or

(2) the hospital or medical care of the inhabitants of

the other political subdivision or governmental agency. (Acts 65th

Leg., R.S., Ch. 726, Sec. 14 (part).)

Sec.1010.114.MISCELLANEOUS CONTRACT REQUIREMENTS. (a)

The board may not enter into a contract calling for or requiring the

expenditure, payment, or creation or imposition of an obligation or

liability of any nature on the district in excess of $5,000, unless

the proposed contract is first submitted to competitive bids.

(b) Notice of the time and place the contract will be

awarded must be published once a week for two consecutive weeks in a

newspaper of general circulation in the district. The first notice

must be published not later than the 14th day before the date set

for the receipt of bids. The notice must specify that the plans and

specifications for the proposed project, or the specifications for

the machinery, supplies, equipment, or materials to be purchased,

are on file with a designated district representative for

examination without charge.

materials, equipment, supplies, or machinery awarded under this

chapter shall be awarded to the lowest responsible bidder and may be

awarded on a lump-sum basis or on a unit price basis, as the board

shall determine.

(d) After performance of a construction contract has

started, the board may approve change orders necessary to:

(1) change the plans or specifications; or

(2) decrease or increase:

(A) the quantity of work to be performed; or

(B) the materials, equipment, or supplies to be

furnished.

(e) The board may not increase the total contract price by a

change order under Subsection (d) unless the board provides for the

payment of the added cost by appropriating current or bond funds for

that purpose, but the original contract price may not be increased

by more than 25 percent.

(f) The original contract price may not be decreased by more

than 25 percent without the consent of the contractor.

(g) The board may reject any bid. If a contract is for the

construction of public works and requires the expenditure of $5,000

or more, a successful bidder is required to give a good and

sufficient payment bond and performance bond. Each bond must:

(1) be in the full amount of the contract price; and

(2) be executed by a surety company authorized to do

business in this state under Chapter 2253, Government Code.

(h) This section does not apply to:

(1) Section 1010.104(b), 1010.110, 1010.115, or

1010.117;

(2) a contract for personal or professional services;

(3) the purchase of land, buildings, or rights-of-way.

(Acts 65th Leg., R.S., Ch. 726, Sec. 22.)

Sec.1010.115.LEASES. (a) The district through the board

may lease all or part of the buildings and facilities comprising the

hospital system to any person on terms the board considers to be in

the district's best interest. The term of a lease may not exceed 40

years.

(b) When leasing a building or other facility, the board may

delegate as it considers appropriate the board's power to manage,

control, and administer the leased buildings and facilities to

furnish hospital care.

shall provide that the lessee charges sufficient rates for services

rendered or goods provided at the leased premise that together with

other sources of the lessee's revenue produce an amount sufficient

to enable the lessee to pay the expenses of operating and

maintaining the leased premise as the lessee is required to pay

under the lease. The rates also must enable the lessee to pay lease

rentals to the district that will be sufficient, when taken with any

other source of the district's estimated revenue that are pledged

for the same purpose, to:

(1) pay the interest on any revenue or special

obligation bonds that are payable wholly or partly from the lease

rentals;

(2) create and maintain a sinking fund to pay the

principal of and premium, if any, on the bonds as they become due;

(3) create and maintain a bond reserve fund and other

fund as required by the bond resolution or trust indenture

authorizing the issuance of the bonds; and

(4) pay all other charges, fees, costs, and expenses

that the lessee is required to pay under the resolution or

indenture.

(d) The lease, management agreement, bond resolution, or

trust indenture may prescribe systems, methods, routines,

procedures, and policies for the operation of the buildings and

other facilities owned by the district. If all or part of the

district's buildings or other facilities are leased, the district

may delegate to the lessee the duty to establish the systems,

methods, routines, procedures, and policies needed for the

operation of the leased premise. (Acts 65th Leg., R.S., Ch. 726,

Sec. 15(c) (part).)

Sec.1010.116.PURCHASING. The board may purchase any

material, supply, equipment, or vehicle needed by the district.

(Acts 65th Leg., R.S., Ch. 726, Sec. 12(e).)

Sec.1010.117.DISPOSITION OF PROPERTY. The district may

sell or otherwise dispose of any type of property, including

equipment, on terms the board finds are in the best interest of the

district. (Acts 65th Leg., R.S., Ch. 726, Sec. 15(d).)

Sec.1010.118.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient who resides in the district is admitted to a district

facility, the board or a board representative may have an inquiry

made into the financial circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for

the patient's support.

(b) If the board or the board's authorized representative

determines that the patient or those relatives cannot pay all or

part of the costs of the patient's care and treatment, the amount of

the costs that cannot be paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the board shall order the patient

or those relatives to pay the district a specified amount each week

for the patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district may collect the amount from the patient's

estate, or from any relative who is legally liable for the patient's

support, in the manner provided by law for the collection of

expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, the board

shall hear and determine the issue, after calling witnesses.

(f) The final order of the board may be appealed to the

district court. The substantial evidence rule applies to the

appeal. (Acts 65th Leg., R.S., Ch. 726, Sec. 28 (part).)

Sec.1010.119.REIMBURSEMENT FOR SERVICES TO NONRESIDENTS.

If a welfare patient, who is not a district resident, is admitted to

a district facility, the district may:

(1) seek reimbursement from the patient's county of

residence; and

(2) sue for reimbursement. (Acts 65th Leg., R.S., Ch.

726, Sec. 28 (part).)

Sec. 1010.120. AUTHORITY TO SUE AND BE SUED; SERVICE OF

PROCESS. (a) The district, through its directors, may sue and be

sued in the district's own name in any court of this state.

(b) Service of process in any suit may be made by serving any

two directors. (Acts of the 65th Leg., R.S., Ch. 726, Sec. 13

(part).)

[Sections 1010.121-1010.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1010.151.BUDGET. An annual budget for each fiscal

year shall be prepared as directed by, and for approval of, the

board. (Acts 65th Leg., R.S., Ch. 726, Sec. 17 (part).)

Sec.1010.152.AMENDMENTS TO BUDGET. The board may amend

the budget as the board considers necessary. (Acts 65th Leg., R.S.,

Ch. 726, Sec. 17 (part).)

Sec.1010.153.FISCAL YEAR. The district's fiscal year

ends on the last day of April. The board may change the fiscal year.

(Acts 65th Leg., R.S., Ch. 726, Sec. 17 (part).)

Sec.1010.154.ANNUAL AUDIT. (a) The board shall have an

independent certified public accountant audit all transactions

relating to the district for each fiscal year.

(b) The accountant's audit report shall be submitted to the

board not later than the 90th day after the date the fiscal year

ends. (Acts 65th Leg., R.S., Ch. 726, Sec. 17 (part).)

Sec.1010.155.DEPOSITORY. (a) The board shall select one

or more banks to serve as the district's depository.

(b) District money shall be deposited as received with the

district's depository bank.

securing county funds. Deposits may be placed on time deposit or

used to purchase certificates of deposit. (Acts 65th Leg., R.S.,

Ch. 726, Sec. 23 (part).)

Sec.1010.156.INVESTMENT OF DISTRICT MONEY. The board may

invest district money in:

(1) bonds of the United States, this state, or any

political subdivision of this state; or

(2) bonds issued by any agency of the United States if

the payment of the principal and interest is guaranteed by the

United States. (Acts 65th Leg., R.S., Ch. 726, Sec. 23 (part).)

[Sections 1010.157-1010.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1010.201.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 for hospital purposes;

and

(2) equipping buildings or improvements for those

purposes. (Acts 65th Leg., R.S., Ch. 726, Sec. 18 (part).)

Sec.1010.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued under Section

1010.201, the board shall impose an ad valorem tax on all property

in the district subject to district taxation at a rate sufficient

to:

(1) pay the interest on the bonds as the interest comes

due; and

(2) provide and maintain a sinking fund adequate to

pay the principal on the bonds as the principal matures.

(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 65th Leg., R.S., Ch. 726, Sec. 18 (part).)

Sec.1010.203.REVENUE AND SPECIAL OBLIGATION BONDS. (a)

The district may issue revenue or special obligation bonds as

authorized by the laws of this state relating to the issuance of

revenue or special obligation bonds, including Sections

264.042-264.049 and 284.031, Health and Safety Code.

(b) Bonds issued under this section may be payable from and

secured by revenue, encumbrances, and mortgages as authorized by

law. Any maintenance and operating expense of the system that is

charged against the revenue of the system may include only items set

forth and defined in the proceedings authorizing the bond issuance.

(Acts 65th Leg., R.S., Ch. 726, Sec. 19.)

Sec.1010.204.BOND ELECTION. (a) The district may not

issue bonds unless the bonds are authorized by a majority of the

district voters voting at an election held for that purpose.

(b) A proposition to authorize the issuance of district

bonds may be submitted at any district election. (Acts 65th Leg.,

R.S., Ch. 726, Secs. 6 (part), 7 (part), 18 (part).)

Sec.1010.205.MATURITY OF BONDS. District bonds,

including revenue bonds, must mature not later than 40 years after

the date of issuance. (Acts 65th Leg., R.S., Ch. 726, Sec. 20

(part).)

Sec.1010.206.EXECUTION OF BONDS. Bonds shall be signed

and executed as provided by the board in the resolution or order

authorizing the issuance of bonds. (Acts 65th Leg., R.S., Ch. 726,

Sec. 20 (part).)

Sec.1010.207.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued or assumed by the district;

(2) the transfer and issuance of the bonds; and

(3) profits made in the sale of the bonds. (Acts 65th

Leg., R.S., Ch. 726, Sec. 30 (part).)

Sec. 1010.208. REFUNDING OR FUNDING AND RETIRING CERTAIN

OLDER BONDS. (a) This section applies only to bonds approved in an

election held before May 31, 1991.

(b) Except as provided by Subsection (c) and

notwithstanding any legal defect in the incurrence, issuance, or

assumption of the obligation or indebtedness, the board may issue

and sell bonds in the name and on the faith and credit of the

district to refund or fund and retire any outstanding obligation or

other indebtedness the district has incurred, issued, or assumed.

to convert Farmers Home Administration bonds to tax bonds. (Acts

65th Leg., R.S., Ch. 726, Sec. 18A.)

[Sections 1010.209-1010.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1010.251.TAX ELECTION. The district may impose a tax

only if authorized by a majority of the district voters voting in an

election held for that purpose. (Acts 65th Leg., R.S., Ch. 726,

Sec. 6 (part).)

Sec.1010.252.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 shall be imposed for and may be pledged to:

(1) meet the requirements of district bonds;

(2) provide for the district's maintenance and

operating expenses, including the cost of contract payments for

hospital care for needy district inhabitants;

(3) make improvements and additions to the district's

hospitals or hospital system; and

(4) acquire necessary sites for hospitals or the

hospital system by gift, purchase, lease, or condemnation. (Acts

65th Leg., R.S., Ch. 726, Secs. 7 (part), 24(a) (part).)

Sec.1010.253.TAX RATE. (a) The board may impose the tax

at a rate not to exceed 75 cents on each $100 valuation of taxable

property in the district.

(b) In setting the tax rate, the board shall consider all

district income, including income from sources other than taxation

that are available for the purposes described by Section

1010.252(b). (Acts 65th Leg., R.S., Ch. 726, Secs. 7 (part), 24(a)

(part), (b) (part).)

Sec. 1010.254. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR. (a) This section applies unless the board

elects to have taxes assessed and collected under Section 1010.255

or 1010.256.

(b) The tax assessor-collector of Burleson County shall

assess and collect taxes imposed by the district. (Acts 65th Leg.,

R.S., Ch. 726, Secs. 27(a) (part), (b) (part).)

Sec. 1010.255. ASSESSMENT AND COLLECTION BY DISTRICT TAX

ASSESSOR-COLLECTOR. (a) The board may elect to have district taxes

assessed and collected by a tax assessor-collector appointed by the

board. An election under this subsection must be made by December 1

and governs the manner in which taxes are assessed and collected,

until changed by the board.

(b) The district tax assessor-collector must:

(1) reside in the district; and

(2) own real property subject to district taxation.

assessor-collector:

(1) the terms of employment; and

(2) compensation. (Acts 65th Leg., R.S., Ch. 726,

Secs. 27(a) (part), (c) (part).)

Sec. 1010.256. ASSESSMENT AND COLLECTION BY TAX

ASSESSOR-COLLECTOR OF ANOTHER POLITICAL SUBDIVISION. (a) The

board may elect to have all or part of the district's taxes assessed

and collected by a political subdivision in which any part of the

district is located. An election under this subsection must be made

by December 1 and governs the manner in which taxes are assessed and

collected, until changed by the board.

(b) The tax assessor or collector of the political

subdivision shall assess or collect the appropriate district taxes

in accordance with the board's election under Subsection (a) and

for the compensation agreed on by the board and the governing body

of the political subdivision. (Acts 65th Leg., R.S., Ch. 726, Secs.

27(a) (part), (d) (part).)

CHAPTER 1012. CHILDRESS COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1012.001. DEFINITIONS

Sec. 1012.002. AUTHORITY FOR CREATION

Sec. 1012.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1012.004. DISTRICT TERRITORY

Sec. 1012.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1012.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1012.007-1012.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1012.051. BOARD ELECTION; TERM

Sec. 1012.052. QUALIFICATIONS FOR OFFICE

Sec. 1012.053. BOARD VACANCY

Sec. 1012.054. OFFICERS

Sec. 1012.055. COMPENSATION; EXPENSES

Sec. 1012.056. VOTING REQUIREMENT

Sec. 1012.057. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

Sec. 1012.058. INDIVIDUAL LIABILITY OF DIRECTORS

Sec. 1012.059. CHIEF EXECUTIVE OFFICER; ASSISTANT

CHIEF EXECUTIVE OFFICER

Sec. 1012.060. GENERAL DUTIES OF CHIEF EXECUTIVE

OFFICER

Sec. 1012.061. EMPLOYEES

Sec. 1012.062. LEGAL COUNSEL; OTHER PROFESSIONAL

SERVICES

Sec. 1012.063. RECRUITMENT OF MEDICAL PERSONNEL

Sec. 1012.064. PERSONNEL CONTRACTS

Sec. 1012.065. EDUCATIONAL PROGRAMS; COURSES

Sec. 1012.066. RETIREMENT BENEFITS

[Sections 1012.067-1012.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1012.101. DISTRICT RESPONSIBILITY

Sec. 1012.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION AND DEBT

Sec. 1012.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1012.104. HOSPITAL SYSTEM

Sec. 1012.105. RULES

Sec. 1012.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1012.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1012.108. EMINENT DOMAIN

Sec. 1012.109. GIFTS AND ENDOWMENTS

Sec. 1012.110. CONSTRUCTION CONTRACTS

Sec. 1012.111. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT

Sec. 1012.112. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1012.113. AUTHORITY TO SUE AND BE SUED

[Sections 1012.114-1012.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1012.151. BUDGET

Sec. 1012.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1012.153. AMENDMENT OF BUDGET

Sec. 1012.154. RESTRICTION ON EXPENDITURES

Sec. 1012.155. FISCAL YEAR

Sec. 1012.156. ANNUAL AUDIT

Sec. 1012.157. FINANCIAL REPORT

Sec. 1012.158. DEPOSITORY

Sec. 1012.159. GENERAL AUTHORITY TO BORROW MONEY;

SECURITY

Sec. 1012.160. AUTHORITY TO BORROW MONEY IN EMERGENCY;

SECURITY

[Sections 1012.161-1012.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1012.201. GENERAL OBLIGATION BONDS

Sec. 1012.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1012.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1012.204. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1012.205. REVENUE BONDS

Sec. 1012.206. MATURITY OF BONDS

Sec. 1012.207. BONDS EXEMPT FROM TAXATION

[Sections 1012.208-1012.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1012.251. IMPOSITION OF AD VALOREM TAXES

Sec. 1012.252. TAX RATE

Sec. 1012.253. TAX ASSESSOR-COLLECTOR

[Sections 1012.254-1012.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1012.301. DISSOLUTION; ELECTION

Sec. 1012.302. NOTICE OF ELECTION

Sec. 1012.303. BALLOT

Sec. 1012.304. ELECTION RESULTS

Sec. 1012.305. TRANSFER, SALE, OR ADMINISTRATION OF

ASSETS

Sec. 1012.306. SALE OR TRANSFER OF ASSETS AND

LIABILITIES

Sec. 1012.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES

Sec. 1012.308. REPORT; DISSOLUTION ORDER

CHAPTER 1012. CHILDRESS COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1012.001.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 Childress County Hospital

District. (New.)

Sec.1012.002.AUTHORITY FOR CREATION. The 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. 647, Sec. 1 (part).)

Sec.1012.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 59th Leg., R.S., Ch. 647, Sec. 10 (part).)

Sec.1012.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Childress County,

Texas. (Acts 59th Leg., R.S., Ch. 647, Sec. 1 (part).)

Sec. 1012.005. 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. 647, Sec. 21 (part).)

Sec.1012.006.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. 647, Sec. 21 (part).)

[Sections 1012.007-1012.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1012.051.BOARD ELECTION; TERM. (a) The district is

governed by a board of seven directors elected from the district at

large.

(b) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms, with

three directors elected in even-numbered years and four directors

elected in odd-numbered years; and

(2) a director's election shall be held each year on

the May uniform election date prescribed by Section 41.001,

Election Code. (Acts 59th Leg., R.S., Ch. 647, Secs. 4(a), (b)

(part).)

Sec.1012.052.QUALIFICATIONS FOR OFFICE. (a) To be

eligible to hold office as a director, a person must be:

(1) a district resident; and

(2) a qualified voter.

(b) An employee of the district may not serve as a director.

(Acts 59th Leg., R.S., Ch. 647, Sec. 4(d).)

Sec.1012.053.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. 647, Sec. 4(b) (part).)

Sec.1012.054.OFFICERS. (a) The board shall elect a

president and vice president from among its members.

(b) The board shall appoint a secretary, who need not be a

director.

(d) 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. 647, Sec. 4(e).)

Sec.1012.055.COMPENSATION; EXPENSES. A director serves

without compensation but may be reimbursed for actual expenses

incurred in attending to district business. The expenses must be:

(1) reported in the district's records; and

(2) approved by the remainder of the board. (Acts 59th

Leg., R.S., Ch. 647, Sec. 4(c).)

Sec.1012.056.VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business. (Acts 59th Leg., R.S., Ch. 647, Sec. 4(f) (part).)

Sec.1012.057.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

(a) The board shall:

(1) keep an account of all board meetings and

proceedings; and

(2) maintain at the district's principal office all

district records and accounts, including all 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 59th Leg., R.S., Ch. 647, Sec. 4(f)

(part).)

Sec.1012.058.INDIVIDUAL LIABILITY OF DIRECTORS. A

director is individually liable only for the director's individual

misapplication of public money. (Acts 59th Leg., R.S., Ch. 647,

Sec. 5(a) (part).)

Sec. 1012.059. CHIEF EXECUTIVE OFFICER; ASSISTANT CHIEF

EXECUTIVE OFFICER. (a) The board shall appoint a qualified person

to be known as the chief executive officer of the district.

(b) The chief executive officer may appoint an assistant to

the chief executive officer.

compensation determined by the board.

(d) The board may execute an employment contract with the

chief executive officer for a term of not more than three years.

The employment contract may be renewed or extended annually. (Acts

59th Leg., R.S., Ch. 647, Sec. 5(b).)

Sec.1012.060.GENERAL DUTIES OF CHIEF EXECUTIVE OFFICER.

The chief executive officer shall:

(1) stay informed on the latest methods of hospital

administration and the care of hospital patients; and

(2) subject to the limitations prescribed by the

board:

(A) supervise the work and activities of the

district; and

(B) direct the affairs of the district. (Acts

59th Leg., R.S., Ch. 647, Sec. 5(c) (part).)

Sec.1012.061.EMPLOYEES. The board shall authorize the

chief executive officer to employ nurses, technicians, and other

employees for the efficient operation of the district. (Acts 59th

Leg., R.S., Ch. 647, Sec. 5(d).)

Sec.1012.062.LEGAL COUNSEL; OTHER PROFESSIONAL SERVICES.

The board may employ legal counsel or contract for other

professional services as the board considers advisable. (Acts 59th

Leg., R.S., Ch. 647, Sec. 17.)

Sec.1012.063.RECRUITMENT OF MEDICAL PERSONNEL. (a) The

board may spend district money to recruit physicians, nurses, and

other trained medical personnel.

(b) 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

59th Leg., R.S., Ch. 647, Sec. 5(h).)

Sec.1012.064.PERSONNEL CONTRACTS. (a) The board may

contract to provide administrative and other personnel for the

operation of the hospital facilities.

(b) The term of the contract may not exceed 25 years. (Acts

59th Leg., R.S., Ch. 647, Sec. 5(g) (part).)

Sec.1012.065.EDUCATIONAL PROGRAMS; COURSES. The board may

provide or contract for the provision of educational programs or

courses for district employees and medical staff. (Acts 59th Leg.,

R.S., Ch. 647, Sec. 5(j).)

Sec.1012.066.RETIREMENT BENEFITS. The board may provide

retirement benefits for district employees by:

(1) establishing or administering a retirement

program; or

(2) electing to participate in:

(A) the Texas County and District Retirement

System; or

(B) another statewide retirement system in which

the district is eligible to participate. (Acts 59th Leg., R.S., Ch.

647, Sec. 5(l).)

[Sections 1012.067-1012.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1012.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for:

(1) operating all hospital facilities for providing

medical and hospital care to indigent persons in the district; and

(2) providing medical and hospital care for the

district's needy inhabitants. (Acts 59th Leg., R.S., Ch. 647,

Secs. 2 (part), 20 (part).)

Sec. 1012.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION AND DEBT. Childress County or a municipality in Childress

County 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. 647, Sec. 20 (part).)

Sec.1012.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

(a) The board shall manage, control, and administer the district's

hospitals and hospital system.

(b) The board may delegate to the chief executive officer

the authority to manage, control, and administer the hospital, the

hospital system, and the district's business, money, and resources

under the board's oversight. (Acts 59th Leg., R.S., Ch. 647, Secs.

5(a) (part), (c) (part).)

Sec.1012.104.HOSPITAL SYSTEM. The district shall provide

for the establishment of a hospital system by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the buildings and equipment for

hospital purposes. (Acts 59th Leg., R.S., Ch. 647, Sec. 2 (part).)

Sec.1012.105.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. 647, Secs. 5(a) (part), 11

(part).)

Sec.1012.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of the making of purchases

and expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 59th

Leg., R.S., Ch. 647, Sec. 11 (part).)

Sec. 1012.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location of buildings required to maintain an adequate hospital

system.

(b) The board may:

(1) purchase or lease property, including facilities

or equipment, for the district to use in the hospital system; and

(2) mortgage or pledge the property as security for

the payment of the purchase price.

individuals, corporations, or other legal entities.

(d) The board may sell or otherwise dispose of the

district's property, including facilities or equipment. (Acts 59th

Leg., R.S., Ch. 647, Secs. 5(f), (g) (part), 9.)

Sec.1012.108.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in any type of property located in district

territory if the interest is necessary or convenient for the

district to exercise a power, right, or privilege conferred by this

chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code. (Acts 59th

Leg., R.S., Ch. 647, Sec. 15.)

Sec.1012.109.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. 647,

Sec. 19.)

Sec.1012.110.CONSTRUCTION CONTRACTS. A construction

contract that requires the expenditure of more than the amount

provided by Section 271.024, Local Government Code, may be made

only after competitive bidding as provided by Subchapter B, Chapter

271, Local Government Code. (Acts 59th Leg., R.S., Ch. 647, Sec. 11

(part).)

Sec. 1012.111. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

CARE AND TREATMENT. (a) The board may contract with a 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.

(b) The board may contract with this state or a federal

agency for the treatment of a sick or injured person for whom this

state or the agency is responsible. (Acts 59th Leg., R.S., Ch. 647,

Sec. 5(e).)

Sec.1012.112.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient who resides in the district is admitted to a district

facility, the chief executive officer shall have an inquiry made

into the circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for

the patient's support.

(b) If the chief executive officer determines that the

patient or those relatives cannot pay all or part of the costs of

the care and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the chief executive officer 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.

(d) The chief executive officer may collect the amount from

the patient's estate, or from a relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) The board may institute a suit to collect an amount owed

to the district by a patient who has not been determined under this

section to be unable to pay.

(f) If there is a dispute as to the ability to pay, or doubt

in the mind of the chief executive officer, the board shall hold a

hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue any appropriate orders.

(g) A final order of the board may be appealed to the

district court. The substantial evidence rule applies to the

appeal. (Acts 59th Leg., R.S., Ch. 647, Secs. 5(k), 18.)

Sec.1012.113.AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued. (Acts 59th Leg., R.S., Ch.

647, Sec. 5(a) (part).)

[Sections 1012.114-1012.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1012.151.BUDGET. The chief executive officer shall

prepare an annual budget for approval by the board. (Acts 59th

Leg., R.S., Ch. 647, Sec. 6 (part).)

Sec.1012.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) The board shall publish notice of the hearing in

accordance with Chapter 551, Government Code.

R.S., Ch. 647, Sec. 6 (part).)

Sec.1012.153.AMENDMENT OF BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 59th Leg., R.S., Ch. 647, Sec. 6 (part).)

Sec.1012.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 59th Leg., R.S., Ch. 647, Sec. 6 (part).)

Sec.1012.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that revenue bonds of the district

are outstanding; or

(2) more than once in a 24-month period. (Acts 59th

Leg., R.S., Ch. 647, Sec. 6 (part).)

Sec.1012.156.ANNUAL AUDIT. (a) The board annually shall

have an audit made of the district's financial condition.

(b) The audit shall be open to inspection at all times at the

district's principal office. (Acts 59th Leg., R.S., Ch. 647, Sec. 6

(part).)

Sec.1012.157.FINANCIAL REPORT. As soon as practicable

after the close of each fiscal year, the chief executive officer

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 59th Leg., R.S., Ch. 647, Sec. 6 (part).)

Sec.1012.158.DEPOSITORY. (a) The board shall select one

or more banks to serve as a depository for district money.

(b) District money shall be immediately deposited on

receipt with a depository bank, except that sufficient money must

be remitted to the appropriate bank to pay the principal of and

interest on the district's outstanding bonds or other obligations

on or before the maturity date of the principal and interest.

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 disqualifies the bank from being selected as a

depository bank. (Acts 59th Leg., R.S., Ch. 647, Sec. 12.)

Sec.1012.159.GENERAL 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 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.

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 59th

Leg., R.S., Ch. 647, Sec 20B.)

Sec. 1012.160. AUTHORITY TO BORROW MONEY IN EMERGENCY;

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.

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 59th Leg., R.S., Ch. 647, Sec.

20A.)

[Sections 1012.161-1012.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1012.201.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 hospital or hospital system

purposes, to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements;

(2) equip buildings or improvements; or

(3) acquire and operate a mobile emergency medical or

air ambulance service. (Acts 59th Leg., R.S., Ch. 647, Sec. 7(a)

(part).)

Sec.1012.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued under Section

1012.201, the board shall impose an ad valorem tax at a rate

sufficient to create an interest and sinking fund and to pay the

principal of and interest on the bonds as the bonds mature.

(b) The tax required by this section together with any other

ad valorem tax the district imposes may not exceed the limit

approved by the voters at the election authorizing the imposition

of the tax. (Acts 59th Leg., R.S., Ch. 647, Sec. 7(b) (part).)

Sec.1012.203.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) Section 41.001(a), Election Code, does not apply to a

bond election ordered by the board.

election shall be conducted in accordance with Chapter 1251,

Government Code. (Acts 59th Leg., R.S., Ch. 647, Secs. 7(a)

(part), (b) (part).)

Sec.1012.204.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall attest the bonds as provided

by Chapter 618, Government Code. (Acts 59th Leg., R.S., Ch. 647,

Sec. 7(c) (part).)

Sec.1012.205.REVENUE BONDS. (a) The board may issue and

sell revenue bonds in the name and on the faith and credit of the

district to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospitals and the hospital

system; or

(2) acquire sites to be used 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.

deed of trust on all or part of the district's property.

(d) The bonds must be issued in the manner provided by

Sections 264.042, 264.043, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority.

(Acts 59th Leg., R.S., Ch. 647, Sec. 7(f).)

Sec.1012.206.MATURITY OF BONDS. District bonds must

mature not later than 40 years after the date of issuance. (Acts

59th Leg., R.S., Ch. 647, Sec. 7(d) (part).)

Sec.1012.207.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) profits made in the sale of the bonds. (Acts 59th

Leg., R.S., Ch. 647, Sec. 10 (part).)

[Sections 1012.208-1012.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1012.251.IMPOSITION OF AD VALOREM TAXES. (a) The

board may impose a tax on property in the district subject to

district taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

or interest on revenue bonds. (Acts 59th Leg., R.S., Ch. 647, Secs.

3 (part), 13 (part), 16(a) (part).)

Sec.1012.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed the limit approved by the voters at the

election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on

each $100 valuation of taxable property in the district.

income of the district from sources other than taxation. (Acts 59th

Leg., R.S., Ch. 647, Secs. 13 (part), 16(a) (part).)

Sec.1012.253.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 59th Leg., R.S., Ch. 647, Sec.

16(b) (part).)

[Sections 1012.254-1012.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec.1012.301.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.

a petition requesting an election that is signed by a number of

residents of the district equal to at least 15 percent of the

registered voters in the district.

(d) The order calling the election must state:

(1) the nature of the election, including the

proposition to appear on the ballot;

(2) the date of the election;

(3) the hours during which the polls will be open; and

(4) the location of the polling places.

(e) Section 41.001(a), Election Code, does not apply to an

election ordered under this section. (Acts 59th Leg., R.S., Ch.

647, Secs. 21A(a), (b), (c) (part).)

Sec.1012.302.NOTICE OF ELECTION. (a) The board shall

give notice of an election under this subchapter by publishing once

a week for two consecutive weeks a substantial copy of the election

order in a newspaper with general circulation in the district.

(b) The first publication of the notice must appear not

later than the 35th day before the date set for the election. (Acts

59th Leg., R.S., Ch. 647, Sec. 21A(d) (part).)

Sec.1012.303.BALLOT. The ballot for an election under

this subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the Childress County Hospital

District." (Acts 59th Leg., R.S., Ch. 647, Sec. 21A(d) (part).)

Sec.1012.304.ELECTION RESULTS. (a) If a majority of the

votes in an election under this subchapter favor dissolution, the

board shall find that the district is dissolved.

(b) If a majority of the votes in the election do not favor

dissolution, the board shall continue to administer the district

and another election on the question of dissolution may not be held

before the first anniversary of the date of the most recent election

to dissolve the district. (Acts 59th Leg., R.S., Ch. 647, Sec.

21A(e).)

Sec.1012.305.TRANSFER, SALE, OR ADMINISTRATION OF ASSETS.

(a) If a majority of the votes in the 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

Childress County or another governmental entity in Childress

County;

(2) sell the assets and liabilities to another person;

(3) 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.

administers the property, assets, and debts under Subsection

(a)(3), the district is dissolved when all money is disposed of and

all district debts have been paid or settled. (Acts 59th Leg.,

R.S., Ch. 647, Secs. 21A(f), (g), (m) (part).)

Sec.1012.306.SALE OR TRANSFER OF ASSETS AND LIABILITIES.

(a) The dissolution of the district and the sale or transfer of the

district's assets or liabilities to another person may not

contravene a trust indenture or bond resolution relating to the

district's outstanding bonds. The dissolution and sale or transfer

does not diminish or impair the rights of a holder of an outstanding

bond, warrant, or other obligation of the district.

(b) 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 the residents of

the district, including the residents' collective property rights

in the district's assets.

district's assets except for due compensation unless:

(1) the transfer is made to another governmental

entity that serves the district; and

(2) the transferred assets are to be used for the

benefit of the district's residents.

(d) A grant from federal funds is an obligation to be repaid

in satisfaction. (Acts 59th Leg., R.S., Ch. 647, Secs. 21A(m)

(part), (n).)

Sec. 1012.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES. (a) After the board finds that the district is dissolved,

the board shall:

(1) determine the debt owed by the district; and

(2) impose on the property included in the district's

tax rolls a tax that is in proportion of the debt to the property

value.

(b) On the payment of all outstanding debts and obligations

of the district, the board shall order the secretary to return to

each district taxpayer the taxpayer's pro rata share of all unused

tax money.

surplus tax money be credited to the taxpayer's county taxes. If a

taxpayer requests the credit, the board shall direct the secretary

to transmit the money to the county tax assessor-collector. (Acts

59th Leg., R.S., Ch. 647, Secs. 21A(h), (i), (j).)

Sec.1012.308.REPORT; DISSOLUTION ORDER. (a) After the

district has paid all district debts and has disposed of all

district money and other assets as prescribed by this subchapter,

the board shall file a written report with the Commissioners Court

of Childress County summarizing the board's actions in dissolving

the district.

(b) Not later than the 10th day after the date the

Commissioners Court of Childress County receives the report and

determines that the requirements of this subchapter have been

fulfilled, the commissioners court shall enter an order dissolving

the district and releasing the board from any further duty or

obligation. (Acts 59th Leg., R.S., Ch. 647, Secs. 21A(k), (l).)

CHAPTER 1013. CASTRO COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1013.001. DEFINITIONS

Sec. 1013.002. AUTHORITY FOR OPERATION

Sec. 1013.003. ESSENTIAL PUBLIC FUNCTION; POLITICAL

SUBDIVISION

Sec. 1013.004. DISTRICT TERRITORY

Sec. 1013.005. CORRECTION OF INVALID PROCEDURES

[Sections 1013.006-1013.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1013.051. BOARD ELECTION; TERM

Sec. 1013.052. NOTICE OF ELECTION

Sec. 1013.053. QUALIFICATIONS FOR OFFICE

Sec. 1013.054. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE

Sec. 1013.055. BOARD VACANCY

Sec. 1013.056. OFFICERS

Sec. 1013.057. COMPENSATION; EXPENSES

Sec. 1013.058. VOTING REQUIREMENT

Sec. 1013.059. DISTRICT ADMINISTRATOR

Sec. 1013.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1013.061. EMPLOYEES

Sec. 1013.062. RECRUITMENT OF MEDICAL STAFF AND

EMPLOYEES

Sec. 1013.063. APPOINTMENT AND REMOVAL OF MEDICAL STAFF

Sec. 1013.064. HEALTH CARE EDUCATIONAL PROGRAMS

Sec. 1013.065. RETIREMENT BENEFITS

Sec. 1013.066. LIABILITY INSURANCE; INDEMNIFICATION

Sec. 1013.067. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

Sec. 1013.068. SEAL

[Sections 1013.069-1013.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1013.101. DISTRICT RESPONSIBILITY

Sec. 1013.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION

Sec. 1013.103. MANAGEMENT AND CONTROL

Sec. 1013.104. HOSPITAL SYSTEM

Sec. 1013.105. RULES

Sec. 1013.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1013.107. MOBILE EMERGENCY MEDICAL SERVICE

Sec. 1013.108. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1013.109. EMINENT DOMAIN

Sec. 1013.110. GIFTS AND ENDOWMENTS

Sec. 1013.111. CONTRACTS FOR CARE AND TREATMENT

Sec. 1013.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1013.113. PROVISION OF SERVICES OUTSIDE DISTRICT

Sec. 1013.114. JOINT ADMINISTRATION OR DELIVERY OF

HEALTH CARE SERVICES

Sec. 1013.115. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1013.116. REIMBURSEMENT FOR SERVICES

Sec. 1013.117. NONPROFIT CORPORATION

Sec. 1013.118. AUTHORITY TO SUE AND BE SUED

[Sections 1013.119-1013.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1013.151. BUDGET

Sec. 1013.152. PROPOSED BUDGET: NOTICE AND HEARING

Sec. 1013.153. FISCAL YEAR

Sec. 1013.154. ANNUAL AUDIT

Sec. 1013.155. DEPOSITORY OR TREASURER

Sec. 1013.156. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1013.157-1013.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1013.201. GENERAL OBLIGATION BONDS

Sec. 1013.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1013.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1013.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1013.205. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1013.206. REVENUE BONDS

Sec. 1013.207. REFUNDING BONDS

Sec. 1013.208. BONDS EXEMPT FROM TAXATION

[Sections 1013.209-1013.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1013.251. IMPOSITION OF AD VALOREM TAX

Sec. 1013.252. TAX RATE

Sec. 1013.253. TAX ASSESSOR-COLLECTOR

[Sections 1013.254-1013.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1013.301. DISSOLUTION; ELECTION

Sec. 1013.302. NOTICE OF ELECTION

Sec. 1013.303. BALLOT

Sec. 1013.304. ELECTION RESULTS

Sec. 1013.305. TRANSFER OR ADMINISTRATION OF ASSETS

Sec. 1013.306. SALE OR TRANSFER OF ASSETS AND

LIABILITIES

Sec. 1013.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES

Sec. 1013.308. REPORT; DISSOLUTION ORDER

CHAPTER 1013. CASTRO COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1013.001.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 Castro County Hospital

District. (New.)

Sec.1013.002.AUTHORITY FOR OPERATION. The district

operates under the authority of and has the powers and

responsibilities provided by Section 11, Article IX, Texas

Constitution. (Acts 57th Leg., R.S., Ch. 103, Sec. 1 (part).)

Sec. 1013.003. ESSENTIAL PUBLIC FUNCTION; POLITICAL

SUBDIVISION. The district is:

(1) a public entity performing an essential public

function; and

(2) a political subdivision of this state. (Acts 57th

Leg., R.S., Ch. 103, Secs. 6A(c) (part), 18 (part).)

Sec.1013.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Castro County.

(Acts 57th Leg., R.S., Ch. 103, Sec. 1 (part).)

Sec.1013.005.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 57th Leg., R.S., Ch. 103, Sec. 19 (part).)

[Sections 1013.006-1013.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1013.051.BOARD ELECTION; TERM. (a) The board

consists of five directors elected from the district at large.

(b) Directors serve staggered three-year terms.

in May of each year to elect the appropriate number of directors.

(Acts 57th Leg., R.S., Ch. 103, Secs. 3(a) (part), (e) (part).)

Sec.1013.052.NOTICE OF ELECTION. Not earlier than the

30th day or later than the 10th day before the date of an election of

directors, notice of the election shall be published one time in a

newspaper of general circulation in Castro County. (Acts 57th

Leg., R.S., Ch. 103, Sec. 3(e) (part).)

Sec.1013.053.QUALIFICATIONS FOR OFFICE. (a) A person may

not be elected or appointed as a director unless the person is:

(1) a district resident; and

(2) at least 21 years of age.

(b) An employee or medical staff member of the district may

not serve as a director. (Acts 57th Leg., R.S., Ch. 103, Sec. 3(b)

(part).)

Sec. 1013.054. BOND; RECORD OF BOND AND OATH OR AFFIRMATION

OF OFFICE. (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) The district may pay for the directors' bonds with

district money.

affirmation of office shall be deposited with the district's

depository bank for safekeeping. (Acts 57th Leg., R.S., Ch. 103,

Sec. 3(c) (part).)

Sec.1013.055.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, a district court, on

application of a district voter or taxpayer, may order the

directors to hold the election. (Acts 57th Leg., R.S., Ch. 103,

Sec. 3(d) (part).)

Sec.1013.056.OFFICERS. The board shall elect from among

its members a president, vice president, and secretary. (Acts 57th

Leg., R.S., Ch. 103, Sec. 3(d) (part).)

Sec.1013.057.COMPENSATION; EXPENSES. A director serves

without compensation but may be reimbursed for actual expenses

incurred in the performance of official duties on approval of the

expenses by the entire board. (Acts 57th Leg., R.S., Ch. 103, Sec.

4 (part).)

Sec.1013.058.VOTING REQUIREMENT. A concurrence of three

directors is sufficient in any matter relating to district

business. (Acts 57th Leg., R.S., Ch. 103, Sec. 3(d) (part).)

Sec.1013.059.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. (Acts

57th Leg., R.S., Ch. 103, Sec. 8(b) (part).)

Sec.1013.060.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 general affairs of the district. (Acts

57th Leg., R.S., Ch. 103, Sec. 8(b) (part).)

Sec.1013.061.EMPLOYEES. (a) The board may employ a

general manager, attorney, bookkeeper, and architect.

(b) The board may employ technicians, nurses, fiscal

agents, accountants, and other necessary employees.

authority to hire employees under Subsection (b). (Acts 57th Leg.,

R.S., Ch. 103, Secs. 8(a) (part), (c) (part).)

Sec.1013.062.RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES.

The board may spend district money, enter into agreements, and take

other necessary action to recruit physicians and other persons to

serve as medical staff members or district employees, including:

(1) advertising and marketing;

(2) paying travel, recruitment, and relocation

expenses;

(3) providing a loan or scholarship to a physician or a

person who:

(A) is currently enrolled in health care

education courses at an institution of higher education; and

(B) contractually agrees to become a district

employee or medical staff member; and

(4) providing on a rent-free basis or subsidizing the

cost of office space or other facilities for a health care

professional, including a physician. (Acts 57th Leg., R.S., Ch.

103, Sec. 8A(j).)

Sec.1013.063.APPOINTMENT AND REMOVAL OF MEDICAL STAFF.

(a) The board may appoint to or remove from the medical staff any

doctors as necessary for the efficient operation of the district

and may make temporary appointments as necessary.

(b) The board may adopt policies relating to the appointment

and removal of medical staff members. (Acts 57th Leg., R.S., Ch.

103, Sec. 8(d) (part).)

Sec.1013.064.HEALTH CARE EDUCATIONAL PROGRAMS. The

board may spend district money, enter into an agreement, or take

other necessary action to conduct, participate in, or assist in

providing health care educational programs for current or

prospective medical staff members or employees of the district.

(Acts 57th Leg., R.S., Ch. 103, Sec. 8A(k).)

Sec.1013.065.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 57th Leg., R.S., Ch.

103, Sec. 8A(l).)

Sec.1013.066.LIABILITY INSURANCE; INDEMNIFICATION. (a)

The board may defend or indemnify an officer, director, board

appointee, medical staff member, or district employee against or

from a claim, expense, or liability arising from duties performed

in that capacity.

(b) The board may purchase liability insurance coverage or

establish a self-insurance program to fund an indemnity obligation

under this section. (Acts 57th Leg., R.S., Ch. 103, Sec. 4 (part).)

Sec.1013.067.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

Except as provided by Section 1013.054, 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 57th Leg., R.S., Ch. 103, Sec.

8(e).)

Sec.1013.068.SEAL. The board may adopt a seal for the

district. (Acts 57th Leg., R.S., Ch. 103, Sec. 8(a) (part).)

[Sections 1013.069-1013.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1013.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for providing medical and hospital care for the

district's needy and indigent residents. (Acts 57th Leg., R.S.,

Ch. 103, Sec. 13 (part).)

Sec. 1013.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION. Castro County or a municipality in Castro County may not

impose a tax for hospital purposes. (Acts 57th Leg., R.S., Ch. 103,

Sec. 13 (part).)

Sec.1013.103.MANAGEMENT AND CONTROL. The management and

control of the district is vested in the board. (Acts 57th Leg.,

R.S., Ch. 103, Sec. 4 (part).)

Sec.1013.104.HOSPITAL SYSTEM. (a) The district may

provide for the establishment of a hospital or hospital system to

provide medical and hospital care to the district's needy

residents.

(b) The hospital system may include:

(1) facilities and equipment for domiliciary care and

treatment of sick, injured, or geriatric patients;

(2) outpatient clinics;

(3) convalescent home facilities;

(4) physicians' offices; and

(5) any other facilities or equipment the board

considers necessary for hospital purposes. (Acts 57th Leg., R.S.,

Ch. 103, Secs. 2 (part), 8A(a) (part).)

Sec.1013.105.RULES. (a) The board may adopt rules

governing the operation of the district, including district

facilities.

(b) On approval by the board, the rules may be published in

booklet form at district expense and made available to any taxpayer

on request. (Acts 57th Leg., R.S., Ch. 103, Sec. 8(f).)

Sec.1013.106.PURCHASING AND ACCOUNTING PROCEDURES. (a)

The board may prescribe the method and manner of making purchases

and expenditures by and for the district.

(b) The board shall prescribe:

(1) all accounting and control procedures; and

(2) the method of purchasing necessary supplies,

materials, and equipment. (Acts 57th Leg., R.S., Ch. 103, Sec. 8(a)

(part).)

Sec.1013.107.MOBILE EMERGENCY MEDICAL SERVICE. The

district may operate or provide for the operation of a mobile

emergency medical service as part of the hospital system. (Acts

57th Leg., R.S., Ch. 103, Sec. 8A(a) (part).)

Sec. 1013.108. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine:

(1) the type, number, and location of facilities

required to maintain an adequate hospital system; and

(2) the type of equipment necessary for hospital care.

(b) The board may:

(1) acquire, construct, repair, or renovate property,

including facilities or equipment, for the district for use in the

hospital system; and

(2) mortgage or pledge the property as security for

the payment of the purchase price.

district.

(d) The board may sell or otherwise dispose of property,

including facilities or equipment, for the district.

(e) The district may operate any facility covered by this

section or contract with any person to operate the facility. (Acts

57th Leg., R.S., Ch. 103, Secs. 8A(a) (part), (b), (c), (d), (e).)

Sec.1013.109.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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 57th Leg., R.S., Ch. 103, Sec.

10.)

Sec.1013.110.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 57th Leg., R.S., Ch. 103, Sec.

16.)

Sec.1013.111.CONTRACTS FOR CARE AND TREATMENT. (a) The

board may contract with a hospital, hospital authority, or

political subdivision of this state located outside the district's

boundaries to reimburse the district for the care and treatment of a

sick or injured person of that entity.

(b) The board may contract with this state or a federal

agency for the state or agency to reimburse the district for the

treatment of a sick or injured person. (Acts 57th Leg., R.S., Ch.

103, Sec. 8A(g) (part).)

Sec. 1013.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

INVESTIGATORY OR OTHER SERVICES. The board may contract with a

political subdivision or governmental agency to provide

investigatory or other services related to facilities for the

medical care, hospital, or welfare needs of district inhabitants.

(Acts 57th Leg., R.S., Ch. 103, Sec. 8A(g) (part).)

Sec.1013.113.PROVISION OF SERVICES OUTSIDE DISTRICT.

Subject to board approval the district may provide primary care,

emergency services, preventative medical services, and other

health-related services outside the district, provided that the

services serve the purpose of the district as established by this

chapter. (Acts 57th Leg., R.S., Ch. 103, Sec. 8A(f).)

Sec. 1013.114. JOINT ADMINISTRATION OR DELIVERY OF HEALTH

CARE SERVICES. (a) To provide joint administration or delivery of

health care services, the district may contract with, affiliate

with, or enter into another arrangement with:

(1) a managed care system;

(2) a preferred provider organization;

(3) a health maintenance organization;

(4) another provider of an alternative health care or

delivery system; or

(5) a private hospital.

(b) The district may spend district money to establish and

maintain a partnership, corporation, or other entity involved in

the delivery of health care services. (Acts 57th Leg., R.S., Ch.

103, Sec. 8A(h).)

Sec.1013.115.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient who resides in Castro County is admitted to a

district facility, the board shall have an inquiry made into the

circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for

the patient's support.

(b) If an agent designated by the district to handle the

inquiry determines that the patient or those relatives cannot pay

all or part of the costs 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.

are liable to pay for all or part of the costs of the patient's care

and treatment, the patient or those relatives shall be ordered to

pay to the district's treasurer 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 may collect the amount from the patient's

estate, or from any relative who is legally liable for the patient's

support, in the manner provided by law for the collection of

expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the district's designated agent, the board shall hold

a hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue an appropriate order.

(f) Either party to the dispute may appeal the order to the

district court. (Acts 57th Leg., R.S., Ch. 103, Sec. 14.)

Sec.1013.116.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 and 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 and

treatment of a person who is confined in a Castro County jail

facility and is not a district resident. (Acts 57th Leg., R.S., Ch.

103, Secs. 14A(a) (part), (b).)

Sec.1013.117.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.

(a-1) On or before December 31, 2009, the district may

create and sponsor a nonprofit corporation under the Texas

Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's

Texas Civil Statutes) or the Business Organizations Code, as

applicable, and may contribute money to or solicit money for the

corporation.

(b) The corporation may use money, other than money the

corporation pays to the district, only to provide health care or

other services the district is authorized to provide under this

chapter.

any manner in which the district may invest the district's money,

including investing money as authorized by Chapter 2256, Government

Code.

(d) The board shall establish controls to ensure that the

corporation uses its money as required by this section.

(e) This subsection and Subsection (a-1) expire December

31, 2009. (Acts 57th Leg., R.S., Ch. 103, Sec. 8A(i).)

Sec.1013.118.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 57th Leg., R.S., Ch. 103,

Sec. 18 (part).)

[Sections 1013.119-1013.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1013.151.BUDGET. The board annually shall require a

budget to be 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 57th Leg., R.S., Ch. 103, Sec. 9(b) (part).)

Sec.1013.152.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 Castro County not later than

the 10th day before the date of the hearing.

(1) appear at the time and place designated in the

notice; and

(2) be heard regarding any item included in the

proposed budget. (Acts 57th Leg., R.S., Ch. 103, Sec. 9(b) (part).)

Sec.1013.153.FISCAL YEAR. The district operates on a

fiscal year established by the board. (Acts 57th Leg., R.S., Ch.

103, Sec. 9(a) (part).)

Sec.1013.154.ANNUAL AUDIT. (a) The board annually shall

have an independent audit made of the district's books and records

for the fiscal year.

(b) Not later than December 31 each year, the audit shall be

filed:

(1) with the comptroller; and

(2) at the district office. (Acts 57th Leg., R.S., Ch.

103, Sec. 9(a) (part).)

Sec.1013.155.DEPOSITORY OR TREASURER. (a) The board by

resolution shall designate a bank or banks in Castro County as the

district's depository or treasurer. A designated bank serves for

three years and until a successor is designated.

(b) All district money shall be secured in the manner

provided for securing county funds. (Acts 57th Leg., R.S., Ch. 103,

Sec. 11.)

Sec.1013.156.AUTHORITY TO BORROW MONEY; SECURITY. (a)

The board may borrow money for district purposes on district credit

or secured by district revenue. The rate may not 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 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.

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 57th

Leg., R.S., Ch. 103, Secs. 6B (part), 16A.)

[Sections 1013.157-1013.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1013.201.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 or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 57th Leg., R.S., Ch. 103, Sec. 6(a).)

Sec.1013.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1013.201, 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 75

cents on each $100 valuation of all taxable property in the

district. (Acts 57th Leg., R.S., Ch. 103, Sec. 6(b) (part).)

Sec.1013.203.GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the district voters voting at an

election held for that purpose.

(b) The board may order the election on its own motion.

(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 Castro County once a week for two

consecutive weeks before the date of the election. The first

publication must occur at least 14 days before the date of the

election. (Acts 57th Leg., R.S., Ch. 103, Sec. 6(d) (part).)

Sec.1013.204.MATURITY OF GENERAL OBLIGATION BONDS.

District general obligation bonds must mature not later than 40

years after the date of issuance. (Acts 57th Leg., R.S., Ch. 103,

Sec. 6(d) (part).)

Sec.1013.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds. (Acts

57th Leg., R.S., Ch. 103, Sec. 6(c) (part).)

Sec.1013.206.REVENUE BONDS. (a) The board may issue

revenue bonds in the name and on the faith and credit of the

district to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements;

(2) equip buildings or improvements for hospital

purposes; or

(3) acquire 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.

deed of trust on all or part of district property.

(d) The bonds must be issued in the manner provided by

Sections 264.042, 264.043, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority.

(Acts 57th Leg., R.S., Ch. 103, Sec. 6A(d).)

Sec.1013.207.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 bonds

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 57th Leg., R.S., Ch. 103, Secs. 6(d) (part),

(e) (part).)

Sec.1013.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) any transaction relating to the bonds; and

(3) profits made in the sale of the bonds. (Acts 57th

Leg., R.S., Ch. 103, Sec. 6A(c) (part).)

[Sections 1013.209-1013.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1013.251.IMPOSITION OF AD VALOREM TAX. (a) On final

approval of the annual budget, the board may impose a tax on all

property in the district subject to district taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

or interest on revenue bonds issued by the district. (Acts 57th

Leg., R.S., Ch. 103, Secs. 5A(a), (b) (part), (c) (part), (d), (e),

9(b) (part).)

Sec.1013.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed the limit approved by the voters at the

election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on

each $100 valuation of all taxable property in the district. (Acts

57th Leg., R.S., Ch. 103, Secs. 5A(b) (part), (c), 6(b) (part).)

Sec.1013.253.TAX ASSESSOR-COLLECTOR. (a) 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.

(b) The tax assessor-collector shall assess and collect

taxes imposed by the district. (Acts 57th Leg., R.S., Ch. 103,

Secs. 5A(g), 9(b) (part).)

[Sections 1013.254-1013.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec.1013.301.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.

a petition requesting an election that is signed by a number of

district residents equal to at least 15 percent of the registered

voters in the district.

(d) The order calling the election must state:

(1) the nature of the election, including the

proposition to appear on the ballot;

(2) the date of the election;

(3) the hours during which the polls will be open; and

(4) the location of the polling places.

(e) Section 41.001(a), Election Code, does not apply to an

election ordered under this section. (Acts 57th Leg., R.S., Ch.

103, Secs. 21(a), (b), (c), (d) (part).)

Sec.1013.302.NOTICE OF ELECTION. (a) The board shall

give notice of an election under this subchapter by publishing once

a week for two consecutive weeks the election order in a newspaper

with general circulation in the district.

(b) The first publication of the notice must appear not

later than the 35th day before the date set for the election. (Acts

57th Leg., R.S., Ch. 103, Sec. 21(e) (part).)

Sec.1013.303.BALLOT. The ballot for an election under

this subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the Castro County Hospital

District." (Acts 57th Leg., R.S., Ch. 103, Sec. 21(e) (part).)

Sec.1013.304.ELECTION RESULTS. (a) If a majority of the

votes in an election under this subchapter favor dissolution, the

board shall find that the district is dissolved.

(b) If a majority of the votes in the election do not favor

dissolution, the board shall continue to administer the district

and another election on the question of dissolution may not be held

before the first anniversary of the date of the most recent election

to dissolve the district. (Acts 57th Leg., R.S., Ch. 103, Sec.

21(f).)

Sec.1013.305.TRANSFER OR ADMINISTRATION OF ASSETS. (a)

If a majority of the votes in the election held under this

subchapter favor dissolution, the board shall:

(1) transfer the land, buildings, improvements,

equipment, and other assets that belong to the district to Castro

County or another governmental agency in Castro 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 agency assumes all debts and obligations of the

district at the time of the transfer, and the district is dissolved.

(Acts 57th Leg., R.S., Ch. 103, Secs. 21(g), (h).)

Sec.1013.306.SALE OR TRANSFER OF ASSETS AND LIABILITIES.

(a) The district may not be dissolved unless the board provides for

the sale or transfer of the district's assets and liabilities to

another person.

(b) The dissolution of the district and the sale or transfer

of the district's assets or liabilities may not contravene a trust

indenture or bond resolution relating to the district's outstanding

bonds. The dissolution and sale or transfer does not diminish or

impair the rights of a holder of an outstanding bond, warrant, or

other obligation of the district.

liabilities must satisfy the debt and bond obligations of the

district in a manner that protects the interests of district

residents, including the residents' collective property rights in

the district's assets.

(d) The district may not transfer or dispose of the

district's assets except for due compensation unless:

(1) the transfer is made to another governmental

agency that serves the district; and

(2) the transferred assets are to be used for the

benefit of the district's residents.

(e) A grant from federal funds is an obligation to be repaid

in satisfaction. (Acts 57th Leg., R.S., Ch. 103, Secs. 21(n), (o).)

Sec. 1013.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES. (a) After the board finds that the district is dissolved,

the board shall:

(1) determine the debt owed by the district; and

(2) impose on the property included in the district's

tax rolls a tax that is in proportion of the debt to the property

value.

(b) On the payment of all outstanding debts and obligations

of the district, the board shall order the secretary to return to

each district taxpayer the taxpayer's pro rata share of all unused

tax money.

surplus tax money be credited to the taxpayer's county taxes. If a

taxpayer requests the credit, the board shall direct the secretary

to transmit the money to the county tax assessor-collector. (Acts

57th Leg., R.S., Ch. 103, Secs. 21(i), (j), (k).)

Sec.1013.308.REPORT; DISSOLUTION ORDER. (a) After the

district has paid all its debts and has disposed of all its money

and other assets as prescribed by this subchapter, the board shall

file a written report with the Commissioners Court of Castro County

summarizing the board's actions in dissolving the district.

(b) Not later than the 10th day after the date the

Commissioners Court of Castro County receives the report and

determines that the requirements of this subchapter have been

fulfilled, the commissioners court shall enter an order dissolving

the district and releasing the board from any further duty or

obligation. (Acts 57th Leg., R.S., Ch. 103, Secs. 21(l), (m).)

CHAPTER 1014. COLLINGSWORTH COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1014.001. DEFINITIONS

Sec. 1014.002. AUTHORITY FOR CREATION

Sec. 1014.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1014.004. DISTRICT TERRITORY

Sec. 1014.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1014.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1014.007-1014.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1014.051. BOARD ELECTION; TERM

Sec. 1014.052. BALLOT PETITION

Sec. 1014.053. QUALIFICATIONS FOR OFFICE

Sec. 1014.054. BOARD VACANCY

Sec. 1014.055. OFFICERS

Sec. 1014.056. COMPENSATION; EXPENSES

Sec. 1014.057. VOTING REQUIREMENT

Sec. 1014.058. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

Sec. 1014.059. INDIVIDUAL LIABILITY OF DIRECTORS

Sec. 1014.060. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR

Sec. 1014.061. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1014.062. EMPLOYEES

Sec. 1014.063. LEGAL COUNSEL; OTHER PROFESSIONAL

SERVICES

Sec. 1014.064. RETIREMENT PROGRAM

[Sections 1014.065-1014.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1014.101. DISTRICT RESPONSIBILITY

Sec. 1014.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION AND DEBT

Sec. 1014.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1014.104. HOSPITAL SYSTEM

Sec. 1014.105. RULES

Sec. 1014.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1014.107. BUILDINGS

Sec. 1014.108. EMINENT DOMAIN

Sec. 1014.109. GIFTS AND ENDOWMENTS

Sec. 1014.110. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT

Sec. 1014.111. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1014.112. AUTHORITY TO SUE AND BE SUED

[Sections 1014.113-1014.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1014.151. BUDGET

Sec. 1014.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1014.153. AMENDMENTS TO BUDGET

Sec. 1014.154. RESTRICTION ON EXPENDITURES

Sec. 1014.155. FISCAL YEAR

Sec. 1014.156. ANNUAL AUDIT

Sec. 1014.157. FINANCIAL REPORT

Sec. 1014.158. DEPOSITORY

[Sections 1014.159-1014.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1014.201. GENERAL OBLIGATION BONDS

Sec. 1014.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1014.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1014.204. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1014.205. REVENUE OR SPECIAL OBLIGATION BONDS

Sec. 1014.206. CHARGES FOR SERVICES RENDERED

Sec. 1014.207. REFUNDING BONDS

Sec. 1014.208. BONDS EXEMPT FROM TAXATION

[Sections 1014.209-1014.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1014.251. IMPOSITION OF AD VALOREM TAX

Sec. 1014.252. TAX RATE

Sec. 1014.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1014. COLLINGSWORTH COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1014.001.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 Collingsworth County

Hospital District. (New.)

Sec.1014.002.AUTHORITY FOR CREATION. The 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. 262, Sec. 1 (part).)

Sec.1014.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 60th Leg., R.S., Ch. 262, Sec. 11 (part).)

Sec.1014.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Collingsworth

County, Texas. (Acts 60th Leg., R.S., Ch. 262, Sec. 1 (part).)

Sec. 1014.005. 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 60th

Leg., R.S., Ch. 262, Sec. 22 (part).)

Sec.1014.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 60th Leg., R.S., Ch. 262, Sec. 22 (part).)

[Sections 1014.007-1014.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1014.051.BOARD ELECTION; TERM. (a) The district is

governed by a board of seven 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.

purpose of the election. (Acts 60th Leg., R.S., Ch. 262, Secs. 4(a)

(part), (b) (part).)

Sec.1014.052.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 15 registered voters; and

(2) filed at least 25 days before the date of the

election. (Acts 60th Leg., R.S., Ch. 262, Sec. 4(b) (part).)

Sec.1014.053.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 60th Leg.,

R.S., Ch. 262, Sec. 4(c) (part).)

Sec.1014.054.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors by majority vote shall

appoint a director for the unexpired term. (Acts 60th Leg., R.S.,

Ch. 262, Sec. 4(b) (part).)

Sec.1014.055.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.

the vice president shall perform the president's duties and

exercise the president's powers under this chapter. (Acts 60th

Leg., R.S., Ch. 262, Sec. 4(c) (part).)

Sec.1014.056.COMPENSATION; EXPENSES. A director serves

without compensation but may receive actual expenses incurred in

attending to district business on approval of the expenses by the

remainder of the board. (Acts 60th Leg., R.S., Ch. 262, Sec. 4(c)

(part).)

Sec.1014.057.VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business. (Acts 60th Leg., R.S., Ch. 262, Sec. 4(d) (part).)

Sec.1014.058.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

(a) The board shall:

(1) keep an account of all board meetings and

proceedings; and

(2) maintain at the district's principal office all

district records and accounts, including all 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 60th Leg., R.S., Ch. 262, Sec. 4(d)

(part).)

Sec.1014.059.INDIVIDUAL LIABILITY OF DIRECTORS. A

director is individually liable only for the director's individual

misapplication of public money. (Acts 60th Leg., R.S., Ch. 262,

Sec. 5(a) (part).)

Sec. 1014.060. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR. (a) The board shall appoint a qualified person as

district administrator.

(b) The board may appoint an assistant administrator.

administrator are entitled to the compensation determined by the

board.

(d) The board may execute an employment contract with the

district administrator or assistant administrator for a term of not

more than three years. The employment contract may be renewed or

extended annually.

(e) 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 $25,000 that:

(1) is conditioned on the administrator performing the

administrator's duties; and

(2) contains other conditions the board may require.

(Acts 60th Leg., R.S., Ch. 262, Sec. 5(a) (part).)

Sec.1014.061.GENERAL DUTIES OF DISTRICT ADMINISTRATOR.

The district administrator shall:

(1) stay informed on the latest methods of hospital

administration and the care of hospital patients; and

(2) subject to the limitations prescribed by the

board:

(A) supervise the work and activities of the

district; and

(B) direct the affairs of the district. (Acts

60th Leg., R.S., Ch. 262, Sec. 5(a) (part).)

Sec.1014.062.EMPLOYEES. The board may employ nurses,

technicians, and other employees for the efficient operation of the

district or may provide that the district administrator has that

authority. (Acts 60th Leg., R.S., Ch. 262, Sec. 5(b) (part).)

Sec.1014.063.LEGAL COUNSEL; OTHER PROFESSIONAL SERVICES.

The board may employ legal counsel or contract for other

professional services as the board considers advisable. (Acts 60th

Leg., R.S., Ch. 262, Sec. 18.)

Sec.1014.064.RETIREMENT PROGRAM. The board may contract

with this state or the federal government to establish or continue a

retirement program for the benefit of the district's employees.

(Acts 60th Leg., R.S., Ch. 262, Sec. 5(b) (part).)

[Sections 1014.065-1014.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1014.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for:

(1) operating all hospital facilities for providing

medical and hospital care of the indigent persons in the district;

and

(2) providing medical and hospital care for the

district's needy inhabitants. (Acts 60th Leg., R.S., Ch. 262,

Secs. 2 (part), 21 (part).)

Sec. 1014.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION AND DEBT. Collingsworth County or a municipality in

Collingsworth County 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 60th Leg., R.S., Ch. 262,

Sec. 21 (part).)

Sec.1014.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the district's

hospitals and hospital system. (Acts 60th Leg., R.S., Ch. 262, Sec.

5(a) (part).)

Sec.1014.104.HOSPITAL SYSTEM. The district shall provide

for the establishment of a hospital system by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the buildings and equipment for

hospital purposes. (Acts 60th Leg., R.S., Ch. 262, Sec. 2 (part).)

Sec.1014.105.RULES. The board may adopt rules for the

operation of the district and as required to administer this

chapter. (Acts 60th Leg., R.S., Ch. 262, Secs. 5(a) (part), 12

(part).)

Sec.1014.106.PURCHASING AND ACCOUNTING PROCEDURES. (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) A purchase that involves the expenditure of more than

$2,000 may be made only after advertising in the manner provided by

Chapter 252 and Subchapter C, Chapter 262, Local Government Code.

(Acts 60th Leg., R.S., Ch. 262, Sec. 12 (part).)

Sec.1014.107.BUILDINGS. The board shall determine the

type, number, and location of buildings required to maintain an

adequate hospital system. (Acts 60th Leg., R.S., Ch. 262, Sec. 10.)

Sec.1014.108.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in any type of property located in district

territory if the interest is necessary or convenient for the

district to exercise a power, right, or privilege conferred by this

chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code. (Acts 60th

Leg., R.S., Ch. 262, Sec. 16.)

Sec.1014.109.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 60th Leg., R.S., Ch. 262,

Sec. 20.)

Sec. 1014.110. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

CARE AND TREATMENT. (a) The board may contract with a 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.

(b) The board may contract with this state or a federal

agency for the treatment of a sick or injured person for whom this

state or the agency is responsible. (Acts 60th Leg., R.S., Ch. 262,

Sec. 5(b) (part).)

Sec.1014.111.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 who are 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 costs of

the care and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's support. The amount ordered must be

proportionate to the person's financial ability and may not exceed

the actual per capita cost of maintenance.

(d) The district administrator may collect the amount from

the patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the 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 60th Leg., R.S., Ch. 262, Sec. 19.)

Sec.1014.112.AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued. (Acts 60th Leg., R.S., Ch.

262, Sec. 5(a) (part).)

[Sections 1014.113-1014.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1014.151.BUDGET. The district administrator shall

prepare an annual budget for approval by the board. (Acts 60th

Leg., R.S., Ch. 262, Sec. 6 (part).)

Sec.1014.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) Notice of the hearing must be published one time at

least 10 days before the date of the hearing.

R.S., Ch. 262, Sec. 6 (part).)

Sec.1014.153.AMENDMENTS TO BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 60th Leg., R.S., Ch. 262, Sec. 6 (part).)

Sec.1014.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 60th Leg., R.S., Ch. 262, Sec. 6 (part).)

Sec.1014.155.FISCAL YEAR. The district operates on a

fiscal year that begins on October 1 and ends on September 30.

(Acts 60th Leg., R.S., Ch. 262, Sec. 6 (part).)

Sec.1014.156.ANNUAL AUDIT. (a) The district annually

shall have an audit made of the district's financial condition.

(b) The audit shall be open to inspection at all times at the

district's principal office. (Acts 60th Leg., R.S., Ch. 262, Sec. 6

(part).)

Sec.1014.157.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 60th Leg., R.S., Ch. 262, Sec. 6 (part).)

Sec.1014.158.DEPOSITORY. (a) The board shall select one

or more banks in the district to serve as a depository for district

money.

(b) 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

on or before the maturity date of the principal and interest.

insured by the Federal Deposit Insurance Corporation, the money

must be secured in the manner provided by law for the security of

county funds.

(d) Membership on the district's board of an officer or

director of a bank does not disqualify the bank from being selected

as a depository bank. (Acts 60th Leg., R.S., Ch. 262, Sec. 13.)

[Sections 1014.159-1014.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1014.201.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 related to the purchase,

construction, acquisition, repair, or renovation of improvements,

and equipping the improvements for a hospital and the hospital

system, as determined by the board. (Acts 60th Leg., R.S., Ch. 262,

Sec. 7(a) (part).)

Sec.1014.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1014.201, the board shall impose an ad valorem tax on all

property in the district subject to district taxation 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 60th Leg., R.S., Ch. 262, Sec. 7(a) (part).)

Sec.1014.203.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.

(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 60th

Leg., R.S., Ch. 262, Sec. 7(a) (part).)

Sec.1014.204.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall attest the bonds as provided

by Chapter 618, Government Code. (Acts 60th Leg., R.S., Ch. 262,

Sec. 7(a) (part).)

Sec.1014.205.REVENUE OR SPECIAL OBLIGATION BONDS. (a)

The board may issue and sell revenue or special obligation bonds for

the purposes provided by Section 1014.201.

(b) Special obligation bonds must be payable from the

revenue of the district's entire hospital system, including that

portion originally acquired and all past or future extensions,

additions, or replacements, excluding taxes, after deducting the

cost of maintaining and operating the system. For purposes of this

subsection, the cost of maintaining and operating the system:

(1) may include only the items set forth and defined in

the resolution authorizing the bond issuance; and

(2) may not include the cost of providing medical or

hospital care for the district's needy inhabitants.

and operating expense for budget and tax purposes.

(d) The district may issue revenue bonds without an

election.

(e) Revenue bonds may be additionally secured by:

(1) a mortgage or deed of trust on real property;

(2) a chattel mortgage on the district's personal

property; or

(3) both.

(f) The board may issue bonds that are a junior lien on the

district's net revenue or property and additional parity bonds

under conditions specified in the bond resolution or trust

indenture.

(g) Money for the payment of not more than two years'

interest on the bonds and an amount the board estimates will be

required for maintenance and operating expenses during the first

year of operation may be set aside out of the proceeds from the sale

of the bonds.

(h) A revenue bond issued by the district must contain the

following provision: "The holder of the bond may not demand payment

of this bond or appurtenant coupons out of money raised or to be

raised by taxation." (Acts 60th Leg., R.S., Ch. 262, Secs. 8(a),

(b) (part), (c).)

Sec.1014.206.CHARGES FOR SERVICES RENDERED. If the board

issues revenue bonds, the board shall charge and collect rates for

services rendered by the hospital system that are sufficient to:

(1) pay the maintenance and operating expenses

described by Section 1014.205;

(2) pay the principal and interest on the bonds as each

becomes due; and

(3) create and maintain a bond reserve fund and other

funds as provided in the bond resolution or trust indenture. (Acts

60th Leg., R.S., Ch. 262, Sec. 8(b) (part).)

Sec.1014.207.REFUNDING BONDS. (a) The board 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 60th

Leg., R.S., Ch. 262, Secs. 7(a) (part), (b) (part).)

Sec.1014.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) the transfer and issuance of the bonds; and

(3) profits made in the sale of the bonds. (Acts 60th

Leg., R.S., Ch. 262, Sec. 11 (part).)

[Sections 1014.209-1014.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1014.251.IMPOSITION OF AD VALOREM TAX. (a) The board

shall impose a tax on property in the district subject to district

taxation.

(b) The board shall impose the tax to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district. (Acts 60th Leg., R.S., Ch. 262, Secs. 3(a) (part), 14

(part).)

Sec.1014.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed 75 cents on each $100 valuation of 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 60th

Leg., R.S., Ch. 262, Secs. 3(b) (part), 14 (part).)

Sec.1014.253.TAX ASSESSOR-COLLECTOR. The tax

assessor-collector of Collingsworth County shall assess and

collect taxes imposed by the district. (Acts 60th Leg., R.S., Ch.

262, Sec. 17 (part).)

CHAPTER 1015. FAIRFIELD HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1015.001. DEFINITIONS

Sec. 1015.002. AUTHORITY FOR OPERATION

Sec. 1015.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1015.004. DISTRICT TERRITORY

Sec. 1015.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1015.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1015.007-1015.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1015.051. BOARD ELECTION; TERM

Sec. 1015.052. NOTICE OF ELECTION

Sec. 1015.053. QUALIFICATIONS FOR OFFICE

Sec. 1015.054. BOND; RECORD OF BOND

Sec. 1015.055. BOARD VACANCY

Sec. 1015.056. OFFICERS

Sec. 1015.057. COMPENSATION; EXPENSES

Sec. 1015.058. VOTING REQUIREMENT

Sec. 1015.059. DISTRICT ADMINISTRATOR

Sec. 1015.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1015.061. ASSISTANT DISTRICT ADMINISTRATOR;

ATTORNEY

Sec. 1015.062. APPOINTMENT AND RECRUITMENT OF STAFF

AND EMPLOYEES

Sec. 1015.063. CONTINUING EDUCATION; RETRAINING

Sec. 1015.064. RETIREMENT BENEFITS

[Sections 1015.065-1015.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1015.101. DISTRICT RESPONSIBILITY

Sec. 1015.102. RESTRICTION ON MUNICIPAL TAXATION AND

DEBT

Sec. 1015.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1015.104. RULES

Sec. 1015.105. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1015.106. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1015.107. EMINENT DOMAIN

Sec. 1015.108. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 1015.109. GIFTS AND ENDOWMENTS

Sec. 1015.110. CONSTRUCTION CONTRACTS

Sec. 1015.111. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1015.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR SERVICES

Sec. 1015.113. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1015.114. REIMBURSEMENT FOR SERVICES

Sec. 1015.115. AUTHORITY TO SUE AND BE SUED

[Sections 1015.116-1015.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1015.151. BUDGET

Sec. 1015.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1015.153. AMENDMENTS TO BUDGET

Sec. 1015.154. RESTRICTION ON EXPENDITURES

Sec. 1015.155. FISCAL YEAR

Sec. 1015.156. ANNUAL AUDIT

Sec. 1015.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS

Sec. 1015.158. FINANCIAL REPORT

Sec. 1015.159. DEPOSITORY

Sec. 1015.160. SPENDING AND INVESTMENT RESTRICTIONS

Sec. 1015.161. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1015.162-1015.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1015.201. GENERAL OBLIGATION BONDS

Sec. 1015.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1015.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1015.204. REVENUE BONDS

Sec. 1015.205. REFUNDING BONDS

Sec. 1015.206. MATURITY OF BONDS

Sec. 1015.207. EXECUTION OF BONDS

Sec. 1015.208. BONDS EXEMPT FROM TAXATION

[Sections 1015.209-1015.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1015.251. IMPOSITION OF AD VALOREM TAX

Sec. 1015.252. TAX RATE

Sec. 1015.253. TAX ASSESSOR-COLLECTOR

[Sections 1015.254-1015.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1015.301. DISSOLUTION; ELECTION

Sec. 1015.302. NOTICE OF ELECTION

Sec. 1015.303. BALLOT

Sec. 1015.304. ELECTION RESULTS

Sec. 1015.305. DIRECTORS IN OFFICE AFTER DISSOLUTION

Sec. 1015.306. IMPOSITION OF TAX; TRANSFER OF DEBTS

Sec. 1015.307. DISPOSITION OR TRANSFER OF ASSETS AND

DEBTS

Sec. 1015.308. SPENDING RESTRICTIONS

Sec. 1015.309. REPORT; DISSOLUTION ORDER

CHAPTER 1015. FAIRFIELD HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1015.001.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 Fairfield Hospital District.

(Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 1.01.)

Sec.1015.002.AUTHORITY FOR OPERATION. The district

operates and is financed as provided by Section 9, Article IX, Texas

Constitution, and by this chapter. (Acts 70th Leg., 2nd C.S., Ch.

12, Sec. 1.02.)

Sec.1015.003.ESSENTIAL PUBLIC FUNCTION. The district is

a public entity performing an essential public function. (Acts

70th Leg., 2nd C.S., Ch. 12, Sec. 7.11 (part).)

Sec.1015.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of the Fairfield

Independent School District as those boundaries existed on August

3, 1987. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 1.03.)

Sec. 1015.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The state may not be obligated for the support or

maintenance of the district. (Acts 70th Leg., 2nd C.S., Ch. 12,

Sec. 10.01 (part).)

Sec.1015.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 10.01 (part).)

[Sections 1015.007-1015.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1015.051.BOARD ELECTION; TERM. (a) The district is

governed by a board of seven directors elected from the district at

large.

(b) Directors serve staggered four-year terms.

May of each even-numbered year to elect the appropriate number of

directors. (Acts 70th Leg., 2nd C.S., Ch. 12, Secs. 4.01(a),

4.03(a), (c).)

Sec.1015.052.NOTICE OF ELECTION. At least 35 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper with general circulation in the

district. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 4.04.)

Sec.1015.053.QUALIFICATIONS FOR OFFICE. (a) To be

eligible to be a candidate for or to serve as a director, a person

must be:

(1) a district resident; and

(2) a qualified voter.

(b) A district employee may not serve as a director. (Acts

70th Leg., 2nd C.S., Ch. 12, Sec. 4.06.)

Sec.1015.054.BOND; RECORD OF BOND. (a) Before assuming

the duties of office, each director must execute a bond for $5,000

that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

director's duties.

(b) The board may pay for a director's bond with district

money.

permanent records. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 4.07.)

Sec.1015.055.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 70th Leg., 2nd C.S., Ch. 12,

Sec. 4.08.)

Sec.1015.056.OFFICERS. (a) The board shall elect a

president and vice president from among its members.

(b) The board shall appoint a secretary, who need not be a

director.

(d) The board shall fill a vacancy in a board office for the

unexpired term. (Acts 70th Leg., 2nd C.S., Ch. 12, Secs. 4.09,

4.10.)

Sec.1015.057.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 70th Leg., 2nd C.S.,

Ch. 12, Sec. 4.11.)

Sec.1015.058.VOTING REQUIREMENT. A concurrence of a

majority of the directors voting is necessary in any matter

relating to district business. (Acts 70th Leg., 2nd C.S., Ch. 12,

Sec. 4.12.)

Sec.1015.059.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 is entitled to the compensation determined by the board.

the administrator must execute a bond in the amount set by the board

of not less than $5,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

administrator's duties under this chapter.

(d) The board may pay for the bond with district money.

(Acts 70th Leg., 2nd C.S., Ch. 12, Secs. 4.13(a) (part), (b) (part),

Sec.1015.060.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 general affairs of the district. (Acts

70th Leg., 2nd C.S., Ch. 12, Sec. 4.16.)

Sec.1015.061.ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.

(a) The board may appoint qualified persons as:

(1) the assistant district administrator; and

(2) the attorney for the district.

(b) The assistant district administrator and the attorney

for the district serve at the will of the board and are entitled to

the compensation determined by the board. (Acts 70th Leg., 2nd

C.S., Ch. 12, Secs. 4.13(a) (part), (b) (part), (c) (part).)

Sec. 1015.062. APPOINTMENT AND RECRUITMENT 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 necessary.

(b) The district may employ technicians, nurses, fiscal

agents, accountants, architects, additional attorneys, and other

necessary employees.

authority to employ persons for the district.

(d) The board may spend money to recruit physicians, nurses,

and other trained medical personnel. The board may pay the tuition

or other costs or expenses of a full-time medical student or nursing

student who:

(1) is enrolled in and is in good standing at an

accredited school, college, or university; and

(2) contractually agrees to become a district employee

in return for that assistance. (Acts 70th Leg., 2nd C.S., Ch. 12,

Secs. 4.14, 4.15, 4.18(a), (b).)

Sec.1015.063.CONTINUING EDUCATION; RETRAINING. The board

may spend money for continuing education and retraining of

employees. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 4.18(c).)

Sec.1015.064.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 70th Leg., 2nd C.S.,

Ch. 12, Sec. 4.17.)

[Sections 1015.065-1015.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1015.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for:

(1) operating hospital facilities; and

(2) providing medical and hospital care for the

district's needy inhabitants. (Acts 70th Leg., 2nd C.S., Ch. 12,

Sec. 5.02 (part).)

Sec.1015.102.RESTRICTION ON MUNICIPAL TAXATION AND DEBT.

The City of Fairfield may not impose a tax or issue bonds or other

obligations for hospital purposes or to provide medical care for

district residents. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec.

5.01(b).)

Sec.1015.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 70th Leg., 2nd C.S.,

Ch. 12, Sec. 5.03.)

Sec.1015.104.RULES. The board may adopt rules governing:

(1) the operation of the hospital and hospital system;

and

(2) the duties, functions, and responsibilities of

district staff and employees. (Acts 70th Leg., 2nd C.S., Ch. 12,

Sec. 5.04.)

Sec.1015.105.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method of making purchases and expenditures by

and for the district; and

(2) accounting and control procedures for the

district. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 5.05.)

Sec. 1015.106. 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; and

(2) mortgage or pledge the property as security for

the payment of the purchase price.

district.

(d) The board may sell or otherwise dispose of the property,

including facilities, or equipment, for the district. (Acts 70th

Leg., 2nd C.S., Ch. 12, Sec. 5.06.)

Sec.1015.107.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in property located in district territory if the

interest is necessary for the district to exercise a right or

authority conferred 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec.

5.09.)

Sec.1015.108.COST OF RELOCATING OR ALTERING PROPERTY. In

exercising the power of eminent domain, if the board requires

relocating, raising, lowering, rerouting, changing the grade of, or

altering the construction of any railroad, highway, pipeline,

electric transmission and electric distribution, telegraph, or

telephone line, conduit, pole, or facility, the district must bear

the actual cost of relocating, raising, lowering, rerouting,

changing the grade, or altering the construction to provide

comparable replacement, without enhancement of facilities, after

deducting the net salvage value derived from the old facility.

(Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 5.10.)

Sec.1015.109.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust for any

purpose and under any direction, limitation, or provision

prescribed in writing by the donor that is consistent with the

proper management of the district. (Acts 70th Leg., 2nd C.S., Ch.

12, Sec. 5.14.)

Sec.1015.110.CONSTRUCTION CONTRACTS. (a) The board may

enter into 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 competitive

bidding as provided by Subchapter B, Chapter 271, Local Government

Code. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 5.07(a).)

Sec.1015.111.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a hospital facility for the district. (Acts 70th Leg., 2nd C.S.,

Ch. 12, Sec. 5.08.)

Sec. 1015.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

SERVICES. The board may contract with a political subdivision of

this state or with a state or federal agency for the district to:

(1) furnish a mobile emergency medical service; or

(2) provide for the investigatory or welfare needs of

district inhabitants. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec.

5.13.)

Sec.1015.113.PAYMENT FOR TREATMENT; PROCEDURES.

(a) Each year, the board may set criteria for determining

residency, eligibility for a service, and the type of services

available.

(b) When a person who resides in the district is admitted as

a patient to a district facility, the district administrator may

have an inquiry made into the financial circumstances of:

(1) the patient; and

(2) a relative of the patient who is legally

responsible for the patient's support.

patient who is legally responsible for the patient's support cannot

pay for care and treatment provided by the district, the district

shall supply the care and treatment without charging the patient or

the patient's relative.

(d) On determining that the patient or a relative legally

responsible for the patient's support 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 the relative to

pay the district a specified amount each week. The amount must be

based on the person's ability to pay.

(e) The district administrator may collect the money owed to

the district from the patient's estate or from that of a relative

who was 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 relating to a person's ability to

pay or if the district administrator has any doubt concerning a

person's ability to pay, the board shall:

(1) call witnesses;

(2) hear and resolve the question; and

(3) issue a final order.

(g) The final order of the board may be appealed to a

district court in the county in which the district is located. The

substantial evidence rule applies to the appeal. (Acts 70th Leg.,

2nd C.S., Ch. 12, Secs. 5.11(a) (part), (b), (c), (d), (e), (f).)

Sec.1015.114.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 and treatment of a sick or injured person of that county,

municipality, or public hospital as provided by Chapter 61, Health

and Safety Code.

(b) The board shall require the sheriff of Freestone County

or the police chief of the City of Fairfield to reimburse the

district for the district's care and treatment of a person who is

confined in a jail facility of Freestone County or the City of

Fairfield and is not a district resident. A prisoner in the

Freestone County jail or any penal or police facility located in the

district does not qualify as a district resident unless the person

would meet the qualifications for residency notwithstanding the

incarceration, its duration, or the facts surrounding the

incarceration.

the state or federal government for that government to reimburse

the district for treatment of a sick or injured person. (Acts 70th

Leg., 2nd C.S., Ch. 12, Sec. 5.12.)

Sec.1015.115.AUTHORITY TO SUE AND BE SUED. The board may

sue and be sued on behalf of the district. (Acts 70th Leg., 2nd

C.S., Ch. 12, Sec. 5.15.)

[Sections 1015.116-1015.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1015.151.BUDGET. (a) The district administrator

shall prepare a proposed annual budget for the district.

(b) The proposed budget must contain a complete financial

statement, including a statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash on hand in each district fund;

(3) the amount of money received by the district from

all sources during the previous year;

(4) the amount of money available to the district from

all sources during the ensuing year;

(5) the amount of the balances expected at the end of

the year in which the budget is being prepared;

(6) the estimated amount of revenue and balances

available to cover the proposed budget; and

(7) the estimated tax rate required. (Acts 70th Leg.,

2nd C.S., Ch. 12, Sec. 6.04.)

Sec.1015.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) The board shall publish notice of the hearing in a

newspaper with general circulation in the district not later than

the 10th day before the date of the hearing.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the

taxpayers.

(e) The budget is effective only after adoption by the

board. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 6.05.)

Sec.1015.153.AMENDMENTS TO BUDGET. After adoption, the

annual budget may be amended on the board's approval. (Acts 70th

Leg., 2nd C.S., Ch. 12, Sec. 6.06.)

Sec.1015.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 6.07.)

Sec.1015.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that revenue bonds of the district

are outstanding; or

(2) more than once in a 24-month period. (Acts 70th

Leg., 2nd C.S., Ch. 12, Sec. 6.01.)

Sec.1015.156.ANNUAL AUDIT. The board annually shall have

an audit made of the district's financial condition. (Acts 70th

Leg., 2nd C.S., Ch. 12, Sec. 6.02.)

Sec. 1015.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS. The annual audit and other district records shall be open

to inspection during regular business hours at the district's

principal office. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 6.03.)

Sec.1015.158.FINANCIAL REPORT. As soon as practicable

after the close of the fiscal year, the district administrator

shall prepare for the board:

(1) a sworn statement of the amount of district money;

and

(2) an account of the disbursements of that money.

(Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 6.08.)

Sec.1015.159.DEPOSITORY. (a) The board shall select at

least one bank to serve as a depository for district money.

(b) District money, other than money invested as provided by

Section 1015.160(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. This subsection does not limit the power of the board to

place a part of district money on time deposit or to purchase

certificates of deposit.

amount that exceeds the maximum amount secured by the Federal

Deposit Insurance Corporation unless the bank has first executed a

bond or other security in an amount sufficient to secure from loss

the district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation. (Acts 70th Leg., 2nd C.S., Ch. 12,

Sec. 6.11.)

Sec.1015.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Sections 1015.110, 1015.161,

1015.201, 1015.204, and 1015.205, the district may not incur a debt

payable from district revenue other than the revenue on hand or to

be on hand in the current and immediately following district fiscal

years.

(b) The board may invest operating, depreciation, or

building reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec.

6.09.)

Sec.1015.161.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 money is not

available to meet authorized district obligations, which creates an

emergency.

(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.

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) Money obtained from a loan under this section may be

spent only for:

(1) a 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 70th Leg., 2nd C.S., Ch. 12,

Sec. 6.10.)

[Sections 1015.162-1015.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1015.201.GENERAL OBLIGATION BONDS. If authorized by

an election, the board may issue and sell general obligation bonds

in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements; and

(2) equip buildings or improvements for hospital

purposes. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 7.01.)

Sec.1015.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1015.201, 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

limit approved by the voters at the election authorizing the

imposition of the tax. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec.

7.02.)

Sec.1015.203.GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of district voters voting at an election

held for that purpose.

(b) The board may order a bond election.

(1) the nature and date of the election;

(2) the hours during which the polls will be open;

(3) the location of the polling places;

(4) the amount of the bonds to be authorized; and

(5) the maximum maturity of the bonds.

(d) Notice of a bond election shall be given as provided by

Section 1251.003, Government Code.

(e) The board shall declare the results of the election.

(Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 7.03.)

Sec.1015.204.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used 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.

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, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority.

(Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 7.04.)

Sec.1015.205.REFUNDING BONDS. (a) The board may issue

refunding bonds to refund an outstanding indebtedness issued or

assumed by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bonds

applied to the payment of the indebtedness to be refunded; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 70th

Leg., 2nd C.S., Ch. 12, Secs. 7.05(a), (c) (part).)

Sec.1015.206.MATURITY OF BONDS. District bonds must

mature not later than 50 years after the date of issuance. (Acts

70th Leg., 2nd C.S., Ch. 12, Sec. 7.06 (part).)

Sec.1015.207.EXECUTION OF BONDS. (a) The board president

shall execute district bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 70th Leg.,

2nd C.S., Ch. 12, Sec. 7.07.)

Sec.1015.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) any transaction relating to the bonds; and

(3) profits made in the sale of the bonds. (Acts 70th

Leg., 2nd C.S., Ch. 12, Sec. 7.11 (part).)

[Sections 1015.209-1015.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1015.251.IMPOSITION OF AD VALOREM TAX. (a) The board

may impose a tax on all property in the district subject to district

taxation.

(b) The tax may be used to meet the requirements of:

(1) district bonds;

(2) indebtedness assumed by the district; and

(3) the maintenance and operating expenses of the

district.

or interest on revenue bonds issued under this chapter. (Acts 70th

Leg., 2nd C.S., Ch. 12, Secs. 8.01(a) (part), (c), (d), 8.02(b).)

Sec.1015.252.TAX RATE. (a) The board may impose the tax

at a rate for the initial tax year not to exceed eight cents on each

$100 valuation of taxable property.

(b) The tax rate for all purposes may not exceed 12 cents on

each $100 valuation of all taxable property in the district.

of the district from sources other than taxation.

(d) The board may decrease the tax rate or may elect not to

impose a tax. (Acts 70th Leg., 2nd C.S., Ch. 12, Secs. 8.01(a)

(part), (b), 8.03 (part).)

Sec.1015.253.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 70th Leg., 2nd C.S., Ch. 12, Sec.

8.04(b).)

[Sections 1015.254-1015.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec.1015.301.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 that a dissolution election be held.

a petition requesting an election that is signed by at least 10

percent of the registered voters in the district. The board shall

order the election not later than the 60th day after the date the

petition is presented to the district.

(d) The order calling the election must state:

(1) the nature of the election, including the

proposition to appear on the ballot;

(2) the date of the election;

(3) the hours during which the polls will be open; and

(4) the location of the polling places.

(e) Section 41.001(a), Election Code, does not apply to an

election ordered under this section. (Acts 70th Leg., 2nd C.S., Ch.

12, Secs. 9.01, 9.02, 9.03, 9.05(b).)

Sec.1015.302.NOTICE OF ELECTION. (a) The board shall

give notice of an election under this subchapter by publishing once

a week for two consecutive weeks a substantial copy of the election

order in a newspaper with general circulation in the district.

(b) The first publication of the notice must appear at least

35 days before the date set for the election. (Acts 70th Leg., 2nd

C.S., Ch. 12, Sec. 9.04.)

Sec.1015.303.BALLOT. The ballot for an election under

this subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the Fairfield Hospital District."

(Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 9.06.)

Sec.1015.304.ELECTION RESULTS. (a) If the board finds

that the election results favor the proposition to dissolve the

district, the board shall:

(1) issue an order declaring the district be

dissolved; and

(2) specify in the order the date the dissolution

takes effect.

(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 election at which the voters disapproved the proposition.

(Acts 70th Leg., 2nd C.S., Ch. 12, Secs. 9.07(b), (c).)

Sec.1015.305.DIRECTORS IN OFFICE AFTER DISSOLUTION. The

directors in office on the date of the dissolution shall continue in

office, without further election, until:

(1) the affairs of the district are effectively

concluded; and

(2) all duties or acts required of the board are

completed. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 9.08(c).)

Sec.1015.306.IMPOSITION OF TAX; TRANSFER OF DEBTS. After

issuing the dissolution order, the board shall determine the debt

owed by the district and shall:

(1) impose on property subject to taxation in the

district a tax in proportion of the debt to the property value and

use the tax revenue to pay the district's bonds or satisfy other

district debts; or

(2) transfer the district's debts to any governmental

entity assuming responsibility after dissolution of the district

for providing hospital care in the territory included in the

district. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 9.08(a).)

Sec.1015.307.DISPOSITION OR TRANSFER OF ASSETS AND DEBTS.

(a) The board may not dispose of or transfer the district's assets

except for due compensation unless:

(1) the debts are transferred to another governmental

entity embracing the district; and

(2) the transferred assets are used for the benefit of

citizens formerly in the district.

(b) If the board transfers the district's debts to another

governmental entity, the board shall also transfer to that

governmental entity:

(1) title to land, buildings, improvements, and

equipment related to the hospital system owned by the district; and

(2) operating money and reserves for operating

expenses and money budgeted by the district to provide medical care

for district residents for the remainder of the fiscal year in which

the district is dissolved. (Acts 70th Leg., 2nd C.S., Ch. 12, Secs.

9.08(b), (d) (part).)

Sec.1015.308.SPENDING RESTRICTIONS. After the effective

date of the district's dissolution, the board may not spend any

money except:

(1) as authorized by law; and

(2) as necessary to pay reasonable dissolution

expenses and the district's legal debts incurred before that date.

(Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 9.08(d) (part).)

Sec.1015.309.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 Freestone County summarizing the board's actions in dissolving

the district. The report must include a summary of the district's

debts.

(b) Not later than the 10th day after the date the

Commissioners Court of Freestone County receives the report, the

commissioners court shall:

(1) determine whether the board has fulfilled the

requirements of this subchapter; and

(2) if the commissioners court determines the board

has fulfilled its duties, enter an order to that effect.

directors are discharged from liability under their bonds. (Acts

70th Leg., 2nd C.S., Ch. 12, Sec. 9.08(e).)

CHAPTER 1016. CONCHO COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1016.001. DEFINITIONS

Sec. 1016.002. AUTHORITY FOR OPERATION

Sec. 1016.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1016.004. DISTRICT TERRITORY

Sec. 1016.005. CORRECTION OF INVALID PROCEDURES

Sec. 1016.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1016.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1016.008-1016.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1016.051. BOARD ELECTION; TERM

Sec. 1016.052. NOTICE OF ELECTION

Sec. 1016.053. BALLOT PETITION

Sec. 1016.054. QUALIFICATIONS FOR OFFICE

Sec. 1016.055. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE

Sec. 1016.056. BOARD VACANCY

Sec. 1016.057. OFFICERS

Sec. 1016.058. VOTING REQUIREMENT

Sec. 1016.059. MEETINGS

Sec. 1016.060. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR

Sec. 1016.061. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1016.062. EMPLOYEES; APPOINTMENT OF STAFF

Sec. 1016.063. SENIORITY; RETIREMENT BENEFITS

[Sections 1016.064-1016.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1016.101. DISTRICT RESPONSIBILITY

Sec. 1016.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1016.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1016.104. HOSPITAL SYSTEM

Sec. 1016.105. RULES

Sec. 1016.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1016.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1016.108. EMINENT DOMAIN

Sec. 1016.109. GIFTS AND ENDOWMENTS

Sec. 1016.110. CONSTRUCTION OR PURCHASE CONTRACTS

Sec. 1016.111. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1016.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR HOSPITALIZATION

Sec. 1016.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1016.114. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1016.115. AUTHORITY TO SUE AND BE SUED

[Sections 1016.116-1016.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1016.151. BUDGET

Sec. 1016.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1016.153. AMENDMENTS TO BUDGET

Sec. 1016.154. RESTRICTION ON EXPENDITURES

Sec. 1016.155. FISCAL YEAR

Sec. 1016.156. AUDIT

Sec. 1016.157. INSPECTION OF AUDIT AND DISTRICT

RECORDS

Sec. 1016.158. FINANCIAL REPORT

Sec. 1016.159. DEPOSITORY

Sec. 1016.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1016.161-1016.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1016.201. GENERAL OBLIGATION BONDS

Sec. 1016.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1016.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1016.204. REVENUE BONDS

Sec. 1016.205. REFUNDING BONDS

Sec. 1016.206. MATURITY OF BONDS

Sec. 1016.207. EXECUTION OF BONDS

Sec. 1016.208. BONDS EXEMPT FROM TAXATION

[Sections 1016.209-1016.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1016.251. IMPOSITION OF AD VALOREM TAX

Sec. 1016.252. TAX RATE

CHAPTER 1016. CONCHO COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1016.001.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 Concho County Hospital

District. (New.)

Sec.1016.002.AUTHORITY FOR OPERATION. The district

operates in accordance with and has the rights, powers, and duties

provided by Section 9, Article IX, Texas Constitution, and by this

chapter. (Acts 62nd Leg., R.S., Ch. 877, Sec. 1 (part).)

Sec.1016.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 62nd Leg., R.S., Ch. 877, Sec. 21 (part).)

Sec.1016.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Concho County,

Texas. (Acts 62nd Leg., R.S., Ch. 877, Sec. 1 (part).)

Sec.1016.005.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 62nd Leg., R.S., Ch. 877, Sec. 23 (part).)

Sec. 1016.006. 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 62nd

Leg., R.S., Ch. 877, Sec. 20 (part).)

Sec.1016.007.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for

construction, maintenance, or improvement of a district facility.

(Acts 62nd Leg., R.S., Ch. 877, Sec. 20 (part).)

[Sections 1016.008-1016.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1016.051.BOARD ELECTION; TERM. (a) The board

consists of seven directors elected as follows:

(1) four directors, each of whom is a resident of a

different county commissioners precinct; and

(2) three directors from the district at large.

(b) A district voter may vote on each of the seven

directors.

four-year terms are established under Section 285.081, Health and

Safety Code. (Acts 62nd Leg., R.S., Ch. 877, Sec. 4(a) (part).)

Sec.1016.052.NOTICE OF ELECTION. At least 10 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper of general circulation in

Concho County. (Acts 62nd Leg., R.S., Ch. 877, Sec. 4(c) (part).)

Sec.1016.053.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 at least 25 days before the date of the

election. (Acts 62nd Leg., R.S., Ch. 877, Sec. 4(c) (part).)

Sec.1016.054.QUALIFICATIONS FOR OFFICE. A person may not

be elected or appointed as a director unless the person is:

(1) a district resident;

(2) a qualified voter;

(3) a freeholder; and

(4) at least 18 years of age when elected or appointed.

(Acts 62nd Leg., R.S., Ch. 877, Sec. 4(a) (part).)

Sec. 1016.055. BOND; RECORD OF BOND AND OATH OR AFFIRMATION

OF OFFICE. (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 the constitutional oath or

affirmation of office shall be deposited with the district's

depository bank for safekeeping. (Acts 62nd Leg., R.S., Ch. 877,

Sec. 4(a) (part).)

Sec.1016.056.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 62nd Leg., R.S., Ch. 877, Sec. 4(b) (part).)

Sec.1016.057.OFFICERS. The board shall elect a president

and a secretary from among its members. (Acts 62nd Leg., R.S., Ch.

877, Sec. 4(b) (part).)

Sec.1016.058.VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business. (Acts 62nd Leg., R.S., Ch. 877, Sec. 4(b) (part).)

Sec.1016.059.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 62nd Leg., R.S., Ch. 877, Sec. 4(b) (part).)

Sec. 1016.060. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR. (a) The board may appoint a qualified person as

district administrator.

(b) The board may appoint an assistant administrator.

administrator serve at the will of the board and are entitled to 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 other conditions the board may require.

(Acts 62nd Leg., R.S., Ch. 877, Sec. 6 (part).)

Sec.1016.061.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 62nd

Leg., R.S., Ch. 877, Sec. 6 (part).)

Sec.1016.062.EMPLOYEES; APPOINTMENT OF STAFF. (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 necessary.

(b) The district may employ fiscal agents, accountants,

architects, and attorneys the board considers proper.

authority to hire district employees, including technicians and

nurses. (Acts 62nd Leg., R.S., Ch. 877, Secs. 6 (part), 16.)

Sec.1016.063.SENIORITY; RETIREMENT BENEFITS. The board

may:

(1) adopt rules related 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

district 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. (Acts 62nd

Leg., R.S., Ch. 877, Sec. 6 (part).)

[Sections 1016.064-1016.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1016.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for providing hospital care for the district's

indigent residents. (Acts 62nd Leg., R.S., Ch. 877, Sec. 19

(part).)

Sec. 1016.102. 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 62nd Leg.,

R.S., Ch. 877, Sec. 19 (part).)

Sec.1016.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 62nd Leg., R.S., Ch.

877, Sec. 6 (part).)

Sec.1016.104.HOSPITAL SYSTEM. (a) The district shall

provide for the establishment of a hospital system by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the buildings and equipment for

hospital purposes.

(b) The hospital system may include:

(1) facilities for domiciliary care of the sick,

injured, or geriatric;

(2) facilities for outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses' domiciliaries and training

centers;

(6) blood banks;

(7) research centers or laboratories; and

(8) any other facilities the board considers necessary

for hospital care. (Acts 62nd Leg., R.S., Ch. 877, Secs. 2 (part),

10 (part).)

Sec.1016.105.RULES. The board may adopt rules governing

the operation of the hospital, the hospital system, and the

district's staff and employees. (Acts 62nd Leg., R.S., Ch. 877,

Sec. 6 (part).)

Sec.1016.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of making purchases and

expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 62nd

Leg., R.S., Ch. 877, Sec. 11 (part).)

Sec. 1016.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location of buildings required to maintain an adequate hospital

system.

(b) The board may lease all or part of the district's

buildings and other facilities on terms considered to be in the best

interest of the district's inhabitants. The term of the lease may

not exceed 25 years.

district's hospital system and mortgage or pledge the property as

security for the payment of the purchase price. A contract entered

into under this subsection must provide that the entire obligation

be retired not later than the fifth anniversary of the date of the

contract.

(d) The district may sell or otherwise dispose of any

property, including equipment, on terms the board finds are in the

best interest of the district's inhabitants. The board may not sell

or dispose of any real property unless the board affirmatively

finds that the property is not needed for the operation of the

hospital system. (Acts 62nd Leg., R.S., Ch. 877, Secs. 10 (part),

11 (part).)

Sec.1016.108.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 for the district to exercise

a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 62nd Leg., R.S., Ch. 877, Sec.

15.)

Sec.1016.109.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 62nd Leg., R.S., Ch. 877,

Sec. 18 (part).)

Sec.1016.110.CONSTRUCTION OR PURCHASE CONTRACTS. A

construction or purchase contract that involves the expenditure of

more than $2,000 may be made only after advertising in the manner

provided by Chapter 252 and Subchapter C, Chapter 262, Local

Government Code. (Acts 62nd Leg., R.S., Ch. 877, Sec. 11 (part).)

Sec.1016.111.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a district facility. (Acts 62nd Leg., R.S., Ch. 877, Sec. 10

(part).)

Sec. 1016.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

HOSPITALIZATION. (a) The board may contract with a county or

municipality located outside the district's boundaries for the

hospitalization of a sick or injured person of that county or

municipality.

(b) The board may contract with this state or a federal

agency for the hospitalization of a sick or injured person. (Acts

62nd Leg., R.S., Ch. 877, Sec. 6 (part).)

Sec. 1016.113. 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 and other services as to the hospital or

welfare needs of district inhabitants. (Acts 62nd Leg., R.S., Ch.

877, Sec. 6 (part).)

Sec.1016.114.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 who are 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 costs of

the care and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district administrator may collect the amount from

the patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the 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) The final order of the board may be appealed to the

district court. The substantial evidence rule applies to the

appeal. (Acts 62nd Leg., R.S., Ch. 877, Sec. 17.)

Sec.1016.115.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 62nd Leg., R.S., Ch. 877, Sec. 6

(part).)

[Sections 1016.116-1016.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1016.151.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 in 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 62nd Leg., R.S., Ch. 877, Sec. 7 (part).)

Sec.1016.152.NOTICE; HEARING; ADOPTION 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 have general

circulation in the district.

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 adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interest of the taxpayers

and that the law warrants. (Acts 62nd Leg., R.S., Ch. 877, Sec. 7

(part).)

Sec.1016.153.AMENDMENTS TO BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 62nd Leg., R.S., Ch. 877, Sec. 7 (part).)

Sec.1016.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 62nd Leg., R.S., Ch. 877, Sec. 7 (part).)

Sec.1016.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed more than once in a

24-month period. (Acts 62nd Leg., R.S., Ch. 877, Sec. 7 (part).)

Sec.1016.156.AUDIT. (a) The board 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 62nd Leg., R.S., Ch. 877,

Sec. 7 (part).)

Sec.1016.157.INSPECTION OF AUDIT AND DISTRICT RECORDS.

The audit and other district records shall be open to inspection at

the district's principal office. (Acts 62nd Leg., R.S., Ch. 877,

Sec. 7 (part).)

Sec.1016.158.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 disbursements of that

money. (Acts 62nd Leg., R.S., Ch. 877, Sec. 7 (part).)

Sec.1016.159.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 1016.160(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.

the power of the board to place a part of district money on time

deposit or to purchase certificates of deposit. (Acts 62nd Leg.,

R.S., Ch. 877, Sec. 12.)

Sec.1016.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Section 1016.107(c), this

subchapter, and Subchapter E, 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 reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 62nd Leg., R.S., Ch. 877, Secs. 6

(part), 11 (part).)

[Sections 1016.161-1016.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1016.201.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 or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 62nd Leg., R.S., Ch. 877, Sec. 8 (part).)

Sec.1016.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1016.201, 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 62nd Leg., R.S., Ch. 877, Sec. 8

(part).)

Sec.1016.203.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 election shall 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 maturity of the bonds; and

(6) the maximum interest rate of the bonds.

Section 1251.003, Government Code. (Acts 62nd Leg., R.S., Ch. 877,

Sec. 8 (part).)

Sec.1016.204.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used 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 hospitals.

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, and 264.046-264.049, Health and Safety Code, for

issuance of revenue bonds by a county hospital authority. (Acts

62nd Leg., R.S., Ch. 877, Sec. 9(b) (part).)

Sec.1016.205.REFUNDING BONDS. (a) The board may issue

refunding bonds to refund outstanding indebtedness issued or

assumed by the district.

(b) Refunding bonds may be:

(1) sold, with the proceeds of the refunding bonds

applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 62nd

Leg., R.S., Ch. 877, Secs. 9(a) (part), (b) (part).)

Sec.1016.206.MATURITY OF BONDS. District bonds must

mature not later than 40 years after the date of issuance. (Acts

62nd Leg., R.S., Ch. 877, Sec. 9(c) (part).)

Sec.1016.207.EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 62nd Leg.,

R.S., Ch. 877, Sec. 9(c) (part).)

Sec.1016.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) the transfer and issuance of the bonds; and

(3) profits made in the sale of the bonds. (Acts 62nd

Leg., R.S., Ch. 877, Sec. 21 (part).)

[Sections 1016.209-1016.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1016.251.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 or other obligations issued or assumed by the district for

hospital purposes;

(2) pay indebtedness incurred or assumed by the

district;

(3) provide for the operation and maintenance of the

district and the hospital or hospital system;

(4) make improvements and additions to the hospital

system; and

(5) acquire necessary sites for the hospital system by

purchase, lease, or condemnation. (Acts 62nd Leg., R.S., Ch. 877,

Secs. 5 (part), 13 (part).)

Sec.1016.252.TAX RATE. (a) 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.

(b) In setting the tax rate, the board shall consider the

income of the district from sources other than taxation. (Acts 62nd

Leg., R.S., Ch. 877, Secs. 5 (part), 13 (part).)

CHAPTER 1017. CULBERSON COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1017.001. DEFINITIONS

Sec. 1017.002. AUTHORITY FOR OPERATION

Sec. 1017.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1017.004. DISTRICT TERRITORY

Sec. 1017.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1017.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1017.007-1017.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1017.051. BOARD ELECTION; TERM

Sec. 1017.052. NOTICE OF ELECTION

Sec. 1017.053. BALLOT PETITION

Sec. 1017.054. QUALIFICATIONS FOR OFFICE

Sec. 1017.055. BOND; RECORD OF BOND

Sec. 1017.056. BOARD VACANCY

Sec. 1017.057. OFFICERS

Sec. 1017.058. COMPENSATION; EXPENSES

Sec. 1017.059. VOTING REQUIREMENT

Sec. 1017.060. DISTRICT ADMINISTRATOR

Sec. 1017.061. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1017.062. ASSISTANT DISTRICT ADMINISTRATOR;

ATTORNEY

Sec. 1017.063. APPOINTMENTS AND RECRUITMENT OF STAFF

AND EMPLOYEES

Sec. 1017.064. RETIREMENT BENEFITS

[Sections 1017.065-1017.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1017.101. DISTRICT RESPONSIBILITY

Sec. 1017.102. RESTRICTION ON CULBERSON COUNTY

TAXATION AND DEBT

Sec. 1017.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1017.104. RULES

Sec. 1017.105. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1017.106. MOBILE EMERGENCY MEDICAL SERVICE

Sec. 1017.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1017.108. EMINENT DOMAIN

Sec. 1017.109. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 1017.110. GIFTS AND ENDOWMENTS

Sec. 1017.111. CONSTRUCTION CONTRACTS

Sec. 1017.112. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1017.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR SERVICES

Sec. 1017.114. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1017.115. REIMBURSEMENT FOR SERVICE

Sec. 1017.116. AUTHORITY TO SUE AND BE SUED

[Sections 1017.117-1017.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCE PROVISIONS

Sec. 1017.151. BUDGET

Sec. 1017.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1017.153. AMENDMENTS TO BUDGET

Sec. 1017.154. RESTRICTION ON EXPENDITURES

Sec. 1017.155. FISCAL YEAR

Sec. 1017.156. ANNUAL AUDIT

Sec. 1017.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS

Sec. 1017.158. FINANCIAL REPORT

Sec. 1017.159. DEPOSITORY

Sec. 1017.160. SPENDING AND INVESTMENT RESTRICTIONS

Sec. 1017.161. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1017.162-1017.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1017.201. GENERAL OBLIGATION BONDS

Sec. 1017.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1017.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1017.204. REVENUE BONDS

Sec. 1017.205. REFUNDING BONDS

Sec. 1017.206. MATURITY OF BONDS

Sec. 1017.207. EXECUTION OF BONDS

Sec. 1017.208. BONDS EXEMPT FROM TAXATION

[Sections 1017.209-1017.250 reserved for expansion]

SUBCHAPTER F. AD VALOREM TAX

Sec. 1017.251. IMPOSITION OF AD VALOREM TAX

Sec. 1017.252. TAX RATE

Sec. 1017.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1017. CULBERSON COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1017.001.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 Culberson County Hospital

District. (Acts 69th Leg., R.S., Ch. 515, Sec. 1.01.)

Sec.1017.002.AUTHORITY FOR OPERATION. The district

operates and is financed as provided by Section 9, Article IX, Texas

Constitution, and by this chapter. (Acts 69th Leg., R.S., Ch. 515,

Sec. 1.02.)

Sec.1017.003.ESSENTIAL PUBLIC FUNCTION. The district is

a public entity performing an essential public function. (Acts

69th Leg., R.S., Ch. 515, Sec. 7.11 (part).)

Sec.1017.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Culberson County,

Texas. (Acts 69th Leg., R.S., Ch. 515, Sec. 1.03.)

Sec. 1017.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The state may not become obligated for the support or

maintenance of the district. (Acts 69th Leg., R.S., Ch. 515, Sec.

9.01 (part).)

Sec.1017.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 69th Leg., R.S., Ch. 515, Sec. 9.01 (part).)

[Sections 1017.007-1017.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1017.051.BOARD ELECTION; TERM. (a) The district is

governed by a board 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. (Acts 69th Leg., R.S., Ch. 515, Secs. 4.01(a),

4.03(a), (c).)

Sec.1017.052.NOTICE OF ELECTION. At least 35 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper with general circulation in the

district. (Acts 69th Leg., R.S., Ch. 515, Sec. 4.04.)

Sec.1017.053.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 one registered voter of the

district as determined by the most recent official list of

registered voters; and

(2) filed not later than the 31st day before the date

of the election. (Acts 69th Leg., R.S., Ch. 515, Sec. 4.05.)

Sec.1017.054.QUALIFICATIONS FOR OFFICE. (a) To be

eligible to be a candidate for or to serve as a director, a person

must be:

(1) a district resident; and

(2) a qualified voter.

(b) A district employee may not serve as a director. (Acts

69th Leg., R.S., Ch. 515, Sec. 4.06.)

Sec.1017.055.BOND; RECORD OF BOND. (a) Before assuming

the duties of office, each director must execute a bond for $5,000

that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

director's duties.

(b) The board may pay for a director's bond with district

money.

district. (Acts 69th Leg., R.S., Ch. 515, Sec. 4.07.)

Sec.1017.056.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 69th Leg., R.S., Ch. 515,

Sec. 4.08.)

Sec.1017.057.OFFICERS. (a) The board shall elect a

president and a vice president from among its members.

(b) The board shall appoint a secretary, who need not be a

director.

(d) The board shall fill a vacancy in a board office for the

unexpired term. (Acts 69th Leg., R.S., Ch. 515, Secs. 4.09, 4.10.)

Sec.1017.058.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 69th Leg., R.S., Ch.

515, Sec. 4.11.)

Sec.1017.059.VOTING REQUIREMENT. A concurrence of a

majority of the directors voting is necessary in any matter

relating to district business. (Acts 69th Leg., R.S., Ch. 515, Sec.

4.12.)

Sec.1017.060.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 is entitled to the compensation determined by the board.

the administrator must execute a bond in the amount set by the board

of not less than $5,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

administrator's duties under this chapter.

(d) The board may pay for the bond with district money.

(Acts 69th Leg., R.S., Ch. 515, Secs. 4.13(a) (part), (b) (part),

Sec.1017.061.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 general affairs of the district. (Acts

69th Leg., R.S., Ch. 515, Sec. 4.17.)

Sec.1017.062.ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.

(a) The board may appoint qualified persons as:

(1) the assistant district administrator; and

(2) the attorney for the district.

(b) The assistant district administrator and the attorney

for the district serve at the will of the board and are entitled to

the compensation determined by the board. (Acts 69th Leg., R.S.,

Ch. 515, Secs. 4.13(a) (part), (b) (part), (c) (part).)

Sec. 1017.063. APPOINTMENTS AND RECRUITMENT 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 necessary.

(b) The district may employ technicians, nurses, fiscal

agents, accountants, architects, additional attorneys, and other

necessary employees.

authority to employ persons for the district.

(d) The board may spend money to recruit physicians, nurses,

or other trained medical personnel. The board may pay the tuition or

other costs or expenses of a full-time medical student or nursing

student who:

(1) is enrolled in and is in good standing at an

accredited school, college, or university; and

(2) contractually agrees to become a district employee

in return for that assistance. (Acts 69th Leg., R.S., Ch. 515,

Secs. 4.14, 4.15, 4.16.)

Sec.1017.064.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 69th Leg., R.S., Ch.

515, Sec. 4.18.)

[Sections 1017.065-1017.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1017.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for:

(1) operating hospital facilities; and

(2) providing medical and hospital care for the

district's needy inhabitants. (Acts 69th Leg., R.S., Ch. 515, Sec.

5.02 (part).)

Sec. 1017.102. RESTRICTION ON CULBERSON COUNTY TAXATION AND

DEBT. Culberson County may not impose a tax or issue bonds or other

obligations for hospital purposes or to provide medical care for

district residents. (Acts 69th Leg., R.S., Ch. 515, Sec. 5.01(b).)

Sec.1017.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 69th Leg., R.S., Ch.

515, Sec. 5.03.)

Sec.1017.104.RULES. The board may adopt rules governing:

(1) the operation of the hospital and hospital system;

and

(2) the duties, functions, and responsibilities of

district staff and employees. (Acts 69th Leg., R.S., Ch. 515, Sec.

5.04.)

Sec.1017.105.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method of making purchases and expenditures by

and for the district; and

(2) accounting and control procedures for the

district. (Acts 69th Leg., R.S., Ch. 515, Sec. 5.05.)

Sec.1017.106.MOBILE EMERGENCY MEDICAL SERVICE. The

district may operate or provide for the operation of a mobile

emergency medical service. (Acts 69th Leg., R.S., Ch. 515, Sec.

5.02 (part).)

Sec. 1017.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location of buildings required to maintain an adequate hospital

system and the type of equipment necessary for hospital care. The

hospital system may include facilities and equipment to provide for

domiciliary care and treatment of geriatric patients.

(b) The board may:

(1) lease or acquire property, including facilities

and equipment, for the use of the district; and

(2) mortgage or pledge the property as security for

the payment of the purchase price.

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 the 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 69th Leg., R.S., Ch.

515, Sec. 5.06.)

Sec.1017.108.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in property located in district territory if the

property interest is necessary to exercise a right or authority

conferred 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 money in the trial court or

execute a bond as provided by Section 21.021(a)(2) or (3), Property

Code.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 69th Leg., R.S., Ch. 515, Sec.

5.09.)

Sec.1017.109.COST OF RELOCATING OR ALTERING PROPERTY. In

exercising the power of eminent domain, if the board requires

relocating, raising, lowering, rerouting, changing the grade of, or

altering the construction of any railroad, highway, pipeline, or

electric transmission, telegraph, or telephone line, conduit,

pole, or facility, the district must bear the actual cost of

relocating, raising, lowering, rerouting, changing the grade, or

altering the construction to provide comparable replacement

without enhancement of facilities, after deducting the net salvage

value derived from the old facility. (Acts 69th Leg., R.S., Ch.

515, Sec. 5.10.)

Sec.1017.110.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust for any

purpose and under any direction, limitation, or other provision

prescribed in writing by the donor that is consistent with the

proper management of the district. (Acts 69th Leg., R.S., Ch. 515,

Sec. 5.14.)

Sec.1017.111.CONSTRUCTION CONTRACTS. (a) The board may

enter into 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 competitive

bidding as provided by Subchapter B, Chapter 271, Local Government

Code. (Acts 69th Leg., R.S., Ch. 515, Sec. 5.07(a).)

Sec.1017.112.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a hospital facility for the district. (Acts 69th Leg., R.S., Ch.

515, Sec. 5.08.)

Sec. 1017.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

SERVICES. The board may contract with a political subdivision of

the state or with a state or federal agency for the district to:

(1) furnish a mobile emergency medical service; or

(2) provide for the investigatory or welfare needs of

district inhabitants. (Acts 69th Leg., R.S., Ch. 515, Sec. 5.13.)

Sec.1017.114.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a person who resides in the district is admitted as a patient

to a district facility, the district administrator may have an

inquiry made into the financial circumstances of:

(1) the patient; and

(2) a relative of the patient who is legally

responsible for the patient's support.

(b) To the extent that a patient or a relative of the patient

legally responsible for the patient's support cannot pay for care

and treatment provided by the district, the district shall supply

the care and treatment without charging the patient or the

patient's relative.

responsible for the patient's support can pay for all or any 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 the relative to

pay the district a specified amount each week. The amount must be

based on the person's ability to pay.

(d) The district administrator may collect the amount owed

to the district from the patient's estate or from that of a relative

who was legally responsible for the patient's support in the manner

provided by law for collection of expenses in the last illness of a

deceased person.

(e) If there is a dispute relating to a person's ability to

pay or if the district administrator has any doubt concerning a

person's ability to pay, the board shall:

(1) call witnesses;

(2) hear and resolve the question; and

(3) issue a final order.

(f) The final order of the board may be appealed to a

district court in Culberson County. The substantial evidence rule

applies to the appeal. (Acts 69th Leg., R.S., Ch. 515, Sec. 5.11.)

Sec.1017.115.REIMBURSEMENT FOR SERVICE. (a) The board

shall require a county or municipality located outside the district

to reimburse the district for the district's care and treatment of a

sick or injured person of that county or municipality.

(b) The board shall require the sheriff of Culberson County

to reimburse the district for the district's care and treatment of a

person who is confined in a jail facility of Culberson County and is

not a district resident.

the state or federal government for that government to reimburse

the district for treatment of a sick or injured person. (Acts 69th

Leg., R.S., Ch. 515, Sec. 5.12.)

Sec.1017.116.AUTHORITY TO SUE AND BE SUED. The board may

sue and be sued on behalf of the district. (Acts 69th Leg., R.S.,

Ch. 515, Sec. 5.15.)

[Sections 1017.117-1017.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCE PROVISIONS

Sec.1017.151.BUDGET. (a) The district administrator

shall prepare a proposed annual budget for the district.

(b) The proposed budget must contain a complete financial

statement, including a statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash on hand in each district fund;

(3) the amount of money received by the district from

all sources during the previous year;

(4) the amount of money available to the district from

all sources during the ensuing year;

(5) the amount of the balances expected at the end of

the year in which the budget is being prepared;

(6) the estimated amount of revenue and balances

available to cover the proposed budget; and

(7) the estimated tax rate required. (Acts 69th Leg.,

R.S., Ch. 515, Sec. 6.04.)

Sec.1017.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) The board shall publish notice of the hearing in a

newspaper with general circulation in the district not later than

the 10th day before the date of the hearing.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board determines to be in the interests of the

taxpayers.

(e) The budget is effective only after adoption by the

board. (Acts 69th Leg., R.S., Ch. 515, Sec. 6.05.)

Sec.1017.153.AMENDMENTS TO BUDGET. After adoption, the

annual budget may be amended on the board's approval. (Acts 69th

Leg., R.S., Ch. 515, Sec. 6.06.)

Sec.1017.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 69th Leg., R.S., Ch. 515, Sec. 6.07.)

Sec.1017.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that revenue bonds of the district

are outstanding; or

(2) more than once in a 24-month period. (Acts 69th

Leg., R.S., Ch. 515, Sec. 6.01.)

Sec.1017.156.ANNUAL AUDIT. The board annually shall have

an audit made of the district's financial condition. (Acts 69th

Leg., R.S., Ch. 515, Sec. 6.02.)

Sec. 1017.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS. The annual audit and other district records shall be open

to inspection during regular business hours at the district's

principal office. (Acts 69th Leg., R.S., Ch. 515, Sec. 6.03.)

Sec.1017.158.FINANCIAL REPORT. As soon as practicable

after the close of the fiscal year, the district administrator

shall prepare for the board:

(1) a sworn statement of the amount of district money;

and

(2) an account of the disbursements of that money.

(Acts 69th Leg., R.S., Ch. 515, Sec. 6.08.)

Sec.1017.159.DEPOSITORY. (a) The board shall select at

least one bank to serve as a depository for district money.

(b) District money, other than money invested as provided by

Section 1017.160(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. This subsection does not limit the power of the board to

place a part of district money on time deposit or to purchase

certificates of deposit.

amount that exceeds the maximum amount secured by the Federal

Deposit Insurance Corporation unless the bank first executes a bond

or other security in an amount sufficient to secure from loss the

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation. (Acts 69th Leg., R.S., Ch. 515,

Sec. 6.10.)

Sec.1017.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as provided by this section and Sections 1017.063(d),

1017.111, 1017.201, 1017.204, and 1017.205, the district may not

incur a debt payable from district revenue other than the revenue on

hand or to be on hand in the current and immediately following

district fiscal years.

(b) The board may invest operating, depreciation, or

building reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 69th Leg., R.S., Ch. 515, Secs.

6.09(a), (b).)

Sec.1017.161.AUTHORITY TO BORROW MONEY; SECURITY. (a)

The board may borrow money at a rate of not more than 10 percent a

year on district notes to pay the obligations if the board declares

that money is not available to meet authorized district

obligations, which creates an emergency.

(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.

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) Money obtained from a loan under this section may be

spent only for:

(1) a 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 69th Leg., R.S., Ch. 515, Sec. 6.09(c).)

[Sections 1017.162-1017.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1017.201.GENERAL OBLIGATION BONDS. If authorized by

an election, the board may issue and sell general obligation bonds

in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements;

(2) equip buildings or improvements for hospital

purposes; or

(3) acquire and operate a mobile emergency medical

service. (Acts 69th Leg., R.S., Ch. 515, Sec. 7.01.)

Sec.1017.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1017.201, 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

limit approved by the voters at the election authorizing the

imposition of a tax. (Acts 69th Leg., R.S., Ch. 515, Sec. 7.02.)

Sec.1017.203.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.

(b) The board may order a bond election.

(1) the nature and date of the election;

(2) the hours during which the polls will be open;

(3) the location of the polling places;

(4) the amount of the bonds to be authorized; and

(5) the maximum maturity of the bonds.

(d) Notice of a bond election shall be given as provided by

Section 1251.003, Government Code.

(e) The board shall declare the results of the election.

(Acts 69th Leg., R.S., Ch. 515, Sec. 7.03.)

Sec.1017.204.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes;

(2) acquire sites to be used for hospital purposes; or

(3) acquire and operate a mobile emergency medical

service to assist the district in carrying out its hospital

purposes.

(b) The bonds must be payable from and secured by a pledge of

all or part of the revenue derived from the operation of the

district's hospital system.

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, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority.

(Acts 69th Leg., R.S., Ch. 515, Sec. 7.04.)

Sec.1017.205.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 the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 69th

Leg., R.S., Ch. 515, Secs. 7.05(a), (c) (part).)

Sec.1017.206.MATURITY OF BONDS. District bonds must

mature not later than 50 years after the date of issuance. (Acts

69th Leg., R.S., Ch. 515, Sec. 7.06 (part).)

Sec.1017.207.EXECUTION OF BONDS. (a) The board president

shall execute district bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 69th Leg.,

R.S., Ch. 515, Sec. 7.07.)

Sec.1017.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) any transaction relating to the bonds; and

(3) profits made in the sale of the bonds. (Acts 69th

Leg., R.S., Ch. 515, Sec. 7.11 (part).)

[Sections 1017.209-1017.250 reserved for expansion]

SUBCHAPTER F. AD VALOREM TAX

Sec.1017.251.IMPOSITION OF AD VALOREM TAX. (a) The board

may impose a tax on all property in the district subject to district

taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

or interest on revenue bonds issued under this chapter. (Acts 69th

Leg., R.S., Ch. 515, Secs. 8.01(a) (part), (c), (d), 8.02(b).)

Sec.1017.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed the limit approved by the voters at the

election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on

each $100 valuation of all taxable property in the district.

income of the district from sources other than taxation. (Acts 69th

Leg., R.S., Ch. 515, Secs. 8.01(a) (part), (b), 8.03 (part).)

Sec.1017.253.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 69th Leg., R.S., Ch. 515, Sec.

8.04(b).)

CHAPTER 1018. DALLAM-HARTLEY COUNTIES HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1018.001. DEFINITIONS

Sec. 1018.002. AUTHORITY FOR OPERATION

Sec. 1018.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1018.004. DISTRICT TERRITORY

Sec. 1018.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1018.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1018.007-1018.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1018.051. BOARD APPOINTMENT; TERM

Sec. 1018.052. QUALIFICATIONS FOR OFFICE

Sec. 1018.053. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE

Sec. 1018.054. BOARD VACANCY

Sec. 1018.055. OFFICERS

Sec. 1018.056. COMPENSATION; EXPENSES

Sec. 1018.057. VOTING REQUIREMENT

Sec. 1018.058. DISTRICT ADMINISTRATOR

Sec. 1018.059. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1018.060. ATTORNEY; ASSISTANT DISTRICT

ADMINISTRATOR

Sec. 1018.061. EMPLOYEES; APPOINTMENT OF STAFF

Sec. 1018.062. RECRUITMENT OF MEDICAL STAFF AND

EMPLOYEES

Sec. 1018.063. HEALTH CARE EDUCATIONAL PROGRAMS

Sec. 1018.064. LIABILITY INSURANCE; INDEMNIFICATION

[Sections 1018.065-1018.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1018.101. DISTRICT RESPONSIBILITY

Sec. 1018.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1018.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1018.104. HOSPITAL SYSTEM

Sec. 1018.105. RULES

Sec. 1018.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1018.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1018.108. ASSISTED LIVING FACILITY

Sec. 1018.109. EMINENT DOMAIN

Sec. 1018.110. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 1018.111. GIFTS AND ENDOWMENTS

Sec. 1018.112. CONSTRUCTION CONTRACTS

Sec. 1018.113. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1018.114. CONTRACTS FOR MEDICAL AND HOSPITAL CARE

Sec. 1018.115. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT

Sec. 1018.116. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1018.117. JOINT ADMINISTRATION OR DELIVERY OF

HEALTH CARE SERVICES

Sec. 1018.118. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1018.119. NONPROFIT CORPORATION

Sec. 1018.120. AUTHORITY TO SUE AND BE SUED

[Sections 1018.121-1018.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1018.151. BUDGET

Sec. 1018.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1018.153. AMENDMENTS TO BUDGET

Sec. 1018.154. RESTRICTION ON EXPENDITURES

Sec. 1018.155. FISCAL YEAR

Sec. 1018.156. ANNUAL AUDIT

Sec. 1018.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS

Sec. 1018.158. FINANCIAL REPORT

Sec. 1018.159. DEPOSITORY

Sec. 1018.160. SPENDING AND INVESTMENT RESTRICTIONS

Sec. 1018.161. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1018.162-1018.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1018.201. GENERAL OBLIGATION BONDS

Sec. 1018.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1018.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1018.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1018.205. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1018.206. REVENUE BONDS

Sec. 1018.207. REFUNDING BONDS

Sec. 1018.208. BONDS EXEMPT FROM TAXATION

[Sections 1018.209-1018.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1018.251. IMPOSITION OF AD VALOREM TAX

Sec. 1018.252. TAX RATE

Sec. 1018.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR

Sec. 1018.254. ASSESSMENT AND COLLECTION BY DISTRICT

ASSESSOR-COLLECTOR

CHAPTER 1018. DALLAM-HARTLEY COUNTIES HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1018.001.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 Dallam-Hartley Counties

Hospital District. (New.)

Sec.1018.002.AUTHORITY FOR OPERATION. The district

operates and is administered and financed in accordance with

Section 9, Article IX, Texas Constitution, and has the rights,

powers, and duties provided by this chapter. (Acts 66th Leg., R.S.,

Ch. 128, Sec. 1 (part).)

Sec.1018.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 66th Leg., R.S., Ch. 128, Sec. 19 (part).)

Sec.1018.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Dallam and Hartley

Counties, Texas, except that the district does not include land

located in another hospital district on the date the Dallam-Hartley

Counties Hospital District was created. (Acts 66th Leg., R.S., Ch.

128, Sec. 1 (part).)

Sec. 1018.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The support or maintenance of the district may not

become a charge against or obligation of this state. (Acts 66th

Leg., R.S., Ch. 128, Sec. 18 (part).)

Sec.1018.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 66th Leg., R.S., Ch. 128, Sec. 18 (part).)

[Sections 1018.007-1018.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1018.051.BOARD APPOINTMENT; TERM. (a) The board

consists of seven directors appointed as follows:

(1) three directors appointed by the Commissioners

Court of Dallam County;

(2) three directors appointed by the Commissioners

Court of Hartley County; and

(3) one director jointly appointed by the six

directors appointed under Subdivisions (1) and (2).

(b) The directors shall make an appointment under

Subsection (a)(3) not later than the 20th day after the date the

last director is appointed under Subsection (a)(1) or (2).

the initial director.

(d) Directors serve staggered two-year terms. (Acts 66th

Leg., R.S., Ch. 128, Sec. 3(e) (part).)

Sec.1018.052.QUALIFICATIONS FOR OFFICE. (a) A person may

not be appointed as a director unless the person is:

(1) a district resident; and

(2) a qualified voter.

(b) A person is not eligible to serve as a director if the

person is:

(1) the district administrator;

(2) the attorney for the district; or

(3) a district employee. (Acts 66th Leg., R.S., Ch.

128, Sec. 3(g).)

Sec. 1018.053. BOND; RECORD OF BOND AND OATH OR AFFIRMATION

OF OFFICE. (a) Each director shall execute a good and sufficient

bond for $5,000 that is:

(1) approved by the commissioners courts of Dallam and

Hartley Counties;

(2) payable to the district; and

(3) conditioned on the faithful performance of the

director's duties.

(b) The district may provide for a director's bond with

district money.

affirmation of office shall be kept in the district's permanent

records. (Acts 66th Leg., R.S., Ch. 128, Sec. 3(f).)

Sec.1018.054.BOARD VACANCY. A vacancy in the office of

director shall be filled for the unexpired term by appointment in

the same manner as the office was previously filled under Section

1018.051. (Acts 66th Leg., R.S., Ch. 128, Sec. 3(e) (part).)

Sec.1018.055.OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its

members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

unexpired term. (Acts 66th Leg., R.S., Ch. 128, Sec. 3(h) (part).)

Sec.1018.056.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 66th Leg., R.S., Ch.

128, Sec. 3(h) (part).)

Sec.1018.057.VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business. (Acts 66th Leg., R.S., Ch. 128, Sec. 3(h) (part).)

Sec.1018.058.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 is entitled to the compensation determined by the board.

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 other conditions the board may require.

(Acts 66th Leg., R.S., Ch. 128, Sec. 4(a) (part).)

Sec.1018.059.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 66th

Leg., R.S., Ch. 128, Sec. 4(a) (part).)

Sec.1018.060.ATTORNEY; ASSISTANT DISTRICT ADMINISTRATOR.

(a) The board may appoint qualified persons as:

(1) the attorney for the district; and

(2) the assistant district administrator.

(b) The attorney for the district and the assistant district

administrator serve at the will of the board and are entitled to the

compensation determined by the board. (Acts 66th Leg., R.S., Ch.

128, Sec. 4(a) (part).)

Sec.1018.061.EMPLOYEES; APPOINTMENT OF STAFF. (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 necessary.

(b) The district may employ fiscal agents, accountants,

architects, and attorneys the board considers proper.

authority to hire district employees, including technicians and

nurses. (Acts 66th Leg., R.S., Ch. 128, Secs. 4(a) (part), 14.)

Sec.1018.062.RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES.

The board may spend district money, enter into agreements, and take

other necessary action to recruit physicians and other persons for

appointment to the district's medical staff or for employment with

the district, including:

(1) advertising and marketing;

(2) paying travel, recruiting, and relocation

expenses;

(3) providing a loan or scholarship to a physician or

other person who:

(A) is currently enrolled in health care

education courses at an institution of higher education; and

(B) contractually agrees to become a district

employee; and

(4) providing on a rent-free basis or subsidizing the

cost of office space or other facilities for a health care

professional, including a physician. (Acts 66th Leg., R.S., Ch.

128, Sec. 4B(a).)

Sec.1018.063.HEALTH CARE EDUCATIONAL PROGRAMS. The board

may spend district money, enter into agreements, or take other

necessary action to conduct, participate in, or assist in providing

health care educational programs for current or prospective staff

members or employees. (Acts 66th Leg., R.S., Ch. 128, Sec. 4B(b).)

Sec.1018.064.LIABILITY INSURANCE; INDEMNIFICATION. (a)

For an officer, director, board appointee, member of the medical

staff, or district employee, the board may:

(1) purchase and maintain liability insurance to

protect the person from any liability that arises from performing a

duty for the district or at a district facility; and

(2) enter into and perform an agreement to defend or

indemnify the person with regard to a claim, cost, expense, or

liability resulting from duties performed for the district or at a

district facility.

(b) The board may establish a self-insurance program to fund

an indemnity obligation. (Acts 66th Leg., R.S., Ch. 128, Secs.

4(b), (c).)

[Sections 1018.065-1018.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1018.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for:

(1) operating all hospital facilities; and

(2) providing medical and hospital care for the

district's needy inhabitants. (Acts 66th Leg., R.S., Ch. 128, Sec.

17 (part).)

Sec. 1018.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT. A political subdivision located wholly or

partly within the district may not impose a tax or issue bonds or

other obligations for hospital purposes or to provide medical care

for district residents. (Acts 66th Leg., R.S., Ch. 128, Sec. 17

(part).)

Sec.1018.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 66th Leg., R.S., Ch.

128, Sec. 4(a) (part).)

Sec.1018.104.HOSPITAL SYSTEM. (a) The district may:

(1) provide for the establishment of a hospital system

by:

(A) purchasing, constructing, acquiring,

repairing, or renovating buildings and equipment;

(B) equipping the buildings; and

purposes; or

(2) provide hospital services by lease or contract.

(b) The hospital system may include any facilities the board

considers necessary for hospital care. (Acts 66th Leg., R.S., Ch.

128, Secs. 2 (part), 8(a) (part).)

Sec.1018.105.RULES. The board may adopt rules governing

the operation of the hospital, the hospital system, and the

district's staff and employees. (Acts 66th Leg., R.S., Ch. 128,

Sec. 4(a) (part).)

Sec.1018.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of making purchases and

expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 66th

Leg., R.S., Ch. 128, Sec. 8(b) (part).)

Sec. 1018.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location of buildings required to maintain an adequate hospital

system.

(b) The board may lease all or part of the district's

facilities on terms considered to be in the best interest of the

district's inhabitants.

(1) acquire by lease, purchase, lease to purchase, or

option to purchase property, including facilities, supplies, or

equipment, for the district; and

(2) mortgage or pledge the property or the revenue

from the property as security for the payment of the purchase price.

(d) The district may sell, lease, or otherwise dispose of

any of the district's property, including equipment, on terms the

board finds are in the best interest of the district's inhabitants.

(Acts 66th Leg., R.S., Ch. 128, Secs. 8(a) (part), (b) (part).)

Sec.1018.108.ASSISTED LIVING FACILITY. The board may

construct and maintain an assisted living facility and a related

facility that is necessary to operate and maintain an assisted

living facility. (Acts 66th Leg., R.S., Ch. 128, Sec. 8(a) (part).)

Sec.1018.109.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in any type of property located in district

territory if the interest is necessary or convenient for the

district to exercise a power, right, or privilege conferred by this

chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 66th Leg., R.S., Ch. 128, Sec.

12(a).)

Sec.1018.110.COST OF RELOCATING OR ALTERING PROPERTY. In

exercising the power of eminent domain, if the board requires

relocating, raising, lowering, rerouting, changing the grade of, or

altering the construction of any railroad, electric transmission,

telegraph or telephone line, conduit, pole, or facility, or

pipeline, the district must bear the actual cost of relocating,

raising, lowering, rerouting, changing the grade, or altering the

construction to provide comparable replacement without enhancement

of facilities, after deducting the net salvage value derived from

the old facility. (Acts 66th Leg., R.S., Ch. 128, Sec. 12(b).)

Sec.1018.111.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust for the

purposes and under the directions, limitations, or other provisions

prescribed in writing by the donor that are consistent with the

proper management and objectives of the district. (Acts 66th Leg.,

R.S., Ch. 128, Sec. 16.)

Sec.1018.112.CONSTRUCTION CONTRACTS. A construction

contract that involves the expenditure of the amount specified by

Section 271.024, Local Government Code, may be made only after

advertising in the manner provided by Subchapter B, Chapter 271,

Local Government Code. (Acts 66th Leg., R.S., Ch. 128, Sec. 8(b)

(part).)

Sec.1018.113.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a district facility. (Acts 66th Leg., R.S., Ch. 128, Sec. 8(a)

(part).)

Sec.1018.114.CONTRACTS FOR MEDICAL AND HOSPITAL CARE.

The district may contract with public or private institutions and

physicians to provide medical and hospital care for the district's

indigent and needy residents. (Acts 66th Leg., R.S., Ch. 128, Sec.

8(a) (part).)

Sec. 1018.115. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

CARE AND TREATMENT. (a) The board may contract with a county or

municipality located outside the district's boundaries to

reimburse the district for the care and treatment of a sick or

injured person of that county or municipality.

(b) The district may contract with this state or a federal

agency for reimbursement for the treatment of a sick or injured

person. (Acts 66th Leg., R.S., Ch. 128, Sec. 4(a) (part).)

Sec. 1018.116. 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 facilities for the

medical care, hospital, or welfare needs of district inhabitants.

(Acts 66th Leg., R.S., Ch. 128, Sec. 4(a) (part).)

Sec. 1018.117. JOINT ADMINISTRATION OR DELIVERY OF HEALTH

CARE SERVICES. (a) To provide joint administration or delivery of

health care services, the district may contract with, affiliate

with, have an ownership interest in, or enter into another

arrangement with:

(1) a managed care system;

(2) a preferred provider organization;

(3) a health maintenance organization;

(4) a medical services organization;

(5) another provider of alternative health care or

delivery system; or

(6) a private hospital.

(b) The district may spend district money to establish,

maintain, and have an ownership interest in a partnership,

corporation, or other entity involved in the delivery of health

care services. (Acts 66th Leg., R.S., Ch. 128, Sec. 4(d).)

Sec.1018.118.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 who are 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 costs of

the care and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district administrator may collect the amount from

the patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the district administrator, the board shall hold a

hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue a final order.

(f) A final order of the board may be appealed to the

district court. The substantial evidence rule applies to the

appeal. (Acts 66th Leg., R.S., Ch. 128, Sec. 15.)

Sec.1018.119.NONPROFIT CORPORATION. (a) The district

may create, sponsor, and have a membership interest in a nonprofit

corporation under the Business Organizations Code and may

contribute money to or solicit money for the corporation.

(a-1) On or before December 31, 2009, the district may

create, sponsor, and have a membership interest in a nonprofit

corporation under the Texas Non-Profit Corporation Act (Article

1396-1.01, et seq., Vernon's Texas Civil Statutes) or the Business

Organizations Code, as applicable, and may contribute money to or

solicit money for the corporation.

(b) The corporation created may use money, other than money

the corporation pays to the district, only to provide health care or

other services the district is authorized to provide under this

chapter.

any manner in which the district may invest the district's money,

including investing money as authorized by Chapter 2256, Government

Code.

(d) The board shall establish controls to ensure that the

corporation uses its money as required by this section.

(e) This subsection and Subsection (a-1) expire December

31, 2009. (Acts 66th Leg., R.S., Ch. 128, Sec. 4(e).)

Sec.1018.120.AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued. (Acts 66th Leg., R.S., Ch.

128, Sec. 4(a) (part).)

[Sections 1018.121-1018.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1018.151.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 in 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; and

(7) the estimated tax rate required. (Acts 66th Leg.,

R.S., Ch. 128, Sec. 5 (part).)

Sec.1018.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) Notice of the hearing must be published one time in a

newspaper with general circulation in the district at least 10 days

before the date of the hearing.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the taxpayers

and that the law warrants. (Acts 66th Leg., R.S., Ch. 128, Sec. 5

(part).)

Sec.1018.153.AMENDMENTS TO BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 66th Leg., R.S., Ch. 128, Sec. 5 (part).)

Sec.1018.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 66th Leg., R.S., Ch. 128, Sec. 5 (part).)

Sec.1018.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during the time revenue bonds of the district are

outstanding; or

(2) more than once in a 24-month period. (Acts 66th

Leg., R.S., Ch. 128, Sec. 5 (part).)

Sec.1018.156.ANNUAL AUDIT. The board annually shall have

an audit made of the district's financial condition. (Acts 66th

Leg., R.S., Ch. 128, Sec. 5 (part).)

Sec. 1018.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS. The annual audit and other district records shall be open

to inspection at the district's principal office. (Acts 66th Leg.,

R.S., Ch. 128, Sec. 5 (part).)

Sec.1018.158.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 disbursements of that

money. (Acts 66th Leg., R.S., Ch. 128, Sec. 5 (part).)

Sec.1018.159.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 1018.160(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.

the power of the board to place a part of district money on time

deposit or to purchase certificates of deposit.

(d) The district may not deposit money with a bank in an

amount that exceeds the maximum amount secured by the Federal

Deposit Insurance Corporation unless the bank first executes a bond

or other security in an amount sufficient to secure from loss the

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation. (Acts 66th Leg., R.S., Ch. 128,

Sec. 9.)

Sec.1018.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Sections 1018.107(c) and 1018.161

and Subchapter E, 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 reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 66th Leg., R.S., Ch. 128, Secs. 4(a)

(part), 8(b) (part).)

Sec.1018.161.AUTHORITY TO BORROW MONEY; SECURITY. (a)

The board may borrow money for district operating expenses in an

amount not to exceed the amount of tax or other revenue the district

expects to receive during the fiscal year in which the money is

borrowed.

(b) To repay the debt, the district may pledge all or part of

the tax or other revenue received during the fiscal year in which

the board borrows money under this section. (Acts 66th Leg., R.S.,

Ch. 128, Sec. 4A.)

[Sections 1018.162-1018.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1018.201.GENERAL OBLIGATION BONDS. The board may

issue and sell general obligations 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 or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 66th Leg., R.S., Ch. 128, Sec. 6(a) (part).)

Sec.1018.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1018.201, 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 75

cents on each $100 valuation of all taxable property in the

district. (Acts 66th Leg., R.S., Ch. 128, Sec. 6(a) (part).)

Sec.1018.203.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.

(b) The board, in ordering the election, shall provide for

clerks as in county elections and 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; and

(5) the maximum maturity of the bonds.

Section 1251.003, Government Code.

(d) Chapter 41, Election Code, does not apply to an election

held under this section.

(e) The board shall declare the results of the election.

(Acts 66th Leg., R.S., Ch. 128, Sec. 6(a) (part).)

Sec.1018.204.MATURITY OF GENERAL OBLIGATION BONDS.

District general obligation bonds must mature not later than 40

years after the date of issuance. (Acts 66th Leg., R.S., Ch. 128,

Sec. 6(c) (part).)

Sec.1018.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 66th Leg.,

R.S., Ch. 128, Sec. 6(c) (part).)

Sec.1018.206.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used 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 hospitals.

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, and 264.046-264.049, Health and Safety Code, for

issuance of revenue bonds by a county hospital authority. (Acts

66th Leg., R.S., Ch. 128, Sec. 7 (part).)

Sec.1018.207.REFUNDING BONDS. (a) The board may, without

an election, 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 the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 66th

Leg., R.S., Ch. 128, Secs. 6(a) (part), (b) (part), 7 (part).)

Sec.1018.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) the transfer and issuance of the bonds; and

(3) profits made in the sale of the bonds. (Acts 66th

Leg., R.S., Ch. 128, Sec. 19 (part).)

[Sections 1018.209-1018.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1018.251.IMPOSITION OF AD VALOREM TAX. (a) The board

may impose a tax on all property in the district subject to district

taxation.

(b) The board may impose the tax to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the construction, maintenance, equipment, and

operating expenses of the district.

or interest on revenue bonds issued under this chapter. (Acts 66th

Leg., R.S., Ch. 128, Secs. 10(a) (part), 13(a) (part).)

Sec.1018.252.TAX RATE. (a) 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.

(b) In setting the tax rate, the board shall consider the

income of the district from sources other than taxation. (Acts 66th

Leg., R.S., Ch. 128, Secs. 3(b) (part), 10(a) (part), (b) (part).)

Sec. 1018.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR. (a) This section applies unless the board

elects to have taxes assessed and collected under Section 1018.254.

(b) The tax assessors-collectors of Dallam and Hartley

Counties shall assess and collect taxes imposed by the district in

their respective counties. (Acts 66th Leg., R.S., Ch. 128, Secs.

13(a) (part), (b) (part).)

Sec. 1018.254. ASSESSMENT AND COLLECTION BY DISTRICT

ASSESSOR-COLLECTOR. (a) The board, by majority vote, may elect to

have district taxes assessed and collected by a tax

assessor-collector appointed by the board. An election under this

subsection must be made by December 1 and governs the manner in

which taxes are assessed and collected, until changed by a similar

resolution.

(b) The district tax assessor-collector must reside in the

district.

assessor-collector:

(1) the term of employment; and

(2) compensation. (Acts 66th Leg., R.S., Ch. 128,

Secs. 13(a) (part), (c) (part).)

CHAPTER 1019. DARROUZETT HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1019.001. DEFINITIONS

Sec. 1019.002. AUTHORITY FOR OPERATION

Sec. 1019.003. POLITICAL SUBDIVISION

Sec. 1019.004. DISTRICT TERRITORY

Sec. 1019.005. CORRECTION OF INVALID PROCEDURES

[Sections 1019.006-1019.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1019.051. BOARD ELECTION; TERM

Sec. 1019.052. BOARD VACANCY

Sec. 1019.053. OFFICERS

Sec. 1019.054. COMPENSATION; EXPENSES

Sec. 1019.055. EMPLOYEES

Sec. 1019.056. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

Sec. 1019.057. SEAL

[Sections 1019.058-1019.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1019.101. DISTRICT RESPONSIBILITY

Sec. 1019.102. RESTRICTION ON TAXATION AND DEBT BY

OTHER ENTITY

Sec. 1019.103. MANAGEMENT AND CONTROL

Sec. 1019.104. HOSPITAL SYSTEM

Sec. 1019.105. RULES

Sec. 1019.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1019.107. EMINENT DOMAIN

Sec. 1019.108. GIFTS AND ENDOWMENTS

Sec. 1019.109. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1019.110. AUTHORITY TO SUE AND BE SUED

[Sections 1019.111-1019.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1019.151. BUDGET

Sec. 1019.152. PROPOSED BUDGET: NOTICE AND HEARING

Sec. 1019.153. FISCAL YEAR

Sec. 1019.154. ANNUAL AUDIT

Sec. 1019.155. DEPOSITORY OR TREASURER

[Sections 1019.156-1019.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1019.201. GENERAL OBLIGATION BONDS

Sec. 1019.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1019.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1019.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1019.205. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1019.206. REFUNDING BONDS

[Sections 1019.207-1019.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1019.251. IMPOSITION OF AD VALOREM TAX

Sec. 1019.252. TAX RATE

Sec. 1019.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1019. DARROUZETT HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1019.001.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 Darrouzett Hospital

District. (New.)

Sec.1019.002.AUTHORITY FOR OPERATION. The district

operates in accordance with Section 9, Article IX, Texas

Constitution. (Acts 63rd Leg., R.S., Ch. 539, Sec. 1 (part).)

Sec.1019.003.POLITICAL SUBDIVISION. The district is a

political subdivision of this state. (Acts 63rd Leg., R.S., Ch.

539, Sec. 16 (part).)

Sec.1019.004.DISTRICT TERRITORY. The district is

composed of:

(1) the territory described by Section 1, Chapter 539,

Acts of the 63rd Legislature, Regular Session, 1973; and

(2) all territory in the Darrouzett Independent School

District as that territory existed on June 14, 1973, except the

territory in the Booker Hospital District on that date. (New; Acts

63rd Leg., R.S., Ch. 539, Sec. 1 (part).)

Sec.1019.005.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 63rd Leg., R.S., Ch. 539, Sec. 19 (part).)

[Sections 1019.006-1019.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1019.051.BOARD ELECTION; TERM. (a) The board

consists of six directors elected from the district at large.

(b) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) an election shall be held on the uniform election

date in May of each year to elect the appropriate number of

directors. (Acts 63rd Leg., R.S., Ch. 539, Secs. 3(c) (part),

3A(a).)

Sec.1019.052.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 63rd Leg., R.S., Ch. 539,

Sec. 3A(b).)

Sec.1019.053.OFFICERS. (a) The board shall elect a

president, vice president, and secretary-treasurer from among its

members.

(b) Each officer of the board serves until the next

directors' election. (Acts 63rd Leg., R.S., Ch. 539, Sec. 4

(part).)

Sec.1019.054.COMPENSATION; EXPENSES. A director serves

without compensation but may be reimbursed for actual expenses

incurred in the performance of official duties on approval of the

expenses by the entire board. (Acts 63rd Leg., R.S., Ch. 539, Sec.

4 (part).)

Sec.1019.055.EMPLOYEES. The board may employ a general

manager, attorneys, financial advisors, bookkeepers, and

architects as the board considers necessary. (Acts 63rd Leg.,

R.S., Ch. 539, Sec. 7 (part).)

Sec.1019.056.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

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 reasonable hours.

(Acts 63rd Leg., R.S., Ch. 539, Sec. 7 (part).)

Sec.1019.057.SEAL. The board may adopt a seal for the

district. (Acts 63rd Leg., R.S., Ch. 539, Sec. 7 (part).)

[Sections 1019.058-1019.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1019.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for:

(1) operating all hospital facilities; and

(2) providing hospital care for the district's needy

inhabitants. (Acts 63rd Leg., R.S., Ch. 539, Sec. 12 (part).)

Sec. 1019.102. RESTRICTION ON TAXATION AND DEBT BY OTHER

ENTITY. (a) A political subdivision within the district, other

than the district, may not impose a tax or issue bonds or other

obligations for hospital purposes or to provide medical care for

district inhabitants.

(b) A governmental or other entity inside or outside the

district may not impose a tax or issue bonds or other obligations on

property in the district for hospital purposes or to provide

medical care for district inhabitants. (Acts 63rd Leg., R.S., Ch.

539, Sec. 12 (part).)

Sec.1019.103.MANAGEMENT AND CONTROL. The board has full

management and control of all district business, including the

power to:

(1) negotiate and contract with any person;

(2) purchase or lease land;

(3) construct and equip a hospital system; and

(4) operate and maintain the hospital. (Acts 63rd

Leg., R.S., Ch. 539, Sec. 4 (part).)

Sec.1019.104.HOSPITAL SYSTEM. The district shall

provide for the establishment of a hospital system to provide

medical and hospital care to the district's residents. (Acts 63rd

Leg., R.S., Ch. 539, Sec. 2 (part).)

Sec.1019.105.RULES. (a) The board may adopt rules

governing the operation of the district, including district

facilities.

(b) On approval by the board, the rules may be published in

booklet form at district expense and made available to any resident

on request. (Acts 63rd Leg., R.S., Ch. 539, Sec. 7 (part).)

Sec.1019.106.PURCHASING AND ACCOUNTING PROCEDURES. (a)

The board may prescribe the method and manner of making purchases

and expenditures by and for the district.

(b) The board shall prescribe:

(1) all accounting and control procedures; and

(2) the method of purchasing necessary supplies,

materials, and equipment. (Acts 63rd Leg., R.S., Ch. 539, Sec. 7

(part).)

Sec.1019.107.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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 63rd Leg., R.S., Ch. 539, Sec. 9.)

Sec.1019.108.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 63rd Leg., R.S., Ch. 539,

Sec. 14.)

Sec.1019.109.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient from Lipscomb County is admitted to a district

facility, the board shall have an inquiry made into the

circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for

the patient's support.

(b) If an agent designated by the district to handle the

inquiry determines that the patient or those relatives cannot pay

all or part of the costs of the care and treatment in the hospital,

the amount of the costs that cannot be paid becomes a charge against

the district.

the patient or those relatives are liable to pay for all or part of

the costs of the patient's care and treatment, the patient or those

relatives shall be ordered to pay the district's treasurer 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 may collect the amount from the patient's

estate, or from any relative who is legally liable for the patient's

support, in the manner provided by law for the collection of

expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the designated district agent, the board shall hold a

hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue an appropriate order.

(f) Either party to the dispute may appeal the district's

determination to the district court. (Acts 63rd Leg., R.S., Ch.

539, Sec. 13.)

Sec.1019.110.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 63rd Leg., R.S., Ch. 539,

Sec. 16 (part).)

[Sections 1019.111-1019.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1019.151.BUDGET. The board annually shall require a

budget to be 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 63rd Leg., R.S., Ch. 539, Sec. 8 (part).)

Sec.1019.152.PROPOSED BUDGET: NOTICE AND HEARING. (a) The

board shall hold a public hearing on the proposed annual 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.

(1) appear at the time and place designated in the

notice; and

(2) be heard regarding any item included in the

proposed budget. (Acts 63rd Leg., R.S., Ch. 539, Sec. 8 (part).)

Sec.1019.153.FISCAL YEAR. The district operates on a

fiscal year that begins on October 1 and ends on September 30.

(Acts 63rd Leg., R.S., Ch. 539, Sec. 8 (part).)

Sec.1019.154.ANNUAL AUDIT. (a) The board annually shall

have an independent audit made of the district's books and records

for the fiscal year.

(b) Not later than December 31 each year, the audit shall be

filed:

(1) with the comptroller; and

(2) at the district office. (Acts 63rd Leg., R.S., Ch.

539, Sec. 8 (part).)

Sec.1019.155.DEPOSITORY OR TREASURER. (a) The board by

resolution shall designate a bank or banks in the district as the

district's depository or treasurer. A designated bank serves for

two years and until a successor is designated.

(b) All income received by the district shall be deposited

with the district depository.

provided for securing county funds. (Acts 63rd Leg., R.S., Ch. 539,

Secs. 5 (part), 10.)

[Sections 1019.156-1019.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1019.201.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 or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 63rd Leg., R.S., Ch. 539, Sec. 6 (part).)

Sec.1019.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) 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

general obligation bonds issued by the district under Section

1019.201 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. 539, Sec. 6 (part).)

Sec.1019.203.GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the district voters voting at an

election held for that purpose.

(b) The board may order the election on its own motion.

(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; and

(5) the maximum interest rate provided by law.

(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 63rd Leg., R.S., Ch. 539, Sec. 6 (part).)

Sec.1019.204.MATURITY OF GENERAL OBLIGATION BONDS.

District general obligation bonds must mature not later than 40

years after the date of issuance. (Acts 63rd Leg., R.S., Ch. 539,

Sec. 6 (part).)

Sec.1019.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds. (Acts

63rd Leg., R.S., Ch. 539, Sec. 6 (part).)

Sec.1019.206.REFUNDING BONDS. (a) The board may, without

an election, issue refunding bonds in the manner provided by this

subchapter 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 63rd Leg., R.S., Ch. 539, Sec. 6 (part).)

[Sections 1019.207-1019.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1019.251.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;

(2) provide for operation and maintenance of the

hospital or hospital system;

(3) make improvements and additions to the hospital

system; and

(4) acquire necessary sites for the hospital system by

purchase, lease, or condemnation. (Acts 63rd Leg., R.S., Ch. 539,

Secs. 5 (part), 8 (part).)

Sec.1019.252.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 63rd Leg., R.S., Ch. 539, Sec. 5

(part).)

Sec.1019.253.TAX ASSESSOR-COLLECTOR. (a) Except as

provided by Subsection (b), the tax assessor-collector of Lipscomb

County shall assess and collect taxes imposed by the district.

(b) By majority vote the board may appoint a district tax

assessor-collector under Section 285.041, Health and Safety Code.

(Acts 63rd Leg., R.S., Ch. 539, Secs. 5 (part), 8 (part).)

CHAPTER 1020. DEAF SMITH COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1020.001. DEFINITIONS

Sec. 1020.002. AUTHORITY FOR OPERATION

Sec. 1020.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1020.004. DISTRICT TERRITORY

Sec. 1020.005. CORRECTION OF INVALID PROCEDURES

Sec. 1020.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1020.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1020.008-1020.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1020.051. BOARD ELECTION; TERM

Sec. 1020.052. NOTICE OF ELECTION

Sec. 1020.053. BALLOT PETITION

Sec. 1020.054. QUALIFICATIONS FOR OFFICE

Sec. 1020.055. BOARD VACANCY

Sec. 1020.056. OFFICERS

Sec. 1020.057. COMPENSATION; EXPENSES

Sec. 1020.058. VOTING REQUIREMENT

Sec. 1020.059. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR

Sec. 1020.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1020.061. EMPLOYEES; APPOINTMENT OF STAFF

Sec. 1020.062. RECRUITMENT OF MEDICAL STAFF AND

EMPLOYEES

Sec. 1020.063. CONTINUING EDUCATION; RETRAINING

Sec. 1020.064. SENIORITY; RETIREMENT BENEFITS

[Sections 1020.065-1020.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1020.101. DISTRICT RESPONSIBILITY

Sec. 1020.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1020.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1020.104. HOSPITAL SYSTEM

Sec. 1020.105. RULES

Sec. 1020.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1020.107. PROVISION OF CERTAIN HEALTH SERVICES

Sec. 1020.108. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1020.109. EMINENT DOMAIN

Sec. 1020.110. GIFTS AND ENDOWMENTS

Sec. 1020.111. CONSTRUCTION CONTRACTS

Sec. 1020.112. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1020.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR HOSPITALIZATION

Sec. 1020.114. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1020.115. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1020.116. NONPROFIT CORPORATION

Sec. 1020.117. AUTHORITY TO SUE AND BE SUED

[Sections 1020.118-1020.150 reserved for expansion]

SUBCHAPTER D. CHANGE IN BOUNDARIES

Sec. 1020.151. TERRITORY THAT MAY BE ANNEXED

Sec. 1020.152. PETITION TO ANNEX TERRITORY

Sec. 1020.153. ELECTION ORDER

Sec. 1020.154. BALLOT

Sec. 1020.155. NOTICE OF ELECTION

Sec. 1020.156. ELECTION RESULTS

Sec. 1020.157. EFFECT OF ANNEXATION

[Sections 1020.158-1020.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 1020.201. BUDGET

Sec. 1020.202. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1020.203. AMENDMENTS TO BUDGET

Sec. 1020.204. RESTRICTION ON EXPENDITURES

Sec. 1020.205. FISCAL YEAR

Sec. 1020.206. AUDIT

Sec. 1020.207. INSPECTION OF AUDIT AND DISTRICT

RECORDS

Sec. 1020.208. FINANCIAL REPORT

Sec. 1020.209. DEPOSITORY

Sec. 1020.210. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1020.211-1020.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec. 1020.251. GENERAL OBLIGATION BONDS

Sec. 1020.252. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1020.253. GENERAL OBLIGATION BOND ELECTION

Sec. 1020.254. REVENUE BONDS

Sec. 1020.255. REFUNDING BONDS

Sec. 1020.256. MATURITY OF BONDS

Sec. 1020.257. EXECUTION OF BONDS

Sec. 1020.258. BONDS EXEMPT FROM TAXATION

[Sections 1020.259-1020.300 reserved for expansion]

SUBCHAPTER G. TAXES

Sec. 1020.301. IMPOSITION OF AD VALOREM TAX

Sec. 1020.302. TAX RATE

Sec. 1020.303. ELECTION TO INCREASE MAXIMUM TAX RATE

Sec. 1020.304. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR

Sec. 1020.305. ASSESSMENT AND COLLECTION BY DISTRICT

TAX ASSESSOR-COLLECTOR

[Sections 1020.306-1020.350 reserved for expansion]

SUBCHAPTER H. DISSOLUTION

Sec. 1020.351. DISSOLUTION; ELECTION

Sec. 1020.352. BALLOT

Sec. 1020.353. ELECTION RESULTS

Sec. 1020.354. TRANSFER OF DISTRICT ASSETS

CHAPTER 1020. DEAF SMITH COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1020.001.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 Deaf Smith County Hospital

District.

(4) "Hospital system" includes medical or other health

care facilities. (New.)

Sec.1020.002.AUTHORITY FOR OPERATION. The district

operates in accordance with Section 9, Article IX, Texas

Constitution, and has the rights, powers, and duties provided by

this chapter. (Acts 62nd Leg., R.S., Ch. 59, Sec. 1 (part).)

Sec.1020.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 62nd Leg., R.S., Ch. 59, Sec. 21 (part).)

Sec.1020.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Deaf Smith County,

Texas, unless the boundaries are expanded under Subchapter D.

(Acts 62nd Leg., R.S., Ch. 59, Secs. 1 (part), 1A (part).)

Sec.1020.005.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 62nd Leg., R.S., Ch. 59, Sec. 23 (part).)

Sec. 1020.006. 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 62nd

Leg., R.S., Ch. 59, Sec. 20 (part).)

Sec.1020.007.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 62nd Leg., R.S., Ch. 59, Sec. 20 (part).)

[Sections 1020.008-1020.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1020.051.BOARD ELECTION; TERM. (a) The district is

governed by a board of seven directors elected from the district at

large.

(b) Directors serve staggered three-year terms.

in May of each year to elect the appropriate number of directors.

(Acts 62nd Leg., R.S., Ch. 59, Secs. 4(a), (b) (part); Acts 77th

Leg., R.S., Ch. 110, Sec. 5(d).)

Sec.1020.052.NOTICE OF ELECTION. At least 35 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper of general circulation in the

district. (Acts 62nd Leg., R.S., Ch. 59, Sec. 4(b) (part).)

Sec.1020.053.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 25 registered voters; and

(2) filed at least 30 days before the date of the

election. (Acts 62nd Leg., R.S., Ch. 59, Sec. 4(b) (part).)

Sec.1020.054.QUALIFICATIONS FOR OFFICE. (a) A person may

not serve as a director unless the person is:

(1) a district resident; and

(2) a qualified voter.

(b) A person is not eligible to serve as a director if the

person is:

(1) the district administrator; or

(2) a district employee. (Acts 62nd Leg., R.S., Ch.

59, Sec. 4(c) (part).)

Sec.1020.055.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 62nd Leg., R.S.,

Ch. 59, Sec. 4(b) (part).)

Sec.1020.056.OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its

members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

unexpired term. (Acts 62nd Leg., R.S., Ch. 59, Sec. 4(d) (part).)

Sec.1020.057.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 62nd Leg., R.S., Ch.

59, Sec. 4(d) (part).)

Sec.1020.058.VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business. (Acts 62nd Leg., R.S., Ch. 59, Sec. 4(d) (part).)

Sec. 1020.059. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR. (a) The board shall appoint a qualified person as

district administrator.

(b) The board may appoint an assistant administrator.

administrator serve at the will of the board and are entitled to 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 other conditions the board may require.

(Acts 62nd Leg., R.S., Ch. 59, Sec. 5 (part).)

Sec.1020.060.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 62nd

Leg., R.S., Ch. 59, Sec. 5 (part).)

Sec.1020.061.EMPLOYEES; APPOINTMENT OF STAFF. (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 necessary.

(b) The district may employ fiscal agents, accountants,

architects, and attorneys the board considers proper.

authority to hire district employees, including technicians and

nurses. (Acts 62nd Leg., R.S., Ch. 59, Secs. 5 (part), 16.)

Sec.1020.062.RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES.

(a) The district may spend district money, enter into agreements,

or take other action it considers appropriate to recruit

physicians, nurses, and other trained medical personnel,

including:

(1) advertising and marketing;

(2) paying travel, recruitment, and relocation

expenses;

(3) providing and subsidizing office space or other

facilities for a health care professional, including a physician

who agrees to render services in the district or to serve as a

district employee; and

(4) subsidizing the income of a health care

professional, including a physician who agrees to render services

in the district.

(b) The district may pay the tuition or other expenses of a

full-time medical, allied health professional, or nursing student

who:

(1) is enrolled in and is in good standing at an

accredited school, college, or university; and

(2) contractually agrees to render services to the

district or become a district employee in return for that

assistance. (Acts 62nd Leg., R.S., Ch. 59, Secs. 5A(a), (b).)

Sec.1020.063.CONTINUING EDUCATION; RETRAINING. The board

may spend district money for continuing education and retraining of

employees. (Acts 62nd Leg., R.S., Ch. 59, Sec. 5A(c).)

Sec.1020.064.SENIORITY; RETIREMENT BENEFITS. The board

may:

(1) adopt rules related 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

district employees continuously employed in the operation or

management of the hospital, medical, or other health care

facilities:

(A) constructed by the district; or

(B) acquired by the district, including

facilities acquired when the district was created. (Acts 62nd

Leg., R.S., Ch. 59, Sec. 5 (part).)

[Sections 1020.065-1020.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1020.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for providing hospital care for the district's

indigent residents. (Acts 62nd Leg., R.S., Ch. 59, Sec. 19 (part).)

Sec. 1020.102. 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, medical, or health care purposes or to provide

medical care. (Acts 62nd Leg., R.S., Ch. 59, Sec. 19 (part).)

Sec.1020.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 62nd Leg., R.S., Ch.

59, Sec. 5 (part).)

Sec.1020.104.HOSPITAL SYSTEM. (a) The district shall

provide for the establishment of a hospital system by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering buildings and equipment for

hospital purposes.

(b) The hospital system may include:

(1) facilities for domiciliary care of the sick,

injured, or geriatric;

(2) facilities for outpatient clinics;

(3) physicians' offices;

(4) dispensaries;

(5) convalescent home facilities;

(6) necessary nurses' domiciliaries and training

centers;

(7) blood banks;

(8) research centers or laboratories; and

(9) any other facilities the board considers necessary

for hospital care. (Acts 62nd Leg., R.S., Ch. 59, Secs. 2 (part), 9

(part).)

Sec.1020.105.RULES. The board may adopt rules governing

the operation of the hospital, the hospital system, and the

district's staff and employees. (Acts 62nd Leg., R.S., Ch. 59, Sec.

5 (part).)

Sec.1020.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of making purchases and

expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 62nd

Leg., R.S., Ch. 59, Sec. 10 (part).)

Sec.1020.107.PROVISION OF CERTAIN HEALTH SERVICES. The

district may operate or provide for the operation of:

(1) a mobile emergency medical service; or

(2) home health services, long-term care, skilled

nursing care, intermediate nursing care, or hospice care. (Acts

62nd Leg., R.S., Ch. 59, Sec. 9 (part).)

Sec. 1020.108. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location of buildings required to maintain an adequate hospital

system.

(b) The board may lease all or part of the district's

buildings and other facilities for hospital, medical, or health

care purposes on terms considered to be in the best interest of the

district's inhabitants. The term of the lease may not exceed 25

years.

the district's hospital system and mortgage or pledge acquired

equipment as security for the payment of the purchase price. A

contract or lease entered into under this subsection must provide

that the entire obligation be retired not later than the fifth

anniversary of the date of the contract or lease.

(d) The district may sell or otherwise dispose of any

property, including equipment, on terms the board finds are in the

best interest of the district's inhabitants. The board may not sell

or dispose of any real property unless the board affirmatively

finds that the property is not needed for the operation of the

hospital system. (Acts 62nd Leg., R.S., Ch. 59, Secs. 9 (part), 10

(part).)

Sec.1020.109.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 for the district to exercise

a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 62nd Leg., R.S., Ch. 59, Sec. 14.)

Sec.1020.110.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 62nd Leg., R.S., Ch. 59, Sec.

18 (part).)

Sec.1020.111.CONSTRUCTION CONTRACTS. A construction

contract that requires the expenditure of more than the amount

provided by Section 271.024, Local Government Code, may be made

only after competitive bidding as provided by Subchapter B, Chapter

271, Local Government Code. (Acts 62nd Leg., R.S., Ch. 59, Sec. 10

(part).)

Sec.1020.112.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a district facility. (Acts 62nd Leg., R.S., Ch. 59, Sec. 9

(part).)

Sec. 1020.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

HOSPITALIZATION. (a) The board may contract with a county or

municipality located outside the district's boundaries for the

hospitalization of a sick or injured person of that county or

municipality.

(b) The board may contract with this state or a federal

agency for the hospitalization of a sick or injured person. (Acts

62nd Leg., R.S., Ch. 59, Sec. 5 (part).)

Sec. 1020.114. 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 for the hospital or welfare

needs of district inhabitants. (Acts 62nd Leg., R.S., Ch. 59, Sec.

5 (part).)

Sec.1020.115.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 who are 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 costs of

the care and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district administrator may collect the amount from

the patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the 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) The final order of the board may be appealed to the

district court. The substantial evidence rule applies to the

appeal. (Acts 62nd Leg., R.S., Ch. 59, Sec. 17.)

Sec.1020.116.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.

(a-1) On or before December 31, 2009, the district may

create and sponsor a nonprofit corporation under the Texas

Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's

Texas Civil Statutes) or the Business Organizations Code, as

applicable, and may contribute money to or solicit money for the

corporation.

(b) A corporation may use money, other than money the

corporation pays to the district, only to provide health care or

other services the district is authorized to provide under this

chapter.

any manner in which the district may invest the district's money,

including investing money as authorized by Chapter 2256, Government

Code.

(d) The board shall establish controls to ensure that the

corporation uses its money as required by this section.

(e) This subsection and Subsection (a-1) expire December

31, 2009. (Acts 62nd Leg., R.S., Ch. 59, Sec. 5B.)

Sec.1020.117.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 62nd Leg., R.S., Ch. 59, Sec. 5

(part).)

[Sections 1020.118-1020.150 reserved for expansion]

SUBCHAPTER D. CHANGE IN BOUNDARIES

Sec.1020.151.TERRITORY THAT MAY BE ANNEXED. (a) The

district may annex territory that is not located in:

(1) Deaf Smith County;

(2) the boundaries of another hospital district; or

(3) the proposed boundaries of another hospital

district authorized by the legislature under Section 9, Article IX,

Texas Constitution.

(b) Territory may be annexed in one or more tracts. Each

tract must be contiguous to:

(1) the district; or

(2) territory proposed to be annexed to the district.

(Acts 62nd Leg., R.S., Ch. 59, Sec. 1A (part).)

Sec.1020.152.PETITION TO ANNEX TERRITORY. (a) A petition

requesting that territory be annexed to the district may be

presented to the board. The petition must:

(1) describe the tract or tracts of land to be annexed;

and

(2) be signed by 100 or a majority of the registered

voters who:

(A) reside in the territory to be annexed; and

(B) own property that will be subject to district

taxation if the territory is annexed.

(b) This chapter does not prohibit simultaneous action on

several petitions for annexation. Each ballot proposition must be

submitted for each different territory proposed to be annexed, and

an election held in each territory represented by a petition.

annexation that include all or part of the same territory to be

annexed to the district, the petition filed first with the board

shall be considered and another petition that includes any of the

same territory has no effect.

(d) The board may consider all petitions for annexation

presented to it and may approve or reject each petition. The board

may not partly approve or partly reject any petition. (Acts 62nd

Leg., R.S., Ch. 59, Sec. 1A (part).)

Sec.1020.153.ELECTION ORDER. (a) If, on receipt of a

petition, the board finds that annexing the territory is in the

district's best interest, the board shall within 90 days of the

board's finding:

(1) approve the annexation of the territory described

in the petition; and

(2) order an election on the question of annexing the

territory to the district.

(b) The election order shall provide for a separate

election:

(1) in the territory proposed to be annexed; and

(2) in the district.

elections and must specify:

(1) the date of the election;

(2) the location of the polling places;

(3) the form of ballot; and

(4) the presiding judge and alternate judge for each

polling place.

(d) The election order may provide that:

(1) the entire district is one election precinct; or

(2) the county election precincts be combined for the

election. (Acts 62nd Leg., R.S., Ch. 59, Secs. 1A (part), 3(a)

(part).)

Sec.1020.154.BALLOT. The ballot for the election shall be

printed to permit voting for or against the proposition: "The

establishment of the Deaf Smith County Hospital District with

extended boundaries and establishment of a hospital district tax at

a rate not to exceed 50 cents on the $100 valuation on all taxable

property in the extended boundaries of the hospital district that

is subject to hospital district taxation for hospital purposes."

(Acts 62nd Leg., R.S., Ch. 59, Sec. 1A (part).)

Sec.1020.155.NOTICE OF ELECTION. (a) Notice of the

election shall be given by publishing once a week for two

consecutive weeks a substantial copy of the election order in a

newspaper or newspapers that individually or collectively have

general circulation in the county or district.

(b) The first publication must appear at least 30 days

before the date of the election. (Acts 62nd Leg., R.S., Ch. 59,

Secs. 1A (part), 3(a) (part).)

Sec.1020.156.ELECTION RESULTS. (a) Territory may not be

annexed to the district unless:

(1) an election is held in accordance with this

subchapter; and

(2) the annexation is approved by a majority of the

voters voting in the election in:

(A) the district; and

(B) the territory proposed to be annexed.

(b) If the territory is annexed to the district, a certified

copy of the order canvassing the returns of the election shall be

filed and recorded in the deed records of each county in which the

district is located following the annexation election.

within six months of an election previously held under this

subchapter. (Acts 62nd Leg., R.S., Ch. 59, Secs. 1A (part), 3(a)

(part).)

Sec.1020.157.EFFECT OF ANNEXATION. (a) Territory

annexed to the district is part of the district for all purposes.

(b) The annexation of territory to the district does not

change the manner in which the board or district officers are

selected. (Acts 62nd Leg., R.S., Ch. 59, Sec. 1A (part).)

[Sections 1020.158-1020.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec.1020.201.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 in 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 62nd Leg., R.S., Ch. 59, Sec. 6 (part).)

Sec.1020.202.NOTICE; HEARING; ADOPTION 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 have general

circulation in the district.

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 adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interest of the taxpayers

and that the law warrants. (Acts 62nd Leg., R.S., Ch. 59, Sec. 6

(part).)

Sec.1020.203.AMENDMENTS TO BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 62nd Leg., R.S., Ch. 59, Sec. 6 (part).)

Sec.1020.204.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 62nd Leg., R.S., Ch. 59, Sec. 6 (part).)

Sec.1020.205.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed more than once in a

24-month period. (Acts 62nd Leg., R.S., Ch. 59, Sec. 6 (part).)

Sec.1020.206.AUDIT. (a) The board 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 62nd Leg., R.S., Ch. 59, Sec.

6 (part).)

Sec.1020.207.INSPECTION OF AUDIT AND DISTRICT RECORDS.

The audit and other district records shall be open to inspection at

the district's principal office. (Acts 62nd Leg., R.S., Ch. 59,

Sec. 6 (part).)

Sec.1020.208.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 62nd Leg., R.S., Ch. 59, Sec. 6 (part).)

Sec.1020.209.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 1020.210, 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.

the power of the board to place a part of district money on time

deposit or to purchase certificates of deposit. (Acts 62nd Leg.,

R.S., Ch. 59, Sec. 11.)

Sec.1020.210.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as provided by Section 1020.108(c) and Subchapter F, 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 reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 62nd Leg., R.S., Ch. 59, Secs. 5

(part), 10 (part).)

[Sections 1020.211-1020.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec.1020.251.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 or improvements; and

(2) equipping buildings or improvements for hospital,

medical, or health care purposes. (Acts 62nd Leg., R.S., Ch. 59,

Sec. 7 (part).)

Sec.1020.252.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1020.251, 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 62nd Leg., R.S., Ch. 59, Sec. 7

(part).)

Sec.1020.253.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 election shall 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 maturity of the bonds; and

(6) the maximum interest rate of the bonds.

Section 1251.003, Government Code. (Acts 62nd Leg., R.S., Ch. 59,

Sec. 7 (part).)

Sec.1020.254.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital, medical, or health

care purposes; or

(2) acquire sites to be used for hospital, medical, or

health care 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 or medical or health care facilities.

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, and 264.046-264.049, Health and Safety Code, for

issuance of revenue bonds by a county hospital authority. (Acts

62nd Leg., R.S., Ch. 59, Sec. 8(b) (part).)

Sec.1020.255.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 62nd

Leg., R.S., Ch. 59, Secs. 8(a) (part), (b) (part).)

Sec.1020.256.MATURITY OF BONDS. District bonds must

mature not later than 40 years after the date of issuance. (Acts

62nd Leg., R.S., Ch. 59, Sec. 8(c) (part).)

Sec.1020.257.EXECUTION OF BONDS. (a) The board president

shall execute district bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 62nd Leg.,

R.S., Ch. 59, Sec. 8(c) (part).)

Sec.1020.258.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) profits made in the sale of the bonds. (Acts 62nd

Leg., R.S., Ch. 59, Sec. 21 (part).)

[Sections 1020.259-1020.300 reserved for expansion]

SUBCHAPTER G. TAXES

Sec.1020.301.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 or other obligations issued or assumed by the district for

hospital purposes;

(2) provide for the operation and maintenance of the

district and hospital system;

(3) make improvements and additions to the hospital

system; and

(4) acquire necessary sites for the hospital system by

purchase, lease, or condemnation. (Acts 62nd Leg., R.S., Ch. 59,

Secs. 12 (part), 15(a) (part).)

Sec.1020.302.TAX RATE. (a) The board may impose the tax

at a rate not to exceed 50 cents on each $100 valuation of the

taxable property in the district, unless the tax rate is increased

as provided by Section 1020.303.

(b) In setting the tax rate, the board shall consider the

income of the district from sources other than taxation. (Acts 62nd

Leg., R.S., Ch. 59, Secs. 3(b) (part), 12 (part).)

Sec.1020.303.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

taxable property in the district.

(b) The maximum tax rate may not be increased unless the

increase is approved by a majority of the district voters voting in

an election held for that purpose.

notice must be given in the manner provided for a bond election

under Subchapter F.

(d) The election order must specify:

(1) the ballot proposition;

(2) the proposed maximum tax rate;

(3) the time of the election;

(4) the location of the polling places; and

(5) the presiding judge for each polling place. (Acts

62nd Leg., R.S., Ch. 59, Sec. 3(d).)

Sec. 1020.304. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR. (a) This section applies unless the board

elects to have taxes assessed and collected under Section 1020.305.

(b) The tax assessor-collector of Deaf Smith County shall

assess and collect taxes imposed by the district. (Acts 62nd Leg.,

R.S., Ch. 59, Secs. 15(a) (part), (b) (part).)

Sec. 1020.305. ASSESSMENT AND COLLECTION BY DISTRICT TAX

ASSESSOR-COLLECTOR. (a) The board may elect to have district taxes

assessed and collected by a tax assessor-collector appointed by the

board. An election under this subsection must be made by December 1

and governs the manner in which taxes are assessed and collected,

until changed by a similar resolution.

(b) The district tax assessor-collector must:

(1) reside in the district; and

(2) own real property subject to district taxation.

assessor-collector:

(1) the terms of employment; and

(2) compensation. (Acts 62nd Leg., R.S., Ch. 59,

Secs. 15(a) (part), (c) (part).)

[Sections 1020.306-1020.350 reserved for expansion]

SUBCHAPTER H. DISSOLUTION

Sec.1020.351.DISSOLUTION; ELECTION. (a) The district

may be dissolved as provided by this subchapter.

(b) The board may order an election on the question of

dissolving the district and transferring the district's assets and

obligations to Deaf Smith County.

a petition requesting an election that is signed by at least 50

registered voters in the district.

(d) Section 41.001(a), Election Code, does not apply to an

election ordered under this section. (Acts 62nd Leg., R.S., Ch. 59,

Secs. 19A(a), (b), (c) (part).)

Sec.1020.352.BALLOT. The ballot for an election under

this subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the Deaf Smith County Hospital

District and the transfer of the existing district assets to and the

assumption of debts and bond obligations by Deaf Smith County."

(Acts 62nd Leg., R.S., Ch. 59, Sec. 19A(d) (part).)

Sec.1020.353.ELECTION RESULTS. (a) If a majority of the

votes in the election favor dissolution and transfer of the

district's assets and obligations, the board shall:

(1) find that the district is dissolved; and

(2) transfer the district's assets and obligations to

Deaf Smith County as provided by Section 1020.354.

(b) If a majority of the votes in the election do not favor

dissolution and transfer of the district's assets and obligations,

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 at which

voters disapproved the proposition. (Acts 62nd Leg., R.S., Ch. 59,

Sec. 19A(e).)

Sec.1020.354.TRANSFER OF DISTRICT ASSETS. (a) If a

majority of the votes in an election held under this subchapter

favor dissolution and transfer of the district's assets and

obligations, the board shall transfer to Deaf Smith County the

land, buildings, improvements, equipment, and other assets that

belong to the district.

(b) Deaf Smith County assumes all debts and obligations of

the district at the time of the transfer. (Acts 62nd Leg., R.S.,

Ch. 59, Sec. 19A(f).)

CHAPTER 1021. DONLEY COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1021.001. DEFINITIONS

Sec. 1021.002. AUTHORITY FOR OPERATION

Sec. 1021.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1021.004. DISTRICT TERRITORY

Sec. 1021.005. CORRECTION OF INVALID PROCEDURES

Sec. 1021.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1021.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1021.008-1021.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1021.051. BOARD ELECTION; TERM

Sec. 1021.052. NOTICE OF RUNOFF ELECTION

Sec. 1021.053. QUALIFICATIONS FOR OFFICE

Sec. 1021.054. BOND

Sec. 1021.055. BOARD VACANCY

Sec. 1021.056. OFFICERS

Sec. 1021.057. COMPENSATION; EXPENSES

Sec. 1021.058. VOTING REQUIREMENT

Sec. 1021.059. DISTRICT ADMINISTRATOR; ASSISTANT

DISTRICT ADMINISTRATORS

Sec. 1021.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1021.061. APPOINTMENT AND DISMISSAL OF STAFF AND

EMPLOYEES

Sec. 1021.062. SENIORITY; RETIREMENT BENEFITS

[Sections 1021.063-1021.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1021.101. DISTRICT RESPONSIBILITY

Sec. 1021.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1021.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1021.104. HOSPITAL SYSTEM

Sec. 1021.105. RULES

Sec. 1021.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1021.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1021.108. EMINENT DOMAIN

Sec. 1021.109. GIFTS AND ENDOWMENTS

Sec. 1021.110. CONSTRUCTION OR PURCHASE CONTRACTS

Sec. 1021.111. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1021.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR HOSPITAL TREATMENT

Sec. 1021.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1021.114. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1021.115. AUTHORITY TO SUE AND BE SUED

[Sections 1021.116-1021.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1021.151. BUDGET

Sec. 1021.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1021.153. AMENDMENTS TO BUDGET

Sec. 1021.154. RESTRICTION ON EXPENDITURES

Sec. 1021.155. FISCAL YEAR

Sec. 1021.156. AUDIT

Sec. 1021.157. INSPECTION OF AUDIT AND DISTRICT

RECORDS

Sec. 1021.158. FINANCIAL REPORT

Sec. 1021.159. DEPOSITORY

Sec. 1021.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1021.161-1021.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1021.201. GENERAL OBLIGATION BONDS

Sec. 1021.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1021.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1021.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1021.205. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1021.206. REVENUE BONDS

Sec. 1021.207. REFUNDING BONDS

Sec. 1021.208. BONDS EXEMPT FROM TAXATION

[Sections 1021.209-1021.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1021.251. IMPOSITION OF AD VALOREM TAX

Sec. 1021.252. TAX RATE

Sec. 1021.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR

Sec. 1021.254. ASSESSMENT AND COLLECTION BY DISTRICT

TAX ASSESSOR-COLLECTOR

CHAPTER 1021. DONLEY COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1021.001.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 Donley County Hospital

District. (New.)

Sec.1021.002.AUTHORITY FOR OPERATION. The district

operates in accordance with Section 9, Article IX, Texas

Constitution. (Acts 61st Leg., R.S., Ch. 699, Sec. 1 (part).)

Sec.1021.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 61st Leg., R.S., Ch. 699, Sec. 20 (part).)

Sec.1021.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Donley County,

Texas. (Acts 61st Leg., R.S., Ch. 699, Sec. 1 (part).)

Sec.1021.005.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 61st Leg., R.S., Ch. 699, Sec. 21 (part).)

Sec. 1021.006. 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 61st

Leg., R.S., Ch. 699, Sec. 19 (part).)

Sec.1021.007.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 61st Leg., R.S., Ch. 699, Sec. 19 (part).)

[Sections 1021.008-1021.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1021.051.BOARD ELECTION; TERM. (a) The board

consists of seven directors elected from the district by position.

To be elected, a candidate must receive a majority of the votes cast

in the election for that position.

(b) The official ballot must indicate the position number of

each office to be voted on at the election.

election.

(d) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) the terms of directors elected to positions 1

through 3 expire in odd-numbered years and the terms of directors

elected to positions 4 through 7 expire in even-numbered years.

(Acts 61st Leg., R.S., Ch. 699, Sec. 3(c) (part).)

Sec.1021.052.NOTICE OF RUNOFF ELECTION. At least seven

days before the date of a runoff election of directors, notice of

the runoff election shall be published one time in a newspaper of

general circulation in Donley County. (Acts 61st Leg., R.S., Ch.

699, Sec. 3(c) (part).)

Sec.1021.053.QUALIFICATIONS FOR OFFICE. (a) A person may

not be elected or appointed as a director unless the person is:

(1) a district resident;

(2) a freeholder; and

(3) a qualified voter.

(b) A person is not eligible to serve as a director if the

person is:

(1) the district administrator;

(2) a district employee; or

(3) a hospital staff member. (Acts 61st Leg., R.S.,

Ch. 699, Sec. 3(d).)

Sec.1021.054.BOND. (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) The district shall pay for the directors' bonds. (Acts

61st Leg., R.S., Ch. 699, Sec. 3(c) (part).)

Sec.1021.055.BOARD VACANCY. If a vacancy occurs in the

office of director, the board shall appoint a director for the

unexpired term. (Acts 61st Leg., R.S., Ch. 699, Sec. 3(c) (part).)

Sec.1021.056.OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its

members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

unexpired term. (Acts 61st Leg., R.S., Ch. 699, Sec. 3(e) (part).)

Sec.1021.057.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 61st Leg., R.S., Ch.

699, Sec. 3(e) (part).)

Sec.1021.058.VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business. (Acts 61st Leg., R.S., Ch. 699, Sec. 3(e) (part).)

Sec. 1021.059. DISTRICT ADMINISTRATOR; ASSISTANT DISTRICT

ADMINISTRATORS. (a) The board may appoint a qualified person as

district administrator.

(b) The board may appoint one or more assistant

administrators.

administrator serve at the will of the board and are entitled to 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 other conditions the board may require.

(Acts 61st Leg., R.S., Ch. 699, Sec. 4 (part).)

Sec.1021.060.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 61st

Leg., R.S., Ch. 699, Sec. 4 (part).)

Sec. 1021.061. APPOINTMENT AND DISMISSAL OF STAFF AND

EMPLOYEES. (a) The board may appoint to or dismiss from the staff

any doctors the board considers necessary for the efficient

operation of the district and may make temporary appointments as

necessary.

(b) The district may employ fiscal agents, accountants,

architects, and attorneys the board considers proper.

authority to hire district employees, including technicians and

nurses. (Acts 61st Leg., R.S., Ch. 699, Secs. 4 (part), 15.)

Sec.1021.062.SENIORITY; RETIREMENT BENEFITS. The board

may:

(1) adopt rules related 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

district employees continuously employed in the operation or

management of hospital facilities acquired or constructed by the

district. (Acts 61st Leg., R.S., Ch. 699, Sec. 4 (part).)

[Sections 1021.063-1021.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1021.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for operating all hospital facilities for

providing medical and hospital care for the district's needy

inhabitants. (Acts 61st Leg., R.S., Ch. 699, Sec. 18 (part).)

Sec. 1021.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT. A political subdivision located within the

district or that has the same boundaries as the district may not

impose a tax or issue bonds or other obligations for hospital

purposes or to provide medical care. (Acts 61st Leg., R.S., Ch.

699, Sec. 18 (part).)

Sec.1021.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 61st Leg., R.S., Ch.

699, Sec. 4 (part).)

Sec.1021.104.HOSPITAL SYSTEM. The hospital system, as

determined by the board, may include:

(1) facilities for domiciliary care of the sick,

injured, or geriatric;

(2) facilities for outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses centers;

(6) research centers or laboratories;

(7) nursing homes or similar facilities for the care

of the elderly; and

(8) any other facilities the board considers necessary

for hospital care. (Acts 61st Leg., R.S., Ch. 699, Sec. 8 (part).)

Sec.1021.105.RULES. The board may adopt rules governing

the operation of the hospital, the hospital system, and the

district's staff and employees. (Acts 61st Leg., R.S., Ch. 699,

Sec. 4 (part).)

Sec.1021.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of making purchases and

expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 61st

Leg., R.S., Ch. 699, Sec. 9 (part).)

Sec. 1021.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location of buildings required to maintain an adequate hospital

system.

(b) The board may contract with the Health and Human

Services Commission to lease all or part of the district's

buildings and other facilities on terms considered to be in the best

interest of the district's inhabitants. The term of the lease may

not exceed 25 years.

district's hospital system and mortgage or pledge the property as

security for the payment of the purchase price. A contract entered

into under this subsection must provide that the entire obligation

be retired not later than the fifth anniversary of the date of the

contract.

(d) The district may sell or otherwise dispose of any

property, including equipment, on terms the board finds are in the

best interest of the district's inhabitants. (Acts 61st Leg.,

R.S., Ch. 699, Secs. 8 (part), 9 (part).)

Sec.1021.108.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 for the district to exercise

a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 61st Leg., R.S., Ch. 699, Sec.

13.)

Sec.1021.109.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 61st Leg., R.S., Ch. 699,

Sec. 17.)

Sec.1021.110.CONSTRUCTION OR PURCHASE CONTRACTS. A

construction or purchase contract that involves the expenditure of

more than $2,000 may be made only after advertising in the manner

provided by Chapter 252 and Subchapter C, Chapter 262, Local

Government Code. (Acts 61st Leg., R.S., Ch. 699, Sec. 9 (part).)

Sec.1021.111.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a district facility. (Acts 61st Leg., R.S., Ch. 699, Sec. 8

(part).)

Sec. 1021.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

HOSPITAL TREATMENT. (a) The board may contract with a county or

municipality located outside the district's boundaries for the

hospitalization of a sick or injured person of that county or

municipality.

(b) The board may contract with this state or a federal

agency for the hospital treatment of a sick or injured person.

(Acts 61st Leg., R.S., Ch. 699, Sec. 4 (part).)

Sec. 1021.113. 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 61st Leg., R.S., Ch.

699, Sec. 4 (part).)

Sec.1021.114.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 who are 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 costs of

the care and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district administrator may collect the amount from

the patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the 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) The final order of the board may be appealed to the

district court. The substantial evidence rule applies to the

appeal. (Acts 61st Leg., R.S., Ch. 699, Sec. 16.)

Sec.1021.115.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 are entitled. (Acts 61st

Leg., R.S., Ch. 699, Sec. 4 (part).)

[Sections 1021.116-1021.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1021.151.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 in 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 61st Leg., R.S., Ch. 699, Sec. 5 (part).)

Sec.1021.152.NOTICE; HEARING; ADOPTION 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 have general

circulation in the district.

present and participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interest of the taxpayers

and that the law warrants. (Acts 61st Leg., R.S., Ch. 699, Sec. 5

(part).)

Sec.1021.153.AMENDMENTS TO BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 61st Leg., R.S., Ch. 699, Sec. 5 (part).)

Sec.1021.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 61st Leg., R.S., Ch. 699, Sec. 5 (part).)

Sec.1021.155.FISCAL YEAR. The district operates on a

fiscal year that begins on July 1 and ends on June 30. (Acts 61st

Leg., R.S., Ch. 699, Sec. 5 (part).)

Sec.1021.156.AUDIT. (a) The district 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 61st Leg., R.S., Ch. 699,

Sec. 5 (part).)

Sec.1021.157.INSPECTION OF AUDIT AND DISTRICT RECORDS.

The audit and other district records shall be open to inspection at

the district's principal office. (Acts 61st Leg., R.S., Ch. 699,

Sec. 5 (part).)

Sec.1021.158.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 disbursements of that

money. (Acts 61st Leg., R.S., Ch. 699, Sec. 5 (part).)

Sec.1021.159.DEPOSITORY. (a) The board shall select one

or more banks in the district to serve as a depository for district

money.

(b) District money, other than money invested as provided by

Section 1021.160(b) and money transmitted to a bank for payment of

bonds or obligations issued by the district, shall be deposited as

received with the depository bank and shall remain on deposit.

the power of the board to place a part of district money on time

deposit or to purchase certificates of deposit. (Acts 61st Leg.,

R.S., Ch. 699, Sec. 10.)

Sec.1021.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as provided by Section 1021.107(c) and by Subchapter E, 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 61st Leg., R.S., Ch. 699,

Secs. 4 (part), 9 (part).)

[Sections 1021.161-1021.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1021.201.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 or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 61st Leg., R.S., Ch. 699, Sec. 6(a) (part).)

Sec.1021.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1021.201, 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 61st Leg., R.S., Ch. 699, Sec. 6(a)

(part).)

Sec.1021.203.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 election shall 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; and

(5) the maximum interest rate of the bonds.

Section 1251.003, Government Code. (Acts 61st Leg., R.S., Ch. 699,

Sec. 6(a) (part).)

Sec.1021.204.MATURITY OF GENERAL OBLIGATION BONDS.

District general obligation bonds must mature not later than 40

years after the date of issuance. (Acts 61st Leg., R.S., Ch. 699,

Sec. 6(d) (part).)

Sec.1021.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 61st Leg.,

R.S., Ch. 699, Sec. 6(d) (part).)

Sec.1021.206.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for the district's hospital

system facilities; or

(2) acquire sites to be used for the district's

hospital system facilities.

(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 hospitals.

deed of trust lien on all or part of district property.

(d) The bonds must be used in the manner and in accordance

with the procedures and requirements prescribed by Sections

264.042, 264.043, and 264.046-264.049, Health and Safety Code, for

issuance of revenue bonds by a county hospital authority. (Acts

61st Leg., R.S., Ch. 699, Sec. 7 (part).)

Sec.1021.207.REFUNDING BONDS. (a) The board may, without

an election, issue refunding bonds to refund outstanding

indebtedness issued or assumed by the district.

(b) Refunding bonds may be:

(1) sold, with the proceeds of the refunding bonds

applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 61st

Leg., R.S., Ch. 699, Secs. 6(a) (part), (c) (part), 7 (part).)

Sec.1021.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) the transfer and issuance of the bonds; and

(3) profits made in the sale of the bonds. (Acts 61st

Leg., R.S., Ch. 699, Sec. 20 (part).)

[Sections 1021.209-1021.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1021.251.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 and other obligations issued or assumed by the district for

hospital purposes;

(2) provide for the operation and maintenance of the

district and hospital system;

(3) make improvements and additions to the hospital

system; and

(4) acquire necessary sites for the hospital system by

purchase, lease, or condemnation. (Acts 61st Leg., R.S., Ch. 699,

Secs. 2(b) (part), 11 (part).)

Sec.1021.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed 75 cents on each $100 valuation of 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 61st

Leg., R.S., Ch. 699, Secs. 2(b) (part), 11 (part).)

Sec. 1021.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR. (a) This section applies unless the board

elects to have taxes assessed and collected under Section 1021.254.

(b) The tax assessor-collector of Donley County shall

assess and collect taxes imposed by the district. (Acts 61st Leg.,

R.S., Ch. 699, Sec. 14 (part).)

Sec. 1021.254. ASSESSMENT AND COLLECTION BY DISTRICT TAX

ASSESSOR-COLLECTOR. (a) The board may elect to have district taxes

assessed and collected by a tax assessor-collector appointed by the

board. An election under this subsection must be made by December 1

and governs the manner in which taxes are assessed and collected,

until changed by a similar resolution.

(b) The district tax assessor-collector must:

(1) reside in the district; and

(2) own real property subject to district taxation.

assessor-collector:

(1) the terms of employment; and

(2) compensation. (Acts 61st Leg., R.S., Ch. 699,

Sec. 14 (part).)

CHAPTER 1022. EAST COKE COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1022.001. DEFINITIONS

Sec. 1022.002. AUTHORITY FOR CREATION

Sec. 1022.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1022.004. DISTRICT TERRITORY

Sec. 1022.005. CORRECTION OF INVALID PROCEDURES

Sec. 1022.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1022.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1022.008-1022.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1022.051. BOARD ELECTION; TERM

Sec. 1022.052. NOTICE OF ELECTION

Sec. 1022.053. BALLOT PETITION

Sec. 1022.054. QUALIFICATIONS FOR OFFICE

Sec. 1022.055. BOND

Sec. 1022.056. BOARD VACANCY

Sec. 1022.057. OFFICERS

Sec. 1022.058. COMPENSATION; EXPENSES

Sec. 1022.059. VOTING REQUIREMENT

Sec. 1022.060. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR

Sec. 1022.061. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1022.062. EMPLOYEES; APPOINTMENT AND DISMISSAL OF

STAFF; CONTRACT WITH DOCTORS

Sec. 1022.063. INDEPENDENT CONTRACTS

Sec. 1022.064. SENIORITY; RETIREMENT BENEFITS

[Sections 1022.065-1022.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1022.101. DISTRICT RESPONSIBILITY

Sec. 1022.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1022.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1022.104. HOSPITAL SYSTEM

Sec. 1022.105. RULES

Sec. 1022.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1022.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1022.108. EMINENT DOMAIN

Sec. 1022.109. GIFTS AND ENDOWMENTS

Sec. 1022.110. CONSTRUCTION OR PURCHASE CONTRACTS

Sec. 1022.111. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1022.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT

Sec. 1022.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1022.114. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1022.115. AUTHORITY TO SUE AND BE SUED

[Sections 1022.116-1022.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1022.151. BUDGET

Sec. 1022.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1022.153. AMENDMENTS TO BUDGET

Sec. 1022.154. RESTRICTION ON EXPENDITURES

Sec. 1022.155. FISCAL YEAR

Sec. 1022.156. AUDIT

Sec. 1022.157. INSPECTION OF AUDIT AND DISTRICT

RECORDS

Sec. 1022.158. FINANCIAL REPORT

Sec. 1022.159. DEPOSITORY

Sec. 1022.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1022.161-1022.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1022.201. GENERAL OBLIGATION BONDS

Sec. 1022.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1022.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1022.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1022.205. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1022.206. REVENUE BONDS

Sec. 1022.207. REFUNDING BONDS

Sec. 1022.208. BONDS EXEMPT FROM TAXATION

[Sections 1022.209-1022.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1022.251. IMPOSITION OF AD VALOREM TAX

Sec. 1022.252. TAX RATE

Sec. 1022.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR

Sec. 1022.254. ASSESSMENT AND COLLECTION BY DISTRICT

TAX ASSESSOR-COLLECTOR

CHAPTER 1022. EAST COKE COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1022.001.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 East Coke County Hospital

District. (New.)

Sec.1022.002.AUTHORITY FOR CREATION. The district is

created under the authority of Section 9, Article IX, Texas

Constitution. (Acts 61st Leg., R.S., Ch. 444, Sec. 1.)

Sec.1022.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 61st Leg., R.S., Ch. 444, Sec. 22 (part).)

Sec.1022.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of County

Commissioners Precincts 2 and 4 of Coke County, Texas, as those

boundaries existed on April 16, 1969. (Acts 61st Leg., R.S., Ch.

444, Sec. 2.)

Sec.1022.005.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 61st Leg., R.S., Ch. 444, Sec. 23 (part).)

Sec. 1022.006. 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 61st

Leg., R.S., Ch. 444, Sec. 21 (part).)

Sec.1022.007.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 61st Leg., R.S., Ch. 444, Sec. 21 (part).)

[Sections 1022.008-1022.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1022.051.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. (Acts 61st Leg., R.S., Ch. 444, Sec. 5(a) (part).)

Sec.1022.052.NOTICE OF ELECTION. At least 30 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper or newspapers that

individually or collectively have general circulation in the

district. (Acts 61st Leg., R.S., Ch. 444, Sec. 5(a) (part).)

Sec.1022.053.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 qualified property taxpaying

voters; and

(2) filed at least 10 days before the date of the

election. (Acts 61st Leg., R.S., Ch. 444, Sec. 5(a) (part).)

Sec.1022.054.QUALIFICATIONS FOR OFFICE. (a) A person may

not be elected or appointed as a director unless the person is:

(1) a district resident;

(2) a freeholder; and

(3) a qualified voter.

(b) A person is not eligible to serve as a director if the

person is:

(1) the district administrator;

(2) a district employee; or

(3) a hospital staff member. (Acts 61st Leg., R.S.,

Ch. 444, Sec. 5(b).)

Sec.1022.055.BOND. (a) Each director shall execute a

good and sufficient bond for $10,000 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. (Acts

61st Leg., R.S., Ch. 444, Sec. 5(a) (part).)

Sec.1022.056.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. 444,

Sec. 5(a) (part).)

Sec.1022.057.OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its

members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

unexpired term. (Acts 61st Leg., R.S., Ch. 444, Sec. 5(c) (part).)

Sec.1022.058.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 61st Leg., R.S., Ch.

444, Sec. 5(c) (part).)

Sec.1022.059.VOTING REQUIREMENT. A concurrence of three

directors is sufficient in any matter relating to district

business. (Acts 61st Leg., R.S., Ch. 444, Sec. 5(c) (part).)

Sec. 1022.060. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR. (a) The board may appoint a qualified person as a

district administrator.

(b) The board may appoint one or more assistant

administrators.

administrator serve at the will of the board and are entitled to 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 other conditions the board may require.

(Acts 61st Leg., R.S., Ch. 444, Sec. 6 (part).)

Sec.1022.061.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 61st

Leg., R.S., Ch. 444, Sec. 6 (part).)

Sec. 1022.062. EMPLOYEES; APPOINTMENT AND DISMISSAL OF

STAFF; CONTRACT WITH DOCTORS. (a) The board may appoint to or

dismiss from the staff or contract with any doctors the board

considers necessary for the efficient operation of the district and

may make temporary appointments as necessary.

(b) The district may employ fiscal agents, accountants,

architects, and attorneys the board considers proper.

authority to hire district employees, including technicians and

nurses. (Acts 61st Leg., R.S., Ch. 444, Secs. 6 (part), 17.)

Sec.1022.063.INDEPENDENT CONTRACTS. For any purpose

permitted by applicable state law, the board may enter into an

independent contract with:

(1) a person licensed to practice medicine in this

state;

(2) a professional association that is organized under

the Texas Professional Association Act (Article 1528f, Vernon's

Texas Civil Statutes); or

(3) a nonprofit organization that is organized under

and in compliance with Subchapter A, Chapter 162, Occupations Code.

(Acts 61st Leg., R.S., Ch. 444, Sec. 6 (part).)

Sec.1022.064.SENIORITY; RETIREMENT BENEFITS. The board

may adopt rules relating to the seniority of district employees,

including rules for a retirement plan based on seniority. (Acts

61st Leg., R.S., Ch. 444, Sec. 6 (part).)

[Sections 1022.065-1022.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1022.101.DISTRICT RESPONSIBILITY. (a) The district

has full responsibility for providing hospital care for the

district's indigent residents.

(b) The district shall provide all necessary hospital and

medical care for the district's needy inhabitants. (Acts 61st

Leg., R.S., Ch. 444, Secs. 3 (part), 20 (part).)

Sec. 1022.102. 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 for hospital purposes or to provide medical care.

(Acts 61st Leg., R.S., Ch. 444, Secs. 3 (part), 20 (part).)

Sec.1022.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 61st Leg., R.S., Ch.

444, Sec. 6 (part).)

Sec.1022.104.HOSPITAL SYSTEM. (a) 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.

(b) The hospital system may include:

(1) facilities for domiciliary care of the sick,

injured, or geriatric;

(2) facilities for outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses' domiciliaries and training

centers;

(6) blood banks;

(7) community mental health centers;

(8) research centers or laboratories; and

(9) any other facilities the board considers necessary

for hospital care. (Acts 61st Leg., R.S., Ch. 444, Secs. 3 (part),

10 (part).)

Sec.1022.105.RULES. The board may adopt rules governing

the operation of the hospital, the hospital system, and the

district's staff and employees. (Acts 61st Leg., R.S., Ch. 444,

Sec. 6 (part).)

Sec.1022.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of making purchases and

expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 61st

Leg., R.S., Ch. 444, Sec. 11 (part).)

Sec. 1022.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location of buildings required to maintain an adequate hospital

system.

(b) The board may lease all or part of the district's

buildings or other facilities on terms considered to be in the best

interest of the district's inhabitants. The term of the lease may

not exceed 25 years.

district's hospital system and mortgage or pledge the property as

security for the payment of the purchase price. A contract entered

into under this subsection must provide that the entire obligation

be retired not later than the fifth anniversary of the date of the

contract.

(d) The district may sell or otherwise dispose of any

property, including equipment, on terms the board finds are in the

best interest of the district's inhabitants. (Acts 61st Leg.,

R.S., Ch. 444, Secs. 10 (part), 11 (part).)

Sec.1022.108.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 for the district to exercise

a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 61st Leg., R.S., Ch. 444, Sec.

15.)

Sec.1022.109.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 61st Leg., R.S., Ch. 444,

Sec. 19.)

Sec.1022.110.CONSTRUCTION OR PURCHASE CONTRACTS. A

construction or purchase contract that involves the expenditure of

more than $2,000 may be made only after advertising in the manner

provided by Chapter 252 and Subchapter C, Chapter 262, Local

Government Code. (Acts 61st Leg., R.S., Ch. 444, Sec. 11 (part).)

Sec.1022.111.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a district facility. (Acts 61st Leg., R.S., Ch. 444, Sec. 10

(part).)

Sec. 1022.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

CARE AND TREATMENT. (a) The board may contract with a county or

municipality located outside the district's boundaries for the

hospitalization of a sick or injured person of that county or

municipality.

(b) The board may contract with this state or a federal

agency for the hospital treatment of a sick or injured person.

(Acts 61st Leg., R.S., Ch. 444, Sec. 6 (part).)

Sec. 1022.113. 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 for the hospital or welfare

needs of district inhabitants. (Acts 61st Leg., R.S., Ch. 444, Sec.

6 (part).)

Sec.1022.114.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 who are 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 costs of

the care and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district administrator may collect the amount from

the patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the 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 61st Leg., R.S., Ch. 444, Sec. 18.)

Sec.1022.115.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 are entitled. (Acts 61st

Leg., R.S., Ch. 444, Sec. 6 (part).)

[Sections 1022.116-1022.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1022.151.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 in 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 61st Leg., R.S., Ch. 444, Sec. 7 (part).)

Sec.1022.152.NOTICE; HEARING; ADOPTION 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 have general

circulation in the district.

present and participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the taxpayers

and that the law warrants. (Acts 61st Leg., R.S., Ch. 444, Sec. 7

(part).)

Sec.1022.153.AMENDMENTS TO BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 61st Leg., R.S., Ch. 444, Sec. 7 (part).)

Sec.1022.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 61st Leg., R.S., Ch. 444, Sec. 7 (part).)

Sec.1022.155.FISCAL YEAR. The district operates on a

fiscal year that begins on July 1 and ends on June 30. (Acts 61st

Leg., R.S., Ch. 444, Sec. 7 (part).)

Sec.1022.156.AUDIT. (a) The district 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 61st Leg., R.S., Ch. 444,

Sec. 7 (part).)

Sec.1022.157.INSPECTION OF AUDIT AND DISTRICT RECORDS.

The audit and other district records shall be open to inspection at

the district's principal office. (Acts 61st Leg., R.S., Ch. 444,

Sec. 7 (part).)

Sec.1022.158.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 disbursements of that

money. (Acts 61st Leg., R.S., Ch. 444, Sec. 7 (part).)

Sec.1022.159.DEPOSITORY. (a) The board shall select one

or more banks in the district to serve as a depository for district

money.

(b) District money, other than money invested as provided by

Section 1022.160(b), and money transmitted to a bank for payment of

bonds or obligations issued by the district, shall be deposited as

received with the depository bank and shall remain on deposit.

the power of the board to place a part of district money on time

deposit or to purchase certificates of deposit. (Acts 61st Leg.,

R.S., Ch. 444, Sec. 12.)

Sec.1022.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Section 1022.107(c) and by

Subchapter E, 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 reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 61st Leg., R.S., Ch. 444, Secs. 6

(part), 11 (part).)

[Sections 1022.161-1022.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1022.201.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 or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 61st Leg., R.S., Ch. 444, Sec. 8(a) (part).)

Sec.1022.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued under Section

1022.201, 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 61st Leg., R.S., Ch. 444, Sec. 8(a)

(part).)

Sec.1022.203.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 election shall 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; and

(5) the maximum interest rate of the bonds.

Section 1251.003, Government Code. (Acts 61st Leg., R.S., Ch. 444,

Sec. 8(a) (part).)

Sec.1022.204.MATURITY OF GENERAL OBLIGATION BONDS.

District general obligation bonds must mature not later than 40

years after the date of issuance. (Acts 61st Leg., R.S., Ch. 444,

Sec. 8(d) (part).)

Sec.1022.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 61st Leg.,

R.S., Ch. 444, Sec. 8(d) (part).)

Sec.1022.206.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used 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 hospitals.

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, and 264.046-264.049, Health and Safety Code, for

issuance of revenue bonds by a county hospital authority. (Acts

61st Leg., R.S., Ch. 444, Sec. 9 (part).)

Sec.1022.207.REFUNDING BONDS. (a) The board may, without

an election, 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 the indebtedness to be refunded; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 61st

Leg., R.S., Ch. 444, Secs. 8(a) (part), (c) (part), 9 (part).)

Sec.1022.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) the transfer and issuance of the bonds; and

(3) profits made in the sale of the bonds. (Acts 61st

Leg., R.S., Ch. 444, Sec. 22 (part).)

[Sections 1022.209-1022.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1022.251.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 or other obligations issued or assumed by the district for

hospital purposes;

(2) provide for the operation and maintenance of the

district and hospital system;

(3) make improvements and additions to the hospital

system; and

(4) acquire necessary sites for the hospital system by

purchase, lease, or condemnation. (Acts 61st Leg., R.S., Ch. 444,

Secs. 4(b) (part), 13 (part).)

Sec.1022.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed 75 cents on each $100 valuation of 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 61st

Leg., R.S., Ch. 444, Secs. 4(b) (part), 13 (part).)

Sec. 1022.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR. (a) This section applies unless the board

elects to have taxes assessed and collected under Section 1022.254.

(b) The tax assessor-collector of Coke County shall assess

and collect taxes imposed by the district. (Acts 61st Leg., R.S.,

Ch. 444, Sec. 16 (part).)

Sec. 1022.254. ASSESSMENT AND COLLECTION BY DISTRICT TAX

ASSESSOR-COLLECTOR. (a) The board may elect to have district taxes

assessed and collected by a tax assessor-collector appointed by the

board. An election under this subsection must be made by December 1

and governs the manner in which taxes are assessed and collected,

until changed by a similar resolution.

(b) The district tax assessor-collector must:

(1) reside in the district; and

(2) own real property subject to district taxation.

assessor-collector:

(1) the terms of employment; and

(2) compensation. (Acts 61st Leg., R.S., Ch. 444,

Sec. 16 (part).)

CHAPTER 1023. EASTLAND MEMORIAL HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1023.001. DEFINITIONS

Sec. 1023.002. AUTHORITY FOR OPERATION

Sec. 1023.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1023.004. DISTRICT TERRITORY

Sec. 1023.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1023.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1023.007-1023.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1023.051. BOARD ELECTION; TERMS

Sec. 1023.052. NOTICE OF ELECTION

Sec. 1023.053. QUALIFICATIONS FOR OFFICE

Sec. 1023.054. BOARD VACANCY

Sec. 1023.055. OFFICERS

Sec. 1023.056. COMPENSATION; EXPENSES

Sec. 1023.057. VOTING REQUIREMENT

Sec. 1023.058. DISTRICT ADMINISTRATOR

Sec. 1023.059. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1023.060. ASSISTANT DISTRICT ADMINISTRATOR;

ATTORNEY

Sec. 1023.061. EMPLOYEES; APPOINTMENT AND RECRUITMENT OF

STAFF

Sec. 1023.062. PERSONNEL CONTRACTS

Sec. 1023.063. RETIREMENT BENEFITS

[Sections 1023.064-1023.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1023.101. DISTRICT RESPONSIBILITY

Sec. 1023.102. RESTRICTION ON COUNTY TAXATION AND DEBT

Sec. 1023.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1023.104. RULES

Sec. 1023.105. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1023.106. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1023.107. EMINENT DOMAIN

Sec. 1023.108. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 1023.109. GIFTS AND ENDOWMENTS

Sec. 1023.110. CONSTRUCTION CONTRACTS

Sec. 1023.111. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1023.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR SERVICES

Sec. 1023.113. PROVISION OF CERTAIN HEALTH SERVICES

Sec. 1023.114. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1023.115. REIMBURSEMENT FOR SERVICES

Sec. 1023.116. AUTHORITY TO SUE AND BE SUED

[Sections 1023.117-1023.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1023.151. BUDGET

Sec. 1023.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1023.153. AMENDMENTS TO BUDGET

Sec. 1023.154. RESTRICTION ON EXPENDITURES

Sec. 1023.155. FISCAL YEAR

Sec. 1023.156. ANNUAL AUDIT

Sec. 1023.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS

Sec. 1023.158. FINANCIAL REPORT

Sec. 1023.159. DEPOSITORY

Sec. 1023.160. SPENDING AND INVESTMENT RESTRICTIONS

Sec. 1023.161. GENERAL AUTHORITY TO BORROW MONEY;

SECURITY

Sec. 1023.162. AUTHORITY TO BORROW MONEY IN EMERGENCY;

SECURITY

[Sections 1023.163-1023.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1023.201. GENERAL OBLIGATION BONDS

Sec. 1023.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1023.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1023.204. REVENUE BONDS

Sec. 1023.205. REFUNDING BONDS

Sec. 1023.206. MATURITY OF BONDS

Sec. 1023.207. EXECUTION OF BONDS

Sec. 1023.208. BONDS EXEMPT FROM TAXATION

[Sections 1023.209-1023.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1023.251. IMPOSITION OF AD VALOREM TAX

Sec. 1023.252. TAX RATE

Sec. 1023.253. TAX ASSESSOR-COLLECTOR

[Sections 1023.254-1023.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1023.301. DISSOLUTION; ELECTION

Sec. 1023.302. NOTICE OF ELECTION

Sec. 1023.303. BALLOT

Sec. 1023.304. ELECTION RESULTS

Sec. 1023.305. TRANSFER OR ADMINISTRATION OF ASSETS

Sec. 1023.306. SALE OR TRANSFER OF ASSETS AND

LIABILITIES

Sec. 1023.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES

Sec. 1023.308. REPORT; DISSOLUTION ORDER

CHAPTER 1023. EASTLAND MEMORIAL HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1023.001.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 Eastland Memorial Hospital

District. (Acts 71st Leg., R.S., Ch. 221, Sec. 1.01.)

Sec.1023.002.AUTHORITY FOR OPERATION. The district

operates and is financed as provided by Section 9, Article IX, Texas

Constitution, and by this chapter. (Acts 71st Leg., R.S., Ch. 221,

Sec. 1.02.)

Sec.1023.003.ESSENTIAL PUBLIC FUNCTION. The district is

a public entity performing an essential public function. (Acts

71st Leg., R.S., Ch. 221, Sec. 7.11 (part).)

Sec.1023.004.DISTRICT TERRITORY. The district is

composed of the territory described by Section 1.03, Chapter 221,

Acts of the 71st Legislature, Regular Session, 1989. (New.)

Sec. 1023.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The state may not be obligated for the support or

maintenance of the district. (Acts 71st Leg., R.S., Ch. 221, Sec.

10.01 (part).)

Sec.1023.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 71st Leg., R.S., Ch. 221, Sec. 10.01 (part).)

[Sections 1023.007-1023.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1023.051.BOARD ELECTION; TERMS. (a) The district is

governed by a board of nine directors elected from the district at

large.

(b) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) an election shall be held on the uniform election

date in May of each year to elect the appropriate number of

directors. (Acts 71st Leg., R.S., Ch. 221, Secs. 4.01(a), 4.03(a),

Sec.1023.052.NOTICE OF ELECTION. Not earlier than 30 days

or later than 10 days before the date of an election of directors,

notice of the election shall be published one time in a newspaper

with general circulation in the district. (Acts 71st Leg., R.S.,

Ch. 221, Sec. 4.04.)

Sec.1023.053.QUALIFICATIONS FOR OFFICE. To be eligible

to be a candidate for or to serve as a director, a person must be:

(1) a district resident; and

(2) a qualified voter. (Acts 71st Leg., R.S., Ch. 221,

Sec. 4.06.)

Sec.1023.054.BOARD VACANCY. (a) A vacancy in the office

of director shall be filled for the unexpired term at the next

regular election.

(b) If at least five director positions become vacant, the

remaining directors may call a special election to fill the

vacancies for the unexpired terms. (Acts 71st Leg., R.S., Ch. 221,

Sec. 4.07.)

Sec.1023.055.OFFICERS. (a) The board shall elect a

president and a vice president from among its members.

(b) The board shall appoint a secretary.

(d) The board shall fill a vacancy in a board office for the

unexpired term. (Acts 71st Leg., R.S., Ch. 221, Secs. 4.08, 4.09.)

Sec.1023.056.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 71st Leg., R.S., Ch.

221, Sec. 4.10.)

Sec.1023.057.VOTING REQUIREMENT. A concurrence of a

majority of the directors voting is necessary in any matter

relating to district business. (Acts 71st Leg., R.S., Ch. 221, Sec.

4.11.)

Sec.1023.058.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 is entitled to compensation determined by the board.

the board may require the administrator to execute a bond in an

amount determined by the board of not less than $5,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

administrator's duties under this chapter.

(d) The board may pay for the bond with district money.

(Acts 71st Leg., R.S., Ch. 221, Secs. 4.12(a) (part), (b) (part),

Sec.1023.059.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 general affairs of the district. (Acts

71st Leg., R.S., Ch. 221, Sec. 4.15.)

Sec.1023.060.ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.

(a) The board may appoint qualified persons as:

(1) the assistant district administrator; and

(2) the attorney for the district.

(b) The assistant district administrator and attorney for

the district serve at the will of the board and are entitled to the

compensation determined by the board. (Acts 71st Leg., R.S., Ch.

221, Secs. 4.12(a) (part), (b) (part), (c) (part).)

Sec. 1023.061. EMPLOYEES; APPOINTMENT AND RECRUITMENT OF

STAFF. (a) The district may employ technicians, nurses, fiscal

agents, accountants, architects, additional attorneys, and other

necessary employees.

(b) 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 necessary.

authority to employ persons for the district.

(d) The board may recruit physicians and other health care

professionals or persons. (Acts 71st Leg., R.S., Ch. 221, Secs.

4.13, 4.14, 5.02 (part).)

Sec.1023.062.PERSONNEL CONTRACTS. (a) The board may

contract to provide administrative or other personnel for the

operation of the hospital facilities.

(b) The term of the contract may not exceed 25 years. (Acts

71st Leg., R.S., Ch. 221, Sec. 5.02 (part).)

Sec.1023.063.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 71st Leg., R.S., Ch.

221, Sec. 4.16.)

[Sections 1023.064-1023.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1023.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for:

(1) operating hospital facilities; and

(2) providing medical and hospital care for the

district's needy inhabitants. (Acts 71st Leg., R.S., Ch. 221, Sec.

5.02 (part).)

Sec.1023.102.RESTRICTION ON COUNTY TAXATION AND DEBT.

Eastland County may not impose a tax or issue bonds or other

obligations to provide hospital or medical care for district

residents. (Acts 71st Leg., R.S., Ch. 221, Sec. 5.01(b).)

Sec.1023.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 71st Leg., R.S., Ch.

221, Sec. 5.03.)

Sec.1023.104.RULES. The board may adopt rules governing:

(1) the operation of the hospital and hospital system;

and

(2) the duties, functions, and responsibilities of

district staff and employees. (Acts 71st Leg., R.S., Ch. 221, Sec.

5.04.)

Sec.1023.105.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method of making purchases and expenditures by

and for the district; and

(2) accounting and control procedures for the

district. (Acts 71st Leg., R.S., Ch. 221, Sec. 5.05.)

Sec. 1023.106. 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; and

(2) mortgage or pledge the property as security for

payment of the purchase price.

to individuals, corporations, or other legal entities.

(d) The board may sell or otherwise dispose of property,

including facilities or equipment, for the district. The board

shall give notice of intent to sell land or buildings by publishing

a notice of intent in a newspaper with general circulation in

Eastland County not later than the 30th day before the date of sale.

(Acts 71st Leg., R.S., Ch. 221, Sec. 5.06.)

Sec.1023.107.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in property located in district territory if the

interest is necessary for the district to exercise a right or

authority conferred by this chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, except that the

district is not required to deposit in the trial court money or a

bond as provided by Section 21.021(a), Property Code.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 71st Leg., R.S., Ch. 221, Sec.

5.09.)

Sec.1023.108.COST OF RELOCATING OR ALTERING PROPERTY. In

exercising the power of eminent domain, if the board requires

relocating, raising, lowering, rerouting, changing the grade of, or

altering the construction of any railroad, highway, pipeline, or

electric transmission and electric distribution, telegraph, or

telephone line, conduit, pole, or facility, the district shall pay

the actual cost of relocating, raising, lowering, rerouting,

changing the grade of, or altering the construction to provide

comparable replacement, without enhancement of facilities, after

deducting the net salvage value derived from the old facility.

(Acts 71st Leg., R.S., Ch. 221, Sec. 5.10.)

Sec.1023.109.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust for any

purpose and under any direction, limitation, or other provision

prescribed in writing by the donor that is consistent with the

proper management of the district. (Acts 71st Leg., R.S., Ch. 221,

Sec. 5.14.)

Sec.1023.110.CONSTRUCTION CONTRACTS. (a) The board may

enter into 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 competitive

bidding as provided by Subchapter B, Chapter 271, Local Government

Code. (Acts 71st Leg., R.S., Ch. 221, Sec. 5.07(a).)

Sec.1023.111.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a hospital facility for the district. (Acts 71st Leg., R.S., Ch.

221, Sec. 5.08.)

Sec. 1023.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

SERVICES. The board may contract with a political subdivision of

the state or a state or federal agency for the district to:

(1) furnish a mobile emergency medical service; or

(2) provide for the investigatory or welfare needs of

district inhabitants. (Acts 71st Leg., R.S., Ch. 221, Sec. 5.13.)

Sec.1023.113.PROVISION OF CERTAIN HEALTH SERVICES. The

district may:

(1) operate or provide for the operation of a mobile

emergency medical service; and

(2) establish and operate a home health service.

(Acts 71st Leg., R.S., Ch. 221, Sec. 5.02 (part).)

Sec.1023.114.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 financial circumstances of:

(1) the patient; and

(2) a relative of the patient who is 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 that the patient

or a relative of the patient who is legally responsible for the

patient's support cannot pay.

responsible for the patient's support 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 the relative to

pay the district a specified amount each week. The amount must be

based on the individual's ability to pay.

(d) The district administrator may collect money owed to the

district from the patient's estate or from that of a relative who

was legally responsible for the patient's support in the manner

provided by law for the collection of expenses in the last illness

of a deceased person.

(e) If there is a dispute relating to an individual's

ability to pay or if the district administrator has any doubt

concerning an individual's ability to pay, the board shall:

(1) call witnesses;

(2) hear and resolve the question; and

(3) issue a final order.

(f) A final order of the board may be appealed to a district

court in Eastland County. The substantial evidence rule applies to

the appeal. (Acts 71st Leg., R.S., Ch. 221, Secs. 5.11(a), (c),

(d), (e), (f).)

Sec.1023.115.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 and treatment of a sick or injured person of that county,

municipality, or hospital, as provided by Chapter 61, Health and

Safety Code.

(b) The board shall require the sheriff of Eastland County

or the police chief of the City of Eastland to reimburse the

district for the district's care and treatment of a person who is

confined in a jail facility of Eastland County or the City of

Eastland and is not a district resident.

the state or federal government for that government to reimburse

the district for treatment of a sick or injured person. (Acts 71st

Leg., R.S., Ch. 221, Sec. 5.12.)

Sec.1023.116.AUTHORITY TO SUE AND BE SUED. The board may

sue and be sued on behalf of the district. (Acts 71st Leg., R.S.,

Ch. 221, Sec. 5.15.)

[Sections 1023.117-1023.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1023.151.BUDGET. (a) The district administrator

shall prepare a proposed annual budget for the district.

(b) The proposed budget must contain a complete financial

statement, including a statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash on hand in each district fund;

(3) the amount of money received by the district from

all sources during the previous year;

(4) the amount of money available to the district from

all sources during the ensuing year;

(5) the amount of the balances expected at the end of

the year in which the budget is being prepared;

(6) the estimated amount of revenue and balances

available to cover the proposed budget; and

(7) the estimated tax rate required. (Acts 71st Leg.,

R.S., Ch. 221, Sec. 6.04.)

Sec.1023.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) The board shall publish notice of the hearing in a

newspaper with general circulation in the district not later than

the 10th day before the date of the hearing.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the

taxpayers.

(e) The budget is effective only after adoption by the

board. (Acts 71st Leg., R.S., Ch. 221, Sec. 6.05.)

Sec.1023.153.AMENDMENTS TO BUDGET. After adoption, the

annual budget may be amended on the board's approval. (Acts 71st

Leg., R.S., Ch. 221, Sec. 6.06.)

Sec.1023.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 71st Leg., R.S., Ch. 221, Sec. 6.07.)

Sec.1023.155.FISCAL YEAR. (a) The district operates on

the fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) when revenue bonds of the district are

outstanding; or

(2) more than once in a 24-month period. (Acts 71st

Leg., R.S., Ch. 221, Sec. 6.01.)

Sec.1023.156.ANNUAL AUDIT. The board annually shall have

an audit made of the district's financial condition. (Acts 71st

Leg., R.S., Ch. 221, Sec. 6.02.)

Sec. 1023.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS. The annual audit and other district records are open to

inspection during regular business hours at the district's

principal office. (Acts 71st Leg., R.S., Ch. 221, Sec. 6.03.)

Sec.1023.158.FINANCIAL REPORT. As soon as practicable

after the close of the fiscal year, the district administrator

shall prepare for the board:

(1) a sworn statement of the amount of district money;

and

(2) an account of the disbursements of that money.

(Acts 71st Leg., R.S., Ch. 221, Sec. 6.08.)

Sec.1023.159.DEPOSITORY. (a) The board shall select at

least one bank to serve as a depository for district money.

(b) District money, other than money invested as provided by

Section 1023.160(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. This subsection does not limit the power of the board to

place a portion of district money on time deposit or to purchase

certificates of deposit.

amount that exceeds the maximum amount secured by the Federal

Deposit Insurance Corporation unless the bank first executes a bond

or other security in an amount sufficient to secure from loss the

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation. (Acts 71st Leg., R.S., Ch. 221,

Sec. 6.10.)

Sec.1023.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as provided by Sections 1023.110, 1023.161, 1023.162,

1023.201, 1023.204, and 1023.205, the district may not incur a debt

payable from district revenue other than revenue on hand or to be on

hand in the current and immediately following district fiscal

years.

(b) The board may invest operating, depreciation, or

building reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 71st Leg., R.S., Ch. 221, Sec. 6.09.)

Sec.1023.161.GENERAL AUTHORITY TO BORROW MONEY; SECURITY.

(a) The board may borrow money at a rate of interest 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 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.

mature not later than the first anniversary of the date the loan is

made. A loan for which other district revenue is pledged must

mature not later than the fifth anniversary of the date the loan is

made. (Acts 71st Leg., R.S., Ch. 221, Sec. 5.17.)

Sec. 1023.162. AUTHORITY TO BORROW MONEY IN EMERGENCY;

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 determines

that:

(1) money is not available to meet lawful 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) tax revenue to be collected 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.

mature not later than the first anniversary of the date the loan is

made. A loan for which other 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 tax revenue or bonds are pledged to pay

the loan, the purpose for which the pledged taxes were imposed or

the pledged bonds were authorized. (Acts 71st Leg., R.S., Ch. 221,

Sec. 5.16.)

[Sections 1023.163-1023.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1023.201.GENERAL OBLIGATION BONDS. The board may

issue and sell general obligation bonds authorized by an election

in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements; or

(2) equip buildings or improvements for hospital

purposes. (Acts 71st Leg., R.S., Ch. 221, Sec. 7.01.)

Sec.1023.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1023.201, 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

limit approved by the voters at the election authorizing the

imposition of the tax. (Acts 71st Leg., R.S., Ch. 221, Sec. 7.02.)

Sec.1023.203.GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the district voters voting at an

election held for that purpose.

(b) The board may order a bond election.

(1) the nature and date of the election;

(2) the hours during which the polls will be open;

(3) the location of the polling places;

(4) the amounts of the bonds to be authorized; and

(5) the maximum maturity of the bonds.

(d) Notice of a bond election must be given as provided by

Section 1251.003, Government Code.

(e) The board shall declare the results of the election.

(Acts 71st Leg., R.S., Ch. 221, Sec. 7.03.)

Sec.1023.204.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, equip, or

renovate buildings or improvements for hospital purposes; or

(2) acquire sites to be used 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.

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, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority.

(Acts 71st Leg., R.S., Ch. 221, Sec. 7.04.)

Sec.1023.205.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 the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 71st

Leg., R.S., Ch. 221, Secs. 7.05(a), (c) (part).)

Sec.1023.206.MATURITY OF BONDS. District bonds must

mature not later than 50 years after the date of issuance. (Acts

71st Leg., R.S., Ch. 221, Sec. 7.06 (part).)

Sec.1023.207.EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 71st Leg.,

R.S., Ch. 221, Sec. 7.07.)

Sec.1023.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or by 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 71st

Leg., R.S., Ch. 221, Sec. 7.11 (part).)

[Sections 1023.209-1023.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1023.251.IMPOSITION OF AD VALOREM TAX. (a) The board

may impose a tax on all property in the district subject to district

taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

or interest on revenue bonds issued under this chapter. (Acts 71st

Leg., R.S., Ch. 221, Secs. 8.01(a) (part), (c), (d), 8.02(b).)

Sec.1023.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed the limit approved by the voters at the

election authorizing the imposition of a tax.

(b) The tax rate for all purposes may not exceed 37.5 cents

on each $100 valuation of all taxable property in the district.

income of the district from sources other than taxation. (Acts 71st

Leg., R.S., Ch. 221, Secs. 8.01(a) (part), (b), 8.03 (part).)

Sec.1023.253.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 71st Leg., R.S., Ch. 221, Sec.

8.04(b).)

[Sections 1023.254-1023.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec.1023.301.DISSOLUTION; ELECTION. (a) The district

may be dissolved and the district's assets and liabilities sold or

transferred to another person only on approval of a majority of the

district voters voting at an election held for that purpose.

(b) A majority of the directors may order an election to

dissolve the district and transfer its assets and liabilities.

a petition requesting an election that is signed by at least 15

percent of the registered voters in the district, according to the

most recent official list of registered 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 71st Leg., R.S., Ch.

221, Secs. 9.01, 9.02(a), (b) (part), 9.03, 9.05(b).)

Sec.1023.302.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 must appear at least 35 days

before the date set for the election. (Acts 71st Leg., R.S., Ch.

221, Sec. 9.04.)

Sec.1023.303.BALLOT. The ballot for an election under

this subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the Eastland Memorial Hospital

District and the transfer of its assets and liabilities in the

following manner: __________ (insert provisions for transfer)."

(Acts 71st Leg., R.S., Ch. 221, Sec. 9.06.)

Sec.1023.304.ELECTION RESULTS. (a) If the board finds

the election results favor the proposition to dissolve the

district, the board shall:

(1) issue an order declaring the district dissolved;

and

(2) proceed with the sale or transfer of the district's

assets and liabilities according to the plan proposed on the

ballot.

(b) If the board finds 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

election in which voters disapproved the proposition. (Acts 71st

Leg., R.S., Ch. 221, Sec. 9.07.)

Sec.1023.305.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 district's assets to Eastland County

or another governmental entity in Eastland County; or

(2) administer the district's assets and debts until

all assets have been disposed of and all district debts have been

paid or settled.

(b) If the board makes the transfer under Subsection (a)(1),

Eastland County or the governmental entity assumes all debts and

obligations of the district at the time of the transfer, and the

district is dissolved. (Acts 71st Leg., R.S., Ch. 221, Secs.

9.08(a), (b).)

Sec.1023.306.SALE OR TRANSFER OF ASSETS AND LIABILITIES.

(a) 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 and liabilities may not:

(1) contravene a trust indenture or bond resolution

relating to the outstanding bonds of the district; or

(2) diminish or impair the rights of the holders of any

outstanding bonds, warrants, or other obligations of the district.

liabilities must satisfy the debt and bond obligations of the

district in a manner that protects the interests of citizens in the

district, including the citizens' collective property rights in the

district's assets.

(d) The district may not transfer or dispose of the

district's assets except for due compensation unless:

(1) the transfer is made to another governmental

agency embracing the district; and

(2) the transferred assets are used for the benefit of

the citizens formerly in the district.

(e) A grant from federal funds is an obligation to be repaid

in satisfaction. (Acts 71st Leg., R.S., Ch. 221, Secs. 9.08(h),

(i).)

Sec. 1023.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES. (a) If a majority of the votes in an election to dissolve

the district favor dissolution, the board shall:

(1) determine the debt owed by the district; and

(2) impose a tax on the taxable property in the

district at a rate that will raise sufficient revenue to pay the

debt owed by the district.

(b) On the payment of all outstanding debts and obligations

of the district, the board shall order the secretary to return to

each district taxpayer the taxpayer's pro rata share of all unused

tax money.

surplus tax money be credited to the taxpayer's county taxes. If a

taxpayer requests the credit, the board shall direct the secretary

to transmit the funds to the county tax assessor-collector. (Acts

71st Leg., R.S., Ch. 221, Secs. 9.08(c), (d), (e).)

Sec.1023.308.REPORT; DISSOLUTION ORDER. (a) After the

district has paid all district debts and has disposed of all

district assets as prescribed by this subchapter, the board shall

file a written report with the Commissioners Court of Eastland

County summarizing the board's actions in dissolving the district.

(b) Not later than the 10th day after the date the

Commissioners Court of Eastland County receives the report and

determines that the requirements of this subchapter have been

fulfilled, the commissioners court shall enter an order dissolving

the district and releasing the board from any further duty or

obligation. (Acts 71st Leg., R.S., Ch. 221, Secs. 9.08(f), (g).)

CHAPTER 1024. ECTOR COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1024.001. DEFINITIONS

Sec. 1024.002. AUTHORITY FOR OPERATION

Sec. 1024.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1024.004. DISTRICT TERRITORY

Sec. 1024.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1024.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1024.007-1024.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1024.051. BOARD ELECTION; TERMS

Sec. 1024.052. NOTICE OF ELECTION

Sec. 1024.053. BALLOT PETITION

Sec. 1024.054. QUALIFICATIONS FOR OFFICE

Sec. 1024.055. BOND OR INSURANCE

Sec. 1024.056. BOARD VACANCY

Sec. 1024.057. OFFICERS

Sec. 1024.058. COMPENSATION; EXPENSES

Sec. 1024.059. VOTING REQUIREMENT

Sec. 1024.060. DISTRICT ADMINISTRATOR

Sec. 1024.061. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1024.062. ASSISTANT DISTRICT ADMINISTRATORS

Sec. 1024.063. ATTORNEY

Sec. 1024.064. APPOINTMENT OF STAFF

Sec. 1024.065. EMPLOYEES

Sec. 1024.066. RETIREMENT BENEFITS

[Sections 1024.067-1024.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1024.101. DISTRICT RESPONSIBILITY

Sec. 1024.102. RESTRICTION ON COUNTY TAXATION AND DEBT

Sec. 1024.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1024.104. RULES

Sec. 1024.105. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1024.106. MOBILE EMERGENCY MEDICAL SERVICE

Sec. 1024.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1024.108. EMINENT DOMAIN

Sec. 1024.109. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 1024.110. GIFTS AND ENDOWMENTS

Sec. 1024.111. CONSTRUCTION CONTRACTS

Sec. 1024.112. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1024.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR SERVICES

Sec. 1024.114. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1024.115. REIMBURSEMENT FOR SERVICES

Sec. 1024.116. AUTHORITY TO SUE AND BE SUED; VENUE;

NONWAIVER OF IMMUNITY

[Sections 1024.117-1024.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1024.151. BUDGET

Sec. 1024.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1024.153. AMENDMENTS TO BUDGET

Sec. 1024.154. RESTRICTION ON EXPENDITURES

Sec. 1024.155. FISCAL YEAR

Sec. 1024.156. ANNUAL AUDIT

Sec. 1024.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS

Sec. 1024.158. FINANCIAL REPORT

Sec. 1024.159. DEPOSITORY

Sec. 1024.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1024.161-1024.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1024.201. GENERAL OBLIGATION BONDS

Sec. 1024.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1024.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1024.204. REVENUE BONDS

Sec. 1024.205. REFUNDING BONDS

Sec. 1024.206. MATURITY OF BONDS

Sec. 1024.207. EXECUTION OF BONDS

Sec. 1024.208. BONDS EXEMPT FROM TAXATION

[Sections 1024.209-1024.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1024.251. IMPOSITION OF AD VALOREM TAX

Sec. 1024.252. TAX RATE

Sec. 1024.253. ELECTION TO INCREASE MAXIMUM TAX RATE

Sec. 1024.254. TAX ASSESSOR-COLLECTOR

CHAPTER 1024. ECTOR COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1024.001.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 Ector County Hospital

District. (Acts 71st Leg., R.S., Ch. 550, Sec. 1.01.)

Sec.1024.002.AUTHORITY FOR OPERATION. The district

operates and is financed as provided by Section 9, Article IX, Texas

Constitution, and by this chapter. (Acts 71st Leg., R.S., Ch. 550,

Sec. 1.02.)

Sec.1024.003.ESSENTIAL PUBLIC FUNCTION. The district is

a public entity performing an essential public function. (Acts

71st Leg., R.S., Ch. 550, Sec. 7.11 (part).)

Sec.1024.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Ector County,

Texas. (Acts 71st Leg., R.S., Ch. 550, Sec. 1.03.)

Sec. 1024.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The state may not become obligated for the support or

maintenance of the district. (Acts 71st Leg., R.S., Ch. 550, Sec.

9.01 (part).)

Sec.1024.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 71st Leg., R.S., Ch. 550, Sec. 9.01 (part).)

[Sections 1024.007-1024.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1024.051.BOARD ELECTION; TERMS. (a) The district is

governed by a board of seven directors.

(b) Except as provided by court order, one director is

elected from each commissioners precinct and three directors are

elected from the district at large. At an election for directors in

which two directors are to be elected at large, the candidates

receiving the highest and second highest number of votes are

elected.

(d) An election shall be held on the uniform election date

in May of each even-numbered year to elect the appropriate number of

directors. (Acts 71st Leg., R.S., Ch. 550, Secs. 4.01(a), 4.03(a),

Sec.1024.052.NOTICE OF ELECTION. At least 35 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper with general circulation in the

district. (Acts 71st Leg., R.S., Ch. 550, Sec. 4.04.)

Sec.1024.053.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:

(1) be signed by at least 50 registered voters of the

district as determined by the most recent official list of

registered voters;

(2) be filed not later than 5 p.m. on the 45th day

before the date of the election; and

(3) specify the commissioners precinct the candidate

wants to represent or specify that the candidate wants to represent

the district at large. (Acts 71st Leg., R.S., Ch. 550, Sec. 4.05.)

Sec.1024.054.QUALIFICATIONS FOR OFFICE. (a) To be

eligible to be a candidate for or to serve as a director, a person

must be:

(1) a district resident; and

(2) a qualified voter.

(b) In addition to Subsection (a), a person who is elected

from a commissioners precinct or who is appointed to fill a vacancy

for a commissioners precinct must be a resident of that

commissioners precinct.

71st Leg., R.S., Ch. 550, Sec. 4.06.)

Sec.1024.055.BOND OR INSURANCE. (a) Before assuming the

duties of office, each director must execute a bond payable to the

district or purchase an appropriate insurance policy that names the

district as its sole beneficiary, conditioned on the faithful

performance of the director's duties.

(b) For each director, the board shall determine the

appropriate type and value of the bond or insurance policy.

director's insurance policy and premiums with district money.

(d) Each director's bond or insurance policy shall be kept

in the district's permanent records. (Acts 71st Leg., R.S., Ch.

550, Sec. 4.07.)

Sec.1024.056.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 71st Leg., R.S., Ch. 550,

Sec. 4.08.)

Sec.1024.057.OFFICERS. (a) The board shall elect a

president and a vice president from among its members.

(b) The board shall appoint a secretary, who need not be a

director.

(d) The board shall fill a vacancy in a board office for the

unexpired term. (Acts 71st Leg., R.S., Ch. 550, Secs. 4.09, 4.10.)

Sec.1024.058.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 71st Leg., R.S., Ch.

550, Sec. 4.11.)

Sec.1024.059.VOTING REQUIREMENT. A concurrence of a

majority of the directors voting is necessary in any matter

relating to district business. (Acts 71st Leg., R.S., Ch. 550, Sec.

4.12.)

Sec.1024.060.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 is entitled to the compensation determined by the board.

the administrator must execute a bond in the amount determined by

the board of not less than $5,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

administrator's duties under this chapter.

(d) The board may pay for the bond with district money.

(Acts 71st Leg., R.S., Ch. 550, Secs. 4.13(a) (part), (c) (part),

(d).)

Sec.1024.061.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 general affairs of the district. (Acts

71st Leg., R.S., Ch. 550, Sec. 4.16.)

Sec.1024.062.ASSISTANT DISTRICT ADMINISTRATORS. (a) The

district administrator may appoint one or more qualified persons as

assistant district administrators for the district.

(b) An assistant district administrator:

(1) serves at the will of the district administrator;

and

(2) is entitled to the compensation determined by the

board. (Acts 71st Leg., R.S., Ch. 550, Secs. 4.13(b), (c) (part).)

Sec.1024.063.ATTORNEY. (a) The board may appoint a

qualified person as the attorney for the district.

(b) The attorney for the district serves at the will of the

board and is entitled to the compensation determined by the board.

(Acts 71st Leg., R.S., Ch. 550, Secs. 4.13(a) (part), (c) (part).)

Sec.1024.064.APPOINTMENT OF STAFF. 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 necessary. (Acts 71st Leg., R.S., Ch. 550, Sec.

4.14.)

Sec. 1024.065. EMPLOYEES. (a) The district may employ

technicians, nurses, fiscal agents, accountants, architects,

additional attorneys, and other necessary employees.

(b) The board may delegate to the district administrator the

authority to employ persons for the district. (Acts 71st Leg.,

R.S., Ch. 550, Sec. 4.15.)

Sec.1024.066.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 71st Leg., R.S., Ch.

550, Sec. 4.17.)

[Sections 1024.067-1024.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1024.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for:

(1) operating hospital facilities; and

(2) providing medical and hospital care for the

district's needy inhabitants. (Acts 71st Leg., R.S., Ch. 550, Sec.

5.02 (part).)

Sec.1024.102.RESTRICTION ON COUNTY TAXATION AND DEBT.

Ector County may not impose a tax or issue bonds or other

obligations for hospital purposes or to provide medical care for

district residents. (Acts 71st Leg., R.S., Ch. 550, Sec. 5.01(b).)

Sec.1024.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the district's

hospital system and the district's money and resources. (Acts 71st

Leg., R.S., Ch. 550, Sec. 5.03.)

Sec.1024.104.RULES. The board may adopt rules governing:

(1) the operation of the hospital and hospital system;

and

(2) the duties, functions, and responsibilities of

district staff and employees. (Acts 71st Leg., R.S., Ch. 550, Sec.

5.04.)

Sec.1024.105.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method of making purchases and expenditures by

and for the district; and

(2) accounting and control procedures for the

district. (Acts 71st Leg., R.S., Ch. 550, Sec. 5.05.)

Sec.1024.106.MOBILE EMERGENCY MEDICAL SERVICE. The

district may operate or provide for the operation of a mobile

emergency medical service. (Acts 71st Leg., R.S., Ch. 550, Sec.

5.02 (part).)

Sec. 1024.107. 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 property, including facilities and

equipment, for the district for use in the hospital system; and

(2) mortgage or pledge the property as security for

the payment of the purchase price.

district.

(d) The board may sell or otherwise dispose of property,

including facilities or equipment, for the district. (Acts 71st

Leg., R.S., Ch. 550, Sec. 5.06.)

Sec.1024.108.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in property located in district territory if the

interest is necessary to exercise a right or authority conferred 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 71st Leg., R.S., Ch. 550, Sec.

5.09.)

Sec.1024.109.COST OF RELOCATING OR ALTERING PROPERTY. In

exercising the power of eminent domain, if the board requires

relocating, raising, lowering, rerouting, changing the grade of, or

altering the construction of any railroad, highway, pipeline, or

electric transmission and electric distribution, telegraph, or

telephone line, conduit, pole, or facility, the district must bear

the actual cost of relocating, raising, lowering, rerouting,

changing the grade, or altering the construction to provide

comparable replacement without enhancement of facilities, after

deducting the net salvage value derived from the old facility.

(Acts 71st Leg., R.S., Ch. 550, Sec. 5.10.)

Sec.1024.110.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust for any

purpose and under any direction, limitation, or other provision

prescribed in writing by the donor that is consistent with the

proper management of the district. (Acts 71st Leg., R.S., Ch. 550,

Sec. 5.14.)

Sec.1024.111.CONSTRUCTION CONTRACTS. (a) The board may

enter into 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 competitive

bidding as provided by Subchapter B, Chapter 271, Local Government

Code. (Acts 71st Leg., R.S., Ch. 550, Sec. 5.07(a).)

Sec.1024.112.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a hospital facility for the district. (Acts 71st Leg., R.S., Ch.

550, Sec. 5.08.)

Sec. 1024.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

SERVICES. The board may contract with a political subdivision of

this state or with a state or federal agency for the district to:

(1) furnish a mobile emergency medical service; or

(2) provide for the investigatory or welfare needs of

district inhabitants. (Acts 71st Leg., R.S., Ch. 550, Sec. 5.13.)

Sec.1024.114.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 financial circumstances of:

(1) the patient; or

(2) a relative of the patient who is 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 that the patient

or a relative of the patient who is legally responsible for the

patient's support cannot pay.

responsible for the patient's support 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 the relative to

pay the district a specified amount each week. The amount must be

based on the individual's ability to pay.

(d) The district administrator may collect money owed to the

district from the patient's estate or from that of a relative who

was legally responsible for the patient's support in the manner

provided by law for collection of expenses of the last illness of a

deceased person.

(e) If there is a dispute relating to an individual's

ability to pay or if the district administrator has any doubt

concerning an individual's ability to pay, the board shall:

(1) call witnesses;

(2) hear and resolve the question; and

(3) issue a final order.

(f) A final order of the board may be appealed to a district

court in Ector County. The substantial evidence rule applies to the

appeal. (Acts 71st Leg., R.S., Ch. 550, Secs. 5.11(a), (c), (d),

(e), (f).)

Sec.1024.115.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 and treatment of a sick or injured person of that county,

municipality, or public hospital as provided by Chapter 61, Health

and Safety Code.

(b) The board shall require the sheriff of Ector County or

the police chief of the City of Odessa to reimburse the district for

the district's care and treatment of a person who is confined in a

jail facility of Ector County or the City of Odessa and is not a

district resident.

government for that government to reimburse the district for

treatment of a sick or injured person. (Acts 71st Leg., R.S., Ch.

550, Sec. 5.12.)

Sec. 1024.116. AUTHORITY TO SUE AND BE SUED; VENUE;

NONWAIVER OF IMMUNITY. (a) The board may sue and be sued on behalf

of the district.

(b) An action against the board, the district, or the

district's hospital system must be brought in Ector County.

district's sovereign or governmental immunity. (Acts 71st Leg.,

R.S., Ch. 550, Sec. 5.15.)

[Sections 1024.117-1024.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1024.151.BUDGET. (a) The district administrator

shall prepare a proposed annual budget for the district.

(b) The proposed budget must contain a complete financial

statement, including a statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash on hand in each district fund;

(3) the amount of money received by the district from

all sources during the previous year;

(4) the amount of money available to the district from

all sources during the ensuing year;

(5) the amount of the balances expected at the end of

the year in which the budget is being prepared;

(6) the estimated amount of revenue and balances

available to cover the proposed budget; and

(7) the estimated tax rate required. (Acts 71st Leg.,

R.S., Ch. 550, Sec. 6.04.)

Sec.1024.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) The board shall publish notice of the hearing in a

newspaper with general circulation in the district not later than

the 10th day before the date of the hearing.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the

taxpayers.

(e) The budget is effective only after adoption by the

board. (Acts 71st Leg., R.S., Ch. 550, Sec. 6.05.)

Sec.1024.153.AMENDMENTS TO BUDGET. After adoption, the

annual budget may be amended on the board's approval. (Acts 71st

Leg., R.S., Ch. 550, Sec. 6.06.)

Sec.1024.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 71st Leg., R.S., Ch. 550, Sec. 6.07.)

Sec.1024.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) when revenue bonds of the district are

outstanding; or

(2) more than once in a 24-month period. (Acts 71st

Leg., R.S., Ch. 550, Sec. 6.01.)

Sec.1024.156.ANNUAL AUDIT. The board annually shall have

an audit made of the district's financial condition. (Acts 71st

Leg., R.S., Ch. 550, Sec. 6.02.)

Sec. 1024.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS. The annual audit and other district records are open to

inspection during regular business hours at the district's

principal office. (Acts 71st Leg., R.S., Ch. 550, Sec. 6.03.)

Sec.1024.158.FINANCIAL REPORT. As soon as practicable

after the close of the fiscal year, the district administrator

shall prepare for the board:

(1) a sworn statement of the amount of district money;

and

(2) an account of the disbursements of that money.

(Acts 71st Leg., R.S., Ch. 550, Sec. 6.08.)

Sec.1024.159.DEPOSITORY. (a) The board shall select at

least one bank in Ector County to serve as a depository for district

money.

(b) District money, other than money invested as provided by

Section 1024.160(c) 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 must remain on

deposit. This subsection does not limit the power of the board to

place a part of district money on time deposit or to purchase

certificates of deposit.

amount that exceeds the maximum amount secured by the Federal

Deposit Insurance Corporation unless the bank first executes a bond

or other security in an amount sufficient to secure from loss the

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation. (Acts 71st Leg., R.S., Ch. 550,

Sec. 6.10.)

Sec.1024.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

The district may acquire, sell, lease, or contract for personal

property in accordance with Subchapter A, Chapter 271, Local

Government Code.

(b) Except as provided by Subsection (a) and Sections

1024.111, 1024.201, 1024.204, and 1024.205, the district may not

incur a debt payable from district revenue other than the revenue on

hand or to be on hand in the current and immediately following

district fiscal years.

building reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 71st Leg., R.S., Ch. 550, Sec. 6.09.)

[Sections 1024.161-1024.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1024.201.GENERAL OBLIGATION BONDS. The board may

issue and sell general obligation bonds authorized by an election

in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements;

(2) equip buildings or improvements for hospital

purposes; or

(3) acquire and operate a mobile emergency medical

service. (Acts 71st Leg., R.S., Ch. 550, Sec. 7.01.)

Sec.1024.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1024.201, 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

limit approved by the voters at the election authorizing the

imposition of the tax. (Acts 71st Leg., R.S., Ch. 550, Sec. 7.02.)

Sec.1024.203.GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the district voters voting at an

election held for that purpose.

(b) The board may order a bond election.

(1) the nature and date of the election;

(2) the hours during which the polls will be open;

(3) the location of the polling places;

(4) the amount of the bonds to be authorized; and

(5) the maximum maturity of the bonds.

(d) Notice of a bond election shall be given as provided by

Section 1251.003, Government Code.

(e) The board shall declare the results of the election.

(Acts 71st Leg., R.S., Ch. 550, Sec. 7.03.)

Sec.1024.204.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes;

(2) acquire sites to be used for hospital purposes; or

(3) acquire and operate a mobile emergency medical

service to assist the district in carrying out its hospital

purposes.

(b) The bonds must be payable from and secured by a pledge of

all or part of the revenue received by the district, other than ad

valorem taxes.

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, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority.

(Acts 71st Leg., R.S., Ch. 550, Sec. 7.04.)

Sec.1024.205.REFUNDING BONDS. (a) The board may issue

refunding bonds to refund outstanding indebtedness issued or

assumed by the district.

(b) Refunding bonds may be:

(1) sold, with the proceeds of the refunding bonds

applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 71st

Leg., R.S., Ch. 550, Secs. 7.05(a), (c) (part).)

Sec.1024.206.MATURITY OF BONDS. District bonds must

mature not later than 50 years after the date of issuance. (Acts

71st Leg., R.S., Ch. 550, Sec. 7.06 (part).)

Sec.1024.207.EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 71st Leg.,

R.S., Ch. 550, Sec. 7.07.)

Sec.1024.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) any transaction relating to the bonds; and

(3) profits made in the sale of the bonds. (Acts 71st

Leg., R.S., Ch. 550, Sec. 7.11 (part).)

[Sections 1024.209-1024.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1024.251.IMPOSITION OF AD VALOREM TAX. (a) The board

may impose a tax on all property in the district subject to district

taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

or interest on revenue bonds issued under this chapter. (Acts 71st

Leg., R.S., Ch. 550, Secs. 8.01 (a) (part), (c), (d), 8.03(b).)

Sec.1024.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed the limit approved by the voters at the

election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on

each $100 valuation of all taxable property in the district.

income of the district from sources other than taxation. (Acts 71st

Leg., R.S., Ch. 550, Secs. 8.01(a) (part), (b), 8.04 (part).)

Sec.1024.253.ELECTION TO INCREASE MAXIMUM TAX RATE. (a)

The board may order an election to increase the district's maximum

ad valorem tax rate. The board shall order the election if the

board receives a petition requesting an election that is signed by

at least 50 registered voters in the district.

(b) 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

_____ (insert amount) cents on the $100 valuation of all taxable

property in the district."

proposition, the board may impose taxes as authorized by the

proposition. If the board finds that the election results do not

favor the proposition, another election on the question of raising

the district's maximum tax rate may not be held before the first

anniversary of the date of the most recent election at which voters

disapproved the proposition.

(d) Section 41.001(a), Election Code, does not apply to an

election ordered under this section. (Acts 71st Leg., R.S., Ch.

550, Secs. 8.02(a), (b) (part), (c) (part), (d) (part).)

Sec.1024.254.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 71st Leg., R.S., Ch. 550, Sec.

8.05(b).)

CHAPTER 1025. ELECTRA HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1025.001. DEFINITIONS

Sec. 1025.002. AUTHORITY FOR OPERATION

Sec. 1025.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1025.004. DISTRICT TERRITORY

Sec. 1025.005. CORRECTION OF INVALID PROCEDURES

Sec. 1025.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1025.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1025.008-1025.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1025.051. BOARD ELECTION; TERM

Sec. 1025.052. NOTICE OF ELECTION

Sec. 1025.053. BALLOT PETITION

Sec. 1025.054. QUALIFICATIONS FOR OFFICE

Sec. 1025.055. BOARD VACANCY

Sec. 1025.056. OFFICERS

Sec. 1025.057. COMPENSATION; EXPENSES

Sec. 1025.058. QUORUM

Sec. 1025.059. VOTING REQUIREMENT

Sec. 1025.060. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR

Sec. 1025.061. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1025.062. EMPLOYEES; APPOINTMENT OF STAFF

[Sections 1025.063-1025.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1025.101. DISTRICT RESPONSIBILITY

Sec. 1025.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1025.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1025.104. HOSPITAL SYSTEM

Sec. 1025.105. RULES

Sec. 1025.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1025.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1025.108. EMINENT DOMAIN

Sec. 1025.109. GIFTS AND ENDOWMENTS

Sec. 1025.110. CONSTRUCTION CONTRACTS

Sec. 1025.111. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1025.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT

Sec. 1025.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1025.114. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1025.115. AUTHORITY TO SUE AND BE SUED

[Sections 1025.116-1025.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1025.151. BUDGET

Sec. 1025.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1025.153. AMENDMENTS TO BUDGET

Sec. 1025.154. RESTRICTION ON EXPENDITURES

Sec. 1025.155. FISCAL YEAR

Sec. 1025.156. AUDIT

Sec. 1025.157. INSPECTION OF AUDIT AND DISTRICT

RECORDS

Sec. 1025.158. FINANCIAL REPORT

Sec. 1025.159. DEPOSITORY

Sec. 1025.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1025.161-1025.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1025.201. GENERAL OBLIGATION BONDS

Sec. 1025.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1025.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1025.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1025.205. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1025.206. REVENUE BONDS

Sec. 1025.207. REFUNDING BONDS

Sec. 1025.208. BONDS EXEMPT FROM TAXATION

[Sections 1025.209-1025.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1025.251. IMPOSITION OF AD VALOREM TAX

Sec. 1025.252. TAX RATE

Sec. 1025.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR

Sec. 1025.254. ASSESSMENT AND COLLECTION BY DISTRICT

TAX ASSESSOR-COLLECTOR

CHAPTER 1025. ELECTRA HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1025.001.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 Electra Hospital District.

(New.)

Sec.1025.002.AUTHORITY FOR OPERATION. The district

operates and is administered and financed in accordance with

Section 9, Article IX, Texas Constitution, and has the rights,

powers, and duties provided by this chapter. (Acts 63rd Leg., R.S.,

Ch. 513, Sec. 1 (part).)

Sec.1025.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 63rd Leg., R.S., Ch. 513, Sec. 21 (part).)

Sec.1025.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Justice of the

Peace Precinct No. 4 of Wichita County, Texas, as those boundaries

existed on June 14, 1973. (Acts 63rd Leg., R.S., Ch. 513, Sec. 1

(part).)

Sec.1025.005.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 63rd Leg., R.S., Ch. 513, Sec. 23 (part).)

Sec. 1025.006. 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 63rd

Leg., R.S., Ch. 513, Sec. 20 (part).)

Sec.1025.007.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 63rd Leg., R.S., Ch. 513, Sec. 20 (part).)

[Sections 1025.008-1025.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1025.051.BOARD ELECTION; TERM. (a) The board

consists of seven 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. (Acts 63rd Leg., R.S., Ch. 513, Sec. 4(c) (part).)

Sec.1025.052.NOTICE OF ELECTION. At least 30 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper or newspapers that

individually or collectively have general circulation in the

district. (Acts 63rd Leg., R.S., Ch. 513, Sec. 4(c) (part).)

Sec.1025.053.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 voters; and

(2) filed at least 30 days before the date of the

election. (Acts 63rd Leg., R.S., Ch. 513, Sec. 4(c) (part).)

Sec.1025.054.QUALIFICATIONS FOR OFFICE. (a) A person may

not be elected or appointed as a director unless the person is:

(1) a district resident;

(2) a qualified voter; and

(3) a freeholder.

(b) A person is not eligible to serve as a director if the

person is:

(1) the district administrator; or

(2) a district employee. (Acts 63rd Leg., R.S., Ch.

513, Sec. 4(d).)

Sec.1025.055.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 63rd Leg., R.S., Ch. 513,

Sec. 4(c) (part).)

Sec.1025.056.OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its

members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

unexpired term. (Acts 63rd Leg., R.S., Ch. 513, Sec. 4(e) (part).)

Sec.1025.057.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 63rd Leg., R.S., Ch.

513, Sec. 4(e) (part).)

Sec.1025.058.QUORUM. Any five directors constitute a

quorum. (Acts 63rd Leg., R.S., Ch. 513, Sec. 4(e) (part).)

Sec.1025.059.VOTING REQUIREMENT. A concurrence of five

directors is sufficient in any matter relating to district

business. (Acts 63rd Leg., R.S., Ch. 513, Sec. 4(e) (part).)

Sec. 1025.060. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR. (a) The board shall appoint a qualified person as

district administrator.

(b) The board may appoint an assistant administrator.

administrator serve at the will of the board and are entitled to 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 other conditions the board may require.

(Acts 63rd Leg., R.S., Ch. 513, Sec. 5 (part).)

Sec.1025.061.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. 513, Sec. 5 (part).)

Sec.1025.062.EMPLOYEES; APPOINTMENT OF STAFF. (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 necessary.

(b) The district may employ fiscal agents, accountants,

architects, and attorneys the board considers proper.

authority to hire district employees, including technicians and

nurses. (Acts 63rd Leg., R.S., Ch. 513, Secs. 5 (part), 16.)

[Sections 1025.063-1025.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1025.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for operating all hospital facilities for

providing medical and hospital care for the district's needy

inhabitants. (Acts 63rd Leg., R.S., Ch. 513, Sec. 19 (part).)

Sec. 1025.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT. A political subdivision located wholly or

partly within the district may not impose a tax on district

residents or issue bonds or other obligations for hospital purposes

or to provide medical care for district residents. (Acts 63rd Leg.,

R.S., Ch. 513, Sec. 19 (part).)

Sec.1025.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 63rd Leg., R.S., Ch.

513, Sec. 5 (part).)

Sec.1025.104.HOSPITAL SYSTEM. (a) The district shall

provide for the establishment of a hospital system by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the buildings and equipment for

hospital purposes.

(b) The hospital system may include:

(1) domiciliary care and treatment of the sick,

injured, or geriatric;

(2) outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses;

(6) domiciliaries and training centers;

(7) blood banks;

(8) community mental health centers;

(9) research centers or laboratories; and

(10) any other facilities the board considers

necessary for hospital care. (Acts 63rd Leg., R.S., Ch. 513, Secs.

2 (part), 10(a) (part).)

Sec.1025.105.RULES. The board may adopt rules governing

the operation of the hospital, the hospital system, and the

district's staff and employees. (Acts 63rd Leg., R.S., Ch. 513,

Sec. 5 (part).)

Sec.1025.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of making purchases and

expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 63rd

Leg., R.S., Ch. 513, Sec. 10(b) (part).)

Sec. 1025.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location of buildings required to maintain an adequate hospital

system.

(b) The board may lease all or part of the district's

buildings and other facilities on terms considered to be in the best

interest of the district's inhabitants. The term of the lease may

not exceed 25 years.

district's hospital system and mortgage or pledge the property as

security for the payment of the purchase price. A contract entered

into under this subsection must provide that the entire obligation

be retired not later than the fifth anniversary of the date of the

contract.

(d) The district may sell or otherwise dispose of any

property, including equipment, on terms the board finds are in the

best interest of the district's inhabitants. (Acts 63rd Leg.,

R.S., Ch. 513, Secs. 10(a) (part), (b) (part).)

Sec.1025.108.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in any type of property located in district

territory if the interest is necessary or convenient for the

district to exercise a power, right, or privilege conferred by this

chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 63rd Leg., R.S., Ch. 513, Sec.

14.)

Sec.1025.109.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 63rd Leg., R.S., Ch. 513,

Sec. 18.)

Sec.1025.110.CONSTRUCTION CONTRACTS. A construction

contract that involves the expenditure of more than $10,000 may be

made only after advertising in the manner provided by Chapter 252

and Subchapter C, Chapter 262, Local Government Code. (Acts 63rd

Leg., R.S., Ch. 513, Sec. 10(b) (part).)

Sec.1025.111.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a district facility. (Acts 63rd Leg., R.S., Ch. 513, Sec. 10(a)

(part).)

Sec. 1025.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

CARE AND TREATMENT. (a) The board may contract with a 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.

(b) The board may contract with this state or a federal

agency for the treatment of a sick or injured person. (Acts 63rd

Leg., R.S., Ch. 513, Sec. 5 (part).)

Sec. 1025.113. 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 medical,

hospital, or welfare needs of district inhabitants. (Acts 63rd

Leg., R.S., Ch. 513, Sec. 5 (part).)

Sec.1025.114.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 who are 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 costs of

the care and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district administrator may collect the amount from

the patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the 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 63rd Leg., R.S., Ch. 513, Sec. 17.)

Sec.1025.115.AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued. (Acts 63rd Leg., R.S., Ch.

513, Sec. 5 (part).)

[Sections 1025.116-1025.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1025.151.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 in 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; and

(7) the estimated tax rate required. (Acts 63rd Leg.,

R.S., Ch. 513, Sec. 6 (part).)

Sec.1025.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) Notice of the hearing must be published one time at

least 10 days before the date of the hearing.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the taxpayers

and that the law warrants. (Acts 63rd Leg., R.S., Ch. 513, Sec. 6

(part).)

Sec.1025.153.AMENDMENTS TO BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 63rd Leg., R.S., Ch. 513, Sec. 6 (part).)

Sec.1025.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 63rd Leg., R.S., Ch. 513, Sec. 6 (part).)

Sec.1025.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that revenue bonds of the district

are outstanding; or

(2) more than once in a 24-month period. (Acts 63rd

Leg., R.S., Ch. 513, Sec. 6 (part).)

Sec.1025.156.AUDIT. The board shall have an audit made of

the district's financial condition. (Acts 63rd Leg., R.S., Ch.

513, Sec. 6 (part).)

Sec.1025.157.INSPECTION OF AUDIT AND DISTRICT RECORDS.

The audit and other district records shall be open to inspection at

the district's principal office. (Acts 63rd Leg., R.S., Ch. 513,

Sec. 6 (part).)

Sec.1025.158.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 disbursements of that

money. (Acts 63rd Leg., R.S., Ch. 513, Sec. 6 (part).)

Sec.1025.159.DEPOSITORY. (a) The board shall select one

or more banks in the district to serve as a depository for district

money.

(b) District money, other than money invested as provided by

Section 1025.160(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.

the power of the board to place a part of district money on time

deposit or to purchase certificates of deposit.

(d) The district may not deposit money with a bank in an

amount that exceeds the maximum amount secured by the Federal

Deposit Insurance Corporation unless the bank first executes a bond

or other security in an amount sufficient to secure from loss the

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation. (Acts 63rd Leg., R.S., Ch. 513,

Sec. 11.)

Sec.1025.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Section 1025.107(c) and by

Subchapter E, 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 reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 63rd Leg., R.S., Ch. 513, Secs. 5

(part), 10(b) (part).)

[Sections 1025.161-1025.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1025.201.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 or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 63rd Leg., R.S., Ch. 513, Sec. 7(a) (part).)

Sec.1025.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1025.201, 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 75

cents on each $100 valuation of all taxable property in the

district. (Acts 63rd Leg., R.S., Ch. 513, Sec. 7(a) (part).)

Sec.1025.203.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.

(b) The order calling the election shall 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; and

(5) the maximum maturity of the bonds.

Section 1251.003, Government Code. (Acts 63rd Leg., R.S., Ch. 513,

Sec. 7(a) (part).)

Sec.1025.204.MATURITY OF GENERAL OBLIGATION BONDS.

District general obligation bonds must mature not later than 40

years after the date of issuance. (Acts 63rd Leg., R.S., Ch. 513,

Sec. 7(c) (part).)

Sec.1025.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 63rd Leg.,

R.S., Ch. 513, Sec. 7(c) (part).)

Sec.1025.206.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used 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 hospitals.

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, and 264.046-264.049, Health and Safety Code, for

issuance of revenue bonds by a county hospital authority. (Acts

63rd Leg., R.S., Ch. 513, Sec. 9 (part).)

Sec.1025.207.REFUNDING BONDS. (a) The board may, without

an election, 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 bonds

applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 63rd

Leg., R.S., Ch. 513, Secs. 7(a) (part), 7(b) (part), 9 (part).)

Sec.1025.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) the transfer and issuance of the bonds; and

(3) profits made in the sale of the bonds. (Acts 63rd

Leg., R.S., Ch. 513, Sec. 21 (part).)

[Sections 1025.209-1025.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1025.251.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 pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

interest on revenue bonds issued under this chapter. (Acts 63rd

Leg., R.S., Ch. 513, Secs. 12 (part), 15(a) (part).)

Sec.1025.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed 75 cents on each $100 valuation of 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 63rd

Leg., R.S., Ch. 513, Secs. 3(b) (part), 12 (part).)

Sec. 1025.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR. (a) This section applies unless the board

elects to have taxes assessed and collected under Section 1025.254.

(b) The tax assessor-collector of Wichita County shall

assess and collect taxes imposed by the district. (Acts 63rd Leg.,

R.S., Ch. 513, Secs. 15(a) (part), (b) (part).)

Sec. 1025.254. ASSESSMENT AND COLLECTION BY DISTRICT TAX

ASSESSOR-COLLECTOR. (a) The board may elect to have district taxes

assessed and collected by a tax assessor-collector appointed by the

board. An election under this subsection must be made by December 1

and governs the manner in which taxes are assessed and collected,

until changed by a similar resolution.

(b) The district tax assessor-collector must:

(1) reside in the district; and

(2) own real property subject to district taxation.

assessor-collector:

(1) the term of employment; and

(2) compensation. (Acts 63rd Leg., R.S., Ch. 513,

Secs. 15(a) (part), (c) (part).)

CHAPTER 1026. FARWELL HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1026.001. DEFINITIONS

Sec. 1026.002. AUTHORITY FOR OPERATION

Sec. 1026.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1026.004. DISTRICT TERRITORY

Sec. 1026.005. CORRECTION OF INVALID PROCEDURES

Sec. 1026.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1026.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1026.008-1026.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1026.051. BOARD ELECTION; TERMS

Sec. 1026.052. NOTICE OF ELECTION

Sec. 1026.053. BALLOT PETITION

Sec. 1026.054. QUALIFICATIONS FOR OFFICE

Sec. 1026.055. BOARD VACANCY

Sec. 1026.056. OFFICERS

Sec. 1026.057. COMPENSATION; EXPENSES

Sec. 1026.058. PETITION TO CHANGE NUMBER OF DIRECTORS

Sec. 1026.059. VOTING REQUIREMENT

Sec. 1026.060. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR

Sec. 1026.061. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1026.062. EMPLOYEES; APPOINTMENT OF STAFF

[Sections 1026.063-1026.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1026.101. DISTRICT RESPONSIBILITY

Sec. 1026.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1026.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1026.104. HOSPITAL SYSTEM

Sec. 1026.105. RULES

Sec. 1026.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1026.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1026.108. EMINENT DOMAIN

Sec. 1026.109. GIFTS AND ENDOWMENTS

Sec. 1026.110. CONSTRUCTION CONTRACTS

Sec. 1026.111. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1026.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT

Sec. 1026.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1026.114. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1026.115. REIMBURSEMENT FOR SERVICES

Sec. 1026.116. AUTHORITY TO SUE AND BE SUED

[Sections 1026.117-1026.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1026.151. BUDGET

Sec. 1026.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1026.153. AMENDMENTS TO BUDGET

Sec. 1026.154. RESTRICTION ON EXPENDITURES

Sec. 1026.155. FISCAL YEAR

Sec. 1026.156. AUDIT

Sec. 1026.157. INSPECTION OF AUDIT AND DISTRICT

RECORDS

Sec. 1026.158. FINANCIAL REPORT

Sec. 1026.159. DEPOSITORY

Sec. 1026.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1026.161-1026.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1026.201. GENERAL OBLIGATION BONDS

Sec. 1026.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1026.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1026.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1026.205. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1026.206. REVENUE BONDS

Sec. 1026.207. REFUNDING BONDS

Sec. 1026.208. BONDS EXEMPT FROM TAXATION

[Sections 1026.209-1026.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1026.251. IMPOSITION OF AD VALOREM TAX

Sec. 1026.252. TAX RATE

Sec. 1026.253. ASSESSMENT AND COLLECTION BY SCHOOL

DISTRICT ASSESSOR-COLLECTOR

Sec. 1026.254. ASSESSMENT AND COLLECTION BY DISTRICT

TAX ASSESSOR-COLLECTOR

Sec. 1026.255. ASSESSMENT AND COLLECTION BY TAX

ASSESSOR-COLLECTOR OF ANOTHER

POLITICAL SUBDIVISION

CHAPTER 1026. FARWELL HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1026.001.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 Farwell Hospital District.

(New.)

Sec.1026.002.AUTHORITY FOR OPERATION. The district

operates in accordance with Section 9, Article IX, Texas

Constitution, and has the rights, powers, and duties provided by

this chapter. (Acts 64th Leg., R.S., Ch. 73, Sec. 1 (part).)

Sec.1026.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 64th Leg., R.S., Ch. 73, Sec. 21 (part).)

Sec.1026.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of the Farwell

Independent School District in Parmer County, Texas, as those

boundaries existed on January 1, 1975. (Acts 64th Leg., R.S., Ch.

73, Sec. 1 (part).)

Sec.1026.005.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. 73, Sec. 23 (part).)

Sec. 1026.006. 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. 73, Sec. 20 (part).)

Sec.1026.007.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. 73, Sec. 20 (part).)

[Sections 1026.008-1026.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1026.051.BOARD ELECTION; TERMS. (a) The board

consists of nine 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. (Acts 64th Leg., R.S., Ch. 73, Sec. 4(c) (part).)

Sec.1026.052.NOTICE OF ELECTION. At least 30 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper or newspapers that

individually or collectively have general circulation in the

district. (Acts 64th Leg., R.S., Ch. 73, Sec. 4(c) (part).)

Sec.1026.053.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 qualified taxpaying voters;

and

(2) filed at least 30 days before the date of the

election. (Acts 64th Leg., R.S., Ch. 73, Sec. 4(c) (part).)

Sec.1026.054.QUALIFICATIONS FOR OFFICE. (a) A person may

not be appointed or elected as a director unless the person is:

(1) a district resident; and

(2) a qualified voter.

(b) A person is not eligible to serve as a director if the

person is:

(1) the district administrator;

(2) a district employee; or

(3) a member of the staff of the hospital. (Acts 64th

Leg., R.S., Ch. 73, Sec. 4(d).)

Sec.1026.055.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 64th Leg., R.S., Ch. 73, Sec.

4(c) (part).)

Sec.1026.056.OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its

members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

unexpired term. (Acts 64th Leg., R.S., Ch. 73, Sec. 4(e) (part).)

Sec.1026.057.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 64th Leg., R.S., Ch.

73, Sec. 4(e) (part).)

Sec.1026.058.PETITION TO CHANGE NUMBER OF DIRECTORS. (a)

A petition to increase or decrease the number of directors by one or

two directors may be presented to the board at any time.

(b) A petition to increase or decrease the number of

directors must:

(1) be executed by at least 100 registered voters of

the district; and

(2) suggest the number of directors the petitioners

believe are required for the orderly administration of district

affairs.

petition is presented to the board, the board shall order an

election on the question of changing the number of directors to a

number not to exceed the number suggested by the petition.

(d) The order calling the election shall provide for

election officials as in county elections and must specify:

(1) the date of the election; and

(2) the location of the polling places.

(e) Notice of the election shall be published as provided by

Section 1251.003, Government Code.

(f) The ballot for the election shall be printed to permit

voting for or against the proposition: "Providing for an increase

(decrease) in the number of directors of the Farwell Hospital

District."

(g) If a proposition to increase the number of directors is

approved by a majority of the voters participating in the election:

(1) each director in office shall continue to serve

for the term for which the director was elected or appointed; and

(2) the board shall appoint any additional directors

to serve until the next regular election of directors, at which time

a successor shall be elected.

(h) If a proposition to decrease the number of directors is

approved by a majority of the voters participating in the election:

(1) the reduction takes effect at the next regular

election or election of directors; and

(2) not more than one position may be deleted at each

election.

(i) Another election for the same purpose may not be held

before the third anniversary of the date of an election under this

section. (Acts 64th Leg., R.S., Ch. 73, Sec. 4(f) (part).)

Sec.1026.059.VOTING REQUIREMENT. A concurrence of five

directors is sufficient in any matter relating to district

business. (Acts 64th Leg., R.S., Ch. 73, Sec. 4(e) (part).)

Sec. 1026.060. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR. (a) The board shall appoint a qualified person as

district administrator.

(b) The board may appoint an assistant administrator.

administrator serve at the will of the board and are entitled to 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 other conditions the board may require.

(Acts 64th Leg., R.S., Ch. 73, Sec. 5 (part).)

Sec.1026.061.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 64th

Leg., R.S., Ch. 73, Sec. 5 (part).)

Sec.1026.062.EMPLOYEES; APPOINTMENT OF STAFF. (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 necessary.

(b) The district may employ fiscal agents, accountants,

architects, and attorneys the board considers proper.

authority to hire district employees, including technicians and

nurses. (Acts 64th Leg., R.S., Ch. 73, Secs. 5 (part), 16.)

[Sections 1026.063-1026.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1026.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for operating all hospital facilities for

providing hospital care for the district's needy inhabitants. (Acts

64th Leg., R.S., Ch. 73, Sec. 19 (part).)

Sec. 1026.102. 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 for district

inhabitants. (Acts 64th Leg., R.S., Ch. 73, Sec. 19 (part).)

Sec.1026.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 64th Leg., R.S., Ch.

73, Sec. 5 (part).)

Sec.1026.104.HOSPITAL SYSTEM. (a) The district shall

provide for the establishment of a hospital system by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the buildings and equipment for

hospital purposes.

(b) The hospital system may include:

(1) domiciliary care and treatment of the sick,

injured, or geriatric;

(2) outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses;

(6) domiciliaries and training centers;

(7) blood banks;

(8) community mental health centers;

(9) research centers or laboratories; and

(10) any other facilities the board considers

necessary for hospital or extended medical care. (Acts 64th Leg.,

R.S., Ch. 73, Secs. 2 (part), 10 (part).)

Sec.1026.105.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. 73, Sec.

5 (part).)

Sec.1026.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of making purchases and

expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 64th

Leg., R.S., Ch. 73, Sec. 10 (part).)

Sec. 1026.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location of buildings required to maintain an adequate hospital

system.

(b) The board may lease all or part of the district's

buildings and other facilities on terms considered to be in the best

interest of the district's inhabitants. The term of the lease may

not exceed 25 years.

district's hospital system and mortgage or pledge the property as

security for the payment of the purchase price. A contract entered

into under this subsection must provide that the entire obligation

be retired not later than the fifth anniversary of the date of the

contract.

(d) The board may sell or otherwise dispose of any property,

including equipment, on terms the board finds are in the best

interest of the district's inhabitants. (Acts 64th Leg., R.S., Ch.

73, Sec. 10 (part).)

Sec.1026.108.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in any type of property located in district

territory if the interest is necessary or convenient for the

district to exercise a power, right, or privilege conferred by this

chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 64th Leg., R.S., Ch. 73, Sec. 14.)

Sec.1026.109.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 directors,

limitations, or 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. 73, Sec. 18.)

Sec.1026.110.CONSTRUCTION CONTRACTS. A construction

contract that involves the expenditure of more than $10,000 may be

made only after advertising in the manner provided by Chapter 252

and Subchapter C, Chapter 262, Local Government Code. (Acts 64th

Leg., R.S., Ch. 73, Sec. 10 (part).)

Sec.1026.111.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a district facility. (Acts 64th Leg., R.S., Ch. 73, Sec. 10

(part).)

Sec. 1026.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

CARE AND TREATMENT. (a) The board may contract with a 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.

(b) The board may contract with this state or a federal

agency for the treatment of a sick or injured person. (Acts 64th

Leg., R.S., Ch. 73, Sec. 5 (part).)

Sec. 1026.113. 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 medical,

hospital, or welfare needs of district inhabitants. (Acts 64th

Leg., R.S., Ch. 73, Sec. 5 (part).)

Sec.1026.114.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient 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 who are legally liable for

the patient's support.

(b) Except as otherwise provided by this chapter, if the

district administrator determines that the patient or those

relatives cannot pay all or part of the costs of the care and

treatment in the hospital, the amount of the costs that cannot be

paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district administrator may collect the amount from

the patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the 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. 73, Sec. 17.)

Sec.1026.115.REIMBURSEMENT FOR SERVICES. If the district

provides care or treatment for a sick or injured person who is not a

district resident, the district may collect the reasonable value of

the hospital care from a political subdivision responsible for that

care. Venue in any court proceeding is in Parmer County. (Acts

64th Leg., R.S., Ch. 73, Sec. 5 (part).)

Sec.1026.116.AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued. (Acts 64th Leg., R.S., Ch.

73, Sec. 5 (part).)

[Sections 1026.117-1026.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1026.151.BUDGET. (a) The district administrator or,

if there is none, the president of the board 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 in 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; and

(7) the estimated tax rate required. (Acts 64th Leg.,

R.S., Ch. 73, Sec. 6 (part).)

Sec.1026.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) Notice of the hearing must be published one time at

least 10 days before the date of the hearing.

participate in the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the proposed budget. The board may make

changes in the proposed budget that the board judges to be in the

interest of the taxpayers and that the law warrants. (Acts 64th

Leg., R.S., Ch. 73, Sec. 6 (part).)

Sec.1026.153.AMENDMENTS TO BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 64th Leg., R.S., Ch. 73, Sec. 6 (part).)

Sec.1026.154.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. 73, Sec. 6 (part).)

Sec.1026.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed more than once in a

24-month period. (Acts 64th Leg., R.S., Ch. 73, Sec. 6 (part).)

Sec.1026.156.AUDIT. The board shall have an audit made of

the district's financial condition. (Acts 64th Leg., R.S., Ch. 73,

Sec. 6 (part).)

Sec.1026.157.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. 73,

Sec. 6 (part).)

Sec.1026.158.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 disbursements of that

money. (Acts 64th Leg., R.S., Ch. 73, Sec. 6 (part).)

Sec.1026.159.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 1026.160(b) and money transmitted to a bank for payment of

bonds or obligations issued by the district, shall be deposited as

received with the depository bank and shall remain on deposit.

the power of the board to place a part of district money on time

deposit or to purchase certificates of deposit. (Acts 64th Leg.,

R.S., Ch. 73, Sec. 11.)

Sec.1026.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Section 1026.107(c) and by

Subchapter E, 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 reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 64th Leg., R.S., Ch. 73, Secs. 5

(part), 10 (part).)

[Sections 1026.161-1026.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1026.201.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 or improvements for hospital

purposes. (Acts 64th Leg., R.S., Ch. 73, Sec. 7 (part).)

Sec.1026.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1026.201, 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 may not in any year

exceed 75 cents on each $100 valuation of all taxable property in

the district. (Acts 64th Leg., R.S., Ch. 73, Sec. 7 (part).)

Sec.1026.203.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 election shall 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 judge for

each polling place;

(4) the amount of the bonds to be authorized; and

(5) the maximum maturity of the bonds.

newspaper as provided by Section 1251.003, Government Code. (Acts

64th Leg., R.S., Ch. 73, Sec. 7 (part).)

Sec.1026.204.MATURITY OF GENERAL OBLIGATION BONDS.

District general obligation bonds must mature not later than 40

years after the date of issuance. (Acts 64th Leg., R.S., Ch. 73,

Sec. 7 (part).)

Sec.1026.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 64th Leg.,

R.S., Ch. 73, Sec. 7 (part).)

Sec.1026.206.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used 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 hospitals.

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, and 264.046-264.049, Health and Safety Code, for

issuance of revenue bonds by a county hospital authority. (Acts

64th Leg., R.S., Ch. 73, Sec. 9 (part).)

Sec.1026.207.REFUNDING BONDS. (a) The board may, without

an election, 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. 73, Secs. 7 (part), 9 (part).)

Sec.1026.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) the transfer and issuance of the bonds; and

(3) profits made in the sale of the bonds. (Acts 64th

Leg., R.S., Ch. 73, Sec. 21 (part).)

[Sections 1026.209-1026.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1026.251.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 pay:

(1) indebtedness issued by the district; and

(2) the maintenance and operating expenses of the

district.

or interest on revenue bonds issued under this chapter. (Acts 64th

Leg., R.S., Ch. 73, Secs. 12 (part), 15(a) (part).)

Sec.1026.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed 75 cents on each $100 valuation of 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. 73, Secs. 3 (part), 12 (part).)

Sec. 1026.253. ASSESSMENT AND COLLECTION BY SCHOOL DISTRICT

ASSESSOR-COLLECTOR. (a) This section applies unless the board

elects to have taxes assessed and collected under Section 1026.254

or 1026.255.

(b) The tax assessor-collector of the Farwell Independent

School District shall assess and collect taxes imposed by the

district. (Acts 64th Leg., R.S., Ch. 73, Secs. 15(a) (part), (b)

(part).)

Sec. 1026.254. ASSESSMENT AND COLLECTION BY DISTRICT TAX

ASSESSOR-COLLECTOR. (a) The board may elect to have district taxes

assessed and collected by a tax assessor-collector appointed by the

board. An election under this subsection must be made by December 1

and governs the manner in which taxes are assessed and collected,

until changed by a similar resolution.

(b) The district tax assessor-collector must:

(1) reside in the district; and

(2) own real property subject to district taxation.

assessor-collector:

(1) the term of employment; and

(2) compensation. (Acts 64th Leg., R.S., Ch. 73,

Secs. 15(a) (part), (c) (part).)

Sec. 1026.255. ASSESSMENT AND COLLECTION BY TAX

ASSESSOR-COLLECTOR OF ANOTHER POLITICAL SUBDIVISION. (a) The

board may elect to have district taxes assessed and collected by the

tax assessor-collector of a political subdivision located wholly or

partly in the district. An election under this subsection must be

made by December 1 and governs the manner in which taxes are

assessed and collected, until changed by a similar resolution.

(b) The tax assessor-collector of the political subdivision

shall assess and collect the appropriate district taxes in

accordance with the board's election under Subsection (a). (Acts

64th Leg., R.S., Ch. 73, Secs. 15(a) (part), (d) (part).)

CHAPTER 1027. FISHER COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1027.001. DEFINITIONS

Sec. 1027.002. AUTHORITY FOR OPERATION

Sec. 1027.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1027.004. DISTRICT TERRITORY

Sec. 1027.005. CORRECTION OF INVALID PROCEDURES

Sec. 1027.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

[Sections 1027.007-1027.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1027.051. BOARD ELECTION; TERM

Sec. 1027.052. CHANGE IN ELECTION FORMAT

Sec. 1027.053. NOTICE OF ELECTION

Sec. 1027.054. QUALIFICATIONS FOR OFFICE

Sec. 1027.055. BOARD VACANCY

Sec. 1027.056. OFFICERS

Sec. 1027.057. COMPENSATION; EXPENSES

Sec. 1027.058. VOTING REQUIREMENT

Sec. 1027.059. DISTRICT ADMINISTRATOR

Sec. 1027.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1027.061. APPOINTMENT AND RECRUITMENT OF STAFF

AND EMPLOYEES

[Sections 1027.062-1027.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1027.101. DISTRICT RESPONSIBILITY AND AUTHORITY

Sec. 1027.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1027.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1027.104. HOSPITAL SYSTEM

Sec. 1027.105. RULES

Sec. 1027.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1027.107. PROVISION OF CERTAIN HEALTH SERVICES

Sec. 1027.108. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1027.109. EMINENT DOMAIN

Sec. 1027.110. GIFTS AND ENDOWMENTS

Sec. 1027.111. CONSTRUCTION CONTRACTS

Sec. 1027.112. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1027.113. CONTRACTS FOR CARE AND TREATMENT

Sec. 1027.114. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1027.115. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1027.116. AUTHORITY TO SUE AND BE SUED

Sec. 1027.117. AUTHORITY TO PROVIDE HEALTH CARE

SERVICES

[Sections 1027.118-1027.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1027.151. BUDGET

Sec. 1027.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1027.153. AMENDMENTS TO BUDGET

Sec. 1027.154. FISCAL YEAR

Sec. 1027.155. AUDIT

Sec. 1027.156. INSPECTION OF AUDIT AND DISTRICT

RECORDS

Sec. 1027.157. FINANCIAL REPORT

Sec. 1027.158. DEPOSITORY

Sec. 1027.159. SPENDING AND INVESTMENT RESTRICTIONS

Sec. 1027.160. AUTHORITY TO BORROW MONEY IN EMERGENCY;

SECURITY

[Sections 1027.161-1027.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1027.201. GENERAL OBLIGATION BONDS

Sec. 1027.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1027.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1027.204. REVENUE BONDS

Sec. 1027.205. REFUNDING BONDS

Sec. 1027.206. MATURITY OF BONDS

Sec. 1027.207. EXECUTION OF BONDS

Sec. 1027.208. BONDS EXEMPT FROM TAXATION

[Sections 1027.209-1027.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1027.251. IMPOSITION OF AD VALOREM TAX

Sec. 1027.252. TAX RATE

Sec. 1027.253. TAX ASSESSOR-COLLECTOR

[Sections 1027.254-1027.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1027.301. DISSOLUTION; ELECTION

Sec. 1027.302. NOTICE OF ELECTION

Sec. 1027.303. BALLOT

Sec. 1027.304. ELECTION RESULTS

Sec. 1027.305. SALE OR TRANSFER OF ASSETS AND

LIABILITIES

CHAPTER 1027. FISHER COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1027.001.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 Fisher County Hospital

District. (New.)

Sec.1027.002.AUTHORITY FOR OPERATION. The district

operates in accordance with Section 9, Article IX, Texas

Constitution, and has the rights, powers, and duties provided by

this chapter. (Acts 63rd Leg., R.S., Ch. 448, Sec. 1 (part).)

Sec.1027.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 63rd Leg., R.S., Ch. 448, Sec. 22 (part).)

Sec.1027.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Fisher County,

Texas. (Acts 63rd Leg., R.S., Ch. 448, Sec. 1 (part).)

Sec.1027.005.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 to

the constitution. (Acts 63rd Leg., R.S., Ch. 448, Sec. 24 (part).)

Sec. 1027.006. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The support or maintenance of the district may not

become a charge against or obligation of this state. (Acts 63rd

Leg., R.S., Ch. 448, Sec. 21 (part).)

[Sections 1027.007-1027.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1027.051.BOARD ELECTION; TERM. (a) The board

consists of five directors elected from the district at large

unless the board changes the method for electing directors under

Section 1027.052.

(b) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) three directors are elected in one year and two

directors are elected the following year.

in May of each year to elect the appropriate number of directors.

(d) The board shall announce the election results. (Acts

63rd Leg., R.S., Ch. 448, Secs. 4(a) (part), (c) (part), (f), (i)

(part); Acts 64th Leg., R.S., Ch. 313, Sec. 2.)

Sec.1027.052.CHANGE IN ELECTION FORMAT. (a) On its own

initiative or on receipt of a petition signed by a number of

district residents equal to at least 10 percent of the district's

registered voters, the board by order shall seek input from

district residents to determine whether to change the method of

electing directors under this chapter to one of the following

methods:

(1) four single-member districts and one at-large

member;

(2) five single-member districts;

(3) four single-member districts, with each district

coextensive with a county commissioner's precinct, and one at-large

member; or

(4) cumulative voting.

(b) Not later than the 30th day after the date the board

enters the order, the board shall establish an advisory committee

composed of district residents to advise and assist the board in

making the determination required by Subsection (a). Committee

members must represent all segments of the district's population.

committee is established, the committee shall hold a public hearing

regarding the proposed change in the election format. Not later

than the 30th day after the date the public hearing is held, the

committee shall submit a recommendation to the board that includes

comments and concerns raised by district residents regarding any

proposed change in the election format.

(d) After reviewing the advisory committee recommendation,

the board may adopt an order changing the method by which directors

are elected.

(e) A change in the election format adopted by the board

under this section shall be implemented at the next general

directors' election for which the change can be implemented

consistently with the Election Code and federal law. (Acts 63rd

Leg., R.S., Ch. 448, Sec. 4A.)

Sec.1027.053.NOTICE OF ELECTION. (a) At least 35 days

before the date of an election of directors, notice of the election

shall be published one time in a newspaper of general circulation in

the district.

(b) The election notice shall state:

(1) the purpose of the election;

(2) the date of the election; and

(3) the location of the polling places. (Acts 63rd

Leg., R.S., Ch. 448, Sec. 4(c) (part).)

Sec.1027.054.QUALIFICATIONS FOR OFFICE. (a) A person may

not serve as a director unless the person is:

(1) a district resident; and

(2) a qualified voter.

(b) A person is not eligible to serve as a director if the

person is:

(1) the district administrator; or

(2) a district employee. (Acts 63rd Leg., R.S., Ch.

448, Sec. 4(b) (part).)

Sec.1027.055.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 63rd Leg., R.S., Ch. 448,

Sec. 4(a) (part).)

Sec.1027.056.OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its

members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

unexpired term. (Acts 63rd Leg., R.S., Ch. 448, Sec. 4(j) (part).)

Sec.1027.057.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 63rd Leg., R.S., Ch.

448, Sec. 4(j) (part).)

Sec.1027.058.VOTING REQUIREMENT. A concurrence of three

directors is sufficient in any matter relating to district

business. (Acts 63rd Leg., R.S., Ch. 448, Sec. 4(j) (part).)

Sec.1027.059.DISTRICT ADMINISTRATOR. (a) The board shall

appoint a qualified person as district administrator.

(b) The district administrator serves at the will of the

board and is entitled to the compensation determined by the board.

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.

(d) The cost of the bond is the responsibility of the

district. (Acts 63rd Leg., R.S., Ch. 448, Sec. 5(b) (part).)

Sec.1027.060.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. 448, Sec. 5(b) (part).)

Sec. 1027.061. APPOINTMENT AND RECRUITMENT 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 necessary.

(b) The board shall determine the type, number, and location

of district employees required to maintain an adequate hospital

system. The board may employ fiscal agents, accountants,

architects, attorneys, and other employees the board considers

proper.

authority to:

(1) hire district employees, including medical

practitioners, technicians, and nurses; and

(2) incur reasonable and necessary expenses relating

to the search, recruitment, and hiring of medical practitioners and

district employees, including contracting with a private entity

such as a professional recruiting service. (Acts 63rd Leg., R.S.,

Ch. 448, Secs. 5(c), 10(a) (part), 17.)

[Sections 1027.062-1027.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1027.101.DISTRICT RESPONSIBILITY AND AUTHORITY. The

district has full responsibility for:

(1) operating hospital facilities and furnishing

medical and hospital care for the district's needy residents; and

(2) providing hospital care for the district's

indigent residents. (Acts 63rd Leg., R.S., Ch. 448, Secs. 2 (part),

20 (part).)

Sec. 1027.102. 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 63rd Leg.,

R.S., Ch. 448, Sec. 20 (part).)

Sec.1027.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

(a) The board shall manage, control, and administer the hospital

system and the district's money and resources.

(b) Unless specifically stated otherwise in this chapter,

the board has the power to do anything which, in their opinion, is

necessary for the good maintenance, operation, and welfare of the

district and the district's employees, patients, and property.

(Acts 63rd Leg., R.S., Ch. 448, Secs. 5(a) (part), 21 (part).)

Sec.1027.104.HOSPITAL SYSTEM. (a) The district shall

provide for the establishment of a hospital system by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the buildings and equipment for

hospital purposes.

(b) The hospital system may include:

(1) facilities for domiciliary care of the sick,

injured, or geriatric;

(2) facilities for outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses' domiciliaries and training

centers;

(6) blood banks;

(7) research centers and laboratories; and

(8) ambulance and other facilities or services the

board considers necessary for hospital care. (Acts 63rd Leg.,

R.S., Ch. 448, Secs. 2 (part), 10(a) (part).)

Sec.1027.105.RULES. The board may adopt rules governing

the operation of the hospital, the hospital system, and the

district's staff and employees. (Acts 63rd Leg., R.S., Ch. 448,

Sec. 5(a) (part).)

Sec.1027.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of making purchases and

expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 63rd

Leg., R.S., Ch. 448, Sec. 11 (part).)

Sec.1027.107.PROVISION OF CERTAIN HEALTH SERVICES. In

the geographic service area designated by the board, the district

may operate or provide for:

(1) the operation of a mobile emergency medical

service; and

(2) home health services, long-term care services,

skilled nursing care services, intermediate nursing care services,

assisted living services, hospice care, or other health-related

services. (Acts 63rd Leg., R.S., Ch. 448, Sec. 2 (part).)

Sec. 1027.108. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type of equipment and

the type, number, and location of buildings required to maintain an

adequate hospital system.

(b) The board may lease all or part of the district's

buildings and other facilities on terms considered to be in the best

interest of the district's inhabitants. The term of the lease may

not exceed 25 years.

district's hospital system and mortgage or pledge the property as

security for the payment of the purchase price. A contract entered

into under this subsection must provide that the entire obligation

be retired not later than the fifth anniversary of the date of the

contract.

(d) The district may sell or otherwise dispose of any

property, including equipment, on terms the board finds are in the

best interest of the district's inhabitants. The board may not sell

or dispose of any real property unless the board affirmatively

finds that the real property is not needed for the operation of the

hospital system. (Acts 63rd Leg., R.S., Ch. 448, Secs. 10(a)

(part), (b) (part), 11 (part).)

Sec.1027.109.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 for the district to exercise

a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 63rd Leg., R.S., Ch. 448, Sec.

15.)

Sec.1027.110.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 objective of the district. (Acts 63rd Leg., R.S., Ch. 448, Sec.

19.)

Sec.1027.111.CONSTRUCTION CONTRACTS. A construction

contract that involves the expenditure of more than $10,000 may be

made only after advertising in the manner provided by Chapter 252,

Local Government Code. (Acts 63rd Leg., R.S., Ch. 448, Sec. 11

(part).)

Sec.1027.112.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a district facility. (Acts 63rd Leg., R.S., Ch. 448, Sec. 10(b)

(part).)

Sec.1027.113.CONTRACTS FOR CARE AND TREATMENT. (a) The

board may contract with a political subdivision of this state or a

public or private hospital, private corporation, partnership, or

cooperative, located inside or outside the district, for the care

and treatment of a sick or injured person of the political

subdivision.

(b) The board may contract with this state or a federal

agency for the treatment of a sick or injured person. (Acts 63rd

Leg., R.S., Ch. 448, Sec. 5(d) (part).)

Sec. 1027.114. 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 medical,

hospital, or welfare needs of district inhabitants. (Acts 63rd

Leg., R.S., Ch. 448, Sec. 5(d) (part).)

Sec.1027.115.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 who are 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 costs of

the care and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district administrator may collect the amount from

the patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the 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) The final order of the board may be appealed to the

district court. The substantial evidence rule applies to the

appeal. (Acts 63rd Leg., R.S., Ch. 448, Sec. 18.)

Sec.1027.116.AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued. (Acts 63rd Leg., R.S., Ch.

448, Sec. 5(a) (part).)

Sec.1027.117.AUTHORITY TO PROVIDE HEALTH CARE SERVICES.

(a) In this section, "health care services" includes:

(1) home health care services;

(2) respiratory or physical therapy services;

(3) mobile emergency medical services; and

(4) clinic services.

(b) This chapter does not limit the district in providing

health care services to any ill or injured person, regardless of

whether the person is a district resident. (Acts 63rd Leg., R.S.,

Ch. 448, Sec. 5(e).)

[Sections 1027.118-1027.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1027.151.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 amount of cash on hand in each district fund;

(3) the amount of money received by the district from

all sources during the previous year;

(4) the amount of money available to the district from

all sources during the ensuing year;

(5) the amount of the balances expected at the end of

the year in which the budget is being prepared;

(6) the estimated amount of revenue and balances

available to cover the proposed budget; and

(7) the estimated tax rate required. (Acts 63rd Leg.,

R.S., Ch. 448, Sec. 6(a) (part).)

Sec.1027.152.NOTICE; HEARING; ADOPTION 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 have general

circulation in the district.

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 adopt

a final budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the taxpayers

and that the law warrants. (Acts 63rd Leg., R.S., Ch. 448, Secs.

6(b), (c) (part).)

Sec.1027.153.AMENDMENTS TO BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 63rd Leg., R.S., Ch. 448, Sec. 6(c) (part).)

Sec.1027.154.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed more than once in a

24-month period. (Acts 63rd Leg., R.S., Ch. 448, Sec. 6(a) (part).)

Sec.1027.155.AUDIT. (a) The board shall have an

independent audit made of the district's financial condition for

the fiscal year.

(b) As soon as it is completed, the audit shall be filed at

the district's office. (Acts 63rd Leg., R.S., Ch. 448, Sec. 6(a)

(part).)

Sec.1027.156.INSPECTION OF AUDIT AND DISTRICT RECORDS.

The audit and other district records shall be open to inspection at

the district's principal office. (Acts 63rd Leg., R.S., Ch. 448,

Sec. 6(a) (part).)

Sec.1027.157.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 63rd Leg., R.S., Ch. 448, Sec. 6(c) (part).)

Sec.1027.158.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 1027.159(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.

the power of the board to place a part of district money on time

deposit or to purchase certificates of deposit.

(d) The district may not deposit money with a bank in an

amount that exceeds the maximum amount secured by the Federal

Deposit Insurance Corporation unless the bank first executes a bond

or other security in an amount sufficient to secure from loss the

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation. (Acts 63rd Leg., R.S., Ch. 448,

Sec. 12.)

Sec.1027.159.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Section 1027.108(c) and by

Subchapter E, 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 63rd Leg., R.S., Ch. 448,

Secs. 5(a) (part), 11 (part).)

Sec. 1027.160. AUTHORITY TO BORROW MONEY IN EMERGENCY;

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) district taxes to be imposed by the district

during the 12-month period following the date of the pledge that are

not pledged to pay the principal of or interest on district bonds;

(3) district bonds that have been authorized but not

sold. (Acts 63rd Leg., R.S., Ch. 448, Sec. 17A.)

[Sections 1027.161-1027.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1027.201.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 designed to provide,

improve, or expand the district's health care services, including:

(1) the purchase, construction, acquisition, repair,

or renovation of buildings or improvements;

(2) equipping buildings or improvements for hospital

purposes; and

(3) the acquisition and operation of a mobile

emergency medical service. (Acts 63rd Leg., R.S., Ch. 448, Sec. 7

(part).)

Sec.1027.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1027.201, 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

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 63rd Leg., R.S., Ch. 448, Sec. 7 (part).)

Sec.1027.203.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 election shall 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 maturity of the bonds; and

(6) the maximum interest rate of the bonds.

Section 1251.003, Government Code. (Acts 63rd Leg., R.S., Ch. 448,

Sec. 7 (part).)

Sec.1027.204.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used 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 hospitals.

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, and 264.046-264.049, Health and Safety Code, for

issuance of revenue bonds by a county hospital authority. (Acts

63rd Leg., R.S., Ch. 448, Sec. 8(b) (part).)

Sec.1027.205.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 bonds

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 63rd

Leg., R.S., Ch. 448, Secs. 8(a) (part), (b) (part).)

Sec.1027.206.MATURITY OF BONDS. District bonds must

mature not later than 40 years after the date of issuance. (Acts

63rd Leg., R.S., Ch. 448, Sec. 9 (part).)

Sec.1027.207.EXECUTION OF BONDS. (a) The board president

shall execute district bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 63rd Leg.,

R.S., Ch. 448, Sec. 9 (part).)

Sec.1027.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) the transfer and issuance of the bonds; and

(3) profits made in the sale of the bonds. (Acts 63rd

Leg., R.S., Ch. 448, Sec. 22 (part).)

[Sections 1027.209-1027.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1027.251.IMPOSITION OF AD VALOREM TAX. (a) The board

annually 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 and other obligations issued or assumed by the district for

hospital purposes;

(2) provide for the operation and maintenance of the

district and hospital system, based on the final budget;

(3) make improvements and additions to the hospital

system; and

(4) acquire necessary sites for the hospital system by

purchase, lease, or condemnation. (Acts 63rd Leg., R.S., Ch. 448,

Secs. 3(b) (part), 13(a) (part).)

Sec.1027.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed 75 cents on each $100 valuation of 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 63rd

Leg., R.S., Ch. 448, Secs. 3(b) (part), 13(a) (part), (b) (part).)

Sec.1027.253.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. 448, Sec.

16(c).)

[Sections 1027.254-1027.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec.1027.301.DISSOLUTION; ELECTION. (a) The district

may be dissolved and its assets and obligations sold or transferred

to another person 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.

a petition requesting an election that is signed by at least 300

registered district voters according to the most recent official

list of registered 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 63rd Leg., R.S., Ch.

448, Secs. 23A(a), (b), (c) (part), (d), (f) (part).)

Sec.1027.302.NOTICE OF ELECTION. (a) The board shall

give notice of an election under this subchapter by publishing once

a week for two consecutive weeks a substantial copy of the election

order in a newspaper with general circulation in the district.

(b) The first publication of the notice must appear at least

35 days before the date set for the election. (Acts 63rd Leg.,

R.S., Ch. 448, Sec. 23A(e).)

Sec.1027.303.BALLOT. The ballot for an election under

this subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the Fisher County Hospital

District and the _________ (transfer or sale, as appropriate) of

its assets and liabilities in the following manner: _________."

(Acts 63rd Leg., R.S., Ch. 448, Sec. 23A(g).)

Sec.1027.304.ELECTION RESULTS. (a) If the board finds

the election results favor the proposition to dissolve the

district, the board shall:

(1) issue an order declaring the district dissolved;

and

(2) proceed with the sale or transfer of the district's

assets and liabilities according to the plan proposed on the

ballot.

(b) If the board finds the election results do not favor the

proposition to dissolve the district, the board shall continue to

administer the district and another dissolution election may not be

held before the first anniversary of the date of the election in

which voters disapproved the proposition. (Acts 63rd Leg., R.S.,

Ch. 448, Sec. 23A(h) (part).)

Sec.1027.305.SALE OR TRANSFER OF ASSETS AND LIABILITIES.

(a) 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.

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 sell the district's assets

only for due compensation, unless the transfer or sale is made to

another governmental agency serving the district and using the

transferred or purchased assets for the benefit of the residents

formerly in the district.

(e) A grant from federal funds is an obligation to be repaid

in full. (Acts 63rd Leg., R.S., Ch. 448, Secs. 23A(i), (j), (k).)

CHAPTER 1028. FOARD COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1028.001. DEFINITIONS

Sec. 1028.002. AUTHORITY FOR OPERATION

Sec. 1028.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1028.004. DISTRICT TERRITORY

Sec. 1028.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1028.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1028.007-1028.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1028.051. BOARD ELECTION; TERMS

Sec. 1028.052. NOTICE OF ELECTION

Sec. 1028.053. BALLOT PETITION

Sec. 1028.054. QUALIFICATIONS FOR OFFICE

Sec. 1028.055. BOND

Sec. 1028.056. BOARD VACANCY

Sec. 1028.057. OFFICERS

Sec. 1028.058. COMPENSATION; EXPENSES

Sec. 1028.059. VOTING REQUIREMENT

Sec. 1028.060. DISTRICT ADMINISTRATOR

Sec. 1028.061. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1028.062. ASSISTANT DISTRICT ADMINISTRATOR;

ATTORNEY

Sec. 1028.063. EMPLOYEES; APPOINTMENT OF STAFF

Sec. 1028.064. RETIREMENT BENEFITS

[Sections 1028.065-1028.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1028.101. DISTRICT RESPONSIBILITY

Sec. 1028.102. RESTRICTION ON COUNTY TAXATION AND DEBT

Sec. 1028.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1028.104. RULES

Sec. 1028.105. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1028.106. MOBILE EMERGENCY MEDICAL SERVICE

Sec. 1028.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1028.108. EMINENT DOMAIN

Sec. 1028.109. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 1028.110. GIFTS AND ENDOWMENTS

Sec. 1028.111. CONSTRUCTION CONTRACTS

Sec. 1028.112. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1028.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR SERVICES

Sec. 1028.114. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1028.115. REIMBURSEMENT FOR SERVICES

Sec. 1028.116. AUTHORITY TO SUE AND BE SUED

[Sections 1028.117-1028.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1028.151. BUDGET

Sec. 1028.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1028.153. AMENDMENTS TO BUDGET

Sec. 1028.154. RESTRICTION ON EXPENDITURES

Sec. 1028.155. FISCAL YEAR

Sec. 1028.156. ANNUAL AUDIT

Sec. 1028.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS

Sec. 1028.158. FINANCIAL REPORT

Sec. 1028.159. DEPOSITORY

Sec. 1028.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1028.161-1028.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1028.201. GENERAL OBLIGATION BONDS

Sec. 1028.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1028.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1028.204. REVENUE BONDS

Sec. 1028.205. REFUNDING BONDS

Sec. 1028.206. MATURITY OF BONDS

Sec. 1028.207. EXECUTION OF BONDS

Sec. 1028.208. BONDS EXEMPT FROM TAXATION

[Sections 1028.209-1028.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1028.251. IMPOSITION OF AD VALOREM TAX

Sec. 1028.252. TAX RATE

Sec. 1028.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1028. FOARD COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1028.001.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 Foard County Hospital

District. (Acts 68th Leg., R.S., Ch. 680, Sec. 1.01.)

Sec.1028.002.AUTHORITY FOR OPERATION. The district

operates and is financed as provided by Section 9, Article IX, Texas

Constitution, and by this chapter. (Acts 68th Leg., R.S., Ch. 680,

Sec. 1.02.)

Sec.1028.003.ESSENTIAL PUBLIC FUNCTION. The district is

a public entity performing an essential public function. (Acts

68th Leg., R.S., Ch. 680, Sec. 7.11 (part).)

Sec.1028.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Foard County,

Texas. (Acts 68th Leg., R.S., Ch. 680, Sec. 1.03.)

Sec. 1028.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The state may not become obligated for the support or

maintenance of the district. (Acts 68th Leg., R.S., Ch. 680, Sec.

9.01 (part).)

Sec.1028.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 68th Leg., R.S., Ch. 680, Sec. 9.01 (part).)

[Sections 1028.007-1028.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1028.051.BOARD ELECTION; TERMS. (a) The district is

governed by a board of seven 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. (Acts 68th Leg., R.S., Ch. 680, Secs. 4.01(a),

4.03(a), (c).)

Sec.1028.052.NOTICE OF ELECTION. At least 50 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper with general circulation in the

district. (Acts 68th Leg., R.S., Ch. 680, Sec. 4.04.)

Sec.1028.053.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 15 registered voters of the

district, as determined by the most recent official lists of

registered voters; and

(2) filed not later than the 46th day before the date

of the election. (Acts 68th Leg., R.S., Ch. 680, Sec. 4.05.)

Sec.1028.054.QUALIFICATIONS FOR OFFICE. (a) To be

eligible to be a candidate for or to serve as a director, a person

must be:

(1) a district resident; and

(2) a qualified voter.

(b) A district employee may not serve as a director. (Acts

68th Leg., R.S., Ch. 680, Sec. 4.06.)

Sec.1028.055.BOND. (a) Before assuming the duties of

office, each director must execute a bond for $5,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

director's duties.

(b) The board may pay for a director's bond with district

money.

permanent records. (Acts 68th Leg., R.S., Ch. 680, Sec. 4.07.)

Sec.1028.056.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 68th Leg., R.S., Ch. 680,

Sec. 4.08.)

Sec.1028.057.OFFICERS. (a) The board shall elect a

president and a vice president from among its members.

(b) The board shall appoint a secretary, who need not be a

director.

(d) The board shall fill a vacancy in a board office for the

unexpired term. (Acts 68th Leg., R.S., Ch. 680, Secs. 4.09, 4.10.)

Sec.1028.058.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 68th Leg., R.S., Ch.

680, Sec. 4.11.)

Sec.1028.059.VOTING REQUIREMENT. A concurrence of a

majority of the directors voting is necessary in any matter

relating to district business. (Acts 68th Leg., R.S., Ch. 680, Sec.

4.12.)

Sec.1028.060.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 is entitled to the compensation determined by the board.

the administrator must execute a bond in an amount set by the board

of not less than $5,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

administrator's duties under this chapter.

(d) The board may pay for the bond with district money.

(Acts 68th Leg., R.S., Ch. 680, Secs. 4.13(a) (part), (b) (part),

Sec.1028.061.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 general affairs of the district. (Acts

68th Leg., R.S., Ch. 680, Sec. 4.16.)

Sec.1028.062.ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.

(a) The board may appoint qualified persons as:

(1) the assistant district administrator; and

(2) the attorney for the district.

(b) The assistant district administrator and the attorney

for the district serve at the will of the board and are entitled to

the compensation determined by the board. (Acts 68th Leg., R.S.,

Ch. 680, Secs. 4.13(a) (part), (b) (part), (c) (part).)

Sec.1028.063.EMPLOYEES; APPOINTMENT OF STAFF. (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 necessary.

(b) The district may employ technicians, nurses, fiscal

agents, accountants, architects, additional attorneys, and other

necessary employees.

authority to employ persons for the district. (Acts 68th Leg.,

R.S., Ch. 680, Secs. 4.14, 4.15.)

Sec.1028.064.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 68th Leg., R.S., Ch.

680, Sec. 4.17.)

[Sections 1028.065-1028.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1028.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for:

(1) operating hospital facilities; and

(2) providing medical and hospital care for the

district's needy inhabitants. (Acts 68th Leg., R.S., Ch. 680, Sec.

5.02 (part).)

Sec.1028.102.RESTRICTION ON COUNTY TAXATION AND DEBT.

Foard County may not impose a tax or issue bonds or other

obligations for hospital purposes or to provide medical care for

district residents. (Acts 68th Leg., R.S., Ch. 680, Sec. 5.01(b).)

Sec.1028.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 68th Leg., R.S., Ch.

680, Sec. 5.03.)

Sec.1028.104.RULES. The board may adopt rules governing:

(1) the operation of the hospital and hospital system;

and

(2) the duties, functions, and responsibilities of

district staff and employees. (Acts 68th Leg., R.S., Ch. 680, Sec.

5.04.)

Sec.1028.105.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method of making purchases and expenditures by

and for the district; and

(2) accounting and control procedures for the

district. (Acts 68th Leg., R.S., Ch. 680, Sec. 5.05.)

Sec.1028.106.MOBILE EMERGENCY MEDICAL SERVICE. The

district may operate or provide for the operation of a mobile

emergency medical service. (Acts 68th Leg., R.S., Ch. 680, Sec.

5.02 (part).)

Sec. 1028.107. 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 property, including facilities and

equipment, for the district for use in the hospital system; and

(2) mortgage or pledge the property as security for

payment of the purchase price.

district.

(d) The board may sell or otherwise dispose of property,

including facilities or equipment, for the district. (Acts 68th

Leg., R.S., Ch. 680, Sec. 5.06.)

Sec.1028.108.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in property located in district territory if the

interest is necessary for the district to exercise a right or

authority conferred 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 68th Leg., R.S., Ch. 680, Sec.

5.09.)

Sec.1028.109.COST OF RELOCATING OR ALTERING PROPERTY. In

exercising the power of eminent domain, if the board requires

relocating, raising, lowering, rerouting, changing the grade of, or

altering the construction of any railroad, highway, pipeline, or

electric transmission, telegraph, or telephone line, conduit,

pole, or facility, the district must bear the actual cost of

relocating, raising, lowering, rerouting, changing the grade, or

altering the construction to provide comparable replacement

without enhancement of facilities, after deducting the net salvage

value derived from the old facility. (Acts 68th Leg., R.S., Ch.

680, Sec. 5.10.)

Sec.1028.110.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust for any

purpose and under any direction, limitation, or other provision

prescribed in writing by the donor that is consistent with the

proper management of the district. (Acts 68th Leg., R.S., Ch. 680,

Sec. 5.14.)

Sec.1028.111.CONSTRUCTION CONTRACTS. (a) The board may

enter into 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 competitive

bidding as provided by Subchapter B, Chapter 271, Local Government

Code. (Acts 68th Leg., R.S., Ch. 680, Sec. 5.07(a).)

Sec.1028.112.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a hospital facility for the district. (Acts 68th Leg., R.S., Ch.

680, Sec. 5.08.)

Sec. 1028.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

SERVICES. The board may contract with a political subdivision of

this state or with a state or federal agency for the district to:

(1) furnish a mobile emergency medical service; or

(2) provide for the investigatory or welfare needs of

district inhabitants. (Acts 68th Leg., R.S., Ch. 680, Sec. 5.13.)

Sec.1028.114.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a person who resides in the district is admitted as a patient

to a district facility, the district administrator may have an

inquiry made into the financial circumstances of:

(1) the patient; and

(2) a relative of the patient who is legally

responsible for the patient's support.

(b) To the extent that the patient or a relative of the

patient who is legally responsible for the patient's support cannot

pay for care and treatment provided by the district, the district

shall supply the care and treatment without charging the patient or

the patient's relative.

responsible for the patient's support 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 the relative to

pay the district a specified amount each week. The amount must be

based on the person's ability to pay.

(d) The district administrator may collect money owed to the

district from the patient's estate or from that of a relative who

was legally responsible for the patient's support in the manner

provided by law for the collection of expenses in the last illness

of a deceased person.

(e) If there is a dispute relating to a person's ability to

pay or if the district administrator has any doubt concerning a

person's ability to pay, the board shall:

(1) call witnesses;

(2) hear and resolve the question; and

(3) issue a final order.

(f) The final order of the board may be appealed to a

district court in Foard County. The substantial evidence rule

applies to the appeal. (Acts 68th Leg., R.S., Ch. 680, Sec. 5.11.)

Sec.1028.115.REIMBURSEMENT FOR SERVICES. (a) The board

shall require a county or municipality located outside the district

to reimburse the district for the district's care and treatment of a

sick or injured person of that county or municipality.

(b) The board shall require the sheriff of Foard County to

reimburse the district for the district's care and treatment of a

person who is confined in a jail facility of Foard County and is not

a district resident.

the state or federal government for that government to reimburse

the district for treatment of a sick or injured person. (Acts 68th

Leg., R.S., Ch. 680, Sec. 5.12.)

Sec.1028.116.AUTHORITY TO SUE AND BE SUED. The board may

sue and be sued on behalf of the district. (Acts 68th Leg., R.S.,

Ch. 680, Sec. 5.15.)

[Sections 1028.117-1028.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1028.151.BUDGET. (a) The district administrator

shall prepare a proposed annual budget for the district.

(b) The proposed budget must contain a complete financial

statement, including a statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash on hand in each district fund;

(3) the amount of money received by the district from

all sources during the previous year;

(4) the amount of money available to the district from

all sources during the ensuing year;

(5) the amount of the balances expected at the end of

the year in which the budget is being prepared;

(6) the estimated amount of revenue and balances

available to cover the proposed budget; and

(7) the estimated tax rate required. (Acts 68th Leg.,

R.S., Ch. 680, Sec. 6.04.)

Sec.1028.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) The board shall publish notice of the hearing in a

newspaper with general circulation in the district not later than

the 10th day before the date of the hearing.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the

taxpayers.

(e) The budget is effective only after adoption by the

board. (Acts 68th Leg., R.S., Ch. 680, Sec. 6.05.)

Sec.1028.153.AMENDMENTS TO BUDGET. After the budget is

adopted, the budget may be amended on the board's approval. (Acts

68th Leg., R.S., Ch. 680, Sec. 6.06.)

Sec.1028.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 68th Leg., R.S., Ch. 680, Sec. 6.07.)

Sec.1028.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that revenue bonds of the district

are outstanding; or

(2) more than once in a 24-month period. (Acts 68th

Leg., R.S., Ch. 680, Sec. 6.01.)

Sec.1028.156.ANNUAL AUDIT. The board annually shall have

an audit made of the district's financial condition. (Acts 68th

Leg., R.S., Ch. 680, Sec. 6.02.)

Sec. 1028.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS. The annual audit and other district records shall be open

to inspection during regular business hours at the district's

principal office. (Acts 68th Leg., R.S., Ch. 680, Sec. 6.03.)

Sec.1028.158.FINANCIAL REPORT. As soon as practicable

after the close of the fiscal year, the district administrator

shall prepare for the board:

(1) a sworn statement of the amount of district money;

and

(2) an account of the disbursements of that money.

(Acts 68th Leg., R.S., Ch. 680, Sec. 6.08.)

Sec.1028.159.DEPOSITORY. (a) The board shall select at

least one bank to serve as a depository for district money.

(b) District money, other than money invested as provided by

Section 1028.160(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. This subsection does not limit the power of the board to

place a part of district money on time deposit or to purchase

certificates of deposit.

amount that exceeds the maximum amount secured by the Federal

Deposit Insurance Corporation unless the bank first executes a bond

or other security in an amount sufficient to secure from loss the

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation. (Acts 68th Leg., R.S., Ch. 680,

Sec. 6.10.)

Sec.1028.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as provided by Sections 1028.111, 1028.201, 1028.204, and

1028.205, the district may not incur a debt payable from district

revenue other than the revenue on hand or to be on hand in the

current and immediately following district fiscal years.

(b) The board may invest operating, depreciation, or

building reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 68th Leg., R.S., Ch. 680, Sec. 6.09.)

[Sections 1028.161-1028.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1028.201.GENERAL OBLIGATION BONDS. If authorized by

an election, the board may issue and sell general obligation bonds

in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements;

(2) equip buildings or improvements for hospital

purposes; or

(3) acquire and operate a mobile emergency medical

service. (Acts 68th Leg., R.S., Ch. 680, Sec. 7.01.)

Sec.1028.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1028.201, 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

limit approved by the voters at the election authorizing the

imposition of the tax. (Acts 68th Leg., R.S., Ch. 680, Sec. 7.02.)

Sec.1028.203.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.

(b) The board may order a bond election.

(1) the nature and date of the election;

(2) the hours during which the polls will be open;

(3) the location of the polling places;

(4) the amount of the bonds to be authorized; and

(5) the maximum maturity of the bonds.

(d) Notice of a bond election shall be given as provided by

Section 1251.003, Government Code.

(e) The board shall declare the results of the election.

(Acts 68th Leg., R.S., Ch. 680, Sec. 7.03.)

Sec.1028.204.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, equip, or

renovate buildings or improvements for hospital purposes;

(2) acquire sites to be used for hospital purposes; or

(3) acquire and operate a mobile emergency medical

service to assist the district in carrying out its hospital

purposes.

(b) The bonds must be payable from and secured by a pledge of

all or part of the revenue derived from the operation of the

district's hospital system.

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, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority.

(Acts 68th Leg., R.S., Ch. 680, Sec. 7.04.)

Sec.1028.205.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 the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 68th

Leg., R.S., Ch. 680, Secs. 7.05(a), (c) (part).)

Sec.1028.206.MATURITY OF BONDS. District bonds must

mature not later than 50 years after the date of issuance. (Acts

68th Leg., R.S., Ch. 680, Sec. 7.06 (part).)

Sec.1028.207.EXECUTION OF BONDS. (a) The board president

shall execute district bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 68th Leg.,

R.S., Ch. 680, Sec. 7.07.)

Sec.1028.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) any transaction relating to the bonds; and

(3) profits made in the sale of the bonds. (Acts 68th

Leg., R.S., Ch. 680, Sec. 7.11 (part).)

[Sections 1028.209-1028.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1028.251.IMPOSITION OF AD VALOREM TAX. (a) The board

may impose a tax on all property in the district subject to district

taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

or interest on revenue bonds issued under this chapter. (Acts 68th

Leg., R.S., Ch. 680, Secs. 8.01 (a) (part), (c), (d), 8.02(b).)

Sec.1028.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed the limit approved by the voters at the

election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on

each $100 valuation of all taxable property in the district.

income of the district from sources other than taxation. (Acts 68th

Leg., R.S., Ch. 680, Secs. 8.01(a) (part), (b), 8.03 (part).)

Sec.1028.253.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 68th Leg., R.S., Ch. 680, Sec.

8.04(b).)

CHAPTER 1029. FOLLETT HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1029.001. DEFINITIONS

Sec. 1029.002. AUTHORITY FOR OPERATION

Sec. 1029.003. POLITICAL SUBDIVISION

Sec. 1029.004. DISTRICT TERRITORY

[Sections 1029.005-1029.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1029.051. BOARD ELECTION; TERM

Sec. 1029.052. BOARD VACANCY

Sec. 1029.053. OFFICERS

Sec. 1029.054. COMPENSATION; EXPENSES

Sec. 1029.055. EMPLOYEES

Sec. 1029.056. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

Sec. 1029.057. SEAL

[Sections 1029.058-1029.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1029.101. DISTRICT RESPONSIBILITY

Sec. 1029.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1029.103. MANAGEMENT AND CONTROL

Sec. 1029.104. HOSPITAL SYSTEM

Sec. 1029.105. RULES

Sec. 1029.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1029.107. EMINENT DOMAIN

Sec. 1029.108. GIFTS AND ENDOWMENTS

Sec. 1029.109. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1029.110. AUTHORITY TO SUE AND BE SUED

[Sections 1029.111-1029.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1029.151. BUDGET

Sec. 1029.152. PROPOSED BUDGET: NOTICE AND HEARING

Sec. 1029.153. FISCAL YEAR

Sec. 1029.154. ANNUAL AUDIT

Sec. 1029.155. DEPOSITORY OR TREASURER

[Sections 1029.156-1029.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1029.201. GENERAL OBLIGATION BONDS

Sec. 1029.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1029.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1029.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1029.205. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1029.206. REFUNDING BONDS

[Sections 1029.207-1029.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1029.251. IMPOSITION OF AD VALOREM TAX

Sec. 1029.252. TAX RATE

Sec. 1029.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1029. FOLLETT HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1029.001.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 Follett Hospital District.

(New.)

Sec.1029.002.AUTHORITY FOR OPERATION. The district

operates and is financed in accordance with Section 9, Article IX,

Texas Constitution. (Acts 64th Leg., R.S., Ch. 668, Sec. 1 (part).)

Sec.1029.003.POLITICAL SUBDIVISION. The district is a

political subdivision of this state. (Acts 64th Leg., R.S., Ch.

668, Sec. 16 (part).)

Sec.1029.004.DISTRICT TERRITORY. The district is

composed of the territory described by Section 1, Chapter 668, Acts

of the 64th Legislature, Regular Session, 1975. (New.)

[Sections 1029.005-1029.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1029.051.BOARD ELECTION; TERM. (a) The board

consists of six directors elected from the district at large.

(b) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms, with

three directors elected each year; and

(2) a directors' election shall be held on the uniform

election date in May of each year. (Acts 64th Leg., R.S., Ch. 668,

Secs. 3(d) (part), 3A(a).)

Sec.1029.052.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 64th Leg., R.S., Ch. 668,

Sec. 3A(b).)

Sec.1029.053.OFFICERS. (a) The board shall elect a

president, vice president, and secretary-treasurer from among its

members.

(b) Each officer of the board serves until the next

directors' election. (Acts 64th Leg., R.S., Ch. 668, Sec. 4(a)

(part).)

Sec.1029.054.COMPENSATION; EXPENSES. A director serves

without compensation but may be reimbursed for actual expenses

incurred in the performance of official duties on approval of the

expenses by the entire board. (Acts 64th Leg., R.S., Ch. 668, Sec.

4(b).)

Sec.1029.055.EMPLOYEES. The board may employ a general

manager, attorneys, financial advisors, bookkeepers, and

architects. (Acts 64th Leg., R.S., Ch. 668, Sec. 7(a) (part).)

Sec.1029.056.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

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 reasonable hours.

(Acts 64th Leg., R.S., Ch. 668, Sec. 7(b).)

Sec.1029.057.SEAL. The board may adopt a seal for the

district. (Acts 64th Leg., R.S., Ch. 668, Sec. 7(a) (part).)

[Sections 1029.058-1029.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1029.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for:

(1) operating all hospital facilities; and

(2) providing hospital care for the district's needy

inhabitants. (Acts 64th Leg., R.S., Ch. 668, Sec. 12(a) (part).)

Sec. 1029.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT. (a) A political subdivision within the

district, other than the district, may not impose a tax or issue

bonds or other obligations for hospital purposes or to provide

medical care for district inhabitants.

(b) A governmental entity other than the district may not

impose a tax or issue bonds or other obligations on property in the

district for hospital purposes or to provide medical care for needy

district inhabitants. (Acts 64th Leg., R.S., Ch. 668, Sec. 12(a)

(part).)

Sec.1029.103.MANAGEMENT AND CONTROL. The board has full

management and control of all district business, including the

power to:

(1) negotiate and contract with any person;

(2) purchase or lease land; and

(3) construct, equip, operate, and maintain a hospital

system. (Acts 64th Leg., R.S., Ch. 668, Sec. 4(a) (part).)

Sec.1029.104.HOSPITAL SYSTEM. The district shall

provide for the establishment of a hospital system to provide

medical and hospital care to the district's residents. (Acts 64th

Leg., R.S., Ch. 668, Sec. 2 (part).)

Sec.1029.105.RULES. (a) The board may adopt rules

governing the operation of the district, including district

facilities.

(b) On approval by the board, the rules may be published in

booklet form at district expense and made available to any resident

on request. (Acts 64th Leg., R.S., Ch. 668, Sec. 7(c).)

Sec.1029.106.PURCHASING AND ACCOUNTING PROCEDURES. (a)

The board may prescribe the method and manner of making purchases

and expenditures for the district.

(b) The board shall prescribe:

(1) all accounting and control procedures; and

(2) the method of purchasing necessary supplies,

materials, and equipment. (Acts 64th Leg., R.S., Ch. 668, Sec. 7(a)

(part).)

Sec.1029.107.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 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.

required to:

(1) pay in advance or provide a bond or other security

for costs in the trial court;

(2) provide a bond for the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 64th Leg., R.S., Ch. 668, Sec. 9.)

Sec.1029.108.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 64th Leg., R.S., Ch. 668,

Sec. 14.)

Sec.1029.109.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient from Lipscomb County is admitted to a district

facility, the board shall have an inquiry made into the

circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for

the patient's support.

(b) If an agent designated by the district determines that

the patient or those relatives cannot pay all or part of the costs

of the care and treatment in the hospital, the expense of that care

becomes a charge against the district.

the patient or those relatives are liable to pay for all or part of

the costs of the patient's care and treatment, the patient or those

relatives shall be ordered to pay the district's treasurer 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 may collect the amount from the patient's

estate, or from any relative who is legally liable for the patient's

support, in the manner provided by law for the collection of

expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, the board

shall hold a hearing and, after calling witnesses, shall resolve

the dispute.

(f) Either party to the dispute may appeal the district's

determination to the district court. (Acts 64th Leg., R.S., Ch.

668, Sec. 13.)

Sec.1029.110.AUTHORITY TO SUE AND BE SUED. The district

may sue and be sued in its own name in any court of this state.

(Acts 64th Leg., R.S., Ch. 668, Sec. 16 (part).)

[Sections 1029.111-1029.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1029.151.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 64th Leg., R.S., Ch. 668, Sec. 8(b) (part).)

Sec.1029.152.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.

(1) appear at the time and place designated in the

notice; and

(2) be heard regarding any item included in the

proposed budget. (Acts 64th Leg., R.S., Ch. 668, Sec. 8(b) (part).)

Sec.1029.153.FISCAL YEAR. The district operates on a

fiscal year that begins on October 1 and ends on September 30.

(Acts 64th Leg., R.S., Ch. 668, Sec. 8(a) (part).)

Sec.1029.154.ANNUAL AUDIT. (a) The board annually shall

have an independent audit made of the district's books and records

for the fiscal year.

(b) Not later than December 31 of each year, the audit shall

be filed:

(1) with the comptroller; and

(2) at the district office. (Acts 64th Leg., R.S., Ch.

668, Sec. 8(a) (part).)

Sec.1029.155.DEPOSITORY OR TREASURER. (a) The board by

resolution shall designate a bank or banks in the district as the

district's depository or treasurer. A designated bank serves for

two years and until a successor is designated.

(b) All income received by the district shall be deposited

with the district depository.

provided for securing county funds. (Acts 64th Leg., R.S., Ch. 668,

Secs. 5(b) (part), 10.)

[Sections 1029.156-1029.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1029.201.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 or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 64th Leg., R.S., Ch. 668, Sec. 6(a) (part).)

Sec.1029.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a)

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 general obligation bonds issued under Section 1029.201.

(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 64th Leg., R.S., Ch. 668, Sec. 6(a) (part).)

Sec.1029.203.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.

(b) The board may order the election on its own motion.

(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; and

(5) the maximum interest rate provided by law.

(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 64th Leg., R.S., Ch. 668, Sec. 6(b) (part).)

Sec.1029.204.MATURITY OF GENERAL OBLIGATION BONDS.

District general obligation bonds must mature not later than 40

years after the date of issuance. (Acts 64th Leg., R.S., Ch. 668,

Sec. 6(b) (part).)

Sec.1029.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds. (Acts

64th Leg., R.S., Ch. 668, Sec. 6(a) (part).)

Sec.1029.206.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 64th Leg., R.S., Ch. 668, Secs. 6(b) (part),

[Sections 1029.207-1029.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1029.251.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;

(2) provide for operation and maintenance of the

hospital system;

(3) make improvements and additions to the hospital

system; and

(4) acquire necessary sites by purchase, lease, or

condemnation. (Acts 64th Leg., R.S., Ch. 668, Secs. 5(a) (part),

(b) (part), 8(b) (part).)

Sec.1029.252.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 64th Leg., R.S., Ch. 668, Sec. 5(a)

(part).)

Sec.1029.253.TAX ASSESSOR-COLLECTOR. (a) Except as

provided by Subsection (b), the tax assessor-collector of Lipscomb

County shall assess and collect taxes imposed by the district.

(b) By majority vote the board may appoint a district tax

assessor-collector under Section 285.041, Health and Safety Code.

(Acts 64th Leg., R.S., Ch. 668, Secs. 5(b) (part), (c) (part), 8(b)

(part).)

CHAPTER 1030. FRIO HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1030.001. DEFINITIONS

Sec. 1030.002. AUTHORITY FOR OPERATION

Sec. 1030.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1030.004. DISTRICT TERRITORY

Sec. 1030.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1030.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1030.007-1030.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1030.051. BOARD ELECTION; TERM

Sec. 1030.052. NOTICE OF ELECTION

Sec. 1030.053. BALLOT PETITION

Sec. 1030.054. QUALIFICATIONS FOR OFFICE

Sec. 1030.055. BOND; RECORD OF BOND

Sec. 1030.056. BOARD VACANCY

Sec. 1030.057. OFFICERS

Sec. 1030.058. COMPENSATION; EXPENSES

Sec. 1030.059. VOTING REQUIREMENT

Sec. 1030.060. DISTRICT ADMINISTRATOR

Sec. 1030.061. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1030.062. ASSISTANT DISTRICT ADMINISTRATOR;

ATTORNEY

Sec. 1030.063. APPOINTMENT AND RECRUITMENT OF STAFF

AND EMPLOYEES

Sec. 1030.064. HEALTH EDUCATION

Sec. 1030.065. RETIREMENT BENEFITS

[Sections 1030.066-1030.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1030.101. DISTRICT RESPONSIBILITY

Sec. 1030.102. RESTRICTION ON GOVERNMENTAL ENTITY

TAXATION AND DEBT

Sec. 1030.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1030.104. RULES

Sec. 1030.105. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1030.106. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1030.107. EMINENT DOMAIN

Sec. 1030.108. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 1030.109. GIFTS AND ENDOWMENTS

Sec. 1030.110. CONSTRUCTION CONTRACTS

Sec. 1030.111. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1030.112. CONTRACTS FOR SERVICES

Sec. 1030.113. PROVISION OF CERTAIN HEALTH SERVICES

Sec. 1030.114. MEDICAL CLINICS

Sec. 1030.115. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1030.116. REIMBURSEMENT FOR SERVICES

Sec. 1030.117. AUTHORITY TO SUE AND BE SUED

[Sections 1030.118-1030.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1030.151. BUDGET

Sec. 1030.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1030.153. AMENDMENTS TO BUDGET

Sec. 1030.154. RESTRICTION ON EXPENDITURES

Sec. 1030.155. FISCAL YEAR

Sec. 1030.156. ANNUAL AUDIT

Sec. 1030.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS

Sec. 1030.158. FINANCIAL REPORT

Sec. 1030.159. DEPOSITORY

Sec. 1030.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1030.161-1030.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1030.201. GENERAL OBLIGATION BONDS

Sec. 1030.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1030.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1030.204. REVENUE BONDS

Sec. 1030.205. REFUNDING BONDS

Sec. 1030.206. MATURITY OF BONDS

Sec. 1030.207. EXECUTION OF BONDS

Sec. 1030.208. BONDS EXEMPT FROM TAXATION

[Sections 1030.209-1030.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1030.251. IMPOSITION OF AD VALOREM TAX

Sec. 1030.252. TAX RATE

Sec. 1030.253. TAX ASSESSOR-COLLECTOR

[Sections 1030.254-1030.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1030.301. DISSOLUTION; ELECTION

Sec. 1030.302. NOTICE OF ELECTION

Sec. 1030.303. BALLOT

Sec. 1030.304. ELECTION RESULTS

Sec. 1030.305. DISPOSITION OR TRANSFER OF DISTRICT

ASSETS; DECLARATION OF DISSOLUTION

CHAPTER 1030. FRIO HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1030.001.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 Frio Hospital District.

(Acts 71st Leg., R.S., Ch. 220, Sec. 1.01.)

Sec.1030.002.AUTHORITY FOR OPERATION. The district

operates and is financed as provided by Section 9, Article IX, Texas

Constitution, and by this chapter. (Acts 71st Leg., R.S., Ch. 220,

Sec. 1.02.)

Sec.1030.003.ESSENTIAL PUBLIC FUNCTION. The district is

a public entity performing an essential public function. (Acts

71st Leg., R.S., Ch. 220, Sec. 7.11 (part).)

Sec.1030.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Frio County, Texas,

except that a portion of the southern boundary follows the boundary

of the Frio River beginning at the intersection of the south county

line and the Frio River to the point at which the boundary

intersects the Leona River and follows the Leona River to the west

county line. (Acts 71st Leg., R.S., Ch. 220, Sec. 1.03.)

Sec. 1030.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The state may not become obligated for the support or

maintenance of the district. (Acts 71st Leg., R.S., Ch. 220, Sec.

10.01 (part).)

Sec.1030.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 71st Leg., R.S., Ch. 220, Sec. 10.01 (part).)

[Sections 1030.007-1030.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1030.051.BOARD ELECTION; TERM. (a) The district is

governed by a board of seven directors.

(b) Two directors are elected from each commissioners

precinct and one director is elected from the district at large.

The portion of Precinct 4 that is in the district is combined with

Precinct 1 to represent one precinct.

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) an election shall be held on the uniform election

date in May of each year to elect the appropriate number of

directors. (Acts 71st Leg., R.S., Ch. 220, Secs. 4.01(a), 4.03(a),

(d) (part).)

Sec.1030.052.NOTICE OF ELECTION. At least 35 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper with general circulation in the

district. (Acts 71st Leg., R.S., Ch. 220, Sec. 4.04.)

Sec.1030.053.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:

(1) be signed by at least 10 registered voters of the

district as determined by the most recent official list of

registered voters;

(2) be filed not later than the 31st day before the

date of the election; and

(3) specify the commissioners precinct the candidate

wants to represent or specify that the candidate wants to represent

the district at large. (Acts 71st Leg., R.S., Ch. 220, Sec. 4.05.)

Sec.1030.054.QUALIFICATIONS FOR OFFICE. (a) To be

eligible to be a candidate for or to serve as a director, a person

must be:

(1) a district resident; and

(2) a qualified voter.

(b) In addition to Subsection (a), a person who is elected

from a commissioners precinct or who is appointed to fill a vacancy

for a commissioners precinct must be a resident of that

commissioners precinct.

71st Leg., R.S., Ch. 220, Sec. 4.06.)

Sec.1030.055.BOND; RECORD OF BOND. (a) Before assuming

the duties of office, each director must execute a bond for $5,000

that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

director's duties.

(b) The board may pay for a director's bond with district

money.

permanent records. (Acts 71st Leg., R.S., Ch. 220, Sec. 4.07.)

Sec.1030.056.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 71st Leg., R.S., Ch. 220,

Sec. 4.08.)

Sec.1030.057.OFFICERS. (a) The board shall elect a

president and a vice president from among its members.

(b) The board shall appoint a secretary, who need not be a

director.

(d) The board shall fill a vacancy in a board office for the

unexpired term. (Acts 71st Leg., R.S., Ch. 220, Secs. 4.09, 4.10.)

Sec.1030.058.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 71st Leg., R.S., Ch.

220, Sec. 4.11.)

Sec.1030.059.VOTING REQUIREMENT. A concurrence of a

majority of the directors voting is necessary in any matter

relating to district business. (Acts 71st Leg., R.S., Ch. 220, Sec.

4.12.)

Sec.1030.060.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 is entitled to the compensation determined by the board.

the administrator must execute a bond in an amount determined by the

board of not less than $5,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

administrator's duties under this chapter.

(d) The board may pay for the bond with district money.

(Acts 71st Leg., R.S., Ch. 220, Secs. 4.13(a) (part), (b) (part),

Sec.1030.061.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 general affairs of the district. (Acts

71st Leg., R.S., Ch. 220, Sec. 4.16.)

Sec.1030.062.ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.

(a) The board may appoint qualified persons as:

(1) the assistant district administrator; and

(2) the attorney for the district.

(b) The assistant district administrator and the attorney

for the district serve at the will of the board and are entitled to

the compensation determined by the board. (Acts 71st Leg., R.S.,

Ch. 220, Secs. 4.13(a) (part), (b) (part), (c) (part).)

Sec. 1030.063. APPOINTMENT AND RECRUITMENT OF STAFF AND

EMPLOYEES. (a) The district may employ doctors, nurses,

technicians, allied health personnel, administrative personnel,

fiscal agents, accountants, architects, additional attorneys, and

other employees necessary to carry out the district's duties and

responsibilities under this chapter.

(b) 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 necessary.

authority to employ persons for the district.

(d) The board may spend money to recruit physicians and

other needed medical professionals. (Acts 71st Leg., R.S., Ch.

220, Secs. 4.14, 4.15, 5.02 (part), 5.05(c).)

Sec.1030.064.HEALTH EDUCATION. The board may provide

scholarships and student loans to educate county residents in

health care-related fields. (Acts 71st Leg., R.S., Ch. 220, Sec.

5.02 (part).)

Sec.1030.065.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 71st Leg., R.S., Ch.

220, Sec. 4.17.)

[Sections 1030.066-1030.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1030.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for:

(1) operating hospital facilities; and

(2) providing medical and hospital care for the

district's needy inhabitants. (Acts 71st Leg., R.S., Ch. 220, Sec.

5.02 (part).)

Sec. 1030.102. RESTRICTION ON GOVERNMENTAL ENTITY TAXATION

AND DEBT. Frio County or another governmental entity located

within the district may not impose a tax or issue bonds or other

obligations for hospital purposes or to provide medical care for

district residents. (Acts 71st Leg., R.S., Ch. 220, Sec. 5.01(b).)

Sec.1030.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 71st Leg., R.S., Ch.

220, Sec. 5.03.)

Sec.1030.104.RULES. The board may adopt rules governing:

(1) the operation of the hospital and hospital system;

and

(2) the duties, functions, and responsibilities of

district staff and employees. (Acts 71st Leg., R.S., Ch. 220, Sec.

5.04.)

Sec.1030.105.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method of making purchases and expenditures by

and for the district; and

(2) accounting and control procedures for the

district. (Acts 71st Leg., R.S., Ch. 220, Secs. 5.05(a), (b).)

Sec. 1030.106. 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; and

(2) mortgage or pledge the property as security for

payment of the purchase price.

district.

(d) The board may sell or otherwise dispose of property,

including facilities or equipment, for the district. (Acts 71st

Leg., R.S., Ch. 220, Sec. 5.06.)

Sec.1030.107.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in property located in district territory if the

interest is necessary for the district to exercise a right or

authority conferred 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 71st Leg., R.S., Ch. 220, Sec.

5.09.)

Sec.1030.108.COST OF RELOCATING OR ALTERING PROPERTY. In

exercising the power of eminent domain, if the board requires

relocating, raising, lowering, rerouting, changing the grade of, or

altering the construction of any railroad, highway, pipeline, or

electric transmission and electric distribution, telegraph, or

telephone line, conduit, pole, or facility, the district must bear

the actual cost of relocating, raising, lowering, rerouting,

changing the grade, or altering the construction to provide

comparable replacement, without enhancement of facilities, after

deducting the net salvage value derived from the old

facility. (Acts 71st Leg., R.S., Ch. 220, Sec. 5.10.)

Sec.1030.109.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust for any

purpose and under any direction, limitation, or other provision

prescribed in writing by the donor that is consistent with the

proper management of the district. (Acts 71st Leg., R.S., Ch. 220,

Sec. 5.14.)

Sec.1030.110.CONSTRUCTION CONTRACTS. (a) The board may

enter into 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 competitive

bidding as provided by Subchapter B, Chapter 271, Local Government

Code. (Acts 71st Leg., R.S., Ch. 220, Sec. 5.07(a).)

Sec.1030.111.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a hospital facility for the district. (Acts 71st Leg., R.S., Ch.

220, Sec. 5.08.)

Sec.1030.112.CONTRACTS FOR SERVICES. (a) 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 other health care

services needed to provide for the investigatory or welfare needs

of district inhabitants.

(b) The board may contract with any person to receive or

supply the services the board considers necessary for the effective

operation of the district. (Acts 71st Leg., R.S., Ch. 220, Sec.

5.13.)

Sec.1030.113.PROVISION OF CERTAIN HEALTH SERVICES. The

district may:

(1) operate or provide for the operation of a mobile

emergency medical service;

(2) operate or provide for home health services,

long-term care, skilled nursing care, intermediate nursing care, or

hospice care; and

(3) establish any other needed medical service

considered beneficial to the delivery of health care to district

residents. (Acts 71st Leg., R.S., Ch. 220, Sec. 5.02 (part).)

Sec.1030.114.MEDICAL CLINICS. The district may establish

and operate medical clinics for the benefit of the hospital. (Acts

71st Leg., R.S., Ch. 220, Sec. 5.02 (part).)

Sec.1030.115.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When an individual who resides in the district is admitted as a

patient to a district facility, the district administrator may have

an inquiry made into the financial circumstances of:

(1) the patient; and

(2) a relative of the patient who is legally

responsible for the patient's support.

(b) To the extent that the patient or a relative of the

patient who is legally responsible for the patient's support cannot

pay for care and treatment provided by the district, the district

shall supply the care and treatment without charging the patient or

the patient's relative.

responsible for the patient's support 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 the relative to

pay the district a specified amount each week. The amount must be

based on the individual's ability to pay.

(d) The district administrator may collect money owed to the

district from the patient's estate or from that of a relative who

was legally responsible for the patient's support in the manner

provided by law for the collection of expenses in the last illness

of a deceased person.

(e) If there is a dispute relating to an individual's

ability to pay or if the district administrator has any doubt

concerning an individual's ability to pay, the board shall:

(1) call witnesses;

(2) hear and resolve the question; and

(3) issue a final order.

(f) A final order of the board may be appealed to a district

court in Frio County. The substantial evidence rule applies to the

appeal. (Acts 71st Leg., R.S., Ch. 220, Secs. 5.11(b), (c), (d),

(e), (f).)

Sec.1030.116.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 and treatment of a sick or injured person of that county,

municipality, or public hospital, as provided by Chapter 61, Health

and Safety Code.

(b) The board shall require the sheriff of Frio County to

reimburse the district for the district's care and treatment of a

person who is confined in a jail facility of Frio County and is not a

district resident.

the state or federal government for that government to reimburse

the district for treatment of a sick or injured person. (Acts 71st

Leg., R.S., Ch. 220, Sec. 5.12.)

Sec.1030.117.AUTHORITY TO SUE AND BE SUED. The board may

sue and be sued on behalf of the district. (Acts 71st Leg., R.S.,

Ch. 220, Sec. 5.15.)

[Sections 1030.118-1030.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1030.151.BUDGET. (a) The district administrator

shall prepare a proposed annual budget for the district.

(b) The proposed budget must contain a complete financial

statement, including a statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash on hand in each district fund;

(3) the amount of money received by the district from

all sources during the previous year;

(4) the amount of money available to the district from

all sources during the ensuing year;

(5) the amount of the balances expected at the end of

the year in which the budget is being prepared;

(6) the estimated amount of revenue and balances

available to cover the proposed budget; and

(7) the estimated tax rate required. (Acts 71st Leg.,

R.S., Ch. 220, Sec. 6.04.)

Sec.1030.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) The board shall publish notice of the hearing in a

newspaper with general circulation in the district not later than

the 10th day before the date of the hearing.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the

taxpayers.

(e) The budget is effective only after adoption by the

board. (Acts 71st Leg., R.S., Ch. 220, Sec. 6.05.)

Sec.1030.153.AMENDMENTS TO BUDGET. After adoption, the

annual budget may be amended on the board's approval. (Acts 71st

Leg., R.S., Ch. 220, Sec. 6.06.)

Sec.1030.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 71st Leg., R.S., Ch. 220, Sec. 6.07.)

Sec.1030.155.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 of the district are

outstanding; or

(2) more than once in a 24-month period. (Acts 71st

Leg., R.S., Ch. 220, Sec. 6.01.)

Sec.1030.156.ANNUAL AUDIT. (a) The board annually shall

have an audit made of the district's financial condition.

(b) The board shall retain the services of a qualified

independent certified public accounting firm to prepare the annual

audit of the district's financial condition.

not later than the 90th day following the close of the district's

fiscal year.

(d) The district is not subject to audit by the Frio County

auditor. (Acts 71st Leg., R.S., Ch. 220, Sec. 6.02.)

Sec. 1030.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS. The annual audit and other district records shall be open

to inspection during regular business hours at the district's

principal office. (Acts 71st Leg., R.S., Ch. 220, Sec. 6.03.)

Sec.1030.158.FINANCIAL REPORT. As soon as practicable

after the close of the fiscal year, the district administrator

shall prepare for the board:

(1) a sworn statement of the amount of district money;

and

(2) an account of the disbursements of that money.

(Acts 71st Leg., R.S., Ch. 220, Sec. 6.08.)

Sec.1030.159.DEPOSITORY. (a) The board shall select at

least one bank to serve as a depository for district money.

(b) District money, other than money invested as provided by

Section 1030.160(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 must remain on

deposit. This subsection does not limit the power of the board to

place a part of district money on time deposit or to purchase

certificates of deposit.

amount that exceeds the maximum amount secured by the Federal

Deposit Insurance Corporation unless the bank first executes a bond

or other security in an amount sufficient to secure from loss the

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation. (Acts 71st Leg., R.S., Ch. 220,

Sec. 6.10.)

Sec.1030.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as provided by Sections 1030.110, 1030.201, 1030.204, and

1030.205, the district may not incur a debt payable from district

revenue other than the revenue on hand or to be on hand in the

current and immediately following district fiscal years.

(b) The board may invest operating, depreciation, or

building reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 71st Leg., R.S., Ch. 220, Sec. 6.09.)

[Sections 1030.161-1030.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1030.201.GENERAL OBLIGATION BONDS. If authorized by

an election, the board may issue and sell general obligation bonds

in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements;

(2) equip buildings or improvements for hospital

purposes; or

(3) acquire and operate a mobile emergency medical

service. (Acts 71st Leg., R.S., Ch. 220, Sec. 7.01.)

Sec.1030.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1030.201, 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

limit approved by the voters at the election authorizing the

imposition of the tax. (Acts 71st Leg., R.S., Ch. 220, Sec. 7.02.)

Sec.1030.203.GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the district voters voting at an

election held for that purpose.

(b) The board may order a bond election.

(1) the nature and date of the election;

(2) the hours during which the polls will be open;

(3) the location of the polling places;

(4) the amount of the bonds to be authorized; and

(5) the maximum maturity of the bonds.

(d) Notice of a bond election shall be given as provided by

Section 1251.003, Government Code.

(e) The board shall declare the results of the election.

(Acts 71st Leg., R.S., Ch. 220, Sec. 7.03.)

Sec.1030.204.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, equip, or

renovate buildings or improvements for hospital purposes;

(2) acquire sites to be used for hospital purposes; or

(3) acquire and operate a mobile emergency medical

service to assist the district in carrying out its hospital

purposes.

(b) The bonds must be payable from and secured by a pledge of

all or part of the revenue derived from the operation of the

district's hospital system.

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, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority.

(Acts 71st Leg., R.S., Ch. 220, Sec. 7.04.)

Sec.1030.205.REFUNDING BONDS. (a) The board may issue

refunding bonds to refund outstanding indebtedness issued or

assumed by the district.

(b) Refunding bonds may be:

(1) sold, with the proceeds of the refunding bonds

applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 71st

Leg., R.S., Ch. 220, Secs. 7.05(a), (c) (part).)

Sec.1030.206.MATURITY OF BONDS. District bonds must

mature not later than 50 years after the date of issuance. (Acts

71st Leg., R.S., Ch. 220, Sec. 7.06 (part).)

Sec.1030.207.EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 71st Leg.,

R.S., Ch. 220, Sec. 7.07.)

Sec.1030.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) any transaction relating to the bonds; and

(3) profits made in the sale of the bonds. (Acts 71st

Leg., R.S., Ch. 220, Sec. 7.11 (part).)

[Sections 1030.209-1030.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1030.251.IMPOSITION OF AD VALOREM TAX. (a) The board

may impose a tax on all property in the district subject to district

taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

or interest on revenue bonds issued under this chapter. (Acts 71st

Leg., R.S., Ch. 220, Secs. 8.01(a) (part), (c), (d), 8.02(b).)

Sec.1030.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed the limit approved by the voters at the

election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 30 cents on

each $100 valuation of all taxable property in the district.

income of the district from sources other than taxation. (Acts 71st

Leg., R.S., Ch. 220, Secs. 8.01(a) (part), (b), 8.03 (part).)

Sec.1030.253.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 71st Leg., R.S., Ch. 220, Sec.

8.04(b).)

[Sections 1030.254-1030.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec.1030.301.DISSOLUTION; ELECTION. (a) The district

may be dissolved on approval of a majority of the district voters

voting in an election held for that purpose.

(b) A majority of the board may order that a dissolution

election be held.

(1) the name 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.

(d) Section 41.001(a), Election Code, does not apply to an

election ordered under this section. (Acts 71st Leg., R.S., Ch.

220, Secs. 9.01, 9.02, 9.03, 9.05(b).)

Sec.1030.302.NOTICE OF ELECTION. (a) The board shall

give notice of an election under this subchapter by publishing once

a week for two consecutive weeks a substantial copy of the election

order in a newspaper with general circulation in the district.

(b) The first publication of the notice must appear at least

35 days before the date set for the election. (Acts 71st Leg.,

R.S., Ch. 220, Sec. 9.04.)

Sec.1030.303.BALLOT. The ballot for an election under

this subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the Frio Hospital District."

(Acts 71st Leg., R.S., Ch. 220, Sec. 9.06.)

Sec.1030.304.ELECTION RESULTS. (a) If the board finds

the election results favor the proposition to dissolve the

district, the board shall issue an order disposing of or

transferring the district's assets.

(b) If the board finds 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

election in which voters disapproved the proposition. (Acts 71st

Leg., R.S., Ch. 220, Secs. 9.07(b) (part), (c).)

Sec. 1030.305. DISPOSITION OR TRANSFER OF DISTRICT ASSETS;

DECLARATION OF DISSOLUTION. (a) A board order issued under Section

1030.304 that disposes of district assets must satisfy the

district's debts and bond obligations in a manner that protects the

interests of citizens in the district, including the citizens'

collective property rights in the district's assets and property.

(b) In connection with an election in favor of dissolution,

the board may not dispose of or transfer the district's assets

except for due compensation unless:

(1) the assets are transferred to another governmental

agency, such as a county, embracing the district; and

(2) the transferred assets are to be used for the

benefit of citizens formerly in the district.

obligation to be repaid in satisfaction.

(d) On completion of the requirements of this section, the

board shall declare the district dissolved. (Acts 71st Leg., R.S.,

Ch. 220, Sec. 9.07(b) (part).)

CHAPTER 1031. GARZA COUNTY HEALTH CARE DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1031.001. DEFINITIONS

Sec. 1031.002. AUTHORITY FOR OPERATION

Sec. 1031.003. POLITICAL SUBDIVISION

Sec. 1031.004. DISTRICT TERRITORY

Sec. 1031.005. CORRECTION OF INVALID PROCEDURES

Sec. 1031.006. PUBLIC PURPOSE; TAX EXEMPTION

[Sections 1031.007-1031.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1031.051. BOARD ELECTION; TERM

Sec. 1031.052. NOTICE OF ELECTION

Sec. 1031.053. QUALIFICATIONS FOR OFFICE

Sec. 1031.054. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE

Sec. 1031.055. BOARD VACANCY

Sec. 1031.056. OFFICERS

Sec. 1031.057. COMPENSATION; EXPENSES

Sec. 1031.058. VOTING REQUIREMENT

Sec. 1031.059. MEETINGS

Sec. 1031.060. DISTRICT ADMINISTRATOR

Sec. 1031.061. EMPLOYMENT AND RECRUITMENT OF STAFF AND

EMPLOYEES

Sec. 1031.062. PERSONNEL CONTRACTS

Sec. 1031.063. RETIREMENT BENEFITS

Sec. 1031.064. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

Sec. 1031.065. SEAL

[Sections 1031.066-1031.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1031.101. DISTRICT RESPONSIBILITY

Sec. 1031.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION

Sec. 1031.103. MANAGEMENT AND CONTROL

Sec. 1031.104. RULES

Sec. 1031.105. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1031.106. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1031.107. COMPETITIVE BIDDING

Sec. 1031.108. EMERGENCY MEDICAL SERVICES

Sec. 1031.109. GIFTS AND ENDOWMENTS

Sec. 1031.110. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1031.111. NONINDIGENT RESIDENTS

Sec. 1031.112. AUTHORITY TO SUE AND BE SUED

[Sections 1031.113-1031.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1031.151. BUDGET

Sec. 1031.152. PROPOSED BUDGET: NOTICE AND HEARING

Sec. 1031.153. FISCAL YEAR

Sec. 1031.154. ANNUAL AUDIT

Sec. 1031.155. DEPOSITORY OR TREASURER

Sec. 1031.156. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1031.157-1031.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1031.201. GENERAL OBLIGATION BONDS

Sec. 1031.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1031.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1031.204. REVENUE BONDS

Sec. 1031.205. REFUNDING BONDS

Sec. 1031.206. MATURITY OF BONDS

Sec. 1031.207. EXECUTION OF BONDS

[Sections 1031.208-1031.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1031.251. IMPOSITION OF AD VALOREM TAX

Sec. 1031.252. TAX RATE

Sec. 1031.253. ELECTION TO INCREASE MAXIMUM TAX RATE

Sec. 1031.254. TAX ASSESSOR-COLLECTOR

[Sections 1031.255-1031.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1031.301. DISSOLUTION; ELECTION

Sec. 1031.302. NOTICE OF ELECTION

Sec. 1031.303. BALLOT

Sec. 1031.304. ELECTION RESULTS

Sec. 1031.305. TRANSFER, SALE, OR ADMINISTRATION OF

ASSETS

Sec. 1031.306. SALE OR TRANSFER OF ASSETS AND

LIABILITIES

Sec. 1031.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES

Sec. 1031.308. REPORT; DISSOLUTION ORDER

CHAPTER 1031. GARZA COUNTY HEALTH CARE DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1031.001.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 Garza County Health Care

District. (New.)

Sec.1031.002.AUTHORITY FOR OPERATION. The district

operates in accordance with and has the powers and responsibilities

provided by Section 9, Article IX, Texas Constitution. (Acts 60th

Leg., R.S., Ch. 502, Sec. 1 (part).)

Sec.1031.003.POLITICAL SUBDIVISION. The district is a

political subdivision of this state. (Acts 60th Leg., R.S., Ch.

502, Sec. 16 (part).)

Sec.1031.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Garza County.

(Acts 60th Leg., R.S., Ch. 502, Sec. 1 (part).)

Sec.1031.005.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 60th Leg., R.S., Ch. 502, Sec. 17 (part).)

Sec.1031.006.PUBLIC PURPOSE; TAX EXEMPTION. All property

owned by the district:

(1) shall be held for public purposes; and

(2) is exempt from taxation of every character. (Acts

60th Leg., R.S., Ch. 502, Sec. 16 (part).)

[Sections 1031.007-1031.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1031.051.BOARD ELECTION; TERM. (a) The board

consists of five directors elected from the district at large.

(b) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) an election shall be held on the uniform election

date in May of each year to elect the appropriate number of

directors. (Acts 60th Leg., R.S., Ch. 502, Secs. 3(a) (part), (d)

(part).)

Sec.1031.052.NOTICE OF ELECTION. At least 10 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper of general circulation in Garza

County. (Acts 60th Leg., R.S., Ch. 502, Sec. 3(d) (part).)

Sec.1031.053.QUALIFICATIONS FOR OFFICE. To be eligible

to serve as a director, a person must:

(1) be a district resident; and

(2) have resided in the district for at least six

months immediately preceding the date on which the person:

(A) files for election; or

(B) is appointed or elected as provided by

Section 1031.055, if filling a vacancy in the office of director.

(Acts 60th Leg., R.S., Ch. 502, Sec. 3(a) (part).)

Sec. 1031.054. BOND; RECORD OF BOND AND OATH OR AFFIRMATION

OF OFFICE. (a) Each director may be required to 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) The board may pay for a director's bond with district

money.

affirmation of office shall be deposited with the district's

depository bank for safekeeping. (Acts 60th Leg., R.S., Ch. 502,

Sec. 3(a) (part).)

Sec.1031.055.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, a district court, on

application of a district voter or taxpayer, may order the

directors to hold the election. (Acts 60th Leg., R.S., Ch. 502,

Sec. 3(c) (part).)

Sec.1031.056.OFFICERS. The board shall:

(1) elect a president from among its members; and

(2) appoint a secretary from among its members. (Acts

60th Leg., R.S., Ch. 502, Sec. 3(c) (part).)

Sec.1031.057.COMPENSATION; EXPENSES. A director 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 60th Leg., R.S., Ch. 502, Sec. 4

(part).)

Sec.1031.058.VOTING REQUIREMENT. A concurrence of three

directors is sufficient in any matter relating to district

business. (Acts 60th Leg., R.S., Ch. 502, Sec. 3(c) (part).)

Sec.1031.059.MEETINGS. (a) A board meeting may be called

by the president or any three 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.

from establishing a regular time and place for meetings for which

special notice is not required. (Acts 60th Leg., R.S., Ch. 502,

Sec. 3(c) (part).)

Sec.1031.060.DISTRICT ADMINISTRATOR. (a) The board

shall appoint a district administrator.

(b) The district administrator may not receive an

employment contract for a specified term and may be terminated at

any time by the board.

good and sufficient bond for $10,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

administrator's duties.

(d) The district administrator's bond shall be deposited

with the district's depository bank for safekeeping.

(e) The board may pay for the bond with district money.

(Acts 60th Leg., R.S., Ch. 502, Sec. 3(b).)

Sec. 1031.061. EMPLOYMENT AND RECRUITMENT OF STAFF AND

EMPLOYEES. (a) The board may employ a general manager and other

necessary professional and clerical personnel.

(b) 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

60th Leg., R.S., Ch. 502, Secs. 8(a) (part), (i).)

Sec.1031.062.PERSONNEL CONTRACTS. (a) The board may

contract to provide administrative and other personnel for the

operation of the health care facilities.

(b) The term of the contract may not exceed five years.

(Acts 60th Leg., R.S., Ch. 502, Sec. 8(e).)

Sec.1031.063.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 60th Leg., R.S., Ch.

502, Sec. 8(h).)

Sec.1031.064.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

Except as provided by Sections 1031.054 and 1031.060, 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. 502, Sec.

8(b).)

Sec.1031.065.SEAL. The board may adopt a seal for the

district. (Acts 60th Leg., R.S., Ch. 502, Sec. 8(a) (part).)

[Sections 1031.066-1031.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1031.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for providing medical, hospital, and health

care for the district's needy and indigent residents. (Acts 60th

Leg., R.S., Ch. 502, Secs. 2 (part), 12 (part).)

Sec. 1031.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION. Garza County or a municipality in Garza County may not

impose a tax for health care purposes. (Acts 60th Leg., R.S., Ch.

502, Sec. 12 (part).)

Sec.1031.103.MANAGEMENT AND CONTROL. The management and

control of the district is vested in the board. (Acts 60th Leg.,

R.S., Ch. 502, Sec. 4 (part).)

Sec.1031.104.RULES. (a) The board may adopt rules

governing the operation of the district, including district

facilities.

(b) On approval by the board, the rules may be published in

booklet form at district expense and made available to any taxpayer

on request. (Acts 60th Leg., R.S., Ch. 502, Sec. 8(c).)

Sec.1031.105.PURCHASING AND ACCOUNTING PROCEDURES. (a)

The board may prescribe the method and manner of making purchases

and expenditures by and for the district.

(b) The board shall prescribe:

(1) all accounting and control procedures; and

(2) the method of purchasing necessary supplies,

materials, and equipment. (Acts 60th Leg., R.S., Ch. 502, Sec. 8(a)

(part).)

Sec. 1031.106. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board may:

(1) purchase or lease property, including facilities

or equipment, for the district to use in the health care system; and

(2) mortgage or pledge the property as security for

the payment of the purchase price.

(b) The board may lease district health care facilities to

individuals, corporations, or other legal entities for a term not

to exceed 20 years.

district's property, including facilities or equipment. (Acts 60th

Leg., R.S., Ch. 502, Secs. 8(d), (f), (g).)

Sec.1031.107.COMPETITIVE BIDDING. The district may not

enter into a contract that requires the district to spend at least

$15,000 and creates or imposes any type of obligation or liability

on the district, unless the district first submits the contract to

competitive bids. (Acts 60th Leg., R.S., Ch. 502, Sec. 6(g).)

Sec.1031.108.EMERGENCY MEDICAL SERVICES. The board may

spend district money to support emergency medical services in Garza

County. (Acts 60th Leg., R.S., Ch. 502, Sec. 8(k).)

Sec.1031.109.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 60th Leg., R.S., Ch. 502,

Sec. 14.)

Sec.1031.110.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient who claims to be indigent is admitted to a district

facility, the board shall have an inquiry made into the

circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for

the patient's support.

(b) If an agent designated by the district to handle the

inquiry determines that the patient or those relatives cannot pay

all or part of the costs of the care and treatment in the health care

facility, the amount of the costs that cannot be paid becomes a

charge against the district.

are liable to pay for all or part of the costs of the patient's care

and treatment, the patient or those relatives shall be ordered to

pay to the district's depository or treasurer 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 may collect the amount from the patient's

estate, or from any relative who is legally liable for the patient's

support, in the manner provided by law for the collection of

expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the designated district agent, the board shall hold a

hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue an appropriate order.

(f) The order may be appealed to the district court. (Acts

60th Leg., R.S., Ch. 502, Sec. 13.)

Sec.1031.111.NONINDIGENT RESIDENTS. The board may

provide access to medical care to a nonindigent resident of Garza

County if the nonindigent resident is charged the reasonable and

customary cost of services. (Acts 60th Leg., R.S., Ch. 502, Sec.

8(l).)

Sec.1031.112.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. 502,

Sec. 16 (part).)

[Sections 1031.113-1031.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1031.151.BUDGET. The board annually shall require a

budget to be 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. 502, Sec. 9(b) (part).)

Sec.1031.152.PROPOSED BUDGET: NOTICE AND HEARING. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) Notice of the hearing must be published in a newspaper

of general circulation in Garza County in accordance with Chapter

551, Government Code.

(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. 502, Sec. 9(b) (part).)

Sec.1031.153.FISCAL YEAR. The district operates on a

fiscal year that begins on October 1 and ends on September 30.

(Acts 60th Leg., R.S., Ch. 502, Sec. 9(a) (part).)

Sec.1031.154.ANNUAL AUDIT. The board annually shall have

an independent audit made of the district's books and records for

the fiscal year. (Acts 60th Leg., R.S., Ch. 502, Sec. 9(a) (part).)

Sec.1031.155.DEPOSITORY OR TREASURER. (a) The board by

resolution shall designate a bank or banks as the district's

depository or treasurer. A designated bank serves for two years and

until a successor is designated.

(b) All district money shall be secured in the manner

provided for securing county funds. (Acts 60th Leg., R.S., Ch. 502,

Sec. 10.)

Sec.1031.156.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.

(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) district bonds that have been authorized but not

sold.

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. 502, Sec. 16A.)

[Sections 1031.157-1031.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1031.201.GENERAL OBLIGATION BONDS. The board may

issue general obligation bonds in the name and on the faith and

credit of the district to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements;

(2) equip buildings or improvements for health care

purposes; or

(3) acquire and operate a mobile emergency medical or

air ambulance service. (Acts 60th Leg., R.S., Ch. 502, Sec. 6(a).)

Sec.1031.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1031.201, 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

maintenance and operation tax the district imposes may not exceed

the tax rate approved by the voters at the election authorizing the

imposition of the tax. (Acts 60th Leg., R.S., Ch. 502, Sec. 6(b)

(part).)

Sec.1031.203.GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the district voters voting at an

election held for that purpose.

(b) The board may order a bond election. The election shall

be conducted as provided by Chapter 1251, Government Code.

(Acts 60th Leg., R.S., Ch. 502, Sec. 6(b) (part).)

Sec.1031.204.REVENUE BONDS. (a) The district may issue

revenue bonds for any health care purpose, including a purpose

described by Section 1031.201, only if the bonds are authorized by a

majority of the district voters voting at an election held for that

purpose.

(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 health care system.

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, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority.

(Acts 60th Leg., R.S., Ch. 502, Sec. 6(c).)

Sec.1031.205.REFUNDING BONDS. (a) The board may, without

an election, issue refunding bonds in the manner provided by this

subchapter to refund outstanding bonds 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 bonds to be refunded; or

(2) exchanged wholly or partly for not less than a

similar principal amount of the outstanding bonds and the unpaid

matured interest on the bonds. (Acts 60th Leg., R.S., Ch. 502, Sec.

6(f) (part).)

Sec.1031.206.MATURITY OF BONDS. District bonds must

mature not later than the 40th anniversary of the date of issuance.

(Acts 60th Leg., R.S., Ch. 502, Sec. 6(e) (part).)

Sec.1031.207.EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds. (Acts

60th Leg., R.S., Ch. 502, Sec. 6(d) (part).)

[Sections 1031.208-1031.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1031.251.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 tax may be used to:

(1) pay the interest on and create a sinking fund for

warrants issued by the district for health care purposes;

(2) pay for the maintenance and operation expenses of

the district and health care system;

(3) pay for indebtedness issued or assumed by the

district;

(4) make improvements and additions to the health care

system; and

(5) acquire necessary sites for the health care system

by purchase, lease, or condemnation.

or interest on revenue bonds issued under this chapter. (Acts 60th

Leg., R.S., Ch. 502, Secs. 5(a), (b) (part), (c), 9(b) (part).)

Sec.1031.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed the limit approved by the voters at the

election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on

each $100 valuation of all taxable property in the district. (Acts

60th Leg., R.S., Ch. 502, Sec. 5(b) (part).)

Sec.1031.253.ELECTION TO INCREASE MAXIMUM TAX RATE. The

board may call an election to increase the maximum tax rate of the

district to a specified rate allowed by law on each $100 valuation

of the taxable property in the district if the board determines that

an increase is necessary to carry out the purposes for which the

initial tax rate was authorized. (Acts 60th Leg., R.S., Ch. 502,

Sec. 7 (part).)

Sec.1031.254.TAX ASSESSOR-COLLECTOR. (a) 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.

(b) The tax assessor-collector shall assess and collect

taxes imposed by the district. (Acts 60th Leg., R.S., Ch. 502, Secs.

5(b) (part), 9(b) (part).)

[Sections 1031.255-1031.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec.1031.301.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.

a petition requesting an election that is signed by at least 10

percent of the registered voters in the district.

(d) The order calling the election must state:

(1) the nature of the election, including the

proposition to appear on the ballot;

(2) the date of the election;

(3) the hours during which the polls will be open; and

(4) the location of the polling places.

(e) Section 41.001(a), Election Code, does not apply to an

election ordered under this section. (Acts 60th Leg., R.S., Ch.

502, Secs. 16B(a), (b), (c) (part).)

Sec.1031.302.NOTICE OF ELECTION. (a) The board shall

give notice of an election under this subchapter by publishing once

a week for two consecutive weeks a substantial copy of the election

order in a newspaper with general circulation in the district.

(b) The first publication of the notice must appear not

later than the 35th day before the date set for the election. (Acts

60th Leg., R.S., Ch. 502, Sec. 16B(d) (part).)

Sec.1031.303.BALLOT. The ballot for an election under

this subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the Garza County Health Care

District." (Acts 60th Leg., R.S., Ch. 502, Sec. 16B(d) (part).)

Sec.1031.304.ELECTION RESULTS. (a) If a majority of the

votes in an election under this subchapter favor dissolution, the

board shall find that the district is dissolved.

(b) If a majority of the votes in the election do not favor

dissolution, the board shall continue to administer the district

and another election on the question of dissolution may not be held

before the first anniversary of the date of the most recent election

to dissolve the district. (Acts 60th Leg., R.S., Ch. 502, Sec.

16B(e).)

Sec.1031.305.TRANSFER, SALE, OR ADMINISTRATION OF ASSETS.

(a) If a majority of the votes in the election held under this

subchapter favor dissolution, the board shall:

(1) transfer the land, buildings, improvements,

equipment, and other assets that belong to the district to Garza

County or another governmental entity in Garza County;

(2) sell the assets and liabilities to another person;

(3) 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.

administers the property, assets, and debts of the district under

Subsection (a)(3), the district is dissolved when all money has

been disposed of and all district debts have been paid or settled.

(Acts 60th Leg., R.S., Ch. 502, Secs. 16B(f), (g), (m) (part).)

Sec.1031.306.SALE OR TRANSFER OF ASSETS AND LIABILITIES.

(a) The dissolution of the district and the sale or transfer of the

district's assets and liabilities to another person may not

contravene a trust indenture or bond resolution relating to the

district's outstanding bonds. The dissolution and sale or transfer

does not diminish or impair the rights of a holder of an outstanding

bond, warrant, or other obligation of the district.

(b) 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 the residents of

the district, including the residents' collective property rights

in the district's assets.

district's assets except for due compensation unless:

(1) the transfer is made to another governmental

entity that serves the district; and

(2) the transferred assets are to be used for the

benefit of the district's residents.

(d) A grant from federal funds is an obligation to be repaid

in satisfaction. (Acts 60th Leg., R.S., Ch. 502, Secs. 16B(m)

(part), (n).)

Sec. 1031.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES. (a) After the board finds that the district is dissolved,

the board shall:

(1) determine the debt owed by the district; and

(2) impose on the property included in the district's

tax rolls a tax that is in proportion of the debt to the property

value.

(b) On the payment of all outstanding debts and obligations

of the district, the board shall order the secretary to return to

each district taxpayer the taxpayer's pro rata share of all unused

tax money.

surplus tax money be credited to the taxpayer's county taxes. If a

taxpayer requests the credit, the board shall direct the secretary

to transmit the money to the county tax assessor-collector. (Acts

60th Leg., R.S., Ch. 502, Secs. 16B(h), (i), (j).)

Sec.1031.308.REPORT; DISSOLUTION ORDER. (a) After the

district has paid all district debts and has disposed of all

district money and other assets as prescribed by this subchapter,

the board shall file a written report with the Commissioners Court

of Garza County summarizing the board's actions in dissolving the

district.

(b) Not later than the 10th day after the date the

Commissioners Court of Garza County receives the report and

determines that the requirements of this subchapter have been

fulfilled, the commissioners court shall enter an order dissolving

the district and releasing the board from any further duty or

obligation. (Acts 60th Leg., R.S., Ch. 502, Secs. 16B(k), (l).)

CHAPTER 1032. GONZALES HEALTHCARE SYSTEMS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1032.001. DEFINITIONS

Sec. 1032.002. AUTHORITY FOR OPERATION

Sec. 1032.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1032.004. DISTRICT TERRITORY

Sec. 1032.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1032.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1032.007-1032.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1032.051. BOARD ELECTION; TERM

Sec. 1032.052. NOTICE OF ELECTION

Sec. 1032.053. BALLOT PETITION

Sec. 1032.054. QUALIFICATIONS FOR OFFICE

Sec. 1032.055. BOARD VACANCY

Sec. 1032.056. OFFICERS

Sec. 1032.057. COMPENSATION; EXPENSES

Sec. 1032.058. VOTING REQUIREMENT

Sec. 1032.059. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR

Sec. 1032.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1032.061. EMPLOYEES; APPOINTMENT OF STAFF

[Sections 1032.062-1032.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1032.101. DISTRICT RESPONSIBILITY

Sec. 1032.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1032.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1032.104. HOSPITAL SYSTEM

Sec. 1032.105. RULES

Sec. 1032.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1032.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1032.108. EMINENT DOMAIN

Sec. 1032.109. GIFTS AND ENDOWMENTS

Sec. 1032.110. CONSTRUCTION CONTRACTS

Sec. 1032.111. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1032.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT

Sec. 1032.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1032.114. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1032.115. AUTHORITY TO SUE AND BE SUED

[Sections 1032.116-1032.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1032.151. BUDGET

Sec. 1032.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1032.153. AMENDMENTS TO BUDGET

Sec. 1032.154. RESTRICTION ON EXPENDITURES

Sec. 1032.155. FISCAL YEAR

Sec. 1032.156. ANNUAL AUDIT

Sec. 1032.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS

Sec. 1032.158. FINANCIAL REPORT

Sec. 1032.159. DEPOSITORY

Sec. 1032.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1032.161-1032.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1032.201. GENERAL OBLIGATION BONDS

Sec. 1032.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1032.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1032.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1032.205. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1032.206. REVENUE BONDS

Sec. 1032.207. REFUNDING BONDS

Sec. 1032.208. BONDS EXEMPT FROM TAXATION

[Sections 1032.209-1032.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1032.251. IMPOSITION OF AD VALOREM TAX

Sec. 1032.252. TAX RATE

Sec. 1032.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR

Sec. 1032.254. ASSESSMENT AND COLLECTION BY DISTRICT

TAX ASSESSOR-COLLECTOR

CHAPTER 1032. GONZALES HEALTHCARE SYSTEMS

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1032.001.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 Gonzales Healthcare Systems.

(New.)

Sec.1032.002.AUTHORITY FOR OPERATION. The district

operates and is administered and financed in accordance with

Section 9, Article IX, Texas Constitution, and has the rights,

powers, and duties provided by this chapter. (Acts 64th Leg., R.S.,

Ch. 191, Sec. 1 (part).)

Sec.1032.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 64th Leg., R.S., Ch. 191, Sec. 21 (part).)

Sec.1032.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Gonzales County

except the district does not include the territory of the following

districts that lie within the county as those districts existed on

January 1, 1975:

(1) Nixon Hospital District of Gonzales and Wilson

Counties;

(2) DeWitt Medical District;

(3) Yoakum Hospital District; and

(4) Shiner Independent School District of Shiner and

Lavaca Counties. (Acts 64th Leg., R.S., Ch. 191, Sec. 1 (part).)

Sec. 1032.005. 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 64th

Leg., R.S., Ch. 191, Sec. 20 (part).)

Sec.1032.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 64th Leg., R.S., Ch. 191, Sec. 20 (part).)

[Sections 1032.007-1032.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1032.051.BOARD ELECTION; TERM. (a) The board

consists of nine directors elected as follows:

(1) four directors, each of whom is elected from the

county commissioners precinct represented by the director; and

(2) five directors 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. (Acts 64th Leg., R.S., Ch. 191, Sec. 4(c) (part).)

Sec.1032.052.NOTICE OF ELECTION. At least 45 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper or newspapers that

individually or collectively have general circulation in the

district. (Acts 64th Leg., R.S., Ch. 191, Sec. 4(c) (part).)

Sec.1032.053.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 voters; and

(2) filed at least 45 days before the date of the

election. (Acts 64th Leg., R.S., Ch. 191, Sec. 4(c) (part).)

Sec.1032.054.QUALIFICATIONS FOR OFFICE. (a) A person may

not be elected or appointed as a director unless the person is:

(1) a district resident; and

(2) a qualified voter.

(b) A person is not eligible to serve as a director if the

person is:

(1) the district administrator; or

(2) a district employee. (Acts 64th Leg., R.S., Ch.

191, Sec. 4(d).)

Sec.1032.055.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 64th Leg., R.S., Ch. 191,

Sec. 4(c) (part).)

Sec.1032.056.OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its

members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

unexpired term. (Acts 64th Leg., R.S., Ch. 191, Sec. 4(e) (part).)

Sec.1032.057.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 64th Leg., R.S., Ch.

191, Sec. 4(e) (part).)

Sec.1032.058.VOTING REQUIREMENT. A concurrence of five

directors is sufficient in any matter relating to district

business. (Acts 64th Leg., R.S., Ch. 191, Sec. 4(e) (part).)

Sec. 1032.059. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR. (a) The board shall appoint a qualified person as

district administrator.

(b) The board may appoint an assistant administrator.

administrator serve at the will of the board and are entitled to 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 other conditions the board may require.

(Acts 64th Leg., R.S., Ch. 191, Sec. 5 (part).)

Sec.1032.060.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 64th

Leg., R.S., Ch. 191, Sec. 5 (part).)

Sec.1032.061.EMPLOYEES; APPOINTMENT OF STAFF. (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 necessary.

(b) The district may employ fiscal agents, accountants,

architects, and attorneys the board considers proper.

authority to hire district employees, including technicians and

nurses. (Acts 64th Leg., R.S., Ch. 191, Secs. 5 (part), 16.)

[Sections 1032.062-1032.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1032.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for operating all hospital facilities for

providing medical and hospital care for the district's needy

inhabitants. (Acts 64th Leg., R.S., Ch. 191, Sec. 19 (part).)

Sec. 1032.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT. A political subdivision located wholly or

partly within the district may not impose a tax or issue bonds or

other obligations for hospital purposes or to provide medical care

for district residents. (Acts 64th Leg., R.S., Ch. 191, Sec. 19

(part).)

Sec.1032.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 64th Leg., R.S., Ch.

191, Sec. 5 (part).)

Sec.1032.104.HOSPITAL SYSTEM. (a) The district shall

provide for the establishment of a hospital system by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the buildings and equipment for

hospital purposes.

(b) The hospital system may include any facilities the board

considers necessary for hospital care. (Acts 64th Leg., R.S., Ch.

191, Secs. 2 (part), 10(a) (part).)

Sec.1032.105.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. 191,

Sec. 5 (part).)

Sec.1032.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of making purchases and

expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 64th

Leg., R.S., Ch. 191, Sec. 10(b) (part).)

Sec. 1032.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location of buildings required to maintain an adequate hospital

system.

(b) The board may lease all or part of the district's

buildings and other facilities on terms considered to be in the best

interest of the district's inhabitants.

district's hospital system and mortgage or pledge the property as

security for the payment of the purchase price.

(d) The district may sell or otherwise dispose of any

property, including equipment, on terms the board finds are in the

best interest of the district's inhabitants. (Acts 64th Leg.,

R.S., Ch. 191, Secs. 10(a) (part), (b) (part).)

Sec.1032.108.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in any type of property located in district

territory if the interest is necessary or convenient for the

district to exercise a power, right, or privilege conferred by this

chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 64th Leg., R.S., Ch. 191, Sec.

14.)

Sec.1032.109.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 64th Leg., R.S., Ch. 191,

Sec. 18.)

Sec.1032.110.CONSTRUCTION CONTRACTS. A construction

contract that involves the expenditure of more than $10,000 may be

made only after advertising in the manner provided by Chapter 252

and Subchapter C, Chapter 262, Local Government Code. (Acts 64th

Leg., R.S., Ch. 191, Sec. 10(b) (part).)

Sec.1032.111.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a district facility. (Acts 64th Leg., R.S., Ch. 191, Sec. 10(a)

(part).)

Sec. 1032.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

CARE AND TREATMENT. (a) The board may contract with a 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.

(b) The board may contract with this state or a federal

agency for the treatment of a sick or injured person. (Acts 64th

Leg., R.S., Ch. 191, Sec. 5 (part).)

Sec. 1032.113. 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 for the medical,

hospital, or welfare needs of district inhabitants. (Acts 64th

Leg., R.S., Ch. 191, Sec. 5 (part).)

Sec.1032.114.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 who are 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 costs of

the care and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district administrator may collect the amount from

the patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the 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. 191, Sec. 17.)

Sec.1032.115.AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued. (Acts 64th Leg., R.S., Ch.

191, Sec. 5 (part).)

[Sections 1032.116-1032.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1032.151.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 in 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; and

(7) the estimated tax rate required. (Acts 64th Leg.,

R.S., Ch. 191, Sec. 6 (part).)

Sec.1032.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) Notice of the hearing must be published one time at

least 10 days before the date of the hearing.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the taxpayers

and that the law warrants. (Acts 64th Leg., R.S., Ch. 191, Sec. 6

(part).)

Sec.1032.153.AMENDMENTS TO BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 64th Leg., R.S., Ch. 191, Sec. 6 (part).)

Sec.1032.154.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. 191, Sec. 6 (part).)

Sec.1032.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that revenue bonds of the district

are outstanding; or

(2) more than once in a 24-month period. (Acts 64th

Leg., R.S., Ch. 191, Sec. 6 (part).)

Sec.1032.156.ANNUAL AUDIT. The board annually shall have

an audit made of the district's financial condition. (Acts 64th

Leg., R.S., Ch. 191, Sec. 6 (part).)

Sec. 1032.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS. The annual audit and other district records shall be open

to inspection at the district's principal office. (Acts 64th Leg.,

R.S., Ch. 191, Sec. 6 (part).)

Sec.1032.158.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 disbursements of that

money. (Acts 64th Leg., R.S., Ch. 191, Sec. 6 (part).)

Sec.1032.159.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 1032.160(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.

the power of the board to place a part of district money on time

deposit or to purchase certificates of deposit.

(d) The district may not deposit money with a bank in an

amount that exceeds the maximum amount secured by the Federal

Deposit Insurance Corporation unless the bank first executes a bond

or other security in an amount sufficient to secure from loss the

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation. (Acts 64th Leg., R.S., Ch. 191,

Sec. 11.)

Sec.1032.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Section 1032.107(c) and by

Subchapter E, 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 reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 64th Leg., R.S., Ch. 191, Secs. 5

(part), 10(b) (part).)

[Sections 1032.161-1032.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1032.201.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 or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 64th Leg., R.S., Ch. 191, Sec. 7(a) (part).)

Sec.1032.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1032.201, 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 75

cents on each $100 valuation of all taxable property in the

district. (Acts 64th Leg., R.S., Ch. 191, Sec. 7(a) (part).)

Sec.1032.203.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.

(b) The order calling the election shall 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; and

(5) the maximum maturity of the bonds.

Section 1251.003, Government Code. (Acts 64th Leg., R.S., Ch. 191,

Sec. 7(a) (part).)

Sec.1032.204.MATURITY OF GENERAL OBLIGATION BONDS.

District general obligation bonds must mature not later than 50

years after the date of issuance. (Acts 64th Leg., R.S., Ch. 191,

Sec. 7(c) (part).)

Sec.1032.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 64th Leg.,

R.S., Ch. 191, Sec. 7(c) (part).)

Sec.1032.206.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used 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 hospitals.

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, and 264.046-264.049, Health and Safety Code, for

issuance of revenue bonds by a county hospital authority. (Acts

64th Leg., R.S., Ch. 191, Sec. 9 (part).)

Sec.1032.207.REFUNDING BONDS. (a) The board may, without

an election, 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 the 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. 191, Secs. 7(a) (part), (b) (part), 9 (part).)

Sec.1032.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) the transfer and issuance of the bonds; and

(3) profits made in the sale of the bonds. (Acts 64th

Leg., R.S., Ch. 191, Sec. 21 (part).)

[Sections 1032.209-1032.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1032.251.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 pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

interest on revenue bonds issued under this chapter. (Acts 64th

Leg., R.S., Ch. 191, Secs. 12(a) (part), 15(a) (part).)

Sec.1032.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed 75 cents on each $100 valuation of 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. 191, Secs. 3(b) (part), 12(a) (part), (b) (part).)

Sec. 1032.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR. (a) This section applies unless the board

elects to have taxes assessed and collected under Section 1032.254.

(b) The tax assessor-collector of Gonzales County shall

assess and collect taxes imposed by the district. (Acts 64th Leg.,

R.S., Ch. 191, Secs. 15(a) (part), (b) (part).)

Sec. 1032.254. ASSESSMENT AND COLLECTION BY DISTRICT TAX

ASSESSOR-COLLECTOR. (a) The board may elect to have district taxes

assessed and collected by a tax assessor-collector appointed by the

board. An election under this subsection must be made by December 1

and governs the manner in which taxes are assessed and collected,

until changed by a similar resolution.

(b) The district tax assessor-collector must reside in the

district.

assessor-collector:

(1) the term of employment; and

(2) compensation. (Acts 64th Leg., R.S., Ch. 191,

Secs. 15(a) (part), (c) (part).)

CHAPTER 1033. GRAPELAND HOSPITAL DISTRICT

OF HOUSTON COUNTY, TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1033.001. DEFINITIONS

Sec. 1033.002. AUTHORITY FOR CREATION

Sec. 1033.003. DISTRICT TERRITORY

Sec. 1033.004. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1033.005. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1033.006-1033.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1033.051. BOARD ELECTION; TERM

Sec. 1033.052. QUALIFICATIONS FOR OFFICE

Sec. 1033.053. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE

Sec. 1033.054. BOARD VACANCY

Sec. 1033.055. OFFICERS

Sec. 1033.056. COMPENSATION; EXPENSES

Sec. 1033.057. DISTRICT ADMINISTRATOR

Sec. 1033.058. EMPLOYEES; APPOINTMENT AND DISMISSAL OF STAFF

Sec. 1033.059. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

[Sections 1033.060-1033.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1033.101. DISTRICT RESPONSIBILITY

Sec. 1033.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1033.103. MANAGEMENT AND CONTROL OF DISTRICT

Sec. 1033.104. HOSPITAL SYSTEM

Sec. 1033.105. RULES

Sec. 1033.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1033.107. EMINENT DOMAIN

Sec. 1033.108. GIFTS AND ENDOWMENTS

Sec. 1033.109. CONTRACTS WITH POLITICAL SUBDIVISIONS

FOR HOSPITAL CARE

Sec. 1033.110. PAYMENT FOR TREATMENT; PROCEDURES

[Sections 1033.111-1033.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1033.151. BUDGET

Sec. 1033.152. PROPOSED BUDGET; NOTICE AND HEARING

Sec. 1033.153. FISCAL YEAR

Sec. 1033.154. ANNUAL AUDIT

Sec. 1033.155. DEPOSITORY

[Sections 1033.156-1033.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1033.201. BONDS

Sec. 1033.202. TAX TO PAY BONDS

Sec. 1033.203. BOND ELECTION

Sec. 1033.204. MATURITY OF BONDS

Sec. 1033.205. EXECUTION OF BONDS

[Sections 1033.206-1033.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1033.251. IMPOSITION OF AD VALOREM TAX

Sec. 1033.252. TAX RATE

Sec. 1033.253. TAX ASSESSOR AND COLLECTOR

[Sections 1033.254-1033.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1033.301. DISSOLUTION; ELECTION

Sec. 1033.302. BALLOT

Sec. 1033.303. ELECTION RESULTS

Sec. 1033.304. TRANSFER OF DISTRICT ASSETS

CHAPTER 1033. GRAPELAND HOSPITAL DISTRICT

OF HOUSTON COUNTY, TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1033.001.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 Grapeland Hospital District

of Houston County, Texas. (New.)

Sec.1033.002.AUTHORITY FOR CREATION. The district is

created under the authority of Section 9, Article IX, Texas

Constitution. (Acts 62nd Leg., R.S., Ch. 455, Sec. 1.)

Sec.1033.003.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of the Grapeland

Independent School District as those boundaries existed on May 26,

1971. (Acts 62nd Leg., R.S., Ch. 455, Sec. 2.)

Sec. 1033.004. 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 62nd Leg., R.S., Ch. 455, Sec. 18 (part).)

Sec.1033.005.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 62nd Leg., R.S., Ch. 455, Sec. 18 (part).)

[Sections 1033.006-1033.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1033.051.BOARD ELECTION; TERM. (a) The board

consists of seven 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. (Acts 62nd Leg., R.S., Ch. 455, Secs. 5(a), (d), (e),

(g).)

Sec.1033.052.QUALIFICATIONS FOR OFFICE. To qualify for

election to the board, a person must:

(1) be at least 18 years of age;

(2) have been a district resident for at least two

years; and

(3) be a qualified property taxpaying voter of the

district. (Acts 62nd Leg., R.S., Ch. 455, Sec. 5(b).)

Sec. 1033.053. BOND; RECORD OF BOND AND OATH OR AFFIRMATION

OF OFFICE. (a) Each director 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

director's duties.

(b) The district shall pay for a director's bond.

affirmation of office shall be deposited with the district's

depository for safekeeping. (Acts 62nd Leg., R.S., Ch. 455, Sec.

6(a).)

Sec.1033.054.BOARD VACANCY. If a vacancy occurs in the

office of director, a majority of the directors shall appoint a

director for the unexpired term. (Acts 62nd Leg., R.S., Ch. 455,

Sec. 5(h).)

Sec.1033.055.OFFICERS. The board shall elect from among

its members a president, a secretary, and a treasurer at the first

meeting after each directors' election. (Acts 62nd Leg., R.S., Ch.

455, Sec. 6(b).)

Sec.1033.056.COMPENSATION; EXPENSES. A director serves

without compensation but is entitled to reimbursement for necessary

expenses incurred in the performance of official duties. (Acts

62nd Leg., R.S., Ch. 455, Sec. 6(c).)

Sec.1033.057.DISTRICT ADMINISTRATOR. (a) The board may

employ a district administrator to manage the operations of the

hospital system.

(b) The district administrator may employ necessary

personnel to perform the services provided by the hospital system.

(Acts 62nd Leg., R.S., Ch. 455, Sec. 12(e) (part).)

Sec. 1033.058. EMPLOYEES; APPOINTMENT AND DISMISSAL OF

STAFF. (a) The board may appoint to or dismiss from the staff any

doctors the board considers necessary for the efficient operation

of the district and make temporary appointments as necessary.

(b) The board may employ an attorney, general manager,

bookkeeper, architect, and other employees necessary for the

efficient operation of the district. (Acts 62nd Leg., R.S., Ch.

455, Secs. 12(e) (part), (h).)

Sec.1033.059.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

The board shall:

(1) maintain all district records, including books,

accounts, notices, minutes, and other matters of the district and

the district's operation at the district office; and

(2) make those records available for public inspection

at reasonable times. (Acts 62nd Leg., R.S., Ch. 455, Sec. 12(b).)

[Sections 1033.060-1033.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1033.101.DISTRICT RESPONSIBILITY. The district shall

provide all necessary medical and hospital care for the district's

needy inhabitants. (Acts 62nd Leg., R.S., Ch. 455, Sec. 3 (part).)

Sec. 1033.102. 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 62nd Leg., R.S., Ch. 455, Sec. 3 (part).)

Sec.1033.103.MANAGEMENT AND CONTROL OF DISTRICT. The

board has full power to manage and control the district. (Acts 62nd

Leg., R.S., Ch. 455, Sec. 12(a) (part).)

Sec.1033.104.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 62nd Leg., R.S., Ch. 455, Sec. 3

(part).)

Sec.1033.105.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 62nd Leg., R.S., Ch. 455, Sec. 12(c).)

Sec.1033.106.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 62nd Leg., R.S., Ch. 455, Sec. 12(e) (part).)

Sec.1033.107.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in real, personal, or mixed property located in

district territory if the interest is necessary or convenient for

the district to exercise a power or duty 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 that the

district is not required to deposit in the trial court money or a

bond as provided by Section 21.021(a), Property Code.

required to:

(1) pay in advance or provide a bond or other security

for costs in the trial court; or

(2) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 62nd Leg., R.S., Ch. 455, Sec.

15.)

Sec.1033.108.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust and

administered by the board under the directions, limitations, or

other provisions prescribed in writing by the donor that are not

inconsistent with the proper management of the district. (Acts

62nd Leg., R.S., Ch. 455, Sec. 12(f).)

Sec. 1033.109. CONTRACTS WITH POLITICAL SUBDIVISIONS FOR

HOSPITAL CARE. The board may contract with a political subdivision

to provide hospital care for needy persons who reside outside the

district. (Acts 62nd Leg., R.S., Ch. 455, Sec. 12(g).)

Sec.1033.110.PAYMENT FOR TREATMENT; PROCEDURES. (a) A

person who resides in the district is entitled to receive necessary

medical and hospital care from the district 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

who is liable for the patient's support to pay for the medical and

hospital care received by the patient.

relative legally liable for the patient's support cannot pay all or

part of the costs of the patient's care, the expense of the care

becomes a charge against the district.

(d) If the patient or a relative of the patient legally

liable for the patient's support can pay for all or part of the

costs of the patient's care, the board shall order the patient or

relative to pay to the 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 who is 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 62nd Leg., R.S., Ch. 455, Sec. 14.)

[Sections 1033.111-1033.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1033.151.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 62nd Leg., R.S., Ch. 455, Sec. 13(b).)

Sec.1033.152.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 11th day before the date of the hearing.

(1) appear at the hearing; and

(2) be heard regarding any item in the proposed

budget. (Acts 62nd Leg., R.S., Ch. 455, Secs. 13(c), (d).)

Sec.1033.153.FISCAL YEAR. The district's fiscal year is

from October 1 to September 30. (Acts 62nd Leg., R.S., Ch. 455,

Sec. 13(a).)

Sec.1033.154.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 62nd Leg., R.S., Ch. 455, Sec.

12(d).)

Sec.1033.155.DEPOSITORY. (a) The board by resolution

shall designate a bank in Houston County 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

62nd Leg., R.S., Ch. 455, Sec. 16.)

[Sections 1033.156-1033.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1033.201.BONDS. The district may issue bonds to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements; and

(2) equip buildings for hospital purposes. (Acts 62nd

Leg., R.S., Ch. 455, Secs. 9(a) (part), 10(a) (part).)

Sec.1033.202.TAX TO PAY BONDS. The board may issue bonds

under Section 1033.201 only if the board imposes 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.

(Acts 62nd Leg., R.S., Ch. 455, Sec. 10(c).)

Sec.1033.203.BOND ELECTION. (a) The board may issue

bonds under Section 1033.201 only if the bonds are authorized by a

majority of district voters voting in an election held for that

purpose. The total face value of the bonds may not exceed the

amount specified in the election order.

(b) The board may order a bond election at any time.

(1) the time of the election;

(2) the location of the polling places;

(3) the form of the ballots;

(4) the presiding judge for each polling place;

(5) the purpose of the bond issuance;

(6) the amount of the bonds to be authorized;

(7) the maximum interest rate of the bonds; and

(8) the maximum maturity of the bonds.

(d) A substantial copy of the election order shall be

published 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 not later than the

15th day before the date of the election.

(e) A copy of the election results must be filed with the

county clerk and become a public record. (Acts 62nd Leg., R.S., Ch.

455, Secs. 4(b), (c), (d) (part), 9(a) (part), (b), (d), 10(a)

(part).)

Sec.1033.204.MATURITY OF BONDS. District bonds must

mature not later than 40 years after the date of issuance. (Acts

62nd Leg., R.S., Ch. 455, Sec. 9(c).)

Sec.1033.205.EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds. (Acts

62nd Leg., R.S., Ch. 455, Sec. 10(b) (part).)

[Sections 1033.206-1033.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1033.251.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 may be used only to:

(1) pay the interest on and create a sinking fund for

bonds issued under this chapter;

(2) provide for the operation and maintenance of the

district and the hospital system;

(3) make improvements and additions to the hospital

system; and

(4) acquire sites for additions to the hospital

system. (Acts 62nd Leg., R.S., Ch. 455, Secs. 8(a) (part), (c).)

Sec.1033.252.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 62nd Leg., R.S., Ch. 455, Sec. 8(a)

(part).)

Sec.1033.253.TAX ASSESSOR AND COLLECTOR. The tax

assessor-collector of Houston County shall collect taxes for the

district. (Acts 62nd Leg., R.S., Ch. 455, Sec. 8(d) (part).)

[Sections 1033.254-1033.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec.1033.301.DISSOLUTION; ELECTION. (a) The district

may be dissolved as provided by this subchapter.

(b) The board may order an election on the question of

dissolving the district and transferring the district's assets and

obligations to a governmental entity in Houston County as specified

in the election order.

a petition requesting an election that is signed by at least 20

percent of the registered voters in the district.

(d) The order calling the election must designate the

governmental entity in Houston County to which the district's

assets and obligations will be transferred.

(e) Section 41.001(a), Election Code, does not apply to an

election ordered under this section. (Acts 62nd Leg., R.S., Ch.

455, Secs. 18A(a), (b), (c) (part).)

Sec.1033.302.BALLOT. The ballot for an election under

this subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the Grapeland Hospital District

and the transfer of the existing district assets to and the

assumption of debts and bond obligations by ________ (name of

governmental entity as specified in the election order)." (Acts

62nd Leg., R.S., Ch. 455, Sec. 18A(d) (part).)

Sec.1033.303.ELECTION RESULTS. (a) If a majority of the

votes in an election under this subchapter favor dissolution and

transfer of the district's assets and obligations, the board shall:

(1) declare that the district is dissolved; and

(2) transfer the district's assets and obligations to

a governmental entity as provided by Section 1033.304.

(b) If a majority of the votes in the election do not favor

dissolution and transfer of the district's assets and obligations,

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 and transfer the district's assets and

obligations. (Acts 62nd Leg., R.S., Ch. 455, Sec. 18A(e).)

Sec.1033.304.TRANSFER OF DISTRICT ASSETS. (a) If a

majority of the votes in the election favor dissolution and

transfer of the district's assets and obligations, the board shall

transfer to the governmental entity specified in the election order

the land, buildings, improvements, equipment, and other assets that

belong to the district.

(b) The governmental entity assumes all debts and

obligations of the district at the time of the transfer. (Acts 62nd

Leg., R.S., Ch. 455, Secs. 18A(f).)

CHAPTER 1036. HAMILTON COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1036.001. DEFINITIONS

Sec. 1036.002. AUTHORITY FOR OPERATION

Sec. 1036.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1036.004. DISTRICT TERRITORY

Sec. 1036.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1036.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1036.007-1036.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1036.051. BOARD ELECTION; TERM

Sec. 1036.052. NOTICE OF ELECTION

Sec. 1036.053. BALLOT PETITION

Sec. 1036.054. QUALIFICATIONS FOR OFFICE

Sec. 1036.055. BOARD VACANCY

Sec. 1036.056. OFFICERS

Sec. 1036.057. COMPENSATION; EXPENSES

Sec. 1036.058. VOTING REQUIREMENT

Sec. 1036.059. DISTRICT ADMINISTRATOR

Sec. 1036.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1036.061. ASSISTANT DISTRICT ADMINISTRATOR;

ATTORNEY

Sec. 1036.062. EMPLOYEES; APPOINTMENT OF STAFF

Sec. 1036.063. RETIREMENT BENEFITS

[Sections 1036.064-1036.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1036.101. DISTRICT RESPONSIBILITY

Sec. 1036.102. RESTRICTION ON COUNTY TAXATION AND DEBT

Sec. 1036.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1036.104. RULES

Sec. 1036.105. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1036.106. MOBILE EMERGENCY MEDICAL SERVICE

Sec. 1036.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1036.108. EMINENT DOMAIN

Sec. 1036.109. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 1036.110. GIFTS AND ENDOWMENTS

Sec. 1036.111. CONSTRUCTION CONTRACTS

Sec. 1036.112. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1036.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR SERVICES

Sec. 1036.114. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1036.115. REIMBURSEMENT FOR SERVICES

Sec. 1036.116. AUTHORITY TO SUE AND BE SUED

[Sections 1036.117-1036.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1036.151. BUDGET

Sec. 1036.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1036.153. AMENDMENT OF BUDGET

Sec. 1036.154. RESTRICTION ON EXPENDITURES

Sec. 1036.155. FISCAL YEAR

Sec. 1036.156. ANNUAL AUDIT

Sec. 1036.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS

Sec. 1036.158. FINANCIAL REPORT

Sec. 1036.159. DEPOSITORY

Sec. 1036.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1036.161-1036.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1036.201. GENERAL OBLIGATION BONDS

Sec. 1036.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1036.203. BOND ELECTION

Sec. 1036.204. REVENUE BONDS

Sec. 1036.205. REFUNDING BONDS

Sec. 1036.206. ADDITIONAL MEANS OF SECURING REPAYMENT

OF BONDS

Sec. 1036.207. MATURITY OF BONDS

Sec. 1036.208. EXECUTION OF BONDS

Sec. 1036.209. BONDS EXEMPT FROM TAXATION

[Sections 1036.210-1036.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1036.251. IMPOSITION OF AD VALOREM TAX

Sec. 1036.252. TAX RATE

Sec. 1036.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1036. HAMILTON COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1036.001.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 Hamilton County Hospital

District. (Acts 70th Leg., 2nd C.S., Ch. 42, Sec. 1.01.)

Sec.1036.002.AUTHORITY FOR OPERATION. The district

operates and is financed as provided by Section 9, Article IX, Texas

Constitution, and by this chapter. (Acts 70th Leg., 2nd C.S., Ch.

42, Sec. 1.02.)

Sec.1036.003.ESSENTIAL PUBLIC FUNCTION. The district is

a public entity performing an essential public function. (Acts

70th Leg., 2nd C.S., Ch. 42, Sec. 7.11 (part).)

Sec.1036.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Commissioners

Precincts 1, 2, and 4 of Hamilton County as those boundaries existed

on June 14, 1989. (Acts 70th Leg., 2nd C.S., Ch. 42, Sec. 1.03.)

Sec. 1036.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. This state may not become obligated for the support or

maintenance of the district. (Acts 70th Leg., 2nd C.S., Ch. 42,

Sec. 9.01 (part).)

Sec.1036.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 70th Leg., 2nd C.S., Ch. 42, Sec. 9.01 (part).)

[Sections 1036.007-1036.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1036.051.BOARD ELECTION; TERM. (a) The district is

governed by a board of five directors.

(b) One director is elected from each commissioners

precinct included in the district and two directors are elected

from the district at large.

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) an election shall be held on the uniform election

date in May of each year to elect the appropriate number of

directors. (Acts 70th Leg., 2nd C.S., Ch. 42, Secs. 4.01(a),

4.03(a), (d).)

Sec.1036.052.NOTICE OF ELECTION. At least 35 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper with general circulation in the

district. (Acts 70th Leg., 2nd C.S., Ch. 42, Sec. 4.04.)

Sec.1036.053.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:

(1) be signed by at least 10 registered voters of the

district, as determined by the most recent official lists of

registered voters;

(2) be filed not later than the 31st day before the

date of the election; and

(3) specify the commissioners precinct the candidate

wants to represent or specify that the candidate wants to represent

the district at large. (Acts 70th Leg., 2nd C.S., Ch. 42, Sec.

4.05.)

Sec.1036.054.QUALIFICATIONS FOR OFFICE. (a) To be

eligible to be a candidate for or to serve as a director, a person

must be:

(1) a district resident; and

(2) a qualified voter.

(b) A person who is elected from a commissioners precinct or

who is appointed to fill a vacancy for a commissioners precinct must

be a resident of that commissioners precinct.

70th Leg., 2nd C.S., Ch. 42, Sec. 4.06.)

Sec.1036.055.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 70th Leg., 2nd C.S., Ch. 42,

Sec. 4.07.)

Sec.1036.056.OFFICERS. (a) The board shall elect a

president and a vice president from among its members.

(b) The board shall appoint a secretary, who need not be a

director.

(d) The board shall fill a vacancy in a board office for the

unexpired term. (Acts 70th Leg., 2nd C.S., Ch. 42, Secs. 4.08,

4.09.)

Sec.1036.057.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 70th Leg., 2nd C.S.,

Ch. 42, Sec. 4.10.)

Sec.1036.058.VOTING REQUIREMENT. A concurrence of a

majority of the directors voting is necessary in any matter

relating to district business. (Acts 70th Leg., 2nd C.S., Ch. 42,

Sec. 4.11.)

Sec.1036.059.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 is entitled to the compensation determined by the board.

the administrator must execute a bond in the amount determined by

the board of not less than $5,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

administrator's duties under this chapter.

(d) The board may pay for the bond with district money.

(Acts 70th Leg., 2nd C.S., Ch. 42, Secs. 4.12(a) (part), (b) (part),

Sec.1036.060.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 general affairs of the district. (Acts

70th Leg., 2nd C.S., Ch. 42, Sec. 4.15.)

Sec.1036.061.ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.

(a) The board may appoint qualified persons as:

(1) the assistant district administrator; and

(2) the attorney for the district.

(b) The assistant district administrator and the attorney

for the district serve at the will of the board and are entitled to

the compensation determined by the board. (Acts 70th Leg., 2nd

C.S., Ch. 42, Secs. 4.12(a) (part), (b) (part), (c) (part).)

Sec.1036.062.EMPLOYEES; APPOINTMENT OF STAFF. (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 necessary.

(b) The district may employ technicians, nurses, fiscal

agents, accountants, architects, additional attorneys, and other

necessary employees.

authority to employ persons for the district. (Acts 70th Leg., 2nd

C.S., Ch. 42, Secs. 4.13, 4.14.)

Sec.1036.063.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 70th Leg., 2nd C.S.,

Ch. 42, Sec. 4.16.)

[Sections 1036.064-1036.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1036.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for:

(1) operating hospital facilities; and

(2) providing medical and hospital care for the

district's needy inhabitants. (Acts 70th Leg., 2nd C.S., Ch. 42,

Sec. 5.02 (part).)

Sec.1036.102.RESTRICTION ON COUNTY TAXATION AND DEBT.

Hamilton County may not impose a tax or issue bonds or other

obligations for hospital purposes or to provide medical care for

district residents. (Acts 70th Leg., 2nd C.S., Ch. 42, Sec.

5.01(b).)

Sec.1036.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 70th Leg., 2nd C.S.,

Ch. 42, Sec. 5.03.)

Sec.1036.104.RULES. The board may adopt rules governing:

(1) the operation of the hospital and hospital system;

and

(2) the duties, functions, and responsibilities of the

district staff and employees. (Acts 70th Leg., 2nd C.S., Ch. 42,

Sec. 5.04.)

Sec.1036.105.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method of making purchases and expenditures by

and for the district; and

(2) accounting and control procedures for the

district. (Acts 70th Leg., 2nd C.S., Ch. 42, Sec. 5.05.)

Sec.1036.106.MOBILE EMERGENCY MEDICAL SERVICE. The

district may operate or provide for the operation of a mobile

emergency medical service. (Acts 70th Leg., 2nd C.S., Ch. 42, Sec.

5.02 (part).)

Sec. 1036.107. 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 property, including facilities and

equipment, for the district for use in the hospital system; and

(2) mortgage or pledge the property as security for

the payment of the purchase price.

district.

(d) The board may sell or otherwise dispose of the property,

including facilities or equipment, for the district. (Acts 70th

Leg., 2nd C.S., Ch. 42, Sec. 5.06.)

Sec.1036.108.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in property located in district territory if the

property interest is necessary for the district to exercise a right

or authority conferred by this chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, except that the

district is not required to deposit in the trial court money or a

bond as provided by Section 21.021(a), Property Code.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 70th Leg., 2nd C.S., Ch. 42, Sec.

5.09.)

Sec.1036.109.COST OF RELOCATING OR ALTERING PROPERTY. In

exercising the power of eminent domain, if the board requires

relocating, raising, lowering, rerouting, changing the grade of, or

altering the construction of any railroad, highway, pipeline,

electric transmission and electric distribution, telegraph, or

telephone line, conduit, pole, or facility, the district must bear

the actual cost of relocating, raising, lowering, rerouting,

changing the grade, or altering the construction to provide

comparable replacement, without enhancement of facilities, after

deducting the net salvage value derived from the old facility.

(Acts 70th Leg., 2nd C.S., Ch. 42, Sec. 5.10.)

Sec.1036.110.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust for any

purpose and under any direction, limitation, or other provision

prescribed in writing by the donor that is consistent with the

proper management of the district. (Acts 70th Leg., 2nd C.S., Ch.

42, Sec. 5.14.)

Sec.1036.111.CONSTRUCTION CONTRACTS. (a) The board may

enter into construction contracts for the district.

(b) The board may enter into a construction contract that

involves an expenditure of more than the amount prescribed by

Section 271.024, Local Government Code, only after competitive

bidding as provided by Subchapter B, Chapter 271, Local Government

Code. (Acts 70th Leg., 2nd C.S., Ch. 42, Sec. 5.07(a).)

Sec.1036.112.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a hospital facility for the district. (Acts 70th Leg., 2nd C.S.,

Ch. 42, Sec. 5.08.)

Sec. 1036.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

SERVICES. The board may contract with a political subdivision of

this state or with a state or federal agency for the district to:

(1) furnish a mobile emergency medical service; or

(2) provide for the investigatory or welfare needs of

district inhabitants. (Acts 70th Leg., 2nd C.S., Ch. 42, Sec.

5.13.)

Sec.1036.114.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a person who resides in the district is admitted as a patient

to a district facility, the district administrator may have an

inquiry made into the financial circumstances of:

(1) the patient; and

(2) a relative of the patient who is legally

responsible for the patient's support.

(b) To the extent that the patient or a relative of the

patient who is legally responsible for the patient's support cannot

pay for care and treatment provided by the district, the district

shall supply the care and treatment without charging the patient or

the patient's relative.

responsible for the patient's support 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 the relative to

pay the district a specified amount each week. The amount must be

based on the individual's ability to pay.

(d) The district administrator may collect the money owed to

the district from the patient's estate or from that of a relative

who was legally responsible for the patient's support in the manner

provided by law for collection of expenses in the last illness of a

deceased person.

(e) If there is a dispute relating to a person's ability to

pay or if the district administrator has any doubt concerning a

person's ability to pay, the board shall:

(1) call witnesses;

(2) hear and resolve the question; and

(3) issue a final order.

(f) The final order of the board may be appealed to a

district court in Hamilton County. The substantial evidence rule

applies to the appeal. (Acts 70th Leg., 2nd C.S., Ch. 42, Secs.

5.11(b), (c), (d), (e), (f).)

Sec.1036.115.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 and treatment of a sick or injured person of that county,

municipality, or public hospital as provided by Chapter 61, Health

and Safety Code.

(b) The board shall require the sheriff of Hamilton County

to reimburse the district for the district's care and treatment of a

person who is confined in a jail facility of Hamilton County and is

not a district resident.

the state or federal government for that government to reimburse

the district for treatment of a sick or injured person. (Acts 70th

Leg., 2nd C.S., Ch. 42, Sec. 5.12.)

Sec.1036.116.AUTHORITY TO SUE AND BE SUED. The board may

sue and be sued on behalf of the district. (Acts 70th Leg., 2nd

C.S., Ch. 42, Sec. 5.15.)

[Sections 1036.117-1036.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1036.151.BUDGET. (a) The district administrator

shall prepare a proposed annual budget for the district.

(b) The proposed budget must contain a complete financial

statement, including a statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash on hand in each district fund;

(3) the amount of money received by the district from

all sources during the previous year;

(4) the amount of money available to the district from

all sources during the ensuing year;

(5) the amount of the balances expected at the end of

the year in which the budget is being prepared;

(6) the estimated amount of revenue and balances

available to cover the proposed budget; and

(7) the estimated tax rate required. (Acts 70th Leg.,

2nd C.S., Ch. 42, Sec. 6.04.)

Sec.1036.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) The board shall publish notice of the hearing in a

newspaper with general circulation in the district not later than

the 10th day before the date of the hearing.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the

taxpayers.

(e) The budget is effective only after adoption by the

board. (Acts 70th Leg., 2nd C.S., Ch. 42, Sec. 6.05.)

Sec.1036.153.AMENDMENT OF BUDGET. After adoption, the

annual budget may be amended on the board's approval. (Acts 70th

Leg., 2nd C.S., Ch. 42, Sec. 6.06.)

Sec.1036.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 70th Leg., 2nd C.S., Ch. 42, Sec. 6.07.)

Sec.1036.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that revenue bonds of the district

are outstanding; or

(2) more than once in a 24-month period. (Acts 70th

Leg., 2nd C.S., Ch. 42, Sec. 6.01.)

Sec.1036.156.ANNUAL AUDIT. The board annually shall have

an audit made of the district's financial condition. (Acts 70th

Leg., 2nd C.S., Ch. 42, Sec. 6.02.)

Sec. 1036.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS. The annual audit and other district records shall be open

to inspection during regular business hours at the district's

principal office. (Acts 70th Leg., 2nd C.S., Ch. 42, Sec. 6.03.)

Sec.1036.158.FINANCIAL REPORT. As soon as practicable

after the close of the fiscal year, the district administrator

shall prepare for the board:

(1) a sworn statement of the amount of district money;

and

(2) an account of the disbursements of that money.

(Acts 70th Leg., 2nd C.S., Ch. 42, Sec. 6.08.)

Sec.1036.159.DEPOSITORY. (a) The board shall select at

least one bank to serve as a depository for district money.

(b) District money, other than money invested as provided by

Section 1036.160(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 must remain on

deposit. This subsection does not limit the power of the board to

place a part of district money on time deposit or to purchase

certificates of deposit.

amount that exceeds the maximum amount secured by the Federal

Deposit Insurance Corporation unless the bank first executes a bond

or other security in an amount sufficient to secure from loss the

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation. (Acts 70th Leg., 2nd C.S., Ch. 42,

Sec. 6.10.)

Sec.1036.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as provided by Sections 1036.111, 1036.201, 1036.204, and

1036.205, the district may not incur a debt payable from district

revenue other than the revenue on hand or to be on hand in the

current and the immediately following district fiscal years.

(b) The board may invest operating, depreciation, or

building reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 70th Leg., 2nd C.S., Ch. 42, Sec.

6.09.)

[Sections 1036.161-1036.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1036.201.GENERAL OBLIGATION BONDS. If authorized by

an election, the board may issue and sell general obligation bonds

in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements;

(2) equip buildings or improvements for hospital

purposes; or

(3) acquire and operate a mobile emergency medical

service. (Acts 70th Leg., 2nd C.S., Ch. 42, Sec. 7.01.)

Sec.1036.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1036.201, 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

limit approved by the voters at the election authorizing the

imposition of the tax. (Acts 70th Leg., 2nd C.S., Ch. 42, Sec.

7.02.)

Sec.1036.203.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 board may order a bond election.

(1) the nature and date of the election;

(2) the hours during which the polls will be open;

(3) the location of the polling places;

(4) the amount of the bonds to be authorized; and

(5) the maximum maturity of the bonds.

(d) Notice of a bond election shall be given as provided by

Section 1251.003, Government Code.

(e) The board shall declare the results of the election.

(Acts 70th Leg., 2nd C.S., Ch. 42, Secs. 7.03, 7.12 (part).)

Sec.1036.204.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes;

(2) acquire sites to be used for hospital purposes; or

(3) acquire and operate a mobile emergency medical

service to assist the district in carrying out its hospital

purposes.

(b) The bonds must be payable from and secured by a pledge of

all or part of the revenue derived from the operation of the

district's hospital system.

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, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority.

(Acts 70th Leg., 2nd C.S., Ch. 42, Sec. 7.04.)

Sec.1036.205.REFUNDING BONDS. (a) The board may issue

refunding bonds to refund an outstanding indebtedness issued or

assumed by the district.

(b) Refunding bonds may be:

(1) sold, with the proceeds of the refunding bonds

applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 70th

Leg., 2nd C.S., Ch. 42, Secs. 7.05(a), (c) (part).)

Sec. 1036.206. 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

1036.202 and revenue and other sources authorized by Section

1036.204. (Acts 70th Leg., 2nd C.S., Ch. 42, Sec. 7.12 (part).)

Sec.1036.207.MATURITY OF BONDS. District bonds must

mature not later than 50 years after the date of issuance. (Acts

70th Leg., 2nd C.S., Ch. 42, Sec. 7.06 (part).)

Sec.1036.208.EXECUTION OF BONDS. (a) The board president

shall execute district bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 70th Leg.,

2nd C.S., Ch. 42, Sec. 7.07.)

Sec.1036.209.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 70th

Leg., 2nd C.S., Ch. 42, Sec. 7.11 (part).)

[Sections 1036.210-1036.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1036.251.IMPOSITION OF AD VALOREM TAX. (a) The board

may impose a tax on all property in the district subject to district

taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

or interest on revenue bonds issued under this chapter. (Acts 70th

Leg., 2nd C.S., Ch. 42, Secs. 8.01(a) (part), (c), (d), 8.02(b).)

Sec.1036.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed the limit approved by the voters at the

election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on

each $100 valuation of all taxable property in the district.

income of the district from sources other than taxation. (Acts 70th

Leg., 2nd C.S., Ch. 42, Secs. 8.01(a), (b), 8.03 (part).)

Sec.1036.253.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 70th Leg., 2nd C.S., Ch. 42, Sec.

8.04(b).)

CHAPTER 1037. HAMLIN HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1037.001. DEFINITIONS

Sec. 1037.002. AUTHORITY FOR CREATION

Sec. 1037.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1037.004. DISTRICT TERRITORY

Sec. 1037.005. CORRECTION OF INVALID PROCEDURES

Sec. 1037.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

[Sections 1037.007-1037.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1037.051. BOARD ELECTION; TERM

Sec. 1037.052. NOTICE OF ELECTION

Sec. 1037.053. BALLOT PETITION

Sec. 1037.054. QUALIFICATIONS FOR OFFICE

Sec. 1037.055. BOARD VACANCY

Sec. 1037.056. OFFICERS

Sec. 1037.057. COMPENSATION; EXPENSES

Sec. 1037.058. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR

Sec. 1037.059. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1037.060. EMPLOYEES; APPOINTMENT OF STAFF

[Sections 1037.061-1037.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1037.101. DISTRICT RESPONSIBILITY

Sec. 1037.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1037.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1037.104. HOSPITAL SYSTEM

Sec. 1037.105. RULES

Sec. 1037.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1037.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1037.108. EMINENT DOMAIN

Sec. 1037.109. GIFTS AND ENDOWMENTS

Sec. 1037.110. CONSTRUCTION CONTRACTS

Sec. 1037.111. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1037.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT

Sec. 1037.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1037.114. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1037.115. AUTHORITY TO SUE AND BE SUED

[Sections 1037.116-1037.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1037.151. BUDGET

Sec. 1037.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1037.153. AMENDMENTS TO BUDGET

Sec. 1037.154. FISCAL YEAR

Sec. 1037.155. AUDIT

Sec. 1037.156. INSPECTION OF AUDIT AND DISTRICT

RECORDS

Sec. 1037.157. FINANCIAL REPORT

Sec. 1037.158. DEPOSITORY

Sec. 1037.159. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1037.160-1037.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1037.201. GENERAL OBLIGATION BONDS

Sec. 1037.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1037.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1037.204. REVENUE BONDS

Sec. 1037.205. REFUNDING BONDS

Sec. 1037.206. MATURITY OF BONDS

Sec. 1037.207. EXECUTION OF BONDS

Sec. 1037.208. BONDS EXEMPT FROM TAXATION

[Sections 1037.209-1037.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1037.251. IMPOSITION OF AD VALOREM TAX

Sec. 1037.252. TAX RATE

Sec. 1037.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1037. HAMLIN HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1037.001.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 Hamlin Hospital District.

(Acts 63rd Leg., R.S., Ch. 561, Sec. 1 (part); New.)

Sec.1037.002.AUTHORITY FOR CREATION. The district is

created under the authority of Section 9, Article IX, Texas

Constitution. The district has the rights, powers, and duties

conferred by this chapter and general laws relating to hospital

districts. (Acts 63rd Leg., R.S., Ch. 561, Secs. 1 (part), 2

(part).)

Sec.1037.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 63rd Leg., R.S., Ch. 561, Sec. 22 (part).)

Sec.1037.004.DISTRICT TERRITORY. The district is

composed of the territory described by Section 1, Chapter 561, Acts

of the 63rd Legislature, Regular Session, 1973. (New.)

Sec.1037.005.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 63rd Leg., R.S., Ch. 561, Sec. 24 (part).)

Sec. 1037.006. 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 63rd

Leg., R.S., Ch. 561, Sec. 21 (part).)

[Sections 1037.007-1037.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1037.051.BOARD ELECTION; TERM. (a) The board

consists of seven directors elected from the district at large.

(b) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) the terms of four directors expire in odd-numbered

years and the terms of three directors expire in even-numbered

years.

purpose of the election. (Acts 63rd Leg., R.S., Ch. 561, Sec. 4(a)

(part).)

Sec.1037.052.NOTICE OF ELECTION. At least five days

before the date of an election of directors, notice of the election

shall be published one time in a newspaper of general circulation in

the district. (Acts 63rd Leg., R.S., Ch. 561, Sec. 4(a) (part).)

Sec.1037.053.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 at least 25 days before the date of the

election. (Acts 63rd Leg., R.S., Ch. 561, Sec. 4(a) (part).)

Sec.1037.054.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 63rd Leg.,

R.S., Ch. 561, Sec. 4(b) (part).)

Sec.1037.055.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 63rd Leg., R.S.,

Ch. 561, Sec. 4(a) (part).)

Sec.1037.056.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.

the vice president shall perform the president's duties and

exercise the president's powers under this chapter. (Acts 63rd

Leg., R.S., Ch. 561, Sec. 4(b) (part).)

Sec.1037.057.COMPENSATION; EXPENSES. A director serves

without compensation but may receive actual expenses incurred in

attending to district business on approval of the expenses by the

remainder of the board. (Acts 63rd Leg., R.S., Ch. 561, Sec. 4(b)

(part).)

Sec. 1037.058. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR. (a) The board shall appoint a qualified person as

district administrator.

(b) The board may appoint an assistant administrator.

administrator serve at the will of the board and are entitled to 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 other conditions the board may require.

(Acts 63rd Leg., R.S., Ch. 561, Sec. 5 (part).)

Sec.1037.059.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. 561, Sec. 5 (part).)

Sec.1037.060.EMPLOYEES; APPOINTMENT OF STAFF. (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 necessary.

(b) The board shall determine the type, number, and location

of district employees required to maintain an adequate hospital

system. The board may employ fiscal agents, accountants,

architects, attorneys, and other employees the board considers

proper.

authority to hire district employees, including technicians and

nurses. (Acts 63rd Leg., R.S., Ch. 561, Secs. 5 (part), 10(a)

(part), 17.)

[Sections 1037.061-1037.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1037.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for providing hospital care for the district's

indigent residents. (Acts 63rd Leg., R.S., Ch. 561, Sec. 20

(part).)

Sec. 1037.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT. A political subdivision located within the

district may not impose a tax or issue bonds or other obligations

for hospital purposes for the area of the district or to provide

medical care for district inhabitants. (Acts 63rd Leg., R.S., Ch.

561, Sec. 20 (part).)

Sec.1037.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

(a) The board shall manage, control, and administer the hospital

system and the district's money and resources.

(b) Unless specifically stated otherwise in this chapter,

the board has the power to do anything which, in their opinion, is

necessary for the good maintenance, operation, and welfare of the

district and the district's employees, patients, and property.

(Acts 63rd Leg., R.S., Ch. 561, Secs. 5 (part), 21 (part).)

Sec.1037.104.HOSPITAL SYSTEM. (a) The district shall

provide for the establishment of a hospital system by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the buildings and equipment for

hospital purposes.

(b) The hospital system may include:

(1) facilities for domiciliary care of the sick,

injured, or geriatric;

(2) facilities for outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses' domiciliaries and training

centers;

(6) blood banks;

(7) research centers or laboratories; and

(8) ambulance and other facilities or services the

board considers necessary for hospital care. (Acts 63rd Leg.,

R.S., Ch. 561, Secs. 2 (part), 10(a) (part).)

Sec.1037.105.RULES. The board may adopt rules governing

the operation of the hospital, the hospital system, and the

district's staff and employees. (Acts 63rd Leg., R.S., Ch. 561,

Sec. 5 (part).)

Sec.1037.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of making purchases and

expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 63rd

Leg., R.S., Ch. 561, Sec. 11 (part).)

Sec. 1037.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type of equipment and

the type, number, and location of buildings required to maintain an

adequate hospital system.

(b) The board may lease all or part of the district's

buildings and other facilities on terms considered to be in the best

interest of the district's inhabitants. The term of the lease may

not exceed 25 years.

district's hospital system and mortgage or pledge the property as

security for the payment of the purchase price. A contract entered

into under this subsection must provide that the entire obligation

be retired not later than the fifth anniversary of the date of the

contract.

(d) The district may sell or otherwise dispose of any

property, including equipment, on terms the board finds are in the

best interest of the district's inhabitants. The board may not sell

or dispose of any real property unless the board affirmatively

finds that the real property is not needed for the operation of the

hospital system. (Acts 63rd Leg., R.S., Ch. 561, Secs. 10(a)

(part), (b) (part), 11 (part).)

Sec.1037.108.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 for the district to exercise

a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

any appeal or writ of error. (Acts 63rd Leg., R.S., Ch. 561, Sec.

15.)

Sec.1037.109.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment for hospital purposes 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. 561, Sec. 19.)

Sec.1037.110.CONSTRUCTION CONTRACTS. A construction

contract that involves the expenditure of more than $2,000 may be

made only after advertising in the manner provided by Chapter 252

and Subchapter C, Chapter 262, Local Government Code. (Acts 63rd

Leg., R.S., Ch. 561, Sec. 11 (part).)

Sec.1037.111.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a district facility. (Acts 63rd Leg., R.S., Ch. 561, Sec. 10(b)

(part).)

Sec. 1037.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

CARE AND TREATMENT. (a) The board may contract with a 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.

(b) The board may contract with this state or a federal

agency for the treatment of a sick or injured person. (Acts 63rd

Leg., R.S., Ch. 561, Sec. 5 (part).)

Sec. 1037.113. 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 for the medical,

hospital, or welfare needs of district inhabitants. (Acts 63rd

Leg., R.S., Ch. 561, Sec. 5 (part).)

Sec.1037.114.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 who are 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 costs of

the care and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district administrator may collect the amount from

the patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the 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) The final order of the board may be appealed to the

district court. The substantial evidence rule applies to the

appeal. (Acts 63rd Leg., R.S., Ch. 561, Sec. 18.)

Sec.1037.115.AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued. (Acts 63rd Leg., R.S., Ch.

561, Sec. 5 (part).)

[Sections 1037.116-1037.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1037.151.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 in 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 63rd Leg., R.S., Ch. 561, Sec. 6(a) (part).)

Sec.1037.152.NOTICE; HEARING; ADOPTION 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 have general

circulation in the district.

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 adopt

a final budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the taxpayers

and that the law warrants. (Acts 63rd Leg., R.S., Ch. 561, Secs.

6(a) (part), (b) (part).)

Sec.1037.153.AMENDMENTS TO BUDGET. The annual budget may

be amended as required by circumstances. The board must approve all

amendments. (Acts 63rd Leg., R.S., Ch. 561, Sec. 6(b) (part).)

Sec.1037.154.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed more than once in a

24-month period. (Acts 63rd Leg., R.S., Ch. 561, Sec. 6(a) (part).)

Sec.1037.155.AUDIT. (a) The board 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 principal office. (Acts 63rd Leg., R.S.,

Ch. 561, Sec. 6(a) (part).)

Sec.1037.156.INSPECTION OF AUDIT AND DISTRICT RECORDS.

The audit and other district records shall be open to inspection at

the district's principal office. (Acts 63rd Leg., R.S., Ch. 561,

Sec. 6(a) (part).)

Sec.1037.157.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 63rd Leg., R.S., Ch. 561, Sec. 6(b) (part).)

Sec.1037.158.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 1037.159(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.

the power of the board to place a part of district money on time

deposit or to purchase certificates of deposit. (Acts 63rd Leg.,

R.S., Ch. 561, Sec. 12.)

Sec.1037.159.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Section 1037.107(c) and by

Subchapter E, the board 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 reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 63rd Leg., R.S., Ch. 561, Secs. 5

(part), 11 (part).)

[Sections 1037.160-1037.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1037.201.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 or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 63rd Leg., R.S., Ch. 561, Sec. 7 (part).)

Sec.1037.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued under Section

1037.201, 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 63rd Leg., R.S., Ch. 561, Sec. 7

(part).)

Sec.1037.203.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 election shall 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 maturity of the bonds; and

(6) the maximum interest rate of the bonds.

Section 1251.003, Government Code. (Acts 63rd Leg., R.S., Ch. 561,

Sec. 7 (part).)

Sec.1037.204.REVENUE BONDS. (a) The board may, without

an election, issue revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used 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 hospitals.

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, and 264.046-264.049, Health and Safety Code, for

issuance of revenue bonds by a county hospital authority. (Acts

63rd Leg., R.S., Ch. 561, Secs. 7 (part), 8(b) (part).)

Sec.1037.205.REFUNDING BONDS. (a) The board may, without

an election, 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 the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 63rd

Leg., R.S., Ch. 561, Secs. 7 (part), 8(a) (part), (b) (part).)

Sec.1037.206.MATURITY OF BONDS. District bonds must

mature not later than 40 years after the date of issuance. (Acts

63rd Leg., R.S., Ch. 561, Sec. 9 (part).)

Sec.1037.207.EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 63rd Leg.,

R.S., Ch. 561, Sec. 9 (part).)

Sec.1037.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) the transfer and issuance of the bonds; and

(3) profits made in the sale of the bonds. (Acts 63rd

Leg., R.S., Ch. 561, Sec. 22 (part).)

[Sections 1037.209-1037.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1037.251.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 and other obligations issued or assumed by the district for

hospital purposes;

(2) provide for the operation and maintenance of the

district and hospital system, based on the final budget;

(3) make improvements and additions to the hospital

system; and

(4) acquire necessary sites for the hospital system by

purchase, lease, or condemnation. (Acts 63rd Leg., R.S., Ch. 561,

Secs. 3 (part), 13 (part).)

Sec.1037.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed 75 cents on each $100 valuation of 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 63rd

Leg., R.S., Ch. 561, Secs. 3 (part), 13 (part).)

Sec.1037.253.TAX ASSESSOR-COLLECTOR. (a) The board

shall appoint a tax assessor-collector to assess and collect taxes

imposed by the district.

(b) The district tax assessor-collector must reside in the

district.

assessor-collector:

(1) the term of employment; and

(2) compensation. (Acts 63rd Leg., R.S., Ch. 561,

Sec. 16 (part).)

CHAPTER 1038. HARDEMAN COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1038.001. DEFINITIONS

Sec. 1038.002. AUTHORITY FOR OPERATION

Sec. 1038.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1038.004. DISTRICT TERRITORY

Sec. 1038.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1038.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

Sec. 1038.007. ELECTION DATE

[Sections 1038.008-1038.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1038.051. BOARD ELECTION; TERM

Sec. 1038.052. NOTICE OF ELECTION

Sec. 1038.053. QUALIFICATIONS FOR OFFICE

Sec. 1038.054. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE

Sec. 1038.055. BOARD VACANCY

Sec. 1038.056. OFFICERS

Sec. 1038.057. COMPENSATION; EXPENSES

Sec. 1038.058. VOTING REQUIREMENT

Sec. 1038.059. DISTRICT ADMINISTRATOR

Sec. 1038.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1038.061. ATTORNEY; ASSISTANT DISTRICT

ADMINISTRATOR

Sec. 1038.062. APPOINTMENT AND RECRUITMENT OF STAFF

AND EMPLOYEES

Sec. 1038.063. PERSONNEL CONTRACTS

Sec. 1038.064. RETIREMENT BENEFITS

[Sections 1038.065-1038.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1038.101. DISTRICT RESPONSIBILITY

Sec. 1038.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1038.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1038.104. HOSPITAL SYSTEM

Sec. 1038.105. RULES

Sec. 1038.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1038.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1038.108. EMINENT DOMAIN

Sec. 1038.109. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 1038.110. GIFTS AND ENDOWMENTS

Sec. 1038.111. CONSTRUCTION CONTRACTS

Sec. 1038.112. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1038.113. INTERLOCAL AGREEMENT

Sec. 1038.114. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT

Sec. 1038.115. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1038.116. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1038.117. NONPROFIT CORPORATION

Sec. 1038.118. AUTHORITY TO SUE AND BE SUED

[Sections 1038.119-1038.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1038.151. BUDGET

Sec. 1038.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1038.153. AMENDMENTS TO BUDGET

Sec. 1038.154. RESTRICTION ON EXPENDITURES

Sec. 1038.155. FISCAL YEAR

Sec. 1038.156. ANNUAL AUDIT

Sec. 1038.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS

Sec. 1038.158. FINANCIAL REPORT

Sec. 1038.159. DEPOSITORY

Sec. 1038.160. SPENDING AND INVESTMENT RESTRICTIONS

Sec. 1038.161. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1038.162-1038.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1038.201. GENERAL OBLIGATION BONDS

Sec. 1038.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1038.203. BOND ELECTION

Sec. 1038.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1038.205. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1038.206. REVENUE BONDS

Sec. 1038.207. REFUNDING BONDS

Sec. 1038.208. ADDITIONAL MEANS OF SECURING REPAYMENT

OF BONDS

Sec. 1038.209. USE OF BOND PROCEEDS

Sec. 1038.210. BONDS EXEMPT FROM TAXATION

[Sections 1038.211-1038.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1038.251. IMPOSITION OF AD VALOREM TAX

Sec. 1038.252. TAX RATE

Sec. 1038.253. TAX ASSESSOR-COLLECTOR

[Sections 1038.254-1038.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1038.301. DISSOLUTION; ELECTION

Sec. 1038.302. NOTICE OF ELECTION

Sec. 1038.303. BALLOT

Sec. 1038.304. ELECTION RESULTS

Sec. 1038.305. TRANSFER OR ADMINISTRATION OF ASSETS

Sec. 1038.306. SALE OR TRANSFER OF ASSETS AND

LIABILITIES

Sec. 1038.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES

Sec. 1038.308. REPORT; DISSOLUTION ORDER

CHAPTER 1038. HARDEMAN COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1038.001.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 Hardeman County Hospital

District. (New.)

Sec.1038.002.AUTHORITY FOR OPERATION. The district

operates and is administered and financed in accordance with

Section 9, Article IX, Texas Constitution, and has the rights,

powers, and duties provided by this chapter. (Acts 66th Leg., R.S.,

Ch. 214, Sec. 1 (part).)

Sec.1038.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 66th Leg., R.S., Ch. 214, Sec. 20 (part).)

Sec.1038.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of County

Commissioners Precincts Nos. 1, 2, and 4 of Hardeman County, Texas,

as those boundaries existed on May 17, 1979. (Acts 66th Leg., R.S.,

Ch. 214, Sec. 1 (part).)

Sec. 1038.005. 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 66th

Leg., R.S., Ch. 214, Sec. 19 (part).)

Sec.1038.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 66th Leg., R.S., Ch. 214, Sec. 19 (part).)

Sec.1038.007.ELECTION DATE. Except as provided by

Section 1038.051, Section 41.001(a), Election Code, does not apply

to an election held under this chapter. (Acts 66th Leg., R.S., Ch.

214, Secs. 3(a) (part), 6(a) (part), 21A(c) (part).)

[Sections 1038.008-1038.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1038.051.BOARD ELECTION; TERM. (a) The board

consists of seven directors elected from the district at large.

(b) The board shall declare the results of the election.

four-year terms are established under Section 285.081, Health and

Safety Code.

(d) Section 41.001, Election Code, applies to an election

held under this section. (Acts 66th Leg., R.S., Ch. 214, Secs. 3(d)

(part), (f) (part).)

Sec.1038.052.NOTICE OF ELECTION. At least 30 days before

the date of an election of directors, the board shall publish notice

of the election one time in a newspaper or newspapers that

individually or collectively have general circulation in the

district. (Acts 66th Leg., R.S., Ch. 214, Sec. 3(f) (part).)

Sec.1038.053.QUALIFICATIONS FOR OFFICE. (a) A person may

not be elected or appointed as a director unless the person is:

(1) a district resident; and

(2) a qualified voter.

(b) A person is not eligible to serve as a director if the

person is:

(1) the district administrator;

(2) the attorney for the district; or

(3) a district employee. (Acts 66th Leg., R.S., Ch.

214, Sec. 3(h).)

Sec. 1038.054. BOND; RECORD OF BOND AND OATH OR AFFIRMATION

OF OFFICE. (a) Each director may be required to execute a good and

sufficient bond for $5,000 that is:

(1) approved by the Commissioners Court of Hardeman

County;

(2) payable to the district; and

(3) conditioned on the faithful performance of the

director's duties.

(b) The district may provide for a director's bond with

district money.

affirmation of office shall be kept in the district's permanent

records. (Acts 66th Leg., R.S., Ch. 214, Secs. 3(a) (part), (g).)

Sec.1038.055.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 66th Leg., R.S., Ch. 214,

Sec. 3(f) (part).)

Sec.1038.056.OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its

members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

unexpired term. (Acts 66th Leg., R.S., Ch. 214, Sec. 3(i) (part).)

Sec.1038.057.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 66th Leg., R.S., Ch.

214, Sec. 3(i) (part).)

Sec.1038.058.VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business. (Acts 66th Leg., R.S., Ch. 214, Sec. 3(i) (part).)

Sec.1038.059.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 is entitled to the compensation determined by the board.

administrator may 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 other conditions the board may require.

(d) The board may pay for the bond with district money.

(Acts 66th Leg., R.S., Ch. 214, Sec. 4(a) (part).)

Sec.1038.060.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 66th

Leg., R.S., Ch. 214, Sec. 4(a) (part).)

Sec.1038.061.ATTORNEY; ASSISTANT DISTRICT ADMINISTRATOR.

(a) The board may appoint qualified persons as:

(1) the attorney for the district; and

(2) the assistant district administrator.

(b) The attorney for the district and the assistant district

administrator serve at the will of the board and are entitled to the

compensation determined by the board. (Acts 66th Leg., R.S., Ch.

214, Sec. 4(a) (part).)

Sec. 1038.062. APPOINTMENT AND RECRUITMENT 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 necessary.

(b) The district may employ fiscal agents, accountants,

architects, and attorneys the board considers proper.

authority to employ district employees, including technicians and

nurses.

(d) 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

66th Leg., R.S., Ch. 214, Secs. 4(a) (part), (h), 15.)

Sec.1038.063.PERSONNEL CONTRACTS. (a) The board may

contract to provide administrative or other personnel for the

operation of the hospital facilities.

(b) The term of the contract may not exceed 25 years. (Acts

66th Leg., R.S., Ch. 214, Sec. 4(e).)

Sec.1038.064.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 66th Leg., R.S., Ch.

214, Sec. 4(g).)

[Sections 1038.065-1038.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1038.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for:

(1) operating all hospital facilities; and

(2) providing medical and hospital care for the

district's needy inhabitants. (Acts 66th Leg., R.S., Ch. 214, Sec.

18 (part).)

Sec. 1038.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT. A political subdivision located wholly or partly

within the district may not impose a tax or issue bonds or other

obligations for hospital purposes or to provide medical care for

district residents. (Acts 66th Leg., R.S., Ch. 214, Sec. 18

(part).)

Sec.1038.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 66th Leg., R.S., Ch.

214, Sec. 4(a) (part).)

Sec.1038.104.HOSPITAL SYSTEM. (a) The district shall

provide for the establishment of a hospital system by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the system for hospital purposes.

(b) The hospital system may include any facilities the board

considers necessary for hospital care. (Acts 66th Leg., R.S., Ch.

214, Secs. 2 (part), 9(a) (part).)

Sec.1038.105.RULES. The board may adopt rules governing

the operation of the hospital, the hospital system, and the

district's staff and employees. (Acts 66th Leg., R.S., Ch. 214,

Sec. 4(a) (part).)

Sec.1038.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of making purchases and

expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 66th

Leg., R.S., Ch. 214, Sec. 9(b) (part).)

Sec. 1038.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location of buildings required to maintain an adequate hospital

system.

(b) The board may:

(1) purchase or lease property, including facilities

or equipment, for the district to use in the hospital system; and

(2) mortgage or pledge the property as security for

the payment of the purchase price.

individuals, corporations, or other legal entities.

(d) The board may sell or otherwise dispose of the

district's property. (Acts 66th Leg., R.S., Ch. 214, Secs. 4(b),

(f), 9(a) (part), (b) (part).)

Sec.1038.108.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in any type of property located in district

territory if the interest is necessary or convenient for the

district to exercise a power, right, or privilege conferred by this

chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, except the

district is not required to deposit in the trial court money or a

bond as provided by Section 21.021, Property Code.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 66th Leg., R.S., Ch. 214, Sec.

13(a).)

Sec.1038.109.COST OF RELOCATING OR ALTERING PROPERTY. In

exercising the power of eminent domain, if the board requires

relocating, raising, lowering, rerouting, changing the grade of, or

altering the construction of any railroad, electric transmission,

telegraph or telephone line, conduit, pole, or facility, or

pipeline, the district must bear the actual cost of relocating,

raising, lowering, rerouting, changing the grade, or altering the

construction to provide comparable replacement without enhancement

of facilities, after deducting the net salvage value derived from

the old facility. (Acts 66th Leg., R.S., Ch. 214, Sec. 13(b).)

Sec.1038.110.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust for the

purposes and under the directions, limitations, or other provisions

prescribed in writing by the donor that are consistent with the

proper management and objectives of the district. (Acts 66th Leg.,

R.S., Ch. 214, Sec. 17.)

Sec.1038.111.CONSTRUCTION CONTRACTS. A construction

contract that requires the expenditure of more than the amount

provided by Section 271.024, Local Government Code, may be made

only after competitive bidding as provided by Subchapter B, Chapter

271, Local Government Code. (Acts 66th Leg., R.S., Ch. 214, Sec.

9(b) (part).)

Sec.1038.112.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a district facility. (Acts 66th Leg., R.S., Ch. 214, Sec. 9(a)

(part).)

Sec.1038.113.INTERLOCAL AGREEMENT. The board may enter

into an interlocal agreement with another political subdivision to

operate the district. (Acts 66th Leg., R.S., Ch. 214, Sec. 4(d).)

Sec. 1038.114. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

CARE AND TREATMENT. (a) The board may contract with a county or

municipality located outside the district's boundaries to

reimburse the district for the care and treatment of a sick or

injured person of that county or municipality.

(b) The district may contract with this state or a federal

agency for reimbursement for the treatment of a sick or injured

person. (Acts 66th Leg., R.S., Ch. 214, Sec. 4(c) (part).)

Sec. 1038.115. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

INVESTIGATORY OR OTHER SERVICES. The board may contract with a

political subdivision or governmental agency as to the district to

provide investigatory or other services as to facilities for the

medical care, hospital, or welfare needs of district inhabitants.

(Acts 66th Leg., R.S., Ch. 214, Sec. 4(c) (part).)

Sec.1038.116.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 who are 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 costs of

the care and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district administrator may collect the amount from

the patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the district administrator, the board shall hold a

hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue a final order.

(f) A final order of the board may be appealed to the

district court. The substantial evidence rule applies to the

appeal. (Acts 66th Leg., R.S., Ch. 214, Sec. 16.)

Sec.1038.117.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.

(a-1) On or before December 31, 2009, the district may

create and sponsor a nonprofit corporation under the Texas

Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's

Texas Civil Statutes) or the Business Organizations Code, as

applicable, and may contribute money to or solicit money for the

corporation.

(b) The corporation may use district money only to provide

health care or other services the district is authorized to provide

under this chapter.

any manner in which the district may invest the district's money,

including investing money as authorized by Chapter 2256, Government

Code.

(d) The board shall establish controls to ensure that the

corporation uses its money as required by this section.

(e) This subsection and Subsection (a-1) expire December

31, 2009. (Acts 66th Leg., R.S., Ch. 214, Sec. 4(j).)

Sec.1038.118.AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued. (Acts 66th Leg., R.S., Ch.

214, Sec. 4(a) (part).)

[Sections 1038.119-1038.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1038.151.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 in 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; and

(7) the estimated tax rate required. (Acts 66th Leg.,

R.S., Ch. 214, Sec. 5 (part).)

Sec.1038.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) The board shall publish notice of the hearing in

accordance with Subchapter C, Chapter 551, Government Code.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the taxpayers

and that the law warrants. (Acts 66th Leg., R.S., Ch. 214, Sec. 5

(part).)

Sec.1038.153.AMENDMENTS TO BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 66th Leg., R.S., Ch. 214, Sec. 5 (part).)

Sec.1038.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 66th Leg., R.S., Ch. 214, Sec. 5 (part).)

Sec.1038.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that revenue bonds of the district

are outstanding; or

(2) more than once in a 24-month period. (Acts 66th

Leg., R.S., Ch. 214, Sec. 5 (part).)

Sec.1038.156.ANNUAL AUDIT. The board annually shall have

an audit made of the district's financial condition. (Acts 66th

Leg., R.S., Ch. 214, Sec. 5 (part).)

Sec. 1038.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS. The annual audit and other district records shall be open

to inspection at the district's principal office. (Acts 66th Leg.,

R.S., Ch. 214, Sec. 5 (part).)

Sec.1038.158.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 disbursements of that

money. (Acts 66th Leg., R.S., Ch. 214, Sec. 5 (part).)

Sec.1038.159.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 1038.160(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.

the power of the board to place a part of district money on time

deposit or to purchase certificates of deposit.

(d) The district may not deposit money with a bank in an

amount that exceeds the maximum amount secured by the Federal

Deposit Insurance Corporation unless the bank first executes a bond

or other security in an amount sufficient to secure from loss the

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation. (Acts 66th Leg., R.S., Ch. 214,

Sec. 10.)

Sec.1038.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by this chapter, 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 shall invest operating, depreciation, or

building reserves in accordance with Chapter 2256, Government Code.

(Acts 66th Leg., R.S., Ch. 214, Secs. 4(a) (part), 9(b) (part).)

Sec.1038.161.AUTHORITY TO BORROW MONEY; SECURITY. (a)

The board may borrow money 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 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.

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 66th

Leg., R.S., Ch. 214, Sec. 14A.)

[Sections 1038.162-1038.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1038.201.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 or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 66th Leg., R.S., Ch. 214, Sec. 6(a) (part).)

Sec.1038.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1038.201, 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

limit approved by the voters at the election authorizing the

imposition of the tax. (Acts 66th Leg., R.S., Ch. 214, Sec. 6(a)

(part).)

Sec.1038.203.BOND ELECTION. (a) The district may issue

bonds, other than refunding bonds, wholly or partly secured by an ad

valorem tax only if the bonds are authorized by a majority of the

district voters voting at an election held in the district.

(b) Except as otherwise provided by this chapter, the

election shall be conducted in accordance with Chapter 1251,

Government Code. (Acts 66th Leg., R.S., Ch. 214, Secs. 6(a) (part),

8A (part).)

Sec.1038.204.MATURITY OF GENERAL OBLIGATION BONDS.

District general obligation bonds must mature not later than 40

years after the date of issuance. (Acts 66th Leg., R.S., Ch. 214,

Sec. 6(c) (part).)

Sec.1038.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 66th Leg.,

R.S., Ch. 214, Sec. 6(c) (part).)

Sec.1038.206.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, equip, or

renovate buildings or improvements for hospital purposes; or

(2) acquire sites to be used 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 hospitals.

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, and 264.046-264.049, Health and Safety Code, for

issuance of revenue bonds by a county hospital authority. (Acts

66th Leg., R.S., Ch. 214, Sec. 8 (part).)

Sec.1038.207.REFUNDING BONDS. (a) The board may, without

an election, issue refunding bonds to refund outstanding

indebtedness issued or assumed by the district.

(b) Refunding bonds may be:

(1) sold, with the proceeds of the refunding bonds

applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness.

anniversary of the date of issuance. (Acts 66th Leg., R.S., Ch.

214, Secs. 6(a) (part), (b) (part), 8 (part), 14B(b) (part).)

Sec. 1038.208. 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

1038.202 and revenue and other sources as authorized by Section

1038.206. (Acts 66th Leg., R.S., Ch. 214, Sec. 8A (part).)

Sec.1038.209.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) costs of construction of a project or facility to

be provided through the bonds, including the payment of related

professional services and expenses. (Acts 66th Leg., R.S., Ch.

214, Sec. 8B.)

Sec.1038.210.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) profits made in the sale of the bonds. (Acts 66th

Leg., R.S., Ch. 214, Sec. 20 (part).)

[Sections 1038.211-1038.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1038.251.IMPOSITION OF AD VALOREM TAX. (a) The board

may impose a tax on all property in the district subject to district

taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

interest on revenue bonds issued under this chapter. (Acts 66th

Leg., R.S., Ch. 214, Secs. 11(a) (part), 14(a) (part), (c), (d).)

Sec.1038.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed the limit approved by the voters at the

election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on

each $100 valuation of all taxable property in the district.

income of the district from sources other than taxation. (Acts 66th

Leg., R.S., Ch. 214, Secs. 11(a) (part), (b) (part), 14(b).)

Sec.1038.253.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 66th Leg., R.S., Ch. 214, Sec.

14(f).)

[Sections 1038.254-1038.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec.1038.301.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.

a petition requesting an election that is signed by a number of

district residents equal to at least 15 percent of the registered

voters in the district.

(d) The order calling the election must state:

(1) the nature of the election, including the

proposition to appear on the ballot;

(2) the date of the election;

(3) the hours during which the polls will be open; and

(4) the location of the polling places. (Acts 66th

Leg., R.S., Ch. 214, Secs. 21A(a), (b), (c) (part).)

Sec.1038.302.NOTICE OF ELECTION. (a) The board shall

give notice of an election under this subchapter by publishing once

a week for two consecutive weeks the election order in a newspaper

with general circulation in the district.

(b) The first publication of the notice must appear not

later than the 35th day before the date set for the election. (Acts

66th Leg., R.S., Ch. 214, Sec. 21A(d) (part).)

Sec.1038.303.BALLOT. The ballot for an election under

this subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the Hardeman County Hospital

District." (Acts 66th Leg., R.S., Ch. 214, Sec. 21A(d) (part).)

Sec.1038.304.ELECTION RESULTS. (a) If a majority of the

votes in an election under this subchapter favor dissolution, the

board shall find that the district is dissolved.

(b) If a majority of the votes in the election do not favor

dissolution, the board shall continue to administer the district

and another election on the question of dissolution may not be held

before the first anniversary of the date of the most recent election

to dissolve the district. (Acts 66th Leg., R.S., Ch. 214, Sec.

21A(e).)

Sec.1038.305.TRANSFER OR ADMINISTRATION OF ASSETS. (a)

If a majority of the votes in the election held under this

subchapter favor dissolution, the board shall:

(1) transfer the land, buildings, improvements,

equipment, and other assets that belong to the district to Hardeman

County or another governmental agency in Hardeman 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 agency assumes all debts and obligations of the

district at the time of the transfer and the district is dissolved.

(Acts 66th Leg., R.S., Ch. 214, Secs. 21A(f), (g).)

Sec.1038.306.SALE OR TRANSFER OF ASSETS AND LIABILITIES.

(a) The district may not be dissolved unless the board provides for

the sale or transfer of the district's assets and liabilities to

another person.

(b) The dissolution of the district and the sale or transfer

of the district's assets or liabilities may not contravene a trust

indenture or bond resolution relating to the district's outstanding

bonds. The dissolution and sale or transfer does not diminish or

impair the rights of a holder of an outstanding bond, warrant, or

other obligation of the district.

liabilities must satisfy the debt and bond obligations of the

district in a manner that protects the interests of district

residents, including the residents' collective property rights in

the district's assets.

(d) The district may not transfer or dispose of the

district's assets except for due compensation unless:

(1) the transfer is made to another governmental

agency that serves the district; and

(2) the transferred assets are to be used for the

benefit of the district's residents.

(e) A grant from federal funds is an obligation to be repaid

in satisfaction. (Acts 66th Leg., R.S., Ch. 214, Secs. 21A(m),

(n).)

Sec. 1038.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES. (a) After the board finds that the district is dissolved,

the board shall:

(1) determine the debt owed by the district; and

(2) impose on the property included in the district's

tax rolls a tax that is in proportion of the debt to the property

value.

(b) On the payment of all outstanding debts and obligations

of the district, the board shall order the secretary to return to

each district taxpayer the taxpayer's pro rata share of all unused

tax money.

surplus tax money be credited to the taxpayer's county taxes. If a

taxpayer requests the credit, the board shall direct the secretary

to transmit the money to the county tax assessor-collector. (Acts

66th Leg., R.S., Ch. 214, Secs. 21A(h), (i), (j).)

Sec.1038.308.REPORT; DISSOLUTION ORDER. (a) After the

district has paid all district debts and has disposed of all

district money and other assets as prescribed by this subchapter,

the board shall file a written report with the Commissioners Court

of Hardeman County summarizing the board's actions in dissolving

the district.

(b) Not later than the 10th day after the date the

Commissioners Court of Hardeman County receives the report and

determines that the requirements of this subchapter have been

fulfilled, the commissioners court shall enter an order dissolving

the district and releasing the board from any further duty or

obligation. (Acts 66th Leg., R.S., Ch. 214, Secs. 21A(k), (l).)

CHAPTER 1039. HEMPHILL COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1039.001. DEFINITIONS

Sec. 1039.002. AUTHORITY FOR OPERATION

Sec. 1039.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1039.004. DISTRICT TERRITORY

Sec. 1039.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1039.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1039.007-1039.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1039.051. BOARD ELECTION; TERM

Sec. 1039.052. ALTERNATIVE DIRECTOR ELECTION

Sec. 1039.053. NOTICE OF ELECTION

Sec. 1039.054. QUALIFICATIONS FOR OFFICE

Sec. 1039.055. BOARD VACANCY

Sec. 1039.056. OFFICERS

Sec. 1039.057. COMPENSATION; EXPENSES

Sec. 1039.058. VOTING REQUIREMENT

Sec. 1039.059. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR

Sec. 1039.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1039.061. EMERGENCY ACTION

Sec. 1039.062. EMPLOYEES; APPOINTMENT OF STAFF

[Sections 1039.063-1039.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1039.101. DISTRICT RESPONSIBILITY

Sec. 1039.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1039.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1039.104. HOSPITAL SYSTEM

Sec. 1039.105. RULES

Sec. 1039.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1039.107. DISTRICT PROPERTY, FACILITIES,

EQUIPMENT, AND SERVICES

Sec. 1039.108. EMINENT DOMAIN

Sec. 1039.109. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 1039.110. GIFTS AND ENDOWMENTS

Sec. 1039.111. CONSTRUCTION CONTRACTS

Sec. 1039.112. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1039.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR TREATMENT

Sec. 1039.114. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1039.115. JOINT OWNERSHIP ARRANGEMENT

Sec. 1039.116. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1039.117. AUTHORITY TO SUE AND BE SUED

Sec. 1039.118. ELECTION DATE

[Sections 1039.119-1039.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1039.151. BUDGET

Sec. 1039.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1039.153. AMENDMENTS TO BUDGET

Sec. 1039.154. RESTRICTION ON EXPENDITURES

Sec. 1039.155. FISCAL YEAR

Sec. 1039.156. ANNUAL AUDIT

Sec. 1039.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS

Sec. 1039.158. DEPOSITORY

Sec. 1039.159. SPENDING AND INVESTMENT RESTRICTIONS

Sec. 1039.160. TAX EXEMPTION

[Sections 1039.161-1039.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1039.201. GENERAL OBLIGATION BONDS

Sec. 1039.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1039.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1039.204. REVENUE BONDS

Sec. 1039.205. REFUNDING BONDS

Sec. 1039.206. MATURITY OF BONDS

Sec. 1039.207. EXECUTION OF BONDS

Sec. 1039.208. BONDS EXEMPT FROM TAXATION

[Sections 1039.209-1039.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1039.251. IMPOSITION OF AD VALOREM TAX

Sec. 1039.252. TAX RATE

Sec. 1039.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1039. HEMPHILL COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1039.001.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 Hemphill County Hospital

District. (New.)

Sec.1039.002.AUTHORITY FOR OPERATION. The district

operates and is administered and financed in accordance with

Section 9, Article IX, Texas Constitution, and has the rights,

powers, and duties provided by this chapter. (Acts 66th Leg., R.S.,

Ch. 424, Sec. 1 (part).)

Sec.1039.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 66th Leg., R.S., Ch. 424, Sec. 22 (part).)

Sec.1039.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Hemphill County,

Texas. (Acts 66th Leg., R.S., Ch. 424, Sec. 1 (part).)

Sec. 1039.005. 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 66th

Leg., R.S., Ch. 424, Sec. 21 (part).)

Sec.1039.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 66th Leg., R.S., Ch. 424, Sec. 21 (part).)

[Sections 1039.007-1039.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1039.051.BOARD ELECTION; TERM. (a) Except as

provided by Section 1039.052, 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. (Acts 66th Leg., R.S., Ch. 424, Sec. 4(c) (part).)

Sec.1039.052.ALTERNATIVE DIRECTOR ELECTION. (a) As an

alternative to electing directors at large, the board may:

(1) provide for all or some directors to be elected

from single-member districts; and

(2) devise and implement for the directors' election a

plan of apportionment as determined to be in the best interest of

the district and district inhabitants.

(b) Before implementing the apportionment plan, the plan

must be approved by a majority of the district voters voting at an

election held for that purpose.

election required for the issuance of bonds. (Acts 66th Leg., R.S.,

Ch. 424, Sec. 3(f).)

Sec.1039.053.NOTICE OF ELECTION. At least 30 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper or newspapers that

individually or collectively have general circulation in the

district. (Acts 66th Leg., R.S., Ch. 424, Sec. 4(c) (part).)

Sec.1039.054.QUALIFICATIONS FOR OFFICE. (a) A person may

not be elected or appointed as a director unless the person is:

(1) a district resident; and

(2) a qualified voter.

(b) A person is not eligible to serve as a director if the

person is:

(1) the district administrator; or

(2) a district employee. (Acts 66th Leg., R.S., Ch.

424, Sec. 4(d).)

Sec.1039.055.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 66th Leg., R.S., Ch. 424,

Sec. 4(c) (part).)

Sec.1039.056.OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its

members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

unexpired term. (Acts 66th Leg., R.S., Ch. 424, Sec. 4(e) (part).)

Sec.1039.057.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 66th Leg., R.S., Ch.

424, Sec. 4(e) (part).)

Sec.1039.058.VOTING REQUIREMENT. A concurrence of three

directors is sufficient in any matter relating to district

business. (Acts 66th Leg., R.S., Ch. 424, Sec. 4(e) (part).)

Sec. 1039.059. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR. (a) The board shall appoint a qualified person to

serve as district administrator of the hospital system and

ancillary health care system.

(b) The board may appoint an assistant administrator.

administrator serve at the will of the board and are entitled to 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 other conditions the board may require.

(Acts 66th Leg., R.S., Ch. 424, Sec. 5(c) (part).)

Sec.1039.060.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 66th

Leg., R.S., Ch. 424, Sec. 5(c) (part).)

Sec.1039.061.EMERGENCY ACTION. (a) In an emergency, the

district administrator may take any lawful action necessary to

preserve district assets or protect patient health and safety.

(b) As soon as practicable after an emergency action is

taken, the district administrator shall report the action to the

board, and the board shall amend the annual budget to reflect any

costs of the action. (Acts 66th Leg., R.S., Ch. 424, Sec. 6A.)

Sec.1039.062.EMPLOYEES; APPOINTMENT OF STAFF. (a) The

board may appoint to the staff any doctors the board considers

necessary for the efficient operation of the hospital system and

the ancillary health care system and may make temporary

appointments as necessary.

(b) The district may employ fiscal agents, accountants,

architects, and additional attorneys the board considers proper.

authority to hire employees, including technicians and nurses, for

the district, the hospital system, and the ancillary health care

system. (Acts 66th Leg., R.S., Ch. 424, Secs. 5(d), (e), 17.)

[Sections 1039.063-1039.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1039.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for operating all hospital facilities for

providing medical and hospital care for the district's needy

inhabitants. (Acts 66th Leg., R.S., Ch. 424, Sec. 20 (part).)

Sec. 1039.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT. A political subdivision located wholly or

partly within the district may not impose a tax or issue bonds or

other obligations for hospital purposes or to provide medical care

for district residents. (Acts 66th Leg., R.S., Ch. 424, Sec. 20

(part).)

Sec.1039.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and ancillary health care system and the district's money and

resources. (Acts 66th Leg., R.S., Ch. 424, Sec. 5(a) (part).)

Sec.1039.104.HOSPITAL SYSTEM. (a) The district shall

provide for the establishment of a hospital system by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the system for hospital purposes.

(b) The hospital system and ancillary health care system may

include equipment, facilities, and services the board considers

necessary for hospital care and ancillary health care, including:

(1) domiciliary care and treatment of sick or injured

patients;

(2) geriatric services;

(3) outpatient clinics;

(4) rural health clinics;

(5) convalescent home facilities;

(6) physician's offices;

(7) home health services;

(8) long-term care;

(9) skilled nursing care;

(10) intermediate nursing care;

(11) assisted living facilities;

(12) hospice care;

(13) ambulatory surgery centers;

(14) urgent care facilities; and

(15) operation of a mobile emergency medical service.

(Acts 66th Leg., R.S., Ch. 424, Secs. 2 (part), 11(a) (part).)

Sec.1039.105.RULES. The board may adopt rules governing

the operation of the district, the hospital system and ancillary

health care system, and the district's staff and employees. (Acts

66th Leg., R.S., Ch. 424, Sec. 5(b) (part).)

Sec.1039.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method of making purchases and expenditures by

and for the district; and

(2) all accounting and control procedures. (Acts 66th

Leg., R.S., Ch. 424, Sec. 11(d) (part).)

Sec. 1039.107. DISTRICT PROPERTY, FACILITIES, EQUIPMENT,

AND SERVICES. (a) The board shall determine the type, number, and

location, either inside or outside the district, of facilities and

services required to maintain an adequate hospital system and

ancillary health care system.

(b) The board may:

(1) acquire by lease, purchase, or lease to purchase

property, including facilities, supplies, and equipment, for the

district for use in the hospital system and ancillary health care

system; and

(2) mortgage or pledge the property as security for

the payment of the purchase price.

or part of the district's property of any nature, including the

district's hospital, ancillary health care or other facilities,

buildings, supplies, or equipment, to a public or private entity on

terms the board finds are in the best interest of the district's

inhabitants. (Acts 66th Leg., R.S., Ch. 424, Secs. 11(a) (part),

(c), (e) (part).)

Sec.1039.108.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in any type of property located in district

territory if the interest is necessary or convenient for the

district to exercise a right, power, 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, 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 66th Leg., R.S., Ch. 424, Sec.

15(a).)

Sec.1039.109.COST OF RELOCATING OR ALTERING PROPERTY. In

exercising the power of eminent domain, if the board requires

relocating, raising, lowering, rerouting, changing the grade, or

altering the construction of any railroad, electric transmission,

telegraph or telephone line, conduit, pole, or facility, or

pipeline, the district must bear the actual cost of relocating,

raising, lowering, rerouting, changing the grade, or altering the

construction to provide comparable replacement without enhancement

of facilities, after deducting the net salvage value derived from

the old facility. (Acts 66th Leg., R.S., Ch. 424, Sec. 15(b).)

Sec.1039.110.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 66th Leg., R.S., Ch. 424,

Sec. 19.)

Sec.1039.111.CONSTRUCTION CONTRACTS. A construction

contract must be made in the manner provided by Subchapter B,

Chapter 271, Local Government Code. (Acts 66th Leg., R.S., Ch. 424,

Sec. 11(d) (part).)

Sec.1039.112.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract with one or

more public or private entities relating to a district facility or

service. (Acts 66th Leg., R.S., Ch. 424, Sec. 11(b) (part).)

Sec. 1039.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

TREATMENT. The board may contract with a county, a municipality,

this state, or a federal agency for the treatment of a sick or

injured person. (Acts 66th Leg., R.S., Ch. 424, Sec. 5(f) (part).)

Sec. 1039.114. 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 medical,

hospital, or welfare needs of district inhabitants. (Acts 66th

Leg., R.S., Ch. 424, Sec. 5(f) (part).)

Sec.1039.115.JOINT OWNERSHIP ARRANGEMENT. The board may

enter into a joint ownership arrangement for the district with a

public or private entity to provide management or operating

services if the board determines that the joint ownership

arrangement is in the district's best interest and does not violate

Section 52, Article III, Texas Constitution. (Acts 66th Leg.,

R.S., Ch. 424, Sec. 11(b) (part).)

Sec.1039.116.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 who are 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 costs of

the care and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district administrator may collect the amount from

the patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the district administrator, the board shall hold a

hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue a final order.

(f) A final order of the board may be appealed to the

district court. The substantial evidence rule applies to the

appeal. (Acts 66th Leg., R.S., Ch. 424, Secs. 18(b), (c), (d), (e),

(f).)

Sec.1039.117.AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued. (Acts 66th Leg., R.S., Ch.

424, Sec. 5(b) (part).)

Sec.1039.118.ELECTION DATE. Notwithstanding Section

41.001(a), Election Code, the board may choose the date for an

election held under this chapter. (Acts 66th Leg., R.S., Ch. 424,

Sec. 3(e).)

[Sections 1039.119-1039.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1039.151.BUDGET. (a) The district administrator

shall prepare an annual budget for approval by the board.

(b) The budget must contain a complete financial statement

of:

(1) the outstanding obligations of the district;

(2) the cash on hand in 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; and

(7) the estimated tax rate required. (Acts 66th Leg.,

R.S., Ch. 424, Secs. 6(c), (d).)

Sec.1039.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) Notice of the hearing must be published one time in a

newspaper of general circulation in the district at least 10 days

before the date of the hearing.

the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the taxpayers

and that the law warrants. (Acts 66th Leg., R.S., Ch. 424, Secs.

6(e), (f) (part).)

Sec.1039.153.AMENDMENTS TO BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 66th Leg., R.S., Ch. 424, Sec. 6(f) (part).)

Sec.1039.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 66th Leg., R.S., Ch. 424, Sec. 6(f) (part).)

Sec.1039.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed more than once in a

24-month period. (Acts 66th Leg., R.S., Ch. 424, Sec. 6(a).)

Sec.1039.156.ANNUAL AUDIT. (a) As soon as practicable

after the end of each district fiscal year, the board shall have an

audit made of the district's finances that contains a detailed

accounting of disbursements.

(b) The board shall select a qualified independent

accounting firm to perform the audit. (Acts 66th Leg., R.S., Ch.

424, Sec. 6(b) (part).)

Sec. 1039.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS. The annual audit and other district records shall be open

to inspection at the district's principal office. (Acts 66th Leg.,

R.S., Ch. 424, Sec. 6(b) (part).)

Sec.1039.158.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 1039.159(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.

the power of the board to place a part of district money on time

deposit or to purchase certificates of deposit of a state or

national bank that is a member of the Federal Deposit Insurance

Corporation.

(d) The district may not deposit money with a bank in an

amount that exceeds the maximum amount insured by the Federal

Deposit Insurance Corporation unless the bank first executes a bond

or provides other security in an amount sufficient to secure from

loss the district money that exceeds the amount insured by the

Federal Deposit Insurance Corporation. (Acts 66th Leg., R.S., Ch.

424, Sec. 12.)

Sec.1039.159.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Section 1039.107(c) and by

Subchapter E, 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 reserves only in funds or securities specified by

Subchapter A, Chapter 2256, Government Code. (Acts 66th Leg.,

R.S., Ch. 424, Secs. 5(a) (part), 11(e) (part).)

Sec.1039.160.TAX EXEMPTION. All property owned by the

district is exempt from taxation by this state or a political

subdivision of this state. (Acts 66th Leg., R.S., Ch. 424, Sec. 22

(part).)

[Sections 1039.161-1039.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1039.201.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:

(1) the purchase, construction, acquisition, repair,

or renovation of buildings or improvements; and

(2) equipping buildings or improvements for hospital

and ancillary health care purposes. (Acts 66th Leg., R.S., Ch. 424,

Sec. 7(a) (part).)

Sec.1039.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1039.201, 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 75

cents on each $100 valuation of all taxable property in the

district. (Acts 66th Leg., R.S., Ch. 424, Sec. 7(a) (part).)

Sec.1039.203.GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue bonds payable from taxes only if the bonds are

authorized by a majority of the district voters.

(b) The order calling the election shall 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; and

(5) the maximum maturity of the bonds.

copy of the election order in a newspaper of general circulation in

the district once a week for two consecutive weeks. The first

publication must appear at least 30 days before the date of the

election. (Acts 66th Leg., R.S., Ch. 424, Sec. 7(a) (part).)

Sec.1039.204.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital and ancillary

health care purposes; or

(2) acquire sites to be used for hospital and

ancillary health care 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, hospital system, or ancillary health care

system.

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, and 264.046-264.049, Health and Safety Code, for

issuance of revenue bonds by a county hospital authority. (Acts

66th Leg., R.S., Ch. 424, Sec. 8 (part).)

Sec.1039.205.REFUNDING BONDS. (a) The board may, without

an election, issue refunding bonds payable from taxes or revenue to

refund outstanding indebtedness issued, incurred, or assumed by the

district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bonds

applied to the payment of the indebtedness to be refunded; or

(2) exchanged wholly or partly for not less than the

principal amount of outstanding indebtedness. (Acts 66th Leg.,

R.S., Ch. 424, Secs. 7(a) (part), 8 (part), 9 (part).)

Sec.1039.206.MATURITY OF BONDS. District bonds payable

from taxes or revenue must mature not later than 40 years after the

date of issuance. (Acts 66th Leg., R.S., Ch. 424, Sec. 10 (part).)

Sec.1039.207.EXECUTION OF BONDS. (a) The board president

shall execute, in the district's name, district bonds payable from

taxes or revenue.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 66th Leg.,

R.S., Ch. 424, Sec. 10 (part).)

Sec.1039.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) the transfer and issuance of the bonds; and

(3) profits made in the sale of the bonds. (Acts 66th

Leg., R.S., Ch. 424, Sec. 22 (part).)

[Sections 1039.209-1039.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1039.251.IMPOSITION OF AD VALOREM TAX. (a) The board

shall annually impose a tax on all property in the district subject

to district taxation.

(b) The board shall impose the tax to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

or interest on revenue bonds issued under this chapter. (Acts 66th

Leg., R.S., Ch. 424, Secs. 13(a) (part), 16(a) (part).)

Sec.1039.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed 75 cents on each $100 valuation of 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 66th

Leg., R.S., Ch. 424, Secs. 3(b) (part), 13(a) (part), (b) (part).)

Sec.1039.253.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 66th Leg., R.S., Ch. 424, Sec.

16(c).)

CHAPTER 1040. HASKELL COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1040.001. DEFINITIONS

Sec. 1040.002. AUTHORITY FOR OPERATION

Sec. 1040.003. POLITICAL SUBDIVISION

Sec. 1040.004. DISTRICT TERRITORY

Sec. 1040.005. CORRECTION OF INVALID PROCEDURES

[Sections 1040.006-1040.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1040.051. BOARD; TERM

Sec. 1040.052. QUALIFICATIONS FOR OFFICE

Sec. 1040.053. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE

Sec. 1040.054. OFFICERS

Sec. 1040.055. COMPENSATION; EXPENSES

Sec. 1040.056. VOTING REQUIREMENT

Sec. 1040.057. EMPLOYEES

Sec. 1040.058. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

Sec. 1040.059. SEAL

[Sections 1040.060-1040.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1040.101. DISTRICT RESPONSIBILITY

Sec. 1040.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION

Sec. 1040.103. MANAGEMENT AND CONTROL

Sec. 1040.104. RULES

Sec. 1040.105. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1040.106. EMINENT DOMAIN

Sec. 1040.107. GIFTS AND ENDOWMENTS

Sec. 1040.108. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1040.109. AUTHORITY TO SUE AND BE SUED

[Sections 1040.110-1040.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1040.151. BUDGET

Sec. 1040.152. PROPOSED BUDGET: NOTICE AND HEARING

Sec. 1040.153. FISCAL YEAR

Sec. 1040.154. ANNUAL AUDIT

Sec. 1040.155. DEPOSITORY OR TREASURER

[Sections 1040.156-1040.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1040.201. GENERAL OBLIGATION BONDS

Sec. 1040.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1040.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1040.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1040.205. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1040.206. REFUNDING BONDS

[Sections 1040.207-1040.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1040.251. IMPOSITION OF AD VALOREM TAX

Sec. 1040.252. TAX RATE

Sec. 1040.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1040. HASKELL COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1040.001.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 Haskell County Hospital

District. (New.)

Sec.1040.002.AUTHORITY FOR OPERATION. The district

operates in accordance with and has the powers and responsibilities

provided by Section 9, Article IX, Texas Constitution. (Acts 60th

Leg., R.S., Ch. 528, Sec. 1 (part).)

Sec.1040.003.POLITICAL SUBDIVISION. The district is a

political subdivision of this state. (Acts 60th Leg., R.S., Ch.

528, Sec. 18 (part).)

Sec.1040.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Haskell County,

except the district does not include any territory located in the

Stamford Hospital District as the Stamford Hospital District

existed on June 14, 1967. (Acts 60th Leg., R.S., Ch. 528, Sec. 1

(part).)

Sec.1040.005.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 60th Leg., R.S., Ch. 528, Sec. 19 (part).)

[Sections 1040.006-1040.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1040.051.BOARD; TERM. (a) The board consists of six

directors appointed by the Commissioners Court of Haskell County.

(b) Directors serve staggered two-year terms, with three

directors appointed each year. (Acts 60th Leg., R.S., Ch. 528, Sec.

3 (part).)

Sec.1040.052.QUALIFICATIONS FOR OFFICE. A person may not

be appointed as a director unless the person:

(1) is a district resident; and

(2) owns land in the district subject to taxation.

(Acts 60th Leg., R.S., Ch. 528, Sec. 3 (part).)

Sec. 1040.053. BOND; RECORD OF BOND AND OATH OR AFFIRMATION

OF OFFICE. (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 or

affirmation of office shall be deposited with the district's

depository bank for safekeeping. (Acts 60th Leg., R.S., Ch. 528,

Sec. 3 (part).)

Sec.1040.054.OFFICERS. The board shall elect from among

its members a president, a vice president, and a secretary. (Acts

60th Leg., R.S., Ch. 528, Sec. 3 (part).)

Sec.1040.055.COMPENSATION; EXPENSES. A director serves

without compensation but may be reimbursed for actual expenses

incurred in the performance of official duties on approval of the

expenses by the entire board. (Acts 60th Leg., R.S., Ch. 528, Sec.

4 (part).)

Sec.1040.056.VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business. (Acts 60th Leg., R.S., Ch. 528, Sec. 3 (part).)

Sec.1040.057.EMPLOYEES. The board may employ a general

manager and other necessary professional and clerical personnel.

(Acts 60th Leg., R.S., Ch. 528, Sec. 9 (part).)

Sec.1040.058.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

Except as provided by Section 1040.053, 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. 528, Sec. 9

(part).)

Sec.1040.059.SEAL. The board may adopt a seal for the

district. (Acts 60th Leg., R.S., Ch. 528, Sec. 9 (part).)

[Sections 1040.060-1040.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1040.101.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. 528, Secs. 2 (part), 14 (part).)

Sec. 1040.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION. Haskell County or a municipality in Haskell County may

not impose a tax for hospital purposes. (Acts 60th Leg., R.S., Ch.

528, Sec. 14 (part).)

Sec.1040.103.MANAGEMENT AND CONTROL. The management and

control of the district is vested in the board. (Acts 60th Leg.,

R.S., Ch. 528, Sec. 4 (part).)

Sec.1040.104.RULES. (a) The board may adopt rules

governing the operation of the district, including district

facilities.

(b) On approval by the board, the rules may be published in

booklet form at district expense and made available to any taxpayer

on request. (Acts 60th Leg., R.S., Ch. 528, Sec. 9 (part).)

Sec.1040.105.PURCHASING AND ACCOUNTING PROCEDURES. (a)

The board may prescribe the method and manner of making purchases

and expenditures by and for the district.

(b) The board shall prescribe:

(1) all accounting and control procedures; and

(2) the method of purchasing necessary supplies,

materials, and equipment. (Acts 60th Leg., R.S., Ch. 528, Sec. 9

(part).)

Sec.1040.106.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.

the district is not required to:

(1) pay in advance or provide bond or other security

for costs in the trial court;

(2) provide bond for the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 60th Leg., R.S., Ch. 528, Sec.

11.)

Sec.1040.107.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 60th Leg., R.S., Ch. 528,

Sec. 16.)

Sec.1040.108.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient is admitted to a district facility, the board shall

have an inquiry made into the circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for

the patient's support.

(b) If an agent designated by the district to handle the

inquiry determines that the patient or those relatives cannot pay

all or part of the costs of the care and treatment in the hospital,

the amount of the costs that cannot be paid becomes a charge against

the district.

are liable to pay for all or part of the costs of the patient's care

and treatment, the patient or those relatives shall be ordered to

pay to the district's treasurer a specified amount each week for the

patient's support. The amount ordered must be proportionate to

financial ability and may not exceed the actual per capita cost of

maintenance.

(d) The district may collect the amount from the patient's

estate, or from a relative who is legally liable for the patient's

support, in the manner provided by law for the collection of

expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay or doubt

in the mind of the district's designated agent, the board shall hold

a hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue an appropriate order.

(f) Either party to the dispute may appeal the order to the

district court. (Acts 60th Leg., R.S., Ch. 528, Sec. 15.)

Sec.1040.109.AUTHORITY TO SUE AND BE SUED. As a

governmental agency, the district may sue and be sued in its own

name in any court in this state. (Acts 60th Leg., R.S., Ch. 528,

Sec. 18 (part).)

[Sections 1040.110-1040.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1040.151.BUDGET. The board annually shall require a

budget to be 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. 528, Sec. 10 (part).)

Sec.1040.152.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 Haskell County not later than

the 10th day before the date of the hearing.

(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. 528, Sec. 10 (part).)

Sec.1040.153.FISCAL YEAR. The district operates on a

fiscal year that begins on October 1 and ends on September 30.

(Acts 60th Leg., R.S., Ch. 528, Sec. 10 (part).)

Sec.1040.154.ANNUAL AUDIT. (a) The board annually shall

have an independent audit made of the district's books and records

for the fiscal year.

(b) Not later than December 31 each year, the audit shall be

filed:

(1) with the comptroller; and

(2) at the district office. (Acts 60th Leg., R.S., Ch.

528, Sec. 10 (part).)

Sec.1040.155.DEPOSITORY OR TREASURER. (a) The board by

resolution shall designate a bank or banks in Haskell County as the

district's depository or treasurer. A designated bank serves for

two years and until a successor is designated.

(b) All income received by the district shall be deposited

with the district depository.

provided for securing county funds. (Acts 60th Leg., R.S., Ch. 528,

Secs. 5 (part), 12.)

[Sections 1040.156-1040.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1040.201.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 or improvements; and

(2) equipping buildings and improvements for hospital

purposes. (Acts 60th Leg., R.S., Ch. 528, Sec. 8 (part).)

Sec.1040.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a)

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 general obligation bonds issued by the district under

Section 1040.201 as the bonds mature.

(b) The tax required by this section together with any

maintenance and operation tax the district imposes 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. 528, Sec. 8 (part).)

Sec.1040.203.GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the district voters voting at an

election held for that purpose.

(b) The board may order the election on its own motion.

(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 date 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 Haskell County once each week for two

consecutive weeks before the date of the election. The first

publication must occur at least 14 days before the date of the

election. (Acts 60th Leg., R.S., Ch. 528, Sec. 8 (part).)

Sec.1040.204.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. 528,

Sec. 8 (part).)

Sec.1040.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds. (Acts

60th Leg., R.S., Ch. 528, Sec. 8 (part).)

Sec.1040.206.REFUNDING BONDS. (a) The board may, without

an election, issue refunding bonds in the manner provided by this

subchapter to refund outstanding bonds 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 bonds to be refunded; or

(2) exchanged wholly or partly for not less than a

similar amount of the outstanding bonds and the unpaid matured

interest on those bonds. (Acts 60th Leg., R.S., Ch. 528, Sec. 8

(part).)

[Sections 1040.207-1040.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1040.251.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;

(2) provide for the operation and maintenance of the

hospital or hospital system;

(3) make improvements and additions to the hospital

system; and

(4) acquire necessary sites for the hospital system by

purchase, lease, or condemnation. (Acts 60th Leg., R.S., Ch. 528,

Secs. 5 (part), 10 (part).)

Sec.1040.252.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. 528, Sec. 5

(part).)

Sec.1040.253.TAX ASSESSOR-COLLECTOR. The tax

assessor-collector of Haskell County shall assess and collect taxes

imposed by the district. (Acts 60th Leg., R.S., Ch. 528, Secs. 5

(part), 10 (part).)

CHAPTER 1041. HIGGINS-LIPSCOMB HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1041.001. DEFINITIONS

Sec. 1041.002. AUTHORITY FOR OPERATION

Sec. 1041.003. POLITICAL SUBDIVISION

Sec. 1041.004. DISTRICT TERRITORY

[Sections 1041.005-1041.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1041.051. BOARD ELECTION; TERM

Sec. 1041.052. BOARD VACANCY

Sec. 1041.053. OFFICERS

Sec. 1041.054. COMPENSATION; EXPENSES

Sec. 1041.055. EMPLOYEES

Sec. 1041.056. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

Sec. 1041.057. SEAL

[Sections 1041.058-1041.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1041.101. DISTRICT RESPONSIBILITY

Sec. 1041.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1041.103. MANAGEMENT AND CONTROL

Sec. 1041.104. HOSPITAL SYSTEM

Sec. 1041.105. RULES

Sec. 1041.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1041.107. EMINENT DOMAIN

Sec. 1041.108. GIFTS AND ENDOWMENTS

Sec. 1041.109. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1041.110. AUTHORITY TO SUE AND BE SUED

[Sections 1041.111-1041.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1041.151. BUDGET

Sec. 1041.152. PROPOSED BUDGET: NOTICE AND HEARING

Sec. 1041.153. FISCAL YEAR

Sec. 1041.154. ANNUAL AUDIT

Sec. 1041.155. DEPOSITORY OR TREASURER

[Sections 1041.156-1041.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1041.201. GENERAL OBLIGATION BONDS

Sec. 1041.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1041.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1041.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1041.205. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1041.206. REFUNDING BONDS

[Sections 1041.207-1041.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1041.251. IMPOSITION OF AD VALOREM TAX

Sec. 1041.252. TAX RATE

Sec. 1041.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1041. HIGGINS-LIPSCOMB HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1041.001.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 Higgins-Lipscomb Hospital

District. (New.)

Sec.1041.002.AUTHORITY FOR OPERATION. The district

operates and is financed in accordance with Section 9, Article IX,

Texas Constitution. (Acts 64th Leg., R.S., Ch. 666, Sec. 1

(part).)

Sec.1041.003.POLITICAL SUBDIVISION. The district is a

political subdivision of this state. (Acts 64th Leg., R.S., Ch.

666, Sec. 16 (part).)

Sec.1041.004.DISTRICT TERRITORY. The district is

composed of the territory described by:

(1) Section 1, Chapter 666, Acts of the 64th

Legislature, Regular Session, 1975; and

(2) Section 1, Chapter 667, Acts of the 64th

Legislature, Regular Session, 1975. (Acts 64th Leg., R.S., Ch.

666, Secs. 1 (part), 4A(h) (part); New.)

[Sections 1041.005-1041.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1041.051.BOARD ELECTION; TERM. (a) The board

consists of six directors elected from the district at large.

(b) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms with

three directors elected each year; and

(2) a directors' election shall be held on the uniform

election date in May of each year.

a directors' election, those persons shall draw lots to determine

which person is elected.

(d) A director's term begins on June 1 following the

director's election. (Acts 64th Leg., R.S., Ch. 666, Secs. 3A(a),

4C(c) (part), (d), (e) (part), (f).)

Sec.1041.052.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 64th Leg., R.S., Ch. 666,

Sec. 3A(b).)

Sec.1041.053.OFFICERS. (a) The board shall elect a

president, vice president, and secretary-treasurer from among its

members.

(b) Each officer of the board serves until the next

directors' election. (Acts 64th Leg., R.S., Ch. 666, Sec. 4(a)

(part).)

Sec.1041.054.COMPENSATION; EXPENSES. A director serves

without compensation but may be reimbursed for actual expenses

incurred in the performance of official duties on approval of the

expenses by the entire board. (Acts 64th Leg., R.S., Ch. 666, Sec.

4(b).)

Sec.1041.055.EMPLOYEES. The board may employ a general

manager, attorneys, financial advisors, bookkeepers, and

architects. (Acts 64th Leg., R.S., Ch. 666, Sec. 7(a) (part).)

Sec.1041.056.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

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 reasonable hours.

(Acts 64th Leg., R.S., Ch. 666, Sec. 7(b).)

Sec.1041.057.SEAL. The board may adopt a seal for the

district. (Acts 64th Leg., R.S., Ch. 666, Sec. 7(a) (part).)

[Sections 1041.058-1041.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1041.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for:

(1) operating all hospital facilities; and

(2) providing hospital care for the district's needy

inhabitants. (Acts 64th Leg., R.S., Ch. 666, Sec. 12(a) (part).)

Sec. 1041.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT. (a) A political subdivision within the

district, other than the district, may not impose a tax or issue

bonds or other obligations for hospital purposes or to provide

medical care for district inhabitants.

(b) A governmental entity other than the district may not

impose a tax or issue bonds or other obligations on property in the

district for hospital purposes or to provide medical care for needy

district inhabitants. (Acts 64th Leg., R.S., Ch. 666, Sec. 12(a)

(part).)

Sec.1041.103.MANAGEMENT AND CONTROL. The board has full

management and control of all district business, including the

power to:

(1) negotiate and contract with any person;

(2) purchase or lease land; and

(3) construct, equip, operate, and maintain a hospital

system. (Acts 64th Leg., R.S., Ch. 666, Sec. 4(a) (part).)

Sec.1041.104.HOSPITAL SYSTEM. The district shall provide

for the establishment of a hospital system to provide medical and

hospital care to the district's residents. (Acts 64th Leg., R.S.,

Ch. 666, Sec. 2 (part).)

Sec.1041.105.RULES. (a) The board may adopt rules

governing the operation of the district, including district

facilities.

(b) On approval by the board, the rules may be published in

booklet form at district expense and made available to any resident

on request. (Acts 64th Leg., R.S., Ch. 666, Sec. 7(c).)

Sec.1041.106.PURCHASING AND ACCOUNTING PROCEDURES. (a)

The board may prescribe the method and manner of making purchases

and expenditures for the district.

(b) The board shall prescribe:

(1) all accounting and control procedures; and

(2) the method of purchasing necessary supplies,

materials, and equipment. (Acts 64th Leg., R.S., Ch. 666, Sec.

7(a) (part).)

Sec.1041.107.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 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.

required to:

(1) pay in advance or provide a bond or other security

for costs in the trial court;

(2) provide a bond for the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 64th Leg., R.S., Ch. 666, Sec. 9.)

Sec.1041.108.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 64th Leg., R.S., Ch. 666,

Sec. 14.)

Sec.1041.109.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient from Lipscomb County is admitted to a district

facility, the board shall have an inquiry made into the

circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for

the patient's support.

(b) If an agent designated by the district determines that

the patient or those relatives cannot pay all or part of the costs

of the care and treatment in the hospital, the expense of that care

becomes a charge against the district.

the patient or those relatives are liable to pay for all or part of

the costs of the patient's care and treatment, the patient or those

relatives shall be ordered to pay the district's treasurer 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 may collect the amount from the patient's

estate, or from any relative who is legally liable for the patient's

support, in the manner provided by law for the collection of

expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, the board

shall hold a hearing and, after calling witnesses, shall resolve

the dispute.

(f) Either party to the dispute may appeal the district's

determination to the district court. (Acts 64th Leg., R.S., Ch.

666, Sec. 13.)

Sec.1041.110.AUTHORITY TO SUE AND BE SUED. The district

may sue and be sued in its own name in any court of this state. (Acts

64th Leg., R.S., Ch. 666, Sec. 16 (part).)

[Sections 1041.111-1041.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1041.151.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 64th Leg., R.S., Ch. 666, Sec. 8(b) (part).)

Sec.1041.152.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.

(1) appear at the time and place designated in the

notice; and

(2) be heard regarding any item included in the

proposed budget. (Acts 64th Leg., R.S., Ch. 666, Sec. 8(b)

(part).)

Sec.1041.153.FISCAL YEAR. The district operates on a

fiscal year that begins on October 1 and ends on September 30.

(Acts 64th Leg., R.S., Ch. 666, Sec. 8(a) (part).)

Sec.1041.154.ANNUAL AUDIT. (a) The board annually shall

have an independent audit made of the district's books and records

for the fiscal year.

(b) Not later than December 31 of each year, the audit shall

be filed:

(1) with the comptroller; and

(2) at the district office. (Acts 64th Leg., R.S., Ch.

666, Sec. 8(a) (part).)

Sec.1041.155.DEPOSITORY OR TREASURER. (a) The board by

resolution shall designate a bank or banks in the district as the

district's depository or treasurer. A designated bank serves for

two years and until a successor is designated.

(b) All income received by the district shall be deposited

with the district depository.

provided for securing county funds. (Acts 64th Leg., R.S., Ch. 666,

Secs. 5(b) (part), 10.)

[Sections 1041.156-1041.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1041.201.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 or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 64th Leg., R.S., Ch. 666, Sec. 6(a) (part).)

Sec.1041.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a)

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 general obligation bonds issued under Section 1041.201.

(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 64th Leg., R.S., Ch. 666, Sec. 6(a) (part).)

Sec.1041.203.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.

(b) The board may order the election on its own motion.

(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; and

(5) the maximum interest rate provided by law.

(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 64th Leg., R.S., Ch. 666, Sec. 6(b) (part).)

Sec.1041.204.MATURITY OF GENERAL OBLIGATION BONDS.

District general obligation bonds must mature not later than 40

years after the date of issuance. (Acts 64th Leg., R.S., Ch. 666,

Sec. 6(b) (part).)

Sec.1041.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds. (Acts

64th Leg., R.S., Ch. 666, Sec. 6(a) (part).)

Sec.1041.206.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 64th Leg., R.S., Ch. 666, Secs. 6(b) (part),

[Sections 1041.207-1041.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1041.251.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;

(2) provide for operation and maintenance of the

hospital system;

(3) make improvements and additions to the hospital

system; and

(4) acquire necessary sites by purchase, lease, or

condemnation. (Acts 64th Leg., R.S., Ch. 666, Secs. 5(a) (part),

(b) (part), 8(b) (part).)

Sec.1041.252.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 64th Leg., R.S., Ch. 666, Sec. 5(a)

(part).)

Sec.1041.253.TAX ASSESSOR-COLLECTOR. (a) Except as

provided by Subsection (b), the tax assessor-collector of Lipscomb

County shall assess and collect taxes imposed by the district.

(b) By majority vote the board may appoint a district tax

assessor-collector under Section 285.041, Health and Safety Code.

(Acts 64th Leg., R.S., Ch. 666, Secs. 5(b) (part), (c) (part), 8(b)

(part).)

CHAPTER 1042. HOOD COUNTY HOSPITAL DISTRICT OF HOOD COUNTY, TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1042.001. DEFINITIONS

Sec. 1042.002. AUTHORITY FOR CREATION

Sec. 1042.003. DISTRICT TERRITORY

Sec. 1042.004. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1042.005. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1042.006-1042.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1042.051. BOARD; TERMS

Sec. 1042.052. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE

Sec. 1042.053. BOARD VACANCY

Sec. 1042.054. OFFICERS

Sec. 1042.055. COMPENSATION; EXPENSES

Sec. 1042.056. DISTRICT ADMINISTRATOR

Sec. 1042.057. EMPLOYEES

Sec. 1042.058. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

[Sections 1042.059-1042.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1042.101. DISTRICT RESPONSIBILITY

Sec. 1042.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1042.103. MANAGEMENT AND CONTROL OF DISTRICT

Sec. 1042.104. HOSPITAL SYSTEM

Sec. 1042.105. RULES

Sec. 1042.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1042.107. SURPLUS PROPERTY

Sec. 1042.108. EMINENT DOMAIN

Sec. 1042.109. GIFTS AND ENDOWMENTS

Sec. 1042.110. CONTRACTS WITH POLITICAL SUBDIVISIONS

FOR HOSPITAL AND MEDICAL CARE

Sec. 1042.111. PAYMENT FOR TREATMENT; PROCEDURE

[Sections 1042.112-1042.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1042.151. BUDGET

Sec. 1042.152. PROPOSED BUDGET: NOTICE AND HEARING

Sec. 1042.153. FISCAL YEAR

Sec. 1042.154. ANNUAL AUDIT

Sec. 1042.155. DEPOSITORY

[Sections 1042.156-1042.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1042.201. BONDS

Sec. 1042.202. TAX TO PAY BONDS

Sec. 1042.203. BOND ELECTION

Sec. 1042.204. MATURITY OF BONDS

Sec. 1042.205. EXECUTION OF BONDS

[Sections 1042.206-1042.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1042.251. IMPOSITION OF AD VALOREM TAX

Sec. 1042.252. TAX RATE

Sec. 1042.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1042. HOOD COUNTY HOSPITAL DISTRICT OF HOOD COUNTY, TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1042.001.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 Hood County Hospital District

of Hood County, Texas. (New.)

Sec.1042.002.AUTHORITY FOR CREATION. The district of

Hood County, Texas, is created under the authority of Section 9,

Article IX, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 852,

Sec. 1.)

Sec.1042.003.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Hood County. (Acts

62nd Leg., R.S., Ch. 852, Sec. 2.)

Sec. 1042.004. 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 62nd Leg., R.S., Ch. 852, Sec. 18 (part).)

Sec.1042.005.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 62nd Leg., R.S., Ch. 852, Sec. 18 (part).)

[Sections 1042.006-1042.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1042.051.BOARD; TERMS. (a) The board consists of:

(1) the members of the Commissioners Court of Hood

County, including the county judge; and

(2) four persons appointed by the county judge.

(b) One director appointed by the county judge must be:

(1) a doctor of medicine; or

(2) a doctor of osteopathy.

62nd Leg., R.S., Ch. 852, Secs. 4(a) (part), 5(a) (part), (b), (c).)

Sec. 1042.052. BOND; RECORD OF BOND AND OATH OR AFFIRMATION

OF OFFICE. (a) Each appointed director 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

director's duties.

(b) The district shall pay for a director's bond.

affirmation of office shall be deposited with the district's

depository for safekeeping. (Acts 62nd Leg., R.S., Ch. 852, Sec.

6(a).)

Sec.1042.053.BOARD VACANCY. If a vacancy occurs in the

office of director, the county judge shall appoint a director.

(Acts 62nd Leg., R.S., Ch. 852, Sec. 5(d).)

Sec.1042.054.OFFICERS. The board shall elect from among

its members a president, a secretary, and a treasurer at the first

meeting after directors are appointed under Section 1042.051.

(Acts 62nd Leg., R.S., Ch. 852, Sec. 6(b).)

Sec.1042.055.COMPENSATION; EXPENSES. A director serves

without compensation but is entitled to reimbursement for necessary

expenses incurred in the performance of official duties. (Acts

62nd Leg., R.S., Ch. 852, Sec. 6(c).)

Sec.1042.056.DISTRICT ADMINISTRATOR. (a) The board may

employ a district administrator to manage the operations of the

hospital system.

(b) The district administrator may:

(1) employ necessary personnel to perform the services

provided by the hospital system; and

(2) appoint to the staff any physicians considered

advisable for the efficient operation of the hospital system.

(Acts 62nd Leg., R.S., Ch. 852, Sec. 12(e) (part).)

Sec.1042.057.EMPLOYEES. The board may employ an

attorney, general manager, bookkeeper, architect, and other

employees necessary for the efficient operation of the district.

(Acts 62nd Leg., R.S., Ch. 852, Sec. 12(e) (part).)

Sec.1042.058.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

The board shall:

(1) maintain all district records, including books,

accounts, notices, minutes, and all 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 62nd Leg., R.S., Ch. 852, Sec. 12(b).)

[Sections 1042.059-1042.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1042.101.DISTRICT RESPONSIBILITY. The district shall

provide all necessary hospital and medical care for the district's

needy inhabitants. (Acts 62nd Leg., R.S., Ch. 852, Sec. 3 (part).)

Sec. 1042.102. 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 62nd Leg., R.S., Ch. 852, Sec. 3 (part).)

Sec.1042.103.MANAGEMENT AND CONTROL OF DISTRICT. The

management and control of the district is vested in the board, and

the board has full power to manage and control the district. (Acts

62nd Leg., R.S., Ch. 852, Secs. 5(a) (part), 12(a) (part).)

Sec.1042.104.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 62nd Leg., R.S., Ch. 852, Sec. 3

(part).)

Sec.1042.105.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 62nd Leg., R.S., Ch. 852, Sec. 12(c).)

Sec.1042.106.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 62nd Leg., R.S., Ch. 852, Sec. 12(e) (part).)

Sec.1042.107.SURPLUS PROPERTY. The board may sell or

otherwise dispose of district property if the board finds the

property exceeds the district's present and future needs. (Acts

62nd Leg., R.S., Ch. 852, Sec. 12(h) (part).)

Sec.1042.108.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in real, personal, or mixed property located in

district territory if the interest is necessary or convenient for

the district to exercise a power or duty 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.

required to:

(1) pay in advance or provide a bond or other security

for costs in the trial court; or

(2) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 62nd Leg., R.S., Ch. 852, Sec.

15.)

Sec.1042.109.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust and

administered by the board under the directions, limitations, or

other provisions prescribed in writing by the donor that are not

inconsistent with the proper management of the district. (Acts

62nd Leg., R.S., Ch. 852, Sec. 12(f).)

Sec. 1042.110. CONTRACTS WITH POLITICAL SUBDIVISIONS FOR

HOSPITAL AND MEDICAL CARE. The board may contract with another

political subdivision to provide hospital and medical care for

needy persons who reside outside the district. (Acts 62nd Leg.,

R.S., Ch. 852, Sec. 12(g).)

Sec.1042.111.PAYMENT FOR TREATMENT; PROCEDURE. (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

who is liable for the patient's support to pay for the medical and

hospital care received by the patient.

relative legally liable for the patient's support cannot pay all or

part of the costs of the patient's care, the expense of the care

becomes a charge against the district.

(d) If the patient or a relative legally liable for the

patient's support can pay for all or part of the costs of the

patient's care, the board shall order the patient or relative to pay

to the 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 who is 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 62nd Leg., R.S., Ch. 852, Sec. 14.)

[Sections 1042.112-1042.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1042.151.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 62nd Leg., R.S., Ch. 852, Sec. 13(b).)

Sec.1042.152.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 11th day before the date of the hearing.

has 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 62nd Leg., R.S., Ch. 852, Secs. 13(c), (d).)

Sec.1042.153.FISCAL YEAR. The district's fiscal year is

from October 1 to September 30. (Acts 62nd Leg., R.S., Ch. 852,

Sec. 13(a).)

Sec.1042.154.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 62nd Leg., R.S., Ch. 852, Sec.

12(d).)

Sec.1042.155.DEPOSITORY. (a) The board by resolution

shall designate a bank in Hood County 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

62nd Leg., R.S., Ch. 852, Sec. 16.)

[Sections 1042.156-1042.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1042.201.BONDS. The district may issue bonds to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements; and

(2) equip buildings for hospital purposes. (Acts 62nd

Leg., R.S., Ch. 852, Secs. 9(a) (part), 10(a) (part).)

Sec.1042.202.TAX TO PAY BONDS. The board may issue bonds

under Section 1042.201 only if the board imposes 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.

(Acts 62nd Leg., R.S., Ch. 852, Sec. 10(c).)

Sec.1042.203.BOND ELECTION. (a) The board may issue

bonds under Section 1042.201 only if the bonds are authorized by a

majority of district voters voting in an election held for that

purpose. The total face value of the bonds may not exceed the amount

specified in the election order.

(b) The board may order a bond election at any time.

(1) the time of the election;

(2) the location of the polling places;

(3) the form of the ballots;

(4) the presiding judge for each polling place;

(5) the purpose of the bond issuance;

(6) the amount of the bonds to be authorized;

(7) the maximum interest rate of the bonds; and

(8) the maximum maturity of the bonds.

(d) A substantial copy of the election order shall be

published 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 not later than the

15th day before the date of the election.

(e) A copy of the election results must be filed with the

county clerk and become a public record. (Acts 62nd Leg., R.S., Ch.

852, Secs. 4(b), (c), (d) (part), 9(a) (part), (b), (d), 10(a)

(part).)

Sec.1042.204.MATURITY OF BONDS. District bonds must

mature not later than 40 years after the date of issuance. (Acts

62nd Leg., R.S., Ch. 852, Sec. 9(c).)

Sec.1042.205.EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds. (Acts

62nd Leg., R.S., Ch. 852, Sec. 10(b) (part).)

[Sections 1042.206-1042.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1042.251.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 may be used only to:

(1) pay the interest on and create a sinking fund for

bonds issued under this chapter;

(2) provide for the operation and maintenance of the

district and hospital system;

(3) make improvements and additions to the hospital

system; and

(4) acquire sites for additions to the hospital

system. (Acts 62nd Leg., R.S., Ch. 852, Secs. 8(a) (part), (c).)

Sec.1042.252.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 62nd Leg., R.S., Ch. 852, Sec. 8(a)

(part).)

Sec.1042.253.TAX ASSESSOR-COLLECTOR. The tax

assessor-collector for Hood County shall collect taxes for the

district. (Acts 62nd Leg., R.S., Ch. 852, Sec. 8(d) (part).)

CHAPTER 1043. HOPKINS COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1043.001. DEFINITIONS

Sec. 1043.002. AUTHORITY FOR OPERATION

Sec. 1043.003. ESSENTIAL PUBLIC FUNCTION; POLITICAL

SUBDIVISION

Sec. 1043.004. DISTRICT TERRITORY

Sec. 1043.005. CORRECTION OF INVALID PROCEDURES

[Sections 1043.006-1043.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1043.051. BOARD ELECTION; TERM

Sec. 1043.052. NOTICE OF ELECTION

Sec. 1043.053. QUALIFICATIONS FOR OFFICE

Sec. 1043.054. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE

Sec. 1043.055. BOARD VACANCY

Sec. 1043.056. OFFICERS

Sec. 1043.057. COMPENSATION; EXPENSES

Sec. 1043.058. VOTING REQUIREMENT

Sec. 1043.059. APPOINTMENT AND RECRUITMENT OF STAFF

AND EMPLOYEES

Sec. 1043.060. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

Sec. 1043.061. SEAL

[Sections 1043.062-1043.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1043.101. DISTRICT RESPONSIBILITY

Sec. 1043.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION

Sec. 1043.103. MANAGEMENT AND CONTROL

Sec. 1043.104. HOSPITAL SYSTEM

Sec. 1043.105. RULES

Sec. 1043.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1043.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1043.108. PROPERTY, FACILITIES, AND EQUIPMENT FOR

STAFF PHYSICIANS

Sec. 1043.109. EMINENT DOMAIN

Sec. 1043.110. GIFTS AND ENDOWMENTS

Sec. 1043.111. JOINT OWNERSHIP ARRANGEMENT

Sec. 1043.112. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1043.113. NONPROFIT CORPORATION

Sec. 1043.114. AUTHORITY TO SUE AND BE SUED

[Sections 1043.115-1043.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1043.151. BUDGET

Sec. 1043.152. PROPOSED BUDGET: NOTICE AND HEARING

Sec. 1043.153. FISCAL YEAR

Sec. 1043.154. ANNUAL AUDIT

Sec. 1043.155. DEPOSITORY OR TREASURER

Sec. 1043.156. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1043.157-1043.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1043.201. GENERAL OBLIGATION BONDS

Sec. 1043.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1043.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1043.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1043.205. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1043.206. REVENUE BONDS

Sec. 1043.207. REFUNDING BONDS

Sec. 1043.208. BONDS EXEMPT FROM TAXATION

[Sections 1043.209-1043.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1043.251. IMPOSITION OF AD VALOREM TAX

Sec. 1043.252. TAX RATE

Sec. 1043.253. ELECTION TO INCREASE MAXIMUM TAX RATE

Sec. 1043.254. TAX ASSESSOR-COLLECTOR

[Sections 1043.255-1043.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1043.301. DISSOLUTION; ELECTION

Sec. 1043.302. NOTICE OF ELECTION

Sec. 1043.303. BALLOT

Sec. 1043.304. ELECTION RESULTS

Sec. 1043.305. SALE OR TRANSFER OF ASSETS AND

LIABILITIES

CHAPTER 1043. HOPKINS COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1043.001.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 Hopkins County Hospital

District. (New.)

Sec.1043.002.AUTHORITY FOR OPERATION. The district

operates under the authority of and has the powers and

responsibilities provided by Section 11, Article IX, Texas

Constitution. (Acts 57th Leg., 1st C.S., Ch. 43, Secs. 1 (part),

5(a) (part).)

Sec. 1043.003. ESSENTIAL PUBLIC FUNCTION; POLITICAL

SUBDIVISION. The district is:

(1) a public entity performing an essential public

function; and

(2) a political subdivision of this state. (Acts 57th

Leg., 1st C.S., Ch. 43, Secs. 6D(d) (part), 18 (part).)

Sec.1043.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Hopkins County.

(Acts 57th Leg., 1st C.S., Ch. 43, Sec. 1 (part).)

Sec.1043.005.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 57th Leg., 1st C.S., Ch. 43, Sec. 19

(part).)

[Sections 1043.006-1043.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1043.051.BOARD ELECTION; TERM. (a) The board

consists of seven elected directors.

(b) Directors serve staggered three-year terms.

in May of each year to elect the appropriate number of directors.

(Acts 57th Leg., 1st C.S., Ch. 43, Sec. 3 (part).)

Sec.1043.052.NOTICE OF ELECTION. At least 10 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper of general circulation in

Hopkins County. (Acts 57th Leg., 1st C.S., Ch. 43, Sec. 3 (part).)

Sec.1043.053.QUALIFICATIONS FOR OFFICE. (a) A person may

not be elected or appointed as a director unless the person is:

(1) a district resident;

(2) a qualified voter of the district; and

(3) more than 21 years of age at the time of election

or appointment.

(b) A district employee may not serve as a director. (Acts

57th Leg., 1st C.S., Ch. 43, Sec. 3 (part).)

Sec. 1043.054. BOND; RECORD OF BOND AND OATH OR AFFIRMATION

OF OFFICE. (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 or

affirmation of office shall be deposited with the district's

depository bank for safekeeping. (Acts 57th Leg., 1st C.S., Ch. 43,

Sec. 3 (part).)

Sec.1043.055.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 less than the

number that constitutes a majority 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 57th Leg., 1st

C.S., Ch. 43, Sec. 3 (part).)

Sec.1043.056.OFFICERS. The board shall elect a

president, vice president, and secretary. (Acts 57th Leg., 1st

C.S., Ch. 43, Sec. 3 (part).)

Sec.1043.057.COMPENSATION; EXPENSES. A director serves

without compensation but may be reimbursed for actual expenses

incurred in the performance of official duties on approval of the

expenses by the entire board. (Acts 57th Leg., 1st C.S., Ch. 43,

Sec. 4 (part).)

Sec.1043.058.VOTING REQUIREMENT. A concurrence of a

majority of the directors is sufficient in any matter relating to

district business. (Acts 57th Leg., 1st C.S., Ch. 43, Sec. 3

(part).)

Sec. 1043.059. APPOINTMENT AND RECRUITMENT OF STAFF AND

EMPLOYEES. (a) The board may employ a general manager, attorney,

bookkeeper, and architect.

(b) The board may spend district money to recruit

physicians, nurses, or other trained medical personnel to the

hospital staff.

other costs of a medical technician or nursing student who:

(1) is enrolled and in good standing in an accredited

hospital, school, or college; and

(2) contractually agrees to serve as a district

employee on terms prescribed by the board.

(d) Subject to Subsection (e), the board may provide

financial inducements, including income subsidies or guarantees

and reimbursement of relocation expenses, to a full-time medical

intern or resident physician serving in a hospital who

contractually agrees to:

(1) reside and practice in Hopkins County; and

(2) provide care and treatment to its needy residents.

(e) The board may offer financial inducements only to

attract qualified physicians who possess medical expertise that is

not available in the county. (Acts 57th Leg., 1st C.S., Ch. 43,

Secs. 8 (part), 8A.)

Sec.1043.060.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

Except as provided by Section 1043.054, 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 57th Leg., 1st C.S., Ch. 43, Sec. 8

(part).)

Sec.1043.061.SEAL. The board may adopt a seal for the

district. (Acts 57th Leg., 1st C.S., Ch. 43, Sec. 8 (part).)

[Sections 1043.062-1043.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1043.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for providing medical and hospital care for the

district's needy and indigent residents. (Acts 57th Leg., 1st

C.S., Ch. 43, Sec. 13 (part).)

Sec. 1043.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION. Hopkins County or a municipality in Hopkins County may

not impose a tax for hospital purposes. (Acts 57th Leg., 1st C.S.,

Ch. 43, Sec. 13 (part).)

Sec.1043.103.MANAGEMENT AND CONTROL. The management and

control of the district is vested in the board. (Acts 57th Leg.,

1st C.S., Ch. 43, Sec. 4 (part).)

Sec.1043.104.HOSPITAL SYSTEM. The district may provide

for the establishment of a hospital or hospital system to provide

medical and hospital care to the district's needy residents. (Acts

57th Leg., 1st C.S., Ch. 43, Sec. 2 (part).)

Sec.1043.105.RULES. (a) The board may adopt rules

governing the operation of the district, including district

facilities.

(b) On approval by the board, the rules may be published in

booklet form at district expense and made available to any taxpayer

on request. (Acts 57th Leg., 1st C.S., Ch. 43, Sec. 8 (part).)

Sec.1043.106.PURCHASING AND ACCOUNTING PROCEDURES. (a)

The board may prescribe the method and manner of making purchases

and expenditures by and for the district.

(b) The board shall prescribe:

(1) all accounting and control procedures; and

(2) the method of purchasing necessary supplies,

materials, and equipment. (Acts 57th Leg., 1st C.S., Ch. 43, Sec. 8

(part).)

Sec. 1043.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location, either inside or outside the district, of facilities

required to maintain an adequate hospital system and ancillary

health care system and the type of equipment necessary for

hospital care and ancillary health care services, including:

(1) domiciliary care and treatment of sick or injured

patients;

(2) geriatric services;

(3) outpatient clinics;

(4) rural health clinics;

(5) convalescent home facilities;

(6) physician's offices;

(7) home health services;

(8) durable medical equipment;

(9) long-term care;

(10) skilled nursing care;

(11) intermediate nursing care;

(12) hospice care;

(13) ambulatory surgery centers;

(14) urgent care facilities;

(15) operation of a mobile emergency medical service;

(16) extended care facilities;

(17) assisted living facilities; and

(18) any other facility or equipment the board

considers necessary for the delivery of hospital, medical, and

ancillary health care services.

(b) The board may:

(1) acquire by lease, purchase, or lease to purchase

property, including facilities, supplies, and equipment, for the

district for use in the hospital system and ancillary health care

system; and

(2) mortgage or pledge the property as security for

the payment of the purchase price.

or part of the district's property for the district, including

facilities, supplies, or equipment, to a public or private entity,

but only to the extent necessary to maintain an adequate hospital

system for the residents of Hopkins County. (Acts 57th Leg., 1st

C.S., Ch. 43, Sec. 6C.)

Sec. 1043.108. PROPERTY, FACILITIES, AND EQUIPMENT FOR

STAFF PHYSICIANS. (a) The board shall determine the type, number,

and location of buildings required to establish and maintain office

facilities for staff physicians as necessary to provide adequate

medical care.

(b) The board may:

(1) acquire property, including equipment, and

construct facilities for the district for use by staff physicians;

and

(2) mortgage or pledge the property or facilities as

security for the payment of the purchase or construction price.

(1) lease the office facilities and equipment to staff

physicians; and

(2) sell or otherwise dispose of the property,

including facilities and equipment. (Acts 57th Leg., 1st C.S., Ch.

43, Sec. 6A.)

Sec.1043.109.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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 57th Leg., 1st C.S., Ch. 43, Sec.

10.)

Sec.1043.110.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 any nonprofit purpose 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 57th Leg., 1st C.S., Ch. 43,

Sec. 16.)

Sec.1043.111.JOINT OWNERSHIP ARRANGEMENT. (a) The board

may enter into a joint ownership arrangement for the district with

one or more public or private entities for:

(1) the provision of management or operating services;

and

(2) the ownership of all or part of real property,

facilities, equipment, or supplies.

(b) Before the board enters into the arrangement, the board

must determine that the arrangement is:

(1) in the district's best interest; and

(2) for a public purpose of the district. (Acts 57th

Leg., 1st C.S., Ch. 43, Sec. 7A.)

Sec.1043.112.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient is admitted to a district facility, the board shall

have an inquiry made into the circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for

the patient's support.

(b) The district without charge shall provide to a patient

who resides in the district the care and treatment that the patient

or a relative of the patient who is legally responsible for the

patient's support cannot pay.

are liable to pay for all or part of the costs of the patient's care

and treatment, the patient or those relatives shall be ordered to

pay to the district's treasurer 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 may collect the amount from the patient's

estate, or from any relative who is legally liable for the patient's

support, in the manner provided by law for the collection of

expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the district's designated agent, the board shall hold

a hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue an appropriate order.

(f) Either party to the dispute may appeal the order to the

district court. (Acts 57th Leg., 1st C.S., Ch. 43, Secs. 14(a),

(c), (d), (e), (f).)

Sec.1043.113.NONPROFIT CORPORATION. (a) The district may

become a member of a nonprofit corporation or enter into an

agreement with a nonprofit corporation to serve the purposes of

this chapter. Under an agreement with a nonprofit corporation, the

district may require that:

(1) the nonprofit corporation grant the district the

power to appoint one or more members of the corporation's board of

directors;

(2) the nonprofit corporation obtain the district's

consent before changing the corporation's articles of

incorporation or bylaws or before taking other action; and

(3) the district receive all or part of the net assets

of the nonprofit corporation on the corporation's dissolution,

merger, or consolidation.

(b) The district is not liable for any debt, obligation, or

other liability of the nonprofit corporation.

make payments to or otherwise provide money to the nonprofit

corporation. (Acts 57th Leg., 1st C.S., Ch. 43, Sec. 6B.)

Sec.1043.114.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 57th Leg., 1st C.S., Ch. 43,

Sec. 18 (part).)

[Sections 1043.115-1043.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1043.151.BUDGET. The board annually shall require a

budget to be 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 57th Leg., 1st C.S., Ch. 43, Sec. 9 (part).)

Sec.1043.152.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 Hopkins County not later than

the 10th day before the date of the hearing.

(1) appear at the time and place designated in the

notice; and

(2) be heard regarding any item included in the

proposed budget. (Acts 57th Leg., 1st C.S., Ch. 43, Sec. 9 (part).)

Sec.1043.153.FISCAL YEAR. The district operates on a

fiscal year that begins on October 1 and ends on September 30.

(Acts 57th Leg., 1st C.S., Ch. 43, Sec. 9 (part).)

Sec.1043.154.ANNUAL AUDIT. (a) The board annually shall

have an independent audit made of the district's books and records

for the fiscal year.

(b) Not later than December 31 each year, the audit shall be

filed:

(1) with the comptroller; and

(2) at the district office. (Acts 57th Leg., 1st C.S.,

Ch. 43, Sec. 9 (part).)

Sec.1043.155.DEPOSITORY OR TREASURER. (a) The board by

resolution shall designate a bank or banks in Hopkins County as the

district's depository or treasurer. A designated bank serves for

two years and until a successor is designated.

(b) All income received by the district shall be deposited

with the district depository.

provided for securing county funds. (Acts 57th Leg., 1st C.S., Ch.

43, Subsec. (a), Sec. 5 (part), Sec. 11.)

Sec.1043.156.AUTHORITY TO BORROW MONEY; SECURITY. (a) If

the board declares that money is not available to meet authorized

district obligations, the board may:

(1) by majority vote borrow money to satisfy the

obligations in an amount not to exceed, at any one time in the

aggregate, 10 percent of the annual district operational expenses

for the prior fiscal year; and

(2) by unanimous vote borrow additional money if the

obligations exceed the amount described by Subdivision (1).

(b) To secure a loan, the board may pledge:

(1) district revenue that is not pledged to pay the

district's bonded indebtedness; or

(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.

paid not later than the first 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 are pledged to pay the loan, the

purposes for which the pledged taxes were imposed. (Acts 57th Leg.,

1st C.S., Ch. 43, Sec. 8B.)

[Sections 1043.157-1043.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1043.201.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 or improvements, including medical

facilities; and

(2) equipping buildings or improvements for hospital

or medical purposes. (Acts 57th Leg., 1st C.S., Ch. 43, Secs. 5(a)

(part), 6 (part).)

Sec.1043.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a)

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 general obligation bonds issued by the district under

Section 1043.201 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:

(1) 25 cents on each $100 valuation of all taxable

property in the district; or

(2) the maximum tax rate approved under Section

1043.253, which may not exceed 75 cents on each $100 valuation of

all taxable property in the district. (Acts 57th Leg., 1st C.S.,

Ch. 43, Secs. 5(a) (part), 6 (part).)

Sec.1043.203.GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the district voters voting at an

election held for that purpose.

(b) The board may order the election on its own motion.

(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 Hopkins County once a week for two

consecutive weeks before the date of the election. The first

publication must occur at least 14 days before the date of the

election. (Acts 57th Leg., 1st C.S., Ch. 43, Sec. 6 (part).)

Sec.1043.204.MATURITY OF GENERAL OBLIGATION BONDS.

District general obligation bonds must mature not later than 40

years after the date of issuance. (Acts 57th Leg., 1st C.S., Ch.

43, Sec. 6 (part).)

Sec.1043.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds. (Acts

57th Leg., 1st C.S., Ch. 43, Sec. 6 (part).)

Sec.1043.206.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements, including necessary equipment and

furnishings, for hospital purposes and the hospital system;

(2) acquire sites to be used for hospital purposes; or

(3) acquire and operate a mobile emergency medical or

air ambulance service to assist the district in carrying out its

hospital purpose.

(b) The bonds may be secured by a mortgage or deed of trust

lien on all or part of district property.

Sections 264.042, 264.043, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority.

(Acts 57th Leg., 1st C.S., Ch. 43, Secs. 6D(a), (b) (part), (c).)

Sec.1043.207.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 57th Leg., 1st C.S., Ch. 43, Sec. 6 (part).)

Sec.1043.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) any transaction relating to the bonds; and

(3) profits made in the sale of the bonds. (Acts 57th

Leg., 1st C.S., Ch. 43, Sec. 6D(d) (part).)

[Sections 1043.209-1043.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1043.251.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 tax may be used for all hospital district purposes

mentioned in this chapter and in Section 11, Article IX, Texas

Constitution, including to:

(1) pay the indebtedness issued or assumed by the

district; and

(2) maintain and operate the district.

or interest on revenue bonds. (Acts 57th Leg., 1st C.S., Ch. 43,

Subsec. (a), Sec. 5 (part), Secs. 5(a) (part), 6D(b) (part), 9

(part).)

Sec.1043.252.TAX RATE. The board may impose the tax at a

rate not to exceed 25 cents on each $100 valuation of all taxable

property in the district unless the tax rate is increased as

provided by Section 1043.253. (Acts 57th Leg., 1st C.S., Ch. 43,

Subsec. (a), Sec. 5 (part), Sec. 5(a) (part).)

Sec.1043.253.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

taxable property in the district.

(b) The maximum tax rate may not be increased unless the

increase is approved by a majority of the district voters voting in

an election held for that purpose.

bond election under Section 1043.203. (Acts 57th Leg., 1st C.S.,

Ch. 43, Sec. 5(a) (part).)

Sec.1043.254.TAX ASSESSOR-COLLECTOR. (a) Except as

provided by Subsection (b), the tax assessor-collector of Hopkins

County shall assess and collect taxes imposed by the district.

(b) 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 57th Leg., 1st C.S., Ch. 43, Secs. 5(a) (part), (b) (part), 9

(part).)

[Sections 1043.255-1043.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec.1043.301.DISSOLUTION; ELECTION. (a) The district

may be dissolved and the district's assets and liabilities sold or

transferred to another person only on approval of a majority of the

district voters voting at an election held for that purpose.

(b) The board may order an election on the question of

dissolving the district and transferring the district's assets and

liabilities.

a petition requesting an election that is signed by a number of

district residents equal to at least 15 percent of the registered

voters in the district, according to the most recent official list

of registered 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 57th Leg., 1st C.S., Ch.

43, Secs. 21(a), (b), (c) (part), (d), (g).)

Sec.1043.302.NOTICE OF ELECTION. (a) The board shall

give notice of an election under this subchapter by publishing once

a week for two consecutive weeks a substantial copy of the election

order in a newspaper with general circulation in the district.

(b) The first publication of the notice must appear at least

35 days before the date set for the election. (Acts 57th Leg., 1st

C.S., Ch. 43, Sec. 21(e).)

Sec.1043.303.BALLOT. The ballot for an election under

this subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the Hopkins County Hospital

District and the transfer of its assets and liabilities in the

following manner: __________ (insert provisions for transfer)."

(Acts 57th Leg., 1st C.S., Ch. 43, Sec. 21(h).)

Sec.1043.304.ELECTION RESULTS. (a) If the board finds

the election results favor the proposition to dissolve the

district, the board shall:

(1) issue an order declaring the district dissolved;

and

(2) proceed with the sale or transfer of the district's

assets and liabilities according to the plan proposed on the

ballot.

(b) If the board finds 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

election in which voters disapproved the proposition. (Acts 57th

Leg., 1st C.S., Ch. 43, Secs. 21(j), (k).)

Sec.1043.305.SALE OR TRANSFER OF ASSETS AND LIABILITIES.

(a) 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 and 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 the holders of any

outstanding bonds, warrants, or other obligations of the district.

liabilities must satisfy the debt and bond obligations of the

district in a manner that protects the interests of district

residents, including the residents' collective property rights in

the district's assets.

(d) The district may not transfer or dispose of the

district's assets except for due compensation unless:

(1) the transfer is made to another governmental

agency that serves the district; and

(2) the transferred assets are to be used for the

benefit of the district's residents.

(e) A grant from federal funds is an obligation to be repaid

in satisfaction. (Acts 57th Leg., 1st C.S., Ch. 43, Secs. 21(l),

(m).)

CHAPTER 1044. HUNT MEMORIAL HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1044.001. DEFINITIONS

Sec. 1044.002. AUTHORITY FOR OPERATION

Sec. 1044.003. POLITICAL SUBDIVISION

Sec. 1044.004. DISTRICT TERRITORY

Sec. 1044.005. CORRECTION OF INVALID PROCEDURES

Sec. 1044.006. PUBLIC PURPOSE; TAX EXEMPTION

[Sections 1044.007-1044.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1044.051. BOARD ELECTION; TERM

Sec. 1044.052. NOTICE OF ELECTION

Sec. 1044.053. BALLOT PETITION

Sec. 1044.054. QUALIFICATIONS FOR CANDIDACY

Sec. 1044.055. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE

Sec. 1044.056. BOARD VACANCY

Sec. 1044.057. OFFICERS

Sec. 1044.058. COMPENSATION; EXPENSES

Sec. 1044.059. VOTING REQUIREMENT

Sec. 1044.060. EMPLOYEES

Sec. 1044.061. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

Sec. 1044.062. SEAL

[Sections 1044.063-1044.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1044.101. DISTRICT RESPONSIBILITY

Sec. 1044.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION

Sec. 1044.103. MEDICAL FACILITIES; LEGISLATIVE INTENT

Sec. 1044.104. RULES

Sec. 1044.105. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1044.106. EMINENT DOMAIN

Sec. 1044.107. GIFTS AND ENDOWMENTS

Sec. 1044.108. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1044.109. AUTHORITY TO SUE AND BE SUED

[Sections 1044.110-1044.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1044.151. BUDGET

Sec. 1044.152. PROPOSED BUDGET: NOTICE AND HEARING

Sec. 1044.153. FISCAL YEAR

Sec. 1044.154. ANNUAL AUDIT

Sec. 1044.155. DEPOSITORY

[Sections 1044.156-1044.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1044.201. GENERAL OBLIGATION BONDS

Sec. 1044.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1044.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1044.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1044.205. EXECUTION OF GENERAL OBLIGATION BONDS

[Sections 1044.206-1044.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1044.251. IMPOSITION OF AD VALOREM TAX

Sec. 1044.252. TAX RATE

Sec. 1044.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1044. HUNT MEMORIAL HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1044.001.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 Hunt Memorial Hospital

District. (New.)

Sec.1044.002.AUTHORITY FOR OPERATION. The district

operates in accordance with Section 9, Article IX, Texas

Constitution. (Acts 60th Leg., R.S., Ch. 125, Sec. 1.)

Sec.1044.003.POLITICAL SUBDIVISION. The district is a

political subdivision of this state. (Acts 60th Leg., R.S., Ch.

125, Sec. 18 (part).)

Sec.1044.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Hunt County. (Acts

60th Leg., R.S., Ch. 125, Sec. 4A(f) (part).)

Sec.1044.005.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 60th Leg., R.S., Ch. 125, Sec. 21 (part);

Acts 61st Leg., R.S., Ch. 853, Sec. 2 (part).)

Sec.1044.006.PUBLIC PURPOSE; TAX EXEMPTION. All property

owned by the district:

(1) shall be held for public purposes; and

(2) is exempt from taxation of every character. (Acts

60th Leg., R.S., Chapter 125, Sec. 18 (part).)

[Sections 1044.007-1044.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1044.051.BOARD ELECTION; TERM. (a) The board

consists of nine directors elected as follows:

(1) two directors elected from each county

commissioners precinct; and

(2) one director elected from the district at large.

(b) The two candidates from each county commissioners

precinct receiving the highest number of votes from that precinct

are elected as directors from that precinct. The candidate from the

district at large receiving the highest number of votes from the

district at large is elected as the director from the district at

large.

(d) The board shall provide for clerks as in county

elections.

(e) The board shall enter an order declaring the results of

the election. (Acts 60th Leg., R.S., Ch. 125, Secs. 3 (part), 4

(part).)

Sec.1044.052.NOTICE OF ELECTION. At least 10 days before

the date of an election of directors, notice of the election shall

be published at least one time in a newspaper of general circulation

in the district. (Acts 60th Leg., R.S., Ch. 125, Sec. 4 (part).)

Sec.1044.053.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:

(1) be signed by at least 25 registered voters who

reside in the district;

(2) be filed at least 31 days before the date of the

election; and

(3) specify the county commissioners precinct the

candidate wants to represent or specify that the candidate wants to

represent the district at large. (Acts 60th Leg., R.S., Ch. 125,

Sec. 3 (part).)

Sec.1044.054.QUALIFICATIONS FOR CANDIDACY. (a) A person

may not be a candidate for director from the district at large

unless the person is a qualified voter of the district.

(b) A person may not be a candidate for director for a county

commissioners precinct unless the person is a qualified voter of

that precinct. (Acts 60th Leg., R.S., Ch. 125, Sec. 3 (part).)

Sec. 1044.055. BOND; RECORD OF BOND AND OATH OR AFFIRMATION

OF OFFICE. (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 or

affirmation of office shall be deposited with the district's

depository bank for safekeeping. (Acts 60th Leg., R.S., Ch. 125,

Sec. 4 (part).)

Sec.1044.056.BOARD VACANCY. If a vacancy occurs on the

board, the majority of the remaining directors shall appoint a

director for the unexpired term. (Acts 60th Leg., R.S., Ch. 125,

Sec. 4 (part).)

Sec.1044.057.OFFICERS. The board shall elect:

(1) a president and a secretary from among its

members; and

(2) any other officers the board requires. (Acts 60th

Leg., R.S., Ch. 125, Sec. 4 (part).)

Sec.1044.058.COMPENSATION; EXPENSES. A director 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 60th Leg., R.S., Ch. 125, Sec. 4

(part).)

Sec.1044.059.VOTING REQUIREMENT. A concurrence of a

majority of the directors present is sufficient in any matter

relating to district business. (Acts 60th Leg., R.S., Ch. 125, Sec.

4 (part).)

Sec.1044.060.EMPLOYEES. The board may employ a general

manager, attorneys, bookkeepers, architects, or any other

employees or consultants considered necessary for the efficient

financing, development, and operation of the district. (Acts 60th

Leg., R.S., Ch. 125, Sec. 9 (part).)

Sec.1044.061.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

Except as provided by Section 1044.055, 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. 125, Sec. 9

(part).)

Sec.1044.062.SEAL. The board may adopt a seal for the

district. (Acts 60th Leg., R.S., Ch. 125, Sec. 9 (part).)

[Sections 1044.063-1044.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1044.101.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.

125, Secs. 2, 14 (part).)

Sec. 1044.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION. Hunt County or a political subdivision with boundaries

that overlap the district's boundaries may not impose a tax on

property in the district for hospital purposes. (Acts 60th Leg.,

R.S., Ch. 125, Sec. 14 (part).)

Sec.1044.103.MEDICAL FACILITIES; LEGISLATIVE INTENT. It

is the intent of the legislature that the people of Hunt County be

provided with the best and most modern health care available. To

achieve that intent, the district may provide a medical facility in

the city of Commerce and in other areas of Hunt County if the board

finds that providing a facility is feasible and in the best interest

of district residents. (Acts 60th Leg., R.S., Ch. 125, Sec. 1A.)

Sec.1044.104.RULES. (a) The board may adopt rules

governing the operation of the district, including district

facilities.

(b) On approval by the board, the rules may be published in

booklet form at district expense and made available to any taxpayer

on request. (Acts 60th Leg., R.S., Ch. 125, Sec. 9 (part).)

Sec.1044.105.PURCHASING AND ACCOUNTING PROCEDURES. (a)

The board may prescribe the method and manner of making purchases

and expenditures by and for the district.

(b) The board shall prescribe:

(1) all accounting and control procedures; and

(2) the method of purchasing necessary supplies,

materials, and equipment. (Acts 60th Leg., R.S., Ch. 125, Sec. 9

(part).)

Sec.1044.106.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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 60th Leg., R.S., Ch. 125, Sec.

11.)

Sec.1044.107.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 60th Leg., R.S., Ch. 125,

Sec. 16.)

Sec.1044.108.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient who resides in the district is admitted to a district

facility, the board shall have an inquiry made into the

circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for

the patient's support.

(b) If an agent designated by the district to handle the

inquiry determines that the patient or those relatives cannot pay

all or part of the costs of the care and treatment in the hospital,

the amount of the costs that cannot be paid becomes a charge against

the district.

relatives are liable to pay for all or part of the costs of the

patient's care and treatment, the patient or those relatives shall

be ordered to pay to the district's treasurer 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 may collect the amount from the patient's

estate, or from any relative who is legally liable for the patient's

support, in the manner provided by law for the collection of

expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the district's designated agent, the board shall hold

a hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue an appropriate order.

(f) Either party to the dispute may appeal the order to the

district court. (Acts 60th Leg., R.S., Ch. 125, Sec. 15.)

Sec.1044.109.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. 125,

Sec. 18 (part).)

[Sections 1044.110-1044.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1044.151.BUDGET. The board annually shall require a

budget to be 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. 125, Sec. 10 (part).)

Sec.1044.152.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 Hunt County not later than the

10th day before the date of the hearing.

(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. 125, Sec. 10 (part).)

Sec.1044.153.FISCAL YEAR. The district operates on a

fiscal year that begins on October 1 and ends on September 30.

(Acts 60th Leg., R.S., Ch. 125, Sec. 10 (part).)

Sec.1044.154.ANNUAL AUDIT. (a) The board annually shall

have an independent audit made of the district's books and records

for the fiscal year.

(b) Not later than December 31 each year, the audit shall be

filed:

(1) with the comptroller; and

(2) at the district office. (Acts 60th Leg., R.S., Ch.

125, Sec. 10 (part).)

Sec.1044.155.DEPOSITORY. (a) The board by resolution

shall designate a bank in Hunt County as the district's depository.

A designated bank serves for five years until a successor is

designated.

(b) All income received by the district shall be deposited

with the district depository.

provided for securing county funds. (Acts 60th Leg., R.S., Ch. 125,

Secs. 5 (part), 12.)

[Sections 1044.156-1044.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1044.201.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 or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 60th Leg., R.S., Ch. 125, Sec. 6 (part).)

Sec.1044.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a)

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 general obligation bonds issued by the district under

Section 1044.201 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 60th Leg., R.S., Ch. 125, Sec. 6 (part).)

Sec.1044.203.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 in an

election held for that purpose.

(b) The board may order the election on its own motion.

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding election officers;

(4) the purpose of the bond issuance;

(5) the amount of the bonds to be authorized;

(6) the maximum interest rate of the bonds; and

(7) 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 14 days before the date of the

election. (Acts 60th Leg., R.S., Ch. 125, Sec. 6 (part).)

Sec.1044.204.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. 125,

Sec. 6 (part).)

Sec.1044.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds. (Acts

60th Leg., R.S., Ch. 125, Sec. 6 (part).)

[Sections 1044.206-1044.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1044.251.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 and other obligations issued or assumed by the district for

hospital purposes;

(2) provide for the operation and maintenance of the

district and hospital system;

(3) make improvements and additions to the hospital

system; and

(4) acquire necessary sites for the hospital system by

purchase, lease, or condemnation. (Acts 60th Leg., R.S., Ch. 125,

Secs. 5 (part), 10 (part).)

Sec.1044.252.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. 125, Sec. 5

(part).)

Sec.1044.253.TAX ASSESSOR-COLLECTOR. The board may:

(1) appoint a tax assessor-collector for the district;

(2) contract with the tax assessor-collector of Hunt

County, the City of Greenville, or the Greenville Independent

School District for the assessment or collection, or the assessment

and collection, of taxes. (Acts 60th Leg., R.S., Ch. 125, Secs. 5

(part), 10 (part).)

CHAPTER 1045. HUTCHINSON COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1045.001. DEFINITIONS

Sec. 1045.002. AUTHORITY FOR OPERATION

Sec. 1045.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1045.004. DISTRICT TERRITORY

Sec. 1045.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1045.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1045.007-1045.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1045.051. BOARD ELECTION AND APPOINTMENT; TERM

Sec. 1045.052. NOTICE OF ELECTION

Sec. 1045.053. QUALIFICATIONS FOR OFFICE

Sec. 1045.054. BOARD VACANCY

Sec. 1045.055. OFFICERS

Sec. 1045.056. COMPENSATION; EXPENSES

Sec. 1045.057. VOTING REQUIREMENT

Sec. 1045.058. ADMINISTRATORS

Sec. 1045.059. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1045.060. ATTORNEY; ASSISTANT ADMINISTRATORS

Sec. 1045.061. EMPLOYEES; APPOINTMENT OF STAFF

Sec. 1045.062. RECRUITMENT OF MEDICAL STAFF AND

EMPLOYEES

Sec. 1045.063. HEALTH CARE EDUCATIONAL PROGRAMS

Sec. 1045.064. LIABILITY INSURANCE; INDEMNIFICATION

Sec. 1045.065. RETIREMENT BENEFITS

[Sections 1045.066-1045.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1045.101. DISTRICT RESPONSIBILITY

Sec. 1045.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION AND DEBT

Sec. 1045.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1045.104. RULES

Sec. 1045.105. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1045.106. MOBILE EMERGENCY MEDICAL SERVICE

Sec. 1045.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1045.108. EMINENT DOMAIN

Sec. 1045.109. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 1045.110. GIFTS AND ENDOWMENTS

Sec. 1045.111. GENERAL CONTRACT POWER

Sec. 1045.112. CONSTRUCTION CONTRACTS

Sec. 1045.113. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1045.114. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CERTAIN SERVICES

Sec. 1045.115. JOINT OWNERSHIP ARRANGEMENT

Sec. 1045.116. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1045.117. REIMBURSEMENT FOR SERVICES

Sec. 1045.118. AUTHORITY TO SUE AND BE SUED

[Sections 1045.119-1045.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1045.151. BUDGET

Sec. 1045.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1045.153. AMENDMENTS TO BUDGET

Sec. 1045.154. RESTRICTION ON EXPENDITURES

Sec. 1045.155. FISCAL YEAR

Sec. 1045.156. ANNUAL AUDIT

Sec. 1045.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS

Sec. 1045.158. FINANCIAL REPORT

Sec. 1045.159. DEPOSITORY

Sec. 1045.160. SPENDING AND INVESTMENT RESTRICTIONS

Sec. 1045.161. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1045.162-1045.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1045.201. OBLIGATIONS AND CREDIT AGREEMENTS

Sec. 1045.202. GENERAL OBLIGATION BONDS

Sec. 1045.203. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1045.204. GENERAL OBLIGATION BOND ELECTION

Sec. 1045.205. REVENUE BONDS

Sec. 1045.206. REFUNDING BONDS

Sec. 1045.207. MATURITY OF BONDS

Sec. 1045.208. BONDS EXEMPT FROM TAXATION

[Sections 1045.209-1045.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1045.251. IMPOSITION OF AD VALOREM TAX

Sec. 1045.252. TAX RATE

Sec. 1045.253. ELECTION TO INCREASE MAXIMUM TAX RATE

Sec. 1045.254. TAX ASSESSOR-COLLECTOR

CHAPTER 1045. HUTCHINSON COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1045.001.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 Hutchinson County Hospital

District. (Acts 71st Leg., R.S., Ch. 77, Sec. 1.01.)

Sec.1045.002.AUTHORITY FOR OPERATION. The district

operates and is financed as provided by Section 9, Article IX, Texas

Constitution, and by this chapter and other laws relating to

hospital districts organized under Section 9, Article IX, Texas

Constitution. (Acts 71st Leg., R.S., Ch. 77, Sec. 1.02.)

Sec.1045.003.ESSENTIAL PUBLIC FUNCTION. The district is

a public entity performing an essential public function. (Acts

71st Leg., R.S., Ch. 77, Sec. 7.11 (part).)

Sec.1045.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Hutchinson County,

Texas. (Acts 71st Leg., R.S., Ch. 77, Sec. 1.03.)

Sec. 1045.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The state may not become obligated for the support or

maintenance of the district. (Acts 71st Leg., R.S., Ch. 77, Sec.

9.01 (part).)

Sec.1045.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 71st Leg., R.S., Ch. 77, Sec. 9.01 (part).)

[Sections 1045.007-1045.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1045.051.BOARD ELECTION AND APPOINTMENT; TERM. (a)

The board is governed by the following seven directors:

(1) one director elected from each county commissioner

precinct; and

(2) three directors appointed by the Hutchinson County

Commissioners Court.

(b) Elected directors serve staggered three-year terms,

with as near as possible to one-third of the elected members' terms

expiring each year. Appointed directors also serve staggered

three-year terms, with one director's term expiring each year.

election date in May of each year to elect the appropriate number of

directors.

(d) Within 10 days of the date directors are elected, the

commissioners court annually shall appoint the appropriate number

of successor appointed directors.

(e) The commissioners court may not appoint a person to

serve more than two successive terms. (Acts 71st Leg., R.S., Ch.

77, Secs. 4.01(a), 4.03(a), (d); New.)

Sec.1045.052.NOTICE OF ELECTION. At least 35 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper with general circulation in the

district. (Acts 71st Leg., R.S., Ch. 77, Sec. 4.04.)

Sec.1045.053.QUALIFICATIONS FOR OFFICE. (a) To be

eligible to be a candidate for an elected position or to serve as an

elected or appointed director, a person must be:

(1) a district resident; and

(2) a qualified voter.

(b) A person who is elected from a commissioner precinct or

who is appointed to fill a vacancy for a commissioner precinct must

be a resident of that commissioner precinct.

71st Leg., R.S., Ch. 77, Sec. 4.06.)

Sec.1045.054.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 71st Leg., R.S., Ch. 77,

Sec. 4.07.)

Sec.1045.055.OFFICERS. (a) The board shall elect a

president and a vice president from among its members.

(b) The board shall appoint a secretary, who need not be a

director.

(d) The board shall fill a vacancy in a board office for the

unexpired term. (Acts 71st Leg., R.S., Ch. 77, Secs. 4.08, 4.09.)

Sec.1045.056.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 71st Leg., R.S., Ch.

77, Sec. 4.10.)

Sec.1045.057.VOTING REQUIREMENT. A concurrence of a

majority of the directors voting is necessary in any matter

relating to district business. (Acts 71st Leg., R.S., Ch. 77, Sec.

4.11.)

Sec.1045.058.ADMINISTRATORS. (a) The board may appoint

qualified persons to serve as:

(1) district administrator; and

(2) ancillary health care facilities administrator.

(b) The administrators serve at the will of the board and

are entitled to the compensation determined by the board.

the administrator must execute a bond in the amount set by the board

of not less than $5,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

administrator's duties under this chapter.

(d) The board may pay for the district administrator's bond

with district money. (Acts 71st Leg., R.S., Ch. 77, Secs. 4.12(a)

(part), (b) (part), (c) (part), (d).)

Sec.1045.059.GENERAL DUTIES OF DISTRICT ADMINISTRATOR.

(a) The district administrator shall:

(1) supervise the work and activities of the district

facilities and the staff, employees, contractors, and agents of the

district; and

(2) direct the general affairs of the district subject

to the limitations prescribed by the board.

(b) The district administrator is responsible for the

overall management of all district facilities, including ancillary

health care facilities. (Acts 71st Leg., R.S., Ch. 77, Sec. 4.15.)

Sec.1045.060.ATTORNEY; ASSISTANT ADMINISTRATORS. (a)

The board may appoint qualified persons as:

(1) the attorney for the district; and

(2) assistant administrators.

(b) The attorney for the district and the assistant

administrators serve at the will of the board and are entitled to

the compensation determined by the board. (Acts 71st Leg., R.S.,

Ch. 77, Secs. 4.12(a) (part), (b) (part), (c) (part).)

Sec.1045.061.EMPLOYEES; APPOINTMENT OF STAFF. (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 considered necessary.

(b) The district may employ technicians, nurses, fiscal

agents, accountants, architects, attorneys, and other necessary

employees.

authority to hire district employees. (Acts 71st Leg., R.S., Ch.

77, Secs. 4.13, 4.14.)

Sec.1045.062.RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES.

The board may spend district money, enter into agreements, and take

other necessary action to recruit physicians and other persons to

serve on the district's medical staff or to be employed by the

district, including:

(1) advertising and marketing;

(2) paying travel, recruiting, and relocation

expenses;

(3) providing a loan or scholarship to a physician or

other person who:

(A) is currently enrolled in health care

education courses at an institution of higher education; and

(B) contractually agrees to become a district

employee or medical staff member; and

(4) providing on a rent-free basis or subsidizing the

cost of office space or other facilities for a health care

professional, including a physician. (Acts 71st Leg., R.S., Ch.

77, Sec. 5.17(a).)

Sec.1045.063.HEALTH CARE EDUCATIONAL PROGRAMS. The board

may spend district money, enter into agreements, and take other

necessary action to conduct, participate in, or otherwise assist in

providing health care educational programs for current or

prospective staff members or employees. (Acts 71st Leg., R.S., Ch.

77, Sec. 5.17(b).)

Sec.1045.064.LIABILITY INSURANCE; INDEMNIFICATION. (a)

For an officer, director, board appointee, member of the medical

staff, or district employee, the board may:

(1) purchase and maintain liability insurance to

protect the person from liability that arises from performing a

duty in that capacity; and

(2) agree to defend or indemnify the person with

regard to a claim, cost, expense, or liability resulting from

duties performed in that capacity.

(b) The board may establish a self-insurance program to fund

an indemnity obligation under Subsection (a)(2). (Acts 71st Leg.,

R.S., Ch. 77, Sec. 5.16.)

Sec.1045.065.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 71st Leg., R.S., Ch.

77, Sec. 4.16.)

[Sections 1045.066-1045.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1045.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for:

(1) operating hospital and ancillary health care

facilities; and

(2) providing medical, hospital, and ancillary health

care for the district's needy inhabitants. (Acts 71st Leg., R.S.,

Ch. 77, Sec. 5.02 (part).)

Sec. 1045.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION AND DEBT. Hutchinson County or a municipality in

Hutchinson County may not impose a tax or issue bonds or other

obligations for hospital purposes or to provide medical care for

district residents. (Acts 71st Leg., R.S., Ch. 77, Sec. 5.01(b).)

Sec.1045.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital

system, the ancillary health care system, and the district's money

and resources. (Acts 71st Leg., R.S., Ch. 77, Sec. 5.03.)

Sec.1045.104.RULES. The board may adopt rules governing:

(1) the operation of the hospital, ancillary health

care facilities, ancillary health care system, and hospital system;

and

(2) the duties, functions, and responsibilities of

district staff, employees, contractors, or agents. (Acts 71st

Leg., R.S., Ch. 77, Sec. 5.04.)

Sec.1045.105.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method of making purchases and expenditures by

and for the district; and

(2) accounting and control procedures for the

district. (Acts 71st Leg., R.S., Ch. 77, Sec. 5.05.)

Sec.1045.106.MOBILE EMERGENCY MEDICAL SERVICE. The

district may operate or provide for the operation of a mobile

emergency medical service. (Acts 71st Leg., R.S., Ch. 77, Sec. 5.02

(part).)

Sec. 1045.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location, either inside or outside the district, of facilities

required to maintain an adequate hospital system and ancillary

health care system and the type of equipment necessary for hospital

care and ancillary health care services, including:

(1) domiciliary care and treatment of sick or injured

patients;

(2) geriatric services;

(3) outpatient clinics;

(4) rural health clinics;

(5) convalescent home facilities;

(6) physician's offices;

(7) home health services;

(8) durable medical equipment;

(9) long-term care;

(10) skilled nursing care;

(11) intermediate nursing care;

(12) hospice care;

(13) ambulatory surgery centers;

(14) urgent care facilities;

(15) operation of a mobile emergency medical service;

and

(16) any other facility or equipment the board

considers necessary for the delivery of hospital, medical, and

ancillary health care services.

(b) The board may:

(1) acquire by lease, purchase, or lease to purchase

property, including facilities, supplies, and equipment, for the

district for use in the hospital system and ancillary health care

system; and

(2) mortgage or pledge the property as security for

the payment of the purchase price.

facilities or ancillary health care facilities for the district.

(d) The board may lease, sell, or otherwise dispose of all

or part of the district's property for the district, including

facilities, supplies, or equipment, to a public or private entity.

(Acts 71st Leg., R.S., Ch. 77, Sec. 5.06.)

Sec.1045.108.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 for the district to exercise

the rights or authority conferred 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 71st Leg., R.S., Ch. 77, Sec.

5.09.)

Sec.1045.109.COST OF RELOCATING OR ALTERING PROPERTY. In

exercising the power of eminent domain, if the board requires

relocating, raising, lowering, rerouting, changing the grade, or

altering the construction of any railroad, highway, pipeline, or

electric transmission and electric distribution, telegraph, or

telephone line, conduit, pole, or facility, the district must bear

the actual cost of relocating, raising, lowering, rerouting,

changing the grade, or altering the construction to provide

comparable replacement without enhancement of facilities, after

deducting the net salvage value derived from the old facility.

(Acts 71st Leg., R.S., Ch. 77, Sec. 5.10.)

Sec.1045.110.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust for any

purpose and under any written direction, limitation, or provision

prescribed in writing by the donor that is consistent with the

authority and proper management of the district. (Acts 71st Leg.,

R.S., Ch. 77, Sec. 5.14.)

Sec.1045.111.GENERAL CONTRACT POWER. The board may

contract for the district. (Acts 71st Leg., R.S., Ch. 77, Sec.

5.07(a).)

Sec.1045.112.CONSTRUCTION CONTRACTS. (a) The board may

enter into 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 competitive

bidding as provided by Subchapter B, Chapter 271, Local Government

Code, or other applicable law. (Acts 71st Leg., R.S., Ch. 77, Sec.

5.07(b).)

Sec.1045.113.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract for the

district with one or more public or private entities relating to a

hospital or ancillary health care facility or service. (Acts 71st

Leg., R.S., Ch. 77, Sec. 5.08.)

Sec. 1045.114. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

CERTAIN SERVICES. The board may contract with a political

subdivision of this state, a state, the federal government, an

agency or political subdivision of those public entities, or a

charitable or other private entity for the district to:

(1) furnish a mobile emergency medical service; or

(2) provide for the investigatory or welfare needs of

district inhabitants or of persons for whom the public or private

entity has an obligation to provide care. (Acts 71st Leg., R.S.,

Ch. 77, Sec. 5.13.)

Sec.1045.115.JOINT OWNERSHIP ARRANGEMENT. (a) The board

may enter into a joint ownership arrangement for the district with

one or more public or private entities for:

(1) the provision of management or operating services;

and

(2) the ownership of all or part of real property,

facilities, equipment, or supplies.

(b) Before the board enters into the arrangement, the board

must determine that the arrangement is:

(1) in the district's best interest; and

(2) for a public purpose of the district. (Acts 71st

Leg., R.S., Ch. 77, Sec. 5.19.)

Sec.1045.116.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient is admitted to a district facility, the district

administrator may have an inquiry made into the financial

circumstances of:

(1) the patient; and

(2) a relative of the patient who is 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 that the patient

or a relative of the patient who is legally responsible for the

patient's support cannot pay.

responsible for the patient's support 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 the relative to

pay the district a specified amount each week. The amount must be

based on the individual's ability to pay.

(d) The district administrator may collect money owed to the

district from the patient's estate or from that of a relative who

was legally responsible for the patient's support in the manner

provided by law for collection of expenses of the last illness of a

deceased person.

(e) If there is a dispute relating to an individual's

ability to pay or if the district administrator has any doubt

concerning an individual's ability to pay, the board shall:

(1) call witnesses;

(2) hear and resolve the question; and

(3) issue a final order.

(f) The final order of the board may be appealed to a

district court in Hutchinson County. The substantial evidence rule

applies to the appeal. (Acts 71st Leg., R.S., Ch. 77, Secs.

5.11(a), (c), (d), (e), (f).)

Sec.1045.117.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 and treatment of a sick or injured person of that county,

municipality, or public hospital as provided by Chapter 61, Health

and Safety Code.

(b) The board shall require the sheriff of Hutchinson County

or the police chief of a municipality in Hutchinson County to

reimburse the district for the district's care and treatment of a

person who is confined in a jail facility of Hutchinson County or

the municipality and is not a resident of the district.

federal government, or an agency or political subdivision of this

or another state or of the federal government to reimburse the

district for the care and treatment of a sick or injured person.

(Acts 71st Leg., R.S., Ch. 77, Sec. 5.12.)

Sec.1045.118.AUTHORITY TO SUE AND BE SUED. The board may

sue and be sued on behalf of the district. (Acts 71st Leg., R.S.,

Ch. 77, Sec. 5.15.)

[Sections 1045.119-1045.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1045.151.BUDGET. (a) The district administrator

shall prepare a proposed annual budget for the district.

(b) The proposed budget must contain a complete financial

statement, including a statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash on hand in each district fund;

(3) the amount of money received by the district from

all sources during the previous year;

(4) the amount of money available to the district from

all sources during the ensuing year;

(5) the amount of the balances expected at the end of

the year in which the budget is being prepared;

(6) the estimated amount of revenue and balances

available to cover the proposed budget; and

(7) the estimated tax rate required. (Acts 71st Leg.,

R.S., Ch. 77, Sec. 6.04.)

Sec.1045.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) The board shall publish notice of the hearing in a

newspaper with general circulation in the district not later than

the 10th day before the date of the hearing.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board considers proper to provide adequate care and

treatment at a district hospital or ancillary health care facility.

(e) The budget is effective only after adoption by the

board. (Acts 71st Leg., R.S., Ch. 77, Sec. 6.05.)

Sec.1045.153.AMENDMENTS TO BUDGET. After the annual

budget is adopted, the budget may be amended on the board's

approval. (Acts 71st Leg., R.S., Ch. 77, Sec. 6.06.)

Sec.1045.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 71st Leg., R.S., Ch. 77, Sec. 6.07.)

Sec.1045.155.FISCAL YEAR. The district operates on the

fiscal year established by the board. (Acts 71st Leg., R.S., Ch.

77, Sec. 6.01.)

Sec.1045.156.ANNUAL AUDIT. The board annually shall have

an audit made of the district's financial records, accounts, and

transactions. (Acts 71st Leg., R.S., Ch. 77, Sec. 6.02.)

Sec. 1045.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS. The annual audit and other district records are open to

inspection during regular business hours at the district's

principal office. (Acts 71st Leg., R.S., Ch. 77, Sec. 6.03.)

Sec.1045.158.FINANCIAL REPORT. As soon as practicable

after the close of the fiscal year, the district administrator or

other district agent responsible for the district's financial

affairs shall prepare for the board:

(1) a sworn statement of the amount of district money;

and

(2) an account of the disbursements of that money.

(Acts 71st Leg., R.S., Ch. 77, Sec. 6.08.)

Sec.1045.159.DEPOSITORY. (a) The board shall select at

least one bank to serve as a depository for district money.

(b) District money, other than money invested as provided by

Section 1045.160(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. This subsection does not limit the power of the board to

place a part of district money on time deposit or to purchase

certificates of deposit.

purchase a certificate of deposit from a bank in an amount that

exceeds the maximum amount secured by the Federal Deposit Insurance

Corporation unless the bank first executes a bond or provides other

collateral eligible to secure a public deposit in an amount

sufficient to secure from loss the district money that exceeds the

amount secured by the Federal Deposit Insurance Corporation. (Acts

71st Leg., R.S., Ch. 77, Sec. 6.10.)

Sec.1045.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as provided by Sections 1045.112, 1045.202, 1045.205, and

1045.206, the district may not incur a debt payable from district

revenue other than the revenue on hand or to be on hand in the

current and immediately following district fiscal years.

(b) The board may invest operating, depreciation, or

building reserves in:

(1) funds or securities specified by Chapter 2256,

Government Code; or

(2) any other investment vehicle or fund if the board

determines that investing the reserves in that vehicle or fund:

(A) is in the district's best interest; and

(B) does not violate the Texas Constitution.

(Acts 71st Leg., R.S., Ch. 77, Sec. 6.09.)

Sec.1045.161.AUTHORITY TO BORROW MONEY; SECURITY. (a)

The board may borrow money for district operating expenses in an

amount not to exceed the amount of tax or other revenue the district

expects to receive during the fiscal year in which the money is

borrowed.

(b) To repay the debt, the board may pledge all or part of

the tax or other revenue received during the fiscal year in which

the board borrows money under this section. (Acts 71st Leg., R.S.,

Ch. 77, Sec. 5.18.)

[Sections 1045.162-1045.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1045.201.OBLIGATIONS AND CREDIT AGREEMENTS. The

district may issue, sell, and deliver obligations and execute

credit agreements as provided by Chapters 1201 and 1371, Government

Code. (Acts 71st Leg., R.S., Ch. 77, Sec. 7.07.)

Sec.1045.202.GENERAL OBLIGATION BONDS. The board may

issue and sell general obligation bonds authorized by an election

in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, equip, or

renovate buildings, facilities, equipment, or improvements for

hospital purposes, including facilities and improvements

incidental and beneficial to operating and maintaining hospitals

and ancillary facilities that provide medical and ancillary health

care services and treatment; or

(2) acquire and operate a mobile emergency medical

service. (Acts 71st Leg., R.S., Ch. 77, Sec. 7.01.)

Sec.1045.203.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1045.202, 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

limit approved by the voters at the election authorizing the

imposition of the tax. (Acts 71st Leg., R.S., Ch. 77, Sec. 7.02.)

Sec.1045.204.GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the district voters voting at an

election held for that purpose.

(b) The board may order a bond election.

(1) the nature and date of the election;

(2) the hours during which the polls will be open;

(3) the location of the polling places;

(4) the amount of the bonds to be authorized; and

(5) the maximum maturity of the bonds.

(d) Notice of a bond election shall be given as provided by

Section 1251.003, Government Code.

(e) The board shall declare the results of the election.

(Acts 71st Leg., R.S., Ch. 77, Sec. 7.03.)

Sec.1045.205.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, equip, or

renovate buildings or improvements for hospital and ancillary

health care purposes;

(2) acquire sites to be used for hospital and

ancillary health care purposes; or

(3) acquire and operate a mobile emergency medical

service to assist the district in carrying out its hospital and

ancillary health care 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.

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, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority,

or in accordance with other laws relating to the issuance of revenue

bonds by a hospital district. (Acts 71st Leg., R.S., Ch. 77, Sec.

7.04.)

Sec.1045.206.REFUNDING BONDS. (a) The board may 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 principal amount of outstanding indebtedness. (Acts 71st

Leg., R.S., Ch. 77, Secs. 7.05(a), (c) (part).)

Sec.1045.207.MATURITY OF BONDS. District bonds must

mature not later than 50 years after the date of issuance. (Acts

71st Leg., R.S., Ch. 77, Sec. 7.06 (part).)

Sec.1045.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) any transaction relating to the bonds; and

(3) profits made in the sale of the bonds. (Acts 71st

Leg., R.S., Ch. 77, Sec. 7.11 (part).)

[Sections 1045.209-1045.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1045.251.IMPOSITION OF AD VALOREM TAX. (a) The board

may impose a tax on all property in the district subject to district

taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

or interest on revenue bonds issued under this chapter. (Acts 71st

Leg., R.S., Ch. 77, Secs. 8.01(a) (part), (c), (d), 8.03(b).)

Sec.1045.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed the limit approved by the voters at the

election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on

each $100 valuation of all taxable property in the district.

income of the district from sources other than taxation. (Acts 71st

Leg., R.S., Ch. 77, Secs. 8.01(a) (part), (b), 8.04 (part).)

Sec.1045.253.ELECTION TO INCREASE MAXIMUM TAX RATE. (a)

The board may order an election to increase the district's maximum

ad valorem tax rate to a rate of not more than 75 cents on each $100

valuation of the taxable property in the district. The board shall

order an election if the board receives a petition requesting an

election that is signed by at least 50 qualified voters of the

district.

(b) 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

_____ (insert amount not to exceed 75 cents) cents on the $100

valuation of all taxable property in the district."

proposition, the board may impose taxes as authorized by the

proposition. If the board finds that the election results do not

favor the proposition, another election on the question of raising

the district's maximum tax rate may not be held before the first

anniversary of the date of the most recent election at which voters

disapproved the proposition.

(d) Section 41.001(a), Election Code, does not apply to an

election ordered under this section. (Acts 71st Leg., R.S., Ch. 77,

Secs. 8.02(a), (b) (part), (c) (part), (d) (part).)

Sec.1045.254.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 71st Leg., R.S., Ch. 77, Sec.

8.05(b).)

CHAPTER 1046. JACKSON COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1046.001. DEFINITIONS

Sec. 1046.002. AUTHORITY FOR OPERATION

Sec. 1046.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1046.004. DISTRICT TERRITORY

Sec. 1046.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1046.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

Sec. 1046.007. ELECTION DATE

[Sections 1046.008-1046.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1046.051. BOARD ELECTION; TERM

Sec. 1046.052. NOTICE OF ELECTION

Sec. 1046.053. FORM OF BALLOT AT RUNOFF ELECTION

Sec. 1046.054. MODIFICATION OF TERM

Sec. 1046.055. QUALIFICATIONS FOR OFFICE

Sec. 1046.056. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE

Sec. 1046.057. BOARD VACANCY

Sec. 1046.058. OFFICERS

Sec. 1046.059. COMPENSATION; EXPENSES

Sec. 1046.060. VOTING REQUIREMENT

Sec. 1046.061. ADMINISTRATOR FOR EACH DISTRICT

HOSPITAL

Sec. 1046.062. APPOINTMENT AND REMOVAL OF STAFF AND

EMPLOYEES

Sec. 1046.063. ATTORNEY; ASSISTANT HOSPITAL

ADMINISTRATOR

Sec. 1046.064. GENERAL DUTIES OF ADMINISTRATOR

Sec. 1046.065. RETIREMENT BENEFITS

Sec. 1046.066. SEAL

[Sections 1046.067-1046.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1046.101. DISTRICT RESPONSIBILITY

Sec. 1046.102. BOARD RESPONSIBILITY

Sec. 1046.103. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1046.104. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1046.105. HOSPITAL SYSTEM

Sec. 1046.106. RULES

Sec. 1046.107. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1046.108. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1046.109. EMINENT DOMAIN

Sec. 1046.110. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 1046.111. GIFTS AND ENDOWMENTS

Sec. 1046.112. CONSTRUCTION CONTRACTS

Sec. 1046.113. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1046.114. CONTRACT IN NAME OF DISTRICT

Sec. 1046.115. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT

Sec. 1046.116. PROVISION OF SERVICES OUTSIDE DISTRICT

Sec. 1046.117. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1046.118. LEASES

Sec. 1046.119. AUTHORITY TO SELL OR CLOSE CERTAIN

DISTRICT HOSPITALS

Sec. 1046.120. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1046.121. AUTHORITY TO SUE AND BE SUED

Sec. 1046.122. RECOMMENDATION OF LEGISLATION; NOTICE

[Sections 1046.123-1046.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1046.151. BUDGET

Sec. 1046.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1046.153. AMENDMENTS TO BUDGET

Sec. 1046.154. RESTRICTION ON EXPENDITURES

Sec. 1046.155. FISCAL YEAR

Sec. 1046.156. ANNUAL AUDIT

Sec. 1046.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS

Sec. 1046.158. FINANCIAL REPORT

Sec. 1046.159. DEPOSITORY

Sec. 1046.160. SPENDING AND INVESTMENT RESTRICTIONS

Sec. 1046.161. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1046.162-1046.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1046.201. GENERAL OBLIGATION BONDS

Sec. 1046.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1046.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1046.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1046.205. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1046.206. REVENUE BONDS

Sec. 1046.207. REFUNDING BONDS

Sec. 1046.208. BONDS EXEMPT FROM TAXATION

[Sections 1046.209-1046.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1046.251. IMPOSITION OF AD VALOREM TAX

Sec. 1046.252. TAX RATE

Sec. 1046.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR

Sec. 1046.254. ASSESSMENT AND COLLECTION BY DISTRICT

TAX ASSESSOR-COLLECTOR

CHAPTER 1046. JACKSON COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1046.001.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 Jackson County Hospital

District. (New.)

Sec.1046.002.AUTHORITY FOR OPERATION. The district

operates and is administered and financed in accordance with

Section 9, Article IX, Texas Constitution, and has the rights,

powers, and duties provided by this chapter. (Acts 66th Leg., R.S.,

Ch. 275, Sec. 1 (part).)

Sec.1046.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 66th Leg., R.S., Ch. 275, Sec. 23 (part).)

Sec.1046.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Jackson County.

(Acts 66th Leg., R.S., Ch. 275, Sec. 1 (part).)

Sec. 1046.005. 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 66th

Leg., R.S., Ch. 275, Sec. 22 (part).)

Sec.1046.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 66th Leg., R.S., Ch. 275, Sec. 22 (part).)

Sec.1046.007.ELECTION DATE. Section 41.001(a), Election

Code, does not apply to an election held under this chapter. (Acts

66th Leg., R.S., Ch. 275, Secs. 3(a) (part), 7(a) (part).)

[Sections 1046.008-1046.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1046.051.BOARD ELECTION; TERM. (a) The board

consists of nine directors elected from the district by position as

follows:

(1) two directors from each commissioners precinct;

and

(2) one director from the district at large.

(b) To be elected, a candidate must receive a majority of

the votes cast in the election for that position.

election.

(d) Unless different terms are established under Section

1046.054, directors serve staggered two-year terms as follows:

(1) directors elected to even-numbered positions are

elected in even-numbered years; and

(2) directors elected to odd-numbered positions and

the director elected at large are elected in odd-numbered years.

(Acts 66th Leg., R.S., Ch. 275, Secs. 4(d) (part), (e) (part).)

Sec.1046.052.NOTICE OF ELECTION. (a) Except as provided

by Subsection (b), at least 30 days before the date of an election

of directors, the board shall publish notice of the election one

time in a newspaper or newspapers that individually or collectively

have general circulation in the district.

(b) At least seven days before the date of a runoff election

of directors, the board shall publish notice of the election one

time in a newspaper or newspapers that individually or collectively

have general circulation in the area of the runoff election. (Acts

66th Leg., R.S., Ch. 275, Secs. 4(d) (part), (e) (part).)

Sec.1046.053.FORM OF BALLOT AT RUNOFF ELECTION. Of the

names printed on the ballot at a runoff election, the name of the

candidate who received the higher number of votes at the general

election of directors must be printed first on the ballot. (Acts

66th Leg., R.S., Ch. 275, Sec. 4(d) (part).)

Sec.1046.054.MODIFICATION OF TERM. (a) Notwithstanding

Section 1046.051, the board, on its own motion, may order that

directors serve staggered three-year or four-year terms. After an

initial change under this section from staggered two-year terms,

the board may not change the terms again.

(b) If the board orders four-year terms, the directors are

to be elected in accordance with Section 285.081, Health and Safety

Code.

directors are to be elected as follows:

(1) if the first election that occurs at least 120 days

after the date the order is entered is an election in an

even-numbered year:

(A) the four directors elected at that election

shall draw lots to determine the three directors that serve

three-year terms and the director that serves a two-year term;

(B) the at-large director elected at the first

odd-numbered year election after the order is entered serves a

three-year term; and

odd-numbered year election after the order is entered shall draw

lots to determine which two directors serve three-year terms and

which two directors serve one-year terms; and

(2) if the first election that occurs at least 120 days

after the date the order is entered is an election in an

odd-numbered year:

(A) the at-large director elected at that

election serves a three-year term;

(B) the four other directors elected at that

election shall draw lots to determine the two directors that serve

three-year terms and the two directors that serve two-year terms;

and

even-numbered year election after the order is entered shall draw

lots to determine which three directors serve three-year terms and

which director serves a one-year term. (Acts 66th Leg., R.S., Ch.

275, Sec. 4A.)

Sec.1046.055.QUALIFICATIONS FOR OFFICE. (a) A person may

not be elected or appointed as a director unless the person is:

(1) a district resident; and

(2) a qualified voter.

(b) A director elected or appointed to represent a

commissioners precinct must be a resident of that commissioners

precinct. Failure of the director to maintain residence in the

commissioners precinct is a ground for removal from office in the

manner provided by law for removal of county officers.

person is:

(1) an administrator for the district or a district

hospital;

(2) the attorney for the district; or

(3) a district employee. (Acts 66th Leg., R.S., Ch.

275, Sec. 4(f).)

Sec. 1046.056. BOND; RECORD OF BOND AND OATH OR AFFIRMATION

OF OFFICE. (a) As soon as practicable after a director is elected

or appointed, the director shall execute a bond for $5,000 that is:

(1) approved by the board;

(2) payable to the district; and

(3) conditioned on the faithful performance of the

director's duties.

(b) The district may pay for a director's bond with district

money.

affirmation of office shall be filed with the board and retained in

the board's records. (Acts 66th Leg., R.S., Ch. 275, Secs. 19(i),

(j), (l).)

Sec.1046.057.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 66th Leg., R.S., Ch. 275,

Sec. 4(e) (part).)

Sec.1046.058.OFFICERS. (a) The board shall elect a

president, vice president, and secretary from among its members.

(b) Each officer of the board serves for a term of one year.

is payable to the district and conditioned on the faithful

performance of the officer's duties. The board may pay for the bond

with district money.

(d) The board shall fill a vacancy in a board office for the

unexpired term. (Acts 66th Leg., R.S., Ch. 275, Secs. 4(g) (part),

19(d) (part).)

Sec.1046.059.COMPENSATION; EXPENSES. A director serves

without compensation but may be reimbursed for travel or other

expenses incurred on the district's behalf if:

(1) the director presents a verified statement; and

(2) the board approves the expenses. (Acts 66th Leg.,

R.S., Ch. 275, Sec. 19(h).)

Sec.1046.060.VOTING REQUIREMENT. Except as provided by

Sections 1046.119 and 1046.122, a concurrence of five directors is

required in any matter relating to district business. (Acts 66th

Leg., R.S., Ch. 275, Sec. 4(g) (part).)

Sec.1046.061.ADMINISTRATOR FOR EACH DISTRICT HOSPITAL.

(a) The board may appoint a qualified administrator for each

district hospital.

(b) An administrator serves at the will of the board and is

entitled to the compensation determined by the board.

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 other conditions the board may require.

(d) The board may pay for the bond with district money.

(Acts 66th Leg., R.S., Ch. 275, Sec. 5 (part).)

Sec. 1046.062. APPOINTMENT AND REMOVAL 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 necessary.

(b) The board shall employ or contract with persons the

board considers necessary or advisable to conduct district affairs,

including a hospital administrator for the district or for each

facility and nurses, medical technicians, engineers, architects,

attorneys, financial advisors, accountants, fiscal agents,

bookkeepers, auditors, and secretaries.

employment, and compensation of all employees and consultants by

contract or by resolution or order of the board. The board may

terminate the employment of any district employee.

(d) The board may delegate to an administrator the authority

to hire and discharge district or hospital employees, including

doctors, nurses, and technicians, or to appoint and remove staff

doctors under bylaws and rules.

(e) The board may require any employee to execute a bond

payable to the district and conditioned on the faithful performance

of the employee's duties. The board may pay for the bond with

district money. (Acts 66th Leg., R.S., Ch. 275, Secs. 5 (part),

18(c) (part), 19(a) (part), (b), (c), (d) (part).)

Sec.1046.063.ATTORNEY; ASSISTANT HOSPITAL ADMINISTRATOR.

(a) The board may appoint:

(1) an attorney for the district; and

(2) a qualified assistant administrator for each

district hospital.

(b) The attorney for the district and an assistant hospital

administrator serve at the will of the board and shall receive the

compensation determined by the board. (Acts 66th Leg., R.S., Ch.

275, Sec. 5 (part).)

Sec.1046.064.GENERAL DUTIES OF ADMINISTRATOR. (a) The

board may delegate to the administrator for the district or the

administrators for each district hospital the power to manage and

operate all or any part of the hospital system.

(b) Subject to the limitations prescribed by the board, the

administrator for each district hospital shall:

(1) supervise the work and activities of the hospital;

and

(2) direct the affairs of the hospital. (Acts 66th

Leg., R.S., Ch. 275, Secs. 5 (part), 18(c) (part).)

Sec.1046.065.RETIREMENT BENEFITS. The district may

provide retirement benefits for district employees by:

(1) creating and administering a public retirement

system for the district;

(2) participating in the Texas County and District

Retirement System; or

(3) purchasing annuity contracts from an insurer or

annuity company authorized to engage in business in this state.

(Acts 66th Leg., R.S., Ch. 275, Sec. 15 (part).)

Sec.1046.066.SEAL. The board shall adopt a seal for the

district. (Acts 66th Leg., R.S., Ch. 275, Sec. 19(g).)

[Sections 1046.067-1046.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1046.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for providing medical and hospital care for the

district's needy inhabitants. (Acts 66th Leg., R.S., Ch. 275, Sec.

20 (part).)

Sec.1046.102.BOARD RESPONSIBILITY. The board shall

provide for the administration, maintenance, and operation of a

hospital transferred to the district to furnish adequate medical

and hospital care in the district and to ensure that the hospital is

provided with sufficient money, personnel, and equipment for

district residents to have access to quality and competent health

facilities. (Acts 66th Leg., R.S., Ch. 275, Sec. 20 (part).)

Sec. 1046.103. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT. A political subdivision other than the district

may not impose a tax or issue bonds or other obligations for

hospital purposes or to provide medical care in the district. (Acts

66th Leg., R.S., Ch. 275, Sec. 20 (part).)

Sec.1046.104.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall:

(1) manage and control all district affairs; and

(2) manage, control, and administer the hospital

system and the district's money and resources. (Acts 66th Leg.,

R.S., Ch. 275, Secs. 5 (part), 19(a) (part).)

Sec.1046.105.HOSPITAL SYSTEM. (a) The district shall

provide for the establishment of a hospital system by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and equipment;

(2) equipping for hospital and medical care purposes;

and

(3) administering the system for hospital purposes.

(b) The hospital system may include:

(1) domiciliary care and treatment of the sick,

injured, or geriatric;

(2) outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses;

(6) domiciliaries and training centers;

(7) blood banks;

(8) community health centers;

(9) research centers or laboratories; and

(10) any other facilities the board considers

necessary for hospital and medical care. (Acts 66th Leg., R.S., Ch.

275, Secs. 2, 18(a) (part), 20 (part).)

Sec.1046.106.RULES. (a) The board may adopt rules

governing the operation of the hospital, the hospital system, and

the district's staff and employees.

(b) The board shall adopt reasonable and necessary rules and

bylaws to govern:

(1) the board's proceedings and activities; and

(2) the hospitals or the hospital or medical system.

(Acts 66th Leg., R.S., Ch. 275, Secs. 5 (part), 19(e).)

Sec.1046.107.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of making purchases and

expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 66th

Leg., R.S., Ch. 275, Sec. 9(b) (part).)

Sec. 1046.108. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location of buildings required to maintain an adequate hospital

system.

(b) The board may purchase all necessary materials,

supplies, equipment, and vehicles.

(1) acquire equipment for use in the district's

hospital system; and

(2) mortgage or pledge the property as security for

the payment of the purchase price.

(d) Except as provided by Section 1046.119, the district may

sell or otherwise dispose of any property, including equipment, on

terms the board finds are in the best interest of the district's

inhabitants. (Acts 66th Leg., R.S., Ch. 275, Secs. 9(a) (part), (b)

(part), 18(a) (part), 19(f).)

Sec.1046.109.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in any type of property located in district

territory if the interest is necessary or convenient for the

district to exercise a power, right, or privilege conferred by this

chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 66th Leg., R.S., Ch. 275, Sec.

13(a).)

Sec.1046.110.COST OF RELOCATING OR ALTERING PROPERTY. In

exercising the power of eminent domain, if the board requires

relocating, raising, lowering, rerouting, changing the grade of, or

altering the construction of any railroad, electric transmission,

telegraph or telephone line, conduit, pole, or facility, or

pipeline, the district must bear the actual cost of relocating,

raising, lowering, rerouting, changing the grade, or altering the

construction to provide comparable replacement without enhancement

of facilities, after deducting the net salvage value derived from

the old facility. (Acts 66th Leg., R.S., Ch. 275, Sec. 13(b).)

Sec.1046.111.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust for the

purposes and under the directions, limitations, or other provisions

prescribed in writing by the donor that are consistent with the

proper management and objectives of the district. (Acts 66th Leg.,

R.S., Ch. 275, Sec. 17.)

Sec.1046.112.CONSTRUCTION CONTRACTS. A construction

contract that involves the expenditure of more than $10,000 may be

made only after advertising in the manner provided by Subchapter B,

Chapter 271, Local Government Code. (Acts 66th Leg., R.S., Ch. 275,

Sec. 9(b) (part).)

Sec.1046.113.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a district hospital or the hospital system. (Acts 66th Leg.,

R.S., Ch. 275, Sec. 18(c) (part).)

Sec.1046.114.CONTRACT IN NAME OF DISTRICT. The district

shall contract in the name of the district. (Acts 66th Leg., R.S.,

Ch. 275, Sec. 19(a) (part).)

Sec. 1046.115. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

CARE AND TREATMENT. (a) The board may contract with a county or

municipality located outside the district's boundaries to

reimburse the district for the care and treatment of a sick or

injured person of that county or municipality.

(b) The board may contract with this state or a federal

agency for reimbursement for the treatment of a sick or injured

person. (Acts 66th Leg., R.S., Ch. 275, Sec. 5 (part).)

Sec.1046.116.PROVISION OF SERVICES OUTSIDE DISTRICT. The

district may provide health care services outside the district's

boundaries provided that the services serve the purposes of the

district. (Acts 66th Leg., R.S., Ch. 275, Sec. 5 (part).)

Sec. 1046.117. 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 facilities for

the medical care, hospital, or welfare needs of district

inhabitants. (Acts 66th Leg., R.S., Ch. 275, Sec. 5 (part).)

Sec.1046.118.LEASES. (a) The board may lease all or part

of the facilities comprising the hospitals or hospital system on

terms the board considers to be in the district's best interest.

(b) When leasing a facility, the board may delegate as it

considers appropriate the board's power to manage, control, and

administer the leased facilities to furnish hospital and medical

care.

lessee to charge rates for services rendered or goods provided at

the leased premises that, together with other sources of the

lessee's revenue, produce an amount sufficient to enable the lessee

to pay the expenses of operating and maintaining the leased

premises required of the lessee under the lease. The lease must

also require the lessee to pay lease rentals to the district that

will be sufficient when taken with any other sources of the

district's estimated revenue that are pledged for the same purposes

to:

(1) pay the interest on any revenue or special

obligation bonds that are payable wholly or partly from the lease

rentals;

(2) create and maintain a sinking fund to pay the

principal of and premium, if any, on the bonds as they become due;

(3) create and maintain a bond reserve fund and any

other fund provided for in the bond order, resolution, or trust

indenture authorizing the issuance of the bonds; and

(4) pay all other charges, fees, costs, and expenses

the lessee is required to pay under the resolution or indenture.

(d) The lease, management agreement, bond resolution, or

trust indenture may prescribe systems, methods, routines,

procedures, and policies for the operation of the facilities owned

by the district.

(e) A lease of a district hospital must require the lessee

to operate the hospital in a manner that complies with the

requirements of this chapter that would apply to the board if the

board were operating the hospital. (Acts 66th Leg., R.S., Ch. 275,

Sec. 18(d) (part).)

Sec. 1046.119. AUTHORITY TO SELL OR CLOSE CERTAIN DISTRICT

HOSPITALS. (a) The board may not sell or close a hospital

transferred to the district by the Edna Hospital District unless

the sale or closing is approved by a two-thirds majority vote of the

district voters voting at an election held for that purpose. A

concurrence of seven directors is required to call the election.

(b) The board may not call another election before the first

anniversary of the date of a previous election held under this

section. (Acts 66th Leg., R.S., Ch. 275, Secs. 4(g) (part), 9(a)

(part).)

Sec.1046.120.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient who resides in the district is admitted to a district

facility, the administrator for the hospital to which the patient

is admitted may have an inquiry made into the circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for

the patient's support.

(b) If the administrator determines that the patient or

those relatives cannot pay all or part of the costs of the care and

treatment in the hospital, the amount of the costs that cannot be

paid becomes a charge against the district.

those relatives can pay for all or part of the costs of the

patient's care and treatment, the patient or those relatives shall

be ordered to pay the district a specified amount each week for the

patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The administrator may collect the amount from the

patient's estate, or from any relative who is legally liable for the

patient's support, in the manner provided by law for the collection

of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the administrator, the board shall hold a hearing

and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue a final order.

(f) A final order of the board may be appealed to the

district court. The substantial evidence rule applies to the

appeal. (Acts 66th Leg., R.S., Ch. 275, Sec. 16.)

Sec.1046.121.AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued. (Acts 66th Leg., R.S., Ch.

275, Sec. 5 (part).)

Sec.1046.122.RECOMMENDATION OF LEGISLATION; NOTICE. (a)

The board may not recommend to the legislature legislation to amend

this chapter unless the recommendation is approved by a concurrence

of seven directors.

(b) The board shall give notice of the date, hour, place,

and subject of a meeting at which the recommendation of legislation

will be discussed in accordance with the open meetings law, Chapter

551, Government Code, except that the board shall furnish to the

county clerk the notice required by Section 551.054, Government

Code, at least 30 days before the date of the meeting.

circulation in the district once a week for four weeks. The first

publication must occur at least 30 days before the date of the

meeting. (Acts 66th Leg., R.S., Ch. 275, Secs. 4(g) (part), 21.)

[Sections 1046.123-1046.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1046.151.BUDGET. (a) Each administrator shall

prepare an annual budget for each hospital for which that person is

the administrator. The board shall combine these budgets into a

single budget for the district.

(b) The proposed budget for the district must contain a

complete financial statement of:

(1) the outstanding obligations of the district;

(2) the cash on hand in 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 amount of revenue and balances

available to cover the proposed budget; and

(7) the estimated tax rate required. (Acts 66th Leg.,

R.S., Ch. 275, Sec. 6 (part).)

Sec.1046.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) Notice of the hearing must be published in a newspaper

of general circulation in the district one time at least 10 days

before the date of the hearing.

present and participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the administrators.

The board may make any changes in the proposed budget that the board

judges to be in the interests of the taxpayers and that the law

warrants. (Acts 66th Leg., R.S., Ch. 275, Sec. 6 (part).)

Sec.1046.153.AMENDMENTS TO BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 66th Leg., R.S., Ch. 275, Sec. 6 (part).)

Sec.1046.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 66th Leg., R.S., Ch. 275, Sec. 6 (part).)

Sec.1046.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that revenue bonds of the district

are outstanding; or

(2) more than once in a 24-month period. (Acts 66th

Leg., R.S., Ch. 275, Sec. 6 (part).)

Sec.1046.156.ANNUAL AUDIT. The board annually shall have

an audit made of the district's financial condition. (Acts 66th

Leg., R.S., Ch. 275, Sec. 6 (part).)

Sec. 1046.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS. The annual audit and other district records shall be open

to inspection at the district's principal office. (Acts 66th Leg.,

R.S., Ch. 275, Sec. 6 (part).)

Sec.1046.158.FINANCIAL REPORT. As soon as practicable

after the close of each fiscal year, the administrators 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 66th Leg., R.S., Ch. 275, Sec. 6 (part).)

Sec.1046.159.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 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 1046.160(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.

the power of the board to place a part of district money on time

deposit or to purchase certificates of deposit.

(d) The district may not deposit money with a bank in an

amount that exceeds the maximum amount secured by the Federal

Deposit Insurance Corporation unless the bank first executes a bond

or other security in an amount sufficient to secure from loss the

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation. (Acts 66th Leg., R.S., Ch. 275,

Sec. 10.)

Sec.1046.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Section 1046.108(c), Section

1046.161, and Subchapter E, 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 reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 66th Leg., R.S., Ch. 275, Secs. 5

(part), 9(b) (part).)

Sec.1046.161.AUTHORITY TO BORROW MONEY; SECURITY. (a)

The district may incur a debt or borrow money on the credit of the

district or secured by any source of revenue, including district

taxes to be imposed in the next 12-month period, that is not pledged

to pay the principal of or interest on district bonds.

(b) The district may incur a debt or borrow money in any

amount at a rate not to exceed the maximum annual percentage rate

allowed by law for district obligations at the time the loan is made

and on other terms the district considers advisable. (Acts 66th

Leg., R.S., Ch. 275, Sec. 8A.)

[Sections 1046.162-1046.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1046.201.GENERAL OBLIGATION BONDS. The board may

issue and sell general obligations 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 or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 66th Leg., R.S., Ch. 275, Sec. 7(a) (part).)

Sec.1046.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1046.201, 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 75

cents on each $100 valuation of all taxable property in the

district. (Acts 66th Leg., R.S., Ch. 275, Sec. 7(a) (part).)

Sec.1046.203.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.

(b) The board, in ordering a bond election, shall 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; and

(5) the maximum maturity of the bonds.

Section 1251.003, Government Code.

(d) The board shall declare the results of the election.

(Acts 66th Leg., R.S., Ch. 275, Sec. 7(a) (part).)

Sec.1046.204.MATURITY OF GENERAL OBLIGATION BONDS.

District general obligation bonds must mature not later than 40

years after the date of issuance. (Acts 66th Leg., R.S., Ch. 275,

Sec. 7(c) (part).)

Sec.1046.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 66th Leg.,

R.S., Ch. 275, Sec. 7(c) (part).)

Sec.1046.206.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used 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 hospitals.

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, and 264.046-264.049, Health and Safety Code, for

issuance of revenue bonds by a county hospital authority. (Acts

66th Leg., R.S., Ch. 275, Sec. 8 (part).)

Sec.1046.207.REFUNDING BONDS. (a) The board may, without

an election, 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 bond applied to the

payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 66th

Leg., R.S., Ch. 275, Secs. 7(a) (part), (b) (part), 8 (part).)

Sec.1046.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) the transfer and issuance of the bonds; and

(3) profits made in the sale of the bonds. (Acts 66th

Leg., R.S., Ch. 275, Sec. 23 (part).)

[Sections 1046.209-1046.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1046.251.IMPOSITION OF AD VALOREM TAX. (a) The board

may impose a tax on all property in the district subject to district

taxation.

(b) The board may impose the tax to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district, including improvements to district facilities.

or interest on revenue bonds issued under this chapter. (Acts 66th

Leg., R.S., Ch. 275, Secs. 11(a) (part), 14(a) (part).)

Sec.1046.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed 75 cents on each $100 valuation of 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 66th

Leg., R.S., Ch. 275, Secs. 3(b) (part), (c) (part), 11(a) (part),

(b) (part).)

Sec. 1046.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR. (a) This section applies unless the board

elects to have taxes assessed and collected under Section 1046.254.

(b) The tax assessor-collector of Jackson County shall

assess and collect taxes imposed by the district. (Acts 66th Leg.,

R.S., Ch. 275, Secs. 14(a) (part), (b) (part).)

Sec. 1046.254. ASSESSMENT AND COLLECTION BY DISTRICT TAX

ASSESSOR-COLLECTOR. (a) The board may elect to have district taxes

assessed and collected by a tax assessor-collector appointed by the

board. An election under this subsection must be made by December 1

and governs the manner in which taxes are assessed and collected,

until changed by a similar resolution.

(b) The district tax assessor-collector must:

(1) reside in the district; and

(2) own real property subject to district taxation.

assessor-collector:

(1) the term of employment; and

(2) compensation. (Acts 66th Leg., R.S., Ch. 275,

Secs. 14(a) (part), (c) (part).)

CHAPTER 1047. JASPER HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1047.001. DEFINITIONS

Sec. 1047.002. AUTHORITY FOR CREATION; JUDICIAL NOTICE

Sec. 1047.003. NATURE OF DISTRICT

Sec. 1047.004. DISTRICT TERRITORY

[Sections 1047.005-1047.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1047.051. BOARD ELECTION; TERM

Sec. 1047.052. QUALIFICATIONS FOR OFFICE

Sec. 1047.053. OATH; BOND; RECORD OF BOND AND OATH

Sec. 1047.054. BOARD VACANCY; SPECIAL ELECTION

Sec. 1047.055. OFFICERS

Sec. 1047.056. REMOVAL FROM OFFICE

Sec. 1047.057. COMPENSATION; EXPENSES

Sec. 1047.058. MEETINGS

Sec. 1047.059. VOTING REQUIREMENT

Sec. 1047.060. MAINTENANCE OF RECORDS

Sec. 1047.061. EMPLOYEES

[Sections 1047.062-1047.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1047.101. GENERAL POWERS

Sec. 1047.102. HOSPITAL SYSTEM

Sec. 1047.103. EMINENT DOMAIN

Sec. 1047.104. GIFTS AND ENDOWMENTS

Sec. 1047.105. CONTRACT IN NAME OF DISTRICT

Sec. 1047.106. CONSTRUCTION CONTRACTS

Sec. 1047.107. AUTHORITY TO SUE AND BE SUED

[Sections 1047.108-1047.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1047.151. BOOK OF ACCOUNTS; ANNUAL AUDIT

Sec. 1047.152. DEPOSITORY

Sec. 1047.153. PURCHASING AUTHORITY

Sec. 1047.154. PAYMENT VOUCHERS

[Sections 1047.155-1047.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1047.201. BONDS

Sec. 1047.202. CANCELLATION OF BOND

Sec. 1047.203. RECORD OF BOND ISSUANCE

Sec. 1047.204. REFUNDING BONDS

Sec. 1047.205. REGISTRATION OF REFUNDING BONDS

Sec. 1047.206. TAX TO PAY REFUNDING BONDS

Sec. 1047.207. BOND PROCEEDS

Sec. 1047.208. BOND ELECTION EXPENSES

[Sections 1047.209-1047.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1047.251. IMPOSITION OF AD VALOREM TAX

Sec. 1047.252. TAX RATE

Sec. 1047.253. TAX ASSESSOR-COLLECTOR

[Sections 1047.254-1047.300 reserved for expansion]

SUBCHAPTER G. MERGER

Sec. 1047.301. MERGER

CHAPTER 1047. JASPER HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1047.001.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 Jasper Hospital District.

(Acts 58th Leg., R.S., Ch. 56, Sec. 1 (part); New.)

Sec.1047.002.AUTHORITY FOR CREATION; JUDICIAL NOTICE.

(a) The district is created under Section 9, Article IX, Texas

Constitution, and this chapter.

(b) A court shall take judicial notice of the district's

establishment. (Acts 58th Leg., R.S., Ch. 56, Secs. 1 (part), 14(a)

(part).)

Sec.1047.003.NATURE OF DISTRICT. The district is a

governmental agency. (Acts 58th Leg., R.S., Ch. 56, Sec. 14(a)

(part).)

Sec.1047.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of County

Commissioners Precincts 1 and 2 of Jasper County, as those

boundaries existed on April 12, 1963. (Acts 58th Leg., R.S., Ch.

56, Sec. 1 (part).)

[Sections 1047.005-1047.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1047.051.BOARD ELECTION; TERM. (a) The board

consists of nine directors elected from the district at large.

(b) Unless four-year terms are established under Section

285.081, Health and Safety Code, directors serve two-year terms,

with:

(1) four directors elected in even-numbered years; and

(2) five directors elected in odd-numbered years.

(Acts 58th Leg., R.S., Ch. 56, Secs. 2(c) (part), 13(b).)

Sec.1047.052.QUALIFICATIONS FOR OFFICE. A person may not

be elected or appointed as a director unless the person:

(1) is a district resident;

(2) owns land in the district subject to taxation; and

(3) is at least 18 years of age at the time of the

election. (Acts 58th Leg., R.S., Ch. 56, Sec. 13(a).)

Sec.1047.053.OATH; BOND; RECORD OF BOND AND OATH. (a)

Before undertaking any official duties, each director must take an

oath to faithfully discharge the duties of office without favor or

partiality.

(b) Each director shall give 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.

secretary. (Acts 58th Leg., R.S., Ch. 56, Secs. 13(k) (part), (l).)

Sec.1047.054.BOARD VACANCY; SPECIAL ELECTION. (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 six,

the remaining directors shall call a special election to fill the

vacancies. If the directors do not call the election within 15 days

after the vacancies occur, the county judge of Jasper County, on

petition of a county voter or creditor, shall:

(1) order a special election;

(2) set the election date;

(3) order a county sheriff to publish notice of the

election; and

(4) name the officers to hold the election.

(1) the election returns shall be made to and filed

with the county clerk's office; and

(2) the county clerk shall declare the results.

(d) Officers elected under this section shall furnish bond

and qualify in the same manner as a director elected in a general

election under this chapter. (Acts 58th Leg., R.S., Ch. 56, Sec.

13(c) (part).)

Sec.1047.055.OFFICERS. (a) The board shall elect from

among its members a president and a secretary.

(b) Each officer of the board serves until the next

directors' election.

unexpired term by appointment. (Acts 58th Leg., R.S., Ch. 56, Secs.

3 (part), 13(c) (part), (d) (part).)

Sec.1047.056.REMOVAL FROM OFFICE. A director may be

removed from office in the same manner and for the same causes as

county officers under state law. (Acts 58th Leg., R.S., Ch. 56,

Sec. 13(m).)

Sec.1047.057.COMPENSATION; EXPENSES. A director serves

without compensation but shall be reimbursed for actual expenses

incurred in the performance of the director's duties under this

chapter. (Acts 58th Leg., R.S., Ch. 56, Sec. 13(n).)

Sec.1047.058.MEETINGS. (a) The board shall:

(1) meet at least once a month; and

(2) hold special meetings as the board considers

necessary.

(b) A taxpayer, resident, or interested party:

(1) may attend a board meeting but may not participate

in a meeting without the consent of the board; and

(2) may present any matter to the board in an orderly

manner. (Acts 58th Leg., R.S., Ch. 56, Sec. 13(e).)

Sec.1047.059.VOTING REQUIREMENT. A concurrence of five

directors is sufficient in any matter relating to district

business. (Acts 58th Leg., R.S., Ch. 56, Sec. 13(d) (part).)

Sec.1047.060.MAINTENANCE OF RECORDS. (a) The board

shall:

(1) keep an account of all board meetings and

proceedings; and

(2) maintain in a safe place all district records and

accounts, including all contracts, notices, duplicate vouchers,

and duplicate receipts.

(b) The information described by Subsection (a) shall be

delivered to the board's successors in office. (Acts 58th Leg.,

R.S., Ch. 56, Sec. 13(f).)

Sec.1047.061.EMPLOYEES. The board:

(1) may employ a general manager or administrator, an

attorney, a bookkeeper, and an architect; and

(2) shall employ all other employees necessary for the

proper handling and operation of the district. (Acts 58th Leg.,

R.S., Ch. 56, Sec. 13(i).)

[Sections 1047.062-1047.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1047.101.GENERAL POWERS. (a) The board has full

management and control of all district business. The board may

negotiate and contract with any person to purchase or lease land, to

construct and equip a hospital system, and to operate and maintain

the hospital.

(b) The district has the powers of government and the

authority to exercise the rights, privileges, and functions

concerning the purposes for which the district was created that are

conferred by this chapter and any other law in this state from which

the district is entitled to benefit. (Acts 58th Leg., R.S., Ch. 56,

Secs. 3 (part), 14(b) (part).)

Sec.1047.102.HOSPITAL SYSTEM. The district may contract

for the purchase of land, for the hospital system, and for the

construction of the hospital. (Acts 58th Leg., R.S., Ch. 56, Sec.

14(b) (part).)

Sec.1047.103.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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 58th Leg., R.S., Ch. 56, Sec. 8.)

Sec.1047.104.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust 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. 56, Sec. 11.)

Sec.1047.105.CONTRACT IN NAME OF DISTRICT. The district

shall contract in the name of the district. (Acts 58th Leg., R.S.,

Ch. 56, Sec. 14(a) (part).)

Sec.1047.106.CONSTRUCTION CONTRACTS. (a) A contract for

making and constructing improvements authorized by this chapter and

any necessary related work for which the cost exceeds $10,000 shall

be awarded:

(1) to the lowest responsible bidder who furnishes

satisfactory evidence that the bidder possesses the equipment and

facilities essential to properly perform the contract; and

(2) after giving notice by:

(A) advertising once a week for four weeks in one

or more newspapers of general circulation in this state; and

(B) posting a notice for at least 10 days at the

courthouse door.

(b) The contract must be in writing and be signed by the

contractors and the directors. A copy of the signed contract shall

be filed with the depository and is subject to inspection by all

interested parties.

specifications and under the supervision of the board and district

agents. (Acts 58th Leg., R.S., Ch. 56, Secs. 6(a), (c).)

Sec.1047.107.AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued in the district's own name in

any court of this state. (Acts 58th Leg., R.S., Ch. 56, Sec. 14(a)

(part).)

[Sections 1047.108-1047.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1047.151.BOOK OF ACCOUNTS; ANNUAL AUDIT. (a) The

board shall have kept a complete book of accounts for the district.

(b) On June 1 of each year, the board shall select a

competent auditor to examine the accounts, books, and reports of

the depository, the tax assessor-collector, and the board.

the report with the depository, the county clerk, and the board.

(d) The report must state the purposes for which money from

each fund was spent. (Acts 58th Leg., R.S., Ch. 56, Sec. 13(h).)

Sec.1047.152.DEPOSITORY. The board shall select a

depository for the district in the manner provided by law for the

selection of a county depository. The depository serves for two

years until a successor is selected and qualified. (Acts 58th Leg.,

R.S., Ch. 56, Sec. 9.)

Sec.1047.153.PURCHASING AUTHORITY. The board may

purchase all necessary supplies, materials, and office equipment to

meet the needs of the district. (Acts 58th Leg., R.S., Ch. 56, Sec.

13(j).)

Sec.1047.154.PAYMENT VOUCHERS. A voucher for the payment

of district money shall be signed by at least two directors. (Acts

58th Leg., R.S., Ch. 56, Sec. 13(g).)

[Sections 1047.155-1047.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1047.201.BONDS. The district may issue bonds to:

(1) purchase a site for, construct, and initially

equip a hospital system; and

(2) purchase, lease, acquire, equip, maintain, and

operate a hospital system. (Acts 58th Leg., R.S., Ch. 56, Sec. 1

(part).)

Sec.1047.202.CANCELLATION OF BOND. (a) On the payment of

interest or for the redemption of district bonds, the depository

shall receive and cancel any interest coupon paid or bond

discharged.

(b) When the interest coupon or bond is delivered to the

board:

(1) the account of the depository shall be credited

with the amount of the coupon or bond; and

(2) the coupon or bond shall be canceled and

destroyed. (Acts 58th Leg., R.S., Ch. 56, Sec. 5(b).)

Sec.1047.203.RECORD OF BOND ISSUANCE. (a) When bonds are

issued, the board shall procure and deliver to the county treasurer

a well-bound book containing a list of the following information

for all bonds:

(1) manner of payment;

(2) amount of the bonds;

(3) rate of interest;

(4) date of issuance;

(5) due date;

(6) location where payable;

(7) amount received for the bonds; and

(8) the tax imposed to pay the interest on and redeem

the bonds.

(b) The book described by Subsection (a) shall be open to

inspection at all times to taxpayers or bondholders.

(1) enter the payment in the book described by

Subsection (a); and

(2) receive for services the same fees allowed by law

for recording the payment as a county clerk recording deeds. (Acts

58th Leg., R.S., Ch. 56, Sec. 5(c).)

Sec.1047.204.REFUNDING BONDS. (a) The board may issue

refunding bonds to refund outstanding bonds issued by the district

with the consent of the holders of the bonds to be refunded.

(b) Before issuing refunding bonds, any sum to the credit of

any sinking fund account on hand shall be:

(1) deducted in determining the amount of refunding

bonds to be issued; and

(2) applied to the payment of the outstanding bonds.

(Acts 58th Leg., R.S., Ch. 56, Sec. 5(d) (part).)

Sec.1047.205.REGISTRATION OF REFUNDING BONDS. (a) After

registration of refunding bonds, the comptroller shall:

(1) cancel the bonds to be refunded and the interest

coupons for those bonds; and

(2) deliver the refunding bonds to the proper party.

(b) Bonds to be refunded may be presented for cancellation

in installments with a corresponding amount of refunding bonds

registered and delivered as provided by this section. (Acts 58th

Leg., R.S., Ch. 56, Sec. 5(d) (part).)

Sec.1047.206.TAX TO PAY REFUNDING BONDS. (a) Before

refunding bonds authorized by Section 1047.204 are delivered, the

board shall impose a sufficient tax to pay the principal of and

interest on the bonds.

(b) The refunding of any bonds does not affect any taxes

already due. (Acts 58th Leg., R.S., Ch. 56, Sec. 5(d) (part).)

Sec.1047.207.BOND PROCEEDS. The directors shall promptly

pay over the proceeds from the sale of district bonds to the

depository to the credit of the district. (Acts 58th Leg., R.S.,

Ch. 56, Sec. 5(a) (part).)

Sec.1047.208.BOND ELECTION EXPENSES. All expenses

incident to holding a bond election shall be paid out of any

district funds except the interest and sinking funds for bonds.

(Acts 58th Leg., R.S., Ch. 56, Sec. 7 (part).)

[Sections 1047.209-1047.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1047.251.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:

(1) pay the principal of and interest on bonds

authorized by Section 1047.201; and

(2) maintain and operate a hospital or hospital

system. (Acts 58th Leg., R.S., Ch. 56, Sec. 1 (part).)

Sec.1047.252.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 58th Leg., R.S., Ch. 56, Sec. 1

(part).)

Sec.1047.253.TAX ASSESSOR-COLLECTOR. The tax

assessor-collector of Jasper County shall assess and collect taxes

for the district. (Acts 58th Leg., R.S., Ch. 56, Sec. 15(a)

(part).)

[Sections 1047.254-1047.300 reserved for expansion]

SUBCHAPTER G. MERGER

Sec.1047.301.MERGER. (a) If a countywide hospital

district is created for Jasper County or if a district is created

for the territory in Jasper County that is not included in the

Jasper Hospital District, the board may choose to merge with the

newly created hospital district if:

(1) the newly created hospital district assumes all

outstanding indebtedness of the Jasper Hospital District; and

(2) the merger of districts is approved by the

majority of the voters voting at an election held by the district.

(b) Notice of an election under this section must be given

in the same manner as provided for an election to elect directors.

(Acts 58th Leg., R.S., Ch. 56, Sec. 16.)

CHAPTER 1048. KARNES COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1048.001. DEFINITIONS

Sec. 1048.002. AUTHORITY FOR CREATION

Sec. 1048.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1048.004. DISTRICT TERRITORY

Sec. 1048.005. CORRECTION OF INVALID PROCEDURES

Sec. 1048.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1048.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1048.008-1048.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1048.051. BOARD ELECTION; TERM

Sec. 1048.052. NOTICE OF ELECTION

Sec. 1048.053. QUALIFICATIONS FOR OFFICE

Sec. 1048.054. BOND

Sec. 1048.055. BOARD VACANCY

Sec. 1048.056. OFFICERS

Sec. 1048.057. COMPENSATION; EXPENSES

Sec. 1048.058. VOTING REQUIREMENT

Sec. 1048.059. DISTRICT ADMINISTRATOR

Sec. 1048.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1048.061. EMPLOYEES; APPOINTMENT AND DISMISSAL OF STAFF

Sec. 1048.062. SENIORITY; RETIREMENT BENEFITS

[Sections 1048.063-1048.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1048.101. DISTRICT RESPONSIBILITY

Sec. 1048.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1048.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1048.104. HOSPITAL SYSTEM

Sec. 1048.105. RULES

Sec. 1048.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1048.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1048.108. EMINENT DOMAIN

Sec. 1048.109. GIFTS AND ENDOWMENTS

Sec. 1048.110. CONSTRUCTION AND PURCHASE CONTRACTS

Sec. 1048.111. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1048.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR HOSPITAL TREATMENT

Sec. 1048.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1048.114. CARE AND TREATMENT FOR INDIGENT

Sec. 1048.115. NONPROFIT CORPORATION

Sec. 1048.116. AUTHORITY TO SUE AND BE SUED

[Sections 1048.117-1048.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1048.151. BUDGET

Sec. 1048.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1048.153. AMENDMENTS TO BUDGET

Sec. 1048.154. RESTRICTION ON EXPENDITURES

Sec. 1048.155. FISCAL YEAR

Sec. 1048.156. ANNUAL AUDIT

Sec. 1048.157. INSPECTION OF AUDIT AND DISTRICT

RECORDS

Sec. 1048.158. FINANCIAL REPORT

Sec. 1048.159. DEPOSITORY

Sec. 1048.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1048.161-1048.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1048.201. GENERAL OBLIGATION BONDS

Sec. 1048.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1048.203. BOND ELECTION

Sec. 1048.204. REVENUE BONDS

Sec. 1048.205. REFUNDING BONDS

Sec. 1048.206. ADDITIONAL MEANS OF SECURING REPAYMENT

OF BONDS

Sec. 1048.207. MATURITY OF BONDS

Sec. 1048.208. EXECUTION OF BONDS

Sec. 1048.209. USE OF BOND PROCEEDS

Sec. 1048.210. BONDS EXEMPT FROM TAXATION

[Sections 1048.211-1048.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1048.251. IMPOSITION OF AD VALOREM TAX

Sec. 1048.252. TAX RATE

Sec. 1048.253. TAX ASSESSOR-COLLECTOR

[Sections 1048.254-1048.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1048.301. DISSOLUTION; ELECTION

Sec. 1048.302. NOTICE OF ELECTION

Sec. 1048.303. BALLOT

Sec. 1048.304. ELECTION RESULTS

Sec. 1048.305. TRANSFER OR ADMINISTRATION OF ASSETS

Sec. 1048.306. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES

Sec. 1048.307. REPORT; DISSOLUTION ORDER

CHAPTER 1048. KARNES COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1048.001.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 Karnes County Hospital

District. (New.)

Sec.1048.002.AUTHORITY FOR CREATION. The district is

created under the authority of Section 9, Article IX, Texas

Constitution. (Acts 61st Leg., R.S., Ch. 591, Sec. 1.)

Sec.1048.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 61st Leg., R.S., Ch. 591, Sec. 22 (part).)

Sec.1048.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Karnes County.

(Acts 61st Leg., R.S., Ch. 591, Sec. 2.)

Sec.1048.005.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 61st Leg., R.S., Ch. 591, Sec. 23 (part).)

Sec. 1048.006. 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 61st

Leg., R.S., Ch. 591, Sec. 21 (part).)

Sec.1048.007.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 61st Leg., R.S., Ch. 591, Sec. 21 (part).)

[Sections 1048.008-1048.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1048.051.BOARD ELECTION; TERM. (a) The board is

governed by seven directors elected at large by place.

(b) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve two-year terms;

(2) an election shall be held each year on the May

uniform election date under Section 41.001, Election Code; and

(3) the terms of the directors elected to places one

through four expire in odd-numbered years and the terms of the

directors elected to places five through seven expire in

even-numbered years. (Acts 61st Leg., R.S., Ch. 591, Secs. 5(a),

(a-1) (part), (a-2).)

Sec.1048.052.NOTICE OF ELECTION. Notice of an election of

directors shall be published in a newspaper or newspapers that

individually or collectively have general circulation in the

district in accordance with Section 4.003, Election Code. (Acts

61st Leg., R.S., Ch. 591, Sec. 5(a-3) (part).)

Sec.1048.053.QUALIFICATIONS FOR OFFICE. (a) A person may

not be elected or appointed as a director unless the person is:

(1) a qualified voter; and

(2) a resident of the place for which the person is a

candidate.

(b) To be eligible to hold office on the board, a person must

be a resident of the place for which the person is elected, as

designated by the following political subdivisions:

(1) for place one, Falls City Common School District;

(2) for place two, Runge Independent School District

and Nordheim Independent School District;

(3) for places three and four, Karnes City Independent

School District and Nixon Independent School District; and

(4) for places five, six, and seven, Kenedy

Independent School District, Pawnee Independent School District,

and Pettus Independent School District.

person is:

(1) the district administrator;

(2) a district employee; or

(3) a hospital medical staff member. (Acts 61st Leg.,

R.S., Ch. 591, Secs. 5(a-1) (part), (b).)

Sec.1048.054.BOND. (a) Each director shall execute a

good and sufficient bond for $5,000 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. (Acts

61st Leg., R.S., Ch. 591, Sec. 5(a-5) (part).)

Sec.1048.055.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. 591,

Sec. 5(a-4).)

Sec.1048.056.OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its

members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

unexpired term. (Acts 61st Leg., R.S., Ch. 591, Sec. 5(c).)

Sec.1048.057.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 61st Leg., R.S., Ch.

591, Sec. 5(e).)

Sec.1048.058.VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business. (Acts 61st Leg., R.S., Ch. 591, Sec. 5(d) (part).)

Sec.1048.059.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 is entitled to the compensation determined by the board.

(Acts 61st Leg., R.S., Ch. 591, Sec. 6(d) (part).)

Sec.1048.060.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 61st

Leg., R.S., Ch. 591, Sec. 6(d) (part).)

Sec. 1048.061. EMPLOYEES; APPOINTMENT AND DISMISSAL OF

STAFF. (a) The board may appoint to or dismiss from the staff the

physicians, dentists, and podiatrists the board determines

necessary for the efficient operation of the district and may make

temporary appointments as necessary.

(b) The district may employ the fiscal agents, accountants,

architects, and attorneys the board considers proper.

authority to employ district employees, including technicians and

nurses. (Acts 61st Leg., R.S., Ch. 591, Secs. 6(e), (f), 17.)

Sec.1048.062.SENIORITY; RETIREMENT BENEFITS. The board

may:

(1) adopt rules related 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

district employees continuously employed in the operation or

management of hospital facilities acquired or constructed by the

district. (Acts 61st Leg., R.S., Ch. 591, Sec. 6(b).)

[Sections 1048.063-1048.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1048.101.DISTRICT RESPONSIBILITY. (a) The district

has full responsibility for providing hospital care for the

district's indigent residents.

(b) The district shall provide all necessary hospital and

medical care for the district's needy inhabitants. (Acts 61st

Leg., R.S., Ch. 591, Secs. 3 (part), 20 (part).)

Sec. 1048.102. 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 for hospital purposes or to provide hospital service or

medical care in the district. (Acts 61st Leg., R.S., Ch. 591, Secs.

3 (part), 20 (part).)

Sec.1048.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 61st Leg., R.S., Ch.

591, Sec. 6(a) (part).)

Sec.1048.104.HOSPITAL SYSTEM. (a) 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.

(b) The hospital system may include:

(1) a hospital, clinic, health facility, extended care

facility, outpatient facility, rehabilitation or recreation

facility, pharmacy, medical laboratory, dental laboratory,

physicians' office building, laundry facility, administrative

facility, or other building related to a health facility or system;

(2) a single or multiunit housing facility for medical

staff, nurses, interns, other employees of a health facility or

system, patients of a health facility, or relatives of patients

admitted for treatment or care in a health facility;

(3) a support facility related to a hospital project,

including an office building, a parking lot or other parking

structure, or a maintenance, safety, or utility facility, and any

equipment related to the support facility; and

(4) any other facilities the board determines

necessary for hospital or medical care. (Acts 61st Leg., R.S., Ch.

591, Secs. 3 (part), 10(a) (part).)

Sec.1048.105.RULES. The board may adopt rules governing

the operation of the hospital, the hospital system, and the

district's staff and employees. (Acts 61st Leg., R.S., Ch. 591,

Sec. 6(c) (part).)

Sec.1048.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of making purchases and

expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 61st

Leg., R.S., Ch. 591, Sec. 11 (part).)

Sec. 1048.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location of buildings required to maintain an adequate hospital

system.

(b) The board may lease all or part of the district's

buildings and other facilities on terms considered to be in the best

interest of the district's inhabitants. The term of the lease may

not exceed 25 years.

district's hospital system and mortgage or pledge the property as

security for the payment of the purchase price. A contract entered

into under this subsection must provide that the entire obligation

be retired not later than the fifth anniversary of the date of the

contract.

(d) The district may sell or otherwise dispose of any

property, including equipment, on terms the board finds are in the

best interest of the district's inhabitants. (Acts 61st Leg.,

R.S., Ch. 591, Secs. 10(a) (part), (b) (part), (c), 11 (part).)

Sec.1048.108.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 for the district to exercise

a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, except the

district is not required to deposit in the trial court money or a

bond as provided by Section 21.021, Property Code.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 61st Leg., R.S., Ch. 591, Sec.

15.)

Sec.1048.109.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 61st Leg., R.S., Ch. 591,

Sec. 19.)

Sec.1048.110.CONSTRUCTION AND PURCHASE CONTRACTS. A

construction or purchase contract that involves an expenditure of

more than the amount provided by Section 271.024, Local Government

Code, must comply with the competitive bidding requirements

provided by Subchapter B, Chapter 271, Local Government Code.

(Acts 61st Leg., R.S., Ch. 591, Sec. 11 (part).)

Sec.1048.111.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a district facility. (Acts 61st Leg., R.S., Ch. 591, Sec. 10(b)

(part).)

Sec. 1048.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

HOSPITAL TREATMENT. (a) The board may contract with a county or

municipality located outside the district's boundaries for the

hospitalization of a sick or injured person of that county or

municipality.

(b) The board may contract with this state or a federal

agency for the hospital treatment of a sick or injured person.

(Acts 61st Leg., R.S., Ch. 591, Sec. 6(g) (part).)

Sec. 1048.113. 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 61st Leg., R.S., Ch.

591, Sec. 6(g) (part).)

Sec.1048.114.CARE AND TREATMENT FOR INDIGENT. The

district shall provide health care and treatment to an individual

determined to be indigent in accordance with policies and

procedures adopted by the board. (Acts 61st Leg., R.S., Ch. 591,

Sec. 18.)

Sec.1048.115.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.

(a-1) On or before December 31, 2009, the district may

create and sponsor a nonprofit corporation under the Texas

Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's

Texas Civil Statutes) or the Business Organizations Code, as

applicable, 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.

any manner in which the district may invest the district's money,

including investing money as authorized by Chapter 2256, Government

Code.

(d) The board shall establish controls to ensure that the

corporation uses its money as required by this section.

(e) This subsection and Subsection (a-1) expire December

31, 2009. (Acts 61st Leg., R.S., Ch. 591, Sec. 6A.)

Sec.1048.116.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 are entitled. (Acts 61st

Leg., R.S., Ch. 591, Sec. 6(c) (part).)

[Sections 1048.117-1048.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1048.151.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 the district, including:

(1) the outstanding obligations of the district;

(2) the cash on hand in 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, with the balances expected at the

end of the year in which the budget is being prepared;

(5) the estimated revenue and balances available to

cover the proposed expenditures and disbursements; and

(6) the estimated receipts and collections for the

following fiscal year. (Acts 61st Leg., R.S., Ch. 591, Sec. 7(c).)

Sec.1048.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) Not later than the 10th day before the date of the

hearing, notice of the hearing shall be published one time in a

newspaper or newspapers that individually or collectively have

general circulation in the district.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the taxpayers

and that the law warrants. (Acts 61st Leg., R.S., Ch. 591, Secs.

7(d), (f) (part).)

Sec.1048.153.AMENDMENTS TO BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 61st Leg., R.S., Ch. 591, Sec. 7(f) (part).)

Sec.1048.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 61st Leg., R.S., Ch. 591, Sec. 7(e).)

Sec.1048.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period in which revenue bonds of the

district are outstanding; or

(2) more than once in a 24-month period. (Acts 61st

Leg., R.S., Ch. 591, Sec. 7(a).)

Sec.1048.156.ANNUAL AUDIT. The board annually shall have

an independent audit made of the district's financial condition.

(Acts 61st Leg., R.S., Ch. 591, Sec. 7(b) (part).)

Sec.1048.157.INSPECTION OF AUDIT AND DISTRICT RECORDS.

The annual audit and other district records shall be open to

inspection at the district's principal office. (Acts 61st Leg.,

R.S., Ch. 591, Sec. 7(b) (part).)

Sec.1048.158.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 disbursements of that

money. (Acts 61st Leg., R.S., Ch. 591, Sec. 7(g).)

Sec.1048.159.DEPOSITORY. (a) The board shall select one

or more banks in the district to serve as a depository for district

money.

(b) District money, other than money invested as provided by

Section 1048.160(b), and money transmitted to a bank for payment of

bonds or obligations issued by the district, shall be deposited as

received with the depository bank and shall remain on deposit.

the power of the board to place a part of district money on time

deposit or to purchase certificates of deposit. (Acts 61st Leg.,

R.S., Ch. 591, Sec. 12.)

Sec.1048.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Section 1048.107(c) and by

Subchapter E, 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 reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 61st Leg., R.S., Ch. 591, Secs. 6(a)

(part), 11 (part).)

[Sections 1048.161-1048.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1048.201.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 or improvements; and

(2) equipping buildings or improvements for hospital

system purposes. (Acts 61st Leg., R.S., Ch. 591, Sec. 8(a) (part).)

Sec.1048.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1048.201, 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

limit approved by the voters at the election authorizing the

imposition of the tax. (Acts 61st Leg., R.S., Ch. 591, Sec. 8(a)

(part).)

Sec.1048.203.BOND ELECTION. (a) The district may issue

bonds, other than refunding bonds, wholly or partly secured by an ad

valorem tax only if the bonds are authorized by a majority of the

district 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 61st Leg., R.S., Ch. 591, Secs. 8(a) (part),

9A(b).)

Sec.1048.204.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, equip, or

renovate buildings or improvements for hospital system purposes; or

(2) acquire sites to be used for the hospital system.

(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 hospitals.

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, and 264.046-264.049, Health and Safety Code, for

issuance of revenue bonds by a county hospital authority. (Acts

61st Leg., R.S., Ch. 591, Sec. 9 (part).)

Sec.1048.205.REFUNDING BONDS. (a) The board may, without

an election, 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 the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 61st

Leg., R.S., Ch. 591, Secs. 8(b) (part), 9 (part), 9A(b) (part).)

Sec. 1048.206. 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

1048.202 and revenue and other sources as authorized by Section

1048.204. (Acts 61st Leg., R.S., Ch. 591, Sec. 9A(a).)

Sec.1048.207.MATURITY OF BONDS. District bonds must

mature not later than the 40th anniversary of the date of issuance.

(Acts 61st Leg., R.S., Ch. 591, Sec. 8(c) (part).)

Sec.1048.208.EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 61st Leg.,

R.S., Ch. 591, Sec. 8(c) (part).)

Sec.1048.209.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 issuance of the bonds;

(6) costs related to the acquisition of land or

interests in land for a project or facility to be provided through

the bonds; and

(7) costs of construction of a project or facility to

be provided through the bonds, including the payment of related

professional services and expenses. (Acts 61st Leg., R.S., Ch.

591, Sec. 9B.)

Sec.1048.210.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) profits made in the sale of the bonds. (Acts 61st

Leg., R.S., Ch. 591, Sec. 22 (part).)

[Sections 1048.211-1048.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1048.251.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 and other obligations issued or assumed by the district for

hospital purposes;

(2) provide for the operation and maintenance of the

district and hospital system;

(3) make improvements and additions to the hospital

system; and

(4) acquire necessary sites for the hospital system by

purchase, lease, or condemnation. (Acts 61st Leg., R.S., Ch. 591,

Sec. 13 (part).)

Sec.1048.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed 75 cents on each $100 valuation of 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 61st

Leg., R.S., Ch. 591, Sec. 13 (part).)

Sec.1048.253.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 61st Leg., R.S., Ch. 591, Sec.

16(b).)

[Sections 1048.254-1048.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec.1048.301.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.

a petition requesting an election that is signed by at least 15

percent of the registered voters in the district.

(d) The order calling the election must state:

(1) the nature of the election, including the

proposition to appear on the ballot;

(2) the date of the election;

(3) the hours during which the polls will be open; and

(4) the location of the polling places.

(e) Section 41.001, Election Code, does not apply to an

election ordered under this section. (Acts 61st Leg., R.S., Ch.

591, Secs. 24A(a), (b), (c) (part) (d).)

Sec.1048.302.NOTICE OF ELECTION. (a) The board shall

give notice of an election under this subchapter by publishing once

a week for two consecutive weeks a substantial copy of the election

order in a newspaper with general circulation in the district.

(b) The first publication of the notice must appear not

later than the 35th day before the date set for the election. (Acts

61st Leg., R.S., Ch. 591, Sec. 24A(e).)

Sec.1048.303.BALLOT. The ballot for an election under

this subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the Karnes County Hospital

District." (Acts 61st Leg., R.S., Ch. 591, Sec. 24A(f).)

Sec.1048.304.ELECTION RESULTS. (a) If a majority of the

votes in an election under this subchapter favor dissolution, the

board shall find that the district is dissolved.

(b) If a majority of the votes in the election do not favor

dissolution, the board shall continue to administer the district

and another election on the question of dissolution may not be held

before the first anniversary of the date of the most recent election

to dissolve the district. (Acts 61st Leg., R.S., Ch. 591, Sec.

24A(g).)

Sec.1048.305.TRANSFER OR ADMINISTRATION OF ASSETS. (a)

If a majority of the votes in the election held under this

subchapter favor dissolution, the board shall:

(1) transfer the land, buildings, improvements,

equipment, and other assets that belong to the district to Karnes

County or another governmental entity in Karnes 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.

administers the property, assets, and debts of the district under

Subsection (a)(2), the district is dissolved when all money has

been disposed of and all district debts have been paid or settled.

(Acts 61st Leg., R.S., Ch. 591, Secs. 24A(h), (i), (j).)

Sec. 1048.306. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES. (a) After the board finds that the district is dissolved,

the board shall:

(1) determine the debt owed by the district; and

(2) impose on the property included in the district's

tax rolls a tax that is in proportion of the debt to the property

value.

(b) On the payment of all outstanding debts and obligations

of the district, the board shall order the secretary to return to

each district taxpayer the taxpayer's pro rata share of all unused

tax money.

surplus tax money be credited to the taxpayer's county taxes. If a

taxpayer requests the credit, the board shall direct the secretary

to transmit the money to the county tax assessor-collector. (Acts

61st Leg., R.S., Ch. 591, Secs. 24A(k), (l), (m).)

Sec.1048.307.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 Karnes County summarizing the board's actions in dissolving the

district.

(b) Not later than the 10th day after the date the

Commissioners Court of Karnes County receives the report and

determines that the requirements of this subchapter have been

fulfilled, the commissioners court shall enter an order dissolving

the district and releasing the board from any further duty or

obligation. (Acts 61st Leg., R.S., Ch. 591, Secs. 24A(n), (o).)

CHAPTER 1049. KIMBLE COUNTY HOSPITAL DISTRICT OF KIMBLE COUNTY,

TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1049.001. DEFINITIONS

Sec. 1049.002. AUTHORITY FOR CREATION

Sec. 1049.003. DISTRICT TERRITORY

Sec. 1049.004. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1049.005. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1049.006-1049.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1049.051. BOARD ELECTION; TERM

Sec. 1049.052. QUALIFICATIONS FOR OFFICE

Sec. 1049.053. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE

Sec. 1049.054. BOARD VACANCY

Sec. 1049.055. OFFICERS

Sec. 1049.056. COMPENSATION; EXPENSES

Sec. 1049.057. DISTRICT ADMINISTRATOR

Sec. 1049.058. EMPLOYEES

Sec. 1049.059. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

[Sections 1049.060-1049.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1049.101. DISTRICT RESPONSIBILITY

Sec. 1049.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1049.103. MANAGEMENT AND CONTROL OF DISTRICT

Sec. 1049.104. HOSPITAL SYSTEM

Sec. 1049.105. RULES

Sec. 1049.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1049.107. EMINENT DOMAIN

Sec. 1049.108. GIFTS AND ENDOWMENTS

Sec. 1049.109. CONTRACTS FOR HEALTH CARE

Sec. 1049.110. PAYMENT FOR TREATMENT; PROCEDURES

[Sections 1049.111-1049.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1049.151. BUDGET

Sec. 1049.152. PROPOSED BUDGET: NOTICE AND HEARING

Sec. 1049.153. FISCAL YEAR

Sec. 1049.154. ANNUAL AUDIT

Sec. 1049.155. DEPOSITORY

Sec. 1049.156. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1049.157-1049.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1049.201. BONDS

Sec. 1049.202. TAX TO PAY BONDS

Sec. 1049.203. BOND ELECTION

Sec. 1049.204. MATURITY OF BONDS

Sec. 1049.205. EXECUTION OF BONDS

Sec. 1049.206. REVENUE BONDS

[Sections 1049.207-1049.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1049.251. IMPOSITION OF AD VALOREM TAX

Sec. 1049.252. TAX RATE

Sec. 1049.253. TAX ASSESSOR-COLLECTOR

[Sections 1049.254-1049.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1049.301. DISSOLUTION; ELECTION

Sec. 1049.302. NOTICE OF ELECTION

Sec. 1049.303. BALLOT

Sec. 1049.304. ELECTION RESULTS

Sec. 1049.305. AUDIT; TRANSFER OF ASSETS AND

LIABILITIES

CHAPTER 1049. KIMBLE COUNTY HOSPITAL DISTRICT OF KIMBLE COUNTY,

TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1049.001.DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the

district.

(2) "Commissioners court" means the Commissioners

Court of Kimble County.

(3) "Director" means a member of the board.

(4) "District" means the Kimble County Hospital

District of Kimble County, Texas. (New.)

Sec.1049.002.AUTHORITY FOR CREATION. The district is

created under the authority of Section 9, Article IX, Texas

Constitution. (Acts 62nd Leg., R.S., Ch. 873, Sec. 1.)

Sec.1049.003.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Kimble County.

(Acts 62nd Leg., R.S., Ch. 873, Sec. 2.)

Sec. 1049.004. 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 62nd Leg., R.S., Ch. 873, Sec. 18 (part).)

Sec.1049.005.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 62nd Leg., R.S., Ch. 873, Sec. 18 (part).)

[Sections 1049.006-1049.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1049.051.BOARD ELECTION; TERM. (a) The board

consists of seven directors elected from the district at large.

(b) Directors serve staggered three-year terms.

election day prescribed by Section 41.001, Election Code, to elect

the appropriate number of directors. (Acts 62nd Leg., R.S., Ch.

873, Secs. 5(a), (d), (e), (f), (g); Acts 78th Leg., R.S., Ch. 571,

Sec. 4(c).)

Sec.1049.052.QUALIFICATIONS FOR OFFICE. To qualify for

election to the board, a person must:

(1) be at least 18 years of age;

(2) have been a district resident for at least two

years; and

(3) be a qualified property tax paying voter of the

district. (Acts 62nd Leg., R.S., Ch. 873, Sec. 5(b).)

Sec. 1049.053. BOND; RECORD OF BOND AND OATH OR AFFIRMATION

OF OFFICE. (a) Each director 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

director's duties.

(b) The district shall pay for a director's bond.

affirmation of office shall be deposited with the district's

depository for safekeeping. (Acts 62nd Leg., R.S., Ch. 873, Sec.

6(a).)

Sec.1049.054.BOARD VACANCY. If a vacancy occurs in the

office of director, a majority of the directors shall appoint a

director for the unexpired term. (Acts 62nd Leg., R.S., Ch. 873,

Sec. 5(h).)

Sec.1049.055.OFFICERS. The board shall elect from among

its members a president, a secretary, and a treasurer at the first

meeting after each director's election. (Acts 62nd Leg., R.S., Ch.

873, Sec. 6(b).)

Sec.1049.056.COMPENSATION; EXPENSES. A director serves

without compensation but is entitled to reimbursement for necessary

expenses incurred in the performance of official duties. (Acts

62nd Leg., R.S., Ch. 873, Sec. 6(c).)

Sec.1049.057.DISTRICT ADMINISTRATOR. (a) The board may

employ a district administrator to manage the operations of the

hospital system.

(b) The district administrator may employ necessary

personnel to perform the services provided by the hospital system.

(Acts 62nd Leg., R.S., Ch. 873, Sec. 12(e) (part).)

Sec.1049.058.EMPLOYEES. The board may employ an

attorney, a general manager, a bookkeeper, an architect, and other

employees necessary for the efficient operation of the district.

(Acts 62nd Leg., R.S., Ch. 873, Sec. 12(e) (part).)

Sec.1049.059.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

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 62nd Leg., R.S., Ch. 873, Sec. 12(b).)

[Sections 1049.060-1049.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1049.101.DISTRICT RESPONSIBILITY. The district shall

provide all necessary hospital and medical care for the district's

needy inhabitants. (Acts 62nd Leg., R.S., Ch. 873, Sec. 3 (part).)

Sec. 1049.102. 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 62nd Leg., R.S., Ch. 873, Sec. 3 (part).)

Sec.1049.103.MANAGEMENT AND CONTROL OF DISTRICT. The

board has full power to manage and control the district. (Acts 62nd

Leg., R.S., Ch. 873, Sec. 12(a) (part).)

Sec.1049.104.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 62nd Leg., R.S., Ch. 873, Sec. 3

(part).)

Sec.1049.105.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 62nd Leg., R.S., Ch. 873, Sec. 12(c).)

Sec.1049.106.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 62nd Leg., R.S., Ch. 873, Sec. 12(e) (part).)

Sec.1049.107.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in real, personal, or mixed property located in

district territory if the interest is necessary or convenient for

the district to exercise a power or duty 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.

required to:

(1) pay in advance or provide a bond or other security

for costs in the trial court; or

(2) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 62nd Leg., R.S., Ch. 873, Sec.

15.)

Sec.1049.108.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust and

administered by the board under the directions, limitations, or

other provisions prescribed in writing by the donor that are not

inconsistent with the proper management of the district. (Acts

62nd Leg., R.S., Ch. 873, Sec. 12(f).)

Sec.1049.109.CONTRACTS FOR HEALTH CARE. The board may

contract with any public or private entity, including a charitable

organization, the federal government, this state, or any political

subdivision, to provide health care or related services inside or

outside the district. (Acts 62nd Leg., R.S., Ch. 873, Sec. 12(g).)

Sec.1049.110.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

who is liable for the patient's support to pay for the medical and

hospital care received by the patient.

relative legally liable for the patient's support cannot pay all or

part of the costs of the patient's care, the expense of the care

becomes a charge against the district.

(d) If the patient or a relative legally liable for the

patient's support can pay for all or part of the costs of the

patient's care, the board shall:

(1) order the patient or relative to pay the district

each week an amount specified in the order, which must be

proportionate to the person's ability to pay; and

(2) send a billing statement charging that amount to

the person.

(e) The district may collect the amount from the patient's

estate, or from any relative who is 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 62nd Leg., R.S., Ch. 873, Sec. 14.)

[Sections 1049.111-1049.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1049.151.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 62nd Leg., R.S., Ch. 873, Sec. 13(b).)

Sec.1049.152.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 11th day before the date of the hearing.

(1) appear at the hearing; and

(2) be heard regarding any item in the proposed

budget. (Acts 62nd Leg., R.S., Ch. 873, Secs. 13(c), (d).)

Sec.1049.153.FISCAL YEAR. The district's fiscal year is

from October 1 to September 30. (Acts 62nd Leg., R.S., Ch. 873,

Sec. 13(a).)

Sec.1049.154.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 62nd Leg., R.S., Ch. 873, Sec.

12(d).)

Sec.1049.155.DEPOSITORY. (a) The board by resolution

shall designate a bank in Kimble County 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

62nd Leg., R.S., Ch. 873, Sec. 16.)

Sec.1049.156.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.

(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) district bonds that have been authorized but not

sold.

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 62nd

Leg., R.S., Ch. 873, Sec. 12A.)

[Sections 1049.157-1049.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1049.201.BONDS. The district may issue bonds to:

(1) purchase, construct, acquire, repair, or renovate

buildings and improvements; and

(2) equip buildings for hospital purposes. (Acts 62nd

Leg., R.S., Ch. 873, Secs. 9(a) (part), 10(a) (part).)

Sec.1049.202.TAX TO PAY BONDS. The board may issue bonds

under Section 1049.201 only if the board imposes 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.

(Acts 62nd Leg., R.S., Ch. 873, Sec. 10(c).)

Sec.1049.203.BOND ELECTION. (a) The board may issue

bonds under Section 1049.201 only if the bonds are authorized by a

majority of district voters voting in an election held for that

purpose. The total face value of the bonds may not exceed the

amount specified in the election order.

(b) The board may order a bond election at any time.

(1) the time of the election;

(2) the location of the polling places;

(3) the form of the ballots;

(4) the presiding judge for each polling place;

(5) the purpose of the bond issuance;

(6) the amount of the bonds to be authorized;

(7) the maximum interest rate of the bonds; and

(8) the maximum maturity date of the bonds.

(d) A substantial copy of the election order shall be

published 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 not later than the

15th day before the date of the election.

(e) A copy of the election results must be filed with the

county clerk and become a public record. (Acts 62nd Leg., R.S., Ch.

873, Secs. 4(b), (c), (d) (part), 9(a) (part), (b), (d), 10(a)

(part).)

Sec.1049.204.MATURITY OF BONDS. District bonds must

mature not later than 40 years after the date of issuance. (Acts

62nd Leg., R.S., Ch. 873, Sec. 9(c).)

Sec.1049.205.EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds. (Acts

62nd Leg., R.S., Ch. 873, Sec. 10(b) (part).)

Sec.1049.206.REVENUE BONDS. (a) The board may issue and

sell revenue bonds in the name and on the faith and credit of the

district to purchase, construct, acquire, repair, renovate, or

equip buildings or improvements for district 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.

deed of trust on all or part of district property.

(d) The bonds must be issued in the manner provided by

Sections 264.042, 264.043, and 264.046-264.049, Health and Safety

Code, for the issuance of revenue bonds by a county hospital

authority. (Acts 62nd Leg., R.S., Ch. 873, Sec. 11A.)

[Sections 1049.207-1049.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1049.251.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 may be used only to:

(1) pay the interest on and create a sinking fund for

bonds issued under this chapter;

(2) provide for the operation and maintenance of the

district and hospital system;

(3) make improvements and additions to the hospital

system; or

(4) acquire sites for additions to the hospital

system. (Acts 62nd Leg., R.S., Ch. 873, Secs. 8(a) (part), (c).)

Sec.1049.252.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 62nd Leg., R.S., Ch. 873, Sec. 8(a)

(part).)

Sec.1049.253.TAX ASSESSOR-COLLECTOR. (a) The tax

assessor-collector for Kimble County shall collect taxes for the

district.

(b) The tax assessor-collector is entitled to a reasonable

fee that is agreed to by the district as compensation for the

person's services. (Acts 62nd Leg., R.S., Ch. 873, Secs. 8(d)

(part), (e).)

[Sections 1049.254-1049.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec.1049.301.DISSOLUTION; ELECTION. (a) The district

may be dissolved on approval of a majority of the district voters

voting in an election held for that purpose.

(b) The commissioners court may order an election to

dissolve the district on its own order recorded in the minutes. The

commissioners court shall order the election if the commissioners

court receives a petition from 50 district voters.

(1) the location of the polling places;

(2) the form of the ballots; and

(3) the presiding judge for each polling place. (Acts

62nd Leg., R.S., Ch. 873, Secs. 19(a) (part), (b), (e).)

Sec.1049.302.NOTICE OF ELECTION. (a) The commissioners

court shall publish 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 an election under this

subchapter.

(b) The first notice must be published not later than the

15th day before the date of the election. (Acts 62nd Leg., R.S.,

Ch. 873, Sec. 19(c).)

Sec.1049.303.BALLOT. The ballot for an election under

this subchapter must be printed to permit voting for or against the

proposition: "The Dissolution of Kimble County Hospital District

of Kimble County, Texas." (Acts 62nd Leg., R.S., Ch. 873, Sec.

19(f).)

Sec.1049.304.ELECTION RESULTS. (a) If a majority of the

votes in an election under this subchapter favor dissolution, the

commissioners court shall, within 10 days after the date the

results are filed, declare the results and order the district

dissolved. A copy of the order shall be placed in the minutes of the

court, and a copy shall be sent to the board.

(b) If a majority of the votes are against dissolution, this

does not prevent the holding of other dissolution elections after

the passage of one year.

county clerk and become a public record. (Acts 62nd Leg., R.S., Ch.

873, Secs. 19(d) (part), (g), (h).)

Sec.1049.305.AUDIT; TRANSFER OF ASSETS AND LIABILITIES.

(a) Within 30 days after the election results are filed under

Section 1049.304, the commissioners court shall employ an

independent audit of the dissolved district's assets and

liabilities.

(b) Within 10 days after the audit is completed, the

commissioners court shall:

(1) publish a copy of the audit in a newspaper of

general circulation in the district; and

(2) by declaration:

(A) formally transfer the assets of the dissolved

district to Kimble County; and

(B) formally declare the county liable for all

debts and liabilities incurred by the dissolved district.

general circulation within 10 days after the declarations are made.

(d) Any assets transferred to Kimble County shall be used to

benefit the citizens formerly in the district. (Acts 62nd Leg.,

R.S., Ch. 873, Secs. 19(i), (j), (k), (l).)

CHAPTER 1050. KNOX COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1050.001. DEFINITIONS

Sec. 1050.002. AUTHORITY FOR OPERATION

Sec. 1050.003. POLITICAL SUBDIVISION

Sec. 1050.004. DISTRICT TERRITORY

Sec. 1050.005. CORRECTION OF INVALID PROCEDURES

Sec. 1050.006. PUBLIC PURPOSE; TAX EXEMPTION

[Sections 1050.007-1050.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1050.051. BOARD ELECTION AND APPOINTMENT; TERM

Sec. 1050.052. NOTICE OF ELECTION

Sec. 1050.053. BALLOT PETITION

Sec. 1050.054. QUALIFICATIONS FOR OFFICE

Sec. 1050.055. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE

Sec. 1050.056. BOARD VACANCY

Sec. 1050.057. DIRECTOR RIGHTS, PRIVILEGES, AND DUTIES

Sec. 1050.058. OFFICERS

Sec. 1050.059. COMPENSATION; EXPENSES

Sec. 1050.060. VOTING REQUIREMENT

Sec. 1050.061. EMPLOYEES

Sec. 1050.062. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

Sec. 1050.063. SEAL

[Sections 1050.064-1050.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1050.101. DISTRICT RESPONSIBILITY

Sec. 1050.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION AND DEBT

Sec. 1050.103. RULES

Sec. 1050.104. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1050.105. EMINENT DOMAIN

Sec. 1050.106. GIFTS AND ENDOWMENTS

Sec. 1050.107. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1050.108. AUTHORITY TO SUE AND BE SUED

[Sections 1050.109-1050.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1050.151. BUDGET

Sec. 1050.152. PROPOSED BUDGET: NOTICE AND HEARING

Sec. 1050.153. FISCAL YEAR

Sec. 1050.154. ANNUAL AUDIT

Sec. 1050.155. DEPOSITORY OR TREASURER

Sec. 1050.156. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1050.157-1050.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1050.201. GENERAL OBLIGATION BONDS

Sec. 1050.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1050.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1050.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1050.205. EXECUTION OF GENERAL OBLIGATION BONDS

[Sections 1050.206-1050.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1050.251. IMPOSITION OF AD VALOREM TAX

Sec. 1050.252. TAX RATE

Sec. 1050.253. ELECTION TO INCREASE MAXIMUM TAX RATE

Sec. 1050.254. TAX ASSESSOR-COLLECTOR

CHAPTER 1050. KNOX COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1050.001.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 Knox County Hospital

District. (New.)

Sec.1050.002.AUTHORITY FOR OPERATION. The district

operates in accordance with Section 9, Article IX, Texas

Constitution. (Acts 60th Leg., R.S., Ch. 241, Sec. 1 (part).)

Sec.1050.003.POLITICAL SUBDIVISION. The district is a

political subdivision of this state. (Acts 60th Leg., R.S., Ch.

241, Sec. 17 (part).)

Sec.1050.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Knox County, Texas.

(Acts 60th Leg., R.S., Ch. 241, Sec. 1 (part).)

Sec.1050.005.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 60th Leg., R.S., Ch. 241, Sec. 18 (part).)

Sec.1050.006.PUBLIC PURPOSE; TAX EXEMPTION. All property

owned by the district:

(1) shall be held for public purposes; and

(2) is exempt from taxation of every character. (Acts

60th Leg., R.S., Ch. 241, Sec. 17 (part).)

[Sections 1050.007-1050.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1050.051.BOARD ELECTION AND APPOINTMENT; TERM. (a)

The district is governed by a board of seven directors as follows:

(1) four directors appointed by the Commissioners

Court of Knox County to board positions 1 through 4, with one

director appointed from each of the four county commissioner

precincts as the precincts existed on May 22, 1967; and

(2) three directors elected from the district at large

to board positions 5 through 7.

(b) Directors serve staggered two-year terms.

successor directors on or before the first Saturday in April of each

year. (Acts 60th Leg., R.S., Ch. 241, Sec. 4 (part).)

Sec.1050.052.NOTICE OF ELECTION. At least 10 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper of general circulation in Knox

County. (Acts 60th Leg., R.S., Ch. 241, Sec. 4 (part).)

Sec.1050.053.BALLOT PETITION. A person who wants to have

the person's name printed on the ballot as a candidate for elected

director must file with the board secretary a petition requesting

that action. The petition must:

(1) be signed by at least 25 registered district

voters; and

(2) be filed at least 25 days before the date of the

election. (Acts 60th Leg., R.S., Ch. 241, Sec. 4 (part).)

Sec.1050.054.QUALIFICATIONS FOR OFFICE. (a) A person is

not qualified for appointment or election as a director unless the

person:

(1) is a district resident;

(2) owns land subject to taxation by the district; and

(3) is at least 18 years of age at the time of the

appointment or election.

(b) A person may not be appointed as a director for a

commissioners precinct unless at the time of appointment the person

is a resident of that commissioners precinct. (Acts 60th Leg.,

R.S., Ch. 241, Sec. 4 (part).)

Sec. 1050.055. BOND; RECORD OF BOND AND OATH OR AFFIRMATION

OF OFFICE. (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 or

affirmation of office shall be deposited with the district's

depository bank for safekeeping. (Acts 60th Leg., R.S., Ch. 241,

Sec. 4 (part).)

Sec.1050.056.BOARD VACANCY. (a) If a vacancy occurs in

the office of an elected director, the remaining directors shall

appoint a director for the unexpired term.

(b) If a vacancy occurs in the office of an appointed

director, the Commissioners Court of Knox County shall appoint a

director for the unexpired term. (Acts 60th Leg., R.S., Ch. 241,

Sec. 4 (part).)

Sec.1050.057.DIRECTOR RIGHTS, PRIVILEGES, AND DUTIES.

The directors have identical rights, privileges, and duties in all

matters concerning the board's business. (Acts 60th Leg., R.S.,

Ch. 241, Sec. 4 (part).)

Sec.1050.058.OFFICERS. The board shall elect from among

its members a president and a secretary. (Acts 60th Leg., R.S., Ch.

241, Sec. 4 (part).)

Sec.1050.059.COMPENSATION; EXPENSES. A director 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 60th Leg., R.S., Ch. 241, Sec. 4

(part).)

Sec.1050.060.VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business. (Acts 60th Leg., R.S., Ch. 241, Sec. 4 (part).)

Sec.1050.061.EMPLOYEES. The board may employ a general

manager, attorneys, bookkeepers, architects, or any other

employees considered necessary for the efficient operation of the

district. (Acts 60th Leg., R.S., Ch. 241, Sec. 8 (part).)

Sec.1050.062.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

Except as provided by Section 1050.055, 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. 241, Sec. 8

(part).)

Sec.1050.063.SEAL. The board may adopt a seal for the

district. (Acts 60th Leg., R.S., Ch. 241, Sec. 8 (part).)

[Sections 1050.064-1050.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1050.101.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. 241, Secs. 2 (part), 13 (part).)

Sec. 1050.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION AND DEBT. Knox County or a municipality in Knox County may

not impose a tax on property in the district for hospital purposes.

(Acts 60th Leg., R.S., Ch. 241, Sec. 13 (part).)

Sec.1050.103.RULES. (a) The board may adopt rules

governing the operation of the district, including district

facilities.

(b) On approval of the board, the rules may be published in

booklet form at district expense and made available to any taxpayer

on request. (Acts 60th Leg., R.S., Ch. 241, Sec. 8 (part).)

Sec.1050.104.PURCHASING AND ACCOUNTING PROCEDURES. (a)

The board may prescribe the method and manner of making purchases

and expenditures by and for the district.

(b) The board shall prescribe:

(1) all accounting and control procedures; and

(2) the method of purchasing necessary supplies,

materials, and equipment. (Acts 60th Leg., R.S., Ch. 241, Sec. 8

(part).)

Sec.1050.105.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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 60th Leg., R.S., Ch. 241, Sec.

10.)

Sec.1050.106.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 60th Leg., R.S., Ch. 241, Sec.

15.)

Sec.1050.107.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient who resides in the district is admitted to a district

facility, the board shall have an inquiry made into the

circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for

the patient's support.

(b) If an agent designated by the district to handle the

inquiry determines that the patient or those relatives cannot pay

all or part of the costs of the care and treatment in the hospital,

the amount of the costs that cannot be paid becomes a charge against

the district.

relatives are liable to pay all or part of the costs 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 person's financial ability and may not exceed

the actual per capita cost of maintenance.

(d) The district may collect the amount from the patient's

estate, or from any relative who is legally liable for the patient's

support, in the manner provided by law for the collection of

expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the district's designated agent, the board shall hold

a hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue an appropriate order.

(f) Either party to the dispute may appeal the order to the

district court. (Acts 60th Leg., R.S., Ch. 241, Sec. 14.)

Sec.1050.108.AUTHORITY TO SUE AND BE SUED. As a

governmental agency, the district may sue and be sued in its own

name in any court in this state. (Acts 60th Leg., R.S., Ch. 241,

Sec. 17 (part).)

[Sections 1050.109-1050.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1050.151.BUDGET. The board annually shall require a

budget to be 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. 241, Sec. 9 (part).)

Sec.1050.152.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 Knox County not later than the

10th day before the date of the hearing.

(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. 241, Sec. 9 (part).)

Sec.1050.153.FISCAL YEAR. The district operates on a

fiscal year that begins on October 1 and ends on September 30. (Acts

60th Leg., R.S., Ch. 241, Sec. 9 (part).)

Sec.1050.154.ANNUAL AUDIT. (a) The board annually shall

have an independent audit made of the district's books and records

for the fiscal year.

(b) Not later than December 31 each year, the audit shall be

filed:

(1) with the comptroller; and

(2) at the district office. (Acts 60th Leg., R.S., Ch.

241, Sec. 9 (part).)

Sec.1050.155.DEPOSITORY OR TREASURER. (a) The board by

resolution shall designate a bank in Knox County as the district's

depository or treasurer. A designated bank serves for two years

until a successor is designated.

(b) All income received by the district shall be deposited

with the district depository.

provided for securing county funds. (Acts 60th Leg., R.S., Ch. 241,

Secs. 5 (part), 11.)

Sec.1050.156.AUTHORITY TO BORROW MONEY; SECURITY. (a)

The board may borrow money at a rate of interest the board

determines is appropriate.

(b) 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 the loan proceeds that is

not pledged to pay the district's bonded indebtedness.

than the fifth anniversary of the date the loan is made. (Acts 60th

Leg., R.S., Ch. 241, Sec. 6A.)

[Sections 1050.157-1050.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1050.201.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 or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 60th Leg., R.S., Ch. 241, Sec. 6 (part).)

Sec.1050.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a)

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 general obligation bonds issued by the district under

Section 1050.201 as the bonds mature.

(b) Except as provided by Section 1050.253, the tax required

by this section together with any other ad valorem tax the district

imposes may not in any year exceed 35 cents on each $100 valuation

of all taxable property in the district. (Acts 60th Leg., R.S., Ch.

241, Sec. 6 (part).)

Sec.1050.203.GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the district voters voting at an

election held for that purpose.

(b) The board may order the election on its own motion.

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding election officers;

(4) the purpose of the bond issuance;

(5) the amount of the bonds to be authorized;

(6) the maximum interest rate of the bonds; and

(7) 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 Knox County once each week for two

consecutive weeks before the date of the election. The first

publication must occur at least 14 days before the date of the

election. (Acts 60th Leg., R.S., Ch. 241, Sec. 6 (part).)

Sec.1050.204.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. 241,

Sec. 6 (part).)

Sec.1050.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds. (Acts

60th Leg., R.S., Ch. 241, Sec. 6 (part).)

[Sections 1050.206-1050.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1050.251.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 or other obligations issued or assumed by the district for

hospital purposes;

(2) provide for the operation and maintenance of the

district and hospital system;

(3) make improvements and additions to the hospital

system; and

(4) acquire necessary sites for the hospital system by

purchase, lease, or condemnation. (Acts 60th Leg., R.S., Ch. 241,

Secs. 5 (part), 9 (part).)

Sec.1050.252.TAX RATE. The board may impose the tax at a

rate not to exceed 35 cents on each $100 valuation of taxable

property in the district, unless the tax rate is increased as

provided by Section 1050.253. (Acts 60th Leg., R.S., Ch. 241, Sec.

5 (part).)

Sec.1050.253.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

taxable property in the district.

(b) The maximum tax rate may not be increased unless the

increase is approved by a majority of the district voters voting in

an election held for that purpose.

(d) The election order must specify:

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding election officers; and

(4) the purpose of the election.

(e) Notice of the election shall be given by publishing a

substantial copy of the election order in a newspaper of general

circulation in Knox County once a week for two consecutive weeks

before the date of the election. The first publication must occur

at least 14 days before the date of the election. (Acts 60th Leg.,

R.S., Ch. 241, Sec. 5 (part).)

Sec.1050.254.TAX ASSESSOR-COLLECTOR. The tax

assessor-collector of Knox County shall assess and collect taxes

imposed by the district. (Acts 60th Leg., R.S., Ch. 241, Secs. 5

(part), 9 (part).)

CHAPTER 1051. LAVACA HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1051.001. DEFINITIONS

Sec. 1051.002. AUTHORITY FOR OPERATION

Sec. 1051.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1051.004. DISTRICT TERRITORY

Sec. 1051.005. CORRECTION OF INVALID PROCEDURES

Sec. 1051.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1051.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1051.008-1051.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1051.051. BOARD ELECTION; TERM

Sec. 1051.052. NOTICE OF ELECTION

Sec. 1051.053. BALLOT PETITION

Sec. 1051.054. QUALIFICATIONS FOR OFFICE

Sec. 1051.055. BOARD VACANCY

Sec. 1051.056. OFFICERS

Sec. 1051.057. COMPENSATION; EXPENSES

Sec. 1051.058. VOTING REQUIREMENT

Sec. 1051.059. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR

Sec. 1051.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1051.061. EMPLOYEES; APPOINTMENT OF STAFF

Sec. 1051.062. RETIREMENT BENEFITS

[Sections 1051.063-1051.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1051.101. DISTRICT RESPONSIBILITY

Sec. 1051.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1051.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1051.104. HOSPITAL SYSTEM

Sec. 1051.105. RULES

Sec. 1051.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1051.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1051.108. EMINENT DOMAIN

Sec. 1051.109. GIFTS AND ENDOWMENTS

Sec. 1051.110. CONSTRUCTION CONTRACTS

Sec. 1051.111. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1051.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT

Sec. 1051.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1051.114. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1051.115. AUTHORITY TO SUE AND BE SUED

[Sections 1051.116-1051.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1051.151. BUDGET

Sec. 1051.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1051.153. AMENDMENTS TO BUDGET

Sec. 1051.154. RESTRICTION ON EXPENDITURES

Sec. 1051.155. FISCAL YEAR

Sec. 1051.156. AUDIT

Sec. 1051.157. INSPECTION OF AUDIT AND DISTRICT

RECORDS

Sec. 1051.158. FINANCIAL REPORT

Sec. 1051.159. DEPOSITORY

Sec. 1051.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1051.161-1051.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1051.201. GENERAL OBLIGATION BONDS

Sec. 1051.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1051.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1051.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1051.205. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1051.206. REVENUE BONDS

Sec. 1051.207. REFUNDING BONDS

Sec. 1051.208. BONDS EXEMPT FROM TAXATION

[Sections 1051.209-1051.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1051.251. IMPOSITION OF AD VALOREM TAX

Sec. 1051.252. TAX RATE

Sec. 1051.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR

Sec. 1051.254. ASSESSMENT AND COLLECTION BY DISTRICT

TAX ASSESSOR-COLLECTOR

CHAPTER 1051. LAVACA HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1051.001.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 Lavaca Hospital District.

(New.)

Sec.1051.002.AUTHORITY FOR OPERATION. The district

operates and is administered and financed in accordance with

Section 9, Article IX, Texas Constitution, and has the rights,

powers, and duties provided by this chapter. (Acts 64th Leg., R.S.,

Ch. 16, Sec. 1 (part).)

Sec.1051.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 64th Leg., R.S., Ch. 16, Sec. 22 (part).)

Sec.1051.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of the following

school districts, all located in Lavaca County, as those boundaries

existed on March 13, 1975:

(1) Hallettsville Independent School District,

including the Moravia School District No. 7;

(2) Ezzell School District No. 54;

(3) Vysehrad School District No. 29;

(4) the part of the Oakland-Weimar Independent School

Districts of Colorado County that is located in Lavaca County; and

(5) the part of the Provident City Independent School

District that is located in Lavaca County. (Acts 64th Leg., R.S.,

Ch. 16, Sec. 1 (part); New.)

Sec.1051.005.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. 16, Sec. 24 (part).)

Sec. 1051.006. 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. 16, Sec. 21 (part).)

Sec.1051.007.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. 16, Sec. 21 (part).)

[Sections 1051.008-1051.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1051.051.BOARD ELECTION; TERM. (a) The board

consists of seven directors elected from the district at large by

place.

(b) Directors serve staggered four-year terms.

in May of each even-numbered year to elect the appropriate number of

directors. (Acts 64th Leg., R.S., Ch. 16, Secs. 4(a) (part), (b)

(part).)

Sec.1051.052.NOTICE OF ELECTION. Not later than the 31st

day before the date of an election of directors, notice of the

election shall be published one time in a newspaper or newspapers

that individually or collectively have general circulation in the

district. (Acts 64th Leg., R.S., Ch. 16, Sec. 4(b) (part).)

Sec.1051.053.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:

(1) be signed by at least 10 voters;

(2) specify the place for which the person is to be a

candidate; and

(3) be filed not later than the 31st day before the

date of the election. (Acts 64th Leg., R.S., Ch. 16, Sec. 4(b)

(part).)

Sec.1051.054.QUALIFICATIONS FOR OFFICE. (a) A person may

not be elected or appointed as a director unless the person is:

(1) a district resident;

(2) a freeholder; and

(3) a qualified voter.

(b) A person is not eligible to serve as a director if the

person is:

(1) the district administrator; or

(2) a district employee. (Acts 64th Leg., R.S., Ch.

16, Sec. 4(c).)

Sec.1051.055.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 64th Leg., R.S., Ch. 16,

Sec. 4(b) (part).)

Sec.1051.056.OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its

members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

unexpired term. (Acts 64th Leg., R.S., Ch. 16, Sec. 4(d) (part).)

Sec.1051.057.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 64th Leg., R.S., Ch.

16, Sec. 4(d) (part).)

Sec.1051.058.VOTING REQUIREMENT. A concurrence of a

majority of the directors is sufficient in any matter relating to

district business. (Acts 64th Leg., R.S., Ch. 16, Sec. 4(d)

(part).)

Sec. 1051.059. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR. (a) The board shall appoint a qualified person as

district administrator.

(b) The board may appoint an assistant administrator.

administrator serve at the will of the board and are entitled to 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 other conditions the board may require.

(Acts 64th Leg., R.S., Ch. 16, Sec. 5 (part).)

Sec.1051.060.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 64th

Leg., R.S., Ch. 16, Sec. 5 (part).)

Sec.1051.061.EMPLOYEES; APPOINTMENT OF STAFF. (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 necessary.

(b) The district may employ fiscal agents, accountants,

architects, and attorneys the board considers proper.

authority to hire district employees, including technicians and

nurses. (Acts 64th Leg., R.S., Ch. 16, Secs. 5 (part), 17.)

Sec.1051.062.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 64th Leg., R.S., Ch.

16, Sec. 6.)

[Sections 1051.063-1051.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1051.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for operating all hospital facilities for

providing medical and hospital care for the district's needy

inhabitants. (Acts 64th Leg., R.S., Ch. 16, Sec. 20 (part).)

Sec. 1051.102. 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. 16, Sec. 20 (part).)

Sec.1051.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 64th Leg., R.S., Ch.

16, Sec. 5 (part).)

Sec.1051.104.HOSPITAL SYSTEM. (a) The district shall

provide for the establishment of a hospital system by:

(1) purchasing, constructing, acquiring by gift or

otherwise, repairing, or renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the buildings and equipment for

hospital purposes.

(b) The hospital system may include:

(1) domiciliary care and treatment of the sick,

injured, or geriatric;

(2) outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses;

(6) domiciliaries and training centers;

(7) blood banks;

(8) community mental health centers;

(9) research centers or laboratories; and

(10) any other facilities the board considers

necessary for hospital care. (Acts 64th Leg., R.S., Ch. 16, Secs. 2

(part), 11(a) (part).)

Sec.1051.105.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. 16, Sec.

5 (part).)

Sec.1051.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of making purchases and

expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 64th

Leg., R.S., Ch. 16, Sec. 11(b) (part).)

Sec. 1051.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location of buildings required to maintain an adequate hospital

system.

(b) The board may lease all or part of the district's

buildings and other facilities on terms considered to be in the best

interest of the district's inhabitants. The term of the lease may

not exceed 25 years.

district's hospital system and mortgage or pledge the property as

security for the payment of the purchase price. A contract entered

into under this subsection must provide that the entire obligation

be retired not later than the fifth anniversary of the date of the

contract.

(d) The district may sell or otherwise dispose of any

property, including equipment, on terms the board finds are in the

best interest of the district's inhabitants. (Acts 64th Leg.,

R.S., Ch. 16, Secs. 11(a) (part), (b) (part).)

Sec.1051.108.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in any type of property located in district

territory if the interest is necessary or convenient for the

district to exercise a power, right, or privilege conferred by this

chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 64th Leg., R.S., Ch. 16, Sec. 15.)

Sec.1051.109.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 64th Leg., R.S., Ch. 16, Sec.

19.)

Sec.1051.110.CONSTRUCTION CONTRACTS. A construction

contract that involves the expenditure of more than $10,000 may be

made only after advertising in the manner provided by Chapter 252

and Subchapter C, Chapter 262, Local Government Code. (Acts 64th

Leg., R.S., Ch. 16, Sec. 11(b) (part).)

Sec.1051.111.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a district facility. (Acts 64th Leg., R.S., Ch. 16, Sec. 11(a)

(part).)

Sec. 1051.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

CARE AND TREATMENT. (a) The board may contract with a 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.

(b) The board may contract with this state or a federal

agency for the treatment of a sick or injured person. (Acts 64th

Leg., R.S., Ch. 16, Sec. 5 (part).)

Sec. 1051.113. 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 for the medical,

hospital, or welfare needs of district inhabitants. (Acts 64th

Leg., R.S., Ch. 16, Sec. 5 (part).)

Sec.1051.114.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 who are 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 costs of

the care and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district administrator may collect the amount from

the patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the 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. 16, Sec. 18.)

Sec.1051.115.AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued. (Acts 64th Leg., R.S., Ch.

16, Sec. 5 (part).)

[Sections 1051.116-1051.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1051.151.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 in 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; and

(7) the estimated tax rate required. (Acts 64th Leg.,

R.S., Ch. 16, Sec. 7 (part).)

Sec.1051.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) Notice of the hearing must be published one time at

least 10 days before the date of the hearing.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the taxpayers

and that the law warrants. (Acts 64th Leg., R.S., Ch. 16, Sec. 7

(part).)

Sec.1051.153.AMENDMENTS TO BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 64th Leg., R.S., Ch. 16, Sec. 7 (part).)

Sec.1051.154.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. 16, Sec. 7 (part).)

Sec.1051.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that revenue bonds of the district

are outstanding; or

(2) more than once in a 24-month period. (Acts 64th

Leg., R.S., Ch. 16, Sec. 7 (part).)

Sec.1051.156.AUDIT. The board shall have an audit made of

the district's financial condition. (Acts 64th Leg., R.S., Ch. 16,

Sec. 7 (part).)

Sec.1051.157.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. 16,

Sec. 7 (part).)

Sec.1051.158.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 disbursements of that

money. (Acts 64th Leg., R.S., Ch. 16, Sec. 7 (part).)

Sec.1051.159.DEPOSITORY. (a) The board shall select one

or more banks in the district to serve as a depository for district

money.

(b) District money, other than money invested as provided by

Section 1051.160(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.

the power of the board to:

(1) place a part of district money on time deposit;

(2) purchase certificates of deposit; or

(3) invest a part of district money in a local

government investment pool established in the Texas Treasury

Safekeeping Trust Company.

(d) The district may not deposit money with a bank in an

amount that exceeds the maximum amount secured by the Federal

Deposit Insurance Corporation unless the bank first executes a bond

or other security in an amount sufficient to secure from loss the

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation. (Acts 64th Leg., R.S., Ch. 16, Sec.

12.)

Sec.1051.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Section 1051.107(c) and by

Subchapter E, 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 reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 64th Leg., R.S., Ch. 16, Secs. 5

(part), 11(b) (part).)

[Sections 1051.161-1051.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1051.201.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 or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 64th Leg., R.S., Ch. 16, Sec. 8(a) (part).)

Sec.1051.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1051.201, 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 75

cents on each $100 valuation of all taxable property in the

district. (Acts 64th Leg., R.S., Ch. 16, Sec. 8(a) (part).)

Sec.1051.203.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.

(b) The order calling the election shall 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; and

(5) the maximum maturity of the bonds.

Section 1251.003, Government Code. (Acts 64th Leg., R.S., Ch. 16,

Sec. 8(a) (part).)

Sec.1051.204.MATURITY OF GENERAL OBLIGATION BONDS.

District general obligation bonds must mature not later than 40

years after the date of issuance. (Acts 64th Leg., R.S., Ch. 16,

Sec. 8(c) (part).)

Sec.1051.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 64th Leg.,

R.S., Ch. 16, Sec. 8(c) (part).)

Sec.1051.206.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used 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 hospitals.

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, and 264.046-264.049, Health and Safety Code, for

issuance of revenue bonds by a county hospital authority. (Acts

64th Leg., R.S., Ch. 16, Sec. 10 (part).)

Sec.1051.207.REFUNDING BONDS. (a) The board may, without

an election, 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 the 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. 16, Secs. 8(a) (part), (b) (part), 10 (part).)

Sec.1051.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) the transfer and issuance of the bonds; and

(3) profits made in the sale of the bonds. (Acts 64th

Leg., R.S., Ch. 16, Sec. 22 (part).)

[Sections 1051.209-1051.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1051.251.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 pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

interest on revenue bonds issued under Section 1051.206. (Acts

64th Leg., R.S., Ch. 16, Secs. 13 (part), 16(a) (part).)

Sec.1051.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed 75 cents on each $100 valuation of 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. 16, Secs. 3(b) (part), 13 (part).)

Sec. 1051.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR. (a) This section applies unless the board

elects to have taxes assessed and collected under Section 1051.254.

(b) The tax assessor-collector of Lavaca County shall

assess and collect taxes imposed by the district. (Acts 64th Leg.,

R.S., Ch. 16, Secs. 16(a) (part), (b) (part).)

Sec. 1051.254. ASSESSMENT AND COLLECTION BY DISTRICT TAX

ASSESSOR-COLLECTOR. (a) The board may elect to have district taxes

assessed and collected by a tax assessor-collector appointed by the

board. An election under this subsection must be made by December 1

and governs the manner in which taxes are assessed and collected,

until changed by a similar resolution.

(b) The district tax assessor-collector must:

(1) reside in the district; and

(2) own real property subject to district taxation.

assessor-collector:

(1) the term of employment; and

(2) compensation. (Acts 64th Leg., R.S., Ch. 16,

Secs. 16(a) (part), (c) (part).)

CHAPTER 1052. LOCKNEY GENERAL HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1052.001. DEFINITIONS

Sec. 1052.002. AUTHORITY FOR CREATION

Sec. 1052.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1052.004. DISTRICT TERRITORY

Sec. 1052.005. CORRECTION OF INVALID PROCEDURES

Sec. 1052.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

[Sections 1052.007-1052.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1052.051. BOARD ELECTION; TERM

Sec. 1052.052. NOTICE OF ELECTION

Sec. 1052.053. BALLOT PETITION

Sec. 1052.054. QUALIFICATIONS FOR OFFICE

Sec. 1052.055. BOARD VACANCY

Sec. 1052.056. OFFICERS

Sec. 1052.057. COMPENSATION; EXPENSES

Sec. 1052.058. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR

Sec. 1052.059. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1052.060. EMPLOYEES; APPOINTMENT OF STAFF

[Sections 1052.061-1052.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1052.101. DISTRICT RESPONSIBILITY

Sec. 1052.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1052.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1052.104. HOSPITAL SYSTEM

Sec. 1052.105. RULES

Sec. 1052.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1052.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1052.108. EMINENT DOMAIN

Sec. 1052.109. GIFTS AND ENDOWMENTS

Sec. 1052.110. CONSTRUCTION CONTRACTS

Sec. 1052.111. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1052.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT

Sec. 1052.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1052.114. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1052.115. AUTHORITY TO SUE AND BE SUED

[Sections 1052.116-1052.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1052.151. BUDGET

Sec. 1052.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1052.153. AMENDMENTS TO BUDGET

Sec. 1052.154. FISCAL YEAR

Sec. 1052.155. AUDIT

Sec. 1052.156. INSPECTION OF AUDIT AND DISTRICT

RECORDS

Sec. 1052.157. FINANCIAL REPORT

Sec. 1052.158. DEPOSITORY

Sec. 1052.159. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1052.160-1052.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1052.201. GENERAL OBLIGATION BONDS

Sec. 1052.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1052.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1052.204. REVENUE BONDS

Sec. 1052.205. REFUNDING BONDS

Sec. 1052.206. MATURITY OF BONDS

Sec. 1052.207. EXECUTION OF BONDS

Sec. 1052.208. BONDS EXEMPT FROM TAXATION

[Sections 1052.209-1052.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1052.251. IMPOSITION OF AD VALOREM TAX

Sec. 1052.252. TAX RATE

Sec. 1052.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1052. LOCKNEY GENERAL HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1052.001.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 Lockney General Hospital

District. (Acts 63rd Leg., R.S., Ch. 58, Sec. 1 (part); New.)

Sec.1052.002.AUTHORITY FOR CREATION. The district is

created under the authority of Section 9, Article IX, Texas

Constitution. The district has the rights, powers, and duties

conferred by this chapter and general laws relating to hospital

districts. (Acts 63rd Leg., R.S., Ch. 58, Secs. 1 (part), 2

(part).)

Sec.1052.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 63rd Leg., R.S., Ch. 58, Sec. 22 (part).)

Sec.1052.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of County

Commissioners Precinct No. 2 of Floyd County as those boundaries

existed on January 1, 1973. (Acts 63rd Leg., R.S., Ch. 58, Sec. 1

(part).)

Sec.1052.005.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 63rd Leg., R.S., Ch. 58, Sec. 24 (part).)

Sec. 1052.006. 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 63rd

Leg., R.S., Ch. 58, Sec. 21 (part).)

[Sections 1052.007-1052.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1052.051.BOARD ELECTION; TERM. (a) The board

consists of five directors elected from the district at large.

(b) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) the terms of three directors expire in

odd-numbered years and the terms of two directors expire in

even-numbered years.

purpose of the election.

(d) A director may not serve more than three successive

terms. (Acts 63rd Leg., R.S., Ch. 58, Secs. 4(a) (part), (b)

(part).)

Sec.1052.052.NOTICE OF ELECTION. At least five days

before the date of an election of directors, notice of the election

shall be published one time in a newspaper of general circulation in

the area of the district. (Acts 63rd Leg., R.S., Ch. 58, Sec. 4(a)

(part).)

Sec.1052.053.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 at least 25 days before the date of the

election. (Acts 63rd Leg., R.S., Ch. 58, Sec. 4(a) (part).)

Sec.1052.054.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 63rd Leg.,

R.S., Ch. 58, Sec. 4(b) (part).)

Sec.1052.055.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 63rd Leg., R.S.,

Ch. 58, Sec. 4(a) (part).)

Sec.1052.056.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.

the vice president shall perform the president's duties and

exercise the president's powers under this chapter. (Acts 63rd

Leg., R.S., Ch. 58, Sec. 4(b) (part).)

Sec.1052.057.COMPENSATION; EXPENSES. A director serves

without compensation but may receive actual expenses incurred in

attending to district business on approval of the expenses by the

remainder of the board. (Acts 63rd Leg., R.S., Ch. 58, Sec. 4(b)

(part).)

Sec. 1052.058. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR. (a) The board shall appoint a qualified person as

district administrator.

(b) The board may appoint an assistant administrator.

administrator serve at the will of the board and are entitled to 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 other conditions the board may require.

(Acts 63rd Leg., R.S., Ch. 58, Sec. 5 (part).)

Sec.1052.059.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. 58, Sec. 5 (part).)

Sec.1052.060.EMPLOYEES; APPOINTMENT OF STAFF. (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 necessary.

(b) The board shall determine the type, number, and location

of district employees required to maintain an adequate hospital

system. The board may employ fiscal agents, accountants,

architects, attorneys, and other employees the board considers

proper.

authority to hire district employees, including technicians and

nurses. (Acts 63rd Leg., R.S., Ch. 58, Secs. 5 (part), 10(a)

(part), 17.)

[Sections 1052.061-1052.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1052.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for providing hospital care for the district's

indigent residents. (Acts 63rd Leg., R.S., Ch. 58, Sec. 20 (part).)

Sec. 1052.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT. A political subdivision located within the

district may not impose a tax or issue bonds or other obligations

for hospital purposes for the area of the district or to provide

medical care for district inhabitants. (Acts 63rd Leg., R.S., Ch.

58, Sec. 20 (part).)

Sec.1052.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

(a) The board shall manage, control, and administer the hospital

system and the district's money and resources.

(b) Unless specifically stated otherwise in this chapter,

the board has the power to do anything which, in their opinion, is

necessary for the good maintenance, operation, and welfare of the

district and the district's employees, patients, and property.

(Acts 63rd Leg., R.S., Ch. 58, Secs. 5 (part), 21 (part).)

Sec.1052.104.HOSPITAL SYSTEM. (a) The district shall

provide for the establishment of a hospital system by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the buildings and equipment for

hospital purposes.

(b) The hospital system may include:

(1) facilities for domiciliary care of the sick,

injured, or geriatric;

(2) facilities for outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses' domiciliaries and training

centers;

(6) blood banks;

(7) research centers or laboratories; and

(8) ambulances and other facilities or services the

board considers necessary for hospital care. (Acts 63rd Leg.,

R.S., Ch. 58, Secs. 2 (part), 10(a) (part).)

Sec.1052.105.RULES. The board may adopt rules governing

the operation of the hospital, the hospital system, and the

district's staff and employees. (Acts 63rd Leg., R.S., Ch. 58, Sec.

5 (part).)

Sec.1052.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of making purchases and

expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 63rd

Leg., R.S., Ch. 58, Sec. 11 (part).)

Sec. 1052.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type of equipment and

the type, number, and location of buildings required to maintain an

adequate hospital system.

(b) The board may lease all or part of the district's

buildings and other facilities on terms considered to be in the best

interest of the district's inhabitants. The term of the lease may

not exceed 25 years.

district's hospital system and mortgage or pledge the property as

security for the payment of the purchase price. A contract entered

into under this subsection must provide that the entire obligation

be retired not later than the fifth anniversary of the date of the

contract.

(d) The district may sell or otherwise dispose of any

property, including equipment, on terms the board finds are in the

best interest of the district's inhabitants. The board may not sell

or dispose of any real property unless the board affirmatively

finds that the real property is not needed for the operation of the

hospital system. (Acts 63rd Leg., R.S., Ch. 58, Secs. 10(a) (part),

(b) (part), 11 (part).)

Sec.1052.108.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 for the district to exercise

a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 63rd Leg., R.S., Ch. 58, Sec. 15.)

Sec.1052.109.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment for hospital purposes 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. 58, Sec. 19.)

Sec.1052.110.CONSTRUCTION CONTRACTS. A construction

contract that involves the expenditure of more than $2,000 may be

made only after advertising in the manner provided by Chapter 252

and Subchapter C, Chapter 262, Local Government Code. (Acts 63rd

Leg., R.S., Ch. 58, Sec. 11 (part).)

Sec.1052.111.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a district facility. (Acts 63rd Leg., R.S., Ch. 58, Sec. 10(b)

(part).)

Sec. 1052.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

CARE AND TREATMENT. (a) The board may contract with a 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.

(b) The board may contract with this state or a federal

agency for the treatment of a sick or injured person. (Acts 63rd

Leg., R.S., Ch. 58, Sec. 5 (part).)

Sec. 1052.113. 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 for the medical, hospital,

or welfare needs of district inhabitants. (Acts 63rd Leg., R.S.,

Ch. 58, Sec. 5 (part).)

Sec.1052.114.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 who are 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 costs of

the care and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district administrator may collect the amount from

the patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the 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) The final order of the board may be appealed to the

district court. The substantial evidence rule applies to the

appeal. (Acts 63rd Leg., R.S., Ch. 58, Sec. 18.)

Sec.1052.115.AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued. (Acts 63rd Leg., R.S., Ch.

58, Sec. 5 (part).)

[Sections 1052.116-1052.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1052.151.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 in 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 63rd Leg., R.S., Ch. 58, Sec. 6(a) (part).)

Sec.1052.152.NOTICE; HEARING; ADOPTION 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 have general

circulation in the district.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a final budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the

taxpayers and that the law warrants. (Acts 63rd Leg., R.S., Ch. 58,

Secs. 6(a) (part), (b) (part).)

Sec.1052.153.AMENDMENTS TO BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 63rd Leg., R.S., Ch. 58, Sec. 6(b) (part).)

Sec.1052.154.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed more than once in a

24-month period. (Acts 63rd Leg., R.S., Ch. 58, Sec. 6(a) (part).)

Sec.1052.155.AUDIT. (a) The board 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 principal office. (Acts 63rd Leg., R.S.,

Ch. 58, Sec. 6(a) (part).)

Sec.1052.156.INSPECTION OF AUDIT AND DISTRICT RECORDS.

The audit and other district records shall be open to inspection at

the district's principal office. (Acts 63rd Leg., R.S., Ch. 58,

Sec. 6(a) (part).)

Sec.1052.157.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 63rd Leg., R.S., Ch. 58, Sec. 6(b) (part).)

Sec.1052.158.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 1052.159(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.

the power of the board to place a part of district money on time

deposit or to purchase certificates of deposit. (Acts 63rd Leg.,

R.S., Ch. 58, Sec. 12.)

Sec.1052.159.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Section 1052.107(c) and by

Subchapter E, 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 reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 63rd Leg., R.S., Ch. 58, Secs. 5

(part), 11 (part).)

[Sections 1052.160-1052.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1052.201.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 or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 63rd Leg., R.S., Ch. 58, Sec. 7 (part).)

Sec.1052.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1052.201, 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 63rd Leg., R.S., Ch. 58, Sec. 7

(part).)

Sec.1052.203.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.

(b) The order calling the election shall 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 maturity of the bonds; and

(6) the maximum interest rate of the bonds.

Section 1251.003, Government Code. (Acts 63rd Leg., R.S., Ch. 58,

Sec. 7 (part).)

Sec.1052.204.REVENUE BONDS. (a) The board may, without

an election, issue revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used 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 hospitals.

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, and 264.046-264.049, Health and Safety Code, for

issuance of revenue bonds by a county hospital authority. (Acts

63rd Leg., R.S., Ch. 58, Secs. 7 (part), 8(b) (part).)

Sec.1052.205.REFUNDING BONDS. (a) The board may, without

an election, 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 the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 63rd

Leg., R.S., Ch. 58, Secs. 7 (part), 8(a) (part), (b) (part).)

Sec.1052.206.MATURITY OF BONDS. District bonds must

mature not later than 40 years after the date of issuance. (Acts

63rd Leg., R.S., Ch. 58, Sec. 9 (part).)

Sec.1052.207.EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 63rd Leg.,

R.S., Ch. 58, Sec. 9 (part).)

Sec.1052.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) the transfer and issuance of the bonds; and

(3) profits made in the sale of the bonds. (Acts 63rd

Leg., R.S., Ch. 58, Sec. 22 (part).)

[Sections 1052.209-1052.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1052.251.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 and other obligations issued or assumed by the district for

hospital purposes;

(2) provide for the operation and maintenance of the

district and hospital system, based on the final budget;

(3) make improvements and additions to the hospital

system; and

(4) acquire necessary sites for the hospital system by

purchase, lease, or condemnation. (Acts 63rd Leg., R.S., Ch. 58,

Secs. 3 (part), 13(a) (part).)

Sec.1052.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed 75 cents on each $100 valuation of 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 63rd

Leg., R.S., Ch. 58, Secs. 3 (part), 13(a) (part), (b) (part).)

Sec.1052.253.TAX ASSESSOR-COLLECTOR. (a) The board

shall appoint a tax assessor-collector to assess and collect taxes

imposed by the district.

(b) The district tax assessor-collector is not required to

reside in the district.

assessor-collector:

(1) the terms of employment; and

(2) compensation. (Acts 63rd Leg., R.S., Ch. 58, Sec.

16 (part).)

CHAPTER 1053. LUBBOCK COUNTY HOSPITAL DISTRICT OF LUBBOCK COUNTY,

TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1053.001. DEFINITIONS

Sec. 1053.002. AUTHORITY FOR OPERATION

Sec. 1053.003. DISTRICT TERRITORY

Sec. 1053.004. DISTRICT SUPPORT, MAINTENANCE, AND DEBT

NOT STATE OBLIGATION

Sec. 1053.005. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1053.006-1053.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1053.051. BOARD APPOINTMENT; TERM

Sec. 1053.052. EX OFFICIO MANAGER

Sec. 1053.053. OFFICERS

Sec. 1053.054. COMPENSATION

Sec. 1053.055. RECORDS OF PROCEEDINGS

Sec. 1053.056. DISTRICT ADMINISTRATOR

Sec. 1053.057. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1053.058. ASSISTANT ADMINISTRATOR

Sec. 1053.059. LEGAL COUNSEL

Sec. 1053.060. EMPLOYEES; APPOINTMENT OF STAFF

Sec. 1053.061. RETIREMENT PROGRAM

Sec. 1053.062. SEAL

[Sections 1053.063-1053.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1053.101. DISTRICT RESPONSIBILITY

Sec. 1053.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1053.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1053.104. HOSPITAL SYSTEM

Sec. 1053.105. RULES

Sec. 1053.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1053.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1053.108. EMINENT DOMAIN

Sec. 1053.109. GIFTS AND ENDOWMENTS

Sec. 1053.110. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT

Sec. 1053.111. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1053.112. AUTHORITY TO SUE AND BE SUED

[Sections 1053.113-1053.150 reserved for expansion]

SUBCHAPTER D. SALE OR LEASE OF CERTAIN FACILITY

Sec. 1053.151. DEFINITION

Sec. 1053.152. RESOLUTION; SALE OR LEASE OF FACILITY

Sec. 1053.153. ELECTION

Sec. 1053.154. BALLOT

Sec. 1053.155. DISCLOSURE OF SALE OR LEASE TERMS

Sec. 1053.156. DISCLOSURE OF FINANCIAL INTEREST

Sec. 1053.157. DISCLOSURE; PUBLIC RECORD

Sec. 1053.158. ELECTION CANCELLATION

Sec. 1053.159. SUBSEQUENT ELECTIONS

Sec. 1053.160. SALE OR LEASE NOT INVALID

Sec. 1053.161. CRIMINAL PENALTY

[Sections 1053.162-1053.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 1053.201. BUDGET

Sec. 1053.202. FINANCIAL REPORT

Sec. 1053.203. DEPOSITORY

Sec. 1053.204. WARRANTS

[Sections 1053.205-1053.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec. 1053.251. GENERAL OBLIGATION BONDS

Sec. 1053.252. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1053.253. GENERAL OBLIGATION BOND ELECTION

Sec. 1053.254. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1053.255. REFUNDING BONDS

[Sections 1053.256-1053.300 reserved for expansion]

SUBCHAPTER G. TAXES

Sec. 1053.301. IMPOSITION OF AD VALOREM TAX

Sec. 1053.302. TAX RATE

Sec. 1053.303. COUNTY TAX ASSESSOR-COLLECTOR

CHAPTER 1053. LUBBOCK COUNTY HOSPITAL DISTRICT OF LUBBOCK COUNTY,

TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1053.001.DEFINITIONS. In this chapter:

(1) "Board" means the board of hospital managers of

the district.

(2) "Commissioners court" means the Commissioners

Court of Lubbock County.

(3) "District" means the Lubbock County Hospital

District of Lubbock County, Texas.

(4) "Manager" means a member of the board. (New.)

Sec.1053.002.AUTHORITY FOR OPERATION. The district

operates under the authority of Section 9, Article IX, Texas

Constitution. (Acts 60th Leg., R.S., Ch. 484, Sec. 1 (part).)

Sec.1053.003.DISTRICT TERRITORY. (a) The boundaries of

the district are coextensive with the boundaries of Lubbock County,

Texas, as the boundaries of Lubbock County appear of record

according to the field notes and plats on file in the county clerk's

office.

(b) The boundaries of the district described by Subsection

(a) form a closure. An error in copying the description does not

affect the validity of the district. (Acts 60th Leg., R.S., Ch.

484, Secs. 1 (part), 2.)

Sec. 1053.004. DISTRICT SUPPORT, MAINTENANCE, AND DEBT NOT

STATE OBLIGATION. The support and maintenance of the district's

hospital system, including medical or other health facilities, and

any indebtedness incurred by the district under this chapter may

not become a charge against or obligation of this state. (Acts 60th

Leg., R.S., Ch. 484, Sec. 21 (part).)

Sec.1053.005.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 60th Leg., R.S., Ch. 484, Sec. 21 (part).)

[Sections 1053.006-1053.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1053.051.BOARD APPOINTMENT; TERM. (a) The board

consists of not fewer than five and not more than seven managers

appointed as follows:

(1) one ex officio manager appointed by the Texas Tech

University Board of Regents; and

(2) the remaining managers appointed by the

commissioners court.

(b) Managers serve two-year terms. The terms may overlap.

(Acts 60th Leg., R.S., Ch. 484, Sec. 8(a) (part).)

Sec.1053.052.EX OFFICIO MANAGER. (a) The ex officio

manager has all powers of another manager, except the ex officio

manager may not vote.

(b) The ex officio manager shall:

(1) attend executive sessions of the board; and

(2) have access to all documents reviewed or

considered by the board or its staff. (Acts 60th Leg., R.S., Ch.

484, Sec. 8(a) (part).)

Sec.1053.053.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.

appointed secretary. (Acts 60th Leg., R.S., Ch. 484, Sec. 8(e)

(part).)

Sec.1053.054.COMPENSATION. A manager serves without pay.

(Acts 60th Leg., R.S., Ch. 484, Sec. 8(a) (part).)

Sec.1053.055.RECORDS OF PROCEEDINGS. (a) The secretary

shall 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

60th Leg., R.S., Ch. 484, Sec. 8(e) (part).)

Sec.1053.056.DISTRICT ADMINISTRATOR. (a) The board

shall appoint a general manager qualified by training and

experience as the district administrator.

(b) The district administrator serves for a term not to

exceed two years and is entitled to receive the compensation

determined by the board.

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 other conditions the board may require.

(Acts 60th Leg., R.S., Ch. 484, Sec. 8(b) (part).)

Sec.1053.057.GENERAL DUTIES OF DISTRICT ADMINISTRATOR.

Subject to the 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 60th

Leg., R.S., Ch. 484, Sec. 8(b) (part).)

Sec.1053.058.ASSISTANT ADMINISTRATOR. (a) The board may

designate an assistant administrator to discharge a duty or

function of the district administrator in the event of the

administrator's incapacity, absence, or inability to discharge the

duty or function.

(b) The assistant administrator shall post the bond

required by board order.

limitations prescribed by board order. (Acts 60th Leg., R.S., Ch.

484, Sec. 12.)

Sec.1053.059.LEGAL COUNSEL. (a) The appropriate county,

district, or criminal district attorney charged with representing

Lubbock County in civil matters shall represent the district in all

legal matters.

(b) The district shall contribute sufficient money to the

Lubbock 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.

considers advisable. (Acts 60th Leg., R.S., Ch. 484, Sec. 17.)

Sec.1053.060.EMPLOYEES; APPOINTMENT OF STAFF. (a) The

board may appoint to the staff any doctors and employ any

technicians, nurses, and other employees considered advisable for

the efficient operation of the hospital or hospital system,

including medical or other health facilities.

(b) A contract or term of employment under Subsection (a)

may not exceed two years. (Acts 60th Leg., R.S., Ch. 484, Sec.

8(c).)

Sec.1053.061.RETIREMENT PROGRAM. (a) With the approval

of the commissioners court, the board may contract with this state

or 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 it considers necessary and

advisable. (Acts 60th Leg., R.S., Ch. 484, Secs. 8(d) (part), 9.)

Sec.1053.062.SEAL. The board shall have a seal engraved

with the district's name to authenticate the acts of the board. The

secretary of the board shall keep the seal. (Acts 60th Leg., R.S.,

Ch. 484, Sec. 8(e) (part).)

[Sections 1053.063-1053.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1053.101.DISTRICT RESPONSIBILITY. (a) The district

has full responsibility for providing medical and hospital care for

the district's needy and indigent residents.

(b) The district shall provide all necessary medical and

hospital care for the district's needy inhabitants.

medical and hospital care for the district's residents and needy

inhabitants. (Acts 60th Leg., R.S., Ch. 484, Secs. 1 (part), 3

(part), 18 (part).)

Sec. 1053.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT. A political subdivision, other than the

district, may not impose a tax or issue bonds or other obligations

for hospital purposes or to provide medical care in the district.

(Acts 60th Leg., R.S., Ch. 484, Secs. 1 (part), 3 (part), 18

(part).)

Sec.1053.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital or

hospital system, including medical or other health facilities of

the district. (Acts 60th Leg., R.S., Ch. 484, Sec. 8(a) (part).)

Sec.1053.104.HOSPITAL SYSTEM. (a) The district has the

responsibility to establish a hospital or hospital system,

including medical or other health facilities within its boundaries

to provide hospital and medical care to the district's residents.

(b) Subject to approval of the commissioners court, the

district may provide primary care, emergency services, preventive

medicine services, and other health-related services outside the

district, provided the activities fulfill the purposes of the

district under Subsection (a) and Section 1053.101(b). (Acts 60th

Leg., R.S., Ch. 484, Sec. 3 (part).)

Sec.1053.105.RULES. The board may adopt rules for the

operation of the hospital or hospital system, including medical or

other health facilities. (Acts 60th Leg., R.S., Ch. 484, Sec. 8(a)

(part).)

Sec.1053.106.PURCHASING AND ACCOUNTING PROCEDURES. (a)

The commissioners court 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 commissioners court by resolution or order may

delegate to the board a power described by Subsection (a).

necessarily incurred by Lubbock County or by an officer or agent of

the county in performing a duty prescribed or required by this

section.

(d) An officer, employee, or agent of Lubbock County shall

perform any function or service prescribed by the commissioners

court under this section. (Acts 60th Leg., R.S., Ch. 484, Sec. 11.)

Sec. 1053.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) Subject to Subchapter D and to approval by the

commissioners court, the board may:

(1) construct, condemn, purchase, acquire, lease, add

to, maintain, operate, develop, regulate, sell, exchange, and

convey any land, property, property rights, equipment, hospital

facilities and systems for the maintenance of hospitals, buildings,

structures, and any other facility or service the district requires

or has available to sell, lease, or exchange;

(2) cooperate and contract with any of the following

to effect a power described by Subdivision (1):

(A) the United States government;

(B) this state;

(D) a hospital district;

(E) a department of a governing body described by

Subparagraphs (A)-(D); or

(F) a privately owned or operated hospital,

corporate or otherwise, in the district; and

(3) provide office space, equipment, supplies, and

services for the use of the Lubbock County medical examiner's

office for medical, hospital, or other purposes unrelated to a

criminal investigation.

(b) A contract under Subsection (a)(2) must, in the opinion

of the board and the commissioners court, be expedient and

advantageous to the district under existing circumstances, and for

fair and reasonable compensation and on terms and for a length of

time that furthers and assists the district in performing its duty

to provide medical and hospital care to needy inhabitants of

Lubbock County. (Acts 60th Leg., R.S., Ch. 484, Sec. 10.)

Sec.1053.108.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 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 60th Leg., R.S., Ch. 484, Sec.

14.)

Sec.1053.109.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 60th Leg., R.S., Ch. 484,

Sec. 20.)

Sec. 1053.110. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

CARE AND TREATMENT. The board, with the approval of the

commissioners court, may contract with:

(1) a 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 60th Leg., R.S., Ch. 484, Sec. 8(d) (part).)

Sec.1053.111.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient 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 who are 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 costs of

the care and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

patient or those relatives are liable for all or part of the costs

of the patient's care and treatment, the patient or those relatives

shall be ordered to pay the district's treasurer 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 any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the district administrator, the county court shall

hold a hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue an appropriate order.

(f) Either party to the dispute may appeal the order to the

district court. (Acts 60th Leg., R.S., Ch. 484, Sec. 19.)

Sec.1053.112.AUTHORITY TO SUE AND BE SUED. The board may

sue and be sued. (Acts 60th Leg., R.S., Ch. 484, Sec. 8(a) (part).)

[Sections 1053.113-1053.150 reserved for expansion]

SUBCHAPTER D. SALE OR LEASE OF CERTAIN FACILITY

Sec.1053.151.DEFINITION. In this subchapter, "hospital

official" means the following officers or employees, or their

equivalent, of the teaching hospital described by Section

1053.152(a):

(1) the executive director;

(2) the president;

(3) the chief executive officer;

(4) the chief operating officer;

(5) the chief financial officer;

(6) any vice president; and

(7) any other officer. (Acts 60th Leg., R.S., Ch. 484,

Sec. 10A(a)(1).)

Sec.1053.152.RESOLUTION; SALE OR LEASE OF FACILITY. (a)

Subject to Subsection (c) and the approval of the commissioners

court, the board by resolution may order the sale or lease of a

facility that is:

(1) owned and operated by the district as a teaching

hospital; and

(2) located on the campus of Texas Tech University.

(b) The resolution must include a finding by the board that

the sale or lease:

(1) is in the best interests of district residents;

and

(2) will not financially benefit a hospital official,

other than from the continuation of a compensation package existing

before the date of the sale or lease.

(1) no hospital official has made a disclosure under

Sections 1053.156 and 1053.157 at any time before the date of the

sale or lease; and

(2) a majority of the votes cast at an election held

under this subchapter approves the sale or lease. (Acts 60th Leg.,

R.S., Ch. 484, Secs. 10A(b) (part), (j).)

Sec.1053.153.ELECTION. (a) As soon as possible after the

board adopts a resolution under Section 1053.152, the commissioners

court shall order an election on the question of selling or leasing

the facility.

(b) The election shall be held on the first authorized

uniform election date prescribed by Subchapter A, Chapter 41,

Election Code, that complies with Section 3.005, Election Code.

(Acts 60th Leg., R.S., Ch. 484, Secs. 10A(b) (part), (c).)

Sec.1053.154.BALLOT. The ballot for an election under

this subchapter shall be printed to permit voting for or against the

proposition: "Approving the ________ (sale or lease, as

appropriate) of __________ (name of facility)." (Acts 60th Leg.,

R.S., Ch. 484, Sec. 10A(d).)

Sec.1053.155.DISCLOSURE OF SALE OR LEASE TERMS. The

presiding officer of the board shall disclose the terms of the

proposed sale or lease of a facility described by Section 1053.152

not later than the 30th day before the date of an election held

under this subchapter. The disclosure must include both oral and

written agreements relating to the sale or lease. (Acts 60th Leg.,

R.S., Ch. 484, Sec. 10A(e).)

Sec.1053.156.DISCLOSURE OF FINANCIAL INTEREST. (a) In

this section, "substantial interest" has the meaning assigned by

Section 171.002, Local Government Code.

(b) A manager or hospital official shall disclose any

financial interest the person has in the sale or lease of a facility

described by Section 1053.152 not later than the 30th day before the

date of an election held under this subchapter.

interest in the sale or lease if the person:

(1) has a substantial interest in a business entity

involved in the sale or lease;

(2) is related within the second degree by

consanguinity or affinity, as determined under Chapter 573,

Government Code, to a person who has a substantial interest in a

business entity involved in the sale or lease; or

(3) is a hospital official who will benefit

financially from the sale or lease, other than from the

continuation of a compensation package existing before the date of

the sale or lease. (Acts 60th Leg., R.S., Ch. 484, Secs. 10A(a)(2),

(f).)

Sec.1053.157.DISCLOSURE; PUBLIC RECORD. (a) A person

shall make a disclosure required under Section 1053.155 or 1053.156

by filing the disclosure with the commissioners court and the

board.

(b) The filed disclosure is a public record. (Acts 60th

Leg., R.S., Ch. 484, Sec. 10A(g).)

Sec.1053.158.ELECTION CANCELLATION. The commissioners

court shall cancel an election ordered under this subchapter if a

hospital official makes a disclosure under Sections 1053.156 and

1053.157 at any time before the date of the election. (Acts 60th

Leg., R.S., Ch. 484, Sec. 10A(i).)

Sec.1053.159.SUBSEQUENT ELECTIONS. If a majority of the

votes cast at an election under this subchapter do not approve the

sale or lease of a facility under this subchapter, another election

to approve the sale or lease, as appropriate, may not be held before

the first anniversary of the most recent election on the

proposition. (Acts 60th Leg., R.S., Ch. 484, Sec. 10A(l).)

Sec.1053.160.SALE OR LEASE NOT INVALID. A disclosure

under this subchapter that is made after the date on which the sale

or lease of the facility occurs does not invalidate the sale or

lease. (Acts 60th Leg., R.S., Ch. 484, Sec. 10A(k).)

Sec.1053.161.CRIMINAL PENALTY. (a) A person required to

make a disclosure under Section 1053.156 commits an offense if the

person knowingly fails to make the disclosure within the period

prescribed by that section.

(b) An offense under this section is a Class A misdemeanor.

(Acts 60th Leg., R.S., Ch. 484, Sec. 10A(h).)

[Sections 1053.162-1053.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec.1053.201.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 and presented

to the commissioners court for final approval. In like manner, all

budget revisions shall be subject to approval by the commissioners

court. (Acts 60th Leg., R.S., Ch. 484, Sec. 13 (part).)

Sec.1053.202.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;

(2) the commissioners court;

(3) the Department of State Health Services; and

(4) the comptroller. (Acts 60th Leg., R.S., Ch. 484,

Sec. 13 (part).)

Sec.1053.203.DEPOSITORY. (a) The board shall select a

depository for the district in the manner provided by law for

selection of a county depository. The depository serves for two

years and until a successor is selected and qualified. In the

alternative, the board may use the depository selected by the

county.

(b) All income received by the district shall be deposited

with the district depository. (Acts 60th Leg., R.S., Ch. 484, Secs.

5 (part), 15.)

Sec.1053.204.WARRANTS. A warrant against district money

does not require the signature of the county clerk of Lubbock

County. (Acts 60th Leg., R.S., Ch. 484, Sec. 5 (part).)

[Sections 1053.205-1053.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec.1053.251.GENERAL OBLIGATION BONDS. The commissioners

court may issue and sell general obligation bonds in the name and on

the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements for hospital purposes;

(2) equip buildings or improvements for hospital

purposes; and

(3) purchase, construct, acquire, equip, or enlarge

the hospital or hospital system, including medical or other health

facilities for any purpose related to that activity. (Acts 60th

Leg., R.S., Ch. 484, Secs. 1 (part), 7 (part).)

Sec.1053.252.TAX TO PAY GENERAL OBLIGATION BONDS. (a) An

ad valorem tax shall be imposed on all property in the district

subject to district taxation at a rate sufficient to create an

interest and sinking fund to pay the principal of and interest on

general obligation bonds issued under Section 1053.251 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. 484, Sec. 7 (part).)

Sec.1053.253.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.

countywide elections is responsible for conducting the bond

election.

(d) The district must provide for the payment of the bond

election costs before the commissioners court is required to order

an election. (Acts 60th Leg., R.S., Ch. 484, Sec. 7 (part).)

Sec.1053.254.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The county judge of Lubbock County shall execute the general

obligation bonds in the district's name.

(b) The county clerk of Lubbock County shall countersign the

bonds. (Acts 60th Leg., R.S., Ch. 484, Sec. 7 (part).)

Sec.1053.255.REFUNDING BONDS. (a) Refunding bonds may be

issued without an election and in the manner provided by this

subchapter 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 outstanding bonds; or

(2) exchanged wholly or partly for not less than a

similar amount of outstanding bonds and the matured but unpaid

interest on the bonds. (Acts 60th Leg., R.S., Ch. 484, Sec. 7

(part).)

[Sections 1053.256-1053.300 reserved for expansion]

SUBCHAPTER G. TAXES

Sec.1053.301.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

bonds assumed or issued by the district for hospital purposes as

provided by this chapter;

(2) pay for indebtedness assumed by the district;

(3) provide for the operation and maintenance of the

hospital or hospital system, including medical or other health

facilities; and

(4) when requested by the board and approved by the

commissioners court, make improvements and additions to the

hospital system, including medical and other health facilities, and

acquire necessary sites by purchase, lease, or condemnation. (Acts

60th Leg., R.S., Ch. 484, Secs. 1 (part), 5 (part).)

Sec.1053.302.TAX RATE. The commissioners court shall

impose the tax at a rate not to exceed 75 cents on each $100

valuation of taxable property in the district. (Acts 60th Leg.,

R.S., Ch. 484, Secs. 1 (part), 5 (part).)

Sec.1053.303.COUNTY TAX ASSESSOR-COLLECTOR. The tax

assessor-collector of Lubbock County shall collect the taxes

imposed on all property subject to district taxation. (Acts 60th

Leg., R.S., Ch. 484, Sec. 5 (part).)

CHAPTER 1054. LYNN COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1054.001. DEFINITIONS

Sec. 1054.002. AUTHORITY FOR OPERATION

Sec. 1054.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1054.004. DISTRICT TERRITORY

Sec. 1054.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1054.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1054.007-1054.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1054.051. BOARD ELECTION; TERM

Sec. 1054.052. NOTICE OF ELECTION

Sec. 1054.053. BALLOT PETITION

Sec. 1054.054. QUALIFICATIONS FOR OFFICE

Sec. 1054.055. BOND; RECORD OF BOND

Sec. 1054.056. BOARD VACANCY

Sec. 1054.057. OFFICERS

Sec. 1054.058. EXPENSES

Sec. 1054.059. VOTING REQUIREMENT

Sec. 1054.060. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR

Sec. 1054.061. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1054.062. EMPLOYEES; APPOINTMENT OF STAFF

Sec. 1054.063. RECRUITMENT OF MEDICAL STAFF

Sec. 1054.064. CONTINUING EDUCATION; RETRAINING

Sec. 1054.065. RETIREMENT BENEFITS

[Sections 1054.066-1054.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1054.101. DISTRICT RESPONSIBILITY

Sec. 1054.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1054.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1054.104. HOSPITAL SYSTEM

Sec. 1054.105. RULES

Sec. 1054.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1054.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1054.108. EMINENT DOMAIN

Sec. 1054.109. GIFTS AND ENDOWMENTS

Sec. 1054.110. CONSTRUCTION CONTRACTS

Sec. 1054.111. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1054.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR SERVICES

Sec. 1054.113. PROVISION OF CERTAIN HEALTH SERVICES

Sec. 1054.114. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1054.115. REIMBURSEMENT FOR SERVICE

Sec. 1054.116. AUTHORITY TO SUE AND BE SUED

[Sections 1054.117-1054.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1054.151. BUDGET

Sec. 1054.152. NOTICE; HEARING; APPROVAL OF BUDGET

Sec. 1054.153. AMENDMENTS TO BUDGET

Sec. 1054.154. RESTRICTION ON EXPENDITURES

Sec. 1054.155. FISCAL YEAR

Sec. 1054.156. AUDIT

Sec. 1054.157. INSPECTION OF AUDIT AND DISTRICT

RECORDS

Sec. 1054.158. FINANCIAL REPORT

Sec. 1054.159. DEPOSITORY

Sec. 1054.160. SPENDING AND INVESTMENT RESTRICTIONS

Sec. 1054.161. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1054.162-1054.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1054.201. GENERAL OBLIGATION BONDS

Sec. 1054.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1054.203. REVENUE BONDS

Sec. 1054.204. REFUNDING BONDS

Sec. 1054.205. MATURITY OF BONDS

Sec. 1054.206. EXECUTION OF BONDS

Sec. 1054.207. BONDS EXEMPT FROM TAXATION

[Sections 1054.208-1054.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1054.251. IMPOSITION OF AD VALOREM TAX

Sec. 1054.252. TAX RATE

Sec. 1054.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1054. LYNN COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1054.001.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 Lynn County Hospital

District. (New.)

Sec.1054.002.AUTHORITY FOR OPERATION. The district

operates in accordance with Section 9, Article IX, Texas

Constitution, and has the rights, powers, and duties provided by

this chapter. (Acts 60th Leg., R.S., Ch. 66, Sec. 1 (part).)

Sec.1054.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 60th Leg., R.S., Ch. 66, Sec. 20 (part).)

Sec.1054.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Lynn County, Texas.

(Acts 60th Leg., R.S., Ch. 66, Sec. 1 (part).)

Sec. 1054.005. 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 60th

Leg., R.S., Ch. 66, Sec. 21 (part).)

Sec.1054.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 60th Leg., R.S., Ch. 66, Sec. 21 (part).)

[Sections 1054.007-1054.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1054.051.BOARD ELECTION; TERM. (a) The board

consists of seven directors elected from the district at large.

(b) Directors serve staggered three-year terms.

in May of each year to elect the appropriate number of directors.

(Acts 60th Leg., R.S., Ch. 66, Secs. 4(a), (e) (part).)

Sec.1054.052.NOTICE OF ELECTION. At least 10 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper of general circulation in the

district. (Acts 60th Leg., R.S., Ch. 66, Sec. 4(e) (part).)

Sec.1054.053.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 not fewer than 25 registered voters; and

(2) filed before the 31st day before the date of the

election. (Acts 60th Leg., R.S., Ch. 66, Sec. 4(e) (part).)

Sec.1054.054.QUALIFICATIONS FOR OFFICE. (a) To be

eligible to be a candidate for or to serve as a director, a person

must be:

(1) a district resident; and

(2) a qualified voter.

(b) A district employee may not serve as a director. (Acts

60th Leg., R.S., Ch. 66, Secs. 4(c), (f).)

Sec.1054.055.BOND; RECORD OF BOND. (a) Before assuming

the duties of office, each director must execute a bond for $5,000

that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

director's duties.

(b) The board may pay for a director's bond with district

money.

permanent records.(Acts 60th Leg., R.S., Ch. 66, Secs. 4(g), (h).)

Sec.1054.056.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 60th Leg., R.S., Ch. 66, Sec. 4(d) (part).)

Sec.1054.057.OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its

members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

unexpired term. (Acts 60th Leg., R.S., Ch. 66, Sec. 4(d) (part).)

Sec.1054.058.EXPENSES. A director or officer may be

reimbursed for actual expenses incurred in the performance of

official duties. The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 60th Leg., R.S., Ch.

66, Sec. 4(i).)

Sec.1054.059.VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business. (Acts 60th Leg., R.S., Ch. 66, Sec. 4(d) (part).)

Sec. 1054.060. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR. (a) The board shall appoint a qualified person as

district administrator.

(b) The board may appoint an assistant administrator.

administrator serve at the will of the board and are entitled to 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 other conditions the board may require.

(e) The board may pay for the bond with district money.

(Acts 60th Leg., R.S., Ch. 66, Sec. 5(a) (part).)

Sec.1054.061.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 60th

Leg., R.S., Ch. 66, Sec. 5(a) (part).)

Sec.1054.062.EMPLOYEES; APPOINTMENT OF STAFF. (a) The

board may appoint to the staff any doctors and employ any

technicians, nurses, and other employees the board considers

necessary for the efficient operation of the district.

(b) The district may employ fiscal agents, accountants,

architects, and attorneys the board considers proper.

has the authority to hire district employees, including technicians

and nurses.

(d) The board may define the duties, functions, and

responsibilities of district staff and employees. (Acts 60th Leg.,

R.S., Ch. 66, Secs. 5(a) (part), 16.)

Sec.1054.063.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, nursing school,

or an institution of higher education; and

(2) contractually agrees to become a district

employee. (Acts 60th Leg., R.S., Ch. 66, Sec. 5A(b) (part).)

Sec.1054.064.CONTINUING EDUCATION; RETRAINING. The board

may spend district money for continuing education and retraining of

district employees. (Acts 60th Leg., R.S., Ch. 66, Sec. 5A(b)

(part).)

Sec.1054.065.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 60th Leg., R.S., Ch.

66, Sec. 5B.)

[Sections 1054.066-1054.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1054.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for operating all hospital facilities for

providing medical and hospital care for the district's needy

inhabitants. (Acts 60th Leg., R.S., Ch. 66, Sec. 19 (part).)

Sec. 1054.102. 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 60th Leg.,

R.S., Ch. 66, Sec. 19 (part).)

Sec.1054.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the district's

hospitals and hospital system. (Acts 60th Leg., R.S., Ch. 66, Sec.

5(a) (part).)

Sec.1054.104.HOSPITAL SYSTEM. The district shall provide

for the establishment of a hospital or hospital system in the

district by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and improvements;

(2) equipping the buildings and improvements; and

(3) administering the buildings and improvements for

hospital purposes. (Acts 60th Leg., R.S., Ch. 66, Sec. 2 (part).)

Sec.1054.105.RULES. The board may adopt rules for the

operation of the district. (Acts 60th Leg., R.S., Ch. 66, Sec. 5(a)

(part).)

Sec.1054.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of making purchases and

expenditures by and for the district in a manner consistent with

Subtitle C, Title 8, Local Government Code; and

(2) all accounting and control procedures. (Acts 60th

Leg., R.S., Ch. 66, Sec. 10 (part).)

Sec. 1054.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location of buildings required to maintain an adequate hospital

system. Nothing in this chapter prohibits the establishing and

equipping of a clinic as part of the hospital system.

(b) The board may lease all or part of the district's

buildings and other facilities on terms considered to be in the best

interest of the district's inhabitants. The term of the lease may

not exceed 25 years.

district's hospital system and mortgage or pledge the property as

security for the payment of the purchase price.

(d) The district may sell or otherwise dispose of any

property, including equipment, on terms the board finds are in the

best interest of the district's inhabitants. (Acts 60th Leg.,

R.S., Ch. 66, Secs. 9 (part), 10 (part).)

Sec.1054.108.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in any type of property located in district

territory if the interest is necessary or convenient for the

district to exercise a power, right, or privilege conferred by this

chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 60th Leg., R.S., Ch. 66, Sec. 14.)

Sec.1054.109.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 60th Leg., R.S., Ch. 66, Sec.

18.)

Sec.1054.110.CONSTRUCTION CONTRACTS. (a) The board may

enter into construction contracts for the district.

(b) The board may enter into a construction contract that

involves the expenditure of more than the amount prescribed by

Section 271.024, Local Government Code, only after competitive

bidding as provided by Subchapter B, Chapter 271, Local Government

Code. (Acts 60th Leg., R.S., Ch. 66, Sec. 10A.)

Sec.1054.111.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a district facility. (Acts 60th Leg., R.S., Ch. 66, Secs. 5(b),

9 (part).)

Sec. 1054.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

SERVICES. (a) The board may contract with a political subdivision

of this state or with a state or federal agency for the district to:

(1) furnish a mobile emergency medical service; or

(2) provide for the investigatory or welfare needs of

district inhabitants.

(b) The board may contract with this state or a federal

agency for the care and treatment of a sick or injured person.

(Acts 60th Leg., R.S., Ch. 66, Secs. 5(a) (part), (e).)

Sec.1054.113.PROVISION OF CERTAIN HEALTH SERVICES. The

board may provide emergency services, home health care services,

long-term health care services, special care facility services, or

any other health care services the board determines are necessary

to meet the needs of the district. (Acts 60th Leg., R.S., Ch. 66,

Sec. 5A(a).)

Sec.1054.114.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 who are 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 costs of

the care and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district administrator may collect the amount from

the patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the 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 60th Leg., R.S., Ch. 66, Sec. 17.)

Sec.1054.115.REIMBURSEMENT FOR SERVICE. (a) The board

shall require a county, municipality, or public hospital located

outside the district to reimburse the district for the district's

care and treatment of a sick or injured person of that county,

municipality, or public hospital as provided by Chapter 61, Health

and Safety Code.

(b) The board shall require the sheriff of a county or the

police chief of a municipality to reimburse the district for the

district's care and treatment of a person who is confined in a jail

facility of the county or municipality and is not a resident of the

district. (Acts 60th Leg., R.S., Ch. 66, Secs. 5(c), (d).)

Sec.1054.116.AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued. (Acts 60th Leg., R.S., Ch.

66, Sec. 5(a) (part).)

[Sections 1054.117-1054.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1054.151.BUDGET. The district administrator shall

prepare an annual budget for approval by the board. (Acts 60th

Leg., R.S., Ch. 66, Sec. 6 (part).)

Sec.1054.152.NOTICE; HEARING; APPROVAL OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) Notice of the hearing must be published one time at

least 10 days before the date of the hearing.

Leg., R.S., Ch. 66, Sec. 6 (part).)

Sec.1054.153.AMENDMENTS TO BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 60th Leg., R.S., Ch. 66, Sec. 6 (part).)

Sec.1054.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 60th Leg., R.S., Ch. 66, Sec. 6 (part).)

Sec.1054.155.FISCAL YEAR. The district operates on a

fiscal year that begins on October 1 and ends on September 30. (Acts

60th Leg., R.S., Ch. 66, Sec. 6 (part).)

Sec.1054.156.AUDIT. The board shall have an audit made of

the district's financial condition. (Acts 60th Leg., R.S., Ch. 66,

Sec. 6 (part).)

Sec.1054.157.INSPECTION OF AUDIT AND DISTRICT RECORDS.

The audit and other district records shall be open to inspection at

the district's principal office. (Acts 60th Leg., R.S., Ch. 66,

Sec. 6 (part).)

Sec.1054.158.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 disbursements of that

money. (Acts 60th Leg., R.S., Ch. 66, Sec. 6 (part).)

Sec.1054.159.DEPOSITORY. (a) The board shall select one

or more banks in the district to serve as a depository for district

money.

(b) District money shall be immediately deposited on

receipt with a depository bank, except that sufficient money must

be remitted to the place or places designated as agent for the

payment of principal of and interest on the district's outstanding

bonds in time for the agent to make that payment on or before the

maturity date of the principal and interest.

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 a depository bank. (Acts 60th Leg., R.S., Ch. 66,

Sec. 11.)

Sec.1054.160.SPENDING AND INVESTMENT RESTRICTIONS.

Except as otherwise provided by Section 1054.107(c) and by

Subchapter E, 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 immediately following district fiscal years. (Acts

60th Leg., R.S., Ch. 66, Sec. 10 (part).)

Sec.1054.161.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.

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 60th Leg., R.S., Ch. 66, Sec.

7A.)

[Sections 1054.162-1054.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1054.201.GENERAL OBLIGATION BONDS. The board may

issue and sell general obligation bonds in the name and on the faith

and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements;

(2) equip buildings or improvements for hospital

purposes; or

(3) acquire and operate a mobile emergency medical

service. (Acts 60th Leg., R.S., Ch. 66, Sec. 7(a) (part).)

Sec.1054.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1054.201, 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 75

cents on each $100 valuation of all taxable property in the

district. (Acts 60th Leg., R.S., Ch. 66, Sec. 7(a) (part).)

Sec.1054.203.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, equip, or

renovate buildings or improvements for hospital purposes;

(2) acquire sites to be used for hospital purposes; or

(3) acquire and operate a mobile emergency medical

service to assist the district in carrying out its hospital

purposes.

(b) The bonds must be payable from and secured by a pledge of

all or part of the revenue derived from the operation of the

district's hospital system.

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, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority.

(Acts 60th Leg., R.S., Ch. 66, Secs. 7(d), (e), (f).)

Sec.1054.204.REFUNDING BONDS. (a) The board may issue

refunding bonds to refund outstanding indebtedness.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bond

applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 60th

Leg., R.S., Ch. 66, Sec. 7(b) (part).)

Sec.1054.205.MATURITY OF BONDS. District bonds must

mature not later than the 50th anniversary of the date of issuance.

(Acts 60th Leg., R.S., Ch. 66, Sec. 7(c) (part).)

Sec.1054.206.EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 60th Leg.,

R.S., Ch. 66, Sec. 7(c) (part).)

Sec.1054.207.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) profits made in the sale of the bonds. (Acts 60th

Leg., R.S., Ch. 66, Sec. 20 (part).)

[Sections 1054.208-1054.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1054.251.IMPOSITION OF AD VALOREM TAX. (a) The board

may impose a tax on all property in the district subject to district

taxation.

(b) The board shall impose the tax to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

or interest on revenue bonds issued under this chapter. (Acts 60th

Leg., R.S., Ch. 66, Secs. 12 (part), 15(a) (part), (b), (c).)

Sec.1054.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed the limit approved by the voters at the

election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on

each $100 valuation of all taxable property in the district.

income of the district from sources other than taxation. (Acts 60th

Leg., R.S., Ch. 66, Secs. 12 (part), 15(a) (part).)

Sec.1054.253.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 60th Leg., R.S., Ch. 66, Sec.

15(e).)

CHAPTER 1055. MARION COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1055.001. DEFINITIONS

Sec. 1055.002. AUTHORITY FOR OPERATION

Sec. 1055.003. POLITICAL SUBDIVISION

Sec. 1055.004. DISTRICT TERRITORY

Sec. 1055.005. CORRECTION OF INVALID PROCEDURES

[Sections 1055.006-1055.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1055.051. BOARD ELECTION; TERM

Sec. 1055.052. NOTICE OF ELECTION

Sec. 1055.053. QUALIFICATIONS FOR OFFICE

Sec. 1055.054. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION

Sec. 1055.055. BOARD VACANCY

Sec. 1055.056. DIRECTOR RIGHTS AND RESPONSIBILITIES

Sec. 1055.057. OFFICERS

Sec. 1055.058. COMPENSATION; EXPENSES

Sec. 1055.059. VOTING REQUIREMENT

Sec. 1055.060. EMPLOYEES

Sec. 1055.061. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

Sec. 1055.062. SEAL

[Sections 1055.063-1055.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1055.101. DISTRICT RESPONSIBILITY

Sec. 1055.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION

Sec. 1055.103. RULES

Sec. 1055.104. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1055.105. EMINENT DOMAIN

Sec. 1055.106. GIFTS AND ENDOWMENTS

Sec. 1055.107. AUTHORITY TO LEASE DISTRICT FACILITIES

Sec. 1055.108. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1055.109. AUTHORITY TO SUE AND BE SUED

[Sections 1055.110-1055.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1055.151. BUDGET

Sec. 1055.152. PROPOSED BUDGET: NOTICE AND HEARING

Sec. 1055.153. FISCAL YEAR

Sec. 1055.154. ANNUAL AUDIT

Sec. 1055.155. DEPOSITORY OR TREASURER

[Sections 1055.156-1055.200 reserved for expansion]

SUBCHAPTER E. BONDS AND OTHER FINANCIAL ARRANGEMENTS

Sec. 1055.201. GENERAL OBLIGATION BONDS AND OTHER

FINANCIAL ARRANGEMENTS

Sec. 1055.202. TAX TO PAY GENERAL OBLIGATION BONDS OR

OTHER FINANCIAL ARRANGEMENTS

Sec. 1055.203. ELECTION FOR GENERAL OBLIGATION BONDS

OR OTHER FINANCIAL ARRANGEMENTS

Sec. 1055.204. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1055.205. REVENUE BONDS; OTHER FINANCIAL

ARRANGEMENTS

Sec. 1055.206. MATURITY OF BONDS

[Sections 1055.207-1055.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1055.251. IMPOSITION OF AD VALOREM TAX

Sec. 1055.252. TAX RATE

Sec. 1055.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1055. MARION COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1055.001.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 Marion County Hospital

District. (New.)

Sec.1055.002.AUTHORITY FOR OPERATION. The district

operates in accordance with Section 9, Article IX, Texas

Constitution. (Acts 60th Leg., R.S., Ch. 184, Sec. 1 (part).)

Sec.1055.003.POLITICAL SUBDIVISION. The district is a

political subdivision of this state. (Acts 60th Leg., R.S., Ch.

184, Sec. 16 (part).)

Sec.1055.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Marion County,

Texas. (Acts 60th Leg., R.S., Ch. 184, Sec. 1 (part).)

Sec.1055.005.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 60th Leg., R.S., Ch. 184, Sec. 18 (part).)

[Sections 1055.006-1055.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1055.051.BOARD ELECTION; TERM. (a) The district is

governed by a board of seven 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. (Acts 60th Leg., R.S., Ch. 184, Sec. 4 (part).)

Sec.1055.052.NOTICE OF ELECTION. Not later than the 10th

day before the date of an election of directors, notice of the

election shall be published one time in a newspaper of general

circulation in Marion County. (Acts 60th Leg., R.S., Ch. 184, Sec. 4

(part).)

Sec.1055.053.QUALIFICATIONS FOR OFFICE. A person may not

be elected or appointed as a director unless the person is a

district resident. (Acts 60th Leg., R.S., Ch. 184, Sec. 4 (part).)

Sec. 1055.054. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION. (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) The district shall pay for the directors' bonds.

affirmation of office shall be deposited with the district's

depository bank for safekeeping. (Acts 60th Leg., R.S., Ch. 184,

Sec. 4 (part).)

Sec.1055.055.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 60th Leg., R.S., Ch. 184, Sec. 4 (part).)

Sec.1055.056.DIRECTOR RIGHTS AND RESPONSIBILITIES. All

directors have the same rights and responsibilities with regard to

voting and other matters. (Acts 60th Leg., R.S., Ch. 184, Sec. 4

(part).)

Sec.1055.057.OFFICERS. The board shall elect from among

its members a president and a secretary. (Acts 60th Leg., R.S., Ch.

184, Sec. 4 (part).)

Sec.1055.058.COMPENSATION; EXPENSES. A director serves

without compensation but may be reimbursed for actual expenses

incurred in the performance of official duties on approval of the

expenses by a majority of the board. (Acts 60th Leg., R.S., Ch.

184, Sec. 4 (part).)

Sec.1055.059.VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business. (Acts 60th Leg., R.S., Ch. 184, Sec. 4 (part).)

Sec.1055.060.EMPLOYEES. The board may employ a general

manager, attorneys, bookkeepers, architects, or any other

employees considered necessary for the efficient operation of the

district. (Acts 60th Leg., R.S., Ch. 184, Sec. 7 (part).)

Sec.1055.061.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

Except as provided by Section 1055.054, 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. 184, Sec. 7

(part).)

Sec.1055.062.SEAL. The board may adopt a seal for the

district. (Acts 60th Leg., R.S., Ch. 184, Sec. 7 (part).)

[Sections 1055.063-1055.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1055.101.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. 184, Secs. 2 (part), 12 (part).)

Sec. 1055.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION. Marion County or a municipality in the district may not

impose a tax on property in the district for hospital purposes.

(Acts 60th Leg., R.S., Ch. 184, Sec. 12 (part).)

Sec.1055.103.RULES. (a) The board may adopt rules

governing the operation of the district, including district

facilities.

(b) On approval by the board, the rules may be published in

booklet form at district expense and made available to any taxpayer

on request. (Acts 60th Leg., R.S., Ch. 184, Sec. 7 (part).)

Sec.1055.104.PURCHASING AND ACCOUNTING PROCEDURES. (a)

The board may prescribe the method and manner of making purchases

and expenditures by and for the district.

(b) The board shall prescribe:

(1) all accounting and control procedures; and

(2) the method of purchasing necessary supplies,

materials, and equipment. (Acts 60th Leg., R.S., Ch. 184, Sec. 7

(part).)

Sec.1055.105.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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 60th Leg., R.S., Ch. 184, Sec. 9.)

Sec.1055.106.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 60th Leg., R.S., Ch. 184, Sec.

14.)

Sec.1055.107.AUTHORITY TO LEASE DISTRICT FACILITIES. (a)

The district may lease district facilities acquired or constructed

under this chapter to any person for consideration the board

determines is reasonable and adequate.

(b) The terms of a lease entered under this section may

include a provision that requires the lessee to:

(1) agree to maintain the district's hospital

facilities; or

(2) care for and treat the indigent or needy patients

of Marion County.

described by Subsection (b)(2), Marion County may:

(1) spend money and make payments to the lessee for the

care and treatment;

(2) impose ad valorem taxes; or

(3) pledge any of the county's money or resources to

payments made under the contract. (Acts 60th Leg., R.S., Ch. 184,

Sec. 17.)

Sec.1055.108.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient who resides in the district is admitted to a district

facility, the board shall have an inquiry made into the

circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for

the patient's support.

(b) If an agent designated by the district to handle the

inquiry determines that the patient or those relatives cannot pay

all or part of the costs of the care and treatment in the hospital,

the amount of the costs that cannot be paid becomes a charge against

the district.

relatives are liable to pay for all or part of the costs of the

patient's care and treatment, the patient or those relatives shall

be ordered to pay the district's treasurer 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 may collect the amount from the patient's

estate, or from any relative who is legally liable for the patient's

support, in the manner provided by law for the collection of

expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the district's designated agent, the board shall hold

a hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue an appropriate order.

(f) Either party to the dispute may appeal the order to the

district court. (Acts 60th Leg., R.S., Ch. 184, Sec. 13.)

Sec.1055.109.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. 184,

Sec. 16 (part).)

[Sections 1055.110-1055.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1055.151.BUDGET. The board annually shall require a

budget to be 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. 184, Sec. 8 (part).)

Sec.1055.152.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 Marion County not later than

the 10th day before the date of the hearing.

(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. 184, Sec. 8 (part).)

Sec.1055.153.FISCAL YEAR. The district operates on a

fiscal year that begins on October 1 and ends on September 30.

(Acts 60th Leg., R.S., Ch. 184, Sec. 8 (part).)

Sec.1055.154.ANNUAL AUDIT. (a) The board annually shall

have an independent audit made of the district's books and records

for the fiscal year.

(b) Not later than December 31 each year, the audit shall be

filed:

(1) with the comptroller; and

(2) at the district office. (Acts 60th Leg., R.S., Ch.

184, Sec. 8 (part).)

Sec.1055.155.DEPOSITORY OR TREASURER. (a) The board by

resolution shall designate a bank in Marion County as the

district's depository or treasurer. A designated bank serves for

two years until a successor is designated.

(b) All income received by the district shall be deposited

with the district depository.

provided for securing county funds. (Acts 60th Leg., R.S., Ch. 184,

Secs. 5 (part), 10.)

[Sections 1055.156-1055.200 reserved for expansion]

SUBCHAPTER E. BONDS AND OTHER FINANCIAL ARRANGEMENTS

Sec. 1055.201. GENERAL OBLIGATION BONDS AND OTHER FINANCIAL

ARRANGEMENTS. The board may issue and sell general obligation

bonds, secure long-term loans, or make other financial arrangements

as district obligations in the name and on the faith and credit of

the district. The money shall be used for any purpose relating to:

(1) the purchase, construction, acquisition, repair,

or renovation of buildings or improvements;

(2) equipping buildings or improvements for hospital

purposes; and

(3) the operation of the district. (Acts 60th Leg.,

R.S., Ch. 184, Sec. 6 (part).)

Sec. 1055.202. TAX TO PAY GENERAL OBLIGATION BONDS OR OTHER

FINANCIAL ARRANGEMENTS. (a) 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 general obligation bonds

issued or other financial arrangements made under Section 1055.201

as the bonds or other arrangements 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 60th Leg., R.S., Ch. 184, Sec. 6 (part).)

Sec. 1055.203. ELECTION FOR GENERAL OBLIGATION BONDS OR

OTHER FINANCIAL ARRANGEMENTS. (a) The district may issue general

obligation bonds or make other financial arrangements secured by

tax revenue only if authorized by a majority of the district voters

voting at an election held for that purpose.

(b) The board may order the election on its own motion.

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding election officers;

(4) the purpose for which the bonds are to be issued or

the financial arrangements made;

(5) the amount of the bonds or other financial

arrangements to be authorized;

(6) the maximum interest rate for the bonds or other

financial arrangements; and

(7) the maximum maturity of the bonds.

(d) Notice of an election under this section shall be given

by publishing a substantial copy of the order calling the election

in a newspaper of general circulation in Marion County once a week

for two consecutive weeks before the date of the election. The

first publication must occur at least 14 days before the date of the

election. (Acts 60th Leg., R.S., Ch. 184, Sec. 6 (part).)

Sec.1055.204.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds. (Acts

60th Leg., R.S., Ch. 184, Sec. 6 (part).)

Sec. 1055.205. REVENUE BONDS; OTHER FINANCIAL

ARRANGEMENTS. (a) The board may, without an election, issue

revenue bonds or make other financial arrangements payable from and

secured by a pledge of all or part of the revenue derived from the

operation of the district's hospital system. The district may use

the money to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used for hospital purposes.

(b) The bonds must be issued in the manner provided by

Sections 264.042, 264.043, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority.

(Acts 60th Leg., R.S., Ch. 184, Sec. 6 (part).)

Sec.1055.206.MATURITY OF BONDS. General obligation bonds

and revenue bonds must mature not later than 40 years after the date

of issuance. (Acts 60th Leg., R.S., Ch. 184, Sec. 6 (part).)

[Sections 1055.207-1055.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1055.251.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 or other obligations issued or assumed by the district for

hospital purposes;

(2) provide for the operation and maintenance of the

district and hospital system;

(3) make improvements and additions to the hospital

system; and

(4) acquire necessary sites for the hospital system by

purchase, lease, or condemnation. (Acts 60th Leg., R.S., Ch. 184,

Secs. 5 (part), 8 (part).)

Sec.1055.252.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. 184, Sec. 5

(part).)

Sec.1055.253.TAX ASSESSOR-COLLECTOR. The tax

assessor-collector of Marion County shall assess and collect taxes

imposed by the district. (Acts 60th Leg., R.S., Ch. 184, Secs. 5

(part), 8 (part).)

CHAPTER 1057. MATAGORDA COUNTY HOSPITAL DISTRICT OF MATAGORDA

COUNTY, TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1057.001. DEFINITIONS

Sec. 1057.002. AUTHORITY FOR CREATION

Sec. 1057.003. POLITICAL SUBDIVISION

Sec. 1057.004. DISTRICT TERRITORY

Sec. 1057.005. CORRECTION OF INVALID PROCEDURES

Sec. 1057.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

[Sections 1057.007-1057.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1057.051. BOARD APPOINTMENT; TERM

Sec. 1057.052. OFFICERS

Sec. 1057.053. COMPENSATION

Sec. 1057.054. RECORDS OF PROCEEDINGS

Sec. 1057.055. DISTRICT ADMINISTRATOR

Sec. 1057.056. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1057.057. EMPLOYEES

Sec. 1057.058. RETIREMENT PROGRAM

Sec. 1057.059. SEAL

[Sections 1057.060-1057.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1057.101. DISTRICT RESPONSIBILITY

Sec. 1057.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1057.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1057.104. HOSPITAL SYSTEM

Sec. 1057.105. RULES

Sec. 1057.106. LEASES

Sec. 1057.107. EMINENT DOMAIN

Sec. 1057.108. GIFTS AND ENDOWMENTS

Sec. 1057.109. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT

Sec. 1057.110. AUTHORITY TO SUE AND BE SUED

[Sections 1057.111-1057.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1057.151. AUDITOR

Sec. 1057.152. DEPOSITORY

Sec. 1057.153. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1057.154-1057.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1057.201. GENERAL OBLIGATION BONDS

Sec. 1057.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1057.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1057.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1057.205. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1057.206. INVESTMENT OF GENERAL OBLIGATION BOND

PROCEEDS

Sec. 1057.207. REVENUE BONDS

[Sections 1057.208-1057.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1057.251. IMPOSITION OF AD VALOREM TAX

Sec. 1057.252. TAX RATE

Sec. 1057.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1057. MATAGORDA COUNTY HOSPITAL DISTRICT OF MATAGORDA

COUNTY, TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1057.001.DEFINITIONS. In this chapter:

(1) "Board" means the board of hospital managers of

the district.

(2) "District" means the Matagorda County Hospital

District of Matagorda County, Texas.

(3) "Manager" means a member of the board. (New.)

Sec.1057.002.AUTHORITY FOR CREATION. The district of

Matagorda County, Texas, is created under the authority of Section

9, Article IX, Texas Constitution. (Acts 59th Leg., R.S., Ch. 41,

Sec. 1 (part).)

Sec.1057.003.POLITICAL SUBDIVISION. The district is a

political subdivision of this state. (Acts 59th Leg., R.S., Ch. 41,

Sec. 13 (part).)

Sec.1057.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Matagorda County,

Texas. (Acts 59th Leg., R.S., Ch. 41, Sec. 1 (part).)

Sec.1057.005.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 59th Leg., R.S., Ch. 41, Sec. 15 (part).)

Sec. 1057.006. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The support and maintenance of the district's hospital

system may not become a charge against or obligation of this state.

(Acts 59th Leg., R.S., Ch. 41, Sec. 6 (part).)

[Sections 1057.007-1057.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1057.051.BOARD APPOINTMENT; TERM. (a) The board

consists of not fewer than five and not more than seven managers

appointed by the Matagorda County Commissioners Court.

(b) Managers serve two-year terms. The terms may overlap.

(Acts 59th Leg., R.S., Ch. 41, Sec. 4 (part).)

Sec.1057.052.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.

appointed secretary. (Acts 59th Leg., R.S., Ch. 41, Sec. 4 (part).)

Sec.1057.053.COMPENSATION. A manager serves without pay.

(Acts 59th Leg., R.S., Ch. 41, Sec. 4 (part).)

Sec.1057.054.RECORDS OF PROCEEDINGS. (a) The secretary

shall 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 59th

Leg., R.S., Ch. 41, Sec. 4 (part).)

Sec.1057.055.DISTRICT ADMINISTRATOR. (a) The board

shall appoint a general manager as the district administrator.

(b) The district administrator serves for a term not to

exceed two years and is entitled to receive the compensation

determined by the board.

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 other conditions the board may require.

(Acts 59th Leg., R.S., Ch. 41, Sec. 4 (part).)

Sec.1057.056.GENERAL DUTIES OF DISTRICT ADMINISTRATOR.

Subject to the 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 59th

Leg., R.S., Ch. 41, Sec. 4 (part).)

Sec.1057.057.EMPLOYEES. (a) The board may employ

doctors, technicians, nurses, and other employees considered

advisable for the efficient operation of the hospital or hospital

system.

(b) A contract or term of employment under Subsection (a)

may not exceed two years. (Acts 59th Leg., R.S., Ch. 41, Sec. 4

(part).)

Sec.1057.058.RETIREMENT PROGRAM. With the approval of

the Matagorda County Commissioners Court, the board may contract

with this state or the federal government as necessary to establish

or continue a retirement program for the benefit of district

employees. (Acts 59th Leg., R.S., Ch. 41, Sec. 4 (part).)

Sec.1057.059.SEAL. The board shall have a seal engraved

with the district's name to authenticate the acts of the board. The

secretary of the board shall keep the seal. (Acts 59th Leg., R.S.,

Ch. 41, Sec. 4 (part).)

[Sections 1057.060-1057.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1057.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for providing medical and hospital care for the

district's needy inhabitants. (Acts 59th Leg., R.S., Ch. 41, Sec. 2

(part).)

Sec. 1057.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT. A political subdivision in Matagorda County,

other than the district, may not impose a tax or issue bonds or

other obligations for hospital purposes or to provide medical care

in the district. (Acts 59th Leg., R.S., Ch. 41, Sec. 2 (part).)

Sec.1057.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the district's

hospital or hospital system. (Acts 59th Leg., R.S., Ch. 41, Sec. 4

(part).)

Sec.1057.104.HOSPITAL SYSTEM. The district shall provide

for the establishment of a hospital or hospital system in the

district to furnish medical and hospital care to district residents

by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and improvements for hospital purposes;

(2) equipping the buildings and improvements for those

purposes; and

(3) administering the buildings and improvements for

those purposes. (Acts 59th Leg., R.S., Ch. 41, Sec. 2 (part).)

Sec.1057.105.RULES. The board may adopt rules for the

operation of the hospital or hospital system. (Acts 59th Leg.,

R.S., Ch. 41, Sec. 4 (part).)

Sec.1057.106.LEASES. (a) The board may lease district

property, including facilities or equipment, to individuals,

companies, corporations, or other legal entities on terms the board

determines further the district's purposes.

(b) The term of a lease under this section may not exceed 25

years. (Acts 59th Leg., R.S., Ch. 41, Sec. 4A.)

Sec.1057.107.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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 59th Leg., R.S., Ch. 41, Sec. 9.)

Sec.1057.108.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 59th Leg., R.S., Ch. 41, Sec.

14.)

Sec. 1057.109. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

CARE AND TREATMENT. The board, with the approval of the Matagorda

County Commissioners Court, may contract with:

(1) a 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 59th Leg., R.S., Ch. 41, Sec. 4 (part).)

Sec.1057.110.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 59th Leg., R.S., Ch. 41, Sec.

13 (part).)

[Sections 1057.111-1057.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1057.151.AUDITOR. (a) The Matagorda County auditor

is the auditor for the district.

(b) The auditor shall make any report and perform any

accounting service reasonably incident or necessary to the proper

conduct of the district's business.

by the board after considering the amount and value of the services

performed for the district. (Acts 59th Leg., R.S., Ch. 41, Sec.

16.)

Sec.1057.152.DEPOSITORY. (a) The board by resolution

shall designate a bank in the county as the district's depository.

A designated bank serves for two years and until a successor is

designated.

(b) All income received by the district shall be deposited

with the district depository.

1057.201 may be withdrawn as directed by the board.

(d) All district money shall be secured in the manner

provided for securing county funds. (Acts 59th Leg., R.S., Ch. 41,

Secs. 7 (part), 8.)

Sec.1057.153.AUTHORITY TO BORROW MONEY; SECURITY. (a)

The board may borrow money at a rate the board determines is

reasonable.

(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 in the

next 12-month period that is not pledged to pay the principal of or

interest on district bonds;

(3) district bonds that have been authorized but not

sold; and

(4) any other unencumbered district assets.

section only for the district's operational and capital

requirements. (Acts 59th Leg., R.S., Ch. 41, Sec. 10B.)

[Sections 1057.154-1057.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1057.201.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 or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 59th Leg., R.S., Ch. 41, Sec. 10 (part).)

Sec.1057.202.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

general obligation bonds issued under Section 1057.201 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 59th Leg., R.S., Ch. 41, Sec. 10 (part).)

Sec.1057.203.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 in an

election held for that purpose.

(b) The board may order the election on its own motion.

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding election officers;

(4) the purpose of the bond issuance;

(5) the amount of the bonds to be authorized;

(6) the maximum interest rate of the bonds; and

(7) 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 14 days before the date of the

election. (Acts 59th Leg., R.S., Ch. 41, Secs. 5 (part), 10

(part).)

Sec.1057.204.MATURITY OF GENERAL OBLIGATION BONDS.

District general obligation bonds must mature not later than 40

years after the date of issuance. (Acts 59th Leg., R.S., Ch. 41,

Sec. 10 (part).)

Sec.1057.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board's presiding officer shall execute the general obligation

bonds in the district's name.

(b) The board secretary shall countersign the bonds. (Acts

59th Leg., R.S., Ch. 41, Sec. 10 (part).)

Sec. 1057.206. INVESTMENT OF GENERAL OBLIGATION BOND

PROCEEDS. Until the proceeds from the sale of general obligation

bonds are needed to carry out the bond purpose, the proceeds may be:

(1) invested in direct obligations of the United

States; or

(2) placed on time deposit. (Acts 59th Leg., R.S., Ch.

41, Sec. 10 (part).)

Sec.1057.207.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used 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.

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, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority.

(e) An election is not required to authorize the issuance of

revenue bonds. (Acts 59th Leg., R.S., Ch. 41, Sec. 10A.)

[Sections 1057.208-1057.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1057.251.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) meet the requirements of district bonds and

indebtedness assumed by the district;

(2) provide for the district's maintenance and

operation expenses;

(3) make improvements and additions to the district's

hospitals or hospital system; and

(4) acquire necessary sites by gift, purchase, lease,

or condemnation. (Acts 59th Leg., R.S., Ch. 41, Secs. 6 (part), 7

(part).)

Sec.1057.252.TAX RATE. The board shall impose the tax at

a rate not to exceed 75 cents on each $100 valuation of all taxable

property in the district. (Acts 59th Leg., R.S., Ch. 41, Sec. 6

(part).)

Sec.1057.253.TAX ASSESSOR-COLLECTOR. The tax

assessor-collector of Matagorda County shall collect taxes imposed

by the district. (Acts 59th Leg., R.S., Ch. 41, Sec. 7 (part).)

CHAPTER 1059. MCCULLOCH COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1059.001. DEFINITIONS

Sec. 1059.002. AUTHORITY FOR OPERATION

Sec. 1059.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1059.004. DISTRICT TERRITORY

Sec. 1059.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1059.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1059.007-1059.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1059.051. BOARD ELECTION; TERMS

Sec. 1059.052. NOTICE OF ELECTION

Sec. 1059.053. QUALIFICATIONS FOR OFFICE

Sec. 1059.054. BOND; RECORD OF BOND

Sec. 1059.055. BOARD VACANCY

Sec. 1059.056. OFFICERS

Sec. 1059.057. COMPENSATION; EXPENSES

Sec. 1059.058. VOTING REQUIREMENT

Sec. 1059.059. DISTRICT ADMINISTRATOR

Sec. 1059.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1059.061. EMPLOYEES; APPOINTMENT AND REMOVAL OF

STAFF

Sec. 1059.062. RECRUITMENT OF MEDICAL STAFF AND

PROFESSIONAL PERSONNEL

Sec. 1059.063. RETIREMENT BENEFITS

[Sections 1059.064-1059.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1059.101. DISTRICT RESPONSIBILITY

Sec. 1059.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1059.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1059.104. RULES

Sec. 1059.105. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1059.106. MOBILE EMERGENCY MEDICAL OR AIR

AMBULANCE SERVICE

Sec. 1059.107. DISTRICT PROPERTY, FACILITIES,

EQUIPMENT, AND SERVICES

Sec. 1059.108. EMINENT DOMAIN

Sec. 1059.109. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 1059.110. GIFTS AND ENDOWMENTS

Sec. 1059.111. CONSTRUCTION CONTRACTS

Sec. 1059.112. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1059.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR SERVICES

Sec. 1059.114. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1059.115. POLICIES OR RULES ON INDIGENT HEALTH

CARE

Sec. 1059.116. REIMBURSEMENT FOR SERVICES

Sec. 1059.117. AUTHORITY TO SUE AND BE SUED

[Sections 1059.118-1059.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1059.151. BUDGET

Sec. 1059.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1059.153. AMENDMENTS TO BUDGET

Sec. 1059.154. RESTRICTION ON EXPENDITURES

Sec. 1059.155. FISCAL YEAR

Sec. 1059.156. ANNUAL AUDIT

Sec. 1059.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS

Sec. 1059.158. FINANCIAL REPORT

Sec. 1059.159. DEPOSITORY

Sec. 1059.160. SPENDING AND INVESTMENT RESTRICTIONS

Sec. 1059.161. AUTHORITY TO BORROW MONEY

[Sections 1059.162-1059.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1059.201. GENERAL OBLIGATION BONDS

Sec. 1059.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1059.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1059.204. REVENUE BONDS

Sec. 1059.205. REFUNDING BONDS

Sec. 1059.206. MATURITY OF BONDS

Sec. 1059.207. EXECUTION OF BONDS

Sec. 1059.208. BONDS EXEMPT FROM TAXATION

[Sections 1059.209-1059.250 reserved for expansion]

SUBCHAPTER F. AD VALOREM TAX

Sec. 1059.251. IMPOSITION OF AD VALOREM TAX

Sec. 1059.252. TAX RATE

Sec. 1059.253. TAX ASSESSOR-COLLECTOR

[Sections 1059.254-1059.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1059.301. DISSOLUTION; ELECTION

Sec. 1059.302. NOTICE OF ELECTION

Sec. 1059.303. BALLOT

Sec. 1059.304. ELECTION RESULTS

Sec. 1059.305. TRANSFER OR ADMINISTRATION OF ASSETS

Sec. 1059.306. SALE OR TRANSFER OF ASSETS AND

LIABILITIES

Sec. 1059.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES

Sec. 1059.308. REPORT; DISSOLUTION ORDER

CHAPTER 1059. MCCULLOCH COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1059.001.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 McCulloch County Hospital

District. (Acts 71st Leg., R.S., Ch. 51, Sec. 1.01.)

Sec.1059.002.AUTHORITY FOR OPERATION. The district

operates and is financed as provided by Section 9, Article IX, Texas

Constitution, and by this chapter. (Acts 71st Leg., R.S., Ch. 51,

Sec. 1.02.)

Sec.1059.003.ESSENTIAL PUBLIC FUNCTION. The district is

a public entity performing an essential public function. (Acts

71st Leg., R.S., Ch. 51, Sec. 7.11 (part).)

Sec.1059.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of McCulloch County,

Texas. (Acts 71st Leg., R.S., Ch. 51, Sec. 1.03.)

Sec. 1059.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The state may not become obligated for the support or

maintenance of the district. (Acts 71st Leg., R.S., Ch. 51, Sec.

9.01 (part).)

Sec.1059.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 71st Leg., R.S., Ch. 51, Sec. 9.01 (part).)

[Sections 1059.007-1059.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1059.051.BOARD ELECTION; TERMS. (a) The district is

governed by a board of seven directors.

(b) One director is elected from each commissioners

precinct and three directors are elected from the district at

large.

(d) An election shall be held on the uniform election date

in May of each year to elect the appropriate number of directors.

(Acts 71st Leg., R.S., Ch. 51, Secs. 4.01(a), 4.03(a), (d).)

Sec.1059.052.NOTICE OF ELECTION. Not earlier than 30 days

or later than 10 days before the date of an election of directors,

notice of the election shall be published one time in a newspaper

with general circulation in the district. (Acts 71st Leg., R.S.,

Ch. 51, Sec. 4.04.)

Sec.1059.053.QUALIFICATIONS FOR OFFICE. (a) To be

eligible to be a candidate for or to serve as a director, a person

must be:

(1) a district resident;

(2) a qualified voter; and

(3) able to obtain a bond as prescribed by Section

1059.054.

(b) In addition to Subsection (a), a person who is elected

from a commissioners precinct or who is appointed to fill a vacancy

for a commissioners precinct must be a resident of that

commissioners precinct.

staff may not serve as a director.

(d) A person formerly employed by the district may not serve

as a director before the second anniversary of the date of the

termination of that person's employment by the district. (Acts

71st Leg., R.S., Ch. 51, Sec. 4.06.)

Sec.1059.054.BOND; RECORD OF BOND. (a) Before assuming

the duties of office, each director must execute a bond for $5,000

that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

director's duties.

(b) Each director's bond shall be kept in the district's

permanent records.

authorized to engage in business in this state. (Acts 71st Leg.,

R.S., Ch. 51, Sec. 4.07.)

Sec.1059.055.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 71st Leg., R.S., Ch. 51,

Sec. 4.08.)

Sec.1059.056.OFFICERS. (a) The board shall elect a

president and a vice president from among its members.

(b) The board shall appoint a secretary, who need not be a

director.

(d) The board shall fill a vacancy in a board office for the

unexpired term. (Acts 71st Leg., R.S., Ch. 51, Secs. 4.09, 4.10.)

Sec.1059.057.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 71st Leg., R.S., Ch.

51, Sec. 4.11.)

Sec.1059.058.VOTING REQUIREMENT. A concurrence of a

majority of the directors voting is necessary in any matter

relating to district business. (Acts 71st Leg., R.S., Ch. 51, Sec.

4.12.)

Sec.1059.059.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 is entitled to the compensation determined by the board.

the administrator shall execute a bond in the amount determined by

the board of not less than $5,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

administrator's duties under this chapter.

(d) The bond shall be kept in the district's permanent

records.

(e) The district administrator shall obtain the bond from an

insurer authorized to engage in business in this state.

(f) The board may pay for the bond with district money.

(Acts 71st Leg., R.S., Ch. 51, Sec. 4.13.)

Sec.1059.060.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 general affairs of the district. (Acts

71st Leg., R.S., Ch. 51, Sec. 4.17.)

Sec.1059.061.EMPLOYEES; APPOINTMENT AND REMOVAL OF STAFF.

(a) The board may:

(1) appoint to or remove from the staff any doctors the

board considers necessary for the efficient operation of the

district and may make temporary appointments as necessary; and

(2) adopt policies relating to the method of

appointing and removing staff members.

(b) The district may employ technicians, nurses, fiscal

agents, accountants, architects, attorneys, and other necessary

employees.

authority to employ persons for the district.

(d) The district may not employ a person who is related to a

director within the second degree by consanguinity or affinity, as

determined under Subchapter B, Chapter 573, Government Code, during

that director's term of office. A district employee who is related

to a person elected as a director within the second degree by

consanguinity or affinity shall resign from employment when that

director takes office. (Acts 71st Leg., R.S., Ch. 51, Secs. 4.14,

4.15.)

Sec. 1059.062. RECRUITMENT OF MEDICAL STAFF AND

PROFESSIONAL PERSONNEL. The board may use innovative methods to

recruit physicians, nurses, technicians, and other professional

personnel, including:

(1) scholarship programs;

(2) agreements for future services;

(3) shared personnel;

(4) bonuses; and

(5) any other method the district considers

necessary. (Acts 71st Leg., R.S., Ch. 51, Sec. 4.16.)

Sec.1059.063.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 71st Leg., R.S., Ch.

51, Sec. 4.18.)

[Sections 1059.064-1059.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1059.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for:

(1) operating hospital facilities; and

(2) providing medical and hospital care for the

district's needy inhabitants. (Acts 71st Leg., R.S., Ch. 51, Sec.

5.02(a) (part).)

Sec. 1059.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT. McCulloch County, the City of Brady, and the

McCulloch County Hospital Authority may not impose a tax or issue

bonds or other obligations for hospital purposes or to provide

medical care for district residents. (Acts 71st Leg., R.S., Ch. 51,

Sec. 5.01(b).)

Sec.1059.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 71st Leg., R.S., Ch.

51, Sec. 5.03.)

Sec.1059.104.RULES. The board may adopt rules governing:

(1) the operation of the hospital and hospital system;

and

(2) the duties, functions, and responsibilities of

district staff and employees. (Acts 71st Leg., R.S., Ch. 51, Sec.

5.04.)

Sec.1059.105.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method of making purchases and expenditures by

and for the district; and

(2) accounting and control procedures for the

district. (Acts 71st Leg., R.S., Ch. 51, Sec. 5.05.)

Sec. 1059.106. MOBILE EMERGENCY MEDICAL OR AIR AMBULANCE

SERVICE. The district may operate or provide for the operation of a

mobile emergency medical or air ambulance service. (Acts 71st

Leg., R.S., Ch. 51, Sec. 5.02(a) (part).)

Sec. 1059.107. DISTRICT PROPERTY, FACILITIES, EQUIPMENT,

AND SERVICES. (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 district has complete discretion as to the type and

extent of services the district will offer. The district may

provide any services or facilities the board finds necessary for

hospital or medical care, including:

(1) facilities for domiciliary care, including

geriatric domiciliary care;

(2) outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses;

(6) domiciliaries and training centers;

(7) blood banks;

(8) community mental health centers;

(9) alcohol or chemical dependency centers;

(10) minor emergency centers;

(11) research centers; or

(12) laboratories.

(1) acquire property, including facilities and

equipment, for the district for use in the hospital system; and

(2) mortgage or pledge the property as security for

the payment of the purchase price.

(d) The board may lease hospital facilities for the

district.

(e) The board may sell or otherwise dispose of property,

including facilities or equipment, for the district at public or

private sale at the price and terms the board considers most

advantageous. (Acts 71st Leg., R.S., Ch. 51, Sec. 5.06.)

Sec.1059.108.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in property located in district territory if the

property interest is necessary to exercise a right or authority

conferred 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 71st Leg., R.S., Ch. 51, Sec.

5.09.)

Sec.1059.109.COST OF RELOCATING OR ALTERING PROPERTY. In

exercising the power of eminent domain, if the board requires

relocating, raising, lowering, rerouting, changing the grade of, or

altering the construction of any railroad, highway, pipeline, or

electric transmission and electric distribution, telegraph, or

telephone line, conduit, pole, or facility, the district must bear

the actual cost of relocating, raising, lowering, rerouting,

changing the grade, or altering the construction to provide

comparable replacement without enhancement of facilities, after

deducting the net salvage value derived from the old facility.

(Acts 71st Leg., R.S., Ch. 51, Sec. 5.10.)

Sec.1059.110.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust for any

purpose and under any direction, limitation, or other provision

prescribed in writing by the donor that is consistent with the

proper management of the district. (Acts 71st Leg., R.S., Ch. 51,

Sec. 5.14.)

Sec.1059.111.CONSTRUCTION CONTRACTS. (a) The board may

enter into 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 competitive

bidding as provided by Subchapter B, Chapter 271, Local Government

Code. (Acts 71st Leg., R.S., Ch. 51, Sec. 5.07(a).)

Sec.1059.112.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a hospital facility for the district. (Acts 71st Leg., R.S., Ch.

51, Sec. 5.08.)

Sec. 1059.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

SERVICES. The board may contract with a political subdivision of

this state or with a state or federal agency for the district to:

(1) furnish a mobile emergency medical or air

ambulance service; or

(2) provide for the investigatory or welfare needs of

district inhabitants. (Acts 71st Leg., R.S., Ch. 51, Sec. 5.13.)

Sec.1059.114.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 financial circumstances of:

(1) the patient; or

(2) a relative of the patient who is legally

responsible for the patient's support.

(b) As required by Section 9, Article IX, Texas

Constitution, the district without charge shall provide to a

patient who resides in the district the care and treatment that the

patient or a relative of the patient who is legally responsible for

the patient's support cannot pay.

responsible for the patient's support 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 the relative to

pay the district a specified amount each week. The amount must be

based on the individual's ability to pay.

(d) The district administrator may collect money owed to the

district from the patient's estate or from that of a relative who

was legally responsible for the patient's support in the manner

provided by law for collection of expenses of the last illness of a

deceased person.

(e) If there is a dispute relating to an individual's

ability to pay or if the district administrator has any doubt

concerning an individual's ability to pay, the board shall:

(1) call witnesses;

(2) issue subpoenas and subpoenas duces tecum;

(3) administer oaths;

(4) hear and resolve the question; and

(5) issue a final order.

(f) A final order of the board may be appealed to a district

court in McCulloch County. The substantial evidence rule applies

to the appeal. (Acts 71st Leg., R.S., Ch. 51, Secs. 5.11(a), (d),

(e), (f), (g).)

Sec.1059.115.POLICIES OR RULES ON INDIGENT HEALTH CARE.

(a) The district may adopt, amend, or repeal policies or rules

relating to indigent health care that include:

(1) eligibility of patients for indigent health care;

(2) application forms for patients or relatives of

patients requesting indigent health care that may require personal

and financial information to be furnished;

(3) procedures for obtaining and completing

applications for indigent health care and for filing the completed

applications with the district;

(4) procedures for reviewing applications to

determine eligibility for indigent health care; and

(5) other procedures provided by this section and

Section 1059.116.

(b) The application procedure to determine eligibility for

indigent health care must be adopted not later than the beginning of

each operating year and must comply with Chapter 61, Health and

Safety Code. (Acts 71st Leg., R.S., Ch. 51, Secs. 5.11(b), (c).)

Sec.1059.116.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 and treatment of a sick or injured person of that county,

municipality, or public hospital as provided by Chapter 61, Health

and Safety Code.

(b) The board shall require the sheriff of McCulloch County

to reimburse the district for the district's care and treatment of a

person who is confined in a jail facility of McCulloch County and is

not a district resident.

government for that government to reimburse the district for

treatment of a sick or injured person. (Acts 71st Leg., R.S., Ch.

51, Sec. 5.12.)

Sec.1059.117.AUTHORITY TO SUE AND BE SUED. (a) The board

may sue and be sued on behalf of the district.

(b) The district may assert any defense or counterclaim the

McCulloch County Hospital Authority could have asserted related to

any debt that was:

(1) incurred by the authority for hospital purposes;

and

(2) assumed by the district on the district's

creation. (Acts 71st Leg., R.S., Ch. 51, Secs. 5.02(b), 5.15.)

[Sections 1059.118-1059.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1059.151.BUDGET. (a) The district administrator

shall prepare a proposed annual budget for the district.

(b) The proposed budget must contain a complete financial

statement, including a statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash on hand in each district fund;

(3) the amount of money received by the district from

all sources during the previous year;

(4) the amount of money available to the district from

all sources during the ensuing year;

(5) the amount of the balances expected at the end of

the year in which the budget is being prepared;

(6) the estimated amount of revenue and balances

available to cover the proposed budget; and

(7) the estimated tax rate required. (Acts 71st Leg.,

R.S., Ch. 51, Sec. 6.04.)

Sec.1059.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) The board shall publish notice of the hearing in a

newspaper of general circulation in the district not later than the

10th day before the date of the hearing.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the

taxpayers.

(e) The budget is effective only after adoption by the

board. (Acts 71st Leg., R.S., Ch. 51, Sec. 6.05.)

Sec.1059.153.AMENDMENTS TO BUDGET. After adoption, the

annual budget may be amended on the board's approval. (Acts 71st

Leg., R.S., Ch. 51, Sec. 6.06.)

Sec.1059.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 71st Leg., R.S., Ch. 51, Sec. 6.07.)

Sec.1059.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) when revenue bonds of the district are

outstanding; or

(2) more than once in a 24-month period. (Acts 71st

Leg., R.S., Ch. 51, Sec. 6.01.)

Sec.1059.156.ANNUAL AUDIT. The board annually shall have

an audit made of the district's financial condition. (Acts 71st

Leg., R.S., Ch. 51, Sec. 6.02.)

Sec. 1059.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS. The annual audit and other district records are open to

inspection during regular business hours at the district's

principal office. (Acts 71st Leg., R.S., Ch. 51, Sec. 6.03.)

Sec.1059.158.FINANCIAL REPORT. As soon as practicable

after the close of the fiscal year, the district administrator

shall prepare for the board:

(1) a sworn statement of the amount of district money;

and

(2) an account of the disbursements of that money.

(Acts 71st Leg., R.S., Ch. 51, Sec. 6.08.)

Sec.1059.159.DEPOSITORY. (a) The board shall select at

least one bank to serve as a depository for district money.

(b) District money, other than money invested as provided by

Section 1059.160(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 must remain on

deposit. This subsection does not limit the power of the board to

place a portion of district money on time deposit or to purchase

certificates of deposit.

amount that exceeds the maximum amount secured by the Federal

Deposit Insurance Corporation unless the bank first executes a bond

or other security in an amount sufficient to secure from loss the

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation. (Acts 71st Leg., R.S., Ch. 51, Sec.

6.11.)

Sec.1059.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as provided by Sections 1059.111, 1059.201, 1059.204, and

1059.205, the district may not incur a debt payable from district

revenue other than the revenue on hand or to be on hand in the

current and immediately following district fiscal years.

(b) The board may invest operating, depreciation, or

building reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 71st Leg., R.S., Ch. 51, Sec. 6.09.)

Sec.1059.161.AUTHORITY TO BORROW MONEY. (a) The district

may borrow money for district operating expenses in an amount not to

exceed the amount of tax revenue the district expects to receive

during the 12-month period following the date the money is

borrowed.

(b) The district may pledge all or any part of that tax

revenue to repay the amount borrowed. (Acts 71st Leg., R.S., Ch.

51, Sec. 6.10.)

[Sections 1059.162-1059.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1059.201.GENERAL OBLIGATION BONDS. The board may

issue and sell general obligation bonds authorized by an election

in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements;

(2) equip buildings or improvements for hospital

purposes; or

(3) acquire and operate a mobile emergency medical or

air ambulance service. (Acts 71st Leg., R.S., Ch. 51, Sec. 7.01.)

Sec.1059.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1059.201, 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

limit approved by the voters at the election authorizing the

imposition of the tax. (Acts 71st Leg., R.S., Ch. 51, Sec. 7.02.)

Sec.1059.203.GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the district voters voting at an

election held for that purpose.

(b) The board may order a bond election.

(1) the nature and date of the election;

(2) the hours during which the polls will be open;

(3) the location of polling places;

(4) the amount of the bonds to be authorized; and

(5) the maximum maturity of the bonds.

(d) Notice of a bond election shall be given as provided by

Section 1251.003, Government Code.

(e) The board shall declare the results of the bond

election. (Acts 71st Leg., R.S., Ch. 51, Sec. 7.03.)

Sec.1059.204.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, equip, or

renovate buildings or improvements for hospital purposes,

including the purposes described by Section 1059.107;

(2) acquire sites to be used for hospital purposes; or

(3) acquire and operate a mobile emergency medical or

air ambulance service to assist the district in carrying out its

hospital purposes.

(b) The bonds must be payable from and secured by a pledge of

all or part of the revenue derived from the operation of the

district's hospital system.

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, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority.

(Acts 71st Leg., R.S., Ch. 51, Sec. 7.04.)

Sec.1059.205.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 the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 71st

Leg., R.S., Ch. 51, Secs. 7.05(a), (c) (part).)

Sec.1059.206.MATURITY OF BONDS. District bonds must

mature not later than 50 years after the date of issuance. (Acts

71st Leg., R.S., Ch. 51, Sec. 7.06 (part).)

Sec.1059.207.EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 71st Leg.,

R.S., Ch. 51, Sec. 7.07.)

Sec.1059.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) any transaction relating to the bonds; and

(3) profits made in the sale of the bonds. (Acts 71st

Leg., R.S., Ch. 51, Sec. 7.11 (part).)

[Sections 1059.209-1059.250 reserved for expansion]

SUBCHAPTER F. AD VALOREM TAX

Sec.1059.251.IMPOSITION OF AD VALOREM TAX. (a) The board

may impose a tax on all property in the district subject to district

taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

or interest on revenue bonds issued under this chapter. (Acts 71st

Leg., R.S., Ch. 51, Secs. 8.01(a) (part), (c), (d), 8.02(b).)

Sec.1059.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed the limit approved by the voters at the

election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on

each $100 valuation of all taxable property in the district.

income of the district from sources other than taxation. (Acts

71st Leg., R.S., Ch. 51, Secs. 8.01(a) (part), (b), 8.03 (part).)

Sec.1059.253.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 71st Leg., R.S., Ch. 51, Sec.

8.04(b).)

[Sections 1059.254-1059.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec.1059.301.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.

a petition requesting an election that is signed by a number of

district residents equal to at least 15 percent of the registered

voters in the district.

(d) The order calling the election must state:

(1) the nature of the election, including the

proposition to appear on the ballot;

(2) the date of the election;

(3) the hours during which the polls will be open; and

(4) the location of the polling places.

(e) Section 41.001(a), Election Code, does not apply to an

election ordered under this section. (Acts 71st Leg., R.S., Ch. 51,

Secs. 10.01(a), (b), (c) (part).)

Sec.1059.302.NOTICE OF ELECTION. (a) The board shall

give notice of an election under this subchapter by publishing once

a week for two consecutive weeks 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 71st

Leg., R.S., Ch. 51, Sec. 10.01(d) (part).)

Sec.1059.303.BALLOT. The ballot for an election under

this subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the McCulloch County Hospital

District." (Acts 71st Leg., R.S., Ch. 51, Sec. 10.01(d) (part).)

Sec.1059.304.ELECTION RESULTS. (a) If a majority of the

votes in an election under this subchapter favor dissolution, the

board shall find that the district is dissolved.

(b) If a majority of the votes in the election do not favor

dissolution, the board shall continue to administer the district

and another election on the question of dissolution may not be held

before the first anniversary of the date of the most recent election

to dissolve the district. (Acts 71st Leg., R.S., Ch. 51, Sec.

10.01(e).)

Sec.1059.305.TRANSFER OR ADMINISTRATION OF ASSETS. (a)

If a majority of the votes in the election held under this

subchapter favor dissolution, the board shall:

(1) transfer the land, buildings, improvements,

equipment, and other assets that belong to the district to

McCulloch County or another governmental entity in McCulloch

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. (Acts 71st Leg., R.S., Ch. 51, Secs. 10.01(f), (g).)

Sec.1059.306.SALE OR TRANSFER OF ASSETS AND LIABILITIES.

(a) The district may not be dissolved unless the board provides for

the sale or transfer of the district's assets and liabilities to

another person.

(b) The dissolution of the district and the sale or transfer

of the district's assets or liabilities may not contravene a trust

indenture or bond resolution relating to the district's outstanding

bonds. The dissolution and sale or transfer does not diminish or

impair the rights of a holder of an outstanding bond, warrant, or

other obligation of the district.

liabilities must satisfy the debt and bond obligations of the

district in a manner that protects the interests of district

residents, including the residents' collective property rights in

the district's assets.

(d) The district may not transfer or dispose of the

district's assets except for due compensation unless:

(1) the transfer is made to another governmental

entity that serves the district; and

(2) the transferred assets are to be used for the

benefit of district residents.

(e) A grant from federal funds is an obligation to be repaid

in satisfaction. (Acts 71st Leg., R.S., Ch. 51, Secs. 10.01(m),

(n).)

Sec. 1059.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES. (a) After the board finds that the district is dissolved,

the board shall:

(1) determine the debt owed by the district; and

(2) impose on the property included in the district's

tax rolls a tax that is in proportion of the debt to the property

value.

(b) On the payment of all outstanding debts and obligations

of the district, the board shall order the secretary to return to

each district taxpayer the taxpayer's pro rata share of all unused

tax money.

surplus tax money be credited to the taxpayer's county taxes. If a

taxpayer requests the credit, the board shall direct the secretary

to transmit the money to the county tax assessor-collector. (Acts

71st Leg., R.S., Ch. 51, Secs. 10.01(h), (i), (j).)

Sec.1059.308.REPORT; DISSOLUTION ORDER. (a) After the

district has paid all district debts and has disposed of all

district money and other assets as prescribed by this subchapter,

the board shall file a written report with the Commissioners Court

of McCulloch County summarizing the board's actions in dissolving

the district.

(b) Not later than the 10th day after the date the

Commissioners Court of McCulloch County receives the report and

determines that the requirements of this subchapter have been

fulfilled, the commissioners court shall enter an order dissolving

the district and releasing the board from any further duty or

obligation. (Acts 71st Leg., R.S., Ch. 51, Secs. 10.01(k), (l).)

CHAPTER 1060. MENARD COUNTY HOSPITAL DISTRICT OF MENARD COUNTY,

TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1060.001. DEFINITIONS

Sec. 1060.002. AUTHORITY FOR CREATION

Sec. 1060.003. DISTRICT TERRITORY

Sec. 1060.004. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1060.005. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1060.006-1060.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1060.051. BOARD ELECTION; TERM

Sec. 1060.052. NOTICE OF ELECTION

Sec. 1060.053. QUALIFICATIONS FOR OFFICE

Sec. 1060.054. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE

Sec. 1060.055. BOARD VACANCY

Sec. 1060.056. OFFICERS

Sec. 1060.057. COMPENSATION; EXPENSES

Sec. 1060.058. DISTRICT ADMINISTRATOR

Sec. 1060.059. EMPLOYEES

Sec. 1060.060. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

[Sections 1060.061-1060.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1060.101. DISTRICT RESPONSIBILITY

Sec. 1060.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1060.103. MANAGEMENT AND CONTROL OF DISTRICT

Sec. 1060.104. HOSPITAL SYSTEM

Sec. 1060.105. RULES

Sec. 1060.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1060.107. EMINENT DOMAIN

Sec. 1060.108. GIFTS AND ENDOWMENTS

Sec. 1060.109. CONTRACTS FOR HOSPITAL AND MEDICAL CARE

Sec. 1060.110. PAYMENT FOR TREATMENT; PROCEDURES

[Sections 1060.111-1060.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1060.151. BUDGET

Sec. 1060.152. PROPOSED BUDGET: NOTICE AND HEARING

Sec. 1060.153. FISCAL YEAR

Sec. 1060.154. ANNUAL AUDIT

Sec. 1060.155. DEPOSITORY

[Sections 1060.156-1060.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1060.201. BONDS

Sec. 1060.202. TAX TO PAY BONDS

Sec. 1060.203. BOND ELECTION

Sec. 1060.204. MATURITY OF BONDS

Sec. 1060.205. EXECUTION OF BONDS

[Sections 1060.206-1060.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1060.251. IMPOSITION OF AD VALOREM TAX

Sec. 1060.252. TAX RATE

Sec. 1060.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1060. MENARD COUNTY HOSPITAL DISTRICT OF MENARD COUNTY,

TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1060.001.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 Menard County Hospital

District of Menard County, Texas. (New.)

Sec.1060.002.AUTHORITY FOR CREATION. The district of

Menard County, Texas, is created under the authority of Section 9,

Article IX, Texas Constitution. (Acts 64th Leg., R.S., Ch. 665,

Sec. 1.)

Sec.1060.003.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Menard County.

(Acts 64th Leg., R.S., Ch. 665, Sec. 2.)

Sec. 1060.004. 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 64th Leg., R.S., Ch. 665, Sec. 18 (part).)

Sec.1060.005.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. 665, Sec. 18 (part).)

[Sections 1060.006-1060.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1060.051.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. (Acts 64th Leg., R.S., Ch. 665, Secs. 5(a), (d), (e),

(g).)

Sec.1060.052.NOTICE OF ELECTION. At least 30 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper or newspapers that

individually or collectively have general circulation in the

district. (Acts 64th Leg., R.S., Ch. 665, Sec. 5(f) (part).)

Sec.1060.053.QUALIFICATIONS FOR OFFICE. To qualify for

election to the board, a person must:

(1) be at least 21 years of age;

(2) have been a district resident for at least two

years; and

(3) be a qualified voter of the district. (Acts 64th

Leg., R.S., Ch. 665, Sec. 5(b).)

Sec. 1060.054. BOND; RECORD OF BOND AND OATH OR AFFIRMATION

OF OFFICE. (a) Each director 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

director's duties.

(b) The district shall pay for a director's bond.

affirmation of office shall be deposited with the district's

depository for safekeeping. (Acts 64th Leg., R.S., Ch. 665, Sec.

6(a).)

Sec.1060.055.BOARD VACANCY. If a vacancy occurs in the

office of director, a majority of the directors shall appoint a

director for the unexpired term. (Acts 64th Leg., R.S., Ch. 665,

Sec. 5(h).)

Sec.1060.056.OFFICERS. The board shall elect from among

its members a president, a secretary, and a treasurer at the first

meeting of the board after each directors' election. (Acts 64th

Leg., R.S., Ch. 665, Sec. 6(b).)

Sec.1060.057.COMPENSATION; EXPENSES. A director serves

without compensation but is entitled to reimbursement for necessary

expenses incurred in the performance of official duties. (Acts

64th Leg., R.S., Ch. 665, Sec. 6(c).)

Sec.1060.058.DISTRICT ADMINISTRATOR. (a) The board may

employ a district administrator to manage the operations of the

hospital system.

(b) The district administrator may employ necessary

personnel to perform the services provided by the hospital system.

(Acts 64th Leg., R.S., Ch. 665, Sec. 12(e) (part).)

Sec.1060.059.EMPLOYEES. The board may employ an

attorney, general manager, bookkeeper, architect, and other

employees necessary for the efficient operation of the district.

(Acts 64th Leg., R.S., Ch. 665, Sec. 12(e) (part).)

Sec.1060.060.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

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 64th Leg., R.S., Ch. 665, Sec. 12(b).)

[Sections 1060.061-1060.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1060.101.DISTRICT RESPONSIBILITY. The district shall

provide all necessary hospital and medical care for the district's

needy inhabitants. (Acts 64th Leg., R.S., Ch. 665, Sec. 3 (part).)

Sec. 1060.102. 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 64th Leg., R.S., Ch. 665, Sec. 3 (part).)

Sec.1060.103.MANAGEMENT AND CONTROL OF DISTRICT. The

board has full power to manage and control the district. (Acts 64th

Leg., R.S., Ch. 665, Sec. 12(a) (part).)

Sec.1060.104.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 64th Leg., R.S., Ch. 665, Sec. 3

(part).)

Sec.1060.105.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 64th Leg., R.S., Ch. 665, Sec. 12(c).)

Sec.1060.106.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 64th Leg., R.S., Ch. 665, Sec. 12(e) (part).)

Sec.1060.107.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in real, personal, or mixed property located in

district territory if the interest is necessary or convenient for

the district to exercise a power or duty 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.

required to:

(1) pay in advance or provide a bond or other security

for costs in the trial court; or

(2) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 64th Leg., R.S., Ch. 665, Sec.

15.)

Sec.1060.108.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust and

administered by the board under the directions, limitations, or

other provisions prescribed in writing by the donor that are not

inconsistent with the proper management of the district. (Acts

64th Leg., R.S., Ch. 665, Sec. 12(f).)

Sec.1060.109.CONTRACTS FOR HOSPITAL AND MEDICAL CARE.

The board may contract with another political subdivision to

provide hospital and medical care for needy persons who reside

outside the district. (Acts 64th Leg., R.S., Ch. 665, Sec. 12(g).)

Sec.1060.110.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

who is liable for the patient's support to pay for the medical and

hospital care received by the patient.

relative legally liable for the patient's support cannot pay all or

part of the costs of the patient's care, the expense of the care

becomes a charge against the district.

(d) If the patient or a relative legally liable for the

patient's support can pay for all or part of the costs of the

patient's care, the board shall order the patient or relative to pay

the treasurer each week an amount specified in the order, which 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 who is 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 in the

district. (Acts 64th Leg., R.S., Ch. 665, Sec. 14.)

[Sections 1060.111-1060.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1060.151.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 64th Leg., R.S., Ch. 665, Sec. 13(b).)

Sec.1060.152.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 11th day before the date of the hearing.

has 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 64th Leg., R.S., Ch. 665, Secs. 13(c), (d).)

Sec.1060.153.FISCAL YEAR. The district's fiscal year is

from October 1 to September 30. (Acts 64th Leg., R.S., Ch. 665,

Sec. 13(a).)

Sec.1060.154.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 64th Leg., R.S., Ch. 665, Sec.

12(d).)

Sec.1060.155.DEPOSITORY. (a) The board by resolution

shall designate a bank in Menard County as the district's

depository. A designated bank serves for two years until a

successor is designated.

(b) All district money shall be deposited in the district's

depository and secured in the manner provided for securing county

funds. (Acts 64th Leg., R.S., Ch. 665, Sec. 16.)

[Sections 1060.156-1060.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1060.201.BONDS. The district may issue bonds to:

(1) purchase, construct, acquire, repair, or renovate

buildings and improvements; and

(2) equip buildings for hospital purposes. (Acts 64th

Leg., R.S., Ch. 665, Secs. 9(a) (part), 10(a) (part).)

Sec.1060.202.TAX TO PAY BONDS. The board may issue bonds

under Section 1060.201 only if the board imposes 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.

(Acts 64th Leg., R.S., Ch. 665, Sec. 10(c).)

Sec.1060.203.BOND ELECTION. (a) The board may issue

bonds under Section 1060.201 only if the bonds are authorized by a

majority of district voters voting in an election held for that

purpose. The total face value of the bonds may not exceed the

amount specified in the election order.

(b) The board may order a bond election at any time.

(1) the time of the election;

(2) the location of the polling places;

(3) the form of the ballots;

(4) the presiding judge for each polling place;

(5) the purpose of the bond issuance;

(6) the amount of the bonds to be authorized;

(7) the maximum interest rate of the bonds; and

(8) the maximum maturity date of the bonds.

(d) A substantial copy of the election order shall be

published 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 not later than the

15th day before the date of the election.

(e) A copy of the election results must be filed with the

county clerk and become a public record. (Acts 64th Leg., R.S., Ch.

665, Secs. 4(b), (c), (d) (part); 9(a) (part), (b), (d); 10(a)

(part).)

Sec.1060.204.MATURITY OF BONDS. District bonds must

mature not later than 40 years after the date of issuance. (Acts

64th Leg., R.S., Ch. 665, Sec. 9(c).)

Sec.1060.205.EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds. (Acts

64th Leg., R.S., Ch. 665, Sec. 10(b) (part).)

[Sections 1060.206-1060.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1060.251.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 may be used only to:

(1) pay the interest on and create a sinking fund for

bonds issued under this chapter;

(2) provide for the operation and maintenance of the

district and hospital system;

(3) make improvements and additions to the hospital

system; or

(4) acquire sites for additions to the hospital

system. (Acts 64th Leg., R.S., Ch. 665, Secs. 8(a) (part), (c).)

Sec.1060.252.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 64th Leg., R.S., Ch. 665, Sec. 8(a)

(part).)

Sec.1060.253.TAX ASSESSOR-COLLECTOR. The tax

assessor-collector of Menard County shall collect taxes for the

district. (Acts 64th Leg., R.S., Ch. 665, Sec. 8(d) (part).)

CHAPTER 1062. MITCHELL COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1062.001. DEFINITIONS

Sec. 1062.002. AUTHORITY FOR OPERATION

Sec. 1062.003. DISTRICT TERRITORY

Sec. 1062.004. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1062.005. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1062.006-1062.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1062.051. BOARD ELECTION; TERM

Sec. 1062.052. NOTICE OF ELECTION

Sec. 1062.053. QUALIFICATIONS FOR OFFICE

Sec. 1062.054. BOARD VACANCY

Sec. 1062.055. OFFICERS

Sec. 1062.056. COMPENSATION; EXPENSES

Sec. 1062.057. VOTING REQUIREMENT

Sec. 1062.058. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR

Sec. 1062.059. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1062.060. APPOINTMENT AND RECRUITMENT OF STAFF

AND EMPLOYEES

Sec. 1062.061. PERSONNEL CONTRACTS

Sec. 1062.062. EDUCATIONAL PROGRAMS; COURSES

Sec. 1062.063. RETIREMENT BENEFITS

[Sections 1062.064-1062.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1062.101. DISTRICT RESPONSIBILITY

Sec. 1062.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1062.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1062.104. HOSPITAL SYSTEM

Sec. 1062.105. RULES

Sec. 1062.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1062.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1062.108. EMINENT DOMAIN

Sec. 1062.109. GIFTS AND ENDOWMENTS

Sec. 1062.110. CONSTRUCTION CONTRACTS

Sec. 1062.111. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT

Sec. 1062.112. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1062.113. NONPROFIT CORPORATION

Sec. 1062.114. AUTHORITY TO SUE AND BE SUED

[Sections 1062.115-1062.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1062.151. BUDGET

Sec. 1062.152. NOTICE; HEARING; APPROVAL OF BUDGET

Sec. 1062.153. AMENDMENTS TO BUDGET

Sec. 1062.154. RESTRICTION ON EXPENDITURES

Sec. 1062.155. FISCAL YEAR

Sec. 1062.156. ANNUAL AUDIT

Sec. 1062.157. INSPECTION OF ANNUAL AUDIT AND

DISTRICT RECORDS

Sec. 1062.158. FINANCIAL REPORT

Sec. 1062.159. DEPOSITORY

Sec. 1062.160. SPENDING AND INVESTMENT RESTRICTIONS

Sec. 1062.161. GENERAL AUTHORITY TO BORROW MONEY;

SECURITY

Sec. 1062.162. AUTHORITY TO BORROW MONEY IN EMERGENCY;

SECURITY

[Sections 1062.163-1062.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1062.201. GENERAL OBLIGATION BONDS

Sec. 1062.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1062.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1062.204. REVENUE BONDS

Sec. 1062.205. MATURITY OF BONDS

Sec. 1062.206. EXECUTION OF BONDS

[Sections 1062.207-1062.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1062.251. IMPOSITION OF AD VALOREM TAX

Sec. 1062.252. TAX RATE

Sec. 1062.253. TAX ASSESSOR-COLLECTOR

[Sections 1062.254-1062.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1062.301. DISSOLUTION; ELECTION

Sec. 1062.302. NOTICE OF ELECTION

Sec. 1062.303. BALLOT

Sec. 1062.304. ELECTION RESULTS

Sec. 1062.305. TRANSFER, SALE, OR ADMINISTRATION OF

ASSETS

Sec. 1062.306. SALE OR TRANSFER OF ASSETS AND

LIABILITIES

Sec. 1062.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES

Sec. 1062.308. REPORT; DISSOLUTION ORDER

CHAPTER 1062. MITCHELL COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1062.001.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 Mitchell County Hospital

District. (Acts 60th Leg., R.S., Ch. 466, Sec. 1a(a) (part); New.)

Sec.1062.002.AUTHORITY FOR OPERATION. The district

operates in accordance with Section 9, Article IX, Texas

Constitution, and has the rights, powers, and duties provided by

this chapter. (Acts 60th Leg., R.S., Ch. 466, Sec. 1 (part).)

Sec.1062.003.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of:

(1) Commissioners Precincts Nos. 1, 2, and 3 of

Mitchell County, Texas, as those boundaries existed on January 1,

1967; and

(2) Commissioners Precinct No. 4 of Mitchell County,

Texas, as those boundaries existed on January 1, 1973. (Acts 60th

Leg., R.S., Ch. 466, Secs. 1 (part), 1a(a) (part).)

Sec. 1062.004. 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 60th

Leg., R.S., Ch. 466, Sec. 20 (part).)

Sec.1062.005.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 60th Leg., R.S., Ch. 466, Sec. 20 (part).)

[Sections 1062.006-1062.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1062.051.BOARD ELECTION; TERM. (a) The board

consists of seven directors elected from the district at large.

(b) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) an election shall be held on the uniform election

date in May of each year to elect the appropriate number of

directors.

purpose of the election. (Acts 60th Leg., R.S., Ch. 466, Secs. 4(a)

(part), (b) (part), (e) (part).)

Sec.1062.052.NOTICE OF ELECTION. At least 10 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper of general circulation in the

district. (Acts 60th Leg., R.S., Ch. 466, Sec. 4(e) (part).)

Sec.1062.053.QUALIFICATIONS FOR OFFICE. (a) To be

qualified for election to the board, a person must be:

(1) a district resident; and

(2) a qualified voter.

(b) A district employee may not serve as a director. (Acts

60th Leg., R.S., Ch. 466, Sec. 4(c) (part).)

Sec.1062.054.BOARD VACANCY. (a) If a vacancy occurs in

the office of director, the remaining directors by majority vote

shall elect a director to hold office for the remainder of 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

qualified voter or taxpayer of the district, may order the

directors to hold the election. (Acts 60th Leg., R.S., Ch. 466,

Sec. 4(d) (part).)

Sec.1062.055.OFFICERS. (a) The board shall elect a

president and a vice president from among its members.

(b) The board shall elect a person, who is not required to be

a director, to serve as secretary and treasurer.

(Acts 60th Leg., R.S., Ch. 466, Sec. 4(d) (part).)

Sec.1062.056.COMPENSATION; EXPENSES. A director is not

entitled to compensation but is entitled to reimbursement for

actual expenses incurred in attending to district business. The

expenses must be:

(1) reported in the district's records; and

(2) approved by the remainder of the board. (Acts 60th

Leg., R.S., Ch. 466, Sec. 4(c) (part).)

Sec.1062.057.VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business. (Acts 60th Leg., R.S., Ch. 466, Sec. 4(d) (part).)

Sec. 1062.058. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR. (a) The board shall appoint a qualified person as

district administrator.

(b) The board may appoint an assistant administrator.

administrator serve at the will of the board and are entitled to the

compensation determined by the board.

(d) The board may require the district administrator, on

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 administrator performing the

administrator's duties; and

(2) contains other conditions the board may require.

(e) The board may pay for the bond with district money.

(Acts 60th Leg., R.S., Ch. 466, Sec. 5(a) (part).)

Sec.1062.059.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 60th

Leg., R.S., Ch. 466, Sec. 5(a) (part).)

Sec. 1062.060. APPOINTMENT AND RECRUITMENT OF STAFF AND

EMPLOYEES. (a) The board may appoint to the staff or may employ any

doctors, technicians, nurses, and other employees the board

considers necessary for the efficient operation of the district.

(b) The district may employ fiscal agents, accountants,

architects, and attorneys the board considers proper.

has the authority to hire district employees, including technicians

and nurses.

(d) The board may spend district money to recruit

physicians, nurses, and other trained medical personnel. (Acts

60th Leg., R.S., Ch. 466, Secs. 5(a) (part), (d), 16.)

Sec.1062.061.PERSONNEL CONTRACTS. (a) The board may

contract to provide administrative and other personnel for the

operation of the hospital facilities.

(b) The term of the contract may not exceed 25 years from

the date the contract is entered. (Acts 60th Leg., R.S., Ch. 466,

Sec. 9(c) (part).)

Sec.1062.062.EDUCATIONAL PROGRAMS; COURSES. The board

may provide or contract to provide educational programs or courses

for district employees and medical staff. (Acts 60th Leg., R.S.,

Ch. 466, Sec. 5(f).)

Sec.1062.063.RETIREMENT BENEFITS. The board may provide

retirement benefits for district employees by:

(1) establishing or administering a retirement

program; or

(2) participating in a statewide retirement system.

(Acts 60th Leg., R.S., Ch. 466, Sec. 5(c).)

[Sections 1062.064-1062.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1062.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for operating all hospital facilities for

providing medical and hospital care for the district's needy

inhabitants. (Acts 60th Leg., R.S., Ch. 466, Sec. 19 (part).)

Sec. 1062.102. 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 60th Leg.,

R.S., Ch. 466, Sec. 19 (part).)

Sec.1062.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the district's

hospitals and hospital system. (Acts 60th Leg., R.S., Ch. 466, Sec.

5(a) (part).)

Sec.1062.104.HOSPITAL SYSTEM. The district shall provide

for the establishment of a hospital system by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the buildings and equipment for

hospital purposes. (Acts 60th Leg., R.S., Ch. 466, Sec. 2 (part).)

Sec.1062.105.RULES. The board may adopt rules for the

operation of the district. (Acts 60th Leg., R.S., Ch. 466, Sec.

5(a) (part).)

Sec.1062.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of making purchases and

expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 60th

Leg., R.S., Ch. 466, Sec. 10 (part).)

Sec. 1062.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location of buildings required to maintain an adequate hospital

system. Nothing here prohibits the establishing and equipping of a

clinic as a part of the hospital system.

(b) The board may:

(1) 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.

individuals, corporations, or other legal entities.

(d) The board may sell or otherwise dispose of the

district's property, including facilities and equipment.

(e) The district may acquire equipment for use in the

district's hospital system and mortgage or pledge the property as

security for the payment of the purchase price. A contract entered

into under this subsection must provide that the entire obligation

be retired not later than the fifth anniversary of the date of the

contract. (Acts 60th Leg., R.S., Ch. 466, Secs. 9(a), (b), (c)

(part), 10 (part).)

Sec.1062.108.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in any type of property located in district

territory if the interest is necessary or convenient for the

district to exercise a power, right, or privilege conferred by this

chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 60th Leg., R.S., Ch. 466, Sec.

14.)

Sec.1062.109.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 60th Leg., R.S., Ch. 466,

Sec. 18.)

Sec.1062.110.CONSTRUCTION CONTRACTS. The board may

contract for construction only after competitive bidding as

provided by Subchapter B, Chapter 271, Local Government Code.

(Acts 60th Leg., R.S., Ch. 466, Sec. 10 (part).)

Sec. 1062.111. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

CARE AND TREATMENT. (a) The board may contract with a 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.

(b) The board may contract with this state or a federal

agency for the treatment of a sick or injured person. (Acts 60th

Leg., R.S., Ch. 466, Sec. 5(b).)

Sec.1062.112.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 financial circumstances of:

(1) the patient; and

(2) a relative of the patient who is legally

responsible for the patient's support.

(b) If the district administrator determines that the

patient or relative cannot pay all or part of the costs 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.

patient or relative can pay for all or part of the costs of the care

and treatment provided to the patient by the district, the patient

or relative 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 the person's financial ability.

(d) The district administrator may collect the amount from

the patient's estate, or from any relative who is 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.

(e) The board may institute a suit to collect an amount owed

to the district by a patient who is not able to pay under this

section.

(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 board shall hold a hearing and, after calling witnesses,

shall:

(1) resolve the dispute or doubt; and

(2) issue any appropriate orders.

(g) A final order of the board may be appealed to the

district court. (Acts 60th Leg., R.S., Ch. 466, Secs. 5(g), 17.)

Sec.1062.113.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.

(a-1) On or before December 31, 2009, the district may

create and sponsor a nonprofit corporation under the Texas

Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's

Texas Civil Statutes) or the Business Organizations Code, as

applicable, and may contribute money to or solicit money for the

corporation.

(b) The corporation may use district money only to provide

health care or other services the district is authorized to provide

under this chapter.

any manner in which the district may invest the district's money,

including investing money as authorized by Chapter 2256, Government

Code.

(d) The board shall establish controls to ensure that the

corporation uses its money as required by this section.

(e) This subsection and Subsection (a-1) expire December

31, 2009. (Acts 60th Leg., R.S., Ch. 466, Sec. 5(h).)

Sec.1062.114.AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued. (Acts 60th Leg., R.S., Ch.

466, Sec. 5(a) (part).)

[Sections 1062.115-1062.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1062.151.BUDGET. The district administrator shall

prepare an annual budget for approval by the board. (Acts 60th

Leg., R.S., Ch. 466, Sec. 6 (part).)

Sec.1062.152.NOTICE; 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 must be published one time in a newspaper of general

circulation in the district.

60th Leg., R.S., Ch. 466, Sec. 6 (part).)

Sec.1062.153.AMENDMENTS TO BUDGET. The budget may be

amended as required by circumstances. The board must approve all

amendments. (Acts 60th Leg., R.S., Ch. 466, Sec. 6 (part).)

Sec.1062.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 60th Leg., R.S., Ch. 466, Sec. 6 (part).)

Sec.1062.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) if revenue bonds of the district are outstanding;

(2) more than once in a 24-month period. (Acts 60th

Leg., R.S., Ch. 466, Sec. 6 (part).)

Sec.1062.156.ANNUAL AUDIT. The board annually shall have

an audit made of the district's financial condition. (Acts 60th

Leg., R.S., Ch. 466, Sec. 6 (part).)

Sec. 1062.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS. The annual audit and other district records shall be open

to inspection at the district's principal office. (Acts 60th Leg.,

R.S., Ch. 466, Sec. 6 (part).)

Sec.1062.158.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 disbursements of that

money. (Acts 60th Leg., R.S., Ch. 466, Sec. 6 (part).)

Sec.1062.159.DEPOSITORY. (a) The board shall select one

or more banks to serve as a depository for district money.

(b) District money shall be immediately deposited on

receipt with a depository bank, except that sufficient money must

be remitted to the place or places designated as agent for the

payment of principal of and interest on the district's outstanding

bonds or other obligations in time for the agent to make that

payment on or before the maturity date of the principal and

interest.

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 a depository bank. (Acts 60th Leg., R.S., Ch. 466,

Sec. 11.)

Sec.1062.160.SPENDING AND INVESTMENT RESTRICTIONS.

Except as otherwise provided by Section 1062.107(e) and by

Subchapter E, 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 district fiscal year. (Acts 60th Leg., R.S., Ch. 466,

Sec. 10 (part).)

Sec.1062.161.GENERAL 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 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.

mature not later than the first anniversary of the date the loan is

made. A loan for which other 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. 466, Sec. 20B.)

Sec. 1062.162. AUTHORITY TO BORROW MONEY IN EMERGENCY;

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 determines

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) tax revenue to be collected 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.

mature not later than the first anniversary of the date the loan is

made. A loan for which other 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 tax revenue or bonds are pledged to pay

the loan, the purpose for which the pledged taxes were imposed or

the pledged bonds were authorized. (Acts 60th Leg., R.S., Ch. 466,

Sec. 20A.)

[Sections 1062.163-1062.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1062.201.GENERAL OBLIGATION BONDS. The board may

issue and sell general obligation bonds authorized by an election

in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements;

(2) equip buildings or improvements for hospital

purposes; or

(3) acquire and operate a mobile emergency medical or

air ambulance service. (Acts 60th Leg., R.S., Ch. 466, Sec. 7(a).)

Sec.1062.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1062.201, 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

limit approved by the voters at the election authorizing the

imposition of the tax. (Acts 60th Leg., R.S., Ch. 466, Sec. 7(b).)

Sec.1062.203.GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the district voters voting at an

election held for that purpose.

(b) The board may order a bond election.

1251, Government Code. (Acts 60th Leg., R.S., Ch. 466, Secs. 7(c),

(d).)

Sec.1062.204.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes;

(2) acquire sites to be used for hospital purposes; or

(3) acquire and operate a mobile emergency medical or

air ambulance service to assist the district in carrying out its

hospital purposes.

(b) The bonds must be payable from and secured by a pledge of

all or part of the revenue derived from the operation of the

district's hospital system.

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, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority.

(Acts 60th Leg., R.S., Ch. 466, Sec. 7A.)

Sec.1062.205.MATURITY OF BONDS. District bonds must

mature not later than 40 years after the date of issuance. (Acts

60th Leg., R.S., Ch. 466, Sec. 7C (part).)

Sec.1062.206.EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 60th Leg.,

R.S., Ch. 466, Sec. 7C (part).)

[Sections 1062.207-1062.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1062.251.IMPOSITION OF AD VALOREM TAX. (a) The board

may impose a tax on all property in the district subject to district

taxation.

(b) The board shall impose the tax to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

interest on revenue bonds. (Acts 60th Leg., R.S., Ch. 466, Secs. 12

(part), 15 (part).)

Sec.1062.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed the limit approved by the voters at the

election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on

each $100 valuation of all taxable property in the district.

income of the district from sources other than taxation. (Acts 60th

Leg., R.S., Ch. 466, Secs. 12 (part), 15 (part).)

Sec.1062.253.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 60th Leg., R.S., Ch. 466, Sec. 15

(part).)

[Sections 1062.254-1062.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec.1062.301.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.

a petition requesting an election that is signed by at least 15

percent of the registered voters of the district.

(d) The order calling the election must state:

(1) the nature of the election, including the

proposition to appear on the ballot;

(2) the date of the election;

(3) the hours during which the polls will be open; and

(4) the location of the polling places.

(e) Section 41.001(a), Election Code, does not apply to an

election ordered under this section. (Acts 60th Leg., R.S., Ch.

466, Secs. 20C(a), (b), (c) (part).)

Sec.1062.302.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 the notice must appear on or

before the 35th day before the date set for the election. (Acts

60th Leg., R.S., Ch. 466, Sec. 20C(d) (part).)

Sec.1062.303.BALLOT. The ballot for an election under

this subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the Mitchell County Hospital

District." (Acts 60th Leg., R.S., Ch. 466, Sec. 20C(d) (part).)

Sec.1062.304.ELECTION RESULTS. (a) If a majority of the

votes in an election under this subchapter favor dissolution, the

board shall find that the district is dissolved.

(b) If a majority of the votes in the election do not favor

dissolution, the board shall continue to administer the district

and another election on the question of dissolution may not be held

before the first anniversary of the date of the most recent election

to dissolve the district. (Acts 60th Leg., R.S., Ch. 466, Sec.

20C(e).)

Sec.1062.305.TRANSFER, SALE, OR ADMINISTRATION OF ASSETS.

(a) If a majority of the votes in the election held under this

subchapter favor dissolution, the board shall:

(1) transfer the land, buildings, improvements,

equipment, and other assets that belong to the district to a county

or to another governmental entity in Mitchell County;

(2) sell the assets and liabilities to another person;

(3) 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.

administers the property, assets, and debts of the district under

Subsection (a)(3), the district is dissolved when all money has

been disposed of and all district debts have been paid or settled.

(Acts 60th Leg., R.S., Ch. 466, Secs. 20C(f), (g), (m) (part).)

Sec.1062.306.SALE OR TRANSFER OF ASSETS AND LIABILITIES.

(a) The dissolution of the district and the sale or transfer of the

district's assets and liabilities to another person may not

contravene a trust indenture or bond resolution relating to the

district's outstanding bonds. The dissolution and sale or transfer

does not diminish or impair the rights of a holder of an outstanding

bond, warrant, or other obligation of the district.

(b) 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.

district's assets except for due compensation unless:

(1) the transfer is made to another governmental

entity that serves the district; and

(2) the transferred assets are to be used for the

benefit of the district's residents.

(d) A grant from federal funds is an obligation to be repaid

in satisfaction. (Acts 60th Leg., R.S., Ch. 466, Secs. 20C(m)

(part), (n).)

Sec. 1062.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES. (a) After the board finds that the district is dissolved,

the board shall:

(1) determine the debt owed by the district; and

(2) impose on the property included in the district's

tax rolls a tax that is in proportion of the debt to the property

value.

(b) On the payment of all outstanding debts and obligations

of the district, the board shall order the person serving as

secretary and treasurer to return to each district taxpayer the

taxpayer's pro rata share of all unused tax money.

surplus tax money be credited to the taxpayer's county taxes. If a

taxpayer requests the credit, the board shall direct the person

serving as secretary and treasurer to transmit the money to the

county tax assessor-collector. (Acts 60th Leg., R.S., Ch. 466,

Secs. 20C(h), (i), (j).)

Sec.1062.308.REPORT; DISSOLUTION ORDER. (a) After the

district has paid all district debts and has disposed of all

district money and other assets as prescribed by this subchapter,

the board shall file a written report with the Commissioners Court

of Mitchell County summarizing the board's actions in dissolving

the district.

(b) Not later than the 10th day after the date the

Commissioners Court of Mitchell County receives the report and

determines that the requirements of this subchapter have been

fulfilled, the commissioners court shall enter an order dissolving

the district and releasing the board from any further duty or

obligation. (Acts 60th Leg., R.S., Ch. 466, Secs. 20C(k), (l).)

CHAPTER 1065. MOTLEY COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1065.001. DEFINITIONS

Sec. 1065.002. AUTHORITY FOR OPERATION

Sec. 1065.003. POLITICAL SUBDIVISION

Sec. 1065.004. DISTRICT TERRITORY

Sec. 1065.005. CORRECTION OF INVALID PROCEDURES

[Sections 1065.006-1065.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1065.051. BOARD ELECTION; TERM

Sec. 1065.052. NOTICE OF ELECTION

Sec. 1065.053. BALLOT PETITION

Sec. 1065.054. QUALIFICATIONS FOR OFFICE

Sec. 1065.055. BOND NOT REQUIRED

Sec. 1065.056. BOARD VACANCY

Sec. 1065.057. OFFICERS

Sec. 1065.058. COMPENSATION; EXPENSES

Sec. 1065.059. VOTING REQUIREMENT

Sec. 1065.060. EMPLOYEES

Sec. 1065.061. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

Sec. 1065.062. SEAL

[Sections 1065.063-1065.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1065.101. DISTRICT RESPONSIBILITY

Sec. 1065.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION

Sec. 1065.103. MANAGEMENT AND CONTROL

Sec. 1065.104. HOSPITAL SYSTEM

Sec. 1065.105. RULES

Sec. 1065.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1065.107. DISTRICT PROPERTY AND FACILITIES

Sec. 1065.108. EMINENT DOMAIN

Sec. 1065.109. GIFTS AND ENDOWMENTS

Sec. 1065.110. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1065.111. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1065.112. AUTHORITY TO SUE AND BE SUED

[Sections 1065.113-1065.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1065.151. BUDGET

Sec. 1065.152. PROPOSED BUDGET: NOTICE AND HEARING

Sec. 1065.153. FISCAL YEAR

Sec. 1065.154. ANNUAL AUDIT

Sec. 1065.155. DEPOSITORY OR TREASURER

[Sections 1065.156-1065.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1065.201. GENERAL OBLIGATION BONDS

Sec. 1065.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1065.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1065.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1065.205. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1065.206. REVENUE OR SPECIAL OBLIGATION BONDS

Sec. 1065.207. CHARGES FOR SERVICES RENDERED

[Sections 1065.208-1065.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1065.251. IMPOSITION OF AD VALOREM TAX

Sec. 1065.252. TAX RATE

Sec. 1065.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1065. MOTLEY COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1065.001.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 Motley County Hospital

District. (New.)

Sec.1065.002.AUTHORITY FOR OPERATION. The district

operates in accordance with Section 9, Article IX, Texas

Constitution. The district has the rights, powers, and duties

provided by this chapter. (Acts 59th Leg., R.S., Ch. 465, Sec. 1

(part).)

Sec.1065.003.POLITICAL SUBDIVISION. The district is a

political subdivision of this state. (Acts 59th Leg., R.S., Ch.

465, Sec. 18 (part).)

Sec.1065.004.DISTRICT TERRITORY. The boundaries of the

district are identical with the boundaries of Motley County, Texas.

(Acts 59th Leg., R.S., Ch. 465, Sec. 1 (part).)

Sec.1065.005.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 59th Leg., R.S., Ch. 465, Sec. 19 (part).)

[Sections 1065.006-1065.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1065.051.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. (Acts 59th Leg., R.S., Ch. 465, Sec. 3 (part).)

Sec.1065.052.NOTICE OF ELECTION. At least 10 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper of general circulation in

Motley County. (Acts 59th Leg., R.S., Ch. 465, Sec. 3 (part).)

Sec.1065.053.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 not less than five registered voters;

and

(2) filed at least 25 days before the date of the

election. (Acts 59th Leg., R.S., Ch. 465, Sec. 3 (part).)

Sec.1065.054.QUALIFICATIONS FOR OFFICE. A director must:

(1) be a district resident;

(2) own land in the district subject to taxation; and

(3) be at least 18 years of age when appointed or

elected. (Acts 59th Leg., R.S., Ch. 465, Sec. 3 (part).)

Sec.1065.055.BOND NOT REQUIRED. A director is not

required to post a public official's bond. (Acts 59th Leg., R.S.,

Ch. 465, Sec. 3 (part).)

Sec.1065.056.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, a district court, on

application of a district voter or taxpayer, may order the

directors to hold the election. (Acts 59th Leg., R.S., Ch. 465,

Sec. 3 (part).)

Sec.1065.057.OFFICERS. The board shall elect from among

its members a president and a secretary. (Acts 59th Leg., R.S., Ch.

465, Sec. 3 (part).)

Sec.1065.058.COMPENSATION; EXPENSES. A director 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 59th Leg., R.S., Ch. 465, Sec. 4

(part).)

Sec.1065.059.VOTING REQUIREMENT. A concurrence of three

directors is sufficient in any matter relating to district

business. (Acts 59th Leg., R.S., Ch. 465, Sec. 3 (part).)

Sec.1065.060.EMPLOYEES. The board may employ a general

manager, attorney, bookkeeper, and architect and any other

employees considered necessary for the efficient operation of the

district. (Acts 59th Leg., R.S., Ch. 465, Sec. 8 (part).)

Sec.1065.061.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

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 59th Leg., R.S., Ch. 465, Sec. 8

(part).)

Sec.1065.062.SEAL. The board may adopt a seal for the

district. (Acts 59th Leg., R.S., Ch. 465, Sec. 8 (part).)

[Sections 1065.063-1065.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1065.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for providing medical and hospital care for the

district's needy inhabitants and for the district's needy and

indigent residents. (Acts 59th Leg., R.S., Ch. 465, Secs. 2 (part),

14 (part).)

Sec. 1065.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION. Motley County or a municipality in the district may not

impose a tax on property in the district for hospital purposes.

(Acts 59th Leg., R.S., Ch. 465, Sec. 14 (part).)

Sec.1065.103.MANAGEMENT AND CONTROL. The management and

control of the district are vested in the board. (Acts 59th Leg.,

R.S., Ch. 465, Sec. 4 (part).)

Sec.1065.104.HOSPITAL SYSTEM. The district shall provide

for the establishment of a hospital system to provide medical and

hospital care to the district's residents by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and improvements;

(2) equipping the buildings and improvements; and

(3) administering the buildings and improvements for

hospital purposes. (Acts 59th Leg., R.S., Ch. 465, Sec. 2 (part).)

Sec.1065.105.RULES. (a) The board may adopt rules

governing the operation of the district, including district

facilities.

(b) On approval by the board, the rules may be published in

booklet form at district expense and made available to any taxpayer

on request. (Acts 59th Leg., R.S., Ch. 465, Sec. 8 (part).)

Sec.1065.106.PURCHASING AND ACCOUNTING PROCEDURES. (a)

The board may prescribe the method and manner of making purchases

and expenditures by and for the district.

(b) The board shall prescribe:

(1) all accounting and control procedures; and

(2) the method of purchasing necessary supplies,

materials, and equipment. (Acts 59th Leg., R.S., Ch. 465, Sec. 8

(part).)

Sec.1065.107.DISTRICT PROPERTY AND FACILITIES. (a) The

board shall determine the type, number, and location of buildings

required to maintain an adequate hospital system. Nothing here

prohibits the establishing and equipping of a clinic as part of the

hospital system.

(b) The board may lease all or part of the district's

buildings and other facilities on terms considered to be in the best

interest of the district's inhabitants. The term of the lease may

not exceed 25 years. (Acts 59th Leg., R.S., Ch. 465, Sec. 7

(part).)

Sec.1065.108.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 property 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 59th Leg., R.S., Ch. 465, Sec.

11.)

Sec.1065.109.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment 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. 465,

Sec. 16.)

Sec.1065.110.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a district facility. (Acts 59th Leg., R.S., Ch. 465, Sec. 7

(part).)

Sec.1065.111.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient who resides in the district is admitted to a district

facility, the board shall have an inquiry made into the

circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for

the patient's support.

(b) If an agent designated by the district to handle the

inquiry determines that the patient or those relatives cannot pay

all or part of the costs of the care and treatment in the hospital,

the amount of the costs that cannot be paid becomes a charge against

the district.

relatives are liable to pay for all or part of the costs of the

patient's care and treatment, the patient or those relatives shall

be ordered to pay to the district's treasurer 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 may collect the amount from the patient's

estate, or from any relative who is legally liable for the patient's

support, in the manner provided by law for the collection of

expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the district's designated agent, the board shall hold

a hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue an appropriate order.

(f) The order may be appealed to the district court. (Acts

59th Leg., R.S., Ch. 465, Sec. 15.)

Sec.1065.112.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 59th Leg., R.S., Ch. 465,

Sec. 18 (part).)

[Sections 1065.113-1065.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1065.151.BUDGET. The board annually shall require a

budget to be 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 59th Leg., R.S., Ch. 465, Sec. 9 (part).)

Sec.1065.152.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 Motley County not later than

the 10th day before the date of the hearing.

(1) appear at the time and place designated in the

notice; and

(2) be heard regarding any item included in the

proposed budget. (Acts 59th Leg., R.S., Ch. 465, Sec. 9 (part).)

Sec.1065.153.FISCAL YEAR. The district operates on a

fiscal year that begins on October 1 and ends on September 30.

(Acts 59th Leg., R.S., Ch. 465, Sec. 9 (part).)

Sec.1065.154.ANNUAL AUDIT. The board annually shall have

an independent audit made of the district's books and records.

(Acts 59th Leg., R.S., Ch. 465, Sec. 9 (part).)

Sec.1065.155.DEPOSITORY OR TREASURER. (a) The board by

resolution shall designate a bank or banks in Motley County as the

district's depository or treasurer. A designated bank serves for

two years and until a successor is designated.

(b) All district money shall be secured in the manner

provided for securing county funds. (Acts 59th Leg., R.S., Ch. 465,

Sec. 12.)

[Sections 1065.156-1065.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1065.201.GENERAL OBLIGATION BONDS. The board may

issue and sell general obligation bonds in the name and on the faith

of the district for any purpose relating to:

(1) the purchase, construction, acquisition, repair,

or renovation of buildings or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 59th Leg., R.S., Ch. 465, Sec. 6 (part).)

Sec.1065.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a)

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 general obligation bonds issued under Section 1065.201

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. 465, Sec. 6 (part).)

Sec.1065.203.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.

(b) The board may call the election on its own motion.

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding election officers;

(4) the purpose of the bond issuance;

(5) the amount of the bonds to be authorized;

(6) the maximum interest rate of the bonds; and

(7) 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 Motley County once each week for two

consecutive weeks before the date of the election. The first

publication must occur at least 14 days before the date of the

election. (Acts 59th Leg., R.S., Ch. 465, Sec. 6 (part).)

Sec.1065.204.MATURITY OF GENERAL OBLIGATION BONDS.

District general obligation bonds must mature not later than 40

years after the date of issuance. (Acts 59th Leg., R.S., Ch. 465,

Sec. 6 (part).)

Sec.1065.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds. (Acts

59th Leg., R.S., Ch. 465, Sec. 6 (part).)

Sec.1065.206.REVENUE OR SPECIAL OBLIGATION BONDS. (a)

The board may issue and sell revenue or special obligation bonds for

the purposes provided by Section 1065.201.

(b) Special obligation bonds must be payable from the

revenue of the district's entire hospital system, including that

portion originally acquired and all past or future extensions,

additions, or replacements, excluding taxes, after deducting the

cost of maintaining and operating the system. For purposes of this

subsection, the cost of maintaining and operating the system:

(1) may include only the items set forth and defined in

the resolution authorizing the bond issuance; and

(2) may not include the cost of providing medical or

hospital care for the district's needy inhabitants.

and operating expense for budget and tax purposes.

(d) The district may issue revenue bonds without an

election.

(e) Revenue bonds may be additionally secured by:

(1) a mortgage or deed of trust on real property;

(2) a chattel mortgage on the district's personal

property; or

(3) both.

(f) The board may issue bonds that are a junior lien on the

district's net revenue or property and additional parity bonds

under conditions specified in the bond resolution or trust

indenture.

(g) Money for the payment of not more than two years'

interest on the bonds and an amount the board estimates will be

required for maintenance and operating expenses during the first

two years of operation may be set aside out of the proceeds from the

sale of the bonds.

(h) A revenue bond issued by the district must contain the

provision: "The holder of the bond may not demand payment of this

bond or appurtenant coupons out of money raised or to be raised by

taxation." (Acts 59th Leg., R.S., Ch. 465, Sec. 6(a) (part).)

Sec.1065.207.CHARGES FOR SERVICES RENDERED. If the board

issues revenue bonds, the board shall charge and collect rates for

services rendered by the hospital system that are sufficient to:

(1) pay the maintenance and operating expenses

described by Section 1065.206;

(2) pay the principal of and interest on the bonds as

each becomes due; and

(3) create and maintain a bond reserve fund and other

funds as provided in the bond resolution or trust indenture. (Acts

59th Leg., R.S., Ch. 465, Sec. 6(a) (part).)

[Sections 1065.208-1065.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1065.251.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 by the district for hospital purposes; and

(2) provide for the maintenance and operation of the

district and hospital system. (Acts 59th Leg., R.S., Ch. 465, Secs.

5 (part), 9 (part).)

Sec.1065.252.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 59th Leg., R.S., Ch. 465, Sec. 5

(part).)

Sec.1065.253.TAX ASSESSOR-COLLECTOR. The tax

assessor-collector of Motley County shall assess and collect taxes

imposed by the district. (Acts 59th Leg., R.S., Ch. 465, Sec. 10

(part).)

CHAPTER 1066. MOULTON COMMUNITY MEDICAL CLINIC DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1066.001. DEFINITIONS

Sec. 1066.002. AUTHORITY FOR OPERATION

Sec. 1066.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1066.004. DISTRICT TERRITORY

Sec. 1066.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1066.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1066.007-1066.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1066.051. BOARD ELECTION; TERM

Sec. 1066.052. NOTICE OF ELECTION

Sec. 1066.053. QUALIFICATIONS FOR OFFICE

Sec. 1066.054. BOARD VACANCY

Sec. 1066.055. OFFICERS

Sec. 1066.056. COMPENSATION; EXPENSES

Sec. 1066.057. VOTING REQUIREMENT

Sec. 1066.058. DISTRICT ADMINISTRATOR

Sec. 1066.059. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1066.060. ASSISTANT DISTRICT ADMINISTRATOR;

ATTORNEY

Sec. 1066.061. EMPLOYEES; APPOINTMENT OF STAFF

Sec. 1066.062. RETIREMENT BENEFITS

[Sections 1066.063-1066.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1066.101. DISTRICT RESPONSIBILITY

Sec. 1066.102. RESTRICTION ON COUNTY AND MUNICIPALITY

TAXATION AND DEBT

Sec. 1066.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1066.104. RULES

Sec. 1066.105. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1066.106. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1066.107. EMINENT DOMAIN

Sec. 1066.108. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 1066.109. GIFTS AND ENDOWMENTS

Sec. 1066.110. CONSTRUCTION CONTRACTS

Sec. 1066.111. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1066.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR SERVICES

Sec. 1066.113. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1066.114. REIMBURSEMENT FOR SERVICES

Sec. 1066.115. AUTHORITY TO SUE AND BE SUED

[Sections 1066.116-1066.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1066.151. BUDGET

Sec. 1066.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1066.153. AMENDMENTS TO BUDGET

Sec. 1066.154. RESTRICTION ON EXPENDITURES

Sec. 1066.155. FISCAL YEAR

Sec. 1066.156. ANNUAL AUDIT

Sec. 1066.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS

Sec. 1066.158. FINANCIAL REPORT

Sec. 1066.159. DEPOSITORY

Sec. 1066.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1066.161-1066.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1066.201. GENERAL OBLIGATION BONDS

Sec. 1066.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1066.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1066.204. REVENUE BONDS

Sec. 1066.205. REFUNDING BONDS

Sec. 1066.206. MATURITY OF BONDS

Sec. 1066.207. EXECUTION OF BONDS

Sec. 1066.208. BONDS EXEMPT FROM TAXATION

[Sections 1066.209-1066.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1066.251. IMPOSITION OF AD VALOREM TAX

Sec. 1066.252. TAX RATE

Sec. 1066.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1066. MOULTON COMMUNITY MEDICAL CLINIC DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1066.001.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 Moulton Community Medical

Clinic District. (Acts 71st Leg., R.S., Ch. 546, Sec. 1.01.)

Sec.1066.002.AUTHORITY FOR OPERATION. The district

operates and is financed as provided by Section 9, Article IX, Texas

Constitution, and by this chapter. (Acts 71st Leg., R.S., Ch. 546,

Sec. 1.02.)

Sec.1066.003.ESSENTIAL PUBLIC FUNCTION. The district is

a public entity performing an essential public function. (Acts

71st Leg., R.S., Ch. 546, Sec. 7.11 (part).)

Sec.1066.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Moulton Independent

School District of Lavaca County, Texas, as those boundaries

existed on August 28, 1989. (Acts 71st Leg., R.S., Ch. 546, Sec.

1.03.)

Sec. 1066.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The state may not become obligated for the support or

maintenance of the district. (Acts 71st Leg., R.S., Ch. 546, Sec.

9.01 (part).)

Sec.1066.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 71st Leg., R.S., Ch. 546, Sec. 9.01 (part).)

[Sections 1066.007-1066.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1066.051.BOARD ELECTION; TERM. (a) The district is

governed by a board of nine directors elected from the district at

large.

(b) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) an election shall be held on the uniform election

date in May of each year to elect the appropriate number of

directors. (Acts 71st Leg., R.S., Ch. 546, Secs. 4.01(a), 4.03(a),

Sec.1066.052.NOTICE OF ELECTION. At least 35 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper with general circulation in the

district. (Acts 71st Leg., R.S., Ch. 546, Sec. 4.04.)

Sec.1066.053.QUALIFICATIONS FOR OFFICE. To be eligible

to be a candidate for or to serve as a director, a person must be:

(1) a district resident; and

(2) a qualified voter. (Acts 71st Leg., R.S., Ch. 546,

Sec. 4.06.)

Sec.1066.054.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 71st Leg., R.S., Ch. 546,

Sec. 4.07.)

Sec.1066.055.OFFICERS. (a) The board shall elect a

president, vice president, and treasurer from among its members.

(b) The board shall appoint a secretary, who need not be a

director.

(d) The board shall fill a vacancy in a board office for the

unexpired term. (Acts 71st Leg., R.S., Ch. 546, Secs. 4.08, 4.09.)

Sec.1066.056.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 71st Leg., R.S., Ch.

546, Sec. 4.10.)

Sec.1066.057.VOTING REQUIREMENT. A concurrence of a

majority of the directors voting is necessary in any matter

relating to district business. (Acts 71st Leg., R.S., Ch. 546, Sec.

4.11.)

Sec.1066.058.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 is entitled to compensation determined by the board.

the administrator must execute a bond in the amount determined by

the board of not less than $5,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

administrator's duties under this chapter.

(d) The board may pay for the bond with district money.

(Acts 71st Leg., R.S., Ch. 546, Secs. 4.12(a) (part), (b) (part),

Sec.1066.059.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 general affairs of the district. (Acts

71st Leg., R.S., Ch. 546, Sec. 4.15.)

Sec.1066.060.ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.

(a) The board may appoint qualified persons as:

(1) the assistant district administrator; and

(2) the attorney for the district.

(b) The attorney for the district and the assistant district

administrator serve at the will of the board and are entitled to the

compensation determined by the board. (Acts 71st Leg., R.S., Ch.

546, Secs. 4.12(a) (part), (b) (part), (c) (part).)

Sec.1066.061.EMPLOYEES; APPOINTMENT OF STAFF. (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 necessary.

(b) The district may employ technicians, nurses, fiscal

agents, accountants, architects, additional attorneys, and other

necessary employees.

authority to employ district employees. (Acts 71st Leg., R.S., Ch.

546, Secs. 4.13, 4.14.)

Sec.1066.062.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 71st Leg., R.S., Ch.

546, Sec. 4.16.)

[Sections 1066.063-1066.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1066.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for:

(1) operating hospital facilities; and

(2) providing medical and hospital care for the

district's needy inhabitants. (Acts 71st Leg., R.S., Ch. 546, Sec.

5.02 (part).)

Sec. 1066.102. RESTRICTION ON COUNTY AND MUNICIPALITY

TAXATION AND DEBT. Lavaca County and the City of Moulton may not

impose a tax or issue bonds or other obligations for hospital

purposes or to provide medical care for district residents. (Acts

71st Leg., R.S., Ch. 546, Sec. 5.01(b).)

Sec.1066.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the clinic or a

hospital system and the district's money and resources. (Acts 71st

Leg., R.S., Ch. 546, Sec. 5.03.)

Sec.1066.104.RULES. The board may adopt rules governing:

(1) the operation of the clinic or a hospital and

hospital system; and

(2) the duties, functions, and responsibilities of

district staff and employees. (Acts 71st Leg., R.S., Ch. 546, Sec.

5.04.)

Sec.1066.105.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method of making purchases and expenditures by

and for the district; and

(2) accounting and control procedures for the

district. (Acts 71st Leg., R.S., Ch. 546, Sec. 5.05.)

Sec. 1066.106. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine:

(1) the type, number, and location of buildings

required to maintain the clinic or an adequate hospital system; and

(2) the type of equipment necessary for medical care.

(b) The board may:

(1) acquire property, including facilities and

equipment, for the district for the clinic or the hospital system;

and

(2) mortgage or pledge the property as security for

the payment of the purchase price.

district.

(d) The board may sell or otherwise dispose of property,

including facilities or equipment, for the district. (Acts 71st

Leg., R.S., Ch. 546, Sec. 5.06.)

Sec.1066.107.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in property located in district territory if the

interest is necessary for the district to exercise a right or

authority conferred 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 71st Leg., R.S., Ch. 546, Sec.

5.09.)

Sec.1066.108.COST OF RELOCATING OR ALTERING PROPERTY. In

exercising the power of eminent domain, if the board requires

relocating, raising, lowering, rerouting, changing the grade of, or

altering the construction of any railroad, highway, pipeline, or

electric transmission and electric distribution, telegraph, or

telephone line, conduit, pole, or facility, the district must bear

the actual cost of relocating, raising, lowering, rerouting,

changing the grade, or altering the construction to provide

comparable replacement, without enhancement of facilities, after

deducting the net salvage value derived from the old facility.

(Acts 71st Leg., R.S., Ch. 546, Sec. 5.10.)

Sec.1066.109.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust for any

purpose and under any direction, limitation, or other provision

prescribed in writing by the donor that is consistent with the

proper management of the district. (Acts 71st Leg., R.S., Ch. 546,

Sec. 5.14.)

Sec.1066.110.CONSTRUCTION CONTRACTS. (a) The board may

enter into 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 competitive

bidding as provided by Subchapter B, Chapter 271, Local Government

Code. (Acts 71st Leg., R.S., Ch. 546, Sec. 5.07(a).)

Sec.1066.111.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a district facility for the district. (Acts 71st Leg., R.S., Ch.

546, Sec. 5.08.)

Sec. 1066.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

SERVICES. The board may contract with a political subdivision of

this state or with a state or federal agency for the district to:

(1) furnish a mobile emergency medical service; or

(2) provide for the investigatory or welfare needs of

district inhabitants. (Acts 71st Leg., R.S., Ch. 546, Sec. 5.13.)

Sec.1066.113.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 financial circumstances of:

(1) the patient; or

(2) a relative of the patient who is 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 that the patient

or a relative of the patient who is legally responsible for the

patient's support cannot pay.

responsible for the patient's support 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 the relative to

pay the district a specified amount each week. The amount must be

based on the individual's ability to pay.

(d) The district administrator may collect money owed to the

district from the patient's estate or from that of a relative who

was legally responsible for the patient's support in the manner

provided by law for collection of expenses of the last illness of a

deceased person.

(e) If there is a dispute relating to an individual's

ability to pay or if the district administrator has any doubt

concerning an individual's ability to pay, the board shall:

(1) call witnesses;

(2) hear and resolve the question; and

(3) issue a final order.

(f) A final order of the board may be appealed to a district

court in Lavaca County. The substantial evidence rule applies to

the appeal. (Acts 71st Leg., R.S., Ch. 546, Secs. 5.11(a), (c),

(d), (e), (f).)

Sec.1066.114.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 and treatment of a sick or injured person of that county,

municipality, or public hospital as provided by Chapter 61, Health

and Safety Code.

(b) The board shall require the sheriff of Lavaca County or

the police chief of the City of Moulton to reimburse the district

for the district's care and treatment of a person who is confined in

a jail facility of Lavaca County or the City of Moulton and is not a

district resident.

government for that government to reimburse the district for

treatment of a sick or injured person. (Acts 71st Leg., R.S., Ch.

546, Sec. 5.12.)

Sec.1066.115.AUTHORITY TO SUE AND BE SUED. The board may

sue and be sued on behalf of the district. (Acts 71st Leg., R.S.,

Ch. 546, Sec. 5.15.)

[Sections 1066.116-1066.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1066.151.BUDGET. (a) The district administrator

shall prepare a proposed annual budget for the district.

(b) The proposed budget must contain a complete financial

statement, including a statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash on hand in each district fund;

(3) the amount of money received by the district from

all sources during the previous year;

(4) the amount of money available to the district from

all sources during the ensuing year;

(5) the amount of the balances expected at the end of

the year in which the budget is being prepared;

(6) the estimated amount of revenue and balances

available to cover the proposed budget; and

(7) the estimated tax rate required. (Acts 71st Leg.,

R.S., Ch. 546, Sec. 6.04.)

Sec.1066.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) The board shall publish notice of the hearing in a

newspaper with general circulation in the district not later than

the 10th day before the date of the hearing.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the

taxpayers.

(e) The budget is effective only after adoption by the

board. (Acts 71st Leg., R.S., Ch. 546, Sec. 6.05.)

Sec.1066.153.AMENDMENTS TO BUDGET. After the annual

budget is adopted, the budget may be amended on the board's

approval. (Acts 71st Leg., R.S., Ch. 546, Sec. 6.06.)

Sec.1066.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 71st Leg., R.S., Ch. 546, Sec. 6.07.)

Sec.1066.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) when revenue bonds of the district are

outstanding; or

(2) more than once in a 24-month period. (Acts 71st

Leg., R.S., Ch. 546, Sec. 6.01.)

Sec.1066.156.ANNUAL AUDIT. The board annually shall have

an audit made of the district's financial condition. (Acts 71st

Leg., R.S., Ch. 546, Sec. 6.02.)

Sec. 1066.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS. The annual audit and other district records are open to

inspection during regular business hours at the district's

principal office. (Acts 71st Leg., R.S., Ch. 546, Sec. 6.03.)

Sec.1066.158.FINANCIAL REPORT. As soon as practicable

after the close of the fiscal year, the district administrator

shall prepare for the board:

(1) a sworn statement of the amount of district money;

and

(2) an account of the disbursements of that money.

(Acts 71st Leg., R.S., Ch. 546, Sec. 6.08.)

Sec.1066.159.DEPOSITORY. (a) The board shall select at

least one bank to serve as a depository for district money.

(b) District money, other than money invested as provided by

Section 1066.160(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 must remain on

deposit. This subsection does not limit the power of the board to

place a portion of district money on time deposit or to purchase

certificates of deposit.

amount that exceeds the maximum amount secured by the Federal

Deposit Insurance Corporation unless the bank first executes a bond

or other security in an amount sufficient to secure from loss the

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation. (Acts 71st Leg., R.S., Ch. 546,

Sec. 6.10.)

Sec.1066.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as provided by Sections 1066.110, 1066.201, 1066.204, and

1066.205, the district may not incur a debt payable from district

revenue other than the revenue on hand or to be on hand in the

current and immediately following district fiscal years.

(b) The board may invest operating, depreciation, or

building reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 71st Leg., R.S., Ch. 546, Sec. 6.09.)

[Sections 1066.161-1066.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1066.201.GENERAL OBLIGATION BONDS. The board may

issue and sell general obligation bonds authorized by an election

in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements; or

(2) equip buildings or improvements for clinic or

hospital purposes. (Acts 71st Leg., R.S., Ch. 546, Sec. 7.01.)

Sec.1066.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1066.201, 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

limit approved by the voters at the election authorizing the

imposition of the tax. (Acts 71st Leg., R.S., Ch. 546, Sec. 7.02.)

Sec.1066.203.GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the district voters voting at an

election held for that purpose.

(b) The board may order a bond election.

(1) the nature and date of the election;

(2) the hours during which the polls will be open;

(3) the location of the polling places;

(4) the amount of the bonds to be authorized; and

(5) the maximum maturity of the bonds.

(d) Notice of a bond election shall be given as provided by

Section 1251.003, Government Code.

(e) The board shall declare the results of the election.

(Acts 71st Leg., R.S., Ch. 546, Sec. 7.03.)

Sec.1066.204.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for clinic or hospital purposes;

(2) acquire sites to be used for clinic or 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 clinic

or the district's hospital system.

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, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority.

(Acts 71st Leg., R.S., Ch. 546, Sec. 7.04.)

Sec.1066.205.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 the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 71st

Leg., R.S., Ch. 546, Secs. 7.05(a), (c) (part).)

Sec.1066.206.MATURITY OF BONDS. District bonds must

mature not later than 50 years after the date of issuance. (Acts

71st Leg., R.S., Ch. 546, Sec. 7.06 (part).)

Sec.1066.207.EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 71st Leg.,

R.S., Ch. 546, Sec. 7.07.)

Sec.1066.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) any transaction relating to the bonds; and

(3) profits made in the sale of the bonds. (Acts 71st

Leg., R.S., Ch. 546, Sec. 7.11 (part).)

[Sections 1066.209-1066.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1066.251.IMPOSITION OF AD VALOREM TAX. (a) The board

may impose a tax on all property in the district subject to district

taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

or interest on revenue bonds issued under this chapter. (Acts 71st

Leg., R.S., Ch. 546, Secs. 8.01(a) (part), (c), (d), 8.02(b).)

Sec.1066.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed the limit approved by the voters at the

election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on

each $100 valuation of all taxable property in the district.

income of the district from sources other than taxation. (Acts 71st

Leg., R.S., Ch. 546, Secs. 8.01(a) (part), (b), 8.03 (part).)

Sec.1066.253.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 71st Leg., R.S., Ch. 546, Sec.

8.04(b).)

CHAPTER 1068. MULESHOE AREA HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1068.001. DEFINITIONS

Sec. 1068.002. AUTHORITY FOR OPERATION

Sec. 1068.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1068.004. DISTRICT TERRITORY

Sec. 1068.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1068.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1068.007-1068.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1068.051. BOARD ELECTION; TERM

Sec. 1068.052. NOTICE OF ELECTION

Sec. 1068.053. BALLOT PETITION

Sec. 1068.054. QUALIFICATIONS FOR OFFICE

Sec. 1068.055. BOARD VACANCY

Sec. 1068.056. OFFICERS

Sec. 1068.057. COMPENSATION; EXPENSES

Sec. 1068.058. VOTING REQUIREMENT

Sec. 1068.059. DISTRICT ADMINISTRATOR

Sec. 1068.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1068.061. ASSISTANT DISTRICT ADMINISTRATOR;

ATTORNEY

Sec. 1068.062. EMPLOYEES; APPOINTMENT OF STAFF

Sec. 1068.063. RETIREMENT BENEFITS

[Sections 1068.064-1068.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1068.101. DISTRICT RESPONSIBILITY

Sec. 1068.102. RESTRICTION ON COUNTY TAXATION AND DEBT

Sec. 1068.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1068.104. RULES

Sec. 1068.105. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1068.106. MOBILE EMERGENCY MEDICAL SERVICE

Sec. 1068.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1068.108. EMINENT DOMAIN

Sec. 1068.109. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 1068.110. GIFTS AND ENDOWMENTS

Sec. 1068.111. CONSTRUCTION CONTRACTS

Sec. 1068.112. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1068.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR SERVICES

Sec. 1068.114. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1068.115. REIMBURSEMENT FOR SERVICES

Sec. 1068.116. AUTHORITY TO SUE AND BE SUED

[Sections 1068.117-1068.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1068.151. BUDGET

Sec. 1068.152. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1068.153. AMENDMENTS TO BUDGET

Sec. 1068.154. RESTRICTION ON EXPENDITURES

Sec. 1068.155. FISCAL YEAR

Sec. 1068.156. ANNUAL AUDIT

Sec. 1068.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS

Sec. 1068.158. FINANCIAL REPORT

Sec. 1068.159. DEPOSITORY

Sec. 1068.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1068.161-1068.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1068.201. GENERAL OBLIGATION BONDS

Sec. 1068.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1068.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1068.204. REVENUE BONDS

Sec. 1068.205. REFUNDING BONDS

Sec. 1068.206. MATURITY OF BONDS

Sec. 1068.207. EXECUTION OF BONDS

Sec. 1068.208. BONDS EXEMPT FROM TAXATION

[Sections 1068.209-1068.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1068.251. IMPOSITION OF AD VALOREM TAX

Sec. 1068.252. TAX RATE

Sec. 1068.253. ELECTION TO INCREASE MAXIMUM TAX RATE

Sec. 1068.254. TAX ASSESSOR-COLLECTOR

CHAPTER 1068. MULESHOE AREA HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1068.001.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 Muleshoe Area Hospital

District. (Acts 71st Leg., R.S., Ch. 45, Sec. 1.01.)

Sec.1068.002.AUTHORITY FOR OPERATION. The district

operates and is financed as provided by Section 9, Article IX, Texas

Constitution, and by this chapter. (Acts 71st Leg., R.S., Ch. 45,

Sec. 1.02.)

Sec.1068.003.ESSENTIAL PUBLIC FUNCTION. The district is

a public entity performing an essential public function. (Acts

71st Leg., R.S., Ch. 45, Sec. 7.11 (part).)

Sec.1068.004.DISTRICT TERRITORY. The district is

composed of the territory described by Section 1.03, Chapter 45,

Acts of the 71st Legislature, Regular Session, 1989. (New.)

Sec. 1068.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The state may not become obligated for the support or

maintenance of the district. (Acts 71st Leg., R.S., Ch. 45, Sec.

9.01 (part).)

Sec.1068.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 71st Leg., R.S., Ch. 45, Sec. 9.01 (part).)

[Sections 1068.007-1068.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1068.051.BOARD ELECTION; TERM. (a) The district is

governed by a board of five directors elected by place.

(b) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) an election shall be held on the uniform election

date in May of each year to elect the appropriate number of

directors. (Acts 71st Leg., R.S., Ch. 45, Secs. 4.01(a), 4.03(a),

(d) (part).)

Sec.1068.052.NOTICE OF ELECTION. At least 35 days before

the date of an election of directors, notice of the election shall

be published one time in a newspaper with general circulation in the

district. (Acts 71st Leg., R.S., Ch. 45, Sec. 4.04.)

Sec.1068.053.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:

(1) be signed by at least 25 registered voters of the

district as determined by the most recent official list of

registered voters;

(2) be filed not later than the 31st day before the

date of the election; and

(3) specify the place for which the person is to be a

candidate. (Acts 71st Leg., R.S., Ch. 45, Sec. 4.05.)

Sec.1068.054.QUALIFICATIONS FOR OFFICE. (a) To be

eligible to be a candidate for or to serve as a director, a person

must be:

(1) a district resident; and

(2) a qualified voter.

(b) A district employee may not serve as a director. (Acts

71st Leg., R.S., Ch. 45, Sec. 4.06.)

Sec.1068.055.BOARD VACANCY. If a vacancy occurs in the

office of director, the remaining directors shall appoint a

director for the unexpired term. (Acts 71st Leg., R.S., Ch. 45,

Sec. 4.07.)

Sec.1068.056.OFFICERS. (a) The board shall elect a

president and a vice president from among its members.

(b) The board shall appoint a secretary, who need not be a

director.

(d) The board shall fill a vacancy in a board office for the

unexpired term. (Acts 71st Leg., R.S., Ch. 45, Secs. 4.08, 4.09.)

Sec.1068.057.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 71st Leg., R.S., Ch.

45, Sec. 4.10.)

Sec.1068.058.VOTING REQUIREMENT. A concurrence of a

majority of the directors voting is necessary in any matter

relating to district business. (Acts 71st Leg., R.S., Ch. 45, Sec.

4.11.)

Sec.1068.059.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 is entitled to the compensation determined by the board.

the administrator must execute a bond in the amount determined by

the board of not less than $5,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the

administrator's duties under this chapter.

(d) The board may pay for the bond with district money.

(Acts 71st Leg., R.S., Ch. 45, Secs. 4.12(a) (part), (b) (part), (c)

(part), (d).)

Sec.1068.060.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 general affairs of the district. (Acts

71st Leg., R.S., Ch. 45, Sec. 4.15.)

Sec.1068.061.ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.

(a) The board may appoint qualified persons as:

(1) the assistant district administrator; and

(2) the attorney for the district.

(b) The assistant district administrator and the attorney

for the district serve at the will of the board and are entitled to

the compensation determined by the board. (Acts 71st Leg., R.S.,

Ch. 45, Secs. 4.12(a) (part), (b) (part), (c) (part).)

Sec.1068.062.EMPLOYEES; APPOINTMENT OF STAFF. (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 necessary.

(b) The district may employ technicians, nurses, fiscal

agents, accountants, architects, additional attorneys, and other

necessary employees.

authority to employ persons for the district. (Acts 71st Leg.,

R.S., Ch. 45, Secs. 4.13, 4.14.)

Sec.1068.063.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 71st Leg., R.S., Ch.

45, Sec. 4.16.)

[Sections 1068.064-1068.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1068.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for:

(1) operating hospital facilities; and

(2) providing medical and hospital care for the

district's needy inhabitants. (Acts 71st Leg., R.S., Ch. 45, Sec.

5.02 (part).)

Sec.1068.102.RESTRICTION ON COUNTY TAXATION AND DEBT.

Bailey and Parmer Counties may not impose a tax or issue bonds or

other obligations for hospital purposes or to provide medical care

for district residents. (Acts 71st Leg., R.S., Ch. 45, Sec.

5.01(b).)

Sec.1068.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 71st Leg., R.S., Ch.

45, Sec. 5.03.)

Sec.1068.104.RULES. The board may adopt rules governing:

(1) the operation of the hospital and hospital system;

and

(2) the duties, functions, and responsibilities of

district staff and employees. (Acts 71st Leg., R.S., Ch. 45, Sec.

5.04.)

Sec.1068.105.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method of making purchases and expenditures by

and for the district; and

(2) accounting and control procedures for the

district. (Acts 71st Leg., R.S., Ch. 45, Sec. 5.05.)

Sec.1068.106.MOBILE EMERGENCY MEDICAL SERVICE. The

district may operate or provide for the operation of a mobile

emergency medical service. (Acts 71st Leg., R.S., Ch. 45, Sec. 5.02

(part).)

Sec. 1068.107. 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 property, including facilities and

equipment, for the district for use in the hospital system; and

(2) mortgage or pledge the property as security for

the payment of the purchase price.

district.

(d) The board may sell or otherwise dispose of property,

including facilities or equipment, for the district. (Acts 71st

Leg., R.S., Ch. 45, Sec. 5.06.)

Sec.1068.108.EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in property located in district territory if the

interest is necessary to exercise a right or authority conferred 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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 71st Leg., R.S., Ch. 45, Sec.

5.09.)

Sec.1068.109.COST OF RELOCATING OR ALTERING PROPERTY. In

exercising the power of eminent domain, if the board requires

relocating, raising, lowering, rerouting, changing the grade of, or

altering the construction of any railroad, highway, pipeline, or

electric transmission and electric distribution, telegraph, or

telephone line, conduit, pole, or facility, the district must bear

the actual cost of relocating, raising, lowering, rerouting,

changing the grade, or altering the construction to provide

comparable replacement without enhancement of facilities, after

deducting the net salvage value derived from the old facility.

(Acts 71st Leg., R.S., Ch. 45, Sec. 5.10.)

Sec.1068.110.GIFTS AND ENDOWMENTS. The board may accept

for the district a gift or endowment to be held in trust for any

purpose and under any direction, limitation, or other provision

prescribed in writing by the donor that is consistent with the

proper management of the district. (Acts 71st Leg., R.S., Ch. 45,

Sec. 5.14.)

Sec.1068.111.CONSTRUCTION CONTRACTS. (a) The board may

enter into 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 competitive

bidding as provided by Subchapter B, Chapter 271, Local Government

Code. (Acts 71st Leg., R.S., Ch. 45, Sec. 5.07(a).)

Sec.1068.112.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract relating

to a hospital facility for the district. (Acts 71st Leg., R.S., Ch.

45, Sec. 5.08.)

Sec. 1068.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

SERVICES. The board may contract with a political subdivision of

this state or with a state or federal agency for the district to:

(1) furnish a mobile emergency medical service; or

(2) provide for the investigatory or welfare needs of

district inhabitants. (Acts 71st Leg., R.S., Ch. 45, Sec. 5.13.)

Sec.1068.114.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 financial circumstances of:

(1) the patient; or

(2) a relative of the patient who is 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 that the patient

or a relative of the patient who is legally responsible for the

patient's support cannot pay.

responsible for the patient's support 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 the relative to

pay the district a specified amount each week. The amount must be

based on the individual's ability to pay.

(d) The district administrator may collect money owed to the

district from the patient's estate or from that of a relative who

was legally responsible for the patient's support in the manner

provided by law for collection of expenses of the last illness of a

deceased person.

(e) If there is a dispute relating to an individual's

ability to pay or if the district administrator has any doubt

concerning an individual's ability to pay, the board shall:

(1) call witnesses;

(2) hear and resolve the question; and

(3) issue a final order.

(f) A final order of the board may be appealed to a district

court in the county in which the district is located. The

substantial evidence rule applies to the appeal. (Acts 71st Leg.,

R.S., Ch. 45, Secs. 5.11(a), (c), (d), (e), (f).)

Sec.1068.115.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 and treatment of a sick or injured person of that county,

municipality, or public hospital as provided by Chapter 61, Health

and Safety Code.

(b) The board shall require the sheriff of Bailey County to

reimburse the district for the district's care and treatment of a

person who is confined in a jail facility of Bailey County and is

not a district resident.

government for that government to reimburse the district for

treatment of a sick or injured person. (Acts 71st Leg., R.S., Ch.

45, Sec. 5.12.)

Sec.1068.116.AUTHORITY TO SUE AND BE SUED. The board may

sue and be sued on behalf of the district. (Acts 71st Leg., R.S.,

Ch. 45, Sec. 5.15.)

[Sections 1068.117-1068.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1068.151.BUDGET. (a) The district administrator

shall prepare a proposed annual budget for the district.

(b) The proposed budget must contain a complete financial

statement, including a statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash on hand in each district fund;

(3) the amount of money received by the district from

all sources during the previous year;

(4) the amount of money available to the district from

all sources during the ensuing year;

(5) the amount of the balances expected at the end of

the year in which the budget is being prepared;

(6) the estimated amount of revenue and balances

available to cover the proposed budget; and

(7) the estimated tax rate required. (Acts 71st Leg.,

R.S., Ch. 45, Sec. 6.04.)

Sec.1068.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)

The board shall hold a public hearing on the proposed annual budget.

(b) The board shall publish notice of the hearing in a

newspaper with general circulation in the district not later than

the 10th day before the date of the hearing.

participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the

taxpayers.

(e) The budget is effective only after adoption by the

board. (Acts 71st Leg., R.S., Ch. 45, Sec. 6.05.)

Sec.1068.153.AMENDMENTS TO BUDGET. After adoption, the

annual budget may be amended on the board's approval. (Acts 71st

Leg., R.S., Ch. 45, Sec. 6.06.)

Sec.1068.154.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 71st Leg., R.S., Ch. 45, Sec. 6.07.)

Sec.1068.155.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) when revenue bonds of the district are

outstanding; or

(2) more than once in a 24-month period. (Acts 71st

Leg., R.S., Ch. 45, Sec. 6.01.)

Sec.1068.156.ANNUAL AUDIT. The board annually shall have

an audit made of the district's financial condition. (Acts 71st

Leg., R.S., Ch. 45, Sec. 6.02.)

Sec. 1068.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS. The annual audit and other district records are open to

inspection during regular business hours at the district's

principal office. (Acts 71st Leg., R.S., Ch. 45, Sec. 6.03.)

Sec.1068.158.FINANCIAL REPORT. As soon as practicable

after the close of the fiscal year, the district administrator

shall prepare for the board:

(1) a sworn statement of the amount of district money;

and

(2) an account of the disbursements of that money.

(Acts 71st Leg., R.S., Ch. 45, Sec. 6.08.)

Sec.1068.159.DEPOSITORY. (a) The board shall select at

least one bank to serve as a depository for district money.

(b) District money, other than money invested as provided by

Section 1068.160(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 must remain on

deposit. This subsection does not limit the power of the board to

place a part of district money on time deposit or to purchase

certificates of deposit.

amount that exceeds the maximum amount secured by the Federal

Deposit Insurance Corporation unless the bank first executes a bond

or other security in an amount sufficient to secure from loss the

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation. (Acts 71st Leg., R.S., Ch. 45, Sec.

6.10.)

Sec.1068.160.SPENDING AND INVESTMENT RESTRICTIONS.

(a) Except as provided by Sections 1068.111, 1068.201, 1068.204,

and 1068.205, the district may not incur a debt payable from

district revenue other than the revenue on hand or to be on hand in

the current and immediately following district fiscal years.

(b) The board may invest operating, depreciation, or

building reserves only in funds or securities specified by Chapter

2256, Government Code. (Acts 71st Leg., R.S., Ch. 45, Sec. 6.09.)

[Sections 1068.161-1068.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1068.201.GENERAL OBLIGATION BONDS. The board may

issue and sell general obligation bonds authorized by an election

in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate

buildings or improvements;

(2) equip buildings or improvements for hospital

purposes; or

(3) acquire and operate a mobile emergency medical

service. (Acts 71st Leg., R.S., Ch. 45, Sec. 7.01.)

Sec.1068.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1068.201, 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

limit approved by the voters at the election authorizing the

imposition of the tax. (Acts 71st Leg., R.S., Ch. 45, Sec. 7.02.)

Sec.1068.203.GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the district voters voting at an

election held for that purpose.

(b) The board may order a bond election.

(1) the nature and date of the election;

(2) the hours during which the polls will be open;

(3) the location of the polling places;

(4) the amount of the bonds to be authorized; and

(5) the maximum maturity of the bonds.

(d) Notice of a bond election shall be given as provided by

Section 1251.003, Government Code.

(e) The board shall declare the results of the election.

(Acts 71st Leg., R.S., Ch. 45, Sec. 7.03.)

Sec.1068.204.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital purposes;

(2) acquire sites to be used for hospital purposes; or

(3) acquire and operate a mobile emergency medical

service to assist the district in carrying out its hospital

purposes.

(b) The bonds must be payable from and secured by a pledge of

all or part of the revenue derived from the operation of the

district's hospital system.

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, and 264.046-264.049, Health and Safety

Code, for issuance of revenue bonds by a county hospital authority.

(Acts 71st Leg., R.S., Ch. 45, Sec. 7.04.)

Sec.1068.205.REFUNDING BONDS. (a) The board may issue

refunding bonds to refund outstanding indebtedness issued or

assumed by the district.

(b) Refunding bonds may be:

(1) sold, with the proceeds of the refunding bonds

applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a

similar principal amount of outstanding indebtedness. (Acts 71st

Leg., R.S., Ch. 45, Secs. 7.05(a), (c) (part).)

Sec.1068.206.MATURITY OF BONDS. District bonds must

mature not later than 50 years after the date of issuance. (Acts

71st Leg., R.S., Ch. 45, Sec. 7.06 (part).)

Sec.1068.207.EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 71st Leg.,

R.S., Ch. 45, Sec. 7.07.)

Sec.1068.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) any transaction relating to the bonds; and

(3) profits made in the sale of the bonds. (Acts 71st

Leg., R.S., Ch. 45, Sec. 7.11 (part).)

[Sections 1068.209-1068.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1068.251.IMPOSITION OF AD VALOREM TAX. (a) The board

may impose a tax on all property in the district subject to district

taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district;

and

(2) the maintenance and operating expenses of the

district.

or interest on revenue bonds issued under this chapter. (Acts 71st

Leg., R.S., Ch. 45, Secs. 8.02(a) (part), (c), (d), 8.03(b).)

Sec.1068.252.TAX RATE. (a) The board may impose the tax

at a rate not to exceed the limit approved by the voters at the

election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on

each $100 valuation of all taxable property in the district.

income of the district from sources other than taxation. (Acts 71st

Leg., R.S., Ch. 45, Secs. 8.02(a) (part), (b), 8.04 (part).)

Sec.1068.253.ELECTION TO INCREASE MAXIMUM TAX RATE. (a)

The board may order an election to increase the district's maximum

ad valorem tax rate.

(b) 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.

publishing once a week for two consecutive weeks a substantial copy

of the election order in a newspaper with general circulation in the

district. The first publication must appear at least 35 days before

the date set for the election.

(d) The ballot for the election must be printed to permit

voting for or against the proposition: "The levy of annual taxes by

the board of directors of the Muleshoe Area Hospital District for

hospital purposes at a rate not to exceed ____ cents on each $100

valuation of all taxable property in the district subject to

hospital district taxation."

(e) If the board finds that the election results favor the

proposition, the board may impose taxes as authorized by the

proposition. If the board finds that the election results do not

favor the proposition, another election on raising the district's

maximum tax rate may not be held before the first anniversary of the

date of the most recent election at which voters disapproved the

proposition.

(f) Section 41.001(a), Election Code, does not apply to an

election ordered under this section. (Acts 71st Leg., R.S., Ch. 45,

Secs. 3.03, 3.04, 8.01(a) (part), (b), (c) (part), (d).)

Sec.1068.254.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 71st Leg., R.S., Ch. 45, Sec.

8.05(b).)

CHAPTER 1070. HANSFORD COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1070.001. DEFINITIONS

Sec. 1070.002. AUTHORITY FOR OPERATION

Sec. 1070.003. ESSENTIAL PUBLIC FUNCTION

Sec. 1070.004. DISTRICT TERRITORY

Sec. 1070.005. CORRECTION OF INVALID PROCEDURES

Sec. 1070.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

Sec. 1070.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1070.008-1070.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1070.051. BOARD; TERM

Sec. 1070.052. PETITION TO CHANGE METHOD FOR SELECTING

DIRECTORS; ELECTION

Sec. 1070.053. DIRECTORS' ELECTION

Sec. 1070.054. QUALIFICATIONS FOR OFFICE

Sec. 1070.055. BOARD VACANCY

Sec. 1070.056. OFFICERS

Sec. 1070.057. COMPENSATION; EXPENSES

Sec. 1070.058. VOTING REQUIREMENT

Sec. 1070.059. ADMINISTRATORS; ASSISTANT

ADMINISTRATORS

Sec. 1070.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1070.061. EMPLOYEES; APPOINTMENT OF STAFF

Sec. 1070.062. RECRUITMENT OF STAFF AND EMPLOYEES

Sec. 1070.063. HEALTH CARE AND PROFESSIONAL

EDUCATIONAL PROGRAMS

Sec. 1070.064. DAY-CARE SERVICES

Sec. 1070.065. SENIORITY; RETIREMENT BENEFITS

Sec. 1070.066. LIABILITY INSURANCE; INDEMNIFICATION

[Sections 1070.067-1070.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1070.101. DISTRICT RESPONSIBILITY

Sec. 1070.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT

Sec. 1070.103. MANAGEMENT, CONTROL, AND ADMINISTRATION

Sec. 1070.104. HOSPITAL SYSTEM; ANCILLARY HEALTH CARE

SERVICES SYSTEM

Sec. 1070.105. RULES

Sec. 1070.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1070.107. MOBILE EMERGENCY MEDICAL SERVICE

Sec. 1070.108. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1070.109. EMINENT DOMAIN

Sec. 1070.110. GIFTS AND ENDOWMENTS

Sec. 1070.111. CONSTRUCTION CONTRACTS

Sec. 1070.112. OPERATING AND MANAGEMENT CONTRACTS

Sec. 1070.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR TREATMENT

Sec. 1070.114. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1070.115. PROVISION OF SERVICES OUTSIDE DISTRICT

Sec. 1070.116. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1070.117. AUTHORITY TO SUE AND BE SUED

[Sections 1070.118-1070.150 reserved for expansion]

SUBCHAPTER D. CHANGE IN BOUNDARIES

Sec. 1070.151. TERRITORY THAT MAY BE ANNEXED

Sec. 1070.152. PETITION TO ANNEX TERRITORY

Sec. 1070.153. ELECTION ORDER

Sec. 1070.154. BALLOT

Sec. 1070.155. NOTICE OF ELECTION

Sec. 1070.156. ELECTION RESULTS

Sec. 1070.157. EFFECT OF ANNEXATION

[Sections 1070.158-1070.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 1070.201. BUDGET

Sec. 1070.202. NOTICE; HEARING; ADOPTION OF BUDGET

Sec. 1070.203. AMENDMENTS TO BUDGET

Sec. 1070.204. RESTRICTION ON EXPENDITURES

Sec. 1070.205. FISCAL YEAR

Sec. 1070.206. AUDIT

Sec. 1070.207. INSPECTION OF AUDIT AND DISTRICT

RECORDS

Sec. 1070.208. FINANCIAL REPORT

Sec. 1070.209. DEPOSITORY

Sec. 1070.210. SPENDING AND INVESTMENT RESTRICTIONS

Sec. 1070.211. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1070.212-1070.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec. 1070.251. OBLIGATIONS AND CREDIT AGREEMENTS

Sec. 1070.252. GENERAL OBLIGATION BONDS

Sec. 1070.253. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1070.254. GENERAL OBLIGATION BOND ELECTION

Sec. 1070.255. REVENUE BONDS

Sec. 1070.256. REFUNDING BONDS

Sec. 1070.257. MATURITY OF BONDS

Sec. 1070.258. EXECUTION OF BONDS

Sec. 1070.259. BONDS EXEMPT FROM TAXATION

[Sections 1070.260-1070.300 reserved for expansion]

SUBCHAPTER G. TAXES

Sec. 1070.301. IMPOSITION OF AD VALOREM TAX

Sec. 1070.302. TAX RATE

Sec. 1070.303. ELECTION TO INCREASE MAXIMUM TAX RATE

Sec. 1070.304. TAX ASSESSOR-COLLECTOR

CHAPTER 1070. HANSFORD COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1070.001.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 Hansford County Hospital

District. (New.)

Sec.1070.002.AUTHORITY FOR OPERATION. The district

operates in accordance with Section 9, Article IX, Texas

Constitution, and has the rights, powers, and duties provided by

this chapter. (Acts 62nd Leg., R.S., Ch. 872, Sec. 1 (part).)

Sec.1070.003.ESSENTIAL PUBLIC FUNCTION. The district

performs an essential public function in carrying out the purposes

of this chapter. (Acts 62nd Leg., R.S., Ch. 872, Sec. 21 (part).)

Sec.1070.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Hansford County,

Texas, unless the boundaries are expanded under Subchapter D.

(Acts 62nd Leg., R.S., Ch. 872, Secs. 1 (part), 1A(a) (part).)

Sec.1070.005.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 62nd Leg., R.S., Ch. 872, Sec. 23 (part).)

Sec. 1070.006. 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 62nd

Leg., R.S., Ch. 872, Sec. 20 (part).)

Sec.1070.007.RESTRICTION ON STATE FINANCIAL ASSISTANCE.

The legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

(Acts 62nd Leg., R.S., Ch. 872, Sec. 20 (part).)

[Sections 1070.008-1070.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1070.051.BOARD; TERM. (a) The board consists of six

directors appointed by the Commissioners Court of Hansford County

unless the method for selecting directors is changed under Section

1070.052.

(b) Directors serve staggered two-year terms. (Acts 62nd

Leg., R.S., Ch. 872, Secs. 4(a) (part), (b) (part).)

Sec. 1070.052. PETITION TO CHANGE METHOD FOR SELECTING

DIRECTORS; ELECTION. (a) The Commissioners Court of Hansford

County shall order an election on the question of electing

directors if the court receives a petition requesting that action

signed by at least 250 registered district voters who own taxable

property in the district as of the date the petition is presented to

the court. The election shall be held within 90 days of the date the

petition is presented and notice of the election is given as

provided by Section 1251.003, Government Code.

(b) The order calling the election must:

(1) specify the date of the election, the location of

the polling places, and the presiding judge and alternate judge for

each voting place; and

(2) provide for clerks as in a county election.

against the proposition: "Providing the office of director of the

Hansford County Hospital District shall hereafter be an elective

office."

(d) If a majority of the district voters voting in the

election favor the proposition:

(1) directors in office at the time of the election

shall serve the terms for which the directors were appointed; and

(2) successor directors shall be elected as provided

by Section 1070.053.

(e) Another election on the question of electing directors

may not be held before the third anniversary of the date of the most

recent election on electing directors. (Acts 62nd Leg., R.S., Ch.

872, Sec. 4(b) (part).)

Sec.1070.053.DIRECTORS' ELECTION. (a) If a majority of

the votes in an election under Section 1070.052 favor electing the

directors, an election shall be held on the uniform election date in

May of each year.

(b) The order calling a directors' election must specify the

time, place, and purpose of the election.

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 50 registered voters; and

(2) filed at least 25 days before the date of the

election.

(d) At least five days before the date of an election of

directors, notice of the election shall be published one time in a

newspaper of general circulation in the district.

(e) Unless four-year terms are established under Section

285.081, Health and Safety Code, elected directors serve staggered

two-year terms. (Acts 62nd Leg., R.S., Ch. 872, Sec. 4(b) (part).)

Sec.1070.054.QUALIFICATIONS FOR OFFICE. (a) A person may

not serve as a director unless the person is:

(1) a district resident; and

(2) a qualified voter.

(b) A person is not eligible to serve as a director if the

person is:

(1) the district administrator; or

(2) a district employee. (Acts 62nd Leg., R.S., Ch.

872, Sec. 4(c) (part).)

Sec.1070.055.BOARD VACANCY. (a) If a vacancy occurs in

the office of an appointed director, the commissioners court shall

appoint a director for the unexpired term.

(b) If a vacancy occurs in the office of an elected

director, the remaining directors by majority vote shall appoint a

director for the unexpired term. (Acts 62nd Leg., R.S., Ch. 872,

Secs. 4(a) (part), (b) (part).)

Sec.1070.056.OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its

members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

unexpired term. (Acts 62nd Leg., R.S., Ch. 872, Sec. 4(d) (part).)

Sec.1070.057.COMPENSATION; EXPENSES. A director or

officer serves without compensation but may be reimbursed for

actual expenses incurred in the performance of official duties.

The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 62nd Leg., R.S., Ch.

872, Sec. 4(d) (part).)

Sec.1070.058.VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business. (Acts 62nd Leg., R.S., Ch. 872, Sec. 4(d) (part).)

Sec.1070.059.ADMINISTRATORS; ASSISTANT ADMINISTRATORS.

(a) The board shall appoint qualified persons as administrators of

the district or the ancillary health care facilities.

(b) The board may appoint assistant administrators.

serve at the will of the board and are entitled to 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 other conditions the board may require.

(Acts 62nd Leg., R.S., Ch. 872, Sec. 5(a) (part).)

Sec.1070.060.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;

(2) direct the affairs of the district; and

(3) have overall management responsibility for

ancillary health care facilities. (Acts 62nd Leg., R.S., Ch. 872,

Sec. 5(a) (part).)

Sec.1070.061.EMPLOYEES; APPOINTMENT OF STAFF. (a) The

board may appoint to the staff any doctors and allied health

personnel the board considers necessary for the efficient operation

of the district and may make temporary appointments as necessary.

(b) The district may employ fiscal agents, accountants,

architects, and attorneys the board considers proper.

authority to hire district employees, including technicians and

nurses. (Acts 62nd Leg., R.S., Ch. 872, Secs. 5(a) (part), 16.)

Sec.1070.062.RECRUITMENT OF STAFF AND EMPLOYEES. The

board may spend district money, enter into agreements, and take

other necessary action to recruit physicians, ancillary and allied

health professionals, and other persons to serve on the district's

medical staff or to be employed by the district, including:

(1) advertising and marketing;

(2) paying travel, recruitment, and relocation

expenses;

(3) providing a loan or scholarship to a physician or

other person who:

(A) is enrolled in health care education courses

at an institution of higher education; and

(B) contractually agrees to become a district

employee or medical staff member; and

(4) providing on a rent-free basis or subsidizing the

cost of office space or other facilities for a health care

professional, including a physician. (Acts 62nd Leg., R.S., Ch.

872, Sec. 10A(a).)

Sec. 1070.063. HEALTH CARE AND PROFESSIONAL EDUCATIONAL

PROGRAMS. The board may spend district money, enter into

agreements, and take other necessary action to conduct, participate

in, or otherwise assist in providing health care and professional

educational, development, or retraining programs for current or

prospective medical staff members or district employees. (Acts

62nd Leg., R.S., Ch. 872, Sec. 10A(b).)

Sec.1070.064.DAY-CARE SERVICES. (a) The board may take

any action to provide day-care services for the district's medical

staff members, allied health professionals, officers, directors,

and employees, including:

(1) spending district money;

(2) entering into agreements; and

(3) acquiring by lease, purchase, or lease to purchase

facilities, supplies, and equipment.

(b) The district may provide day-care services to district

residents as space permits. (Acts 62nd Leg., R.S., Ch. 872, Sec.

10A(c).)

Sec.1070.065.SENIORITY; RETIREMENT BENEFITS. The board

may:

(1) adopt rules related 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 a

district employee continuously employed in the operation or

management of hospital or ancillary health care facilities:

(A) constructed by the district; or

(B) acquired by the district, including

facilities acquired when the district was created. (Acts 62nd

Leg., R.S., Ch. 872, Sec. 5(a) (part).)

Sec.1070.066.LIABILITY INSURANCE; INDEMNIFICATION. (a)

The board may defend or indemnify an officer, director, board

appointee, medical staff member, or district employee against or

from a claim, expense, or liability arising from duties performed

in that capacity, including a duty performed at a district

facility.

(b) The board may purchase and maintain liability insurance

coverage or establish a self-insurance program to fund an indemnity

obligation under this section. (Acts 62nd Leg., R.S., Ch. 872,

Sec. 5(b).)

[Sections 1070.067-1070.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1070.101.DISTRICT RESPONSIBILITY. (a) The district

has full responsibility for providing hospital services for the

district's indigent residents.

(b) The district may assume full responsibility for

providing ancillary health care services for the district's

indigent residents. (Acts 62nd Leg., R.S., Ch. 872, Sec. 19

(part).)

Sec. 1070.102. 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 62nd Leg.,

R.S., Ch. 872, Sec. 19 (part).)

Sec.1070.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.

The board shall manage, control, and administer the hospital system

and the district's money and resources. (Acts 62nd Leg., R.S., Ch.

872, Sec. 5(a) (part).)

Sec. 1070.104. HOSPITAL SYSTEM; ANCILLARY HEALTH CARE

SERVICES SYSTEM. (a) The district shall provide for the

establishment of a hospital system by:

(1) purchasing, constructing, acquiring, repairing,

or renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the buildings and equipment for

hospital purposes.

(b) The hospital and ancillary health care services systems

may include:

(1) facilities and equipment to provide domiciliary

care and treatment of the sick or injured;

(2) outpatient clinics;

(3) dispensaries;

(4) geriatric domiciliary care;

(5) convalescent home facilities;

(6) physicians' offices;

(7) home health services;

(8) durable medical equipment;

(9) long-term care;

(10) skilled nursing care;

(11) intermediate nursing care;

(12) hospice care;

(13) ambulatory surgery centers;

(14) urgent care facilities;

(15) rural health clinics;

(16) operation of a mobile emergency medical service;

(17) necessary nurses' domiciliaries and training

centers;

(18) blood banks;

(19) research centers or laboratories; and

(20) any other facilities or equipment the board

considers necessary to provide hospital and ancillary health care

services. (Acts 62nd Leg., R.S., Ch. 872, Secs. 2 (part), 9

(part).)

Sec.1070.105.RULES. The board may adopt rules governing:

(1) the operation of the hospital, ancillary health

care facilities, hospital system, and ancillary health care system;

and

(2) the duties, functions, and responsibilities of

district staff, employees, contractors, or agents. (Acts 62nd

Leg., R.S., Ch. 872, Sec. 5(a) (part).)

Sec.1070.106.PURCHASING AND ACCOUNTING PROCEDURES. The

board may prescribe:

(1) the method and manner of making purchases and

expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 62nd

Leg., R.S., Ch. 872, Sec. 10 (part).)

Sec.1070.107.MOBILE EMERGENCY MEDICAL SERVICE. The

district may operate or provide for the operation of a mobile

emergency medical service. (Acts 62nd Leg., R.S., Ch. 872, Sec. 19

(part).)

Sec. 1070.108. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine the type, number, and

location, either inside or outside the district, of buildings

required to maintain an adequate hospital system and ancillary

health care services system.

(b) The board may lease all or part of the district's

buildings, facilities, or equipment on terms considered to be in

the best interest of the district's inhabitants. The term of the

lease may not exceed 25 years.

to purchase, equipment for use in the district's hospital system

and mortgage or pledge the property as security for the payment of

the purchase or lease price. A contract entered into under this

subsection must provide that the entire obligation be retired not

later than the fifth anniversary of the date of the contract.

(d) The district may sell, lease, or otherwise dispose of

any property, including equipment, on terms the board finds are in

the best interest of the district's inhabitants. The board may not

sell or otherwise dispose of any real property unless the board

affirmatively finds that the sale, lease, or disposition is in the

best interest of the district's inhabitants. (Acts 62nd Leg.,

R.S., Ch. 872, Secs. 9 (part), 10 (part).)

Sec.1070.109.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 for the district to exercise

a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, except the

district is not required to deposit in the trial court money or a

bond as provided by Section 21.021, Property Code.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 62nd Leg., R.S., Ch. 872, Sec.

14.)

Sec.1070.110.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 62nd Leg., R.S., Ch. 872,

Sec. 18.)

Sec.1070.111.CONSTRUCTION CONTRACTS. A construction

contract that involves the expenditure of more than $10,000 may be

made only after advertising in the manner provided by Chapter 252,

Local Government Code, Subchapter B, Chapter 271, Local Government

Code, or Section 286.078, Health and Safety Code. (Acts 62nd Leg.,

R.S., Ch. 872, Sec. 10 (part).)

Sec.1070.112.OPERATING AND MANAGEMENT CONTRACTS. The

board may enter into an operating or management contract with a

public or private entity relating to the district's facilities,

equipment, or services. (Acts 62nd Leg., R.S., Ch. 872, Sec. 9

(part).)

Sec. 1070.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

TREATMENT. The board may contract with this state, another state, a

political subdivision of this or another state, or a federal agency

for the treatment of a sick or injured person. (Acts 62nd Leg.,

R.S., Ch. 872, Sec. 5(a) (part).)

Sec. 1070.114. 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 for the hospital, ancillary

health care, or welfare needs of district inhabitants. (Acts 62nd

Leg., R.S., Ch. 872, Sec. 5(a) (part).)

Sec.1070.115.PROVISION OF SERVICES OUTSIDE DISTRICT. The

board may provide health care services outside the district for the

care and treatment of the sick or injured persons of any

jurisdiction. (Acts 62nd Leg., R.S., Ch. 872, Sec. 5(a) (part).)

Sec.1070.116.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient 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 who are 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 costs of

the care and treatment provided to the patient by the district and

that payment is not available from any other source, the amount of

the costs that cannot be paid becomes a charge against the district.

patient or those relatives can pay for all or part of the costs of

the patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district administrator may collect the amount from

the patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the district administrator, the board shall hold a

hearing and, after calling witnesses, shall:

(1) determine the patient's ability to pay; and

(2) issue any appropriate orders.

(f) The final order may be appealed to the district court.

The substantial evidence rule applies to the appeal. (Acts 62nd

Leg., R.S., Ch. 872, Sec. 17.)

Sec.1070.117.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 62nd Leg., R.S., Ch. 872, Sec. 5(a)

(part).)

[Sections 1070.118-1070.150 reserved for expansion]

SUBCHAPTER D. CHANGE IN BOUNDARIES

Sec.1070.151.TERRITORY THAT MAY BE ANNEXED. (a) The

district may annex territory that is not located in:

(1) Hansford County;

(2) the boundaries of another hospital district; or

(3) the proposed boundaries of another hospital

district authorized by the legislature under Section 9, Article IX,

Texas Constitution.

(b) Territory may be annexed in one or more tracts. Each

tract must be contiguous to:

(1) the district; or

(2) territory proposed to be annexed to the district.

(Acts 62nd Leg., R.S., Ch. 872, Sec. 1A(a).)

Sec.1070.152.PETITION TO ANNEX TERRITORY. (a) A petition

requesting that territory be annexed to the district may be

presented to the board. The petition must:

(1) describe the tract or tracts of land to be annexed;

and

(2) be signed by 100 or a majority of the registered

voters who:

(A) reside in the territory to be annexed; and

(B) own property that will be subject to district

taxation if the territory is annexed.

(b) This chapter does not prohibit simultaneous action on

several petitions for annexation. Each ballot proposition must be

submitted for each different territory proposed to be annexed, and

an election held in each territory represented by a petition.

annexation that include all or part of the same territory to be

annexed to the district, the petition filed first with the board

shall be considered and another petition that includes any of the

same territory has no effect.

(d) The board may consider all petitions for annexation

presented to it and may approve or reject each petition. The board

may not partly approve or partly reject any petition. (Acts 62nd

Leg., R.S., Ch. 872, Secs. 1A(b) (part), (f).)

Sec.1070.153.ELECTION ORDER. (a) If, on receipt of a

petition, the board finds that annexing the territory is in the

district's best interest, the board shall within 90 days of the

board's finding:

(1) approve the annexation of the territory described

in the petition; and

(2) order an election on the question of annexing the

territory to the district.

(b) The election order shall provide for a separate

election:

(1) in the territory proposed to be annexed; and

(2) in the district.

elections and must specify:

(1) the date of the election;

(2) the location of the polling places;

(3) the form of ballot; and

(4) the presiding judge and alternate judge for each

polling place.

(d) The election order may provide that:

(1) the entire district is one election precinct; or

(2) the county election precincts be combined for the

election. (Acts 62nd Leg., R.S., Ch. 872, Secs. 1A(b) (part), (d)

(part), 3(a) (part).)

Sec.1070.154.BALLOT. The ballot for the election shall be

printed to permit voting for or against the proposition: "The

establishment of the Hansford County Hospital District with

extended boundaries and establishment of a hospital district tax at

a rate not to exceed 50 cents on the $100 valuation on all taxable

property in the extended boundaries of the hospital district that

is subject to hospital district taxation for hospital purposes."

(Acts 62nd Leg., R.S., Ch. 872, Sec. 1A(b) (part).)

Sec.1070.155.NOTICE OF ELECTION. (a) Notice of the

election shall be given by publishing once a week for two

consecutive weeks a substantial copy of the election order in a

newspaper or newspapers that individually or collectively have

general circulation in the county or district.

(b) The first publication must appear at least 30 days

before the date of the election. (Acts 62nd Leg., R.S., Ch. 872,

Secs. 1A(d) (part), 3(a) (part).)

Sec.1070.156.ELECTION RESULTS. (a) Territory may not be

annexed to the district unless:

(1) an election is held in accordance with this

subchapter; and

(2) the annexation is approved by a majority of the

voters voting in the election in:

(A) the district; and

(B) the territory proposed to be annexed.

(b) If the territory is annexed to the district, a certified

copy of the order canvassing the returns of the election shall be

filed and recorded in the deed records of each county in which the

district is located following the annexation election.

within six months of an election previously held under this

subchapter. (Acts 62nd Leg., R.S., Ch. 872, Secs. 1A(c), (d)

(part), (e), 3(a) (part).)

Sec.1070.157.EFFECT OF ANNEXATION. (a) Territory

annexed to the district is part of the district for all purposes.

(b) The annexation of territory to the district does not

change the manner in which the board or district officers are

selected. (Acts 62nd Leg., R.S., Ch. 872, Sec. 1A(g).)

[Sections 1070.158-1070.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec.1070.201.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 in 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 62nd Leg., R.S., Ch. 872, Sec. 6 (part).)

Sec.1070.202.NOTICE; HEARING; ADOPTION 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 have general

circulation in the district.

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 adopt

a budget by acting on the budget proposed by the district

administrator. The board may make any changes in the proposed

budget that the board judges to be in the interests of the taxpayers

and that the law warrants. (Acts 62nd Leg., R.S., Ch. 872, Sec. 6

(part).)

Sec.1070.203.AMENDMENTS TO BUDGET. The annual budget may

be amended as required by circumstances. The board must approve all

amendments. (Acts 62nd Leg., R.S., Ch. 872, Sec. 6 (part).)

Sec.1070.204.RESTRICTION ON EXPENDITURES. Money may be

spent only for an expense included in the budget or an amendment to

the budget. (Acts 62nd Leg., R.S., Ch. 872, Sec. 6 (part).)

Sec.1070.205.FISCAL YEAR. (a) The district operates on a

fiscal year established by the board.

(b) The fiscal year may not be changed more than once in a

24-month period. (Acts 62nd Leg., R.S., Ch. 872, Sec. 6 (part).)

Sec.1070.206.AUDIT. (a) The board 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 62nd Leg., R.S., Ch. 872,

Sec. 6 (part).)

Sec.1070.207.INSPECTION OF AUDIT AND DISTRICT RECORDS.

The audit and other district records shall be open to inspection at

the district's principal office. (Acts 62nd Leg., R.S., Ch. 872,

Sec. 6 (part).)

Sec.1070.208.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 62nd Leg., R.S., Ch. 872, Sec. 6 (part).)

Sec.1070.209.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 1070.210(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.

the power of the board to:

(1) place a part of district money on time deposit;

(2) purchase certificates of deposit; or

(3) make other investments authorized by Chapter 2256,

Government Code. (Acts 62nd Leg., R.S., Ch. 872, Sec. 11.)

Sec.1070.210.SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as otherwise provided by Sections 1070.062, 1070.063,

1070.064, 1070.108(c), and 1070.211 and by Subchapter F, 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 money only in funds or securities specified by Chapter

2256, Government Code. (Acts 62nd Leg., R.S., Ch. 872, Secs. 5(a)

(part), 10 (part).)

Sec.1070.211.AUTHORITY TO BORROW MONEY; SECURITY. (a)

The district may borrow money for district operating expenses in an

amount not to exceed the amount of tax or other revenue the district

expects to receive during the fiscal year in which the money is

borrowed.

(b) To repay the debt, the board may pledge all or part of

the tax or other revenue received during the fiscal year in which

the board borrows money under this section. (Acts 62nd Leg., R.S.,

Ch. 872, Sec. 15(d).)

[Sections 1070.212-1070.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec.1070.251.OBLIGATIONS AND CREDIT AGREEMENTS. The

district may issue, sell, and deliver obligations and execute

corresponding credit agreements in the manner provided by Chapters

1201 and 1371, Government Code. (Acts 62nd Leg., R.S., Ch. 872,

Sec. 8A.)

Sec.1070.252.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 or improvements; and

(2) equipping buildings or improvements for hospital

and ancillary health care purposes. (Acts 62nd Leg., R.S., Ch. 872,

Sec. 7 (part).)

Sec.1070.253.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued under Section

1070.252, 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 62nd Leg., R.S., Ch. 872, Sec. 7

(part).)

Sec.1070.254.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 election shall 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.

Section 1251.003, Government Code. (Acts 62nd Leg., R.S., Ch. 872,

Sec. 7 (part).)

Sec.1070.255.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital or ancillary health

care purposes; or

(2) acquire sites to be used for hospital or ancillary

health care 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 hospitals or ancillary health care facilities.

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, and 264.046-264.049, Health and Safety Code, for

issuance of revenue bonds by a county hospital authority. (Acts

62nd Leg., R.S., Ch. 872, Sec. 8(b) (part).)

Sec.1070.256.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 62nd

Leg., R.S., Ch. 872, Secs. 8(a) (part), (b) (part).)

Sec.1070.257.MATURITY OF BONDS. District bonds must

mature not later than 40 years after the date of issuance. (Acts

62nd Leg., R.S., Ch. 872, Sec. 8(c) (part).)

Sec.1070.258.EXECUTION OF BONDS. (a) The board president

shall execute district bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code. (Acts 62nd Leg.,

R.S., Ch. 872, Sec. 8(c) (part).)

Sec.1070.259.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) profits made in the sale of the bonds. (Acts 62nd

Leg., R.S., Ch. 872, Sec. 21 (part).)

[Sections 1070.260-1070.300 reserved for expansion]

SUBCHAPTER G. TAXES

Sec.1070.301.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 and other obligations issued or assumed by the district for

hospital purposes;

(2) provide for the operation and maintenance of the

district and hospital system;

(3) make improvements and additions to the hospital

system; and

(4) acquire necessary sites for the hospital system by

purchase, lease, or condemnation. (Acts 62nd Leg., R.S., Ch. 872,

Secs. 12 (part), 15(a) (part).)

Sec.1070.302.TAX RATE. (a) The board may impose the tax

at a rate not to exceed 50 cents on each $100 valuation of taxable

property in the district unless the maximum tax rate is increased as

provided by Section 1070.303.

(b) In setting the tax rate, the board shall consider the

income of the district from sources other than taxation. (Acts 62nd

Leg., R.S., Ch. 872, Secs. 3(b) (part), 12 (part).)

Sec.1070.303.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

taxable property in the district.

(b) The maximum tax rate may not be increased unless the

increase is approved by a majority of the district voters voting in

an election held for that purpose.

notice must be given in the manner provided for a bond election

under Subchapter F.

(d) The election order must specify:

(1) the ballot proposition;

(2) the proposed maximum tax rate;

(3) the time of the election;

(4) the location of the polling places; and

(5) the presiding judge for each polling place. (Acts

62nd Leg., R.S., Ch. 872, Sec. 3(d).)

Sec.1070.304.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 62nd Leg., R.S., Ch. 872, Sec.

15(c).)

CHAPTER 1071. OCHILTREE COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1071.001. DEFINITIONS

Sec. 1071.002. AUTHORITY FOR OPERATION

Sec. 1071.003. ESSENTIAL PUBLIC FUNCTION; POLITICAL

SUBDIVISION

Sec. 1071.004. DISTRICT TERRITORY

Sec. 1071.005. CORRECTION OF INVALID PROCEDURES

[Sections 1071.006-1071.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1071.051. BOARD ELECTION; TERM

Sec. 1071.052. NOTICE OF ELECTION

Sec. 1071.053. BALLOT PETITION

Sec. 1071.054. QUALIFICATIONS FOR OFFICE

Sec. 1071.055. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE

Sec. 1071.056. BOARD VACANCY

Sec. 1071.057. OFFICERS

Sec. 1071.058. COMPENSATION; EXPENSES

Sec. 1071.059. VOTING REQUIREMENT

Sec. 1071.060. DISTRICT ADMINISTRATOR

Sec. 1071.061. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR

Sec. 1071.062. EMPLOYEES

Sec. 1071.063. RECRUITMENT OF MEDICAL STAFF AND

EMPLOYEES

Sec. 1071.064. APPOINTMENT AND REMOVAL OF MEDICAL

STAFF

Sec. 1071.065. HEALTH CARE EDUCATIONAL PROGRAMS

Sec. 1071.066. RETIREMENT BENEFITS

Sec. 1071.067. LIABILITY INSURANCE; INDEMNIFICATION

Sec. 1071.068. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

Sec. 1071.069. SEAL

[Sections 1071.070-1071.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1071.101. DISTRICT RESPONSIBILITY

Sec. 1071.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION

Sec. 1071.103. MANAGEMENT AND CONTROL

Sec. 1071.104. HOSPITAL SYSTEM

Sec. 1071.105. RULES

Sec. 1071.106. PURCHASING AND ACCOUNTING PROCEDURES

Sec. 1071.107. MOBILE EMERGENCY MEDICAL SERVICE

Sec. 1071.108. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT

Sec. 1071.109. EMINENT DOMAIN

Sec. 1071.110. GIFTS AND ENDOWMENTS

Sec. 1071.111. CONTRACTS FOR CARE AND TREATMENT

Sec. 1071.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES

Sec. 1071.113. PROVISION OF SERVICES OUTSIDE DISTRICT

Sec. 1071.114. JOINT ADMINISTRATION OR DELIVERY OF

HEALTH CARE SERVICES

Sec. 1071.115. PAYMENT FOR TREATMENT; PROCEDURES

Sec. 1071.116. REIMBURSEMENT FOR SERVICES

Sec. 1071.117. NONPROFIT CORPORATION

Sec. 1071.118. AUTHORITY TO SUE AND BE SUED

[Sections 1071.119-1071.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1071.151. BUDGET

Sec. 1071.152. PROPOSED BUDGET: NOTICE AND HEARING

Sec. 1071.153. FISCAL YEAR

Sec. 1071.154. ANNUAL AUDIT

Sec. 1071.155. DEPOSITORY OR TREASURER

Sec. 1071.156. AUTHORITY TO BORROW MONEY

[Sections 1071.157-1071.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1071.201. GENERAL OBLIGATION BONDS

Sec. 1071.202. TAX TO PAY GENERAL OBLIGATION BONDS

Sec. 1071.203. GENERAL OBLIGATION BOND ELECTION

Sec. 1071.204. MATURITY OF GENERAL OBLIGATION BONDS

Sec. 1071.205. EXECUTION OF GENERAL OBLIGATION BONDS

Sec. 1071.206. REVENUE BONDS

Sec. 1071.207. REFUNDING BONDS

Sec. 1071.208. BONDS EXEMPT FROM TAXATION

[Sections 1071.209-1071.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1071.251. IMPOSITION OF AD VALOREM TAX

Sec. 1071.252. TAX RATE

Sec. 1071.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1071. OCHILTREE COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.1071.001.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 Ochiltree County Hospital

District. (New.)

Sec.1071.002.AUTHORITY FOR OPERATION. The district

operates under the authority of and has the powers and

responsibilities provided by Section 11, Article IX, Texas

Constitution. (Acts 57th Leg., R.S., Ch. 103, Sec. 1 (part).)

Sec. 1071.003. ESSENTIAL PUBLIC FUNCTION; POLITICAL

SUBDIVISION. The district is:

(1) a public entity performing an essential public

function; and

(2) a political subdivision of this state. (Acts 57th

Leg., R.S., Ch. 103, Secs. 6A(c) (part), 18 (part).)

Sec.1071.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Ochiltree County.

(Acts 57th Leg., R.S., Ch. 103, Sec. 1 (part).)

Sec.1071.005.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 57th Leg., R.S., Ch. 103, Sec. 19 (part).)

[Sections 1071.006-1071.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.1071.051.BOARD ELECTION; TERM. (a) The board

consists of five directors elected from the district at large.

(b) Unless four-year terms are established under Section

285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) an election shall be held on the uniform election

date in May of each year to elect the appropriate number of

directors. (Acts 57th Leg., R.S., Ch. 103, Secs. 3(a) (part), (e)

(part).)

Sec.1071.052.NOTICE OF ELECTION. Not earlier than the

30th day or later than the 10th day before the date of an election of

directors, notice of the election shall be published one time in a

newspaper of general circulation in Ochiltree County. (Acts 57th

Leg., R.S., Ch. 103, Sec. 3(e) (part).)

Sec.1071.053.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 25 registered voters; and

(2) filed not later than the 25th day before the date

of the election. (Acts 57th Leg., R.S., Ch. 103, Sec. 3(e) (part).)

Sec.1071.054.QUALIFICATIONS FOR OFFICE. (a) A person may

not be elected or appointed as a director unless the person is:

(1) a district resident; and

(2) more than 21 years of age.

(b) An employee or medical staff member of the district may

not serve as a director. (Acts 57th Leg., R.S., Ch. 103, Sec. 3(b)

(part).)

Sec. 1071.055. BOND; RECORD OF BOND AND OATH OR AFFIRMATION

OF OFFICE. (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) The district may pay for the directors' bonds with

district money.

affirmation of office shall be deposited with the district's

depository bank for safekeeping. (Acts 57th Leg., R.S., Ch. 103,

Sec. 3(c) (part).)

Sec.1071.056.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, a district court, on

application of a district voter or taxpayer, may order the

directors to hold the election. (Acts 57th Leg., R.S., Ch. 103,

Sec. 3(d) (part).)

Sec.1071.057.OFFICERS. The board shall elect from among

its members a president and a secretary. (Acts 57th Leg., R.S., Ch.

103, Sec. 3(d) (part).)

Sec.1071.058.COMPENSATION; EXPENSES. A director serves

without compensation but may be reimbursed for actual expenses

incurred in the performance of official duties on approval of the

expenses by the entire board. (Acts 57th Leg., R.S., Ch. 103, Sec.

4 (part).)

Sec.1071.059.VOTING REQUIREMENT. A concurrence of three

directors is sufficient in any matter relating to district

business. (Acts 57th Leg., R.S., Ch. 103, Sec. 3(d) (part).)

Sec.1071.060.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. (Acts

57th Leg., R.S., Ch. 103, Sec. 8(b) (part).)

Sec.1071.061.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 general affairs of the district. (Acts

57th Leg., R.S., Ch. 103, Sec. 8(b) (part).)

Sec.1071.062.EMPLOYEES. (a) The board may employ a

general manager, attorney, bookkeeper, and architect.

(b) The board may employ technicians, nurses, fiscal

agents, accountants, and other necessary employees.

authority to hire employees under Subsection (b). (Acts 57th Leg.,

R.S., Ch. 103, Secs. 8(a) (part), (c) (part).)

Sec.1071.063.RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES.

The board may spend district money, enter into agreements, and take

other necessary action to recruit physicians and other persons to

serve as medical staff members or district employees, including:

(1) advertising and marketing;

(2) paying travel, recruitment, and relocation

expenses;

(3) providing a loan or scholarship to a physician or a

person who:

(A) is currently enrolled in health care

education courses at an institution of higher education; and

(B) contractually agrees to become a district

employee or medical staff member; and

(4) providing on a rent-free basis or subsidizing the

cost of office space or other facilities for a health care

professional, including a physician. (Acts 57th Leg., R.S., Ch.

103, Secs. 8B(a), (k).)

Sec.1071.064.APPOINTMENT AND REMOVAL OF MEDICAL STAFF.

(a) The board may appoint to or remove from the medical staff any

doctors as necessary for the efficient operation of the district

and may make temporary appointments as necessary.

(b) The board may adopt policies relating to the appointment

and removal of medical staff members. (Acts 57th Leg., R.S., Ch.

103, Sec. 8(d) (part).)

Sec.1071.065.HEALTH CARE EDUCATIONAL PROGRAMS. The

board may spend district money, enter into agreements, or take

other necessary action to conduct, participate in, or assist in

providing health care educational programs for current or

prospective medical staff members or employees of the district.

(Acts 57th Leg., R.S., Ch. 103, Sec. 8B(l).)

Sec.1071.066.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 57th Leg., R.S., Ch.

103, Sec. 8B(m).)

Sec.1071.067.LIABILITY INSURANCE; INDEMNIFICATION. (a)

The board may defend or indemnify an officer, director, board

appointee, medical staff member, or district employee against or

from a claim, expense, or liability arising from duties performed

in that capacity.

(b) The board may purchase liability insurance coverage or

establish a self-insurance program to fund an indemnity obligation

under this section. (Acts 57th Leg., R.S., Ch. 103, Sec. 4 (part).)

Sec.1071.068.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.

Except as provided by Section 1071.055, 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 57th Leg., R.S., Ch. 103, Sec.

8(e).)

Sec.1071.069.SEAL. The board may adopt a seal for the

district. (Acts 57th Leg., R.S., Ch. 103, Sec. 8(a) (part).)

[Sections 1071.070-1071.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.1071.101.DISTRICT RESPONSIBILITY. The district has

full responsibility for providing medical and hospital care for the

district's needy and indigent residents. (Acts 57th Leg., R.S.,

Ch. 103, Sec. 13 (part).)

Sec. 1071.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION. Ochiltree County or a municipality in Ochiltree County

may not impose a tax for hospital purposes. (Acts 57th Leg., R.S.,

Ch. 103, Sec. 13 (part).)

Sec.1071.103.MANAGEMENT AND CONTROL. The management and

control of the district is vested in the board. (Acts 57th Leg.,

R.S., Ch. 103, Sec. 4 (part).)

Sec.1071.104.HOSPITAL SYSTEM. (a) The district may

provide for the establishment of a hospital or hospital system to

provide medical and hospital care to the district's needy

residents.

(b) The hospital system may include:

(1) facilities and equipment for domiciliary care and

treatment of sick, injured, or geriatric patients;

(2) outpatient clinics;

(3) rural health clinics;

(4) convalescent home facilities;

(5) assisted living or personal care facilities;

(6) physicians' offices;

(7) home health care services;

(8) durable medical equipment;

(9) long-term care;

(10) skilled nursing care;

(11) intermediate nursing care;

(12) hospice care;

(13) community mental health centers;

(14) alcohol or chemical dependency centers; and

(15) any other facilities or equipment the board

considers necessary for hospital purposes. (Acts 57th Leg., R.S.,

Ch. 103, Secs. 2 (part), 8B(b) (part).)

Sec.1071.105.RULES. (a) The board may adopt rules

governing the operation of the district, including district

facilities.

(b) On approval by the board, the rules may be published in

booklet form at district expense and made available to any taxpayer

on request. (Acts 57th Leg., R.S., Ch. 103, Sec. 8(f).)

Sec.1071.106.PURCHASING AND ACCOUNTING PROCEDURES. (a)

The board may prescribe the method and manner of making purchases

and expenditures by and for the district.

(b) The board shall prescribe:

(1) all accounting and control procedures; and

(2) the method of purchasing necessary supplies,

materials, and equipment. (Acts 57th Leg., R.S., Ch. 103, Sec. 8(a)

(part).)

Sec.1071.107.MOBILE EMERGENCY MEDICAL SERVICE. The

district may operate or assist in the operation of a mobile

emergency medical service as part of the hospital system. (Acts

57th Leg., R.S., Ch. 103, Sec. 8B(b) (part).)

Sec. 1071.108. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT. (a) The board shall determine:

(1) the type, number, and location of facilities

required to maintain an adequate hospital system; and

(2) the type of equipment necessary for hospital care.

(b) The board may:

(1) acquire by lease, purchase, or lease to purchase

or may construct, repair, or renovate property, including

facilities or equipment, for use in the district's hospital system;

and

(2) mortgage or pledge the property as security for

the payment of the purchase price.

district.

(d) The board may lease, sell, or otherwise dispose of all

or part of the district's property for the district, including

facilities or equipment, to a public or private entity.

(e) The district may operate any facility covered by this

section or contract with any person to manage or operate the

facility. (Acts 57th Leg., R.S., Ch. 103, Secs. 8B(a), (b) (part),

(c), (d), (e), (f).)

Sec.1071.109.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.

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 the issuance of a temporary

restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on

an appeal or writ of error. (Acts 57th Leg., R.S., Ch. 103, Sec.

10.)

Sec.1071.110.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 57th Leg., R.S., Ch. 103,

Sec. 16.)

Sec.1071.111.CONTRACTS FOR CARE AND TREATMENT. (a) The

board may contract with a hospital, hospital authority, or

political subdivision of this state located outside the district's

boundaries to reimburse the district for the care and treatment of a

sick or injured person of that entity.

(b) The board may contract with this state or a federal

agency for the state or agency to reimburse the district for the

treatment of a sick or injured person. (Acts 57th Leg., R.S., Ch.

103, Sec. 8B(h) (part).)

Sec. 1071.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

INVESTIGATORY OR OTHER SERVICES. The board may contract with a

political subdivision or governmental agency to provide

investigatory or other services related to facilities for the

medical care, hospital, or welfare needs of district inhabitants.

(Acts 57th Leg., R.S., Ch. 103, Sec. 8B(h) (part).)

Sec.1071.113.PROVISION OF SERVICES OUTSIDE DISTRICT.

Subject to board approval the district may provide primary care,

emergency services, preventative medical services, and other

health-related services outside the district, provided that the

services serve the purpose of the district as established by this

chapter. (Acts 57th Leg., R.S., Ch. 103, Sec. 8B(g).)

Sec. 1071.114. JOINT ADMINISTRATION OR DELIVERY OF HEALTH

CARE SERVICES. (a) To provide joint administration or delivery of

health care services, the district may contract with, affiliate

with, or enter into another arrangement with:

(1) a managed care system;

(2) a preferred provider organization;

(3) a health maintenance organization;

(4) another provider of an alternative health care or

delivery system; or

(5) a private hospital.

(b) The district may spend district money to establish and

maintain a partnership, corporation, or other entity involved in

the delivery of health care services. (Acts 57th Leg., R.S., Ch.

103, Sec. 8B(i).)

Sec.1071.115.PAYMENT FOR TREATMENT; PROCEDURES. (a)

When a patient who resides in Ochiltree County is admitted to a

district facility, the board shall have an inquiry made into the

circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for

the patient's support.

(b) If an agent designated by the district to handle the

inquiry determines that the patient or those relatives cannot pay

all or part of the costs 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.

are liable to pay for all or part of the costs of the patient's care

and treatment, the patient or those relatives shall be ordered to

pay to the district's treasurer 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 may collect the amount from the patient's

estate, or from any relative who is legally liable for the patient's

support, in the manner provided by law for the collection of

expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt

in the mind of the district's designated agent, the board shall hold

a hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue an appropriate order.

(f) Either party to the dispute may appeal the order to the

district court. (Acts 57th Leg., R.S., Ch. 103, Sec. 14.)

Sec.1071.116.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 and 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 and

treatment of a person who is confined in an Ochiltree County jail

facility and is not a district resident. (Acts 57th Leg., R.S., Ch.

103, Secs. 14A(a) (part), (b).)

Sec.1071.117.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.

(a-1) On or before December 31, 2009, the district may

create and sponsor a nonprofit corporation under the Texas

Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's

Texas Civil Statutes) or the Business Organizations Code, as

applicable, and may contribute money to or solicit money for the

corporation.

(b) The corporation may use money, other than money the

corporation pays to the district, only to provide health care or

other services the district is authorized to provide under this

chapter.

any manner in which the district may invest the district's money,

including investing money as authorized by Chapter 2256, Government

Code.

(d) The board shall establish controls to ensure that the

corporation uses its money as required by this section.

(e) This subsection and Subsection (a-1) expire December

31, 2009. (Acts 57th Leg., R.S., Ch. 103, Sec. 8B(j).)

Sec.1071.118.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 57th Leg., R.S., Ch. 103,

Sec. 18 (part).)

[Sections 1071.119-1071.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.1071.151.BUDGET. The board annually shall require a

budget to be 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 57th Leg., R.S., Ch. 103, Sec. 9(b) (part).)

Sec.1071.152.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 Ochiltree County not later

than the 10th day before the date of the hearing.

(1) appear at the time and place designated in the

notice; and

(2) be heard regarding any item included in the

proposed budget. (Acts 57th Leg., R.S., Ch. 103, Sec. 9(b) (part).)

Sec.1071.153.FISCAL YEAR. The district operates on a

fiscal year that begins on October 1 and ends on September 30. (Acts

57th Leg., R.S., Ch. 103, Sec. 9(a) (part).)

Sec.1071.154.ANNUAL AUDIT. (a) The board annually shall

have an independent audit made of the district's books and records

for the fiscal year.

(b) Not later than December 31 each year, the audit shall be

filed:

(1) with the comptroller; and

(2) at the district office. (Acts 57th Leg., R.S., Ch.

103, Sec. 9(a) (part).)

Sec.1071.155.DEPOSITORY OR TREASURER. (a) The board by

resolution shall designate a bank or banks in Ochiltree County as

the district's depository or treasurer. A designated bank serves

for three years and until a successor is designated.

(b) All income received by the district shall be deposited

in the district depository.

provided for securing county funds. (Acts 57th Leg., R.S., Ch. 103,

Secs. 5(b) (part), 11.)

Sec.1071.156.AUTHORITY TO BORROW MONEY. The board may

borrow money for district purposes on district credit or secured by

district revenue. (Acts 57th Leg., R.S., Ch. 103, Sec. 6B (part).)

[Sections 1071.157-1071.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.1071.201.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 health care purposes and for any

purpose relating to:

(1) the purchase, construction, acquisition, repair,

or renovation of buildings or improvements; and

(2) equipping buildings or improvements for hospital

purposes. (Acts 57th Leg., R.S., Ch. 103, Secs. 6(a), (b) (part).)

Sec.1071.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At

the time general obligation bonds are issued by the district under

Section 1071.201, 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 75

cents on each $100 valuation of all taxable property in the

district. (Acts 57th Leg., R.S., Ch. 103, Sec. 6(b) (part).)

Sec.1071.203.GENERAL OBLIGATION BOND ELECTION. (a) The

district may issue general obligation bonds only if the bonds are

authorized by a majority of the district voters voting at an

election held for that purpose.

(b) The board may order the election on its own motion.

(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 Ochiltree County once a week for two

consecutive weeks before the date of the election. The first

publication must occur at least 14 days before the date of the

election. (Acts 57th Leg., R.S., Ch. 103, Sec. 6(d) (part).)

Sec.1071.204.MATURITY OF GENERAL OBLIGATION BONDS.

District general obligation bonds must mature not later than 40

years after the date of issuance. (Acts 57th Leg., R.S., Ch. 103,

Sec. 6(d) (part).)

Sec.1071.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)

The board president shall execute the general obligation bonds in

the district's name.

(b) The board secretary shall countersign the bonds. (Acts

57th Leg., R.S., Ch. 103, Sec. 6(c) (part).)

Sec.1071.206.REVENUE BONDS. (a) The board may issue

revenue bonds to:

(1) purchase, construct, acquire, repair, renovate,

or equip buildings or improvements for hospital or health care

purposes; or

(2) acquire sites for hospital or health care

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 facilities.

deed of trust lien on all or part of district property.

(d) The bonds must be issued in accordance with the

procedures and requirements prescribed by Sections 264.042,

264.043, and 264.046-264.049, Health and Safety Code, for issuance

of revenue bonds by a county hospital authority. (Acts 57th Leg.,

R.S., Ch. 103, Sec. 6A(b) (part).)

Sec.1071.207.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 57th Leg., R.S., Ch. 103, Secs. 6(d) (part),

(e) (part), 6A(b) (part).)

Sec.1071.208.BONDS EXEMPT FROM TAXATION. The following

are exempt from taxation by this state or a political subdivision of

this state:

(1) bonds issued by the district;

(2) any transaction relating to the bonds; and

(3) profits made in the sale of the bonds. (Acts 57th

Leg., R.S., Ch. 103, Sec. 6A(c) (part).)

[Sections 1071.209-1071.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec.1071.251.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;

(2) provide for operation and maintenance of the

hospital and hospital system;

(3) make improvements and additions to the hospital

system; and

(4) acquire necessary sites for the hospital system by

purchase, lease, or condemnation. (Acts 57th Leg., R.S., Ch. 103,

Secs. 5(a) (part), (b) (part), 9(b) (part).)

Sec.1071.252.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 57th Leg., R.S., Ch. 103, Sec. 5(a)

(part).)

Sec.1071.253.TAX ASSESSOR-COLLECTOR. The tax

assessor-collector of Ochiltree County shall assess and collect

taxes imposed by the district. (Acts 57th Leg., R.S., Ch. 103,

Secs. 5(b) (part), 9(b) (part).)

SECTION 1.03. Subtitle C, Title 4, Special District Local

Laws Code, is amended by adding Chapter 3846 to read as follows:

CHAPTER 3846. EAST MONTGOMERY COUNTY IMPROVEMENT DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3846.001. DEFINITIONS

Sec. 3846.002. EAST MONTGOMERY COUNTY IMPROVEMENT

DISTRICT

Sec. 3846.003. PURPOSE; DECLARATION OF INTENT

Sec. 3846.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 3846.005. DISTRICT TERRITORY

Sec. 3846.006. TORT LIABILITY

[Sections 3846.007-3846.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3846.051. COMPOSITION OF BOARD; TERMS

Sec. 3846.052. ELECTION OF DIRECTORS

Sec. 3846.053. QUALIFICATIONS OF DIRECTOR

Sec. 3846.054. PARTICIPATION IN VOTING

Sec. 3846.055. LAW GOVERNING ADMINISTRATION OF BOARD

Sec. 3846.056. OFFICERS

[Sections 3846.057-3846.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3846.101. GENERAL POWERS OF DISTRICT

Sec. 3846.102. RULES

Sec. 3846.103. SPECIFIC POWERS RELATING TO IMPROVEMENT

PROJECTS OR SERVICES

Sec. 3846.104. CONTRACTS; GRANTS; DONATIONS

Sec. 3846.105. PEACE OFFICERS

Sec. 3846.106. ECONOMIC DEVELOPMENT PROGRAMS

Sec. 3846.107. ANNEXATION OR EXCLUSION OF TERRITORY

Sec. 3846.108. NO EMINENT DOMAIN POWER

[Sections 3846.109-3846.150 reserved for expansion]

SUBCHAPTER D. FINANCIAL PROVISIONS

Sec. 3846.151. SALES AND USE TAX; EXCISE TAX

Sec. 3846.152. TAX ELECTION PROCEDURES

Sec. 3846.153. BALLOT WORDING

Sec. 3846.154. IMPOSITION, COMPUTATION,

ADMINISTRATION, AND GOVERNANCE OF

TAXES

Sec. 3846.155. TAX RATES

Sec. 3846.156. ABOLITION OF TAX

Sec. 3846.157. USE OF TAX

Sec. 3846.158. EFFECTIVE DATE OF TAX OR TAX CHANGE

Sec. 3846.159. AD VALOREM TAX PROHIBITED

Sec. 3846.160. FEES; CHARGES

Sec. 3846.161. CERTAIN RESIDENTIAL PROPERTY EXEMPT

Sec. 3846.162. BORROWING MONEY

Sec. 3846.163. PAYMENT OF EXPENSES

Sec. 3846.164. BONDS

[Sections 3846.165-3846.200 reserved for expansion]

SUBCHAPTER E. DISSOLUTION

Sec. 3846.201. DISSOLUTION BY BOARD ORDER

Sec. 3846.202. ADMINISTRATION OF DISTRICT PROPERTY

FOLLOWING DISSOLUTION

CHAPTER 3846. EAST MONTGOMERY COUNTY IMPROVEMENT DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.3846.001.DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "District" means the East Montgomery County

Improvement District. (Acts 75th Leg., R.S., Ch. 1316, Secs. 3(1),

(2).)

Sec. 3846.002. EAST MONTGOMERY COUNTY IMPROVEMENT

DISTRICT. A special district known as the "East Montgomery County

Improvement District" is a governmental agency and political

subdivision of this state. (Acts 75th Leg., R.S., Ch. 1316, Sec.

1(a).)

Sec.3846.003.PURPOSE; DECLARATION OF INTENT. (a) The

creation of the district is essential to accomplish the purposes of

Section 52, Article III, and Section 59, Article XVI, Texas

Constitution, and other public purposes stated in this chapter.

(b) The creation of the district is necessary to promote,

develop, encourage, and maintain employment, commerce, economic

development, and the public welfare in the eastern area of

Montgomery County.

governmental agency, political subdivision, or municipality from

providing the level of services provided by the entity as of August

31, 1997, to the area of the district or to release the entity from

the obligations each entity has to provide services to that area.

The district is created to supplement and not to supplant the

county, governmental agency, political subdivision, or municipal

services provided in the district. (Acts 75th Leg., R.S., Ch. 1316,

Sec. 2.)

Sec.3846.004.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the district

will benefit from the works, projects, improvements, and services

to be provided by the district under powers granted by Section 52,

Article III, and Section 59, Article XVI, Texas Constitution, and

other powers granted under this chapter.

essential to carry out a public purpose.

(d) The creation of the district is in the public interest

and is essential to:

(1) further the public purposes of developing and

diversifying the economy of the state;

(2) eliminate unemployment and underemployment; and

(3) develop or expand transportation and commerce.

(e) The district will:

(1) promote the health, safety, and general welfare of

residents, employers, employees, and consumers in the district and

of the public;

(2) promote and develop public transportation and

pedestrian facilities and systems by new and alternative means,

including securing expanded and improved transportation and

pedestrian facilities and systems;

(3) provide needed funding for the area in the

district to preserve, maintain, and enhance the economic health and

vitality of the area as a community and business center; and

(4) promote the health, safety, welfare, education,

convenience, and enjoyment of the public by:

(A) improving, landscaping, and developing

certain areas in and adjacent to the district; and

(B) providing public services and facilities in

and adjacent to the district that are necessary for the

restoration, preservation, enhancement, and enjoyment of scenic

and aesthetic beauty.

(f) The district will not act as the agent or

instrumentality of any private interest even though the district

will benefit many private interests as well as the public. (Acts

75th Leg., R.S., Ch. 1316, Sec. 6.)

Sec.3846.005.DISTRICT TERRITORY. Except as the board may

modify the territory of the district under Subchapter J, Chapter

49, Water Code, or other law, the territory of the district is

coextensive with the territory as of January 1, 1997, of the New

Caney Independent School District and the Splendora Independent

School District except that the district does not include:

(1) any part of the City of Houston as it existed on

January 1, 1997; and

(2) any portion of the New Caney Independent School

District as it exists on or after September 1, 2001, that is located

in Harris County. (Acts 75th Leg., R.S., Ch. 1316, Sec. 4; New.)

Sec.3846.006.TORT LIABILITY. The district is a

governmental unit for purposes of Chapter 101, Civil Practice and

Remedies Code, and operations of the district are considered for

all purposes, including the application of that chapter, to be

essential governmental functions and not proprietary functions.

(Acts 75th Leg., R.S., Ch. 1316, Sec. 1(b).)

[Sections 3846.007-3846.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.3846.051.COMPOSITION OF BOARD; TERMS. (a) The

district is governed by a board of eight directors.

(b) Directors serve staggered terms of four years, with four

directors' terms expiring July 1 of each even-numbered year. (Acts

75th Leg., R.S., Ch. 1316, Sec. 10.)

Sec.3846.052.ELECTION OF DIRECTORS. An election to elect

the appropriate number of directors shall be held on the uniform

election date in May of each even-numbered year as provided by

Section 41.001(a), Election Code. (Acts 75th Leg., R.S., Ch. 1316,

Sec. 9(d).)

Sec.3846.053.QUALIFICATIONS OF DIRECTOR. (a) To be

qualified to serve as a director, a person must be at least 18 years

old and:

(1) a district resident;

(2) an owner of real property in the district;

(3) an owner of stock, whether beneficial or

otherwise, of a corporate owner of real property in the district;

(4) an owner of a beneficial interest in a trust that

owns real property in the district; or

(5) an agent, employee, or tenant of a person

described by Subdivision (2), (3), or (4).

(b) For purposes of this section, a person or entity that

owns an interest in a general or limited partnership owning real

property in the district or that has a lease of real property in the

district with a remaining term of 10 years or more, excluding

options, is considered to be an owner of real property. (Acts 75th

Leg., R.S., Ch. 1316, Sec. 12.)

Sec.3846.054.PARTICIPATION IN VOTING. Regardless of a

statute to the contrary, a person who qualifies to serve on the

board is qualified to serve as a director and participate in all

votes pertaining to the business of the district. (Acts 75th Leg.,

R.S., Ch. 1316, Sec. 14.)

Sec.3846.055.LAW GOVERNING ADMINISTRATION OF BOARD.

Sections 375.066, 375.067, 375.069, and 375.070, Local Government

Code, apply to the board as if the board were established under

Chapter 375, Local Government Code. (Acts 75th Leg., R.S., Ch.

1316, Sec. 11(a).)

Sec.3846.056.OFFICERS. After the directors have been

elected and have qualified as provided by Section 375.067, Local

Government Code, they shall organize or reorganize by electing a

chair, a vice chair, a secretary, and other officers of the board as

the board considers necessary. (Acts 75th Leg., R.S., Ch. 1316,

Sec. 11(b).)

[Sections 3846.057-3846.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.3846.101.GENERAL POWERS OF DISTRICT. The district

has:

(1) all powers necessary or required to accomplish the

purposes for which the district was created;

(2) the rights, powers, privileges, and other

functions of a municipal management district under Subchapter E,

Chapter 375, Local Government Code; and

(3) the powers given to an industrial development

corporation organized under the Development Corporation Act of 1979

(Article 5190.6, Vernon's Texas Civil Statutes). (Acts 75th Leg.,

R.S., Ch. 1316, Sec. 15.)

Sec.3846.102.RULES. The district may adopt rules for:

(1) the administration and operation of the district;

(2) the use, enjoyment, availability, protection,

security, and maintenance of the district's property, including

facilities; and

(3) the provision of public safety and security in the

district. (Acts 75th Leg., R.S., Ch. 1316, Sec. 16(a) (part).)

Sec. 3846.103. SPECIFIC POWERS RELATING TO IMPROVEMENT

PROJECTS OR SERVICES. (a) The district may undertake an

improvement project separately or jointly with another person and

pay all or part of the costs of improvement projects, including an

improvement project that:

(1) improves, enhances, or supports public safety and

security, fire protection, emergency medical services, or law

enforcement in the district;

(2) confers a general benefit on the entire district

and the areas adjacent to the district; or

(3) confers a special benefit on all or part of the

district.

(b) A district improvement project or service may include:

(1) the construction, acquisition, lease, rental,

installment purchase, improvement, rehabilitation, repair,

relocation, and operation of:

(A) landscaping; lighting, banners, or signs;

streets or sidewalks, pedestrian or bicycle paths and trails;

pedestrian walkways, skywalks, crosswalks, or tunnels; highway

right-of-way or transit corridor beautification and improvements;

(B) drainage or storm water detention

improvements and solid waste, water, sewer, or power facilities and

services, including electrical, gas, steam, and chilled water

facilities and services;

facilities, open space, scenic areas, and related exhibits and

preserves; fountains, plazas, or pedestrian malls; public art or

sculpture and related exhibits and facilities; educational or

cultural exhibits and facilities; exhibits, displays, attractions,

or facilities for special events, holidays, or seasonal or cultural

celebrations;

(D) off-street parking facilities, bus

terminals, heliports, mass-transit, or roadway-borne or

water-borne transportation systems; and

(E) other public improvements, facilities, or

services similar to the improvements, facilities, or services

described by Paragraphs (A)-(D);

(2) the cost of removal, razing, demolition, or

clearing of land or improvements in connection with providing an

improvement project;

(3) the acquisition of property or an interest in the

property that is made in connection with an authorized improvement

project; and

(4) the provision of special or supplemental services

to improve or promote the area in the district or to protect the

public health and safety in the district, including advertising,

promotion, tourism, health and sanitation, public safety,

security, fire protection or emergency medical services, business

recruitment, development, elimination of traffic congestion, and

recreational, educational, or cultural improvements, enhancements,

or services. (Acts 75th Leg., R.S., Ch. 1316, Secs. 16(a) (part),

17.)

Sec.3846.104.CONTRACTS; GRANTS; DONATIONS. (a) The

district may contract with any person, including a municipality,

county, other political subdivision, or corporation, to accomplish

the purposes of this chapter on terms and for the period the board

determines, including contracting for the payment, repayment, or

reimbursement of costs incurred by the person on behalf of the

district, including all or part of the costs of an improvement

project, from tax proceeds or any other specified source of money.

(b) The district may make application for and contract with

a person to receive, administer, and perform the district's duties

under a federal, state, local, or private gift, grant, loan,

conveyance, transfer, bequest, donation, or other financial

arrangement relating to the investigation, planning, analysis,

acquisition, construction, completion, implementation, or

operation of a proposed or existing improvement project.

subdivision, corporation, individual, or other person may contract

with the district to carry out the purposes of this chapter. (Acts

75th Leg., R.S., Ch. 1316, Secs. 16(a) (part), 31.)

Sec.3846.105.PEACE OFFICERS. The district may not employ

peace officers, but may contract with off-duty peace officers to

provide public safety and security services:

(1) in connection with a special event, holiday,

period with high traffic congestion, or similar circumstance; and

(2) at district property, including facilities. (Acts

75th Leg., R.S., Ch. 1316, Sec. 16(b).)

Sec.3846.106.ECONOMIC DEVELOPMENT PROGRAMS. The district

has the economic development powers granted a home-rule

municipality with a population of more than 100,000 under Chapter

380, Local Government Code, and Subchapter A, Chapter 1509,

Government Code. (Acts 75th Leg., R.S., Ch. 1316, Sec. 16(d).)

Sec.3846.107.ANNEXATION OR EXCLUSION OF TERRITORY. (a)

The district may add or exclude territory in the manner provided by

Subchapter J, Chapter 49, Water Code.

(b) Not later than the 10th day after the date on which the

district annexes or excludes territory, the board shall send to the

comptroller a certified copy of any resolution, order, or ordinance

relating to the annexation or exclusion. (Acts 75th Leg., R.S., Ch.

1316, Secs. 16(a) (part), 28.)

Sec.3846.108.NO EMINENT DOMAIN POWER. The district may

not exercise the power of eminent domain. (Acts 75th Leg., R.S.,

Ch. 1316, Sec. 19.)

[Sections 3846.109-3846.150 reserved for expansion]

SUBCHAPTER D. FINANCIAL PROVISIONS

Sec.3846.151.SALES AND USE TAX; EXCISE TAX. (a) For

purposes of this section:

(1) "Taxable items" includes all items that could be

subject to a sales and use tax imposed by Montgomery County.

(2) "Use," with respect to a taxable service, means

the derivation in the district of direct or indirect benefit from

the service.

(b) The district may impose a sales and use tax if

authorized by a majority of the district voters voting at an

election held for that purpose.

(1) a tax is imposed on the receipts from the sale at

retail of taxable items in the district; and

(2) an excise tax is imposed on the use, storage, or

other consumption in the district of taxable items purchased,

leased, or rented from a retailer during the period that the tax is

effective in the district.

(d) The rate of the excise tax is the same as the rate of the

sales tax portion of the tax applied to the sales price of the

taxable items and is included in the sales tax. (Acts 75th Leg.,

R.S., Ch. 1316, Secs. 16(a) (part), 21(a) (part), (b), (c), (d).)

Sec.3846.152.TAX ELECTION PROCEDURES. (a) Except as

provided by Subsection (b), the board may order an election to

adopt, change the rate of, or abolish a sales and use tax. The

election may be held at the same time and in conjunction with a

directors' election.

(b) The board may not call an election to abolish a sales and

use tax or to reduce the rate of the sales and use tax below the

amount pledged to secure payment of any outstanding district debt

while any district debt remains outstanding.

shall be held in the manner prescribed for bond elections under

Subchapter D, Chapter 49, Water Code. (Acts 75th Leg., R.S., Ch.

1316, Secs. 22(a), (c).)

Sec.3846.153.BALLOT WORDING. (a) In an election to adopt

the tax, the ballot shall be prepared to permit voting for or

against the proposition: "The adoption of a local sales and use tax

in the East Montgomery County Improvement District at the rate of

(proposed tax rate)."

(b) In an election to change the rate of the sales and use

tax, the ballot shall be prepared to permit voting for or against

the proposition: "The (increase or decrease, as applicable) in the

rate of the local sales and use tax imposed in the East Montgomery

County Improvement District from (tax rate on election date)

percent to (proposed tax rate) percent."

ballot shall be prepared to permit voting for or against the

proposition: "The abolition of the local sales and use tax in the

East Montgomery County Improvement District." (Acts 75th Leg.,

R.S., Ch. 1316, Secs. 22(d), (e), (f).)

Sec. 3846.154. IMPOSITION, COMPUTATION, ADMINISTRATION,

AND GOVERNANCE OF TAXES. (a) Chapter 323, Tax Code, to the extent

not inconsistent with this chapter, governs the application,

collection, and administration of the sales and use tax and the

excise tax, except that Sections 323.401-323.406, and 323.505, Tax

Code, do not apply. Subtitles A and B, Title 2, and Chapter 151, Tax

Code, govern the administration and enforcement of the sales and

use tax and the excise tax.

(b) Chapter 323, Tax Code, does not apply to the use and

allocation of revenue under this chapter.

(1) a reference in that chapter to "the county" means

the district; and

(2) a reference in that chapter to the "commissioners

court" means the board.

(d) The district is entitled to examine and receive

information related to the imposition and collection of sales and

use taxes to the same extent as if the district were a municipality

under Subchapter D, Chapter 321, Tax Code. (Acts 75th Leg., R.S.,

Ch. 1316, Sec. 23.)

Sec.3846.155.TAX RATES. (a) The district may impose the

sales and use tax in increments of one-eighth of one percent, with a

minimum tax of one-half percent and a maximum tax of two percent.

(b) The district may not impose a sales and use tax of

greater than one percent unless the voters of the district have

approved the imposition of a rate of one percent or less in addition

to the existing one percent rate at an election called for that

purpose and conducted generally in the manner provided by Section

3846.152.

against the proposition: "The adoption of a local sales and use tax

imposed in the East Montgomery County Improvement District of

_______ (state percentage rate) percent in addition to the sales

and use tax that the East Montgomery County Improvement District is

currently authorized to impose at the rate of ___ (state percentage

rate) percent."

(d) If as a result of the imposition or increase in a sales

and use tax by the district as provided under this section or

Section 3846.152, the overlapping local sales and use taxes in a

municipality located in the boundaries of the district will exceed

two percent, the municipality's sales and use tax is automatically

reduced in that municipality to a rate that, when added to the

district's rate, does not exceed two percent.

(e) If the tax rate of a municipality is reduced in

accordance with Subsection (d), the comptroller shall withhold from

the district's monthly sales and use tax allocation an amount equal

to the amount that would have been collected by the municipality had

the district not imposed or increased its sales and use tax less

amounts that the municipality collects following the district's

imposition of or increase in its sales and use tax. The comptroller

shall withhold and pay the amount withheld to the municipality

under policies or procedures that the comptroller considers

reasonable. (Acts 75th Leg., R.S., Ch. 1316, Sec. 25, as amended by

Acts 79th Leg., R.S., Chs. 1355 and 1376.)

Sec.3846.156.ABOLITION OF TAX. The board by order may

abolish the local sales and use tax rate without an election. (Acts

75th Leg., R.S., Ch. 1316, Sec. 26.)

Sec.3846.157.USE OF TAX. The district may use the

proceeds from a tax collected under this chapter only for the

purposes for which the district was created. (Acts 75th Leg., R.S.,

Ch. 1316, Secs. 16(a) (part), 21(a) (part), 27.)

Sec.3846.158.EFFECTIVE DATE OF TAX OR TAX CHANGE. The

adoption of a tax rate or change in the tax rate takes effect after

the expiration of the first complete calendar quarter occurring

after the date on which the comptroller receives a notice of the

results of the election. (Acts 75th Leg., R.S., Ch. 1316, Sec. 24.)

Sec.3846.159.AD VALOREM TAX PROHIBITED. The district may

not impose an ad valorem tax on property in the district. (Acts

75th Leg., R.S., Ch. 1316, Sec. 16(c).)

Sec.3846.160.FEES; CHARGES. The district may:

(1) establish and collect only at the district's

facilities user fees, concession fees, admission fees, rental fees,

or other similar fees or charges; and

(2) apply the proceeds from those fees or charges for

the enjoyment, sale, rental, or other use of the district's

facilities or other property, services, or improvement projects.

(Acts 75th Leg., R.S., Ch. 1316, Sec. 16(a) (part).)

Sec.3846.161.CERTAIN RESIDENTIAL PROPERTY EXEMPT. The

district may not impose an impact fee or assessment on a

single-family residential property or a residential duplex,

triplex, fourplex, or condominium. (Acts 75th Leg., R.S., Ch.

1316, Sec. 20.)

Sec.3846.162.BORROWING MONEY. The district may borrow

money for the corporate purposes of the district. (Acts 75th Leg.,

R.S., Ch. 1316, Sec. 16(a) (part).)

Sec.3846.163.PAYMENT OF EXPENSES. The district may

provide or secure the payment or repayment of:

(1) an expense of the establishment, administration,

or operation of the district;

(2) a district cost relating to an improvement

project;

(3) a district contractual obligation or

indebtedness, because of a lease, installment purchase contract, or

other agreement; or

(4) a tax, user fee, concession fee, rental fee, or

other revenue or resources of the district. (Acts 75th Leg., R.S.,

Ch. 1316, Sec. 16(a) (part).)

Sec.3846.164.BONDS. (a) The board may issue bonds as

provided by Subchapter J, Chapter 375, Local Government Code.

(b) In addition to the sources described in Subchapter J,

Chapter 375, Local Government Code, bonds issued by the district

may be secured and made payable, wholly or partly, by a pledge of

any part of the net proceeds the district receives from a specified

portion of not more than one-half of the maximum sales and use tax

amount authorized under Section 3846.152.

not apply to bonds issued under this section.

(d) To the extent consistent with the documents authorizing

the issuance of the district's bonds, the proceeds of bonds

remaining after the payment of the cost of issuing the bonds and all

costs associated with the projects for which the bonds were sold may

be spent by the district for any lawful purpose or for any project

the district is authorized to undertake. (Acts 75th Leg., R.S., Ch.

1316, Sec. 30A.)

[Sections 3846.165-3846.200 reserved for expansion]

SUBCHAPTER E. DISSOLUTION

Sec.3846.201.DISSOLUTION BY BOARD ORDER. The board by

order may dissolve the district at any time unless the district has

outstanding indebtedness or contractual obligations. (Acts 75th

Leg., R.S., Ch. 1316, Sec. 32.)

Sec. 3846.202. ADMINISTRATION OF DISTRICT PROPERTY

FOLLOWING DISSOLUTION. (a) After the date the board orders the

dissolution of the district, the board shall transfer ownership of

all property and assets of the district to Montgomery County,

except as provided by Subsection (b).

(b) If, on the date on which the board orders the

dissolution of the district, more than 50 percent of the territory

in the district is in the corporate limits of a municipality, the

board shall transfer ownership of the district's property and

assets to the municipality. (Acts 75th Leg., R.S., Ch. 1316, Sec.

34.)

SECTION 1.04. Subtitle A, Title 5, Special District Local

Laws Code, is amended by adding Chapters 5002, 5003, and 5004 to

read as follows:

CHAPTER 5002. BRAZOS RIVER HARBOR NAVIGATION DISTRICT OF

BRAZORIA COUNTY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 5002.001. DEFINITIONS

Sec. 5002.002. NATURE AND PURPOSE OF DISTRICT

Sec. 5002.003. LEGISLATIVE FINDINGS

Sec. 5002.004. DISTRICT TERRITORY

[Sections 5002.005-5002.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 5002.051. BOARD OF COMMISSIONERS; TERM; ELECTION

Sec. 5002.052. NAVIGATION PRECINCTS

Sec. 5002.053. ELECTION BY POSITION; QUALIFICATIONS

Sec. 5002.054. PLACING CANDIDATE ON BALLOT

Sec. 5002.055. ELECTION ADMINISTRATION; NOTICE OF

ELECTION

Sec. 5002.056. DATE COMMISSIONER TAKES OFFICE

Sec. 5002.057. BOND

Sec. 5002.058. VACANCIES

Sec. 5002.059. DISTRICT TREASURER

[Sections 5002.060-5002.100 reserved for expansion]

SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS

Sec. 5002.101. DEPOSITORY

Sec. 5002.102. MAINTENANCE OF BOOKS, RECORDS, AND

ACCOUNTS

CHAPTER 5002. BRAZOS RIVER HARBOR NAVIGATION DISTRICT OF

BRAZORIA COUNTY

SUBCHAPTER A. GENERAL PROVISIONS

Sec.5002.001.DEFINITIONS. In this chapter:

(1) "Board" means the board of navigation and canal

commissioners of the district.

(2) "Commissioner" means a board member.

(3) "District" means the Brazos River Harbor

Navigation District of Brazoria County. (New.)

Sec.5002.002.NATURE AND PURPOSE OF DISTRICT. The

district is created under Section 59, Article XVI, Texas

Constitution, to make improvements for the navigation of inland and

coastal waters, and for the preservation and conservation of inland

and coastal waters for navigation and for control and distribution

of storm and flood waters of rivers and streams in aid of

navigation. (Acts 40th Leg., 1st C.S., Ch. 55, Sec. 1 (part).)

Sec.5002.003.LEGISLATIVE FINDINGS. All property situated

in the district and subject to taxation will benefit from the

improvements to be constructed by the district. (Acts 40th Leg.,

1st C.S., Ch. 55, Sec. 1 (part).)

Sec.5002.004.DISTRICT TERRITORY. The district is

composed of the territory in Brazoria County described by Section

1, Chapter 55, Acts of the 40th Legislature, 1st Called Session,

1927, as that territory may have been modified under:

(1) Section 3, Chapter 103, Acts of the 41st

Legislature, 1st Called Session, 1929 (Article 8263a, Vernon's

Texas Civil Statutes), on or after May 23, 1929, and before August

30, 1971;

(2) Section 3a, Chapter 103, Acts of the 41st

Legislature, 1st Called Session, 1929 (Article 8263a, Vernon's

Texas Civil Statutes), on or after May 16, 1951, and before August

30, 1971;

(3) Subchapter H, Chapter 62, Water Code; or

(4) other law. (Acts 40th Leg., 1st C.S., Ch. 55,

Sec. 1 (part); New.)

[Sections 5002.005-5002.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.5002.051.BOARD OF COMMISSIONERS; TERM; ELECTION. (a)

The district is governed by an elected board consisting of six

commissioners.

(b) Commissioners serve staggered six-year terms.

years to elect two commissioners. (Acts 40th Leg., 1st C.S., Ch.

55, Sec. 4a (part).)

Sec.5002.052.NAVIGATION PRECINCTS. For the purpose of

electing commissioners, the district is divided into four

navigation precincts. The boundaries of the navigation precincts

are described by Section 4a, Chapter 55, Acts of the 40th

Legislature, 1st Called Session, 1927. (Acts 40th Leg., 1st C.S.,

Ch. 55, Sec. 4a (part).)

Sec.5002.053.ELECTION BY POSITION; QUALIFICATIONS. (a)

Commissioners are elected by position as follows:

(1) the commissioner elected for Position 1 is at

large and must reside in the district;

(2) the commissioners elected for Positions 2 and 3

must reside in Navigation Precinct No. 1;

(3) the commissioner elected for Position 4 must

reside in Navigation Precinct No. 2;

(4) the commissioner elected for Position 5 must

reside in Navigation Precinct No. 3; and

(5) the commissioner elected for Position 6 must

reside in Navigation Precinct No. 4.

(b) Each commissioner must be a qualified voter of the

district. (Acts 40th Leg., 1st C.S., Ch. 55, Sec. 4a (part).)

Sec.5002.054.PLACING CANDIDATE ON BALLOT. A request for

placing the name of a candidate on the ballot must be filed with the

board's presiding officer and be:

(1) in writing and signed by the candidate; or

(2) in the form of a petition signed by at least 25

qualified voters of the district. (Acts 40th Leg., 1st C.S., Ch.

55, Sec. 4a (part).)

Sec. 5002.055. ELECTION ADMINISTRATION; NOTICE OF

ELECTION. (a) The board shall make arrangements for each election.

(b) Notice of the election, signed by the board's presiding

officer or secretary, must be published once a week for two

consecutive weeks in a newspaper of general circulation within the

district. The first publication must occur not later than the 14th

day before the date of the election.

commissioner in all navigation precincts.

(d) The board shall declare the results of each election.

(Acts 40th Leg., 1st C.S., Ch. 55, Sec. 4a (part).)

Sec.5002.056.DATE COMMISSIONER TAKES OFFICE. A

commissioner shall take office on the appropriate date following

the person's election. (Acts 40th Leg., 1st C.S., Ch. 55, Sec. 4a

(part).)

Sec.5002.057.BOND. As a qualification for office, a

commissioner must post a bond in the amount of $10,000 that is:

(1) executed by the commissioner and by two solvent

sureties or by a surety company authorized to do business in this

state; and

(2) approved by the county judge of Brazoria County.

(Acts 40th Leg., 1st C.S., Ch. 55, Sec. 4a (part).)

Sec.5002.058.VACANCIES. (a) Except as otherwise

provided by this section, if a vacancy occurs in the office of

commissioner, the board shall appoint a commissioner for the

remainder of the unexpired term.

(b) If more than two vacancies occur at the same time, the

remaining commissioners shall call a special election to fill the

vacancies.

within 15 days after the date the vacancies occur, the judge or

judges of the district court or courts of the judicial district in

which the district is located, on the petition of a voter or

creditor of the district, may:

(1) order that an election be held, specifying the

date of the election;

(2) order the Brazoria County clerk to publish notice

of the election; and

(3) name the officers to hold the election.

(d) The returns of an election held by order of the district

judge or judges shall be made and filed in the office of the clerk of

the district court, and the clerk of the district court shall

declare the result of the election. (Acts 40th Leg., 1st C.S., Ch.

55, Sec. 4a (part).)

Sec.5002.059.DISTRICT TREASURER. (a) The board shall

appoint from time to time a person to serve in the office of

district treasurer.

(b) The district treasurer shall perform the duties for the

district that were performed before September 1, 1999, by the

county treasurer of Brazoria County.

district treasurer shall execute a good and sufficient bond payable

to the board for the benefit of the district in an amount set by the

board. (Acts 40th Leg., 1st C.S., Ch. 55, Secs. 1a (part), 1b.)

[Sections 5002.060-5002.100 reserved for expansion]

SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS

Sec.5002.101.DEPOSITORY. (a) The board by resolution

shall designate a bank in Brazoria County as the district's

depository.

(b) The designated bank serves as the depository for a term

of two years and until a successor depository has been selected.

provided for the security of county funds.

(d) The tax assessor and collector for Brazoria County or

another official performing the duties of tax assessor and

collector for the district shall:

(1) deposit all taxes collected for the district in

the depository bank designated as depository for Brazoria County;

and

(2) promptly transfer and deposit the money to the

district's account in the district's depository. (Acts 40th Leg.,

1st C.S., Ch. 55, Secs. 1a (part), 4c.)

Sec.5002.102.MAINTENANCE OF BOOKS, RECORDS, AND ACCOUNTS.

The district shall maintain the books, records, and accounts of the

district. The Brazoria County treasurer is not required to

maintain any books, records, or accounts for the district other

than as required by the board. (Acts 40th Leg., 1st C.S., Ch. 55,

Sec. 4b.)

CHAPTER 5003. CALHOUN COUNTY NAVIGATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 5003.001. DEFINITIONS

Sec. 5003.002. NATURE AND PURPOSE OF DISTRICT

Sec. 5003.003. LEGISLATIVE FINDINGS

Sec. 5003.004. DISTRICT TERRITORY

[Sections 5003.005-5003.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 5003.051. BOARD OF NAVIGATION COMMISSIONERS

Sec. 5003.052. NAVIGATION PRECINCTS

Sec. 5003.053. ELECTION; TERMS

Sec. 5003.054. PLACING CANDIDATE ON BALLOT;

QUALIFICATIONS

Sec. 5003.055. VACANCY

[Sections 5003.056-5003.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 5003.101. GENERAL NAVIGATION DISTRICT POWERS

Sec. 5003.102. AD VALOREM TAXES; BOND ELECTION

Sec. 5003.103. CHANGE OF DISTRICT NOT AUTHORIZED

Sec. 5003.104. LIMIT ON EMINENT DOMAIN POWER

Sec. 5003.105. AUTHORITY TO DESIGNATE INDUSTRIAL AREAS

OR PLANT SITES; FINDINGS

CHAPTER 5003. CALHOUN COUNTY NAVIGATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.5003.001.DEFINITIONS. In this chapter:

(1) "Board" means the board of navigation

commissioners of the district.

(2) "Commissioner" means a board member.

(3) "District" means the Calhoun County Navigation

District. (New.)

Sec.5003.002.NATURE AND PURPOSE OF DISTRICT. The

district is a navigation district. To the extent authorized by this

chapter, the district is created to:

(1) improve navigation in the district; and

(2) maintain, develop, extend, and improve port

facilities and wharf and dock facilities in the district. (Acts

53rd Leg., R.S., Ch. 195, Sec. 1 (part).)

Sec.5003.003.LEGISLATIVE FINDINGS. (a) The creation of

the district is essential:

(1) to accomplish the purposes of Section 59, Article

XVI, Texas Constitution;

(2) to the general welfare of this state; and

(3) for the development of marine shipping.

(b) All property in the district benefits from the creation

of the district by the improvements to be constructed or acquired by

the district in carrying out the district's purposes. (Acts 53rd

Leg., R.S., Ch. 195, Sec. 1 (part).)

Sec.5003.004.DISTRICT TERRITORY. The district is

composed of all the territory of Calhoun County, including all land

and water areas of the county:

(1) except for territory included in the West Side

Calhoun County Navigation District as described in Volume H, pages

568-570, of the minutes of the Commissioners Court of Calhoun

County; and

(2) as that territory may have been modified under:

(A) Section 3 or Section 3a, Chapter 103, Acts of

the 41st Legislature, 1st Called Session, 1929 (Article 8263a,

Vernon's Texas Civil Statutes), before August 30, 1971;

(B) Subchapter H, Chapter 62, Water Code; or

Sec. 1 (part); New.)

[Sections 5003.005-5003.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.5003.051.BOARD OF NAVIGATION COMMISSIONERS. The

district is governed by a board of six commissioners. (Acts 53rd

Leg., R.S., Ch. 195, Sec. 2(a) (part).)

Sec.5003.052.NAVIGATION PRECINCTS. (a) The board shall

from time to time divide the district into six navigation

commissioner precincts that are:

(1) compact and contiguous; and

(2) as nearly as practicable, of equal population.

(b) The board shall complete any division of the district

into new precincts not later than the 90th day before the date of

the first election of commissioners from those precincts.

subchapter, shall elect one commissioner. (Acts 53rd Leg., R.S.,

Ch. 195, Secs. 2(a) (part), (b), (c), (d) (part).)

Sec.5003.053.ELECTION; TERMS. (a) The six commissioners

elected at the first election after a division of the district into

new precincts under Section 5003.052 shall draw lots after the

election to select three commissioners to serve two-year terms and

three commissioners to serve four-year terms. Successor

commissioners serve terms as provided by Subsection (b).

(b) Except as provided by Subsection (a), commissioners are

elected for staggered four-year terms at elections held each

odd-numbered year on the uniform election date in May. (Acts 53rd

Leg., R.S., Ch. 195, Secs. 2(e), (g) (part).)

Sec. 5003.054. PLACING CANDIDATE ON BALLOT;

QUALIFICATIONS. (a) A person qualified under this section to be a

candidate for the office of commissioner may file an application

with the board to have the person's name placed on the ballot. The

application must be filed not later than 5 p.m. of the 45th day

before the election date for that office.

(b) The application must include an affidavit made by the

applicant under oath disclosing that the applicant is:

(1) a bona fide resident of the precinct that the

person seeks to represent; and

(2) a qualified voter who owns real property in the

area.

board shall place the applicant's name on the official ballot.

(Acts 53rd Leg., R.S., Ch. 195, Secs. 2(d) (part), (h).)

Sec.5003.055.VACANCY. (a) If a vacancy occurs on the

board, a majority of the remaining commissioners shall appoint a

successor to fill the vacancy for the remainder of the unexpired

term.

(b) For purposes of this chapter, the successor

commissioner is treated as an elected commissioner.

public welfare, general benefit, and the assurance of proper

development of marine shipping that:

(1) the commissioners be representatives of all areas

of the district; and

(2) if a commissioner no longer resides in the

precinct from which elected, the commissioner's office is vacant.

(Acts 53rd Leg., R.S., Ch. 195, Secs. 2(f), (j).)

[Sections 5003.056-5003.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.5003.101.GENERAL NAVIGATION DISTRICT POWERS. The

district and the board, except as specifically restricted by this

chapter, have the powers of government and may exercise the rights,

powers, duties, privileges, and functions conferred by Chapter 60,

61, 62, or 63, Water Code, on a navigation district created under

Section 59, Article XVI, Texas Constitution, that are appropriate

to the accomplishment of the purposes stated in Subchapter A. (Acts

53rd Leg., R.S., Ch. 195, Secs. 1 (part), 3 (part).)

Sec.5003.102.AD VALOREM TAXES; BOND ELECTION. (a) If

authorized by a majority vote of the district voters voting at an

election held in the manner provided for a bond election under

Subchapter F, Chapter 62, Water Code, the Commissioners Court of

Calhoun County may:

(1) impose maintenance taxes; or

(2) issue tax bonds and impose taxes to pay for the

bonds.

(b) The commissioners court shall impose the tax for:

(1) the maintenance of the district and its property,

including facilities; and

(2) the payment of the principal of and interest on all

bonds or other indebtedness issued by the district.

indebtedness purposes may not exceed a total of 15 cents on each

$100 of taxable property in the district.

(d) The Calhoun County tax assessor-collector shall assess

and collect taxes imposed under this section. (Acts 53rd Leg.,

R.S., Ch. 195, Sec. 3(a) (part).)

Sec.5003.103.CHANGE OF DISTRICT NOT AUTHORIZED. The

board may not by a vote change the district from a navigation

district to any other type of district authorized by general law.

(Acts 53rd Leg., R.S., Ch. 195, Sec. 3(b).)

Sec.5003.104.LIMIT ON EMINENT DOMAIN POWER. The district

may not exercise the power of eminent domain outside Calhoun County

in an area in another navigation district without the consent of the

other district. (Acts 53rd Leg., R.S., Ch. 195, Sec. 3(c).)

Sec. 5003.105. AUTHORITY TO DESIGNATE INDUSTRIAL AREAS OR

PLANT SITES; FINDINGS. (a) The board may adopt an order or

resolution designating an area of land in the district that fronts

on navigable water in the district as an industrial area or plant

site for the aid of navigation. A defined area may not:

(1) be located in the corporate limits of a

municipality; or

(2) exceed 1,000 yards in depth as measured from the

shoreline.

(b) A certified copy of an order or resolution adopted under

Subsection (a) shall be filed and recorded in the deed records of

Calhoun County. After the copy is filed, a municipality may not

include any part of the defined area in its boundaries.

all or part of a defined area from that designation if the board

determines that:

(1) the area is not suitable for or being used as an

industrial area or plant site;

(2) the area will not be suitable for or used as an

industrial area or plant site within a reasonable time; and

(3) the continued designation does not aid navigation.

(d) A certified copy of an order or resolution adopted under

Subsection (c) shall be filed and recorded in the deed records of

Calhoun County. After the copy is filed, any restriction imposed

under this section by the previous designation on the area is

removed.

(e) The legislature finds that the powers granted and

restrictions imposed by this section are necessary:

(1) for the proper exercise by the district of the

powers granted by Section 59, Article XVI, Texas Constitution, and

by this chapter; and

(2) to promote and effect the navigation of the inland

and coastal waters of the state. (Acts 53rd Leg., R.S., Ch. 195,

Sec. 3(d).)

CHAPTER 5004. CYPRESS VALLEY NAVIGATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 5004.001. DEFINITIONS

Sec. 5004.002. NATURE OF DISTRICT

Sec. 5004.003. LEGISLATIVE FINDINGS

Sec. 5004.004. LIBERAL CONSTRUCTION OF CHAPTER

Sec. 5004.005. DISTRICT TERRITORY

Sec. 5004.006. EFFECT OF CHAPTER ON NORTHEAST TEXAS

MUNICIPAL WATER DISTRICT

[Sections 5004.007-5004.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 5004.051. COMPOSITION OF BOARD; TERMS

Sec. 5004.052. QUALIFICATIONS FOR OFFICE

Sec. 5004.053. APPOINTMENT OF DIRECTORS

Sec. 5004.054. BOND

Sec. 5004.055. FILING OF OATH

Sec. 5004.056. VACANCIES

Sec. 5004.057. COMPENSATION; EXPENSES

Sec. 5004.058. REMOVAL FROM OFFICE

Sec. 5004.059. OFFICERS

Sec. 5004.060. MEETINGS

[Sections 5004.061-5004.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 5004.101. GENERAL POWERS AND DUTIES

Sec. 5004.102. POWERS REGARDING CANALS, PORTS,

WATERWAYS, AND FACILITIES

Sec. 5004.103. BYLAWS AND RULES

Sec. 5004.104. GIFT OR PURCHASE OF PROPERTY; EMINENT

DOMAIN

Sec. 5004.105. SURPLUS PROPERTY

Sec. 5004.106. GENERAL AUTHORITY TO MAKE CONTRACTS AND

EXECUTE INSTRUMENTS

Sec. 5004.107. CONTRACTS WITH UNITED STATES

Sec. 5004.108. AUTHORITY TO SPEND MONEY FOR SEEKING

COOPERATION

Sec. 5004.109. COOPERATION WITH OTHER GOVERNMENTAL

ENTITIES CONCERNED WITH NAVIGATION ON

BIG CYPRESS RIVER

Sec. 5004.110. EMPLOYMENT OF OFFICERS AND EMPLOYEES

Sec. 5004.111. PERMITS

Sec. 5004.112. AUTHORITY TO SUE AND BE SUED

Sec. 5004.113. SEAL

Sec. 5004.114. RED RIVER COMPACT

[Sections 5004.115-5004.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 5004.151. FORM OF ACCOUNTS; MAINTENANCE OF

RECORDS; PUBLIC INSPECTION

Sec. 5004.152. FILING COPIES OF AUDIT REPORT

Sec. 5004.153. PROCEDURE FOR DISTRIBUTION OF MONEY

Sec. 5004.154. BOND OF CERTAIN OFFICERS, AGENTS, AND

EMPLOYEES

Sec. 5004.155. AUTHORITY TO BORROW MONEY, ACCEPT

GRANTS, AND ISSUE ASSOCIATED REVENUE

BONDS

Sec. 5004.156. AUTHORITY TO BORROW MONEY FOR CURRENT

EXPENSES; EVIDENCE OF OBLIGATION

Sec. 5004.157. NO AUTHORITY FOR AD VALOREM TAX

[Sections 5004.158-5004.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 5004.201. DEFINITION

Sec. 5004.202. AUTHORITY TO ISSUE BONDS

Sec. 5004.203. PROVISIONS OF BOND RESOLUTION OR ORDER;

AUTHORITY TO ADOPT OR EXECUTE OTHER

PROCEEDINGS OR INSTRUMENTS

Sec. 5004.204. FORM OF BONDS

Sec. 5004.205. MATURITY

Sec. 5004.206. USE OF BOND PROCEEDS

Sec. 5004.207. REFUNDING BONDS

CHAPTER 5004. CYPRESS VALLEY NAVIGATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.5004.001.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 Cypress Valley Navigation

District. (V.A.C.S. Art. 8280-340, Secs. 1 (part), 4(a) (part);

New.)

Sec.5004.002.NATURE OF DISTRICT. The district is a

navigation, conservation, and reclamation district. (V.A.C.S.

Art. 8280-340, Sec. 1 (part).)

Sec.5004.003.LEGISLATIVE FINDINGS. (a) All land

included in the district will benefit from the exercise of the power

conferred by this chapter.

(b) The creation of the district is essential to accomplish

the purposes of Section 59, Article XVI, Texas Constitution.

(V.A.C.S. Art. 8280-340, Secs. 1 (part), 2 (part).)

Sec.5004.004.LIBERAL CONSTRUCTION OF CHAPTER. This

chapter shall be liberally construed to effect its purposes.

(V.A.C.S. Art. 8280-340, Sec. 15.)

Sec.5004.005.DISTRICT TERRITORY. The district is

composed of all the territory in the watershed of the Cypress River

and its tributaries in Harrison and Marion Counties as shown by the

state contour maps on file in the office of the Texas Commission on

Environmental Quality, unless the district's territory is modified

under:

(1) Section 3 or 3a, Chapter 103, Acts of the 41st

Legislature, 1st Called Session, 1929 (Article 8263a, Vernon's

Texas Civil Statutes), after August 30, 1965, and before August 30,

1971;

(2) Subchapter H, Chapter 62, Water Code; or

(3) other law. (V.A.C.S. Art. 8280-340, Sec. 2

(part).)

Sec. 5004.006. EFFECT OF CHAPTER ON NORTHEAST TEXAS

MUNICIPAL WATER DISTRICT. It is recognized that the district

boundaries described by Section 5004.005 partly overlap an area in

the Northeast Texas Municipal Water District as created by Chapter

78, Acts of the 53rd Legislature, Regular Session, 1953 (Article

8280-147, Vernon's Texas Civil Statutes). This chapter does not

alter in any manner the rights, duties, privileges, powers, or

immunities of that district. (V.A.C.S. Art. 8280-340, Sec. 2

(part).)

[Sections 5004.007-5004.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.5004.051.COMPOSITION OF BOARD; TERMS. (a) All powers

of the district shall be exercised by a board consisting of 10

directors.

(b) Directors serve staggered terms of two years, with the

terms of:

(1) four directors expiring January 1 of even-numbered

years; and

(2) six directors expiring January 1 of odd-numbered

years. (V.A.C.S. Art. 8280-340, Secs. 4(a) (part), (c) (part).)

Sec.5004.052.QUALIFICATIONS FOR OFFICE. To be eligible

for appointment and to serve as a director, a person must:

(1) be at least 18 years of age;

(2) reside in the district and in Harrison or Marion

County; and

(3) possess the qualifications of a juror. (V.A.C.S.

Art. 8280-340, Secs. 4(a) (part), (c) (part).)

Sec.5004.053.APPOINTMENT OF DIRECTORS. At least 10 but

not more than 30 days before the date on which a director's term of

office expires, the commissioners court of the county of residence

of the retiring director shall designate a successor. (V.A.C.S.

Art. 8280-340, Sec. 4(c) (part).)

Sec.5004.054.BOND. (a) Before assuming the director's

duties, each director shall execute a good and sufficient bond in

the amount of $1,000, payable to the county judges of Harrison and

Marion Counties, for the use and benefit of the district

conditioned on the faithful performance of the director's duties.

(b) The district shall pay the cost of the bond. (V.A.C.S.

Art. 8280-340, Sec. 4(b).)

Sec.5004.055.FILING OF OATH. Before assuming the duties

of office, each director shall file with the board

secretary-treasurer a copy of the constitutional oath of office

taken by the director. (V.A.C.S. Art. 8280-340, Sec. 4(c) (part).)

Sec.5004.056.VACANCIES. If a vacancy occurs on the board,

the commissioners court of the county of residence of the retiring

director shall fill the vacancy by appointment. (V.A.C.S. Art.

8280-340, Sec. 4(c) (part).)

Sec.5004.057.COMPENSATION; EXPENSES. (a) A director may

not be paid for services as a director or as a member of a committee

authorized by the board.

(b) A director may be reimbursed for actual expenses

incurred by the director in performing a service for the district

but only from money raised in the director's county of residence.

(V.A.C.S. Art. 8280-340, Sec. 5.)

Sec.5004.058.REMOVAL FROM OFFICE. (a) A director or

officer is subject to removal or suspension from office by the

affirmative vote of 10 directors for incompetence, official

misconduct, official gross negligence, habitual drunkenness, or

nonattendance at six consecutive regular meetings of the board.

(b) A director or officer may not be removed or suspended

from office until written charges are filed against the director or

officer and the director or officer is given an opportunity for a

fair hearing before the board. (V.A.C.S. Art. 8280-340, Sec. 6.)

Sec.5004.059.OFFICERS. (a) At the first board meeting in

January of each odd-numbered year, the board shall appoint by board

majority:

(1) from the directors, a presiding officer, an

assistant presiding officer, and a secretary-treasurer; and

(2) if considered proper, an assistant secretary and

an assistant treasurer.

(b) The assistant secretary and assistant treasurer:

(1) are not required to be directors; and

(2) may be granted limited powers by the bylaws.

assistant secretary and assistant treasurer, if appointed, hold

office at the pleasure of the board. (V.A.C.S. Art. 8280-340, Sec.

7 (part).)

Sec.5004.060.MEETINGS. (a) All regular and special board

meetings shall be held as provided for by the bylaws.

(b) Notice of all regular and special board meetings shall

be given as required by the bylaws. (V.A.C.S. Art. 8280-340, Sec. 7

(part).)

[Sections 5004.061-5004.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.5004.101.GENERAL POWERS AND DUTIES. The district

has:

(1) the powers of government and the authority to

exercise the rights, privileges, and functions provided by this

chapter; and

(2) all powers, rights, privileges, and functions

conferred on navigation districts created under Section 59, Article

XVI, Texas Constitution, and conferred on navigation districts by

general law, except as expressly limited by this chapter.

(V.A.C.S. Art. 8280-340, Secs. 1 (part), 3 (part).)

Sec. 5004.102. POWERS REGARDING CANALS, PORTS, WATERWAYS,

AND FACILITIES. The district may:

(1) promote, construct, maintain, operate, make

practicable, aid, and encourage the construction, maintenance, and

operation of navigable canals or waterways and all navigational

systems or facilities auxiliary to navigable canals or waterways,

using the natural bed and banks of the Cypress River and its

tributaries and of Caddo Lake where practicable;

(2) acquire, improve, extend, take over, construct,

maintain, repair, operate, develop, and regulate ports, levees,

wharves, docks, locks, warehouses, grain elevators, dumping

facilities, aids to navigation, or aids consistent with or

necessary to the operation or development of ports or waterways

within the district; and

(3) construct, extend, improve, repair, maintain,

reconstruct, own, use, and operate any facility of any kind

necessary or convenient to the exercise of the powers, rights,

privileges, and functions granted by this chapter. (V.A.C.S. Art.

8280-340, Sec. 3 (part).)

Sec.5004.103.BYLAWS AND RULES. The district may adopt

bylaws and rules for the management, control, and regulation of its

affairs. (V.A.C.S. Art. 8280-340, Sec. 3 (part).)

Sec. 5004.104. GIFT OR PURCHASE OF PROPERTY; EMINENT

DOMAIN. (a) In this section, "property" means property of any

kind, including a lighter, tug, barge, or other floating equipment

of any nature.

(b) If necessary or convenient to exercising a power, right,

privilege, or function conferred on the district by this chapter,

the district:

(1) by gift or purchase may acquire property or an

interest in property that is inside or outside the district

boundaries; or

(2) by exercising the power of eminent domain may

acquire property or an interest in property that is inside the

district boundaries.

in the manner provided by Chapter 21, Property Code, except that the

district is not required to give bond for appeal or bond for costs

in any judicial proceeding. (V.A.C.S. Art. 8280-340, Sec. 3

(part).)

Sec.5004.105.SURPLUS PROPERTY. The district may sell or

otherwise dispose of property or an interest in property of any kind

that is not considered necessary to carrying on the business of the

district. (V.A.C.S. Art. 8280-340, Sec. 3 (part).)

Sec. 5004.106. GENERAL AUTHORITY TO MAKE CONTRACTS AND

EXECUTE INSTRUMENTS. The district may make a contract or execute an

instrument necessary or convenient to exercising a power, right,

privilege, or function conferred on the district by this chapter.

(V.A.C.S. Art. 8280-340, Sec. 3 (part).)

Sec.5004.107.CONTRACTS WITH UNITED STATES. The district

may:

(1) enter into a contract with the United States,

including a contract to consummate or aid a navigation project

approved or undertaken by the United States; and

(2) assume and become responsible for an obligation of

the United States and enter into an agreement with the United States

to hold and save the United States free from damages due to the

construction and maintenance of navigation works in the district.

(V.A.C.S. Art. 8280-340, Sec. 3 (part).)

Sec. 5004.108. AUTHORITY TO SPEND MONEY FOR SEEKING

COOPERATION. The district may spend any amount reasonably

necessary or expedient for seeking cooperation from the federal

government or any other person in accomplishing the objects of this

chapter. (V.A.C.S. Art. 8280-340, Sec. 3 (part).)

Sec. 5004.109. COOPERATION WITH OTHER GOVERNMENTAL

ENTITIES CONCERNED WITH NAVIGATION ON BIG CYPRESS RIVER. The

district shall cooperate with each commission, agency, district, or

other governmental entity concerned with navigation on the Big

Cypress River to all practical extent. (V.A.C.S. Art. 8280-340,

Sec. 14(c).)

Sec.5004.110.EMPLOYMENT OF OFFICERS AND EMPLOYEES. The

district may employ, prescribe the duties of, and set the

compensation of officers, attorneys, agents, and employees.

(V.A.C.S. Art. 8280-340, Sec. 3 (part).)

Sec.5004.111.PERMITS. The district shall obtain from the

Texas Commission on Environmental Quality any permit required by

general law. (V.A.C.S. Art. 8280-340, Sec. 14(a).)

Sec.5004.112.AUTHORITY TO SUE AND BE SUED. The district

may sue and be sued in its corporate name. (V.A.C.S. Art. 8280-340,

Sec. 3 (part).)

Sec.5004.113.SEAL. The district may adopt and use a

corporate seal. (V.A.C.S. Art. 8280-340, Sec. 3 (part).)

Sec.5004.114.RED RIVER COMPACT. The district shall

comply with the Red River Compact. The creation of the district

does not affect the compact. (V.A.C.S. Art. 8280-340, Sec. 14(b).)

[Sections 5004.115-5004.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 5004.151. FORM OF ACCOUNTS; MAINTENANCE OF RECORDS;

PUBLIC INSPECTION. (a) The board shall keep complete and accurate

accounts conforming to approved methods of bookkeeping.

(b) The accounts and all contracts, documents, and records

shall be:

(1) kept at the district's office; and

(2) open to public inspection at all reasonable times.

(V.A.C.S. Art. 8280-340, Sec. 9 (part).)

Sec.5004.152.FILING COPIES OF AUDIT REPORT. Copies of the

audit report prepared under Subchapter G, Chapter 49, Water Code,

as required by Section 60.002 of that code, shall be filed:

(1) as required by Section 49.194, Water Code; and

(2) with the county clerks of Harrison and Marion

Counties. (V.A.C.S. Art. 8280-340, Sec. 9 (part); New.)

Sec.5004.153.PROCEDURE FOR DISTRIBUTION OF MONEY.

District money shall be distributed only by check, voucher, draft,

order, or other written instrument signed by a person authorized by

board resolution to sign the instrument. (V.A.C.S. Art. 8280-340,

Sec. 9 (part).)

Sec. 5004.154. BOND OF CERTAIN OFFICERS, AGENTS, AND

EMPLOYEES. (a) Each officer, agent, or employee of the district

who is charged with the collection, custody, or payment of district

money shall give bond conditioned on the faithful performance of

the person's duties and accounting for all money and property of the

district coming into the person's hands.

(b) The bond must be in a form and manner and with a surety

authorized to do business in this state approved by the board.

charge the premium as an operating expense. (V.A.C.S. Art.

8280-340, Sec. 10.)

Sec. 5004.155. AUTHORITY TO BORROW MONEY, ACCEPT GRANTS,

AND ISSUE ASSOCIATED REVENUE BONDS. The district may:

(1) borrow money for its corporate purpose consistent

with the constitution and general laws of this state;

(2) borrow money or accept a grant from the United

States or from a corporation or agency created or designated by the

United States and, in connection with the loan or grant, enter into

any agreement the United States or the corporation or agency

requires; and

(3) issue bonds payable from revenue only for the

money borrowed under this section. (V.A.C.S. Art. 8280-340, Sec. 3

(part).)

Sec. 5004.156. AUTHORITY TO BORROW MONEY FOR CURRENT

EXPENSES; EVIDENCE OF OBLIGATION. (a) The board may:

(1) borrow money for current expenses; and

(2) evidence the borrowed money by notes or warrants

payable not later than the close of the calendar year for which the

loan is made.

(b) The total amount of the notes or warrants may not exceed

the anticipated revenue. (V.A.C.S. Art. 8280-340, Sec. 11 (part).)

Sec.5004.157.NO AUTHORITY FOR AD VALOREM TAX. This

chapter does not authorize the imposition of ad valorem taxes on any

property in the district. (V.A.C.S. Art. 8280-340, Sec. 8.)

[Sections 5004.158-5004.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.5004.201.DEFINITION. In this subchapter, "net

revenue" means the gross revenue derived from the operation of the

improvements and facilities of the district the income of which is

pledged to the payment of district bonds less the reasonable

expense of maintaining and operating those improvements and

facilities, including necessary repair, upkeep, and insurance

expenses for those improvements and facilities. (V.A.C.S. Art.

8280-340, Sec. 11 (part).)

Sec.5004.202.AUTHORITY TO ISSUE BONDS. (a) To provide

money for any of the purposes provided by this chapter or other laws

relating to navigation districts, the board may:

(1) issue district bonds that are secured solely by a

pledge of and payable from the net revenue derived from the

operation of all or a designated part of the improvements and

facilities of the district then in existence or to be constructed or

acquired; or

(2) issue district bonds secured by a pledge of all or

part of the proceeds of one or more contracts previously or

subsequently made or other revenue or income specified by board

resolution.

(b) As long as bonds issued under Subsection (a)(1) are

outstanding, the board shall charge and collect fees, tolls, and

other charges sufficient to:

(1) pay all maintenance and operation expenses of the

improvements and facilities the income of which is pledged;

(2) pay the interest on the bonds as it accrues;

(3) pay the principal of the bonds as they mature; and

(4) make any other payments prescribed in the bond

order or resolution.

resolution or order.

(d) Bonds payable solely from net revenue may be issued

without an election. (V.A.C.S. Art. 8280-340, Sec. 11 (part).)

Sec. 5004.203. PROVISIONS OF BOND RESOLUTION OR ORDER;

AUTHORITY TO ADOPT OR EXECUTE OTHER PROCEEDINGS OR INSTRUMENTS.

(a) In the resolution or order adopted by the board authorizing the

issuance of bonds payable from net revenue or from the proceeds of a

contract or contracts, the board may:

(1) provide for the flow of funds and the

establishment and maintenance of an interest and sinking fund,

reserve funds, and other funds;

(2) make any additional covenants for the bonds, the

pledged revenue, and the operation, maintenance, and upkeep of the

improvements and facilities the income of which is pledged,

including a provision for leasing all or part of the improvements

and facilities and the use or pledge of money derived from those

leases, as the board considers appropriate;

(3) prohibit the further issuance of bonds or other

obligations payable from the pledged net revenue;

(4) reserve the right to issue additional bonds to be

secured by a pledge of and payable from the net revenue on a parity

with, or subordinate to, the lien and pledge in support of the bonds

being issued, subject to any conditions provided by the resolution

or order; or

(5) include any other provision or covenant, as

determined by the board, that is not prohibited by the Texas

Constitution or this chapter.

(b) The board may adopt and execute any other proceeding or

instrument necessary or convenient to issue the bonds. (V.A.C.S.

Art. 8280-340, Sec. 11 (part).)

Sec.5004.204.FORM OF BONDS. District bonds must:

(1) be issued in the district's name;

(2) be signed by the presiding officer; and

(3) be attested by the secretary-treasurer. (V.A.C.S.

Art. 8280-340, Sec. 11 (part).)

Sec.5004.205.MATURITY. District bonds must mature not

later than 40 years after the date of their issuance. (V.A.C.S.

Art. 8280-340, Sec. 11 (part).)

Sec.5004.206.USE OF BOND PROCEEDS. The board may

appropriate or set aside an amount of proceeds from the sale of any

district bonds for:

(1) the payment of interest expected to accrue during

construction of the improvements or facilities;

(2) reserve funds; and

(3) expenses incurred and to be incurred in the

issuance, sale, and delivery of the bonds. (V.A.C.S. Art.

8280-340, Sec. 11 (part).)

Sec.5004.207.REFUNDING BONDS. (a) The board may issue

refunding bonds of the district to refund any outstanding district

bonds and accrued interest on those bonds.

(b) Refunding bonds may:

(1) be issued to refund more than one series or issue

of the outstanding bonds;

(2) combine the pledges for the outstanding bonds for

the security of the refunding bonds; and

(3) be secured by other or additional revenue.

rights of the holders of any of the outstanding bonds that are not

to be refunded.

(d) Refunding bonds must be authorized by board resolution

or order and be executed and mature as provided by this chapter for

original bonds.

(e) The comptroller shall register the refunding bonds on

surrender and cancellation of the bonds to be refunded.

(f) Instead of issuing bonds to be registered on the

surrender and cancellation of the bonds to be refunded, the

district, in the resolution or order authorizing the issuance of

the refunding bonds, may provide for the sale of the refunding bonds

and the deposit of the proceeds in the place or places at which the

bonds to be refunded are payable. In that case, the refunding bonds

may be issued in an amount sufficient to pay the interest on the

bonds to be refunded to their option date or maturity date, and the

comptroller shall register the refunding bonds without the

surrender and cancellation of the bonds to be refunded. (V.A.C.S.

Art. 8280-340, Sec. 11 (part).)

SECTION 1.05. Subtitle A, Title 6, Special District Local

Laws Code, is amended by adding Chapters 6602, 6603, and 6605 to

read as follows:

CHAPTER 6602. BRAZORIA COUNTY DRAINAGE DISTRICT NUMBER FIVE

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 6602.001. DEFINITIONS

Sec. 6602.002. NATURE OF DISTRICT

Sec. 6602.003. LEGISLATIVE FINDINGS

Sec. 6602.004. DISTRICT TERRITORY

[Sections 6602.005-6602.050 reserved for expansion]

SUBCHAPTER B. DISTRICT BOARD OF DIRECTORS

Sec. 6602.051. BOARD OF DIRECTORS

[Sections 6602.052-6602.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 6602.101. GENERAL POWERS AND DUTIES

[Sections 6602.102-6602.150 reserved for expansion]

SUBCHAPTER D. FINANCIAL PROVISIONS

Sec. 6602.151. DEPOSITING REVENUE

Sec. 6602.152. RESPONSIBILITY FOR DISTRICT MONEY

[Sections 6602.153-6602.200 reserved for expansion]

SUBCHAPTER E. TAXES

Sec. 6602.201. IMPOSITION OF TAXES

Sec. 6602.202. TAX ASSESSOR-COLLECTOR

CHAPTER 6602. BRAZORIA COUNTY DRAINAGE DISTRICT NUMBER FIVE

SUBCHAPTER A. GENERAL PROVISIONS

Sec.6602.001.DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "Director" means a member of the board.

(3) "District" means the Brazoria County Drainage

District Number Five. (New.)

Sec.6602.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district under Section 59, Article

XVI, Texas Constitution. (Acts 41st Leg., 1st C.S., Ch. 36, Secs. 2

(part), 5 (part).)

Sec.6602.003.LEGISLATIVE FINDINGS. The legislature finds

that:

(1) providing the district with the powers authorized

by Section 59, Article XVI, Texas Constitution, benefits the

citizens and property in the district;

(2) all property in the district benefits;

(3) all property the district benefits is included in

the district; and

(4) the district is essential to accomplish the

purposes of Section 59, Article XVI, Texas Constitution. (Acts

41st Leg., 1st C.S., Ch. 36, Secs. 2 (part), 11 (part).)

Sec.6602.004.DISTRICT TERRITORY. The district is

composed of the territory described by Section 1, Chapter 36, Acts

of the 41st Legislature, 1st Called Session, 1929, as that

territory may have been modified under:

(1) Subchapter I, Chapter 56, Water Code, before

September 1, 1995;

(2) Subchapter J, Chapter 56, Water Code;

(3) Subchapter J, Chapter 49, Water Code; or

(4) other law. (New.)

[Sections 6602.005-6602.050 reserved for expansion]

SUBCHAPTER B. DISTRICT BOARD OF DIRECTORS

Sec.6602.051.BOARD OF DIRECTORS. (a) The board consists

of three directors.

(b) The board has all the powers conferred on a board of

directors under Chapter 56, Water Code. (Acts 41st Leg., 1st C.S.,

Ch. 36, Sec. 4 (part); Acts 67th Leg., 1st C.S., Ch. 8, Sec. 57(a)

(part).)

[Sections 6602.052-6602.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.6602.101.GENERAL POWERS AND DUTIES. The district has

the rights, powers, privileges, and duties of a drainage district

created under Section 59, Article XVI, Texas Constitution,

including the right to:

(1) impose taxes; and

(2) issue bonds. (Acts 41st Leg., 1st C.S., Ch. 36,

Secs. 5 (part), 7 (part), 11 (part).)

[Sections 6602.102-6602.150 reserved for expansion]

SUBCHAPTER D. FINANCIAL PROVISIONS

Sec.6602.151.DEPOSITING REVENUE. (a) Tax collections,

after deductions of discounts and fees for collecting taxes, shall

be deposited in the depository of the district. The collections may

be withdrawn as directed by the board.

(b) All other district income shall be deposited in the

district depository. (Acts 41st Leg., 1st C.S., Ch. 36, Sec. 7A(f);

Acts 67th Leg., 1st C.S., Ch. 8, Sec. 57(c) (part).)

Sec.6602.152.RESPONSIBILITY FOR DISTRICT MONEY. (a) The

board is responsible for all money the district receives.

(b) The county judge does not have a duty to countersign any

warrants or checks. The county treasurer and the county auditor do

not have a duty to perform any services for the district. (Acts

41st Leg., 1st C.S., Ch. 36, Sec. 7A(g); Acts 67th Leg., 1st C.S.,

Ch. 8, Sec. 57(d) (part).)

[Sections 6602.153-6602.200 reserved for expansion]

SUBCHAPTER E. TAXES

Sec.6602.201.IMPOSITION OF TAXES. Not later than October

1 of each year, for the benefit of the district, the board shall:

(1) impose a tax on all property subject to taxation in

the district to:

(A) meet the requirements of district bonds; and

(B) provide for district maintenance and

operating expenses; and

(2) immediately certify the tax rate to the

assessor-collector of Brazoria County. (Acts 41st Leg., 1st C.S.,

Ch. 36, Secs. 7A(a), (b) (part); Acts 67th Leg., 1st C.S., Ch. 8,

Secs. 57(b), (c) (part).)

Sec.6602.202.TAX ASSESSOR-COLLECTOR. (a) The tax

assessor-collector of Brazoria County is the tax

assessor-collector for the district.

(b) The tax assessor-collector shall charge and deduct from

payments to the district amounts for the tax assessor-collector's

services as may be agreed on by the tax assessor-collector and the

board. (Acts 41st Leg., 1st C.S., Ch. 36, Secs. 7A(b) (part), (e);

Acts 67th Leg., 1st C.S., Ch. 8, Sec. 57(c) (part).)

CHAPTER 6603. BROOKSHIRE-KATY DRAINAGE DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 6603.001. DEFINITIONS

Sec. 6603.002. NATURE OF DISTRICT

Sec. 6603.003. FINDINGS OF BENEFIT AND PURPOSE

Sec. 6603.004. DISTRICT TERRITORY

[Sections 6603.005-6603.050 reserved for expansion]

SUBCHAPTER B. DISTRICT BOARD OF SUPERVISORS

Sec. 6603.051. COMPOSITION OF BOARD

Sec. 6603.052. QUALIFICATIONS

Sec. 6603.053. SUPERVISORS ELECTION

[Sections 6603.054-6603.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 6603.101. GENERAL POWERS AND DUTIES

Sec. 6603.102. CONSTRUCTION OF DRAINAGE FACILITIES OR

IMPROVEMENTS

Sec. 6603.103. CONSISTENCY OF RULES

Sec. 6603.104. LIMIT ON EMINENT DOMAIN POWER

[Sections 6603.105-6603.150 reserved for expansion]

SUBCHAPTER D. TAXES

Sec. 6603.151. IMPOSITION OF TAXES

Sec. 6603.152. DISTRICT TAX ASSESSOR AND COLLECTOR

[Sections 6603.153-6603.200 reserved for expansion]

SUBCHAPTER E. ENFORCEMENT

Sec. 6603.201. CIVIL PENALTY

Sec. 6603.202. INJUNCTIVE RELIEF

Sec. 6603.203. DAMAGES, COURT COSTS, AND ATTORNEY'S

FEES

Sec. 6603.204. PENALTIES CUMULATIVE

CHAPTER 6603. BROOKSHIRE-KATY DRAINAGE DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.6603.001.DEFINITIONS. In this chapter:

(1) "Board" means the board of supervisors of the

district.

(2) "District" means the Brookshire-Katy Drainage

District.

(3) "Supervisor" means a member of the board.

(V.A.C.S. Art. 8280-249, Sec. 1 (part); New.)

Sec.6603.002.NATURE OF DISTRICT. The district is:

(1) a conservation and reclamation district created

and incorporated in Waller County under Section 59, Article XVI,

Texas Constitution, for the sole purpose of the reclamation and

drainage of the district's overflowed lands and other lands needing

drainage;

(2) a fresh water supply district; and

(3) a municipal corporation. (V.A.C.S. Art. 8280-249,

Secs. 1 (part), 2 (part), 6 (part), 7 (part).)

Sec.6603.003.FINDINGS OF BENEFIT AND PURPOSE. (a) The

district is created to serve a public use and benefit.

(b) All land and other property included in the district

will benefit from the creation of the district and the improvements

the district will purchase, construct, or otherwise acquire.

Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.

8280-249, Secs. 6 (part), 7 (part).)

Sec.6603.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 1, Chapter 203, Acts

of the 57th Legislature, Regular Session, 1961 (Article 8280-249,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) Subchapter J, Chapter 49, Water Code; or

(2) other law.

(b) The legislature finds that the boundaries of the

district as described by Section 1, Chapter 203, Acts of the 57th

Legislature, Regular Session, 1961 (Article 8280-249, Vernon's

Texas Civil Statutes), and the field notes relating to those

boundaries form a closure. A mistake in the field notes or in

copying the field notes in the legislative process does not affect:

(1) the district's organization, existence, or

validity;

(2) the district's authority to take any action

authorized by this chapter and the general laws; or

(3) the legality or operation of the district or the

board.

included in the district as created in 1961 be included in the

boundaries of the district as described by Section 1, Chapter 203,

Acts of the 57th Legislature, Regular Session, 1961 (Article

8280-249, Vernon's Texas Civil Statutes). (V.A.C.S. Art. 8280-249,

Sec. 1A; New.)

[Sections 6603.005-6603.050 reserved for expansion]

SUBCHAPTER B. DISTRICT BOARD OF SUPERVISORS

Sec.6603.051.COMPOSITION OF BOARD. The board consists of

five supervisors. (V.A.C.S. Art. 8280-249, Sec. 3 (part).)

Sec.6603.052.QUALIFICATIONS. A candidate for supervisor

must:

(1) be at least 18 years of age;

(2) own land subject to taxation in the district; and

(3) reside in the area from which the candidate seeks

election. (V.A.C.S. Art. 8280-249, Sec. 3 (part).)

Sec.6603.053.SUPERVISORS ELECTION. (a) For the election

of supervisors, the district is divided into five areas, numbered

one to five.

(b) Each candidate for supervisor must be designated on the

official ballot according to the number of the area in which the

candidate resides.

from all five areas.

(d) The candidate from each area who receives the highest

number of votes for supervisor is elected. (V.A.C.S. Art.

8280-249, Sec. 3 (part).)

[Sections 6603.054-6603.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.6603.101.GENERAL POWERS AND DUTIES. To accomplish

the purposes of Section 6603.002(1), the district has all the

rights, powers, privileges, and duties conferred and imposed by

general law, including Chapters 49 and 53, Water Code, on fresh

water supply districts created under Section 59, Article XVI, Texas

Constitution, including the power to conserve, transport, and

distribute fresh water. (V.A.C.S. Art. 8280-249, Sec. 2 (part).)

Sec. 6603.102. CONSTRUCTION OF DRAINAGE FACILITIES OR

IMPROVEMENTS. (a) Except as provided by Subsection (b), a person

may not construct drainage facilities or improvements on or to

serve a tract of land in the district unless the district has

approved the plans and specifications for the facilities or

improvements.

(b) Plans and specifications for drainage facilities or

improvements located in the corporate limits or the

extraterritorial jurisdiction of a municipality require only the

approval of the municipality if:

(1) the municipality's corporate limits are located in

more than one county;

(2) part of the municipality's corporate limits and

extraterritorial jurisdiction in Waller County is located in the

district;

(3) the municipality has a population of less than

100,000; and

(4) the drainage facilities or improvements are

located outside district-owned property or facilities.

reasonable standards to provide for adequate drainage construction

in accordance with standard engineering practices. The rules and

standards may require the drainage plan to be generally compatible

with the district's master plan.

(d) The district by rule may establish procedures for:

(1) the presentation of plans and specifications to

the district; and

(2) the review and disposition of the plans and

specifications by the district.

(e) The district, after review by its engineer, shall

determine the cost of any drainage facilities or improvements and

recommend to the appropriate governing body with jurisdiction over

the subdivision that a surety bond or other approved security in

that amount for the construction of drainage facilities or

improvements be secured in the name of the governing body. If the

governing body does not secure a bond, the district may secure a

bond for the cost of construction of drainage facilities or

improvements.

(f) The district may refuse to approve plans and

specifications if:

(1) the plans and specifications do not comply with

district rules; or

(2) all applicable fees have not been paid.

(g) This section does not apply to:

(1) agricultural activity; or

(2) any other activity that does not create an

aggregate impervious area of more than one acre.

(h) This section does not limit the authority or

jurisdiction of a municipality or county to regulate plans and

specifications for the construction of drainage facilities or

improvements other than facilities owned or maintained by the

district.

(i) The district's rules and standards for the construction

of drainage facilities or improvements do not apply to a facility or

improvement not owned or maintained by the district in the

corporate limits of a municipality unless the governing body of the

municipality or county requires the person to submit the plans and

specifications for drainage construction to the district.

(V.A.C.S. Art. 8280-249, Sec. 6A.)

Sec.6603.103.CONSISTENCY OF RULES. Rules adopted by the

district must be consistent with Chapters 49 and 53, Water Code.

(V.A.C.S. Art. 8280-249, Sec. 6B(a).)

Sec.6603.104.LIMIT ON EMINENT DOMAIN POWER. The district

may not exercise its power of eminent domain outside the district

without the express consent of the governing body of the

municipality or the commissioners court of the county in which the

territory being condemned is located. (V.A.C.S. Art. 8280-249,

Sec. 6B(b).)

[Sections 6603.105-6603.150 reserved for expansion]

SUBCHAPTER D. TAXES

Sec.6603.151.IMPOSITION OF TAXES. (a) Taxes shall be

imposed under the provisions of the general laws applicable to

fresh water supply districts, including Chapters 49 and 53, Water

Code. The district must hold an election required for the

imposition or increase of taxes in the manner provided by Section

49.107, Water Code.

(b) The district may not impose taxes at a rate that exceeds

75 cents on the $100 valuation of taxable property in the district.

(V.A.C.S. Art. 8280-249, Sec. 5.)

Sec.6603.152.DISTRICT TAX ASSESSOR AND COLLECTOR. (a)

The assessor and collector of taxes for Waller County is the

assessor and collector of taxes for the district.

(b) For services to the district in assessing and collecting

taxes for the district, the assessor and collector may deduct from

all taxes collected on the current year's tax rolls an amount of

money to which the board agrees, not to exceed the amount provided

by the general laws relating to the imposition of ad valorem taxes.

collector may receive compensation in the same manner as the

assessor and collector receives for collecting delinquent state and

county taxes. The assessor and collector may not duplicate a charge

made for costs of suit related to enforcement of state and county

taxes. (V.A.C.S. Art. 8280-249, Sec. 4.)

[Sections 6603.153-6603.200 reserved for expansion]

SUBCHAPTER E. ENFORCEMENT

Sec.6603.201.CIVIL PENALTY. (a) A person who violates

this chapter or a rule adopted under this chapter is liable to the

district for a civil penalty of not less than $10 or more than $200

for each violation.

(b) Each day a violation continues is a separate violation.

(V.A.C.S. Art. 8280-249, Sec. 6C(a) (part).)

Sec.6603.202.INJUNCTIVE RELIEF. (a) The district may sue

in a district court to enjoin a violation or threatened violation of

this chapter or a rule adopted under this chapter.

(b) The district may sue for injunctive relief and a civil

penalty in the same proceeding. (V.A.C.S. Art. 8280-249, Sec.

6C(b).)

Sec.6603.203.DAMAGES, COURT COSTS, AND ATTORNEY'S FEES.

If the district sues to recover a civil penalty or for injunctive

relief under this chapter, or to recover any fee or charge under

this chapter, the court may include in any final judgment in favor

of the district an award for damages, the recovery of court costs,

and reasonable attorney's fees. (V.A.C.S. Art. 8280-249, Sec.

6C(c).)

Sec.6603.204.PENALTIES CUMULATIVE. A penalty under this

subchapter is in addition to any other penalty authorized by law.

(V.A.C.S. Art. 8280-249, Sec. 6C(a) (part).)

CHAPTER 6605. BRAZORIA COUNTY DRAINAGE DISTRICT NO. 8

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 6605.001. DEFINITIONS

Sec. 6605.002. NATURE OF DISTRICT

Sec. 6605.003. LEGISLATIVE FINDINGS

Sec. 6605.004. DISTRICT TERRITORY

[Sections 6605.005-6605.050 reserved for expansion]

SUBCHAPTER B. DISTRICT BOARD OF DIRECTORS

Sec. 6605.051. BOARD OF DIRECTORS

[Sections 6605.052-6605.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 6605.101. GENERAL POWERS AND DUTIES

[Sections 6605.102-6605.150 reserved for expansion]

SUBCHAPTER D. FINANCIAL PROVISIONS

Sec. 6605.151. DEPOSITING REVENUE

Sec. 6605.152. RESPONSIBILITY FOR DISTRICT MONEY

[Sections 6605.153-6605.200 reserved for expansion]

SUBCHAPTER E. TAXES

Sec. 6605.201. IMPOSITION OF TAXES

Sec. 6605.202. TAX ASSESSOR-COLLECTOR

CHAPTER 6605. BRAZORIA COUNTY DRAINAGE DISTRICT NO. 8

SUBCHAPTER A. GENERAL PROVISIONS

Sec.6605.001.DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "Director" means a member of the board.

(3) "District" means the Brazoria County Drainage

District No. 8. (New.)

Sec.6605.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district under Section 59, Article

XVI, Texas Constitution. (Acts 41st Leg., 4th C.S., Ch. 6, S.L.,

Secs. 2 (part), 5 (part).)

Sec.6605.003.LEGISLATIVE FINDINGS. The legislature finds

that:

(1) providing the district with the powers authorized

by Section 59, Article XVI, Texas Constitution, benefits the

citizens and property in the district;

(2) all property in the district benefits;

(3) all property the district benefits is included in

the district; and

(4) the district is essential to accomplish the

purposes of Section 59, Article XVI, Texas Constitution. (Acts

41st Leg., 4th C.S., Ch. 6, S.L., Secs. 2 (part), 11 (part).)

Sec.6605.004.DISTRICT TERRITORY. The district is

composed of the territory described by Section 1, Chapter 6,

Special Laws, Acts of the 41st Legislature, 4th Called Session,

1930, as that territory may have been modified under:

(1) Subchapter I, Chapter 56, Water Code, before

September 1, 1995;

(2) Subchapter J, Chapter 56, Water Code;

(3) Subchapter J, Chapter 49, Water Code; or

(4) other law. (New.)

[Sections 6605.005-6605.050 reserved for expansion]

SUBCHAPTER B. DISTRICT BOARD OF DIRECTORS

Sec.6605.051.BOARD OF DIRECTORS. (a) The board consists

of three directors.

(b) The board has all the powers conferred on a board of

directors under Chapter 56, Water Code. (Acts 41st Leg., 4th C.S.,

Ch. 6, S.L., Sec. 4 (part); Acts 67th Leg., 1st C.S., Ch. 8, Sec.

57(a) (part).)

[Sections 6605.052-6605.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.6605.101.GENERAL POWERS AND DUTIES. The district has

the rights, powers, privileges, and duties of a drainage district

created under Section 59, Article XVI, Texas Constitution,

including the right to:

(1) impose taxes; and

(2) issue bonds. (Acts 41st Leg., 4th C.S., Ch. 6,

S.L., Secs. 5 (part), 7 (part), 11 (part).)

[Sections 6605.102-6605.150 reserved for expansion]

SUBCHAPTER D. FINANCIAL PROVISIONS

Sec.6605.151.DEPOSITING REVENUE. (a) Tax collections,

after deductions of discounts and fees for collecting taxes, shall

be deposited in the depository of the district. The collections may

be withdrawn as directed by the board.

(b) All other district income shall be deposited in the

district depository. (Acts 41st Leg., 4th C.S., Ch. 6, S.L., Sec.

7A(f); Acts 67th Leg., 1st C.S., Ch. 8, Sec. 57(c) (part).)

Sec.6605.152.RESPONSIBILITY FOR DISTRICT MONEY. (a) The

board is responsible for all money the district receives.

(b) The county judge does not have a duty to countersign any

warrants or checks. The county treasurer and the county auditor do

not have a duty to perform any services for the district. (Acts

41st Leg., 4th C.S., Ch. 6, S.L., Sec. 7A(g); Acts 67th Leg., 1st

C.S., Ch. 8, Sec. 57(d) (part).)

[Sections 6605.153-6605.200 reserved for expansion]

SUBCHAPTER E. TAXES

Sec.6605.201.IMPOSITION OF TAXES. Not later than October

1 of each year, for the benefit of the district, the board shall:

(1) impose a tax on all property subject to taxation in

the district to:

(A) meet the requirements of district bonds; and

(B) provide for district maintenance and

operating expenses; and

(2) immediately certify the tax rate to the

assessor-collector of Brazoria County. (Acts 41st Leg., 4th C.S.,

Ch. 6, S.L., Secs. 7A(a), (b) (part); Acts 67th Leg., 1st C.S., Ch.

8, Secs. 57(b), (c) (part).)

Sec.6605.202.TAX ASSESSOR-COLLECTOR. (a) The tax

assessor-collector of Brazoria County is the tax

assessor-collector for the district.

(b) The tax assessor-collector shall charge and deduct from

payments to the district amounts for the tax assessor-collector's

services as may be agreed on by the tax assessor-collector and the

board. (Acts 41st Leg., 4th C.S., Ch. 6, S.L., Secs. 7A(b) (part),

(e); Acts 67th Leg., 1st C.S., Ch. 8, Sec. 57(c) (part).)

SECTION 1.06. Subtitle B, Title 6, Special District Local

Laws Code, is amended by adding Chapters 6902, 6903, 6904, 6905, and

6906 to read as follows:

CHAPTER 6902. CRANE COUNTY WATER DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 6902.001. DEFINITIONS

Sec. 6902.002. NATURE OF DISTRICT

Sec. 6902.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 6902.004. DISTRICT TERRITORY

Sec. 6902.005. SUFFICIENT AUTHORITY FOR ENTITIES TO

ACT

[Sections 6902.006-6902.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 6902.051. COMPOSITION OF BOARD

Sec. 6902.052. TERMS

Sec. 6902.053. QUALIFICATIONS FOR OFFICE

Sec. 6902.054. EX OFFICIO DIRECTORS

Sec. 6902.055. VACANCY

Sec. 6902.056. REMOVAL FROM OFFICE

Sec. 6902.057. QUORUM

Sec. 6902.058. BOARD RESOLUTIONS; VOTING REQUIREMENTS

Sec. 6902.059. OFFICERS AND ASSISTANTS

Sec. 6902.060. OFFICER DUTIES

Sec. 6902.061. MEETINGS

Sec. 6902.062. PERSONAL LIABILITY OF DIRECTORS

[Sections 6902.063-6902.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 6902.101. GENERAL POWERS

Sec. 6902.102. AUTHORITY TO SUE AND BE SUED

Sec. 6902.103. SEAL

Sec. 6902.104. BYLAWS; RULES

Sec. 6902.105. GIFTS AND GRANTS

Sec. 6902.106. OFFICE

Sec. 6902.107. EMPLOYEES, AGENTS, AND OFFICERS

Sec. 6902.108. WATER CONSERVATION PROGRAM

Sec. 6902.109. WATER PERMITS

Sec. 6902.110. GENERAL AUTHORITY OF PUBLIC AGENCIES

AND POLITICAL SUBDIVISIONS TO

CONTRACT WITH DISTRICT

Sec. 6902.111. CONTRACTS TO SUPPLY WATER

Sec. 6902.112. SOURCES FOR WATER; ACQUISITION OF LAND;

STORAGE CAPACITY

Sec. 6902.113. ACQUISITION, DISPOSAL, AND MANAGEMENT

OF PROPERTY

Sec. 6902.114. CONSTRUCTION CONTRACTS

Sec. 6902.115. CONVEYANCE OF LAND TO DISTRICT

Sec. 6902.116. SURPLUS PROPERTY

Sec. 6902.117. EMINENT DOMAIN

Sec. 6902.118. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 6902.119. RIGHTS-OF-WAY; EASEMENTS

[Sections 6902.120-6902.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 6902.151. TAX COLLECTION

Sec. 6902.152. ADVISORY DUTIES OF CRANE COUNTY AUDITOR

Sec. 6902.153. DISTRICT MONEY

Sec. 6902.154. DEPOSITORY

Sec. 6902.155. INVESTMENT OF DISTRICT MONEY

Sec. 6902.156. DISTRICT FACILITIES EXEMPT FROM

TAXATION AND ASSESSMENT

[Sections 6902.157-6902.200 reserved for expansion]

SUBCHAPTER E. GENERAL BOND PROVISIONS

Sec. 6902.201. AUTHORITY TO ISSUE BONDS

Sec. 6902.202. FORM OF BONDS

Sec. 6902.203. MATURITY

Sec. 6902.204. ELECTION FOR BONDS PAYABLE FROM

PROPERTY TAXES

Sec. 6902.205. BONDS SECURED BY REVENUE; ADDITIONAL

BONDS

Sec. 6902.206. BONDS PAYABLE FROM PROPERTY TAXES

Sec. 6902.207. ADDITIONAL SECURITY

Sec. 6902.208. TRUST INDENTURE

Sec. 6902.209. CHARGES FOR DISTRICT SERVICES

Sec. 6902.210. USE OF BOND PROCEEDS

Sec. 6902.211. APPOINTMENT OF RECEIVER

Sec. 6902.212. LIMITATION ON RIGHTS OF HOLDERS

Sec. 6902.213. BONDS EXEMPT FROM TAXATION

Sec. 6902.214. EXCLUSION OF TERRITORY AFTER ISSUANCE

OF BONDS

[Sections 6902.215-6902.250 reserved for expansion]

SUBCHAPTER F. REFUNDING BONDS

Sec. 6902.251. AUTHORITY TO ISSUE REFUNDING BONDS;

APPLICABILITY OF LAW RELATING TO

OTHER BONDS

Sec. 6902.252. TERMS OF ISSUANCE OF REFUNDING BONDS

Sec. 6902.253. REGISTRATION OF REFUNDING BONDS BY

COMPTROLLER

Sec. 6902.254. ESCROW AGREEMENT

CHAPTER 6902. CRANE COUNTY WATER DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.6902.001.DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "Director" means a member of the board.

(3) "District" means the Crane County Water District.

(Acts 69th Leg., R.S., Ch. 775, Sec. 2; New.)

Sec.6902.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district created under Section 59,

Article XVI, Texas Constitution. (Acts 69th Leg., R.S., Ch. 775,

Sec. 1 (part).)

Sec.6902.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The accomplishment of the purposes stated in this chapter is for:

(1) the benefit of the people of this state; and

(2) the improvement of their property and industries.

(b) The district, in carrying out the purposes of this

chapter, will be performing an essential public function under the

constitution. (Acts 69th Leg., R.S., Ch. 775, Sec. 22.)

Sec.6902.004.DISTRICT TERRITORY. The district includes

all of the territory in the boundaries of Crane County as the

boundaries of that county existed on January 1, 1985, and as the

district territory may have been modified under:

(1) Subchapter J, Chapter 49, Water Code; or

(2) other law. (Acts 69th Leg., R.S., Ch. 775, Sec. 3;

New.)

Sec.6902.005.SUFFICIENT AUTHORITY FOR ENTITIES TO ACT.

This chapter provides sufficient authority to issue district bonds,

execute contracts and conveyances, and perform any other act or

procedure authorized under this chapter by the district, the City

of Crane, public agencies, special districts, and other political

subdivisions, without reference to other law or a restriction or

limitation contained in other law, except as specifically provided

by this chapter. (Acts 69th Leg., R.S., Ch. 775, Sec. 26 (part).)

[Sections 6902.006-6902.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.6902.051.COMPOSITION OF BOARD. The district is

governed by a board composed of five directors appointed by the

Commissioners Court of Crane County. The directors occupy numbered

places on the board, with the places numbered as Places 1, 2, 3, 4,

and 5. (Acts 69th Leg., R.S., Ch. 775, Secs. 4(a), (d).)

Sec.6902.052.TERMS. Each appointed director shall serve

for a term of two years, with the terms of the directors appointed

to occupy Places 1 and 2 expiring on June 1 of each even-numbered

year and the terms of the directors appointed to occupy Places 3, 4,

and 5 expiring on June 1 of each odd-numbered year. (Acts 69th

Leg., R.S., Ch. 775, Secs. 4(b), (e).)

Sec.6902.053.QUALIFICATIONS FOR OFFICE. (a) To be

eligible for appointment as a director, a person must be:

(1) a qualified district voter; and

(2) a district resident.

(b) A director is eligible for reappointment. (Acts 69th

Leg., R.S., Ch. 775, Secs. 4(f), (h).)

Sec.6902.054.EX OFFICIO DIRECTORS. The county judge of

Crane County and the mayor of the City of Crane shall serve as ex

officio directors. The county judge and mayor are entitled to

attend all board meetings and participate in all board proceedings

but are not entitled to vote on matters before the board. (Acts

69th Leg., R.S., Ch. 775, Sec. 4(c).)

Sec.6902.055.VACANCY. The Commissioners Court of Crane

County by appointment shall fill a vacancy on the board for the

unexpired term. (Acts 69th Leg., R.S., Ch. 775, Sec. 4(g).)

Sec.6902.056.REMOVAL FROM OFFICE. After reasonable

notice and a public hearing, the remaining members of the board may

remove a director from office for misfeasance, malfeasance, or

wilful neglect of duty. Reasonable notice and a public hearing are

not required if the director to be removed expressly waives the

notice and hearing in writing. (Acts 69th Leg., R.S., Ch. 775, Sec.

4(i).)

Sec.6902.057.QUORUM. Any three regular directors

constitute a quorum. (Acts 69th Leg., R.S., Ch. 775, Sec. 5(d)

(part).)

Sec.6902.058.BOARD RESOLUTIONS; VOTING REQUIREMENTS. (a)

The district shall act through resolutions adopted by the board.

(b) All regular directors are entitled to vote on matters

before the board.

directors is necessary to adopt a resolution. (Acts 69th Leg.,

R.S., Ch. 775, Sec. 5(d) (part).)

Sec.6902.059.OFFICERS AND ASSISTANTS. (a) The board

shall elect a president, vice president, secretary, and treasurer

at the first meeting of the board in March of each year or at any

time necessary to fill a vacancy.

(b) The board shall elect the president and vice president

from among the directors. The president and vice president shall

serve for terms of one year.

(1) may be held by one person; and

(2) are not required to be held by a director.

(d) The board may appoint as assistant board secretary one

or more persons who are not directors. (Acts 69th Leg., R.S., Ch.

775, Secs. 5(a) (part), (b) (part), (c) (part), (e) (part).)

Sec.6902.060.OFFICER DUTIES. (a) The board president

shall preside at board meetings and perform other duties prescribed

by the board.

(b) The board secretary is the official custodian of the

minutes, books, records, and seal of the board and shall perform

other duties and functions prescribed by the board. An assistant

board secretary may perform any duty or function of the board

secretary.

prescribed by the board. (Acts 69th Leg., R.S., Ch. 775, Secs. 5(a)

(part), (c) (part).)

Sec.6902.061.MEETINGS. The board shall have regular

meetings at times specified by board resolution and shall have

special meetings when called by the board president or by any three

directors. (Acts 69th Leg., R.S., Ch. 775, Sec. 5(f).)

Sec.6902.062.PERSONAL LIABILITY OF DIRECTORS. A director

is not personally liable for any bond issued or contract executed by

the district. (Acts 69th Leg., R.S., Ch. 775, Sec. 5(g).)

[Sections 6902.063-6902.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.6902.101.GENERAL POWERS. The district may exercise

all powers necessary or appropriate to carry out the purposes of

this chapter. (Acts 69th Leg., R.S., Ch. 775, Sec. 7(a).)

Sec.6902.102.AUTHORITY TO SUE AND BE SUED. The district

may sue and be sued in the district's own name. (Acts 69th Leg.,

R.S., Ch. 775, Sec. 7(b).)

Sec.6902.103.SEAL. The board may adopt an official seal.

(Acts 69th Leg., R.S., Ch. 775, Sec. 7(c) (part).)

Sec.6902.104.BYLAWS; RULES. The board may adopt and

enforce bylaws and rules. (Acts 69th Leg., R.S., Ch. 775, Sec. 7(c)

(part).)

Sec.6902.105.GIFTS AND GRANTS. The district may request

and accept any appropriation, grant, allocation, subsidy,

guaranty, aid, service, material, or gift from any person. (Acts

69th Leg., R.S., Ch. 775, Sec. 7(g).)

Sec.6902.106.OFFICE. The district may operate and

maintain an office. (Acts 69th Leg., R.S., Ch. 775, Sec. 7(h)

(part).)

Sec.6902.107.EMPLOYEES, AGENTS, AND OFFICERS. The

district may appoint and determine the duties, tenure,

qualifications, and compensation of the officers, employees,

agents, and professional advisors and counselors of the district,

including financial consultants, accountants, attorneys,

architects, engineers, appraisers, and financial experts the board

considers necessary. (Acts 69th Leg., R.S., Ch. 775, Sec. 7(h)

(part).)

Sec.6902.108.WATER CONSERVATION PROGRAM. (a) In this

section, "program of water conservation" means the practices,

techniques, and technologies that will reduce water consumption,

reduce water loss or waste, improve efficiency in water use, or

increase water recycling and reuse so that a water supply is

available for future uses.

(b) The district shall adopt and implement a program of

water conservation consistent with rules and criteria adopted and

enforceable by the Texas Commission on Environmental Quality for

similarly situated districts in the region. (Acts 69th Leg., R.S.,

Ch. 775, Sec. 6.)

Sec.6902.109.WATER PERMITS. (a) The district may obtain

water appropriation permits and diversion permits from the Texas

Commission on Environmental Quality.

(b) The district may acquire water appropriation permits

from owners of permits by contract or otherwise. (Acts 69th Leg.,

R.S., Ch. 775, Secs. 8(a), (b).)

Sec. 6902.110. GENERAL AUTHORITY OF PUBLIC AGENCIES AND

POLITICAL SUBDIVISIONS TO CONTRACT WITH DISTRICT. A municipality,

public agency, special district, or other political subdivision of

the state, including the City of Crane, may enter into a contract or

agreement with the district for a water supply, or for any purpose

relating to the district's powers or functions, on terms agreed to

by the parties. Approval, notice, consent, or an election is not

required in connection with a contract or agreement. (Acts 69th

Leg., R.S., Ch. 775, Sec. 9(c) (part).)

Sec.6902.111.CONTRACTS TO SUPPLY WATER. (a) The district

may contract with municipalities, public agencies, special

districts, other political subdivisions of the state, and other

entities, including the City of Crane, for supplying water to them.

The district may sell water inside or outside the boundaries of the

district.

(b) A contract with the City of Crane must provide that the

city will pay to the district a portion of any surplus revenue from

the operation of the city's water system.

agency, special district, or other political subdivision of the

state for the rental or leasing of or for the operation of the water

production, water field, water supply, water filtration or

purification, or water supply facilities of the entity on the

consideration agreed to by the district and the entity.

(d) A contract may include the terms and be for the time

agreed to by the parties.

(e) A contract may provide that it will continue in effect

until bonds specified in it and refunding bonds issued in lieu of

those bonds are paid.

(f) The district may contract with the City of Crane for the

operation of the district's water facilities by the City of Crane.

An election is not required in connection with the contract. (Acts

69th Leg., R.S., Ch. 775, Secs. 9(b) (part), 19.)

Sec. 6902.112. SOURCES FOR WATER; ACQUISITION OF LAND;

STORAGE CAPACITY. (a) The district may acquire or construct inside

or outside the district one or more reservoirs and any work, water

well, water field, pump, plant, transmission line, or other

facility necessary or useful to divert, impound, drill for, store,

treat, or transport water to the City of Crane and others for

municipal, domestic, industrial, mining, oil flooding, or other

useful purposes.

(b) The district may acquire land or an interest in land,

inside or outside the district, for any work, water well, water

field, pump, plant, or other facility necessary or useful to

divert, impound, drill for, store, treat, or transport water to the

City of Crane and others for municipal, domestic, industrial,

mining, oil flooding, or any other useful purpose.

rights in and to storage and storage capacity in any reservoir

constructed or to be constructed by any person.

(d) The district may develop or otherwise acquire

underground sources of water. (Acts 69th Leg., R.S., Ch. 775, Secs.

8(c), 9(a) (part), (b) (part), 10 (part).)

Sec. 6902.113. ACQUISITION, DISPOSAL, AND MANAGEMENT OF

PROPERTY. The district may:

(1) acquire, own, rent, lease, accept, hold, or

dispose of property or an interest in property, including a right or

easement, by any means, including purchase, exchange, gift,

assignment, condemnation, sale, or lease, to perform a duty or

exercise a power under this chapter;

(2) sell, assign, lease, encumber, mortgage, or

otherwise dispose of property or an interest in property, and

release or relinquish a right, title, claim, lien, interest,

easement, or demand by public or private sale, with or without

public bidding, notwithstanding any other law;

(3) lease or rent any land, buildings, structures, or

facilities to carry out the purposes of this chapter; and

(4) manage, operate, or improve property. (Acts 69th

Leg., R.S., Ch. 775, Secs. 7(e), (f).)

Sec.6902.114.CONSTRUCTION CONTRACTS. (a) The district

may award a construction contract that requires an expenditure of

more than $5,000 only after publication of notice to bidders once

each week for two consecutive weeks in a newspaper of general

circulation in the district.

(b) The notice is sufficient if it states:

(1) the time and place for opening the bids;

(2) the general nature of the work to be done or the

material, equipment, or supplies to be purchased; and

(3) the place where the terms of bidding and copies of

the plans and specifications may be obtained. (Acts 69th Leg.,

R.S., Ch. 775, Sec. 13.)

Sec.6902.115.CONVEYANCE OF LAND TO DISTRICT. A

municipality, public agency, special district, or other political

subdivision of the state, including the City of Crane, may lease,

sell, or otherwise convey its land or an interest in land to the

district for consideration that the parties agree is adequate.

Approval, notice, consent, or an election is not required in

connection with a conveyance, contract, or agreement. (Acts 69th

Leg., R.S., Ch. 775, Sec. 9(c) (part).)

Sec.6902.116.SURPLUS PROPERTY. Subject to the terms of a

resolution or deed of trust authorizing or securing bonds issued by

the district, the district may sell, lease, rent, trade, or

otherwise dispose of property the board considers not needed for

district purposes. (Acts 69th Leg., R.S., Ch. 775, Sec. 10 (part).)

Sec.6902.117.EMINENT DOMAIN. (a) To carry out a power

conferred by this chapter, the district may exercise the power of

eminent domain to acquire the fee simple title to land or any other

interest in land and other property and easements, including water

rights, land, or any interest in land needed for water fields, water

wells, or reservoir and dam and flood easements above the probable

high water line around any reservoirs inside or outside the

district.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code.

interest in land, other property, and easements to be acquired.

(Acts 69th Leg., R.S., Ch. 775, Secs. 11(a), (b).)

Sec.6902.118.COST OF RELOCATING OR ALTERING PROPERTY.

(a) In this section, "sole expense" means the actual cost of the

relocating, raising, lowering, rerouting, or change in grade or

alteration of construction required under Subsection (b) to provide

a comparable replacement without enhancing the facility, after

deducting the net salvage value derived from the old facility.

(b) If the district's exercise of eminent domain, police

power, or of another power conferred by this chapter requires

relocating, raising, lowering, rerouting, or changing the grade of,

or altering the construction of any railroad, electric

transmission, telegraph, or telephone line, conduit, pole,

property or facility, or pipeline, the action shall be accomplished

at the sole expense of the district. (Acts 69th Leg., R.S., Ch.

775, Sec. 11(c).)

Sec.6902.119.RIGHTS-OF-WAY; EASEMENTS. The district

has necessary or useful rights-of-way and easements along, over,

under, and across all public, state, municipal, and county roads,

highways, and places for any of its purposes. The district shall

restore a facility used by the district to its previous condition as

nearly as possible at the sole expense of the district as defined by

Section 6902.118(a). (Acts 69th Leg., R.S., Ch. 775, Sec. 12(b).)

[Sections 6902.120-6902.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.6902.151.TAX COLLECTION. The district shall contract

with Crane County to collect property taxes for the district. (Acts

69th Leg., R.S., Ch. 775, Sec. 24(b).)

Sec.6902.152.ADVISORY DUTIES OF CRANE COUNTY AUDITOR.

The Crane County auditor shall serve as an advisor to the district,

without remuneration, for the preparation of the district's budget

and the imposition of the district's property taxes. (Acts 69th

Leg., R.S., Ch. 775, Sec. 24(c).)

Sec.6902.153.DISTRICT MONEY. The district may acquire,

hold, use, and dispose of its money from any source. (Acts 69th

Leg., R.S., Ch. 775, Sec. 7(d) (part).)

Sec.6902.154.DEPOSITORY. (a) The board may select and

shall designate one or more banks inside or outside the district to

serve as the depository for the district's money.

(b) The district's money shall be deposited in the

depository designated by the board, except that:

(1) bond proceeds and money pledged to pay bonds, to

the extent provided in a resolution or trust indenture authorizing

or securing district bonds, may be deposited with another bank or

trustee named in the bond resolution or trust indenture; and

(2) money shall be remitted to each paying agent for

the payment of principal of and interest on the bonds.

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. (Acts 69th Leg., R.S., Ch. 775, Secs.

7(d) (part), 20(a), (b), (c).)

Sec.6902.155.INVESTMENT OF DISTRICT MONEY. The board may

invest district money as determined by the board or in the manner

provided by a resolution or trust indenture authorizing or securing

district bonds. (Acts 69th Leg., R.S., Ch. 775, Sec. 20(d).)

Sec. 6902.156. DISTRICT FACILITIES EXEMPT FROM TAXATION AND

ASSESSMENT. The district is not required to pay a tax or assessment

on its facilities or any part of its facilities. (Acts 69th Leg.,

R.S., Ch. 775, Sec. 23 (part).)

[Sections 6902.157-6902.200 reserved for expansion]

SUBCHAPTER E. GENERAL BOND PROVISIONS

Sec.6902.201.AUTHORITY TO ISSUE BONDS. (a) The district

may issue bonds to carry out any power provided by this chapter.

The bonds must be authorized by a board resolution.

(b) The bonds may be payable from and secured by revenue or

property taxes, or both revenue and property taxes, of the

district, in the manner and under the terms of the resolution

authorizing the issuance of the bonds.

payment of the bonds, and provide for the rights of the bondholders,

in the manner and to the extent permitted by this chapter. (Acts

69th Leg., R.S., Ch. 775, Secs. 7(i), 14(a), (b) (part), (c), (e)

(part).)

Sec.6902.202.FORM OF BONDS. (a) A district bond must be:

(1) issued in the district's name;

(2) signed by the president or vice president;

(3) attested by the secretary; and

(4) bear the district seal.

(b) The district seal may be impressed or printed on the

bonds. (Acts 69th Leg., R.S., Ch. 775, Sec. 14(b) (part).)

Sec.6902.203.MATURITY. District bonds must mature not

later than 40 years after the date of their issuance. (Acts 69th

Leg., R.S., Ch. 775, Sec. 14(b) (part).)

Sec. 6902.204. ELECTION FOR BONDS PAYABLE FROM PROPERTY

TAXES. (a) The district may not issue bonds, except refunding

bonds, payable wholly or partly from property taxes unless the

issuance of the bonds is authorized by a majority of the district

voters at an election.

(b) The district may issue bonds not payable wholly or

partly from property taxes without an election.

the board.

(d) A resolution calling a bond election must state:

(1) the time and each place for holding the election;

(2) the purpose for which the bonds are to be issued;

(3) the amount of the bonds;

(4) the form of the ballot; and

(5) other matters considered necessary or advisable by

the board.

(e) The board shall give notice of the election by

publishing a substantial copy of the resolution calling the

election in a newspaper with general circulation in the district

once a week for two consecutive weeks, with the first publication to

be not later than the 14th day before the date of the election.

(Acts 69th Leg., R.S., Ch. 775, Secs. 17(a), (c), (d), (e), (f).)

Sec.6902.205.BONDS SECURED BY REVENUE; ADDITIONAL BONDS.

(a) Bonds issued under this subchapter may be secured by a pledge

of all or part of the district's revenue, or by all or part of the

revenue of one or more district contracts or other revenue or income

specified by board resolution or a trust indenture securing the

bonds. The pledge may reserve the right, under conditions

specified by the pledge, to issue additional bonds that will be on a

parity with or subordinate to the bonds being issued.

(b) The district may issue bonds secured by both property

taxes and revenue of the district. (Acts 69th Leg., R.S., Ch. 775,

Secs. 14(d), (e) (part).)

Sec.6902.206.BONDS PAYABLE FROM PROPERTY TAXES. (a) If

bonds are issued payable wholly or partly from property taxes, the

board must impose a tax on the taxable property in the district in

an amount sufficient to pay the principal of and interest on the

bonds.

(b) The district may adopt the rate of a tax imposed under

Subsection (a) after giving consideration to the money received

from the pledged revenue that may be available for payment of

principal and interest, to the extent and in the manner permitted by

the resolution authorizing the issuance of the bonds. (Acts 69th

Leg., R.S., Ch. 775, Sec. 14(e) (part).)

Sec.6902.207.ADDITIONAL SECURITY. (a) Bonds not payable

wholly from ad valorem taxes may be additionally secured, at the

discretion of the board, by a deed of trust or mortgage lien on

physical property of the district, franchises, easements, water

rights and appropriation permits, leases, contracts, and all rights

appurtenant to the property, vesting in the trustee power to:

(1) sell the property for the payment of the debt;

(2) operate the property; and

(3) take other action to further secure the bonds.

(b) A purchaser under a sale under the deed of trust lien, if

one is given:

(1) is the absolute owner of property, facilities, and

rights purchased; and

(2) is entitled to maintain and operate the property

and facilities. (Acts 69th Leg., R.S., Ch. 775, Secs. 16(a) (part),

(b), (d).)

Sec.6902.208.TRUST INDENTURE. (a) A bond issued under

this subchapter, including a refunding bond, that is not payable

wholly from property taxes may be additionally secured by a trust

indenture. The trustee may be a bank with trust powers located

inside or outside the state.

(b) A trust indenture, regardless of the existence of the

deed of trust or mortgage lien on the property, may:

(1) provide for the security of the bonds and the

preservation of the trust estate in the manner prescribed by the

board;

(2) provide for amendment or modification of the trust

indenture;

(3) provide for the issuance of bonds to replace lost

or mutilated bonds;

(4) condition the right to spend district money or

sell district property on the approval of a licensed engineer

selected as provided by this chapter; and

(5) provide for the investment of district money.

(Acts 69th Leg., R.S., Ch. 775, Secs. 16(a), (c).)

Sec.6902.209.CHARGES FOR DISTRICT SERVICES. (a) If bonds

payable wholly from revenue are issued, the board shall set the

rates of compensation for water sold and services provided by the

district. The rates must be sufficient to:

(1) pay the expense of operating and maintaining

district facilities;

(2) pay the principal of and interest on the bonds when

due; and

(3) maintain the reserve fund and other funds as

provided in the resolution authorizing the bonds.

(b) If bonds payable partly from revenue are issued, the

board shall set the rate of compensation for water sold and any

other services provided by the district. The rate must be

sufficient to ensure compliance with the resolution authorizing the

bonds or the trust indenture securing the bonds. (Acts 69th Leg.,

R.S., Ch. 775, Sec. 14(f).)

Sec.6902.210.USE OF BOND PROCEEDS. (a) The district may

set aside and use an amount of proceeds from the sale of bonds

issued under this subchapter for:

(1) the payment of interest expected to accrue during

construction not to exceed three years;

(2) a reserve interest and sinking fund; and

(3) other funds provided by the resolution authorizing

the bonds or in the trust indenture.

(b) The district may use proceeds from the sale of the bonds

to pay any expense necessarily incurred in accomplishing the

purpose of the district, including any expense of issuing and

selling the bonds. (Acts 69th Leg., R.S., Ch. 775, Sec. 14(g).)

Sec.6902.211.APPOINTMENT OF RECEIVER. (a) On default or

threatened default in the payment of principal of or interest on

bonds issued under this subchapter that are payable wholly or

partly from revenue, a court may, on petition of the holders of

outstanding bonds, appoint a receiver for the district.

(b) The receiver may collect and receive all district

income, except taxes, employ and discharge district agents and

employees, take charge of money on hand, except money received from

taxes, unless commingled, and manage the proprietary affairs of the

district without the consent of the board.

the sale of water or renew those contracts with the approval of the

court that appointed the receiver.

(d) The court may vest the receiver with any other power or

duty the court finds necessary to protect the bondholders. (Acts

69th Leg., R.S., Ch. 775, Sec. 14(h) (part).)

Sec.6902.212.LIMITATION ON RIGHTS OF HOLDERS. The

resolution authorizing the bonds or the trust indenture securing

the bonds may limit or qualify the rights of the holders of less

than all of the outstanding bonds payable from the same source to

institute or prosecute litigation affecting the district's

property or income. (Acts 69th Leg., R.S., Ch. 775, Sec. 14(h)

(part).)

Sec.6902.213.BONDS EXEMPT FROM TAXATION. A bond issued

under this chapter, the transfer of the bond, and income from the

bond, including profits made on the sale of the bond, are exempt

from taxation in this state. (Acts 69th Leg., R.S., Ch. 775, Sec.

23 (part).)

Sec. 6902.214. EXCLUSION OF TERRITORY AFTER ISSUANCE OF

BONDS. Territory may not be excluded from the district after the

issuance of bonds. (Acts 69th Leg., R.S., Ch. 775, Sec. 17(b).)

[Sections 6902.215-6902.250 reserved for expansion]

SUBCHAPTER F. REFUNDING BONDS

Sec. 6902.251. AUTHORITY TO ISSUE REFUNDING BONDS;

APPLICABILITY OF LAW RELATING TO OTHER BONDS. (a) The district may

issue refunding bonds to refund outstanding bonds issued under this

chapter and interest on those bonds.

(b) The provisions of this chapter relating to the issuance

by the district of other bonds, their security, their approval by

the attorney general, and the remedies of the bondholders apply to

refunding bonds.

(d) The district may also issue refunding bonds under any

other applicable law. (Acts 69th Leg., R.S., Ch. 775, Secs. 15(a),

(c), (e) (part).)

Sec.6902.252.TERMS OF ISSUANCE OF REFUNDING BONDS.

Refunding bonds may:

(1) be issued to refund bonds of more than one series;

(2) combine the pledges for the outstanding bonds for

the security of the refunding bonds; or

(3) be secured by a pledge of other or additional

revenue or mortgage liens. (Acts 69th Leg., R.S., Ch. 775, Sec.

15(b).)

Sec. 6902.253. REGISTRATION OF REFUNDING BONDS BY

COMPTROLLER. (a) The comptroller shall register the refunding

bonds on the surrender and cancellation of the bonds to be refunded.

(b) Instead of issuing bonds to be registered on the

surrender and cancellation of the bonds to be refunded, the

district, in the resolution authorizing the issuance of the

refunding bonds, may provide for the sale of the refunding bonds and

the deposit of the proceeds, together with other money that may be

available, in a bank at which the bonds to be refunded are payable.

In that case, the refunding bonds may be issued in an amount

sufficient to pay the principal of and interest and any required

redemption premium on the bonds to be refunded to any redemption

date or to their maturity date, and the comptroller shall register

the refunding bonds without the surrender and cancellation of the

bonds to be refunded.

the making of firm banking arrangements for the discharge and final

payment or redemption of the bonds to be refunded or to be paid or

redeemed. (Acts 69th Leg., R.S., Ch. 775, Sec. 15(d).)

Sec.6902.254.ESCROW AGREEMENT. (a) The district may

enter into an escrow or similar agreement with any place of payment,

paying agent, or trustee with respect to the safekeeping,

investment, administration, and disposition of a deposit made under

Section 6902.253(b).

(b) A deposit under Section 6902.253(b) may be invested only

in direct obligations of the United States, including obligations

the principal of and interest on which are unconditionally

guaranteed by the United States, that mature and bear interest

payable at the times and in amounts sufficient to provide for the

scheduled payment or redemption of the bonds to be refunded. The

obligations may be in book-entry form.

Subsection (a) if a bond to be refunded is scheduled to be paid or

redeemed on a date later than the next scheduled interest payment

date. (Acts 69th Leg., R.S., Ch. 775, Sec. 15(e) (part).)

CHAPTER 6903. EASTLAND COUNTY WATER SUPPLY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 6903.001. DEFINITIONS

Sec. 6903.002. NATURE OF DISTRICT

Sec. 6903.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

[Sections 6903.004-6903.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS TO DISTRICT

TERRITORY

Sec. 6903.051. DISTRICT TERRITORY

Sec. 6903.052. AUTHORITY TO ANNEX TERRITORY

Sec. 6903.053. PETITION FOR ANNEXATION; BOARD FINDINGS

AND RESOLUTION

Sec. 6903.054. COMMISSIONERS COURT RESOLUTION; HEARING

Sec. 6903.055. ANNEXATION HEARING

Sec. 6903.056. COMMISSIONERS COURT FINDINGS AND

RESOLUTION; ELECTION

Sec. 6903.057. NOTICE OF ANNEXATION ELECTION

Sec. 6903.058. ELECTION RESULTS

Sec. 6903.059. ASSUMPTION OF DEBT; TAXES

Sec. 6903.060. RESTRICTION ON ANNEXATION OF RAILROAD

RIGHT-OF-WAY

[Sections 6903.061-6903.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec. 6903.101. COMPOSITION OF BOARD; TERMS

Sec. 6903.102. QUALIFICATIONS FOR OFFICE

Sec. 6903.103. LOCATION AND NOTICE FOR DIRECTORS

ELECTION; RESULTS

Sec. 6903.104. BALLOT PROCEDURE FOR CANDIDATES

Sec. 6903.105. APPOINTMENT OF SECRETARY AND TREASURER

Sec. 6903.106. VOTE BY BOARD PRESIDENT

Sec. 6903.107. DIRECTOR'S AND TREASURER'S BOND

Sec. 6903.108. COMPENSATION

[Sections 6903.109-6903.150 reserved for expansion]

SUBCHAPTER D. GENERAL POWERS AND DUTIES

Sec. 6903.151. CONSTRUCTION OF DAM

Sec. 6903.152. UNDERGROUND SOURCES OF WATER

Sec. 6903.153. CONSTRUCTION OR ACQUISITION OF PROPERTY

Sec. 6903.154. WATER APPROPRIATION PERMITS

Sec. 6903.155. PURCHASE OF WATER

Sec. 6903.156. SURPLUS PROPERTY

Sec. 6903.157. EMINENT DOMAIN

Sec. 6903.158. PARKS AND RECREATION FACILITIES

Sec. 6903.159. CONSTRUCTION CONTRACTS

Sec. 6903.160. CONTRACTS TO SUPPLY WATER

Sec. 6903.161. CONTRACTS FOR TOLL BRIDGES OR FERRY

SERVICE

[Sections 6903.162-6903.200 reserved for expansion]

SUBCHAPTER E. REGULATORY POWERS

Sec. 6903.201. ADOPTION OF RULES

Sec. 6903.202. ENFORCEMENT OF RULES; PENALTY

Sec. 6903.203. NOTICE OF RULE PROVIDING PENALTY

Sec. 6903.204. JUDICIAL NOTICE OF RULES

Sec. 6903.205. ENFORCEMENT BY PEACE OFFICERS

[Sections 6903.206-6903.250 reserved for expansion]

SUBCHAPTER F. GENERAL FINANCIAL PROVISIONS

Sec. 6903.251. DEPOSITORY

Sec. 6903.252. TAX ASSESSOR AND COLLECTOR

Sec. 6903.253. PROJECTS EXEMPT FROM ASSESSMENT OR

TAXATION

[Sections 6903.254-6903.300 reserved for expansion]

SUBCHAPTER G. BONDS

Sec. 6903.301. AUTHORITY TO ISSUE BONDS

Sec. 6903.302. FORM OF BONDS

Sec. 6903.303. MATURITY

Sec. 6903.304. ELECTION FOR BONDS PAYABLE FROM AD

VALOREM TAXES

Sec. 6903.305. BONDS PAYABLE FROM REVENUE

Sec. 6903.306. BONDS PAYABLE FROM AD VALOREM TAXES

Sec. 6903.307. TAX AND RATE REQUIREMENTS

Sec. 6903.308. ADDITIONAL SECURITY

Sec. 6903.309. USE OF BOND PROCEEDS

Sec. 6903.310. APPOINTMENT OF RECEIVER

Sec. 6903.311. REFUNDING BONDS

Sec. 6903.312. BONDS EXEMPT FROM TAXATION

CHAPTER 6903. EASTLAND COUNTY WATER SUPPLY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.6903.001.DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the

district.

(2) "Commissioners court" means the Commissioners

Court of Eastland County.

(3) "Director" means a member of the board.

(4) "District" means the Eastland County Water Supply

District. (Acts 51st Leg., R.S., Ch. 465, Sec. 1 (part); New.)

Sec.6903.002.NATURE OF DISTRICT. The district is created

under Section 59, Article XVI, Texas Constitution. (Acts 51st

Leg., R.S., Ch. 465, Sec. 1 (part).)

Sec.6903.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

All land in the district will benefit from the improvement to be

acquired and constructed by the district.

(b) 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. The district, in

carrying out the purposes of this chapter, will be performing an

essential public function under the Texas Constitution. (Acts 51st

Leg., R.S., Ch. 465, Secs. 2 (part), 19 (part).)

[Sections 6903.004-6903.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS TO DISTRICT

TERRITORY

Sec.6903.051.DISTRICT TERRITORY. The district is

composed of the territory in the city of Ranger on May 26, 1949, and

the territory in the city of Eastland that was added to the district

before June 8, 1953. The district's territory may have been

modified under:

(1) this subchapter or its predecessor statute,

Section 5, Chapter 465, Acts of the 51st Legislature, Regular

Session, 1949;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law. (Acts 51st Leg., R.S., Ch. 465, Secs. 2

(part), 3(a) (part); New.)

Sec.6903.052.AUTHORITY TO ANNEX TERRITORY. Territory,

whether contiguous to the district or not, and inside or outside

Eastland County, may be annexed to the district in the manner

provided by this subchapter. (Acts 51st Leg., R.S., Ch. 465, Sec. 5

(part).)

Sec. 6903.053. PETITION FOR ANNEXATION; BOARD FINDINGS AND

RESOLUTION. (a) The board may annex territory under this

subchapter if a petition requesting annexation is signed by 50

registered voters of the territory to be annexed who own taxable

property in that territory, or a majority of the registered voters

of that territory who own taxable property in that territory, and is

filed with the board. The petition must describe the territory to

be annexed by metes and bounds, or otherwise, except that if the

territory is the same as that contained in a municipality, the

petition is sufficient if it states that the territory to be annexed

is the territory contained in the municipality.

(b) If the board determines that the petition complies with

Subsection (a), that the annexation would be in the interest of the

district, and that the district will be able to supply water to the

territory, the board shall adopt a resolution:

(1) stating the conditions, if any, under which the

territory may be annexed to the district; and

(2) requesting the commissioners court to annex the

territory to the district.

filed with the commissioners court. (Acts 51st Leg., R.S., Ch. 465,

Secs. 5(a), (b).)

Sec.6903.054.COMMISSIONERS COURT RESOLUTION; HEARING.

The commissioners court shall:

(1) adopt a resolution declaring its intention to call

an election in the territory to submit the proposition of whether

the territory is to be annexed to the district; and

(2) set a time and place to hold a commissioners court

hearing on the question of whether the territory to be annexed will

benefit from the improvements, works, and facilities then owned or

operated or contemplated to be owned or operated by the district.

(Acts 51st Leg., R.S., Ch. 465, Sec. 5(c) (part).)

Sec.6903.055.ANNEXATION HEARING. (a) At least 10 days

before the date of the annexation hearing, notice of the adoption of

the resolution stating the time and place of the hearing and

addressed to the citizens and owners of property in the territory to

be annexed shall be published one time in a newspaper designated by

the commissioners court. The notice must describe the territory in

the same manner in which Section 6903.053(a) requires the petition

to describe the territory.

(b) If a newspaper is not published in the territory to be

annexed, the notice shall be posted in three public places in the

territory.

offer evidence for or against the annexation.

(d) The hearing may proceed in the order and under the rules

prescribed by the commissioners court and may be recessed from time

to time. (Acts 51st Leg., R.S., Ch. 465, Secs. 5(d), (e) (part),

(k).)

Sec. 6903.056. COMMISSIONERS COURT FINDINGS AND

RESOLUTION; ELECTION. If, at the conclusion of the annexation

hearing, the commissioners court finds that all land in the

territory to be annexed will benefit from the present or

contemplated improvements, works, or facilities of the district,

the court shall adopt a resolution that:

(1) calls an election in the territory to be annexed;

and

(2) states the date of the election and the place or

places of holding the election. (Acts 51st Leg., R.S., Ch. 465,

Sec. 5(e) (part).)

Sec.6903.057.NOTICE OF ANNEXATION ELECTION. In addition

to complying with Section 4.004, Election Code, notice of the

annexation election must:

(1) state the conditions under which the territory may

be annexed; or

(2) refer to the resolution of the board for that

purpose. (Acts 51st Leg., R.S., Ch. 465, Sec. 5(f) (part).)

Sec.6903.058.ELECTION RESULTS. (a) The commissioners

court shall issue an order declaring the results of the annexation

election.

(b) If the order shows that a majority of the votes cast are

in favor of annexation, the commissioners court shall annex the

proposed territory to the district. The annexation is

incontestable except within the time for contesting elections under

the general election law.

deed records of the county in which the territory is located. (Acts

51st Leg., R.S., Ch. 465, Sec. 5(h) (part).)

Sec.6903.059.ASSUMPTION OF DEBT; TAXES. (a) In calling

the election on the proposition for annexation of territory, the

commissioners court may include, as a part of the same proposition,

a proposition for:

(1) the territory to assume its part of the

tax-supported bonds of the district then outstanding and those

bonds previously voted but not yet sold; and

(2) an ad valorem tax to be imposed on taxable property

in the territory along with the tax in the rest of the district for

the payment of the bonds.

(b) After territory is annexed to the district, the board

may hold an election in the district as enlarged to determine

whether the district as enlarged shall assume any tax-supported

bonds then outstanding and those previously voted but not yet sold

and impose an ad valorem tax on all taxable property in the district

as enlarged to pay the bonds, unless the proposition is submitted as

provided by Subsection (a) and becomes binding on the territory

annexed.

the same manner as an election under this chapter for the issuance

of bonds. (Acts 51st Leg., R.S., Ch. 465, Secs. 5(i), (j).)

Sec. 6903.060. RESTRICTION ON ANNEXATION OF RAILROAD

RIGHT-OF-WAY. (a) A railroad right-of-way may not be annexed to

the district unless the right-of-way is contained in the limits of a

municipality annexed at the same time or previously annexed to the

district.

(b) A railroad right-of-way that is not in the defined

limits of a municipality will not benefit from improvements, works,

and facilities the district is authorized to construct. (Acts 51st

Leg., R.S., Ch. 465, Sec. 5(c) (part).)

[Sections 6903.061-6903.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec.6903.101.COMPOSITION OF BOARD; TERMS. (a) The board

consists of eight directors.

(b) Voters of the city of Ranger who reside in the district

elect four directors. Voters of the city of Eastland who reside in

the district elect four directors.

directors elected from each city expiring at the same time. (Acts

51st Leg., R.S., Ch. 465, Secs. 3(a) (part), (c) (part), (d)

(part).)

Sec.6903.102.QUALIFICATIONS FOR OFFICE. (a) A director

must reside in the municipality from which elected and own taxable

property in the district.

(b) A member of a municipality's governing body or an

employee of a municipality may not be a director. (Acts 51st Leg.,

R.S., Ch. 465, Secs. 3(a) (part), (c) (part).)

Sec. 6903.103. LOCATION AND NOTICE FOR DIRECTORS ELECTION;

RESULTS. (a) For a regular directors election, there shall be at

least one voting place in each municipality in the district.

(b) Notice of a directors election shall be published in a

newspaper published in each municipality in the district one time

not later than the 10th day before the date of the election.

election results. (Acts 51st Leg., R.S., Ch. 465, Sec. 3(d)

(part).)

Sec.6903.104.BALLOT PROCEDURE FOR CANDIDATES. (a) A

person who wants to have the person's name printed on the ballot as

a candidate for director must present a petition requesting that

action.

(b) The petition must be:

(1) signed by at least 50 residents of the district who

are registered to vote at the election; and

(2) presented to the board's secretary not later than

the 16th day before the date of the election. (Acts 51st Leg.,

R.S., Ch. 465, Sec. 3(e).)

Sec.6903.105.APPOINTMENT OF SECRETARY AND TREASURER. The

board shall appoint a secretary and a treasurer, who are not

required to be directors. The board may combine the offices of

secretary and treasurer. (Acts 51st Leg., R.S., Ch. 465, Sec. 4

(part).)

Sec.6903.106.VOTE BY BOARD PRESIDENT. The president has

the same right to vote as any other director. (Acts 51st Leg.,

R.S., Ch. 465, Sec. 4 (part).)

Sec.6903.107.DIRECTOR'S AND TREASURER'S BOND. (a) Each

director shall give bond in the amount of $5,000 conditioned on the

faithful performance of the director's duties.

(b) The treasurer shall give bond in the amount required by

the board. The treasurer's bond shall be conditioned on the

treasurer's faithful accounting for all money that comes into the

treasurer's custody as treasurer of the district. (Acts 51st Leg.,

R.S., Ch. 465, Secs. 3(a) (part), 4 (part).)

Sec.6903.108.COMPENSATION. Unless the board by

resolution increases the fee to an amount authorized by Section

49.060, Water Code, each director:

(1) shall receive a fee of $5 for attending each board

meeting; and

(2) is also entitled to receive $5 for each day devoted

to the business of the district if the service is expressly approved

by the board. (Acts 51st Leg., R.S., Ch. 465, Sec. 3(g) (part);

New.)

[Sections 6903.109-6903.150 reserved for expansion]

SUBCHAPTER D. GENERAL POWERS AND DUTIES

Sec.6903.151.CONSTRUCTION OF DAM. (a) The district may

impound storm and flood waters and the unappropriated flow waters

at one or more places and in an amount approved by the Texas

Commission on Environmental Quality by constructing one or more

dams inside or outside the district. In exercising its powers under

this subsection, the district shall comply with Subchapters A-D,

Chapter 11, and Subchapter B, Chapter 12, Water Code.

(b) A dam or other works for the impounding of water from a

river under this section may not be constructed until the plans for

the dam or other works are approved by the Texas Commission on

Environmental Quality. (Acts 51st Leg., R.S., Ch. 465, Sec. 6

(part).)

Sec.6903.152.UNDERGROUND SOURCES OF WATER. The district

may develop or otherwise acquire underground sources of water.

(Acts 51st Leg., R.S., Ch. 465, Sec. 6 (part).)

Sec.6903.153.CONSTRUCTION OR ACQUISITION OF PROPERTY.

The district may construct or otherwise acquire all works, plants,

and other facilities necessary or useful for the purpose of

processing water impounded, developed, or otherwise acquired and

transporting it to municipalities and others for municipal,

domestic, and industrial purposes. (Acts 51st Leg., R.S., Ch. 465,

Sec. 6 (part).)

Sec.6903.154.WATER APPROPRIATION PERMITS. The district

may acquire water appropriation permits directly from the Texas

Commission on Environmental Quality or from owners of permits.

(Acts 51st Leg., R.S., Ch. 465, Sec. 16 (part).)

Sec.6903.155.PURCHASE OF WATER. The district may

purchase water or a water supply from any person, including a public

agency. (Acts 51st Leg., R.S., Ch. 465, Sec. 16 (part).)

Sec.6903.156.SURPLUS PROPERTY. The district may sell any

property that, in the opinion of the board, will not be needed for

the conduct of the affairs or business of the district. (Acts 51st

Leg., R.S., Ch. 465, Sec. 6 (part).)

Sec.6903.157.EMINENT DOMAIN. (a) To carry out a power

provided by this chapter, the district may exercise the power of

eminent domain to acquire land and easements inside or outside the

district, including land above the probable high water line around

the reservoirs.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code.

interest in land and easements to be acquired under this section.

(Acts 51st Leg., R.S., Ch. 465, Sec. 7.)

Sec.6903.158.PARKS AND RECREATION FACILITIES. (a) The

district may establish or otherwise provide for public parks and

recreation facilities and may acquire land adjacent to any of its

reservoirs for those purposes.

(b) The district may not use money received from taxation or

from bonds payable wholly or partly from taxation for a purpose

described by Subsection (a). (Acts 51st Leg., R.S., Ch. 465, Sec.

22.)

Sec.6903.159.CONSTRUCTION CONTRACTS. (a) This section

applies only to a construction contract or a contract for the

purchase of material, equipment, or supplies requiring an

expenditure of more than $25,000.

(b) The district shall award a contract to the lowest and

best bidder after publishing notice to bidders once a week for two

weeks in a newspaper published in the district that is designated by

the board.

(1) the time and place for opening the bids;

(2) the general nature of the work to be done or the

material, equipment, or supplies to be purchased; and

(3) the place where and the terms on which copies of

the plans and specifications may be obtained. (Acts 51st Leg.,

R.S., Ch. 465, Sec. 8.)

Sec.6903.160.CONTRACTS TO SUPPLY WATER. (a) The district

may contract with municipalities and others to supply water to

those entities.

(b) The district may contract with a municipality for the

rental or leasing of or for the operation of the water production,

water supply, and water supply facilities of the municipality on

the consideration agreed to by the district and the municipality.

by the parties.

(d) The contract may provide that it will continue in effect

until bonds specified in it and refunding bonds issued in lieu of

the bonds are paid. (Acts 51st Leg., R.S., Ch. 465, Sec. 14.)

Sec.6903.161.CONTRACTS FOR TOLL BRIDGES OR FERRY SERVICE.

(a) The board may contract with a responsible person for:

(1) the construction and operation of a toll bridge

over the district's water; or

(2) ferry service on or over the district's water.

(b) The period of a contract under Subsection (a) may not

exceed:

(1) 20 years under Subsection (a)(1); or

(2) 10 years under Subsection (a)(2).

(1) set reasonable compensation to be charged for

service by the facility;

(2) require from the contracting person an adequate

bond payable to the district in an amount and conditioned as the

board considers to be required; and

(3) provide for forfeiture of the particular franchise

if the license holder fails to render adequate public service.

(Acts 51st Leg., R.S., Ch. 465, Sec. 21(a) (part).)

[Sections 6903.162-6903.200 reserved for expansion]

SUBCHAPTER E. REGULATORY POWERS

Sec.6903.201.ADOPTION OF RULES. The board may adopt

reasonable rules to:

(1) secure, maintain, and preserve the sanitary

condition of water in and water that flows into any reservoir owned

by the district;

(2) prevent waste of or the unauthorized use of water;

and

(3) regulate residence, hunting, fishing, boating,

camping, and any other recreational or business privilege along or

around any district reservoir and the stream leading into the

reservoir, and its tributaries, or any body of land, or easement

owned or controlled by the district. (Acts 51st Leg., R.S., Ch.

465, Sec. 21(a) (part).)

Sec.6903.202.ENFORCEMENT OF RULES; PENALTY. (a) The

district by rule may prescribe reasonable penalties for the

violation of a district rule.

(b) A penalty may consist of:

(1) a fine not to exceed $200;

(2) confinement in jail for a term not to exceed 30

days; or

(3) both the fine and confinement.

any other penalty provided by Texas law. (Acts 51st Leg., R.S., Ch.

465, Sec. 21(b) (part).)

Sec.6903.203.NOTICE OF RULE PROVIDING PENALTY. (a) If

the district adopts a rule that provides a penalty, the district

must publish a substantive statement of the rule and the penalty

once a week for two consecutive weeks in Eastland County.

(b) The statement must be as condensed as possible so that

the act prohibited by the rule can be easily understood.

(d) The notice must state that:

(1) a person who violates the rule is subject to a

penalty; and

(2) the rule is on file in the principal office of the

district, where it may be read by any interested person.

(e) A rule takes effect five days after the date of the

second publication of the statement under this section. (Acts 51st

Leg., R.S., Ch. 465, Sec. 21(b) (part).)

Sec.6903.204.JUDICIAL NOTICE OF RULES. A court shall take

judicial notice of a rule adopted under this subchapter and

published as required by Section 6903.203, and the court shall

consider the rule to be similar in nature to a penal ordinance of a

municipality. (Acts 51st Leg., R.S., Ch. 465, Sec. 21(b) (part).)

Sec.6903.205.ENFORCEMENT BY PEACE OFFICERS. (a) A peace

officer employed by the district or a county peace officer may make

an arrest when necessary to prevent or abate the commission of an

offense:

(1) in violation of a district rule or a law of this

state that occurs or threatens to occur on any land, water, or

easement owned or controlled by the district; or

(2) involving damage to any property owned or

controlled by the district.

(b) A peace officer described by Subsection (a) may make an

arrest under Subsection (a)(2) at any location. (Acts 51st Leg.,

R.S., Ch. 465, Sec. 21(c).)

[Sections 6903.206-6903.250 reserved for expansion]

SUBCHAPTER F. GENERAL FINANCIAL PROVISIONS

Sec.6903.251.DEPOSITORY. (a) Except as provided by

Subsection (i), the board shall designate one or more banks in the

district to serve as depository for the district's money.

(b) District money shall be deposited with a designated

depository bank or banks, except that:

(1) money pledged to pay bonds may be deposited with

the trustee bank named in the trust agreement; and

(2) money shall be remitted to the bank of payment for

the payment of principal of and interest on bonds.

trustee 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) The board shall prescribe the terms of service for

depositories.

(e) Before designating a depository bank, the board shall

issue a notice that:

(1) states the time and place at which the board will

meet to designate a depository bank or banks; and

(2) invites the banks in the district to submit an

application to be designated as a depository.

(f) The notice must be published one time in a newspaper

published in the district and specified by the board.

(g) At the time stated in the notice, the board shall:

(1) consider the application and the management and

condition of each bank that applies; and

(2) designate as a depository the bank or banks that:

(A) offer the most favorable terms for handling

the money; and

(B) the board finds have proper management and

are in condition to handle the money.

(h) Membership on the board of an officer or director of a

bank does not disqualify the bank from being designated as a

depository.

(i) If the board does not receive any applications before

the time stated in the notice, or if the board rejects all

applications, the board shall designate one or more banks located

inside or outside the district on terms that the board finds

advantageous to the district. (Acts 51st Leg., R.S., Ch. 465, Sec.

15.)

Sec.6903.252.TAX ASSESSOR AND COLLECTOR. The board shall

appoint a tax assessor and collector. (Acts 51st Leg., R.S., Ch.

465, Sec. 20(b) (part).)

Sec.6903.253.PROJECTS EXEMPT FROM ASSESSMENT OR TAXATION.

The district is not required to pay a tax or assessment on a project

or any part of a project. (Acts 51st Leg., R.S., Ch. 465, Sec. 19

(part).)

[Sections 6903.254-6903.300 reserved for expansion]

SUBCHAPTER G. BONDS

Sec.6903.301.AUTHORITY TO ISSUE BONDS. (a) The district

may issue bonds to:

(1) provide a source of water supply for

municipalities and other users for municipal, domestic, and

industrial purposes; or

(2) carry out any other power conferred by this

chapter.

(b) The bonds must be authorized by a board resolution.

(Acts 51st Leg., R.S., Ch. 465, Secs. 9(a) (part), (b) (part), (c),

(e) (part).)

Sec.6903.302.FORM OF BONDS. District bonds must be:

(1) issued in the district's name;

(2) signed by the president or vice president; and

(3) attested by the secretary. (Acts 51st Leg., R.S.,

Ch. 465, Sec. 9(b) (part).)

Sec.6903.303.MATURITY. District bonds must mature not

later than 40 years after the date of their issuance. (Acts 51st

Leg., R.S., Ch. 465, Sec. 9(b) (part).)

Sec. 6903.304. ELECTION FOR BONDS PAYABLE FROM AD VALOREM

TAXES. (a) Bonds, other than refunding bonds, payable wholly or

partly from ad valorem taxes may not be issued unless authorized by

a district election at which a majority of the votes cast in each

municipality in the district favor the bond issuance.

(b) The board may order an election under this section

without a petition. The order must specify:

(1) the time and places at which the election will be

held;

(2) the purpose for which the bonds will be issued;

(3) the maximum amount of the bonds;

(4) the maximum maturity of the bonds;

(5) the form of the ballot; and

(6) the presiding judge for each voting place.

substantial copy of the order calling the election in a newspaper

published in the district for two consecutive weeks. The first

publication must be not later than the 21st day before the date of

the election. (Acts 51st Leg., R.S., Ch. 465, Secs. 12(a) (part),

(b).)

Sec.6903.305.BONDS PAYABLE FROM REVENUE. (a) In this

section, "net revenue" means the gross revenue of the district less

the amount necessary to pay the cost of maintaining and operating

the district and its property.

(b) Bonds issued under this subchapter may be secured under

board resolution by a pledge of:

(1) all or part of the district's net revenue;

(2) the net revenue of one or more contracts made

before or after the issuance of the bonds; or

(3) other revenue specified by board resolution.

bonds on a parity with or subordinate to the bonds being issued,

subject to conditions specified by the pledge.

(d) Bonds not payable wholly or partly from ad valorem taxes

may be issued without an election. (Acts 51st Leg., R.S., Ch. 465,

Secs. 9(a) (part), (d), 12(a) (part).)

Sec.6903.306.BONDS PAYABLE FROM AD VALOREM TAXES. The

district may issue bonds payable from:

(1) ad valorem taxes imposed on taxable property in

the district; or

(2) ad valorem taxes and revenue of the district.

(Acts 51st Leg., R.S., Ch. 465, Sec. 9(e) (part).)

Sec.6903.307.TAX AND RATE REQUIREMENTS. (a) If the

district issues bonds payable wholly or partly from ad valorem

taxes, the board shall impose a tax sufficient to pay the bonds and

the interest on the bonds as the bonds and interest become due. The

board may adopt the rate of the tax after considering the money

received from the pledged revenue available for payment of

principal and interest to the extent and in the manner permitted by

the resolution authorizing the issuance of the bonds.

(b) If the district issues bonds payable wholly or partly

from revenue, the board shall set and revise the rates of

compensation for water sold and services rendered by the district.

compensation must be sufficient to:

(1) pay the expense of operating and maintaining the

facilities of the district;

(2) pay the bonds as they mature and the interest as it

accrues; and

(3) maintain the reserve and other funds as provided

by the resolution authorizing the issuance of the bonds.

(d) For bonds payable partly from revenue, the rates of

compensation must be sufficient to assure compliance with the

resolution authorizing the issuance of the bonds. (Acts 51st Leg.,

R.S., Ch. 465, Secs. 9(e) (part), (f).)

Sec.6903.308.ADDITIONAL SECURITY. (a) Bonds, including

refunding bonds, authorized by this subchapter that are not payable

wholly from ad valorem taxes may be additionally secured by a deed

of trust lien on physical property of the district and all

franchises, easements, water rights and appropriation permits,

leases, contracts, and all rights appurtenant to the property,

vesting in the trustee power to:

(1) sell the property for payment of the debt;

(2) operate the property; and

(3) take other action to further secure the bonds.

(b) The deed of trust may:

(1) contain any provision the board prescribes to

secure the bonds and preserve the trust estate;

(2) provide for amendment or modification of the deed

of trust; and

(3) provide for the issuance of bonds to replace lost

or mutilated bonds.

(1) is the owner of the dam or dams and the other

property, including facilities, purchased; and

(2) is entitled to maintain and operate the property,

including facilities. (Acts 51st Leg., R.S., Ch. 465, Sec. 11.)

Sec.6903.309.USE OF BOND PROCEEDS. (a) The district may

set aside an amount of proceeds from the sale of bonds issued under

this subchapter for the payment of interest expected to accrue

during construction and a reserve interest and sinking fund. The

resolution authorizing the bonds may provide for setting aside and

using the proceeds.

(b) The district may use proceeds from the sale of the bonds

to pay any expense necessarily incurred in accomplishing the

purposes of the district. (Acts 51st Leg., R.S., Ch. 465, Sec.

9(g).)

Sec.6903.310.APPOINTMENT OF RECEIVER. (a) On default or

threatened default in the payment of principal of or interest on

bonds issued under this subchapter that are payable wholly or

partly from revenue, a court may, on petition of the holders of 25

percent of the outstanding bonds of the issue in default or

threatened with default, appoint a receiver for the district.

(b) The receiver may collect and receive all district income

except taxes, employ and discharge district agents and employees,

take charge of money on hand, except money received from taxes,

unless commingled, and manage the district's proprietary affairs

without consent or hindrance by the board.

the sale of water or to renew those contracts with the approval of

the court that appointed the receiver.

(d) The court may vest the receiver with any other power or

duty the court finds necessary to protect the bondholders. (Acts

51st Leg., R.S., Ch. 465, Sec. 9(h).)

Sec.6903.311.REFUNDING BONDS. (a) The district may issue

refunding bonds to refund outstanding bonds issued under this

subchapter and interest on those bonds.

(b) Refunding bonds may:

(1) be issued to refund bonds of more than one series;

(2) combine the pledges for the outstanding bonds for

the security of the refunding bonds; or

(3) be secured by a pledge of other or additional

revenue.

issuance of other bonds and the remedies of the holders apply to

refunding bonds.

(d) The comptroller shall register the refunding bonds on

surrender and cancellation of the bonds to be refunded.

(e) Instead of issuing bonds to be registered on the

surrender and cancellation of the bonds to be refunded, the

district, in the resolution authorizing the issuance of the

refunding bonds, may provide for the sale of the refunding bonds and

the deposit of the proceeds in a bank at which the bonds to be

refunded are payable. In that case, the refunding bonds may be

issued in an amount sufficient to pay the interest on the bonds to

be refunded to their option date or maturity date, and the

comptroller shall register the refunding bonds without the

surrender and cancellation of the bonds to be refunded. (Acts 51st

Leg., R.S., Ch. 465, Sec. 10.)

Sec.6903.312.BONDS EXEMPT FROM TAXATION. A bond issued

under this subchapter, the transfer of the bond, and income from the

bond, including profits made on the sale of the bond, are exempt

from taxation in this state. (Acts 51st Leg., R.S., Ch. 465, Sec.

19 (part).)

CHAPTER 6904. AQUILLA WATER SUPPLY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 6904.001. DEFINITIONS

Sec. 6904.002. NATURE OF DISTRICT

Sec. 6904.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

[Sections 6904.004-6904.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS TO DISTRICT

TERRITORY

Sec. 6904.051. DISTRICT TERRITORY

Sec. 6904.052. ANNEXATION OF TERRITORY

Sec. 6904.053. ANNEXATION OF TERRITORY ANNEXED TO

MUNICIPALITY IN DISTRICT

[Sections 6904.054-6904.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec. 6904.101. COMPOSITION OF BOARD

Sec. 6904.102. QUALIFICATIONS FOR OFFICE

Sec. 6904.103. DIRECTORS' ELECTION

Sec. 6904.104. REMOVAL FROM OFFICE

Sec. 6904.105. BOARD RESOLUTIONS; VOTING REQUIREMENTS

Sec. 6904.106. OFFICERS AND ASSISTANTS

Sec. 6904.107. OFFICER DUTIES

Sec. 6904.108. MEETINGS

Sec. 6904.109. PERSONAL LIABILITY OF DIRECTORS

[Sections 6904.110-6904.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES

Sec. 6904.151. DISTRICT POWERS

Sec. 6904.152. PERMITS

Sec. 6904.153. GENERAL AUTHORITY OF PUBLIC AGENCIES

AND POLITICAL SUBDIVISIONS TO

CONTRACT WITH DISTRICT

Sec. 6904.154. CONTRACTS TO SUPPLY WATER

Sec. 6904.155. SOURCES FOR WATER; ACQUISITION OF LAND;

STORAGE CAPACITY

Sec. 6904.156. CONSTRUCTION CONTRACTS

Sec. 6904.157. CONVEYANCE OF LAND TO DISTRICT

Sec. 6904.158. DISPOSAL OF PROPERTY

Sec. 6904.159. EMINENT DOMAIN

Sec. 6904.160. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 6904.161. RIGHTS-OF-WAY; EASEMENTS

Sec. 6904.162. ELECTIONS

[Sections 6904.163-6904.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 6904.201. IMPOSITION OF TAX

Sec. 6904.202. DEPOSITORY

Sec. 6904.203. INVESTMENT OF DISTRICT MONEY

Sec. 6904.204. DISTRICT FACILITIES EXEMPT FROM

TAXATION AND ASSESSMENT

[Sections 6904.205-6904.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec. 6904.251. AUTHORITY TO ISSUE BONDS

Sec. 6904.252. FORM OF BONDS

Sec. 6904.253. MATURITY

Sec. 6904.254. ELECTION FOR BONDS PAYABLE FROM AD

VALOREM TAXES

Sec. 6904.255. BONDS SECURED BY REVENUE; ADDITIONAL

BONDS

Sec. 6904.256. BONDS PAYABLE FROM AD VALOREM TAXES

Sec. 6904.257. ADDITIONAL SECURITY

Sec. 6904.258. TRUST INDENTURE

Sec. 6904.259. CHARGES FOR DISTRICT SERVICES

Sec. 6904.260. USE OF BOND PROCEEDS

Sec. 6904.261. APPOINTMENT OF RECEIVER

Sec. 6904.262. REFUNDING BONDS

Sec. 6904.263. LIMITATION ON RIGHTS OF HOLDERS

Sec. 6904.264. BONDS EXEMPT FROM TAXATION

Sec. 6904.265. DETACHMENT OF DISTRICT TERRITORY AFTER

ISSUANCE OF BONDS

CHAPTER 6904. AQUILLA WATER SUPPLY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.6904.001.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 Aquilla Water Supply

District. (Acts 65th Leg., R.S., Ch. 713, Secs. 1 (part), 3(a)

(part); New.)

Sec.6904.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district created under Section 59,

Article XVI, Texas Constitution. (Acts 65th Leg., R.S., Ch. 713,

Sec. 1 (part).)

Sec.6904.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

All land and taxable property in the city of Hillsboro will benefit

from the works and improvements of the district.

(b) The accomplishment of the purposes stated in this

chapter is for the benefit of the people of this state for the

improvement of their property and industries. The district, in

carrying out the purposes of this chapter, will be performing an

essential public function under the constitution. (Acts 65th Leg.,

R.S., Ch. 713, Secs. 2 (part), 22 (part).)

[Sections 6904.004-6904.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS TO DISTRICT

TERRITORY

Sec.6904.051.DISTRICT TERRITORY. (a) The boundaries of

the district are coextensive with the boundaries of the city of

Hillsboro as those boundaries existed on January 1, 1977, and as the

district territory may have been modified under:

(1) Sections 6904.052 and 6904.053 or their

predecessor statute, Section 6, Chapter 713, Acts of the 65th

Legislature, Regular Session, 1977;

(2) Subchapter J, Chapter 49, Water Code;

(3) Subchapter O, Chapter 51, Water Code, before

September 1, 1995; or

(4) other law.

(b) An invalidity in the fixing of the boundaries of the

city of Hillsboro as they existed on January 1, 1977, does not

affect the boundaries of the district. (Acts 65th Leg., R.S., Ch.

713, Sec. 2 (part); New.)

Sec.6904.052.ANNEXATION OF TERRITORY. (a) Territory may

be annexed to the district as provided by this section or by Section

6904.053.

(b) The board may annex territory or a municipality under

this section only if a petition requesting annexation is signed by

50 voters of the territory or municipality to be annexed, or a

majority of the registered voters of that territory or

municipality, whichever is fewer, and is filed with the board. The

petition must describe the territory to be annexed by metes and

bounds, or otherwise, except that if the territory is the same as

that contained in the boundaries of a municipality, the petition is

sufficient if it states that the territory to be annexed is the

territory contained in the municipal boundaries.

Subsection (b), that the annexation would be in the best interest of

the territory or municipality and the district, and that the

district will be able to supply water or other services to the

territory or municipality, the board shall:

(1) adopt a resolution stating the conditions, if any,

under which the territory or municipality may be annexed to the

district; and

(2) set a time and place to hold a hearing on the

question of whether the territory or municipality to be annexed

will benefit from:

(A) the improvements, works, or facilities owned

or operated or contemplated to be owned or operated by the district;

(B) the other functions of the district.

(d) At least 10 days before the date of the hearing, notice

of the adoption of the resolution stating the time and place of the

hearing shall be published one time in a newspaper of general

circulation in the territory or municipality to be annexed. The

notice must describe the territory in the same manner in which

Subsection (b) requires the petition to describe the territory.

(e) Any interested person may appear at the hearing and

offer evidence for or against the annexation.

(f) The hearing may proceed in the order and under the rules

prescribed by the board and may be recessed from time to time.

(g) If, at the conclusion of the hearing, the board finds

that the property in the territory or municipality will benefit

from the present or contemplated improvements, works, or facilities

of the district, the board shall adopt a resolution making a finding

of the benefit and calling an election in the territory or

municipality to be annexed.

(h) In calling an election on the proposition for annexation

of the territory or municipality, the board may include, as part of

the same proposition or as a separate proposition, a proposition

for:

(1) the territory to assume its part of the

tax-supported bonds of the district then outstanding and those

bonds previously voted but not yet sold; and

(2) an ad valorem tax to be imposed on taxable property

on the territory along with the tax in the rest of the district for

the payment of the bonds.

(i) If a majority of the votes cast at the election are in

favor of annexation, the board by resolution shall annex the

territory to the district.

(j) An annexation under this section is incontestable

except in the manner and within the time for contesting elections

under the Election Code. (Acts 65th Leg., R.S., Ch. 713, Secs. 6(f),

(g), (h), (i).)

Sec. 6904.053. ANNEXATION OF TERRITORY ANNEXED TO

MUNICIPALITY IN DISTRICT. (a) At any time after final passage of

an ordinance or resolution annexing territory to a municipality in

the district, the board may give notice of a hearing on the question

of annexing that territory to the district. The notice is

sufficient if it:

(1) states the date and place of the hearing; and

(2) describes the area proposed to be annexed or

refers to the annexation ordinance or resolution of the

municipality.

(b) The notice must be published one time in a newspaper of

general circulation in the municipality not later than the 10th day

before the date set for the hearing.

territory will benefit from the present or contemplated

improvements, works, or facilities of the district, the board shall

adopt a resolution annexing the territory to the district.

(d) After the territory is annexed to the district, the

board may call an election in the entire district to determine

whether:

(1) the entire district will assume any tax-supported

bonds then outstanding and those bonds previously voted but not yet

sold; and

(2) an ad valorem tax for the payment of the bonds will

be imposed on all taxable property in the district. (Acts 65th Leg.,

R.S., Ch. 713, Secs. 6(a), (b), (c), (d), (e).)

[Sections 6904.054-6904.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec.6904.101.COMPOSITION OF BOARD. (a) The district is

governed by a board of at least five directors. The directors

occupy numbered places on the board.

(b) For each municipality annexed to the district under

Section 6904.052, two places are added to the board, except that the

number of directors may not exceed 11.

limits of the city of Hillsboro. (Acts 65th Leg., R.S., Ch. 713,

Sec. 3(a) (part).)

Sec.6904.102.QUALIFICATIONS FOR OFFICE. (a) To be

eligible to serve as a director, a person must be:

(1) a qualified district voter; and

(2) a district resident.

(b) A director is eligible for reelection. (Acts 65th Leg.,

R.S., Ch. 713, Secs. 3(a) (part), (b).)

Sec.6904.103.DIRECTORS' ELECTION. Directors shall be

elected at an election called for that purpose by the board. (Acts

65th Leg., R.S., Ch. 713, Sec. 3(a) (part).)

Sec.6904.104.REMOVAL FROM OFFICE. After reasonable

notice and a public hearing, the board may remove a director from

office for misfeasance, malfeasance, or wilful neglect of duty.

Reasonable notice and a public hearing are not required if the

director to be removed expressly waives the notice and hearing in

writing. (Acts 65th Leg., R.S., Ch. 713, Sec. 3(c).)

Sec.6904.105.BOARD RESOLUTIONS; VOTING REQUIREMENTS. (a)

The district shall act through resolutions adopted by the board.

(b) All directors are entitled to vote.

is necessary to adopt a resolution. (Acts 65th Leg., R.S., Ch. 713,

Sec. 4(c).)

Sec.6904.106.OFFICERS AND ASSISTANTS. (a) The board

shall elect a president, vice president, secretary, and treasurer

at the first meeting of the newly constituted board after each

directors' election or at any time necessary to fill a vacancy.

(b) The board shall elect the president and vice president

from among the directors.

(1) may be held by one person; and

(2) are not required to be held by a director.

(d) The board may appoint as assistant board secretary one

or more persons who are not directors. (Acts 65th Leg., R.S., Ch.

713, Secs. 4(b) (part), (d) (part).)

Sec.6904.107.OFFICER DUTIES. (a) The board president

shall preside at board meetings and perform other duties prescribed

by the board.

(b) The board secretary is the official custodian of the

minutes, books, records, and seal of the board and shall perform

other duties and functions prescribed by the board. An assistant

board secretary may perform any duty or function of the board

secretary.

prescribed by the board. (Acts 65th Leg., R.S., Ch. 713, Sec. 4(b)

(part).)

Sec.6904.108.MEETINGS. The board shall have regular

meetings at times specified by board resolution and shall have

special meetings when called by the board president or by any two

directors. (Acts 65th Leg., R.S., Ch. 713, Sec. 4(e).)

Sec.6904.109.PERSONAL LIABILITY OF DIRECTORS. A director

is not personally liable for any bond issued or contract executed by

the district. (Acts 65th Leg., R.S., Ch. 713, Sec. 4(f).)

[Sections 6904.110-6904.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES

Sec.6904.151.DISTRICT POWERS. The district may exercise

any power necessary or appropriate to achieve the purposes of this

chapter, including the power to:

(1) sue and be sued, and plead and be impleaded, in its

own name;

(2) adopt an official seal;

(3) adopt and enforce bylaws and rules for the conduct

of its affairs;

(4) acquire, hold, use, and dispose of its receipts

and money from any source;

(5) acquire, own, rent, lease, accept, hold, or

dispose of property, or an interest in property, including a right

or easement, by purchase, exchange, gift, assignment,

condemnation, sale, lease, or otherwise, in performing district

duties or exercising district powers under this chapter;

(6) hold, manage, operate, or improve property;

(7) lease or rent any land, building, structure, or

facility from or to any person;

(8) sell, assign, lease, encumber, mortgage, or

otherwise dispose of property, or an interest in property, and

release or relinquish a right, title, claim, lien, interest,

easement, or demand, regardless of the manner in which acquired,

and conduct a transaction authorized by this subdivision by public

or private sale, with or without public bidding, notwithstanding

any other law;

(9) issue bonds, provide for and secure the payment of

the bonds, and provide for the rights of the holders of the bonds in

the manner and to the extent authorized by this chapter;

(10) request and accept an appropriation, grant,

allocation, subsidy, guarantee, aid, service, material, or gift

from any source, including the federal government, the state, a

public agency, or a political subdivision;

(11) operate and maintain an office;

(12) appoint and determine the duties, tenure,

qualifications, and compensation of district officers and

employees, as well as any agent, professional advisor, or

counselor, including any financial consultant, accountant,

attorney, architect, engineer, appraiser, or financing expert,

considered necessary or advisable by the board; and

(13) exercise any power granted by Chapter 30, Water

Code, to water districts created under Section 59, Article XVI,

Texas Constitution. (Acts 65th Leg., R.S., Ch. 713, Sec. 5 (part).)

Sec.6904.152.PERMITS. (a) The district may obtain

through appropriate proceedings permits from the Texas Commission

on Environmental Quality.

(b) The district may acquire water appropriation permits

from owners of permits by contract or otherwise. (Acts 65th Leg.,

R.S., Ch. 713, Sec. 7 (part).)

Sec. 6904.153. GENERAL AUTHORITY OF PUBLIC AGENCIES AND

POLITICAL SUBDIVISIONS TO CONTRACT WITH DISTRICT. A public agency

or political subdivision of this state may enter into a contract or

agreement with the district, on terms agreed to by the parties, for

any purpose relating to the district's powers or functions.

Approval, notice, consent, or an election is not required in

connection with a contract or agreement. (Acts 65th Leg., R.S., Ch.

713, Sec. 8(b) (part).)

Sec.6904.154.CONTRACTS TO SUPPLY WATER. (a) The district

may contract with public agencies, political subdivisions, and

others to supply water. The district may sell water inside and

outside the boundaries of the district.

(b) The district may contract with a public agency or

political subdivision for the rental or leasing of or for the

operation of the water production, water supply, water filtration

or purification, and water supply facilities of the entity on the

consideration agreed to by the district and the entity.

the parties.

(d) A contract may provide that it will continue in effect

until bonds specified in it and refunding bonds issued in lieu of

the bonds are paid.

(e) The district may contract with the City of Hillsboro for

the operation of the district's water facilities by the city. An

election is not required in connection with this contract. (Acts

65th Leg., R.S., Ch. 713, Secs. 8(a) (part), (b) (part), 18 (part).)

Sec. 6904.155. SOURCES FOR WATER; ACQUISITION OF LAND;

STORAGE CAPACITY. (a) The district may acquire, construct, or

develop inside or outside the district sources for water, including

reservoirs or wells, and any work, plant, transmission line, or

other facility necessary or useful to develop, divert, impound,

store, drill for, pump, treat, or transport water, including

underground water, to the City of Hillsboro and others for

municipal, domestic, industrial, mining, oil flooding, or any other

useful purpose.

(b) The district may acquire land, or an interest in land,

inside or outside the district for any work, plant, or other

facility necessary or useful to divert, impound, store, drill for,

pump, treat, or transport water for municipal, domestic,

industrial, mining, oil flooding, or any other useful purpose.

rights in and to storage and storage capacity in any reservoir

constructed or to be constructed by any person or from the United

States. (Acts 65th Leg., R.S., Ch. 713, Secs. 7 (part), 8(a)

(part), 9 (part).)

Sec.6904.156.CONSTRUCTION CONTRACTS. (a) The district

may award a construction contract that requires an expenditure of

more than $5,000 only after publication of notice to bidders once

each week for two weeks in a newspaper of general circulation in the

district.

(b) The notice is sufficient if it states:

(1) the time and place for opening the bids;

(2) the general nature of the work to be done;

(3) the material, equipment, or supplies to be

purchased; and

(4) where the terms of bidding and copies of the plans

and specifications may be obtained. (Acts 65th Leg., R.S., Ch. 713,

Sec. 11.)

Sec.6904.157.CONVEYANCE OF LAND TO DISTRICT. A public

agency or political subdivision of this state may lease, sell, or

otherwise convey its land or an interest in its land to the district

for any consideration that the parties agree is adequate.

Approval, notice, consent, or an election is not required in

connection with a conveyance, contract, or agreement. (Acts 65th

Leg., R.S., Ch. 713, Sec. 8(b) (part).)

Sec.6904.158.DISPOSAL OF PROPERTY. Subject to the terms

of a resolution or deed of trust authorizing or securing bonds

issued by the district, the district may sell, lease, rent, trade,

or otherwise dispose of property under terms considered by the

board to be consistent with district purposes. (Acts 65th Leg.,

R.S., Ch. 713, Sec. 9 (part).)

Sec.6904.159.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, or any other

interest in land, and other property and easements, inside or

outside the district, including land or an interest in land needed

for:

(1) a well; or

(2) a reservoir, dam, or flood easement above the

probable high-water line around a reservoir.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code.

of Chapter 21, Property Code.

(d) The board shall determine the amount and the type of

interest in land, other property, or easements to be acquired under

this section. (Acts 65th Leg., R.S., Ch. 713, Sec. 10(a) (part).)

Sec.6904.160.COST OF RELOCATING OR ALTERING PROPERTY.

(a) In this section, "sole expense" means the actual cost of the

lowering, rerouting, or change in grade or alteration of

construction required under Subsection (b) to provide a comparable

replacement without enhancing the facility, after deducting the net

salvage value derived from the old facility.

(b) If the district's exercise of its eminent domain,

police, or other power requires relocating, raising, lowering,

rerouting, changing the grade of, or altering the construction of

any railroad, electric, transmission, telegraph, or telephone

line, conduit, pole, property, facility, or pipeline, the action

shall be accomplished at the sole expense of the district. (Acts

65th Leg., R.S., Ch. 713, Sec. 10(c).)

Sec.6904.161.RIGHTS-OF-WAY; EASEMENTS. The district has

all necessary or useful rights-of-way and easements along, over,

under, and across all public, state, municipal, and county roads,

highways, and places for any of its purposes. The district shall

restore a facility used to its previous condition as nearly as

possible at the sole expense of the district. (Acts 65th Leg., R.S.,

Ch. 713, Sec. 10(b).)

Sec.6904.162.ELECTIONS. (a) The board shall call an

election required to be held under this chapter by adopting a

resolution stating:

(1) the date of the election;

(2) each place where the election will be held; and

(3) the proposition or propositions to be voted on.

(b) The board shall give notice of an election by publishing

a substantial copy of the resolution calling the election one time

not less than 10 days before the date set for the election in:

(1) a newspaper of general circulation in the

district; and

(2) a newspaper of general circulation in the

territory, if the election is on the question of annexation of

territory.

of the election.

(d) The board may combine one or more elections required to

be held by this chapter, including a maintenance tax and bond

election. (Acts 65th Leg., R.S., Ch. 713, Secs. 12(c), 21 (part).)

[Sections 6904.163-6904.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec.6904.201.IMPOSITION OF TAX. (a) The district may

impose a tax, not to exceed 25 cents on each $100 valuation of

taxable property in the district, for:

(1) maintenance purposes, including money for

planning, maintaining, repairing, and operating all necessary

plants, works, facilities, improvements, appliances, and equipment

of the district;

(2) paying costs of proper services, engineering, and

legal fees; and

(3) organization and administrative expenses.

(b) The district may not impose a maintenance tax unless the

tax is approved by a majority of the voters voting at an election

held for that purpose. (Acts 65th Leg., R.S., Ch. 713, Secs. 12(a),

(b).)

Sec.6904.202.DEPOSITORY. (a) The board shall designate

one or more banks inside or outside the district to serve as the

depository for the district's money.

(b) District money shall be deposited in the depository

designated by the board, except that:

(1) bond proceeds and money pledged to pay bonds, to

the extent provided in a resolution or trust indenture authorizing

or securing district bonds, may be deposited with another bank or

trustee named in the bond resolution or trust indenture; and

(2) money shall be remitted to each paying agent for

the payment of principal of and interest on the bonds.

trustee 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 municipal money. (Acts 65th Leg., R.S., Ch.

713, Sec. 19 (part).)

Sec.6904.203.INVESTMENT OF DISTRICT MONEY. The board may

invest district money in obligations and make time deposits of

district money in a manner determined by the board or in the manner

permitted or required in a resolution or trust indenture

authorizing or securing district bonds. (Acts 65th Leg., R.S., Ch.

713, Sec. 19 (part).)

Sec. 6904.204. DISTRICT FACILITIES EXEMPT FROM TAXATION AND

ASSESSMENT. The district is not required to pay a tax or assessment

on its facilities or any part of its facilities. (Acts 65th Leg.,

R.S., Ch. 713, Sec. 22 (part).)

[Sections 6904.205-6904.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec.6904.251.AUTHORITY TO ISSUE BONDS. (a) The district

may issue bonds to carry out any power conferred by this chapter.

The bonds must be authorized by a board resolution.

(b) The bonds may be payable from and secured by revenue or

ad valorem taxes, or both revenue and ad valorem taxes, of the

district, in the manner and under the terms of the resolution

authorizing the issuance of the bonds. (Acts 65th Leg., R.S., Ch.

713, Secs. 13(a), (b) (part), (c), (e) (part).)

Sec.6904.252.FORM OF BONDS. District bonds must be:

(1) issued in the district's name;

(2) signed by the president or vice president; and

(3) attested by the secretary. (Acts 65th Leg., R.S.,

Ch. 713, Sec. 13(b) (part).)

Sec.6904.253.MATURITY. District bonds must mature not

later than 40 years after the date of their issuance. (Acts 65th

Leg., R.S., Ch. 713, Sec. 13(b) (part).)

Sec. 6904.254. ELECTION FOR BONDS PAYABLE FROM AD VALOREM

TAXES. (a) Bonds, other than refunding bonds, payable wholly or

partly from ad valorem taxes may not be issued unless authorized by

a majority of the district voters voting at an election.

(b) The board may issue bonds not payable wholly or partly

from ad valorem taxes without an election. (Acts 65th Leg., R.S.,

Ch. 713, Sec. 16(a) (part).)

Sec.6904.255.BONDS SECURED BY REVENUE; ADDITIONAL BONDS.

(a) Bonds issued under this subchapter may be secured by a pledge

of all or part of the district's revenue, or by all or part of the

revenue of one or more contracts or other revenue or income

specified by board resolution or a trust indenture securing the

bonds. The pledge may reserve the right, under conditions

specified by the pledge, to issue additional bonds that will be on a

parity with or subordinate to the bonds then being issued.

(b) The district may issue bonds secured by both taxes and

revenue of the district described by Subsection (a). (Acts 65th

Leg., R.S., Ch. 713, Secs. 13(d), (e) (part).)

Sec.6904.256.BONDS PAYABLE FROM AD VALOREM TAXES. (a) If

bonds are issued payable wholly or partly from ad valorem taxes, the

board shall annually impose a tax on the taxable property in the

district in an amount sufficient to pay the principal of and

interest on the bonds when due.

(b) The district may adopt the rate of a tax imposed under

Subsection (a) after giving consideration to the money received

from the pledged revenue that may be available for payment of

principal and interest, to the extent and in the manner permitted by

the resolution authorizing the issuance of the bonds. (Acts 65th

Leg., R.S., Ch. 713, Secs. 13(e) (part), 23(b) (part).)

Sec.6904.257.ADDITIONAL SECURITY. (a) Bonds, including

refunding bonds, authorized by this subchapter that are not payable

wholly from ad valorem taxes may be additionally secured, at the

discretion of the board, by a deed of trust or mortgage lien on

physical property of the district, franchises, easements, water

rights and appropriation permits, leases, contracts, and all rights

appurtenant to the property, vesting in the trustee power to:

(1) sell the property for the payment of the debt;

(2) operate the property; and

(3) take other action to further secure the bonds.

(b) A purchaser under a sale under the deed of trust lien, if

one is given:

(1) is the absolute owner of property, facilities, and

rights purchased; and

(2) is entitled to maintain and operate the property,

facilities, and rights. (Acts 65th Leg., R.S., Ch. 713, Sec. 15

(part).)

Sec.6904.258.TRUST INDENTURE. (a) A bond issued under

this subchapter, including a refunding bond, that is not payable

wholly from ad valorem taxes may be additionally secured by a trust

indenture. The trustee may be a bank with trust powers located

inside or outside the state.

(b) A trust indenture, regardless of the existence of the

deed of trust or mortgage lien on the property, may:

(1) provide for the security of the bonds and the

preservation of the trust estate in the manner prescribed by the

board;

(2) provide for amendment or modification of the trust

indenture;

(3) provide for the issuance of bonds to replace lost

or mutilated bonds;

(4) condition the right to spend district money or

sell district property on the approval of a licensed engineer

selected as provided by the trust indenture; and

(5) provide for the investment of district money.

(Acts 65th Leg., R.S., Ch. 713, Sec. 15 (part).)

Sec.6904.259.CHARGES FOR DISTRICT SERVICES. (a) If

district bonds payable wholly from revenue are issued, the board

shall set and revise the rates of compensation for water sold and

services provided by the district. The rates must be sufficient to:

(1) pay the expense of operating and maintaining

district facilities;

(2) pay the principal of and interest on the bonds when

due; and

(3) maintain the reserve fund and other funds as

provided in the resolution authorizing the bonds.

(b) If bonds payable partly from revenue are issued, the

board shall set the rate of compensation for water sold and any

other services provided by the district. The rate must be

sufficient to ensure compliance with the resolution authorizing the

bonds or the trust indenture securing the bonds. (Acts 65th Leg.,

R.S., Ch. 713, Sec. 13(f).)

Sec.6904.260.USE OF BOND PROCEEDS. (a) The district may

set aside an amount of proceeds from the sale of bonds issued under

this subchapter for:

(1) the payment of interest expected to accrue during

construction not to exceed three years;

(2) a debt service reserve fund; and

(3) other funds as may be provided in the resolution

authorizing the bonds or in the trust indenture.

(b) The district may use proceeds from the sale of the bonds

to pay any expense necessarily incurred in accomplishing the

purpose of the district, including any expense of issuing and

selling the bonds. (Acts 65th Leg., R.S., Ch. 713, Sec. 13(g).)

Sec.6904.261.APPOINTMENT OF RECEIVER. (a) On default or

a threatened default in the payment of principal of or interest on

bonds issued under this subchapter that are payable wholly or

partly from revenue, a court may, on petition of the holders of

outstanding bonds, appoint a receiver for the district.

(b) The receiver may collect and receive all district

income, except taxes, employ and discharge district agents and

employees, take charge of money on hand, except money received from

taxes, unless commingled, and manage the proprietary affairs of the

district without consent or hindrance by the board.

the sale of water or to renew those contracts with the approval of

the court that appointed the receiver.

(d) The court may vest the receiver with any other power or

duty the court finds necessary to protect the bondholders. (Acts

65th Leg., R.S., Ch. 713, Sec. 13(h) (part).)

Sec.6904.262.REFUNDING BONDS. (a) The district may issue

refunding bonds to refund outstanding bonds issued under this

subchapter and interest on those bonds.

(b) Refunding bonds may:

(1) be issued to refund bonds of more than one series;

(2) combine the pledges for the outstanding bonds for

the security of the refunding bonds; or

(3) be secured by a pledge of other or additional

revenue or mortgage liens.

issuance of other bonds, their security, and the remedies of the

holders apply to refunding bonds.

(d) The comptroller shall register the refunding bonds on

surrender and cancellation of the bonds to be refunded.

(e) Instead of issuing bonds to be registered on the

surrender and cancellation of the bonds to be refunded, the

district, in the resolution authorizing the issuance of the

refunding bonds, may provide for the sale of the refunding bonds and

the deposit of the proceeds in a bank at which the bonds to be

refunded are payable. In that case, the refunding bonds may be

issued in an amount sufficient to pay the principal of and interest

and any required redemption premium on the bonds to be refunded to

any redemption date or to their maturity date, and the comptroller

shall register the refunding bonds without the surrender and

cancellation of the bonds to be refunded.

(f) An election is not required for refunding bonds.

(g) The district may also issue refunding bonds under any

other applicable law. (Acts 65th Leg., R.S., Ch. 713, Sec. 14.)

Sec.6904.263.LIMITATION ON RIGHTS OF HOLDERS. The

resolution authorizing the bonds or the trust indenture securing

the bonds may limit or qualify the rights of the holders of less

than all of the outstanding bonds payable from the same source to

institute or prosecute litigation affecting the district's

property or income. (Acts 65th Leg., R.S., Ch. 713, Sec. 13(h)

(part).)

Sec.6904.264.BONDS EXEMPT FROM TAXATION. A bond issued

under this subchapter, the transfer of the bond, and income from the

bond, including profits made on the sale of the bond, are exempt

from taxation in this state. (Acts 65th Leg., R.S., Ch. 713, Sec.

22 (part).)

Sec. 6904.265. DETACHMENT OF DISTRICT TERRITORY AFTER

ISSUANCE OF BONDS. Territory may not be detached from the district

after the issuance of bonds payable from revenue or taxes. (Acts

65th Leg., R.S., Ch. 713, Sec. 16(a) (part).)

CHAPTER 6905. BEEVILLE WATER SUPPLY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 6905.001. DEFINITIONS

Sec. 6905.002. NATURE OF DISTRICT

Sec. 6905.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

[Sections 6905.004-6905.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY; ANNEXATION

Sec. 6905.051. DISTRICT TERRITORY

Sec. 6905.052. CITY OF BEEVILLE ANNEXATIONS

Sec. 6905.053. ANNEXATION BY PETITION

[Sections 6905.054-6905.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec. 6905.101. COMPOSITION OF BOARD; TERMS

Sec. 6905.102. REMOVAL FROM OFFICE

Sec. 6905.103. BOARD RESOLUTIONS; VOTING REQUIREMENTS

Sec. 6905.104. OFFICERS AND ASSISTANTS

Sec. 6905.105. MEETINGS

Sec. 6905.106. PERSONAL LIABILITY OF DIRECTORS

[Sections 6905.107-6905.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES

Sec. 6905.151. GENERAL POWERS

Sec. 6905.152. BYLAWS AND RULES

Sec. 6905.153. REGIONAL WASTE DISPOSAL

Sec. 6905.154. PERMITS

Sec. 6905.155. PROPERTY ACQUISITION, USE, AND

DISPOSITION

Sec. 6905.156. REQUESTS FOR AND ACCEPTANCE OF AID

Sec. 6905.157. DISTRICT OFFICE

Sec. 6905.158. PERSONNEL

Sec. 6905.159. GENERAL MANAGER

Sec. 6905.160. GENERAL AUTHORITY OF PUBLIC AGENCIES

AND POLITICAL SUBDIVISIONS TO

CONTRACT WITH DISTRICT

Sec. 6905.161. CONTRACTS TO SUPPLY WATER

Sec. 6905.162. SOURCES FOR WATER; ACQUISITION OF LAND;

STORAGE CAPACITY

Sec. 6905.163. CONSTRUCTION CONTRACTS

Sec. 6905.164. CONVEYANCE OF LAND TO DISTRICT

Sec. 6905.165. SURPLUS PROPERTY

Sec. 6905.166. EMINENT DOMAIN

Sec. 6905.167. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 6905.168. RIGHTS-OF-WAY; EASEMENTS

Sec. 6905.169. DISTRICT SEAL

[Sections 6905.170-6905.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 6905.201. DISTRICT MONEY

Sec. 6905.202. DEPOSITORY

Sec. 6905.203. INVESTMENT OF DISTRICT MONEY

Sec. 6905.204. DISTRICT FACILITIES EXEMPT FROM

TAXATION AND ASSESSMENT

[Sections 6905.205-6905.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec. 6905.251. AUTHORITY TO ISSUE BONDS

Sec. 6905.252. FORM OF BONDS

Sec. 6905.253. MATURITY

Sec. 6905.254. ELECTION FOR BONDS PAYABLE FROM AD

VALOREM TAXES

Sec. 6905.255. BONDS SECURED BY REVENUE; ADDITIONAL

BONDS

Sec. 6905.256. BONDS PAYABLE FROM AD VALOREM TAXES

Sec. 6905.257. ADDITIONAL SECURITY

Sec. 6905.258. TRUST INDENTURE

Sec. 6905.259. DEANNEXATION OF DISTRICT TERRITORY

AFTER ISSUANCE OF BONDS

Sec. 6905.260. CHARGES FOR DISTRICT SERVICES

Sec. 6905.261. USE OF BOND PROCEEDS

Sec. 6905.262. APPOINTMENT OF RECEIVER

Sec. 6905.263. REFUNDING BONDS

Sec. 6905.264. LIMITATION ON RIGHTS OF HOLDERS

Sec. 6905.265. BONDS EXEMPT FROM TAXATION

CHAPTER 6905. BEEVILLE WATER SUPPLY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.6905.001.DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "Director" means a member of the board.

(3) "District" means the Beeville Water Supply

District. (Acts 66th Leg., R.S., Ch. 432, Secs. 1 (part), 4(a)

(part).)

Sec.6905.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district created under Section 59,

Article XVI, Texas Constitution. (Acts 66th Leg., R.S., Ch. 432,

Sec. 1 (part).)

Sec.6905.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property in the district will benefit

from the works and projects to be accomplished by the district under

powers conferred by Section 59, Article XVI, Texas Constitution.

chapter will benefit the people of this state and improve their

property and industries.

(d) The district, in carrying out the purposes of this

chapter, will be performing an essential public function under the

constitution of this state. (Acts 66th Leg., R.S., Ch. 432, Secs.

3, 22 (part).)

[Sections 6905.004-6905.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY; ANNEXATION

Sec.6905.051.DISTRICT TERRITORY. The district boundaries

are coterminous with the boundaries of the City of Beeville as those

boundaries existed on June 6, 1979, and as the district territory

may have been modified under:

(1) this subchapter or its predecessor statutes,

Sections 2 and 8, Chapter 432, Acts of the 66th Legislature, Regular

Session, 1979;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law. (Acts 66th Leg., R.S., Ch. 432, Sec.

2(a) (part); New.)

Sec.6905.052.CITY OF BEEVILLE ANNEXATIONS. If the City of

Beeville annexes territory, the board may consider whether the new

territory should also be added to the district and may:

(1) add the territory by a majority vote of the board

without following the annexation procedures under Section

6905.053; or

(2) reject the addition of the new territory. (Acts

66th Leg., R.S., Ch. 432, Sec. 2(b).)

Sec.6905.053.ANNEXATION BY PETITION. (a) The district

may annex territory in the manner provided by this section.

(b) The board may annex territory or a municipality under

this section only if a petition requesting annexation is signed by

50 voters of the territory or municipality to be annexed, or a

majority of the registered voters of that territory or

municipality, whichever is fewer, and is filed with the board. The

petition must describe the territory to be annexed by metes and

bounds, or otherwise, except that if the territory is the same as

that contained in the boundaries of a municipality, the petition is

sufficient if it states that the territory to be annexed is the

territory contained in the municipal boundaries.

Subsection (b), that the annexation would be in the best interest of

the territory or municipality and the district, and that the

district will be able to supply water to the territory or

municipality, the board shall:

(1) adopt a resolution stating the conditions, if any,

under which the territory or municipality may be annexed to the

district; and

(2) set a time and place to hold a hearing on the

question of whether the territory or municipality to be annexed

will benefit from:

(A) the improvements, works, or facilities owned

or operated or contemplated to be owned or operated by the district;

(B) the other functions of the district.

(d) At least 10 days before the date of the hearing, notice

of the adoption of the resolution stating the time and place of the

hearing shall be published one time in a newspaper of general

circulation in the territory or municipality to be annexed. The

notice must describe the territory in the same manner in which

Subsection (b) requires the petition to describe the territory.

(e) Any interested person may appear at the hearing and

offer evidence for or against the annexation.

(f) The hearing may proceed in the order and under the rules

prescribed by the board and may be recessed from time to time.

(g) If, at the conclusion of the hearing, the board finds

that the property in the territory or municipality will benefit

from the present or contemplated improvements, works, or facilities

of the district, the board shall adopt a resolution making a finding

of the benefit and calling an election in the territory or

municipality proposed to be annexed.

(h) The resolution must state:

(1) the date of the election;

(2) each place where the election will be held; and

(3) the proposition to be voted on.

(i) At least 10 days before the date set for the election,

notice of the election shall be given by publishing a substantial

copy of the resolution calling the election one time in a newspaper

of general circulation in the territory proposed to be annexed.

(j) In calling an election on the proposition for annexation

of the territory or municipality, the board may include, as part of

the same proposition or as a separate proposition, a proposition

for:

(1) the territory or municipality to assume its part

of the tax-supported bonds of the district then outstanding and

those bonds previously voted but not yet sold; and

(2) an ad valorem tax to be imposed on taxable property

on the territory or municipality along with the tax in the rest of

the district for the payment of the bonds.

(k) If a majority of the votes cast at the election are in

favor of annexation, the board by resolution shall annex the

territory or municipality to the district.

(l) The board is not required to call an election if:

(1) a petition requesting annexation is signed by all

residents and landowners of the territory to be annexed, the same as

provided by law for conveyance of real property; and

(2) the petition:

(A) states that the petitioners approve their

share of the outstanding bonds or other obligations, and the

unissued bonds, if any, of the district, and authorizes the board to

set tax rates sufficient to pay their share of the debt; and

(B) is filed in the office of the county clerk of

the county in which the district is located.

(m) An annexation under this section is incontestable

except in the manner and within the time for contesting elections

under the Election Code. (Acts 66th Leg., R.S., Ch. 432, Secs. 2(a)

(part), 8(a), (b), (c) (part), (d) (part), (e) (part), (f).)

[Sections 6905.054-6905.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec.6905.101.COMPOSITION OF BOARD; TERMS. (a) The

district is governed by a board of five elected directors.

Directors occupy numbered places on the board.

(b) A director is eligible for reelection to the board.

Ch. 432, Sec. 4(a) (part).)

Sec.6905.102.REMOVAL FROM OFFICE. After reasonable

notice and a public hearing, the board may remove a director from

office for misfeasance, malfeasance, or wilful neglect of duty.

Reasonable notice and a public hearing are not required if the

director to be removed expressly waives the notice and hearing in

writing. (Acts 66th Leg., R.S., Ch. 432, Sec. 4(b).)

Sec.6905.103.BOARD RESOLUTIONS; VOTING REQUIREMENTS. (a)

The district shall act through resolutions adopted by the board.

(b) Each director has a vote.

necessary to adopt any resolution. (Acts 66th Leg., R.S., Ch. 432,

Sec. 5(c) (part).)

Sec.6905.104.OFFICERS AND ASSISTANTS. (a) The board

president shall:

(1) serve a one-year term; and

(2) perform duties prescribed by the board.

(b) The board secretary shall:

(1) be the official custodian of the board seal; and

(2) perform other duties and functions prescribed by

the board.

duties and functions prescribed by the board.

(d) One person may hold the offices of secretary and

treasurer. The secretary and treasurer are not required to be

directors.

(e) The board may appoint one or more persons who are not

directors to be an assistant board secretary. An assistant

secretary may perform any duty or function of the board secretary.

(f) The board shall elect officers annually or at any time

necessary to fill a vacancy. (Acts 66th Leg., R.S., Ch. 432, Secs.

5(b) (part), (d) (part).)

Sec.6905.105.MEETINGS. The board shall have regular

meetings at times specified by board resolution and shall have

special meetings when called by the board president or by any three

directors. (Acts 66th Leg., R.S., Ch. 432, Sec. 5(e).)

Sec.6905.106.PERSONAL LIABILITY OF DIRECTORS. A director

is not personally liable for any bond issued or contract executed by

the district. (Acts 66th Leg., R.S., Ch. 432, Sec. 5(f).)

[Sections 6905.107-6905.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES

Sec.6905.151.GENERAL POWERS. The district may exercise

any power necessary or appropriate to achieve the purposes of this

chapter. (Acts 66th Leg., R.S., Ch. 432, Sec. 6(a).)

Sec.6905.152.BYLAWS AND RULES. The district may adopt and

enforce bylaws and rules for the conduct of its affairs. (Acts 66th

Leg., R.S., Ch. 432, Sec. 6(c) (part).)

Sec.6905.153.REGIONAL WASTE DISPOSAL. (a) The district

may exercise any power granted by Chapter 30, Water Code, to a water

district created under Section 59, Article XVI, Texas Constitution,

including the power to collect, transport, process, treat, dispose

of, and control all municipal, domestic, industrial, or communal

waste, whether in fluid, solid, or composite state, including the

control, abatement, or reduction of any type of pollution.

(b) The powers granted to the district by Chapter 30, Water

Code, are for the purposes of conservation and development of the

natural resources of this state within the meaning of Section 59,

Article XVI, Texas Constitution. (Acts 66th Leg., R.S., Ch. 432,

Sec. 6(k).)

Sec.6905.154.PERMITS. (a) The district may obtain

through appropriate proceedings an appropriation permit or a

diversion permit from the Texas Commission on Environmental

Quality.

(b) The district may acquire water appropriation permits

from owners of permits by contract or otherwise. (Acts 66th Leg.,

R.S., Ch. 432, Sec. 9 (part).)

Sec.6905.155.PROPERTY ACQUISITION, USE, AND DISPOSITION.

(a) The district may acquire, own, rent, lease, accept, hold, or

dispose of any property, or any interest in property, including a

right or easement, by purchase, exchange, gift, assignment,

condemnation, sale, lease, or otherwise, in performing district

duties or exercising district powers under this chapter.

(b) The district may hold, manage, operate, or improve

property.

structure, or facility from or to any person to achieve the purposes

of this chapter.

(d) The district may sell, assign, lease, encumber,

mortgage, or otherwise dispose of property, or an interest in

property, and release or relinquish a right, title, claim, lien,

interest, easement, or demand, regardless of the manner in which

acquired, and conduct a transaction authorized by this subsection

by public or private sale, with or without public bidding,

notwithstanding any other law. (Acts 66th Leg., R.S., Ch. 432,

Secs. 6(e), (f).)

Sec.6905.156.REQUESTS FOR AND ACCEPTANCE OF AID. The

district may request and accept an appropriation, grant,

allocation, subsidy, guarantee, aid, service, material, or gift

from any source, including the federal government, the state, a

public agency, or a political subdivision. (Acts 66th Leg., R.S.,

Ch. 432, Sec. 6(g).)

Sec.6905.157.DISTRICT OFFICE. The district may operate

and maintain an office. (Acts 66th Leg., R.S., Ch. 432, Sec. 6(h)

(part).)

Sec.6905.158.PERSONNEL. The district may appoint and

determine the duties, tenure, qualifications, and compensation of

district officers and employees, as well as any agent, professional

advisor, or counselor, including any financial consultant,

accountant, attorney, architect, engineer, appraiser, or financing

expert, considered necessary or advisable by the board. (Acts 66th

Leg., R.S., Ch. 432, Sec. 6(h) (part).)

Sec.6905.159.GENERAL MANAGER. (a) The district may

employ a general manager who may be the city manager of the City of

Beeville.

(b) The general manager may:

(1) employ and discharge employees; and

(2) exercise other powers conferred on the general

manager by the board. (Acts 66th Leg., R.S., Ch. 432, Sec. 6(h)

(part).)

Sec. 6905.160. GENERAL AUTHORITY OF PUBLIC AGENCIES AND

POLITICAL SUBDIVISIONS TO CONTRACT WITH DISTRICT. A public agency

or political subdivision of this state, including the City of

Beeville, may enter into a contract or agreement with the district,

on terms agreed to by the parties, for any purpose relating to the

district's powers or functions. Approval, notice, consent, or an

election is not required in connection with a contract or

agreement. (Acts 66th Leg., R.S., Ch. 432, Sec. 10(b) (part).)

Sec.6905.161.CONTRACTS TO SUPPLY WATER. (a) The district

may contract with municipalities and others, including the City of

Beeville, to supply water. The district may sell water inside or

outside the boundaries of the district.

(b) The district may contract with a public agency or

political subdivision for the rental or leasing of or for the

operation of the water production, water supply, water filtration

or purification, and water supply facilities of the entity on the

consideration agreed to by the district and the entity.

the parties.

(d) A contract may provide that it will continue in effect

until bonds specified in it and refunding bonds issued in lieu of

the bonds are paid.

(e) The district may contract with the City of Beeville for

the operation of the district's water facilities by the city. An

election is not required in connection with the contract.

(f) A public agency or political subdivision, including the

City of Beeville, may enter into a contract or agreement with the

authority for a water supply as provided by Section 6905.160. (Acts

66th Leg., R.S., Ch. 432, Secs. 10(a) (part), (b) (part), 19.)

Sec. 6905.162. SOURCES FOR WATER; ACQUISITION OF LAND;

STORAGE CAPACITY. (a) The district may acquire or construct,

inside or outside the district, a reservoir, well, or any work,

plant, transmission line, or other facility necessary or useful to

drill for, divert, impound, store, treat, or transport water to the

City of Beeville and others for municipal, domestic, agricultural,

industrial, mining, oil flooding, or any other useful purpose.

(b) The district may develop or otherwise acquire

underground sources of water.

inside or outside the district, for a reservoir, well, or any work,

plant, transmission line, or other facility necessary or useful to

drill for, divert, impound, store, treat, or transport water to the

City of Beeville and others for municipal, domestic, agricultural,

industrial, mining, oil flooding, or any other useful purpose.

(d) The district may lease, purchase, or otherwise acquire

rights in and to storage and storage capacity in any reservoir

constructed or to be constructed by any person or from the United

States. (Acts 66th Leg., R.S., Ch. 432, Secs. 9 (part), 10(a)

(part), 11 (part).)

Sec.6905.163.CONSTRUCTION CONTRACTS. (a) The district

may award a construction contract that requires an expenditure of

more than $5,000 only after publication of notice to bidders once

each week for two weeks in a newspaper of general circulation in the

district.

(b) The notice is sufficient if it states:

(1) the time and place for opening the bids;

(2) the general nature of the work to be done or the

material, equipment, or supplies to be purchased; and

(3) where the terms of bidding and copies of the plans

and specifications may be obtained. (Acts 66th Leg., R.S., Ch. 432,

Sec. 13.)

Sec.6905.164.CONVEYANCE OF LAND TO DISTRICT. A public

agency or a political subdivision of this state, including the City

of Beeville, may lease, sell, or otherwise convey its land or an

interest in its land to the district for consideration that the

parties agree is adequate. Approval, notice, consent, or an

election is not required in connection with the conveyance. (Acts

66th Leg., R.S., Ch. 432, Sec. 10(b) (part).)

Sec.6905.165.SURPLUS PROPERTY. Subject to the terms of a

resolution or deed of trust authorizing or securing bonds issued by

the district, the district may sell, lease, rent, trade, or

otherwise dispose of property that the board considers is not

needed for a district purpose. (Acts 66th Leg., R.S., Ch. 432, Sec.

11 (part).)

Sec.6905.166.EMINENT DOMAIN. (a) To carry out an

authority provided by this chapter, the district may exercise the

power of eminent domain to acquire the fee simple title, or any

other interest in land, and other property and easements, inside or

outside the district, including land or an interest in land needed

for a reservoir, dam, or flood easement above the probable high

water line around any reservoir.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code.

of Chapter 21, Property Code.

(d) The board shall determine the amount and type of

interest in land, other property, or easements to be acquired.

(Acts 66th Leg., R.S., Ch. 432, Sec. 12(a) (part).)

Sec.6905.167.COST OF RELOCATING OR ALTERING PROPERTY.

(a) In this section, "sole expense" means the actual cost of the

lowering, rerouting, or change in grade or alteration of

construction required under Subsection (b) to provide a comparable

replacement without enhancing the facility, after deducting the net

salvage value derived from the old facility.

(b) If the district's exercise of its eminent domain,

police, or other power requires relocating, raising, lowering,

rerouting, or changing the grade of, or altering the construction

of any railroad, electric transmission, telegraph, or telephone

line, conduit, pole, property, facility, or pipeline, the action

shall be accomplished at the sole expense of the district. (Acts

66th Leg., R.S., Ch. 432, Sec. 12(c).)

Sec.6905.168.RIGHTS-OF-WAY; EASEMENTS. The district has

all necessary or useful rights-of-way and easements along, over,

under, and across all public, state, municipal, and county roads,

highways, and places for any of its purposes. The district shall

restore a facility used to its previous condition as nearly as

possible at the sole expense of the district. (Acts 66th Leg.,

R.S., Ch. 432, Sec. 12(b).)

Sec.6905.169.DISTRICT SEAL. The district may adopt an

official seal. (Acts 66th Leg., R.S., Ch. 432, Sec. 6(c) (part).)

[Sections 6905.170-6905.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec.6905.201.DISTRICT MONEY. The district may acquire,

hold, use, and dispose of its receipts and money from every source.

(Acts 66th Leg., R.S., Ch. 432, Sec. 6(d) (part).)

Sec.6905.202.DEPOSITORY. (a) The board shall designate

one or more banks inside or outside the district to serve as the

depository for the district's money.

(b) District money shall be deposited in the depository

designated by the board, except that:

(1) bond proceeds and money pledged to pay bonds, to

the extent provided in a resolution or trust indenture authorizing

or securing district bonds, may be deposited with another bank or

trustee named in the bond resolution or trust indenture; and

(2) money shall be remitted to each paying agent for

the payment of principal of and interest on the bonds.

trustee 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 municipal money. (Acts 66th Leg., R.S., Ch.

432, Secs. 6(d) (part), 20 (part).)

Sec.6905.203.INVESTMENT OF DISTRICT MONEY. The board may

invest district money in obligations and make time deposits of

district money in a manner determined by the board or in the manner

permitted or required in a resolution or trust indenture

authorizing or securing district bonds. (Acts 66th Leg., R.S., Ch.

432, Sec. 20 (part).)

Sec. 6905.204. DISTRICT FACILITIES EXEMPT FROM TAXATION AND

ASSESSMENT. The district is not required to pay a tax or assessment

on its facilities or any part of its facilities. (Acts 66th Leg.,

R.S., Ch. 432, Sec. 22 (part).)

[Sections 6905.205-6905.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec.6905.251.AUTHORITY TO ISSUE BONDS. (a) The district

may issue bonds, provide for and secure the payment of the bonds,

and provide for the rights of the holders of the bonds, in the

manner and to the extent permitted by this chapter.

(b) The district may issue bonds to carry out any authority

conferred by this chapter. The bonds must be authorized by a board

resolution.

ad valorem taxes, or both revenue and ad valorem taxes, of the

district, in the manner and under the terms of the resolution

authorizing the issuance of the bonds. (Acts 66th Leg., R.S., Ch.

432, Secs. 6(i), 14(a), (b) (part), (d) (part).)

Sec.6905.252.FORM OF BONDS. A district bond must be:

(1) issued in the district's name;

(2) signed by the president or vice president; and

(3) attested by the secretary. (Acts 66th Leg., R.S.,

Ch. 432, Sec. 14(b) (part).)

Sec.6905.253.MATURITY. District bonds must mature not

later than 50 years after the date of their issuance. (Acts 66th

Leg., R.S., Ch. 432, Sec. 14(b) (part).)

Sec. 6905.254. ELECTION FOR BONDS PAYABLE FROM AD VALOREM

TAXES. (a) Bonds, other than refunding bonds, payable wholly or

partly from ad valorem taxes may not be issued unless authorized by

a majority of the district voters voting at an election.

(b) The board may call an election under this section

without a petition. The resolution calling the election must

specify:

(1) the time and places at which the election will be

held;

(2) the purpose for which the bonds will be issued;

(3) the amount of the bonds;

(4) the form of the ballot; and

(5) other matters the board considers necessary or

advisable.

substantial copy of the resolution calling the election in a

newspaper of general circulation in the district. The notice must

be published once each week for two consecutive weeks. The first

publication must be not later than the 14th day before the date of

the election.

(d) The board may issue bonds not payable wholly or partly

from ad valorem taxes without an election. (Acts 66th Leg., R.S.,

Ch. 432, Secs. 17(a) (part), (b).)

Sec.6905.255.BONDS SECURED BY REVENUE; ADDITIONAL BONDS.

(a) Bonds issued under this subchapter may be secured by a pledge

of all or part of the district's revenue, or by all or part of the

revenue of one or more contracts previously or subsequently made or

other revenue or income specified by board resolution or a trust

indenture securing the bonds. The pledge may reserve the right,

under conditions specified by the pledge, to issue additional bonds

that will be on a parity with or subordinate to the bonds then being

issued.

(b) The district may issue bonds secured by both taxes and

revenue of the district described by Subsection (a). (Acts 66th

Leg., R.S., Ch. 432, Secs. 14(c), (d) (part).)

Sec.6905.256.BONDS PAYABLE FROM AD VALOREM TAXES. (a) If

bonds are issued payable wholly or partly from ad valorem taxes, the

board shall annually impose a tax on the taxable property in the

district in an amount sufficient to pay the principal of and

interest on the bonds when due.

(b) The district may adopt the rate of a tax imposed under

Subsection (a) after giving consideration to the money received

from the pledged revenue that may be available for payment of

principal and interest, to the extent and in the manner permitted by

the resolution authorizing the issuance of the bonds. (Acts 66th

Leg., R.S., Ch. 432, Secs. 14(d) (part), 23(b) (part).)

Sec.6905.257.ADDITIONAL SECURITY. (a) Bonds, including

refunding bonds, authorized by this subchapter that are not payable

wholly from ad valorem taxes may be additionally secured, at the

discretion of the board, by a deed of trust or mortgage lien on

physical property of the district, franchises, easements, water

rights and appropriation permits, leases, contracts, and all rights

appurtenant to the property, vesting in the trustee power to:

(1) sell the property for the payment of the debt;

(2) operate the property; and

(3) take other action to further secure the bonds.

(b) A purchaser under a sale under the deed of trust lien, if

one is given:

(1) is the absolute owner of property, facilities, and

rights purchased; and

(2) is entitled to maintain and operate the property,

facilities, and rights. (Acts 66th Leg., R.S., Ch. 432, Sec. 16

(part).)

Sec.6905.258.TRUST INDENTURE. (a) A bond issued under

this subchapter, including a refunding bond, that is not payable

wholly from ad valorem taxes may be additionally secured by a trust

indenture. The trustee may be a bank with trust powers located

inside or outside the state.

(b) A trust indenture, regardless of the existence of the

deed of trust or mortgage lien on the property, may:

(1) provide for the security of the bonds and the

preservation of the trust estate in the manner prescribed by the

board;

(2) provide for amendment or modification of the trust

indenture;

(3) provide for the issuance of bonds to replace lost

or mutilated bonds;

(4) condition the right to spend district money or

sell district property on the approval of a licensed engineer

selected as provided by the trust indenture; and

(5) provide for the investment of district money.

(Acts 66th Leg., R.S., Ch. 432, Sec. 16 (part).)

Sec. 6905.259. DEANNEXATION OF DISTRICT TERRITORY AFTER

ISSUANCE OF BONDS. Territory may not be deannexed from the district

after the issuance of bonds payable from revenue or taxes. (Acts

66th Leg., R.S., Ch. 432, Sec. 17(a) (part).)

Sec.6905.260.CHARGES FOR DISTRICT SERVICES. (a) If bonds

payable wholly from revenue are issued, the board shall set and

revise the rates of compensation for water sold and services

provided by the district. The rates must be sufficient to:

(1) pay the expense of operating and maintaining

district facilities;

(2) pay the principal of and interest on the bonds when

due; and

(3) maintain the reserve fund and other funds as

provided in the resolution authorizing the bonds.

(b) If bonds payable partly from revenue are issued, the

board shall set and revise the rate of compensation for water sold

and any other services provided by the district. The rate must be

in an amount sufficient to ensure compliance with the resolution

authorizing the bonds or the trust indenture securing the bonds.

(Acts 66th Leg., R.S., Ch. 432, Sec. 14(e).)

Sec.6905.261.USE OF BOND PROCEEDS. (a) The district may

set aside an amount of proceeds from the sale of bonds issued under

this subchapter for:

(1) the payment of interest expected to accrue during

construction not to exceed three years;

(2) a reserve interest and sinking fund; and

(3) other funds as may be provided in the resolution

authorizing the bonds or in the trust indenture.

(b) The district may use proceeds from the sale of the bonds

to pay any expense necessarily incurred in accomplishing the

purpose of the district, including:

(1) any expense of issuing and selling the bonds; and

(2) the amount needed to operate the district during

construction of the improvements. (Acts 66th Leg., R.S., Ch. 432,

Sec. 14(f).)

Sec.6905.262.APPOINTMENT OF RECEIVER. (a) On default or

a threatened default in the payment of principal of or interest on

bonds issued under this subchapter that are payable wholly or

partly from revenue, a court may, on petition of the holders of

outstanding bonds, appoint a receiver for the district.

(b) The receiver may collect and receive all district

income, except taxes, employ and discharge district agents and

employees, take charge of money on hand, except money received from

taxes, unless commingled, and manage the proprietary affairs of the

district without consent or hindrance by the board.

the sale of water or to renew those contracts with the approval of

the court that appointed the receiver.

(d) The court may vest the receiver with any other power or

duty the court finds necessary to protect the bondholders. (Acts

66th Leg., R.S., Ch. 432, Sec. 14(g) (part).)

Sec.6905.263.REFUNDING BONDS. (a) The district may issue

refunding bonds to refund outstanding bonds issued under this

subchapter and interest on those bonds.

(b) Refunding bonds may:

(1) be issued to refund bonds of more than one series;

(2) combine the pledges for the outstanding bonds for

the security of the refunding bonds; or

(3) be secured by a pledge of other or additional

revenue or mortgage liens.

issuance of other bonds, their security, and the remedies of the

holders apply to refunding bonds.

(d) The comptroller shall register the refunding bonds on

surrender and cancellation of the bonds to be refunded.

(e) Instead of issuing bonds to be registered on the

surrender and cancellation of the bonds to be refunded, the

district, in the resolution authorizing the issuance of the

refunding bonds, may provide for the sale of the refunding bonds and

the deposit of the proceeds in a bank at which the bonds to be

refunded are payable. In that case, the refunding bonds may be

issued in an amount sufficient to pay the principal of and interest

and any required redemption premium on the bonds to be refunded to

any redemption date or to their maturity date, and the comptroller

shall register the refunding bonds without the surrender and

cancellation of the bonds to be refunded.

(f) An election is not required for refunding bonds.

(g) The district may also issue refunding bonds under any

other applicable law. (Acts 66th Leg., R.S., Ch. 432, Sec. 15.)

Sec.6905.264.LIMITATION ON RIGHTS OF HOLDERS. The

resolution authorizing the bonds or the trust indenture securing

the bonds may limit or qualify the rights of the holders of less

than all of the outstanding bonds payable from the source to

institute or prosecute litigation affecting the district's

property or income. (Acts 66th Leg., R.S., Ch. 432, Sec. 14(g)

(part).)

Sec.6905.265.BONDS EXEMPT FROM TAXATION. A bond issued

under this subchapter, the transfer of the bond, and income from the

bond, including profits made on the sale of the bond, are exempt

from taxation in this state. (Acts 66th Leg., R.S., Ch. 432, Sec.

22 (part).)

CHAPTER 6906. CORYELL CITY WATER SUPPLY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 6906.001. DEFINITIONS

Sec. 6906.002. NATURE OF DISTRICT

Sec. 6906.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 6906.004. DISTRICT TERRITORY

[Sections 6906.005-6906.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 6906.051. COMPOSITION OF BOARD; TERMS

Sec. 6906.052. QUALIFICATIONS FOR OFFICE

Sec. 6906.053. VACANCIES

Sec. 6906.054. REMOVAL FROM OFFICE

Sec. 6906.055. BOARD RESOLUTIONS; VOTING REQUIREMENTS

Sec. 6906.056. OFFICERS AND ASSISTANTS

Sec. 6906.057. DUTIES OF OFFICERS AND ASSISTANTS

Sec. 6906.058. MEETINGS

Sec. 6906.059. PERSONAL LIABILITY OF DIRECTORS

[Sections 6906.060-6906.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 6906.101. GENERAL POWERS

Sec. 6906.102. GENERAL POWERS REGARDING WATER

Sec. 6906.103. GENERAL POWERS REGARDING WASTE

Sec. 6906.104. DISTRICT BYLAWS AND RULES

Sec. 6906.105. PROPERTY ACQUISITION, USE, AND

DISPOSITION

Sec. 6906.106. REQUESTS FOR AND ACCEPTANCE OF AID

Sec. 6906.107. DISTRICT OFFICE

Sec. 6906.108. PERSONNEL

Sec. 6906.109. PERMITS

Sec. 6906.110. GENERAL CONTRACT POWERS

Sec. 6906.111. AUTHORITY OF PUBLIC AGENCIES AND

POLITICAL SUBDIVISIONS TO CONTRACT

WITH DISTRICT

Sec. 6906.112. ACQUISITION OF LAND; STORAGE CAPACITY

Sec. 6906.113. CONSTRUCTION CONTRACTS

Sec. 6906.114. CONVEYANCE OF LAND TO DISTRICT

Sec. 6906.115. DISPOSAL OF PROPERTY

Sec. 6906.116. EMINENT DOMAIN

Sec. 6906.117. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 6906.118. RIGHTS-OF-WAY; EASEMENTS

Sec. 6906.119. SEAL

[Sections 6906.120-6906.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 6906.151. DISTRICT MONEY

Sec. 6906.152. AUTHORITY TO BORROW MONEY AND ISSUE

BONDS

Sec. 6906.153. DEPOSITORY

Sec. 6906.154. INVESTMENT OF DISTRICT MONEY

Sec. 6906.155. DISTRICT FACILITIES EXEMPT FROM

TAXATION AND ASSESSMENT

[Sections 6906.156-6906.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 6906.201. AUTHORITY TO ISSUE BONDS

Sec. 6906.202. FORM OF BONDS

Sec. 6906.203. MATURITY

Sec. 6906.204. BONDS SECURED BY REVENUE; ADDITIONAL

BONDS

Sec. 6906.205. ADDITIONAL SECURITY

Sec. 6906.206. TRUST INDENTURE

Sec. 6906.207. CHARGES FOR DISTRICT SERVICES

Sec. 6906.208. STATE PLEDGE REGARDING RIGHTS AND

REMEDIES OF BONDHOLDERS

Sec. 6906.209. USE OF BOND PROCEEDS

Sec. 6906.210. APPOINTMENT OF RECEIVER

Sec. 6906.211. REFUNDING BONDS

Sec. 6906.212. OTHER REMEDIES AND COVENANTS

Sec. 6906.213. LIMITATION ON RIGHTS OF BONDHOLDERS

Sec. 6906.214. BONDS EXEMPT FROM TAXATION

CHAPTER 6906. CORYELL CITY WATER SUPPLY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.6906.001.DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "Bond" means a bond or note.

(3) "Director" means a member of the board.

(4) "District" means the Coryell City Water Supply

District. (Acts 66th Leg., R.S., Ch. 435, Secs. 1 (part), 5(a)

(part), 16(a) (part).)

Sec.6906.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Coryell County created

under Section 59, Article XVI, Texas Constitution. (Acts 66th

Leg., R.S., Ch. 435, Sec. 1 (part).)

Sec.6906.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district and other areas to be served by the district's works

and projects will benefit from the works and projects accomplished

by the district under the powers conferred by Section 59, Article

XVI, Texas Constitution.

chapter is for the benefit of the people of this state for the

improvement of their property and industries. The district, in

carrying out the purposes of this chapter, will be performing an

essential public function under the constitution. (Acts 66th Leg.,

R.S., Ch. 435, Secs. 4, 23 (part).)

Sec.6906.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 2, Chapter 435, Acts

of the 66th Legislature, Regular Session, 1979, as that territory

may have been modified under:

(1) Subchapter J, Chapter 49, Water Code; or

(2) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (Acts 66th Leg., R.S., Ch. 435, Sec. 3; New.)

[Sections 6906.005-6906.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.6906.051.COMPOSITION OF BOARD; TERMS. (a) The

district is governed by a board of 11 directors, each of whom

occupies a numbered place on the board.

(b) Directors serve staggered two-year terms, with the

terms of the directors occupying Places 1, 2, 3, 4, and 5 expiring

on April 1 of each even-numbered year and the terms of the directors

occupying Places 6, 7, 8, 9, 10, and 11 expiring April 1 of each

odd-numbered year.

Coryell County shall appoint directors to succeed directors whose

term of office will expire on April 1. The appointed directors'

terms begin on April 1 of that year. (Acts 66th Leg., R.S., Ch. 435,

Secs. 5(a) (part), (b) (part).)

Sec.6906.052.QUALIFICATIONS FOR OFFICE. (a) Directors

must be appointed from areas in Coryell County as follows:

(1) one each from the Oglesby-Mound area and Levita

area;

(2) two each from the Pancake area, Jonesboro area,

and Turnersville area; and

(3) three from the Coryell City area.

(b) To be eligible to succeed a director whose term of

office is about to expire, a person must be appointed from the same

geographical area as the geographical area that the director

represents.

(d) To be eligible to be appointed or to serve as a director,

a person must be a resident, qualified voter of the geographical

area from which the person is appointed.

(e) A director may not hold any other public office. (Acts

66th Leg., R.S., Ch. 435, Secs. 5(b) (part), (c).)

Sec.6906.053.VACANCIES. Any vacancy occurring on the

board shall be filled for the unexpired term by appointment in the

manner in which the vacating director was appointed. (Acts 66th

Leg., R.S., Ch. 435, Sec. 5(b) (part).)

Sec.6906.054.REMOVAL FROM OFFICE. After reasonable

notice and a public hearing, the board may remove a director from

office for misfeasance, malfeasance, or wilful neglect of duty.

Reasonable notice and a public hearing are not required if the

notice and hearing are expressly waived in writing. (Acts 66th

Leg., R.S., Ch. 435, Sec. 5(d).)

Sec.6906.055.BOARD RESOLUTIONS; VOTING REQUIREMENTS. (a)

The district shall act by resolutions adopted by the board.

(b) All directors are entitled to vote.

present is necessary to adopt a resolution. (Acts 66th Leg., R.S.,

Ch. 435, Sec. 6(c).)

Sec.6906.056.OFFICERS AND ASSISTANTS. (a) The board

shall elect a president, vice president, secretary, and treasurer

at the first meeting of the newly constituted board each year and at

any time necessary to fill a vacancy.

(b) The board shall elect the president and vice president

from among the directors.

(1) may be held by one person; and

(2) are not required to be held by a director.

(d) The board may appoint as assistant board secretary one

or more persons who are not directors. (Acts 66th Leg., R.S., Ch.

435, Secs. 6(b) (part), (d) (part).)

Sec.6906.057.DUTIES OF OFFICERS AND ASSISTANTS. (a) The

board president shall preside at board meetings and perform other

duties prescribed by the board.

(b) The board treasurer shall perform duties and functions

prescribed by the board.

minutes, books, records, and seal of the board and shall perform

other duties and functions prescribed by the board. An assistant

board secretary may perform any duty or function of the board

secretary. (Acts 66th Leg., R.S., Ch. 435, Sec. 6(b) (part).)

Sec.6906.058.MEETINGS. The board shall have regular

meetings at times specified by board resolution and shall have

special meetings when called by the board president or by any two

directors. (Acts 66th Leg., R.S., Ch. 435, Sec. 6(e).)

Sec.6906.059.PERSONAL LIABILITY OF DIRECTORS. A director

is not personally liable for any bond issued or contract executed by

the district. (Acts 66th Leg., R.S., Ch. 435, Sec. 6(f).)

[Sections 6906.060-6906.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.6906.101.GENERAL POWERS. The district has all powers

necessary or appropriate to achieve the purposes of this chapter.

(Acts 66th Leg., R.S., Ch. 435, Sec. 9(a).)

Sec.6906.102.GENERAL POWERS REGARDING WATER. The

district has all rights, powers, and privileges necessary or useful

to enable it to acquire, provide, supply, deliver, and sell potable

water for any beneficial purpose in its boundaries and vicinity and

in Coryell and McLennan Counties. (Acts 66th Leg., R.S., Ch. 435,

Sec. 7.)

Sec.6906.103.GENERAL POWERS REGARDING WASTE. (a) The

district has all rights, powers, and privileges necessary or useful

to enable it to collect, transport, dispose of, and control

domestic, industrial, or communal wastes, whether in fluid, solid,

or composite state, inside and outside its boundaries.

(b) The district may exercise any power granted by Chapter

30, Water Code, to a district created under Section 59, Article XVI,

Texas Constitution. (Acts 66th Leg., R.S., Ch. 435, Secs. 8, 9(l).)

Sec.6906.104.DISTRICT BYLAWS AND RULES. The district may

adopt and enforce:

(1) bylaws and rules for the conduct of its affairs;

and

(2) rules that a municipal utility district may adopt

and enforce under Sections 54.205 et seq., Water Code. (Acts 66th

Leg., R.S., Ch. 435, Secs. 9(c) (part), (k).)

Sec.6906.105.PROPERTY ACQUISITION, USE, AND DISPOSITION.

(a) The district may acquire, own, rent, lease, accept, hold, or

dispose of property, or an interest in property, including a right

or easement, by purchase, exchange, gift, assignment,

condemnation, sale, lease, or otherwise, in performing district

duties or exercising district powers under this chapter.

(b) The district may hold, manage, operate, or improve

property.

structure, or facility from or to any person to achieve the purposes

of this chapter.

(d) The district may sell, assign, lease, encumber,

mortgage, or otherwise dispose of property, or an interest in

property, and release or relinquish a right, title, claim, lien,

interest, easement, or demand, regardless of the manner in which

acquired, and conduct a transaction authorized by this subsection

by public or private sale, with or without public bidding,

notwithstanding any other law. (Acts 66th Leg., R.S., Ch. 435,

Secs. 9(e), (f).)

Sec.6906.106.REQUESTS FOR AND ACCEPTANCE OF AID. The

district may request and accept an appropriation, grant,

allocation, subsidy, guarantee, aid, service, material, or gift

from any public or private source, including the federal

government, the state, a public agency, or a political subdivision.

(Acts 66th Leg., R.S., Ch. 435, Sec. 9(g).)

Sec.6906.107.DISTRICT OFFICE. The district may operate

and maintain an office. (Acts 66th Leg., R.S., Ch. 435, Sec. 9(h)

(part).)

Sec.6906.108.PERSONNEL. The district may appoint and

determine the duties, tenure, qualifications, and compensation of

district officers and employees, as well as any agent, professional

advisor, or counselor, including any financial consultant,

accountant, attorney, architect, engineer, appraiser, or financing

expert, considered necessary or advisable by the board. (Acts 66th

Leg., R.S., Ch. 435, Sec. 9(h) (part).)

Sec.6906.109.PERMITS. (a) The district may obtain

through appropriate proceedings permits from the Texas Commission

on Environmental Quality.

(b) The district may acquire water appropriation permits

from owners of permits by contract or otherwise. (Acts 66th Leg.,

R.S., Ch. 435, Sec. 10 (part).)

Sec.6906.110.GENERAL CONTRACT POWERS. (a) The district

may enter into and enforce a contract or agreement necessary or

convenient to the exercise of the powers, rights, privileges, and

functions conferred on the district by this chapter or the general

law, including a contract or agreement with any person as the board

considers necessary or proper for, or in connection with, any power

or function of the district for:

(1) the purchase or other acquisition, storage,

transportation, distribution, delivery, or sale of water;

(2) the collection, transportation, processing, or

disposal of waste; or

(3) the construction, acquisition, ownership,

financing, operation, maintenance, sale, leasing to or from, or

other use or disposition of any facilities authorized to be

developed, acquired, or constructed under this chapter or the

general law.

(b) The authority to enter into or enforce the contract or

agreement includes the authority to enter into or enforce a

contract or agreement regarding:

(1) any improvements, structures, facilities,

equipment, and other property of any kind in connection with the

subject of the contract or agreement;

(2) any related land, leaseholds, and easements; and

(3) any interests in the property.

(1) may not have a term of more than 40 years; and

(2) may contain provisions the board determines to be

in the best interest of the district.

(d) The district may pledge all or part of its revenue to the

payment of its obligations under the contract or agreement to the

same extent and on the same conditions as it may pledge revenue to

secure district bonds. (Acts 66th Leg., R.S., Ch. 435, Sec. 11(a).)

Sec. 6906.111. AUTHORITY OF PUBLIC AGENCIES AND POLITICAL

SUBDIVISIONS TO CONTRACT WITH DISTRICT. (a) A public agency or

political subdivision of this state may enter into a contract or

agreement with the district, on terms agreed to by the parties, for:

(1) the purchase or sale of water;

(2) waste collection, processing, or disposal; or

(3) any purpose relating to the district's powers or

functions.

(b) Approval, notice, consent, or an election is not

required in connection with a contract or agreement. (Acts 66th

Leg., R.S., Ch. 435, Sec. 11(b) (part).)

Sec.6906.112.ACQUISITION OF LAND; STORAGE CAPACITY. (a)

The district may acquire land, or an interest in land, inside or

outside the district for any work, plant, or other facility

necessary or useful to divert, impound, store, drill for, pump,

treat, or transport water for municipal, domestic, industrial,

mining, oil flooding, or any other useful purpose.

(b) The district may lease, purchase, or otherwise acquire

rights in and to storage and storage capacity in any reservoir

constructed or to be constructed by the United States or any other

person. (Acts 66th Leg., R.S., Ch. 435, Secs. 10 (part), 13

(part).)

Sec.6906.113.CONSTRUCTION CONTRACTS. (a) The district

may award a construction contract that requires an expenditure of

more than $5,000 only after publication of notice to bidders once

each week for two consecutive weeks in a newspaper of general

circulation in the district.

(b) The notice is sufficient if it states:

(1) the time and place for opening the bids;

(2) the general nature of the work to be done;

(3) the material, equipment, or supplies to be

purchased; and

(4) where the terms of bidding and copies of the plans

and specifications may be obtained. (Acts 66th Leg., R.S., Ch. 435,

Sec. 15.)

Sec.6906.114.CONVEYANCE OF LAND TO DISTRICT. A public

agency or political subdivision of this state may lease, sell, or

otherwise convey to the district any of its land, improvements,

property, plants, lines, or other facilities related to the supply

of water or the collection, processing, or disposal of waste for any

consideration that the parties agree is adequate. Approval,

notice, consent, or an election is not required in connection with a

conveyance, contract, or agreement. (Acts 66th Leg., R.S., Ch.

435, Sec. 11(b) (part).)

Sec.6906.115.DISPOSAL OF PROPERTY. Subject to the terms

of a resolution or deed of trust authorizing or securing bonds

issued by the district, the district may sell, lease, rent, trade,

or otherwise dispose of property under terms considered by the

board to be consistent with district purposes. (Acts 66th Leg.,

R.S., Ch. 435, Sec. 13 (part).)

Sec.6906.116.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, or any other

interest in land, and other property and easements, inside or

outside the district.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code, except that the

district is not required to:

(1) give bond for appeal or bond for costs in a

condemnation or other suit to which it is a party; or

(2) deposit double the amount of an award in a suit.

of Chapter 21, Property Code.

(d) The board shall determine the amount and the type of

interest in land, other property, or easements to be acquired.

(Acts 66th Leg., R.S., Ch. 435, Sec. 14(a) (part).)

Sec.6906.117.COST OF RELOCATING OR ALTERING PROPERTY.

(a) In this section, the term "sole expense" means the actual cost

of the relocation, raising, lowering, rerouting, or change in grade

or alteration of construction required under Subsection (b) to

provide a comparable replacement without enhancing the facility,

after deducting the net salvage value derived from the old

facility.

(b) If the district's exercise of its eminent domain,

police, or other power requires relocating, raising, lowering,

rerouting, changing the grade of, or altering the construction of

any railroad, electric, transmission, telegraph, or telephone

line, conduit, pole, property or facility, or pipeline, the action

shall be accomplished at the sole expense of the district. (Acts

66th Leg., R.S., Ch. 435, Sec. 14(c).)

Sec.6906.118.RIGHTS-OF-WAY; EASEMENTS. The district has

all necessary or useful right-of-way and easements along, over,

under, and across all public, state, municipal, and county roads,

highways, and places for any of its purposes. The district shall

restore a facility used to its previous condition as nearly as

possible at the sole expense of the district. (Acts 66th Leg.,

R.S., Ch. 435, Sec. 14(b).)

Sec.6906.119.SEAL. The district may adopt an official

seal. (Acts 66th Leg., R.S., Ch. 435, Sec. 9(c) (part).)

[Sections 6906.120-6906.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.6906.151.DISTRICT MONEY. The district may acquire,

hold, use, and dispose of its receipts and money from any source.

(Acts 66th Leg., R.S., Ch. 435, Sec. 9(d) (part).)

Sec.6906.152.AUTHORITY TO BORROW MONEY AND ISSUE BONDS.

The district, in the manner and to the extent permitted by this

chapter, may:

(1) borrow money for any of its corporate purposes;

(2) enter into agreements in connection with the

borrowing;

(3) issue its bonds for money borrowed;

(4) provide for and secure the payment of its bonds;

and

(5) provide for the rights of the holders of its bonds.

(Acts 66th Leg., R.S., Ch. 435, Sec. 9(i).)

Sec.6906.153.DEPOSITORY. (a) The board shall designate

one or more banks or savings and loan associations inside or outside

the district to serve as the depository for the district's money.

(b) All of the district's money shall be deposited in the

depository designated by the board, except that:

(1) bond proceeds and money pledged to pay bonds, to

the extent provided in a resolution or trust indenture authorizing

or securing district bonds, may be deposited with another bank or

trustee named in the bond resolution or trust indenture; and

(2) money shall be remitted to each paying agent for

the payment of principal of and interest on the bonds.

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 in this state. (Acts 66th Leg., R.S., Ch.

435, Secs. 9(d) (part), 21 (part).)

Sec.6906.154.INVESTMENT OF DISTRICT MONEY. The board may

invest district money in obligations and make time deposits of

district money in a manner determined by the board or in the manner

permitted or required in a resolution or trust indenture

authorizing or securing district bonds. (Acts 66th Leg., R.S., Ch.

435, Sec. 21 (part).)

Sec. 6906.155. DISTRICT FACILITIES EXEMPT FROM TAXATION AND

ASSESSMENT. The district is not required to pay a tax or assessment

on its facilities or any part of its facilities. (Acts 66th Leg.,

R.S., Ch. 435, Sec. 23 (part).)

[Sections 6906.156-6906.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.6906.201.AUTHORITY TO ISSUE BONDS. (a) The district

may issue bonds payable from and secured by district revenue to

carry out any purpose or power conferred on the district by this

chapter. The bonds must be authorized by a board resolution.

(b) The bonds must be issued in the manner and under the

terms of the resolution authorizing the issuance of the bonds.

(Acts 66th Leg., R.S., Ch. 435, Secs. 16(a) (part), (b) (part),

(c).)

Sec.6906.202.FORM OF BONDS. District bonds must be:

(1) issued in the district's name;

(2) signed by the president or vice president; and

(3) attested by the secretary. (Acts 66th Leg., R.S.,

Ch. 435, Sec. 16(b) (part).)

Sec.6906.203.MATURITY. District bonds must mature not

later than 40 years after the date of their issuance. (Acts 66th

Leg., R.S., Ch. 435, Sec. 16(b) (part).)

Sec.6906.204.BONDS SECURED BY REVENUE; ADDITIONAL BONDS.

(a) District bonds may be secured by a pledge of all or part of the

district's revenue, or by all or part of the payments or rentals

under one or more contracts or leases specified by board resolution

or a trust indenture securing the bonds.

(b) A resolution authorizing the issuance of bonds secured

by a pledge of revenue of all or part of the district's facilities

may provide that the district shall first pay the expenses of

operating and maintaining all or part of the facilities as the board

considers appropriate before paying the principal of and interest

on the bonds.

by revenue, contract payments, or lease rentals may reserve to the

district the right, under conditions specified by the resolution,

to issue additional bonds that will be on a parity with, superior

to, or subordinate to the bonds then being issued. (Acts 66th Leg.,

R.S., Ch. 435, Sec. 16(d).)

Sec.6906.205.ADDITIONAL SECURITY. (a) District bonds

may be additionally secured, at the discretion of the board, by a

deed of trust or mortgage lien on all or part of the district's

physical property, facilities, easements, franchises, water rights

and appropriation permits, leases, contracts, and all rights

appurtenant to the property, vesting in the trustee power to:

(1) sell the property for the payment of the debt;

(2) operate the property; and

(3) take other action to further secure the bonds.

(b) A purchaser under a sale under the deed of trust lien, if

one is given:

(1) is the absolute owner of the property, facilities,

and rights purchased; and

(2) is entitled to maintain and operate the property,

facilities, and rights. (Acts 66th Leg., R.S., Ch. 435, Sec. 18

(part).)

Sec.6906.206.TRUST INDENTURE. (a) District bonds,

including refunding bonds, may be additionally secured by a trust

indenture. The trustee may be a bank with trust powers located

inside or outside the state.

(b) A trust indenture, regardless of the existence of a deed

of trust or mortgage lien on the property, may:

(1) provide for the security of the bonds and the

preservation of the trust estate in the manner prescribed by the

board;

(2) provide for amendment or modification of the trust

indenture;

(3) provide for the issuance of bonds to replace lost

or mutilated bonds;

(4) condition the right to spend district money or

sell district property on the approval of a licensed engineer

selected as provided by the trust indenture; and

(5) provide for the investment of district money.

(Acts 66th Leg., R.S., Ch. 435, Sec. 18 (part).)

Sec.6906.207.CHARGES FOR DISTRICT SERVICES. If district

bonds payable wholly from revenue are issued, the board shall set

and revise the rates, fees, and charges assessed for water sold and

waste collection and treatment services provided by the district.

The rates, fees, and charges must be sufficient to:

(1) pay the expense of operating and maintaining the

district facilities that generate the revenue from which the bonds

will be paid;

(2) pay the principal of and interest on the bonds when due;

and

(3) maintain the reserve fund and other funds as provided in

the resolution authorizing the bonds. (Acts 66th Leg., R.S., Ch.

435, Sec. 16(e) (part).)

Sec. 6906.208. STATE PLEDGE REGARDING RIGHTS AND REMEDIES

OF BONDHOLDERS. Without depriving this state of its power to

regulate and control the rates, fees, and charges assessed for

water sold and waste collection and treatment services provided by

the district, the state pledges to and agrees with the holders of

district bonds that the state will not exercise its power to

regulate and control the rates, fees, and charges in any way that

would impair the rights or remedies of the holders of the bonds.

(Acts 66th Leg., R.S., Ch. 435, Sec. 16(e) (part).)

Sec.6906.209.USE OF BOND PROCEEDS. (a) The district may

set aside an amount of proceeds from the sale of district bonds for:

(1) the payment of interest expected to accrue during

construction not to exceed three years;

(2) a debt service reserve fund; and

(3) other funds as may be provided in the resolution

authorizing the bonds or in the trust indenture.

(b) The district may use proceeds from the sale of the bonds

to pay any expense necessarily incurred in accomplishing the

purpose of the district, including any expense of issuing and

selling the bonds. (Acts 66th Leg., R.S., Ch. 435, Sec. 16(f).)

Sec.6906.210.APPOINTMENT OF RECEIVER. (a) On default or

threatened default in the payment of the principal of or interest on

district bonds that are payable wholly or partly from revenue, a

court may, on petition of the holders of outstanding bonds, appoint

a receiver for the district.

(b) The receiver may collect and receive all district

income, employ and discharge district agents and employees, take

charge of money on hand, and manage the proprietary affairs of the

district without consent or hindrance by the board.

the sale of water or the collection, processing, or disposal of

waste or to renew contracts with the approval of the court that

appointed the receiver.

(d) The court may vest the receiver with any other power or

duty the court finds necessary to protect the bondholders. (Acts

66th Leg., R.S., Ch. 435, Sec. 16(g) (part).)

Sec.6906.211.REFUNDING BONDS. (a) The district may issue

refunding bonds to refund outstanding district bonds and interest

on those bonds.

(b) Refunding bonds may:

(1) be issued to refund bonds of more than one series;

(2) combine the pledges for the outstanding bonds for

the security of the refunding bonds; or

(3) be secured by a pledge of other or additional

revenue or mortgage liens.

issuance of other bonds, their security, and the remedies of the

holders apply to refunding bonds.

(d) The comptroller shall register the refunding bonds on

the surrender and cancellation of the bonds to be refunded.

(e) Instead of issuing bonds to be registered on the

surrender and cancellation of the bonds to be refunded, the

district, in the resolution authorizing the issuance of the

refunding bonds, may provide for the sale of the refunding bonds and

the deposit of the proceeds in a bank at which the bonds to be

refunded are payable. In that case, the refunding bonds may be

issued in an amount sufficient to pay the principal of and interest

and any required redemption premium on the bonds to be refunded to

any redemption date or to their maturity date, and the comptroller

shall register the refunding bonds without the surrender and

cancellation of the bonds to be refunded.

(f) The district may also issue refunding bonds under any

other applicable law. (Acts 66th Leg., R.S., Ch. 435, Sec. 17.)

Sec.6906.212.OTHER REMEDIES AND COVENANTS. The

resolution authorizing the issuance of any district bonds,

including refunding bonds, or the trust indenture securing the

bonds, may provide other remedies and covenants the board considers

necessary to issue the bonds on the most favorable terms. (Acts

66th Leg., R.S., Ch. 435, Sec. 16(h).)

Sec.6906.213.LIMITATION ON RIGHTS OF BONDHOLDERS. The

resolution authorizing the bonds or the trust indenture securing

the bonds may limit or qualify the rights of the holders of less

than all of the outstanding bonds payable from the same source to

institute or prosecute litigation affecting the district's

property or income. (Acts 66th Leg., R.S., Ch. 435, Sec. 16(g)

(part).)

Sec.6906.214.BONDS EXEMPT FROM TAXATION. A district

bond, the transfer of the bond, and the income from the bond,

including profits made on the sale of the bond, are exempt from

taxation in this state. (Acts 66th Leg., R.S., Ch. 435, Sec. 23

(part).)

SECTION 1.07. Subtitle C, Title 6, Special District Local

Laws Code, is amended by adding Chapters 7207 and 7208 to read as

follows:

CHAPTER 7207. TARKINGTON SPECIAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 7207.001. DEFINITIONS

Sec. 7207.002. NATURE OF DISTRICT

Sec. 7207.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 7207.004. DISTRICT TERRITORY

[Sections 7207.005-7207.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 7207.051. COMPOSITION OF BOARD; TERMS

Sec. 7207.052. DIRECTORS' ELECTION

[Sections 7207.053-7207.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 7207.101. SPECIAL UTILITY DISTRICT POWERS

Sec. 7207.102. GENERAL CONTRACT POWERS

Sec. 7207.103. WATER RIGHTS

Sec. 7207.104. WATER OR SEWER SYSTEM ACQUISITION OR

CONSTRUCTION

Sec. 7207.105. STANDARD SPECIFICATIONS FOR FACILITIES

Sec. 7207.106. REVENUE BONDS

CHAPTER 7207. TARKINGTON SPECIAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.7207.001.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 Tarkington Special Utility

District. (Acts 76th Leg., R.S., Ch. 1321, Sec. 2; New.)

Sec.7207.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Liberty County created

under Section 59, Article XVI, Texas Constitution, as a special

utility district. (Acts 76th Leg., R.S., Ch. 1321, Secs. 1(a)

(part), (b) (part), 11(a) (part).)

Sec.7207.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property in the district will benefit

from the works and projects to be accomplished by the district under

the powers conferred by Section 59, Article XVI, Texas

Constitution.

the purposes of Section 59, Article XVI, Texas Constitution. (Acts

76th Leg., R.S., Ch. 1321, Secs. 1(b) (part), 5.)

Sec.7207.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 3, Chapter 1321,

Acts of the 76th Legislature, Regular Session, 1999, as that

territory may have been modified under:

(1) Subchapter J, Chapter 49, Water Code;

(2) Subchapter H, Chapter 65, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, or

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond; or

(3) the legality or operation of the district or its

board. (New; Acts 76th Leg., R.S., Ch. 1321, Sec. 4.)

[Sections 7207.005-7207.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.7207.051.COMPOSITION OF BOARD; TERMS. (a) The

district is governed by a board of seven directors.

(b) Directors serve staggered terms of four years. (Acts

76th Leg., R.S., Ch. 1321, Secs. 7(a), (d).)

Sec.7207.052.DIRECTORS'ELECTION. (a) An election shall

be held in the district to elect the appropriate number of directors

to the board on the uniform election date in May of each

even-numbered year.

(b) The board may assign a position to each director's

office. If positions are assigned, directors shall subsequently be

elected by position and not at large. (Acts 76th Leg., R.S., Ch.

1321, Sec. 10.)

[Sections 7207.053-7207.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.7207.101.SPECIAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, functions, and duties

provided by general law applicable to a special utility district

created under Section 59, Article XVI, Texas Constitution,

including those provided by Chapters 49 and 65, Water Code. (Acts

76th Leg., R.S., Ch. 1321, Sec. 6(a) (part).)

Sec.7207.102.GENERAL CONTRACT POWERS. The district may

contract for:

(1) purchasing or selling raw or treated water;

(2) transporting, treating, or disposing of the

district's domestic, industrial, or communal waste;

(3) transporting, treating, or disposing of domestic,

industrial, or communal waste of others as provided by Chapter 30,

Water Code;

(4) purchasing, leasing, using, managing,

controlling, or operating a water treatment or distribution

facility or a sewer collection and treatment facility, including

all or part of a facility or system owned by another political

subdivision; or

(5) planning, surveying, investigating, or preparing

a report of any kind. (Acts 76th Leg., R.S., Ch. 1321, Sec. 11(b).)

Sec.7207.103.WATER RIGHTS. The district may acquire,

develop, and use rights to groundwater or surface water. (Acts 76th

Leg., R.S., Ch. 1321, Sec. 11(c).)

Sec. 7207.104. WATER OR SEWER SYSTEM ACQUISITION OR

CONSTRUCTION. (a) In this section, "system" means a water system,

sewer system, or water and sewer system.

(b) The district may:

(1) acquire a system that serves all or part of the

territory located inside or outside the district;

(2) construct a system; or

(3) improve or extend a system the district acquires.

bidding requirements of the Water Code.

(d) An existing contract for the acquisition of a water or

sewer facility may be made on terms agreed to by the parties. (Acts

76th Leg., R.S., Ch. 1321, Sec. 13.)

Sec.7207.105.STANDARD SPECIFICATIONS FOR FACILITIES. (a)

The district by rule may establish standard specifications for

facilities designed or constructed to:

(1) store, treat, or transport water for domestic,

municipal, or industrial purposes;

(2) collect, treat, and dispose of sewage; or

(3) dispose of solid waste.

(b) The board shall hold a public hearing on the adoption of

standards for district facilities. The board shall give notice of

the hearing to the Texas Commission on Environmental Quality and

shall publish notice of the hearing in a newspaper with general

circulation in the district not later than the 10th day before the

date set for the hearing.

may be made to a district court of Liberty County. The substantial

evidence rule applies to the appeal.

(d) The district may seek an injunction against the

construction of, addition to, or operation of a facility in the

district's jurisdiction if the construction, addition, or

operation does not comply with the district's standard

specifications.

(e) A specification adopted under this section does not

apply inside the boundaries or extraterritorial jurisdiction of a

municipality unless the governing body of the municipality by

resolution gives its approval.

(f) The district shall file the standard specifications

with the Texas Commission on Environmental Quality. (Acts 76th

Leg., R.S., Ch. 1321, Sec. 12.)

Sec.7207.106.REVENUE BONDS. (a) The district may issue

bonds to provide for improvements and the maintenance of those

improvements necessary to achieve the purposes of Section 59,

Article XVI, Texas Constitution.

(b) The district shall provide for the payment of the bonds

solely through revenue collected to pay the bonds as authorized by

Chapter 65, Water Code. (Acts 76th Leg., R.S., Ch. 1321, Sec. 11(a)

(part).)

CHAPTER 7208. PARKER COUNTY UTILITY DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 7208.001. DEFINITIONS

Sec. 7208.002. NATURE OF DISTRICT

Sec. 7208.003. PURPOSE

Sec. 7208.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 7208.005. DISTRICT TERRITORY

Sec. 7208.006. EXISTING OBLIGATIONS AND RIGHTS OF

OTHER ENTITIES PRESERVED

[Sections 7208.007-7208.050 reserved for expansion]

SUBCHAPTER B. ADDING TERRITORY OR NEW MEMBER ENTITIES

Sec. 7208.051. ADDING TERRITORY OF MEMBER ENTITIES

Sec. 7208.052. ADDING NEW MEMBER ENTITIES

Sec. 7208.053. APPOINTMENT OF DIRECTORS BY NEW MEMBER

ENTITY

[Sections 7208.054-7208.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec. 7208.101. GOVERNING BODY

Sec. 7208.102. TERMS

Sec. 7208.103. APPOINTMENT OF DIRECTORS

Sec. 7208.104. QUALIFICATIONS FOR OFFICE

Sec. 7208.105. EX OFFICIO DIRECTORS

Sec. 7208.106. VACANCY

Sec. 7208.107. REMOVAL FROM OFFICE

Sec. 7208.108. COMPENSATION; EXPENSES

Sec. 7208.109. OFFICERS

Sec. 7208.110. MEETINGS

Sec. 7208.111. QUORUM

Sec. 7208.112. VOTING REQUIREMENTS

Sec. 7208.113. CONFLICT OF INTEREST

Sec. 7208.114. DISTRICT EMPLOYEES

Sec. 7208.115. BYLAWS

Sec. 7208.116. CUSTOMER ADVISORY COUNCIL

[Sections 7208.117-7208.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES

Sec. 7208.151. GENERAL POWERS AND DUTIES OF DISTRICT

Sec. 7208.152. RULES

Sec. 7208.153. RULES RELATING TO WATER QUALITY

Sec. 7208.154. GENERAL WASTE AND WATER POWERS

Sec. 7208.155. PERMITS

Sec. 7208.156. GENERAL CONTRACTING AUTHORITY

Sec. 7208.157. CONTRACTS WITH DISTRICT FOR WASTEWATER

AND OTHER UTILITY SERVICES

Sec. 7208.158. AUTHORITY OF OTHER ENTITIES TO CONTRACT

WITH DISTRICT

Sec. 7208.159. JOINT AGREEMENTS

Sec. 7208.160. WASTEWATER AND OTHER NECESSARY

UTILITIES AND SERVICES

Sec. 7208.161. CONSTRUCTION OR ACQUISITION OF WORKS

AND FACILITIES

Sec. 7208.162. WASTE DISPOSAL SYSTEMS

Sec. 7208.163. SERVICES PROVIDED OUTSIDE SERVICE AREA

Sec. 7208.164. RIGHT OF EMINENT DOMAIN

Sec. 7208.165. COSTS OF RELOCATING OR ALTERING

PROPERTY

Sec. 7208.166. REGULATORY POWER OF MUNICIPALITIES

Sec. 7208.167. STATE SUPERVISION

Sec. 7208.168. RIGHTS AND DUTIES ASSUMED ON CREATION

OF DISTRICT

[Sections 7208.169-7208.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 7208.201. AUDITS

Sec. 7208.202. DEPOSITORY

Sec. 7208.203. INVESTMENT OF DISTRICT MONEY

Sec. 7208.204. RATES, FEES, CHARGES, AND RENTALS

Sec. 7208.205. ADMINISTRATION AND PLANNING COSTS FEE

Sec. 7208.206. IMPOSITION OF AD VALOREM TAXES

PROHIBITED

Sec. 7208.207. DISTRICT PROPERTY AND PROJECTS EXEMPT

FROM TAXATION AND ASSESSMENT

[Sections 7208.208-7208.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec. 7208.251. AUTHORITY TO ISSUE BONDS

Sec. 7208.252. ELECTION NOT REQUIRED

Sec. 7208.253. BONDS EXEMPT FROM TAXATION

Sec. 7208.254. PAYMENT AND SECURITY

Sec. 7208.255. MATURITY

Sec. 7208.256. INTEREST RATE

Sec. 7208.257. ADDITIONAL BONDS

Sec. 7208.258. USE OF BOND PROCEEDS

Sec. 7208.259. NEGOTIABLE INSTRUMENTS

CHAPTER 7208. PARKER COUNTY UTILITY DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec.7208.001.DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the

district.

(2) "Bond" means any interest-bearing obligation,

including a bond, note, debenture, certificate, warrant, security,

interim certificate or receipt, or other evidence of debt issued by

the district, whether general or special, negotiable or

nonnegotiable in form, in bearer or registered form, temporary or

permanent in form, or with or without interest coupons.

(3) "Customer" means a wholesale user of wastewater or

other services provided by the district.

(4) "Director" means a member of the board.

(5) "District" means the Parker County Utility

District No. 1.

(6) "Local government" means a municipality, a county,

or an entity created under Section 52, Article III, or Section 59,

Article XVI, Texas Constitution.

(7) "Member entity" means a public entity or private

utility entity that:

(A) provides retail utility service or regulates

water, wastewater, sewage, or solid waste in the district; and

(B) enters into a contract with the district for

service.

(8) "Participant entity" means a public entity or

private utility entity that:

(A) provides utility service inside the

boundaries of the entity; and

(B) contracts with the district for the

construction of and payment for wastewater or other utility service

projects to be financed or provided by the district.

(9) "Service area" means the territory inside the

district and inside the corporate limits or defined boundaries of

all member entities, participant entities, and customers of the

district, including the areas served by the member entities,

participant entities, and customers. (Acts 75th Leg., R.S., Ch.

1273, Secs. 1.02(1), (2), (3), (4), (5), (6), (7), (8), (10).)

Sec.7208.002.NATURE OF DISTRICT. The district is a

regional wastewater district created under Section 59, Article XVI,

Texas Constitution, and is essential to accomplish the purposes of

that provision. (Acts 75th Leg., R.S., Ch. 1273, Sec. 1.01.)

Sec.7208.003.PURPOSE. The district is created to:

(1) purchase, own, hold, lease, or otherwise acquire

wastewater collection facilities;

(2) build, operate, and maintain facilities to treat

and transport wastewater;

(3) protect, preserve, and restore the purity and

sanitary condition of water in the district; and

(4) provide other utilities in the district if the

utilities are not otherwise provided. (Acts 75th Leg., R.S., Ch.

1273, Sec. 1.03.)

Sec.7208.004.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

All land and other property included in the district will benefit

from the improvements, works, and projects that are to be

accomplished by the district under the powers conferred by this

chapter and Section 59, Article XVI, Texas Constitution.

(b) The district benefits the state by:

(1) contributing to economic development and

diversification;

(2) decreasing the rates of unemployment and

underemployment;

(3) stimulating agricultural innovation;

(4) fostering enterprise growth based on agriculture;

and

(5) contributing to the development or expansion of

transportation and commerce.

benefits the people, property, and industry of the state. The

district is performing an essential public function under the Texas

Constitution by accomplishing the purposes of the district. (Acts

75th Leg., R.S., Ch. 1273, Secs. 1.06, 1.07, 4.03 (part).)

Sec.7208.005.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 1.04, Chapter 1273,

Acts of the 75th Legislature, Regular Session, 1997, as that

territory may have been modified under:

(1) Subchapter B or its predecessor statutes, Sections

2.17 and 6.01, Chapter 1273, Acts of the 75th Legislature, Regular

Session, 1997;

(2) Subchapter J, Chapter 49, Water Code;

(3) Subchapter H, Chapter 54, Water Code;

(4) Subchapter H, Chapter 65, Water Code; or

(5) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, or

validity; or

(2) the legality or operation of the district or its

board. (Acts 75th Leg., R.S., Ch. 1273, Sec. 1.05; New.)

Sec. 7208.006. EXISTING OBLIGATIONS AND RIGHTS OF OTHER

ENTITIES PRESERVED. This chapter does not alter any existing

permit, contract, or other obligation or impair the right of any

entity to own, operate, maintain, or otherwise use, provide, or

control water, wastewater, solid waste, or liquid waste under the

entity's governing law. (Acts 75th Leg., R.S., Ch. 1273, Sec.

3.02(e).)

[Sections 7208.007-7208.050 reserved for expansion]

SUBCHAPTER B. ADDING TERRITORY OR NEW MEMBER ENTITIES

Sec.7208.051.ADDING TERRITORY OF MEMBER ENTITIES. On

request by a member entity, the district boundaries may be expanded

to include additional or the remaining territory of the member

entity if:

(1) the boundaries of the member entity are contiguous

to the district boundaries; and

(2) the requested expansion is approved by a

three-fourths majority vote of the board. (Acts 75th Leg., R.S.,

Ch. 1273, Sec. 2.17.)

Sec.7208.052.ADDING NEW MEMBER ENTITIES. (a) On receipt

of a petition submitted by the governing body of a local government,

another political subdivision, or a private entity, including a

water supply corporation, the board may add a member entity to the

district as provided by this section.

(b) A petition must be submitted in the manner and form

required by the district bylaws.

and hold a hearing on the petition to determine if adding the member

entity to the district:

(1) will benefit the territory or service area in the

member entity; and

(2) is in the best interests of the district.

(d) If the board determines that the proposed member entity

should be added to the district, the board shall issue an order:

(1) adding the proposed member entity and its

territory or service area to the district;

(2) making the member entity and its territory or

service area subject to the privileges, duties, assets, and

financial obligations of the district in the same manner as other

member entities; and

(3) requiring the member entity to reimburse the

existing member entities or directly reimburse the district an

amount that is an equitable pro rata share of the costs paid by the

existing member entities or the district in creating and operating

the district. (Acts 75th Leg., R.S., Ch. 1273, Sec. 6.01.)

Sec. 7208.053. APPOINTMENT OF DIRECTORS BY NEW MEMBER

ENTITY. If the board issues an order under Section 7208.052(d)

adding a member entity to the district, the governing body of the

member entity shall appoint the appropriate number of directors to

the board as provided by Section 7208.103. (Acts 75th Leg., R.S.,

Ch. 1273, Sec. 6.02.)

[Sections 7208.054-7208.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec.7208.101.GOVERNING BODY. The district is governed by

a board of directors. The board has exclusive authority to manage

the district. (Acts 75th Leg., R.S., Ch. 1273, Secs. 2.01(a),

2.07.)

Sec.7208.102.TERMS. Directors serve staggered four-year

terms beginning May 1 of the year in which the director is

appointed. (Acts 75th Leg., R.S., Ch. 1273, Secs. 2.01(h) (part),

(i) (part).)

Sec.7208.103.APPOINTMENT OF DIRECTORS. (a) Not earlier

than April 1 or later than April 30 of each year, the appropriate

number of directors, if any, shall be appointed to the board as

provided by Subsection (b).

(b) Each member entity shall appoint:

(1) one director if the number of member entities is at

least six;

(2) two directors if the number of member entities is

at least three but less than six;

(3) three directors if there are two member entities;

(4) six directors if there is one member entity.

director.

(d) The appointment of a director is not valid unless the

appointment is made as provided by this subchapter. (Acts 75th

Leg., R.S., Ch. 1273, Secs. 2.01(f), (g), (l), (m).)

Sec.7208.104.QUALIFICATIONS FOR OFFICE. A person is

qualified to serve as a director if the person:

(1) is at least 18 years of age;

(2) is a qualified voter who resides in the district;

(3) qualifies to serve as a director by taking the oath

of office;

(4) is eligible to serve as a director under

Subchapter C, Chapter 49, Water Code, except as otherwise provided

by this section; and

(5) verifies compliance with the requirements of this

section. (Acts 75th Leg., R.S., Ch. 1273, Sec. 2.03.)

Sec.7208.105.EX OFFICIO DIRECTORS. (a) The county judge

of Parker County, or a person designated by that judge, serves as an

ex officio director. An ex officio director may vote on any matter

considered by the board.

(b) The board may appoint or elect other ex officio

directors and provide for the powers and duties of ex officio

directors in the bylaws or rules of the district. (Acts 75th Leg.,

R.S., Ch. 1273, Secs. 2.01(d), 2.06.)

Sec.7208.106.VACANCY. (a) Any time after a board vacancy

occurs, the governing body of the appropriate member entity shall

fill the vacancy by appointment.

(b) The member entity shall provide notice of the

appointment to the board not later than six hours before the first

board meeting following the appointment.

received by the board. If the notice is not provided, the

appointment is not effective until after the first board meeting

following the appointment. (Acts 75th Leg., R.S., Ch. 1273, Sec.

2.01(k).)

Sec.7208.107.REMOVAL FROM OFFICE. A director may be

removed for any reason:

(1) by the governing body of the member entity that

appointed the director; or

(2) if three-fourths of the directors vote to remove

the director. (Acts 75th Leg., R.S., Ch. 1273, Sec. 2.02.)

Sec.7208.108.COMPENSATION; EXPENSES. (a) Except as

provided by Subsection (b), a director may not receive compensation

for serving on the board.

(b) A director may receive reimbursement for travel or other

expenses reasonably incurred by the director while acting on behalf

of the district. The board may adopt reasonable policies governing

the reimbursement of director expenses, including a requirement

that the director provide written verification of expenses. (Acts

75th Leg., R.S., Ch. 1273, Sec. 2.05.)

Sec.7208.109.OFFICERS. (a) Each year at the first board

meeting following the appointment of directors under Section

7208.103, the board shall elect from its members a president, a vice

president, a secretary, a treasurer, and any other officer the

board determines is necessary.

(b) The president is the chief executive officer of the

district.

the powers of the president if the president is absent or fails,

refuses, or is unable to act.

(d) The board secretary or an assistant secretary:

(1) shall keep a record of the minutes of board

meetings;

(2) shall maintain the official district records; and

(3) may certify the accuracy and authenticity of any

actions, proceedings, minutes, or records of the board or the

district.

(e) The board may provide for additional powers and duties

of elected officers in the district bylaws.

(f) Officers serve until the election of new officers.

(Acts 75th Leg., R.S., Ch. 1273, Secs. 2.09(a) (part), (c), (d),

2.10.)

Sec.7208.110.MEETINGS. The board shall hold regular and,

if necessary, special and emergency board meetings. The board shall

hold board meetings at a time and place specified in the district

bylaws. (Acts 75th Leg., R.S., Ch. 1273, Secs. 2.08(a) (part),

(c).)

Sec.7208.111.QUORUM. (a) A quorum of the directors is

required to be present at a board meeting for the board to conduct

district business.

(b) The board shall specify in the district bylaws the

number of directors that constitute a quorum. A quorum may not be

less than a majority of the directors serving on the board. (Acts

75th Leg., R.S., Ch. 1273, Sec. 2.14(a).)

Sec.7208.112.VOTING REQUIREMENTS. (a) The board shall

specify in the district bylaws the number of votes necessary to

approve a matter considered by the board. The number of votes

specified may not be less than a majority of the directors present

at the meeting at which the matter is being considered.

(b) A director, including the president, may vote on any

matter considered by the board, including a matter authorizing a

financial commitment to a capital project. This subsection applies

even if the director was appointed by a member entity that is not

participating in the project being considered by the board. (Acts

75th Leg., R.S., Ch. 1273, Secs. 2.04, 2.14(b).)

Sec.7208.113.CONFLICT OF INTEREST. District directors

and officers are subject to Chapter 572, Government Code. (Acts

75th Leg., R.S., Ch. 1273, Sec. 2.12.)

Sec.7208.114.DISTRICT EMPLOYEES. The board may appoint

and employ any person that the board determines is necessary to

conduct the affairs of the district, including a general manager,

engineer, attorney, financial advisor, accountant, or other

consultant. (Acts 75th Leg., R.S., Ch. 1273, Sec. 2.11.)

Sec.7208.115.BYLAWS. The board shall adopt bylaws to

govern matters of the district. (Acts 75th Leg., R.S., Ch. 1273,

Sec. 2.08(a) (part).)

Sec.7208.116.CUSTOMER ADVISORY COUNCIL. (a) The board

may establish a customer advisory council that consists of one

representative of each customer of the district.

(b) A representative serving on the customer advisory

council:

(1) has the powers and duties provided in the bylaws

and rules of the district; and

(2) may not vote on any matter considered by the board.

(Acts 75th Leg., R.S., Ch. 1273, Sec. 2.15.)

[Sections 7208.117-7208.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES

Sec.7208.151.GENERAL POWERS AND DUTIES OF DISTRICT.

Except as provided by Sections 7208.167 and 7208.206, the district

has all the rights, powers, privileges, functions, and duties:

(1) provided by general law, including Chapters 49,

54, and 65, Water Code; and

(2) conferred by Section 59, Article XVI, Texas

Constitution. (Acts 75th Leg., R.S., Ch. 1273, Sec. 1.08(a)

(part).)

Sec.7208.152.RULES. The board may adopt and enforce

reasonable rules to exercise the powers and perform the duties of

the district as provided by this chapter. (Acts 75th Leg., R.S.,

Ch. 1273, Sec. 2.18.)

Sec.7208.153.RULES RELATING TO WATER QUALITY. (a) The

district may adopt and enforce rules relating to protection of the

quality of water flowing to or from the areas in or surrounding a

lake, reservoir, or other source of water supply owned, operated,

or controlled by the district.

(b) A rule adopted by the district under this section must:

(1) relate to:

(A) preventing waste or unauthorized use of water

controlled by the district; or

(B) regulating privileges on land, a reservoir,

or an easement owned or controlled by the district; and

(2) be consistent with rules of the state. (Acts 75th

Leg., R.S., Ch. 1273, Sec. 3.09.)

Sec.7208.154.GENERAL WASTE AND WATER POWERS. The

district may:

(1) provide for:

(A) the collection, construction, improvement,

maintenance, and operation of wholesale wastewater and water

systems and treatment works necessary to provide wholesale service

to customers; and

(B) the acquisition, construction, improvement,

and maintenance of a water supply or reservoir, or an interest in a

water supply or reservoir, necessary to exercise and fulfill the

powers and duties of the district;

(2) supply water for municipal, domestic, and

industrial or other beneficial uses or controls;

(3) collect, treat, process, dispose of, and control

all domestic or industrial wastes, whether in fluid, solid, or

composite state;

(4) gather, conduct, divert, control, and treat local

storm water or local harmful excesses of water in the district; and

(5) irrigate and alter land elevations in the district

as needed. (Acts 75th Leg., R.S., Ch. 1273, Sec. 3.05.)

Sec.7208.155.PERMITS. The district may acquire a water

appropriation or other necessary permit from the state or a permit

owner. (Acts 75th Leg., R.S., Ch. 1273, Sec. 3.12(c).)

Sec.7208.156.GENERAL CONTRACTING AUTHORITY. (a) If

necessary to exercise the powers and accomplish the purposes of the

district, the district may contract with the United States, a

municipality, a county, a water supply corporation, an entity

created under Section 52, Article III, or Section 59, Article XVI,

Texas Constitution, or another public or private entity.

(b) The district may contract for the acquisition, rental,

lease, or operation of wastewater or water facilities owned or

operated by the party contracting with the district.

district may be satisfied from any general or specific source of

district money as determined by the board. (Acts 75th Leg., R.S.,

Ch. 1273, Secs. 3.12(a), (b), (d).)

Sec. 7208.157. CONTRACTS WITH DISTRICT FOR WASTEWATER AND

OTHER UTILITY SERVICES. (a) Except as provided by Subsection (b),

this chapter does not require a customer or prospective customer of

the district to secure wastewater or other utility service from the

district unless the customer or prospective customer contracts with

the district for that purpose.

(b) A customer or prospective customer is required to secure

wastewater or other utility service from the district if:

(1) the customer or prospective customer is not

receiving the service from another source; and

(2) the district provides the service or determines

that the district will make the service available to the customer or

prospective customer.

wastewater or other utility service from the district, a user of the

service under the contract must connect to the district's service

system if:

(1) the user is located inside the boundaries of the

customer; and

(2) the district's system is available for connection

at or near the property line of the user.

(d) A contract under this section may authorize the district

to:

(1) require the customer to terminate service provided

to a user who fails or refuses to pay for that service after

providing notice as required by law;

(2) terminate service provided to a customer or user

who fails or refuses to pay for that service after providing notice

as required by law; and

(3) terminate other utility services provided to a

customer or user if the customer or user fails or refuses to pay for

any service provided by the district after providing notice as

required by law. (Acts 75th Leg., R.S., Ch. 1273, Secs. 3.02(a),

(b), (c), (d).)

Sec. 7208.158. AUTHORITY OF OTHER ENTITIES TO CONTRACT WITH

DISTRICT. (a) A municipality, county, public agency, or political

subdivision of the state, an entity created under Section 52,

Article III, or Section 59, Article XVI, Texas Constitution, or a

water supply corporation may contract with the district if the

entity is conducting business wholly or partly inside the district.

(b) The governing body of an entity that contracts with the

district under this section may pledge to the payment of the

contract any source of revenue available to the governing body,

including revenue from ad valorem taxes.

of a contract money from the entity's water system, wastewater

system, or combined water and wastewater system, the payments are

an operating expense of that system. (Acts 75th Leg., R.S., Ch.

1273, Sec. 3.13.)

Sec.7208.159.JOINT AGREEMENTS. To accomplish the

objectives and exercise the powers of the district, the district

may enter into a joint agreement or contract with a water supply

corporation, a municipality, an entity created under Section 52,

Article III, or Section 59, Article XVI, Texas Constitution, a

county, a political subdivision of the state, the state, or another

private or public entity. (Acts 75th Leg., R.S., Ch. 1273, Sec.

3.15 (part).)

Sec. 7208.160. WASTEWATER AND OTHER NECESSARY UTILITIES AND

SERVICES. (a) The district may provide wastewater collection,

treatment, or service in the district.

(b) The district may own, operate, and provide other

necessary utilities and services in the district, including raw

water, potable water, water distribution and treatment, solid waste

collection and disposal, fire, police, and ambulance services, if:

(1) the right to own, operate, or provide the utility

or service has not been conveyed to another entity; or

(2) the entity to which the right has been conveyed

agrees to sell, cede, or otherwise convey to the district the right

to own, operate, or provide the utility or service.

operate, or provide other necessary utilities or services in the

district unless the district is required to own, operate, or

provide the utility or service under a permit, certificate, or

license issued by the state. (Acts 75th Leg., R.S., Ch. 1273, Sec.

3.01.)

Sec. 7208.161. CONSTRUCTION OR ACQUISITION OF WORKS AND

FACILITIES. The district may plan, lay out, construct, acquire,

own, operate, maintain, repair, improve, or contract for, inside or

outside the district, any works, improvements, facilities, plants,

equipment, and appliances, including any administrative property

and facilities, any permits, franchises, licenses, or contract or

property rights, and any levees, drains, waterways, lakes,

reservoirs, channels, conduits, sewers, dams, storm water

detention facilities, treatment plants, or other similar

facilities and improvements, whether for municipal, industrial,

agricultural, flood control, or related purposes, that are

necessary, helpful, or incidental to the exercise of any right,

power, privilege, or function provided by this chapter. (Acts 75th

Leg., R.S., Ch. 1273, Sec. 3.03.)

Sec.7208.162.WASTE DISPOSAL SYSTEMS. (a) The district

may establish, acquire, operate, or maintain a regional solid waste

disposal system or a nonhazardous liquid waste disposal system.

(b) If the district establishes a disposal system under

this section, the district shall provide services from the system

to:

(1) users as determined by the board if the services

are provided inside the district's service area; and

(2) customers if the services are provided outside the

district's service area. (Acts 75th Leg., R.S., Ch. 1273, Sec.

3.08.)

Sec.7208.163.SERVICES PROVIDED OUTSIDE SERVICE AREA. The

district may provide services outside the district's service area

as provided by state law. (Acts 75th Leg., R.S., Ch. 1273, Sec.

3.07.)

Sec.7208.164.RIGHT OFEMINENT DOMAIN. (a) The district

may acquire by eminent domain land, an easement, a right-of-way, or

other property or improvement inside or outside the district if

necessary or appropriate in exercising the powers and performing

the functions of the district.

(b) The district may exercise the power of eminent domain as

provided by state law, including Chapter 21, Property Code, except

that the district is not required to comply with Section 21.021(a),

Property Code, during the pendency of the subject litigation.

the district is not required to:

(1) pay in advance or give bond or other security for

costs;

(2) give bond for the issuance of a temporary

restraining order or a temporary injunction; or

(3) give bond for costs or supersedeas on an appeal or

writ of error.

(d) The district may not exercise the power of eminent

domain to acquire:

(1) property located in the existing corporate limits

of a municipality that is located wholly or partly inside the

district unless the governing body of the municipality in which the

property is located consents by resolution to the acquisition of

the property;

(2) property located outside the district to be used

as a water supply reservoir unless the county in which the reservoir

is to be located consents;

(3) property owned by a county, a municipality, an

entity created by special act of the legislature under Section 52,

Article III, or Section 59, Article XVI, Texas Constitution, a

political subdivision of the state, or an agency or instrumentality

of a county or municipality; or

(4) a waterworks system or a wastewater system owned

by a municipality, an entity created by special act of the

legislature under Section 52, Article III, or Section 59, Article

XVI, Texas Constitution, a political subdivision of the state, a

private party, or a nonprofit corporation. (Acts 75th Leg., R.S.,

Ch. 1273, Secs. 3.06(a), (b), (c), (d).)

Sec.7208.165.COSTS OF RELOCATING OR ALTERING PROPERTY.

If the district exercises the power of eminent domain and requires

relocating, raising, lowering, rerouting, changing the grade of, or

altering the construction of any railroad, highway, pipeline, or

electric transmission and electric distribution, telegraph, or

telephone lines, conduits, poles, or facilities, the district shall

pay the cost of relocating, raising, lowering, rerouting, changing

the grade, or altering the construction that equals the comparable

replacement cost without enhancement of facilities minus the net

salvage value derived from the old facility. (Acts 75th Leg., R.S.,

Ch. 1273, Sec. 3.06(e).)

Sec.7208.166.REGULATORY POWER OF MUNICIPALITIES. The

district and the land in the district are subject to any ordinance,

code, resolution, or rule, including any platting or zoning

requirement, of a municipality that has jurisdiction over territory

in the district. (Acts 75th Leg., R.S., Ch. 1273, Sec. 3.11.)

Sec.7208.167.STATE SUPERVISION. (a) The rights, powers,

privileges, functions, and duties of the district are subject to

the continuing right of supervision by this state exercised by the

Texas Commission on Environmental Quality.

(b) Except as otherwise provided by this chapter or other

law, the district may exercise the rights, powers, privileges,

functions, and duties conferred by this chapter without obtaining

approval from the Texas Commission on Environmental Quality. (Acts

75th Leg., R.S., Ch. 1273, Sec. 1.08(c).)

Sec. 7208.168. RIGHTS AND DUTIES ASSUMED ON CREATION OF

DISTRICT. The district may succeed to and assume the rights,

privileges, and duties, including contractual obligations, of the

Walnut Creek Special Utility District and the City of Springtown

relating to the creation of the district. (Acts 75th Leg., R.S.,

Ch. 1273, Sec. 4.02(b).)

[Sections 7208.169-7208.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec.7208.201.AUDITS. All funds and accounts of the

district shall be audited by an independent auditor. The district

shall maintain a copy of the audit in the district's official

records. (Acts 75th Leg., R.S., Ch. 1273, Sec. 4.01.)

Sec.7208.202.DEPOSITORY. The board, by order or

resolution, shall designate one or more banks inside or outside the

district to serve as depository for district money. Except as

provided by this chapter, district money shall be deposited in a

depository bank designated under this section. (Acts 75th Leg.,

R.S., Ch. 1273, Secs. 3.14(a), (b).)

Sec.7208.203.INVESTMENT OF DISTRICT MONEY. The board may

invest district money:

(1) in the same manner as provided for the investment

of county money; and

(2) as provided by Chapter 2256, Government Code.

(Acts 75th Leg., R.S., Ch. 1273, Sec. 3.14(c).)

Sec.7208.204.RATES, FEES, CHARGES, AND RENTALS. (a)

District rates, fees, and charges assessed to provide services and

facilities to customers and users of the district may vary

according to customer class, project, or service area to reflect

different costs of providing service.

(b) The district may require a customer to obtain a deposit

from a user for services or facilities provided by the district. A

deposit under this subsection may bear interest.

revenue, the board shall establish and revise rates of compensation

for water sold and wastewater or other services rendered by the

district that are sufficient:

(1) to pay operating and maintenance expenses of

district facilities;

(2) to pay the issued bonds as the bonds mature and the

interest that accrues on the bonds;

(3) to maintain the district's fund reserve; and

(4) to maintain other funds of the district provided

by the resolution that authorized the issuance of the bonds.

(d) A local government, water supply corporation, or other

entity that contracts with the district may:

(1) establish, charge, and collect fees, rates,

charges, rentals, or other amounts for services or facilities

provided under the contract; and

(2) pledge amounts that are sufficient to make the

required payments under the contract. (Acts 75th Leg., R.S., Ch.

1273, Secs. 3.10(a) (part), (b), (c), (d).)

Sec.7208.205.ADMINISTRATION AND PLANNING COSTS FEE. (a)

The district may charge each member entity an annual pro rata fee to

pay for administration and planning costs incurred by the district

that are unrelated to capital projects financed by the district.

(b) The fee may not exceed $2 per capita population of the

member entity unless the board and at least 75 percent of the member

entities of the district that together have at least 75 percent of

the population of the district agree to a different fee. (Acts 75th

Leg., R.S., Ch. 1273, Sec. 2.16.)

Sec. 7208.206. IMPOSITION OF AD VALOREM TAXES

PROHIBITED. The district may not impose an ad valorem tax. (Acts

75th Leg., R.S., Ch. 1273, Sec. 1.08(b).)

Sec. 7208.207. DISTRICT PROPERTY AND PROJECTS EXEMPT FROM

TAXATION AND ASSESSMENT. The district is not required to pay a tax

or assessment on any property or project owned, operated, leased,

or controlled by the district. (Acts 75th Leg., R.S., Ch. 1273,

Sec. 4.03 (part).)

[Sections 7208.208-7208.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec.7208.251.AUTHORITY TO ISSUE BONDS. The district may

issue bonds as provided by Chapters 1201 and 1371, Government Code,

to provide money for the district to exercise its powers and carry

out its purposes. (Acts 75th Leg., R.S., Ch. 1273, Secs. 5.01(a),

5.06(b).)

Sec.7208.252.ELECTION NOT REQUIRED. The district may

issue bonds without holding an election. (Acts 75th Leg., R.S., Ch.

1273, Sec. 5.01(b).)

Sec.7208.253.BONDS EXEMPT FROM TAXATION. Bonds issued by

the district, the transfer of the bonds, and income from those

bonds, including profits made on the sale of the bonds, are exempt

from taxation in this state. (Acts 75th Leg., R.S., Ch. 1273, Sec.

4.03 (part).)

Sec.7208.254.PAYMENT AND SECURITY. (a) District bonds

may be:

(1) made payable from all or part of the revenue of the

district derived from any lawful source, including revenue derived

from a contract with a customer or other user of facilities owned or

operated by the district or from the ownership and operation of any

waterworks system, wastewater system, sewer system, solid waste

disposal system, or nonhazardous liquid waste system, or a

combination of those systems; and

(2) paid from and secured by liens on the pledges of

all or part of the revenue, income, or receipts derived from the

district's ownership, operation, lease, or sale of the property,

buildings, structures, or facilities, including the proceeds or

revenue from contracts with any person.

(b) District bonds may be additionally secured by a mortgage

or deed of trust on real property owned or to be acquired by the

district and by a chattel mortgage or lien on any personal property

appurtenant to that real property. The board may authorize the

execution of a trust indenture, mortgage, deed of trust, or other

form of encumbrance. The district may also pledge to the payment of

the bonds all or part of a grant, a donation, or revenue or income

received or to be received from the United States or any public or

private source.

revenue, income, or receipts from fees, rentals, rates, charges, or

contract proceeds or payments to the payment of district bonds,

including the payment of principal, interest, and any other amount

required or permitted relating to the bonds. The pledged fees,

rentals, rates, charges, proceeds, or payments shall be established

and collected in amounts sufficient, together with any other

pledged resources, to provide for the payment of expenses relating

to the bonds and for operation and maintenance and other expenses

relating to those facilities.

(d) For purposes of Subsections (a) and (c), payments and

revenue pledged for the district's benefit under Sections

7208.158(a) and (b) are district revenue. (Acts 75th Leg., R.S.,

Ch. 1273, Sec. 5.02.)

Sec.7208.255.MATURITY. District bonds may not have a term

that exceeds 40 years from the date of issuance. (Acts 75th Leg.,

R.S., Ch. 1273, Sec. 5.03 (part).)

Sec.7208.256.INTEREST RATE. District bonds shall bear an

interest rate as provided by the resolution that authorized the

issuance of the bond. (Acts 75th Leg., R.S., Ch. 1273, Sec. 5.03

(part).)

Sec.7208.257.ADDITIONAL BONDS. District bonds may

provide for the subsequent issuance of additional parity bonds or

subordinate lien bonds under terms provided in the resolution that

authorized the issuance of the bond. (Acts 75th Leg., R.S., Ch.

1273, Sec. 5.03 (part).)

Sec.7208.258.USE OF BOND PROCEEDS. (a) If permitted in

the resolution that authorized the issuance of the bond, the

proceeds from the sale of the bond may be used:

(1) to pay the interest on the bond during the period

of acquisition or construction of facilities to be provided through

the issuance of the bond;

(2) to pay the operating and maintenance expenses of

district facilities;

(3) to create a reserve fund for the payment of the

principal of and interest on the bond; and

(4) in any other manner that is necessary,

appropriate, or convenient to accomplish a district purpose.

(b) The proceeds from the sale of a bond may be placed on

time deposit or invested as provided by the resolution that

authorized the issuance of the bond. (Acts 75th Leg., R.S., Ch.

1273, Sec. 5.05.)

Sec.7208.259.NEGOTIABLE INSTRUMENTS. Obligations under

this chapter are negotiable instruments for purposes of Chapter 8,

Business & Commerce Code. (Acts 75th Leg., R.S., Ch. 1273, Sec.

5.04.)

SECTION 1.08. Subtitle D, Title 6, Special District Local

Laws Code, is amended by adding Chapter 7503 to read as follows:

CHAPTER 7503. DELTA LAKE IRRIGATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 7503.001. DEFINITION

Sec. 7503.002. NATURE OF DISTRICT

Sec. 7503.003. LEGISLATIVE FINDINGS

Sec. 7503.004. DISTRICT TERRITORY

[Sections 7503.005-7503.050 reserved for expansion]

SUBCHAPTER B. POWERS

Sec. 7503.051. GENERAL POWERS

CHAPTER 7503. DELTA LAKE IRRIGATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.7503.001.DEFINITION. In this chapter, "district"

means the Delta Lake Irrigation District. (New.)

Sec.7503.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Willacy and Hidalgo

Counties, Texas, created under Section 59, Article XVI, Texas

Constitution. (Acts 41st Leg., R.S., 1929, Ch. 166, Secs. 1 (part),

2 (part); Acts 54th Leg., R.S., 1955, Ch. 40, Sec. 1.)

Sec.7503.003.LEGISLATIVE FINDINGS. The legislature finds

that the district is essential to accomplish the purposes of

Section 59, Article XVI, Texas Constitution. (Acts 41st Leg.,

R.S., 1929, Ch. 166, Sec. 14 (part).)

Sec.7503.004.DISTRICT TERRITORY. The district is

composed of the territory described by Section 1, Chapter 166, Acts

of the 41st Legislature, Regular Session, 1929, as that territory

may have been modified under:

(1) Chapter 25, General Laws, Acts of the 39th

Legislature, Regular Session, 1925 (Article 7880-1 et seq.,

Vernon's Texas Civil Statutes), before August 30, 1971;

(2) Chapter 3, General Laws, Acts of the 46th

Legislature, Regular Session, 1939 (Article 7775c-1, Vernon's

Texas Civil Statutes), before August 30, 1971;

(3) Subchapter O, Chapter 51, Water Code, before June

19, 1980;

(4) Subchapter J, Chapter 49, Water Code;

(5) Subchapter N, Chapter 58, Water Code; or

(6) other law. (New.)

[Sections 7503.005-7503.050 reserved for expansion]

SUBCHAPTER B. POWERS

Sec.7503.051.GENERAL POWERS. The district has:

(1) the powers of a conservation and reclamation

district under Section 59, Article XVI, Texas Constitution, and the

general laws of this state; and

(2) the powers of government and the authority to

exercise the rights, privileges, and functions that are conferred

by this chapter and the general laws of this state. (Acts 41st

Leg., R.S., 1929, Ch. 166, Secs. 1 (part), 2 (part), 14 (part).)

SECTION 1.09. Subtitle E, Title 6, Special District Local

Laws Code, is amended by adding Chapter 7802 to read as follows:

CHAPTER 7802. DALLAS COUNTY LEVEE IMPROVEMENT DISTRICT NO. 14

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 7802.001. DEFINITIONS

Sec. 7802.002. NATURE OF DISTRICT

Sec. 7802.003. FINDING OF PUBLIC PURPOSE

Sec. 7802.004. DISTRICT TERRITORY

Sec. 7802.005. APPLICABILITY OF OTHER LAW

[Sections 7802.006-7802.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS AND OFFICERS

Sec. 7802.051. BOARD

Sec. 7802.052. TREASURER

[Sections 7802.053-7802.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 7802.101. GENERAL POWERS AND DUTIES OF DISTRICT

Sec. 7802.102. POWERS AND DUTIES OF BOARD

Sec. 7802.103. IMPOSITION OF TAXES

CHAPTER 7802. DALLAS COUNTY LEVEE IMPROVEMENT DISTRICT NO. 14

SUBCHAPTER A. GENERAL PROVISIONS

Sec.7802.001.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 Dallas County Levee

Improvement District No. 14. (Acts 72nd Leg., R.S., Ch. 359, Sec.

1.)

Sec.7802.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district and a levee improvement

district created under Section 59, Article XVI, Texas Constitution.

(Acts 45th Leg., R.S., Ch. 306, Secs. 1 (part), 8 (part).)

Sec.7802.003.FINDING OF PUBLIC PURPOSE. The district is

essential to accomplish the purposes of Section 59, Article XVI,

Texas Constitution. (Acts 45th Leg., R.S., Ch. 306, Sec. 8 (part).)

Sec.7802.004.DISTRICT TERRITORY. The district is

composed of the territory in Dallas County described by Section 1,

Chapter 306, Acts of the 45th Legislature, Regular Session, 1937,

as that territory may have been modified under:

(1) Subchapter J, Chapter 49, Water Code; or

(2) other law. (Acts 45th Leg., R.S., Ch. 306, Sec. 1

(part); New.)

Sec.7802.005.APPLICABILITY OF OTHER LAW. Except as

otherwise provided by this chapter, Chapter 57, Water Code, applies

to the district. (Acts 72nd Leg., R.S., Ch. 359, Sec. 5(a) (part).)

[Sections 7802.006-7802.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS AND OFFICERS

Sec.7802.051.BOARD. (a) The district is governed by a

board of five elected directors.

(b) An election shall be held on the uniform election date

in May of each even-numbered year to elect the appropriate number of

directors. Except as provided by Subsection (c), directors serve

four-year terms.

director after each federal decennial census to reflect population

changes. At the first election after the precincts are revised, a

new director shall be elected from each precinct. The directors

shall draw lots to determine which two directors serve two-year

terms and which three directors serve four-year terms. (Acts 72nd

Leg., R.S., Ch. 359, Secs. 2(a) (part), (d); 7(c).)

Sec.7802.052.TREASURER. (a) The board may provide for

the appointment of a treasurer for the district.

(b) In addition to the powers and duties provided by other

law, the treasurer has the powers and duties of the county treasurer

under Chapter 57, Water Code. (Acts 72nd Leg., R.S., Ch. 359, Sec.

3.)

[Sections 7802.053-7802.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.7802.101.GENERAL POWERS AND DUTIES OF DISTRICT. The

district has:

(1) the powers of government; and

(2) the rights, privileges, and functions conferred by

this chapter, by Section 59, Article XVI, Texas Constitution, and

by the general laws of this state relating to levee improvement

districts, including Chapters 49 and 57, Water Code. (Acts 45th

Leg., R.S., Ch. 306, Secs. 1 (part), 8 (part); New.)

Sec.7802.102.POWERS AND DUTIES OF BOARD. The board has

the powers and duties delegated to the commissioners court and

county judge under Chapter 57, Water Code. (Acts 72nd Leg., R.S.,

Ch. 359, Sec. 5(a) (part).)

Sec.7802.103.IMPOSITION OF TAXES. (a) The Tax Code

governs the imposition of district taxes.

(b) The board may provide for the appointment of a tax

assessor-collector or may contract for the imposition of taxes with

Dallas County or with another person as provided by the Tax Code.

(Acts 72nd Leg., R.S., Ch. 359, Sec. 4.)

SECTION 1.10. Subtitle F, Title 6, Special District Local

Laws Code, is amended by adding Chapters 8103, 8121, 8127, 8154,

8155, 8156, 8159, 8160, 8161, 8163, 8164, 8165, 8166, 8167, 8168,

8169, 8170, 8171, 8172, 8173, 8174, 8177, 8178, 8179, 8180, 8181,

8182, 8183, 8184, 8186, 8187, 8188, 8191, and 8192 to read as

follows:

CHAPTER 8103. EL DORADO UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8103.001. DEFINITION

Sec. 8103.002. NATURE OF DISTRICT

Sec. 8103.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8103.004. DISTRICT TERRITORY

[Sections 8103.005-8103.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8103.051. COMPOSITION OF BOARD

[Sections 8103.052-8103.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8103.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8103. EL DORADO UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8103.001.DEFINITION. In this chapter, "district"

means the El Dorado Utility District. (V.A.C.S. Art. 8280-538,

Sec. 1 (part).)

Sec.8103.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Harris County created

under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.

8280-538, Sec. 1 (part).)

Sec.8103.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution.

(V.A.C.S. Art. 8280-538, Secs. 1 (part), 3.)

Sec.8103.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 4, Chapter 648, Acts

of the 62nd Legislature, Regular Session, 1971 (Article 8280-538,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (V.A.C.S. Art. 8280-538, Sec. 2; New.)

[Sections 8103.005-8103.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8103.051.COMPOSITION OF BOARD. The board of

directors is composed of five elected directors. (V.A.C.S. Art.

8280-538, Sec. 6 (part).)

[Sections 8103.052-8103.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8103.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district,

including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-538,

Sec. 5 (part); New.)

CHAPTER 8121. BEVIL OAKS MUNICIPAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8121.001. DEFINITION

Sec. 8121.002. NATURE OF DISTRICT

Sec. 8121.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8121.004. DISTRICT TERRITORY

[Sections 8121.005-8121.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8121.051. COMPOSITION OF BOARD

[Sections 8121.052-8121.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8121.101. MUNICIPAL UTILITY DISTRICT POWERS

Sec. 8121.102. HEARING NOT REQUIRED FOR EXCLUSION OF

TERRITORY

CHAPTER 8121. BEVIL OAKS MUNICIPAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8121.001.DEFINITION. In this chapter, "district"

means the Bevil Oaks Municipal Utility District. (Acts 63rd Leg.,

R.S., Ch. 621, Sec. 1 (part).)

Sec.8121.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Jefferson County, created

under Section 59, Article XVI, Texas Constitution. (Acts 63rd

Leg., R.S., Ch. 621, Sec. 1 (part).)

Sec.8121.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution. (Acts

63rd Leg., R.S., Ch. 621, Secs. 1 (part), 3.)

Sec.8121.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 6, Chapter 621, Acts

of the 63rd Legislature, Regular Session, 1973, as that territory

may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (Acts 63rd Leg., R.S., Ch. 621, Sec. 2; New.)

[Sections 8121.005-8121.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8121.051.COMPOSITION OF BOARD. The board of

directors is composed of five elected directors. (Acts 63rd Leg.,

R.S., Ch. 621, Sec. 8(b) (part).)

[Sections 8121.052-8121.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8121.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district,

including Chapters 49 and 54, Water Code. (Acts 63rd Leg., R.S.,

Ch. 621, Sec. 7 (part).)

Sec. 8121.102. HEARING NOT REQUIRED FOR EXCLUSION OF

TERRITORY. The board is not required to call or hold a hearing on

the exclusion of land or other property from the district,

including a hearing on the petition of a landowner or other property

owner in the district. (Acts 63rd Leg., R.S., Ch. 621, Sec. 5

(part).)

CHAPTER 8127. BILMA PUBLIC UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8127.001. DEFINITION

Sec. 8127.002. NATURE OF DISTRICT

Sec. 8127.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8127.004. DISTRICT TERRITORY

[Sections 8127.005-8127.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8127.051. COMPOSITION OF BOARD

[Sections 8127.052-8127.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8127.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8127. BILMA PUBLIC UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8127.001.DEFINITION. In this chapter, "district"

means the Bilma Public Utility District. (V.A.C.S. Art. 8280-512,

Sec. 1 (part).)

Sec.8127.002.NATURE OF DISTRICT. Notwithstanding

provisions of the general laws relating to consent by political

subdivisions for the creation of conservation and reclamation

districts, the district is a conservation and reclamation district

in Harris County created under Section 59, Article XVI, Texas

Constitution. (V.A.C.S. Art. 8280-512, Sec. 1 (part).)

Sec.8127.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution.

(V.A.C.S. Art. 8280-512, Secs. 1 (part), 3.)

Sec.8127.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 4, Chapter 559, Acts

of the 62nd Legislature, Regular Session, 1971 (Article 8280-512,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (V.A.C.S. Art. 8280-512, Sec. 2; New.)

[Sections 8127.005-8127.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8127.051.COMPOSITION OF BOARD. The board of

directors is composed of five elected directors. (V.A.C.S. Art.

8280-512, Sec. 6 (part).)

[Sections 8127.052-8127.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8127.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district,

including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-512,

Sec. 5 (part); New.)

CHAPTER 8154. BLUE RIDGE WEST MUNICIPAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8154.001. DEFINITIONS

Sec. 8154.002. NATURE OF DISTRICT

Sec. 8154.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8154.004. DISTRICT TERRITORY

[Sections 8154.005-8154.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8154.051. COMPOSITION OF BOARD

Sec. 8154.052. QUALIFICATIONS FOR OFFICE

Sec. 8154.053. DIRECTOR'S BOND

Sec. 8154.054. ABSENCE OF PRESIDENT OR SECRETARY FROM

BOARD MEETING; DUTY OF SECRETARY

[Sections 8154.055-8154.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8154.101. MUNICIPALITY UTILITY DISTRICT POWERS

AND DUTIES

Sec. 8154.102. ADDITIONAL POWERS

Sec. 8154.103. HEARINGS FOR EXCLUSION OF TERRITORY

Sec. 8154.104. EMINENT DOMAIN

Sec. 8154.105. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 8154.106. NOTICE OF ELECTION

[Sections 8154.107-8154.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8154.151. TAX METHOD

Sec. 8154.152. DEPOSITORY

Sec. 8154.153. PROCEDURE FOR PAYMENT

Sec. 8154.154. PROJECTS AND PURCHASES EXEMPT FROM

ASSESSMENT OR TAXATION

[Sections 8154.155-8154.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 8154.201. AUTHORITY TO ISSUE BONDS

Sec. 8154.202. EXCHANGING BONDS FOR PROPERTY OR WORK

Sec. 8154.203. BOND ELECTION

Sec. 8154.204. BONDS EXEMPT FROM TAXATION

CHAPTER 8154. BLUE RIDGE WEST MUNICIPAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8154.001.DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the

district.

(2) "District" means the Blue Ridge West Municipal

Utility District. (V.A.C.S. Art. 8280-379, Sec. 1 (part); New.)

Sec.8154.002.NATURE OF DISTRICT. The district is a

municipal utility district and a conservation and reclamation

district in Fort Bend County created under Section 59, Article XVI,

Texas Constitution. (V.A.C.S. Art. 8280-379, Sec. 1 (part); New.)

Sec.8154.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution.

(d) 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. The district, in

carrying out the purposes of this chapter, will be performing an

essential public function under the constitution. (V.A.C.S. Art.

8280-379, Secs. 1 (part), 4, 21 (part).)

Sec.8154.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 2, Chapter 633, Acts

of the 60th Legislature, Regular Session, 1967 (Article 8280-379,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (V.A.C.S. Art. 8280-379, Sec. 3; New.)

[Sections 8154.005-8154.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8154.051.COMPOSITION OF BOARD. The board consists of

five directors. (V.A.C.S. Art. 8280-379, Sec. 9 (part).)

Sec.8154.052.QUALIFICATIONS FOR OFFICE. (a) A person

must reside in this state to be elected or appointed as a director

of the board.

(b) A director is not required to reside in the district.

(V.A.C.S. Art. 8280-379, Sec. 9 (part).)

Sec.8154.053.DIRECTOR'S BOND. (a) Each director shall

execute a bond in the amount of $5,000 for the faithful performance

of the director's duties.

(b) The bond must be:

(1) approved by:

(A) the board; and

(B) the county judge or the commissioners court

of the county in which the district is located;

(2) filed for record in the office of the county clerk

of the county in which the district is located;

(3) filed for safekeeping in the district's

depository; and

(4) recorded in a record kept for that purpose in the

district office. (V.A.C.S. Art. 8280-379, Sec. 9 (part).)

Sec. 8154.054. ABSENCE OF PRESIDENT OR SECRETARY FROM BOARD

MEETING; DUTY OF SECRETARY. (a) If the board president is absent

from a board meeting at which an order is adopted or other action is

taken:

(1) the board vice president may sign the order or

action; or

(2) the board may authorize the president to sign the

order or action.

(b) The board secretary shall sign the minutes of each board

meeting.

the board:

(1) shall name a secretary pro tem for the meeting who:

(A) may exercise all powers and duties of the

secretary for the meeting;

(B) shall sign the minutes of the meeting; and

taken at the meeting; or

(2) may authorize the secretary to attest all orders

passed or other action taken at the meeting. (V.A.C.S. Art.

8280-379, Sec. 9 (part).)

[Sections 8154.055-8154.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8154.101. MUNICIPALITY UTILITY DISTRICT POWERS AND

DUTIES. The district has all of the rights, powers, privileges, and

duties provided by general law applicable to a municipal utility

district created under Section 59, Article XVI, Texas Constitution,

including those conferred by Chapters 49 and 54, Water Code.

(V.A.C.S. Art. 8280-379, Sec. 5 (part); New.)

Sec.8154.102.ADDITIONAL POWERS. (a) The district may:

(1) purchase, construct, or otherwise acquire a

waterworks system, sanitary sewer system, or storm sewer system and

drainage facility, or any part of those systems or facilities;

(2) make any necessary purchase, construction,

improvement, extension, or addition to a system or facility

described by Subdivision (1);

(3) purchase or acquire, operate, and maintain any

land, right-of-way, easement, site, equipment, building, plant,

structure, or facility necessary to a system or facility described

by Subdivision (1); and

(4) sell water and other services.

(b) The district may exercise any of the rights or powers

granted by this chapter inside or outside the district's

boundaries.

provide water or sewerage services to an area inside or outside the

district's boundaries. (V.A.C.S. Art. 8280-379, Sec. 16 (part).)

Sec.8154.103.HEARINGS FOR EXCLUSION OF TERRITORY. (a)

The board is not required to call or hold a hearing on the exclusion

of land or other property from the district.

(b) The board on its own motion may call and hold one or more

hearings on the exclusion of land or other property from the

district in the manner provided by general law. (V.A.C.S. Art.

8280-379, Sec. 7 (part).)

Sec.8154.104.EMINENT DOMAIN. The district may exercise

the power of eminent domain only in a county in which the district

is located. (V.A.C.S. Art. 8280-379, Sec. 12 (part).)

Sec.8154.105.COST OF RELOCATING OR ALTERING PROPERTY.

(a) In this section, "sole expense" means the actual cost of

relocating, raising, lowering, rerouting, or changing the grade of,

or altering the construction of a facility described by Subsection

(b) in providing a comparable replacement without enhancing the

facility, after deducting from that cost the net salvage value

derived from the old facility.

(b) If the district, in the exercise of the power of eminent

domain, the power of relocation, or any other power granted under

this chapter, makes necessary the relocation, raising, rerouting,

changing the grade of, or altering the construction of a highway, a

railroad, an electric transmission line, a pipeline, or a telegraph

or telephone property or facility, the necessary relocation,

raising, rerouting, changing the grade of, or alteration of

construction shall be accomplished at the sole expense of the

district. (V.A.C.S. Art. 8280-379, Sec. 12 (part).)

Sec.8154.106.NOTICE OF ELECTION. The board president or

secretary may give notice of an election. (V.A.C.S. Art. 8280-379,

Sec. 19.)

[Sections 8154.107-8154.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.8154.151.TAX METHOD. (a) The district shall use the

ad valorem plan of taxation.

(b) The board is not required to hold a hearing on the

adoption of a plan of taxation. (V.A.C.S. Art. 8280-379, Sec. 8.)

Sec.8154.152.DEPOSITORY. (a) The board shall select one

or more banks or trust companies 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. (V.A.C.S. Art.

8280-379, Sec. 15.)

Sec.8154.153.PROCEDURE FOR PAYMENT. An officer or

employee of the district, as designated by a standing order entered

in the board's minutes, may draw and sign a warrant to pay a current

expense, salary, or account of the district if the account has been

contracted and ordered paid by the board. (V.A.C.S. Art. 8280-379,

Sec. 9 (part).)

Sec. 8154.154. 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. (V.A.C.S. Art. 8280-379,

Sec. 21 (part).)

[Sections 8154.155-8154.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.8154.201.AUTHORITY TO ISSUE BONDS. The district may

vote and issue bonds of any kind, including refunding bonds, for

contiguous or noncontiguous areas for any district purpose.

(V.A.C.S. Art. 8280-379, Sec. 16 (part).)

Sec.8154.202.EXCHANGING BONDS FOR PROPERTY OR WORK. The

district may exchange bonds, including refunding bonds:

(1) for property acquired by purchase; or

(2) in payment of the contract price of work done or

materials or services furnished for the use and benefit of the

district. (V.A.C.S. Art. 8280-379, Sec. 17 (part).)

Sec.8154.203.BOND ELECTION. (a) On the failure of a bond

election:

(1) a general law that provides for calling a hearing

on the dissolution of the district after a district bond election

fails does not apply to the district; and

(2) the board may call a subsequent bond election

after the expiration of six months after the date of the election.

(b) The outcome of a bond election does not affect the

district's existence, function, or operation. (V.A.C.S. Art.

8280-379, Sec. 18.)

Sec.8154.204.BONDS EXEMPT FROM TAXATION. A bond issued

under this subchapter, the transfer of the bond, and income from the

bond, including profits made on the sale of the bond, are exempt

from taxation in this state. (V.A.C.S. Art. 8280-379, Sec. 21

(part).)

CHAPTER 8155. BOIS D'ARC MUNICIPAL UTILITY DISTRICT

OF FANNIN COUNTY, TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8155.001. DEFINITION

Sec. 8155.002. NATURE OF DISTRICT

Sec. 8155.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8155.004. DISTRICT TERRITORY

[Sections 8155.005-8155.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8155.051. COMPOSITION OF BOARD

Sec. 8155.052. VACANCIES

Sec. 8155.053. DIRECTOR'S BOND

[Sections 8155.054-8155.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8155.101. MUNICIPAL UTILITY DISTRICT POWERS

Sec. 8155.102. WATER AND SEWER SYSTEMS

Sec. 8155.103. TAXES

CHAPTER 8155. BOIS D'ARC MUNICIPAL UTILITY DISTRICT

OF FANNIN COUNTY, TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8155.001.DEFINITION. In this chapter, "district"

means the Bois D'Arc Municipal Utility District of Fannin County,

Texas. (Acts 66th Leg., R.S., Ch. 421, Sec. 1 (part).)

Sec.8155.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district created under Section 59,

Article XVI, Texas Constitution. (Acts 66th Leg., R.S., Ch. 421,

Sec. 1 (part).)

Sec.8155.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects that are to

be accomplished by the district under the powers conferred by

Section 59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution. (Acts

66th Leg., R.S., Ch. 421, Secs. 1 (part), 4 (part).)

Sec.8155.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 2, Chapter 421, Acts

of the 66th Legislature, Regular Session, 1979, as that territory

may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on a bond;

(3) the district's right to impose taxes; or

(4) the legality or operation of the district or its

governing body. (Acts 66th Leg., R.S., Ch. 421, Sec. 3 (part);

New.)

[Sections 8155.005-8155.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8155.051.COMPOSITION OF BOARD. The district is

governed by a board of seven directors. (Acts 66th Leg., R.S., Ch.

421, Sec. 7 (part).)

Sec.8155.052.VACANCIES. The Commissioners Court of

Fannin County shall appoint directors to fill all vacancies on the

board when the number of qualified directors is fewer than four.

(Acts 66th Leg., R.S., Ch. 421, Sec. 7 (part).)

Sec.8155.053.DIRECTOR'S BOND. A director is not required

to post a public official's bond. (Acts 66th Leg., R.S., Ch. 421,

Sec. 7 (part).)

[Sections 8155.054-8155.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8155.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district created

under Section 59, Article XVI, Texas Constitution, including

Chapters 49 and 54, Water Code. (Acts 66th Leg., R.S., Ch. 421,

Sec. 5 (part).)

Sec.8155.102.WATER AND SEWER SYSTEMS. (a) To serve the

inhabitants of the county in which the district is situated, the

district may:

(1) acquire, and may improve or extend, any existing

water or sewer system that serves all or part of the district

territory; or

(2) construct a water or sewer system.

(b) A contract to acquire an existing water or sewer

facility may be made on terms approved by the contracting parties.

(Acts 66th Leg., R.S., Ch. 421, Sec. 6 (part).)

Sec.8155.103.TAXES. The district may not impose a tax

unless the tax has been approved by the voters at an election called

for that purpose. (Acts 66th Leg., R.S., Ch. 421, Sec. 6 (part).)

CHAPTER 8156. EL PASO COUNTY MUNICIPAL UTILITY DISTRICT NO. 2

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8156.001. DEFINITION

Sec. 8156.002. NATURE OF DISTRICT

Sec. 8156.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8156.004. DISTRICT TERRITORY

Sec. 8156.005. EFFECT OF CHAPTER ON CITY OF EL PASO

[Sections 8156.006-8156.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8156.051. COMPOSITION OF BOARD

[Sections 8156.052-8156.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8156.101. MUNICIPAL UTILITY DISTRICT POWERS

Sec. 8156.102. ANNEXATION OF DISTRICT TERRITORY BY

POLITICAL SUBDIVISION

Sec. 8156.103. AUTHORITY OF EL PASO WATER UTILITIES

PUBLIC SERVICE BOARD OVER DISTRICT

FACILITIES

CHAPTER 8156. EL PASO COUNTY MUNICIPAL UTILITY DISTRICT NO. 2

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8156.001.DEFINITION. In this chapter, "district"

means El Paso County Municipal Utility District No. 2. (Acts 74th

Leg., R.S., Ch. 700, Sec. 2.)

Sec.8156.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in El Paso County created

under Section 59, Article XVI, Texas Constitution. (Acts 74th

Leg., R.S., Ch. 700, Secs. 1(a) (part), (b).)

Sec.8156.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the district

will benefit from the works and projects accomplished by the

district under the powers conferred by Section 59, Article XVI,

Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution. (Acts

74th Leg., R.S., Ch. 700, Secs. 1(b) (part), 5.)

Sec.8156.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 3, Chapter 700, Acts

of the 74th Legislature, Regular Session, 1995, as that territory

may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, or

validity;

(2) the district's right to impose a tax; or

(3) the legality or operation of the district or its

governing body. (Acts 74th Leg., R.S., Ch. 700, Sec. 4; New.)

Sec.8156.005.EFFECT OF CHAPTER ON CITY OF EL PASO. This

chapter does not diminish or affect the City of El Paso's

extraterritorial jurisdiction or its rights under the Local

Government Code. (Acts 74th Leg., R.S., Ch. 700, Sec. 6(e).)

[Sections 8156.006-8156.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8156.051.COMPOSITION OF BOARD. The district is

governed by a board of five directors. (Acts 74th Leg., R.S., Ch.

700, Sec. 7(a).)

[Sections 8156.052-8156.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8156.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, functions, and duties

provided by general law applicable to a municipal utility district

created under Section 59, Article XVI, Texas Constitution,

including Chapters 49, 50, and 54, Water Code. (Acts 74th Leg.,

R.S., Ch. 700, Sec. 6(a) (part).)

Sec. 8156.102. ANNEXATION OF DISTRICT TERRITORY BY

POLITICAL SUBDIVISION. A political subdivision that annexes the

district territory included in Section 3, Chapter 700, Acts of the

74th Legislature, Regular Session, 1995, as provided by Chapter 43,

Local Government Code, assumes the district's powers, functions,

and duties and any outstanding bonded indebtedness of the district.

(Acts 74th Leg., R.S., Ch. 700, Sec. 6(c).)

Sec. 8156.103. AUTHORITY OF EL PASO WATER UTILITIES PUBLIC

SERVICE BOARD OVER DISTRICT FACILITIES. (a) In this section,

"Public Service Board" means the El Paso Water Utilities Public

Service Board.

(b) The plans and specifications for any facilities to be

constructed or acquired by the district must be approved by the

Public Service Board. The Public Service Board may not

unreasonably withhold or delay the approval.

as the construction manager for district facilities to ensure that

the facilities meet the applicable standards of the Public Service

Board. The district shall pay the Public Service Board a reasonable

fee for those services consistent with fees charged for similar

services the Public Service Board provides on similar utility

construction contracts. (Acts 74th Leg., R.S., Ch. 700, Sec. 6(d);

New.)

CHAPTER 8159. EMERALD BAY MUNICIPAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8159.001. DEFINITION

Sec. 8159.002. NATURE OF DISTRICT

Sec. 8159.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8159.004. DISTRICT TERRITORY

[Sections 8159.005-8159.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8159.051. COMPOSITION OF BOARD

[Sections 8159.052-8159.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8159.101. MUNICIPAL UTILITY DISTRICT POWERS

Sec. 8159.102. GENERAL CONTRACT POWERS

Sec. 8159.103. CONTRACTS TO ACQUIRE EXISTING WATER OR

SEWER SYSTEMS

Sec. 8159.104. VOTER APPROVAL OF CERTAIN CONTRACTS

CHAPTER 8159. EMERALD BAY MUNICIPAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8159.001.DEFINITION. In this chapter, "district"

means Emerald Bay Municipal Utility District. (Acts 68th Leg.,

R.S., Ch. 722, Sec. 1 (part); New.)

Sec.8159.002.NATURE OF DISTRICT. (a) The district is a

conservation and reclamation district in Smith County created under

Section 59, Article XVI, Texas Constitution.

(b) The district is a political subdivision of the state.

(Acts 68th Leg., R.S., Ch. 722, Sec. 1 (part).)

Sec.8159.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the district

will benefit from the works and projects accomplished by the

district under Section 59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution. (Acts

68th Leg., R.S., Ch. 722, Secs. 1 (part), 3.)

Sec.8159.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 2(a), Chapter 722,

Acts of the 68th Legislature, Regular Session, 1983, as that

territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries of the district form a closure. A

mistake in the description of the boundaries under Section 2(a),

Chapter 722, Acts of the 68th Legislature, Regular Session, 1983,

does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue bonds for a purpose

for which the district is created or to pay the principal of and

interest on the bonds; or

(3) the legality or operation of the district or its

governing body. (Acts 68th Leg., R.S., Ch. 722, Secs. 2(b), (c);

New.)

[Sections 8159.005-8159.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8159.051.COMPOSITION OF BOARD. The district is

governed by a board of five directors who serve staggered terms.

(Acts 68th Leg., R.S., Ch. 722, Secs. 8(a) (part), (e) (part).)

[Sections 8159.052-8159.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8159.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district may exercise the rights, powers, privileges, and functions

provided by general law applicable to a municipal utility district

created under Section 59, Article XVI, Texas Constitution,

including Chapters 49 and 54, Water Code. (Acts 68th Leg., R.S.,

Ch. 722, Sec. 5(a).)

Sec.8159.102.GENERAL CONTRACT POWERS. The district may

enter into a water supply, sewage treatment, solid waste, or

drainage contract, or any combination of those contracts, with a

municipal corporation, political subdivision, or private entity.

(Acts 68th Leg., R.S., Ch. 722, Sec. 7(a).)

Sec. 8159.103. CONTRACTS TO ACQUIRE EXISTING WATER OR SEWER

SYSTEMS. A contract for the acquisition of an existing water or

sewer facility may be made on terms approved by the contracting

parties. (Acts 68th Leg., R.S., Ch. 722, Sec. 6(c) (part).)

Sec.8159.104.VOTER APPROVAL OF CERTAIN CONTRACTS. (a) A

contract that provides for the district to make payment from taxes

other than maintenance taxes must be approved by a majority of the

district voters voting on the question at an election held for that

purpose.

(b) The election shall be held in the same manner as an

election for the issuance of bonds payable from taxes by a municipal

utility district. (Acts 68th Leg., R.S., Ch. 722, Sec. 7(b)

(part).)

CHAPTER 8160. EMERALD FOREST UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8160.001. DEFINITIONS

Sec. 8160.002. NATURE OF DISTRICT

Sec. 8160.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8160.004. DISTRICT TERRITORY

[Sections 8160.005-8160.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8160.051. COMPOSITION OF BOARD

[Sections 8160.052-8160.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8160.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8160. EMERALD FOREST UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8160.001.DEFINITIONS. In this chapter, "district"

means Emerald Forest Utility District. (V.A.C.S. Art. 8280-519,

Sec. 1 (part).)

Sec.8160.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Harris County created

under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.

8280-519, Sec. 1 (part).)

Sec.8160.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution.

(V.A.C.S. Art. 8280-519, Secs. 1 (part), 3.)

Sec.8160.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 4, Chapter 584, Acts

of the 62nd Legislature, Regular Session, 1971 (Article 8280-519,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (V.A.C.S. Art. 8280-519, Sec. 2; New.)

[Sections 8160.005-8160.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8160.051.COMPOSITION OF BOARD. The board of

directors is composed of five elected directors. (V.A.C.S. Art.

8280-519, Sec. 6 (part).)

[Sections 8160.052-8160.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8160.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district,

including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-519,

Sec. 5 (part); New.)

CHAPTER 8161. ENCANTO REAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8161.001. DEFINITION

Sec. 8161.002. NATURE OF DISTRICT

Sec. 8161.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8161.004. DISTRICT TERRITORY

[Sections 8161.005-8161.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8161.051. COMPOSITION OF BOARD

[Sections 8161.052-8161.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8161.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8161. ENCANTO REAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8161.001.DEFINITION. In this chapter, "district"

means the Encanto Real Utility District. (V.A.C.S. Art. 8280-584,

Sec. 1 (part).)

Sec.8161.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Harris County created

under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.

8280-584, Sec. 1 (part).)

Sec.8161.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution.

(V.A.C.S. Art. 8280-584, Secs. 1 (part), 3.)

Sec.8161.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 4, Chapter 700, Acts

of the 62nd Legislature, Regular Session, 1971 (Article 8280-584,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (V.A.C.S. Art. 8280-584, Sec. 2; New.)

[Sections 8161.005-8161.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8161.051.COMPOSITION OF BOARD. The board of

directors is composed of five elected directors. (V.A.C.S. Art.

8280-584, Sec. 6 (part).)

[Sections 8161.052-8161.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8161.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district,

including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-584,

Sec. 5 (part); New.)

CHAPTER 8163. BURLESON COUNTY MUNICIPAL UTILITY

DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8163.001. DEFINITION

Sec. 8163.002. NATURE OF DISTRICT

Sec. 8163.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8163.004. DISTRICT TERRITORY

[Sections 8163.005-8163.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8163.051. COMPOSITION OF BOARD

[Sections 8163.052-8163.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8163.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8163. BURLESON COUNTY MUNICIPAL UTILITY

DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8163.001.DEFINITION. In this chapter, "district"

means the Burleson County Municipal Utility District No. 1.

(V.A.C.S. Art. 8280-587, Sec. 1 (part).)

Sec.8163.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Burleson County created

under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.

8280-587, Sec. 1 (part).)

Sec.8163.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution.

(V.A.C.S. Art. 8280-587, Secs. 1 (part), 3.)

Sec.8163.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 4, Chapter 703, Acts

of the 62nd Legislature, Regular Session, 1971 (Article 8280-587,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (V.A.C.S. Art. 8280-587, Sec. 2; New.)

[Sections 8163.005-8163.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8163.051.COMPOSITION OF BOARD. The board of

directors is composed of five elected directors. (V.A.C.S. Art.

8280-587, Sec. 6 (part).)

[Sections 8163.052-8163.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8163.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district,

including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-587,

Sec. 5 (part).)

CHAPTER 8164. CAPE ROYALE UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8164.001. DEFINITIONS

Sec. 8164.002. NATURE OF DISTRICT

Sec. 8164.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8164.004. DISTRICT TERRITORY

[Sections 8164.005-8164.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 8164.051. COMPOSITION OF BOARD

Sec. 8164.052. DIRECTOR'S BOND

Sec. 8164.053. BOARD VACANCY

Sec. 8164.054. DISTRICT OFFICE

Sec. 8164.055. ABSENCE OF PRESIDENT FROM BOARD MEETING

[Sections 8164.056-8164.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8164.101. MUNICIPAL UTILITY DISTRICT POWERS AND DUTIES

Sec. 8164.102. ADDITIONAL POWERS AND DUTIES

Sec. 8164.103. EMINENT DOMAIN

Sec. 8164.104. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 8164.105. CONTRACT FOR PURCHASE OF WATER, SEWER,

OR DRAINAGE SERVICES; ELECTION NOT

REQUIRED

Sec. 8164.106. NOTICE OF ELECTION

Sec. 8164.107. DISTRICT RULES

[Sections 8164.108-8164.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8164.151. TAX METHOD

Sec. 8164.152. DISTRICT ACCOUNTS

Sec. 8164.153. COPY OF AUDIT REPORT

Sec. 8164.154. PAYMENT OF TAX OR ASSESSMENT NOT

REQUIRED

Sec. 8164.155. DIRECTOR AS SHAREHOLDER IN DEPOSITORY

[Sections 8164.156-8164.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 8164.201. USE OF BOND PROCEEDS DURING

CONSTRUCTION

CHAPTER 8164. CAPE ROYALE UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8164.001.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 Cape Royale Utility District.

(V.A.C.S. Art. 8280-424, Sec. 1 (part); New.)

Sec.8164.002.NATURE OF DISTRICT. The district is a

municipal utility district and a conservation and reclamation

district in San Jacinto County, created under Section 59, Article

XVI, Texas Constitution. (V.A.C.S. Art. 8280-424, Sec. 1 (part);

New.)

Sec.8164.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution.

(d) 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. The district in

carrying out the purposes of this chapter will be performing an

essential public function under the Texas Constitution. (V.A.C.S.

Art. 8280-424, Secs. 1 (part), 4, 24 (part).)

Sec.8164.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 2, Chapter 270, Acts

of the 61st Legislature, Regular Session, 1969 (Article 8280-424,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code;

(3) former Section 9, Chapter 270, Acts of the 61st

Legislature, Regular Session, 1969 (Article 8280-424, Vernon's

Texas Civil Statutes); or

(4) other law.

(b) The boundaries and field notes of the district form a

closure. If a mistake is made in the field notes or in copying the

field notes in the legislative process, the mistake does not

affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or the

board. (V.A.C.S. Art. 8280-424, Sec. 3; New.)

[Sections 8164.005-8164.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.8164.051.COMPOSITION OF BOARD. The board consists of

five directors. (V.A.C.S. Art. 8280-424, Sec. 10 (part).)

Sec.8164.052.DIRECTOR'S BOND. (a) Each director shall

give a bond in the amount of $5,000 for the faithful performance of

the director's duties.

(b) The bond must be:

(1) approved by the county judge and the board;

(2) filed in the office of the county clerk of the

county or counties in which the district is located; and

(3) recorded in a record book kept for that purpose in

the district office. (V.A.C.S. Art. 8280-424, Sec. 10 (part).)

Sec.8164.053.BOARD VACANCY. (a) Except as provided by

Subsection (b), a vacancy in the office of director shall be filled

in the manner provided by Section 49.105, Water Code.

(b) The county judge of the county in which the district is

located shall appoint directors to fill all vacancies on the board

whenever the number of qualified directors is fewer than three.

(V.A.C.S. Art. 8280-424, Sec. 10 (part).)

Sec.8164.054.DISTRICT OFFICE. (a) Except as provided by

this section, the board shall designate, establish, and maintain a

district office as provided by Section 49.062, Water Code.

(b) The board may establish a second district office outside

the district. If the board establishes a second district office,

the board shall give notice of the location of that office by:

(1) filing a copy of the board resolution that

establishes the location of the office:

(A) with the Texas Commission on Environmental

Quality; and

(B) in the municipal utility district records of

each county in which the district is located; and

(2) publishing notice of the location of the office in

a newspaper of general circulation in each county in which the

district is located.

or dwelling is a public place for matters relating to district

business.

(d) The board shall provide notice of any change in the

location of the district office outside the district in the manner

required by Subsection (b). (V.A.C.S. Art. 8280-424, Sec. 15.)

Sec.8164.055.ABSENCE OF PRESIDENT FROM BOARD MEETING. If

the board president is absent from a board meeting:

(1) the board vice president may:

(A) sign an order adopted at the meeting; or

(B) implement any other action taken at the

meeting; or

(2) the board may authorize the president to sign the

order or implement the action. (V.A.C.S. Art. 8280-424, Sec. 10

(part).)

[Sections 8164.056-8164.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8164.101. MUNICIPAL UTILITY DISTRICT POWERS AND

DUTIES. The district has all of the rights, powers, privileges,

authority, and functions conferred by the general laws of this

state relating to municipal utility districts created under Section

59, Article XVI, Texas Constitution, including those conferred by

Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-424, Sec. 5

(part).)

Sec.8164.102.ADDITIONAL POWERS AND DUTIES. (a) The

district may:

(1) make, purchase, construct, lease, or otherwise

acquire property, works, facilities, existing improvements, or

improvements to be made, constructed, or acquired that are:

(A) inside or outside the district's boundaries;

and

(B) necessary to carry out the powers granted by

this chapter or general law; or

(2) enter into a contract with a person on terms the

board considers desirable, fair, and advantageous for:

(A) the purchase or sale of water;

(B) the transportation, treatment, and disposal

of the domestic, industrial, or communal wastes of the district or

others;

land and property in the district through the purchase,

construction, or installation of facilities, works, or

improvements that the district is otherwise authorized to do or

perform so that, to the greatest extent reasonably possible,

considering sound engineering and economic practices, all of the

land and property may ultimately receive the services of the

facilities, works, or improvements; and

(D) the performance of any of the powers granted

by this chapter or general law.

(b) A contract under Subsection (a)(2) may not have a

duration of more than 40 years. (V.A.C.S. Art. 8280-424, Sec. 5

(part).)

Sec.8164.103.EMINENT DOMAIN. The district may exercise

the power of eminent domain only:

(1) in a county in which the district is located; and

(2) when necessary to carry out the purposes for which

the district was created. (V.A.C.S. Art. 8280-424, Sec. 13

(part).)

Sec.8164.104.COST OF RELOCATING OR ALTERING PROPERTY.

(a) In this section, "sole expense" means the actual cost of

relocating, raising, lowering, rerouting, changing the grade of, or

altering the construction of a facility described by Subsection (b)

in providing comparable replacement without enhancement of the

facility, after deducting from that cost the net salvage value of

the old facility.

(b) If the district's exercise of the power of eminent

domain, the power of relocation, or any other power granted by this

chapter makes necessary the relocating, raising, rerouting or

changing the grade of, or alteration of the construction of a

highway, a railroad, an electric transmission line, a telegraph or

telephone property or facility, or a pipeline, the necessary action

shall be accomplished at the sole expense of the district.

(V.A.C.S. Art. 8280-424, Sec. 13 (part).)

Sec. 8164.105. CONTRACT FOR PURCHASE OF WATER, SEWER, OR

DRAINAGE SERVICES; ELECTION NOT REQUIRED. (a) The district may

enter into a contract with a political subdivision for water,

sewer, or drainage services or any combination of those services

without the necessity of an election by any contracting party.

(b) The district may pay for an obligation incurred by such

a contract by issuing bonds that, if otherwise necessary, have been

approved by the voters in the manner provided by this chapter.

the following parties that enters into such a contract with the

district:

(1) the United States;

(2) an agency or instrumentality of the United States;

(3) this state; or

(4) an agency or instrumentality of this state.

(V.A.C.S. Art. 8280-424, Sec. 5 (part).)

Sec.8164.106.NOTICE OF ELECTION. The board president or

secretary may give notice of an election. (V.A.C.S. Art. 8280-424,

Sec. 19.)

Sec.8164.107.DISTRICT RULES. The district shall adopt

and enforce reasonable and effective rules to secure and maintain

safe, sanitary, and adequate plumbing installations, connections,

and appurtenances as subsidiary parts of the district's sewerage

system to preserve the quality of water within or controlled by the

district. (V.A.C.S. Art. 8280-424, Sec. 16.)

[Sections 8164.108-8164.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.8164.151.TAX METHOD. (a) The district shall use the

ad valorem plan of taxation.

(b) The board is not required to hold a hearing on the

adoption of a plan of taxation. (V.A.C.S. Art. 8280-424, Sec. 8.)

Sec.8164.152.DISTRICT ACCOUNTS. The district shall keep

a complete system of the district's accounts. (V.A.C.S. Art.

8280-424, Sec. 14 (part).)

Sec.8164.153.COPY OF AUDIT REPORT. A copy of the audit

report prepared under Subchapter G, Chapter 49, Water Code, shall

be delivered:

(1) to each director; and

(2) on request to a holder of at least 25 percent of

the outstanding bonds of the district. (V.A.C.S. Art. 8280-424,

Sec. 14 (part).)

Sec.8164.154.PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED.

The district is not required to pay a tax or assessment on:

(1) district property; or

(2) a purchase made by the district. (V.A.C.S. Art.

8280-424, Sec. 24 (part).)

Sec.8164.155.DIRECTOR AS SHAREHOLDER IN DEPOSITORY. A

director may be a shareholder in a depository of district funds.

(V.A.C.S. Art. 8280-424, Sec. 14 (part).)

[Sections 8164.156-8164.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.8164.201.USE OF BOND PROCEEDS DURING CONSTRUCTION.

(a) The district may appropriate or set aside out of the proceeds

from the sale of any bonds issued under this chapter an amount for

the payment of interest, administrative, and operating expenses

expected to accrue during a period of construction, as may be

provided in the bond orders or resolutions.

(b) For purposes of this section, the period of construction

may not exceed three years. (V.A.C.S. Art. 8280-424, Sec. 12

(part).)

CHAPTER 8165. CHATEAU WOODS MUNICIPAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8165.001. DEFINITIONS

Sec. 8165.002. NATURE OF DISTRICT

Sec. 8165.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8165.004. DISTRICT TERRITORY

[Sections 8165.005-8165.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8165.051. COMPOSITION OF BOARD; TERMS

Sec. 8165.052. QUALIFICATIONS FOR OFFICE

Sec. 8165.053. VACANCIES

[Sections 8165.054-8165.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8165.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8165. CHATEAU WOODS MUNICIPAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8165.001.DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the

district.

(2) "City" means the city of Chateau Woods.

(3) "District" means the Chateau Woods Municipal

Utility District. (Acts 73rd Leg., R.S., Ch. 744, Sec. 2; New.)

Sec.8165.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Montgomery County created

under Section 59, Article XVI, Texas Constitution. (Acts 73rd

Leg., R.S., Ch. 744, Secs. 1(a), (b) (part).)

Sec.8165.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the district

will benefit from the works and projects accomplished by the

district under the powers conferred by Section 59, Article XVI,

Texas Constitution.

Section 59, Article XVI, Texas Constitution. (Acts 73rd Leg.,

R.S., Ch. 744, Secs. 1(b) (part), 4.)

Sec.8165.004.DISTRICT TERRITORY. The district is

composed of the territory described by Section 3, Chapter 744, Acts

of the 73rd Legislature, Regular Session, 1993, as that territory

may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law. (New.)

[Sections 8165.005-8165.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8165.051.COMPOSITION OF BOARD; TERMS. (a) The

district is governed by a board of five directors.

(b) Directors serve staggered four-year terms. (Acts 73rd

Leg., R.S., Ch. 744, Secs. 6(a), 7(c).)

Sec.8165.052.QUALIFICATIONS FOR OFFICE. To be eligible

to serve as director, a person must:

(1) be a registered voter; and

(2) reside in the district. (Acts 73rd Leg., R.S., Ch.

744, Sec. 6(c).)

Sec.8165.053.VACANCIES. A vacancy in the office of

director shall be filled by appointment of the board until the next

election for directors. If the position is not scheduled to be

filled at the election, the person elected to fill the position

shall serve only for the remainder of the unexpired term. (Acts

73rd Leg., R.S., Ch. 744, Sec. 6(b).)

[Sections 8165.054-8165.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8165.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, functions, and duties

provided by general law applicable to a municipal utility district

created under Section 59, Article XVI, Texas Constitution,

including those conferred by Chapters 49, 50, and 54, Water Code.

(Acts 73rd Leg., R.S., Ch. 744, Sec. 5(a) (part); New.)

CHAPTER 8166. CIBOLO CREEK MUNICIPAL AUTHORITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8166.001. DEFINITION

Sec. 8166.002. NATURE OF DISTRICT

Sec. 8166.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8166.004. DISTRICT TERRITORY

[Sections 8166.005-8166.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8166.051. COMPOSITION OF BOARD

[Sections 8166.052-8166.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8166.101. MUNICIPAL UTILITY DISTRICT AND WASTE

DISPOSAL POWERS

Sec. 8166.102. WATER SUPPLY IN AND TO MUNICIPALITY

[Sections 8166.103-8166.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8166.151. LIMITATION ON USE OF SEWAGE SYSTEM

REVENUE

CHAPTER 8166. CIBOLO CREEK MUNICIPAL AUTHORITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8166.001.DEFINITION. In this chapter, "district"

means the Cibolo Creek Municipal Authority. (V.A.C.S. Art.

8280-487, Sec. 1 (part).)

Sec.8166.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Bexar, Comal, and

Guadalupe Counties created under Section 59, Article XVI, Texas

Constitution. (V.A.C.S. Art. 8280-487, Sec. 1 (part).)

Sec.8166.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution.

(V.A.C.S. Art. 8280-487, Secs. 1 (part), 3 (part).)

Sec.8166.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 4, Chapter 347, Acts

of the 62nd Legislature, Regular Session, 1971 (Article 8280-487,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (V.A.C.S. Art. 8280-487, Sec. 2; New.)

[Sections 8166.005-8166.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8166.051.COMPOSITION OF BOARD. The board of

directors is composed of five elected directors. (V.A.C.S. Art.

8280-487, Sec. 6(a) (part).)

[Sections 8166.052-8166.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8166.101. MUNICIPAL UTILITY DISTRICT AND WASTE

DISPOSAL POWERS. The district has the rights, powers, privileges,

and functions provided by general law applicable to a municipal

utility district, including Chapters 49 and 54, Water Code, and

applicable to a river authority under Chapter 30, Water Code.

(V.A.C.S. Art. 8280-487, Sec. 5 (part); New.)

Sec.8166.102.WATER SUPPLY IN AND TO MUNICIPALITY. (a)

The powers granted by Section 8166.101 do not include the power to

supply water for municipal uses, domestic uses, or commercial

purposes, on a retail basis in the municipal limits or

extraterritorial jurisdiction of a municipality that lies wholly or

partly in the district.

(b) A municipality described by Subsection (a) may contract

with the district to supply surface water to the municipality for

resale. The municipality shall bear the full cost of the

development, transportation, distribution, and treatment of the

water. (V.A.C.S. Art. 8280-487, Sec. 5 (part).)

[Sections 8166.103-8166.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.8166.151.LIMITATION ON USE OF SEWAGE SYSTEM REVENUE.

The district may not use revenue received from the district sewage

system, including from the collection, transportation, treatment,

or disposal of sewage, and from other purposes pertaining to the

system, to pay for surface water development, transportation,

distribution, or treatment. (V.A.C.S. Art. 8280–487, Sec. 5

(part).)

CHAPTER 8167. CINCO MUNICIPAL UTILITY DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8167.001. DEFINITION

Sec. 8167.002. NATURE OF DISTRICT

Sec. 8167.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8167.004. DISTRICT TERRITORY

[Sections 8167.005-8167.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8167.051. COMPOSITION OF BOARD

[Sections 8167.052-8167.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8167.101. MUNICIPAL UTILITY DISTRICT POWERS

Sec. 8167.102. WATER CONSERVATION PROGRAM

CHAPTER 8167. CINCO MUNICIPAL UTILITY DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8167.001.DEFINITION. In this chapter, "district"

means Cinco Municipal Utility District No. 1. (Acts 69th Leg.,

R.S., Ch. 184, Secs. 1(a) (part), 2.)

Sec.8167.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Fort Bend County created

under Section 59, Article XVI, Texas Constitution. (Acts 69th

Leg., R.S., Ch. 184, Sec. 1(a) (part).)

Sec.8167.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution. (Acts

69th Leg., R.S., Ch. 184, Secs. 1(b), 5.)

Sec.8167.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 3, Chapter 184, Acts

of the 69th Legislature, Regular Session, 1985, as that territory

may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (Acts 69th Leg., R.S., Ch. 184, Sec. 4; New.)

[Sections 8167.005-8167.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8167.051.COMPOSITION OF BOARD. The district is

governed by a board of five elected directors. (Acts 69th Leg.,

R.S., Ch. 184, Secs. 8(a), (b) (part).)

[Sections 8167.052-8167.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8167.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district created

under Section 59, Article XVI, Texas Constitution, including

Chapters 49 and 54, Water Code. (Acts 69th Leg., R.S., Ch. 184,

Sec. 6(a) (part).)

Sec.8167.102.WATER CONSERVATION PROGRAM. (a) In this

section, "program of water conservation" means the practices,

techniques, and technologies that will reduce water consumption,

reduce water loss or waste, improve efficiency in water use, or

increase water recycling and reuse so that a water supply is

available for future or alternative uses.

(b) The district shall adopt and implement a program of

water conservation consistent with rules and criteria adopted and

enforceable by the Texas Commission on Environmental Quality for

similarly situated districts in the region. (Acts 69th Leg., R.S.,

Ch. 184, Sec. 7.)

CHAPTER 8168. CINCO MUNICIPAL UTILITY DISTRICT NO. 2

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8168.001. DEFINITION

Sec. 8168.002. NATURE OF DISTRICT

Sec. 8168.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8168.004. DISTRICT TERRITORY

[Sections 8168.005-8168.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8168.051. COMPOSITION OF BOARD

[Sections 8168.052-8168.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8168.101. MUNICIPAL UTILITY DISTRICT POWERS

Sec. 8168.102. WATER CONSERVATION PROGRAM

CHAPTER 8168. CINCO MUNICIPAL UTILITY DISTRICT NO. 2

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8168.001.DEFINITION. In this chapter, "district"

means Cinco Municipal Utility District No. 2. (Acts 69th Leg.,

R.S., Ch. 185, Secs. 1(a) (part), 2.)

Sec.8168.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Fort Bend and Harris

Counties created under Section 59, Article XVI, Texas Constitution.

(Acts 69th Leg., R.S., Ch. 185, Sec. 1(a) (part).)

Sec.8168.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution. (Acts

69th Leg., R.S., Ch. 185, Secs. 1(b), 5.)

Sec.8168.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 3, Chapter 185, Acts

of the 69th Legislature, Regular Session, 1985, as that territory

may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (Acts 69th Leg., R.S., Ch. 185, Sec. 4; New.)

[Sections 8168.005-8168.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8168.051.COMPOSITION OF BOARD. The district is

governed by a board of five elected directors. (Acts 69th Leg.,

R.S., Ch. 185, Secs. 8(a), (b) (part).)

[Sections 8168.052-8168.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8168.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district created

under Section 59, Article XVI, Texas Constitution, including

Chapters 49 and 54, Water Code. (Acts 69th Leg., R.S., Ch. 185,

Sec. 6(a) (part).)

Sec.8168.102.WATER CONSERVATION PROGRAM. (a) In this

section, "program of water conservation" means the practices,

techniques, and technologies that will reduce water consumption,

reduce water loss or waste, improve efficiency in water use, or

increase water recycling and reuse so that a water supply is

available for future or alternative uses.

(b) The district shall adopt and implement a program of

water conservation consistent with rules and criteria adopted and

enforceable by the Texas Commission on Environmental Quality for

similarly situated districts in the region. (Acts 69th Leg., R.S.,

Ch. 185, Sec. 7.)

CHAPTER 8169. CINCO MUNICIPAL UTILITY DISTRICT NO. 3

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8169.001. DEFINITION

Sec. 8169.002. NATURE OF DISTRICT

Sec. 8169.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8169.004. DISTRICT TERRITORY

[Sections 8169.005-8169.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8169.051. COMPOSITION OF BOARD

[Sections 8169.052-8169.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8169.101. MUNICIPAL UTILITY DISTRICT POWERS

Sec. 8169.102. WATER CONSERVATION PROGRAM

CHAPTER 8169. CINCO MUNICIPAL UTILITY DISTRICT NO. 3

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8169.001.DEFINITION. In this chapter, "district"

means Cinco Municipal Utility District No. 3. (Acts 69th Leg.,

R.S., Ch. 186, Secs. 1(a) (part), 2.)

Sec.8169.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Fort Bend and Harris

Counties created under Section 59, Article XVI, Texas Constitution.

(Acts 69th Leg., R.S., Ch. 186, Sec. 1(a) (part).)

Sec.8169.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution. (Acts

69th Leg., R.S., Ch. 186, Secs. 1(b), 5.)

Sec.8169.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 3, Chapter 186, Acts

of the 69th Legislature, Regular Session, 1985, as that territory

may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (Acts 69th Leg., R.S., Ch. 186, Sec. 4; New.)

[Sections 8169.005-8169.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8169.051.COMPOSITION OF BOARD. The district is

governed by a board of five elected directors. (Acts 69th Leg.,

R.S., Ch. 186, Secs. 8(a), (b) (part).)

[Sections 8169.052-8169.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8169.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district created

under Section 59, Article XVI, Texas Constitution, including

Chapters 49 and 54, Water Code. (Acts 69th Leg., R.S., Ch. 186,

Sec. 6(a) (part).)

Sec.8169.102.WATER CONSERVATION PROGRAM. (a) In this

section, "program of water conservation" means the practices,

techniques, and technologies that will reduce water consumption,

reduce water loss or waste, improve efficiency in water use, or

increase water recycling and reuse so that a water supply is

available for future or alternative uses.

(b) The district shall adopt and implement a program of

water conservation consistent with rules and criteria adopted and

enforceable by the Texas Commission on Environmental Quality for

similarly situated districts in the region. (Acts 69th Leg., R.S.,

Ch. 186, Sec. 7.)

CHAPTER 8170. CINCO MUNICIPAL UTILITY DISTRICT NO. 5

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8170.001. DEFINITION

Sec. 8170.002. NATURE OF DISTRICT

Sec. 8170.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8170.004. DISTRICT TERRITORY

[Sections 8170.005-8170.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8170.051. COMPOSITION OF BOARD

[Sections 8170.052-8170.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8170.101. MUNICIPAL UTILITY DISTRICT POWERS

Sec. 8170.102. WATER CONSERVATION PROGRAM

CHAPTER 8170. CINCO MUNICIPAL UTILITY DISTRICT NO. 5

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8170.001.DEFINITION. In this chapter, "district"

means Cinco Municipal Utility District No. 5. (Acts 69th Leg.,

R.S., Ch. 188, Secs. 1(a) (part), 2.)

Sec.8170.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Fort Bend and Harris

Counties created under Section 59, Article XVI, Texas Constitution.

(Acts 69th Leg., R.S., Ch. 188, Sec. 1(a) (part).)

Sec.8170.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution. (Acts

69th Leg., R.S., Ch. 188, Secs. 1(b), 5.)

Sec.8170.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 3, Chapter 188, Acts

of the 69th Legislature, Regular Session, 1985, as that territory

may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (Acts 69th Leg., R.S., Ch. 188, Sec. 4; New.)

[Sections 8170.005-8170.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8170.051.COMPOSITION OF BOARD. The district is

governed by a board of five elected directors. (Acts 69th Leg.,

R.S., Ch. 188, Secs. 8(a), (b) (part).)

[Sections 8170.052-8170.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8170.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district created

under Section 59, Article XVI, Texas Constitution, including

Chapters 49 and 54, Water Code. (Acts 69th Leg., R.S., Ch. 188,

Sec. 6(a) (part).)

Sec.8170.102.WATER CONSERVATION PROGRAM. (a) In this

section, "program of water conservation" means the practices,

techniques, and technologies that will reduce water consumption,

reduce water loss or waste, improve efficiency in water use, or

increase water recycling and reuse so that a water supply is

available for future or alternative uses.

(b) The district shall adopt and implement a program of

water conservation consistent with rules and criteria adopted and

enforceable by the Texas Commission on Environmental Quality for

similarly situated districts in the region. (Acts 69th Leg., R.S.,

Ch. 188, Sec. 7.)

CHAPTER 8171. CINCO MUNICIPAL UTILITY DISTRICT NO. 6

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8171.001. DEFINITION

Sec. 8171.002. NATURE OF DISTRICT

Sec. 8171.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8171.004. DISTRICT TERRITORY

[Sections 8171.005-8171.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8171.051. COMPOSITION OF BOARD

[Sections 8171.052-8171.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8171.101. MUNICIPAL UTILITY DISTRICT POWERS

Sec. 8171.102. WATER CONSERVATION PROGRAM

CHAPTER 8171. CINCO MUNICIPAL UTILITY DISTRICT NO. 6

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8171.001.DEFINITION. In this chapter, "district"

means Cinco Municipal Utility District No. 6. (Acts 69th Leg.,

R.S., Ch. 189, Secs. 1(a) (part), 2.)

Sec.8171.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Fort Bend County created

under Section 59, Article XVI, Texas Constitution. (Acts 69th

Leg., R.S., Ch. 189, Sec. 1(a) (part).)

Sec.8171.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution. (Acts

69th Leg., R.S., Ch. 189, Secs. 1(b), 5.)

Sec.8171.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 3, Chapter 189, Acts

of the 69th Legislature, Regular Session, 1985, as that territory

may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (Acts 69th Leg., R.S., Ch. 189, Sec. 4; New.)

[Sections 8171.005-8171.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8171.051.COMPOSITION OF BOARD. The district is

governed by a board of five elected directors. (Acts 69th Leg.,

R.S., Ch. 189, Secs. 8(a), (b) (part).)

[Sections 8171.052-8171.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8171.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district created

under Section 59, Article XVI, Texas Constitution, including

Chapters 49 and 54, Water Code. (Acts 69th Leg., R.S., Ch. 189,

Sec. 6(a) (part).)

Sec.8171.102.WATER CONSERVATION PROGRAM. (a) In this

section, "program of water conservation" means the practices,

techniques, and technologies that will reduce water consumption,

reduce water loss or waste, improve efficiency in water use, or

increase water recycling and reuse so that a water supply is

available for future or alternative uses.

(b) The district shall adopt and implement a program of

water conservation consistent with rules and criteria adopted and

enforceable by the Texas Commission on Environmental Quality for

similarly situated districts in the region. (Acts 69th Leg., R.S.,

Ch. 189, Sec. 7.)

CHAPTER 8172. CINCO MUNICIPAL UTILITY DISTRICT NO. 7

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8172.001. DEFINITION

Sec. 8172.002. NATURE OF DISTRICT

Sec. 8172.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8172.004. DISTRICT TERRITORY

[Sections 8172.005-8172.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8172.051. COMPOSITION OF BOARD

[Sections 8172.052-8172.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8172.101. MUNICIPAL UTILITY DISTRICT POWERS

Sec. 8172.102. WATER CONSERVATION PROGRAM

CHAPTER 8172. CINCO MUNICIPAL UTILITY DISTRICT NO. 7

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8172.001.DEFINITION. In this chapter, "district"

means Cinco Municipal Utility District No. 7. (Acts 69th Leg.,

R.S., Ch. 190, Secs. 1(a) (part), 2.)

Sec.8172.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Fort Bend County created

under Section 59, Article XVI, Texas Constitution. (Acts 69th

Leg., R.S., Ch. 190, Sec. 1(a) (part).)

Sec.8172.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution. (Acts

69th Leg., R.S., Ch. 190, Secs. 1(b), 5.)

Sec.8172.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 3, Chapter 190, Acts

of the 69th Legislature, Regular Session, 1985, as that territory

may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (Acts 69th Leg., R.S., Ch. 190, Sec. 4; New.)

[Sections 8172.005-8172.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8172.051.COMPOSITION OF BOARD. The district is

governed by a board of five elected directors. (Acts 69th Leg.,

R.S., Ch. 190, Secs. 8(a), (b) (part).)

[Sections 8172.052-8172.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8172.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district created

under Section 59, Article XVI, Texas Constitution, including

Chapters 49 and 54, Water Code. (Acts 69th Leg., R.S., Ch. 190,

Sec. 6(a) (part).)

Sec.8172.102.WATER CONSERVATION PROGRAM. (a) In this

section, "program of water conservation" means the practices,

techniques, and technologies that will reduce water consumption,

reduce water loss or waste, improve efficiency in water use, or

increase water recycling and reuse so that a water supply is

available for future or alternative uses.

(b) The district shall adopt and implement a program of

water conservation consistent with rules and criteria adopted and

enforceable by the Texas Commission on Environmental Quality for

similarly situated districts in the region. (Acts 69th Leg., R.S.,

Ch. 190, Sec. 7.)

CHAPTER 8173. CINCO MUNICIPAL UTILITY DISTRICT NO. 8

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8173.001. DEFINITION

Sec. 8173.002. NATURE OF DISTRICT

Sec. 8173.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8173.004. DISTRICT TERRITORY

[Sections 8173.005-8173.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8173.051. COMPOSITION OF BOARD

[Sections 8173.052-8173.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8173.101. MUNICIPAL UTILITY DISTRICT POWERS

Sec. 8173.102. WATER CONSERVATION PROGRAM

CHAPTER 8173. CINCO MUNICIPAL UTILITY DISTRICT NO. 8

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8173.001.DEFINITION. In this chapter, "district"

means Cinco Municipal Utility District No. 8. (Acts 69th Leg.,

R.S., Ch. 191, Secs. 1(a) (part), 2.)

Sec.8173.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Fort Bend County created

under Section 59, Article XVI, Texas Constitution. (Acts 69th

Leg., R.S., Ch. 191, Sec. 1(a) (part).)

Sec.8173.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution. (Acts

69th Leg., R.S., Ch. 191, Secs. 1(b), 5.)

Sec.8173.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 3, Chapter 191, Acts

of the 69th Legislature, Regular Session, 1985, as that territory

may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (Acts 69th Leg., R.S., Ch. 191, Sec. 4; New.)

[Sections 8173.005-8173.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8173.051.COMPOSITION OF BOARD. The district is

governed by a board of five elected directors. (Acts 69th Leg.,

R.S., Ch. 191, Secs. 8(a), (b) (part).)

[Sections 8173.052-8173.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8173.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district created

under Section 59, Article XVI, Texas Constitution, including

Chapters 49 and 54, Water Code. (Acts 69th Leg., R.S., Ch. 191,

Sec. 6(a) (part).)

Sec.8173.102.WATER CONSERVATION PROGRAM. (a) In this

section, "program of water conservation" means the practices,

techniques, and technologies that will reduce water consumption,

reduce water loss or waste, improve efficiency in water use, or

increase water recycling and reuse so that a water supply is

available for future or alternative uses.

(b) The district shall adopt and implement a program of

water conservation consistent with rules and criteria adopted and

enforceable by the Texas Commission on Environmental Quality for

similarly situated districts in the region. (Acts 69th Leg., R.S.,

Ch. 191, Sec. 7.)

CHAPTER 8174. CINCO MUNICIPAL UTILITY DISTRICT NO. 9

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8174.001. DEFINITION

Sec. 8174.002. NATURE OF DISTRICT

Sec. 8174.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8174.004. DISTRICT TERRITORY

[Sections 8174.005-8174.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8174.051. COMPOSITION OF BOARD

[Sections 8174.052-8174.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8174.101. MUNICIPAL UTILITY DISTRICT POWERS

Sec. 8174.102. WATER CONSERVATION PROGRAM

CHAPTER 8174. CINCO MUNICIPAL UTILITY DISTRICT NO. 9

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8174.001.DEFINITION. In this chapter, "district"

means Cinco Municipal Utility District No. 9. (Acts 69th Leg.,

R.S., Ch. 192, Secs. 1(a) (part), 2.)

Sec.8174.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Fort Bend and Harris

Counties created under Section 59, Article XVI, Texas Constitution.

(Acts 69th Leg., R.S., Ch. 192, Sec. 1(a) (part).)

Sec.8174.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution. (Acts

69th Leg., R.S., Ch. 192, Secs. 1(b), 5.)

Sec.8174.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 3, Chapter 192, Acts

of the 69th Legislature, Regular Session, 1985, as that territory

may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (Acts 69th Leg., R.S., Ch. 192, Sec. 4; New.)

[Sections 8174.005-8174.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8174.051.COMPOSITION OF BOARD. The district is

governed by a board of five elected directors. (Acts 69th Leg.,

R.S., Ch. 192, Secs. 8(a), (b) (part).)

[Sections 8174.052-8174.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8174.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district created

under Section 59, Article XVI, Texas Constitution, including

Chapters 49 and 54, Water Code. (Acts 69th Leg., R.S., Ch. 192,

Sec. 6(a) (part).)

Sec.8174.102.WATER CONSERVATION PROGRAM. (a) In this

section, "program of water conservation" means the practices,

techniques, and technologies that will reduce water consumption,

reduce water loss or waste, improve efficiency in water use, or

increase water recycling and reuse so that a water supply is

available for future or alternative uses.

(b) The district shall adopt and implement a program of

water conservation consistent with rules and criteria adopted and

enforceable by the Texas Commission on Environmental Quality for

similarly situated districts in the region. (Acts 69th Leg., R.S.,

Ch. 192, Sec. 7.)

CHAPTER 8177. FLYING "L" PUBLIC UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8177.001. DEFINITION

Sec. 8177.002. NATURE OF DISTRICT

Sec. 8177.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8177.004. DISTRICT TERRITORY

[Sections 8177.005-8177.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8177.051. COMPOSITION OF BOARD

[Sections 8177.052-8177.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8177.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8177. FLYING "L" PUBLIC UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8177.001.DEFINITION. In this chapter, "district"

means the Flying "L" Public Utility District. (V.A.C.S. Art.

8280-508, Sec. 1 (part).)

Sec.8177.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Bandera County, created

under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.

8280-508, Sec. 1 (part).)

Sec.8177.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution.

(V.A.C.S. Art. 8280-508, Secs. 1 (part), 3.)

Sec.8177.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 4, Chapter 505, Acts

of the 62nd Legislature, Regular Session, 1971 (Article 8280-508,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (V.A.C.S. Art. 8280-508, Sec. 2; New.)

[Sections 8177.005-8177.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8177.051.COMPOSITION OF BOARD. The board of

directors is composed of five elected directors. (V.A.C.S. Art.

8280-508, Sec. 6 (part).)

[Sections 8177.052-8177.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8177.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district,

including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-508,

Sec. 5 (part).)

CHAPTER 8178. CY-CHAMP PUBLIC UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8178.001. DEFINITIONS

Sec. 8178.002. NATURE OF DISTRICT

Sec. 8178.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8178.004. DISTRICT TERRITORY

[Sections 8178.005-8178.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8178.051. COMPOSITION OF BOARD

[Sections 8178.052-8178.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8178.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8178. CY-CHAMP PUBLIC UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8178.001.DEFINITIONS. In this chapter, "district"

means the Cy-Champ Public Utility District. (V.A.C.S. Art.

8280-573, Sec. 1 (part).)

Sec.8178.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Harris County created

under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.

8280-573, Sec. 1 (part).)

Sec.8178.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution.

(V.A.C.S. Art. 8280-573, Secs. 1 (part), 3.)

Sec.8178.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 4, Chapter 686, Acts

of the 62nd Legislature, Regular Session, 1971 (Article 8280-573,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (V.A.C.S. Art. 8280-573, Sec. 2; New.)

[Sections 8178.005-8178.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8178.051.COMPOSITION OF BOARD. The board of

directors is composed of five elected directors. (V.A.C.S. Art.

8280-573, Sec. 6 (part).)

[Sections 8178.052-8178.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8178.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district,

including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-573,

Sec. 5 (part); New.)

CHAPTER 8179. CYPRESS CREEK UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8179.001. DEFINITIONS

Sec. 8179.002. NATURE OF DISTRICT

Sec. 8179.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8179.004. DISTRICT TERRITORY

[Sections 8179.005-8179.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 8179.051. COMPOSITION OF BOARD

Sec. 8179.052. DIRECTOR'S BOND

Sec. 8179.053. BOARD VACANCY

Sec. 8179.054. DISTRICT OFFICE

Sec. 8179.055. ABSENCE OF PRESIDENT FROM BOARD MEETING

[Sections 8179.056-8179.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8179.101. GENERAL POWERS AND DUTIES

Sec. 8179.102. ADDITIONAL POWERS AND DUTIES

Sec. 8179.103. EMINENT DOMAIN

Sec. 8179.104. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 8179.105. CONTRACT FOR PURCHASE OF WATER, SEWER,

OR DRAINAGE SERVICES; ELECTION NOT

REQUIRED

Sec. 8179.106. NOTICE OF ELECTION

Sec. 8179.107. DISTRICT RULES

[Sections 8179.108-8179.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8179.151. TAX METHOD

Sec. 8179.152. DISTRICT ACCOUNTS

Sec. 8179.153. COPY OF AUDIT REPORT

Sec. 8179.154. PAYMENT OF TAX OR ASSESSMENT NOT

REQUIRED

Sec. 8179.155. DIRECTOR AS SHAREHOLDER IN DEPOSITORY

[Sections 8179.156-8179.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 8179.201. USE OF BOND PROCEEDS DURING

CONSTRUCTION

CHAPTER 8179. CYPRESS CREEK UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8179.001.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 Cypress Creek Utility

District. (V.A.C.S. Art. 8280-403, Sec. 1 (part); New.)

Sec.8179.002.NATURE OF DISTRICT. The district is a

municipal utility district and a conservation and reclamation

district in Harris County, created under Section 59, Article XVI,

Texas Constitution. (V.A.C.S. Art. 8280-403, Sec. 1 (part); New.)

Sec.8179.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution.

(d) 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. The district in

carrying out the purposes of this chapter will be performing an

essential public function under the Texas Constitution. (V.A.C.S.

Art. 8280-403, Secs. 1 (part), 4, 24 (part).)

Sec.8179.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 2, Chapter 146, Acts

of the 61st Legislature, Regular Session, 1969 (Article 8280-403,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code;

(3) former Section 9, Chapter 146, Acts of the 61st

Legislature, Regular Session, 1969 (Article 8280-403, Vernon's

Texas Civil Statutes); or

(4) other law.

(b) The boundaries and field notes of the district form a

closure. If a mistake is made in the field notes or in copying the

field notes in the legislative process, the mistake does not

affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or the

board. (V.A.C.S. Art. 8280-403, Sec. 3; New.)

[Sections 8179.005-8179.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec.8179.051.COMPOSITION OF BOARD. The board consists of

five directors. (V.A.C.S. Art. 8280-403, Sec. 10 (part).)

Sec.8179.052.DIRECTOR'S BOND. (a) Each director shall

execute a bond in the amount of $5,000 for the faithful performance

of the director's duties.

(b) The bond must be:

(1) approved by the county judge and the board;

(2) filed in the office of the county clerk of the

county or counties in which the district is located; and

(3) recorded in a record book kept for that purpose in

the district office. (V.A.C.S. Art. 8280-403, Sec. 10 (part).)

Sec.8179.053.BOARD VACANCY. (a) Except as provided by

Subsection (b), a vacancy in the office of director shall be filled

in the manner provided by Section 49.105, Water Code.

(b) The county judge of the county in which the district is

located shall appoint directors to fill all vacancies on the board

whenever the number of qualified directors is fewer than three.

(V.A.C.S. Art. 8280-403, Sec. 10 (part).)

Sec.8179.054.DISTRICT OFFICE. (a) Except as provided by

this section, the board shall designate, establish, and maintain a

district office as provided by Section 49.062, Water Code.

(b) The board may establish a second district office outside

the district. If the board establishes a second district office,

the board shall give notice of the location of that office by:

(1) filing a copy of the board resolution that

establishes the location of the office:

(A) with the Texas Commission on Environmental

Quality; and

(B) in the municipal utility district records of

each county in which the district is located; and

(2) publishing notice of the location of the office in

a newspaper of general circulation in each county in which the

district is located.

or dwelling is a public place for matters relating to district

business.

(d) The board shall provide notice of any change in the

location of the district office outside the district in the manner

required by Subsection (b). (V.A.C.S. Art. 8280-403, Sec. 15.)

Sec.8179.055.ABSENCE OF PRESIDENT FROM BOARD MEETING. If

the board president is absent from a board meeting:

(1) the board vice president may:

(A) sign an order adopted at the meeting; or

(B) implement any other action taken at the

meeting; or

(2) the board may authorize the president to sign the

order or implement the action. (V.A.C.S. Art. 8280-403, Sec. 10

(part).)

[Sections 8179.056-8179.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8179.101.GENERAL POWERS AND DUTIES. The district has

all of the rights, powers, privileges, authority, and functions

conferred by the general laws of this state relating to municipal

utility districts created under Section 59, Article XVI, Texas

Constitution, including those conferred by Chapters 49 and 54,

Water Code. (V.A.C.S. Art. 8280-403, Sec. 5 (part).)

Sec.8179.102.ADDITIONAL POWERS AND DUTIES. (a) The

district may:

(1) make, purchase, construct, lease, or otherwise

acquire property, works, facilities, existing improvements, or

improvements to be made, constructed, or acquired that are:

(A) inside or outside the district's boundaries;

and

(B) necessary to carry out the powers granted by

this chapter or general law; or

(2) enter into a contract with a person on terms the

board considers desirable, fair, and advantageous for:

(A) the purchase or sale of water;

(B) the transportation, treatment, and disposal

of the domestic, industrial, or communal wastes of the district or

others;

land and property in the district through the purchase,

construction, or installation of facilities, works, or

improvements that the district is otherwise authorized to do or

perform so that, to the greatest extent reasonably possible,

considering sound engineering and economic practices, all of the

land and property may ultimately receive the services of the

facilities, works, or improvements; and

(D) the performance of any of the powers granted

by this chapter or general law.

(b) A contract under Subsection (a)(2) may not have a

duration of more than 40 years. (V.A.C.S. Art. 8280-403, Sec. 5

(part).)

Sec.8179.103.EMINENT DOMAIN. The district may exercise

the power of eminent domain only:

(1) in a county in which the district is located; and

(2) when necessary to carry out the purposes for which

the district was created. (V.A.C.S. Art. 8280-403, Sec. 13

(part).)

Sec.8179.104.COST OF RELOCATING OR ALTERING PROPERTY.

(a) In this section, "sole expense" means the actual cost of

relocating, raising, lowering, rerouting, or changing the grade of

or altering the construction of a facility described by Subsection

(b) in providing comparable replacement without enhancement of the

facility, after deducting from that cost the net salvage value of

the old facility.

(b) If the district's exercise of the power of eminent

domain, the power of relocation, or any other power conferred by

this chapter makes necessary the relocation, raising, rerouting,

changing the grade, or alteration of the construction of a highway,

a railroad, an electric transmission line, a telegraph or telephone

property or facility, or a pipeline, the necessary action shall be

accomplished at the sole expense of the district. (V.A.C.S. Art.

8280-403, Sec. 13 (part).)

Sec. 8179.105. CONTRACT FOR PURCHASE OF WATER, SEWER, OR

DRAINAGE SERVICES; ELECTION NOT REQUIRED. (a) The district may

enter into a contract with a political subdivision for water,

sewer, or drainage services or any combination of those services

without the necessity of an election by any contracting party.

(b) The district may pay for an obligation incurred by such

a contract by issuing bonds that, if otherwise necessary, have been

approved by the voters in the manner provided by this chapter.

the following parties that enters into such a contract with the

district:

(1) the United States;

(2) an agency or instrumentality of the United States;

(3) this state; or

(4) an agency or instrumentality of this state.

(V.A.C.S. Art. 8280-403, Sec. 5 (part).)

Sec.8179.106.NOTICE OF ELECTION. The board president or

secretary may give notice of an election. (V.A.C.S. Art. 8280-403,

Sec. 19.)

Sec.8179.107.DISTRICT RULES. The district shall adopt

and enforce reasonable and effective rules to secure and maintain

safe, sanitary, and adequate plumbing installations, connections,

and appurtenances as subsidiary parts of the district's sewerage

system to preserve the quality of water within or controlled by the

district. (V.A.C.S. Art. 8280-403, Sec. 16.)

[Sections 8179.108-8179.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.8179.151.TAX METHOD. (a) The district shall use the

ad valorem plan of taxation.

(b) The board is not required to hold a hearing on the

adoption of a plan of taxation. (V.A.C.S. Art. 8280-403, Sec. 8.)

Sec.8179.152.DISTRICT ACCOUNTS. The district shall keep

a complete system of the district's accounts. (V.A.C.S. Art.

8280-403, Sec. 14 (part).)

Sec.8179.153.COPY OF AUDIT REPORT. A copy of the audit

report prepared under Subchapter G, Chapter 49, Water Code, shall

be delivered:

(1) to each director; and

(2) on request to a holder of at least 25 percent of

the outstanding bonds of the district. (V.A.C.S. Art. 8280-403,

Sec. 14 (part).)

Sec.8179.154.PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED.

The district is not required to pay a tax or assessment on:

(1) district property; or

(2) a purchase made by the district. (V.A.C.S. Art.

8280-403, Sec. 24 (part).)

Sec.8179.155.DIRECTOR AS SHAREHOLDER IN DEPOSITORY. A

director may be a shareholder in a depository of district funds.

(V.A.C.S. Art. 8280-403, Sec. 14 (part).)

[Sections 8179.156-8179.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec.8179.201.USE OF BOND PROCEEDS DURING CONSTRUCTION.

(a) The district may appropriate or set aside out of the proceeds

from the sale of any bonds issued under this chapter an amount for

the payment of interest, administrative, and operating expenses

expected to accrue during a period of construction, as may be

provided in the bond orders or resolutions.

(b) For purposes of this section, the period of construction

may not exceed three years. (V.A.C.S. Art. 8280-403, Sec. 12

(part).)

CHAPTER 8180. CYPRESS FOREST PUBLIC UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8180.001. DEFINITION

Sec. 8180.002. NATURE OF DISTRICT

Sec. 8180.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8180.004. DISTRICT TERRITORY

[Sections 8180.005-8180.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8180.051. COMPOSITION OF BOARD

[Sections 8180.052-8180.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8180.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8180. CYPRESS FOREST PUBLIC UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8180.001.DEFINITION. In this chapter, "district"

means Cypress Forest Public Utility District. (V.A.C.S. Art.

8280-479, Sec. 1 (part).)

Sec.8180.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Harris County created

under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.

8280-479, Sec. 1 (part).)

Sec.8180.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution.

(V.A.C.S. Art. 8280-479, Secs. 1 (part), 3.)

Sec.8180.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 4, Chapter 195, Acts

of the 62nd Legislature, Regular Session, 1971 (Article 8280-479,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (V.A.C.S. Art. 8280-479, Sec. 2; New.)

[Sections 8180.005-8180.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8180.051.COMPOSITION OF BOARD. The board of

directors is composed of five elected directors. (V.A.C.S. Art.

8280-479, Sec. 6 (part).)

[Sections 8180.052-8180.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8180.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district,

including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-479,

Sec. 5 (part); New.)

CHAPTER 8181. CYPRESS-KLEIN UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8181.001. DEFINITION

Sec. 8181.002. NATURE OF DISTRICT

Sec. 8181.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8181.004. DISTRICT TERRITORY

[Sections 8181.005-8181.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8181.051. COMPOSITION OF BOARD

[Sections 8181.052-8181.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8181.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8181. CYPRESS-KLEIN UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8181.001.DEFINITION. In this chapter, "district"

means the Cypress-Klein Utility District. (V.A.C.S. Art. 8280-542,

Sec. 1 (part).)

Sec.8181.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Harris County created

under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.

8280-542, Sec. 1 (part).)

Sec.8181.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution.

(V.A.C.S. Art. 8280-542, Secs. 1 (part), 3.)

Sec.8181.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 4, Chapter 654, Acts

of the 62nd Legislature, Regular Session, 1971 (Article 8280-542,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (V.A.C.S. Art. 8280-542, Sec. 2; New.)

[Sections 8181.005-8181.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8181.051.COMPOSITION OF BOARD. The board of

directors is composed of five elected directors. (V.A.C.S. Art.

8280-542, Sec. 6 (part).)

[Sections 8181.052-8181.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8181.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district,

including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-542,

Sec. 5 (part); New.)

CHAPTER 8182. CYPRESSWOOD UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8182.001. DEFINITION

Sec. 8182.002. NATURE OF DISTRICT

Sec. 8182.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8182.004. DISTRICT TERRITORY

[Sections 8182.005-8182.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8182.051. COMPOSITION OF BOARD

[Sections 8182.052-8182.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8182.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8182. CYPRESSWOOD UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8182.001.DEFINITION. In this chapter, "district"

means the Cypresswood Utility District. (V.A.C.S. Art. 8280-515,

Sec. 1 (part).)

Sec.8182.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Harris County created

under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.

8280-515, Sec. 1 (part).)

Sec.8182.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution.

(V.A.C.S. Art. 8280-515, Secs. 1 (part), 3.)

Sec.8182.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 4, Chapter 576, Acts

of the 62nd Legislature, Regular Session, 1971 (Article 8280-515,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (V.A.C.S. Art. 8280-515, Sec. 2; New.)

[Sections 8182.005-8182.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8182.051.COMPOSITION OF BOARD. The board of

directors is composed of five elected directors. (V.A.C.S. Art.

8280-515, Sec. 6 (part).)

[Sections 8182.052-8182.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8182.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district,

including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-515,

Sec. 5 (part); New.)

CHAPTER 8183. DELTA COUNTY MUNICIPAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8183.001. DEFINITIONS

Sec. 8183.002. NATURE OF DISTRICT

Sec. 8183.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

[Sections 8183.004-8183.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS

TO DISTRICT TERRITORY

Sec. 8183.051. DISTRICT TERRITORY

Sec. 8183.052. ANNEXATION OF TERRITORY

Sec. 8183.053. RESTRICTION ON ANNEXATION OF RAILROAD

RIGHT-OF-WAY

[Sections 8183.054-8183.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec. 8183.101. QUALIFICATIONS FOR OFFICE

Sec. 8183.102. APPOINTMENT OF SECRETARY AND TREASURER

Sec. 8183.103. VOTE BY BOARD PRESIDENT

Sec. 8183.104. DIRECTOR'S AND TREASURER'S BOND

Sec. 8183.105. COMPENSATION

[Sections 8183.106-8183.150 reserved for expansion]

SUBCHAPTER D. GENERAL POWERS AND DUTIES

Sec. 8183.151. CONTRACTS TO SUPPLY WATER OR SEWAGE

SERVICES

Sec. 8183.152. ACQUISITION OF LAND AND OTHER PROPERTY

Sec. 8183.153. CONSTRUCTION CONTRACTS

Sec. 8183.154. SURPLUS PROPERTY

Sec. 8183.155. EMINENT DOMAIN

Sec. 8183.156. COST OF RELOCATING PROPERTY

[Sections 8183.157-8183.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 8183.201. DEPOSITORY

Sec. 8183.202. TAX ASSESSOR AND COLLECTOR

Sec. 8183.203. PROJECTS EXEMPT FROM ASSESSMENT OR

TAXATION

[Sections 8183.204-8183.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec. 8183.251. AUTHORITY TO ISSUE BONDS

Sec. 8183.252. FORM OF BONDS

Sec. 8183.253. MATURITY

Sec. 8183.254. ELECTION FOR BONDS PAYABLE FROM AD

VALOREM TAX

Sec. 8183.255. BONDS PAYABLE FROM REVENUE

Sec. 8183.256. BONDS PAYABLE FROM AD VALOREM TAXES

Sec. 8183.257. TAX AND RATE REQUIREMENTS

Sec. 8183.258. ADDITIONAL SECURITY

Sec. 8183.259. TRUST INDENTURE

Sec. 8183.260. USE OF BOND PROCEEDS

Sec. 8183.261. APPOINTMENT OF RECEIVER

Sec. 8183.262. REFUNDING BONDS

Sec. 8183.263. LIMITATION ON RIGHTS OF HOLDERS

Sec. 8183.264. BONDS EXEMPT FROM TAXATION

Sec. 8183.265. DETACHMENT OF TERRITORY AFTER ISSUANCE

OF BONDS

CHAPTER 8183. DELTA COUNTY MUNICIPAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8183.001.DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the

district.

(2) "Commissioners court" means the Commissioners

Court of Delta County.

(3) "Director" means a member of the board.

(4) "District" means the Delta County Municipal

Utility District. (V.A.C.S. Art. 8280-589, Sec. 1 (part); New.)

Sec.8183.002.NATURE OF DISTRICT. The district is a

municipal utility district and a conservation and reclamation

district created under Section 59, Article XVI, Texas Constitution.

(V.A.C.S. Art. 8280-589, Sec. 1 (part); New.)

Sec.8183.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

All territory in the district will benefit from the works and

improvements of the district.

(b) The accomplishment of the purposes stated in this

chapter is for the benefit of the people of this state for the

improvement of their property and industries. In carrying out the

purposes of this chapter, the district will be performing an

essential public function under the constitution. (V.A.C.S. Art.

8280-589, Secs. 2 (part), 17 (part).)

[Sections 8183.004-8183.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS

TO DISTRICT TERRITORY

Sec.8183.051.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Delta County unless

the district territory has been modified under this subchapter or

other law. (V.A.C.S. Art. 8280-589, Sec. 2 (part); New.)

Sec.8183.052.ANNEXATION OF TERRITORY. (a) The board may

annex territory if a petition requesting annexation is signed by a

majority of the registered voters of the territory who own taxable

property in the territory and is filed with the board. The petition

must describe the territory to be annexed by metes and bounds, or

otherwise, except that if the territory is the same as that

contained in the boundaries of a municipality, the petition is

sufficient if it states that the territory to be annexed is the

territory contained in the municipal boundaries.

(b) If the board determines that the petition complies with

Subsection (a), the board shall:

(1) adopt a resolution stating the conditions, if any,

under which the territory may be annexed to the district; and

(2) set a time and place to hold a hearing on the

question of whether the territory to be annexed will benefit from

the improvements, works, or facilities owned or operated or

contemplated to be owned or operated by the district.

of the adoption of the resolution stating the time and place of the

hearing and addressed to the citizens and owners of property in the

territory to be annexed shall be published one time in a newspaper

designated by the board that is of general circulation in the

territory to be annexed. The notice must describe the territory in

the same manner in which Subsection (a) requires the petition to

describe the territory.

(d) Any interested person may appear at the hearing and

offer evidence for or against the annexation.

(e) The hearing may proceed in the order and under the rules

prescribed by the board and may be recessed from time to time.

(f) If, at the conclusion of the hearing, the board finds

that the land in the territory will benefit from the present or

contemplated improvements, works, or facilities of the district,

the board may adopt a resolution annexing the territory to the

district. (V.A.C.S. Art. 8280-589, Secs. 5(a), (b) (part), (c),

(d).)

Sec. 8183.053. RESTRICTION ON ANNEXATION OF RAILROAD

RIGHT-OF-WAY. (a) A railroad right-of-way may not be annexed to

the district unless the right-of-way is contained in the limits of a

municipality annexed at the same time or previously annexed to the

district.

(b) A railroad right-of-way that is not in the limits of a

municipality will not benefit from improvements, works, and

facilities the district is authorized to construct. (V.A.C.S. Art.

8280-589, Sec. 5(b) (part).)

[Sections 8183.054-8183.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec.8183.101.QUALIFICATIONS FOR OFFICE. (a) A person may

not be appointed a director unless the person resides in Delta

County or in a county all or a portion of which is contained in the

district.

(b) A person may not be appointed a director unless the

person resides in and owns taxable property in the district.

(V.A.C.S. Art. 8280-589, Secs. 3(c) (part), 4 (part).)

Sec.8183.102.APPOINTMENT OF SECRETARY AND TREASURER. The

board shall appoint a secretary and a treasurer, who are not

required to be directors. The board may combine the offices of

secretary and treasurer. (V.A.C.S. Art. 8280-589, Sec. 4 (part).)

Sec.8183.103.VOTE BY BOARD PRESIDENT. The president has

the same right to vote as any other director. The vice president

may not exercise the president's right to vote. (V.A.C.S. Art.

8280-589, Sec. 4 (part).)

Sec.8183.104.DIRECTOR'S AND TREASURER'S BOND. (a) Each

director shall give bond in the amount of $5,000 conditioned on the

faithful performance of the director's duties.

(b) The treasurer shall give bond in the amount required by

the board. The treasurer's bond shall be conditioned on the

treasurer's faithful accounting for all money that comes into the

treasurer's custody as treasurer of the district. (V.A.C.S. Art.

8280-589, Secs. 3(c) (part), 4 (part).)

Sec.8183.105.COMPENSATION. Unless the board by

resolution increases the fee to an amount authorized by Section

49.060, Water Code, each director:

(1) shall receive a fee for attending each meeting of

the board not to exceed $20 for a meeting or $40 in one calendar

month; and

(2) is entitled to an additional amount not to exceed

$20 for each day that the director devotes to serving the business

of the district if the service is expressly approved by the board.

(V.A.C.S. Art. 8280-589, Sec. 3(d) (part).)

[Sections 8183.106-8183.150 reserved for expansion]

SUBCHAPTER D. GENERAL POWERS AND DUTIES

Sec. 8183.151. CONTRACTS TO SUPPLY WATER OR SEWAGE

SERVICES. (a) The district may contract with a municipality or

other entity to supply to the entity water or sewage

transportation, treatment, or disposal services.

(b) The district may contract with a municipality for the

rental or leasing of or for the operation of the municipality's

water production, water supply, water filtration or purification,

or water supply facilities or the municipality's sewage collection,

treatment, and disposal system on the consideration agreed to by

the district and the municipality.

by the parties.

(d) The contract may provide that it will continue in effect

until bonds specified in it and refunding bonds issued in lieu of

the bonds are paid.

(e) The district may contract with a municipality for the

operation of the district's water and sewer system by the

municipality. (V.A.C.S. Art. 8280-589, Sec. 14.)

Sec.8183.152.ACQUISITION OF LAND AND OTHER PROPERTY. The

district may acquire the fee simple title to land and other property

or easements inside or outside the district and may construct,

lease, or otherwise acquire all works, plants, and other facilities

necessary or useful to:

(1) divert, impound, store, or treat water for, or

transport water to, municipalities and others inside or outside the

district for municipal, domestic, industrial, or mining purposes;

(2) provide sewage collection, transportation,

treatment, or disposal services to municipalities and others inside

or outside the district. (V.A.C.S. Art. 8280-589, Sec. 6 (part).)

Sec.8183.153.CONSTRUCTION CONTRACTS. (a) The district

may award a construction contract that requires an expenditure of

more than $5,000 only after publication of notice to bidders once

each week for two weeks in a newspaper of general circulation in the

district that is designated or approved by the board.

(b) The notice is sufficient if it states:

(1) the time and place for opening the bids;

(2) the general nature of the work to be done or the

material, equipment, or supplies to be purchased; and

(3) the place where and the terms on which copies of

the plans and specifications may be obtained. (V.A.C.S. Art.

8280-589, Sec. 8.)

Sec.8183.154.SURPLUS PROPERTY. Subject to the terms of a

deed of trust issued by the district, the district may sell, trade,

or otherwise dispose of property the board considers not needed for

district purposes. (V.A.C.S. Art. 8280-589, Sec. 6 (part).)

Sec.8183.155.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, inside or outside the district, including

land needed for a reservoir, dam, or flood easement above the

probable high-water line around a reservoir.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code.

of Chapter 21, Property Code.

(d) The district may not exercise the power of eminent

domain to acquire property owned by any other political

subdivision.

(e) In exercising the power of eminent domain against a

person that has the power of eminent domain or a receiver or trustee

for that person, the district may acquire an easement only and not

the fee title.

(f) The board shall determine the amount of and the type of

interest in land, other property, or easements to be acquired under

this section. (V.A.C.S. Art. 8280-589, Sec. 7 (part).)

Sec.8183.156.COST OF RELOCATING PROPERTY. If the

district's exercise of any power granted under this chapter makes

necessary relocating, raising, rerouting or changing the grade of,

or altering the construction of any highway, railroad, electric

transmission line, telephone or telegraph property and facility, or

pipeline, the action shall be accomplished at the sole expense of

the district. (V.A.C.S. Art. 8280-589, Sec. 6 (part).)

[Sections 8183.157-8183.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec.8183.201.DEPOSITORY. (a) The board shall designate

one or more banks inside or outside the district to serve as

depository for district money.

(b) All district money shall be deposited in a designated

depository, except that:

(1) bond proceeds and money pledged to pay bonds, to

the extent provided in the indenture, may be deposited with the

trustee bank named in the trust indenture; and

(2) money shall be remitted to the bank of payment for

the payment of principal of and interest on the bonds.

trustee 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) The board shall prescribe the terms of service for

depositories.

(e) Before designating a depository bank, the board shall:

(1) publish notice one time in a newspaper of general

circulation in the district that is specified by the board; or

(2) mail a copy of the notice to each bank in the

district.

(f) The notice must:

(1) state the time and place at which the board will

meet to designate a depository bank or banks; and

(2) invite each bank in the district to submit an

application to be designated as a depository.

(g) At the time stated in the notice, the board shall:

(1) consider the applications and the management and

condition of each bank; and

(2) designate as a depository the bank or banks:

(A) that offer the most favorable terms for the

handling of the money; and

(B) that the board finds have proper management

and are in condition to handle the money.

(h) Membership on the board of an officer or director of a

bank does not disqualify the bank from being designated as a

depository.

(i) If the board does not receive any applications before

the time stated in the notice, the board shall designate one or more

banks inside or outside the district on terms that the board finds

advantageous to the district. (V.A.C.S. Art. 8280-589, Sec. 15.)

Sec.8183.202.TAX ASSESSOR AND COLLECTOR. Before the sale

and delivery of district bonds payable wholly or partly from ad

valorem taxes, the board may appoint a tax assessor and collector.

(V.A.C.S. Art. 8280-589, Sec. 18(b) (part).)

Sec.8183.203.PROJECTS EXEMPT FROM ASSESSMENT OR TAXATION.

The district is not required to pay a tax or assessment on a project

or any part of a project. (V.A.C.S. Art. 8280-589, Sec. 17 (part).)

[Sections 8183.204-8183.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec.8183.251.AUTHORITY TO ISSUE BONDS. The district may

issue bonds to carry out any power conferred by this chapter. The

bonds must be authorized by a board resolution. (V.A.C.S. Art.

8280-589, Secs. 9(a) (part), (b) (part), (c) (part).)

Sec.8183.252.FORM OF BONDS. A district bond must be:

(1) issued in the district's name;

(2) signed by the president or vice president; and

(3) attested by the secretary. (V.A.C.S. Art.

8280-589, Sec. 9(b) (part).)

Sec.8183.253.MATURITY. District bonds must mature not

later than 40 years after their date of issuance. (V.A.C.S. Art.

8280-589, Sec. 9(b) (part).)

Sec. 8183.254. ELECTION FOR BONDS PAYABLE FROM AD VALOREM

TAX. (a) Bonds, other than refunding bonds, payable wholly or

partly from ad valorem taxes may not be issued unless authorized by

a majority of the district voters voting at an election.

(b) The board may order an election under this section

without a petition. The order must specify:

(1) the time and places at which the election will be

held;

(2) the purpose for which the bonds will be issued;

(3) the maximum amount of the bonds;

(4) the maximum maturity of the bonds;

(5) the form of the ballot; and

(6) the presiding judge for each voting place.

substantial copy of the order calling the election in a newspaper of

general circulation in each municipality located in the district.

The notice must be published once a week for two consecutive weeks.

The first publication must be not later than the 21st day before the

date of the election. (V.A.C.S. Art. 8280-589, Secs. 12(a) (part),

(b) (part).)

Sec.8183.255.BONDS PAYABLE FROM REVENUE. (a) Bonds

issued under this subchapter may be secured under board resolution

by a pledge of:

(1) all or part of the net revenue of the district;

(2) the net revenue of one or more contracts made

before or after the issuance of the bonds; or

(3) other revenue or income specified by resolution of

the board or in the trust indenture.

(b) The pledge may reserve the right to issue additional

bonds on a parity with, or subordinate to, the bond being issued,

subject to conditions specified in the pledge.

may be issued without an election. (V.A.C.S. Art. 8280-589, Secs.

9(a) (part), (d), 12(a) (part).)

Sec.8183.256.BONDS PAYABLE FROM AD VALOREM TAXES. The

district may issue bonds payable, as pledged by board resolution,

from:

(1) ad valorem taxes imposed on taxable property in

the district; or

(2) ad valorem taxes and revenue of the district.

(V.A.C.S. Art. 8280-589, Secs. 9(a) (part), (e) (part).)

Sec.8183.257.TAX AND RATE REQUIREMENTS. (a) If the

district issues bonds payable wholly or partly from ad valorem

taxes, the board shall impose a tax sufficient to pay the bonds and

the interest on the bonds as the bonds and interest become due. The

board may adopt the rate of the tax after considering the money

received from the other pledged revenue available for payment of

principal and interest to the extent and in the manner permitted by

the resolution authorizing the issuance of the bonds.

(b) If the district issues bonds payable wholly or partly

from revenue, the board shall set and revise the rates of

compensation for water sold and services rendered by the district.

compensation must be sufficient to:

(1) pay the expense of operating and maintaining the

facilities of the district;

(2) pay the bonds as they mature and the interest as it

accrues; and

(3) maintain the reserve and other funds as provided

in the resolution authorizing the issuance of the bonds.

(d) For bonds payable partly from revenue, the rates of

compensation must be sufficient to assure compliance with the

resolution authorizing the issuance of the bonds or the trust

indenture securing the bonds. (V.A.C.S. Art. 8280-589, Secs. 9(e)

(part), (f).)

Sec.8183.258.ADDITIONAL SECURITY. (a) Bonds not payable

wholly from ad valorem taxes may be additionally secured, at the

discretion of the board, by a deed of trust or mortgage lien on

physical property of the district, franchises, easements, water

rights and appropriation permits, leases, contracts, and all rights

appurtenant to the property, vesting in the trustee the power to:

(1) sell the property for the payment of the debt;

(2) operate the property; and

(3) take other action to further secure the bonds.

(b) A purchaser under a sale under the deed of trust lien, if

one is given:

(1) is the absolute owner of property, facilities, and

rights purchased; and

(2) is entitled to maintain and operate the property,

facilities, and rights. (V.A.C.S. Art. 8280-589, Sec. 11 (part).)

Sec.8183.259.TRUST INDENTURE. (a) A bond issued under

this subchapter, including a refunding bond, that is not payable

wholly from ad valorem taxes may be additionally secured by a trust

indenture. The trustee may be a bank with trust powers located

inside or outside this state.

(b) A trust indenture, regardless of the existence of the

deed of trust or mortgage lien on the property, may:

(1) provide for the security of the bonds and the

preservation of the trust estate in the manner prescribed by the

board;

(2) provide for amendment or modification of the trust

indenture;

(3) provide for the issuance of bonds to replace lost

or mutilated bonds;

(4) condition the right to spend district money or

sell district property on the approval of a licensed engineer

selected as provided by the trust indenture; and

(5) provide for the investment of district money.

(V.A.C.S. Art. 8280-589, Sec. 11 (part).)

Sec.8183.260.USE OF BOND PROCEEDS. (a) The district may

set aside an amount of proceeds from the sale of bonds issued under

this subchapter for:

(1) payment of interest expected to accrue during

construction;

(2) a reserve interest and sinking fund; and

(3) any other fund provided for in the resolution

authorizing the bonds or in the trust indenture.

(b) The district may use proceeds from the sale of the bonds

to pay any expense necessarily incurred in accomplishing the

purpose of the district, including any expense of issuing and

selling the bonds.

sale of the bonds and other district funds in securities that are

specified in the bond resolution or the trust indenture. (V.A.C.S.

Art. 8280-589, Sec. 9(g).)

Sec.8183.261.APPOINTMENT OF RECEIVER. (a) On default or

threatened default in the payment of principal of or interest on

bonds issued under this subchapter that are payable wholly or

partly from revenue, a court may, on petition of the holders of

outstanding bonds, appoint a receiver for the district.

(b) The receiver may collect and receive all district income

except taxes, employ and discharge district agents and employees,

take charge of money on hand except money received from taxes,

unless commingled, and manage the proprietary affairs of the

district without consent or hindrance by the board.

the sale of water or to renew those contracts with the approval of

the court that appointed the receiver.

(d) The court may vest the receiver with any other power or

duty the court finds necessary to protect the bondholders.

(V.A.C.S. Art. 8280-589, Sec. 9(h) (part).)

Sec.8183.262.REFUNDING BONDS. (a) The district may issue

refunding bonds to refund outstanding bonds issued under this

subchapter and interest on those bonds.

(b) Refunding bonds may:

(1) be issued to refund bonds of more than one series;

(2) combine the pledges for the outstanding bonds for

the security of the refunding bonds; or

(3) be secured by a pledge of other or additional

revenue or mortgage liens.

issuance of other bonds, their security, and the remedies of the

holders apply to refunding bonds.

(d) The comptroller shall register the refunding bonds on

surrender and cancellation of the bonds to be refunded.

(e) Instead of issuing bonds to be registered on the

surrender and cancellation of the bonds to be refunded, the

district, in the resolution authorizing the issuance of the

refunding bonds, may provide for the sale of the refunding bonds and

the deposit of the proceeds in a bank at which the bonds to be

refunded are payable. In that case, the refunding bonds may be

issued in an amount sufficient to pay the principal of and interest

on the bonds to be refunded to their option date or maturity date,

and the comptroller shall register the refunding bonds without the

concurrent surrender and cancellation of the bonds to be refunded.

(f) An election is not required for refunding bonds.

(V.A.C.S. Art. 8280-589, Sec. 10.)

Sec.8183.263.LIMITATION ON RIGHTS OF HOLDERS. The

resolution authorizing the bonds or the trust indenture securing

the bonds may limit or qualify the rights of the holders of less

than all of the outstanding bonds payable from the same source to

institute or prosecute litigation affecting the district's

property or income. (V.A.C.S. Art. 8280-589, Sec. 9(h) (part).)

Sec.8183.264.BONDS EXEMPT FROM TAXATION. A bond issued

under this subchapter, the transfer of the bond, and income from the

bond, including profits made on the sale of the bond, are exempt

from taxation in this state. (V.A.C.S. Art. 8280-589, Sec. 17

(part).)

Sec. 8183.265. DETACHMENT OF TERRITORY AFTER ISSUANCE OF

BONDS. Territory may not be detached from the district after the

issuance of bonds payable from revenue or taxes. (V.A.C.S. Art.

8280-589, Sec. 12(a) (part).)

CHAPTER 8184. DOWDELL PUBLIC UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8184.001. DEFINITION

Sec. 8184.002. NATURE OF DISTRICT

Sec. 8184.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8184.004. DISTRICT TERRITORY

[Sections 8184.005-8184.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8184.051. COMPOSITION OF BOARD

[Sections 8184.052-8184.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8184.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8184. DOWDELL PUBLIC UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8184.001.DEFINITION. In this chapter, "district"

means the Dowdell Public Utility District. (V.A.C.S. Art.

8280-581, Sec. 1 (part).)

Sec.8184.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Harris County created

under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.

8280-581, Sec. 1 (part).)

Sec.8184.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution.

(V.A.C.S. Art. 8280-581, Secs. 1 (part), 3.)

Sec.8184.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 4, Chapter 697, Acts

of the 62nd Legislature, Regular Session, 1971 (Article 8280-581,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (V.A.C.S. Art. 8280-581, Sec. 2; New.)

[Sections 8184.005-8184.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8184.051.COMPOSITION OF BOARD. The board of

directors is composed of five elected directors. (V.A.C.S. Art.

8280-581, Sec. 6 (part).)

[Sections 8184.052-8184.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8184.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district,

including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-581,

Sec. 5 (part); New.)

CHAPTER 8186. EAST MONTGOMERY COUNTY MUNICIPAL

UTILITY DISTRICT NO. 3

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8186.001. DEFINITION

Sec. 8186.002. NATURE OF DISTRICT

Sec. 8186.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8186.004. DISTRICT TERRITORY

[Sections 8186.005-8186.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8186.051. COMPOSITION OF BOARD; TERMS

[Sections 8186.052-8186.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8186.101. MUNICIPAL UTILITY DISTRICT POWERS

Sec. 8186.102. COMPLIANCE WITH MUNICIPAL CONSENT

ORDINANCES OR RESOLUTIONS

CHAPTER 8186. EAST MONTGOMERY COUNTY MUNICIPAL

UTILITY DISTRICT NO. 3

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8186.001.DEFINITION. In this chapter, "district"

means the East Montgomery County Municipal Utility District No. 3.

(Acts 77th Leg., R.S., Ch. 1385, Sec. 2.)

Sec.8186.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Montgomery County,

created under Section 59, Article XVI, Texas Constitution. (Acts

77th Leg., R.S., Ch. 1385, Secs. 1(a) (part), (b) (part).)

Sec.8186.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the district

will benefit from the works and projects accomplished by the

district under the powers conferred by Section 59, Article XVI,

Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution. (Acts

77th Leg., R.S., Ch. 1385, Secs. 1(b) (part), 5.)

Sec.8186.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 3, Chapter 1385,

Acts of the 77th Legislature, Regular Session, 2001, as that

territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, or

validity;

(2) the validity of district bonds, notes, or other

indebtedness;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (Acts 77th Leg., R.S., Ch. 1385, Sec. 4; New.)

[Sections 8186.005-8186.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8186.051.COMPOSITION OF BOARD; TERMS. (a) The

district is governed by a board of five directors.

(b) Directors serve staggered four-year terms. (Acts 77th

Leg., R.S., Ch. 1385, Secs. 7(a), (d).)

[Sections 8186.052-8186.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8186.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, functions, and duties

provided by general law applicable to a municipal utility district

created under Section 59, Article XVI, Texas Constitution,

including Chapters 49, 50, and 54, Water Code. (Acts 77th Leg.,

R.S., Ch. 1385, Sec. 6(a) (part).)

Sec. 8186.102. COMPLIANCE WITH MUNICIPAL CONSENT

ORDINANCES OR RESOLUTIONS. Subject to the limitations of Section

54.016, Water Code, the district shall comply with all applicable

requirements of any ordinance or resolution adopted by any

municipality in whose corporate limits or extraterritorial

jurisdiction the district is located, including an ordinance or

resolution adopted before September 1, 2001, that consents to the

creation of the district or to the inclusion of lands in the

district. (Acts 77th Leg., R.S., Ch. 1385, Sec. 11.)

CHAPTER 8187. GOBER MUNICIPAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8187.001. DEFINITIONS

Sec. 8187.002. NATURE OF DISTRICT

Sec. 8187.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8187.004. DISTRICT TERRITORY

[Sections 8187.005-8187.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8187.051. COMPOSITION OF BOARD; TERMS

[Sections 8187.052-8187.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8187.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8187. GOBER MUNICIPAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8187.001.DEFINITIONS. In this chapter:

(1) "Director" means a member of the district's board

of directors.

(2) "District" means the Gober Municipal Utility

District. (Acts 75th Leg., R.S., Ch. 756, Sec. 2; New.)

Sec.8187.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Fannin County created

under Section 59, Article XVI, Texas Constitution. (Acts 75th

Leg., R.S., Ch. 756, Secs. 1(a) (part), (b) (part).)

Sec.8187.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property in the district will benefit

from the works and projects to be accomplished by the district under

powers conferred by Section 59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution. (Acts

75th Leg., R.S., Ch. 756, Secs. 1(b) (part), 5.)

Sec.8187.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 3, Chapter 756, Acts

of the 75th Legislature, Regular Session, 1997, as that territory

may have been modified under:

(1) Subchapter J, Chapter 49, Water Code;

(2) Subchapter H, Chapter 54, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, or

validity;

(2) the district's right to impose a tax; or

(3) the legality or operation of the district or its

governing body. (New; Acts 75th Leg., R.S., Ch. 756, Sec. 4.)

[Sections 8187.005-8187.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8187.051.COMPOSITION OF BOARD; TERMS. (a) The

district is governed by a board of five directors.

(b) Directors serve staggered terms of four years. (Acts

75th Leg., R.S., Ch. 756, Secs. 7(a), (d).)

[Sections 8187.052-8187.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8187.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, functions, and duties

provided by general law applicable to a municipal utility district

created under Section 59, Article XVI, Texas Constitution,

including Chapters 49 and 54, Water Code. (Acts 75th Leg., R.S.,

Ch. 756, Sec. 6(a) (part).)

CHAPTER 8188. GRANT ROAD PUBLIC UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8188.001. DEFINITION

Sec. 8188.002. NATURE OF DISTRICT

Sec. 8188.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8188.004. DISTRICT TERRITORY

[Sections 8188.005-8188.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8188.051. COMPOSITION OF BOARD

[Sections 8188.052-8188.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8188.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8188. GRANT ROAD PUBLIC UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8188.001.DEFINITION. In this chapter, "district"

means the Grant Road Public Utility District. (V.A.C.S. Art.

8280-504, Sec. 1 (part).)

Sec.8188.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Harris County, created

under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.

8280-504, Sec. 1 (part).)

Sec.8188.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution.

(V.A.C.S. Art. 8280-504, Secs. 1 (part), 3.)

Sec.8188.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 4, Chapter 474, Acts

of the 62nd Legislature, Regular Session, 1971 (Article 8280-504,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (V.A.C.S. Art. 8280-504, Sec. 2; New.)

[Sections 8188.005-8188.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8188.051.COMPOSITION OF BOARD. The board of

directors is composed of five elected directors. (V.A.C.S. Art.

8280-504, Sec. 6 (part).)

[Sections 8188.052-8188.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8188.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district,

including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-504,

Sec. 5 (part).)

CHAPTER 8191. HACIENDAS DEL NORTE WATER IMPROVEMENT DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8191.001. DEFINITION

Sec. 8191.002. NATURE OF DISTRICT

Sec. 8191.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8191.004. DISTRICT TERRITORY

[Sections 8191.005-8191.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8191.051. COMPOSITION OF BOARD

[Sections 8191.052-8191.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8191.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8191. HACIENDAS DEL NORTE WATER IMPROVEMENT DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8191.001.DEFINITION. In this chapter, "district"

means the Haciendas Del Norte Water Improvement District. (Acts

67th Leg., R.S., Ch. 104, Sec. 1 (part).)

Sec.8191.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in El Paso County, created

under Section 59, Article XVI, Texas Constitution. (Acts 67th

Leg., R.S., Ch. 104, Sec. 1 (part).)

Sec.8191.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution. (Acts

67th Leg., R.S., Ch. 104, Secs. 1 (part), 3.)

Sec.8191.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 4, Chapter 104, Acts

of the 67th Legislature, Regular Session, 1981, as that territory

may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (Acts 67th Leg., R.S., Ch. 104, Sec. 2; New.)

[Sections 8191.005-8191.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8191.051.COMPOSITION OF BOARD. The board of

directors is composed of five elected directors. (Acts 67th Leg.,

R.S., Ch. 104, Sec. 6 (part).)

[Sections 8191.052-8191.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8191.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district,

including Chapters 49 and 54, Water Code. (Acts 67th Leg., R.S.,

Ch. 104, Sec. 5 (part).)

CHAPTER 8192. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 233

OF HARRIS COUNTY, TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8192.001. DEFINITION

Sec. 8192.002. NATURE OF DISTRICT

Sec. 8192.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8192.004. DISTRICT TERRITORY

[Sections 8192.005-8192.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8192.051. COMPOSITION OF BOARD; TERMS

Sec. 8192.052. BOARD VACANCY

[Sections 8192.053-8192.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8192.101. MUNICIPAL UTILITY DISTRICT POWERS

Sec. 8192.102. COMPLIANCE WITH MUNICIPAL CONSENT

ORDINANCES OR RESOLUTIONS

CHAPTER 8192. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 233

OF HARRIS COUNTY, TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8192.001.DEFINITION. In this chapter, "district"

means the Harris County Municipal Utility District No. 233 of

Harris County, Texas. (Acts 68th Leg., R.S., Ch. 704, Sec. 1

(part).)

Sec.8192.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Harris County, created

under Section 59, Article XVI, Texas Constitution. (Acts 68th

Leg., R.S., Ch. 704, Sec. 1 (part).)

Sec.8192.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution. (Acts

68th Leg., R.S., Ch. 704, Secs. 1 (part), 4.)

Sec.8192.004.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 2, Chapter 704, Acts

of the 68th Legislature, Regular Session, 1983, as that territory

may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue bonds for a purpose

for which the district is created or to pay the principal of and

interest on the bonds;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (Acts 68th Leg., R.S., Ch. 704, Sec. 3; New.)

[Sections 8192.005-8192.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8192.051.COMPOSITION OF BOARD; TERMS. (a) The board

of directors is composed of five elected directors.

(b) Directors serve staggered four-year terms, with two or

three directors elected at each election. (Acts 68th Leg., R.S.,

Ch. 704, Sec. 6 (part).)

Sec.8192.052.BOARD VACANCY. If at any time there are fewer

than three qualified directors for any reason, on petition of a

landowner in the district, the Texas Commission on Environmental

Quality shall appoint the necessary number of directors to fill all

vacancies on the board. (Acts 68th Leg., R.S., Ch. 704, Sec. 6

(part).)

[Sections 8192.053-8192.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.8192.101.MUNICIPAL UTILITY DISTRICT POWERS. The

district has the rights, powers, privileges, and functions provided

by general law applicable to a municipal utility district,

including Chapters 49 and 54, Water Code. (Acts 68th Leg., R.S.,

Ch. 704, Sec. 5 (part).)

Sec. 8192.102. COMPLIANCE WITH MUNICIPAL CONSENT

ORDINANCES OR RESOLUTIONS. The district shall comply with all

applicable requirements of a Houston City Council ordinance or

resolution that consented to the creation of the district or the

inclusion of land in the district. (Acts 68th Leg., R.S., Ch. 704,

Sec. 7 (part).)

SECTION 1.11. Subtitle H, Title 6, Special District Local

Laws Code, is amended by adding Chapter 8806 to read as follows:

CHAPTER 8806. COKE COUNTY UNDERGROUND WATER

CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8806.001. DEFINITIONS

Sec. 8806.002. NATURE OF DISTRICT

Sec. 8806.003. FINDINGS OF PUBLIC USE AND BENEFIT

Sec. 8806.004. DISTRICT TERRITORY

Sec. 8806.005. ADMINISTRATIVE PROCEDURES

Sec. 8806.006. CONFLICT OF LAW

[Sections 8806.007-8806.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8806.051. COMPOSITION OF BOARD; TERMS

Sec. 8806.052. METHOD OF ELECTING DIRECTORS

Sec. 8806.053. ELECTION DATE

Sec. 8806.054. QUALIFICATIONS FOR ELECTION

[Sections 8806.055-8806.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8806.101. GENERAL RIGHTS, POWERS, DUTIES,

PRIVILEGES, AND FUNCTIONS

Sec. 8806.102. WELL PERMITS

Sec. 8806.103. WELL SPACING AND PRODUCTION

Sec. 8806.104. RECORDS, REPORTS, AND LOGS

Sec. 8806.105. ACQUISITION OF LAND

Sec. 8806.106. RECHARGE OF RESERVOIR

Sec. 8806.107. SURVEYS

Sec. 8806.108. DISTRICT PLANS

Sec. 8806.109. RESEARCH PROJECTS

Sec. 8806.110. COLLECTION AND PRESERVATION OF

INFORMATION

Sec. 8806.111. DISSEMINATION OF PLANS AND INFORMATION

Sec. 8806.112. CONTRACT FOR AND SALE AND DISTRIBUTION

OF WATER

Sec. 8806.113. ANNEXATION

Sec. 8806.114. DISSOLUTION

CHAPTER 8806. COKE COUNTY UNDERGROUND WATER

CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.8806.001.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 Coke County Underground Water

Conservation District. (Acts 69th Leg., R.S., Ch. 950, Sec. 2;

New.)

Sec.8806.002.NATURE OF DISTRICT. The district is created

under Section 59, Article XVI, Texas Constitution, to provide for

the conservation, preservation, protection, recharge, and

prevention of waste of the groundwater reservoirs located under

district land, consistent with the objectives of Section 59,

Article XVI, Texas Constitution, and Chapters 36 and 51, Water

Code. (Acts 69th Leg., R.S., Ch. 950, Secs. 1 (part), 4.)

Sec.8806.003.FINDINGS OF PUBLIC USE AND BENEFIT. (a) The

district is created to serve a public use and benefit.

(b) Land included in the boundaries of the district will

benefit. (Acts 69th Leg., R.S., Ch. 950, Sec. 8(a).)

Sec.8806.004.DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Coke County, Texas.

(Acts 69th Leg., R.S., Ch. 950, Sec. 3.)

Sec.8806.005.ADMINISTRATIVE PROCEDURES. The

administrative and procedural provisions of Chapters 36 and 51,

Water Code, apply to the district. (Acts 69th Leg., R.S., Ch. 950,

Sec. 6 (part).)

Sec.8806.006.CONFLICT OF LAW. If there is a conflict

between Chapters 36 and 51, Water Code, Chapter 36 controls. (Acts

69th Leg., R.S., Ch. 950, Sec. 13 (part).)

[Sections 8806.007-8806.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.8806.051.COMPOSITION OF BOARD; TERMS. (a) The

district is governed by a board of five directors.

(b) Directors serve staggered four-year terms. (Acts 69th

Leg., R.S., Ch. 950, Secs. 12(a), (f); Acts 72nd Leg., R.S., Ch.

197, Sec. 3(b) (part).)

Sec.8806.052.METHOD OF ELECTING DIRECTORS. One director

is elected from each county commissioners precinct in Coke County

and one director is elected at large. (Acts 69th Leg., R.S., Ch.

950, Sec. 12(c).)

Sec.8806.053.ELECTION DATE. The district shall hold an

election in the district to elect directors on the uniform election

date in May of each odd-numbered year. (Acts 69th Leg., R.S., Ch.

950, Sec. 12(e).)

Sec.8806.054.QUALIFICATIONS FOR ELECTION. (a) To be

qualified for election as a director, a person must be:

(1) a resident of the district; and

(2) at least 21 years of age.

(b) To be qualified for election as a director from a

precinct, a person must reside in that precinct. (Acts 69th Leg.,

R.S., Ch. 950, Secs. 12(b), (d).)

[Sections 8806.055-8806.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8806.101. GENERAL RIGHTS, POWERS, DUTIES, PRIVILEGES,

AND FUNCTIONS. The district has:

(1) the powers essential to accomplish the purposes of

Section 59, Article XVI, Texas Constitution; and

(2) the rights, powers, duties, privileges, and

functions provided by this chapter, Chapters 36 and 51, Water Code,

and other laws of this state relating to groundwater conservation

districts. (Acts 69th Leg., R.S., Ch. 950, Secs. 1 (part), 5(a).)

Sec.8806.102.WELL PERMITS. (a) The board may:

(1) require a permit for drilling, equipping, or

completing a well in the groundwater reservoir; and

(2) issue a permit subject to terms and provisions

relating to drilling, equipping, or completing a well that are

necessary to prevent waste or conserve, preserve, and protect

groundwater.

(b) The board may not deny an owner of land, or the owner's

heirs, assigns, and lessees, a permit to drill a well on that land

or the right to produce groundwater from that well subject to rules

adopted under this chapter. (Acts 69th Leg., R.S., Ch. 950, Secs.

5(c), (d) (part).)

Sec.8806.103.WELL SPACING AND PRODUCTION. The board may:

(1) provide for the spacing of wells producing from

groundwater reservoirs; and

(2) regulate the production from those wells to

minimize as far as practicable the drawdown of the water table or

the reduction of the artesian pressure. (Acts 69th Leg., R.S., Ch.

950, Sec. 5(d) (part).)

Sec.8806.104.RECORDS, REPORTS, AND LOGS. (a) The board

may require that records be kept and reports be made of:

(1) the drilling, equipping, and completing of a well

into a groundwater reservoir; and

(2) the taking and use of groundwater from that

reservoir.

(b) The board may require accurate driller's logs to be kept

of a well described by Subsection (a)(1).

of any electric log that may be made of a well be filed with the

district. (Acts 69th Leg., R.S., Ch. 950, Sec. 5(e).)

Sec.8806.105.ACQUISITION OF LAND. The district may

acquire land to erect a dam or drain a lake, depression, or draw.

(Acts 69th Leg., R.S., Ch. 950, Sec. 5(f) (part).)

Sec.8806.106.RECHARGE OF RESERVOIR. The district may

construct dams, drain lakes, depressions, draws, or creeks, and

install pumps and other equipment necessary to recharge a

groundwater reservoir. (Acts 69th Leg., R.S., Ch. 950, Sec. 5(f)

(part).)

Sec.8806.107.SURVEYS. The district may have a licensed

engineer survey the groundwater of a groundwater reservoir and the

facilities for the development, production, and use of that

groundwater and determine the quantity of the groundwater available

for production and use and the improvements, developments, and

recharges needed for the groundwater reservoir. (Acts 69th Leg.,

R.S., Ch. 950, Sec. 5(g).)

Sec.8806.108.DISTRICT PLANS. (a) The district may

develop comprehensive plans for the most efficient use of the

groundwater of a groundwater reservoir and for the control and

prevention of waste of that groundwater.

(b) The plans must specify in the amount of detail that may

be practicable any act, procedure, performance, or avoidance

necessary to effect those plans. (Acts 69th Leg., R.S., Ch. 950,

Sec. 5(h).)

Sec.8806.109.RESEARCH PROJECTS. The district may carry

out research projects, develop information, and determine

limitations, if any, that should be made on the withdrawal of

groundwater from a groundwater reservoir. (Acts 69th Leg., R.S.,

Ch. 950, Sec. 5(i).)

Sec.8806.110.COLLECTION AND PRESERVATION OF INFORMATION.

The district may collect and preserve information regarding the use

of groundwater and the practicability of recharge of a groundwater

reservoir. (Acts 69th Leg., R.S., Ch. 950, Sec. 5(j).)

Sec.8806.111.DISSEMINATION OF PLANS AND INFORMATION. The

board may:

(1) publish plans and information;

(2) notify the users of groundwater in the district of

the plans and information; and

(3) encourage the adoption and execution of the plans.

(Acts 69th Leg., R.S., Ch. 950, Sec. 5(k).)

Sec. 8806.112. CONTRACT FOR AND SALE AND DISTRIBUTION OF

WATER. The district may contract for, sell, and distribute water

from a water import authority or other agency. (Acts 69th Leg.,

R.S., Ch. 950, Sec. 5(l).)

Sec.8806.113.ANNEXATION. Territory may be added to the

district under Subchapter J, Chapter 49, Water Code. The board

shall determine to which precinct the annexed land is added for the

purpose of electing directors. (Acts 69th Leg., R.S., Ch. 950, Sec.

11.)

Sec.8806.114.DISSOLUTION. Chapter 36, Water Code,

applies to the dissolution of the district. (Acts 69th Leg., R.S.,

Ch. 950, Sec. 10.)

SECTION 1.12. Subtitle I, Title 6, Special District Local

Laws Code, is amended by adding Chapters 9009, 9011, 9012, and 9013

to read as follows:

CHAPTER 9009. ALICE WATER AUTHORITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 9009.001. DEFINITIONS

Sec. 9009.002. NATURE OF AUTHORITY

Sec. 9009.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 9009.004. CONSTRUCTION OF CHAPTER

[Sections 9009.005-9009.050 reserved for expansion]

SUBCHAPTER B. AUTHORITY TERRITORY AND ANNEXATIONS TO AUTHORITY

TERRITORY

Sec. 9009.051. AUTHORITY TERRITORY

Sec. 9009.052. ANNEXATION OF CITY TERRITORY

[Sections 9009.053-9009.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec. 9009.101. COMPOSITION OF BOARD; TERMS

Sec. 9009.102. APPOINTMENT OF DIRECTORS

Sec. 9009.103. QUALIFICATIONS FOR OFFICE

Sec. 9009.104. VACANCY

Sec. 9009.105. APPOINTMENT OF SECRETARY AND TREASURER

Sec. 9009.106. VOTE BY BOARD PRESIDENT

Sec. 9009.107. DIRECTOR'S AND TREASURER'S BOND

Sec. 9009.108. COMPENSATION

Sec. 9009.109. MANAGER

[Sections 9009.110-9009.150 reserved for expansion]

SUBCHAPTER D. GENERAL POWERS AND DUTIES

Sec. 9009.151. ACQUISITION AND USE OF WATER FROM

CORPUS CHRISTI

Sec. 9009.152. WATER FACILITIES

Sec. 9009.153. REGIONAL WASTE DISPOSAL

Sec. 9009.154. APPROPRIATION PERMITS

Sec. 9009.155. ACQUISITION OF PROPERTY

Sec. 9009.156. GENERAL CONTRACT POWERS

Sec. 9009.157. AWARD OF CERTAIN CONSTRUCTION CONTRACTS

Sec. 9009.158. ASSIGNMENT OF CONTRACT RIGHTS

[Sections 9009.159-9009.200 reserved for expansion]

SUBCHAPTER E. EMINENT DOMAIN AND RELATED POWERS

Sec. 9009.201. EMINENT DOMAIN IN JIM WELLS COUNTY

Sec. 9009.202. EMINENT DOMAIN IN NUECES COUNTY

Sec. 9009.203. DETERMINATION OF INTEREST TO BE

ACQUIRED

Sec. 9009.204. SURVEYS

Sec. 9009.205. COST OF RELOCATING OR ALTERING PROPERTY

[Sections 9009.206-9009.250 reserved for expansion]

SUBCHAPTER F. REGULATORY POWERS

Sec. 9009.251. ADOPTION OF RULES

Sec. 9009.252. ENFORCEMENT OF RULES; PENALTY

Sec. 9009.253. NOTICE OF RULE PROVIDING PENALTY

Sec. 9009.254. JUDICIAL NOTICE OF RULES

Sec. 9009.255. ENFORCEMENT BY PEACE OFFICERS

[Sections 9009.256-9009.300 reserved for expansion]

SUBCHAPTER G. GENERAL FINANCIAL PROVISIONS

Sec. 9009.301. DEPOSITORY

Sec. 9009.302. TAX ASSESSOR AND COLLECTOR

Sec. 9009.303. PROJECTS EXEMPT FROM ASSESSMENT OR

TAXATION

[Sections 9009.304-9009.350 reserved for expansion]

SUBCHAPTER H. BONDS

Sec. 9009.351. AUTHORITY TO ISSUE BONDS

Sec. 9009.352. FORM OF BONDS

Sec. 9009.353. MATURITY

Sec. 9009.354. ELECTION FOR BONDS PAYABLE FROM AD

VALOREM TAXES

Sec. 9009.355. BONDS PAYABLE FROM REVENUE

Sec. 9009.356. BONDS PAYABLE FROM AD VALOREM TAXES

Sec. 9009.357. TAX AND RATE REQUIREMENTS

Sec. 9009.358. ADDITIONAL SECURITY

Sec. 9009.359. TRUST INDENTURE

Sec. 9009.360. INTERIM BONDS OR NOTES

Sec. 9009.361. USE OF BOND PROCEEDS

Sec. 9009.362. APPOINTMENT OF RECEIVER

Sec. 9009.363. REFUNDING BONDS

Sec. 9009.364. LIMITATION ON RIGHTS OF HOLDERS

Sec. 9009.365. BONDS EXEMPT FROM TAXATION

CHAPTER 9009. ALICE WATER AUTHORITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec.9009.001.DEFINITIONS. In this chapter:

(1) "Authority" means the Alice Water Authority.

(2) "Board" means the board of directors of the

authority.

(3) "City" means the City of Alice.

(4) "Corpus Christi" means the City of Corpus Christi.

(5) "Director" means a member of the board.

(6) "Nueces district" means the Lower Nueces Water

Supply District. (V.A.C.S. Art. 8280-270, Secs. 1 (part), 3(a)

(part), 6 (part); New.)

Sec.9009.002.NATURE OF AUTHORITY. (a) The authority is a

conservation and reclamation district created under Section 59,

Article XVI, Texas Constitution.

(b) The authority is an agency of this state. (V.A.C.S.

Art. 8280-270, Sec. 1 (part).)

Sec.9009.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

All territory and taxable property in the authority will benefit

from the works and improvements of the authority.

(b) The accomplishment of the purposes stated in this

chapter, including the use, for municipal and industrial purposes,

of stored water that otherwise would be wasted into the Gulf, is for

the benefit of the people of this state and for the improvement of

their property and industries.

authority will be performing an essential public function under the

constitution. (V.A.C.S. Art. 8280-270, Secs. 2 (part), 20 (part).)

Sec.9009.004.CONSTRUCTION OF CHAPTER. This chapter may

not be interpreted as amending or repealing Section 11.024, Water

Code, which provides for priorities for the use of water. (V.A.C.S.

Art. 8280-270, Sec. 23.)

[Sections 9009.005-9009.050 reserved for expansion]

SUBCHAPTER B. AUTHORITY TERRITORY AND ANNEXATIONS TO AUTHORITY

TERRITORY

Sec.9009.051.AUTHORITY TERRITORY. The authority is

composed of the territory that was contained in the city on January

1, 1981, as that territory may have been modified under:

(1) Subchapter J, Chapter 49, Water Code;

(2) Section 5, Chapter 12, Acts of the 57th

Legislature, 3rd Called Session, 1962 (Article 8280-270, Vernon's

Texas Civil Statutes);

(3) Section 9009.052; or

(4) other law. (V.A.C.S. Art. 8280-270, Sec. 2

(part); New.)

Sec.9009.052.ANNEXATION OF CITY TERRITORY. (a)

Territory annexed to the city may be annexed to the authority as

provided by this section.

(b) At any time after final passage of an ordinance annexing

territory to the city, the board may issue a notice of hearing on

the question of annexing all or part of the territory annexed to the

city.

(1) states the date and place of the hearing; and

(2) describes the area proposed to be annexed or

refers to the annexation ordinance of the city.

(d) The notice must be published one time in a newspaper of

general circulation in the city not later than the 10th day before

the date set for the hearing.

(e) The board shall adopt a resolution annexing the

territory to the authority if, after the hearing, the board finds

that the territory proposed to be annexed will benefit from the

water supplied or to be supplied by the authority.

(f) After the territory is annexed to the authority, the

board may hold an election in the authority as enlarged to determine

whether the authority as enlarged shall:

(1) assume any tax-supported bonds that are

outstanding or voted but not yet sold; and

(2) impose an ad valorem tax on all taxable property in

the authority as enlarged for the payment of those bonds.

(g) An election held under Subsection (f) shall be held in

the same manner as an election under Section 9009.354 for the

issuance of bonds payable wholly or partly from taxes. (V.A.C.S.

Art. 8280-270, Sec. 5.)

[Sections 9009.053-9009.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec.9009.101.COMPOSITION OF BOARD; TERMS. The board

consists of five directors who serve staggered two-year terms

expiring January 1. (V.A.C.S. Art. 8280-270, Sec. 3(a) (part);

New.)

Sec.9009.102.APPOINTMENT OF DIRECTORS. Each December the

governing body of the city shall appoint a director to succeed each

director whose term expires on the following January 1. (V.A.C.S.

Art. 8280-270, Secs. 3(a) (part), (b) (part).)

Sec.9009.103.QUALIFICATIONS FOR OFFICE. (a) A director

must reside in and own taxable property in the authority.

(b) A member of the city's governing body or an employee of

the city may not be appointed as a director. (V.A.C.S. Art.

8280-270, Sec. 3(c) (part).)

Sec.9009.104.VACANCY. If a director ceases to reside in

the authority or otherwise ceases to serve as a director, the

governing body of the city shall appoint a successor to fill the

vacancy for the unexpired term. (V.A.C.S. Art. 8280-270, Secs.

3(b) (part), (c) (part).)

Sec.9009.105.APPOINTMENT OF SECRETARY AND TREASURER. The

board shall appoint a secretary and a treasurer, who are not

required to be directors. The board may combine the offices of

secretary and treasurer. (V.A.C.S. Art. 8280-270, Sec. 4 (part).)

Sec.9009.106.VOTE BY BOARD PRESIDENT. The president has

the same right to vote as any other director. The vice president

may not exercise the president's right to vote. (V.A.C.S. Art.

8280-270, Sec. 4 (part).)

Sec.9009.107.DIRECTOR'S AND TREASURER'S BOND. (a) Each

director shall give bond in the amount of $5,000 conditioned on the

faithful performance of the director's duties.

(b) The treasurer shall give bond in the amount required by

the board. The treasurer's bond shall be conditioned on the

treasurer's faithful accounting for all money that comes into the

treasurer's custody as treasurer of the authority. (V.A.C.S. Art.

8280-270, Secs. 3(c) (part); 4 (part).)

Sec.9009.108.COMPENSATION. Unless the board by

resolution increases the fee to an amount authorized by Section

49.060, Water Code, each director:

(1) shall receive a fee for attending each meeting of

the board not to exceed $20 for a meeting or $40 in one calendar

month; and

(2) is entitled to an additional amount not to exceed

$20 for each day that the director devotes to serving the business

of the authority if the service is expressly approved by the board.

(V.A.C.S. Art. 8280-270, Sec. 3(d) (part).)

Sec.9009.109.MANAGER. The board shall employ a manager.

(V.A.C.S. Art. 8280-270, Sec. 4 (part).)

[Sections 9009.110-9009.150 reserved for expansion]

SUBCHAPTER D. GENERAL POWERS AND DUTIES

Sec. 9009.151. ACQUISITION AND USE OF WATER FROM CORPUS

CHRISTI. (a) The authority may acquire from Corpus Christi

untreated water supplied from Lake Corpus Christi, subject to a

contract between the authority and Corpus Christi that is approved

by the Nueces district or under a contract assigned to the

authority.

(b) The authority may procure water under Subsection (a)

only if the water is "surplus" to the requirements of Corpus

Christi as defined in a contract between Corpus Christi and the

Nueces district.

(a) as a source of water supply for the city if the right of the city

to execute a contract prescribing the obligations of the city and

the authority is approved by the voters of the city in compliance

with Section 402.020, Local Government Code.

(d) The authority may contract with Corpus Christi or the

Nueces district, or both, in reference to the authority's duty or

option to participate in the cost of any future enlargement of Lake

Corpus Christi and for a commensurate share of the increased water

yield. (V.A.C.S. Art. 8280-270, Sec. 6 (part).)

Sec.9009.152.WATER FACILITIES. (a) The authority may

acquire or construct, inside or outside the authority:

(1) a diversion works;

(2) wells;

(3) pumps;

(4) pumping stations;

(5) pipelines;

(6) intermediate and terminal storage reservoirs;

(7) a water treatment plant; and

(8) any other related facility necessary or useful in

diverting, impounding, drilling, storing, or treating water, or in

transporting treated or untreated water to the city for municipal,

domestic, agricultural, industrial, or any other purpose.

(b) A diversion works may be constructed to take water from

Lake Corpus Christi through intake or otherwise or from the Nueces

River below Lake Corpus Christi.

of the authority's proposed water supply, treatment, and

transportation system do not preclude the authority from

constructing any facility necessary or convenient in enabling the

authority to deliver treated or untreated water to the city.

(V.A.C.S. Art. 8280-270, Sec. 7.)

Sec.9009.153.REGIONAL WASTE DISPOSAL. The authority may

exercise the powers granted by Chapter 30, Water Code. (V.A.C.S.

Art. 8280-270, Sec. 6B.)

Sec.9009.154.APPROPRIATION PERMITS. The authority may:

(1) obtain an appropriation permit from the Texas

Commission on Environmental Quality as provided by Section 12.011,

Water Code; or

(2) participate with Corpus Christi or the Nueces

district in obtaining a required appropriation permit. (V.A.C.S.

Art. 8280-270, Sec. 8.)

Sec.9009.155.ACQUISITION OF PROPERTY. (a) To exercise a

right or perform a duty under this chapter, the authority may

acquire:

(1) works, machinery, plants, or other facilities; and

(2) land, rights-of-way, or easements.

(b) Subject to the terms of a deed of trust or indenture

executed by the authority, the authority may sell, trade, lease,

rent, or otherwise dispose of any property the board considers not

needed for authority purposes. (V.A.C.S. Art. 8280-270, Sec. 9.)

Sec.9009.156.GENERAL CONTRACT POWERS. The authority may

contract with the city, a public agency, a political subdivision,

this state, the United States, or another person for the purchase or

sale of water or any other purpose necessary to carry out this

chapter. (V.A.C.S. Art. 8280-270, Sec. 6A.)

Sec.9009.157.AWARD OF CERTAIN CONSTRUCTION CONTRACTS.

(a) This section applies only to a construction contract requiring

an expenditure of more than $2,000.

(b) A contract may be awarded only after notice of the

contract to bidders for sealed bids is published once a week for two

weeks in a newspaper of general circulation in the authority that is

designated or approved by the board.

(1) the time and place for opening the bids;

(2) the general nature of the work to be done or the

material, equipment, or supplies to be purchased; and

(3) the place where and the terms on which copies of

the plans and specifications may be obtained.

(d) The bids must be opened publicly. (V.A.C.S. Art.

8280-270, Sec. 11.)

Sec.9009.158.ASSIGNMENT OF CONTRACT RIGHTS. (a) The

authority may acquire by assignment any right of the city under a

contract between the city and Corpus Christi in reference to such

water supply.

(b) If the assignment is accepted, the authority shall

assume the city's obligations under the contract. (V.A.C.S. Art.

8280-270, Sec. 18.)

[Sections 9009.159-9009.200 reserved for expansion]

SUBCHAPTER E. EMINENT DOMAIN AND RELATED POWERS

Sec.9009.201.EMINENT DOMAIN IN JIM WELLS COUNTY. (a) The

authority may exercise the power of eminent domain in Jim Wells

County to acquire fee simple title to, an easement or right-of-way

in or on, or other interest in land or other property inside or

outside the authority, necessary to the exercise of the authority's

powers, rights, privileges, and functions under this chapter.

(b) The authority may acquire a property interest under

Subsection (a) in the manner provided by Chapter 21, Property Code,

or in the manner provided by a statute relating to condemnation by a

general law district created under Section 59, Article XVI, Texas

Constitution.

purposes of Section 21.021, Property Code. (V.A.C.S. Art.

8280-270, Sec. 10(a) (part).)

Sec.9009.202.EMINENT DOMAIN IN NUECES COUNTY. (a) Except

as provided by this section, the authority has the same power of

eminent domain in Nueces County as it has in Jim Wells County.

(b) The power is strictly limited to an acquisition

necessary to acquire:

(1) an easement or right-of-way necessary to build a

pipeline from the city to a point on the Nueces River from which

water will be obtained from Corpus Christi under a contract;

(2) fee simple title to any land reasonably necessary

for the erection of a pumping station or stations near the pipeline

to be built under Subdivision (1); or

(3) land or an interest in land located inside or

outside the authority on which to place reservoirs, works, wells,

plants, transmission lines, or other facilities necessary or

helpful in impounding, storing, or treating water or in

transporting water to the city or to others for municipal,

domestic, agricultural, commercial, or other purposes. (V.A.C.S.

Art. 8280-270, Sec. 10(b).)

Sec.9009.203.DETERMINATION OF INTEREST TO BE ACQUIRED.

The board shall determine the amount and character of interest in

land, easements, or other property to be acquired under this

subchapter. (V.A.C.S. Art. 8280-270, Sec. 10(a) (part).)

Sec.9009.204.SURVEYS. The authority has the same rights

and powers to make surveys and attend to other business of the

authority in Jim Wells and Nueces Counties as provided by Section

49.221, Water Code. (V.A.C.S. Art. 8280-270, Sec. 10(a) (part).)

Sec.9009.205.COST OF RELOCATING OR ALTERING PROPERTY.

(a) In this section, the term "sole expense" means the actual cost

of the relocation, raising, lowering, rerouting, or change in grade

or alteration of construction under Subsection (b) to provide a

comparable replacement without enhancing the facility, after

deducting the net salvage value derived from the old facility.

(b) If the authority's exercise of eminent domain,

relocation, or another power conferred by this chapter makes

necessary relocating, raising, rerouting, changing the grade of, or

altering the construction of any highway, railroad, electric

transmission line, telephone or telegraph property and facility, or

pipeline, the action shall be accomplished at the sole expense of

the authority. (V.A.C.S. Art. 8280-270, Sec. 10(c).)

[Sections 9009.206-9009.250 reserved for expansion]

SUBCHAPTER F. REGULATORY POWERS

Sec.9009.251.ADOPTION OF RULES. The board may adopt

reasonable rules to:

(1) secure, maintain, and preserve the sanitary

condition of water in and water that flows into any intermediate or

terminal reservoir owned by the authority;

(2) prevent waste of or the unauthorized use of water;

and

(3) regulate resident, hunting, fishing, boating,

camping, and any other recreational or business privilege along or

around any reservoir, body of land, or easement owned by the

authority. (V.A.C.S. Art. 8280-270, Sec. 22(a).)

Sec.9009.252.ENFORCEMENT OF RULES; PENALTY. (a) The

authority by rule may prescribe reasonable penalties for the

violation of an authority rule.

(b) A penalty may consist of:

(1) a fine not to exceed $200;

(2) confinement in jail for a term not to exceed 30

days; or

(3) both the fine and confinement.

any other penalty provided by Texas law. (V.A.C.S. Art. 8280-270,

Sec. 22(b) (part).)

Sec.9009.253.NOTICE OF RULE PROVIDING PENALTY. (a) If

the authority adopts a rule that provides a penalty, the authority

must publish a substantive statement of the rule and the penalty

once a week for two consecutive weeks in each county in which any

part of the reservoir to which the rule applies is situated.

(b) The statement must be as condensed as possible so that

the act prohibited by the rule can be easily understood.

(d) The notice must state that:

(1) a person who violates the rule is subject to a

penalty; and

(2) the rule is on file in the principal office of the

authority, where it may be read by any interested person.

(e) A rule takes effect five days after the date of second

publication of the statement under this section. (V.A.C.S. Art.

8280-270, Sec. 22(b) (part).)

Sec.9009.254.JUDICIAL NOTICE OF RULES. A court shall take

judicial notice of a rule adopted under this subchapter and

published as required by Section 9009.253, and the court shall

consider the rule to be similar in nature to a penal ordinance of a

municipality. (V.A.C.S. Art. 8280-270, Sec. 22(b) (part).)

Sec.9009.255.ENFORCEMENT BY PEACE OFFICERS. (a) A peace

officer may make an arrest when necessary to prevent or abate the

commission of an offense:

(1) in violation of an authority rule or a law of this

state that occurs or threatens to occur on any land, water, or

easement owned or controlled by the authority; or

(2) involving damage to any property owned or

controlled by the authority.

(b) A peace officer may make an arrest under Subsection

(a)(2) at any location. (V.A.C.S. Art. 8280-270, Sec. 22(c).)

[Sections 9009.256-9009.300 reserved for expansion]

SUBCHAPTER G. GENERAL FINANCIAL PROVISIONS

Sec.9009.301.DEPOSITORY. (a) Except as provided by

Subsection (h), the board shall designate one or more banks in the

authority to serve as depository for authority money.

(b) Authority money shall be deposited with a designated

depository bank, except that:

(1) money pledged to pay bonds may be deposited with

the trustee bank named in the trust agreement; and

(2) money shall be remitted to the bank of payment for

the payment of principal of and interest on bonds.

trustee 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) The board shall prescribe the terms of service for

depositories.

(e) Before designating a depository bank, the board shall

mail a written notice to each bank in the authority at least 10 days

before the date set for receiving bids that:

(1) states the time and place at which the board will

meet to designate a depository bank or banks; and

(2) invites each bank in the authority to submit an

application to be designated as a depository.

(f) At the time stated in the notice, the board shall:

(1) consider the application and the management and

condition of each bank that applies; and

(2) designate as a depository the bank or banks:

(A) that offer the most favorable terms for the

handling of the money; and

(B) that the board finds have proper management

and are in condition to handle the money.

(g) Membership on the board of an officer or director of a

bank does not disqualify the bank from being designated as a

depository.

(h) If the board does not receive any applications before

the time stated in the notice, the board may designate one or more

banks located inside or outside the authority on terms that the

board finds advantageous to the authority. (V.A.C.S. Art.

8280-270, Sec. 17.)

Sec.9009.302.TAX ASSESSOR AND COLLECTOR. The board shall

appoint a tax assessor and collector. (V.A.C.S. Art. 8280-270,

Sec. 21(b) (part).)

Sec.9009.303.PROJECTS EXEMPT FROM ASSESSMENT OR TAXATION.

The authority is not required to pay a tax or assessment on a

project or any part of a project. (V.A.C.S. Art. 8280-270, Sec. 20

(part).)

[Sections 9009.304-9009.350 reserved for expansion]

SUBCHAPTER H. BONDS

Sec.9009.351.AUTHORITY TO ISSUE BONDS. The authority may

issue bonds to carry out any power conferred by this chapter. The

bonds must be authorized by a board resolution. (V.A.C.S. Art.

8280-270, Secs. 12(a) (part), (b) (part), (c) (part).)

Sec.9009.352.FORM OF BONDS. An authority bond must be:

(1) issued in the authority's name;

(2) signed by the president or vice president; and

(3) attested by the secretary. (V.A.C.S. Art.

8280-270, Sec. 12(b) (part).)

Sec.9009.353.MATURITY. Authority bonds must mature not

later than 40 years after their date of issuance. (V.A.C.S. Art.

8280-270, Sec. 12(b) (part).)

Sec. 9009.354. ELECTION FOR BONDS PAYABLE FROM AD VALOREM

TAXES. (a) Bonds, other than refunding bonds, payable wholly or

partly from ad valorem taxes may not be issued unless authorized by

a majority of the authority voters voting at an election.

(b) The board may order an election under this section

without a petition. The order must specify:

(1) the time and places at which the election will be

held;

(2) the purpose for which the bonds will be issued;

(3) the maximum amount of the bonds;

(4) the maximum maturity of the bonds;

(5) the form of the ballot; and

(6) the presiding judge for each voting place.

substantial copy of the order calling the election in a newspaper of

general circulation in the authority. The notice must be published

on the same day in each of two consecutive weeks. The first

publication must be not later than the 14th day before the date of

the election. If a newspaper of general circulation is not

published in the authority, notice must be given by posting a copy

of the resolution in three public places in the authority.

(V.A.C.S. Art. 8280-270, Secs. 12(e) (part), 15(a) (part), (b)

(part).)

Sec.9009.355.BONDS PAYABLE FROM REVENUE. (a) In this

section, "net revenue" means the gross revenue and income of the

authority pledged under this section less the amount necessary to

pay the cost of:

(1) performing any contract, the revenue of which is

pledged under this section; and

(2) maintaining and operating the authority and its

property.

(b) Bonds issued under this subchapter may be secured under

board resolution by a pledge of:

(1) all or part of the net revenue of the authority

other than revenue from taxation;

(2) the net revenue of one or more contracts made

before or after the issuance of the bonds; or

(3) other revenue or income specified by resolution of

the board or in the trust indenture or other instrument securing the

bonds.

bonds on a parity with, or subordinate to, the bonds being issued,

subject to the conditions specified in the pledge.

(d) Bonds not payable wholly or partly from ad valorem taxes

may be issued without an election. (V.A.C.S. Art. 8280-270, Secs.

12(a) (part), (d), 15(a) (part).)

Sec.9009.356.BONDS PAYABLE FROM AD VALOREM TAXES. The

authority may issue bonds payable, as pledged by board resolution,

from:

(1) ad valorem taxes imposed on taxable property in

the authority; or

(2) ad valorem taxes and revenue of the authority.

(V.A.C.S. Art. 8280-270, Secs. 12(a) (part), (e) (part).)

Sec.9009.357.TAX AND RATE REQUIREMENTS. (a) If the

authority issues bonds payable wholly or partly from ad valorem

taxes, the board shall impose a tax sufficient to pay the bonds and

the interest on the bonds as the bonds and interest become due. The

board may adopt the rate of the tax after considering the money

received from the other pledged revenue available for payment of

principal and interest to the extent and in the manner permitted by

the resolution authorizing the issuance of the bonds.

(b) If the authority issues bonds payable wholly or partly

from revenue, the board shall set and revise the rates of

compensation for water sold and services rendered by the authority.

compensation must be sufficient to:

(1) pay the expense of operating and maintaining the

facilities of the authority;

(2) pay the bonds as they mature and the interest as it

accrues; and

(3) maintain the reserve and other funds as required

in the resolution authorizing the issuance of the bonds or in the

trust indenture or other instrument securing the bonds.

(d) For bonds payable partly from revenue, the rates of

compensation must be sufficient to assure compliance with the

resolution authorizing the issuance of the bonds and any trust

indenture or other instrument securing the bonds. (V.A.C.S. Art.

8280-270, Secs. 12(e) (part), (f).)

Sec.9009.358.ADDITIONAL SECURITY. (a) Bonds, including

refunding bonds, authorized by the law that are not payable wholly

from ad valorem taxes may be additionally secured, at the

discretion of the board, by a deed of trust or mortgage lien on

physical property of the authority, franchises, easements, water

rights and appropriation permits, leases, contracts, and all rights

appurtenant to the property, vesting in the trustee power to:

(1) sell the property for the payment of the debt;

(2) operate the property; and

(3) take other action to further secure the bonds.

(b) A purchaser under a sale under the deed of trust lien, if

one is given:

(1) is the absolute owner of property, facilities, and

rights purchased; and

(2) is entitled to maintain and operate the property,

facilities, and rights. (V.A.C.S. Art. 8280-270, Sec. 14 (part).)

Sec.9009.359.TRUST INDENTURE. (a) A bond authorized by

the law, including a refunding bond, that is not payable wholly from

ad valorem taxes may be additionally secured by a trust indenture.

The trustee may be a bank with trust powers located inside or

outside this state.

(b) A trust indenture, regardless of the existence of the

deed of trust or mortgage lien on the property, may:

(1) provide for the security of the bonds and the

preservation of the trust estate in the manner prescribed by the

board;

(2) provide for amendment or modification of the trust

indenture;

(3) provide for the issuance of bonds to replace lost

or mutilated bonds;

(4) condition the right to spend authority money or

sell authority property on the approval of a licensed engineer

selected as provided by the trust indenture; and

(5) provide for the investment of authority money.

(V.A.C.S. Art. 8280-270, Sec. 14 (part).)

Sec.9009.360.INTERIM BONDS OR NOTES. Before issuing

definitive bonds, the board may issue interim bonds or notes

exchangeable for definitive bonds. (V.A.C.S. Art. 8280-270, Sec.

12(a) (part).)

Sec.9009.361.USE OF BOND PROCEEDS. (a) The authority may

set aside an amount of proceeds from the sale of bonds issued under

this subchapter for payments into the interest and sinking fund and

the reserve fund. The resolution authorizing the bonds or a trust

indenture or other instrument securing the bonds may provide for

setting aside amounts under this subsection.

(b) The authority may use proceeds from the sale of the

bonds to pay any expense necessarily incurred in accomplishing the

purpose of the authority, including any expense of issuing and

selling the bonds.

bonds in direct obligations of or obligations unconditionally

guaranteed by the United States that mature in the manner

authorized by the resolution authorizing the bonds or by the trust

indenture or other instrument securing the bonds. (V.A.C.S. Art.

8280-270, Sec. 12(g).)

Sec.9009.362.APPOINTMENT OF RECEIVER. (a) On default or

threatened default in the payment of principal of or interest on

bonds issued under this subchapter that are payable wholly or

partly from revenue, a court may, on petition of the holders of

outstanding bonds, appoint a receiver for the authority.

(b) The receiver may collect and receive all authority

income except taxes, employ and discharge authority agents and

employees, take charge of money on hand, except money received from

taxes, unless commingled, and manage the proprietary affairs of the

authority without consent or hindrance by the board.

the sale of water or to renew those contracts with the approval of

the court that appointed the receiver.

(d) The court may vest the receiver with any other power or

duty the court finds necessary to protect the bondholders.

(V.A.C.S. Art. 8280-270, Sec. 12(h) (part).)

Sec.9009.363.REFUNDING BONDS. (a) The authority may

issue refunding bonds to refund outstanding bonds issued under this

subchapter and interest on those bonds.

(b) Refunding bonds may:

(1) be issued to refund bonds of more than one series;

(2) combine the pledges for the outstanding bonds for

the security of the refunding bonds; or

(3) be secured by a pledge of other or additional

revenue or mortgage liens.

issuance of other bonds, their security, and the remedies of the

holders apply to refunding bonds.

(d) The comptroller shall register the refunding bonds on

surrender and cancellation of the bonds to be refunded.

(e) Instead of issuing bonds to be registered on the

surrender and cancellation of the bonds to be refunded, the

authority, in the resolution authorizing the issuance of the

refunding bonds, may provide for the sale of the refunding bonds and

the deposit of the proceeds in a bank at which the bonds to be

refunded are payable. In that case, the refunding bonds may be

issued in an amount sufficient to pay the principal of and interest

on the bonds to be refunded to their option date or maturity date,

and the comptroller shall register the refunding bonds without the

surrender and cancellation of the bonds to be refunded. (V.A.C.S.

Art. 8280-270, Sec. 13.)

Sec.9009.364.LIMITATION ON RIGHTS OF HOLDERS. The

resolution authorizing the bonds or the trust indenture or other

instrument securing the bonds may limit or qualify the rights of the

holders of less than all of the outstanding bonds payable from the

same source to institute or prosecute litigation affecting the

authority's property or income. (V.A.C.S. Art. 8280-270, Sec.

12(h) (part).)

Sec.9009.365.BONDS EXEMPT FROM TAXATION. A bond issued

under this subchapter, the transfer of the bond, and income from the

bond, including profits made on the sale of the bond, are exempt

from taxation in this state. (V.A.C.S. Art. 8280-270, Sec. 20

(part).)

CHAPTER 9011. BELL COUNTY WATER CONTROL AND

IMPROVEMENT DISTRICT NO. 3

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 9011.001. DEFINITIONS

Sec. 9011.002. NATURE OF DISTRICT

Sec. 9011.003. FINDING OF BENEFIT AND PUBLIC PURPOSE

[Sections 9011.004-9011.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS

TO DISTRICT TERRITORY

Sec. 9011.051. DISTRICT TERRITORY

Sec. 9011.052. ANNEXATION OF TERRITORY BY LANDOWNER

PETITION

Sec. 9011.053. PETITION REQUIREMENTS

Sec. 9011.054. HEARING ON PETITION

Sec. 9011.055. NOTICE OF HEARING

Sec. 9011.056. BOARD ANNEXATION OF TERRITORY

Sec. 9011.057. RATIFICATION ELECTION; LIMITATION ON

ASSUMPTION OF DEBT OR TAXES

Sec. 9011.058. ANNEXED TERRITORY'S RESPONSIBILITY FOR

DISTRICT DEBT OR TAXES

Sec. 9011.059. ANNEXATION OF TERRITORY IN A

MUNICIPALITY

[Sections 9011.060-9011.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec. 9011.101. COMPOSITION OF BOARD

Sec. 9011.102. QUALIFICATIONS FOR OFFICE

Sec. 9011.103. DIRECTORS' ELECTION

Sec. 9011.104. BALLOT PETITION

Sec. 9011.105. APPOINTMENT OF SECRETARY AND TREASURER

Sec. 9011.106. VOTE BY BOARD PRESIDENT

Sec. 9011.107. DIRECTOR'S AND TREASURER'S BOND

Sec. 9011.108. COMPENSATION

[Sections 9011.109-9011.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES

Sec. 9011.151. WATER CONTROL AND IMPROVEMENT DISTRICT

POWERS

Sec. 9011.152. WATER SUPPLY AND DISTRIBUTION;

ACQUISITION OF LAND RIGHTS

Sec. 9011.153. EMINENT DOMAIN

Sec. 9011.154. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 9011.155. AWARD OF CERTAIN CONSTRUCTION OR

PURCHASE CONTRACTS

Sec. 9011.156. CONTRACTS REGARDING WATER OR SEWER

FACILITIES

Sec. 9011.157. CONTRACTS AND COOPERATION WITH

MUNICIPALITY INSIDE DISTRICT

Sec. 9011.158. PROHIBITED AGREEMENTS

[Sections 9011.159-9011.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 9011.201. DEPOSITORY

Sec. 9011.202. IMPOSITION OF AD VALOREM TAXES

Sec. 9011.203. TAX ASSESSOR AND COLLECTOR

Sec. 9011.204. PROJECTS EXEMPT FROM ASSESSMENT OR

TAXATION

[Sections 9011.205-9011.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec. 9011.251. AUTHORITY TO ISSUE BONDS

Sec. 9011.252. FORM OF BONDS

Sec. 9011.253. MATURITY

Sec. 9011.254. ELECTION FOR BONDS PAYABLE FROM AD

VALOREM TAXES

Sec. 9011.255. BONDS PAYABLE FROM REVENUE

Sec. 9011.256. TAX AND RATE REQUIREMENTS

Sec. 9011.257. ADDITIONAL SECURITY

Sec. 9011.258. TRUST INDENTURE OR DEED OF TRUST

Sec. 9011.259. USE OF BOND PROCEEDS

Sec. 9011.260. APPOINTMENT OF RECEIVER

Sec. 9011.261. REFUNDING BONDS

Sec. 9011.262. BONDS EXEMPT FROM TAXATION

CHAPTER 9011. BELL COUNTY WATER CONTROL AND

IMPROVEMENT DISTRICT NO. 3

SUBCHAPTER A. GENERAL PROVISIONS

Sec.9011.001.DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "Director" means a member of the board.

(3) "District" means the Bell County Water Control and

Improvement District No. 3. (New; V.A.C.S. Art. 8280-182, Sec. 1

(part).)

Sec.9011.002.NATURE OF DISTRICT. The district is a water

control and improvement district created under Section 59, Article

XVI, Texas Constitution. (V.A.C.S. Art. 8280-182, Sec. 1 (part).)

Sec.9011.003.FINDING OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land included in the district will benefit.

chapter is for the benefit of the people of this state and the

improvement of their property and industries. The district, in

carrying out the purposes of this chapter, will be performing an

essential public function under the constitution. (V.A.C.S. Art.

8280-182, Secs. 22 (part), 26 (part).)

[Sections 9011.004-9011.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS

TO DISTRICT TERRITORY

Sec.9011.051.DISTRICT TERRITORY. The district is

composed of the territory described by Section 2, Chapter 506, Acts

of the 54th Legislature, Regular Session, 1955 (Article 8280-182,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) this subchapter or its predecessor statutes; or

(2) other law. (New.)

Sec. 9011.052. ANNEXATION OF TERRITORY BY LANDOWNER

PETITION. As provided by this subchapter, the district may annex

territory by petition of the owners of land or a portion of the land

requested to be annexed. (V.A.C.S. Art. 8280-182, Sec. 5 (part).)

Sec.9011.053.PETITION REQUIREMENTS. (a) A petition to

the board to annex land must:

(1) request that the district annex the land;

(2) describe by metes and bounds the land proposed to

be annexed;

(3) affirmatively state that:

(A) the land annexed is subject to its

proportionate part of the outstanding debt;

(B) the land will be subject to taxation for

payment of that debt;

be a covenant running with the land; and

(D) the petition will be filed in the deed

records of Bell County; and

(4) be signed:

(A) by a majority of the owners of the land to be

annexed if the number of owners is 30 or fewer; or

(B) by 30 owners of the land to be annexed if the

number of owners is more than 30.

(b) The petition must be filed with the board secretary.

(V.A.C.S. Art. 8280-182, Sec. 5 (part).)

Sec.9011.054.HEARING ON PETITION. The board shall order a

hearing on the petition to be held at a time and on a date stated in

the order and not before the 30th day after the date of the order.

(V.A.C.S. Art. 8280-182, Sec. 5 (part).)

Sec.9011.055.NOTICE OF HEARING. (a) The board secretary

shall:

(1) issue notice of the hearing that includes:

(A) the time and place of the hearing; and

(B) a description of the territory proposed to be

annexed; and

(2) post copies of the notice for 15 days before the

date of the hearing in:

(A) three public places in the district; and

(B) one public place in the territory proposed to

be annexed.

(b) The notice must be published in a newspaper of general

circulation in the county one time at least 15 days before the date

of the hearing. (V.A.C.S. Art. 8280-182, Sec. 5 (part).)

Sec.9011.056.BOARD ANNEXATION OF TERRITORY. (a) The

board by resolution may annex the proposed territory to the

district if the board finds as a result of the hearing that the

annexation:

(1) is to the advantage of the district; and

(2) will not injure other land of the district.

(b) If on hearing the petition a change to the proposed

annexation is found necessary or desirable, the annexation may

include less than all of the territory described in the petition.

recorded in the board minutes. (V.A.C.S. Art. 8280-182, Sec. 5

(part).)

Sec. 9011.057. RATIFICATION ELECTION; LIMITATION ON

ASSUMPTION OF DEBT OR TAXES. (a) The annexation of territory under

this subchapter is not final until ratified by:

(1) a majority of the voters voting at a separate

election held in the district; and

(2) a majority of the voters voting at a separate

election held in the territory to be annexed.

(b) If the district has outstanding debts or taxes, the

proposition for the territory's assumption of its proportion of the

debts or taxes on annexation shall be submitted at the same time and

at the same election.

and the manner and time of giving notice of the election under this

section are governed by Chapters 49 and 51, Water Code. (V.A.C.S.

Art. 8280-182, Sec. 5 (part).)

Sec. 9011.058. ANNEXED TERRITORY'S RESPONSIBILITY FOR

DISTRICT DEBT OR TAXES. The annexed territory shall bear the

territory's proportionate share of all debt or taxes owed,

contracted, or authorized by the district. (V.A.C.S.

Art. 8280-182, Sec. 5 (part).)

Sec.9011.059.ANNEXATION OF TERRITORY IN A MUNICIPALITY.

The district may annex territory inside a municipality's

boundaries. (V.A.C.S. Art. 8280-182, Sec. 25.)

[Sections 9011.060-9011.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec.9011.101.COMPOSITION OF BOARD. The board consists of

five elected directors. (V.A.C.S. Art. 8280-182, Secs. 3(a)

(part), (b) (part).)

Sec.9011.102.QUALIFICATIONS FOR OFFICE. (a) A person may

not be appointed a director unless the person resides in Bell County

and owns taxable property in the district.

(b) A person may not serve as a director if the person is:

(1) a member of a governing body of a county or

municipality; or

(2) an employee of a county or municipality.

(V.A.C.S. Art. 8280-182, Sec. 3(a) (part).)

Sec.9011.103.DIRECTORS'ELECTION. (a) Except as

provided by this subchapter, a directors' election is held in

accordance with Chapters 49 and 51, Water Code, and the Election

Code.

(b) The election order must state the time, place, and

purpose of the election.

newspaper of general circulation in the district's territory one

time at least 30 days before the date of the election. (V.A.C.S.

Art. 8280-182, Sec. 3(c) (part).)

Sec.9011.104.BALLOT PETITION. (a) A person who wants to

have the person's name printed on the ballot as a candidate for

director must present to the board secretary a petition requesting

that action.

(b) The petition must be:

(1) signed by at least 10 registered voters; and

(2) presented to the secretary not later than the 11th

day before the date of the election. (V.A.C.S. Art. 8280-182, Sec.

3(d).)

Sec.9011.105.APPOINTMENT OF SECRETARY AND TREASURER. The

board shall appoint a secretary and a treasurer who are not required

to be directors. The board may combine the offices of secretary and

treasurer. (V.A.C.S. Art. 8280-182, Sec. 4 (part).)

Sec.9011.106.VOTE BY BOARD PRESIDENT. The president has

the same right to vote as any other director. (V.A.C.S.

Art. 8280-182, Sec. 4 (part).)

Sec.9011.107.DIRECTOR'S AND TREASURER'S BOND. (a) A

director shall give bond in the amount of $5,000 for the faithful

performance of the director's duties.

(b) The treasurer shall give bond in the amount required by

the board. The treasurer's bond shall be conditioned on the

treasurer's faithfully accounting for all money that comes into the

treasurer's custody as treasurer. (V.A.C.S. Art. 8280-182, Secs.

3(a) (part), 4 (part).)

Sec.9011.108.COMPENSATION. Unless the board by

resolution increases the fee to an amount authorized by Section

49.060, Water Code, each director is entitled to receive a fee of

not more than $25 a day for each day the director spends performing

duties as a director. The fees for each director for any one month

may not exceed $100. (V.A.C.S. Art. 8280-182, Sec. 3(f) (part).)

[Sections 9011.109-9011.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES

Sec. 9011.151. WATER CONTROL AND IMPROVEMENT DISTRICT

POWERS. The district has all powers conferred by the general laws

of this state relating to water control and improvement districts,

including Chapters 49 and 51, Water Code, except powers that:

(1) conflict with this chapter; or

(2) relate to the annexation and exclusion of

territory. (V.A.C.S. Art. 8280-182, Sec. 21 (part).)

Sec. 9011.152. WATER SUPPLY AND DISTRIBUTION; ACQUISITION

OF LAND RIGHTS. (a) The district may acquire or develop water,

including groundwater, and sources of water.

(b) The district may acquire or construct all works, plants,

or other facilities or equipment necessary or useful to:

(1) store or process the water; and

(2) transport and distribute the water for municipal,

domestic, farm, or industrial purposes.

organized district, municipality, person, public agency, or state

or the federal government for the district to:

(1) acquire water, groundwater, or sources of water;

(2) store, process, transport, and distribute the

water; and

(3) perform any other act necessary to carry out the

powers of the district or accomplish a purpose of this chapter.

(d) An existing municipality or district may contract with

the district for the purposes stated in this section.

(e) The district may acquire all the land, easements, and

rights-of-way necessary to carry out the powers of the district or

the purposes of this chapter.

(f) The district may exercise the powers under this section

inside or outside the district's boundaries but only in Bell

County. (V.A.C.S. Art. 8280-182, Sec. 7.)

Sec.9011.153.EMINENT DOMAIN. (a) In Bell County only,

the district may exercise the power of eminent domain to acquire

land, easements, or rights-of-way to carry out any power conferred

by this chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code.

interest in land or easements to be acquired.

(d) In exercising the power of eminent domain against a

person that has the power of eminent domain or a receiver or trustee

for that person, the district may acquire an easement only but may

not acquire the fee title. (V.A.C.S. Art. 8280-182, Sec. 8 (part).)

Sec.9011.154.COST OF RELOCATING OR ALTERING PROPERTY. If

the district's exercise of the power of eminent domain, the power of

relocation, or any other power granted under this chapter makes

necessary the relocating, raising, rerouting, changing the grade,

or altering the construction of any highway, railroad, electric

transmission line, communication property and facility, or

pipeline, the action shall be accomplished at the sole expense of

the district. (V.A.C.S. Art. 8280-182, Sec. 8 (part).)

Sec. 9011.155. AWARD OF CERTAIN CONSTRUCTION OR PURCHASE

CONTRACTS. (a) This section applies only to a construction

contract or contract for the purchase of materials, equipment, or

supplies requiring an expenditure of more than $2,000.

(b) This section does not apply to the purchase of a system

or part of a system in existence at the time of the purchase.

best bidder only after notice of the contract to bidders is

published once at least 10 days before the date the contract is

awarded. The notice must be printed in a newspaper of general

circulation in the district that is designated by the board.

(d) The notice is sufficient if it states:

(1) the time and place for opening the bids;

(2) the general nature of the work to be done or the

material, equipment, or supplies to be purchased; and

(3) the place where and the terms on which copies of

the plans and specifications may be obtained. (V.A.C.S. Art.

8280-182, Sec. 9.)

Sec. 9011.156. CONTRACTS REGARDING WATER OR SEWER

FACILITIES. (a) The district may contract with a municipality,

an organized district, or another person to supply water to that

person.

(b) The district may contract with a municipality, an

organized district, or another person to rent, lease, or operate

the water production, water supply and water supply facilities, or

sanitary and storm sewer facilities of that person.

terms including the consideration and the duration of the contract.

(d) The contract may provide that it will continue in effect

until bonds specified in it and refunding bonds issued in lieu of

those bonds are paid.

(e) A power granted by this section does not apply outside

Bell County. (V.A.C.S. Art. 8280-182, Sec. 17.)

Sec. 9011.157. CONTRACTS AND COOPERATION WITH MUNICIPALITY

INSIDE DISTRICT. (a) The district territory described by the law

codified by this chapter intentionally overlaps the territory of an

existing municipality. The board may contract or cooperate with

the municipality on matters that come within the purposes for which

the district is organized or in aid of those purposes.

(b) The municipality may contract with the district for the

purposes stated in this section or in aid of those purposes.

(V.A.C.S. Art. 8280-182, Sec. 24.)

Sec.9011.158.PROHIBITED AGREEMENTS. (a) The district

may not enter into a contract or agreement that requires the

district or the people in the district to lose ownership of or

control over the use of any district property, real, personal, or

mixed, after payment of all outstanding legal obligations of the

district, including bonds and refunding bonds.

(b) A contract or agreement prohibited by this section, if

entered into by the board, is void. (V.A.C.S. Art. 8280-182, Sec.

7-A (part).)

[Sections 9011.159-9011.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec.9011.201.DEPOSITORY. (a) The board shall designate

one or more banks to serve as depository for the district's money.

(b) District money shall be deposited with a designated

depository bank, except that:

(1) money pledged to pay bonds may be deposited with

the trustee bank named in the trust indenture; and

(2) money shall be remitted to the bank of payment for

the payment of principal of and interest on bonds.

trustee 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 board of an officer or director of a

bank does not disqualify the bank from being designated as a

depository. (V.A.C.S. Art. 8280-182, Sec. 18.)

Sec.9011.202.IMPOSITION OF AD VALOREM TAXES. A tax

imposed by the district must be an ad valorem tax, including a tax

to:

(1) pay off bonds for preliminary surveys and

investigation or to provide funds for conducting preliminary

surveys, if no construction bonds are to be issued; and

(2) pay the principal and interest and other costs

that may be paid from taxes. (V.A.C.S. Art. 8280-182, Secs. 11, 12

(part).)

Sec.9011.203.TAX ASSESSOR AND COLLECTOR. (a) The board

shall appoint a tax assessor and collector.

(b) The board may appoint deputies to assist the tax

assessor and collector by an order stating the manner and period of

assistance. (V.A.C.S. Art. 8280-182, Sec. 12 (part).)

Sec.9011.204.PROJECTS EXEMPT FROM ASSESSMENT OR TAXATION.

The district is not required to pay a tax or assessment on a project

or any part of a project. (V.A.C.S. Art. 8280-182, Sec. 22 (part).)

[Sections 9011.205-9011.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec.9011.251.AUTHORITY TO ISSUE BONDS. (a) The

district may issue bonds to carry out any purpose of this chapter

and to:

(1) provide a water system, as authorized by this

chapter, for municipal, domestic, and industrial purposes;

(2) pay fees of an attorney, engineer, or fiscal

agent;

(3) pay the cost of printing and issuing bonds; and

(4) exercise any other power conferred by this

chapter.

(b) The bonds must be authorized by a board resolution.

of:

(1) revenue;

(2) ad valorem taxes imposed on all taxable property

in the district; or

(3) both revenue and ad valorem taxes.

(d) The pledge must be in a resolution or trust indenture

adopted or authorized by the board.

(e) A bond issuance payable wholly or partly from ad valorem

taxes is subject to the conditions prescribed by this subchapter.

(V.A.C.S. Art. 8280-182, Secs. 10(a), (b) (part), (c) (part), (f)

(part).)

Sec.9011.252.FORM OF BONDS. A district bond must be:

(1) issued in the district's name;

(2) signed by the president or vice president; and

(3) attested by the secretary. (V.A.C.S. Art.

8280-182, Sec. 10(b) (part).)

Sec.9011.253.MATURITY. District bonds must mature not

later than 40 years after their date of issuance. (V.A.C.S. Art.

8280-182, Sec. 10(b) (part).)

Sec. 9011.254. ELECTION FOR BONDS PAYABLE FROM AD VALOREM

TAXES. (a) Bonds, other than refunding bonds, payable wholly or

partly from ad valorem taxes may not be issued unless authorized by

a majority of the district voters voting at an election.

(b) The board may order an election under this section

without a petition. The order must specify:

(1) the time and place at which the election will be

held;

(2) the purpose for which the bonds will be issued;

(3) the maximum amount of the bonds;

(4) the maximum maturity of the bonds;

(5) the form of the ballot; and

(6) the presiding judge for each voting place.

(1) at least once in a newspaper published or having

general circulation in the district; and

(2) at least 14 days before the date of the election.

(V.A.C.S. Art. 8280-182, Sec. 10(g) (part).)

Sec.9011.255.BONDS PAYABLE FROM REVENUE. (a) In this

section, "net revenue" means the gross revenue of the district less

the amount necessary to pay the cost of maintaining and operating

the district and its property.

(b) Bonds issued under this subchapter may be secured under

board resolution by a pledge of:

(1) all or part of the net revenue of the district;

(2) the net revenue of one or more contracts made

before or after the issuance of the bonds; or

(3) other revenue specified by resolution of the

board.

bonds on a parity with, or subordinate to, the bond being issued,

subject to the conditions specified in the pledge. (V.A.C.S.

Art. 8280-182, Sec. 10(d).)

Sec.9011.256.TAX AND RATE REQUIREMENTS. (a) If the

district issues bonds payable wholly or partly from ad valorem

taxes, the board shall impose a tax sufficient to pay the bonds and

the interest on the bonds as the bonds and interest become due. The

board may adopt the rate of the tax after considering the money

received from pledged revenue available for payment of principal

and interest to the extent and in the manner permitted by the

resolution authorizing the issuance of the bonds.

(b) If the district issues bonds payable wholly or partly

from revenue, the board shall set and revise the rates of

compensation for the use of the systems and services rendered by the

district.

compensation must be sufficient to:

(1) pay the expense of operating and maintaining the

facilities of the district;

(2) pay the bonds as they mature and the interest as it

accrues; and

(3) maintain the reserve and other funds as provided

by the resolution authorizing the issuance of the bonds or the trust

indenture.

(d) For bonds payable partly from revenue, the rates of

compensation must be sufficient to assure compliance with the

resolution authorizing the issuance of the bonds or with the trust

indenture. (V.A.C.S. Art. 8280-182, Secs. 10(e), (f) (part).)

Sec.9011.257.ADDITIONAL SECURITY. (a) Bonds, including

refunding bonds, authorized by this subchapter may be additionally

secured by a deed of trust lien on physical property of the

district, franchises, easements, water rights and appropriation

permits, leases, contracts, and all rights appurtenant to the

property, vesting in the trustee the power to:

(1) sell the property; and

(2) take other action to further secure the bonds.

(b) A purchaser under a sale under the deed of trust:

(1) is the owner of the property and facilities

purchased; and

(2) is entitled to maintain and operate the property

and facilities. (V.A.C.S. Art. 8280-182, Sec. 14.)

Sec.9011.258.TRUST INDENTURE OR DEED OF TRUST. (a) A

deed of trust lien conferred on the physical property may be

combined with the trust indenture authorized by this chapter.

(b) The trust indenture or deed of trust may provide for:

(1) the security of the bonds and the operation and

preservation of the trust estate in the manner prescribed by the

board;

(2) amendment or modification of the trust indenture

or deed of trust; and

(3) the issuance of bonds to replace lost or mutilated

bonds. (V.A.C.S. Art. 8280-182, Sec. 15.)

Sec.9011.259.USE OF BOND PROCEEDS. (a) The district may

set aside an amount of proceeds from the sale of bonds issued under

this subchapter for the payment of:

(1) interest to accrue during two years after the

purchase of a system or expected to accrue during construction and

two years after construction; and

(2) a reserve interest and sinking fund.

(b) The resolution authorizing the bonds or a trust

indenture may provide for setting aside amounts under Subsection

(a).

to pay an expense incurred in accomplishing the purposes of the

district, including:

(1) the fees of attorneys, engineers, or fiscal

agents; and

(2) the cost of printing and issuing the bonds.

(V.A.C.S. Art. 8280-182, Sec. 10(h).)

Sec.9011.260.APPOINTMENT OF RECEIVER. (a) On default or

threatened default in the payment of the principal of or interest on

bonds issued under this subchapter and payable wholly or partly

from revenue, a court may, on petition of the holders of 25 percent

of the outstanding bonds, appoint a receiver.

(b) The receiver may collect and receive all district

income, employ and discharge district agents and employees, take

charge of money on hand, and manage the affairs of the district

without consent or hindrance by the board.

duty the court finds necessary to protect the bondholders.

(V.A.C.S. Art. 8280-182, Sec. 10(i).)

Sec.9011.261.REFUNDING BONDS. (a) The district may issue

refunding bonds without an election to refund outstanding bonds

issued under this subchapter and interest on those bonds.

(b) Refunding bonds may:

(1) be issued to refund bonds of more than one series;

(2) combine the pledges for the outstanding bonds for

the security of the refunding bonds; or

(3) be secured by a pledge of other or additional

revenue.

issuance of other bonds and the remedies of the holders apply to

refunding bonds.

(d) The comptroller shall register the refunding bonds on

surrender and cancellation of the bonds to be refunded.

(e) Instead of issuing bonds to be registered on the

surrender and cancellation of the bonds to be refunded, the

district, in the resolution authorizing the issuance of the

refunding bonds, may provide for the sale of the refunding bonds and

the deposit of the proceeds in a bank at which the bonds to be

refunded are payable. In that case, the refunding bonds may be

issued in an amount sufficient to pay the interest on the bonds to

be refunded to their option date or maturity date, and the

comptroller shall register the refunding bonds without the

surrender and cancellation of the bonds to be refunded. (V.A.C.S.

Art. 8280-182, Sec. 13.)

Sec.9011.262.BONDS EXEMPT FROM TAXATION. A bond issued

under this subchapter, the transfer of the bond, and income from the

bond, including profits made on the sale of the bond, are exempt

from taxation in this state. (V.A.C.S. Art. 8280-182, Sec. 22

(part).)

CHAPTER 9012. CROSBY MUNICIPAL UTILITY DISTRICT OF HARRIS COUNTY,

TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 9012.001. DEFINITIONS

Sec. 9012.002. NATURE OF DISTRICT

Sec. 9012.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

[Sections 9012.004-9012.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND EXCLUSIONS FROM DISTRICT

TERRITORY

Sec. 9012.051. DISTRICT TERRITORY

Sec. 9012.052. EXCLUDING TERRITORY FROM THE DISTRICT

Sec. 9012.053. HEARINGS FOR EXCLUSION OF TERRITORY

[Sections 9012.054-9012.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec. 9012.101. COMPOSITION OF BOARD

[Sections 9012.102-9012.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES

Sec. 9012.151. WATER CONTROL AND IMPROVEMENT DISTRICT

POWERS

Sec. 9012.152. ACQUISITION OF IMPROVEMENTS

Sec. 9012.153. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 9012.154. LIMIT ON EMINENT DOMAIN POWER

Sec. 9012.155. DURATION OF CONTRACT FOR WATER PURCHASE

OR SALE

[Sections 9012.156-9012.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 9012.201. TAX METHOD

CHAPTER 9012. CROSBY MUNICIPAL UTILITY DISTRICT OF HARRIS COUNTY,

TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec.9012.001.DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the

district.

(2) "District" means the Crosby Municipal Utility

District of Harris County, Texas. (V.A.C.S. Art. 8280-315, Sec. 1

(part); New.)

Sec.9012.002.NATURE OF DISTRICT. The district is:

(1) a conservation and reclamation district under

Section 59, Article XVI, Texas Constitution;

(2) a water control and improvement district; and

(3) a municipal corporation. (V.A.C.S. Art. 8280-315,

Secs. 1 (part), 7 (part), 8 (part).)

Sec.9012.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property in the district will benefit

from the creation of the district and the improvements the district

will purchase, construct, or otherwise acquire.

the purposes of Section 59, Article XVI, Texas Constitution.

(V.A.C.S. Art. 8280-315, Secs. 7 (part), 8 (part).)

[Sections 9012.004-9012.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND EXCLUSIONS FROM DISTRICT

TERRITORY

Sec.9012.051.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 1, Chapter 554, Acts

of the 59th Legislature, Regular Session, 1965 (Article 8280-315,

Vernon's Texas Civil Statutes), as that territory may have been

modified under:

(1) Subchapter O, Chapter 51, Water Code;

(2) Subchapter J, Chapter 49, Water Code;

(3) former Section 5, Chapter 554, Acts of the 59th

Legislature, Regular Session, 1965 (Article 8280-315, Vernon's

Texas Civil Statutes); or

(4) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, or

validity;

(2) the district's right to issue bonds or to pay the

principal of and interest on the bonds;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its

governing body. (V.A.C.S. Art. 8280-315, Sec. 2; New.)

Sec.9012.052.EXCLUDING TERRITORY FROM THE DISTRICT. (a)

The board may exclude territory from the district before voting any

bonds or taxes in and for the district.

(b) The board shall give notice of its intention to hold a

hearing on the question of excluding territory from the district.

The notice must:

(1) specify the date and place of the hearing; and

(2) describe by metes and bounds the territory

proposed to be excluded.

newspaper of general circulation in Harris County. The first

publication of the notice must be at least 10 days before the date

set for the hearing.

(d) The board by order may exclude the territory from the

district if at the hearing the board finds that the proposed

exclusion of territory is advantageous to the district and to the

territory to be excluded. In the order, the board shall also

redefine the boundaries of the district to embrace all land not

excluded. The territory is no longer a part of the district.

(e) The order authorizing the exclusion must be recorded in

the board minutes. (V.A.C.S. Art. 8280-315, Sec. 5 (part).)

Sec.9012.053.HEARINGS FOR EXCLUSION OF TERRITORY. (a)

The board is not required to call or hold a hearing on the exclusion

of land or other property from the district.

(b) This section may not be construed to prevent the board

on its own motion from calling and holding an exclusion hearing

under general law. (V.A.C.S. Art. 8280-315, Sec. 7 (part).)

[Sections 9012.054-9012.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec.9012.101.COMPOSITION OF BOARD. The board is composed

of five directors. (V.A.C.S. Art. 8280-315, Sec. 4 (part).)

[Sections 9012.102-9012.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES

Sec. 9012.151. WATER CONTROL AND IMPROVEMENT DISTRICT

POWERS. The district has the rights, powers, privileges, and

duties provided by general law applicable to a water control and

improvement district created under Section 59, Article XVI, Texas

Constitution, including Chapters 49 and 51, Water Code. (V.A.C.S.

Art. 8280-315, Sec. 3 (part).)

Sec.9012.152.ACQUISITION OF IMPROVEMENTS. The district

may make, construct, or otherwise acquire improvements inside or

outside the district that are necessary or convenient to carry out a

power granted to the district under this chapter or a general law

described by Section 9012.151. (V.A.C.S. Art. 8280-315, Sec. 3

(part).)

Sec.9012.153.COST OF RELOCATING OR ALTERING PROPERTY.

(a) In this section, "sole expense" means the actual cost of

relocating, raising, lowering, rerouting, or changing the grade of,

or altering the construction of a facility described by Subsection

(b) in providing comparable replacement without enhancement of the

facility, after deducting from that cost the net salvage value

derived from the old facility.

(b) If the district's exercise of the power of eminent

domain, the power of relocation, or any other power conferred by

this chapter makes necessary the relocation, raising, rerouting,

changing the grade, or alteration of the construction of a highway,

a railroad, an electric transmission line, or a telephone or

telegraph property or facility, or a pipeline, the necessary action

shall be accomplished at the sole expense of the district.

(V.A.C.S. Art. 8280-315, Sec. 3 (part).)

Sec.9012.154.LIMIT ON EMINENT DOMAIN POWER. The district

may not exercise the power of eminent domain outside the district.

(V.A.C.S. Art. 8280-315, Sec. 3 (part).)

Sec. 9012.155. DURATION OF CONTRACT FOR WATER PURCHASE OR

SALE. A district contract for the purchase or sale of water may not

exceed 40 years. (V.A.C.S. Art. 8280-315, Sec. 3 (part).)

[Sections 9012.156-9012.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec.9012.201.TAX METHOD. (a) The district shall use the

ad valorem basis or plan of taxation.

(b) The board is not required to hold a hearing on the

adoption of a plan of taxation. (V.A.C.S. Art. 8280-315, Sec. 7

(part).)

CHAPTER 9013. CNP UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 9013.001. DEFINITIONS

Sec. 9013.002. NATURE OF DISTRICT

Sec. 9013.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

[Sections 9013.004-9013.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS

TO DISTRICT TERRITORY

Sec. 9013.051. DISTRICT TERRITORY

Sec. 9013.052. EXPANSION OF DISTRICT

[Sections 9013.053-9013.100 reserved for expansion]

SUBCHAPTER C. DISTRICT ADMINISTRATION

Sec. 9013.101. COMPOSITION OF BOARD

Sec. 9013.102. DIRECTOR'S BOND

Sec. 9013.103. VACANCY

Sec. 9013.104. DISTRICT OFFICE

Sec. 9013.105. ABSENCE OF PRESIDENT FROM BOARD MEETING

[Sections 9013.106-9013.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES

Sec. 9013.151. WATER CONTROL AND IMPROVEMENT DISTRICT

POWERS AND DUTIES

Sec. 9013.152. ADDITIONAL POWERS AND DUTIES

Sec. 9013.153. EMINENT DOMAIN

Sec. 9013.154. COST OF RELOCATING OR ALTERING PROPERTY

Sec. 9013.155. CONTRACT FOR PURCHASE OF WATER, SEWER,

OR DRAINAGE SERVICES; ELECTION NOT

REQUIRED

Sec. 9013.156. NOTICE OF ELECTION

Sec. 9013.157. DISTRICT RULES

[Sections 9013.158-9013.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 9013.201. TAX METHOD

Sec. 9013.202. DISTRICT ACCOUNTS

Sec. 9013.203. COPY OF AUDIT REPORT

Sec. 9013.204. PAYMENT OF TAX OR ASSESSMENT NOT

REQUIRED

Sec. 9013.205. DIRECTOR AS SHAREHOLDER IN DEPOSITORY

[Sections 9013.206-9013.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec. 9013.251. ISSUANCE OF BONDS

Sec. 9013.252. ADDITIONAL SECURITY

Sec. 9013.253. TRUST INDENTURE

Sec. 9013.254. ORDER OR RESOLUTION AUTHORIZING

ISSUANCE OF CERTAIN BONDS

CHAPTER 9013. CNP UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.9013.001.DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the

district.

(2) "District" means the CNP Utility District.

(V.A.C.S. Art. 8280-466, Sec. 1 (part); New.)

Sec.9013.002.NATURE OF DISTRICT. The district is a

conservation and reclamation district in Harris County created

under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.

8280-466, Sec. 1 (part).)

Sec.9013.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries

of the district will benefit from the works and projects

accomplished by the district under the powers conferred by Section

59, Article XVI, Texas Constitution.

the purposes of Section 59, Article XVI, Texas Constitution.

(d) 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. The district, in

carrying out the purposes of this chapter, will be performing an

essential public function under the constitution. (V.A.C.S. Art.

8280-466, Secs. 1 (part), 4, 24 (part).)

[Sections 9013.004-9013.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS

TO DISTRICT TERRITORY

Sec.9013.051.DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 2, Chapter 751, Acts

of the 61st Legislature, Regular Session, 1969, as that territory

may have been modified under:

(1) Subchapter O, Chapter 51, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field notes

in the legislative process does not affect:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond for

a purpose for which the district is created or to pay the principal

of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or the

board. (V.A.C.S. Art. 8280-466, Sec. 3; New.)

Sec.9013.052.EXPANSION OF DISTRICT. (a) If land is added

to the district under Section 49.301 or 51.714, Water Code, the

board may require the petitioners:

(1) to assume the petitioners' pro rata share of the

voted but unissued bonds of the district; and

(2) to authorize the board to impose a tax on the

petitioners' property to pay for the bonds after the bonds have been

issued.

(b) If land is annexed in the manner provided by Section

49.302, Water Code, the board may also submit a proposition to the

voters of the area to be annexed on the question of the assumption

by the area to be annexed of its part of the voted but not yet issued

or sold tax or tax-revenue bonds of the district and the imposition

of an ad valorem tax on taxable property within the area to be

annexed along with a tax on the rest of the district for the payment

of the bonds.

favorably, the district may issue its voted but unissued tax or

tax-revenue bonds regardless of changes to district boundaries

since the original voting or authorization of the bonds. (V.A.C.S.

Art. 8280-466, Sec. 9.)

[Sections 9013.053-9013.100 reserved for expansion]

SUBCHAPTER C. DISTRICT ADMINISTRATION

Sec.9013.101.COMPOSITION OF BOARD. The board consists of

five directors. (V.A.C.S. Art. 8280-466, Sec. 10 (part).)

Sec.9013.102.DIRECTOR'S BOND. (a) Each director shall

give bond in the amount of $5,000 for the faithful performance of

the director's duties.

(b) The bond must be:

(1) approved by the county judge and the board;

(2) filed in the office of the county clerk of the

county or counties in which the district is located; and

(3) recorded in a record book kept for that purpose in

the district office. (V.A.C.S. Art. 8280-466, Sec. 10 (part).)

Sec.9013.103.VACANCY. (a) Except as provided by

Subsection (b), a vacancy in the office of director shall be filled

in the manner provided by Section 49.105, Water Code.

(b) The county judge of the county in which the district is

located shall appoint directors to fill all vacancies on the board

whenever the number of qualified directors is fewer than three.

(V.A.C.S. Art. 8280-466, Sec. 10 (part).)

Sec.9013.104.DISTRICT OFFICE. (a) Except as provided by

this section, the board shall designate, establish, and maintain a

district office as provided by Section 49.062, Water Code.

(b) The board may establish a second district office outside

the district. If the board establishes a second district office,

the board shall give notice of the location of that office by:

(1) filing a copy of the board resolution that

establishes the location of the office:

(A) with the Texas Commission on Environmental

Quality; and

(B) in the water control and improvement district

records of each county in which the district is located; and

(2) publishing notice of the location of the office in

a newspaper of general circulation in each county in which the

district is located.

or dwelling is a public place for matters relating to district

business.

(d) The board shall provide notice of any change in the

location of the district office outside the district in the manner

required by Subsection (b). (V.A.C.S. Art. 8280-466, Sec. 15.)

Sec.9013.105.ABSENCE OF PRESIDENT FROM BOARD MEETING. If

the board president is absent from a board meeting:

(1) the board vice president may:

(A) sign an order adopted at the meeting; or

(B) implement any other action taken at the

meeting; or

(2) the board may authorize the president to sign the

order or implement the action. (V.A.C.S. Art. 8280-466, Sec. 10

(part).)

[Sections 9013.106-9013.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES

Sec. 9013.151. WATER CONTROL AND IMPROVEMENT DISTRICT

POWERS AND DUTIES. The district has all of the rights, powers,

privileges, authority, and functions conferred by the general laws

of the state relating to water control and improvement districts

created under Section 59, Article XVI, Texas Constitution,

including those conferred by Chapters 49 and 51, Water Code.

(V.A.C.S. Art. 8280-466, Sec. 5 (part).)

Sec.9013.152.ADDITIONAL POWERS AND DUTIES. (a) The

district may:

(1) make, purchase, construct, lease, or otherwise

acquire property, works, facilities, existing improvements, or

improvements to be made, constructed, or acquired that are:

(A) inside or outside the district's boundaries;

and

(B) necessary to carry out the powers granted by

this chapter or general law; or

(2) enter into a contract with a person on terms the

board considers desirable, fair, and advantageous for:

(A) the purchase or sale of water;

(B) the transportation, treatment, and disposal

of the domestic, industrial, or communal wastes of the district or

others;

land and property in the district through the purchase,

construction, or installation of facilities, works, or

improvements that the district is otherwise authorized to do or

perform so that, to the greatest extent reasonably possible,

considering sound engineering and economic practices, all of the

land and property may ultimately receive the services of the

facilities, works, or improvements; and

(D) the performance of any of the powers granted

by this chapter or general law.

(b) A contract under Subsection (a)(2) may not have a

duration of more than 40 years. (V.A.C.S. Art. 8280-466, Sec. 5

(part).)

Sec.9013.153.EMINENT DOMAIN. The district may exercise

the power of eminent domain only:

(1) in a county in which the district is located; and

(2) when necessary to carry out the purposes for which

the district was created. (V.A.C.S. Art. 8280-466, Sec. 13

(part).)

Sec.9013.154.COST OF RELOCATING OR ALTERING PROPERTY.

(a) In this section, "sole expense" means the actual cost of

relocating, raising, lowering, rerouting, or changing the grade of

or altering the construction of a facility described by Subsection

(b) in providing comparable replacement without enhancement of the

facility, after deducting from that cost the net salvage value of

the old facility.

(b) If the district's exercise of the power of eminent

domain, the power of relocation, or any other power conferred by

this chapter makes necessary relocating, raising, rerouting,

changing the grade, or altering the construction of a highway, a

railroad, an electric transmission line, a telegraph or telephone

property or facility, or a pipeline, the necessary action shall be

accomplished at the sole expense of the district. (V.A.C.S. Art.

8280-466, Sec. 13 (part).)

Sec. 9013.155. CONTRACT FOR PURCHASE OF WATER, SEWER, OR

DRAINAGE SERVICES; ELECTION NOT REQUIRED. (a) The district may

enter into a contract with a political subdivision for water,

sewer, or drainage services or any combination of those services

without the necessity of an election by any contracting party.

(b) The district may pay for an obligation incurred by such

a contract by issuing bonds that, if otherwise necessary, have been

approved by the voters in the manner provided by this chapter.

the following parties that enters into such a contract with the

district:

(1) the United States;

(2) an agency or instrumentality of the United States;

(3) this state; or

(4) an agency or instrumentality of this state.

(V.A.C.S. Art. 8280-466, Sec. 5 (part).)

Sec.9013.156.NOTICE OF ELECTION. The board president or

secretary may give notice of an election. (V.A.C.S. Art. 8280-466,

Sec. 19.)

Sec.9013.157.DISTRICT RULES. The district shall adopt

and enforce reasonable and effective rules to secure and maintain

safe, sanitary, and adequate plumbing installations, connections,

and appurtenances as subsidiary parts of the district's sewerage

system to preserve the quality of water within or controlled by the

district. (V.A.C.S. Art. 8280-466, Sec. 16.)

[Sections 9013.158-9013.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec.9013.201.TAX METHOD. (a) The board shall use the ad

valorem plan of taxation.

(b) The board is not required to hold a hearing on the

adoption of a plan of taxation. (V.A.C.S. Art. 8280-466, Sec. 8.)

Sec.9013.202.DISTRICT ACCOUNTS. The district shall keep

a complete system of the district's accounts. (V.A.C.S. Art.

8280-466, Sec. 14 (part).)

Sec.9013.203.COPY OF AUDIT REPORT. A copy of the audit

report prepared under Subchapter G, Chapter 49, Water Code, shall

be delivered:

(1) to each director; and

(2) on request to a holder of at least 25 percent of

the outstanding bonds of the district. (V.A.C.S. Art. 8280-466,

Sec. 14 (part).)

Sec.9013.204.PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED.

The district is not required to pay a tax or assessment on:

(1) district property; or

(2) a purchase made by the district. (V.A.C.S. Art.

8280-466, Sec. 24 (part).)

Sec.9013.205.DIRECTOR AS SHAREHOLDER IN DEPOSITORY. A

director may be a shareholder in a depository of district funds.

(V.A.C.S. Art. 8280-466, Sec. 14 (part).)

[Sections 9013.206-9013.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec.9013.251.ISSUANCE OF BONDS. (a) The district may

issue bonds payable from taxes or revenue to provide money for any

purpose of this chapter, including the acquisition of land.

(b) The district must issue bonds in the manner provided by

Chapters 49 and 51, Water Code, except that the district may issue

bonds payable solely from net revenue by resolution or order of the

board without an election.

all or any designated part of the revenue of district property and

facilities or under a specific contract, as provided in the order or

resolution authorizing the issuance of bonds. (V.A.C.S. Art.

8280-466, Sec. 12 (part).)

Sec.9013.252.ADDITIONAL SECURITY. (a) Within the

discretion of the board, bonds issued under this subchapter may be

additionally secured by a deed of trust or mortgage lien on physical

property of the district and franchises, easements, water rights

and appropriation permits, leases, contracts, and all rights

appurtenant to that property, vesting in the trustee the power to:

(1) sell the property for payment of the debt;

(2) operate the property; and

(3) take any other action to secure the bonds.

(b) A purchaser under a sale under the deed of trust or

mortgage lien of the property:

(1) is the absolute owner of the property, facilities,

and rights purchased; and

(2) may maintain and operate the property and

facilities. (V.A.C.S. Art. 8280-466, Sec. 12 (part).)

Sec.9013.253.TRUST INDENTURE. A trust indenture created

under Section 9013.252, regardless of the existence of a deed of

trust or mortgage lien on the property, may:

(1) provide for the security of the bonds and the

preservation of the trust estate in the manner prescribed by the

board;

(2) provide for amendment or modification of the trust

indenture;

(3) provide for the issuance of bonds to replace lost

or mutilated bonds;

(4) condition the right to spend district money or

sell district property on the approval of a licensed engineer

selected as provided by the trust indenture; and

(5) provide for the investment of district money.

(V.A.C.S. Art. 8280-466, Sec. 12 (part).)

Sec. 9013.254. ORDER OR RESOLUTION AUTHORIZING ISSUANCE OF

CERTAIN BONDS. (a) In an order or resolution authorizing the

issuance of revenue, tax-revenue, revenue refunding, or

tax-revenue refunding bonds, the board may:

(1) provide for:

(A) the flow of funds; and

(B) the establishment and maintenance of the

interest and sinking fund, reserve fund, or other fund;

(2) make additional covenants with respect to the

bonds and the pledged revenue and the operation and maintenance of

the improvements and facilities the revenue of which is pledged,

which may include provisions for the operation or leasing of all or

part of the improvements and facilities and the use or pledge of

money received from the operation contract or lease as the board

considers appropriate;

(3) prohibit the further issuance of bonds or other

obligations payable from the pledged revenue or reserve the right

to issue additional bonds to be secured by a pledge of and payable

from the revenue on a parity with, or subordinate to, the lien and

pledge in support of the bonds being issued, subject to any

conditions set forth in the order or resolution; and

(4) include any other provision or covenant not

prohibited by the Texas Constitution or this chapter.

(b) The board may adopt and execute any other proceeding or

instrument necessary or convenient in the issuance of the bonds.

(V.A.C.S. Art. 8280-466, Sec. 12 (part).)

ARTICLE 2. CONFORMING AMENDMENTS

SECTION 2.01. Section 1, Chapter 668, Acts of the 64th

Legislature, Regular Session, 1975, is amended to read as follows:

Sec. 1. The boundaries [~~Pursuant to the provisions of~~

~~Article IX, Section 9, of the Texas Constitution, this Act~~

~~authorizes the creation, establishment, maintenance, operation,~~

~~and financing~~] of the Follett Hospital District of Lipscomb County

[~~the boundaries of which~~] are described as follows:

"Beginning at the Northeast corner of Lipscomb County at the

Northeast corner of the Texas Panhandle at a corner of the State

Boundary Line between Texas and Oklahoma;

Thence South along the East line of Lipscomb County and along

the State Boundary Line, about 15.5 miles, to an extension of the

South line of Section 705, Block 43, H&TC RR Co. Surveys in Lipscomb

County, Texas;

Thence West along said extension and along the South line of

Sections 705, 706, 707, 708, 709, 710, 711, 712, 713, 714, 715, 716,

717, 718, 719, 720, 721, 722, 723, 724 and 725 all in said Block 43,

about 21.5 miles, to the Southwest corner of said Section 725;

Thence North along the West line of said Section 725, about

one mile, to the Northwest corner of said Section 725;

Thence East along the North line of Sections 725, 724, 723,

722, 721, 720, 719, 718, 717, and 716 all in said Block 43, about 10

miles, to the Northeast corner of said Section 716 which is also the

Southwest corner of Section 782 in said Block 43;

Thence North along the West line of Sections 782, 803 and 870

in said Block 43, about 3 miles, to the Northwest corner of said

Section 870 which is also the Southeast corner of Section 892 in

said Block 43;

Thence West along the South line of Section 892 and Section

893 in said Block 43, about 2 miles, to the Southwest corner of said

Section 893;

Thence North along the West line of said Section 893, about

one mile, to the Northwest corner of said Section 893 which is also

the Southeast corner of Section 955 in said Block 43;

Thence West along the South line of said Section 955, about

one mile, to the Southwest corner of said Section 955;

Thence North along the West line of Sections 955, 982, 1043,

1070, 1131 and 1158 all in said Block 43, about 6 miles, to a point

in the South line of Section 163, Block 10, H&GN RR Co. Surveys;

Thence West along the South line of said Section 163 to the

Southwest corner of said Section 163;

Thence North along the West line of said Section 163 and along

the West line of Sections 102, 75 and 14, Block 10, H&TB RR Co.

Surveys and an extension of said line, about 4.5 miles, to its

intersection with the North line of Lipscomb County which is also

the State Boundary Line between Texas and Oklahoma;

Thence East along said North line of Lipscomb County and said

State Boundary Line, about 14.5 miles, to PLACE OF BEGINNING."

SECTION 2.02. Section 1, Chapter 539, Acts of the 63rd

Legislature, Regular Session, 1973, is amended to read as follows:

Sec. 1. The boundaries [~~Pursuant to the provisions of~~

~~Article IX, Section 9, of the Texas Constitution, this Act shall be~~

~~operative so as to authorize the creation, establishment,~~

~~maintenance, and operation~~] of the Darrouzett Hospital District of

Lipscomb County, Texas, [~~the boundaries of which~~] are described as

follows, to-wit:

BEGINNING at the intersection of the state boundary line

between Texas and Oklahoma and the eastern boundary line of

Sections 23 and 66 of Block 10, H. T. & B. Survey, Lipscomb County,

Texas;

THENCE Southerly along the eastern boundaries of Sections 66,

23, and 111, in Block 10, H. T. & B. Survey and of Section 154, Block

10, S.P. R.R. Survey, to the point of intersection of the eastern

boundary of said Section 154 with the south boundary of Section 155

of Block 10 of the Southern Pacific R. R. Survey;

THENCE East along the south boundary of Section 155 of Block

10 of the Southern Pacific R. R. Survey to its point of intersection

with the east boundary of Section 1167, Block 43, H. & T. C. R. R.

Co. Survey;

THENCE South along the east boundary of said Section 1167 and

continuing south along the east boundaries of Sections 1122, 1079,

1034, 991, 946, 903, 858, 815, 770, and 727 of Block 43, H. & T. C.

R. R. Co. Survey to the southwest corner of Section 726 (which is

the same as the southeast corner of Section 727);

THENCE East approximately one mile along the southern

boundary of Section 726 to the southeast corner of the said Section

726;

THENCE North approximately one mile along the eastern

boundary of the said Section 726 to the Southwest corner of Section

772 (which is the same as the northeast corner of Section 726);

THENCE East along the south boundary line of Sections 772,

773, 774, 775, 776, 777, 778, 779, 780 and 781, all in Block 10, H. &

T. C. R. R. Co. Survey to the southeast corner of the said Section

781;

THENCE North approximately three miles along the east

boundary of Sections 781, 804 and 869 to the northeast corner of the

said Section 869;

THENCE West approximately two miles along the north boundary

line of Sections 869 and 868 to the southeast corner of Section 894

(which is the same as the northwest corner of Section 868);

THENCE North approximately one mile along the eastern

boundary of Section 894;

THENCE West approximately one mile along the north boundary

of the said Section 894 to the southeast corner of Section 954

(which is the same as the northwest corner of Section 894);

THENCE North along the eastern boundary of Sections 954, 983,

1042, 1071, 1130, and 1159 to the intersection of the said eastern

boundary line of Section 1159 with the south boundary line of

Section 163, Block 10, H. & G. N. R. R. Co. Survey;

THENCE West along the south boundary of Section 163 to the

east boundary line of Section 162, Block 10, H. & G. R. R. Co.

Survey;

THENCE North along the east boundary line of the said Section

162, and of Sections 103, 74 and 15, Block 10, H. T. & B. R. R. Co.

Survey to the state boundary line between Texas and Oklahoma;

THENCE West along the said state boundary of Texas and

Oklahoma to the PLACE OF BEGINNING.

[~~The Darrouzett Hospital District shall include all of the~~

~~present territory of the Darrouzett Independent School District~~

~~except for that part of the school district which is already in the~~

~~Booker Hospital District.~~]

SECTION 2.03. Section 1, Chapter 561, Acts of the 63rd

Legislature, Regular Session, 1973, is amended to read as follows:

Sec. 1. The [~~Pursuant to the authority granted by the~~

~~provisions of Article IX, Section 9, of the Texas Constitution,~~

~~the~~] Hamlin Hospital District[~~, hereinafter referred to as~~

~~district,~~] is [~~hereby authorized to be created and established so~~

~~as to be~~] composed of all the territory and property in Jones County

included within the following boundaries:

Beginning at a point on the North line of Jones County at its

intersection with the East line of Section 87, BBB&C RR Co. lands,

said point being also on the boundary of the Stamford Hospital

District;

Thence South with the East lines of Sections 87, 88, 89, 90,

91, BBB&C RR Co. lands to the SE corner of Section 91, the NE corner

of Section 92, same lands;

Thence West with the South lines of Sections 91 and 102 to the

mid-point of the South line of Section 102, same lands;

Thence South across Sections 101 and 100 to the mid-point of

the South line Section 100, same lands;

Thence West with the South line of Section 100 to the

Southwest corner of said Section 100;

Thence South with the West line of Section 99, same lands and

the West lines of Sections 7 and 8, GH&H RR Co. Survey to a point in

the East line of the McMullen and McGloin League 336;

Thence S 15 deg. E with the East line of League 336 to its SE

corner;

Thence S 75 deg. W with the South line of League 336 to the NE

corner of Sub-division 12 of the L. Kratz League 335;

Thence S 15 deg. E with the East lines of Subdivisions 12, 17

and 26, League 335 to a point in the North line of the Harrison

County School Lands League 334;

Thence S 75 deg. W with the North line of League 334 to the NE

corner of Subdivision 30, League 334;

Thence S 15 deg. E with the East lines of Subdivisions 30 and

43 to the mid-point of said League 334;

Thence S 75 deg. W to the mid-point of the West line of said

League 334;

Thence S 15 deg. E with the West lines of League 334 and 333

Harrison County School Lands to the SW corner of League 333 on the

North line of Section 44, S. P. RR Co. Block 2;

Thence S 75 deg. W with the North line of said Sec. 44 to its

NW corner;

Thence South with the West lines of Sections 44 and 43, S. P.

RR to the SW corner of said Section 43 on the North line of the S.

Redman pre-emption Survey;

Thence N 75 deg. E to the NE corner of said Redman Survey;

Thence S 15 deg. E with the East lines of the S. Redman and W.

S. Coulson Survey 212 to the NE corner of the M. Northington Survey

270 on the Clear Fork of the Brazos River;

Thence down the river with its meanders and with the East line

of the M. Northington Survey 270 and the North lines of the J. M.

Cloud Survey 269, J. C. Hunt Survey 268, the M. Fragosa Survey 267,

the S. Jones Survey 266 and the A. B. Jones Survey 265 to the NE

corner of Survey 265;

Thence S 15 deg. E with the East line of Section 265 to its SE

corner on the North line of Section 9, Blk. 17, T&P RR Co.;

Thence S 75 deg. W with the North line of Section 9 to its NW

corner;

Thence S 13 deg. E with the East lines of Sections 8, 13, 16

same lands and crossing Section 22, same lands to a point in the

North line of the G. A. Kirkland Survey 2;

Thence N 75 deg. E with the North line of said Survey 2 to the

NE corner of Subdivision 63;

Thence S 15 deg. E with the East line of Subdivision 63 to a

point in the North line of Dewitt County School Lands League 126;

Thence N 77 deg. E with the North line of League 126 to its NE

corner;

Thence S 13 deg. E with the East line of League 126 and

Section 23, Blk. 17, T&P RR to a point in the South line of Jones

County;

Thence West with South County line of Jones County across

Blk. 17, T&P RR Co. Dewitt County School Lands Leagues 125 and 149,

Blks. 18, 19, T&P RR Co. to the SW corner of Jones County, the SE

corner of Fisher County;

Thence North with the West county line of Jones County across

the R. S. Spiers Survey 283, E. Miles Survey 219, J. S. Hail Survey

2, Goliad County School Land Leagues 360, 359 and 358, J. Rodriquez

Survey 357, I. De La Garza Survey 356, Austin & Williams Survey 355

and 354, BBB&C RR Co. Blk. 1, Sections 181, 182 and 183, and others

to the NW corner of Jones County and the NE corner of Fisher County;

Thence East with the North county line of Jones County across

the W. E. Kaye Survey and Sections 171, 158, 152, 139, 134, 121,

115, 106 and 87, BBB&C RR Co. lands to the place of beginning.

SECTION 2.04. (a) Section 1, Chapter 666, Acts of the 64th

Legislature, Regular Session, 1975, is amended to read as follows:

Sec. 1. In addition to the boundaries described by Section

1, Chapter 667, Acts of the 64th Legislature, Regular Session,

1975, the boundaries [~~Pursuant to the provisions of Article IX,~~

~~Section 9, of the Texas Constitution, this Act authorizes the~~

~~creation, establishment, maintenance, operation, and financing~~] of

the Higgins-Lipscomb [~~Higgins~~] Hospital District [~~of Lipscomb~~

~~County, the boundaries of which~~] are described as follows[~~, unless~~

~~expansion of the district is authorized under Sections 4A, 4B, and~~

~~4C of this Act~~]:

"Beginning at the Southeast corner of Lipscomb County on the

State Boundary Line between Texas and Oklahoma;

Thence West along the South line of Lipscomb County about

12.5 miles to the West line of Section 77, Block 43, H&TC RR Co.

Surveys;

Thence North along the West line of Sections 77, 100, 165,

188, 253, 276, 341, 364 and 429 in said Block 43, about 9 miles, to

the Northwest corner of said Section 429;

Thence East along the North line of said Section 429, about

one mile, to the Northeast corner of said Section 429 which is also

the Southwest corner of Section 451 in said Block 43;

Thence North along the West line of Sections 451, 518, 539,

606, 627 and 694 in said Block 43, about 6 miles, to the Northwest

corner of said Section 694;

Thence East along the North line of Sections 694, 695, 696,

697, 698, 699, 700, 701, 702, 703 and 704 and an extension of said

line, about 11.5 miles, to its intersection with the East line of

Lipscomb County which is also the State Boundary Line between Texas

and Oklahoma;

Thence South along said East line of Lipscomb County and said

State Boundary Line, about 15 miles, to PLACE OF BEGINNING."

(b) Section 1, Chapter 667, Acts of the 64th Legislature,

Regular Session, 1975, is amended to read as follows:

Sec. 1. In addition to the boundaries described by Section

1, Chapter 666, Acts of the 64th Legislature, Regular Session,

1975, the boundaries [~~Pursuant to the provisions of Article IX,~~

~~Section 9, of the Texas Constitution, this Act authorizes the~~

~~creation, establishment, maintenance, operation, and financing~~] of

the Higgins-Lipscomb [~~Lipscomb~~] Hospital District [~~of Lipscomb~~

~~County, the boundaries of which~~] are described as follows:

Beginning at the intersection of the South line of Lipscomb

County with the West line of Section 67, Block 43, H&TC RR Co.

Surveys;

Thence North along the West line of Sections 67, 110, 155,

198, 243, 286, 331, 374, 419, 462, 507, 550, 595, 638 and 683 all in

said Block 43, about 15 miles, to the Northwest corner of said

Section 683;

Thence East along the North line of Sections 683, 684, 685,

686, 687, 688, 689, 690, 691, 692, and 693 all in said Block 43,

about 11 miles, to the Northeast corner of said Section 693;

Thence South along the East line of Sections 693, 628, 605,

540, 517 and 452 all in said Block 43, about 6 miles, to the

Southeast corner of said Section 452;

Thence West along the South line of said Section 452, about

one mile, to the Southwest corner of said Section 452 which is also

the Northeast corner of Section 428 in said Block 43;

Thence South along the East line of Sections 428, 365, 340,

277, 252, 189, 164, 101 and 76 all in said Block 43, about 9 miles,

to the South line of Lipscomb County;

Thence West along said South line of Lipscomb County, about

10 miles, to PLACE OF BEGINNING.

SECTION 2.05. Section 1.03, Chapter 45, Acts of the 71st

Legislature, Regular Session, 1989, is amended to read as follows:

Sec. 1.03. The [~~Except as provided by Section 3.07 of this~~

~~Act, the~~] district is located in Bailey and Parmer counties, and has

the following boundaries:

BEGINNING at the Northwest corner of Bailey County, Texas,

said point being in the Texas-New Mexico state line:

THENCE East along the North County Line of Bailey County,

Texas, to a point in the north boundary of Section 18, Block X, W. D. &

F. W. Johnson Subdivision in Bailey and Parmer Counties, Texas,

said point being the southeast corner of the Farwell Hospital

District which is in Parmer County, Texas;

THENCE North along the east boundary of the Farwell Hospital

District to a point in the east-west centerline of Section 29,

Township 11 South, Range 3 East, Capital Syndicate Subdivision in

Parmer County, Texas;

THENCE East along the east-west centerlines of Sections 29,

28, 27 and 26, all in Township 11 South, Range 3 East, Capital

Syndicate Subdivision in Parmer County, Texas, to a point in the

East boundary of said Section 26;

THENCE North along the East boundary of said Section 26 to the

Northwest corner of Section 18, Doud & Keefer Subdivision in Parmer

County, Texas;

THENCE East along the north boundaries of Sections 18, 17,

16, 15, 14, and 13, Doud & Keefer Subdivision in Parmer County,

Texas, and continuing East along the north boundaries of Sections

69, 70, 71, 72, 73, 74 and 75, Block H, Kelly Subdivision in Parmer

County, Texas, to the East County Line of Parmer County, Texas;

THENCE South along the East County Line of Parmer County,

Texas, to the Southeast Corner of Parmer County, Texas;

THENCE West along the South County Line of Parmer County,

Texas, to the Northeast corner of Bailey County, Texas;

THENCE South on the county line between Bailey and Lamb

Counties, Texas, to the Southeast corner of Labor 23, in League 206,

Ochiltree County School Land;

THENCE West on the League lines, between Leagues 206 and 207,

of the Ochiltree County School Lands, to the Southwest corner of

Labor 25, League 206, Ochiltree County School Land;

THENCE jog South to the Northeast corner of Labor 1, of League

203, Roberts County School Lands;

THENCE West on the League Line of Leagues 204, Ochiltree

County School Lands, and League 203, Roberts County School Lands,

to the Northwest Corner of labor 1, League 203, Roberts County

School Lands;

THENCE South along the labor lines between Labors 2 and 1, 9

and 10, 12 and 11, 19 and 20, 22 and 21, League 203, Roberts County

School Lands, and continuing South along the Labor lines between

Labors 2 and 1, 9 and 10, 12 and 11, 19 and 20, 22 and 21, League 202,

Roberts County School Lands, to a point in the North line of League

201, Roberts County School Lands, and the Southeast corner of Labor

22, League 202, Roberts County School Lands;

THENCE West along the South line of League 202, Roberts

County School Land, and the North line of League 201, Roberts County

School Land, and continuing West along the South line of League 192,

Foard County School Land, and the North line of League 193, Foard

County School Land, to the Northeast corner of League 186, and the

Southeast corner of league 187, both of Swisher County School Land;

THENCE South on the League Line between League 186, Swisher

County School Lands, and League 193, Foard County School Land, and

League Line between League 185, Swisher County School Land, and

League 194, Foard County School Land, and League Line between

League 184, Swisher County School Land, and League 195, Foard

County School Land, to the Southeast Corner of League 184, Swisher

County School Lands, and Southwest Corner of League 195, Foard

County School Lands;

THENCE West on League lines between Leagues 184, Swisher

County School Land, and League 183, Floyd County School Lands,

League 179, Motley County School Lands, and League 180, Floyd

County School Lands, League 167, Irion County School Lands, and

League 166, Irion County School Lands;

THENCE due West, across Section 9 in Block F, Leon Blum

Survey;

THENCE North along the West boundary line of said Block F,

Leon Blum Survey, to the Northeast Corner of Section 26, Block B,

Melvin, Blum and Blum Survey;

THENCE West on the Section Line between Section 13 and

Section 26, Block B, to the Southwest corner of Section 13, and

Northwest corner of Section 26, all in Block B, aforesaid;

THENCE North on the Section line between Sections 12 and 13

all in Block B, aforesaid, to the Northwest corner of Section 13,

Block B, aforesaid;

THENCE East on the Section line between Sections 13, Block B,

aforesaid and Section 146, Block A, Melvin, Blum and Blum Survey, to

the Northeast corner of Section 13, Block B, aforesaid, and

Southeast corner of Section 146, Block A, aforesaid;

THENCE North on the Block line between Block F and Block A,

Melvin, Blum and Blum Survey, to a point being the Northeast corner

of Section 120, Block A, aforesaid, also being the Southeast corner

of Section 107, Block A, Melvin, Blum and Blum Survey;

THENCE West along the Section lines, between Sections 107 and

120, 106 and 119, 105 and 118, 104 and 117, 103 and 116, 102 and 115,

101 and 114, 100 and 113, 99 and 112;

THENCE continuing directly West to the Texas-New Mexico State

Line to a Point;

THENCE North along and on said Texas-New Mexico state Line,

to the Northwest corner of Bailey County, Texas, this being the

Place of Beginning.

SECTION 2.06. Section 1, Chapter 55, Acts of the 40th

Legislature, 1st Called Session, 1927, is amended to read as

follows:

Sec. 1. [~~That Brazos River Harbor Navigation District of~~

~~Brazoria County, in Brazoria County, Texas, as hereinafter~~

~~described by metes and bounds, is hereby created and established~~

~~under authority of Section 59, Article 16 of the Constitution of~~

~~Texas for the purpose of making improvements for the navigation of~~

~~inland and coastal waters, and for the preservation and~~

~~conservation of inland and coastal waters for navigation and for~~

~~control and distribution of storm and flood waters of rivers and~~

~~streams in aid of navigation; that all property, real and personal,~~

~~situated within said District and subject to taxation will be~~

~~benefited by the improvements to be constructed by said District;~~

~~and all orders of the Commissioners' Court of Brazoria County~~

~~heretofore made in respect to the creation of such district and the~~

~~authorization and issuance of $1,000,000 Bonds of such navigation~~

~~district be and the same are hereby in all things ratified and~~

~~validated. Said~~] Brazos River Harbor Navigation District of

Brazoria County is described by metes and bounds [~~bouonds~~] as

follows, to wit:

Beginning at the Southwest corner of Brazoria County, being

also the Southeast corner of Matagorda County, at the entrance of

Cedar Lake into the Gulf of Mexico; thence with the line between

Brazoria and Matagorda counties up said Cedar Lake to the upper line

of the league of land granted to C. Harrison; thence Northwest with

the line between Brazoria and Matagorda Counties to Lynville Bayou;

thence up said Lynville Bayou and following the line between

Brazoria and Matagorda Counties to the Western corner of the C.

Garrett League, being a common corner of Brazoria, Matagorda and

Wharton Counties; thence along the upper line of said Garrett

league with the line between Brazoria and Wharton Counties to the

San Bernard River; thence up said river to the west corner of the

league of land on the East bank of said river granted to Wm. Prater;

thence with the line between Brazoria and Fort Bend Counties along

the upper line of said league to its North corner; thence southeast

along the northeast line of said league, following the line between

Brazoria and Fort Bend Counties, to the most westerly corner of the

league of land granted to A. Darst; thence northeast along the upper

line of said league, following the line between Brazoria and Fort

Bend Counties, to the North corner of said A. Darst League; thence

east in a direct line, following the line between Brazoria and Fort

Bend Counties, to the south prong of Cow Creek, and thence down said

Creek, following the line between Brazoria and Fort Bend Counties,

to its mouth, the confluence with the Brazos River; thence West

crossing the Brozas River to its East Bank; thence up the East bank

of said Brazos River to the Northwest corner of the league of land

granted to Francis Bingham; thence East along the North line of said

Bingham league to its northeast corner, and continuing East along

the North lines of Lavaca Navigation Company survey No. 1 and H. T. &

B. R. R. Co. Surveys Nos. 51, 52, 53 and 54 to the Southwest line

of the Oliver Hall Survey; thence Southeast along the Southwest

line of said Oliver Hall Survey to its Southern Corner; thence

Northeast along the Southeast line of said Oliver Hall Survey to the

West bank of Chocolate Bayou; thence down the Western Bank of

Chocolate Bayou with its meanders to the entrance of said Bayou into

Chocolate Bay; thence along the western shore of Chocolate Bay and

West Bay to San Luis Pass at the Gulf of Mexico; and thence

southwesterly along the shore of the Gulf of Mexico to the place of

beginning.

SECTION 2.07. Section 4a, Chapter 55, Acts of the 40th

Legislature, 1st Called Session, 1927, is amended to read as

follows:

Sec. 4a. The boundaries of the navigation precincts for [On

~~and after January 1, 1961,~~] the [~~governing body of~~] Brazos River

Harbor Navigation District of Brazoria County are [~~shall be~~

~~composed of six Navigation and Canal Commissioners. For the~~

~~purpose of electing Navigation and Canal Commissioners, said~~

~~District is hereby divided into four Navigation Precincts~~] as

follows:

Navigation Precinct No. 1 shall contain that part of said

District described by metes and bounds as follows:

BEGINNING on the East Bank of the San Bernard River near its

mouth at the northwest corner of the S. F. Austin Labor, Abstract

No. 34, also being the common line of Commissioners Precinct 1 and 4

of Brazoria County, Texas;

THENCE, in a northerly direction along said common line of

said Commissioners Precinct 1 and 4 to its intersection with the

common line between the Retrieve State Prison Farm and the old Lake

Jackson Plantation;

THENCE, along said common line in an easterly direction to

its intersection with Oyster Creek;

THENCE, down center line of said Oyster Creek in a

southeasterly direction with its meanders to its intersection with

the east line of said Retrieve State Prison Farm;

THENCE, north along the common line between said Prison Farm

and a 450 acre tract No. 78 to the northwest corner of said tract No.

78;

THENCE, east along the north line of tracts No. 78 and 77 to

the northeast corner of the 450 acre tract No. 77;

THENCE, south along the east line of said tract No. 77 to its

intersection with Bastrop Bayou;

THENCE, down said Bayou in an easterly direction to its

intersection with the common line between a 400 acre tract No. 99A

and a 902 acre tract No. 101;

THENCE, following said common line east to its intersection

with the center line of the Clute-Angleton County Road No. 288;

THENCE, along the center line of said Clute-Angleton County

Road No. 288 in a southerly direction to its intersection with

Bastrop Bayou;

THENCE, following the northeast bank of Bastrop Bayou to the

point of intersection of Austin and Bastrop Bayou, same point being

also the intersection of Commissioners Precinct 1 and 3 of Brazoria

County, Texas;

THENCE, down Bastrop Bayou in an easterly direction following

the common boundary of County Commissioners Precinct 1 and 3 to a

point of intersection of the common line of County Commissioners

Precinct 1 and 3 with Galveston County;

THENCE, in a southeasterly direction following the common

boundary of Brazoria and Galveston County to the Gulf of Mexico;

THENCE, in a southwesterly direction along the shoreline of

the Gulf of Mexico to the mouth of the San Bernard River;

THENCE, up the East Bank of the San Bernard River to the place

of beginning being the northwest corner of the S. F. Austin Labor,

Abstract No. 34, and also being the point of intersection of the

common boundary line of Commissioners Precincts 1 and 4 of Brazoria

County, Texas.

Navigation Precinct No. 2 shall include all the territory in

Brazoria County Commissioners Precinct No. 2 as such precinct is

now established.

Navigation Precinct No. 3 shall include all the territory in

Brazoria County Commissioners Precinct No. 4 as such precinct is

now established.

Navigation Precinct No. 4 shall include the remaining

territory situated within said District other than that contained

in said Navigation Precincts Nos. 1, 2 and 3.

[~~There shall be six positions or offices of Navigation and~~

~~Canal Commissioner, numbered from 1 to 6, respectively, as follows:~~

~~One commissioner (Position 1) shall be at large and shall be a~~

~~qualified resident voter of the Navigation District.~~ ~~He shall hold~~

~~his office for a term of two years.~~ ~~Two commissioners (Positions 2~~

~~and 3) shall be qualified voters and residents of Navigation~~

~~Precinct No. 1 and shall hold office for terms of two and four~~

~~years, respectively.~~ ~~One commissioner (Position 4) shall be a~~

~~qualified voter and resident of Navigation Precinct No. 2 and shall~~

~~hold office for a term of six years.~~ ~~One commissioner (Position 5)~~

~~shall be a qualified voter and resident of Navigation Precinct No. 3~~

~~and shall hold office for a term of four years. One commissioner~~

~~(Position 6) shall be a qualified voter and resident of Navigation~~

~~Precinct No. 4 and shall hold office for a term of six years.~~

[~~An election shall be held in said District on the first~~

~~Tuesday after the first Monday in November, A. D. 1960, to elect~~

~~four commissioners who, together with the two existing Navigation~~

~~and Canal Commissioners whose terms have not expired, shall~~

~~constitute the governing body of the District. The person~~

~~heretofore elected as Navigation and Canal Commissioner with term~~

~~of office expiring in 1961 shall hold Position No. 2 on the~~

~~six-member Commission with a two-year term of office and the person~~

~~heretofore elected as Navigation and Canal Commissioner with a term~~

~~of office expiring in 1963 shall hold Position No. 5 on said~~

~~six-member Commission with a term of office of four years.~~

[~~An election shall be held in said District every two years in~~

~~accordance with Chapter 41, Election Code, for the purpose of~~

~~electing two commissioners who shall hold their offices for a term~~

~~of six years.~~ ~~Any candidate offering himself for a position as~~

~~commissioner shall, in filing as a candidate, indicate the number~~

~~of the position for which he is a candidate.~~

[~~Requests for placing the name of a candidate on the ballot~~

~~shall be filed with the chairman of the governing body of the~~

~~District, shall be in writing and signed by the candidate or shall~~

~~be in the form of a petition signed by not less than twenty-five~~

~~qualified voters of the District.~~ ~~The filing period for a request~~

~~for placing the name of a candidate on the ballot is governed by~~

~~Chapter 144, Election Code.~~

[~~Arrangements for each election shall be made by the~~

~~governing body and notice of the election, signed by the chairman or~~

~~secretary of the governing body, shall be published once a week for~~

~~two consecutive weeks in a newspaper of general circulation within~~

~~the District, the first publication to be not less than fourteen~~

~~days prior to the election.~~

[~~The governing body shall canvass the returns and declare the~~

~~results of each election, and the candidate receiving the highest~~

~~number of votes for each position shall be elected, and shall take~~

~~office on the appropriate date, next succeeding his election. All~~

~~qualified voters throughout said Navigation District shall be~~

~~permitted to vote on all candidates running for commissioner in all~~

~~Navigation Precincts.~~

[~~Each commissioner shall qualify by taking the~~

~~constitutional oath of office and by making an official bond in the~~

~~sum of Ten Thousand Dollars ($10,000.00) executed by himself and by~~

~~two solvent sureties or by a surety company authorized to do~~

~~business in the State of Texas and such bond shall be approved by~~

~~the County Judge of Brazoria County. Except as otherwise provided~~

~~herein, all vacancies in the office of Navigation and Canal~~

~~Commissioners for this District shall be filled by appointment by~~

~~the Board itself for the unexpired term. In the event that more than~~

~~two vacancies occur at the same time, the remaining Navigation and~~

~~Canal Commissioners shall call a special election to fill such~~

~~vacancies, and if they fail to do so within fifteen days after such~~

~~vacancies occur, the judge or judges of the district court or courts~~

~~of the judicial district in which such Navigation District lies,~~

~~upon the petition of any voter or creditor thereof, may order the~~

~~holding of such election, fixing the date thereof and order the~~

~~publication of notice of such election by the county clerk of the~~

~~county, and name the officers to hold the election. In any such~~

~~election held by order of the district judge or judges, the returns~~

~~of the election shall be made and filed in the office of the clerk of~~

~~the district court and he shall declare the result thereof.~~]

SECTION 2.08. Section 57(a), Chapter 8, Acts of the 67th

Legislature, 1st Called Session, 1981, is amended to read as

follows:

(a) The management and control of the Brazoria County

Drainage Districts Nos. 4[~~, 5, 8,~~] and 11 are hereby vested in the

boards of directors of those districts. In this section,

"district" means the Brazoria County Drainage Districts Nos. 4[~~, 5,~~

8,] and 11.

SECTION 2.09. Section 1, Chapter 166, Acts of the 41st

Legislature, Regular Session, 1929, is amended to read as follows:

Sec. 1. The boundaries of [~~That~~] Willacy County Water

Control and Improvement District Number One[~~, embracing lands in~~

~~the Counties of Willacy and Hidalgo, in the State of Texas, is~~

~~hereby created and established as a conservation and reclamation~~

~~district, and which district shall have such powers of government~~

~~and the authority to exercise such rights, privileges and functions~~

~~as are conferred by Article 16, Section 59 of the Constitution of~~

~~the State of Texas, and provisions of Chapter 25, of the General~~

~~laws passed by the Thirty-ninth Legislature, at its Regular Session~~

~~in 1925, as amended by Chapter 107, of the General Laws passed by~~

~~the Fortieth Legislature, at its First Called Session in 1927, as~~

~~such general laws now exist or may be hereafter amended, except as~~

~~herein otherwise provided; and the boundary lines of such district~~]

shall be as follows:

Beginning at the southwest corner of Lot 13, Block 87, Turner

tract, a subdivision of Share 24, San Juan De Carricitos Grant in

Hidalgo County, Texas;

Thence east with the south boundary lines of Blocks 87, 86, 85

and 84, said Turner Tract at 15700 ft. the S.E. corner Lot 13, Block

84, The Turner Tract and the S.W. corner Lot 13, Block 39, Jose

Tract No. 5, continue with the south boundary line of Blocks 39 and

38 said Jose Tract, continue with the south line of Blocks 4, 3, 2

and 1, Lyford Tract No. 2 to S. E. corner of Block 1, a point in west

line Share 44, in all 45950 feet;

Thence South with the West line of Share 44, 34990 ft. to the

Willacy-Cameron County line;

Thence in a southeasterly direction with said

Willacy-Cameron County Line 20100 ft. to the most southerly S.E.

corner of Share 44, the S. W. corner of Share 2 of said Carricitos

Grant;

Thence north with the east line of Share 44 and the west line

of Share 2, 11700 ft. to the N.W. corner of said Share 2;

Thence east with the north line of Share 2, 4600 ft. to a S.E.

corner of Share 44, the S.W. corner of Block 5, of the Los Coyotes

Ranch Subdivision;

Thence north with the east line of Share 44 and the west line

of the Los Coyotes Subdivision 16000 ft. to the N.W. corner of said

Los Coyotes Ranch Subdivision;

Thence east with the north line of the Los Coyotes Ranch Sub

3300 feet to a S.E. corner of Share 44, the S.W. corner of Share 14;

Thence north with the east line of Share 44 and the west line

of Share 14, 8500 ft. the N.W. corner of Share 14;

Thence east with the north line of Share 14, the south line of

Share 45, 14900 ft to the S.E. corner of said Share 45, a point in

the west line of Share 34;

Thence south with the west line of Share 34, 750 ft to the S.W

corner of same an inner corner of Share 14;

Thence east with the north line of Share 14, and the south

line of Share 34, at 12300 ft. pass the N.E. corner of said Share 14,

in all 17650 ft to the S.E. corner of Lot 8, Share 34;

Thence north with the east line of said Lot 8, 3200 ft. to the

N.E. corner of same;

Thence west with the north line of Lots 8 and 7, Share 34,

5350 ft. to a point in the east line of Share 34, a S. W. corner of

Share 64;

Thence north with the east line of Share 34, and 61, 17200 ft.

to the N. E. corner of Share 61;

Thence west with the south line of Share 16, 2640 ft. to the

S. E. corner of Lot 21, Share 16;

Thence north with the east line of Lot 21, Share 16, 2900 ft.

to the N.E. corner of same;

Thence west with the north line of Lot 21, 22 and 23, Share

16, 4300 ft. to the N. W. corner of said lot 23;

Thence south with the west line of lot 23, Share 16, 2900 ft

to the S. W. corner of same;

Thence west with the south line of Share 16 and the South line

of the Gulf Coast Subdivision, 7000 ft to the N W corner of Lot 4 B1k

2 of the E F Hubmer Subdivision;

Thence south with the west line of lots 4, 5, 12 and 13, Blk 2

of Hubmer's Subdivision 5280 ft to the S. W corner of said lot 13;

Thence East with the South line of said Lot 13, Blk 2, 1320 ft

to the S. E. corner of same;

Thence South with the West line of Lots 3 and 6, Blk 3,

Hubmer's Subdivision 2640 ft to the S W corner of said Lot 6;

Thence East with the South line of Lot 6, Blk 3, 1320 ft to the

S E corner of same;

Thence South with the West line of Lot 10 Blk 3, 1320 ft to the

S. W. corner of same;

Thence west with the north line of lots 14 and 13 Blk 3, 2640

ft to the N W corner of said Lot 13;

Thence South with the West line of said Lot 13, BLk 3, 800 ft

to the S W Corner of same;

Thence West with the South line of Share 64, the North line of

Share 45, 6500 ft to the S E corner of Lot 20 of the Harding Gill

Subdivision of Share 64;

Thence North with the East line of said Subdivision 10,000 ft

to the N E corner of same;

Thence West with the North line of said Subdivision and the

North line of the Beise Tract 6660 ft to the N W corner of said Beise

Tract;

Thence South with the West line of the Beise Tract, and the

West line of Share 45, 14700 ft to the N E. corner of Share 44;

Thence West with the North line of Share 44, 21850 ft to the S

E corner of the Raymond Hallam Subdivision;

Thence North with the East boundary line of said subdivision

7250 ft to its N E corner;

Thence West with the North boundary line of the Raymond

Hallam Subdivision 11250 ft to the East right-of-way of the St. L.

and B. M. Railroad Co;

Thence in a Northerly direction with the East line of said

right-of-way 7325 ft more or less to the South boundary line of

Rodriguez Ave;

Thence West with the South boundary line of Rodriguez Ave

2540 ft more or less to the West boundary line of First St.;

Thence North with the East line of Farm Lot J. G. and B, 2620

ft to a point in the East line of said Lot B;

Thence East crossing First St and continuing with the South

Boundary line of lots C, D and E 4000 ft to the N W corner of Farm Lot

F, Town of Raymondville;

Thence South with the West Boundary line of Farm Lot F, 1860

ft to the center of Hidalgo Ave;

Thence East with the center of Hidalgo Ave 3280 ft to the N.

W. corner of Lot 3, E. B. Raymond Tract;

Thence South with the West boundary line lot 3, 1320 ft to its

S. W. corner;

Thence East with the South line of Lot 3, 1320 ft to its S.E.

corner;

Thence south with the west line of Lot 5, 1320 ft, to its S.W.

corner;

Thence east with the south line of Lot 5, 1320 ft. to its S. E.

corner;

Thence north with the east line of Lots 5 and 2, 2640 ft to

center of Hidalgo Road;

Thence West with the north line of Lot 2, 1320 ft. to its N. W.

corner;

Thence north with the east line of Lot 13, Block 47, Gulf

Coast Subdivision 1320 ft to its N. E. corner;

Thence East with the south line of Lots 11, 10 and 9, Block

47, 3960 ft. to the S E corner of Lot 9;

Thence south with the west line of Lot 13, Block 48, 1320 ft.

to its S. W. corner;

Thence East with the South line of Lots 13 and 14, Block 48,

2640 ft to the S E. corner of said Lot 14;

Thence north with the East line of Lot 14 and 11, Block 48,

2640 ft to the N E Corner of Lot 11;

Thence west with the north line of Lots 11 and 12; Block 48,

2640 ft to the N W corner of said Lot 12;

Thence north with the east line of Lot 8, Block 47, 1320 ft to

its N E corner;

Thence east with the south line of Lots 4 and 3, Block 48,

2640 ft to the S E corner of said Lot 3;

Thence south with the west line of Lot 7, Block 48, 1320 ft to

the S W corner;

Thence East with the South line of Lot 7, Block 48, 1320 ft to

the S E corner of same;

Thence South with the west line of Lots 9 and 16, Block 48,

2640 ft to the S W corner of Lot 16;

Thence East with the South line of Lot 16, Block 48 and the

south line of Lots 13 and 14, Block 49, 3960 ft to the S. E. corner

of said Lot 14;

Thence north with the east line of Lot 14, Block 49, 1320 ft

to its N E corner;

Thence East with the south line of Lots 10 and 9, Block 49,

2640 ft to the S. E. corner of said Lot 9:

Thence south with the west line of Lot 13, Block 50 1320 ft to

the S W corner of said Lot 13;

Thence east with the south line of Block 50, and Lots 13 and

14, Block 51, 7920 ft to the S E corner of said Lot 14;

Thence north with the east line of Lots 14, 11, 6 and 3, Block

51, and east line of Lots 14, 11, Block 60, 7920 ft. to the N E

corner of said Lot 11;

Thence west with the south line of Lots 6, 5, Block 60, and

Lot 8, Block 61, 3960 ft to the S W corner of said Lot 8;

Thence north with the east line of Lots 7 and 2, Block 61,

2640 ft. to the N E. corner of said Lot 2;

Thence west with the north line of Lots 2, 3 and 4, Block 61,

and north line Blocks 62 and 63 and north line of Lots 1 and 2, Block

64, 16600 ft. to the N. W. corner of said Lot 2;

Thence north with the west line of Lot 7, Block 67, 350 ft. to

the S. E. corner of Lot 15, Subdivision of the El Chapote Tract;

Thence west with the south line of Lots 15, 14, 13, 12 and 11,

of the El Chapote Subdivision, 6250 ft. to the east right of way

line of St. L. B. and M. R. R.;

Thence in a northeasterly direction with said right-of-way

line 2700 ft. to the S. W. corner of Lot 41, the El Chapote

Subdivision;

Thence east with the south line of Lots 41 and 42, 2750 ft. to

the S. E. corner of said Lot 42;

Thence north with the east line of Lots 42 and 49, E1 Chapote

Tract 2640 ft. to the N. E. corner of said Lot 49;

Thence west with the north line of Lots 49, 50, 51 and 52, El

Chapote Tract 4650 ft. to the N. W. corner of said Lot 52;

Thence north with the east line of Lot 1, Block 68, El Chapote

Tract 750 ft. to the N. E. corner of said Lot 1, the S. E. corner of

Share 29 of the San Juan De Carricitos Grant;

Thence west with north boundary line of Chapote League 4150

ft. to the S. W. corner of Share 29;

Thence north with west line of Share 29 the east line of Lots

8 and 1, Block 19, Harding Lindahl Gill Subdivision, 2640 ft. to the

N. E. corner of said Lot 1;

Thence west with the north line of Harding Lindahl Gill

Subdivision 18700 ft. to the N. W. corner of said subdivision;

Thence South with the west line of said Subdivision and west

line of Lot 2, Block 23, Harding Lindahl Subdivision 3940 ft. to an

inner corner in said Lot 2;

Thence west with north boundary line of Lots 2, 3, 4, Block

23, 2275 feet to the most westerly N. W. corner of said Subdivision;

Thence south with west boundary line said Subdivision 10500

feet to a point in the west boundary line of Lot 4, Block 29, said

Subdivision the N. E. corner of Lot 1, Block 1, Narcisso Tract No.

4, Subdivision;

Thence west with north boundary line said Narcisso Tract No.

4, 5700 ft. to its N. W. Corner;

Thence south with west boundary line of Narcisso No. 4, 4750

ft. to intersection with north boundary line San Martin Ranch

Subdivision;

Thence westerly 7100 ft. more or less to a point in the east

line of the Teniente League which point is the S. E. corner of Lot 1,

Block 4, of the S. D. Reynold Subdivision of said Teniente League;

Thence in a northeasterly direction with the east line of the

said Teniente League 12000 ft. more or less to its N. E. corner;

Thence in a westerly direction with the north line of the

Teniente League 15500 ft. more or less to its N. W. corner a point in

the east line of the Stoddard Development Company's Subdivision;

Thence in a northerly direction with the east line of said

Subdivision 3100 ft. more or less to the N. E. corner of same;

Thence in a westerly direction with the north line of

Stoddard Development Company Subdivision 15200 ft. more or less to

the N. W. corner of same;

Thence in a southerly direction with the west boundary line

of the Stoddard Development Company's Subdivision 16300 ft. to the

S. W. corner of same; in the north boundary line of the Missouri

Texas Land and Irrigation Company's Subdivision;

Thence in a westerly direction with the north boundary line

of said M. T. L. & I. Co., Subdivision 18600 ft. to the N. W. corner

of same;

Thence in a southerly direction with the west boundary line

of said Subdivision and the Los Mestenas Grant 10560 ft. to the S.

W. corner of Lot 16, Block 10, of the M. T. L. and I. Co.

Subdivision;

Thence in an easterly direction with the south boundary line

of Block 10, 11, and Lots 13, 14, of Block 12, 9240 ft. to the S. E.

corner of said Lot 14;

Thence in a northerly direction with the east line of Lots 14

and 11, Block 12, 2640 ft. to the N. E. corner of said Lot 11;

Thence in an easterly direction with the south line of Lots 7

and 8, Block 12, 2640 ft. to the S. E. corner of said Lot 8;

Thence in a southerly direction with the west line of Lots 12

and 13, Block 13, and Lots 4 and 5, Block 26, 5280 ft. to the S. W.

corner of said Lot 5;

Thence in a westerly direction with the north line of Lots 9,

10 and 11, Block 27, 4650 ft. to the N. W. corner of Lot 11;

Thence in a southerly direction with the west line of Lots 11

and 14, Block 27, and Lot 2, Block 28, 3300 ft. to the S. W. corner

of said Lot 2;

Thence in an easterly direction with the south line of said

lot 2, 2000 ft. to the S. E. corner of same;

Thence in a southerly direction with the west line of Lots 7

and 10, Block 5, 2436 ft. to a point in the west line of said Lot 10,

being 660 ft. south of its N. W. corner;

Thence in an easterly direction parallel to the north line of

Lots 10 and 12, Block 5, 2275 ft.;

Thence in a southerly direction parallel to the east line of

Lot 12, Block 29, 660 ft. to a point in the north line of Lot 13,

Block 29;

Thence in westerly direction with the north line of Lot 13,

Block 29, 900 ft. to the N. W. corner of said Lot 13;

Thence in a southerly direction with the west line of said Lot

13, Block 29, and the west line Blks. 42 and 43, 8600 ft. to the S.

W. Corner of Block 43;

Thence in an easterly direction with the south line of Block

43 and the south line of Lot 5, Block 44, 6700 ft. to an inner corner

of said Lot 5;

Thence in a southerly direction with the west line of Blocks

44, 55, and 56 and continuing to an inner corner of Lot 4, Block 67,

in all 13750 feet;

Thence in a westerly direction with the north line of Lot 4,

Block 67 and the north line if Block 68, 5900 ft. to the N. W. corner

of said Block 68;

Thence in a southerly direction with the west line of Block

68, 5280 ft. to the S. W. corner of same;

Thence in a westerly direction with the north line of Block

74, and the N. Line of Lots 1 and 2, Block 73, 7920 ft. to the N. W.

corner of said Lot 2;

Thence in a southerly direction with the west line of Lots 2,

7, 10 and 15, Block 73, 5280 ft. to the S. W. corner of said Lot 15;

Thence in a westerly direction with the north line of Lots 3

and 4, Block 90 and the north line of Lot 1, Block 91, 4150 ft. to

the N. W. corner of said Lot 1;

Thence in a southerly direction with the west line of Blocks

91 and 92, 11100 ft. to the S. W. corner of said Block 92;

Thence in an easterly direction with the south line of Blocks

92, 93 and Lots 13 and 14, Block 94, 9240 ft. to the S. E. corner of

said Lot 14;

Thence in a northerly direction with the east line of Lot 14,

11, 6 and 3, Block 94, 5820 ft. to the N. E. corner of said Lot 3;

Thence in an easterly direction with the south line of Lots 15

and 16, Block 89, 2640 ft. to the S. E. corner of said Lot 16;

Thence in a northerly direction with the east line of Lots 16,

9, 8 and 1, of Block 89, 5280 ft. to the N. E. corner of said Lot 1;

Thence in an easterly direction with the south line of Lots 13

and 14, Block 75, 2640 ft. to the S. E. corner of said Lot 14;

Thence in a northerly direction with the east line of Lots 14,

11, 6 and 3, Block 75, 5280 ft. to the N. E. corner of said Lot 3;

Thence in an easterly direction with the south line of Lots 15

and 16, Block 68, and the south line of Blocks 67, 66, 65 and 64,

23760 ft. to the S. E. corner of said Block 64;

Thence in a northerly direction with the east line of Lot 16,

Block 64, 1320 ft. to the N. E. corner of same;

Thence in an easterly direction with the south line of Lots 12

and 11, Block 63, 2640 ft. to the S. E. corner of said Lot 11;

Thence in a southerly direction with the west line of Lots 15,

Block 63, 1320 ft. to the S. W. corner of said Lot 15;

Thence in an easterly direction with the south line of Lots 15

and 16, Block 63, 2640 ft. to the S. E. corner of said Lot 16;

Thence in a southerly direction with the west line of Block

81, 5280 ft. to the S. W. corner of same;

Thence in a westerly direction with the north line of Block

83, 5280 ft. to the N. W. corner of same;

Thence in a southerly direction with the west line of Block

83, 5280 ft. to the S. W. corner of same;

Thence in a westerly direction with the north line of Block

99, 5280 ft. to the N. W. corner of same;

Thence in a southerly direction with the west line of Lot 4,

Block 99, 1320 ft. to the S. W. corner of same;

Thence in an easterly direction with the south line of Lot 4,

Block 99, 1320 ft. to the S. E. corner of same;

Thence in a southerly direction with the west line of Lots 6

and 11, Block 99, 3150 ft. to the S. W. corner of said Lot 11; the

center line of Mile 18 Road;

Thence in an easterly direction with the south line of the

Mestenas Grant the center line of said Mile 18 Road 20100 ft. to the

center line of Base Line Road;

Thence north with the center line of Base Line Road 2500 ft.

to the S. E. corner of Lot 8, Block 120, of the Barr Subdivision of

the Ojo de Agua Grant;

Thence east 4700 ft. to the most westerly S. E. corner of the

Durazno Ranch;

Thence North 800 ft;

Thence East 250 ft;

Thence north 3300 ft;

Thence east 3160 ft;

Thence south 4500 ft. to the S. W. corner Lot 11, Block 118,

of Barr Subdivision;

Thence East 8650 ft. along south line of Barr Subdivision to

the S. E. corner of Lot 9, Block 117 Subdivision;

Thence North 10350 ft. to the N. E. corner of Lot 9, Block 109

of Barr Subdivision;

Thence westerly along the north boundary line of said Barr

Subdivision 20000 ft to the N. W. corner of the Barr Subdivision the

S. W. corner of the Turner Tract;

Thence northerly along the west line of said Turner tract

26600 ft. to the S. W. corner of Lot 13, Block 87, Turner Tract a

Subdivision of the San Juan De Carricitos Grant, the place of

beginning;

Provided, however, that there is excepted from the above, and

here and now excluded therefrom and as forming no part of said

Irrigation District or proposed inclusion into said Irrigation

District the following lands in Hidalgo County, Texas, and out of

the Los Mestenas Grant;

Lot 3, Block 3

40 Acres

Lot 8, Block 4

40 Acres

Lots 3, 4, 5 and 6, Block 5

160 Acres

Lot 4, Block 8

40 Acres

Lots 1 and 8, Block 15

80 Acres

Lots 5, 9, 10, 11, 12, 13, 14 and

15, Block 16

320 Acres

Lots 2, 4, 5, 9, 10, 11, 12, 13 and

and 14, Block 22

360 Acres

Lots 1, 7, 8, 9 and 10, Block 23

200 Acres

Lots 5 and 6, Block 24

80 Acres

Lots 1, 2, 7 and 8, Block 25

160 Acres

Lots 9, 10, 11 and 15, Block 30

160 Acres

Lots 9, 10, 15 and 16, Block 31

160 Acres

Lot 12 and 13, Block 32

80 Acres

Lots 1, 2, 7, 8, 9, 10, 11, 14, 15

and 16, Block 44

453 Acres

Lots 1, 2, 7 and 8, Block 51

160 Acres

Lots 11, 12, 13 and 14, Block 49

160 Acres

Lots 3, 4, 5 and 6, Block 50

160 Acres

10 Acres of Lot 1, West of R. R.

all of Lot 2, Block 54

50 Acres

In the Town of Lasara the following described lands are also

to be excluded:

Blocks 19 to 24, inclusive;

Blocks 33 to 38, inclusive;

Blocks 47 to 52, inclusive;

Blocks 61 to 66, inclusive;

Blocks 74 to 80, inclusive;

Blocks 89 to 95, inclusive;

Blocks 103 to 108, inclusive;

In the Town of Rollo the following described lands are also to

be excluded:

Blocks 1 to 4, inclusive;

Blocks 8 to 49, inclusive;

In the town of Hargill the following lands are also to be

excluded:

Blocks 6, 36 to 41, inclusive;

Blocks 50 to 55, inclusive;

Blocks 64 to 69, inclusive;

Blocks 78 to 83, inclusive;

Blocks 92 to 97, inclusive;

Blocks 106 to 111, inclusive;

Blocks 120 to 125, inclusive;

Blocks 132 to 137, inclusive.

And, further provided, that there is excepted from the above

here and now excluded therefrom and as forming no part of said

Irrigation District or proposed inclusion into said Irrigation

District the following described lands in Willacy County, Texas,

and out of the town of Willamar, Blocks 11 to 19, inclusive, Blocks

23, 25, 26.

And further provided, that there is excepted from the above

and here and now excluded therefrom and as forming no part of said

Irrigation District the following described lands in Willacy

County, Texas.

Out of the Gulf Coast Subdivision of the Raymondville Tract:

Lots 6, 11 and 15, Block 62, containing 120 acres of land;

Lots 7, 8, 9, 10, 13 and 14, Block 64, containing 240 acres of

land;

Lot 9, Block 65, containing 30.3 acres of land;

Sub Lots 1, 2, 5, 6, 7 and 8, of Lot 3 and Lot 4, and the West

15 acres of Lot 5, Block 46, containing 77.2 acres of land;

OUT OF THE RAYMOND HALLAM SUBDIVISION.

Lots 5 and 6, of Block 1, and Lots 5, Block 2, containing 112 acres

of land;

North one-half of Lot 1 and all of Lot 6, in Block 3, containing 60

acres of land;

Lot 4, Block 4, containing 40 acres of land;

OUT OF THE HARDING LINDAHL SUBDIVISION OF SHARE 1.

Lots 11, 12, 13 and 14, Block 25, containing 160 acres of land;

Lots 9, 10, 15 and 16, Block 26, containing 160 acres of land;

Lots 1, 2, 3, 4, 5 and 6, Block 30, containing 240 acres of land;

Lots 1, 2, 7, 8 and N. one-half of Lot 9, Block 31 containing 180

acres of land.

OUT OF NARCISSO TRACT NO. 4.

Lots 7 8, 10, 11, 12, 13, 14 and 15, Block 10;

Lots 1, 2, 7 and 8, Block 5;

Lots 1, 2, 3 and 4, Block 9;

OUT OF THE RAYMONDVILLE TRACT NO. 1.

Lots 4 and 5, of Block 4, containing 65 acres of land;

Lots 11, 13 and 14, Block 6, containing 120 acres of land;

Lots 7, 9, 10, 11 and 12, Block 7, containing 144.8 acres of land;

Lots 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10, south one-half of 14 and all of

15, Block 9, containing 460 acres of land;

OUT OF THE TOWN OF RAYMONDVILLE.

Lots 1 to 12, inclusive, in Block 56;

Lots 1 to 6, inclusive, east one-half of 9, all of 10 and 11, in

Block 58;

Lots 18 to 26, inclusive, in Block 72;

Lots 17 to 22, inclusive, Block 64; and 100 ft. by 150 ft. out of the

N. E. corner of Lot 1, Block N. owned by Dr. McCann.

OUT OF FARM LOT J TOWN OF RAYMONDVILLE.

The west 500 ft. of Lot 1 and 79 ft. By 375 ft. out of the N. E.

corner of Lot 3, being the property owned by E. H. Whitney, both

tracts being out of Farm Lot J. containing 3 acres of land.

OUT OF LYFORD TRACT NO. 2.

Lots 15 and 16, Block 3;

Lots 2 and 5, Block 1;

Lots 4, 5, 10, 11 and 12, in Block 4.

OUT OF JOSE TRACT NO. 5.

Lots 1, 2, 3, 6, 7 and 8, Block 39;

Lots 1, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12; 13; 14; 15 and 16; Block 38.

SECTION 2.10. Section 1, Chapter 306, Acts of the 45th

Legislature, Regular Session, 1937, is amended to read as follows:

Sec. 1. The boundaries of [~~That~~] Dallas County Levee

Improvement District Number Fourteen[~~, composed of territory lying~~

~~in Dallas County, Texas, is hereby created and established as a~~

~~Conservation and Reclamation District, and which District shall~~

~~have such powers of government and the authority to exercise such~~

~~rights, privileges, and functions as are conferred by Article 16,~~

~~Section 59, of the Constitution of the State of Texas, and~~

~~provisions of Chapter 21, of the General Laws passed by the~~

~~Thirty-ninth Legislature of the State of Texas, at is Regular~~

~~Session in 1925, as such General Laws now exist, or may be hereafter~~

~~amended, except as herein otherwise provided; and the boundary~~

~~lines of such District~~] shall be as follows:

FIELD NOTES OF DALLAS COUNTY LEVEE IMPROVEMENT DISTRICT NO. 14,

(PROPOSED, 2/15/1937)

BEGINNING at the Southeast corner of Dallas County Levee

Improvement District No. 2 as REVISED on February 15, 1937, a stake

on the West bank of the Trinity River;

THENCE S. 81 W. with the channel of Ten Mile Creek 9800 feet;

THENCE, S. 74-3/4 W. with said channel 1030 feet to the

Southwest corner of said Dallas County Levee Improvement District

No. 2 as Revised;

THENCE along the hill line as follows:

S. 3-1/4 W. 56 feet;

S. 2-3/4 E. 2757 feet;

S. 37 E. 1936 feet;

S. 17-1/2 E. 1133 feet;

S. 51-1/2 E. 707 feet;

S. 71 E. 498 feet;

S. 9-3/4 E. 984 feet stake in the South line of Dallas County

and the North line of Ellis County;

THENCE East with the South line of said Dallas County and the

North line of said Ellis County 16,330 feet, more or less, to the

West bank of the Trinity River;

THENCE up said River with its meanders to the place of

beginning, containing 2710 acres of land, more or less.

The above field notes are made and verified from the records

of Dallas County, Texas, in conjunction with a survey of the line

described as being in Ten Mile Creek Channel.

FIELD NOTES OF DALLAS COUNTY LEVEE IMPROVEMENT DISTRICT NO. 2.

(REVISED—2/15/1937)

BEGINNING at a stake on the West bank of the Trinity River at

the Southeast corner of Dallas County Levee Improvement District

No. 1;

THENCE S. 60 W. with the south line of said District No. 1, a

distance of 4926 feet to the southwest corner a tract of land

formerly owned by W. H. Hilton and now owned by Bluebird Farms Co.;

THENCE N. 30 W. 818 feet to S. E. corner of a tract of land

formerly owned by G. W. Pierce and now owned by Bluebird Farms Co.;

THENCE S. 60 W. with the south line of said tract 1328 feet to

corner on hill line, same being the Southwest corner of said Dallas

County Levee Improvement District No. 1;

THENCE along said hill line as follows:

S. 13-3/4 W. 1099 Feet;

S. 8-1/2 W. at 433 feet Mrs. Jake Ginsberg's N. W. line

(formerly Jim McKay) at 878 feet stake in road;

S. 30E. 1526 feet;

S. 59-1/2 W. 818 feet;

S. 2-374 W. 980 feet;

S. 6-1/4 W. 748 feet;

S. 32 W. at 175 feet W. F. Rives (formerly W. J. Potter) East

line, at 1079 feet, stake;

S. 50 W. 1403 feet;

S. 2 W. at 350 feet north line of the tract owned by the

Trustees of the Trinity University, at 1119 feet, stake;

S. 41-1/4 E. at 661 feet North line of Mrs. Lena Mae Nokes

tract in all a distance of 1513 feet;

S. 56-1/2 E. 665 feet;

S. 23-1/2 E. 723 feet;

S. 14-3/4 E. at 772 feet north line of tract now owned by the

Federal Land Bank of Houston, in all a distance of 1078 feet;

S. 3-1/4 W. at 314 feet edge of Ten Mile Creek bottom at 570

feet stake for the S. W. corner of Dallas County Levee Improvement

District No. 2, as REVISED, in Ten Mile Creek Channel;

THENCE with said Ten Mile Creek channel as follows:

N. 74-3/4 E. 1030 feet;

N. 81 E. 9800 feet to the West bank of the Trinity River,

stake for the Southeast corner of DALLAS COUNTY LEVEE IMPROVEMENT

DISTRICT No. 2 as REVISED.

THENCE up said Trinity River with the West bank of same to the

place of beginning, containing 2400 acres of land, more or less.

The above Field notes are made and verified from the records

of Dallas County, Texas, in conjunction with a survey of the line

described as being in Ten Mile Creek Channel.

SECTION 2.11. Section 1, Chapter 554, Acts of the 59th

Legislature, Regular Session, 1965, is amended to read as follows:

Sec. 1. The [~~Under and pursuant to the provisions of Section~~

~~59 of Article XVI, Constitution of Texas, a conservation and~~

~~reclamation district is hereby created and incorporated in Harris~~

~~County, Texas, to be known as "Crosby Municipal Utility District of~~

~~Harris County, Texas," hereinafter referred to as the "District,"~~

~~and the~~] boundaries of the Crosby Municipal Utility District of

Harris County, Texas, [~~said District~~] shall be as follows:

BEGINNING at the southwestern corner of the Lewis A. Levy

Survey, Abstract No. 517, Harris County, Texas, same being a point

on the northern line of the Humphrey Jackson League, Abstract No.

37;

THENCE in an easterly direction along said northern line of

said Humphrey Jackson League, being also the southern line of said

Lewis A. Levy Survey, and a projection easterly thereof to an

intersection with the southwestern line of the San Jacinto River

Authority canal right-of-way in the B. F. Tankersley Survey,

Abstract No. 770;

THENCE in a southeasterly direction along said southwestern

line of the San Jacinto River Authority canal right-of-way to the

eastern line of the Adolph Erlund 59.24 acre tract;

THENCE in a southerly direction along said eastern line of

said 59.24 acre tract, being also the western line of a 60.58 acre

tract, to the northwestern line of the T & NO Railroad right-of-way;

THENCE in a northeasterly direction along said northwestern

line of said T & NO Railroad right-of-way to an intersection with

the projection northerly of the eastern line of the W. H. Miller

2.15 acre tract;

THENCE in a southerly direction along said projection

northerly of said Miller 2.15 acre tract and said eastern line of

said 2.15 acre tract, being also the western line of the F. R.

Curtis 6.65 acre tract, to the southeastern corner of said 2.15 acre

tract on the south line of said B. F. Tankersley Survey, being also

the north line of the John Quinlan Survey, Abstract No. 641;

THENCE in an easterly direction along said south line of the

B. F. Tankersley Survey, being also the north line of said John

Quinlan Survey, to its intersection with the western line of the

aforementioned San Jacinto River Authority canal right-of-way;

THENCE in a generally southerly and southwesterly direction

along said western line of the San Jacinto River Authority canal

right-of-way to its intersection with a line parallel to and 200

feet perpendicular northerly from the northern right-of-way line of

the road along the southern line of the Robert Sebesta 38.68 acre

tract in the Thos. Toby Survey, Abstract No. 791;

THENCE in an easterly direction along said line parallel to

and 200 feet perpendicular northerly from the northern right-of-way

line of the road along the southern line of the said Robert Sebesta

38.68 acre tract to an intersection with the northwestern line of

the right-of-way of U. S. Highway No. 90;

THENCE in a southwesterly direction along said northwestern

right-of-way line of U. S. Highway No. 90 to its intersection with

the northern line of the Victor Adam 12.02 acre tract;

THENCE in a westerly direction along said northern line of

the Victor Adam 12.02 acre tract and its projection westerly to the

western line of the aforementioned San Jacinto River Authority

canal right-of-way, being also the eastern line of a 1.97 acre

tract;

THENCE in a southerly direction along said western line of

the San Jacinto River Authority canal right-of-way to its

intersection with the southern line of said 1.97 acre tract;

THENCE in a westerly direction along said southern line of

said 1.97 acre tract and its projection westerly to the western

right-of-way line of the Crosby-Lynchburg Road;

THENCE in a northerly direction along said western

right-of-way line of the Crosby-Lynchburg Road to a point 200 feet

perpendicular southerly from the southern line of the Ed Ulrich

44.70 acre tract;

THENCE in a westerly direction with a line parallel to and 200

feet perpendicular southerly from said south line of the Ed Ulrich

44.70 acre tract for a distance of 500 feet to a point for corner;

THENCE in a northerly direction along a line parallel to and

500 feet perpendicular westerly from the western right-of-way line

of said Crosby-Lynchburg Road to an intersection with the northern

line of the B. J. Kristynik 37.30 acre tract, being also the

southern line of Crosby Townsite;

THENCE in a generally westerly direction along said northern

line of said B. J. Kristynik 37.30 acre tract, being also the

southern line of Crosby Townsite, to an intersection with the

southeastern line of the T & NO Railroad right-of-way;

THENCE in a northwesterly direction perpendicular or at right

angles to the centerline of said T & NO Railroad right-of-way to the

northwestern line of said T & NO Railroad right-of-way;

THENCE in a northeasterly direction along said northwestern

line of said T & NO Railroad right-of-way to the southern corner of

Block Eleven (11) of said Crosby Townsite on the northeastern line

of Avenue "C";

THENCE in a northwesterly direction along the southwestern

line of said Block Eleven (11) and Block Ten (10) of Crosby

Townsite, being also the northeastern line of Avenue "C", to the

western corner of said Block Ten (10) on the southeastern line of

First Street;

THENCE in a northeasterly direction along the northwestern

line of said Block Ten (10) to the most northerly northwestern

corner of said Block Ten (10) on the northern line of Crosby

Townsite;

THENCE in a westerly direction along said northern line of

Crosby Townsite to a point for corner at the intersection of said

northern line of Crosby Townsite with a line which is parallel to

and southwesterly from the westerly right-of-way line of

Farm-To-Market Road No. 2100 and passes through the southwestern

corner of the aforementioned Lewis A. Levy Survey;

THENCE in a northwesterly direction along said line parallel

to and southwesterly from said westerly right-of-way line of

Farm-To-Market Road No. 2100 to the southwestern corner of said

Lewis A. Levy Survey on the north line of the Humphrey Jackson

League, Abstract No. 37, the place of beginning, and containing 700

acres of land, more or less.

ARTICLE 3. REPEALER

SECTION 3.01. The following statutes are repealed:

(1) Chapter 734, Acts of the 72nd Legislature, Regular

Session, 1991 (Article 4477-7k, Vernon's Texas Civil Statutes);

(2) Chapter 643, Acts of the 59th Legislature, Regular

Session, 1965;

(3) Chapter 375, Acts of the 69th Legislature, Regular

Session, 1985;

(4) Chapter 726, Acts of the 65th Legislature, Regular

Session, 1977;

(5) Chapter 647, Acts of the 59th Legislature, Regular

Session, 1965;

(6) Chapter 103, Acts of the 57th Legislature, Regular

Session, 1961;

(7) Chapter 262, Acts of the 60th Legislature, Regular

Session, 1967;

(8) Chapter 12, Acts of the 70th Legislature, 2nd

Called Session, 1987;

(9) Chapter 877, Acts of the 62nd Legislature, Regular

Session, 1971;

(10) Chapter 515, Acts of the 69th Legislature,

Regular Session, 1985;

(11) Chapter 128, Acts of the 66th Legislature,

Regular Session, 1979;

(12) Sections 2, 3, 3A, 4, 5, 6, 7, 8, 9, 10, 11, 12,

13, 14, 15, 16, 17, 18, and 19, Chapter 539, Acts of the 63rd

Legislature, Regular Session, 1973;

(13) Chapter 59, Acts of the 62nd Legislature, Regular

Session, 1971;

(14) Chapter 699, Acts of the 61st Legislature,

Regular Session, 1969;

(15) Chapter 444, Acts of the 61st Legislature,

Regular Session, 1969;

(16) Sections 1.01, 1.02, 2.01, 2.02, 3.01, 3.02,

3.03, 3.04, 3.05, 3.06, 3.07, 3.08, 4.01, 4.02, 4.03, 4.04, 4.05,

4.06, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16,

5.01, 5.02, 5.03, 5.04, 5.05, 5.06, 5.07, 5.08, 5.09, 5.10, 5.11,

5.12, 5.13, 5.14, 5.15, 5.16, 5.17, 6.01, 6.02, 6.03, 6.04, 6.05,

6.06, 6.07, 6.08, 6.09, 6.10, 7.01, 7.02, 7.03, 7.04, 7.05, 7.06,

7.07, 7.08, 7.09, 7.10, 7.11, 8.01, 8.02, 8.03, 8.04, 9.01, 9.02,

9.03, 9.04, 9.05, 9.06, 9.07, 9.08, and 10.01, Chapter 221, Acts of

the 71st Legislature, Regular Session, 1989;

(17) Chapter 550, Acts of the 71st Legislature,

Regular Session, 1989;

(18) Chapter 513, Acts of the 63rd Legislature,

Regular Session, 1973;

(19) Chapter 73, Acts of the 64th Legislature, Regular

Session, 1975;

(20) Chapter 448, Acts of the 63rd Legislature,

Regular Session, 1973;

(21) Chapter 680, Acts of the 68th Legislature,

Regular Session, 1983;

(22) Sections 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,

14, 15, 16, and 17, Chapter 668, Acts of the 64th Legislature,

Regular Session, 1975;

(23) Chapter 220, Acts of the 71st Legislature,

Regular Session, 1989;

(24) Chapter 502, Acts of the 60th Legislature,

Regular Session, 1967;

(25) Chapter 191, Acts of the 64th Legislature,

Regular Session, 1975;

(26) Chapter 455, Acts of the 62nd Legislature,

Regular Session, 1971;

(27) Chapter 42, Acts of the 70th Legislature, 2nd

Called Session, 1987;

(28) Sections 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,

14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25, Chapter 561, Acts

of the 63rd Legislature, Regular Session, 1973;

(29) Chapter 214, Acts of the 66th Legislature,

Regular Session, 1979;

(30) Chapter 424, Acts of the 66th Legislature,

Regular Session, 1979;

(31) Chapter 528, Acts of the 60th Legislature,

Regular Session, 1967;

(32) Sections 1A, 2, 3, 3A, 4, 4A, 4B, 4C, 5, 6, 7, 8,

9, 10, 11, 12, 13, 14, 15, 16, and 17, Chapter 666, Acts of the 64th

Legislature, Regular Session, 1975;

(33) Chapter 852, Acts of the 62nd Legislature,

Regular Session, 1971;

(34) Chapter 43, Acts of the 57th Legislature, 1st

Called Session, 1961;

(35) Chapter 125, Acts of the 60th Legislature,

Regular Session, 1967;

(36) Chapter 77, Acts of the 71st Legislature, Regular

Session, 1989;

(37) Chapter 275, Acts of the 66th Legislature,

Regular Session, 1979;

(38) Chapter 56, Acts of the 58th Legislature, Regular

Session, 1963;

(39) Chapter 591, Acts of the 61st Legislature,

Regular Session, 1969;

(40) Chapter 873, Acts of the 62nd Legislature,

Regular Session, 1971:

(41) Chapter 241, Acts of the 60th Legislature,

Regular Session, 1967;

(42) Chapter 16, Acts of the 64th Legislature, Regular

Session, 1975;

(43) Chapter 58, Acts of the 63th Legislature, Regular

Session, 1973;

(44) Chapter 484, Acts of the 60th Legislature,

Regular Session, 1967;

(45) Chapter 66, Acts of the 60th Legislature, Regular

Session, 1967;

(46) Chapter 184, Acts of the 60th Legislature,

Regular Session, 1967;

(47) Chapter 41, Acts of the 59th Legislature, Regular

Session, 1965;

(48) Chapter 51, Acts of the 71st Legislature, Regular

Session, 1989;

(49) Chapter 665, Acts of the 64th Legislature,

Regular Session, 1975;

(50) Chapter 466, Acts of the 60th Legislature,

Regular Session, 1967;

(51) Chapter 465, Acts of the 59th Legislature,

Regular Session, 1965;

(52) Chapter 546, Acts of the 71st Legislature,

Regular Session, 1989;

(53) Sections 1.01, 1.02, 2.01, 3.01, 3.02, 3.03,

3.04, 3.05, 3.06, 3.07, 3.08, 4.01, 4.02, 4.03, 4.04, 4.05, 4.06,

4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16, 5.01,

5.02, 5.03, 5.04, 5.05, 5.06, 5.07, 5.08, 5.09, 5.10, 5.11, 5.12,

5.13, 5.14, 5.15, 6.01, 6.02, 6.03, 6.04, 6.05, 6.06, 6.07, 6.08,

6.09, 6.10, 7.01, 7.02, 7.03, 7.04, 7.05, 7.06, 7.07, 7.08, 7.09,

7.10, 7.11, 8.01, 8.02, 8.03, 8.04, 8.05, and 9.01, Chapter 45, Acts

of the 71st Legislature, Regular Session, 1989;

(54) Chapter 872, Acts of the 62nd Legislature,

Regular Session, 1971;

(55) Chapter 1316, Acts of the 75th Legislature,

Regular Session, 1997;

(56) Sections 1a, 1b, 2, 3, 4, 4b, and 4c, Chapter 55,

Acts of the 40th Legislature, 1st Called Session, 1927;

(57) Chapter 195, Acts of the 53rd Legislature,

Regular Session, 1953;

(58) Chapter 715, Acts of the 59th Legislature,

Regular Session, 1965;

(59) Sections 2, 3, 4, 5, 6, 7, 7A, 8, 9, 10, 11, and

12, Chapter 36, Acts of the 41st Legislature, 1st Called Session,

1929;

(60) Sections 1A, 2, 3, 4, 5, 6, 6A, 6B, 6C, 6D, 7, and

8, Chapter 203, Acts of the 57th Legislature, Regular Session,

1961;

(61) Sections 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, and 12,

Chapter 6, Special Laws, Acts of the 41st Legislature, 4th Called

Session, 1930;

(62) Chapter 775, Acts of the 69th Legislature,

Regular Session, 1985;

(63) Chapter 465, Acts of the 51st Legislature,

Regular Session, 1949;

(64) Chapter 713, Acts of the 65th Legislature,

Regular Session, 1977;

(65) Chapter 432, Acts of the 66th Legislature,

Regular Session, 1979;

(66) Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,

14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25, Chapter 435, Acts

of the 66th Legislature, Regular Session, 1979;

(67) Sections 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,

and 14, Chapter 1321, Acts of the 76th Legislature, Regular

Session, 1999;

(68) Sections 1.01, 1.02, 1.03, 1.05, 1.06, 1.07,

1.08, 1.09, 2.01, 2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.09,

2.10, 2.11, 2.12, 2.13, 2.14, 2.15, 2.16, 2.17, 2.18, 3.01, 3.02,

3.03, 3.04, 3.05, 3.06, 3.07, 3.08, 3.09, 3.10, 3.11, 3.12, 3.13,

3.14, 3.15, 4.01, 4.02, 4.03, 5.01, 5.02, 5.03, 5.04, 5.05, 5.06,

6.01, 6.02, 7.01, and 7.02, Chapter 1273, Acts of the 75th

Legislature, Regular Session, 1997;

(69) Sections 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,

14, 15, and 16, Chapter 166, Acts of the 41st Legislature, Regular

Session, 1929;

(70) Sections 2, 3, 4, 5, 6, 7, 8, 9, 10, and 11,

Chapter 306, Acts of the 45th Legislature, Regular Session, 1937;

(71) Chapter 359, Acts of the 72nd Legislature,

Regular Session, 1989;

(72) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 648,

Acts of the 62nd Legislature, Regular Session, 1971;

(73) Sections 1, 2, 3, 4, 5, 7, 8, 9, and 10, Chapter

621, Acts of the 63rd Legislature, Regular Session, 1973;

(74) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 559,

Acts of the 62nd Legislature, Regular Session, 1971;

(75) Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,

14, 15, 16, 17, 18, 19, 20, 21, 22, and 23, Chapter 633, Acts of the

60th Legislature, Regular Session, 1967;

(76) Sections 1, 3, 4, 5, 6, 7, 8, and 9, Chapter 421,

Acts of the 66th Legislature, Regular Session, 1979;

(77) Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter

700, Acts of the 74th Legislature, Regular Session, 1995;

(78) Sections 1, 2(b), 2(c), 3, 4, 5, 6, 7, 8, and 9,

Chapter 722, Acts of the 68th Legislature, Regular Session, 1983;

(79) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 584,

Acts of the 62nd Legislature, Regular Session, 1971;

(80) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 700,

Acts of the 62nd Legislature, Regular Session, 1971;

(81) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 703,

Acts of the 62nd Legislature, Regular Session, 1971;

(82) Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,

14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25, Chapter 270, Acts

of the 61st Legislature, Regular Session, 1969;

(83) Sections 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,

14, 15, and 16, Chapter 744, Acts of the 73rd Legislature, Regular

Session, 1993;

(84) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 347,

Acts of the 62nd Legislature, Regular Session, 1971;

(85) Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter

184, Acts of the 69th Legislature, Regular Session, 1985;

(86) Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter

185, Acts of the 69th Legislature, Regular Session, 1985;

(87) Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter

186, Acts of the 69th Legislature, Regular Session, 1985;

(88) Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter

188, Acts of the 69th Legislature, Regular Session, 1985;

(89) Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter

189, Acts of the 69th Legislature, Regular Session, 1985;

(90) Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter

190, Acts of the 69th Legislature, Regular Session, 1985;

(91) Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter

191, Acts of the 69th Legislature, Regular Session, 1985;

(92) Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter

192, Acts of the 69th Legislature, Regular Session, 1985;

(93) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 505,

Acts of the 62nd Legislature, Regular Session, 1971;

(94) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 686,

Acts of the 62nd Legislature, Regular Session, 1971;

(95) Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,

14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25, Chapter 146, Acts

of the 61st Legislature, Regular Session, 1969;

(96) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 195,

Acts of the 62nd Legislature, Regular Session, 1971;

(97) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 654,

Acts of the 62nd Legislature, Regular Session, 1971;

(98) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 576,

Acts of the 62nd Legislature, Regular Session, 1971;

(99) Chapter 705, Acts of the 62nd Legislature,

Regular Session, 1971;

(100) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 697,

Acts of the 62nd Legislature, Regular Session, 1971;

(101) Sections 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, and 12,

Chapter 1385, Acts of the 77th Legislature, Regular Session, 2001;

(102) Sections 1, 2, 4, 5, 6, 7, 8, 9, 10, and 11,

Chapter 756, Acts of the 75th Legislature, Regular Session, 1997;

(103) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 474,

Acts of the 62nd Legislature, Regular Session, 1971;

(104) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 104,

Acts of the 67th Legislature, Regular Session, 1981;

(105) Sections 1, 3, 4, 5, 6, 7, and 8, Chapter 704,

Acts of the 68th Legislature, Regular Session, 1983;

(106) Chapter 950, Acts of the 69th Legislature,

Regular Session, 1985;

(107) Chapter 12, Acts of the 57th Legislature, 3rd

Called Session, 1962;

(108) Sections 1, 3, 4, 5, 6, 7, 7-A, 8, 9, 10, 11, 12,

13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, and 26, Chapter

506, Acts of the 54th Legislature, Regular Session, 1955;

(109) Sections 2, 3, 4, 5, 6, 7, 8, 9, and 10, Chapter

554, Acts of the 59th Legislature, Regular Session, 1965; and

(110) Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,

14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25, Chapter 751, Acts

of the 61st Legislature, Regular Session, 1969.

ARTICLE 4. GENERAL MATTERS

SECTION 4.01. LEGISLATIVE INTENT OF NO SUBSTANTIVE CHANGE.

This Act is enacted under Section 43, Article III, Texas

Constitution. This Act is intended as a codification only, and no

substantive change in the law is intended by this Act. This Act

does not increase or decrease the territory of any special district

of the state as those boundaries exist on the effective date of this

Act.

SECTION 4.02. PRESERVATION OF VALIDATION MADE BY PREVIOUS

LAW. (a) The repeal of a law, including a validating law, by this

Act does not remove, void, or otherwise affect in any manner a

validation under the repealed law. The validation is preserved and

continues to have the same effect that it would have if the law were

not repealed.

(b) Subsection (a) of this section does not diminish the

saving provisions prescribed by Section 311.031, Government Code.

SECTION 4.03. EFFECTIVE DATE. This Act takes effect April

1, 2009.

____________________________________________________________

President of the SenateSpeaker of the House

I certify that H.B. No. 3166 was passed by the House on April

12, 2007, by the following vote: Yeas 142, Nays 1, 1 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 3166 was passed by the Senate on May

15, 2007, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor