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
	(C)  a water or other special district 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;
	(C)  the operation of existing industries; and
	(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.
	(c)  The district is a public entity performing an essential
	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.
	(c)  Any person may testify at the hearing for or against
	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.
	(c)  If the district issued bonds or other long-term debt
	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.
	(c)  The election ballots shall be printed to provide for
	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.
	(c)  If the district is composed of two counties, the
	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.
	(c)  If a member of a commissioners court or a municipal
	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.
	(c)  The board may discharge the general manager by a
	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.
	(c)  If the district, in the exercise of the power of eminent
	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.
	(c)  If any district activity on the land causes damage to
	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.
	(c)  The bond shall be deposited in the district's
	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.
	(c)  On completion of the contracted work, the engineers,
	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.
	(c)  To provide a basis for determining progress payments,
	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.
	(c)  To amend the standards, the district must follow the
	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.
	(c)  A rule adopted under this section must be:
	(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.
	(c)  The board shall consult with the commission before the
	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.
	(c)  The district may not spend money for an expense not
	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.
	(c)  Before the district deposits money in a bank in an
	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).
	(c)  A payment may be made from the proceeds of district
	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.
	(c)  At an election to authorize bonds, the ballot must be
	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.
	(c)  Directors serve staggered 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.
	(c)  A person who is elected from a single-member subdistrict
	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.
	(c)  Each director's bond and constitutional oath or
	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.
	(c)  The board may contract or otherwise cooperate with
	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.
	(c)  In a condemnation proceeding, the district is not
	required to:
	(1)  pay in advance or provide a bond or other security
	for costs in the trial court; 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.
	(c)  Any person who owns taxable property in the district and
	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.
	(c)  The order calling an election must include:
	(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.
	(c)  The secretary shall:
	(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.
	(c)  If there is an emergency or urgent public necessity,
	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.
	(c)  The board may remove any employee.
	(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.
	(c)  As the board considers advisable, the board may invest
	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.
	(c)  The board shall determine the type, number, and location
	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.
	(c)  The board shall declare the results of a district
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  A contract for construction or the purchase of
	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;
	or
	(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.
	(c)  For each leased building or other facility, the board
	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.
	(c)  If the inquiry under Subsection (a) discloses that the
	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.
	(c)  All deposits shall be secured in the manner provided for
	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.
	(c)  The board may not use the power granted by this section
	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.
	(c)  The board shall set for the district tax
	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.
	(c)  The president has the same right to vote as any other
	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.
	(c)  The chief executive officer is entitled to the
	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.
	(c)  The board may lease district hospital facilities to
	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.
	(c)  If the chief executive officer determines that the
	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.
	(c)  The board must approve the budget.  (Acts 59th Leg.,
	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.
	(c)  To the extent that money in a depository bank is not
	insured by the Federal Deposit Insurance Corporation, the money
	must be secured in the manner provided by law for the security of
	county funds.
	(d)  Membership on the district's board of an officer or
	director of a bank 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.
	(c)  A loan for which taxes or bonds are pledged must mature
	not later than the first anniversary of the date the loan is made. A
	loan for which district revenue is pledged must mature not later
	than the fifth anniversary of the date the loan is made.  (Acts 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.
	(c)  A loan for which taxes or bonds are pledged must mature
	not later than the first anniversary of the date the loan is made. A
	loan for which district revenue is pledged must mature not later
	than the fifth anniversary of the date the loan is made.
	(d)  The board may not spend money obtained from a loan under
	this section for any purpose other than:
	(1)  the purpose for which the board declared an
	emergency; and
	(2)  if district taxes or bonds are pledged to pay the
	loan, the purpose for which the pledged taxes were imposed or the
	pledged bonds were authorized.  (Acts 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.
	(c)  Except as otherwise provided by this chapter, the
	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.
	(c)  The bonds may be additionally secured by a mortgage or
	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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  In setting the tax rate, the board shall consider the
	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.
	(c)  The board shall order an election if the board receives
	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;
	or
	(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.
	(c)  If Subsections (a)(1) and (2) do not apply and the board
	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.
	(c)  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 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.
	(c)  A taxpayer may request that the taxpayer's share of
	surplus tax money be credited to the taxpayer's county taxes. If a
	taxpayer requests the credit, the board shall direct the 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.
	(c)  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.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.
	(c)  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., 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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  The board may lease hospital facilities for the
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If it is determined that 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 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.
	(c)  The corporation may invest the corporation's money in
	any manner in which the district may invest the district's money,
	including investing money as authorized by Chapter 2256, Government
	Code.
	(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.
	(c)  Any district taxpayer is entitled to:
	(1)  appear at the time and place designated in the
	notice; and
	(2)  be heard regarding any item included in the
	proposed budget. (Acts 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.
	(c)  A loan for which taxes or bonds are pledged must mature
	not later than the first anniversary of the date the loan is made. A
	loan for which district revenue is pledged must mature not later
	than the fifth anniversary of the date the loan is made. (Acts 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.
	(c)  The order calling the election must specify:
	(1)  the location of the polling places;
	(2)  the presiding election officers;
	(3)  the purpose of the bond issuance;
	(4)  the amount of the bonds to be authorized;
	(5)  the maximum interest rate of the bonds; and
	(6)  the maximum maturity of the bonds.
	(d)  Notice of a bond election shall be given by publishing a
	substantial copy of the order calling the election in a newspaper of
	general circulation in 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.
	(c)  The bonds may be additionally secured by a mortgage or
	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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  The board shall order an election if the board receives
	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.
	(c)  The sale or transfer of the district's assets and
	liabilities must satisfy the debt and bond obligations of the
	district in a manner that protects the interests of district
	residents, including the residents' collective property rights in
	the district's assets.
	(d)  The district may 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.
	(c)  A taxpayer may request that the taxpayer's share of
	surplus tax money be credited to the taxpayer's county taxes. If a
	taxpayer requests the credit, the board shall direct the 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.
	(c)  The election order must state the time, place, and
	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.
	(c)  If the president is absent or fails or declines to act,
	the vice president shall perform the president's duties and
	exercise the president's powers under this chapter. (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.
	(c)  The district administrator and any assistant
	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.
	(c)  If the district administrator determines that the
	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.
	(c)  The board must approve the budget.  (Acts 60th Leg.,
	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.
	(c)  To the extent that money in a depository bank is not
	insured by the Federal Deposit Insurance Corporation, the money
	must be secured in the manner provided by law for the security of
	county funds.
	(d)  Membership on the district's board of an officer or
	director of a bank does not disqualify the bank from being selected
	as a depository 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.
	(c)  The bond election order must specify:
	(1)  the date of the election;
	(2)  the location of the polling places;
	(3)  the presiding election officers;
	(4)  the amount of the bonds to be authorized;
	(5)  the maximum maturity of the bonds; and
	(6)  the maximum interest rate of the bonds.  (Acts 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.
	(c)  A cost described by Subsection (b)(2) is a maintenance
	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.
	(c)  An election shall be held on the uniform election day in
	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.
	(c)  Each director's bond shall be kept in the district's
	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.
	(c)  Each officer of the board serves for a term of one year.
	(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.
	(c)  Before assuming the duties of district administrator,
	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),
	(c) (part), (d).)
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  The board may lease hospital facilities for the
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  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.
	(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.
	(c)  On behalf of the district, the board may contract with
	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.
	(c)  Any district resident is entitled to be 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.
	(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.
	(c)  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 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.
	(c)  A loan for which taxes or bonds are pledged must mature
	not later than the first anniversary of the date the loan is made. A
	loan for which district revenue is pledged must mature not later
	than the fifth anniversary of the date the loan is made.
	(d)  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.
	(c)  The order calling the election must specify:
	(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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner provided by
	Sections 264.042, 264.043, 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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  In setting the tax rate, the board shall consider income
	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.
	(c)  The board shall order an election if the board receives
	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.
	(c)  On entry of an order under Subsection (b)(2), the
	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.
	(c)  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. 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.
	(c)  The district administrator and any assistant
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  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.
	(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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the district administrator determines that the
	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.
	(c)  Any property taxpayer of the district is entitled to be
	present and participate at the hearing in accordance with the rules
	of decorum and procedures prescribed by the board.
	(d)  At the conclusion of the hearing, the board shall 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.
	(c)  This chapter, including Subsection (b), does not limit
	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.
	(c)  Notice of a bond election shall be given as provided by
	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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner and in accordance
	with the procedures and requirements prescribed by Sections
	264.042, 264.043, 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.
	(c)  The bond shall be kept in the permanent records of the
	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.
	(c)  Each officer of the board serves for a term of one year.
	(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.
	(c)  Before assuming the duties of district administrator,
	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),
	(c) (part), (d).)
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  The board may sell, lease, or otherwise dispose of
	property, including facilities or equipment, for the district.
	Sale or other disposal under this subsection must be at a public
	sale and at a price and on 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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  On determining that the patient or a relative legally
	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.
	(c)  On behalf of the district, the board may contract with
	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.
	(c)  Any district resident is entitled to be 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 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.
	(c)  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 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.
	(c)  A loan for which taxes or bonds are pledged must mature
	not later than the first anniversary of the date the loan is made. A
	loan for which district revenue is pledged must mature not later
	than the fifth anniversary of the date the loan is made.
	(d)  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.
	(c)  The order calling the election must specify:
	(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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner provided by
	Sections 264.042, 264.043, 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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  In setting the tax rate, the board shall consider the
	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).
	(c)  A successor director is appointed in the same manner as
	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.
	(c)  Each director's bond and constitutional oath or
	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.
	(c)  The board shall fill a vacancy in a board office for the
	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.
	(c)  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. 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.
	(c)  The board may delegate to the district administrator the
	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
	(C)  administering the system for hospital
	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.
	(c)  The board may:
	(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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the district administrator determines that the
	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.
	(c)  The corporation may invest the corporation's money in
	any manner in which the district may invest the district's money,
	including investing money as authorized by Chapter 2256, Government
	Code.
	(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.
	(c)  Any district resident is entitled to be 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 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.
	(c)  This chapter, including Subsection (b), does not limit
	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.
	(c)  Notice of a bond election shall be given as provided by
	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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner and in accordance
	with the procedures and requirements prescribed by Sections
	264.042, 264.043, 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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  The board shall set for the district tax
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If an agent designated by the district determines that
	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.
	(c)  Any district resident is entitled to:
	(1)  appear at the time and place designated in the
	notice; and
	(2)  be heard regarding any item included in the
	proposed budget.  (Acts 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.
	(c)  All district money shall be secured in the manner
	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.
	(c)  The order calling the election must specify:
	(1)  the location of the polling places;
	(2)  the presiding election officers;
	(3)  the purpose of the bond issuance;
	(4)  the amount of the bonds to be authorized; 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.
	(c)  An election shall be held on the uniform election date
	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.
	(c)  The board shall fill a vacancy in a board office for the
	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.
	(c)  The district administrator and any assistant
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  The district may acquire or lease equipment for use in
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the district administrator determines that the
	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.
	(c)  The corporation may invest the corporation's money in
	any manner in which the district may invest the district's money,
	including investing money as authorized by Chapter 2256, Government
	Code.
	(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.
	(c)  If the board receives two or more petitions for
	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.
	(c)  The election order 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 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.
	(c)  An election may not be held under this subchapter
	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.
	(c)  Any property taxpayer of the district is entitled to be
	present and participate at the hearing in accordance with the rules
	of decorum and procedures prescribed by the board.
	(d)  At the conclusion of the hearing, the board shall 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.
	(c)  This chapter, including Subsection (b), does not limit
	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.
	(c)  Notice of a bond election shall be given as provided by
	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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner and in accordance
	with the procedures and requirements prescribed by Sections
	264.042, 264.043, 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.
	(c)  An election held under this section must be ordered and
	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.
	(c)  The board shall set for the district tax
	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.
	(c)  The board shall order an election if the board receives
	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.
	(c)  A candidate may run for only one position at each
	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.
	(c)  The board shall fill a vacancy in a board office for the
	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.
	(c)  The district administrator and any assistant
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  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.
	(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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the district administrator determines that the
	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.
	(c)  Any property taxpayer of the district is entitled to be
	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.
	(c)  This chapter, including Subsection (b), does not limit
	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.
	(c)  Notice of a bond election shall be given as provided by
	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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be 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.
	(c)  The board shall set for the district tax
	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.
	(c)  The board shall fill a vacancy in a board office for the
	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.
	(c)  The district administrator and any assistant
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  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.
	(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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the district administrator determines that the
	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.
	(c)  Any property taxpayer of the district is entitled to be
	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.
	(c)  This chapter, including Subsection (b), does not limit
	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.
	(c)  Notice of a bond election shall be given as provided by
	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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner and in accordance
	with the procedures and requirements prescribed by Sections
	264.042, 264.043, 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.
	(c)  The board shall set for the district tax
	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),
	(c) (part).)
	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.
	(c)  Each officer of the board serves for a term of one year.
	(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.
	(c)  Before assuming the duties of district administrator,
	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),
	(c) (part), (d).)
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  The board may lease hospital facilities for the district
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  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 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.
	(c)  On behalf of the district, the board may contract with
	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.
	(c)  Any district resident is entitled to be 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.
	(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.
	(c)  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 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.
	(c)  A loan for which tax revenue or bonds are pledged must
	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.
	(c)  A loan for which tax revenue or bonds are pledged must
	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.
	(c)  The order calling the election must specify:
	(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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner provided by
	Sections 264.042, 264.043, 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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  In setting the tax rate, the board shall consider the
	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.
	(c)  The board shall order an election if the board receives
	a petition requesting an election that is signed by at least 15
	percent of the registered 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.
	(c)  The sale or transfer of the district's assets and
	liabilities must satisfy the debt and bond obligations of the
	district in a manner that protects the interests of 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.
	(c)  A taxpayer may request that the taxpayer's share of
	surplus tax money be credited to the taxpayer's county taxes. If a
	taxpayer requests the credit, the board shall direct the 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.
	(c)  Directors serve staggered 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 71st Leg., R.S., Ch. 550, Secs. 4.01(a), 4.03(a),
	(c) (part), and (d).)
	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.
	(c)  A district employee may not serve as a director. (Acts
	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.
	(c)  The board may pay for a director's bond or pay for a
	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.
	(c)  Each officer of the board serves for a term of one year.
	(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.
	(c) Before assuming the duties of district administrator,
	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.
	(c)  The board may lease hospital facilities for the
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  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 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.
	(c)  The board may contract with 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.
	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.
	(c)  This chapter may not be construed to waive the
	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.
	(c)  Any district resident is entitled to be 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.
	(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.
	(c)  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 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.
	(c)  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. 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.
	(c)  The order calling the election must specify:
	(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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner provided by
	Sections 264.042, 264.043, 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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  In setting the tax rate, the board shall consider the
	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."
	(c)  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 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.
	(c)  The board shall fill a vacancy in a board office for the
	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.
	(c)  The district administrator and any assistant
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  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.
	(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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the district administrator determines that the
	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.
	(c)  Any district resident is entitled to be 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 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.
	(c)  This chapter, including Subsection (b), does not limit
	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.
	(c)  Notice of a bond election shall be given as provided by
	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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner and in accordance
	with the procedures and requirements prescribed by Sections
	264.042, 264.043, 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.
	(c)  The board may not impose a tax to pay the principal of or
	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.
	(c)  The board shall set for the district tax
	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.
	(c)  The board shall fill a vacancy in a board office for the
	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.
	(c)  Not later than the 90th day after the date a proper
	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.
	(c)  The district administrator and any assistant
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  The board 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.
	(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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the district administrator determines that the
	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.
	(c)  Any district taxpayer is entitled to be present and
	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.
	(c)  This chapter, including Subsection (b), does not limit
	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.
	(c)  Notice of a bond election shall be published in a
	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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner and in accordance
	with the procedures and requirements prescribed by Sections
	264.042, 264.043, 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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  The board shall set for the district tax
	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.
	(c)  An election shall be held on the uniform election date
	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.
	(c)  Not later than the 60th day after the date the advisory
	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.
	(c)  The board shall fill a vacancy in a board office for the
	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.
	(c)  On assuming the duties of district administrator, the
	administrator shall execute a bond payable to the district in an
	amount set by the board that:
	(1)  is conditioned on the administrator performing the
	administrator's duties; and
	(2)  contains other conditions the board may require.
	(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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  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.
	(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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the district administrator determines that the
	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.
	(c)  Any property tax payer of the district is entitled to be
	present and participate at the hearing in accordance with the rules
	of decorum and procedures prescribed by the board.
	(d)  At the conclusion of the hearing, the board shall 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.
	(c)  This chapter, including Subsection (b), does not limit
	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;
	or
	(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.
	(c)  Notice of a bond election shall be given as provided by
	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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner and in accordance
	with the procedures and requirements prescribed by Sections
	264.042, 264.043, 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.
	(c)  The board shall order an election if the board receives
	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.
	(c)  The sale or transfer of the district's assets and
	liabilities must satisfy the debt and bond obligations of the
	district in a manner that protects the interests of district
	residents, including the residents' collective property rights in
	the district's assets.
	(d)  The district may transfer or 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.
	(c)  Each director's bond shall be kept in the district's
	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.
	(c)  Each officer of the board serves for a term of one year.
	(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.
	(c)  Before assuming the duties of district administrator,
	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),
	(c) (part), (d).)
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  The board may lease hospital facilities for the
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  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.
	(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.
	(c)  On behalf of the district, the board may contract with
	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.
	(c)  Any district resident is entitled to be 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.
	(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.
	(c)  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 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.
	(c)  The order calling the election must specify:
	(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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner provided by
	Sections 264.042, 264.043, 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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  In setting the tax rate, the board shall consider the
	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.
	(c)  In a condemnation proceeding, the district is not
	required to:
	(1)  pay in advance or provide a bond or other security
	for costs in the trial court;
	(2)  provide a bond for 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.
	(c)  If an agent designated by the district determines that
	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.
	(c)  Any district resident is entitled to:
	(1)  appear at the time and place designated in the
	notice; and
	(2)  be heard regarding any item included in the
	proposed budget. (Acts 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.
	(c)  All district money shall be secured in the manner
	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.
	(c)  The order calling the election must specify:
	(1)  the location of the polling places;
	(2)  the presiding election officers;
	(3)  the purpose of the bond issuance;
	(4)  the amount of the bonds to be authorized; 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),
	(c) (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.
	(c)  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. 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.
	(c)  A district employee may not serve as a director.  (Acts
	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.
	(c)  Each director's bond shall be kept in the district's
	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.
	(c)  Each officer of the board serves for a term of one year.
	(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.
	(c)  Before assuming the duties of district administrator,
	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),
	(c) (part), (d).)
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  The board may lease hospital facilities for the
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  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 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.
	(c)  On behalf of the district, the board may contract with
	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.
	(c)  Any district resident is entitled to be 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.
	(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.
	(c)  The firm shall prepare and submit the audit to the board
	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.
	(c)  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 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.
	(c)  The order calling the election must specify:
	(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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner provided by
	Sections 264.042, 264.043, 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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  In setting the tax rate, the board shall consider the
	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.
	(c)  The order calling the election must state:
	(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.
	(c)  A grant from federal funds, however dispensed, is an
	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.
	(c)  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. 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.
	(c)  This section does not prevent the board by resolution
	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.
	(c)  The district administrator may be required to 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
	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.
	(c)  The board may sell or otherwise dispose of the
	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.
	(c)  If it is determined that 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 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.
	(c)  Any district resident is entitled to:
	(1)  appear at the time and place designated in the
	notice; and
	(2)  be heard regarding any item included in the
	proposed budget.  (Acts 60th Leg., R.S., Ch. 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.
	(c)  A loan for which taxes or bonds are pledged must mature
	not later than the first anniversary of the date the loan is made. A
	loan for which district revenue is pledged must mature not later
	than the fifth anniversary of the date the loan is made. (Acts 60th
	Leg., R.S., Ch. 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.
	(c)  The board shall declare the results of the election.
	(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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner provided by
	Sections 264.042, 264.043, 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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  The board shall order an election if the board receives
	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;
	or
	(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.
	(c)  If Subsections (a)(1) and (2) do not apply and the board
	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.
	(c)  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 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.
	(c)  A taxpayer may request that the taxpayer's share of
	surplus tax money be credited to the taxpayer's county taxes. If a
	taxpayer requests the credit, the board shall direct the 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.
	(c)  The board shall fill a vacancy in a board office for the
	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.
	(c)  The district administrator and any assistant
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  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.
	(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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the district administrator determines that the
	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.
	(c)  Any district resident is entitled to be 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 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.
	(c)  This chapter, including Subsection (b), does not limit
	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.
	(c)  Notice of a bond election shall be given as provided by
	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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner and in accordance
	with the procedures and requirements prescribed by Sections
	264.042, 264.043, 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.
	(c)  The board may not impose a tax to pay the principal of or
	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.
	(c)  The board shall set for the district tax
	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.
	(c)  Each director's bond and constitutional oath or
	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.
	(c)  In a condemnation proceeding, the district is not
	required to:
	(1)  pay in advance or provide a bond or other security
	for costs in the trial court; 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.
	(c)  If the investigator determines that the patient or
	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.
	(c)  Any person 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. 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.
	(c)  The order calling an election must include:
	(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.
	(c)  The board shall order an election if the board receives
	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.
	(c)  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 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.
	(c)  A district employee may not serve as a director. (Acts
	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.
	(c)  Each officer of the board serves for a term of one year.
	(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.
	(c)  Before assuming the duties of district administrator,
	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),
	(c) (part), (d).)
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  The board may lease hospital facilities for the
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  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 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.
	(c)  On behalf of the district, the board may contract with
	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.
	(c)  Any district resident is entitled to be 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.
	(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.
	(c)  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 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.
	(c)  The order calling the election must specify:
	(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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner provided by
	Sections 264.042, 264.043, 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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  In setting the tax rate, the board shall consider the
	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.
	(c)  The election order must state the time, place, and
	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.
	(c)  If the president is absent or fails and declines to act,
	the vice president shall perform the president's duties and
	exercise the president's powers under this chapter.  (Acts 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.
	(c)  The district administrator and any assistant
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  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.
	(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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the district administrator determines that the
	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.
	(c)  Any district resident is entitled to be present and
	participate at the hearing in accordance with the rules of decorum
	and procedures prescribed by the board.
	(d)  At the conclusion of the hearing, the board shall 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.
	(c)  This chapter, including Subsection (b), does not limit
	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.
	(c)  Notice of a bond election shall be given as provided by
	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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner and in accordance
	with the procedures and requirements prescribed by Sections
	264.042, 264.043, 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.
	(c)  The board shall set for the district tax
	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.
	(c)  Directors serve staggered two-year terms unless
	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.
	(c)  Each director's bond and constitutional oath or
	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.
	(c)  The board shall fill a vacancy in a board office for the
	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.
	(c)  On assuming the duties of district administrator, the
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  The board may lease district hospital facilities to
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the district administrator determines that the
	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.
	(c)  The corporation may invest the corporation's money in
	any manner in which the district may invest the district's money,
	including investing money as authorized by Chapter 2256, Government
	Code.
	(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.
	(c)  Any district resident is entitled to be 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 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.
	(c)  This chapter, including Subsection (b), does not limit
	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.
	(c)  A loan for which taxes or bonds are pledged must mature
	not later than the first anniversary of the date the loan is made. A
	loan for which district revenue is pledged must mature not later
	than the fifth anniversary of the date the loan is made. (Acts 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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner and in accordance
	with the procedures and requirements prescribed by Sections
	264.042, 264.043, 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.
	(c)  A refunding bond must mature not later than the 40th
	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.
	(c)  The board may not impose a tax to pay the principal of or
	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.
	(c)  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. 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.
	(c)  The board shall order an election if the board receives
	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.
	(c)  The sale or transfer of the district's assets and
	liabilities must satisfy the debt and bond obligations of the
	district in a manner that protects the interests of district
	residents, including the residents' collective property rights in
	the district's assets.
	(d)  The district may 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.
	(c)  A taxpayer may request that the taxpayer's share of
	surplus tax money be credited to the taxpayer's county taxes. If a
	taxpayer requests the credit, the board shall direct the 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.
	(c)  The election must be held in the same manner as an
	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.
	(c)  The board shall fill a vacancy in a board office for the
	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.
	(c)  The district administrator and any assistant
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  The board may lease, sell, or otherwise dispose of all
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the district administrator determines that the
	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.
	(c)  Any district resident may be 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 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.
	(c)  This chapter, including Subsection (b), does not limit
	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.
	(c)  Notice of a bond election shall be given by publishing a
	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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner and in accordance
	with the procedures and requirements prescribed by Sections
	264.042, 264.043, 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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If it is determined that 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 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.
	(c)  Any district taxpayer is entitled to:
	(1)  appear at the time and place designated in the
	notice; and
	(2)  be heard regarding any item included in the
	proposed budget.  (Acts 60th Leg., R.S., Ch. 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.
	(c)  All district money shall be secured in the manner
	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.
	(c)  The order calling the election must specify:
	(1)  the location of the polling places;
	(2)  the presiding election officers;
	(3)  the purpose of the bond issuance;
	(4)  the amount of the bonds to be authorized;
	(5)  the maximum interest rate of the bonds; and
	(6)  the maximum maturity 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.
	(c)  If two or more persons tie for the third-highest vote in
	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.
	(c)  In a condemnation proceeding, the district is not
	required to:
	(1)  pay in advance or provide a bond or other security
	for costs in the trial court;
	(2)  provide a bond for 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.
	(c)  If an agent designated by the district determines that
	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.
	(c)  Any district resident is entitled to:
	(1)  appear at the time and place designated in the
	notice; and
	(2)  be heard regarding any item included in the
	proposed budget.  (Acts 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.
	(c)  All district money shall be secured in the manner
	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.
	(c)  The order calling the election must specify:
	(1)  the location of the polling places;
	(2)  the presiding election officers;
	(3)  the purpose of the bond issuance;
	(4)  the amount of the bonds to be authorized; 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),
	(c) (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.
	(c)  An appointed director serves a two-year term. (Acts
	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.
	(c)  Each director's bond and constitutional oath or
	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.
	(c)  In a condemnation proceeding, the district is not
	required to:
	(1)  pay in advance or provide a bond or other security
	for costs in the trial court; 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.
	(c)  If the investigator determines that the patient or
	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.
	(c)  Any person who owns taxable property in the district and
	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.
	(c)  The order calling an election must include:
	(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.
	(c)  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., 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.
	(c)  The board may agree to pay all or part of the tuition or
	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.
	(c)  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,
	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.
	(c)  The board for the district may:
	(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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If it is determined that 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 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.
	(c)  This section does not affect the district's authority to
	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.
	(c)  Any district taxpayer is entitled to:
	(1)  appear at the time and place designated in the
	notice; and
	(2)  be heard regarding any item included in the
	proposed budget. (Acts 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.
	(c)  All district money shall be secured in the manner
	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.
	(c)  A loan for which taxes are pledged must mature and be
	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.
	(c)  The order calling the election must specify:
	(1)  the location of the polling places;
	(2)  the presiding election officers;
	(3)  the purpose of the bond issuance;
	(4)  the amount of the bonds to be authorized;
	(5)  the maximum interest rate of the bonds; and
	(6)  the maximum maturity of the bonds.
	(d)  Notice of a bond election shall be given by publishing a
	substantial copy of the order calling the election in a newspaper of
	general circulation in 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.
	(c)  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., 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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  The board shall give notice in the manner provided for a
	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.
	(c)  The board shall order an election if the board receives
	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.
	(c)  The sale or transfer of the district's assets and
	liabilities must satisfy the debt and bond obligations of the
	district in a manner that protects the interests of district
	residents, including the residents' collective property rights in
	the district's assets.
	(d)  The district may 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.
	(c)  Directors serve staggered four-year terms.
	(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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the board determines that 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 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.
	(c)  Any district taxpayer is entitled to:
	(1)  appear at the time and place designated in the
	notice; and
	(2)  be heard regarding any item included in the
	proposed budget. (Acts 60th Leg., R.S., Ch. 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.
	(c)  All district money shall be secured in the manner
	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.
	(c)  The order calling the election must specify:
	(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;
	or
	(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.
	(c)  A directors' election shall be held on the uniform
	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.
	(c)  A district employee may not serve as a director. (Acts
	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.
	(c)  Each officer of the board serves for a term of one year.
	(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.
	(c)  Before assuming the duties of district administrator,
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  The board may lease or sell all or part of the hospital
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  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 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.
	(c)  The board may contract with this or another state, the
	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.
	(c)  Any district resident is entitled to be 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 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.
	(c)  The district may not deposit money with a bank or
	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.
	(c)  The order calling the election must specify:
	(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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner provided by
	Sections 264.042, 264.043, 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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  In setting the tax rate, the board shall consider the
	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."
	(c)  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 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.
	(c)  The board shall declare the results of a district
	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.
	(c)  If the board orders staggered three-year terms,
	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
	(C)  the four other directors elected at the first
	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
	(C)  the four directors elected at the first
	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.
	(c)  A person is not eligible to serve as a director if the
	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.
	(c)  Each director's bond and constitutional oath or
	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.
	(c)  The board may require an officer to execute a bond that
	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.
	(c)  On assuming the duties of an 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.
	(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.
	(c)  The board shall determine the powers, duties, term of
	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.
	(c)  The district may:
	(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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  For each leased facility, the lease must require the
	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.
	(c)  If the administrator determines that the 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 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.
	(c)  The notice must be published in a newspaper of general
	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.
	(c)  Any district resident or taxpayer is entitled to be
	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.
	(c)  This chapter, including Subsection (b), does not limit
	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.
	(c)  Notice of a bond election shall be given as provided by
	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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner and in accordance
	with the procedures and requirements prescribed by Sections
	264.042, 264.043, 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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  The board shall set for the district tax
	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.
	(c)  Each director's oath shall be filed with the district
	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.
	(c)  For an election ordered by the county judge:
	(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.
	(c)  The board shall fill a vacancy in a board office for the
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  The contract shall be fulfilled in accordance with the
	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.
	(c)  The auditor shall make a full report and file a copy of
	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.
	(c)  On payment of a bond, the county treasurer shall:
	(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.
	(c)  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 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.
	(c)  The board shall fill a vacancy in a board office for the
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  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.
	(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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  The corporation may invest the corporation's money in
	any manner in which the district may invest the district's money,
	including investing money as authorized by Chapter 2256, Government
	Code.
	(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.
	(c)  Any district resident is entitled to be 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. 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.
	(c)  This chapter, including Subsection (b), does not limit
	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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner and in accordance
	with the procedures and requirements prescribed by Sections
	264.042, 264.043, 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.
	(c)  The board shall order an election if the board receives
	a petition requesting an election that is signed by at least 15
	percent of the registered 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.
	(c)  If Subsection (a)(1) does not apply and the board
	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.
	(c)  A taxpayer may request that the taxpayer's share of
	surplus tax money be credited to the taxpayer's county taxes. If a
	taxpayer requests the credit, the board shall direct the 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.
	(c)  An election shall be held each year on the May uniform
	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.
	(c)  Each director's bond and constitutional oath or
	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.
	(c)  In a condemnation proceeding, the district is not
	required to:
	(1)  pay in advance or provide a bond or other security
	for costs in the trial court; 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.
	(c)  If the investigator determines that the patient or
	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.
	(c)  Any person 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. 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.
	(c)  A loan for which taxes or bonds are pledged must mature
	not later than the first anniversary of the date the loan is made. A
	loan for which district revenue is pledged must mature not later
	than the fifth anniversary of the date the loan is made. (Acts 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.
	(c)  The order calling the election must include:
	(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.
	(c)  The bonds may be additionally secured by a mortgage or
	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.
	(c)  The order calling the election must specify:
	(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.
	(c)  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. 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.
	(c)  The declarations shall be published in a newspaper of
	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.
	(c)  The Commissioners Court of Knox County shall appoint two
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the board determines that the patient or those
	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.
	(c)  Any district taxpayer is entitled to:
	(1)  appear at the time and place designated in the
	notice; and
	(2)  be heard regarding any item included in the
	proposed budget. (Acts 60th Leg., R.S., Ch. 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.
	(c)  All district money shall be secured in the manner
	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.
	(c)  A loan authorized by this section must mature not later
	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.
	(c)  The order calling the election must specify:
	(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.
	(c)  The board may order the election on its own motion.
	(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.
	(c)  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 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.
	(c)  The board shall fill a vacancy in a board office for the
	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.
	(c)  The district administrator and any assistant
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  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.
	(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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the district administrator determines that the
	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.
	(c)  Any district resident is entitled to be 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 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.
	(c)  This chapter, including Subsection (b), does not limit
	the power of the board to:
	(1)  place a part of district money on time deposit;
	(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.
	(c)  Notice of a bond election shall be given as provided by
	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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner and in accordance
	with the procedures and requirements prescribed by Sections
	264.042, 264.043, 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.
	(c)  The board may not impose a tax to pay the principal of or
	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.
	(c)  The board shall set for the district tax
	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.
	(c)  The election order must state the time, place, and
	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.
	(c)  If the president is absent or fails and declines to act,
	the vice president shall perform the president's duties and
	exercise the president's powers under this chapter.  (Acts 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.
	(c)  The district administrator and any assistant
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  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.
	(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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the district administrator determines that the
	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.
	(c)  Any district resident is entitled to be present and
	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.
	(c)  This chapter, including Subsection (b), does not limit
	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.
	(c)  Notice of a bond election shall be given as provided by
	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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner and in accordance
	with the procedures and requirements prescribed by Sections
	264.042, 264.043, 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.
	(c)  The board shall set for the district tax
	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.
	(c)  The district administrator or any manager may be
	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.
	(c)  The board may remove the district administrator at any
	time.
	(d)  Before assuming the duties of district administrator,
	the administrator must execute a bond payable to the district in an
	amount of not less than $10,000 that:
	(1)  is conditioned on the administrator performing
	well and faithfully the administrator's required duties; and
	(2)  contains 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.
	(c)  The assistant administrator is subject to the
	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.
	(c)  The board may employ additional legal counsel the board
	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.
	(c)  The district has full responsibility for providing
	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).
	(c)  The district shall pay the salaries and expenses
	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;
	(C)  a municipality;
	(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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the district administrator determines that the
	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.
	(c)  The board may sell or lease the facility only if:
	(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.
	(c)  For purposes of this section, a person has a financial
	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.
	(c)  The person charged with conducting and arranging
	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.
	(c)  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. 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.
	(c)  Each director's bond shall be kept in the district's
	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.
	(c)  The board shall fill a vacancy in a board office for the
	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.
	(c)  The district administrator and any assistant
	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.
	(c)  The board may provide that the district administrator
	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.
	(c)  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.
	(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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the district administrator determines that the
	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.
	(c)  The board must approve the annual budget.  (Acts 60th
	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.
	(c)  To the extent that money in a depository bank is not
	insured by the Federal Deposit Insurance Corporation, the money
	must be secured in the manner provided by law for the security of
	county funds.
	(d)  Membership on the district's board of an officer or
	director of a bank does not disqualify the bank from being
	designated as 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.
	(c)  A loan for which taxes or bonds are pledged must mature
	not later than the first anniversary of the date the loan is made. A
	loan for which district revenue is pledged must mature not later
	than the fifth anniversary of the date the loan is made.
	(d)  The board may not spend money obtained from a loan under
	this section for any purpose other than:
	(1)  the purpose for which the board declared an
	emergency; and
	(2)  if district taxes or bonds are pledged to pay the
	loan, the purpose for which the pledged taxes were imposed or the
	pledged bonds were authorized. (Acts 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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner provided by
	Sections 264.042, 264.043, 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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  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. 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.
	(c)  Each director's bond and the constitutional oath or
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If a lease under this section includes a provision
	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.
	(c)  If the board determines that 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 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.
	(c)  Any district taxpayer is entitled to:
	(1)  appear at the time and place designated in the
	notice; and
	(2)  be heard regarding any item included in the
	proposed budget.  (Acts 60th Leg., R.S., Ch. 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.
	(c)  All district money shall be secured in the manner
	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.
	(c)  The order calling the election must specify:
	(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.
	(c)  The district administrator or any manager may be
	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.
	(c)  The board may remove the district administrator at any
	time.
	(d)  Before assuming the duties of district administrator,
	the administrator must execute a bond payable to the district in an
	amount of not less than $10,000 that:
	(1)  is conditioned on the administrator performing
	well and faithfully the administrator's required duties; and
	(2)  contains 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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  The auditor shall receive the compensation determined
	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.
	(c)  The net revenue from the tax imposed under Section
	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.
	(c)  The board may use the proceeds of a loan made under this
	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.
	(c)  The order calling the election must specify:
	(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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner provided by
	Sections 264.042, 264.043, 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.
	(c)  Directors serve staggered three-year terms.
	(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.
	(c)  A district employee or member of the district's medical
	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.
	(c)  The director shall obtain the bond from an insurer
	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.
	(c)  Each officer of the board serves for a term of one year.
	(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.
	(c)  Before assuming the duties of district administrator,
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  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.
	(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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  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 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.
	(c)  The board may contract with 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.
	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.
	(c)  Any district resident is entitled to be 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.
	(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.
	(c)  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 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.
	(c)  The order calling the election must specify:
	(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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner provided by
	Sections 264.042, 264.043, 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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  In setting the tax rate, the board shall consider the
	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.
	(c)  The board shall order an election if the board receives
	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.
	(c)  The sale or transfer of the district's assets and
	liabilities must satisfy the debt and bond obligations of the
	district in a manner that protects the interests of district
	residents, including the residents' collective property rights in
	the district's assets.
	(d)  The district may 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.
	(c)  A taxpayer may request that the taxpayer's share of
	surplus tax money be credited to the taxpayer's county taxes.  If a
	taxpayer requests the credit, the board shall direct the 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.
	(c)  Each director's bond and constitutional oath or
	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.
	(c)  In a condemnation proceeding, the district is not
	required to:
	(1)  pay in advance or provide a bond or other security
	for costs in the trial court; 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.
	(c)  If the investigator determines that the patient or
	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.
	(c)  Any person who owns taxable property in the district and
	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.
	(c)  The order calling the election must include:
	(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.
	(c)  The election order must state the time, place, and
	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.
	(c)  Each officer of the board serves for a term of one year.
	(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.
	(c)  The district administrator and any assistant
	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.
	(c)  The board may provide that the district administrator
	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.
	(c)  The board may lease district hospital facilities to
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the district administrator determines that the
	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.
	(c)  The corporation may invest the corporation's money in
	any manner in which the district may invest the district's money,
	including investing money as authorized by Chapter 2256, Government
	Code.
	(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.
	(c)  The annual budget must be approved by the board. (Acts
	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;
	or
	(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.
	(c)  To the extent that money in a depository bank is not
	insured by the Federal Deposit Insurance Corporation, the money
	must be secured in the manner provided by law for the security of
	county funds.
	(d)  Membership on the district's board of an officer or
	director of a bank does not disqualify the bank from being
	designated as 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.
	(c)  A loan for which tax revenue or bonds are pledged must
	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.
	(c)  A loan for which tax revenue or bonds are pledged must
	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.
	(c)  The election shall be conducted as provided by Chapter
	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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner provided by
	Sections 264.042, 264.043, 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.
	(c)  The board may not impose a tax to pay the principal of or
	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.
	(c)  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. 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.
	(c)  The board shall order an election if the board receives
	a petition requesting an election that is signed by at least 15
	percent of the registered 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;
	or
	(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.
	(c)  If Subsections (a)(1) and (2) do not apply and the board
	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.
	(c)  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 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.
	(c)  A taxpayer may request that the taxpayer's share of
	surplus tax money be credited to the taxpayer's county taxes. If a
	taxpayer requests the credit, the board shall direct the 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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  If the board determines that 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 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.
	(c)  Any district taxpayer is entitled to:
	(1)  appear at the time and place designated in the
	notice; and
	(2)  be heard regarding any item included in the
	proposed budget.  (Acts 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.
	(c)  The order calling the election must specify:
	(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.
	(c)  A cost described by Subsection (b)(2) is a maintenance
	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),
	(c) (part).)
	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.
	(c)  Each officer of the board serves for a term of one year.
	(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.
	(c)  Before assuming the duties of district administrator,
	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),
	(c) (part), (d).)
	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.
	(c)  The board may delegate to the district administrator the
	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.
	(c)  The board may lease district facilities for the
	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.
	(c)  In a condemnation proceeding brought by the district,
	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.
	(c)  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 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.
	(c)  The board may contract with 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.
	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.
	(c)  Any district resident is entitled to be 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.
	(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.
	(c)  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 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.
	(c)  The order calling the election must specify:
	(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;
	or
	(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.
	(c)  The bonds may be additionally secured by a mortgage or
	deed of trust lien on all or part of district property.
	(d)  The bonds must be issued in the manner provided by
	Sections 264.042, 264.043, 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.
	(c)  The district may not impose a tax to pay the principal of
	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.
	(c)  In setting the tax rate, the board shall consider the
	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