80R3867 MXM-D
 
  By: Swinford H.B. No. 3166
 
A BILL TO BE ENTITLED
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 
Sec. 1068.208.  BONDS EXEMPT FROM TAXATION 
[Sections 1068.209-1068.250 reserved for expansion]
SUBCHAPTER F. TAXES
Sec. 1068.251.  IMPOSITION OF AD VALOREM TAX 
Sec. 1068.252.  TAX RATE 
Sec. 1068.253.  ELECTION TO INCREASE MAXIMUM TAX RATE 
Sec. 1068.254.  TAX ASSESSOR-COLLECTOR 
CHAPTER 1068. MULESHOE AREA HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.1068.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Muleshoe Area Hospital
District. (Acts 71st Leg., R.S., Ch. 45, Sec. 1.01.)
       Sec.1068.002.AUTHORITY FOR OPERATION. The district
operates and is financed as provided by Section 9, Article IX, Texas
Constitution, and by this chapter. (Acts 71st Leg., R.S., Ch. 45,
Sec. 1.02.)
       Sec.1068.003.ESSENTIAL PUBLIC FUNCTION. The district is
a public entity performing an essential public function. (Acts
71st Leg., R.S., Ch. 45, Sec. 7.11 (part).)
       Sec.1068.004.DISTRICT TERRITORY. The district is
composed of the territory described by Section 1.03, Chapter 45,
Acts of the 71st Legislature, Regular Session, 1989. (New.)
       Sec. 1068.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE
OBLIGATION. The state may not become obligated for the support or
maintenance of the district. (Acts 71st Leg., R.S., Ch. 45, Sec.
9.01 (part).)
       Sec.1068.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.
The legislature may not make a direct appropriation for the
construction, maintenance, or improvement of a district facility.
(Acts 71st Leg., R.S., Ch. 45, Sec. 9.01 (part).)
[Sections 1068.007-1068.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
       Sec.1068.051.BOARD ELECTION; TERM. (a) The district is
governed by a board of five directors elected by place.
       (b)  Unless four-year terms are established under Section
285.081, Health and Safety Code:
             (1)  directors serve staggered two-year terms; and
             (2)  an election shall be held on the uniform election
date in May of each year to elect the appropriate number of
directors. (Acts 71st Leg., R.S., Ch. 45, Secs. 4.01(a), 4.03(a),
(d) (part).)
       Sec.1068.052.NOTICE OF ELECTION. At least 35 days before
the date of an election of directors, notice of the election shall
be published one time in a newspaper with general circulation in the
district. (Acts 71st Leg., R.S., Ch. 45, Sec. 4.04.)
       Sec.1068.053.BALLOT PETITION. A person who wants to have
the person's name printed on the ballot as a candidate for director
must file with the board secretary a petition requesting that
action.  The petition must:
             (1)  be signed by at least 25 registered voters of the
district as determined by the most recent official list of
registered voters;
             (2)  be filed not later than the 31st day before the
date of the election; and
             (3)  specify the place for which the person is to be a
candidate. (Acts 71st Leg., R.S., Ch. 45, Sec. 4.05.)
       Sec.1068.054.QUALIFICATIONS FOR OFFICE. (a) To be
eligible to be a candidate for or to serve as a director, a person
must be:
             (1)  a district resident; and
             (2)  a qualified voter.
       (b)  A district employee may not serve as a director. (Acts
71st Leg., R.S., Ch. 45, Sec. 4.06.)
       Sec.1068.055.BOARD VACANCY. If a vacancy occurs in the
office of director, the remaining directors shall appoint a
director for the unexpired term. (Acts 71st Leg., R.S., Ch. 45,
Sec. 4.07.)
       Sec.1068.056.OFFICERS. (a) The board shall elect a
president and a vice president from among its members.
       (b)  The board shall appoint a secretary, who need not be a
director.
       (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. 45, Secs. 4.08, 4.09.)
       Sec.1068.057.COMPENSATION; EXPENSES. A director or
officer serves without compensation but may be reimbursed for
actual expenses incurred in the performance of official duties.
The expenses must be:
             (1)  reported in the district's records; and
             (2)  approved by the board. (Acts 71st Leg., R.S., Ch.
45, Sec. 4.10.)
       Sec.1068.058.VOTING REQUIREMENT. A concurrence of a
majority of the directors voting is necessary in any matter
relating to district business. (Acts 71st Leg., R.S., Ch. 45, Sec.
4.11.)
       Sec.1068.059.DISTRICT ADMINISTRATOR. (a) The board may
appoint a qualified person as district administrator.
       (b)  The district administrator serves at the will of the
board and is entitled to the compensation determined by the board.
       (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. 45, Secs. 4.12(a) (part), (b) (part), (c)
(part), (d).)
       Sec.1068.060.GENERAL DUTIES OF DISTRICT ADMINISTRATOR.  
Subject to the limitations prescribed by the board, the district
administrator shall:
             (1)  supervise the work and activities of the district;
and
             (2)  direct the general affairs of the district. (Acts
71st Leg., R.S., Ch. 45, Sec. 4.15.)
       Sec.1068.061.ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.
(a) The board may appoint qualified persons as:
             (1)  the assistant district administrator; and
             (2)  the attorney for the district.
       (b)  The assistant district administrator and the attorney
for the district serve at the will of the board and are entitled to
the compensation determined by the board. (Acts 71st Leg., R.S.,
Ch. 45, Secs. 4.12(a) (part), (b) (part), (c) (part).)
       Sec.1068.062.EMPLOYEES; APPOINTMENT OF STAFF. (a) The
board may appoint to the staff any doctors the board considers
necessary for the efficient operation of the district and may make
temporary appointments as necessary.
       (b)  The district may employ technicians, nurses, fiscal
agents, accountants, architects, additional attorneys, and other
necessary employees.
       (c)  The board may delegate to the district administrator the
authority to employ persons for the district. (Acts 71st Leg.,
R.S., Ch. 45, Secs. 4.13, 4.14.)
       Sec.1068.063.RETIREMENT BENEFITS. The board may provide
retirement benefits for district employees by:
             (1)  establishing or administering a retirement
program; or
             (2)  participating in:
                   (A)  the Texas County and District Retirement
System; or
                   (B)  another statewide retirement system in which
the district is eligible to participate. (Acts 71st Leg., R.S., Ch.
45, Sec. 4.16.)
[Sections 1068.064-1068.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.1068.101.DISTRICT RESPONSIBILITY. The district has
full responsibility for:
             (1)  operating hospital facilities; and
             (2)  providing medical and hospital care for the
district's needy inhabitants. (Acts 71st Leg., R.S., Ch. 45, Sec.
5.02 (part).)
       Sec.1068.102.RESTRICTION ON COUNTY TAXATION AND DEBT.  
Bailey and Parmer Counties may not impose a tax or issue bonds or
other obligations for hospital purposes or to provide medical care
for district residents. (Acts 71st Leg., R.S., Ch. 45, Sec.
5.01(b).)
       Sec.1068.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.  
The board shall manage, control, and administer the hospital system
and the district's money and resources. (Acts 71st Leg., R.S., Ch.
45, Sec. 5.03.)
       Sec.1068.104.RULES. The board may adopt rules governing:
             (1)  the operation of the hospital and hospital system;
and
             (2)  the duties, functions, and responsibilities of
district staff and employees. (Acts 71st Leg., R.S., Ch. 45, Sec.
5.04.)
       Sec.1068.105.PURCHASING AND ACCOUNTING PROCEDURES. The
board may prescribe:
             (1)  the method of making purchases and expenditures by
and for the district; and
             (2)  accounting and control procedures for the
district. (Acts 71st Leg., R.S., Ch. 45, Sec. 5.05.)
       Sec.1068.106.MOBILE EMERGENCY MEDICAL SERVICE. The
district may operate or provide for the operation of a mobile
emergency medical service. (Acts 71st Leg., R.S., Ch. 45, Sec. 5.02
(part).)
       Sec. 1068.107.  DISTRICT PROPERTY, FACILITIES, AND
EQUIPMENT. (a) The board shall determine:
             (1)  the type, number, and location of buildings
required to maintain an adequate hospital system; and
             (2)  the type of equipment necessary for hospital care.
       (b)  The board may:
             (1)  acquire property, including facilities and
equipment, for the district for use in the hospital system; and
             (2)  mortgage or pledge the property as security for
the payment of the purchase price.
       (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. 45, Sec. 5.06.)
       Sec.1068.108.EMINENT DOMAIN. (a) The district may
exercise the power of eminent domain to acquire a fee simple or
other interest in property located in district territory if the
interest is necessary to exercise a right or authority conferred by
this chapter.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code, except the
district is not required to deposit in the trial court money or a
bond as provided by Section 21.021(a), Property Code.
       (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. 45, Sec.
5.09.)
       Sec.1068.109.COST OF RELOCATING OR ALTERING PROPERTY. In
exercising the power of eminent domain, if the board requires
relocating, raising, lowering, rerouting, changing the grade of, or
altering the construction of any railroad, highway, pipeline, or
electric transmission and electric distribution, telegraph, or
telephone line, conduit, pole, or facility, the district must bear
the actual cost of relocating, raising, lowering, rerouting,
changing the grade, or altering the construction to provide
comparable replacement without enhancement of facilities, after
deducting the net salvage value derived from the old facility.
(Acts 71st Leg., R.S., Ch. 45, Sec. 5.10.)
       Sec.1068.110.GIFTS AND ENDOWMENTS. The board may accept
for the district a gift or endowment to be held in trust for any
purpose and under any direction, limitation, or other provision
prescribed in writing by the donor that is consistent with the
proper management of the district. (Acts 71st Leg., R.S., Ch. 45,
Sec. 5.14.)
       Sec.1068.111.CONSTRUCTION CONTRACTS. (a) The board may
enter into construction contracts for the district.
       (b)  The board may enter into a construction contract that
involves the expenditure of more than the amount provided by
Section 271.024, Local Government Code, only after competitive
bidding as provided by Subchapter B, Chapter 271, Local Government
Code. (Acts 71st Leg., R.S., Ch. 45, Sec. 5.07(a).)
       Sec.1068.112.OPERATING AND MANAGEMENT CONTRACTS. The
board may enter into an operating or management contract relating
to a hospital facility for the district. (Acts 71st Leg., R.S., Ch.
45, Sec. 5.08.)
       Sec. 1068.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
SERVICES. The board may contract with a political subdivision of
this state or with a state or federal agency for the district to:
             (1)  furnish a mobile emergency medical service; or
             (2)  provide for the investigatory or welfare needs of
district inhabitants. (Acts 71st Leg., R.S., Ch. 45, Sec. 5.13.)
       Sec.1068.114.PAYMENT FOR TREATMENT; PROCEDURES. (a)
When a patient who resides in the district is admitted to a district
facility, the district administrator may have an inquiry made into
the financial circumstances of:
             (1)  the patient; or
             (2)  a relative of the patient who is legally
responsible for the patient's support.
       (b)  The district without charge shall provide to a patient
who resides in the district the care and treatment that the patient
or a relative of the patient who is legally responsible for the
patient's support cannot pay.
       (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 the county in which the district is located. The
substantial evidence rule applies to the appeal. (Acts 71st Leg.,
R.S., Ch. 45, Secs. 5.11(a), (c), (d), (e), (f).)
       Sec.1068.115.REIMBURSEMENT FOR SERVICES. (a) The board
shall require a county, municipality, or public hospital located
outside the district to reimburse the district for the district's
care and treatment of a sick or injured person of that county,
municipality, or public hospital as provided by Chapter 61, Health
and Safety Code.
       (b)  The board shall require the sheriff of Bailey County to
reimburse the district for the district's care and treatment of a
person who is confined in a jail facility of Bailey County and is
not a district resident.
       (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.
45, Sec. 5.12.)
       Sec.1068.116.AUTHORITY TO SUE AND BE SUED. The board may
sue and be sued on behalf of the district. (Acts 71st Leg., R.S.,
Ch. 45, Sec. 5.15.)
[Sections 1068.117-1068.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
       Sec.1068.151.BUDGET. (a) The district administrator
shall prepare a proposed annual budget for the district.
       (b)  The proposed budget must contain a complete financial
statement, including a statement of:
             (1)  the outstanding obligations of the district;
             (2)  the amount of cash on hand in each district fund;
             (3)  the amount of money received by the district from
all sources during the previous year;
             (4)  the amount of money available to the district from
all sources during the ensuing year;
             (5)  the amount of the balances expected at the end of
the year in which the budget is being prepared;
             (6)  the estimated amount of revenue and balances
available to cover the proposed budget; and
             (7)  the estimated tax rate required. (Acts 71st Leg.,
R.S., Ch. 45, Sec. 6.04.)
       Sec.1068.152.NOTICE; HEARING; ADOPTION OF BUDGET.  (a)  
The board shall hold a public hearing on the proposed annual budget.
       (b)  The board shall publish notice of the hearing in a
newspaper with general circulation in the district not later than
the 10th day before the date of the hearing.
       (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. 45, Sec. 6.05.)
       Sec.1068.153.AMENDMENTS TO BUDGET. After adoption, the
annual budget may be amended on the board's approval. (Acts 71st
Leg., R.S., Ch. 45, Sec. 6.06.)
       Sec.1068.154.RESTRICTION ON EXPENDITURES. Money may be
spent only for an expense included in the budget or an amendment to
the budget. (Acts 71st Leg., R.S., Ch. 45, Sec. 6.07.)
       Sec.1068.155.FISCAL YEAR. (a) The district operates on a
fiscal year established by the board.
       (b)  The fiscal year may not be changed:
             (1)  when revenue bonds of the district are
outstanding; or
             (2)  more than once in a 24-month period. (Acts 71st
Leg., R.S., Ch. 45, Sec. 6.01.)
       Sec.1068.156.ANNUAL AUDIT. The board annually shall have
an audit made of the district's financial condition. (Acts 71st
Leg., R.S., Ch. 45, Sec. 6.02.)
       Sec. 1068.157.  INSPECTION OF ANNUAL AUDIT AND DISTRICT
RECORDS. The annual audit and other district records are open to
inspection during regular business hours at the district's
principal office. (Acts 71st Leg., R.S., Ch. 45, Sec. 6.03.)
       Sec.1068.158.FINANCIAL REPORT. As soon as practicable
after the close of the fiscal year, the district administrator
shall prepare for the board:
             (1)  a sworn statement of the amount of district money;
and
             (2)  an account of the disbursements of that money.
(Acts 71st Leg., R.S., Ch. 45, Sec. 6.08.)
       Sec.1068.159.DEPOSITORY. (a) The board shall select at
least one bank to serve as a depository for district money.
       (b)  District money, other than money invested as provided by
Section 1068.160(b) and money transmitted to a bank for payment of
bonds or obligations issued or assumed by the district, shall be
deposited as received with the depository bank and must remain on
deposit. This subsection does not limit the power of the board to
place a part of district money on time deposit or to purchase
certificates of deposit.
       (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. 45, Sec.
6.10.)
       Sec.1068.160.SPENDING AND INVESTMENT RESTRICTIONS.  
(a)  Except as provided by Sections 1068.111, 1068.201, 1068.204,
and 1068.205, the district may not incur a debt payable from
district revenue other than the revenue on hand or to be on hand in
the current and immediately following district fiscal years.
       (b)  The board may invest operating, depreciation, or
building reserves only in funds or securities specified by Chapter
2256, Government Code. (Acts 71st Leg., R.S., Ch. 45, Sec. 6.09.)
[Sections 1068.161-1068.200 reserved for expansion]
SUBCHAPTER E. BONDS
       Sec.1068.201.GENERAL OBLIGATION BONDS. The board may
issue and sell general obligation bonds authorized by an election
in the name and on the faith and credit of the district to:
             (1)  purchase, construct, acquire, repair, or renovate
buildings or improvements;
             (2)  equip buildings or improvements for hospital
purposes; or
             (3)  acquire and operate a mobile emergency medical
service. (Acts 71st Leg., R.S., Ch. 45, Sec. 7.01.)
       Sec.1068.202.TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  At
the time general obligation bonds are issued by the district under
Section 1068.201, the board shall impose an ad valorem tax at a rate
sufficient to create an interest and sinking fund to pay the
principal of and interest on the bonds as the bonds mature.
       (b)  The tax required by this section together with any other
ad valorem tax the district imposes may not in any year exceed the
limit approved by the voters at the election authorizing the
imposition of the tax. (Acts 71st Leg., R.S., Ch. 45, Sec. 7.02.)
       Sec.1068.203.GENERAL OBLIGATION BOND ELECTION. (a) The
district may issue general obligation bonds only if the bonds are
authorized by a majority of the district voters voting at an
election held for that purpose.
       (b)  The board may order a bond election.
       (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. 45, Sec. 7.03.)
       Sec.1068.204.REVENUE BONDS. (a) The board may issue
revenue bonds to:
             (1)  purchase, construct, acquire, repair, renovate,
or equip buildings or improvements for hospital purposes;
             (2)  acquire sites to be used for hospital purposes; or
             (3)  acquire and operate a mobile emergency medical
service to assist the district in carrying out its hospital
purposes.
       (b)  The bonds must be payable from and secured by a pledge of
all or part of the revenue derived from the operation of the
district's hospital system.
       (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. 45, Sec. 7.04.)
       Sec.1068.205.REFUNDING BONDS. (a) The board may issue
refunding bonds to refund outstanding indebtedness issued or
assumed by the district.
       (b)  Refunding bonds may be:
             (1)  sold, with the proceeds of the refunding bonds
applied to the payment of the outstanding indebtedness; or
             (2)  exchanged wholly or partly for not less than a
similar principal amount of outstanding indebtedness. (Acts 71st
Leg., R.S., Ch. 45, Secs. 7.05(a), (c) (part).)
       Sec.1068.206.MATURITY OF BONDS. District bonds must
mature not later than 50 years after the date of issuance. (Acts
71st Leg., R.S., Ch. 45, Sec. 7.06 (part).)
       Sec.1068.207.EXECUTION OF BONDS. (a) The board president
shall execute the district's bonds in the district's name.
       (b)  The board secretary shall countersign the bonds in the
manner provided by Chapter 618, Government Code. (Acts 71st Leg.,
R.S., Ch. 45, Sec. 7.07.)
       Sec.1068.208.BONDS EXEMPT FROM TAXATION. The following
are exempt from taxation by this state or a political subdivision of
this state:
             (1)  bonds issued by the district;
             (2)  any transaction relating to the bonds; and
             (3)  profits made in the sale of the bonds. (Acts 71st
Leg., R.S., Ch. 45, Sec. 7.11 (part).)
[Sections 1068.209-1068.250 reserved for expansion]
SUBCHAPTER F. TAXES
       Sec.1068.251.IMPOSITION OF AD VALOREM TAX. (a) The board
may impose a tax on all property in the district subject to district
taxation.
       (b)  The tax may be used to pay:
             (1)  indebtedness issued or assumed by the district;
and
             (2)  the maintenance and operating expenses of the
district.
       (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. 45, Secs. 8.02(a) (part), (c), (d), 8.03(b).)
       Sec.1068.252.TAX RATE. (a) The board may impose the tax
at a rate not to exceed the limit approved by the voters at the
election authorizing the imposition of the tax.
       (b)  The tax rate for all purposes may not exceed 75 cents on
each $100 valuation of all taxable property in the district.
       (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. 45, Secs. 8.02(a) (part), (b), 8.04 (part).)
       Sec.1068.253.ELECTION TO INCREASE MAXIMUM TAX RATE. (a)
The board may order an election to increase the district's maximum
ad valorem tax rate.
       (b)  The order calling the election must state:
             (1)  the nature of the election, including the
proposition to appear on the ballot;
             (2)  the date of the election;
             (3)  the hours during which the polls will be open; and
             (4)  the location of the polling places.
       (c)  The board shall give notice of the election 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. The first publication must appear at least 35 days before
the date set for the election.
       (d)  The ballot for the election must be printed to permit
voting for or against the proposition: "The levy of annual taxes by
the board of directors of the Muleshoe Area Hospital District for
hospital purposes at a rate not to exceed ____ cents on each $100
valuation of all taxable property in the district subject to
hospital district taxation."
       (e)  If the board finds that the election results favor the
proposition, the board may impose taxes as authorized by the
proposition. If the board finds that the election results do not
favor the proposition, another election on raising the district's
maximum tax rate may not be held before the first anniversary of the
date of the most recent election at which voters disapproved the
proposition.
       (f)  Section 41.001(a), Election Code, does not apply to an
election ordered under this section. (Acts 71st Leg., R.S., Ch. 45,
Secs. 3.03, 3.04, 8.01(a) (part), (b), (c) (part), (d).)
       Sec.1068.254.TAX ASSESSOR-COLLECTOR. The board may
provide for the appointment of a tax assessor-collector for the
district or may contract for the assessment and collection of taxes
as provided by the Tax Code. (Acts 71st Leg., R.S., Ch. 45, Sec.
8.05(b).)
CHAPTER 1070. HANSFORD COUNTY HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1070.001.  DEFINITIONS
Sec. 1070.002.  AUTHORITY FOR OPERATION
Sec. 1070.003.  ESSENTIAL PUBLIC FUNCTION
Sec. 1070.004.  DISTRICT TERRITORY
Sec. 1070.005.  CORRECTION OF INVALID PROCEDURES
Sec. 1070.006.  DISTRICT SUPPORT AND MAINTENANCE NOT
                 STATE OBLIGATION
Sec. 1070.007.  RESTRICTION ON STATE FINANCIAL
                 ASSISTANCE
[Sections 1070.008-1070.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 1070.051.  BOARD; TERM
Sec. 1070.052.  PETITION TO CHANGE METHOD FOR SELECTING
                 DIRECTORS; ELECTION
Sec. 1070.053.  DIRECTORS' ELECTION
Sec. 1070.054.  QUALIFICATIONS FOR OFFICE
Sec. 1070.055.  BOARD VACANCY
Sec. 1070.056.  OFFICERS
Sec. 1070.057.  COMPENSATION; EXPENSES
Sec. 1070.058.  VOTING REQUIREMENT
Sec. 1070.059.  ADMINISTRATORS; ASSISTANT
                 ADMINISTRATORS
Sec. 1070.060.  GENERAL DUTIES OF DISTRICT
                 ADMINISTRATOR
Sec. 1070.061.  EMPLOYEES; APPOINTMENT OF STAFF
Sec. 1070.062.  RECRUITMENT OF STAFF AND EMPLOYEES
Sec. 1070.063.  HEALTH CARE AND PROFESSIONAL
                 EDUCATIONAL PROGRAMS
Sec. 1070.064.  DAY-CARE SERVICES
Sec. 1070.065.  SENIORITY; RETIREMENT BENEFITS
Sec. 1070.066.  LIABILITY INSURANCE; INDEMNIFICATION
[Sections 1070.067-1070.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 1070.101.  DISTRICT RESPONSIBILITY
Sec. 1070.102.  RESTRICTION ON POLITICAL SUBDIVISION
                 TAXATION AND DEBT
Sec. 1070.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION
Sec. 1070.104.  HOSPITAL SYSTEM; ANCILLARY HEALTH CARE
                 SERVICES SYSTEM
Sec. 1070.105.  RULES
Sec. 1070.106.  PURCHASING AND ACCOUNTING PROCEDURES
Sec. 1070.107.  MOBILE EMERGENCY MEDICAL SERVICE
Sec. 1070.108.  DISTRICT PROPERTY, FACILITIES, AND
                 EQUIPMENT
Sec. 1070.109.  EMINENT DOMAIN
Sec. 1070.110.  GIFTS AND ENDOWMENTS
Sec. 1070.111.  CONSTRUCTION CONTRACTS
Sec. 1070.112.  OPERATING AND MANAGEMENT CONTRACTS
Sec. 1070.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                 FOR TREATMENT
Sec. 1070.114.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                 FOR INVESTIGATORY OR OTHER SERVICES
Sec. 1070.115.  PROVISION OF SERVICES OUTSIDE DISTRICT
Sec. 1070.116.  PAYMENT FOR TREATMENT; PROCEDURES
Sec. 1070.117.  AUTHORITY TO SUE AND BE SUED
[Sections 1070.118-1070.150 reserved for expansion]
SUBCHAPTER D.  CHANGE IN BOUNDARIES
Sec. 1070.151.  TERRITORY THAT MAY BE ANNEXED
Sec. 1070.152.  PETITION TO ANNEX TERRITORY
Sec. 1070.153.  ELECTION ORDER
Sec. 1070.154.  BALLOT
Sec. 1070.155.  NOTICE OF ELECTION
Sec. 1070.156.  ELECTION RESULTS
Sec. 1070.157.  EFFECT OF ANNEXATION
[Sections 1070.158-1070.200 reserved for expansion]
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 1070.201.  BUDGET
Sec. 1070.202.  NOTICE; HEARING; ADOPTION OF BUDGET
Sec. 1070.203.  AMENDMENTS TO BUDGET
Sec. 1070.204.  RESTRICTION ON EXPENDITURES
Sec. 1070.205.  FISCAL YEAR
Sec. 1070.206.  AUDIT
Sec. 1070.207.  INSPECTION OF AUDIT AND DISTRICT
                 RECORDS
Sec. 1070.208.  FINANCIAL REPORT
Sec. 1070.209.  DEPOSITORY
Sec. 1070.210.  SPENDING AND INVESTMENT RESTRICTIONS
Sec. 1070.211.  AUTHORITY TO BORROW MONEY; SECURITY
[Sections 1070.212-1070.250 reserved for expansion]
SUBCHAPTER F. BONDS
Sec. 1070.251.  OBLIGATIONS AND CREDIT AGREEMENTS
Sec. 1070.252.  GENERAL OBLIGATION BONDS
Sec. 1070.253.  TAX TO PAY GENERAL OBLIGATION BONDS
Sec. 1070.254.  GENERAL OBLIGATION BOND ELECTION
Sec. 1070.255.  REVENUE BONDS
Sec. 1070.256.  REFUNDING BONDS
Sec. 1070.257.  MATURITY OF BONDS
Sec. 1070.258.  EXECUTION OF BONDS
Sec. 1070.259.  BONDS EXEMPT FROM TAXATION
[Sections 1070.260-1070.300 reserved for expansion]
SUBCHAPTER G. TAXES
Sec. 1070.301.  IMPOSITION OF AD VALOREM TAX
Sec. 1070.302.  TAX RATE
Sec. 1070.303.  ELECTION TO INCREASE MAXIMUM TAX RATE
Sec. 1070.304.  TAX ASSESSOR-COLLECTOR
CHAPTER 1070. HANSFORD COUNTY HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.1070.001.DEFINITIONS.  In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Hansford County Hospital
District. (New.)
       Sec.1070.002.AUTHORITY FOR OPERATION.  The district
operates in accordance with Section 9, Article IX, Texas
Constitution, and has the rights, powers, and duties provided by
this chapter. (Acts 62nd Leg., R.S., Ch. 872, Sec. 1 (part).)
       Sec.1070.003.ESSENTIAL PUBLIC FUNCTION.  The district
performs an essential public function in carrying out the purposes
of this chapter. (Acts 62nd Leg., R.S., Ch. 872, Sec. 21 (part).)
       Sec.1070.004.DISTRICT TERRITORY. The boundaries of the
district are coextensive with the boundaries of Hansford County,
Texas, unless the boundaries are expanded under Subchapter D.  
(Acts 62nd Leg., R.S., Ch. 872, Secs. 1 (part), 1A(a) (part).)
       Sec.1070.005.CORRECTION OF INVALID PROCEDURES. If a
court holds that any procedure under this chapter violates the
constitution of this state or of the United States, the district by
resolution may provide an alternative procedure that conforms with
the constitution. (Acts 62nd Leg., R.S., Ch. 872, Sec. 23 (part).)
       Sec. 1070.006.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE
OBLIGATION. The support and maintenance of the district may not
become a charge against or obligation of this state. (Acts 62nd
Leg., R.S., Ch. 872, Sec. 20 (part).)
       Sec.1070.007.RESTRICTION ON STATE FINANCIAL ASSISTANCE.
The legislature may not make a direct appropriation for the
construction, maintenance, or improvement of a district facility.
(Acts 62nd Leg., R.S., Ch. 872, Sec. 20 (part).)
[Sections 1070.008-1070.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
       Sec.1070.051.BOARD; TERM. (a)  The board consists of six
directors appointed by the Commissioners Court of Hansford County
unless the method for selecting directors is changed under Section
1070.052.
       (b)  Directors serve staggered two-year terms.  (Acts 62nd
Leg., R.S., Ch. 872, Secs. 4(a) (part), (b) (part).)
       Sec. 1070.052.  PETITION TO CHANGE METHOD FOR SELECTING
DIRECTORS; ELECTION. (a)  The Commissioners Court of Hansford
County shall order an election on the question of electing
directors if the court receives a petition requesting that action
signed by at least 250 registered district voters who own taxable
property in the district as of the date the petition is presented to
the court. The election shall be held within 90 days of the date the
petition is presented and notice of the election is given as
provided by Section 1251.003, Government Code.
       (b)  The order calling the election must:
             (1)  specify the date of the election, the location of
the polling places, and the presiding judge and alternate judge for
each voting place; and
             (2)  provide for clerks as in a county election.
       (c)  The ballot shall be prepared to allow voting for or
against the proposition: "Providing the office of director of the
Hansford County Hospital District shall hereafter be an elective
office."
       (d)  If a majority of the district voters voting in the
election favor the proposition:
             (1)  directors in office at the time of the election
shall serve the terms for which the directors were appointed; and
             (2)  successor directors shall be elected as provided
by Section 1070.053.
       (e)  Another election on the question of electing directors
may not be held before the third anniversary of the date of the most
recent election on electing directors. (Acts 62nd Leg., R.S., Ch.
872, Sec. 4(b) (part).)
       Sec.1070.053.DIRECTORS' ELECTION. (a)  If a majority of
the votes in an election under Section 1070.052 favor electing the
directors, an election shall be held on the uniform election date in
May of each year.
       (b)  The order calling a directors' election must specify the
time, place, and purpose of the election.
       (c)  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 50 registered voters; and
             (2)  filed at least 25 days before the date of the
election.
       (d)  At least five days before the date of an election of
directors, notice of the election shall be published one time in a
newspaper of general circulation in the district.
       (e)  Unless four-year terms are established under Section
285.081, Health and Safety Code, elected directors serve staggered
two-year terms.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 4(b) (part).)
       Sec.1070.054.QUALIFICATIONS FOR OFFICE. (a) A person may
not serve as a director unless the person is:
             (1)  a district resident; and
             (2)  a qualified voter.
       (b)  A person is not eligible to serve as a director if the
person is:
             (1)  the district administrator; or
             (2)  a district employee. (Acts 62nd Leg., R.S., Ch.
872, Sec. 4(c) (part).)
       Sec.1070.055.BOARD VACANCY. (a)  If a vacancy occurs in
the office of an appointed director, the commissioners court shall
appoint a director for the unexpired term.
       (b)  If a vacancy occurs in the office of an elected
director, the remaining directors by majority vote shall appoint a
director for the unexpired term.  (Acts 62nd Leg., R.S., Ch. 872,
Secs. 4(a) (part), (b) (part).)
       Sec.1070.056.OFFICERS. (a) The board shall elect:
             (1)  a president and a vice president from among its
members; and
             (2)  a secretary, who need not be a director.
       (b)  Each officer of the board serves for a term of one year.
       (c)  The board shall fill a vacancy in a board office for the
unexpired term. (Acts 62nd Leg., R.S., Ch. 872, Sec. 4(d) (part).)
       Sec.1070.057.COMPENSATION; EXPENSES. A director or
officer serves without compensation but may be reimbursed for
actual expenses incurred in the performance of official duties.
The expenses must be:
             (1)  reported in the district's records; and
             (2)  approved by the board. (Acts 62nd Leg., R.S., Ch.
872, Sec. 4(d) (part).)
       Sec.1070.058.VOTING REQUIREMENT. A concurrence of four
directors is sufficient in any matter relating to district
business. (Acts 62nd Leg., R.S., Ch. 872, Sec. 4(d) (part).)
       Sec.1070.059.ADMINISTRATORS; ASSISTANT ADMINISTRATORS.
(a) The board shall appoint qualified persons as administrators of
the district or the ancillary health care facilities.
       (b)  The board may appoint assistant administrators.
       (c)  The administrators and any assistant administrators
serve at the will of the board and are entitled to the compensation
determined by the board.
       (d)  On assuming the duties of district administrator, the
administrator shall execute a bond payable to the district in an
amount set by the board of not less than $5,000 that:
             (1)  is conditioned on the administrator performing the
administrator's duties; and
             (2)  contains other conditions the board may require.
(Acts 62nd Leg., R.S., Ch. 872, Sec. 5(a) (part).)
       Sec.1070.060.GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
Subject to the limitations prescribed by the board, the district
administrator shall:
             (1)  supervise the work and activities of the district;
             (2)  direct the affairs of the district; and
             (3)  have overall management responsibility for
ancillary health care facilities. (Acts 62nd Leg., R.S., Ch. 872,
Sec. 5(a) (part).)
       Sec.1070.061.EMPLOYEES; APPOINTMENT OF STAFF. (a) The
board may appoint to the staff any doctors and allied health
personnel the board considers necessary for the efficient operation
of the district and may make temporary appointments as necessary.
       (b)  The district may employ fiscal agents, accountants,
architects, and attorneys the board considers proper.
       (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. 872, Secs. 5(a) (part), 16.)
       Sec.1070.062.RECRUITMENT OF STAFF AND EMPLOYEES.  The
board may spend district money, enter into agreements, and take
other necessary action to recruit physicians, ancillary and allied
health professionals, and other persons to serve on the district's
medical staff or to be employed by the district, including:
             (1)  advertising and marketing;
             (2)  paying travel, recruitment, and relocation
expenses;
             (3)  providing a loan or scholarship to a physician or
other person who:
                   (A)  is enrolled in health care education courses
at an institution of higher education; and
                   (B)  contractually agrees to become a district
employee or medical staff member; and
             (4)  providing on a rent-free basis or subsidizing the
cost of office space or other facilities for a health care
professional, including a physician. (Acts 62nd Leg., R.S., Ch.
872, Sec. 10A(a).)
       Sec. 1070.063.  HEALTH CARE AND PROFESSIONAL EDUCATIONAL
PROGRAMS. The board may spend district money, enter into
agreements, and take other necessary action to conduct, participate
in, or otherwise assist in providing health care and professional
educational, development, or retraining programs for current or
prospective medical staff members or district employees. (Acts
62nd Leg., R.S., Ch. 872, Sec. 10A(b).)
       Sec.1070.064.DAY-CARE SERVICES. (a)  The board may take
any action to provide day-care services for the district's medical
staff members, allied health professionals, officers, directors,
and employees, including:
             (1)  spending district money;
             (2)  entering into agreements; and
             (3)  acquiring by lease, purchase, or lease to purchase
facilities, supplies, and equipment.
       (b)  The district may provide day-care services to district
residents as space permits.  (Acts 62nd Leg., R.S., Ch. 872, Sec.
10A(c).)
       Sec.1070.065.SENIORITY; RETIREMENT BENEFITS. The board
may:
             (1)  adopt rules related to the seniority of district
employees, including rules for a retirement plan based on
seniority; and
             (2)  give effect to previous years of service for a
district employee continuously employed in the operation or
management of hospital or ancillary health care facilities:
                   (A)  constructed by the district; or
                   (B)  acquired by the district, including
facilities acquired when the district was created. (Acts 62nd
Leg., R.S., Ch. 872, Sec. 5(a) (part).)
       Sec.1070.066.LIABILITY INSURANCE; INDEMNIFICATION. (a)
The board may defend or indemnify an officer, director, board
appointee, medical staff member, or district employee against or
from a claim, expense, or liability arising from duties performed
in that capacity, including a duty performed at a district
facility.
       (b)  The board may purchase and maintain liability insurance
coverage or establish a self-insurance program to fund an indemnity
obligation under this section. (Acts 62nd Leg., R.S., Ch. 872,
Sec. 5(b).)
[Sections 1070.067-1070.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.1070.101.DISTRICT RESPONSIBILITY.  (a)  The district
has full responsibility for providing hospital services for the
district's indigent residents.
       (b)  The district may assume full responsibility for
providing ancillary health care services for the district's
indigent residents. (Acts 62nd Leg., R.S., Ch. 872, Sec. 19
(part).)
       Sec. 1070.102.  RESTRICTION ON POLITICAL SUBDIVISION
TAXATION AND DEBT. A political subdivision located within the
district may not impose a tax or issue bonds or other obligations
for hospital purposes or to provide medical care. (Acts 62nd Leg.,
R.S., Ch. 872, Sec. 19 (part).)
       Sec.1070.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.
The board shall manage, control, and administer the hospital system
and the district's money and resources. (Acts 62nd Leg., R.S., Ch.
872, Sec. 5(a) (part).)
       Sec. 1070.104.  HOSPITAL SYSTEM; ANCILLARY HEALTH CARE
SERVICES SYSTEM. (a) The district shall provide for the
establishment of a hospital system by:
             (1)  purchasing, constructing, acquiring, repairing,
or renovating buildings and equipment;
             (2)  equipping the buildings; and
             (3)  administering the buildings and equipment for
hospital purposes.
       (b)  The hospital and ancillary health care services systems
may include:
             (1)  facilities and equipment to provide domiciliary
care and treatment of the sick or injured;
             (2)  outpatient clinics;
             (3)  dispensaries;
             (4)  geriatric domiciliary care;
             (5)  convalescent home facilities;
             (6)  physicians' offices;
             (7)  home health services;
             (8)  durable medical equipment;
             (9)  long-term care;
             (10)  skilled nursing care;
             (11)  intermediate nursing care;
             (12)  hospice care;
             (13)  ambulatory surgery centers;
             (14)  urgent care facilities;
             (15)  rural health clinics;
             (16)  operation of a mobile emergency medical service;
             (17)  necessary nurses' domiciliaries and training
centers;
             (18)  blood banks;
             (19)  research centers or laboratories; and
             (20)  any other facilities or equipment the board
considers necessary to provide hospital and ancillary health care
services. (Acts 62nd Leg., R.S., Ch. 872, Secs. 2 (part), 9
(part).)
       Sec.1070.105.RULES. The board may adopt rules governing:
             (1)  the operation of the hospital, ancillary health
care facilities, hospital system, and ancillary health care system;
and
             (2)  the duties, functions, and responsibilities of
district staff, employees, contractors, or agents. (Acts 62nd
Leg., R.S., Ch. 872, Sec. 5(a) (part).)
       Sec.1070.106.PURCHASING AND ACCOUNTING PROCEDURES. The
board may prescribe:
             (1)  the method and manner of making purchases and
expenditures by and for the district; and
             (2)  all accounting and control procedures. (Acts 62nd
Leg., R.S., Ch. 872, Sec. 10 (part).)
       Sec.1070.107.MOBILE EMERGENCY MEDICAL SERVICE. The
district may operate or provide for the operation of a mobile
emergency medical service.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 19
(part).)
       Sec. 1070.108.  DISTRICT PROPERTY, FACILITIES, AND
EQUIPMENT. (a) The board shall determine the type, number, and
location, either inside or outside the district, of buildings
required to maintain an adequate hospital system and ancillary
health care services system.
       (b)  The board may lease all or part of the district's
buildings, facilities, or equipment on terms considered to be in
the best interest of the district's inhabitants. The term of the
lease may not exceed 25 years.
       (c)  The district may acquire, by purchase, lease, or lease
to purchase, equipment for use in the district's hospital system
and mortgage or pledge the property as security for the payment of
the purchase or lease price. A contract entered into under this
subsection must provide that the entire obligation be retired not
later than the fifth anniversary of the date of the contract.
       (d)  The district may sell, lease, or otherwise dispose of
any property, including equipment, on terms the board finds are in
the best interest of the district's inhabitants. The board may not
sell or otherwise dispose of any real property unless the board
affirmatively finds that the sale, lease, or disposition is in the
best interest of the district's inhabitants.  (Acts 62nd Leg.,
R.S., Ch. 872, Secs. 9 (part), 10 (part).)
       Sec.1070.109.EMINENT DOMAIN. (a) The district may
exercise the power of eminent domain to acquire a fee simple or
other interest in any type of property located in district
territory if the interest is necessary for the district to exercise
a power, right, or privilege conferred by this chapter.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code, except the
district is not required to deposit in the trial court money or a
bond as provided by Section 21.021, Property Code.
       (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. 872, Sec.
14.)
       Sec.1070.110.GIFTS AND ENDOWMENTS. The board may accept
for the district a gift or endowment to be held in trust and
administered by the board for the purposes and under the
directions, limitations, or other provisions prescribed in writing
by the donor that are not inconsistent with the proper management
and objectives of the district. (Acts 62nd Leg., R.S., Ch. 872,
Sec. 18.)
       Sec.1070.111.CONSTRUCTION CONTRACTS. A construction
contract that involves the expenditure of more than $10,000 may be
made only after advertising in the manner provided by Chapter 252,
Local Government Code, Subchapter B, Chapter 271, Local Government
Code, or Section 286.078, Health and Safety Code. (Acts 62nd Leg.,
R.S., Ch. 872, Sec. 10 (part).)
       Sec.1070.112.OPERATING AND MANAGEMENT CONTRACTS. The
board may enter into an operating or management contract with a
public or private entity relating to the district's facilities,
equipment, or services. (Acts 62nd Leg., R.S., Ch. 872, Sec. 9
(part).)
       Sec. 1070.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
TREATMENT.  The board may contract with this state, another state, a
political subdivision of this or another state, or a federal agency
for the treatment of a sick or injured person. (Acts 62nd Leg.,
R.S., Ch. 872, Sec. 5(a) (part).)
       Sec. 1070.114.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
INVESTIGATORY OR OTHER SERVICES. The board may contract with a
political subdivision or governmental agency for the district to
provide investigatory or other services for the hospital, ancillary
health care, or welfare needs of district inhabitants. (Acts 62nd
Leg., R.S., Ch. 872, Sec. 5(a) (part).)
       Sec.1070.115.PROVISION OF SERVICES OUTSIDE DISTRICT. The
board may provide health care services outside the district for the
care and treatment of the sick or injured persons of any
jurisdiction. (Acts 62nd Leg., R.S., Ch. 872, Sec. 5(a) (part).)
       Sec.1070.116.PAYMENT FOR TREATMENT; PROCEDURES. (a)
When a patient is admitted to a district facility, the district
administrator may have an inquiry made into the circumstances of:
             (1)  the patient; and
             (2)  the patient's relatives who are legally liable for
the patient's support.
       (b)  If the district administrator determines that the
patient or those relatives cannot pay all or part of the costs of
the care and treatment provided to the patient by the district and
that payment is not available from any other source, the amount of
the costs that cannot be paid becomes a charge against the district.
       (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)  determine the patient's ability to pay; and
             (2)  issue any appropriate orders.
       (f)  The final order may be appealed to the district court.
The substantial evidence rule applies to the appeal. (Acts 62nd
Leg., R.S., Ch. 872, Sec. 17.)
       Sec.1070.117.AUTHORITY TO SUE AND BE SUED. (a)  The
district, through the board, may sue and be sued.
       (b)  The district is entitled to all causes of action and
defenses to which similar authorities performing only governmental
functions are entitled.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 5(a)
(part).)
[Sections 1070.118-1070.150 reserved for expansion]
SUBCHAPTER D.  CHANGE IN BOUNDARIES
       Sec.1070.151.TERRITORY THAT MAY BE ANNEXED.  (a)   The
district may annex territory that is not located in:
             (1)  Hansford County;
             (2)  the boundaries of another hospital district; or
             (3)  the proposed boundaries of another hospital
district authorized by the legislature under Section 9, Article IX,
Texas Constitution.
       (b)  Territory may be annexed in one or more tracts.  Each
tract must be contiguous to:
             (1)  the district; or
             (2)  territory proposed to be annexed to the district.  
(Acts 62nd Leg., R.S., Ch. 872, Sec. 1A(a).)
       Sec.1070.152.PETITION TO ANNEX TERRITORY.  (a)  A petition
requesting that territory be annexed to the district may be
presented to the board.  The petition must:
             (1)  describe the tract or tracts of land to be annexed;
and
             (2)  be signed by 100 or a majority of the registered
voters who:
                   (A)  reside in the territory to be annexed; and
                   (B)  own property that will be subject to district
taxation if the territory is annexed.
       (b)  This chapter does not prohibit simultaneous action on
several petitions for annexation.  Each ballot proposition must be
submitted for each different territory proposed to be annexed, and
an election held in each territory represented by a petition.
       (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. 872, Secs. 1A(b) (part), (f).)
       Sec.1070.153.ELECTION ORDER.  (a)  If, on receipt of a
petition, the board finds that annexing the territory is in the
district's best interest, the board shall within 90 days of the
board's finding:
             (1)  approve the annexation of the territory described
in the petition; and
             (2)  order an election on the question of annexing the
territory to the district.
       (b)  The election order shall provide for a separate
election:
             (1)  in the territory proposed to be annexed; and
             (2)  in the district.
       (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. 872, Secs. 1A(b) (part), (d)
(part), 3(a) (part).)
       Sec.1070.154.BALLOT.  The ballot for the election shall be
printed to permit voting for or against the proposition:  "The
establishment of the Hansford County Hospital District with
extended boundaries and establishment of a hospital district tax at
a rate not to exceed 50 cents on the $100 valuation on all taxable
property in the extended boundaries of the hospital district that
is subject to hospital district taxation for hospital purposes."  
(Acts 62nd Leg., R.S., Ch. 872, Sec. 1A(b) (part).)
       Sec.1070.155.NOTICE OF ELECTION.  (a)  Notice of the
election shall be given by publishing once a week for two
consecutive weeks a substantial copy of the election order in a
newspaper or newspapers that individually or collectively have
general circulation in the county or district.
       (b)  The first publication must appear at least 30 days
before the date of the election.  (Acts 62nd Leg., R.S., Ch. 872,
Secs. 1A(d) (part), 3(a) (part).)
       Sec.1070.156.ELECTION RESULTS. (a) Territory may not be
annexed to the district unless:
             (1)  an election is held in accordance with this
subchapter; and
             (2)  the annexation is approved by a majority of the
voters voting in the election in:
                   (A)  the district; and
                   (B)  the territory proposed to be annexed.
       (b)  If the territory is annexed to the district, a certified
copy of the order canvassing the returns of the election shall be
filed and recorded in the deed records of each county in which the
district is located following the annexation election.
        (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. 872, Secs. 1A(c), (d)
(part), (e), 3(a) (part).)
       Sec.1070.157.EFFECT OF ANNEXATION.  (a)  Territory
annexed to the district is part of the district for all purposes.
       (b)  The annexation of territory to the district does not
change the manner in which the board or district officers are
selected. (Acts 62nd Leg., R.S., Ch. 872, Sec. 1A(g).)
[Sections 1070.158-1070.200 reserved for expansion]
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
       Sec.1070.201.BUDGET. (a) The district administrator
shall prepare an annual budget for approval by the board.
       (b)  The proposed budget must contain a complete financial
statement of:
             (1)  the outstanding obligations of the district;
             (2)  the cash on hand in each district fund;
             (3)  the money received by the district from all
sources during the previous year;
             (4)  the money available to the district from all
sources during the ensuing year;
             (5)  the balances expected at the end of the year in
which the budget is being prepared;
             (6)  the estimated revenue and balances available to
cover the proposed budget;
             (7)  the estimated tax rate required; and
             (8)  the proposed expenditures and disbursements and
the estimated receipts and collections for the following fiscal
year.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 6 (part).)
       Sec.1070.202.NOTICE; HEARING; ADOPTION OF BUDGET. (a)
The board shall hold a public hearing on the proposed annual budget.
       (b)  At least 10 days before the date of the hearing, notice
of the hearing shall be published one time in a newspaper or
newspapers that individually or collectively have general
circulation in the district.
       (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 interests of the taxpayers
and that the law warrants. (Acts 62nd Leg., R.S., Ch. 872, Sec. 6
(part).)
       Sec.1070.203.AMENDMENTS TO BUDGET. The annual budget may
be amended as required by circumstances. The board must approve all
amendments. (Acts 62nd Leg., R.S., Ch. 872, Sec. 6 (part).)
       Sec.1070.204.RESTRICTION ON EXPENDITURES. Money may be
spent only for an expense included in the budget or an amendment to
the budget. (Acts 62nd Leg., R.S., Ch. 872, Sec. 6 (part).)
       Sec.1070.205.FISCAL YEAR. (a) The district operates on a
fiscal year established by the board.
       (b)  The fiscal year may not be changed more than once in a
24-month period. (Acts 62nd Leg., R.S., Ch. 872, Sec. 6 (part).)
       Sec.1070.206.AUDIT. (a)  The board shall have an
independent audit made of the district's financial condition for
the fiscal year.
       (b)  As soon as the audit is completed, the audit shall be
filed at the district's office. (Acts 62nd Leg., R.S., Ch. 872,
Sec. 6 (part).)
       Sec.1070.207.INSPECTION OF AUDIT AND DISTRICT RECORDS.
The audit and other district records shall be open to inspection at
the district's principal office. (Acts 62nd Leg., R.S., Ch. 872,
Sec. 6 (part).)
       Sec.1070.208.FINANCIAL REPORT. As soon as practicable
after the close of each fiscal year, the district administrator
shall prepare for the board:
             (1)  a complete sworn statement of all district money;
and
             (2)  a complete account of the disbursements of that
money. (Acts 62nd Leg., R.S., Ch. 872, Sec. 6 (part).)
       Sec.1070.209.DEPOSITORY. (a) The board shall select one
or more banks inside or outside the district to serve as a
depository for district money.
       (b)  District money, other than money invested as provided by
Section 1070.210(b), and money transmitted to a bank for payment of
bonds or obligations issued or assumed by the district, shall be
deposited as received with the depository bank and shall remain on
deposit.
       (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)  make other investments authorized by Chapter 2256,
Government Code. (Acts 62nd Leg., R.S., Ch. 872, Sec. 11.)
       Sec.1070.210.SPENDING AND INVESTMENT RESTRICTIONS. (a)
Except as otherwise provided by Sections 1070.062, 1070.063,
1070.064, 1070.108(c), and 1070.211 and by Subchapter F, the
district may not incur an obligation payable from district revenue
other than the revenue on hand or to be on hand in the current and
following district fiscal years.
       (b)  The board may invest operating, depreciation, or
building money only in funds or securities specified by Chapter
2256, Government Code. (Acts 62nd Leg., R.S., Ch. 872, Secs. 5(a)
(part), 10 (part).)
       Sec.1070.211.AUTHORITY TO BORROW MONEY; SECURITY. (a)
The district may borrow money for district operating expenses in an
amount not to exceed the amount of tax or other revenue the district
expects to receive during the fiscal year in which the money is
borrowed.
       (b)  To repay the debt, the board may pledge all or part of
the tax or other revenue received during the fiscal year in which
the board borrows money under this section. (Acts 62nd Leg., R.S.,
Ch. 872, Sec. 15(d).)
[Sections 1070.212-1070.250 reserved for expansion]
SUBCHAPTER F. BONDS
       Sec.1070.251.OBLIGATIONS AND CREDIT AGREEMENTS. The
district may issue, sell, and deliver obligations and execute
corresponding credit agreements in the manner provided by Chapters
1201 and 1371, Government Code. (Acts 62nd Leg., R.S., Ch. 872,
Sec. 8A.)
       Sec.1070.252.GENERAL OBLIGATION BONDS. The board may
issue and sell general obligation bonds in the name and on the faith
and credit of the district for any purpose relating to:
             (1)  the purchase, construction, acquisition, repair,
or renovation of buildings or improvements; and
             (2)  equipping buildings or improvements for hospital
and ancillary health care purposes. (Acts 62nd Leg., R.S., Ch. 872,
Sec. 7 (part).)
       Sec.1070.253.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At
the time general obligation bonds are issued under Section
1070.252, the board shall impose an ad valorem tax at a rate
sufficient to create an interest and sinking fund to pay the
principal of and interest on the bonds as the bonds mature.
       (b)  The tax required by this section together with any other
ad valorem tax the district imposes may not in any year exceed the
tax rate approved by the voters at the election authorizing the
imposition of the tax. (Acts 62nd Leg., R.S., Ch. 872, Sec. 7
(part).)
       Sec.1070.254.GENERAL OBLIGATION BOND ELECTION. (a) The
district may issue general obligation bonds only if the bonds are
authorized by a majority of the district voters voting at an
election held for that purpose.
       (b)  The order calling the election shall provide for clerks
as in county elections and must specify:
             (1)  the date of the election;
             (2)  the location of the polling places;
             (3)  the presiding and alternate election judges for
each polling place;
             (4)  the amount of the bonds to be authorized;
             (5)  the maximum interest rate of the bonds; and
             (6)  the maximum maturity of the bonds.
       (c)  Notice of a bond election shall be given as provided by
Section 1251.003, Government Code. (Acts 62nd Leg., R.S., Ch. 872,
Sec. 7 (part).)
       Sec.1070.255.REVENUE BONDS. (a) The board may issue
revenue bonds to:
             (1)  purchase, construct, acquire, repair, renovate,
or equip buildings or improvements for hospital or ancillary health
care purposes; or
             (2)  acquire sites to be used for hospital or ancillary
health care purposes.
       (b)  The bonds must be payable from and secured by a pledge of
all or part of the revenue derived from the operation of the
district's hospitals or ancillary health care facilities.
       (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. 872, Sec. 8(b) (part).)
       Sec.1070.256.REFUNDING BONDS. (a) The board may issue
refunding bonds to refund outstanding indebtedness issued or
assumed by the district.
       (b)  A refunding bond may be:
             (1)  sold, with the proceeds of the refunding bond
applied to the payment of outstanding indebtedness; or
             (2)  exchanged wholly or partly for not less than a
similar principal amount of outstanding indebtedness. (Acts 62nd
Leg., R.S., Ch. 872, Secs. 8(a) (part), (b) (part).)
       Sec.1070.257.MATURITY OF BONDS. District bonds must
mature not later than 40 years after the date of issuance. (Acts
62nd Leg., R.S., Ch. 872, Sec. 8(c) (part).)
       Sec.1070.258.EXECUTION OF BONDS. (a) The board president
shall execute district bonds in the district's name.
       (b)  The board secretary shall countersign the bonds in the
manner provided by Chapter 618, Government Code. (Acts 62nd Leg.,
R.S., Ch. 872, Sec. 8(c) (part).)
       Sec.1070.259.BONDS EXEMPT FROM TAXATION. The following
are exempt from taxation by this state or a political subdivision of
this state:
             (1)  bonds issued by the district;
             (2)  the transfer and issuance of the bonds; and
             (3)  profits made in the sale of the bonds. (Acts 62nd
Leg., R.S., Ch. 872, Sec. 21 (part).)
[Sections 1070.260-1070.300 reserved for expansion]
SUBCHAPTER G. TAXES
       Sec.1070.301.IMPOSITION OF AD VALOREM TAX. (a) The board
shall impose a tax on all property in the district subject to
district taxation.
       (b)  The board shall impose the tax to:
             (1)  pay the interest on and create a sinking fund for
bonds and other obligations issued or assumed by the district for
hospital purposes;
             (2)  provide for the operation and maintenance of the
district and hospital system;
             (3)  make improvements and additions to the hospital
system; and
             (4)  acquire necessary sites for the hospital system by
purchase, lease, or condemnation. (Acts 62nd Leg., R.S., Ch. 872,
Secs. 12 (part), 15(a) (part).)
       Sec.1070.302.TAX RATE. (a) The board may impose the tax
at a rate not to exceed 50 cents on each $100 valuation of taxable
property in the district unless the maximum tax rate is increased as
provided by Section 1070.303.
       (b)  In setting the tax rate, the board shall consider the
income of the district from sources other than taxation. (Acts 62nd
Leg., R.S., Ch. 872, Secs. 3(b) (part), 12 (part).)
       Sec.1070.303.ELECTION TO INCREASE MAXIMUM TAX RATE.  (a)  
The board may order an election to increase the district's maximum
tax rate to a rate not to exceed 75 cents on each $100 valuation of
taxable property in the district.
       (b)  The maximum tax rate may not be increased unless the
increase is approved by a majority of the district voters voting in
an election held for that purpose.
       (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. 872, Sec. 3(d).)
       Sec.1070.304.TAX ASSESSOR-COLLECTOR. The board may
provide for the appointment of a tax assessor-collector for the
district or may contract for the assessment and collection of taxes
as provided by the Tax Code. (Acts 62nd Leg., R.S., Ch. 872, Sec.
15(c).)
CHAPTER 1071.  OCHILTREE COUNTY HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1071.001.  DEFINITIONS
Sec. 1071.002.  AUTHORITY FOR OPERATION
Sec. 1071.003.  ESSENTIAL PUBLIC FUNCTION; POLITICAL
                 SUBDIVISION
Sec. 1071.004.  DISTRICT TERRITORY
Sec. 1071.005.  CORRECTION OF INVALID PROCEDURES
[Sections 1071.006-1071.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 1071.051.  BOARD ELECTION; TERM
Sec. 1071.052.  NOTICE OF ELECTION
Sec. 1071.053.  BALLOT PETITION
Sec. 1071.054.  QUALIFICATIONS FOR OFFICE
Sec. 1071.055.  BOND; RECORD OF BOND AND OATH OR
                 AFFIRMATION OF OFFICE
Sec. 1071.056.  BOARD VACANCY
Sec. 1071.057.  OFFICERS
Sec. 1071.058.  COMPENSATION; EXPENSES
Sec. 1071.059.  VOTING REQUIREMENT
Sec. 1071.060.  DISTRICT ADMINISTRATOR
Sec. 1071.061.  GENERAL DUTIES OF DISTRICT
                 ADMINISTRATOR
Sec. 1071.062.  EMPLOYEES
Sec. 1071.063.  RECRUITMENT OF MEDICAL STAFF AND
                 EMPLOYEES
Sec. 1071.064.  APPOINTMENT AND REMOVAL OF MEDICAL
                 STAFF
Sec. 1071.065.  HEALTH CARE EDUCATIONAL PROGRAMS
Sec. 1071.066.  RETIREMENT BENEFITS
Sec. 1071.067.  LIABILITY INSURANCE; INDEMNIFICATION
Sec. 1071.068.  MAINTENANCE OF RECORDS; PUBLIC
                 INSPECTION
Sec. 1071.069.  SEAL
[Sections 1071.070-1071.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 1071.101.  DISTRICT RESPONSIBILITY
Sec. 1071.102.  RESTRICTION ON COUNTY OR MUNICIPALITY
                 TAXATION
Sec. 1071.103.  MANAGEMENT AND CONTROL
Sec. 1071.104.  HOSPITAL SYSTEM
Sec. 1071.105.  RULES
Sec. 1071.106.  PURCHASING AND ACCOUNTING PROCEDURES
Sec. 1071.107.  MOBILE EMERGENCY MEDICAL SERVICE
Sec. 1071.108.  DISTRICT PROPERTY, FACILITIES, AND
                 EQUIPMENT
Sec. 1071.109.  EMINENT DOMAIN
Sec. 1071.110.  GIFTS AND ENDOWMENTS
Sec. 1071.111.  CONTRACTS FOR CARE AND TREATMENT
Sec. 1071.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                 FOR INVESTIGATORY OR OTHER SERVICES
Sec. 1071.113.  PROVISION OF SERVICES OUTSIDE DISTRICT
Sec. 1071.114.  JOINT ADMINISTRATION OR DELIVERY OF
                 HEALTH CARE SERVICES
Sec. 1071.115.  PAYMENT FOR TREATMENT; PROCEDURES
Sec. 1071.116.  REIMBURSEMENT FOR SERVICES
Sec. 1071.117.  NONPROFIT CORPORATION
Sec. 1071.118.  AUTHORITY TO SUE AND BE SUED
[Sections 1071.119-1071.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 1071.151.  BUDGET
Sec. 1071.152.  PROPOSED BUDGET: NOTICE AND HEARING
Sec. 1071.153.  FISCAL YEAR
Sec. 1071.154.  ANNUAL AUDIT
Sec. 1071.155.  DEPOSITORY OR TREASURER
Sec. 1071.156.  AUTHORITY TO BORROW MONEY
[Sections 1071.157-1071.200 reserved for expansion]
SUBCHAPTER E. BONDS
Sec. 1071.201.  GENERAL OBLIGATION BONDS
Sec. 1071.202.  TAX TO PAY GENERAL OBLIGATION BONDS
Sec. 1071.203.  GENERAL OBLIGATION BOND ELECTION
Sec. 1071.204.  MATURITY OF GENERAL OBLIGATION BONDS
Sec. 1071.205.  EXECUTION OF GENERAL OBLIGATION BONDS
Sec. 1071.206.  REVENUE BONDS
Sec. 1071.207.  REFUNDING BONDS
Sec. 1071.208.  BONDS EXEMPT FROM TAXATION
[Sections 1071.209-1071.250 reserved for expansion]
SUBCHAPTER F. TAXES
Sec. 1071.251.  IMPOSITION OF AD VALOREM TAX
Sec. 1071.252.  TAX RATE
Sec. 1071.253.  TAX ASSESSOR-COLLECTOR
CHAPTER 1071.  OCHILTREE COUNTY HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.1071.001.DEFINITIONS.  In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Ochiltree County Hospital
District. (New.)
       Sec.1071.002.AUTHORITY FOR OPERATION. The district
operates under the authority of and has the powers and
responsibilities provided by Section 11, Article IX, Texas
Constitution. (Acts 57th Leg., R.S., Ch. 103, Sec. 1 (part).)
       Sec. 1071.003.  ESSENTIAL PUBLIC FUNCTION; POLITICAL
SUBDIVISION. The district is:
             (1)  a public entity performing an essential public
function; and
             (2)  a political subdivision of this state. (Acts 57th
Leg., R.S., Ch. 103, Secs. 6A(c) (part), 18 (part).)
       Sec.1071.004.DISTRICT TERRITORY. The boundaries of the
district are coextensive with the boundaries of Ochiltree County.
(Acts 57th Leg., R.S., Ch. 103, Sec. 1 (part).)
       Sec.1071.005.CORRECTION OF INVALID PROCEDURES. If a
court holds that any procedure under this chapter violates the
constitution of this state or of the United States, the district by
resolution may provide an alternative procedure that conforms with
the constitution. (Acts 57th Leg., R.S., Ch. 103, Sec. 19 (part).)
[Sections 1071.006-1071.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
       Sec.1071.051.BOARD ELECTION; TERM. (a) The board
consists of five directors elected from the district at large.
       (b)  Unless four-year terms are established under Section
285.081, Health and Safety Code:
             (1)  directors serve staggered two-year terms; and
             (2)  an election shall be held on the uniform election
date in May of each year to elect the appropriate number of
directors. (Acts 57th Leg., R.S., Ch. 103, Secs. 3(a) (part), (e)
(part).)
       Sec.1071.052.NOTICE OF ELECTION. Not earlier than the
30th day or later than the 10th day before the date of an election of
directors, notice of the election shall be published one time in a
newspaper of general circulation in Ochiltree County. (Acts 57th
Leg., R.S., Ch. 103, Sec. 3(e) (part).)
       Sec.1071.053.BALLOT PETITION. A person who wants to have
the person's name printed on the ballot as a candidate for director
must file with the board secretary a petition requesting that
action. The petition must be:
             (1)  signed by at least 25 registered voters; and
             (2)  filed not later than the 25th day before the date
of the election. (Acts 57th Leg., R.S., Ch. 103, Sec. 3(e) (part).)
       Sec.1071.054.QUALIFICATIONS FOR OFFICE. (a) A person may
not be elected or appointed as a director unless the person is:
             (1)  a district resident; and
             (2)  more than 21 years of age.
       (b)  An employee or medical staff member of the district may
not serve as a director.  (Acts 57th Leg., R.S., Ch. 103, Sec. 3(b)
(part).)
       Sec. 1071.055.  BOND; RECORD OF BOND AND OATH OR AFFIRMATION
OF OFFICE. (a) Each director shall execute a good and sufficient
bond for $1,000 that is:
             (1)  payable to the district; and
             (2)  conditioned on the faithful performance of the
director's duties.
       (b)  The district may pay for the directors' bonds with
district money.
       (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.1071.056.BOARD VACANCY. (a) If a vacancy occurs in
the office of director, the remaining directors shall appoint a
director for the unexpired term.
       (b)  If the number of directors is reduced to fewer than
three for any reason, the remaining directors shall immediately
call a special election to fill the vacancies. If the remaining
directors do not call the election, a district court, on
application of a district voter or taxpayer, may order the
directors to hold the election. (Acts 57th Leg., R.S., Ch. 103,
Sec. 3(d) (part).)
       Sec.1071.057.OFFICERS. The board shall elect from among
its members a president and a secretary. (Acts 57th Leg., R.S., Ch.
103, Sec. 3(d) (part).)
       Sec.1071.058.COMPENSATION; EXPENSES. A director serves
without compensation but may be reimbursed for actual expenses
incurred in the performance of official duties on approval of the
expenses by the entire board. (Acts 57th Leg., R.S., Ch. 103, Sec.
4 (part).)
       Sec.1071.059.VOTING REQUIREMENT. A concurrence of three
directors is sufficient in any matter relating to district
business. (Acts 57th Leg., R.S., Ch. 103, Sec. 3(d) (part).)
       Sec.1071.060.DISTRICT ADMINISTRATOR. (a) The board may
appoint a qualified person as district administrator.
       (b)  The district administrator serves at the will of the
board and receives the compensation determined by the board. (Acts
57th Leg., R.S., Ch. 103, Sec. 8(b) (part).)
       Sec.1071.061.GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
Subject to the limitations prescribed by the board, the district
administrator shall:
             (1)  supervise the work and activities of the district;
and
             (2)  direct the general affairs of the district. (Acts
57th Leg., R.S., Ch. 103, Sec. 8(b) (part).)
       Sec.1071.062.EMPLOYEES.  (a)  The board may employ a
general manager, attorney, bookkeeper, and architect.
       (b)  The board may employ technicians, nurses, fiscal
agents, accountants, and other necessary employees.
       (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.1071.063.RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES.  
The board may spend district money, enter into agreements, and take
other necessary action to recruit physicians and other persons to
serve as medical staff members or district employees, including:
             (1)  advertising and marketing;
             (2)  paying travel, recruitment, and relocation
expenses;
             (3)  providing a loan or scholarship to a physician or a
person who:
                   (A)  is currently enrolled in health care
education courses at an institution of higher education; and
                   (B)  contractually agrees to become a district
employee or medical staff member; and
             (4)  providing on a rent-free basis or subsidizing the
cost of office space or other facilities for a health care
professional, including a physician.  (Acts 57th Leg., R.S., Ch.
103, Secs. 8B(a), (k).)
       Sec.1071.064.APPOINTMENT AND REMOVAL OF MEDICAL STAFF.  
(a)  The board may appoint to or remove from the medical staff any
doctors as necessary for the efficient operation of the district
and may make temporary appointments as necessary.
       (b)  The board may adopt policies relating to the appointment
and removal of medical staff members.  (Acts 57th Leg., R.S., Ch.
103, Sec. 8(d) (part).)
       Sec.1071.065.HEALTH CARE EDUCATIONAL PROGRAMS.  The
board may spend district money, enter into agreements, or take
other necessary action to conduct, participate in, or assist in
providing health care educational programs for current or
prospective medical staff members or employees of the district.
(Acts 57th Leg., R.S., Ch. 103, Sec. 8B(l).)
       Sec.1071.066.RETIREMENT BENEFITS. The board may provide
retirement benefits for district employees by:
             (1)  establishing or administering a retirement
program; or
             (2)  participating in:
                   (A)  the Texas County and District Retirement
System; or
                   (B)  another statewide retirement system in which
the district is eligible to participate. (Acts 57th Leg., R.S., Ch.
103, Sec. 8B(m).)
       Sec.1071.067.LIABILITY INSURANCE; INDEMNIFICATION. (a)
The board may defend or indemnify an officer, director, board
appointee, medical staff member, or district employee against or
from a claim, expense, or liability arising from duties performed
in that capacity.
       (b)  The board may purchase liability insurance coverage or
establish a self-insurance program to fund an indemnity obligation
under this section. (Acts 57th Leg., R.S., Ch. 103, Sec. 4 (part).)
       Sec.1071.068.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.
Except as provided by Section 1071.055, all district records,
including books, accounts, notices, minutes, and all other matters
of the district and the operation of its facilities, shall be:
             (1)  maintained at the district office; and
             (2)  open to public inspection at the district office
at all reasonable hours. (Acts 57th Leg., R.S., Ch. 103, Sec.
8(e).)
       Sec.1071.069.SEAL. The board may adopt a seal for the
district. (Acts 57th Leg., R.S., Ch. 103, Sec. 8(a) (part).)
[Sections 1071.070-1071.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.1071.101.DISTRICT RESPONSIBILITY. The district has
full responsibility for providing medical and hospital care for the
district's needy and indigent residents. (Acts 57th Leg., R.S.,
Ch. 103, Sec. 13 (part).)
       Sec. 1071.102.  RESTRICTION ON COUNTY OR MUNICIPALITY
TAXATION. Ochiltree County or a municipality in Ochiltree County
may not impose a tax for hospital purposes. (Acts 57th Leg., R.S.,
Ch. 103, Sec. 13 (part).)
       Sec.1071.103.MANAGEMENT AND CONTROL. The management and
control of the district is vested in the board. (Acts 57th Leg.,
R.S., Ch. 103, Sec. 4 (part).)
       Sec.1071.104.HOSPITAL SYSTEM.  (a)  The district may
provide for the establishment of a hospital or hospital system to
provide medical and hospital care to the district's needy
residents.
       (b)  The hospital system may include:
             (1)  facilities and equipment for domiciliary care and
treatment of sick, injured, or geriatric patients;
             (2)  outpatient clinics;
             (3)  rural health clinics;
             (4)  convalescent home facilities;
             (5)  assisted living or personal care facilities;
             (6)  physicians' offices;
             (7)  home health care services;
             (8)  durable medical equipment;
             (9)  long-term care;
             (10)  skilled nursing care;
             (11)  intermediate nursing care;
             (12)  hospice care;
             (13)  community mental health centers;
             (14)  alcohol or chemical dependency centers; and
             (15)  any other facilities or equipment the board
considers necessary for hospital purposes. (Acts 57th Leg., R.S.,
Ch. 103, Secs. 2 (part), 8B(b) (part).)
       Sec.1071.105.RULES. (a)  The board may adopt rules
governing the operation of the district, including district
facilities.
       (b)  On approval by the board, the rules may be published in
booklet form at district expense and made available to any taxpayer
on request. (Acts 57th Leg., R.S., Ch. 103, Sec. 8(f).)
       Sec.1071.106.PURCHASING AND ACCOUNTING PROCEDURES. (a)  
The board may prescribe the method and manner of making purchases
and expenditures by and for the district.
       (b)  The board shall prescribe:
             (1)  all accounting and control procedures; and
             (2)  the method of purchasing necessary supplies,
materials, and equipment.  (Acts 57th Leg., R.S., Ch. 103, Sec. 8(a)
(part).)
       Sec.1071.107.MOBILE EMERGENCY MEDICAL SERVICE.  The
district may operate or assist in the operation of a mobile
emergency medical service as part of the hospital system. (Acts
57th Leg., R.S., Ch. 103, Sec. 8B(b) (part).)
       Sec. 1071.108.  DISTRICT PROPERTY, FACILITIES, AND
EQUIPMENT. (a) The board shall determine:
             (1)  the type, number, and location of facilities
required to maintain an adequate hospital system; and
             (2)  the type of equipment necessary for hospital care.
       (b)  The board may:
             (1)  acquire by lease, purchase, or lease to purchase
or may construct, repair, or renovate property, including
facilities or equipment, for use in the district's hospital system;
and
             (2)  mortgage or pledge the property as security for
the payment of the purchase price.
       (c)  The board may lease hospital 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 or equipment, to a public or private entity.
       (e)  The district may operate any facility covered by this
section or contract with any person to manage or operate the
facility. (Acts 57th Leg., R.S., Ch. 103, Secs. 8B(a), (b) (part),
(c), (d), (e), (f).)
       Sec.1071.109.EMINENT DOMAIN. (a) The district may
exercise the power of eminent domain to acquire a fee simple or
other interest in any type of property, real, personal, or mixed,
located in district territory, if the interest is necessary or
convenient for the district to exercise a right, power, privilege,
or function conferred on the district by this chapter.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code, except the
district is not required to deposit in the trial court money or a
bond as provided by Section 21.021(a), Property Code.
       (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.1071.110.GIFTS AND ENDOWMENTS. The board may accept
for the district a gift or endowment to be held in trust and
administered by the board for the purposes and under the
directions, limitations, or other provisions prescribed in writing
by the donor that are not inconsistent with the proper management
and objectives of the district. (Acts 57th Leg., R.S., Ch. 103,
Sec. 16.)
       Sec.1071.111.CONTRACTS FOR CARE AND TREATMENT. (a) The
board may contract with a hospital, hospital authority, or
political subdivision of this state located outside the district's
boundaries to reimburse the district for the care and treatment of a
sick or injured person of that entity.
       (b)  The board may contract with this state or a federal
agency for the state or agency to reimburse the district for the
treatment of a sick or injured person. (Acts 57th Leg., R.S., Ch.
103, Sec. 8B(h) (part).)
       Sec. 1071.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
INVESTIGATORY OR OTHER SERVICES. The board may contract with a
political subdivision or governmental agency to provide
investigatory or other services related to facilities for the
medical care, hospital, or welfare needs of district inhabitants.
(Acts 57th Leg., R.S., Ch. 103, Sec. 8B(h) (part).)
       Sec.1071.113.PROVISION OF SERVICES OUTSIDE DISTRICT.  
Subject to board approval the district may provide primary care,
emergency services, preventative medical services, and other
health-related services outside the district, provided that the
services serve the purpose of the district as established by this
chapter. (Acts 57th Leg., R.S., Ch. 103, Sec. 8B(g).)
       Sec. 1071.114.  JOINT ADMINISTRATION OR DELIVERY OF HEALTH
CARE SERVICES.  (a)  To provide joint administration or delivery of
health care services, the district may contract with, affiliate
with, or enter into another arrangement with:
             (1)  a managed care system;
             (2)  a preferred provider organization;
             (3)  a health maintenance organization;
             (4)  another provider of an alternative health care or
delivery system; or
             (5)  a private hospital.
       (b)  The district may spend district money to establish and
maintain a partnership, corporation, or other entity involved in
the delivery of health care services. (Acts 57th Leg., R.S., Ch.
103, Sec. 8B(i).)
       Sec.1071.115.PAYMENT FOR TREATMENT; PROCEDURES. (a)
When a patient who resides in Ochiltree County is admitted to a
district facility, the board shall have an inquiry made into the
circumstances of:
             (1)  the patient; and
             (2)  the patient's relatives who are legally liable for
the patient's support.
       (b)  If an agent designated by the district to handle the
inquiry determines that the patient or those relatives cannot pay
all or part of the costs of the patient's care and treatment in the
hospital, the amount of the costs that cannot be paid becomes a
charge against the district.
       (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.1071.116.REIMBURSEMENT FOR SERVICES.  (a) The board
shall require a county, municipality, or public hospital located
outside the district to reimburse the district for the district's
care and treatment of a sick or injured person for whom that county,
municipality, or public hospital has an obligation to provide care,
as provided by Chapter 61, Health and Safety Code.
       (b)  The board shall seek reimbursement under Article
104.002, Code of Criminal Procedure, for the district's care and
treatment of a person who is confined in an Ochiltree County jail
facility and is not a district resident. (Acts 57th Leg., R.S., Ch.
103, Secs. 14A(a) (part), (b).)
       Sec.1071.117.NONPROFIT CORPORATION. (a) The district
may create and sponsor a nonprofit corporation under the Business
Organizations Code and may contribute money to or solicit money for
the corporation.
       (a-1)  On or before December 31, 2009, the district may
create and sponsor a nonprofit corporation under the Texas
Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
Texas Civil Statutes) or the Business Organizations Code, as
applicable, and may contribute money to or solicit money for the
corporation.
       (b)  The corporation may use money, other than money the
corporation pays to the district, only to provide health care or
other services the district is authorized to provide under this
chapter.
       (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. 8B(j).)
       Sec.1071.118.AUTHORITY TO SUE AND BE SUED. As a
governmental agency, the district may sue and be sued in its own
name in any court of this state. (Acts 57th Leg., R.S., Ch. 103,
Sec. 18 (part).)
[Sections 1071.119-1071.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
       Sec.1071.151.BUDGET. The board annually shall require a
budget to be prepared for the next fiscal year that includes:
             (1)  proposed expenditures and disbursements;
             (2)  estimated receipts and collections; and
             (3)  the amount of taxes required to be imposed for the
year. (Acts 57th Leg., R.S., Ch. 103, Sec. 9(b) (part).)
       Sec.1071.152.PROPOSED BUDGET:NOTICE AND HEARING. (a)
The board shall hold a public hearing on the proposed budget.
       (b)  Notice of the hearing must be published at least once in
a newspaper of general circulation in Ochiltree County not later
than the 10th day before the date of the hearing.
       (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.1071.153.FISCAL YEAR. The district operates on a
fiscal year that begins on October 1 and ends on September 30. (Acts
57th Leg., R.S., Ch. 103, Sec. 9(a) (part).)
       Sec.1071.154.ANNUAL AUDIT. (a)  The board annually shall
have an independent audit made of the district's books and records
for the fiscal year.
       (b)  Not later than December 31 each year, the audit shall be
filed:
             (1)  with the comptroller; and
             (2)  at the district office. (Acts 57th Leg., R.S., Ch.
103, Sec. 9(a) (part).)
       Sec.1071.155.DEPOSITORY OR TREASURER. (a) The board by
resolution shall designate a bank or banks in Ochiltree County as
the district's depository or treasurer.  A designated bank serves
for three years and until a successor is designated.
       (b)  All income received by the district shall be deposited
in the district depository.
       (c)  All district money shall be secured in the manner
provided for securing county funds. (Acts 57th Leg., R.S., Ch. 103,
Secs. 5(b) (part), 11.)
       Sec.1071.156.AUTHORITY TO BORROW MONEY. The board may
borrow money for district purposes on district credit or secured by
district revenue.  (Acts 57th Leg., R.S., Ch. 103, Sec. 6B (part).)
[Sections 1071.157-1071.200 reserved for expansion]
SUBCHAPTER E. BONDS
       Sec.1071.201.GENERAL OBLIGATION BONDS. The board may
issue and sell general obligation bonds in the name and on the faith
and credit of the district for health care purposes and for any
purpose relating to:
             (1)  the purchase, construction, acquisition, repair,
or renovation of buildings or improvements; and
             (2)  equipping buildings or improvements for hospital
purposes. (Acts 57th Leg., R.S., Ch. 103, Secs. 6(a), (b) (part).)
       Sec.1071.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At
the time general obligation bonds are issued by the district under
Section 1071.201, the board shall impose an ad valorem tax at a rate
sufficient to create an interest and sinking fund to pay the
principal of and interest on the bonds as the bonds mature.
       (b)  The tax required by this section together with any other
ad valorem tax the district imposes may not in any year exceed 75
cents on each $100 valuation of all taxable property in the
district.  (Acts 57th Leg., R.S., Ch. 103, Sec. 6(b) (part).)
       Sec.1071.203.GENERAL OBLIGATION BOND ELECTION. (a)  The
district may issue general obligation bonds only if the bonds are
authorized by a majority of the district voters voting at an
election held for that purpose.
       (b)  The board may order the election on its own motion.
       (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 Ochiltree County once a week for two
consecutive weeks before the date of the election. The first
publication must occur at least 14 days before the date of the
election.  (Acts 57th Leg., R.S., Ch. 103, Sec. 6(d) (part).)
       Sec.1071.204.MATURITY OF GENERAL OBLIGATION BONDS.
District general obligation bonds must mature not later than 40
years after the date of issuance. (Acts 57th Leg., R.S., Ch. 103,
Sec. 6(d) (part).)
       Sec.1071.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)
The board president shall execute the general obligation bonds in
the district's name.
       (b)  The board secretary shall countersign the bonds. (Acts
57th Leg., R.S., Ch. 103, Sec. 6(c) (part).)
       Sec.1071.206.REVENUE BONDS. (a) The board may issue
revenue bonds to:
             (1)  purchase, construct, acquire, repair, renovate,
or equip buildings or improvements for hospital or health care
purposes; or
             (2)  acquire sites for hospital or health care
purposes.
       (b)  The bonds must be payable from and secured by a pledge of
all or part of the revenue derived from the operation of the
district's facilities.
       (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 accordance with the
procedures and requirements prescribed by Sections 264.042,
264.043, and 264.046-264.049, Health and Safety Code, for issuance
of revenue bonds by a county hospital authority. (Acts 57th Leg.,
R.S., Ch. 103, Sec. 6A(b) (part).)
       Sec.1071.207.REFUNDING BONDS. (a) The board may, without
an election, issue refunding bonds to refund outstanding bonds
issued or assumed by the district.
       (b)  A refunding bond may be:
             (1)  sold, with the proceeds of the refunding bond
applied to the payment of the bonds to be refunded; or
             (2)  exchanged wholly or partly for not less than a
similar amount of outstanding bonds and the unpaid matured interest
on the bonds. (Acts 57th Leg., R.S., Ch. 103, Secs. 6(d) (part),
(e) (part), 6A(b) (part).)
       Sec.1071.208.BONDS EXEMPT FROM TAXATION. The following
are exempt from taxation by this state or a political subdivision of
this state:
             (1)  bonds issued by the district;
             (2)  any transaction relating to the bonds; and
             (3)  profits made in the sale of the bonds. (Acts 57th
Leg., R.S., Ch. 103, Sec. 6A(c) (part).)
[Sections 1071.209-1071.250 reserved for expansion]
SUBCHAPTER F. TAXES
       Sec.1071.251.IMPOSITION OF AD VALOREM TAX. (a) On final
approval of the annual budget, the board shall impose a tax on all
property in the district subject to district taxation.
       (b)  The board shall impose the tax to:
             (1)  pay the interest on and create a sinking fund for
bonds issued or assumed by the district for hospital purposes;
             (2)  provide for operation and maintenance of the
hospital and hospital system;
             (3)  make improvements and additions to the hospital
system; and
             (4)  acquire necessary sites for the hospital system by
purchase, lease, or condemnation.  (Acts 57th Leg., R.S., Ch. 103,
Secs. 5(a) (part), (b) (part), 9(b) (part).)
       Sec.1071.252.TAX RATE. The board may impose the tax at a
rate not to exceed 75 cents on each $100 valuation of all taxable
property in the district. (Acts 57th Leg., R.S., Ch. 103, Sec. 5(a)
(part).)
       Sec.1071.253.TAX ASSESSOR-COLLECTOR. The tax
assessor-collector of Ochiltree County shall assess and collect
taxes imposed by the district. (Acts 57th Leg., R.S., Ch. 103,
Secs. 5(b) (part), 9(b) (part).)
       SECTION 1.03.  Subtitle C, Title 4, Special District Local
Laws Code, is amended by adding Chapter 3846 to read as follows:
CHAPTER 3846.  EAST MONTGOMERY COUNTY IMPROVEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3846.001.  DEFINITIONS
Sec. 3846.002.  EAST MONTGOMERY COUNTY IMPROVEMENT
                 DISTRICT
Sec. 3846.003.  PURPOSE; DECLARATION OF INTENT
Sec. 3846.004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 3846.005.  DISTRICT TERRITORY
Sec. 3846.006.  TORT LIABILITY
[Sections 3846.007-3846.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3846.051.  COMPOSITION OF BOARD; TERMS
Sec. 3846.052.  ELECTION OF DIRECTORS
Sec. 3846.053.  QUALIFICATIONS OF DIRECTOR
Sec. 3846.054.  PARTICIPATION IN VOTING
Sec. 3846.055.  LAW GOVERNING ADMINISTRATION OF BOARD
Sec. 3846.056.  OFFICERS
[Sections 3846.057-3846.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3846.101.  GENERAL POWERS OF DISTRICT
Sec. 3846.102.  RULES
Sec. 3846.103.  SPECIFIC POWERS RELATING TO IMPROVEMENT
                 PROJECTS OR SERVICES
Sec. 3846.104.  CONTRACTS; GRANTS; DONATIONS
Sec. 3846.105.  PEACE OFFICERS
Sec. 3846.106.  ECONOMIC DEVELOPMENT PROGRAMS
Sec. 3846.107.  ANNEXATION OR EXCLUSION OF TERRITORY
Sec. 3846.108.  NO EMINENT DOMAIN POWER
[Sections 3846.109-3846.150 reserved for expansion]
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 3846.151.  SALES AND USE TAX; EXCISE TAX
Sec. 3846.152.  TAX ELECTION PROCEDURES
Sec. 3846.153.  BALLOT WORDING
Sec. 3846.154.  IMPOSITION, COMPUTATION,
                 ADMINISTRATION, AND GOVERNANCE OF
                 TAXES
Sec. 3846.155.  TAX RATES
Sec. 3846.156.  ABOLITION OF TAX
Sec. 3846.157.  USE OF TAX
Sec. 3846.158.  EFFECTIVE DATE OF TAX OR TAX CHANGE
Sec. 3846.159.  AD VALOREM TAX PROHIBITED
Sec. 3846.160.  FEES; CHARGES
Sec. 3846.161.  CERTAIN RESIDENTIAL PROPERTY EXEMPT
Sec. 3846.162.  BORROWING MONEY
Sec. 3846.163.  PAYMENT OF EXPENSES
Sec. 3846.164.  BONDS
[Sections 3846.165-3846.200 reserved for expansion]
SUBCHAPTER E. DISSOLUTION
Sec. 3846.201.  DISSOLUTION BY BOARD ORDER
Sec. 3846.202.  ADMINISTRATION OF DISTRICT PROPERTY
                 FOLLOWING DISSOLUTION
CHAPTER 3846.  EAST MONTGOMERY COUNTY IMPROVEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.3846.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the district's board of directors.
             (2)  "District" means the East Montgomery County
Improvement District. (Acts 75th Leg., R.S., Ch. 1316, Secs. 3(1),
(2).)
       Sec. 3846.002.  EAST MONTGOMERY COUNTY IMPROVEMENT
DISTRICT. A special district known as the "East Montgomery County
Improvement District" is a governmental agency and political
subdivision of this state.  (Acts 75th Leg., R.S., Ch. 1316, Sec.
1(a).)
       Sec.3846.003.PURPOSE; DECLARATION OF INTENT. (a)  The
creation of the district is essential to accomplish the purposes of
Section 52, Article III, and Section 59, Article XVI, Texas
Constitution, and other public purposes stated in this chapter.
       (b)  The creation of the district is necessary to promote,
develop, encourage, and maintain employment, commerce, economic
development, and the public welfare in the eastern area of
Montgomery County.
       (c)  This chapter does not relieve Montgomery County or a
governmental agency, political subdivision, or municipality from
providing the level of services provided by the entity as of August
31, 1997, to the area of the district or to release the entity from
the obligations each entity has to provide services to that area.
The district is created to supplement and not to supplant the
county, governmental agency, political subdivision, or municipal
services provided in the district.  (Acts 75th Leg., R.S., Ch. 1316,
Sec. 2.)
       Sec.3846.004.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the district
will benefit from the works, projects, improvements, and services
to be provided by the district under powers granted by Section 52,
Article III, and Section 59, Article XVI, Texas Constitution, and
other powers granted under this chapter.
       (c)  Each improvement project authorized by this chapter is
essential to carry out a public purpose.
       (d)  The creation of the district is in the public interest
and is essential to:
             (1)  further the public purposes of developing and
diversifying the economy of the state;
             (2)  eliminate unemployment and underemployment; and
             (3)  develop or expand transportation and commerce.
       (e)  The district will:
             (1)  promote the health, safety, and general welfare of
residents, employers, employees, and consumers in the district and
of the public;
             (2)  promote and develop public transportation and
pedestrian facilities and systems by new and alternative means,
including securing expanded and improved transportation and
pedestrian facilities and systems;
             (3)  provide needed funding for the area in the
district to preserve, maintain, and enhance the economic health and
vitality of the area as a community and business center; and
             (4)  promote the health, safety, welfare, education,
convenience, and enjoyment of the public by:
                   (A)  improving, landscaping, and developing
certain areas in and adjacent to the district; and
                   (B)  providing public services and facilities in
and adjacent to the district that are necessary for the
restoration, preservation, enhancement, and enjoyment of scenic
and aesthetic beauty.
       (f)  The district will not act as the agent or
instrumentality of any private interest even though the district
will benefit many private interests as well as the public.  (Acts
75th Leg., R.S., Ch. 1316, Sec. 6.)
       Sec.3846.005.DISTRICT TERRITORY. Except as the board may
modify the territory of the district under Subchapter J, Chapter
49, Water Code, or other law, the territory of the district is
coextensive with the territory as of January 1, 1997, of the New
Caney Independent School District and the Splendora Independent
School District except that the district does not include:
             (1)  any part of the City of Houston as it existed on
January 1, 1997; and
             (2)  any portion of the New Caney Independent School
District as it exists on or after September 1, 2001, that is located
in Harris County. (Acts 75th Leg., R.S., Ch. 1316, Sec. 4; New.)
       Sec.3846.006.TORT LIABILITY.  The district is a
governmental unit for purposes of Chapter 101, Civil Practice and
Remedies Code, and operations of the district are considered for
all purposes, including the application of that chapter, to be
essential governmental functions and not proprietary functions.  
(Acts 75th Leg., R.S., Ch. 1316, Sec. 1(b).)
[Sections 3846.007-3846.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.3846.051.COMPOSITION OF BOARD; TERMS. (a)  The
district is governed by a board of eight directors.
       (b)  Directors serve staggered terms of four years, with four
directors' terms expiring July 1 of each even-numbered year. (Acts
75th Leg., R.S., Ch. 1316, Sec. 10.)
       Sec.3846.052.ELECTION OF DIRECTORS. An election to elect
the appropriate number of directors shall be held on the uniform
election date in May of each even-numbered year as provided by
Section 41.001(a), Election Code. (Acts 75th Leg., R.S., Ch. 1316,
Sec. 9(d).)
       Sec.3846.053.QUALIFICATIONS OF DIRECTOR. (a) To be
qualified to serve as a director, a person must be at least 18 years
old and:
             (1)  a district resident;
             (2)  an owner of real property in the district;
             (3)  an owner of stock, whether beneficial or
otherwise, of a corporate owner of real property in the district;
             (4)  an owner of a beneficial interest in a trust that
owns real property in the district; or
             (5)  an agent, employee, or tenant of a person
described by Subdivision (2), (3), or (4).
       (b)  For purposes of this section, a person or entity that
owns an interest in a general or limited partnership owning real
property in the district or that has a lease of real property in the
district with a remaining term of 10 years or more, excluding
options, is considered to be an owner of real property.  (Acts 75th
Leg., R.S., Ch. 1316, Sec. 12.)
       Sec.3846.054.PARTICIPATION IN VOTING. Regardless of a
statute to the contrary, a person who qualifies to serve on the
board is qualified to serve as a director and participate in all
votes pertaining to the business of the district. (Acts 75th Leg.,
R.S., Ch. 1316, Sec. 14.)
       Sec.3846.055.LAW GOVERNING ADMINISTRATION OF BOARD.
Sections 375.066, 375.067, 375.069, and 375.070, Local Government
Code, apply to the board as if the board were established under
Chapter 375, Local Government Code. (Acts 75th Leg., R.S., Ch.
1316, Sec. 11(a).)
       Sec.3846.056.OFFICERS. After the directors have been
elected and have qualified as provided by Section 375.067, Local
Government Code, they shall organize or reorganize by electing a
chair, a vice chair, a secretary, and other officers of the board as
the board considers necessary.  (Acts 75th Leg., R.S., Ch. 1316,
Sec. 11(b).)
[Sections 3846.057-3846.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.3846.101.GENERAL POWERS OF DISTRICT. The district
has:
             (1)  all powers necessary or required to accomplish the
purposes for which the district was created;
             (2)  the rights, powers, privileges, and other
functions of a municipal management district under Subchapter E,
Chapter 375, Local Government Code; and
             (3)  the powers given to an industrial development
corporation organized under the Development Corporation Act of 1979
(Article 5190.6, Vernon's Texas Civil Statutes). (Acts 75th Leg.,
R.S., Ch. 1316, Sec. 15.)
       Sec.3846.102.RULES. The district may adopt rules for:
             (1)  the administration and operation of the district;
             (2)  the use, enjoyment, availability, protection,
security, and maintenance of the district's property, including
facilities; and
             (3)  the provision of public safety and security in the
district. (Acts 75th Leg., R.S., Ch. 1316, Sec. 16(a) (part).)
       Sec. 3846.103.  SPECIFIC POWERS RELATING TO IMPROVEMENT
PROJECTS OR SERVICES. (a) The district may undertake an
improvement project separately or jointly with another person and
pay all or part of the costs of improvement projects, including an
improvement project that:
             (1)  improves, enhances, or supports public safety and
security, fire protection, emergency medical services, or law
enforcement in the district;
             (2)  confers a general benefit on the entire district
and the areas adjacent to the district; or
             (3)  confers a special benefit on all or part of the
district.
       (b)  A district improvement project or service may include:
             (1)  the construction, acquisition, lease, rental,
installment purchase, improvement, rehabilitation, repair,
relocation, and operation of:
                   (A)  landscaping; lighting, banners, or signs;
streets or sidewalks, pedestrian or bicycle paths and trails;
pedestrian walkways, skywalks, crosswalks, or tunnels; highway
right-of-way or transit corridor beautification and improvements;
                   (B)  drainage or storm water detention
improvements and solid waste, water, sewer, or power facilities and
services, including electrical, gas, steam, and chilled water
facilities and services;
                   (C)  parks, lakes, gardens, recreational
facilities, open space, scenic areas, and related exhibits and
preserves; fountains, plazas, or pedestrian malls; public art or
sculpture and related exhibits and facilities; educational or
cultural exhibits and facilities; exhibits, displays, attractions,
or facilities for special events, holidays, or seasonal or cultural
celebrations;
                   (D)  off-street parking facilities, bus
terminals, heliports, mass-transit, or roadway-borne or
water-borne transportation systems; and
                   (E)  other public improvements, facilities, or
services similar to the improvements, facilities, or services
described by Paragraphs (A)-(D);
             (2)  the cost of removal, razing, demolition, or
clearing of land or improvements in connection with providing an
improvement project;
             (3)  the acquisition of property or an interest in the
property that is made in connection with an authorized improvement
project; and
             (4)  the provision of special or supplemental services
to improve or promote the area in the district or to protect the
public health and safety in the district, including advertising,
promotion, tourism, health and sanitation, public safety,
security, fire protection or emergency medical services, business
recruitment, development, elimination of traffic congestion, and
recreational, educational, or cultural improvements, enhancements,
or services. (Acts 75th Leg., R.S., Ch. 1316, Secs. 16(a) (part),
17.)
       Sec.3846.104.CONTRACTS; GRANTS; DONATIONS. (a) The
district may contract with any person, including a municipality,
county, other political subdivision, or corporation, to accomplish
the purposes of this chapter on terms and for the period the board
determines, including contracting for the payment, repayment, or
reimbursement of costs incurred by the person on behalf of the
district, including all or part of the costs of an improvement
project, from tax proceeds or any other specified source of money.
       (b)  The district may make application for and contract with
a person to receive, administer, and perform the district's duties
under a federal, state, local, or private gift, grant, loan,
conveyance, transfer, bequest, donation, or other financial
arrangement relating to the investigation, planning, analysis,
acquisition, construction, completion, implementation, or
operation of a proposed or existing improvement project.
       (c)  A state agency, municipality, county, other political
subdivision, corporation, individual, or other person may contract
with the district to carry out the purposes of this chapter. (Acts
75th Leg., R.S., Ch. 1316, Secs. 16(a) (part), 31.)
       Sec.3846.105.PEACE OFFICERS. The district may not employ
peace officers, but may contract with off-duty peace officers to
provide public safety and security services:
             (1)  in connection with a special event, holiday,
period with high traffic congestion, or similar circumstance; and
             (2)  at district property, including facilities.  (Acts
75th Leg., R.S., Ch. 1316, Sec. 16(b).)
       Sec.3846.106.ECONOMIC DEVELOPMENT PROGRAMS. The district
has the economic development powers granted a home-rule
municipality with a population of more than 100,000 under Chapter
380, Local Government Code, and Subchapter A, Chapter 1509,
Government Code. (Acts 75th Leg., R.S., Ch. 1316, Sec. 16(d).)
       Sec.3846.107.ANNEXATION OR EXCLUSION OF TERRITORY. (a)
The district may add or exclude territory in the manner provided by
Subchapter J, Chapter 49, Water Code.
       (b)  Not later than the 10th day after the date on which the
district annexes or excludes territory, the board shall send to the
comptroller a certified copy of any resolution, order, or ordinance
relating to the annexation or exclusion.  (Acts 75th Leg., R.S., Ch.
1316, Secs. 16(a) (part), 28.)
       Sec.3846.108.NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain. (Acts 75th Leg., R.S.,
Ch. 1316, Sec. 19.)
[Sections 3846.109-3846.150 reserved for expansion]
SUBCHAPTER D. FINANCIAL PROVISIONS
       Sec.3846.151.SALES AND USE TAX; EXCISE TAX. (a) For
purposes of this section:
             (1)  "Taxable items" includes all items that could be
subject to a sales and use tax imposed by Montgomery County.
             (2)  "Use," with respect to a taxable service, means
the derivation in the district of direct or indirect benefit from
the service.
       (b)  The district may impose a sales and use tax if
authorized by a majority of the district voters voting at an
election held for that purpose.
       (c)  If the district adopts a sales and use tax:
             (1)  a tax is imposed on the receipts from the sale at
retail of taxable items in the district; and
             (2)  an excise tax is imposed on the use, storage, or
other consumption in the district of taxable items purchased,
leased, or rented from a retailer during the period that the tax is
effective in the district.
       (d)  The rate of the excise tax is the same as the rate of the
sales tax portion of the tax applied to the sales price of the
taxable items and is included in the sales tax. (Acts 75th Leg.,
R.S., Ch. 1316, Secs. 16(a) (part), 21(a) (part), (b), (c), (d).)
       Sec.3846.152.TAX ELECTION PROCEDURES. (a) Except as
provided by Subsection (b), the board may order an election to
adopt, change the rate of, or abolish a sales and use tax. The
election may be held at the same time and in conjunction with a
directors' election.
       (b)  The board may not call an election to abolish a sales and
use tax or to reduce the rate of the sales and use tax below the
amount pledged to secure payment of any outstanding district debt
while any district debt remains outstanding.
       (c)  Notice of the election shall be given and the election
shall be held in the manner prescribed for bond elections under
Subchapter D, Chapter 49, Water Code. (Acts 75th Leg., R.S., Ch.
1316, Secs. 22(a), (c).)
       Sec.3846.153.BALLOT WORDING. (a) In an election to adopt
the tax, the ballot shall be prepared to permit voting for or
against the proposition: "The adoption of a local sales and use tax
in the East Montgomery County Improvement District at the rate of
(proposed tax rate)."
       (b)  In an election to change the rate of the sales and use
tax, the ballot shall be prepared to permit voting for or against
the proposition: "The (increase or decrease, as applicable) in the
rate of the local sales and use tax imposed in the East Montgomery
County Improvement District from (tax rate on election date)
percent to (proposed tax rate) percent."
       (c)  In an election to abolish the sales and use tax, the
ballot shall be prepared to permit voting for or against the
proposition: "The abolition of the local sales and use tax in the
East Montgomery County Improvement District." (Acts 75th Leg.,
R.S., Ch. 1316, Secs. 22(d), (e), (f).)
       Sec. 3846.154.  IMPOSITION, COMPUTATION, ADMINISTRATION,
AND GOVERNANCE OF TAXES. (a) Chapter 323, Tax Code, to the extent
not inconsistent with this chapter, governs the application,
collection, and administration of the sales and use tax and the
excise tax, except that Sections 323.401-323.406, and 323.505, Tax
Code, do not apply. Subtitles A and B, Title 2, and Chapter 151, Tax
Code, govern the administration and enforcement of the sales and
use tax and the excise tax.
       (b)  Chapter 323, Tax Code, does not apply to the use and
allocation of revenue under this chapter.
       (c)  In applying Chapter 323, Tax Code:
             (1)  a reference in that chapter to "the county" means
the district; and
             (2)  a reference in that chapter to the "commissioners
court" means the board.
       (d)  The district is entitled to examine and receive
information related to the imposition and collection of sales and
use taxes to the same extent as if the district were a municipality
under Subchapter D, Chapter 321, Tax Code.  (Acts 75th Leg., R.S.,
Ch. 1316, Sec. 23.)
       Sec.3846.155.TAX RATES. (a) The district may impose the
sales and use tax in increments of one-eighth of one percent, with a
minimum tax of one-half percent and a maximum tax of two percent.
       (b)  The district may not impose a sales and use tax of
greater than one percent unless the voters of the district have
approved the imposition of a rate of one percent or less in addition
to the existing one percent rate at an election called for that
purpose and conducted generally in the manner provided by Section
3846.152.
       (c)  In the election, the ballot must permit voting for or
against the proposition: "The adoption of a local sales and use tax
imposed in the East Montgomery County Improvement District of
_______ (state percentage rate) percent in addition to the sales
and use tax that the East Montgomery County Improvement District is
currently authorized to impose at the rate of ___ (state percentage
rate) percent."
       (d)  If as a result of the imposition or increase in a sales
and use tax by the district as provided under this section or
Section 3846.152, the overlapping local sales and use taxes in a
municipality located in the boundaries of the district will exceed
two percent, the municipality's sales and use tax is automatically
reduced in that municipality to a rate that, when added to the
district's rate, does not exceed two percent.
       (e)  If the tax rate of a municipality is reduced in
accordance with Subsection (d), the comptroller shall withhold from
the district's monthly sales and use tax allocation an amount equal
to the amount that would have been collected by the municipality had
the district not imposed or increased its sales and use tax less
amounts that the municipality collects following the district's
imposition of or increase in its sales and use tax. The comptroller
shall withhold and pay the amount withheld to the municipality
under policies or procedures that the comptroller considers
reasonable. (Acts 75th Leg., R.S., Ch. 1316, Sec. 25, as amended by
Acts 79th Leg., R.S., Chs. 1355 and 1376.)
       Sec.3846.156.ABOLITION OF TAX. The board by order may
abolish the local sales and use tax rate without an election. (Acts
75th Leg., R.S., Ch. 1316, Sec. 26.)
       Sec.3846.157.USE OF TAX. The district may use the
proceeds from a tax collected under this chapter only for the
purposes for which the district was created. (Acts 75th Leg., R.S.,
Ch. 1316, Secs. 16(a) (part), 21(a) (part), 27.)
       Sec.3846.158.EFFECTIVE DATE OF TAX OR TAX CHANGE. The
adoption of a tax rate or change in the tax rate takes effect after
the expiration of the first complete calendar quarter occurring
after the date on which the comptroller receives a notice of the
results of the election. (Acts 75th Leg., R.S., Ch. 1316, Sec. 24.)
       Sec.3846.159.AD VALOREM TAX PROHIBITED. The district may
not impose an ad valorem tax on property in the district. (Acts
75th Leg., R.S., Ch. 1316, Sec. 16(c).)
       Sec.3846.160.FEES; CHARGES. The district may:
             (1)  establish and collect only at the district's
facilities user fees, concession fees, admission fees, rental fees,
or other similar fees or charges; and
             (2)  apply the proceeds from those fees or charges for
the enjoyment, sale, rental, or other use of the district's
facilities or other property, services, or improvement projects.
(Acts 75th Leg., R.S., Ch. 1316, Sec. 16(a) (part).)
       Sec.3846.161.CERTAIN RESIDENTIAL PROPERTY EXEMPT. The
district may not impose an impact fee or assessment on a
single-family residential property or a residential duplex,
triplex, fourplex, or condominium. (Acts 75th Leg., R.S., Ch.
1316, Sec. 20.)
       Sec.3846.162.BORROWING MONEY.  The district may borrow
money for the corporate purposes of the district. (Acts 75th Leg.,
R.S., Ch. 1316, Sec. 16(a) (part).)
       Sec.3846.163.PAYMENT OF EXPENSES. The district may
provide or secure the payment or repayment of:
             (1)  an expense of the establishment, administration,
or operation of the district;
             (2)  a district cost relating to an improvement
project;
             (3)  a district contractual obligation or
indebtedness, because of a lease, installment purchase contract, or
other agreement; or
             (4)  a tax, user fee, concession fee, rental fee, or
other revenue or resources of the district. (Acts 75th Leg., R.S.,
Ch. 1316, Sec. 16(a) (part).)
       Sec.3846.164.BONDS. (a) The board may issue bonds as
provided by Subchapter J, Chapter 375, Local Government Code.
       (b)  In addition to the sources described in Subchapter J,
Chapter 375, Local Government Code, bonds issued by the district
may be secured and made payable, wholly or partly, by a pledge of
any part of the net proceeds the district receives from a specified
portion of not more than one-half of the maximum sales and use tax
amount authorized under Section 3846.152.
       (c)  Sections 375.207 and 375.208, Local Government Code, do
not apply to bonds issued under this section.
       (d)  To the extent consistent with the documents authorizing
the issuance of the district's bonds, the proceeds of bonds
remaining after the payment of the cost of issuing the bonds and all
costs associated with the projects for which the bonds were sold may
be spent by the district for any lawful purpose or for any project
the district is authorized to undertake. (Acts 75th Leg., R.S., Ch.
1316, Sec. 30A.)
[Sections 3846.165-3846.200 reserved for expansion]
SUBCHAPTER E. DISSOLUTION
       Sec.3846.201.DISSOLUTION BY BOARD ORDER. The board by
order may dissolve the district at any time unless the district has
outstanding indebtedness or contractual obligations. (Acts 75th
Leg., R.S., Ch. 1316, Sec. 32.)
       Sec. 3846.202.  ADMINISTRATION OF DISTRICT PROPERTY
FOLLOWING DISSOLUTION. (a) After the date the board orders the
dissolution of the district, the board shall transfer ownership of
all property and assets of the district to Montgomery County,
except as provided by Subsection (b).
       (b)  If, on the date on which the board orders the
dissolution of the district, more than 50 percent of the territory
in the district is in the corporate limits of a municipality, the
board shall transfer ownership of the district's property and
assets to the municipality. (Acts 75th Leg., R.S., Ch. 1316, Sec.
34.)
       SECTION 1.04.  Subtitle A, Title 5, Special District Local
Laws Code, is amended by adding Chapters 5002, 5003, and 5004 to
read as follows:
CHAPTER 5002. BRAZOS RIVER HARBOR NAVIGATION DISTRICT OF
BRAZORIA COUNTY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 5002.001.  DEFINITIONS
Sec. 5002.002.  NATURE AND PURPOSE OF DISTRICT
Sec. 5002.003.  LEGISLATIVE FINDINGS
Sec. 5002.004.  DISTRICT TERRITORY
[Sections 5002.005-5002.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 5002.051.  BOARD OF COMMISSIONERS; TERM; ELECTION
Sec. 5002.052.  NAVIGATION PRECINCTS
Sec. 5002.053.  ELECTION BY POSITION; QUALIFICATIONS
Sec. 5002.054.  PLACING CANDIDATE ON BALLOT
Sec. 5002.055.  ELECTION ADMINISTRATION; NOTICE OF
                 ELECTION
Sec. 5002.056.  DATE COMMISSIONER TAKES OFFICE
Sec. 5002.057.  BOND
Sec. 5002.058.  VACANCIES
Sec. 5002.059.  DISTRICT TREASURER
[Sections 5002.060-5002.100 reserved for expansion]
SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
Sec. 5002.101.  DEPOSITORY
Sec. 5002.102.  MAINTENANCE OF BOOKS, RECORDS, AND
                 ACCOUNTS
CHAPTER 5002. BRAZOS RIVER HARBOR NAVIGATION DISTRICT OF
BRAZORIA COUNTY
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.5002.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of navigation and canal
commissioners of the district.
             (2)  "Commissioner" means a board member.
             (3)  "District" means the Brazos River Harbor
Navigation District of Brazoria County. (New.)
       Sec.5002.002.NATURE AND PURPOSE OF DISTRICT. The
district is created under Section 59, Article XVI, Texas
Constitution, to make improvements for the navigation of inland and
coastal waters, and for the preservation and conservation of inland
and coastal waters for navigation and for control and distribution
of storm and flood waters of rivers and streams in aid of
navigation. (Acts 40th Leg., 1st C.S., Ch. 55, Sec. 1 (part).)
       Sec.5002.003.LEGISLATIVE FINDINGS. All property situated
in the district and subject to taxation will benefit from the
improvements to be constructed by the district. (Acts 40th Leg.,
1st C.S., Ch. 55, Sec. 1 (part).)
       Sec.5002.004.DISTRICT TERRITORY. The district is
composed of the territory in Brazoria County described by Section
1, Chapter 55, Acts of the 40th Legislature, 1st Called Session,
1927, as that territory may have been modified under:
             (1)  Section 3, Chapter 103, Acts of the 41st
Legislature, 1st Called Session, 1929 (Article 8263a, Vernon's
Texas Civil Statutes), on or after May 23, 1929, and before August
30, 1971;
             (2)  Section 3a, Chapter 103, Acts of the 41st
Legislature, 1st Called Session, 1929 (Article 8263a, Vernon's
Texas Civil Statutes), on or after May 16, 1951, and before August
30, 1971;
             (3)  Subchapter H, Chapter 62, Water Code; or
             (4)  other law. (Acts 40th Leg., 1st C.S., Ch. 55,
Sec. 1 (part); New.)
[Sections 5002.005-5002.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
       Sec.5002.051.BOARD OF COMMISSIONERS; TERM; ELECTION. (a)  
The district is governed by an elected board consisting of six
commissioners.
       (b)  Commissioners serve staggered six-year terms.
       (c)  An election shall be held in the district every two
years to elect two commissioners.  (Acts 40th Leg., 1st C.S., Ch.
55, Sec. 4a (part).)
       Sec.5002.052.NAVIGATION PRECINCTS.  For the purpose of
electing commissioners, the district is divided into four
navigation precincts. The boundaries of the navigation precincts
are described by Section 4a, Chapter 55, Acts of the 40th
Legislature, 1st Called Session, 1927.  (Acts 40th Leg., 1st C.S.,
Ch. 55, Sec. 4a (part).)
       Sec.5002.053.ELECTION BY POSITION; QUALIFICATIONS.  (a)  
Commissioners are elected by position as follows:
             (1)  the commissioner elected for Position 1 is at
large and must reside in the district;
             (2)  the commissioners elected for Positions 2 and 3
must reside in Navigation Precinct No. 1;
             (3)  the commissioner elected for Position 4 must
reside in Navigation Precinct No. 2;
             (4)  the commissioner elected for Position 5 must
reside in Navigation Precinct No. 3; and
             (5)  the commissioner elected for Position 6 must
reside in Navigation Precinct No. 4.
       (b)  Each commissioner must be a qualified voter of the
district.  (Acts 40th Leg., 1st C.S., Ch. 55, Sec. 4a (part).)
       Sec.5002.054.PLACING CANDIDATE ON BALLOT. A request for
placing the name of a candidate on the ballot must be filed with the
board's presiding officer and be:
             (1)  in writing and signed by the candidate; or
             (2)  in the form of a petition signed by at least 25
qualified voters of the district.  (Acts 40th Leg., 1st C.S., Ch.
55, Sec. 4a (part).)
       Sec. 5002.055.  ELECTION ADMINISTRATION; NOTICE OF
ELECTION.  (a)  The board shall make arrangements for each election.
       (b)  Notice of the election, signed by the board's presiding
officer or secretary, must be published once a week for two
consecutive weeks in a newspaper of general circulation within the
district.  The first publication must occur not later than the 14th
day before the date of the election.
       (c)  All district voters may vote for candidates for
commissioner in all navigation precincts.
       (d)  The board shall declare the results of each election.
(Acts 40th Leg., 1st C.S., Ch. 55, Sec. 4a (part).)
       Sec.5002.056.DATE COMMISSIONER TAKES OFFICE.  A
commissioner shall take office on the appropriate date following
the person's election. (Acts 40th Leg., 1st C.S., Ch. 55, Sec. 4a
(part).)
       Sec.5002.057.BOND.  As a qualification for office, a
commissioner must post a bond in the amount of $10,000 that is:
             (1)  executed by the commissioner and by two solvent
sureties or by a surety company authorized to do business in this
state; and
             (2)  approved by the county judge of Brazoria County.
(Acts 40th Leg., 1st C.S., Ch. 55, Sec. 4a (part).)
       Sec.5002.058.VACANCIES. (a)  Except as otherwise
provided by this section, if a vacancy occurs in the office of
commissioner, the board shall appoint a commissioner for the
remainder of the unexpired term.
       (b)  If more than two vacancies occur at the same time, the
remaining commissioners shall call a special election to fill the
vacancies.
       (c)  If the remaining commissioners fail to call the election
within 15 days after the date the vacancies occur, the judge or
judges of the district court or courts of the judicial district in
which the district is located, on the petition of a voter or
creditor of the district, may:
             (1)  order that an election be held, specifying the
date of the election;
             (2)  order the Brazoria County clerk to publish notice
of the election; and
             (3)  name the officers to hold the election.
       (d)  The returns of an election held by order of the district
judge or judges shall be made and filed in the office of the clerk of
the district court, and the clerk of the district court shall
declare the result of the election. (Acts 40th Leg., 1st C.S., Ch.
55, Sec. 4a (part).)
       Sec.5002.059.DISTRICT TREASURER. (a)  The board shall
appoint from time to time a person to serve in the office of
district treasurer.
       (b)  The district treasurer shall perform the duties for the
district that were performed before September 1, 1999, by the
county treasurer of Brazoria County.
       (c)  Before receiving district money from any source, the
district treasurer shall execute a good and sufficient bond payable
to the board for the benefit of the district in an amount set by the
board. (Acts 40th Leg., 1st C.S., Ch. 55, Secs. 1a (part), 1b.)
[Sections 5002.060-5002.100 reserved for expansion]
SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
       Sec.5002.101.DEPOSITORY. (a)  The board by resolution
shall designate a bank in Brazoria County as the district's
depository.
       (b)  The designated bank serves as the depository for a term
of two years and until a successor depository has been selected.
       (c)  All money of the district shall be secured in the manner
provided for the security of county funds.
       (d)  The tax assessor and collector for Brazoria County or
another official performing the duties of tax assessor and
collector for the district shall:
             (1)  deposit all taxes collected for the district in
the depository bank designated as depository for Brazoria County;
and
             (2)  promptly transfer and deposit the money to the
district's account in the district's depository. (Acts 40th Leg.,
1st C.S., Ch. 55, Secs. 1a (part), 4c.)
       Sec.5002.102.MAINTENANCE OF BOOKS, RECORDS, AND ACCOUNTS.
The district shall maintain the books, records, and accounts of the
district.  The Brazoria County treasurer is not required to
maintain any books, records, or accounts for the district other
than as required by the board. (Acts 40th Leg., 1st C.S., Ch. 55,
Sec. 4b.)
CHAPTER 5003.  CALHOUN COUNTY NAVIGATION DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 5003.001.  DEFINITIONS
Sec. 5003.002.  NATURE AND PURPOSE OF DISTRICT
Sec. 5003.003.  LEGISLATIVE FINDINGS
Sec. 5003.004.  DISTRICT TERRITORY
[Sections 5003.005-5003.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 5003.051.  BOARD OF NAVIGATION COMMISSIONERS
Sec. 5003.052.  NAVIGATION PRECINCTS
Sec. 5003.053.  ELECTION; TERMS
Sec. 5003.054.  PLACING CANDIDATE ON BALLOT;
                 QUALIFICATIONS
Sec. 5003.055.  VACANCY
[Sections 5003.056-5003.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 5003.101.  GENERAL NAVIGATION DISTRICT POWERS
Sec. 5003.102.  AD VALOREM TAXES; BOND ELECTION
Sec. 5003.103.  CHANGE OF DISTRICT NOT AUTHORIZED
Sec. 5003.104.  LIMIT ON EMINENT DOMAIN POWER
Sec. 5003.105.  AUTHORITY TO DESIGNATE INDUSTRIAL AREAS
                 OR PLANT SITES; FINDINGS
CHAPTER 5003.  CALHOUN COUNTY NAVIGATION DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.5003.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of navigation
commissioners of the district.
             (2)  "Commissioner" means a board member.
             (3)  "District" means the Calhoun County Navigation
District. (New.)
       Sec.5003.002.NATURE AND PURPOSE OF DISTRICT. The
district is a navigation district.  To the extent authorized by this
chapter, the district is created to:
             (1)  improve navigation in the district; and
             (2)  maintain, develop, extend, and improve port
facilities and wharf and dock facilities in the district.  (Acts
53rd Leg., R.S., Ch. 195, Sec. 1 (part).)
       Sec.5003.003.LEGISLATIVE FINDINGS.  (a) The creation of
the district is essential:
             (1)  to accomplish the purposes of Section 59, Article
XVI, Texas Constitution;
             (2)  to the general welfare of this state; and
             (3)  for the development of marine shipping.
       (b)  All property in the district benefits from the creation
of the district by the improvements to be constructed or acquired by
the district in carrying out the district's purposes.  (Acts 53rd
Leg., R.S., Ch. 195, Sec. 1 (part).)
       Sec.5003.004.DISTRICT TERRITORY. The district is
composed of all the territory of Calhoun County, including all land
and water areas of the county:
             (1)  except for territory included in the West Side
Calhoun County Navigation District as described in Volume H, pages
568-570, of the minutes of the Commissioners Court of Calhoun
County; and
             (2)  as that territory may have been modified under:
                   (A)  Section 3 or Section 3a, Chapter 103, Acts of
the 41st Legislature, 1st Called Session, 1929 (Article 8263a,
Vernon's Texas Civil Statutes), before August 30, 1971;
                   (B)  Subchapter H, Chapter 62, Water Code; or
                   (C)  other law.  (Acts 53rd Leg., R.S., Ch. 195,
Sec. 1 (part); New.)
[Sections 5003.005-5003.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
       Sec.5003.051.BOARD OF NAVIGATION COMMISSIONERS.  The
district is governed by a board of six commissioners.  (Acts 53rd
Leg., R.S., Ch. 195, Sec. 2(a) (part).)
       Sec.5003.052.NAVIGATION PRECINCTS.  (a) The board shall
from time to time divide the district into six navigation
commissioner precincts that are:
             (1)  compact and contiguous; and
             (2)  as nearly as practicable, of equal population.
       (b)  The board shall complete any division of the district
into new precincts not later than the 90th day before the date of
the first election of commissioners from those precincts.
       (c)  The voters of each precinct, in accordance with this
subchapter, shall elect one commissioner.  (Acts 53rd Leg., R.S.,
Ch. 195, Secs. 2(a) (part), (b), (c), (d) (part).)
       Sec.5003.053.ELECTION; TERMS. (a) The six commissioners
elected at the first election after a division of the district into
new precincts under Section 5003.052 shall draw lots after the
election to select three commissioners to serve two-year terms and
three commissioners to serve four-year terms. Successor
commissioners serve terms as provided by Subsection (b).
       (b)  Except as provided by Subsection (a), commissioners are
elected for staggered four-year terms at elections held each
odd-numbered year on the uniform election date in May.  (Acts 53rd
Leg., R.S., Ch. 195, Secs. 2(e), (g) (part).)
       Sec. 5003.054.  PLACING CANDIDATE ON BALLOT;
QUALIFICATIONS. (a)  A person qualified under this section to be a
candidate for the office of commissioner may file an application
with the board to have the person's name placed on the ballot.  The
application must be filed not later than 5 p.m. of the 45th day
before the election date for that office.
       (b)  The application must include an affidavit made by the
applicant under oath disclosing that the applicant is:
             (1)  a bona fide resident of the precinct that the
person seeks to represent; and
             (2)  a qualified voter who owns real property in the
area.
       (c)  If the application is timely filed in proper form, the
board shall place the applicant's name on the official ballot.  
(Acts 53rd Leg., R.S., Ch. 195, Secs. 2(d) (part), (h).)
       Sec.5003.055.VACANCY. (a)  If a vacancy occurs on the
board, a majority of the remaining commissioners shall appoint a
successor to fill the vacancy for the remainder of the unexpired
term.
       (b)  For purposes of this chapter, the successor
commissioner is treated as an elected commissioner.
       (c)  The legislature finds that it is in the best interest of
public welfare, general benefit, and the assurance of proper
development of marine shipping that:
             (1)  the commissioners be representatives of all areas
of the district; and
             (2)  if a commissioner no longer resides in the
precinct from which elected, the commissioner's office is vacant.  
(Acts 53rd Leg., R.S., Ch. 195, Secs. 2(f), (j).)
       [Sections 5003.056-5003.100 reserved for expansion]
       SUBCHAPTER C. POWERS AND DUTIES
       Sec.5003.101.GENERAL NAVIGATION DISTRICT POWERS. The
district and the board, except as specifically restricted by this
chapter, have the powers of government and may exercise the rights,
powers, duties, privileges, and functions conferred by Chapter 60,
61, 62, or 63, Water Code, on a navigation district created under
Section 59, Article XVI, Texas Constitution, that are appropriate
to the accomplishment of the purposes stated in Subchapter A.  (Acts
53rd Leg., R.S., Ch. 195, Secs. 1 (part), 3 (part).)
       Sec.5003.102.AD VALOREM TAXES; BOND ELECTION. (a)  If
authorized by a majority vote of the district voters voting at an
election held in the manner provided for a bond election under
Subchapter F, Chapter 62, Water Code, the Commissioners Court of
Calhoun County may:
             (1)  impose maintenance taxes; or
             (2)  issue tax bonds and impose taxes to pay for the
bonds.
       (b)  The commissioners court shall impose the tax for:
             (1)  the maintenance of the district and its property,
including facilities; and
             (2)  the payment of the principal of and interest on all
bonds or other indebtedness issued by the district.
       (c)  The maximum tax rate for both maintenance and
indebtedness purposes may not exceed a total of 15 cents on each
$100 of taxable property in the district.
       (d)  The Calhoun County tax assessor-collector shall assess
and collect taxes imposed under this section.  (Acts 53rd Leg.,
R.S., Ch. 195, Sec. 3(a) (part).)
       Sec.5003.103.CHANGE OF DISTRICT NOT AUTHORIZED. The
board may not by a vote change the district from a navigation
district to any other type of district authorized by general law.
(Acts 53rd Leg., R.S., Ch. 195, Sec. 3(b).)
       Sec.5003.104.LIMIT ON EMINENT DOMAIN POWER. The district
may not exercise the power of eminent domain outside Calhoun County
in an area in another navigation district without the consent of the
other district.  (Acts 53rd Leg., R.S., Ch. 195, Sec. 3(c).)
       Sec. 5003.105.  AUTHORITY TO DESIGNATE INDUSTRIAL AREAS OR
PLANT SITES; FINDINGS.  (a) The board may adopt an order or
resolution designating an area of land in the district that fronts
on navigable water in the district as an industrial area or plant
site for the aid of navigation. A defined area may not:
             (1)  be located in the corporate limits of a
municipality; or
             (2)  exceed 1,000 yards in depth as measured from the
shoreline.
       (b)  A certified copy of an order or resolution adopted under
Subsection (a) shall be filed and recorded in the deed records of
Calhoun County. After the copy is filed, a municipality may not
include any part of the defined area in its boundaries.
       (c)  The board may adopt an order or resolution that removes
all or part of a defined area from that designation if the board
determines that:
             (1)  the area is not suitable for or being used as an
industrial area or plant site;
             (2)  the area will not be suitable for or used as an
industrial area or plant site within a reasonable time; and
             (3)  the continued designation does not aid navigation.
       (d)  A certified copy of an order or resolution adopted under
Subsection (c) shall be filed and recorded in the deed records of
Calhoun County. After the copy is filed, any restriction imposed
under this section by the previous designation on the area is
removed.
       (e)  The legislature finds that the powers granted and
restrictions imposed by this section are necessary:
             (1)  for the proper exercise by the district of the
powers granted by Section 59, Article XVI, Texas Constitution, and
by this chapter; and
             (2)  to promote and effect the navigation of the inland
and coastal waters of the state.  (Acts 53rd Leg., R.S., Ch. 195,
Sec. 3(d).)
CHAPTER 5004. CYPRESS VALLEY NAVIGATION DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 5004.001.  DEFINITIONS
Sec. 5004.002.  NATURE OF DISTRICT
Sec. 5004.003.  LEGISLATIVE FINDINGS
Sec. 5004.004.  LIBERAL CONSTRUCTION OF CHAPTER
Sec. 5004.005.  DISTRICT TERRITORY
Sec. 5004.006.  EFFECT OF CHAPTER ON NORTHEAST TEXAS
                 MUNICIPAL WATER DISTRICT
[Sections 5004.007-5004.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 5004.051.  COMPOSITION OF BOARD; TERMS
Sec. 5004.052.  QUALIFICATIONS FOR OFFICE
Sec. 5004.053.  APPOINTMENT OF DIRECTORS
Sec. 5004.054.  BOND
Sec. 5004.055.  FILING OF OATH
Sec. 5004.056.  VACANCIES
Sec. 5004.057.  COMPENSATION; EXPENSES
Sec. 5004.058.  REMOVAL FROM OFFICE
Sec. 5004.059.  OFFICERS
Sec. 5004.060.  MEETINGS
[Sections 5004.061-5004.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 5004.101.  GENERAL POWERS AND DUTIES
Sec. 5004.102.  POWERS REGARDING CANALS, PORTS,
                 WATERWAYS, AND FACILITIES
Sec. 5004.103.  BYLAWS AND RULES
Sec. 5004.104.  GIFT OR PURCHASE OF PROPERTY; EMINENT
                 DOMAIN
Sec. 5004.105.  SURPLUS PROPERTY
Sec. 5004.106.  GENERAL AUTHORITY TO MAKE CONTRACTS AND
                 EXECUTE INSTRUMENTS
Sec. 5004.107.  CONTRACTS WITH UNITED STATES
Sec. 5004.108.  AUTHORITY TO SPEND MONEY FOR SEEKING
                 COOPERATION
Sec. 5004.109.  COOPERATION WITH OTHER GOVERNMENTAL
                 ENTITIES CONCERNED WITH NAVIGATION ON
                 BIG CYPRESS RIVER
Sec. 5004.110.  EMPLOYMENT OF OFFICERS AND EMPLOYEES
Sec. 5004.111.  PERMITS
Sec. 5004.112.  AUTHORITY TO SUE AND BE SUED
Sec. 5004.113.  SEAL
Sec. 5004.114.  RED RIVER COMPACT
[Sections 5004.115-5004.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 5004.151.  FORM OF ACCOUNTS; MAINTENANCE OF
                 RECORDS; PUBLIC INSPECTION
Sec. 5004.152.  FILING COPIES OF AUDIT REPORT
Sec. 5004.153.  PROCEDURE FOR DISTRIBUTION OF MONEY
Sec. 5004.154.  BOND OF CERTAIN OFFICERS, AGENTS, AND
                 EMPLOYEES
Sec. 5004.155.  AUTHORITY TO BORROW MONEY, ACCEPT
                 GRANTS, AND ISSUE ASSOCIATED REVENUE
                 BONDS
Sec. 5004.156.  AUTHORITY TO BORROW MONEY FOR CURRENT
                 EXPENSES; EVIDENCE OF OBLIGATION
Sec. 5004.157.  NO AUTHORITY FOR AD VALOREM TAX
[Sections 5004.158-5004.200 reserved for expansion]
SUBCHAPTER E. BONDS
Sec. 5004.201.  DEFINITION
Sec. 5004.202.  AUTHORITY TO ISSUE BONDS
Sec. 5004.203.  PROVISIONS OF BOND RESOLUTION OR ORDER;
                 AUTHORITY TO ADOPT OR EXECUTE OTHER
                 PROCEEDINGS OR INSTRUMENTS
Sec. 5004.204.  FORM OF BONDS
Sec. 5004.205.  MATURITY
Sec. 5004.206.  USE OF BOND PROCEEDS
Sec. 5004.207.  REFUNDING BONDS
CHAPTER 5004. CYPRESS VALLEY NAVIGATION DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.5004.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Cypress Valley Navigation
District. (V.A.C.S. Art. 8280-340, Secs. 1 (part), 4(a) (part);
New.)
       Sec.5004.002.NATURE OF DISTRICT. The district is a
navigation, conservation, and reclamation district. (V.A.C.S.
Art. 8280-340, Sec. 1 (part).)
       Sec.5004.003.LEGISLATIVE FINDINGS. (a)  All land
included in the district will benefit from the exercise of the power
conferred by this chapter.
       (b)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.
(V.A.C.S. Art. 8280-340, Secs. 1 (part), 2 (part).)
       Sec.5004.004.LIBERAL CONSTRUCTION OF CHAPTER. This
chapter shall be liberally construed to effect its purposes.
(V.A.C.S. Art. 8280-340, Sec. 15.)
       Sec.5004.005.DISTRICT TERRITORY. The district is
composed of all the territory in the watershed of the Cypress River
and its tributaries in Harrison and Marion Counties as shown by the
state contour maps on file in the office of the Texas Commission on
Environmental Quality, unless the district's territory is modified
under:
             (1)  Section 3 or 3a, Chapter 103, Acts of the 41st
Legislature, 1st Called Session, 1929 (Article 8263a, Vernon's
Texas Civil Statutes), after August 30, 1965, and before August 30,
1971;
             (2)  Subchapter H, Chapter 62, Water Code; or
             (3)  other law. (V.A.C.S. Art. 8280-340, Sec. 2
(part).)
       Sec. 5004.006.  EFFECT OF CHAPTER ON NORTHEAST TEXAS
MUNICIPAL WATER DISTRICT. It is recognized that the district
boundaries described by Section 5004.005 partly overlap an area in
the Northeast Texas Municipal Water District as created by Chapter
78, Acts of the 53rd Legislature, Regular Session, 1953 (Article
8280-147, Vernon's Texas Civil Statutes). This chapter does not
alter in any manner the rights, duties, privileges, powers, or
immunities of that district. (V.A.C.S. Art. 8280-340, Sec. 2
(part).)
[Sections 5004.007-5004.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.5004.051.COMPOSITION OF BOARD; TERMS. (a)  All powers
of the district shall be exercised by a board consisting of 10
directors.
       (b)  Directors serve staggered terms of two years, with the
terms of:
             (1)  four directors expiring January 1 of even-numbered
years; and
             (2)  six directors expiring January 1 of odd-numbered
years.  (V.A.C.S. Art. 8280-340, Secs. 4(a) (part), (c) (part).)
       Sec.5004.052.QUALIFICATIONS FOR OFFICE. To be eligible
for appointment and to serve as a director, a person must:
             (1)  be at least 18 years of age;
             (2)  reside in the district and in Harrison or Marion
County; and
             (3)  possess the qualifications of a juror. (V.A.C.S.
Art. 8280-340, Secs. 4(a) (part), (c) (part).)
       Sec.5004.053.APPOINTMENT OF DIRECTORS. At least 10 but
not more than 30 days before the date on which a director's term of
office expires, the commissioners court of the county of residence
of the retiring director shall designate a successor. (V.A.C.S.
Art. 8280-340, Sec. 4(c) (part).)
       Sec.5004.054.BOND. (a) Before assuming the director's
duties, each director shall execute a good and sufficient bond in
the amount of $1,000, payable to the county judges of Harrison and
Marion Counties, for the use and benefit of the district
conditioned on the faithful performance of the director's duties.
       (b)  The district shall pay the cost of the bond. (V.A.C.S.
Art. 8280-340, Sec. 4(b).)
       Sec.5004.055.FILING OF OATH. Before assuming the duties
of office, each director shall file with the board
secretary-treasurer a copy of the constitutional oath of office
taken by the director. (V.A.C.S. Art. 8280-340, Sec. 4(c) (part).)
       Sec.5004.056.VACANCIES. If a vacancy occurs on the board,
the commissioners court of the county of residence of the retiring
director shall fill the vacancy by appointment. (V.A.C.S. Art.
8280-340, Sec. 4(c) (part).)
       Sec.5004.057.COMPENSATION; EXPENSES. (a)  A director may
not be paid for services as a director or as a member of a committee
authorized by the board.
       (b)  A director may be reimbursed for actual expenses
incurred by the director in performing a service for the district
but only from money raised in the director's county of residence.
(V.A.C.S. Art. 8280-340, Sec. 5.)
       Sec.5004.058.REMOVAL FROM OFFICE. (a)  A director or
officer is subject to removal or suspension from office by the
affirmative vote of 10 directors for incompetence, official
misconduct, official gross negligence, habitual drunkenness, or
nonattendance at six consecutive regular meetings of the board.
       (b)  A director or officer may not be removed or suspended
from office until written charges are filed against the director or
officer and the director or officer is given an opportunity for a
fair hearing before the board. (V.A.C.S. Art. 8280-340, Sec. 6.)
       Sec.5004.059.OFFICERS. (a)  At the first board meeting in
January of each odd-numbered year, the board shall appoint by board
majority:
             (1)  from the directors, a presiding officer, an
assistant presiding officer, and a secretary-treasurer; and
             (2)  if considered proper, an assistant secretary and
an assistant treasurer.
       (b)  The assistant secretary and assistant treasurer:
             (1)  are not required to be directors; and
             (2)  may be granted limited powers by the bylaws.
       (c)  Officers serve two-year terms, except that the
assistant secretary and assistant treasurer, if appointed, hold
office at the pleasure of the board. (V.A.C.S. Art. 8280-340, Sec.
7 (part).)
       Sec.5004.060.MEETINGS. (a)  All regular and special board
meetings shall be held as provided for by the bylaws.
       (b)  Notice of all regular and special board meetings shall
be given as required by the bylaws. (V.A.C.S. Art. 8280-340, Sec. 7
(part).)
[Sections 5004.061-5004.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.5004.101.GENERAL POWERS AND DUTIES. The district
has:
             (1)  the powers of government and the authority to
exercise the rights, privileges, and functions provided by this
chapter; and
             (2)  all powers, rights, privileges, and functions
conferred on navigation districts created under Section 59, Article
XVI, Texas Constitution, and conferred on navigation districts by
general law, except as expressly limited by this chapter.  
(V.A.C.S. Art. 8280-340, Secs. 1 (part), 3 (part).)
       Sec. 5004.102.  POWERS REGARDING CANALS, PORTS, WATERWAYS,
AND FACILITIES. The district may:
             (1)  promote, construct, maintain, operate, make
practicable, aid, and encourage the construction, maintenance, and
operation of navigable canals or waterways and all navigational
systems or facilities auxiliary to navigable canals or waterways,
using the natural bed and banks of the Cypress River and its
tributaries and of Caddo Lake where practicable;
             (2)  acquire, improve, extend, take over, construct,
maintain, repair, operate, develop, and regulate ports, levees,
wharves, docks, locks, warehouses, grain elevators, dumping
facilities, aids to navigation, or aids consistent with or
necessary to the operation or development of ports or waterways
within the district; and
             (3)  construct, extend, improve, repair, maintain,
reconstruct, own, use, and operate any facility of any kind
necessary or convenient to the exercise of the powers, rights,
privileges, and functions granted by this chapter. (V.A.C.S. Art.
8280-340, Sec. 3 (part).)
       Sec.5004.103.BYLAWS AND RULES. The district may adopt
bylaws and rules for the management, control, and regulation of its
affairs. (V.A.C.S. Art. 8280-340, Sec. 3 (part).)
       Sec. 5004.104.  GIFT OR PURCHASE OF PROPERTY; EMINENT
DOMAIN.  (a)  In this section, "property" means property of any
kind, including a lighter, tug, barge, or other floating equipment
of any nature.
       (b)  If necessary or convenient to exercising a power, right,
privilege, or function conferred on the district by this chapter,
the district:
             (1)  by gift or purchase may acquire property or an
interest in property that is inside or outside the district
boundaries; or
             (2)  by exercising the power of eminent domain may
acquire property or an interest in property that is inside the
district boundaries.
       (c)  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 give bond for appeal or bond for costs
in any judicial proceeding. (V.A.C.S. Art. 8280-340, Sec. 3
(part).)
       Sec.5004.105.SURPLUS PROPERTY. The district may sell or
otherwise dispose of property or an interest in property of any kind
that is not considered necessary to carrying on the business of the
district. (V.A.C.S. Art. 8280-340, Sec. 3 (part).)
       Sec. 5004.106.  GENERAL AUTHORITY TO MAKE CONTRACTS AND
EXECUTE INSTRUMENTS. The district may make a contract or execute an
instrument necessary or convenient to exercising a power, right,
privilege, or function conferred on the district by this chapter.
(V.A.C.S. Art. 8280-340, Sec. 3 (part).)
       Sec.5004.107.CONTRACTS WITH UNITED STATES. The district
may:
             (1)  enter into a contract with the United States,
including a contract to consummate or aid a navigation project
approved or undertaken by the United States; and
             (2)  assume and become responsible for an obligation of
the United States and enter into an agreement with the United States
to hold and save the United States free from damages due to the
construction and maintenance of navigation works in the district.
(V.A.C.S. Art. 8280-340, Sec. 3 (part).)
       Sec. 5004.108.  AUTHORITY TO SPEND MONEY FOR SEEKING
COOPERATION. The district may spend any amount reasonably
necessary or expedient for seeking cooperation from the federal
government or any other person in accomplishing the objects of this
chapter. (V.A.C.S. Art. 8280-340, Sec. 3 (part).)
       Sec. 5004.109.  COOPERATION WITH OTHER GOVERNMENTAL
ENTITIES CONCERNED WITH NAVIGATION ON BIG CYPRESS RIVER. The
district shall cooperate with each commission, agency, district, or
other governmental entity concerned with navigation on the Big
Cypress River to all practical extent. (V.A.C.S. Art. 8280-340,
Sec. 14(c).)
       Sec.5004.110.EMPLOYMENT OF OFFICERS AND EMPLOYEES. The
district may employ, prescribe the duties of, and set the
compensation of officers, attorneys, agents, and employees.
(V.A.C.S. Art. 8280-340, Sec. 3 (part).)
       Sec.5004.111.PERMITS. The district shall obtain from the
Texas Commission on Environmental Quality any permit required by
general law. (V.A.C.S. Art. 8280-340, Sec. 14(a).)
       Sec.5004.112.AUTHORITY TO SUE AND BE SUED. The district
may sue and be sued in its corporate name. (V.A.C.S. Art. 8280-340,
Sec. 3 (part).)
       Sec.5004.113.SEAL. The district may adopt and use a
corporate seal. (V.A.C.S. Art. 8280-340, Sec. 3 (part).)
       Sec.5004.114.RED RIVER COMPACT. The district shall
comply with the Red River Compact. The creation of the district
does not affect the compact. (V.A.C.S. Art. 8280-340, Sec. 14(b).)
[Sections 5004.115-5004.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
       Sec. 5004.151.  FORM OF ACCOUNTS; MAINTENANCE OF RECORDS;
PUBLIC INSPECTION. (a)  The board shall keep complete and accurate
accounts conforming to approved methods of bookkeeping.
       (b)  The accounts and all contracts, documents, and records
shall be:
             (1)  kept at the district's office; and
             (2)  open to public inspection at all reasonable times.
(V.A.C.S. Art. 8280-340, Sec. 9 (part).)
       Sec.5004.152.FILING COPIES OF AUDIT REPORT. Copies of the
audit report prepared under Subchapter G, Chapter 49, Water Code,
as required by Section 60.002 of that code, shall be filed:
             (1)  as required by Section 49.194, Water Code; and
             (2)  with the county clerks of Harrison and Marion
Counties. (V.A.C.S. Art. 8280-340, Sec. 9 (part); New.)
       Sec.5004.153.PROCEDURE FOR DISTRIBUTION OF MONEY.
District money shall be distributed only by check, voucher, draft,
order, or other written instrument signed by a person authorized by
board resolution to sign the instrument. (V.A.C.S. Art. 8280-340,
Sec. 9 (part).)
       Sec. 5004.154.  BOND OF CERTAIN OFFICERS, AGENTS, AND
EMPLOYEES. (a)  Each officer, agent, or employee of the district
who is charged with the collection, custody, or payment of district
money shall give bond conditioned on the faithful performance of
the person's duties and accounting for all money and property of the
district coming into the person's hands.
       (b)  The bond must be in a form and manner and with a surety
authorized to do business in this state approved by the board.
       (c)  The district shall pay the premium on the bond and
charge the premium as an operating expense. (V.A.C.S. Art.
8280-340, Sec. 10.)
       Sec. 5004.155.  AUTHORITY TO BORROW MONEY, ACCEPT GRANTS,
AND ISSUE ASSOCIATED REVENUE BONDS. The district may:
             (1)  borrow money for its corporate purpose consistent
with the constitution and general laws of this state;
             (2)  borrow money or accept a grant from the United
States or from a corporation or agency created or designated by the
United States and, in connection with the loan or grant, enter into
any agreement the United States or the corporation or agency
requires; and
             (3)  issue bonds payable from revenue only for the
money borrowed under this section. (V.A.C.S. Art. 8280-340, Sec. 3
(part).)
       Sec. 5004.156.  AUTHORITY TO BORROW MONEY FOR CURRENT
EXPENSES; EVIDENCE OF OBLIGATION. (a)  The board may:
             (1)  borrow money for current expenses; and
             (2)  evidence the borrowed money by notes or warrants
payable not later than the close of the calendar year for which the
loan is made.
       (b)  The total amount of the notes or warrants may not exceed
the anticipated revenue. (V.A.C.S. Art. 8280-340, Sec. 11 (part).)
       Sec.5004.157.NO AUTHORITY FOR AD VALOREM TAX. This
chapter does not authorize the imposition of ad valorem taxes on any
property in the district. (V.A.C.S. Art. 8280-340, Sec. 8.)
[Sections 5004.158-5004.200 reserved for expansion]
SUBCHAPTER E. BONDS
       Sec.5004.201.DEFINITION. In this subchapter, "net
revenue" means the gross revenue derived from the operation of the
improvements and facilities of the district the income of which is
pledged to the payment of district bonds less the reasonable
expense of maintaining and operating those improvements and
facilities, including necessary repair, upkeep, and insurance
expenses for those improvements and facilities. (V.A.C.S. Art.
8280-340, Sec. 11 (part).)
       Sec.5004.202.AUTHORITY TO ISSUE BONDS. (a)  To provide
money for any of the purposes provided by this chapter or other laws
relating to navigation districts, the board may:
             (1)  issue district bonds that are secured solely by a
pledge of and payable from the net revenue derived from the
operation of all or a designated part of the improvements and
facilities of the district then in existence or to be constructed or
acquired; or
             (2)  issue district bonds secured by a pledge of all or
part of the proceeds of one or more contracts previously or
subsequently made or other revenue or income specified by board
resolution.
       (b)  As long as bonds issued under Subsection (a)(1) are
outstanding, the board shall charge and collect fees, tolls, and
other charges sufficient to:
             (1)  pay all maintenance and operation expenses of the
improvements and facilities the income of which is pledged;
             (2)  pay the interest on the bonds as it accrues;
             (3)  pay the principal of the bonds as they mature; and
             (4)  make any other payments prescribed in the bond
order or resolution.
       (c)  All district bonds must be authorized by board
resolution or order.
       (d)  Bonds payable solely from net revenue may be issued
without an election. (V.A.C.S. Art. 8280-340, Sec. 11 (part).)
       Sec. 5004.203.  PROVISIONS OF BOND RESOLUTION OR ORDER;
AUTHORITY TO ADOPT OR EXECUTE OTHER PROCEEDINGS OR INSTRUMENTS.
(a)  In the resolution or order adopted by the board authorizing the
issuance of bonds payable from net revenue or from the proceeds of a
contract or contracts, the board may:
             (1)  provide for the flow of funds and the
establishment and maintenance of an interest and sinking fund,
reserve funds, and other funds;
             (2)  make any additional covenants for the bonds, the
pledged revenue, and the operation, maintenance, and upkeep of the
improvements and facilities the income of which is pledged,
including a provision for leasing all or part of the improvements
and facilities and the use or pledge of money derived from those
leases, as the board considers appropriate;
             (3)  prohibit the further issuance of bonds or other
obligations payable from the pledged net revenue;
             (4)  reserve the right to issue additional bonds to be
secured by a pledge of and payable from the net revenue on a parity
with, or subordinate to, the lien and pledge in support of the bonds
being issued, subject to any conditions provided by the resolution
or order; or
             (5)  include any other provision or covenant, as
determined by the board, that is not prohibited by the Texas
Constitution or this chapter.
       (b)  The board may adopt and execute any other proceeding or
instrument necessary or convenient to issue the bonds. (V.A.C.S.
Art. 8280-340, Sec. 11 (part).)
       Sec.5004.204.FORM OF BONDS. District bonds must:
             (1)  be issued in the district's name;
             (2)  be signed by the presiding officer; and
             (3)  be attested by the secretary-treasurer. (V.A.C.S.
Art. 8280-340, Sec. 11 (part).)
       Sec.5004.205.MATURITY. District bonds must mature not
later than 40 years after the date of their issuance. (V.A.C.S.
Art. 8280-340, Sec. 11 (part).)
       Sec.5004.206.USE OF BOND PROCEEDS.  The board may
appropriate or set aside an amount of proceeds from the sale of any
district bonds for:
             (1)  the payment of interest expected to accrue during
construction of the improvements or facilities;
             (2)  reserve funds; and
             (3)  expenses incurred and to be incurred in the
issuance, sale, and delivery of the bonds. (V.A.C.S. Art.
8280-340, Sec. 11 (part).)
       Sec.5004.207.REFUNDING BONDS. (a) The board may issue
refunding bonds of the district to refund any outstanding district
bonds and accrued interest on those bonds.
       (b)  Refunding bonds may:
             (1)  be issued to refund more than one series or issue
of the outstanding bonds;
             (2)  combine the pledges for the outstanding bonds for
the security of the refunding bonds; and
             (3)  be secured by other or additional revenue.
       (c)  Refunding under this section may not impair the contract
rights of the holders of any of the outstanding bonds that are not
to be refunded.
       (d)  Refunding bonds must be authorized by board resolution
or order and be executed and mature as provided by this chapter for
original bonds.
       (e)  The comptroller shall register the refunding bonds on
surrender and cancellation of the bonds to be refunded.
       (f)  Instead of issuing bonds to be registered on the
surrender and cancellation of the bonds to be refunded, the
district, in the resolution or order authorizing the issuance of
the refunding bonds, may provide for the sale of the refunding bonds
and the deposit of the proceeds in the place or places at which the
bonds to be refunded are payable. In that case, the refunding bonds
may be issued in an amount sufficient to pay the interest on the
bonds to be refunded to their option date or maturity date, and the
comptroller shall register the refunding bonds without the
surrender and cancellation of the bonds to be refunded. (V.A.C.S.
Art. 8280-340, Sec. 11 (part).)
       SECTION 1.05.  Subtitle A, Title 6, Special District Local
Laws Code, is amended by adding Chapters 6602, 6603, and 6605 to
read as follows:
CHAPTER 6602. BRAZORIA COUNTY DRAINAGE DISTRICT NUMBER FIVE
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 6602.001.  DEFINITIONS
Sec. 6602.002.  NATURE OF DISTRICT
Sec. 6602.003.  LEGISLATIVE FINDINGS
Sec. 6602.004.  DISTRICT TERRITORY
[Sections 6602.005-6602.050 reserved for expansion]
SUBCHAPTER B.  DISTRICT BOARD OF DIRECTORS
Sec. 6602.051.  BOARD OF DIRECTORS
[Sections 6602.052-6602.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
Sec. 6602.101.  GENERAL POWERS AND DUTIES
[Sections 6602.102-6602.150 reserved for expansion]
SUBCHAPTER D.  FINANCIAL PROVISIONS
Sec. 6602.151.  DEPOSITING REVENUE
Sec. 6602.152.  RESPONSIBILITY FOR DISTRICT MONEY
[Sections 6602.153-6602.200 reserved for expansion]
SUBCHAPTER E.  TAXES
Sec. 6602.201.  IMPOSITION OF TAXES
Sec. 6602.202.  TAX ASSESSOR-COLLECTOR
CHAPTER 6602. BRAZORIA COUNTY DRAINAGE DISTRICT NUMBER FIVE
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.6602.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the district's board of directors.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Brazoria County Drainage
District Number Five. (New.)
       Sec.6602.002.NATURE OF DISTRICT.  The district is a
conservation and reclamation district under Section 59, Article
XVI, Texas Constitution. (Acts 41st Leg., 1st C.S., Ch. 36, Secs. 2
(part), 5 (part).)
       Sec.6602.003.LEGISLATIVE FINDINGS.  The legislature finds
that:
             (1)  providing the district with the powers authorized
by Section 59, Article XVI, Texas Constitution, benefits the
citizens and property in the district;
             (2)  all property in the district benefits;
             (3)  all property the district benefits is included in
the district; and
             (4)  the district is essential to accomplish the
purposes of Section 59, Article XVI, Texas Constitution.  (Acts
41st Leg., 1st C.S., Ch. 36, Secs. 2 (part), 11 (part).)
       Sec.6602.004.DISTRICT TERRITORY. The district is
composed of the territory described by Section 1, Chapter 36, Acts
of the 41st Legislature, 1st Called Session, 1929, as that
territory may have been modified under:
             (1)  Subchapter I, Chapter 56, Water Code, before
September 1, 1995;
             (2)  Subchapter J, Chapter 56, Water Code;
             (3)  Subchapter J, Chapter 49, Water Code; or
             (4)  other law.  (New.)
[Sections 6602.005-6602.050 reserved for expansion]
SUBCHAPTER B.  DISTRICT BOARD OF DIRECTORS
       Sec.6602.051.BOARD OF DIRECTORS.  (a)  The board consists
of three directors.
       (b)  The board has all the powers conferred on a board of
directors under Chapter 56, Water Code.  (Acts 41st Leg., 1st C.S.,
Ch. 36, Sec. 4 (part); Acts 67th Leg., 1st C.S., Ch. 8, Sec. 57(a)
(part).)
[Sections 6602.052-6602.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
       Sec.6602.101.GENERAL POWERS AND DUTIES.  The district has
the rights, powers, privileges, and duties of a drainage district
created under Section 59, Article XVI, Texas Constitution,
including the right to:
             (1)  impose taxes; and
             (2)  issue bonds. (Acts 41st Leg., 1st C.S., Ch. 36,
Secs. 5 (part), 7 (part), 11 (part).)
[Sections 6602.102-6602.150 reserved for expansion]
SUBCHAPTER D.  FINANCIAL PROVISIONS
       Sec.6602.151.DEPOSITING REVENUE.  (a)  Tax collections,
after deductions of discounts and fees for collecting taxes, shall
be deposited in the depository of the district.  The collections may
be withdrawn as directed by the board.
       (b)  All other district income shall be deposited in the
district depository. (Acts 41st Leg., 1st C.S., Ch. 36, Sec. 7A(f);
Acts 67th Leg., 1st C.S., Ch. 8, Sec. 57(c) (part).)
       Sec.6602.152.RESPONSIBILITY FOR DISTRICT MONEY. (a)  The
board is responsible for all money the district receives.
       (b)  The county judge does not have a duty to countersign any
warrants or checks. The county treasurer and the county auditor do
not have a duty to perform any services for the district.  (Acts
41st Leg., 1st C.S., Ch. 36, Sec. 7A(g); Acts 67th Leg., 1st C.S.,
Ch. 8, Sec. 57(d) (part).)
[Sections 6602.153-6602.200 reserved for expansion]
SUBCHAPTER E.  TAXES
       Sec.6602.201.IMPOSITION OF TAXES. Not later than October
1 of each year, for the benefit of the district, the board shall:
             (1)  impose a tax on all property subject to taxation in
the district to:
                   (A)  meet the requirements of district bonds; and
                   (B)  provide for district maintenance and
operating expenses; and
             (2)  immediately certify the tax rate to the
assessor-collector of Brazoria County. (Acts 41st Leg., 1st C.S.,
Ch. 36, Secs. 7A(a), (b) (part); Acts 67th Leg., 1st C.S., Ch. 8,
Secs. 57(b), (c) (part).)
       Sec.6602.202.TAX ASSESSOR-COLLECTOR. (a) The tax
assessor-collector of Brazoria County is the tax
assessor-collector for the district.
       (b)  The tax assessor-collector shall charge and deduct from
payments to the district amounts for the tax assessor-collector's
services as may be agreed on by the tax assessor-collector and the
board. (Acts 41st Leg., 1st C.S., Ch. 36, Secs. 7A(b) (part), (e);
Acts 67th Leg., 1st C.S., Ch. 8, Sec. 57(c) (part).)
CHAPTER 6603. BROOKSHIRE-KATY DRAINAGE DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 6603.001.  DEFINITIONS
Sec. 6603.002.  NATURE OF DISTRICT
Sec. 6603.003.  FINDINGS OF BENEFIT AND PURPOSE
Sec. 6603.004.  DISTRICT TERRITORY
[Sections 6603.005-6603.050 reserved for expansion]
SUBCHAPTER B. DISTRICT BOARD OF SUPERVISORS
Sec. 6603.051.  COMPOSITION OF BOARD
Sec. 6603.052.  QUALIFICATIONS
Sec. 6603.053.  SUPERVISORS ELECTION
[Sections 6603.054-6603.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 6603.101.  GENERAL POWERS AND DUTIES
Sec. 6603.102.  CONSTRUCTION OF DRAINAGE FACILITIES OR
                 IMPROVEMENTS
Sec. 6603.103.  CONSISTENCY OF RULES
Sec. 6603.104.  LIMIT ON EMINENT DOMAIN POWER
[Sections 6603.105-6603.150 reserved for expansion]
SUBCHAPTER D. TAXES
Sec. 6603.151.  IMPOSITION OF TAXES
Sec. 6603.152.  DISTRICT TAX ASSESSOR AND COLLECTOR
[Sections 6603.153-6603.200 reserved for expansion]
SUBCHAPTER E. ENFORCEMENT
Sec. 6603.201.  CIVIL PENALTY
Sec. 6603.202.  INJUNCTIVE RELIEF
Sec. 6603.203.  DAMAGES, COURT COSTS, AND ATTORNEY'S
                 FEES
Sec. 6603.204.  PENALTIES CUMULATIVE
CHAPTER 6603. BROOKSHIRE-KATY DRAINAGE DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.6603.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of supervisors of the
district.
             (2)  "District" means the Brookshire-Katy Drainage
District.
             (3)  "Supervisor" means a member of the board.  
(V.A.C.S. Art. 8280-249, Sec. 1 (part); New.)
       Sec.6603.002.NATURE OF DISTRICT. The district is:
             (1)  a conservation and reclamation district created
and incorporated in Waller County under Section 59, Article XVI,
Texas Constitution, for the sole purpose of the reclamation and
drainage of the district's overflowed lands and other lands needing
drainage;
             (2)  a fresh water supply district; and
             (3)  a municipal corporation. (V.A.C.S. Art. 8280-249,
Secs. 1 (part), 2 (part), 6 (part), 7 (part).)
       Sec.6603.003.FINDINGS OF BENEFIT AND PURPOSE.  (a)  The
district is created to serve a public use and benefit.
       (b)  All land and other property included in the district
will benefit from the creation of the district and the improvements
the district will purchase, construct, or otherwise acquire.
       (c)  The district is essential to accomplish the purposes of
Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.
8280-249, Secs. 6 (part), 7 (part).)
       Sec.6603.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 1, Chapter 203, Acts
of the 57th Legislature, Regular Session, 1961 (Article 8280-249,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  Subchapter J, Chapter 49, Water Code; or
             (2)  other law.
       (b)  The legislature finds that the boundaries of the
district as described by Section 1, Chapter 203, Acts of the 57th
Legislature, Regular Session, 1961 (Article 8280-249, Vernon's
Texas Civil Statutes), and the field notes relating to those
boundaries form a closure. A mistake in the field notes or in
copying the field notes in the legislative process does not affect:
             (1)  the district's organization, existence, or
validity;
             (2)  the district's authority to take any action
authorized by this chapter and the general laws; or
             (3)  the legality or operation of the district or the
board.
       (c)  It is the intention of the legislature that all land
included in the district as created in 1961 be included in the
boundaries of the district as described by Section 1, Chapter 203,
Acts of the 57th Legislature, Regular Session, 1961 (Article
8280-249, Vernon's Texas Civil Statutes). (V.A.C.S. Art. 8280-249,
Sec. 1A; New.)
[Sections 6603.005-6603.050 reserved for expansion]
SUBCHAPTER B. DISTRICT BOARD OF SUPERVISORS
       Sec.6603.051.COMPOSITION OF BOARD. The board consists of
five supervisors. (V.A.C.S. Art. 8280-249, Sec. 3 (part).)
       Sec.6603.052.QUALIFICATIONS. A candidate for supervisor
must:
             (1)  be at least 18 years of age;
             (2)  own land subject to taxation in the district; and
             (3)  reside in the area from which the candidate seeks
election. (V.A.C.S. Art. 8280-249, Sec. 3 (part).)
       Sec.6603.053.SUPERVISORS ELECTION. (a) For the election
of supervisors, the district is divided into five areas, numbered
one to five.
       (b)  Each candidate for supervisor must be designated on the
official ballot according to the number of the area in which the
candidate resides.
       (c)  Each district voter is entitled to vote for candidates
from all five areas.
       (d)  The candidate from each area who receives the highest
number of votes for supervisor is elected. (V.A.C.S. Art.
8280-249, Sec. 3 (part).)
[Sections 6603.054-6603.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.6603.101.GENERAL POWERS AND DUTIES. To accomplish
the purposes of Section 6603.002(1), the district has all the
rights, powers, privileges, and duties conferred and imposed by
general law, including Chapters 49 and 53, Water Code, on fresh
water supply districts created under Section 59, Article XVI, Texas
Constitution, including the power to conserve, transport, and
distribute fresh water. (V.A.C.S. Art. 8280-249, Sec. 2 (part).)
       Sec. 6603.102.  CONSTRUCTION OF DRAINAGE FACILITIES OR
IMPROVEMENTS. (a) Except as provided by Subsection (b), a person
may not construct drainage facilities or improvements on or to
serve a tract of land in the district unless the district has
approved the plans and specifications for the facilities or
improvements.
       (b)  Plans and specifications for drainage facilities or
improvements located in the corporate limits or the
extraterritorial jurisdiction of a municipality require only the
approval of the municipality if:
             (1)  the municipality's corporate limits are located in
more than one county;
             (2)  part of the municipality's corporate limits and
extraterritorial jurisdiction in Waller County is located in the
district;
             (3)  the municipality has a population of less than
100,000; and
             (4)  the drainage facilities or improvements are
located outside district-owned property or facilities.
       (c)  The district may adopt reasonable rules and set
reasonable standards to provide for adequate drainage construction
in accordance with standard engineering practices. The rules and
standards may require the drainage plan to be generally compatible
with the district's master plan.
       (d)  The district by rule may establish procedures for:
             (1)  the presentation of plans and specifications to
the district; and
             (2)  the review and disposition of the plans and
specifications by the district.
       (e)  The district, after review by its engineer, shall
determine the cost of any drainage facilities or improvements and
recommend to the appropriate governing body with jurisdiction over
the subdivision that a surety bond or other approved security in
that amount for the construction of drainage facilities or
improvements be secured in the name of the governing body. If the
governing body does not secure a bond, the district may secure a
bond for the cost of construction of drainage facilities or
improvements.
       (f)  The district may refuse to approve plans and
specifications if:
             (1)  the plans and specifications do not comply with
district rules; or
             (2)  all applicable fees have not been paid.
       (g)  This section does not apply to:
             (1)  agricultural activity; or
             (2)  any other activity that does not create an
aggregate impervious area of more than one acre.
       (h)  This section does not limit the authority or
jurisdiction of a municipality or county to regulate plans and
specifications for the construction of drainage facilities or
improvements other than facilities owned or maintained by the
district.
       (i)  The district's rules and standards for the construction
of drainage facilities or improvements do not apply to a facility or
improvement not owned or maintained by the district in the
corporate limits of a municipality unless the governing body of the
municipality or county requires the person to submit the plans and
specifications for drainage construction to the district.
(V.A.C.S. Art. 8280-249, Sec. 6A.)
       Sec.6603.103.CONSISTENCY OF RULES. Rules adopted by the
district must be consistent with Chapters 49 and 53, Water Code.
(V.A.C.S. Art. 8280-249, Sec. 6B(a).)
       Sec.6603.104.LIMIT ON EMINENT DOMAIN POWER. The district
may not exercise its power of eminent domain outside the district
without the express consent of the governing body of the
municipality or the commissioners court of the county in which the
territory being condemned is located. (V.A.C.S. Art. 8280-249,
Sec. 6B(b).)
[Sections 6603.105-6603.150 reserved for expansion]
SUBCHAPTER D. TAXES
       Sec.6603.151.IMPOSITION OF TAXES. (a)  Taxes shall be
imposed under the provisions of the general laws applicable to
fresh water supply districts, including Chapters 49 and 53, Water
Code. The district must hold an election required for the
imposition or increase of taxes in the manner provided by Section
49.107, Water Code.
       (b)  The district may not impose taxes at a rate that exceeds
75 cents on the $100 valuation of taxable property in the district.
(V.A.C.S. Art. 8280-249, Sec. 5.)
       Sec.6603.152.DISTRICT TAX ASSESSOR AND COLLECTOR. (a)  
The assessor and collector of taxes for Waller County is the
assessor and collector of taxes for the district.
       (b)  For services to the district in assessing and collecting
taxes for the district, the assessor and collector may deduct from
all taxes collected on the current year's tax rolls an amount of
money to which the board agrees, not to exceed the amount provided
by the general laws relating to the imposition of ad valorem taxes.
       (c)  For the collection of delinquent taxes, the assessor and
collector may receive compensation in the same manner as the
assessor and collector receives for collecting delinquent state and
county taxes. The assessor and collector may not duplicate a charge
made for costs of suit related to enforcement of state and county
taxes. (V.A.C.S. Art. 8280-249, Sec. 4.)
[Sections 6603.153-6603.200 reserved for expansion]
SUBCHAPTER E. ENFORCEMENT
       Sec.6603.201.CIVIL PENALTY. (a) A person who violates
this chapter or a rule adopted under this chapter is liable to the
district for a civil penalty of not less than $10 or more than $200
for each violation.
       (b)  Each day a violation continues is a separate violation.
(V.A.C.S. Art. 8280-249, Sec. 6C(a) (part).)
       Sec.6603.202.INJUNCTIVE RELIEF. (a) The district may sue
in a district court to enjoin a violation or threatened violation of
this chapter or a rule adopted under this chapter.
       (b)  The district may sue for injunctive relief and a civil
penalty in the same proceeding. (V.A.C.S. Art. 8280-249, Sec.
6C(b).)
       Sec.6603.203.DAMAGES, COURT COSTS, AND ATTORNEY'S FEES.
If the district sues to recover a civil penalty or for injunctive
relief under this chapter, or to recover any fee or charge under
this chapter, the court may include in any final judgment in favor
of the district an award for damages, the recovery of court costs,
and reasonable attorney's fees. (V.A.C.S. Art. 8280-249, Sec.
6C(c).)
       Sec.6603.204.PENALTIES CUMULATIVE. A penalty under this
subchapter is in addition to any other penalty authorized by law.
(V.A.C.S. Art. 8280-249, Sec. 6C(a) (part).)
CHAPTER 6605.  BRAZORIA COUNTY DRAINAGE DISTRICT NO. 8
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 6605.001.  DEFINITIONS
Sec. 6605.002.  NATURE OF DISTRICT
Sec. 6605.003.  LEGISLATIVE FINDINGS
Sec. 6605.004.  DISTRICT TERRITORY
[Sections 6605.005-6605.050 reserved for expansion]
SUBCHAPTER B. DISTRICT BOARD OF DIRECTORS
Sec. 6605.051.  BOARD OF DIRECTORS
[Sections 6605.052-6605.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 6605.101.  GENERAL POWERS AND DUTIES
[Sections 6605.102-6605.150 reserved for expansion]
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 6605.151.  DEPOSITING REVENUE
Sec. 6605.152.  RESPONSIBILITY FOR DISTRICT MONEY
[Sections 6605.153-6605.200 reserved for expansion]
SUBCHAPTER E. TAXES
Sec. 6605.201.  IMPOSITION OF TAXES
Sec. 6605.202.  TAX ASSESSOR-COLLECTOR
CHAPTER 6605.  BRAZORIA COUNTY DRAINAGE DISTRICT NO. 8
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.6605.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the district's board of directors.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Brazoria County Drainage
District No. 8. (New.)
       Sec.6605.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district under Section 59, Article
XVI, Texas Constitution. (Acts 41st Leg., 4th C.S., Ch. 6, S.L.,
Secs. 2 (part), 5 (part).)
       Sec.6605.003.LEGISLATIVE FINDINGS. The legislature finds
that:
             (1)  providing the district with the powers authorized
by Section 59, Article XVI, Texas Constitution, benefits the
citizens and property in the district;
             (2)  all property in the district benefits;
             (3)  all property the district benefits is included in
the district; and
             (4)  the district is essential to accomplish the
purposes of Section 59, Article XVI, Texas Constitution. (Acts
41st Leg., 4th C.S., Ch. 6, S.L., Secs. 2 (part), 11 (part).)
       Sec.6605.004.DISTRICT TERRITORY. The district is
composed of the territory described by Section 1, Chapter 6,
Special Laws, Acts of the 41st Legislature, 4th Called Session,
1930, as that territory may have been modified under:
             (1)  Subchapter I, Chapter 56, Water Code, before
September 1, 1995;
             (2)  Subchapter J, Chapter 56, Water Code;
             (3)  Subchapter J, Chapter 49, Water Code; or
             (4)  other law. (New.)
[Sections 6605.005-6605.050 reserved for expansion]
SUBCHAPTER B. DISTRICT BOARD OF DIRECTORS
       Sec.6605.051.BOARD OF DIRECTORS. (a)  The board consists
of three directors.
       (b)  The board has all the powers conferred on a board of
directors under Chapter 56, Water Code. (Acts 41st Leg., 4th C.S.,
Ch. 6, S.L., Sec. 4 (part); Acts 67th Leg., 1st C.S., Ch. 8, Sec.
57(a) (part).)
[Sections 6605.052-6605.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.6605.101.GENERAL POWERS AND DUTIES. The district has
the rights, powers, privileges, and duties of a drainage district
created under Section 59, Article XVI, Texas Constitution,
including the right to:
             (1)  impose taxes; and
             (2)  issue bonds. (Acts 41st Leg., 4th C.S., Ch. 6,
S.L., Secs. 5 (part), 7 (part), 11 (part).)
[Sections 6605.102-6605.150 reserved for expansion]
SUBCHAPTER D. FINANCIAL PROVISIONS
       Sec.6605.151.DEPOSITING REVENUE. (a)  Tax collections,
after deductions of discounts and fees for collecting taxes, shall
be deposited in the depository of the district. The collections may
be withdrawn as directed by the board.
       (b)  All other district income shall be deposited in the
district depository. (Acts 41st Leg., 4th C.S., Ch. 6, S.L., Sec.
7A(f); Acts 67th Leg., 1st C.S., Ch. 8, Sec. 57(c) (part).)
       Sec.6605.152.RESPONSIBILITY FOR DISTRICT MONEY. (a)  The
board is responsible for all money the district receives.
       (b)  The county judge does not have a duty to countersign any
warrants or checks. The county treasurer and the county auditor do
not have a duty to perform any services for the district. (Acts
41st Leg., 4th C.S., Ch. 6, S.L., Sec. 7A(g); Acts 67th Leg., 1st
C.S., Ch. 8, Sec. 57(d) (part).)
[Sections 6605.153-6605.200 reserved for expansion]
SUBCHAPTER E. TAXES
       Sec.6605.201.IMPOSITION OF TAXES. Not later than October
1 of each year, for the benefit of the district, the board shall:
             (1)  impose a tax on all property subject to taxation in
the district to:
                   (A)  meet the requirements of district bonds; and
                   (B)  provide for district maintenance and
operating expenses; and
             (2)  immediately certify the tax rate to the
assessor-collector of Brazoria County. (Acts 41st Leg., 4th C.S.,
Ch. 6, S.L., Secs. 7A(a), (b) (part); Acts 67th Leg., 1st C.S., Ch.
8, Secs. 57(b), (c) (part).)
       Sec.6605.202.TAX ASSESSOR-COLLECTOR. (a)  The tax
assessor-collector of Brazoria County is the tax
assessor-collector for the district.
       (b)  The tax assessor-collector shall charge and deduct from
payments to the district amounts for the tax assessor-collector's
services as may be agreed on by the tax assessor-collector and the
board. (Acts 41st Leg., 4th C.S., Ch. 6, S.L., Secs. 7A(b) (part),
(e); Acts 67th Leg., 1st C.S., Ch. 8, Sec. 57(c) (part).)
       SECTION 1.06.  Subtitle B, Title 6, Special District Local
Laws Code, is amended by adding Chapters 6902, 6903, 6904, 6905, and
6906 to read as follows:
CHAPTER 6902. CRANE COUNTY WATER DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 6902.001.  DEFINITIONS
Sec. 6902.002.  NATURE OF DISTRICT
Sec. 6902.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 6902.004.  DISTRICT TERRITORY
Sec. 6902.005.  SUFFICIENT AUTHORITY FOR ENTITIES TO
                 ACT
[Sections 6902.006-6902.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 6902.051.  COMPOSITION OF BOARD
Sec. 6902.052.  TERMS
Sec. 6902.053.  QUALIFICATIONS FOR OFFICE
Sec. 6902.054.  EX OFFICIO DIRECTORS
Sec. 6902.055.  VACANCY
Sec. 6902.056.  REMOVAL FROM OFFICE
Sec. 6902.057.  QUORUM
Sec. 6902.058.  BOARD RESOLUTIONS; VOTING REQUIREMENTS
Sec. 6902.059.  OFFICERS AND ASSISTANTS
Sec. 6902.060.  OFFICER DUTIES
Sec. 6902.061.  MEETINGS
Sec. 6902.062.  PERSONAL LIABILITY OF DIRECTORS
[Sections 6902.063-6902.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 6902.101.  GENERAL POWERS
Sec. 6902.102.  AUTHORITY TO SUE AND BE SUED
Sec. 6902.103.  SEAL
Sec. 6902.104.  BYLAWS; RULES
Sec. 6902.105.  GIFTS AND GRANTS
Sec. 6902.106.  OFFICE
Sec. 6902.107.  EMPLOYEES, AGENTS, AND OFFICERS
Sec. 6902.108.  WATER CONSERVATION PROGRAM
Sec. 6902.109.  WATER PERMITS
Sec. 6902.110.  GENERAL AUTHORITY OF PUBLIC AGENCIES
                 AND POLITICAL SUBDIVISIONS TO
                 CONTRACT WITH DISTRICT
Sec. 6902.111.  CONTRACTS TO SUPPLY WATER
Sec. 6902.112.  SOURCES FOR WATER; ACQUISITION OF LAND;
                 STORAGE CAPACITY
Sec. 6902.113.  ACQUISITION, DISPOSAL, AND MANAGEMENT
                 OF PROPERTY
Sec. 6902.114.  CONSTRUCTION CONTRACTS
Sec. 6902.115.  CONVEYANCE OF LAND TO DISTRICT
Sec. 6902.116.  SURPLUS PROPERTY
Sec. 6902.117.  EMINENT DOMAIN
Sec. 6902.118.  COST OF RELOCATING OR ALTERING PROPERTY
Sec. 6902.119.  RIGHTS-OF-WAY; EASEMENTS
[Sections 6902.120-6902.150 reserved for expansion]
SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
Sec. 6902.151.  TAX COLLECTION
Sec. 6902.152.  ADVISORY DUTIES OF CRANE COUNTY AUDITOR
Sec. 6902.153.  DISTRICT MONEY
Sec. 6902.154.  DEPOSITORY
Sec. 6902.155.  INVESTMENT OF DISTRICT MONEY
Sec. 6902.156.  DISTRICT FACILITIES EXEMPT FROM
                 TAXATION AND ASSESSMENT
[Sections 6902.157-6902.200 reserved for expansion]
SUBCHAPTER E.  GENERAL BOND PROVISIONS
Sec. 6902.201.  AUTHORITY TO ISSUE BONDS
Sec. 6902.202.  FORM OF BONDS
Sec. 6902.203.  MATURITY
Sec. 6902.204.  ELECTION FOR BONDS PAYABLE FROM
                 PROPERTY TAXES
Sec. 6902.205.  BONDS SECURED BY REVENUE; ADDITIONAL
                 BONDS
Sec. 6902.206.  BONDS PAYABLE FROM PROPERTY TAXES
Sec. 6902.207.  ADDITIONAL SECURITY
Sec. 6902.208.  TRUST INDENTURE
Sec. 6902.209.  CHARGES FOR DISTRICT SERVICES
Sec. 6902.210.  USE OF BOND PROCEEDS
Sec. 6902.211.  APPOINTMENT OF RECEIVER
Sec. 6902.212.  LIMITATION ON RIGHTS OF HOLDERS
Sec. 6902.213.  BONDS EXEMPT FROM TAXATION
Sec. 6902.214.  EXCLUSION OF TERRITORY AFTER ISSUANCE
                 OF BONDS
[Sections 6902.215-6902.250 reserved for expansion]
SUBCHAPTER F. REFUNDING BONDS
Sec. 6902.251.  AUTHORITY TO ISSUE REFUNDING BONDS;
                 APPLICABILITY OF LAW RELATING TO
                 OTHER BONDS
Sec. 6902.252.  TERMS OF ISSUANCE OF REFUNDING BONDS
Sec. 6902.253.  REGISTRATION OF REFUNDING BONDS BY
                 COMPTROLLER
Sec. 6902.254.  ESCROW AGREEMENT
CHAPTER 6902. CRANE COUNTY WATER DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.6902.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the district's board of directors.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Crane County Water District.
(Acts 69th Leg., R.S., Ch. 775, Sec. 2; New.)
       Sec.6902.002.NATURE OF DISTRICT.  The district is a
conservation and reclamation district created under Section 59,
Article XVI, Texas Constitution.  (Acts 69th Leg., R.S., Ch. 775,
Sec. 1 (part).)
       Sec.6902.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  
The accomplishment of the purposes stated in this chapter is for:
             (1)  the benefit of the people of this state; and
             (2)  the improvement of their property and industries.
       (b)  The district, in carrying out the purposes of this
chapter, will be performing an essential public function under the
constitution.  (Acts 69th Leg., R.S., Ch. 775, Sec. 22.)
       Sec.6902.004.DISTRICT TERRITORY.  The district includes
all of the territory in the boundaries of Crane County as the
boundaries of that county existed on January 1, 1985, and as the
district territory may have been modified under:
             (1)  Subchapter J, Chapter 49, Water Code; or
             (2)  other law.  (Acts 69th Leg., R.S., Ch. 775, Sec. 3;
New.)
       Sec.6902.005.SUFFICIENT AUTHORITY FOR ENTITIES TO ACT.
This chapter provides sufficient authority to issue district bonds,
execute contracts and conveyances, and perform any other act or
procedure authorized under this chapter by the district, the City
of Crane, public agencies, special districts, and other political
subdivisions, without reference to other law or a restriction or
limitation contained in other law, except as specifically provided
by this chapter. (Acts 69th Leg., R.S., Ch. 775, Sec. 26 (part).)
[Sections 6902.006-6902.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.6902.051.COMPOSITION OF BOARD. The district is
governed by a board composed of five directors appointed by the
Commissioners Court of Crane County. The directors occupy numbered
places on the board, with the places numbered as Places 1, 2, 3, 4,
and 5.  (Acts 69th Leg., R.S., Ch. 775, Secs. 4(a), (d).)
       Sec.6902.052.TERMS. Each appointed director shall serve
for a term of two years, with the terms of the directors appointed
to occupy Places 1 and 2 expiring on June 1 of each even-numbered
year and the terms of the directors appointed to occupy Places 3, 4,
and 5 expiring on June 1 of each odd-numbered year.  (Acts 69th
Leg., R.S., Ch. 775, Secs. 4(b), (e).)
       Sec.6902.053.QUALIFICATIONS FOR OFFICE. (a)  To be
eligible for appointment as a director, a person must be:
             (1)  a qualified district voter; and
             (2)  a district resident.
       (b)  A director is eligible for reappointment.  (Acts 69th
Leg., R.S., Ch. 775, Secs. 4(f), (h).)
       Sec.6902.054.EX OFFICIO DIRECTORS. The county judge of
Crane County and the mayor of the City of Crane shall serve as ex
officio directors. The county judge and mayor are entitled to
attend all board meetings and participate in all board proceedings
but are not entitled to vote on matters before the board. (Acts
69th Leg., R.S., Ch. 775, Sec. 4(c).)
       Sec.6902.055.VACANCY. The Commissioners Court of Crane
County by appointment shall fill a vacancy on the board for the
unexpired term. (Acts 69th Leg., R.S., Ch. 775, Sec. 4(g).)
       Sec.6902.056.REMOVAL FROM OFFICE. After reasonable
notice and a public hearing, the remaining members of the board may
remove a director from office for misfeasance, malfeasance, or
wilful neglect of duty. Reasonable notice and a public hearing are
not required if the director to be removed expressly waives the
notice and hearing in writing. (Acts 69th Leg., R.S., Ch. 775, Sec.
4(i).)
       Sec.6902.057.QUORUM. Any three regular directors
constitute a quorum. (Acts 69th Leg., R.S., Ch. 775, Sec. 5(d)
(part).)
       Sec.6902.058.BOARD RESOLUTIONS; VOTING REQUIREMENTS. (a)  
The district shall act through resolutions adopted by the board.
       (b)  All regular directors are entitled to vote on matters
before the board.
       (c)  The affirmative vote of at least three of the regular
directors is necessary to adopt a resolution. (Acts 69th Leg.,
R.S., Ch. 775, Sec. 5(d) (part).)
       Sec.6902.059.OFFICERS AND ASSISTANTS. (a)  The board
shall elect a president, vice president, secretary, and treasurer
at the first meeting of the board in March of each year or at any
time necessary to fill a vacancy.
       (b)  The board shall elect the president and vice president
from among the directors.  The president and vice president shall
serve for terms of one year.
       (c)  The offices of secretary and treasurer:
             (1)  may be held by one person; and
             (2)  are not required to be held by a director.
       (d)  The board may appoint as assistant board secretary one
or more persons who are not directors.  (Acts 69th Leg., R.S., Ch.
775, Secs. 5(a) (part), (b) (part), (c) (part), (e) (part).)
       Sec.6902.060.OFFICER DUTIES. (a)  The board president
shall preside at board meetings and perform other duties prescribed
by the board.
       (b)  The board secretary is the official custodian of the
minutes, books, records, and seal of the board and shall perform
other duties and functions prescribed by the board.  An assistant
board secretary may perform any duty or function of the board
secretary.
       (c)  The board treasurer shall perform duties and functions
prescribed by the board. (Acts 69th Leg., R.S., Ch. 775, Secs. 5(a)
(part), (c) (part).)
       Sec.6902.061.MEETINGS. The board shall have regular
meetings at times specified by board resolution and shall have
special meetings when called by the board president or by any three
directors. (Acts 69th Leg., R.S., Ch. 775, Sec. 5(f).)
       Sec.6902.062.PERSONAL LIABILITY OF DIRECTORS. A director
is not personally liable for any bond issued or contract executed by
the district. (Acts 69th Leg., R.S., Ch. 775, Sec. 5(g).)
[Sections 6902.063-6902.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.6902.101.GENERAL POWERS. The district may exercise
all powers necessary or appropriate to carry out the purposes of
this chapter.  (Acts 69th Leg., R.S., Ch. 775, Sec. 7(a).)
       Sec.6902.102.AUTHORITY TO SUE AND BE SUED. The district
may sue and be sued in the district's own name. (Acts 69th Leg.,
R.S., Ch. 775, Sec. 7(b).)
       Sec.6902.103.SEAL. The board may adopt an official seal.
(Acts 69th Leg., R.S., Ch. 775, Sec. 7(c) (part).)
       Sec.6902.104.BYLAWS; RULES. The board may adopt and
enforce bylaws and rules. (Acts 69th Leg., R.S., Ch. 775, Sec. 7(c)
(part).)
       Sec.6902.105.GIFTS AND GRANTS. The district may request
and accept any appropriation, grant, allocation, subsidy,
guaranty, aid, service, material, or gift from any person. (Acts
69th Leg., R.S., Ch. 775, Sec. 7(g).)
       Sec.6902.106.OFFICE. The district may operate and
maintain an office. (Acts 69th Leg., R.S., Ch. 775, Sec. 7(h)
(part).)
       Sec.6902.107.EMPLOYEES, AGENTS, AND OFFICERS. The
district may appoint and determine the duties, tenure,
qualifications, and compensation of the officers, employees,
agents, and professional advisors and counselors of the district,
including financial consultants, accountants, attorneys,
architects, engineers, appraisers, and financial experts the board
considers necessary. (Acts 69th Leg., R.S., Ch. 775, Sec. 7(h)
(part).)
       Sec.6902.108.WATER CONSERVATION PROGRAM. (a)  In this
section, "program of water conservation" means the practices,
techniques, and technologies that will reduce water consumption,
reduce water loss or waste, improve efficiency in water use, or
increase water recycling and reuse so that a water supply is
available for future uses.
       (b)  The district shall adopt and implement a program of
water conservation consistent with rules and criteria adopted and
enforceable by the Texas Commission on Environmental Quality for
similarly situated districts in the region. (Acts 69th Leg., R.S.,
Ch. 775, Sec. 6.)
       Sec.6902.109.WATER PERMITS. (a)  The district may obtain
water appropriation permits and diversion permits from the Texas
Commission on Environmental Quality.
       (b)  The district may acquire water appropriation permits
from owners of permits by contract or otherwise. (Acts 69th Leg.,
R.S., Ch. 775, Secs. 8(a), (b).)
       Sec. 6902.110.  GENERAL AUTHORITY OF PUBLIC AGENCIES AND
POLITICAL SUBDIVISIONS TO CONTRACT WITH DISTRICT.  A municipality,
public agency, special district, or other political subdivision of
the state, including the City of Crane, may enter into a contract or
agreement with the district for a water supply, or for any purpose
relating to the district's powers or functions, on terms agreed to
by the parties. Approval, notice, consent, or an election is not
required in connection with a contract or agreement.  (Acts 69th
Leg., R.S., Ch. 775, Sec. 9(c) (part).)
       Sec.6902.111.CONTRACTS TO SUPPLY WATER.  (a) The district
may contract with municipalities, public agencies, special
districts, other political subdivisions of the state, and other
entities, including the City of Crane, for supplying water to them.  
The district may sell water inside or outside the boundaries of the
district.
       (b)  A contract with the City of Crane must provide that the
city will pay to the district a portion of any surplus revenue from
the operation of the city's water system.
       (c)  The district may contract with a municipality, public
agency, special district, or other political subdivision of the
state for the rental or leasing of or for the operation of the water
production, water field, water supply, water filtration or
purification, or water supply facilities of the entity on the
consideration agreed to by the district and the entity.
       (d)  A contract may include the terms and be for the time
agreed to by the parties.
       (e)  A contract may provide that it will continue in effect
until bonds specified in it and refunding bonds issued in lieu of
those bonds are paid.
       (f)  The district may contract with the City of Crane for the
operation of the district's water facilities by the City of Crane.
An election is not required in connection with the contract. (Acts
69th Leg., R.S., Ch. 775, Secs. 9(b) (part), 19.)
       Sec. 6902.112.  SOURCES FOR WATER; ACQUISITION OF LAND;
STORAGE CAPACITY.  (a)  The district may acquire or construct inside
or outside the district one or more reservoirs and any work, water
well, water field, pump, plant, transmission line, or other
facility necessary or useful to divert, impound, drill for, store,
treat, or transport water to the City of Crane and others for
municipal, domestic, industrial, mining, oil flooding, or other
useful purposes.
       (b)  The district may acquire land or an interest in land,
inside or outside the district, for any work, water well, water
field, pump, plant, or other facility necessary or useful to
divert, impound, drill for, store, treat, or transport water to the
City of Crane and others for municipal, domestic, industrial,
mining, oil flooding, or any other useful purpose.
       (c)  The district may lease, purchase, or otherwise acquire
rights in and to storage and storage capacity in any reservoir
constructed or to be constructed by any person.
       (d)  The district may develop or otherwise acquire
underground sources of water. (Acts 69th Leg., R.S., Ch. 775, Secs.
8(c), 9(a) (part), (b) (part), 10 (part).)
       Sec. 6902.113.  ACQUISITION, DISPOSAL, AND MANAGEMENT OF
PROPERTY. The district may:
             (1)  acquire, own, rent, lease, accept, hold, or
dispose of property or an interest in property, including a right or
easement, by any means, including purchase, exchange, gift,
assignment, condemnation, sale, or lease, to perform a duty or
exercise a power under this chapter;
             (2)  sell, assign, lease, encumber, mortgage, or
otherwise dispose of property or an interest in property, and
release or relinquish a right, title, claim, lien, interest,
easement, or demand by public or private sale, with or without
public bidding, notwithstanding any other law;
             (3)  lease or rent any land, buildings, structures, or
facilities to carry out the purposes of this chapter; and
             (4)  manage, operate, or improve property.  (Acts 69th
Leg., R.S., Ch. 775, Secs. 7(e), (f).)
       Sec.6902.114.CONSTRUCTION CONTRACTS. (a) The district
may award a construction contract that requires an expenditure of
more than $5,000 only after publication of notice to bidders once
each week for two consecutive weeks in a newspaper of general
circulation in the district.
       (b)  The notice is sufficient if it states:
             (1)  the time and place for opening the bids;
             (2)  the general nature of the work to be done or the
material, equipment, or supplies to be purchased; and
             (3)  the place where the terms of bidding and copies of
the plans and specifications may be obtained. (Acts 69th Leg.,
R.S., Ch. 775, Sec. 13.)
       Sec.6902.115.CONVEYANCE OF LAND TO DISTRICT. A
municipality, public agency, special district, or other political
subdivision of the state, including the City of Crane, may lease,
sell, or otherwise convey its land or an interest in land to the
district for consideration that the parties agree is adequate.  
Approval, notice, consent, or an election is not required in
connection with a conveyance, contract, or agreement.  (Acts 69th
Leg., R.S., Ch. 775, Sec. 9(c) (part).)
       Sec.6902.116.SURPLUS PROPERTY. Subject to the terms of a
resolution or deed of trust authorizing or securing bonds issued by
the district, the district may sell, lease, rent, trade, or
otherwise dispose of property the board considers not needed for
district purposes. (Acts 69th Leg., R.S., Ch. 775, Sec. 10 (part).)
       Sec.6902.117.EMINENT DOMAIN. (a)  To carry out a power
conferred by this chapter, the district may exercise the power of
eminent domain to acquire the fee simple title to land or any other
interest in land and other property and easements, including water
rights, land, or any interest in land needed for water fields, water
wells, or reservoir and dam and flood easements above the probable
high water line around any reservoirs inside or outside the
district.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code.
       (c)  The board shall determine the amount and the type of the
interest in land, other property, and easements to be acquired.  
(Acts 69th Leg., R.S., Ch. 775, Secs. 11(a), (b).)
       Sec.6902.118.COST OF RELOCATING OR ALTERING PROPERTY.
(a) In this section, "sole expense" means the actual cost of the
relocating, raising, lowering, rerouting, or change in grade or
alteration of construction required under Subsection (b) to provide
a comparable replacement without enhancing the facility, after
deducting the net salvage value derived from the old facility.
       (b)  If the district's exercise of eminent domain, police
power, or of another power conferred by this chapter requires
relocating, raising, lowering, rerouting, or changing the grade of,
or altering the construction of any railroad, electric
transmission, telegraph, or telephone line, conduit, pole,
property or facility, or pipeline, the action shall be accomplished
at the sole expense of the district. (Acts 69th Leg., R.S., Ch.
775, Sec. 11(c).)
       Sec.6902.119.RIGHTS-OF-WAY; EASEMENTS.   The district
has necessary or useful rights-of-way and easements along, over,
under, and across all public, state, municipal, and county roads,
highways, and places for any of its purposes.  The district shall
restore a facility used by the district to its previous condition as
nearly as possible at the sole expense of the district as defined by
Section 6902.118(a). (Acts 69th Leg., R.S., Ch. 775, Sec. 12(b).)
[Sections 6902.120-6902.150 reserved for expansion]
SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
       Sec.6902.151.TAX COLLECTION.  The district shall contract
with Crane County to collect property taxes for the district.  (Acts
69th Leg., R.S., Ch. 775, Sec. 24(b).)
       Sec.6902.152.ADVISORY DUTIES OF CRANE COUNTY AUDITOR.  
The Crane County auditor shall serve as an advisor to the district,
without remuneration, for the preparation of the district's budget
and the imposition of the district's property taxes.  (Acts 69th
Leg., R.S., Ch. 775, Sec. 24(c).)
       Sec.6902.153.DISTRICT MONEY. The district may acquire,
hold, use, and dispose of its money from any source. (Acts 69th
Leg., R.S., Ch. 775, Sec. 7(d) (part).)
       Sec.6902.154.DEPOSITORY. (a) The board may select and
shall designate one or more banks inside or outside the district to
serve as the depository for the district's money.
       (b)  The district's money shall be deposited in the
depository designated by the board, except that:
             (1)  bond proceeds and money pledged to pay bonds, to
the extent provided in a resolution or trust indenture authorizing
or securing district bonds, may be deposited with another bank or
trustee named in the bond resolution or trust indenture; and
             (2)  money shall be remitted to each paying agent for
the payment of principal of and interest on the bonds.
       (c)  To the extent that money in a depository bank or trustee
bank is not insured by the Federal Deposit Insurance Corporation,
the money must be secured in the manner provided by law for the
security of county funds.  (Acts 69th Leg., R.S., Ch. 775, Secs.
7(d) (part), 20(a), (b), (c).)
       Sec.6902.155.INVESTMENT OF DISTRICT MONEY.  The board may
invest district money as determined by the board or in the manner
provided by a resolution or trust indenture authorizing or securing
district bonds. (Acts 69th Leg., R.S., Ch. 775, Sec. 20(d).)
       Sec. 6902.156.  DISTRICT FACILITIES EXEMPT FROM TAXATION AND
ASSESSMENT.  The district is not required to pay a tax or assessment
on its facilities or any part of its facilities.  (Acts 69th Leg.,
R.S., Ch. 775, Sec. 23 (part).)
[Sections 6902.157-6902.200 reserved for expansion]
SUBCHAPTER E.  GENERAL BOND PROVISIONS
       Sec.6902.201.AUTHORITY TO ISSUE BONDS.  (a)  The district
may issue bonds to carry out any power provided by this chapter.  
The bonds must be authorized by a board resolution.
       (b)  The bonds may be payable from and secured by revenue or
property taxes, or both revenue and property taxes, of the
district, in the manner and under the terms of the resolution
authorizing the issuance of the bonds.
       (c)  The district may issue bonds, provide for and secure the
payment of the bonds, and provide for the rights of the bondholders,
in the manner and to the extent permitted by this chapter.  (Acts
69th Leg., R.S., Ch. 775, Secs. 7(i), 14(a), (b) (part), (c), (e)
(part).)
       Sec.6902.202.FORM OF BONDS.  (a)  A district bond must be:
             (1)  issued in the district's name;
             (2)  signed by the president or vice president;
             (3)  attested by the secretary; and
             (4)  bear the district seal.
       (b)  The district seal may be impressed or printed on the
bonds. (Acts 69th Leg., R.S., Ch. 775, Sec. 14(b) (part).)
       Sec.6902.203.MATURITY.  District bonds must mature not
later than 40 years after the date of their issuance.  (Acts 69th
Leg., R.S., Ch. 775, Sec. 14(b) (part).)
       Sec. 6902.204.  ELECTION FOR BONDS PAYABLE FROM PROPERTY
TAXES. (a)  The district may not issue bonds, except refunding
bonds, payable wholly or partly from property taxes unless the
issuance of the bonds is authorized by a majority of the district
voters at an election.
       (b)  The district may issue bonds not payable wholly or
partly from property taxes without an election.
       (c)  A bond election may be called by the board on a motion of
the board.
       (d)  A resolution calling a bond election must state:
             (1)  the time and each place for holding the election;
             (2)  the purpose for which the bonds are to be issued;
             (3)  the amount of the bonds;
             (4)  the form of the ballot; and
             (5)  other matters considered necessary or advisable by
the board.
       (e)  The board shall give notice of the election by
publishing a substantial copy of the resolution calling the
election in a newspaper with general circulation in the district
once a week for two consecutive weeks, with the first publication to
be not later than the 14th day before the date of the election.  
(Acts 69th Leg., R.S., Ch. 775, Secs. 17(a), (c), (d), (e), (f).)
       Sec.6902.205.BONDS SECURED BY REVENUE; ADDITIONAL BONDS.
(a)  Bonds issued under this subchapter may be secured by a pledge
of all or part of the district's revenue, or by all or part of the
revenue of one or more district contracts or other revenue or income
specified by board resolution or a trust indenture securing the
bonds.  The pledge may reserve the right, under conditions
specified by the pledge, to issue additional bonds that will be on a
parity with or subordinate to the bonds being issued.
       (b)  The district may issue bonds secured by both property
taxes and revenue of the district.  (Acts 69th Leg., R.S., Ch. 775,
Secs. 14(d), (e) (part).)
       Sec.6902.206.BONDS PAYABLE FROM PROPERTY TAXES.  (a)  If
bonds are issued payable wholly or partly from property taxes, the
board must impose a tax on the taxable property in the district in
an amount sufficient to pay the principal of and interest on the
bonds.
       (b)  The district may adopt the rate of a tax imposed under
Subsection (a) after giving consideration to the money received
from the pledged revenue that may be available for payment of
principal and interest, to the extent and in the manner permitted by
the resolution authorizing the issuance of the bonds. (Acts 69th
Leg., R.S., Ch. 775, Sec. 14(e) (part).)
       Sec.6902.207.ADDITIONAL SECURITY. (a)  Bonds not payable
wholly from ad valorem taxes may be additionally secured, at the
discretion of the board, by a deed of trust or mortgage lien on
physical property of the district, franchises, easements, water
rights and appropriation permits, leases, contracts, and all rights
appurtenant to the property, vesting in the trustee power to:
             (1)  sell the property for the payment of the debt;
             (2)  operate the property; and
             (3)  take other action to further secure the bonds.
       (b)  A purchaser under a sale under the deed of trust lien, if
one is given:
             (1)  is the absolute owner of property, facilities, and
rights purchased; and
             (2)  is entitled to maintain and operate the property
and facilities.  (Acts 69th Leg., R.S., Ch. 775, Secs. 16(a) (part),
(b), (d).)
       Sec.6902.208.TRUST INDENTURE. (a)  A bond issued under
this subchapter, including a refunding bond, that is not payable
wholly from property taxes may be additionally secured by a trust
indenture. The trustee may be a bank with trust powers located
inside or outside the state.
       (b)  A trust indenture, regardless of the existence of the
deed of trust or mortgage lien on the property, may:
             (1)  provide for the security of the bonds and the
preservation of the trust estate in the manner prescribed by the
board;
             (2)  provide for amendment or modification of the trust
indenture;
             (3)  provide for the issuance of bonds to replace lost
or mutilated bonds;
             (4)  condition the right to spend district money or
sell district property on the approval of a licensed engineer
selected as provided by this chapter; and
             (5)  provide for the investment of district money.
(Acts 69th Leg., R.S., Ch. 775, Secs. 16(a), (c).)
       Sec.6902.209.CHARGES FOR DISTRICT SERVICES. (a)  If bonds
payable wholly from revenue are issued, the board shall set the
rates of compensation for water sold and services provided by the
district. The rates must be sufficient to:
             (1)  pay the expense of operating and maintaining
district facilities;
             (2)  pay the principal of and interest on the bonds when
due; and
             (3)  maintain the reserve fund and other funds as
provided in the resolution authorizing the bonds.
       (b)  If bonds payable partly from revenue are issued, the
board shall set the rate of compensation for water sold and any
other services provided by the district. The rate must be
sufficient to ensure compliance with the resolution authorizing the
bonds or the trust indenture securing the bonds. (Acts 69th Leg.,
R.S., Ch. 775, Sec. 14(f).)
       Sec.6902.210.USE OF BOND PROCEEDS.  (a)  The district may
set aside and use an amount of proceeds from the sale of bonds
issued under this subchapter for:
             (1)  the payment of interest expected to accrue during
construction not to exceed three years;
             (2)  a reserve interest and sinking fund; and
             (3)  other funds provided by the resolution authorizing
the bonds or in the trust indenture.
       (b)  The district may use proceeds from the sale of the bonds
to pay any expense necessarily incurred in accomplishing the
purpose of the district, including any expense of issuing and
selling the bonds.  (Acts 69th Leg., R.S., Ch. 775, Sec. 14(g).)
       Sec.6902.211.APPOINTMENT OF RECEIVER.  (a)  On default or
threatened default in the payment of principal of or interest on
bonds issued under this subchapter that are payable wholly or
partly from revenue, a court may, on petition of the holders of
outstanding bonds, appoint a receiver for the district.
       (b)  The receiver may collect and receive all district
income, except taxes, employ and discharge district agents and
employees, take charge of money on hand, except money received from
taxes, unless commingled, and manage the proprietary affairs of the
district without the consent of the board.
       (c)  The receiver may be authorized to sell or contract for
the sale of water or renew those contracts with the approval of the
court that appointed the receiver.
       (d)  The court may vest the receiver with any other power or
duty the court finds necessary to protect the bondholders.  (Acts
69th Leg., R.S., Ch. 775, Sec. 14(h) (part).)
       Sec.6902.212.LIMITATION ON RIGHTS OF HOLDERS.  The
resolution authorizing the bonds or the trust indenture securing
the bonds may limit or qualify the rights of the holders of less
than all of the outstanding bonds payable from the same source to
institute or prosecute litigation affecting the district's
property or income.  (Acts 69th Leg., R.S., Ch. 775, Sec. 14(h)
(part).)
       Sec.6902.213.BONDS EXEMPT FROM TAXATION. A bond issued
under this chapter, the transfer of the bond, and income from the
bond, including profits made on the sale of the bond, are exempt
from taxation in this state. (Acts 69th Leg., R.S., Ch. 775, Sec.
23 (part).)
       Sec. 6902.214.  EXCLUSION OF TERRITORY AFTER ISSUANCE OF
BONDS. Territory may not be excluded from the district after the
issuance of bonds. (Acts 69th Leg., R.S., Ch. 775, Sec. 17(b).)
[Sections 6902.215-6902.250 reserved for expansion]
SUBCHAPTER F. REFUNDING BONDS
       Sec. 6902.251.  AUTHORITY TO ISSUE REFUNDING BONDS;
APPLICABILITY OF LAW RELATING TO OTHER BONDS.  (a) The district may
issue refunding bonds to refund outstanding bonds issued under this
chapter and interest on those bonds.
       (b)  The provisions of this chapter relating to the issuance
by the district of other bonds, their security, their approval by
the attorney general, and the remedies of the bondholders apply to
refunding bonds.
       (c)  An election is not required for refunding bonds.
       (d)  The district may also issue refunding bonds under any
other applicable law.  (Acts 69th Leg., R.S., Ch. 775, Secs. 15(a),
(c), (e) (part).)
       Sec.6902.252.TERMS OF ISSUANCE OF REFUNDING BONDS.
Refunding bonds may:
             (1)  be issued to refund bonds of more than one series;
             (2)  combine the pledges for the outstanding bonds for
the security of the refunding bonds; or
             (3)  be secured by a pledge of other or additional
revenue or mortgage liens.  (Acts 69th Leg., R.S., Ch. 775, Sec.
15(b).)
       Sec. 6902.253.  REGISTRATION OF REFUNDING BONDS BY
COMPTROLLER.  (a)  The comptroller shall register the refunding
bonds on the surrender and cancellation of the bonds to be refunded.
       (b)  Instead of issuing bonds to be registered on the
surrender and cancellation of the bonds to be refunded, the
district, in the resolution authorizing the issuance of the
refunding bonds, may provide for the sale of the refunding bonds and
the deposit of the proceeds, together with other money that may be
available, in a bank at which the bonds to be refunded are payable.
In that case, the refunding bonds may be issued in an amount
sufficient to pay the principal of and interest and any required
redemption premium on the bonds to be refunded to any redemption
date or to their maturity date, and the comptroller shall register
the refunding bonds without the surrender and cancellation of the
bonds to be refunded.
       (c)  The provisions described by Subsection (b) constitute
the making of firm banking arrangements for the discharge and final
payment or redemption of the bonds to be refunded or to be paid or
redeemed. (Acts 69th Leg., R.S., Ch. 775, Sec. 15(d).)
       Sec.6902.254.ESCROW AGREEMENT.  (a)  The district may
enter into an escrow or similar agreement with any place of payment,
paying agent, or trustee with respect to the safekeeping,
investment, administration, and disposition of a deposit made under
Section 6902.253(b).
       (b)  A deposit under Section 6902.253(b) may be invested only
in direct obligations of the United States, including obligations
the principal of and interest on which are unconditionally
guaranteed by the United States, that mature and bear interest
payable at the times and in amounts sufficient to provide for the
scheduled payment or redemption of the bonds to be refunded.  The
obligations may be in book-entry form.
       (c)  The district must enter into an agreement under
Subsection (a) if a bond to be refunded is scheduled to be paid or
redeemed on a date later than the next scheduled interest payment
date.  (Acts 69th Leg., R.S., Ch. 775, Sec. 15(e) (part).)
CHAPTER 6903.  EASTLAND COUNTY WATER SUPPLY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 6903.001.  DEFINITIONS
Sec. 6903.002.  NATURE OF DISTRICT
Sec. 6903.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
[Sections 6903.004-6903.050 reserved for expansion]
SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS TO DISTRICT
TERRITORY
Sec. 6903.051.  DISTRICT TERRITORY
Sec. 6903.052.  AUTHORITY TO ANNEX TERRITORY
Sec. 6903.053.  PETITION FOR ANNEXATION; BOARD FINDINGS
                 AND RESOLUTION
Sec. 6903.054.  COMMISSIONERS COURT RESOLUTION; HEARING
Sec. 6903.055.  ANNEXATION HEARING
Sec. 6903.056.  COMMISSIONERS COURT FINDINGS AND
                 RESOLUTION; ELECTION
Sec. 6903.057.  NOTICE OF ANNEXATION ELECTION
Sec. 6903.058.  ELECTION RESULTS
Sec. 6903.059.  ASSUMPTION OF DEBT; TAXES
Sec. 6903.060.  RESTRICTION ON ANNEXATION OF RAILROAD
                 RIGHT-OF-WAY
[Sections 6903.061-6903.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 6903.101.  COMPOSITION OF BOARD; TERMS
Sec. 6903.102.  QUALIFICATIONS FOR OFFICE
Sec. 6903.103.  LOCATION AND NOTICE FOR DIRECTORS
                 ELECTION; RESULTS
Sec. 6903.104.  BALLOT PROCEDURE FOR CANDIDATES
Sec. 6903.105.  APPOINTMENT OF SECRETARY AND TREASURER
Sec. 6903.106.  VOTE BY BOARD PRESIDENT
Sec. 6903.107.  DIRECTOR'S AND TREASURER'S BOND
Sec. 6903.108.  COMPENSATION
[Sections 6903.109-6903.150 reserved for expansion]
SUBCHAPTER D. GENERAL POWERS AND DUTIES
Sec. 6903.151.  CONSTRUCTION OF DAM
Sec. 6903.152.  UNDERGROUND SOURCES OF WATER
Sec. 6903.153.  CONSTRUCTION OR ACQUISITION OF PROPERTY
Sec. 6903.154.  WATER APPROPRIATION PERMITS
Sec. 6903.155.  PURCHASE OF WATER
Sec. 6903.156.  SURPLUS PROPERTY
Sec. 6903.157.  EMINENT DOMAIN
Sec. 6903.158.  PARKS AND RECREATION FACILITIES
Sec. 6903.159.  CONSTRUCTION CONTRACTS
Sec. 6903.160.  CONTRACTS TO SUPPLY WATER
Sec. 6903.161.  CONTRACTS FOR TOLL BRIDGES OR FERRY
                 SERVICE
[Sections 6903.162-6903.200 reserved for expansion]
SUBCHAPTER E. REGULATORY POWERS
Sec. 6903.201.  ADOPTION OF RULES
Sec. 6903.202.  ENFORCEMENT OF RULES; PENALTY
Sec. 6903.203.  NOTICE OF RULE PROVIDING PENALTY
Sec. 6903.204.  JUDICIAL NOTICE OF RULES
Sec. 6903.205.  ENFORCEMENT BY PEACE OFFICERS
[Sections 6903.206-6903.250 reserved for expansion]
SUBCHAPTER F. GENERAL FINANCIAL PROVISIONS
Sec. 6903.251.  DEPOSITORY
Sec. 6903.252.  TAX ASSESSOR AND COLLECTOR
Sec. 6903.253.  PROJECTS EXEMPT FROM ASSESSMENT OR
                 TAXATION
[Sections 6903.254-6903.300 reserved for expansion]
SUBCHAPTER G. BONDS
Sec. 6903.301.  AUTHORITY TO ISSUE BONDS
Sec. 6903.302.  FORM OF BONDS
Sec. 6903.303.  MATURITY
Sec. 6903.304.  ELECTION FOR BONDS PAYABLE FROM AD
                 VALOREM TAXES
Sec. 6903.305.  BONDS PAYABLE FROM REVENUE
Sec. 6903.306.  BONDS PAYABLE FROM AD VALOREM TAXES
Sec. 6903.307.  TAX AND RATE REQUIREMENTS
Sec. 6903.308.  ADDITIONAL SECURITY
Sec. 6903.309.  USE OF BOND PROCEEDS
Sec. 6903.310.  APPOINTMENT OF RECEIVER
Sec. 6903.311.  REFUNDING BONDS
Sec. 6903.312.  BONDS EXEMPT FROM TAXATION
CHAPTER 6903.  EASTLAND COUNTY WATER SUPPLY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.6903.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Commissioners court" means the Commissioners
Court of Eastland County.
             (3)  "Director" means a member of the board.
             (4)  "District" means the Eastland County Water Supply
District. (Acts 51st Leg., R.S., Ch. 465, Sec. 1 (part); New.)
       Sec.6903.002.NATURE OF DISTRICT. The district is created
under Section 59, Article XVI, Texas Constitution. (Acts 51st
Leg., R.S., Ch. 465, Sec. 1 (part).)
       Sec.6903.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
All land in the district will benefit from the improvement to be
acquired and constructed by the district.
       (b)  The accomplishment of the purposes stated in this
chapter is for the benefit of the people of this state and for the
improvement of their property and industries.  The district, in
carrying out the purposes of this chapter, will be performing an
essential public function under the Texas Constitution.  (Acts 51st
Leg., R.S., Ch. 465, Secs. 2 (part), 19 (part).)
[Sections 6903.004-6903.050 reserved for expansion]
SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS TO DISTRICT
TERRITORY
       Sec.6903.051.DISTRICT TERRITORY. The district is
composed of the territory in the city of Ranger on May 26, 1949, and
the territory in the city of Eastland that was added to the district
before June 8, 1953.  The district's territory may have been
modified under:
             (1)  this subchapter or its predecessor statute,
Section 5, Chapter 465, Acts of the 51st Legislature, Regular
Session, 1949;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law. (Acts 51st Leg., R.S., Ch. 465, Secs. 2
(part), 3(a) (part); New.)
       Sec.6903.052.AUTHORITY TO ANNEX TERRITORY. Territory,
whether contiguous to the district or not, and inside or outside
Eastland County, may be annexed to the district in the manner
provided by this subchapter. (Acts 51st Leg., R.S., Ch. 465, Sec. 5
(part).)
       Sec. 6903.053.  PETITION FOR ANNEXATION; BOARD FINDINGS AND
RESOLUTION. (a)  The board may annex territory under this
subchapter if a petition requesting annexation is signed by 50
registered voters of the territory to be annexed who own taxable
property in that territory, or a majority of the registered voters
of that territory who own taxable property in that territory, and is
filed with the board.  The petition must describe the territory to
be annexed by metes and bounds, or otherwise, except that if the
territory is the same as that contained in a municipality, the
petition is sufficient if it states that the territory to be annexed
is the territory contained in the municipality.
       (b)  If the board determines that the petition complies with
Subsection (a), that the annexation would be in the interest of the
district, and that the district will be able to supply water to the
territory, the board shall adopt a resolution:
             (1)  stating the conditions, if any, under which the
territory may be annexed to the district; and
             (2)  requesting the commissioners court to annex the
territory to the district.
       (c)  A certified copy of the resolution and petition shall be
filed with the commissioners court. (Acts 51st Leg., R.S., Ch. 465,
Secs. 5(a), (b).)
       Sec.6903.054.COMMISSIONERS COURT RESOLUTION; HEARING.
The commissioners court shall:
             (1)  adopt a resolution declaring its intention to call
an election in the territory to submit the proposition of whether
the territory is to be annexed to the district; and
             (2)  set a time and place to hold a commissioners court
hearing on the question of whether the territory to be annexed will
benefit from the improvements, works, and facilities then owned or
operated or contemplated to be owned or operated by the district.
(Acts 51st Leg., R.S., Ch. 465, Sec. 5(c) (part).)
       Sec.6903.055.ANNEXATION HEARING. (a)  At least 10 days
before the date of the annexation hearing, notice of the adoption of
the resolution stating the time and place of the hearing and
addressed to the citizens and owners of property in the territory to
be annexed shall be published one time in a newspaper designated by
the commissioners court.  The notice must describe the territory in
the same manner in which Section 6903.053(a) requires the petition
to describe the territory.
       (b)  If a newspaper is not published in the territory to be
annexed, the notice shall be posted in three public places in the
territory.
       (c)  Any interested person may appear at the hearing and
offer evidence for or against the annexation.
       (d)  The hearing may proceed in the order and under the rules
prescribed by the commissioners court and may be recessed from time
to time. (Acts 51st Leg., R.S., Ch. 465, Secs. 5(d), (e) (part),
(k).)
       Sec. 6903.056.  COMMISSIONERS COURT FINDINGS AND
RESOLUTION; ELECTION. If, at the conclusion of the annexation
hearing, the commissioners court finds that all land in the
territory to be annexed will benefit from the present or
contemplated improvements, works, or facilities of the district,
the court shall adopt a resolution that:
             (1)  calls an election in the territory to be annexed;
and
             (2)  states the date of the election and the place or
places of holding the election. (Acts 51st Leg., R.S., Ch. 465,
Sec. 5(e) (part).)
       Sec.6903.057.NOTICE OF ANNEXATION ELECTION. In addition
to complying with Section 4.004, Election Code, notice of the
annexation election must:
             (1)  state the conditions under which the territory may
be annexed; or
             (2)  refer to the resolution of the board for that
purpose. (Acts 51st Leg., R.S., Ch. 465, Sec. 5(f) (part).)
       Sec.6903.058.ELECTION RESULTS. (a)  The commissioners
court shall issue an order declaring the results of the annexation
election.
       (b)  If the order shows that a majority of the votes cast are
in favor of annexation, the commissioners court shall annex the
proposed territory to the district.  The annexation is
incontestable except within the time for contesting elections under
the general election law.
       (c)  A certified copy of the order shall be recorded in the
deed records of the county in which the territory is located. (Acts
51st Leg., R.S., Ch. 465, Sec. 5(h) (part).)
       Sec.6903.059.ASSUMPTION OF DEBT; TAXES. (a)  In calling
the election on the proposition for annexation of territory, the
commissioners court may include, as a part of the same proposition,
a proposition for:
             (1)  the territory to assume its part of the
tax-supported bonds of the district then outstanding and those
bonds previously voted but not yet sold; and
             (2)  an ad valorem tax to be imposed on taxable property
in the territory along with the tax in the rest of the district for
the payment of the bonds.
       (b)  After territory is annexed to the district, the board
may hold an election in the district as enlarged to determine
whether the district as enlarged shall assume any tax-supported
bonds then outstanding and those previously voted but not yet sold
and impose an ad valorem tax on all taxable property in the district
as enlarged to pay the bonds, unless the proposition is submitted as
provided by Subsection (a) and becomes binding on the territory
annexed.
       (c)  An election held under Subsection (b) shall be held in
the same manner as an election under this chapter for the issuance
of bonds. (Acts 51st Leg., R.S., Ch. 465, Secs. 5(i), (j).)
       Sec. 6903.060.  RESTRICTION ON ANNEXATION OF RAILROAD
RIGHT-OF-WAY. (a)  A railroad right-of-way may not be annexed to
the district unless the right-of-way is contained in the limits of a
municipality annexed at the same time or previously annexed to the
district.
       (b)  A railroad right-of-way that is not in the defined
limits of a municipality will not benefit from improvements, works,
and facilities the district is authorized to construct. (Acts 51st
Leg., R.S., Ch. 465, Sec. 5(c) (part).)
[Sections 6903.061-6903.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS
       Sec.6903.101.COMPOSITION OF BOARD; TERMS. (a)  The board
consists of eight directors.
       (b)  Voters of the city of Ranger who reside in the district
elect four directors.  Voters of the city of Eastland who reside in
the district elect four directors.
       (c)  Directors serve staggered terms, with the terms of two
directors elected from each city expiring at the same time. (Acts
51st Leg., R.S., Ch. 465, Secs. 3(a) (part), (c) (part), (d)
(part).)
       Sec.6903.102.QUALIFICATIONS FOR OFFICE. (a)  A director
must reside in the municipality from which elected and own taxable
property in the district.
       (b)  A member of a municipality's governing body or an
employee of a municipality may not be a director. (Acts 51st Leg.,
R.S., Ch. 465, Secs. 3(a) (part), (c) (part).)
       Sec. 6903.103.  LOCATION AND NOTICE FOR DIRECTORS ELECTION;
RESULTS. (a)  For a regular directors election, there shall be at
least one voting place in each municipality in the district.
       (b)  Notice of a directors election shall be published in a
newspaper published in each municipality in the district one time
not later than the 10th day before the date of the election.
       (c)  The board shall adopt a resolution declaring the
election results. (Acts 51st Leg., R.S., Ch. 465, Sec. 3(d)
(part).)
       Sec.6903.104.BALLOT PROCEDURE FOR CANDIDATES. (a)  A
person who wants to have the person's name printed on the ballot as
a candidate for director must present a petition requesting that
action.
       (b)  The petition must be:
             (1)  signed by at least 50 residents of the district who
are registered to vote at the election; and
             (2)  presented to the board's secretary not later than
the 16th day before the date of the election. (Acts 51st Leg.,
R.S., Ch. 465, Sec. 3(e).)
       Sec.6903.105.APPOINTMENT OF SECRETARY AND TREASURER. The
board shall appoint a secretary and a treasurer, who are not
required to be directors.  The board may combine the offices of
secretary and treasurer. (Acts 51st Leg., R.S., Ch. 465, Sec. 4
(part).)
       Sec.6903.106.VOTE BY BOARD PRESIDENT. The president has
the same right to vote as any other director. (Acts 51st Leg.,
R.S., Ch. 465, Sec. 4 (part).)
       Sec.6903.107.DIRECTOR'S AND TREASURER'S BOND. (a)  Each
director shall give bond in the amount of $5,000 conditioned on the
faithful performance of the director's duties.
       (b)  The treasurer shall give bond in the amount required by
the board.  The treasurer's bond shall be conditioned on the
treasurer's faithful accounting for all money that comes into the
treasurer's custody as treasurer of the district. (Acts 51st Leg.,
R.S., Ch. 465, Secs. 3(a) (part), 4 (part).)
       Sec.6903.108.COMPENSATION. Unless the board by
resolution increases the fee to an amount authorized by Section
49.060, Water Code, each director:
             (1)  shall receive a fee of $5 for attending each board
meeting; and
             (2)  is also entitled to receive $5 for each day devoted
to the business of the district if the service is expressly approved
by the board. (Acts 51st Leg., R.S., Ch. 465, Sec. 3(g) (part);
New.)
[Sections 6903.109-6903.150 reserved for expansion]
SUBCHAPTER D. GENERAL POWERS AND DUTIES
       Sec.6903.151.CONSTRUCTION OF DAM. (a)  The district may
impound storm and flood waters and the unappropriated flow waters
at one or more places and in an amount approved by the Texas
Commission on Environmental Quality by constructing one or more
dams inside or outside the district.  In exercising its powers under
this subsection, the district shall comply with Subchapters A-D,
Chapter 11, and Subchapter B, Chapter 12, Water Code.
       (b)  A dam or other works for the impounding of water from a
river under this section may not be constructed until the plans for
the dam or other works are approved by the Texas Commission on
Environmental Quality. (Acts 51st Leg., R.S., Ch. 465, Sec. 6
(part).)
       Sec.6903.152.UNDERGROUND SOURCES OF WATER. The district
may develop or otherwise acquire underground sources of water.
(Acts 51st Leg., R.S., Ch. 465, Sec. 6 (part).)
       Sec.6903.153.CONSTRUCTION OR ACQUISITION OF PROPERTY.
The district may construct or otherwise acquire all works, plants,
and other facilities necessary or useful for the purpose of
processing water impounded, developed, or otherwise acquired and
transporting it to municipalities and others for municipal,
domestic, and industrial purposes. (Acts 51st Leg., R.S., Ch. 465,
Sec. 6 (part).)
       Sec.6903.154.WATER APPROPRIATION PERMITS. The district
may acquire water appropriation permits directly from the Texas
Commission on Environmental Quality or from owners of permits.
(Acts 51st Leg., R.S., Ch. 465, Sec. 16 (part).)
       Sec.6903.155.PURCHASE OF WATER. The district may
purchase water or a water supply from any person, including a public
agency. (Acts 51st Leg., R.S., Ch. 465, Sec. 16 (part).)
       Sec.6903.156.SURPLUS PROPERTY. The district may sell any
property that, in the opinion of the board, will not be needed for
the conduct of the affairs or business of the district. (Acts 51st
Leg., R.S., Ch. 465, Sec. 6 (part).)
       Sec.6903.157.EMINENT DOMAIN. (a)  To carry out a power
provided by this chapter, the district may exercise the power of
eminent domain to acquire land and easements inside or outside the
district, including land above the probable high water line around
the reservoirs.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code.
       (c)  The board shall determine the amount and the type of
interest in land and easements to be acquired under this section.
(Acts 51st Leg., R.S., Ch. 465, Sec. 7.)
       Sec.6903.158.PARKS AND RECREATION FACILITIES. (a)  The
district may establish or otherwise provide for public parks and
recreation facilities and may acquire land adjacent to any of its
reservoirs for those purposes.
       (b)  The district may not use money received from taxation or
from bonds payable wholly or partly from taxation for a purpose
described by Subsection (a). (Acts 51st Leg., R.S., Ch. 465, Sec.
22.)
       Sec.6903.159.CONSTRUCTION CONTRACTS. (a)  This section
applies only to a construction contract or a contract for the
purchase of material, equipment, or supplies requiring an
expenditure of more than $25,000.
       (b)  The district shall award a contract to the lowest and
best bidder after publishing notice to bidders once a week for two
weeks in a newspaper published in the district that is designated by
the board.
       (c)  The notice is sufficient if it states:
             (1)  the time and place for opening the bids;
             (2)  the general nature of the work to be done or the
material, equipment, or supplies to be purchased; and
             (3)  the place where and the terms on which copies of
the plans and specifications may be obtained. (Acts 51st Leg.,
R.S., Ch. 465, Sec. 8.)
       Sec.6903.160.CONTRACTS TO SUPPLY WATER. (a)  The district
may contract with municipalities and others to supply water to
those entities.
       (b)  The district may contract with a municipality for the
rental or leasing of or for the operation of the water production,
water supply, and water supply facilities of the municipality on
the consideration agreed to by the district and the municipality.
       (c)  The contract may be on terms and for the time agreed to
by the parties.
       (d)  The contract may provide that it will continue in effect
until bonds specified in it and refunding bonds issued in lieu of
the bonds are paid. (Acts 51st Leg., R.S., Ch. 465, Sec. 14.)
       Sec.6903.161.CONTRACTS FOR TOLL BRIDGES OR FERRY SERVICE.
(a)  The board may contract with a responsible person for:
             (1)  the construction and operation of a toll bridge
over the district's water; or
             (2)  ferry service on or over the district's water.
       (b)  The period of a contract under Subsection (a) may not
exceed:
             (1)  20 years under Subsection (a)(1); or
             (2)  10 years under Subsection (a)(2).
       (c)  The contract under Subsection (a) may:
             (1)  set reasonable compensation to be charged for
service by the facility;
             (2)  require from the contracting person an adequate
bond payable to the district in an amount and conditioned as the
board considers to be required; and
             (3)  provide for forfeiture of the particular franchise
if the license holder fails to render adequate public service.
(Acts 51st Leg., R.S., Ch. 465, Sec. 21(a) (part).)
[Sections 6903.162-6903.200 reserved for expansion]
SUBCHAPTER E. REGULATORY POWERS
       Sec.6903.201.ADOPTION OF RULES. The board may adopt
reasonable rules to:
             (1)  secure, maintain, and preserve the sanitary
condition of water in and water that flows into any reservoir owned
by the district;
             (2)  prevent waste of or the unauthorized use of water;
and
             (3)  regulate residence, hunting, fishing, boating,
camping, and any other recreational or business privilege along or
around any district reservoir and the stream leading into the
reservoir, and its tributaries, or any body of land, or easement
owned or controlled by the district. (Acts 51st Leg., R.S., Ch.
465, Sec. 21(a) (part).)
       Sec.6903.202.ENFORCEMENT OF RULES; PENALTY. (a)  The
district by rule may prescribe reasonable penalties for the
violation of a district rule.
       (b)  A penalty may consist of:
             (1)  a fine not to exceed $200;
             (2)  confinement in jail for a term not to exceed 30
days; or
             (3)  both the fine and confinement.
       (c)  A penalty adopted under this section is in addition to
any other penalty provided by Texas law. (Acts 51st Leg., R.S., Ch.
465, Sec. 21(b) (part).)
       Sec.6903.203.NOTICE OF RULE PROVIDING PENALTY. (a)  If
the district adopts a rule that provides a penalty, the district
must publish a substantive statement of the rule and the penalty
once a week for two consecutive weeks in Eastland County.
       (b)  The statement must be as condensed as possible so that
the act prohibited by the rule can be easily understood.
       (c)  The statement may include notice of any number of rules.
       (d)  The notice must state that:
             (1)  a person who violates the rule is subject to a
penalty; and
             (2)  the rule is on file in the principal office of the
district, where it may be read by any interested person.
       (e)  A rule takes effect five days after the date of the
second publication of the statement under this section. (Acts 51st
Leg., R.S., Ch. 465, Sec. 21(b) (part).)
       Sec.6903.204.JUDICIAL NOTICE OF RULES. A court shall take
judicial notice of a rule adopted under this subchapter and
published as required by Section 6903.203, and the court shall
consider the rule to be similar in nature to a penal ordinance of a
municipality. (Acts 51st Leg., R.S., Ch. 465, Sec. 21(b) (part).)
       Sec.6903.205.ENFORCEMENT BY PEACE OFFICERS. (a)  A peace
officer employed by the district or a county peace officer may make
an arrest when necessary to prevent or abate the commission of an
offense:
             (1)  in violation of a district rule or a law of this
state that occurs or threatens to occur on any land, water, or
easement owned or controlled by the district; or
             (2)  involving damage to any property owned or
controlled by the district.
       (b)  A peace officer described by Subsection (a) may make an
arrest under Subsection (a)(2) at any location. (Acts 51st Leg.,
R.S., Ch. 465, Sec. 21(c).)
[Sections 6903.206-6903.250 reserved for expansion]
SUBCHAPTER F. GENERAL FINANCIAL PROVISIONS
       Sec.6903.251.DEPOSITORY. (a)  Except as provided by
Subsection (i), the board shall designate one or more banks in the
district to serve as depository for the district's money.
       (b)  District money shall be deposited with a designated
depository bank or banks, except that:
             (1)  money pledged to pay bonds may be deposited with
the trustee bank named in the trust agreement; and
             (2)  money shall be remitted to the bank of payment for
the payment of principal of and interest on bonds.
       (c)  To the extent that money in a depository bank or a
trustee bank is not insured by the Federal Deposit Insurance
Corporation, the money must be secured in the manner provided by law
for the security of county funds.
       (d)  The board shall prescribe the terms of service for
depositories.
       (e)  Before designating a depository bank, the board shall
issue a notice that:
             (1)  states the time and place at which the board will
meet to designate a depository bank or banks; and
             (2)  invites the banks in the district to submit an
application to be designated as a depository.
       (f)  The notice must be published one time in a newspaper
published in the district and specified by the board.
       (g)  At the time stated in the notice, the board shall:
             (1)  consider the application and the management and
condition of each bank that applies; and
             (2)  designate as a depository the bank or banks that:
                   (A)  offer the most favorable terms for handling
the money; and
                   (B)  the board finds have proper management and
are in condition to handle the money.
       (h)  Membership on the board of an officer or director of a
bank does not disqualify the bank from being designated as a
depository.
       (i)  If the board does not receive any applications before
the time stated in the notice, or if the board rejects all
applications, the board shall designate one or more banks located
inside or outside the district on terms that the board finds
advantageous to the district. (Acts 51st Leg., R.S., Ch. 465, Sec.
15.)
       Sec.6903.252.TAX ASSESSOR AND COLLECTOR. The board shall
appoint a tax assessor and collector.  (Acts 51st Leg., R.S., Ch.
465, Sec. 20(b) (part).)
       Sec.6903.253.PROJECTS EXEMPT FROM ASSESSMENT OR TAXATION.
The district is not required to pay a tax or assessment on a project
or any part of a project. (Acts 51st Leg., R.S., Ch. 465, Sec. 19
(part).)
[Sections 6903.254-6903.300 reserved for expansion]
SUBCHAPTER G. BONDS
       Sec.6903.301.AUTHORITY TO ISSUE BONDS. (a)  The district
may issue bonds to:
             (1)  provide a source of water supply for
municipalities and other users for municipal, domestic, and
industrial purposes; or
             (2)  carry out any other power conferred by this
chapter.
       (b)  The bonds must be authorized by a board resolution.  
(Acts 51st Leg., R.S., Ch. 465, Secs. 9(a) (part), (b) (part), (c),
(e) (part).)
       Sec.6903.302.FORM OF BONDS. District bonds must be:
             (1)  issued in the district's name;
             (2)  signed by the president or vice president; and
             (3)  attested by the secretary. (Acts 51st Leg., R.S.,
Ch. 465, Sec. 9(b) (part).)
       Sec.6903.303.MATURITY. District bonds must mature not
later than 40 years after the date of their issuance. (Acts 51st
Leg., R.S., Ch. 465, Sec. 9(b) (part).)
       Sec. 6903.304.  ELECTION FOR BONDS PAYABLE FROM AD VALOREM
TAXES. (a)  Bonds, other than refunding bonds, payable wholly or
partly from ad valorem taxes may not be issued unless authorized by
a district election at which a majority of the votes cast in each
municipality in the district favor the bond issuance.
       (b)  The board may order an election under this section
without a petition. The order must specify:
             (1)  the time and places at which the election will be
held;
             (2)  the purpose for which the bonds will be issued;
             (3)  the maximum amount of the bonds;
             (4)  the maximum maturity of the bonds;
             (5)  the form of the ballot; and
             (6)  the presiding judge for each voting place.
       (c)  Notice of the election must be given by publishing a
substantial copy of the order calling the election in a newspaper
published in the district for two consecutive weeks. The first
publication must be not later than the 21st day before the date of
the election.  (Acts 51st Leg., R.S., Ch. 465, Secs. 12(a) (part),
(b).)
       Sec.6903.305.BONDS PAYABLE FROM REVENUE. (a)  In this
section, "net revenue" means the gross revenue of the district less
the amount necessary to pay the cost of maintaining and operating
the district and its property.
       (b)  Bonds issued under this subchapter may be secured under
board resolution by a pledge of:
             (1)  all or part of the district's net revenue;
             (2)  the net revenue of one or more contracts made
before or after the issuance of the bonds; or
             (3)  other revenue specified by board resolution.
       (c)  The pledge may reserve the right to issue additional
bonds on a parity with or subordinate to the bonds being issued,
subject to conditions specified by the pledge.
       (d)  Bonds not payable wholly or partly from ad valorem taxes
may be issued without an election.  (Acts 51st Leg., R.S., Ch. 465,
Secs. 9(a) (part), (d), 12(a) (part).)
       Sec.6903.306.BONDS PAYABLE FROM AD VALOREM TAXES.  The
district may issue bonds payable from:
             (1)  ad valorem taxes imposed on taxable property in
the district; or
             (2)  ad valorem taxes and revenue of the district.  
(Acts 51st Leg., R.S., Ch. 465, Sec. 9(e) (part).)
       Sec.6903.307.TAX AND RATE REQUIREMENTS. (a) If the
district issues bonds payable wholly or partly from ad valorem
taxes, the board shall impose a tax sufficient to pay the bonds and
the interest on the bonds as the bonds and interest become due. The
board may adopt the rate of the tax after considering the money
received from the pledged revenue available for payment of
principal and interest to the extent and in the manner permitted by
the resolution authorizing the issuance of the bonds.
       (b)  If the district issues bonds payable wholly or partly
from revenue, the board shall set and revise the rates of
compensation for water sold and services rendered by the district.
       (c)  For bonds payable wholly from revenue, the rates of
compensation must be sufficient to:
             (1)  pay the expense of operating and maintaining the
facilities of the district;
             (2)  pay the bonds as they mature and the interest as it
accrues; and
             (3)  maintain the reserve and other funds as provided
by the resolution authorizing the issuance of the bonds.
       (d)  For bonds payable partly from revenue, the rates of
compensation must be sufficient to assure compliance with the
resolution authorizing the issuance of the bonds.  (Acts 51st Leg.,
R.S., Ch. 465, Secs. 9(e) (part), (f).)
       Sec.6903.308.ADDITIONAL SECURITY. (a)  Bonds, including
refunding bonds, authorized by this subchapter that are not payable
wholly from ad valorem taxes may be additionally secured by a deed
of trust lien on physical property of the district and all
franchises, easements, water rights and appropriation permits,
leases, contracts, and all rights appurtenant to the property,
vesting in the trustee power to:
             (1)  sell the property for payment of the debt;
             (2)  operate the property; and
             (3)  take other action to further secure the bonds.
       (b)  The deed of trust may:
             (1)  contain any provision the board prescribes to
secure the bonds and preserve the trust estate;
             (2)  provide for amendment or modification of the deed
of trust; and
             (3)  provide for the issuance of bonds to replace lost
or mutilated bonds.
       (c)  A purchaser under a sale under the deed of trust:
             (1)  is the owner of the dam or dams and the other
property, including facilities, purchased; and
             (2)  is entitled to maintain and operate the property,
including facilities. (Acts 51st Leg., R.S., Ch. 465, Sec. 11.)
       Sec.6903.309.USE OF BOND PROCEEDS. (a)  The district may
set aside an amount of proceeds from the sale of bonds issued under
this subchapter for the payment of interest expected to accrue
during construction and a reserve interest and sinking fund.  The
resolution authorizing the bonds may provide for setting aside and
using the proceeds.
       (b)  The district may use proceeds from the sale of the bonds
to pay any expense necessarily incurred in accomplishing the
purposes of the district. (Acts 51st Leg., R.S., Ch. 465, Sec.
9(g).)
       Sec.6903.310.APPOINTMENT OF RECEIVER. (a)  On default or
threatened default in the payment of principal of or interest on
bonds issued under this subchapter that are payable wholly or
partly from revenue, a court may, on petition of the holders of 25
percent of the outstanding bonds of the issue in default or
threatened with default, appoint a receiver for the district.
       (b)  The receiver may collect and receive all district income
except taxes, employ and discharge district agents and employees,
take charge of money on hand, except money received from taxes,
unless commingled, and manage the district's proprietary affairs
without consent or hindrance by the board.
       (c)  The receiver may be authorized to sell or contract for
the sale of water or to renew those contracts with the approval of
the court that appointed the receiver.
       (d)  The court may vest the receiver with any other power or
duty the court finds necessary to protect the bondholders. (Acts
51st Leg., R.S., Ch. 465, Sec. 9(h).)
       Sec.6903.311.REFUNDING BONDS. (a)  The district may issue
refunding bonds to refund outstanding bonds issued under this
subchapter and interest on those bonds.
       (b)  Refunding bonds may:
             (1)  be issued to refund bonds of more than one series;
             (2)  combine the pledges for the outstanding bonds for
the security of the refunding bonds; or
             (3)  be secured by a pledge of other or additional
revenue.
       (c)  The provisions of this subchapter regarding the
issuance of other bonds and the remedies of the holders apply to
refunding bonds.
       (d)  The comptroller shall register the refunding bonds on
surrender and cancellation of the bonds to be refunded.
       (e)  Instead of issuing bonds to be registered on the
surrender and cancellation of the bonds to be refunded, the
district, in the resolution authorizing the issuance of the
refunding bonds, may provide for the sale of the refunding bonds and
the deposit of the proceeds in a bank at which the bonds to be
refunded are payable. In that case, the refunding bonds may be
issued in an amount sufficient to pay the interest on the bonds to
be refunded to their option date or maturity date, and the
comptroller shall register the refunding bonds without the
surrender and cancellation of the bonds to be refunded. (Acts 51st
Leg., R.S., Ch. 465, Sec. 10.)
       Sec.6903.312.BONDS EXEMPT FROM TAXATION. A bond issued
under this subchapter, the transfer of the bond, and income from the
bond, including profits made on the sale of the bond, are exempt
from taxation in this state. (Acts 51st Leg., R.S., Ch. 465, Sec.
19 (part).)
CHAPTER 6904. AQUILLA WATER SUPPLY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 6904.001.  DEFINITIONS 
Sec. 6904.002.  NATURE OF DISTRICT 
Sec. 6904.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE 
[Sections 6904.004-6904.050 reserved for expansion]
SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS TO DISTRICT
TERRITORY
Sec. 6904.051.  DISTRICT TERRITORY 
Sec. 6904.052.  ANNEXATION OF TERRITORY 
Sec. 6904.053.  ANNEXATION OF TERRITORY ANNEXED TO
                 MUNICIPALITY IN DISTRICT 
[Sections 6904.054-6904.100 reserved for expansion]
SUBCHAPTER C.  BOARD OF DIRECTORS
Sec. 6904.101.  COMPOSITION OF BOARD 
Sec. 6904.102.  QUALIFICATIONS FOR OFFICE 
Sec. 6904.103.  DIRECTORS' ELECTION 
Sec. 6904.104.  REMOVAL FROM OFFICE 
Sec. 6904.105.  BOARD RESOLUTIONS; VOTING REQUIREMENTS 
Sec. 6904.106.  OFFICERS AND ASSISTANTS 
Sec. 6904.107.  OFFICER DUTIES 
Sec. 6904.108.  MEETINGS 
Sec. 6904.109.  PERSONAL LIABILITY OF DIRECTORS 
[Sections 6904.110-6904.150 reserved for expansion]
SUBCHAPTER D. POWERS AND DUTIES
Sec. 6904.151.  DISTRICT POWERS 
Sec. 6904.152.  PERMITS 
Sec. 6904.153.  GENERAL AUTHORITY OF PUBLIC AGENCIES
                 AND POLITICAL SUBDIVISIONS TO
                 CONTRACT WITH DISTRICT 
Sec. 6904.154.  CONTRACTS TO SUPPLY WATER 
Sec. 6904.155.  SOURCES FOR WATER; ACQUISITION OF LAND;
                 STORAGE CAPACITY 
Sec. 6904.156.  CONSTRUCTION CONTRACTS 
Sec. 6904.157.  CONVEYANCE OF LAND TO DISTRICT 
Sec. 6904.158.  DISPOSAL OF PROPERTY 
Sec. 6904.159.  EMINENT DOMAIN 
Sec. 6904.160.  COST OF RELOCATING OR ALTERING PROPERTY 
Sec. 6904.161.  RIGHTS-OF-WAY; EASEMENTS 
Sec. 6904.162.  ELECTIONS 
[Sections 6904.163-6904.200 reserved for expansion]
SUBCHAPTER E.  GENERAL FINANCIAL PROVISIONS
Sec. 6904.201.  IMPOSITION OF TAX 
Sec. 6904.202.  DEPOSITORY 
Sec. 6904.203.  INVESTMENT OF DISTRICT MONEY 
Sec. 6904.204.  DISTRICT FACILITIES EXEMPT FROM
                 TAXATION AND ASSESSMENT 
[Sections 6904.205-6904.250 reserved for expansion]
SUBCHAPTER F. BONDS
Sec. 6904.251.  AUTHORITY TO ISSUE BONDS 
Sec. 6904.252.  FORM OF BONDS 
Sec. 6904.253.  MATURITY 
Sec. 6904.254.  ELECTION FOR BONDS PAYABLE FROM AD
                 VALOREM TAXES 
Sec. 6904.255.  BONDS SECURED BY REVENUE; ADDITIONAL
                 BONDS 
Sec. 6904.256.  BONDS PAYABLE FROM AD VALOREM TAXES 
Sec. 6904.257.  ADDITIONAL SECURITY 
Sec. 6904.258.  TRUST INDENTURE 
Sec. 6904.259.  CHARGES FOR DISTRICT SERVICES 
Sec. 6904.260.  USE OF BOND PROCEEDS 
Sec. 6904.261.  APPOINTMENT OF RECEIVER 
Sec. 6904.262.  REFUNDING BONDS 
Sec. 6904.263.  LIMITATION ON RIGHTS OF HOLDERS 
Sec. 6904.264.  BONDS EXEMPT FROM TAXATION 
Sec. 6904.265.  DETACHMENT OF DISTRICT TERRITORY AFTER
                 ISSUANCE OF BONDS 
CHAPTER 6904. AQUILLA WATER SUPPLY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.6904.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Aquilla Water Supply
District. (Acts 65th Leg., R.S., Ch. 713, Secs. 1 (part), 3(a)
(part); New.)
       Sec.6904.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district created under Section 59,
Article XVI, Texas Constitution. (Acts 65th Leg., R.S., Ch. 713,
Sec. 1 (part).)
       Sec.6904.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
All land and taxable property in the city of Hillsboro will benefit
from the works and improvements of the district.
       (b)  The accomplishment of the purposes stated in this
chapter is for the benefit of the people of this state for the
improvement of their property and industries. The district, in
carrying out the purposes of this chapter, will be performing an
essential public function under the constitution.  (Acts 65th Leg.,
R.S., Ch. 713, Secs. 2 (part), 22 (part).)
[Sections 6904.004-6904.050 reserved for expansion]
SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS TO DISTRICT
TERRITORY
       Sec.6904.051.DISTRICT TERRITORY. (a)  The boundaries of
the district are coextensive with the boundaries of the city of
Hillsboro as those boundaries existed on January 1, 1977, and as the
district territory may have been modified under:
             (1)  Sections 6904.052 and 6904.053 or their
predecessor statute, Section 6, Chapter 713, Acts of the 65th
Legislature, Regular Session, 1977;
             (2)  Subchapter J, Chapter 49, Water Code;
             (3)  Subchapter O, Chapter 51, Water Code, before
September 1, 1995; or
             (4)  other law.
       (b)  An invalidity in the fixing of the boundaries of the
city of Hillsboro as they existed on January 1, 1977, does not
affect the boundaries of the district. (Acts 65th Leg., R.S., Ch.
713, Sec. 2 (part); New.)
       Sec.6904.052.ANNEXATION OF TERRITORY. (a)  Territory may
be annexed to the district as provided by this section or by Section
6904.053.
       (b)  The board may annex territory or a municipality under
this section only if a petition requesting annexation is signed by
50 voters of the territory or municipality to be annexed, or a
majority of the registered voters of that territory or
municipality, whichever is fewer, and is filed with the board.  The
petition must describe the territory to be annexed by metes and
bounds, or otherwise, except that if the territory is the same as
that contained in the boundaries of a municipality, the petition is
sufficient if it states that the territory to be annexed is the
territory contained in the municipal boundaries.
       (c)  If the board determines that the petition complies with
Subsection (b), that the annexation would be in the best interest of
the territory or municipality and the district, and that the
district will be able to supply water or other services to the
territory or municipality, the board shall:
             (1)  adopt a resolution stating the conditions, if any,
under which the territory or municipality may be annexed to the
district; and
             (2)  set a time and place to hold a hearing on the
question of whether the territory or municipality to be annexed
will benefit from:
                   (A)  the improvements, works, or facilities owned
or operated or contemplated to be owned or operated by the district;
or
                   (B)  the other functions of the district.
       (d)  At least 10 days before the date of the hearing, notice
of the adoption of the resolution stating the time and place of the
hearing shall be published one time in a newspaper of general
circulation in the territory or municipality to be annexed. The
notice must describe the territory in the same manner in which
Subsection (b) requires the petition to describe the territory.
       (e)  Any interested person may appear at the hearing and
offer evidence for or against the annexation.
       (f)  The hearing may proceed in the order and under the rules
prescribed by the board and may be recessed from time to time.
       (g)  If, at the conclusion of the hearing, the board finds
that the property in the territory or municipality will benefit
from the present or contemplated improvements, works, or facilities
of the district, the board shall adopt a resolution making a finding
of the benefit and calling an election in the territory or
municipality to be annexed.
       (h)  In calling an election on the proposition for annexation
of the territory or municipality, the board may include, as part of
the same proposition or as a separate proposition, a proposition
for:
             (1)  the territory to assume its part of the
tax-supported bonds of the district then outstanding and those
bonds previously voted but not yet sold; and
             (2)  an ad valorem tax to be imposed on taxable property
on the territory along with the tax in the rest of the district for
the payment of the bonds.
       (i)  If a majority of the votes cast at the election are in
favor of annexation, the board by resolution shall annex the
territory to the district.
       (j)  An annexation under this section is incontestable
except in the manner and within the time for contesting elections
under the Election Code. (Acts 65th Leg., R.S., Ch. 713, Secs. 6(f),
(g), (h), (i).)
       Sec. 6904.053.  ANNEXATION OF TERRITORY ANNEXED TO
MUNICIPALITY IN DISTRICT. (a)  At any time after final passage of
an ordinance or resolution annexing territory to a municipality in
the district, the board may give notice of a hearing on the question
of annexing that territory to the district. The notice is
sufficient if it:
             (1)  states the date and place of the hearing; and
             (2)  describes the area proposed to be annexed or
refers to the annexation ordinance or resolution of the
municipality.
       (b)  The notice must be published one time in a newspaper of
general circulation in the municipality not later than the 10th day
before the date set for the hearing.
       (c)  If, as a result of the hearing, the board finds that the
territory will benefit from the present or contemplated
improvements, works, or facilities of the district, the board shall
adopt a resolution annexing the territory to the district.
       (d)  After the territory is annexed to the district, the
board may call an election in the entire district to determine
whether:
             (1)  the entire district will assume any tax-supported
bonds then outstanding and those bonds previously voted but not yet
sold; and
             (2)  an ad valorem tax for the payment of the bonds will
be imposed on all taxable property in the district. (Acts 65th Leg.,
R.S., Ch. 713, Secs. 6(a), (b), (c), (d), (e).)
[Sections 6904.054-6904.100 reserved for expansion]
SUBCHAPTER C.  BOARD OF DIRECTORS
       Sec.6904.101.COMPOSITION OF BOARD. (a)  The district is
governed by a board of at least five directors. The directors
occupy numbered places on the board.
       (b)  For each municipality annexed to the district under
Section 6904.052, two places are added to the board, except that the
number of directors may not exceed 11.
       (c)  Not more than five directors may reside in the corporate
limits of the city of Hillsboro. (Acts 65th Leg., R.S., Ch. 713,
Sec. 3(a) (part).)
       Sec.6904.102.QUALIFICATIONS FOR OFFICE. (a)  To be
eligible to serve as a director, a person must be:
             (1)  a qualified district voter; and
             (2)  a district resident.
       (b)  A director is eligible for reelection. (Acts 65th Leg.,
R.S., Ch. 713, Secs. 3(a) (part), (b).)
       Sec.6904.103.DIRECTORS' ELECTION. Directors shall be
elected at an election called for that purpose by the board. (Acts
65th Leg., R.S., Ch. 713, Sec. 3(a) (part).)
       Sec.6904.104.REMOVAL FROM OFFICE. After reasonable
notice and a public hearing, the board may remove a director from
office for misfeasance, malfeasance, or wilful neglect of duty.
Reasonable notice and a public hearing are not required if the
director to be removed expressly waives the notice and hearing in
writing. (Acts 65th Leg., R.S., Ch. 713, Sec. 3(c).)
       Sec.6904.105.BOARD RESOLUTIONS; VOTING REQUIREMENTS. (a)  
The district shall act through resolutions adopted by the board.
       (b)  All directors are entitled to vote.
       (c)  The affirmative vote of a majority of the quorum present
is necessary to adopt a resolution. (Acts 65th Leg., R.S., Ch. 713,
Sec. 4(c).)
       Sec.6904.106.OFFICERS AND ASSISTANTS. (a)  The board
shall elect a president, vice president, secretary, and treasurer
at the first meeting of the newly constituted board after each
directors' election or at any time necessary to fill a vacancy.
       (b)  The board shall elect the president and vice president
from among the directors.
       (c)  The offices of secretary and treasurer:
             (1)  may be held by one person; and
             (2)  are not required to be held by a director.
       (d)  The board may appoint as assistant board secretary one
or more persons who are not directors.  (Acts 65th Leg., R.S., Ch.
713, Secs. 4(b) (part), (d) (part).)
       Sec.6904.107.OFFICER DUTIES. (a)  The board president
shall preside at board meetings and perform other duties prescribed
by the board.
       (b)  The board secretary is the official custodian of the
minutes, books, records, and seal of the board and shall perform
other duties and functions prescribed by the board.  An assistant
board secretary may perform any duty or function of the board
secretary.
       (c)  The board treasurer shall perform duties and functions
prescribed by the board. (Acts 65th Leg., R.S., Ch. 713, Sec. 4(b)
(part).)
       Sec.6904.108.MEETINGS. The board shall have regular
meetings at times specified by board resolution and shall have
special meetings when called by the board president or by any two
directors. (Acts 65th Leg., R.S., Ch. 713, Sec. 4(e).)
       Sec.6904.109.PERSONAL LIABILITY OF DIRECTORS. A director
is not personally liable for any bond issued or contract executed by
the district. (Acts 65th Leg., R.S., Ch. 713, Sec. 4(f).)
[Sections 6904.110-6904.150 reserved for expansion]
SUBCHAPTER D. POWERS AND DUTIES
       Sec.6904.151.DISTRICT POWERS. The district may exercise
any power necessary or appropriate to achieve the purposes of this
chapter, including the power to:
             (1)  sue and be sued, and plead and be impleaded, in its
own name;
             (2)  adopt an official seal;
             (3)  adopt and enforce bylaws and rules for the conduct
of its affairs;
             (4)  acquire, hold, use, and dispose of its receipts
and money from any source;
             (5)  acquire, own, rent, lease, accept, hold, or
dispose of property, or an interest in property, including a right
or easement, by purchase, exchange, gift, assignment,
condemnation, sale, lease, or otherwise, in performing district
duties or exercising district powers under this chapter;
             (6)  hold, manage, operate, or improve property;
             (7)  lease or rent any land, building, structure, or
facility from or to any person;
             (8)  sell, assign, lease, encumber, mortgage, or
otherwise dispose of property, or an interest in property, and
release or relinquish a right, title, claim, lien, interest,
easement, or demand, regardless of the manner in which acquired,
and conduct a transaction authorized by this subdivision by public
or private sale, with or without public bidding, notwithstanding
any other law;
             (9)  issue bonds, provide for and secure the payment of
the bonds, and provide for the rights of the holders of the bonds in
the manner and to the extent authorized by this chapter;
             (10)  request and accept an appropriation, grant,
allocation, subsidy, guarantee, aid, service, material, or gift
from any source, including the federal government, the state, a
public agency, or a political subdivision;
             (11)  operate and maintain an office;
             (12)  appoint and determine the duties, tenure,
qualifications, and compensation of district officers and
employees, as well as any agent, professional advisor, or
counselor, including any financial consultant, accountant,
attorney, architect, engineer, appraiser, or financing expert,
considered necessary or advisable by the board; and
             (13)  exercise any power granted by Chapter 30, Water
Code, to water districts created under Section 59, Article XVI,
Texas Constitution. (Acts 65th Leg., R.S., Ch. 713, Sec. 5 (part).)
       Sec.6904.152.PERMITS. (a)  The district may obtain
through appropriate proceedings permits from the Texas Commission
on Environmental Quality.
       (b)  The district may acquire water appropriation permits
from owners of permits by contract or otherwise. (Acts 65th Leg.,
R.S., Ch. 713, Sec. 7 (part).)
       Sec. 6904.153.  GENERAL AUTHORITY OF PUBLIC AGENCIES AND
POLITICAL SUBDIVISIONS TO CONTRACT WITH DISTRICT.  A public agency
or political subdivision of this state may enter into a contract or
agreement with the district, on terms agreed to by the parties, for
any purpose relating to the district's powers or functions.
Approval, notice, consent, or an election is not required in
connection with a contract or agreement. (Acts 65th Leg., R.S., Ch.
713, Sec. 8(b) (part).)
       Sec.6904.154.CONTRACTS TO SUPPLY WATER. (a)  The district
may contract with public agencies, political subdivisions, and
others to supply water.  The district may sell water inside and
outside the boundaries of the district.
       (b)  The district may contract with a public agency or
political subdivision for the rental or leasing of or for the
operation of the water production, water supply, water filtration
or purification, and water supply facilities of the entity on the
consideration agreed to by the district and the entity.
       (c)  A contract may be on terms and for the time agreed to by
the parties.
       (d)  A contract may provide that it will continue in effect
until bonds specified in it and refunding bonds issued in lieu of
the bonds are paid.
       (e)  The district may contract with the City of Hillsboro for
the operation of the district's water facilities by the city. An
election is not required in connection with this contract. (Acts
65th Leg., R.S., Ch. 713, Secs. 8(a) (part), (b) (part), 18 (part).)
       Sec. 6904.155.  SOURCES FOR WATER; ACQUISITION OF LAND;
STORAGE CAPACITY. (a)  The district may acquire, construct, or
develop inside or outside the district sources for water, including
reservoirs or wells, and any work, plant, transmission line, or
other facility necessary or useful to develop, divert, impound,
store, drill for, pump, treat, or transport water, including
underground water, to the City of Hillsboro and others for
municipal, domestic, industrial, mining, oil flooding, or any other
useful purpose.
       (b)  The district may acquire land, or an interest in land,
inside or outside the district for any work, plant, or other
facility necessary or useful to divert, impound, store, drill for,
pump, treat, or transport water for municipal, domestic,
industrial, mining, oil flooding, or any other useful purpose.
       (c)  The district may lease, purchase, or otherwise acquire
rights in and to storage and storage capacity in any reservoir
constructed or to be constructed by any person or from the United
States. (Acts 65th Leg., R.S., Ch. 713, Secs. 7 (part), 8(a)
(part), 9 (part).)
       Sec.6904.156.CONSTRUCTION CONTRACTS. (a)  The district
may award a construction contract that requires an expenditure of
more than $5,000 only after publication of notice to bidders once
each week for two weeks in a newspaper of general circulation in the
district.
       (b)  The notice is sufficient if it states:
             (1)  the time and place for opening the bids;
             (2)  the general nature of the work to be done;
             (3)  the material, equipment, or supplies to be
purchased; and
             (4)  where the terms of bidding and copies of the plans
and specifications may be obtained. (Acts 65th Leg., R.S., Ch. 713,
Sec. 11.)
       Sec.6904.157.CONVEYANCE OF LAND TO DISTRICT. A public
agency or political subdivision of this state may lease, sell, or
otherwise convey its land or an interest in its land to the district
for any consideration that the parties agree is adequate.
Approval, notice, consent, or an election is not required in
connection with a conveyance, contract, or agreement.  (Acts 65th
Leg., R.S., Ch. 713, Sec. 8(b) (part).)
       Sec.6904.158.DISPOSAL OF PROPERTY. Subject to the terms
of a resolution or deed of trust authorizing or securing bonds
issued by the district, the district may sell, lease, rent, trade,
or otherwise dispose of property under terms considered by the
board to be consistent with district purposes. (Acts 65th Leg.,
R.S., Ch. 713, Sec. 9 (part).)
       Sec.6904.159.EMINENT DOMAIN.  (a)  To carry out a power
provided by this chapter, the district may exercise the power of
eminent domain to acquire the fee simple title to land, or any other
interest in land, and other property and easements, inside or
outside the district, including land or an interest in land needed
for:
             (1)  a well; or
             (2)  a reservoir, dam, or flood easement above the
probable high-water line around a reservoir.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code.
       (c)  The district is a municipal corporation for the purposes
of Chapter 21, Property Code.
       (d)  The board shall determine the amount and the type of
interest in land, other property, or easements to be acquired under
this section. (Acts 65th Leg., R.S., Ch. 713, Sec. 10(a) (part).)
       Sec.6904.160.COST OF RELOCATING OR ALTERING PROPERTY.  
(a)  In this section, "sole expense" means the actual cost of the
lowering, rerouting, or change in grade or alteration of
construction required under Subsection (b) to provide a comparable
replacement without enhancing the facility, after deducting the net
salvage value derived from the old facility.
       (b)  If the district's exercise of its eminent domain,
police, or other power requires relocating, raising, lowering,
rerouting, changing the grade of, or altering the construction of
any railroad, electric, transmission, telegraph, or telephone
line, conduit, pole, property, facility, or pipeline, the action
shall be accomplished at the sole expense of the district.  (Acts
65th Leg., R.S., Ch. 713, Sec. 10(c).)
       Sec.6904.161.RIGHTS-OF-WAY; EASEMENTS. The district has
all necessary or useful rights-of-way and easements along, over,
under, and across all public, state, municipal, and county roads,
highways, and places for any of its purposes. The district shall
restore a facility used to its previous condition as nearly as
possible at the sole expense of the district. (Acts 65th Leg., R.S.,
Ch. 713, Sec. 10(b).)
       Sec.6904.162.ELECTIONS. (a)  The board shall call an
election required to be held under this chapter by adopting a
resolution stating:
             (1)  the date of the election;
             (2)  each place where the election will be held; and
             (3)  the proposition or propositions to be voted on.
       (b)  The board shall give notice of an election by publishing
a substantial copy of the resolution calling the election one time
not less than 10 days before the date set for the election in:
             (1)  a newspaper of general circulation in the
district; and
             (2)  a newspaper of general circulation in the
territory, if the election is on the question of annexation of
territory.
       (c)  The board shall adopt a resolution declaring the results
of the election.
       (d)  The board may combine one or more elections required to
be held by this chapter, including a maintenance tax and bond
election.  (Acts 65th Leg., R.S., Ch. 713, Secs. 12(c), 21 (part).)
[Sections 6904.163-6904.200 reserved for expansion]
SUBCHAPTER E.  GENERAL FINANCIAL PROVISIONS
       Sec.6904.201.IMPOSITION OF TAX. (a) The district may
impose a tax, not to exceed 25 cents on each $100 valuation of
taxable property in the district, for:
             (1)  maintenance purposes, including money for
planning, maintaining, repairing, and operating all necessary
plants, works, facilities, improvements, appliances, and equipment
of the district;
             (2)  paying costs of proper services, engineering, and
legal fees; and
             (3)  organization and administrative expenses.
       (b)  The district may not impose a maintenance tax unless the
tax is approved by a majority of the voters voting at an election
held for that purpose.  (Acts 65th Leg., R.S., Ch. 713, Secs. 12(a),
(b).)
       Sec.6904.202.DEPOSITORY.  (a)  The board shall designate
one or more banks inside or outside the district to serve as the
depository for the district's money.
       (b)  District money shall be deposited in the depository
designated by the board, except that:
             (1)  bond proceeds and money pledged to pay bonds, to
the extent provided in a resolution or trust indenture authorizing
or securing district bonds, may be deposited with another bank or
trustee named in the bond resolution or trust indenture; and
             (2)  money shall be remitted to each paying agent for
the payment of principal of and interest on the bonds.
       (c)  To the extent that money in a depository bank or the
trustee bank is not insured by the Federal Deposit Insurance
Corporation, the money must be secured in the manner provided by law
for the security of municipal money. (Acts 65th Leg., R.S., Ch.
713, Sec. 19 (part).)
       Sec.6904.203.INVESTMENT OF DISTRICT MONEY. The board may
invest district money in obligations and make time deposits of
district money in a manner determined by the board or in the manner
permitted or required in a resolution or trust indenture
authorizing or securing district bonds.  (Acts 65th Leg., R.S., Ch.
713, Sec. 19 (part).)
       Sec. 6904.204.  DISTRICT FACILITIES EXEMPT FROM TAXATION AND
ASSESSMENT. The district is not required to pay a tax or assessment
on its facilities or any part of its facilities. (Acts 65th Leg.,
R.S., Ch. 713, Sec. 22 (part).)
[Sections 6904.205-6904.250 reserved for expansion]
SUBCHAPTER F. BONDS
       Sec.6904.251.AUTHORITY TO ISSUE BONDS. (a)  The district
may issue bonds to carry out any power conferred by this chapter.
The bonds must be authorized by a board resolution.
       (b)  The bonds may be payable from and secured by revenue or
ad valorem taxes, or both revenue and ad valorem taxes, of the
district, in the manner and under the terms of the resolution
authorizing the issuance of the bonds. (Acts 65th Leg., R.S., Ch.
713, Secs. 13(a), (b) (part), (c), (e) (part).)
       Sec.6904.252.FORM OF BONDS. District bonds must be:
             (1)  issued in the district's name;
             (2)  signed by the president or vice president; and
             (3)  attested by the secretary.  (Acts 65th Leg., R.S.,
Ch. 713, Sec. 13(b) (part).)
       Sec.6904.253.MATURITY. District bonds must mature not
later than 40 years after the date of their issuance.  (Acts 65th
Leg., R.S., Ch. 713, Sec. 13(b) (part).)
       Sec. 6904.254.  ELECTION FOR BONDS PAYABLE FROM AD VALOREM
TAXES. (a)  Bonds, other than refunding bonds, payable wholly or
partly from ad valorem taxes may not be issued unless authorized by
a majority of the district voters voting at an election.
       (b)  The board may issue bonds not payable wholly or partly
from ad valorem taxes without an election. (Acts 65th Leg., R.S.,
Ch. 713, Sec. 16(a) (part).)
       Sec.6904.255.BONDS SECURED BY REVENUE; ADDITIONAL BONDS.
(a)  Bonds issued under this subchapter may be secured by a pledge
of all or part of the district's revenue, or by all or part of the
revenue of one or more contracts or other revenue or income
specified by board resolution or a trust indenture securing the
bonds.  The pledge may reserve the right, under conditions
specified by the pledge, to issue additional bonds that will be on a
parity with or subordinate to the bonds then being issued.
       (b)  The district may issue bonds secured by both taxes and
revenue of the district described by Subsection (a).  (Acts 65th
Leg., R.S., Ch. 713, Secs. 13(d), (e) (part).)
       Sec.6904.256.BONDS PAYABLE FROM AD VALOREM TAXES.  (a)  If
bonds are issued payable wholly or partly from ad valorem taxes, the
board shall annually impose a tax on the taxable property in the
district in an amount sufficient to pay the principal of and
interest on the bonds when due.
       (b)  The district may adopt the rate of a tax imposed under
Subsection (a) after giving consideration to the money received
from the pledged revenue that may be available for payment of
principal and interest, to the extent and in the manner permitted by
the resolution authorizing the issuance of the bonds. (Acts 65th
Leg., R.S., Ch. 713, Secs. 13(e) (part), 23(b) (part).)
       Sec.6904.257.ADDITIONAL SECURITY. (a)  Bonds, including
refunding bonds, authorized by this subchapter that are not payable
wholly from ad valorem taxes may be additionally secured, at the
discretion of the board, by a deed of trust or mortgage lien on
physical property of the district, franchises, easements, water
rights and appropriation permits, leases, contracts, and all rights
appurtenant to the property, vesting in the trustee power to:
             (1)  sell the property for the payment of the debt;
             (2)  operate the property; and
             (3)  take other action to further secure the bonds.
       (b)  A purchaser under a sale under the deed of trust lien, if
one is given:
             (1)  is the absolute owner of property, facilities, and
rights purchased; and
             (2)  is entitled to maintain and operate the property,
facilities, and rights.  (Acts 65th Leg., R.S., Ch. 713, Sec. 15
(part).)
       Sec.6904.258.TRUST INDENTURE. (a)  A bond issued under
this subchapter, including a refunding bond, that is not payable
wholly from ad valorem taxes may be additionally secured by a trust
indenture. The trustee may be a bank with trust powers located
inside or outside the state.
       (b)  A trust indenture, regardless of the existence of the
deed of trust or mortgage lien on the property, may:
             (1)  provide for the security of the bonds and the
preservation of the trust estate in the manner prescribed by the
board;
             (2)  provide for amendment or modification of the trust
indenture;
             (3)  provide for the issuance of bonds to replace lost
or mutilated bonds;
             (4)  condition the right to spend district money or
sell district property on the approval of a licensed engineer
selected as provided by the trust indenture; and
             (5)  provide for the investment of district money.
(Acts 65th Leg., R.S., Ch. 713, Sec. 15 (part).)
       Sec.6904.259.CHARGES FOR DISTRICT SERVICES. (a)  If
district bonds payable wholly from revenue are issued, the board
shall set and revise the rates of compensation for water sold and
services provided by the district. The rates must be sufficient to:
             (1)  pay the expense of operating and maintaining
district facilities;
             (2)  pay the principal of and interest on the bonds when
due; and
             (3)  maintain the reserve fund and other funds as
provided in the resolution authorizing the bonds.
       (b)  If bonds payable partly from revenue are issued, the
board shall set the rate of compensation for water sold and any
other services provided by the district. The rate must be
sufficient to ensure compliance with the resolution authorizing the
bonds or the trust indenture securing the bonds. (Acts 65th Leg.,
R.S., Ch. 713, Sec. 13(f).)
       Sec.6904.260.USE OF BOND PROCEEDS. (a)  The district may
set aside an amount of proceeds from the sale of bonds issued under
this subchapter for:
             (1)  the payment of interest expected to accrue during
construction not to exceed three years;
             (2)  a debt service reserve fund; and
             (3)  other funds as may be provided in the resolution
authorizing the bonds or in the trust indenture.
       (b)  The district may use proceeds from the sale of the bonds
to pay any expense necessarily incurred in accomplishing the
purpose of the district, including any expense of issuing and
selling the bonds.  (Acts 65th Leg., R.S., Ch. 713, Sec. 13(g).)
       Sec.6904.261.APPOINTMENT OF RECEIVER. (a)  On default or
a threatened default in the payment of principal of or interest on
bonds issued under this subchapter that are payable wholly or
partly from revenue, a court may, on petition of the holders of
outstanding bonds, appoint a receiver for the district.
       (b)  The receiver may collect and receive all district
income, except taxes, employ and discharge district agents and
employees, take charge of money on hand, except money received from
taxes, unless commingled, and manage the proprietary affairs of the
district without consent or hindrance by the board.
       (c)  The receiver may be authorized to sell or contract for
the sale of water or to renew those contracts with the approval of
the court that appointed the receiver.
       (d)  The court may vest the receiver with any other power or
duty the court finds necessary to protect the bondholders.  (Acts
65th Leg., R.S., Ch. 713, Sec. 13(h) (part).)
       Sec.6904.262.REFUNDING BONDS.  (a)  The district may issue
refunding bonds to refund outstanding bonds issued under this
subchapter and interest on those bonds.
       (b)  Refunding bonds may:
             (1)  be issued to refund bonds of more than one series;
             (2)  combine the pledges for the outstanding bonds for
the security of the refunding bonds; or
             (3)  be secured by a pledge of other or additional
revenue or mortgage liens.
       (c)  The provisions of this subchapter regarding the
issuance of other bonds, their security, and the remedies of the
holders apply to refunding bonds.
       (d)  The comptroller shall register the refunding bonds on
surrender and cancellation of the bonds to be refunded.
       (e)  Instead of issuing bonds to be registered on the
surrender and cancellation of the bonds to be refunded, the
district, in the resolution authorizing the issuance of the
refunding bonds, may provide for the sale of the refunding bonds and
the deposit of the proceeds in a bank at which the bonds to be
refunded are payable. In that case, the refunding bonds may be
issued in an amount sufficient to pay the principal of and interest
and any required redemption premium on the bonds to be refunded to
any redemption date or to their maturity date, and the comptroller
shall register the refunding bonds without the surrender and
cancellation of the bonds to be refunded.
       (f)  An election is not required for refunding bonds.
       (g)  The district may also issue refunding bonds under any
other applicable law.  (Acts 65th Leg., R.S., Ch. 713, Sec. 14.)
       Sec.6904.263.LIMITATION ON RIGHTS OF HOLDERS.  The
resolution authorizing the bonds or the trust indenture securing
the bonds may limit or qualify the rights of the holders of less
than all of the outstanding bonds payable from the same source to
institute or prosecute litigation affecting the district's
property or income.  (Acts 65th Leg., R.S., Ch. 713, Sec. 13(h)
(part).)
       Sec.6904.264.BONDS EXEMPT FROM TAXATION. A bond issued
under this subchapter, the transfer of the bond, and income from the
bond, including profits made on the sale of the bond, are exempt
from taxation in this state.  (Acts 65th Leg., R.S., Ch. 713, Sec.
22 (part).)
       Sec. 6904.265.  DETACHMENT OF DISTRICT TERRITORY AFTER
ISSUANCE OF BONDS. Territory may not be detached from the district
after the issuance of bonds payable from revenue or taxes.  (Acts
65th Leg., R.S., Ch. 713, Sec. 16(a) (part).)
CHAPTER 6905.  BEEVILLE WATER SUPPLY DISTRICT
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 6905.001.  DEFINITIONS
Sec. 6905.002.  NATURE OF DISTRICT
Sec. 6905.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
[Sections 6905.004-6905.050 reserved for expansion]
SUBCHAPTER B. DISTRICT TERRITORY; ANNEXATION
Sec. 6905.051.  DISTRICT TERRITORY
Sec. 6905.052.  CITY OF BEEVILLE ANNEXATIONS
Sec. 6905.053.  ANNEXATION BY PETITION
[Sections 6905.054-6905.100 reserved for expansion]
SUBCHAPTER C.  BOARD OF DIRECTORS
Sec. 6905.101.  COMPOSITION OF BOARD; TERMS
Sec. 6905.102.  REMOVAL FROM OFFICE
Sec. 6905.103.  BOARD RESOLUTIONS; VOTING REQUIREMENTS
Sec. 6905.104.  OFFICERS AND ASSISTANTS
Sec. 6905.105.  MEETINGS
Sec. 6905.106.  PERSONAL LIABILITY OF DIRECTORS
[Sections 6905.107-6905.150 reserved for expansion]
SUBCHAPTER D. POWERS AND DUTIES
Sec. 6905.151.  GENERAL POWERS
Sec. 6905.152.  BYLAWS AND RULES
Sec. 6905.153.  REGIONAL WASTE DISPOSAL
Sec. 6905.154.  PERMITS
Sec. 6905.155.  PROPERTY ACQUISITION, USE, AND
                 DISPOSITION
Sec. 6905.156.  REQUESTS FOR AND ACCEPTANCE OF AID
Sec. 6905.157.  DISTRICT OFFICE
Sec. 6905.158.  PERSONNEL
Sec. 6905.159.  GENERAL MANAGER
Sec. 6905.160.  GENERAL AUTHORITY OF PUBLIC AGENCIES
                 AND POLITICAL SUBDIVISIONS TO
                 CONTRACT WITH DISTRICT
Sec. 6905.161.  CONTRACTS TO SUPPLY WATER
Sec. 6905.162.  SOURCES FOR WATER; ACQUISITION OF LAND;
                 STORAGE CAPACITY
Sec. 6905.163.  CONSTRUCTION CONTRACTS
Sec. 6905.164.  CONVEYANCE OF LAND TO DISTRICT
Sec. 6905.165.  SURPLUS PROPERTY
Sec. 6905.166.  EMINENT DOMAIN
Sec. 6905.167.  COST OF RELOCATING OR ALTERING PROPERTY
Sec. 6905.168.  RIGHTS-OF-WAY; EASEMENTS
Sec. 6905.169.  DISTRICT SEAL
[Sections 6905.170-6905.200 reserved for expansion]
SUBCHAPTER E.  GENERAL FINANCIAL PROVISIONS
Sec. 6905.201.  DISTRICT MONEY
Sec. 6905.202.  DEPOSITORY
Sec. 6905.203.  INVESTMENT OF DISTRICT MONEY
Sec. 6905.204.  DISTRICT FACILITIES EXEMPT FROM
                 TAXATION AND ASSESSMENT
[Sections 6905.205-6905.250 reserved for expansion]
SUBCHAPTER F. BONDS
Sec. 6905.251.  AUTHORITY TO ISSUE BONDS
Sec. 6905.252.  FORM OF BONDS
Sec. 6905.253.  MATURITY
Sec. 6905.254.  ELECTION FOR BONDS PAYABLE FROM AD
                 VALOREM TAXES
Sec. 6905.255.  BONDS SECURED BY REVENUE; ADDITIONAL
                 BONDS
Sec. 6905.256.  BONDS PAYABLE FROM AD VALOREM TAXES
Sec. 6905.257.  ADDITIONAL SECURITY
Sec. 6905.258.  TRUST INDENTURE
Sec. 6905.259.  DEANNEXATION OF DISTRICT TERRITORY
                 AFTER ISSUANCE OF BONDS
Sec. 6905.260.  CHARGES FOR DISTRICT SERVICES
Sec. 6905.261.  USE OF BOND PROCEEDS
Sec. 6905.262.  APPOINTMENT OF RECEIVER
Sec. 6905.263.  REFUNDING BONDS
Sec. 6905.264.  LIMITATION ON RIGHTS OF HOLDERS
Sec. 6905.265.  BONDS EXEMPT FROM TAXATION
CHAPTER 6905.  BEEVILLE WATER SUPPLY DISTRICT
SUBCHAPTER A.  GENERAL PROVISIONS
       Sec.6905.001.DEFINITIONS.  In this chapter:
             (1)  "Board" means the district's board of directors.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Beeville Water Supply
District.  (Acts 66th Leg., R.S., Ch. 432, Secs. 1 (part), 4(a)
(part).)
       Sec.6905.002.NATURE OF DISTRICT.  The district is a
conservation and reclamation district created under Section 59,
Article XVI, Texas Constitution.  (Acts 66th Leg., R.S., Ch. 432,
Sec. 1 (part).)
       Sec.6905.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property in the district will benefit
from the works and projects to be accomplished by the district under
powers conferred by Section 59, Article XVI, Texas Constitution.
       (c)  The accomplishment of the purposes stated in this
chapter will benefit the people of this state and improve their
property and industries.
       (d)  The district, in carrying out the purposes of this
chapter, will be performing an essential public function under the
constitution of this state.  (Acts 66th Leg., R.S., Ch. 432, Secs.
3, 22 (part).)
[Sections 6905.004-6905.050 reserved for expansion]
SUBCHAPTER B. DISTRICT TERRITORY; ANNEXATION
       Sec.6905.051.DISTRICT TERRITORY.  The district boundaries
are coterminous with the boundaries of the City of Beeville as those
boundaries existed on June 6, 1979, and as the district territory
may have been modified under:
             (1)  this subchapter or its predecessor statutes,
Sections 2 and 8, Chapter 432, Acts of the 66th Legislature, Regular
Session, 1979;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.  (Acts 66th Leg., R.S., Ch. 432, Sec.
2(a) (part); New.)
       Sec.6905.052.CITY OF BEEVILLE ANNEXATIONS.  If the City of
Beeville annexes territory, the board may consider whether the new
territory should also be added to the district and may:
             (1)  add the territory by a majority vote of the board
without following the annexation procedures under Section
6905.053; or
             (2)  reject the addition of the new territory. (Acts
66th Leg., R.S., Ch. 432, Sec. 2(b).)
       Sec.6905.053.ANNEXATION BY PETITION. (a)  The district
may annex territory in the manner provided by this section.
       (b)  The board may annex territory or a municipality under
this section only if a petition requesting annexation is signed by
50 voters of the territory or municipality to be annexed, or a
majority of the registered voters of that territory or
municipality, whichever is fewer, and is filed with the board.  The
petition must describe the territory to be annexed by metes and
bounds, or otherwise, except that if the territory is the same as
that contained in the boundaries of a municipality, the petition is
sufficient if it states that the territory to be annexed is the
territory contained in the municipal boundaries.
       (c)  If the board determines that the petition complies with
Subsection (b), that the annexation would be in the best interest of
the territory or municipality and the district, and that the
district will be able to supply water to the territory or
municipality, the board shall:
             (1)  adopt a resolution stating the conditions, if any,
under which the territory or municipality may be annexed to the
district; and
             (2)  set a time and place to hold a hearing on the
question of whether the territory or municipality to be annexed
will benefit from:
                   (A)  the improvements, works, or facilities owned
or operated or contemplated to be owned or operated by the district;
or
                   (B)  the other functions of the district.
       (d)  At least 10 days before the date of the hearing, notice
of the adoption of the resolution stating the time and place of the
hearing shall be published one time in a newspaper of general
circulation in the territory or municipality to be annexed. The
notice must describe the territory in the same manner in which
Subsection (b) requires the petition to describe the territory.
       (e)  Any interested person may appear at the hearing and
offer evidence for or against the annexation.
       (f)  The hearing may proceed in the order and under the rules
prescribed by the board and may be recessed from time to time.
       (g)  If, at the conclusion of the hearing, the board finds
that the property in the territory or municipality will benefit
from the present or contemplated improvements, works, or facilities
of the district, the board shall adopt a resolution making a finding
of the benefit and calling an election in the territory or
municipality proposed to be annexed.
       (h)  The resolution must state:
             (1)  the date of the election;
             (2)  each place where the election will be held; and
             (3)  the proposition to be voted on.
       (i)  At least 10 days before the date set for the election,
notice of the election shall be given by publishing a substantial
copy of the resolution calling the election one time in a newspaper
of general circulation in the territory proposed to be annexed.
       (j)  In calling an election on the proposition for annexation
of the territory or municipality, the board may include, as part of
the same proposition or as a separate proposition, a proposition
for:
             (1)  the territory or municipality to assume its part
of the tax-supported bonds of the district then outstanding and
those bonds previously voted but not yet sold; and
             (2)  an ad valorem tax to be imposed on taxable property
on the territory or municipality along with the tax in the rest of
the district for the payment of the bonds.
       (k)  If a majority of the votes cast at the election are in
favor of annexation, the board by resolution shall annex the
territory or municipality to the district.
       (l)  The board is not required to call an election if:
             (1)  a petition requesting annexation is signed by all
residents and landowners of the territory to be annexed, the same as
provided by law for conveyance of real property; and
             (2)  the petition:
                   (A)  states that the petitioners approve their
share of the outstanding bonds or other obligations, and the
unissued bonds, if any, of the district, and authorizes the board to
set tax rates sufficient to pay their share of the debt; and
                   (B)  is filed in the office of the county clerk of
the county in which the district is located.
       (m)  An annexation under this section is incontestable
except in the manner and within the time for contesting elections
under the Election Code.  (Acts 66th Leg., R.S., Ch. 432, Secs. 2(a)
(part), 8(a), (b), (c) (part), (d) (part), (e) (part), (f).)
[Sections 6905.054-6905.100 reserved for expansion]
SUBCHAPTER C.  BOARD OF DIRECTORS
       Sec.6905.101.COMPOSITION OF BOARD; TERMS.  (a)  The
district is governed by a board of five elected directors.  
Directors occupy numbered places on the board.
       (b)  A director is eligible for reelection to the board.
       (c)  Directors serve staggered terms.  (Acts 66th Leg., R.S.,
Ch. 432, Sec. 4(a) (part).)
       Sec.6905.102.REMOVAL FROM OFFICE. After reasonable
notice and a public hearing, the board may remove a director from
office for misfeasance, malfeasance, or wilful neglect of duty.
Reasonable notice and a public hearing are not required if the
director to be removed expressly waives the notice and hearing in
writing. (Acts 66th Leg., R.S., Ch. 432, Sec. 4(b).)
       Sec.6905.103.BOARD RESOLUTIONS; VOTING REQUIREMENTS.  (a)  
The district shall act through resolutions adopted by the board.
       (b)  Each director has a vote.
       (c)  The affirmative vote of at least three directors is
necessary to adopt any resolution. (Acts 66th Leg., R.S., Ch. 432,
Sec. 5(c) (part).)
       Sec.6905.104.OFFICERS AND ASSISTANTS.  (a)  The board
president shall:
             (1)  serve a one-year term; and
             (2)  perform duties prescribed by the board.
       (b)  The board secretary shall:
             (1)  be the official custodian of the board seal; and
             (2)  perform other duties and functions prescribed by
the board.
       (c)  The board shall elect a treasurer who shall perform
duties and functions prescribed by the board.
       (d)  One person may hold the offices of secretary and
treasurer. The secretary and treasurer are not required to be
directors.
       (e)  The board may appoint one or more persons who are not
directors to be an assistant board secretary.  An assistant
secretary may perform any duty or function of the board secretary.
       (f)  The board shall elect officers annually or at any time
necessary to fill a vacancy.  (Acts 66th Leg., R.S., Ch. 432, Secs.
5(b) (part), (d) (part).)
       Sec.6905.105.MEETINGS. The board shall have regular
meetings at times specified by board resolution and shall have
special meetings when called by the board president or by any three
directors.  (Acts 66th Leg., R.S., Ch. 432, Sec. 5(e).)
       Sec.6905.106.PERSONAL LIABILITY OF DIRECTORS. A director
is not personally liable for any bond issued or contract executed by
the district.  (Acts 66th Leg., R.S., Ch. 432, Sec. 5(f).)
[Sections 6905.107-6905.150 reserved for expansion]
SUBCHAPTER D. POWERS AND DUTIES
       Sec.6905.151.GENERAL POWERS.  The district may exercise
any power necessary or appropriate to achieve the purposes of this
chapter.  (Acts 66th Leg., R.S., Ch. 432, Sec. 6(a).)
       Sec.6905.152.BYLAWS AND RULES.  The district may adopt and
enforce bylaws and rules for the conduct of its affairs. (Acts 66th
Leg., R.S., Ch. 432, Sec. 6(c) (part).)
       Sec.6905.153.REGIONAL WASTE DISPOSAL. (a) The district
may exercise any power granted by Chapter 30, Water Code, to a water
district created under Section 59, Article XVI, Texas Constitution,
including the power to collect, transport, process, treat, dispose
of, and control all municipal, domestic, industrial, or communal
waste, whether in fluid, solid, or composite state, including the
control, abatement, or reduction of any type of pollution.
       (b)  The powers granted to the district by Chapter 30, Water
Code, are for the purposes of conservation and development of the
natural resources of this state within the meaning of Section 59,
Article XVI, Texas Constitution. (Acts 66th Leg., R.S., Ch. 432,
Sec. 6(k).)
       Sec.6905.154.PERMITS. (a)  The district may obtain
through appropriate proceedings an appropriation permit or a
diversion permit from the Texas Commission on Environmental
Quality.
       (b)  The district may acquire water appropriation permits
from owners of permits by contract or otherwise. (Acts 66th Leg.,
R.S., Ch. 432, Sec. 9 (part).)
       Sec.6905.155.PROPERTY ACQUISITION, USE, AND DISPOSITION.  
(a)  The district may acquire, own, rent, lease, accept, hold, or
dispose of any property, or any interest in property, including a
right or easement, by purchase, exchange, gift, assignment,
condemnation, sale, lease, or otherwise, in performing district
duties or exercising district powers under this chapter.
       (b)  The district may hold, manage, operate, or improve
property.
       (c)  The district may lease or rent any land, building,
structure, or facility from or to any person to achieve the purposes
of this chapter.
       (d)  The district may sell, assign, lease, encumber,
mortgage, or otherwise dispose of property, or an interest in
property, and release or relinquish a right, title, claim, lien,
interest, easement, or demand, regardless of the manner in which
acquired, and conduct a transaction authorized by this subsection
by public or private sale, with or without public bidding,
notwithstanding any other law.  (Acts 66th Leg., R.S., Ch. 432,
Secs. 6(e), (f).)
       Sec.6905.156.REQUESTS FOR AND ACCEPTANCE OF AID.  The
district may request and accept an appropriation, grant,
allocation, subsidy, guarantee, aid, service, material, or gift
from any source, including the federal government, the state, a
public agency, or a political subdivision.  (Acts 66th Leg., R.S.,
Ch. 432, Sec. 6(g).)
       Sec.6905.157.DISTRICT OFFICE. The district may operate
and maintain an office.  (Acts 66th Leg., R.S., Ch. 432, Sec. 6(h)
(part).)
       Sec.6905.158.PERSONNEL.  The district may appoint and
determine the duties, tenure, qualifications, and compensation of
district officers and employees, as well as any agent, professional
advisor, or counselor, including any financial consultant,
accountant, attorney, architect, engineer, appraiser, or financing
expert, considered necessary or advisable by the board.  (Acts 66th
Leg., R.S., Ch. 432, Sec. 6(h) (part).)
       Sec.6905.159.GENERAL MANAGER. (a)  The district may
employ a general manager who may be the city manager of the City of
Beeville.
       (b)  The general manager may:
             (1)  employ and discharge employees; and
             (2)  exercise other powers conferred on the general
manager by the board.  (Acts 66th Leg., R.S., Ch. 432, Sec. 6(h)
(part).)
       Sec. 6905.160.  GENERAL AUTHORITY OF PUBLIC AGENCIES AND
POLITICAL SUBDIVISIONS TO CONTRACT WITH DISTRICT.  A public agency
or political subdivision of this state, including the City of
Beeville, may enter into a contract or agreement with the district,
on terms agreed to by the parties, for any purpose relating to the
district's powers or functions. Approval, notice, consent, or an
election is not required in connection with a contract or
agreement. (Acts 66th Leg., R.S., Ch. 432, Sec. 10(b) (part).)
       Sec.6905.161.CONTRACTS TO SUPPLY WATER.  (a)  The district
may contract with municipalities and others, including the City of
Beeville, to supply water.  The district may sell water inside or
outside the boundaries of the district.
       (b)  The district may contract with a public agency or
political subdivision for the rental or leasing of or for the
operation of the water production, water supply, water filtration
or purification, and water supply facilities of the entity on the
consideration agreed to by the district and the entity.
       (c)  A contract may be on terms and for the time agreed to by
the parties.
       (d)  A contract may provide that it will continue in effect
until bonds specified in it and refunding bonds issued in lieu of
the bonds are paid.
       (e)  The district may contract with the City of Beeville for
the operation of the district's water facilities by the city. An
election is not required in connection with the contract.
       (f)  A public agency or political subdivision, including the
City of Beeville, may enter into a contract or agreement with the
authority for a water supply as provided by Section 6905.160.  (Acts
66th Leg., R.S., Ch. 432, Secs. 10(a) (part), (b) (part), 19.)
       Sec. 6905.162.  SOURCES FOR WATER; ACQUISITION OF LAND;
STORAGE CAPACITY.  (a)  The district may acquire or construct,
inside or outside the district, a reservoir, well, or any work,
plant, transmission line, or other facility necessary or useful to
drill for, divert, impound, store, treat, or transport water to the
City of Beeville and others for municipal, domestic, agricultural,
industrial, mining, oil flooding, or any other useful purpose.
       (b)  The district may develop or otherwise acquire
underground sources of water.
       (c)  The district may acquire land, or an interest in land,
inside or outside the district, for a reservoir, well, or any work,
plant, transmission line, or other facility necessary or useful to
drill for, divert, impound, store, treat, or transport water to the
City of Beeville and others for municipal, domestic, agricultural,
industrial, mining, oil flooding, or any other useful purpose.
       (d)  The district may lease, purchase, or otherwise acquire
rights in and to storage and storage capacity in any reservoir
constructed or to be constructed by any person or from the United
States.  (Acts 66th Leg., R.S., Ch. 432, Secs. 9 (part), 10(a)
(part), 11 (part).)
       Sec.6905.163.CONSTRUCTION CONTRACTS.  (a)  The district
may award a construction contract that requires an expenditure of
more than $5,000 only after publication of notice to bidders once
each week for two weeks in a newspaper of general circulation in the
district.
       (b)  The notice is sufficient if it states:
             (1)  the time and place for opening the bids;
             (2)  the general nature of the work to be done or the
material, equipment, or supplies to be purchased; and
             (3)  where the terms of bidding and copies of the plans
and specifications may be obtained.  (Acts 66th Leg., R.S., Ch. 432,
Sec. 13.)
       Sec.6905.164.CONVEYANCE OF LAND TO DISTRICT.  A public
agency or a political subdivision of this state, including the City
of Beeville, may lease, sell, or otherwise convey its land or an
interest in its land to the district for consideration that the
parties agree is adequate. Approval, notice, consent, or an
election is not required in connection with the conveyance.  (Acts
66th Leg., R.S., Ch. 432, Sec. 10(b) (part).)
       Sec.6905.165.SURPLUS PROPERTY.  Subject to the terms of a
resolution or deed of trust authorizing or securing bonds issued by
the district, the district may sell, lease, rent, trade, or
otherwise dispose of property that the board considers is not
needed for a district purpose.  (Acts 66th Leg., R.S., Ch. 432, Sec.
11 (part).)
       Sec.6905.166.EMINENT DOMAIN.  (a)  To carry out an
authority provided by this chapter, the district may exercise the
power of eminent domain to acquire the fee simple title, or any
other interest in land, and other property and easements, inside or
outside the district, including land or an interest in land needed
for a reservoir, dam, or flood easement above the probable high
water line around any reservoir.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code.
       (c)  The district is a municipal corporation for the purposes
of Chapter 21, Property Code.
       (d)  The board shall determine the amount and type of
interest in land, other property, or easements to be acquired.
(Acts 66th Leg., R.S., Ch. 432, Sec. 12(a) (part).)
       Sec.6905.167.COST OF RELOCATING OR ALTERING PROPERTY.  
(a)  In this section, "sole expense" means the actual cost of the
lowering, rerouting, or change in grade or alteration of
construction required under Subsection (b) to provide a comparable
replacement without enhancing the facility, after deducting the net
salvage value derived from the old facility.
       (b)  If the district's exercise of its eminent domain,
police, or other power requires relocating, raising, lowering,
rerouting, or changing the grade of, or altering the construction
of any railroad, electric transmission, telegraph, or telephone
line, conduit, pole, property, facility, or pipeline, the action
shall be accomplished at the sole expense of the district.  (Acts
66th Leg., R.S., Ch. 432, Sec. 12(c).)
       Sec.6905.168.RIGHTS-OF-WAY; EASEMENTS. The district has
all necessary or useful rights-of-way and easements along, over,
under, and across all public, state, municipal, and county roads,
highways, and places for any of its purposes.  The district shall
restore a facility used to its previous condition as nearly as
possible at the sole expense of the district.  (Acts 66th Leg.,
R.S., Ch. 432, Sec. 12(b).)
       Sec.6905.169.DISTRICT SEAL. The district may adopt an
official seal. (Acts 66th Leg., R.S., Ch. 432, Sec. 6(c) (part).)
[Sections 6905.170-6905.200 reserved for expansion]
SUBCHAPTER E.  GENERAL FINANCIAL PROVISIONS
       Sec.6905.201.DISTRICT MONEY.  The district may acquire,
hold, use, and dispose of its receipts and money from every source.  
(Acts 66th Leg., R.S., Ch. 432, Sec. 6(d) (part).)
       Sec.6905.202.DEPOSITORY.  (a)  The board shall designate
one or more banks inside or outside the district to serve as the
depository for the district's money.
       (b)  District money shall be deposited in the depository
designated by the board, except that:
             (1)  bond proceeds and money pledged to pay bonds, to
the extent provided in a resolution or trust indenture authorizing
or securing district bonds, may be deposited with another bank or
trustee named in the bond resolution or trust indenture; and
             (2)  money shall be remitted to each paying agent for
the payment of principal of and interest on the bonds.
       (c)  To the extent that money in a depository bank or the
trustee bank is not insured by the Federal Deposit Insurance
Corporation, the money must be secured in the manner provided by law
for the security of municipal money. (Acts 66th Leg., R.S., Ch.
432, Secs. 6(d) (part), 20 (part).)
       Sec.6905.203.INVESTMENT OF DISTRICT MONEY. The board may
invest district money in obligations and make time deposits of
district money in a manner determined by the board or in the manner
permitted or required in a resolution or trust indenture
authorizing or securing district bonds.  (Acts 66th Leg., R.S., Ch.
432, Sec. 20 (part).)
       Sec. 6905.204.  DISTRICT FACILITIES EXEMPT FROM TAXATION AND
ASSESSMENT. The district is not required to pay a tax or assessment
on its facilities or any part of its facilities. (Acts 66th Leg.,
R.S., Ch. 432, Sec. 22 (part).)
[Sections 6905.205-6905.250 reserved for expansion]
SUBCHAPTER F. BONDS
       Sec.6905.251.AUTHORITY TO ISSUE BONDS.  (a) The district
may issue bonds, provide for and secure the payment of the bonds,
and provide for the rights of the holders of the bonds, in the
manner and to the extent permitted by this chapter.
       (b)  The district may issue bonds to carry out any authority
conferred by this chapter.  The bonds must be authorized by a board
resolution.
       (c)  The bonds may be payable from and secured by revenue or
ad valorem taxes, or both revenue and ad valorem taxes, of the
district, in the manner and under the terms of the resolution
authorizing the issuance of the bonds. (Acts 66th Leg., R.S., Ch.
432, Secs. 6(i), 14(a), (b) (part), (d) (part).)
       Sec.6905.252.FORM OF BONDS.  A district bond must be:
             (1)  issued in the district's name;
             (2)  signed by the president or vice president; and
             (3)  attested by the secretary.  (Acts 66th Leg., R.S.,
Ch. 432, Sec. 14(b) (part).)
       Sec.6905.253.MATURITY. District bonds must mature not
later than 50 years after the date of their issuance.  (Acts 66th
Leg., R.S., Ch. 432, Sec. 14(b) (part).)
       Sec. 6905.254.  ELECTION FOR BONDS PAYABLE FROM AD VALOREM
TAXES. (a) Bonds, other than refunding bonds, payable wholly or
partly from ad valorem taxes may not be issued unless authorized by
a majority of the district voters voting at an election.
       (b)  The board may call an election under this section
without a petition. The resolution calling the election must
specify:
             (1)  the time and places at which the election will be
held;
             (2)  the purpose for which the bonds will be issued;
             (3)  the amount of the bonds;
             (4)  the form of the ballot; and
             (5)  other matters the board considers necessary or
advisable.
       (c)  Notice of the election must be given by publishing a
substantial copy of the resolution calling the election in a
newspaper of general circulation in the district.  The notice must
be published once each week for two consecutive weeks. The first
publication must be not later than the 14th day before the date of
the election.
       (d)  The board may issue bonds not payable wholly or partly
from ad valorem taxes without an election.  (Acts 66th Leg., R.S.,
Ch. 432, Secs. 17(a) (part), (b).)
       Sec.6905.255.BONDS SECURED BY REVENUE; ADDITIONAL BONDS.
(a)  Bonds issued under this subchapter may be secured by a pledge
of all or part of the district's revenue, or by all or part of the
revenue of one or more contracts previously or subsequently made or
other revenue or income specified by board resolution or a trust
indenture securing the bonds.  The pledge may reserve the right,
under conditions specified by the pledge, to issue additional bonds
that will be on a parity with or subordinate to the bonds then being
issued.
       (b)  The district may issue bonds secured by both taxes and
revenue of the district described by Subsection (a).  (Acts 66th
Leg., R.S., Ch. 432, Secs. 14(c), (d) (part).)
       Sec.6905.256.BONDS PAYABLE FROM AD VALOREM TAXES.  (a)  If
bonds are issued payable wholly or partly from ad valorem taxes, the
board shall annually impose a tax on the taxable property in the
district in an amount sufficient to pay the principal of and
interest on the bonds when due.
       (b)  The district may adopt the rate of a tax imposed under
Subsection (a) after giving consideration to the money received
from the pledged revenue that may be available for payment of
principal and interest, to the extent and in the manner permitted by
the resolution authorizing the issuance of the bonds. (Acts 66th
Leg., R.S., Ch. 432, Secs. 14(d) (part), 23(b) (part).)
       Sec.6905.257.ADDITIONAL SECURITY. (a)  Bonds, including
refunding bonds, authorized by this subchapter that are not payable
wholly from ad valorem taxes may be additionally secured, at the
discretion of the board, by a deed of trust or mortgage lien on
physical property of the district, franchises, easements, water
rights and appropriation permits, leases, contracts, and all rights
appurtenant to the property, vesting in the trustee power to:
             (1)  sell the property for the payment of the debt;
             (2)  operate the property; and
             (3)  take other action to further secure the bonds.
       (b)  A purchaser under a sale under the deed of trust lien, if
one is given:
             (1)  is the absolute owner of property, facilities, and
rights purchased; and
             (2)  is entitled to maintain and operate the property,
facilities, and rights.  (Acts 66th Leg., R.S., Ch. 432, Sec. 16
(part).)
       Sec.6905.258.TRUST INDENTURE.  (a) A bond issued under
this subchapter, including a refunding bond, that is not payable
wholly from ad valorem taxes may be additionally secured by a trust
indenture. The trustee may be a bank with trust powers located
inside or outside the state.
       (b)  A trust indenture, regardless of the existence of the
deed of trust or mortgage lien on the property, may:
             (1)  provide for the security of the bonds and the
preservation of the trust estate in the manner prescribed by the
board;
             (2)  provide for amendment or modification of the trust
indenture;
             (3)  provide for the issuance of bonds to replace lost
or mutilated bonds;
             (4)  condition the right to spend district money or
sell district property on the approval of a licensed engineer
selected as provided by the trust indenture; and
             (5)  provide for the investment of district money.
(Acts 66th Leg., R.S., Ch. 432, Sec. 16 (part).)
       Sec. 6905.259.  DEANNEXATION OF DISTRICT TERRITORY AFTER
ISSUANCE OF BONDS. Territory may not be deannexed from the district
after the issuance of bonds payable from revenue or taxes.  (Acts
66th Leg., R.S., Ch. 432, Sec. 17(a) (part).)
       Sec.6905.260.CHARGES FOR DISTRICT SERVICES. (a)  If bonds
payable wholly from revenue are issued, the board shall set and
revise the rates of compensation for water sold and services
provided by the district. The rates must be sufficient to:
             (1)  pay the expense of operating and maintaining
district facilities;
             (2)  pay the principal of and interest on the bonds when
due; and
             (3)  maintain the reserve fund and other funds as
provided in the resolution authorizing the bonds.
       (b)  If bonds payable partly from revenue are issued, the
board shall set and revise the rate of compensation for water sold
and any other services provided by the district. The rate must be
in an amount sufficient to ensure compliance with the resolution
authorizing the bonds or the trust indenture securing the bonds.
(Acts 66th Leg., R.S., Ch. 432, Sec. 14(e).)
       Sec.6905.261.USE OF BOND PROCEEDS. (a)  The district may
set aside an amount of proceeds from the sale of bonds issued under
this subchapter for:
             (1)  the payment of interest expected to accrue during
construction not to exceed three years;
             (2)  a reserve interest and sinking fund; and
             (3)  other funds as may be provided in the resolution
authorizing the bonds or in the trust indenture.
       (b)  The district may use proceeds from the sale of the bonds
to pay any expense necessarily incurred in accomplishing the
purpose of the district, including:
             (1)  any expense of issuing and selling the bonds; and
             (2)  the amount needed to operate the district during
construction of the improvements.  (Acts 66th Leg., R.S., Ch. 432,
Sec. 14(f).)
       Sec.6905.262.APPOINTMENT OF RECEIVER. (a)  On default or
a threatened default in the payment of principal of or interest on
bonds issued under this subchapter that are payable wholly or
partly from revenue, a court may, on petition of the holders of
outstanding bonds, appoint a receiver for the district.
       (b)  The receiver may collect and receive all district
income, except taxes, employ and discharge district agents and
employees, take charge of money on hand, except money received from
taxes, unless commingled, and manage the proprietary affairs of the
district without consent or hindrance by the board.
       (c)  The receiver may be authorized to sell or contract for
the sale of water or to renew those contracts with the approval of
the court that appointed the receiver.
       (d)  The court may vest the receiver with any other power or
duty the court finds necessary to protect the bondholders.  (Acts
66th Leg., R.S., Ch. 432, Sec. 14(g) (part).)
       Sec.6905.263.REFUNDING BONDS.  (a)  The district may issue
refunding bonds to refund outstanding bonds issued under this
subchapter and interest on those bonds.
       (b)  Refunding bonds may:
             (1)  be issued to refund bonds of more than one series;
             (2)  combine the pledges for the outstanding bonds for
the security of the refunding bonds; or
             (3)  be secured by a pledge of other or additional
revenue or mortgage liens.
       (c)  The provisions of this subchapter regarding the
issuance of other bonds, their security, and the remedies of the
holders apply to refunding bonds.
       (d)  The comptroller shall register the refunding bonds on
surrender and cancellation of the bonds to be refunded.
       (e)  Instead of issuing bonds to be registered on the
surrender and cancellation of the bonds to be refunded, the
district, in the resolution authorizing the issuance of the
refunding bonds, may provide for the sale of the refunding bonds and
the deposit of the proceeds in a bank at which the bonds to be
refunded are payable. In that case, the refunding bonds may be
issued in an amount sufficient to pay the principal of and interest
and any required redemption premium on the bonds to be refunded to
any redemption date or to their maturity date, and the comptroller
shall register the refunding bonds without the surrender and
cancellation of the bonds to be refunded.
       (f)  An election is not required for refunding bonds.
       (g)  The district may also issue refunding bonds under any
other applicable law.  (Acts 66th Leg., R.S., Ch. 432, Sec. 15.)
       Sec.6905.264.LIMITATION ON RIGHTS OF HOLDERS.  The
resolution authorizing the bonds or the trust indenture securing
the bonds may limit or qualify the rights of the holders of less
than all of the outstanding bonds payable from the source to
institute or prosecute litigation affecting the district's
property or income.  (Acts 66th Leg., R.S., Ch. 432, Sec. 14(g)
(part).)
       Sec.6905.265.BONDS EXEMPT FROM TAXATION. A bond issued
under this subchapter, the transfer of the bond, and income from the
bond, including profits made on the sale of the bond, are exempt
from taxation in this state.  (Acts 66th Leg., R.S., Ch. 432, Sec.
22 (part).)
CHAPTER 6906.  CORYELL CITY WATER SUPPLY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 6906.001.  DEFINITIONS 
Sec. 6906.002.  NATURE OF DISTRICT 
Sec. 6906.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE 
Sec. 6906.004.  DISTRICT TERRITORY 
[Sections 6906.005-6906.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 6906.051.  COMPOSITION OF BOARD; TERMS 
Sec. 6906.052.  QUALIFICATIONS FOR OFFICE 
Sec. 6906.053.  VACANCIES 
Sec. 6906.054.  REMOVAL FROM OFFICE 
Sec. 6906.055.  BOARD RESOLUTIONS; VOTING REQUIREMENTS 
Sec. 6906.056.  OFFICERS AND ASSISTANTS 
Sec. 6906.057.  DUTIES OF OFFICERS AND ASSISTANTS 
Sec. 6906.058.  MEETINGS 
Sec. 6906.059.  PERSONAL LIABILITY OF DIRECTORS 
[Sections 6906.060-6906.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 6906.101.  GENERAL POWERS 
Sec. 6906.102.  GENERAL POWERS REGARDING WATER 
Sec. 6906.103.  GENERAL POWERS REGARDING WASTE 
Sec. 6906.104.  DISTRICT BYLAWS AND RULES 
Sec. 6906.105.  PROPERTY ACQUISITION, USE, AND
                 DISPOSITION 
Sec. 6906.106.  REQUESTS FOR AND ACCEPTANCE OF AID 
Sec. 6906.107.  DISTRICT OFFICE 
Sec. 6906.108.  PERSONNEL 
Sec. 6906.109.  PERMITS 
Sec. 6906.110.  GENERAL CONTRACT POWERS 
Sec. 6906.111.  AUTHORITY OF PUBLIC AGENCIES AND
                 POLITICAL SUBDIVISIONS TO CONTRACT
                 WITH DISTRICT 
Sec. 6906.112.  ACQUISITION OF LAND; STORAGE CAPACITY 
Sec. 6906.113.  CONSTRUCTION CONTRACTS 
Sec. 6906.114.  CONVEYANCE OF LAND TO DISTRICT 
Sec. 6906.115.  DISPOSAL OF PROPERTY 
Sec. 6906.116.  EMINENT DOMAIN 
Sec. 6906.117.  COST OF RELOCATING OR ALTERING PROPERTY 
Sec. 6906.118.  RIGHTS-OF-WAY; EASEMENTS 
Sec. 6906.119.  SEAL 
[Sections 6906.120-6906.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 6906.151.  DISTRICT MONEY 
Sec. 6906.152.  AUTHORITY TO BORROW MONEY AND ISSUE
                 BONDS 
Sec. 6906.153.  DEPOSITORY 
Sec. 6906.154.  INVESTMENT OF DISTRICT MONEY 
Sec. 6906.155.  DISTRICT FACILITIES EXEMPT FROM
                 TAXATION AND ASSESSMENT 
[Sections 6906.156-6906.200 reserved for expansion]
SUBCHAPTER E. BONDS
Sec. 6906.201.  AUTHORITY TO ISSUE BONDS 
Sec. 6906.202.  FORM OF BONDS 
Sec. 6906.203.  MATURITY 
Sec. 6906.204.  BONDS SECURED BY REVENUE; ADDITIONAL
                 BONDS 
Sec. 6906.205.  ADDITIONAL SECURITY 
Sec. 6906.206.  TRUST INDENTURE 
Sec. 6906.207.  CHARGES FOR DISTRICT SERVICES 
Sec. 6906.208.  STATE PLEDGE REGARDING RIGHTS AND
                 REMEDIES OF BONDHOLDERS 
Sec. 6906.209.  USE OF BOND PROCEEDS 
Sec. 6906.210.  APPOINTMENT OF RECEIVER 
Sec. 6906.211.  REFUNDING BONDS 
Sec. 6906.212.  OTHER REMEDIES AND COVENANTS 
Sec. 6906.213.  LIMITATION ON RIGHTS OF BONDHOLDERS 
Sec. 6906.214.  BONDS EXEMPT FROM TAXATION 
CHAPTER 6906.  CORYELL CITY WATER SUPPLY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.6906.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the district's board of directors.
             (2)  "Bond" means a bond or note.
             (3)  "Director" means a member of the board.
             (4)  "District" means the Coryell City Water Supply
District. (Acts 66th Leg., R.S., Ch. 435, Secs. 1 (part), 5(a)
(part), 16(a) (part).)
       Sec.6906.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Coryell County created
under Section 59, Article XVI, Texas Constitution. (Acts 66th
Leg., R.S., Ch. 435, Sec. 1 (part).)
       Sec.6906.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district and other areas to be served by the district's works
and projects will benefit from the works and projects accomplished
by the district under the powers conferred by Section 59, Article
XVI, Texas Constitution.
       (c)  The accomplishment of the purposes stated in this
chapter is for the benefit of the people of this state for the
improvement of their property and industries. The district, in
carrying out the purposes of this chapter, will be performing an
essential public function under the constitution. (Acts 66th Leg.,
R.S., Ch. 435, Secs. 4, 23 (part).)
       Sec.6906.004.DISTRICT TERRITORY. (a)  The district is
composed of the territory described by Section 2, Chapter 435, Acts
of the 66th Legislature, Regular Session, 1979, as that territory
may have been modified under:
             (1)  Subchapter J, Chapter 49, Water Code; or
             (2)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (Acts 66th Leg., R.S., Ch. 435, Sec. 3; New.)
       [Sections 6906.005-6906.050 reserved for expansion]
       SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.6906.051.COMPOSITION OF BOARD; TERMS. (a)  The
district is governed by a board of 11 directors, each of whom
occupies a numbered place on the board.
       (b)  Directors serve staggered two-year terms, with the
terms of the directors occupying Places 1, 2, 3, 4, and 5 expiring
on April 1 of each even-numbered year and the terms of the directors
occupying Places 6, 7, 8, 9, 10, and 11 expiring April 1 of each
odd-numbered year.
       (c)  In March of each year, the Commissioners Court of
Coryell County shall appoint directors to succeed directors whose
term of office will expire on April 1.  The appointed directors' 
terms begin on April 1 of that year.  (Acts 66th Leg., R.S., Ch. 435,
Secs. 5(a) (part), (b) (part).)
       Sec.6906.052.QUALIFICATIONS FOR OFFICE. (a)  Directors
must be appointed from areas in Coryell County as follows:
             (1)  one each from the Oglesby-Mound area and Levita
area;
             (2)  two each from the Pancake area, Jonesboro area,
and Turnersville area; and
             (3)  three from the Coryell City area.
       (b)  To be eligible to succeed a director whose term of
office is about to expire, a person must be appointed from the same
geographical area as the geographical area that the director
represents.
       (c)  Each director is eligible for reappointment.
       (d)  To be eligible to be appointed or to serve as a director,
a person must be a resident, qualified voter of the geographical
area from which the person is appointed.
       (e)  A director may not hold any other public office. (Acts
66th Leg., R.S., Ch. 435, Secs. 5(b) (part), (c).)
       Sec.6906.053.VACANCIES. Any vacancy occurring on the
board shall be filled for the unexpired term by appointment in the
manner in which the vacating director was appointed. (Acts 66th
Leg., R.S., Ch. 435, Sec. 5(b) (part).)
       Sec.6906.054.REMOVAL FROM OFFICE. After reasonable
notice and a public hearing, the board may remove a director from
office for misfeasance, malfeasance, or wilful neglect of duty.
Reasonable notice and a public hearing are not required if the
notice and hearing are expressly waived in writing. (Acts 66th
Leg., R.S., Ch. 435, Sec. 5(d).)
       Sec.6906.055.BOARD RESOLUTIONS; VOTING REQUIREMENTS. (a)  
The district shall act by resolutions adopted by the board.
       (b)  All directors are entitled to vote.
       (c)  The affirmative vote of a majority of the directors
present is necessary to adopt a resolution. (Acts 66th Leg., R.S.,
Ch. 435, Sec. 6(c).)
       Sec.6906.056.OFFICERS AND ASSISTANTS. (a)  The board
shall elect a president, vice president, secretary, and treasurer
at the first meeting of the newly constituted board each year and at
any time necessary to fill a vacancy.
       (b)  The board shall elect the president and vice president
from among the directors.
       (c)  The offices of secretary and treasurer:
             (1)  may be held by one person; and
             (2)  are not required to be held by a director.
       (d)  The board may appoint as assistant board secretary one
or more persons who are not directors. (Acts 66th Leg., R.S., Ch.
435, Secs. 6(b) (part), (d) (part).)
       Sec.6906.057.DUTIES OF OFFICERS AND ASSISTANTS. (a)  The
board president shall preside at board meetings and perform other
duties prescribed by the board.
       (b)  The board treasurer shall perform duties and functions
prescribed by the board.
       (c)  The board secretary is the official custodian of the
minutes, books, records, and seal of the board and shall perform
other duties and functions prescribed by the board.  An assistant
board secretary may perform any duty or function of the board
secretary. (Acts 66th Leg., R.S., Ch. 435, Sec. 6(b) (part).)
       Sec.6906.058.MEETINGS. The board shall have regular
meetings at times specified by board resolution and shall have
special meetings when called by the board president or by any two
directors. (Acts 66th Leg., R.S., Ch. 435, Sec. 6(e).)
       Sec.6906.059.PERSONAL LIABILITY OF DIRECTORS. A director
is not personally liable for any bond issued or contract executed by
the district. (Acts 66th Leg., R.S., Ch. 435, Sec. 6(f).)
[Sections 6906.060-6906.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.6906.101.GENERAL POWERS. The district has all powers
necessary or appropriate to achieve the purposes of this chapter.
(Acts 66th Leg., R.S., Ch. 435, Sec. 9(a).)
       Sec.6906.102.GENERAL POWERS REGARDING WATER. The
district has all rights, powers, and privileges necessary or useful
to enable it to acquire, provide, supply, deliver, and sell potable
water for any beneficial purpose in its boundaries and vicinity and
in Coryell and McLennan Counties. (Acts 66th Leg., R.S., Ch. 435,
Sec. 7.)
       Sec.6906.103.GENERAL POWERS REGARDING WASTE. (a)  The
district has all rights, powers, and privileges necessary or useful
to enable it to collect, transport, dispose of, and control
domestic, industrial, or communal wastes, whether in fluid, solid,
or composite state, inside and outside its boundaries.
       (b)  The district may exercise any power granted by Chapter
30, Water Code, to a district created under Section 59, Article XVI,
Texas Constitution. (Acts 66th Leg., R.S., Ch. 435, Secs. 8, 9(l).)
       Sec.6906.104.DISTRICT BYLAWS AND RULES. The district may
adopt and enforce:
             (1)  bylaws and rules for the conduct of its affairs;
and
             (2)  rules that a municipal utility district may adopt
and enforce under Sections 54.205 et seq., Water Code. (Acts 66th
Leg., R.S., Ch. 435, Secs. 9(c) (part), (k).)
       Sec.6906.105.PROPERTY ACQUISITION, USE, AND DISPOSITION.
(a)  The district may acquire, own, rent, lease, accept, hold, or
dispose of property, or an interest in property, including a right
or easement, by purchase, exchange, gift, assignment,
condemnation, sale, lease, or otherwise, in performing district
duties or exercising district powers under this chapter.
       (b)  The district may hold, manage, operate, or improve
property.
       (c)  The district may lease or rent any land, building,
structure, or facility from or to any person to achieve the purposes
of this chapter.
       (d)  The district may sell, assign, lease, encumber,
mortgage, or otherwise dispose of property, or an interest in
property, and release or relinquish a right, title, claim, lien,
interest, easement, or demand, regardless of the manner in which
acquired, and conduct a transaction authorized by this subsection
by public or private sale, with or without public bidding,
notwithstanding any other law.  (Acts 66th Leg., R.S., Ch. 435,
Secs. 9(e), (f).)
       Sec.6906.106.REQUESTS FOR AND ACCEPTANCE OF AID. The
district may request and accept an appropriation, grant,
allocation, subsidy, guarantee, aid, service, material, or gift
from any public or private source, including the federal
government, the state, a public agency, or a political subdivision.
(Acts 66th Leg., R.S., Ch. 435, Sec. 9(g).)
       Sec.6906.107.DISTRICT OFFICE. The district may operate
and maintain an office. (Acts 66th Leg., R.S., Ch. 435, Sec. 9(h)
(part).)
       Sec.6906.108.PERSONNEL. The district may appoint and
determine the duties, tenure, qualifications, and compensation of
district officers and employees, as well as any agent, professional
advisor, or counselor, including any financial consultant,
accountant, attorney, architect, engineer, appraiser, or financing
expert, considered necessary or advisable by the board. (Acts 66th
Leg., R.S., Ch. 435, Sec. 9(h) (part).)
       Sec.6906.109.PERMITS. (a)  The district may obtain
through appropriate proceedings permits from the Texas Commission
on Environmental Quality.
       (b)  The district may acquire water appropriation permits
from owners of permits by contract or otherwise. (Acts 66th Leg.,
R.S., Ch. 435, Sec. 10 (part).)
       Sec.6906.110.GENERAL CONTRACT POWERS. (a)  The district
may enter into and enforce a contract or agreement necessary or
convenient to the exercise of the powers, rights, privileges, and
functions conferred on the district by this chapter or the general
law, including a contract or agreement with any person as the board
considers necessary or proper for, or in connection with, any power
or function of the district for:
             (1)  the purchase or other acquisition, storage,
transportation, distribution, delivery, or sale of water;
             (2)  the collection, transportation, processing, or
disposal of waste; or
             (3)  the construction, acquisition, ownership,
financing, operation, maintenance, sale, leasing to or from, or
other use or disposition of any facilities authorized to be
developed, acquired, or constructed under this chapter or the
general law.
       (b)  The authority to enter into or enforce the contract or
agreement includes the authority to enter into or enforce a
contract or agreement regarding:
             (1)  any improvements, structures, facilities,
equipment, and other property of any kind in connection with the
subject of the contract or agreement;
             (2)  any related land, leaseholds, and easements; and
             (3)  any interests in the property.
       (c)  The contract or agreement:
             (1)  may not have a term of more than 40 years; and
             (2)  may contain provisions the board determines to be
in the best interest of the district.
       (d)  The district may pledge all or part of its revenue to the
payment of its obligations under the contract or agreement to the
same extent and on the same conditions as it may pledge revenue to
secure district bonds. (Acts 66th Leg., R.S., Ch. 435, Sec. 11(a).)
       Sec. 6906.111.  AUTHORITY OF PUBLIC AGENCIES AND POLITICAL
SUBDIVISIONS TO CONTRACT WITH DISTRICT. (a)  A public agency or
political subdivision of this state may enter into a contract or
agreement with the district, on terms agreed to by the parties, for:
             (1)  the purchase or sale of water;
             (2)  waste collection, processing, or disposal; or
             (3)  any purpose relating to the district's powers or
functions.
       (b)  Approval, notice, consent, or an election is not
required in connection with a contract or agreement. (Acts 66th
Leg., R.S., Ch. 435, Sec. 11(b) (part).)
       Sec.6906.112.ACQUISITION OF LAND; STORAGE CAPACITY. (a)  
The district may acquire land, or an interest in land, inside or
outside the district for any work, plant, or other facility
necessary or useful to divert, impound, store, drill for, pump,
treat, or transport water for municipal, domestic, industrial,
mining, oil flooding, or any other useful purpose.
       (b)  The district may lease, purchase, or otherwise acquire
rights in and to storage and storage capacity in any reservoir
constructed or to be constructed by the United States or any other
person. (Acts 66th Leg., R.S., Ch. 435, Secs.  10 (part), 13
(part).)
       Sec.6906.113.CONSTRUCTION CONTRACTS. (a)  The district
may award a construction contract that requires an expenditure of
more than $5,000 only after publication of notice to bidders once
each week for two consecutive weeks in a newspaper of general
circulation in the district.
       (b)  The notice is sufficient if it states:
             (1)  the time and place for opening the bids;
             (2)  the general nature of the work to be done;
             (3)  the material, equipment, or supplies to be
purchased; and
             (4)  where the terms of bidding and copies of the plans
and specifications may be obtained. (Acts 66th Leg., R.S., Ch. 435,
Sec. 15.)
       Sec.6906.114.CONVEYANCE OF LAND TO DISTRICT. A public
agency or political subdivision of this state may lease, sell, or
otherwise convey to the district any of its land, improvements,
property, plants, lines, or other facilities related to the supply
of water or the collection, processing, or disposal of waste for any
consideration that the parties agree is adequate. Approval,
notice, consent, or an election is not required in connection with a
conveyance, contract, or agreement. (Acts 66th Leg., R.S., Ch.
435, Sec. 11(b) (part).)
       Sec.6906.115.DISPOSAL OF PROPERTY. Subject to the terms
of a resolution or deed of trust authorizing or securing bonds
issued by the district, the district may sell, lease, rent, trade,
or otherwise dispose of property under terms considered by the
board to be consistent with district purposes. (Acts 66th Leg.,
R.S., Ch. 435, Sec. 13 (part).)
       Sec.6906.116.EMINENT DOMAIN. (a)  To carry out a power
provided by this chapter, the district may exercise the power of
eminent domain to acquire the fee simple title to land, or any other
interest in land, and other property and easements, inside or
outside the district.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code, except that the
district is not required to:
             (1)  give bond for appeal or bond for costs in a
condemnation or other suit to which it is a party; or
             (2)  deposit double the amount of an award in a suit.
       (c)  The district is a municipal corporation for the purposes
of Chapter 21, Property Code.
       (d)  The board shall determine the amount and the type of
interest in land, other property, or easements to be acquired.
(Acts 66th Leg., R.S., Ch. 435, Sec. 14(a) (part).)
       Sec.6906.117.COST OF RELOCATING OR ALTERING PROPERTY.
(a)  In this section, the term "sole expense" means the actual cost
of the relocation, raising, lowering, rerouting, or change in grade
or alteration of construction required under Subsection (b) to
provide a comparable replacement without enhancing the facility,
after deducting the net salvage value derived from the old
facility.
       (b)  If the district's exercise of its eminent domain,
police, or other power requires relocating, raising, lowering,
rerouting, changing the grade of, or altering the construction of
any railroad, electric, transmission, telegraph, or telephone
line, conduit, pole, property or facility, or pipeline, the action
shall be accomplished at the sole expense of the district. (Acts
66th Leg., R.S., Ch. 435, Sec. 14(c).)
       Sec.6906.118.RIGHTS-OF-WAY; EASEMENTS. The district has
all necessary or useful right-of-way and easements along, over,
under, and across all public, state, municipal, and county roads,
highways, and places for any of its purposes. The district shall
restore a facility used to its previous condition as nearly as
possible at the sole expense of the district. (Acts 66th Leg.,
R.S., Ch. 435, Sec. 14(b).)
       Sec.6906.119.SEAL. The district may adopt an official
seal. (Acts 66th Leg., R.S., Ch. 435, Sec. 9(c) (part).)
[Sections 6906.120-6906.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
       Sec.6906.151.DISTRICT MONEY. The district may acquire,
hold, use, and dispose of its receipts and money from any source.
(Acts 66th Leg., R.S., Ch. 435, Sec. 9(d) (part).)
       Sec.6906.152.AUTHORITY TO BORROW MONEY AND ISSUE BONDS.
The district, in the manner and to the extent permitted by this
chapter, may:
             (1)  borrow money for any of its corporate purposes;
             (2)  enter into agreements in connection with the
borrowing;
             (3)  issue its bonds for money borrowed;
             (4)  provide for and secure the payment of its bonds;
and
             (5)  provide for the rights of the holders of its bonds.
(Acts 66th Leg., R.S., Ch. 435, Sec. 9(i).)
       Sec.6906.153.DEPOSITORY. (a) The board shall designate
one or more banks or savings and loan associations inside or outside
the district to serve as the depository for the district's money.
       (b)  All of the district's money shall be deposited in the
depository designated by the board, except that:
             (1)  bond proceeds and money pledged to pay bonds, to
the extent provided in a resolution or trust indenture authorizing
or securing district bonds, may be deposited with another bank or
trustee named in the bond resolution or trust indenture; and
             (2)  money shall be remitted to each paying agent for
the payment of principal of and interest on the bonds.
       (c)  To the extent that money in a depository bank or trustee
bank is not insured by the Federal Deposit Insurance Corporation,
the money must be secured in the manner provided by law for the
security of county funds in this state. (Acts 66th Leg., R.S., Ch.
435, Secs. 9(d) (part), 21 (part).)
       Sec.6906.154.INVESTMENT OF DISTRICT MONEY. The board may
invest district money in obligations and make time deposits of
district money in a manner determined by the board or in the manner
permitted or required in a resolution or trust indenture
authorizing or securing district bonds. (Acts 66th Leg., R.S., Ch.
435, Sec. 21 (part).)
       Sec. 6906.155.  DISTRICT FACILITIES EXEMPT FROM TAXATION AND
ASSESSMENT. The district is not required to pay a tax or assessment
on its facilities or any part of its facilities. (Acts 66th Leg.,
R.S., Ch. 435, Sec. 23 (part).)
[Sections 6906.156-6906.200 reserved for expansion]
SUBCHAPTER E. BONDS
       Sec.6906.201.AUTHORITY TO ISSUE BONDS. (a)  The district
may issue bonds payable from and secured by district revenue to
carry out any purpose or power conferred on the district by this
chapter. The bonds must be authorized by a board resolution.
       (b)  The bonds must be issued in the manner and under the
terms of the resolution authorizing the issuance of the bonds.
(Acts 66th Leg., R.S., Ch. 435, Secs. 16(a) (part), (b) (part),
(c).)
       Sec.6906.202.FORM OF BONDS. District bonds must be:
             (1)  issued in the district's name;
             (2)  signed by the president or vice president; and
             (3)  attested by the secretary. (Acts 66th Leg., R.S.,
Ch. 435, Sec. 16(b) (part).)
       Sec.6906.203.MATURITY. District bonds must mature not
later than 40 years after the date of their issuance. (Acts 66th
Leg., R.S., Ch. 435, Sec. 16(b) (part).)
       Sec.6906.204.BONDS SECURED BY REVENUE; ADDITIONAL BONDS.
(a)  District bonds may be secured by a pledge of all or part of the
district's revenue, or by all or part of the payments or rentals
under one or more contracts or leases specified by board resolution
or a trust indenture securing the bonds.
       (b)  A resolution authorizing the issuance of bonds secured
by a pledge of revenue of all or part of the district's facilities
may provide that the district shall first pay the expenses of
operating and maintaining all or part of the facilities as the board
considers appropriate before paying the principal of and interest
on the bonds.
       (c)  A resolution authorizing the issuance of bonds secured
by revenue, contract payments, or lease rentals may reserve to the
district the right, under conditions specified by the resolution,
to issue additional bonds that will be on a parity with, superior
to, or subordinate to the bonds then being issued. (Acts 66th Leg.,
R.S., Ch. 435, Sec. 16(d).)
       Sec.6906.205.ADDITIONAL SECURITY. (a)  District bonds
may be additionally secured, at the discretion of the board, by a
deed of trust or mortgage lien on all or part of the district's
physical property, facilities, easements, franchises, water rights
and appropriation permits, leases, contracts, and all rights
appurtenant to the property, vesting in the trustee power to:
             (1)  sell the property for the payment of the debt;
             (2)  operate the property; and
             (3)  take other action to further secure the bonds.
       (b)  A purchaser under a sale under the deed of trust lien, if
one is given:
             (1)  is the absolute owner of the property, facilities,
and rights purchased; and
             (2)  is entitled to maintain and operate the property,
facilities, and rights. (Acts 66th Leg., R.S., Ch. 435, Sec. 18
(part).)
       Sec.6906.206.TRUST INDENTURE. (a)  District bonds,
including refunding bonds, may be additionally secured by a trust
indenture. The trustee may be a bank with trust powers located
inside or outside the state.
       (b)  A trust indenture, regardless of the existence of a deed
of trust or mortgage lien on the property, may:
             (1)  provide for the security of the bonds and the
preservation of the trust estate in the manner prescribed by the
board;
             (2)  provide for amendment or modification of the trust
indenture;
             (3)  provide for the issuance of bonds to replace lost
or mutilated bonds;
             (4)  condition the right to spend district money or
sell district property on the approval of a licensed engineer
selected as provided by the trust indenture; and
             (5)  provide for the investment of district money.
(Acts 66th Leg., R.S., Ch. 435, Sec. 18 (part).)
       Sec.6906.207.CHARGES FOR DISTRICT SERVICES. If district
bonds payable wholly from revenue are issued, the board shall set
and revise the rates, fees, and charges assessed for water sold and
waste collection and treatment services provided by the district.
The rates, fees, and charges must be sufficient to:
       (1)  pay the expense of operating and maintaining the
district facilities that generate the revenue from which the bonds
will be paid;
       (2)  pay the principal of and interest on the bonds when due;
and
       (3)  maintain the reserve fund and other funds as provided in
the resolution authorizing the bonds.  (Acts 66th Leg., R.S., Ch.
435, Sec. 16(e) (part).)
       Sec. 6906.208.  STATE PLEDGE REGARDING RIGHTS AND REMEDIES
OF BONDHOLDERS. Without depriving this state of its power to
regulate and control the rates, fees, and charges assessed for
water sold and waste collection and treatment services provided by
the district, the state pledges to and agrees with the holders of
district bonds that the state will not exercise its power to
regulate and control the rates, fees, and charges in any way that
would impair the rights or remedies of the holders of the bonds.
(Acts 66th Leg., R.S., Ch. 435, Sec. 16(e) (part).)
       Sec.6906.209.USE OF BOND PROCEEDS. (a)  The district may
set aside an amount of proceeds from the sale of district bonds for:
             (1)  the payment of interest expected to accrue during
construction not to exceed three years;
             (2)  a debt service reserve fund; and
             (3)  other funds as may be provided in the resolution
authorizing the bonds or in the trust indenture.
       (b)  The district may use proceeds from the sale of the bonds
to pay any expense necessarily incurred in accomplishing the
purpose of the district, including any expense of issuing and
selling the bonds. (Acts 66th Leg., R.S., Ch. 435, Sec. 16(f).)
       Sec.6906.210.APPOINTMENT OF RECEIVER. (a)  On default or
threatened default in the payment of the principal of or interest on
district bonds that are payable wholly or partly from revenue, a
court may, on petition of the holders of outstanding bonds, appoint
a receiver for the district.
       (b)  The receiver may collect and receive all district
income, employ and discharge district agents and employees, take
charge of money on hand, and manage the proprietary affairs of the
district without consent or hindrance by the board.
       (c)  The receiver may be authorized to sell or contract for
the sale of water or the collection, processing, or disposal of
waste or to renew contracts with the approval of the court that
appointed the receiver.
       (d)  The court may vest the receiver with any other power or
duty the court finds necessary to protect the bondholders. (Acts
66th Leg., R.S., Ch. 435, Sec. 16(g) (part).)
       Sec.6906.211.REFUNDING BONDS. (a) The district may issue
refunding bonds to refund outstanding district bonds and interest
on those bonds.
       (b)  Refunding bonds may:
             (1)  be issued to refund bonds of more than one series;
             (2)  combine the pledges for the outstanding bonds for
the security of the refunding bonds; or
             (3)  be secured by a pledge of other or additional
revenue or mortgage liens.
       (c)  The provisions of this subchapter regarding the
issuance of other bonds, their security, and the remedies of the
holders apply to refunding bonds.
       (d)  The comptroller shall register the refunding bonds on
the surrender and cancellation of the bonds to be refunded.
       (e)  Instead of issuing bonds to be registered on the
surrender and cancellation of the bonds to be refunded, the
district, in the resolution authorizing the issuance of the
refunding bonds, may provide for the sale of the refunding bonds and
the deposit of the proceeds in a bank at which the bonds to be
refunded are payable. In that case, the refunding bonds may be
issued in an amount sufficient to pay the principal of and interest
and any required redemption premium on the bonds to be refunded to
any redemption date or to their maturity date, and the comptroller
shall register the refunding bonds without the surrender and
cancellation of the bonds to be refunded.
       (f)  The district may also issue refunding bonds under any
other applicable law. (Acts 66th Leg., R.S., Ch. 435, Sec. 17.)
       Sec.6906.212.OTHER REMEDIES AND COVENANTS. The
resolution authorizing the issuance of any district bonds,
including refunding bonds, or the trust indenture securing the
bonds, may provide other remedies and covenants the board considers
necessary to issue the bonds on the most favorable terms. (Acts
66th Leg., R.S., Ch. 435, Sec. 16(h).)
       Sec.6906.213.LIMITATION ON RIGHTS OF BONDHOLDERS. The
resolution authorizing the bonds or the trust indenture securing
the bonds may limit or qualify the rights of the holders of less
than all of the outstanding bonds payable from the same source to
institute or prosecute litigation affecting the district's
property or income. (Acts 66th Leg., R.S., Ch. 435, Sec. 16(g)
(part).)
       Sec.6906.214.BONDS EXEMPT FROM TAXATION. A district
bond, the transfer of the bond, and the income from the bond,
including profits made on the sale of the bond, are exempt from
taxation in this state. (Acts 66th Leg., R.S., Ch. 435, Sec. 23
(part).)
       SECTION 1.07.  Subtitle C, Title 6, Special District Local
Laws Code, is amended by adding Chapters 7207 and 7208 to read as
follows:
CHAPTER 7207.  TARKINGTON SPECIAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7207.001.  DEFINITIONS
Sec. 7207.002.  NATURE OF DISTRICT
Sec. 7207.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 7207.004.  DISTRICT TERRITORY
[Sections 7207.005-7207.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 7207.051.  COMPOSITION OF BOARD; TERMS
Sec. 7207.052.  DIRECTORS' ELECTION
[Sections 7207.053-7207.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 7207.101.  SPECIAL UTILITY DISTRICT POWERS
Sec. 7207.102.  GENERAL CONTRACT POWERS
Sec. 7207.103.  WATER RIGHTS
Sec. 7207.104.  WATER OR SEWER SYSTEM ACQUISITION OR
                 CONSTRUCTION
Sec. 7207.105.  STANDARD SPECIFICATIONS FOR FACILITIES
Sec. 7207.106.  REVENUE BONDS
CHAPTER 7207.  TARKINGTON SPECIAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.7207.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Tarkington Special Utility
District.  (Acts 76th Leg., R.S., Ch. 1321, Sec. 2; New.)
       Sec.7207.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Liberty County created
under Section 59, Article XVI, Texas Constitution, as a special
utility district.  (Acts 76th Leg., R.S., Ch. 1321, Secs. 1(a)
(part), (b) (part), 11(a) (part).)
       Sec.7207.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property in the district will benefit
from the works and projects to be accomplished by the district under
the powers conferred by Section 59, Article XVI, Texas
Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.  (Acts
76th Leg., R.S., Ch. 1321, Secs. 1(b) (part), 5.)
       Sec.7207.004.DISTRICT TERRITORY. (a)  The district is
composed of the territory described by Section 3, Chapter 1321,
Acts of the 76th Legislature, Regular Session, 1999, as that
territory may have been modified under:
             (1)  Subchapter J, Chapter 49, Water Code;
             (2)  Subchapter H, Chapter 65, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, or
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond; or
             (3)  the legality or operation of the district or its
board. (New; Acts 76th Leg., R.S., Ch. 1321, Sec. 4.)
[Sections 7207.005-7207.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.7207.051.COMPOSITION OF BOARD; TERMS. (a)  The
district is governed by a board of seven directors.
       (b)  Directors serve staggered terms of four years.  (Acts
76th Leg., R.S., Ch. 1321, Secs. 7(a), (d).)
       Sec.7207.052.DIRECTORS'ELECTION. (a)  An election shall
be held in the district to elect the appropriate number of directors
to the board on the uniform election date in May of each
even-numbered year.
       (b)  The board may assign a position to each director's
office. If positions are assigned, directors shall subsequently be
elected by position and not at large.  (Acts 76th Leg., R.S., Ch.
1321, Sec. 10.)
[Sections 7207.053-7207.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.7207.101.SPECIAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, functions, and duties
provided by general law applicable to a special utility district
created under Section 59, Article XVI, Texas Constitution,
including those provided by Chapters 49 and 65, Water Code.  (Acts
76th Leg., R.S., Ch. 1321, Sec. 6(a) (part).)
       Sec.7207.102.GENERAL CONTRACT POWERS.  The district may
contract for:
             (1)  purchasing or selling raw or treated water;
             (2)  transporting, treating, or disposing of the
district's domestic, industrial, or communal waste;
             (3)  transporting, treating, or disposing of domestic,
industrial, or communal waste of others as provided by Chapter 30,
Water Code;
             (4)  purchasing, leasing, using, managing,
controlling, or operating a water treatment or distribution
facility or a sewer collection and treatment facility, including
all or part of a facility or system owned by another political
subdivision; or
             (5)  planning, surveying, investigating, or preparing
a report of any kind. (Acts 76th Leg., R.S., Ch. 1321, Sec. 11(b).)
       Sec.7207.103.WATER RIGHTS. The district may acquire,
develop, and use rights to groundwater or surface water.  (Acts 76th
Leg., R.S., Ch. 1321, Sec. 11(c).)
       Sec. 7207.104.  WATER OR SEWER SYSTEM ACQUISITION OR
CONSTRUCTION. (a)  In this section, "system" means a water system,
sewer system, or water and sewer system.
       (b)  The district may:
             (1)  acquire a system that serves all or part of the
territory located inside or outside the district;
             (2)  construct a system; or
             (3)  improve or extend a system the district acquires.
       (c)  A construction contract is governed by the competitive
bidding requirements of the Water Code.
       (d)  An existing contract for the acquisition of a water or
sewer facility may be made on terms agreed to by the parties.  (Acts
76th Leg., R.S., Ch. 1321, Sec. 13.)
       Sec.7207.105.STANDARD SPECIFICATIONS FOR FACILITIES. (a)
The district by rule may establish standard specifications for
facilities designed or constructed to:
             (1)  store, treat, or transport water for domestic,
municipal, or industrial purposes;
             (2)  collect, treat, and dispose of sewage; or
             (3)  dispose of solid waste.
       (b)  The board shall hold a public hearing on the adoption of
standards for district facilities. The board shall give notice of
the hearing to the Texas Commission on Environmental Quality and
shall publish notice of the hearing in a newspaper with general
circulation in the district not later than the 10th day before the
date set for the hearing.
       (c)  An appeal of an order adopting standard specifications
may be made to a district court of Liberty County. The substantial
evidence rule applies to the appeal.
       (d)  The district may seek an injunction against the
construction of, addition to, or operation of a facility in the
district's jurisdiction if the construction, addition, or
operation does not comply with the district's standard
specifications.
       (e)  A specification adopted under this section does not
apply inside the boundaries or extraterritorial jurisdiction of a
municipality unless the governing body of the municipality by
resolution gives its approval.
       (f)  The district shall file the standard specifications
with the Texas Commission on Environmental Quality. (Acts 76th
Leg., R.S., Ch. 1321, Sec. 12.)
       Sec.7207.106.REVENUE BONDS. (a)  The district may issue
bonds to provide for improvements and the maintenance of those
improvements necessary to achieve the purposes of Section 59,
Article XVI, Texas Constitution.
       (b)  The district shall provide for the payment of the bonds
solely through revenue collected to pay the bonds as authorized by
Chapter 65, Water Code. (Acts 76th Leg., R.S., Ch. 1321, Sec. 11(a)
(part).)
CHAPTER 7208. PARKER COUNTY UTILITY DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7208.001.  DEFINITIONS
Sec. 7208.002.  NATURE OF DISTRICT
Sec. 7208.003.  PURPOSE
Sec. 7208.004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 7208.005.  DISTRICT TERRITORY
Sec. 7208.006.  EXISTING OBLIGATIONS AND RIGHTS OF
                 OTHER ENTITIES PRESERVED
[Sections 7208.007-7208.050 reserved for expansion]
SUBCHAPTER B. ADDING TERRITORY OR NEW MEMBER ENTITIES
Sec. 7208.051.  ADDING TERRITORY OF MEMBER ENTITIES
Sec. 7208.052.  ADDING NEW MEMBER ENTITIES
Sec. 7208.053.  APPOINTMENT OF DIRECTORS BY NEW MEMBER
                 ENTITY
[Sections 7208.054-7208.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 7208.101.  GOVERNING BODY
Sec. 7208.102.  TERMS
Sec. 7208.103.  APPOINTMENT OF DIRECTORS
Sec. 7208.104.  QUALIFICATIONS FOR OFFICE
Sec. 7208.105.  EX OFFICIO DIRECTORS
Sec. 7208.106.  VACANCY
Sec. 7208.107.  REMOVAL FROM OFFICE
Sec. 7208.108.  COMPENSATION; EXPENSES
Sec. 7208.109.  OFFICERS
Sec. 7208.110.  MEETINGS
Sec. 7208.111.  QUORUM
Sec. 7208.112.  VOTING REQUIREMENTS
Sec. 7208.113.  CONFLICT OF INTEREST
Sec. 7208.114.  DISTRICT EMPLOYEES
Sec. 7208.115.  BYLAWS
Sec. 7208.116.  CUSTOMER ADVISORY COUNCIL
[Sections 7208.117-7208.150 reserved for expansion]
SUBCHAPTER D.  POWERS AND DUTIES
Sec. 7208.151.  GENERAL POWERS AND DUTIES OF DISTRICT
Sec. 7208.152.  RULES
Sec. 7208.153.  RULES RELATING TO WATER QUALITY
Sec. 7208.154.  GENERAL WASTE AND WATER POWERS
Sec. 7208.155.  PERMITS
Sec. 7208.156.  GENERAL CONTRACTING AUTHORITY
Sec. 7208.157.  CONTRACTS WITH DISTRICT FOR WASTEWATER
                 AND OTHER UTILITY SERVICES
Sec. 7208.158.  AUTHORITY OF OTHER ENTITIES TO CONTRACT
                 WITH DISTRICT
Sec. 7208.159.  JOINT AGREEMENTS
Sec. 7208.160.  WASTEWATER AND OTHER NECESSARY
                 UTILITIES AND SERVICES
Sec. 7208.161.  CONSTRUCTION OR ACQUISITION OF WORKS
                 AND FACILITIES
Sec. 7208.162.  WASTE DISPOSAL SYSTEMS
Sec. 7208.163.  SERVICES PROVIDED OUTSIDE SERVICE AREA
Sec. 7208.164.  RIGHT OF EMINENT DOMAIN
Sec. 7208.165.  COSTS OF RELOCATING OR ALTERING
                 PROPERTY
Sec. 7208.166.  REGULATORY POWER OF MUNICIPALITIES
Sec. 7208.167.  STATE SUPERVISION
Sec. 7208.168.  RIGHTS AND DUTIES ASSUMED ON CREATION
                 OF DISTRICT
[Sections 7208.169-7208.200 reserved for expansion]
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 7208.201.  AUDITS
Sec. 7208.202.  DEPOSITORY
Sec. 7208.203.  INVESTMENT OF DISTRICT MONEY
Sec. 7208.204.  RATES, FEES, CHARGES, AND RENTALS
Sec. 7208.205.  ADMINISTRATION AND PLANNING COSTS FEE
Sec. 7208.206.  IMPOSITION OF AD VALOREM TAXES
                 PROHIBITED
Sec. 7208.207.  DISTRICT PROPERTY AND PROJECTS EXEMPT
                 FROM TAXATION AND ASSESSMENT
[Sections 7208.208-7208.250 reserved for expansion]
SUBCHAPTER F. BONDS
Sec. 7208.251.  AUTHORITY TO ISSUE BONDS
Sec. 7208.252.  ELECTION NOT REQUIRED
Sec. 7208.253.  BONDS EXEMPT FROM TAXATION
Sec. 7208.254.  PAYMENT AND SECURITY
Sec. 7208.255.  MATURITY
Sec. 7208.256.  INTEREST RATE
Sec. 7208.257.  ADDITIONAL BONDS
Sec. 7208.258.  USE OF BOND PROCEEDS
Sec. 7208.259.  NEGOTIABLE INSTRUMENTS
CHAPTER 7208. PARKER COUNTY UTILITY DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.7208.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Bond" means any interest-bearing obligation,
including a bond, note, debenture, certificate, warrant, security,
interim certificate or receipt, or other evidence of debt issued by
the district, whether general or special, negotiable or
nonnegotiable in form, in bearer or registered form, temporary or
permanent in form, or with or without interest coupons.
             (3)  "Customer" means a wholesale user of wastewater or
other services provided by the district.
             (4)  "Director" means a member of the board.
             (5)  "District" means the Parker County Utility
District No. 1.
             (6)  "Local government" means a municipality, a county,
or an entity created under Section 52, Article III, or Section 59,
Article XVI, Texas Constitution.
             (7)  "Member entity" means a public entity or private
utility entity that:
                   (A)  provides retail utility service or regulates
water, wastewater, sewage, or solid waste in the district; and
                   (B)  enters into a contract with the district for
service.
             (8)  "Participant entity" means a public entity or
private utility entity that:
                   (A)  provides utility service inside the
boundaries of the entity; and
                   (B)  contracts with the district for the
construction of and payment for wastewater or other utility service
projects to be financed or provided by the district.
             (9)  "Service area" means the territory inside the
district and inside the corporate limits or defined boundaries of
all member entities, participant entities, and customers of the
district, including the areas served by the member entities,
participant entities, and customers.  (Acts 75th Leg., R.S., Ch.
1273, Secs. 1.02(1), (2), (3), (4), (5), (6), (7), (8), (10).)
       Sec.7208.002.NATURE OF DISTRICT.  The district is a
regional wastewater district created under Section 59, Article XVI,
Texas Constitution, and is essential to accomplish the purposes of
that provision.  (Acts 75th Leg., R.S., Ch. 1273, Sec. 1.01.)
       Sec.7208.003.PURPOSE. The district is created to:
             (1)   purchase, own, hold, lease, or otherwise acquire
wastewater collection facilities;
             (2)   build, operate, and maintain facilities to treat
and transport wastewater;
             (3)   protect, preserve, and restore the purity and
sanitary condition of water in the district; and
             (4)   provide other utilities in the district if the
utilities are not otherwise provided. (Acts 75th Leg., R.S., Ch.
1273, Sec. 1.03.)
       Sec.7208.004.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
All land and other property included in the district will benefit
from the improvements, works, and projects that are to be
accomplished by the district under the powers conferred by this
chapter and Section 59, Article XVI, Texas Constitution.
       (b)  The district benefits the state by:
             (1)  contributing to economic development and
diversification;
             (2)  decreasing the rates of unemployment and
underemployment;
             (3)  stimulating agricultural innovation;
             (4)  fostering enterprise growth based on agriculture;
and
             (5)  contributing to the development or expansion of
transportation and commerce.
       (c)  The accomplishment of the purposes of the district
benefits the people, property, and industry of the state.  The
district is performing an essential public function under the Texas
Constitution by accomplishing the purposes of the district.  (Acts
75th Leg., R.S., Ch. 1273, Secs. 1.06, 1.07, 4.03 (part).)
       Sec.7208.005.DISTRICT TERRITORY. (a)  The district is
composed of the territory described by Section 1.04, Chapter 1273,
Acts of the 75th Legislature, Regular Session, 1997, as that
territory may have been modified under:
             (1)  Subchapter B or its predecessor statutes, Sections
2.17 and 6.01, Chapter 1273, Acts of the 75th Legislature, Regular
Session, 1997;
             (2)  Subchapter J, Chapter 49, Water Code;
             (3)  Subchapter H, Chapter 54, Water Code;
             (4)  Subchapter H, Chapter 65, Water Code; or
             (5)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, or
validity; or
             (2)  the legality or operation of the district or its
board. (Acts 75th Leg., R.S., Ch. 1273, Sec. 1.05; New.)
       Sec. 7208.006.  EXISTING OBLIGATIONS AND RIGHTS OF OTHER
ENTITIES PRESERVED.  This chapter does not alter any existing
permit, contract, or other obligation or impair the right of any
entity to own, operate, maintain, or otherwise use, provide, or
control water, wastewater, solid waste, or liquid waste under the
entity's governing law.  (Acts 75th Leg., R.S., Ch. 1273, Sec.
3.02(e).)
[Sections 7208.007-7208.050 reserved for expansion]
SUBCHAPTER B. ADDING TERRITORY OR NEW MEMBER ENTITIES
       Sec.7208.051.ADDING TERRITORY OF MEMBER ENTITIES. On
request by a member entity, the district boundaries may be expanded
to include additional or the remaining territory of the member
entity if:
             (1)  the boundaries of the member entity are contiguous
to the district boundaries; and
             (2)  the requested expansion is approved by a
three-fourths majority vote of the board. (Acts 75th Leg., R.S.,
Ch. 1273, Sec. 2.17.)
       Sec.7208.052.ADDING NEW MEMBER ENTITIES. (a) On receipt
of a petition submitted by the governing body of a local government,
another political subdivision, or a private entity, including a
water supply corporation, the board may add a member entity to the
district as provided by this section.
       (b)  A petition must be submitted in the manner and form
required by the district bylaws.
       (c)  On receipt of a petition, the board shall give notice
and hold a hearing on the petition to determine if adding the member
entity to the district:
             (1)  will benefit the territory or service area in the
member entity; and
             (2)  is in the best interests of the district.
       (d)  If the board determines that the proposed member entity
should be added to the district, the board shall issue an order:
             (1)  adding the proposed member entity and its
territory or service area to the district;
             (2)  making the member entity and its territory or
service area subject to the privileges, duties, assets, and
financial obligations of the district in the same manner as other
member entities; and
             (3)  requiring the member entity to reimburse the
existing member entities or directly reimburse the district an
amount that is an equitable pro rata share of the costs paid by the
existing member entities or the district in creating and operating
the district.  (Acts 75th Leg., R.S., Ch. 1273, Sec. 6.01.)
       Sec. 7208.053.  APPOINTMENT OF DIRECTORS BY NEW MEMBER
ENTITY. If the board issues an order under Section 7208.052(d)
adding a member entity to the district, the governing body of the
member entity shall appoint the appropriate number of directors to
the board as provided by Section 7208.103.  (Acts 75th Leg., R.S.,
Ch. 1273, Sec. 6.02.)
[Sections 7208.054-7208.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS
       Sec.7208.101.GOVERNING BODY. The district is governed by
a board of directors. The board has exclusive authority to manage
the district. (Acts 75th Leg., R.S., Ch. 1273, Secs. 2.01(a),
2.07.)
       Sec.7208.102.TERMS. Directors serve staggered four-year
terms beginning May 1 of the year in which the director is
appointed. (Acts 75th Leg., R.S., Ch. 1273, Secs. 2.01(h) (part),
(i) (part).)
       Sec.7208.103.APPOINTMENT OF DIRECTORS.  (a)  Not earlier
than April 1 or later than April 30 of each year, the appropriate
number of directors, if any, shall be appointed to the board as
provided by Subsection (b).
       (b)  Each member entity shall appoint:
             (1)  one director if the number of member entities is at
least six;
             (2)  two directors if the number of member entities is
at least three but less than six;
             (3)  three directors if there are two member entities;
or
             (4)  six directors if there is one member entity.
       (c)  A participant entity or customer may not appoint a
director.
       (d)  The appointment of a director is not valid unless the
appointment is made as provided by this subchapter. (Acts 75th
Leg., R.S., Ch. 1273, Secs. 2.01(f), (g), (l), (m).)
       Sec.7208.104.QUALIFICATIONS FOR OFFICE.  A person is
qualified to serve as a director if the person:
             (1)  is at least 18 years of age;
             (2)  is a qualified voter who resides in the district;
             (3)  qualifies to serve as a director by taking the oath
of office;
             (4)  is eligible to serve as a director under
Subchapter C, Chapter 49, Water Code, except as otherwise provided
by this section; and
             (5)  verifies compliance with the requirements of this
section.  (Acts 75th Leg., R.S., Ch. 1273, Sec. 2.03.)
       Sec.7208.105.EX OFFICIO DIRECTORS.  (a)  The county judge
of Parker County, or a person designated by that judge, serves as an
ex officio director. An ex officio director may vote on any matter
considered by the board.
       (b)  The board may appoint or elect other ex officio
directors and provide for the powers and duties of ex officio
directors in the bylaws or rules of the district.  (Acts 75th Leg.,
R.S., Ch. 1273, Secs. 2.01(d), 2.06.)
       Sec.7208.106.VACANCY. (a) Any time after a board vacancy
occurs, the governing body of the appropriate member entity shall
fill the vacancy by appointment.
       (b)  The member entity shall provide notice of the
appointment to the board not later than six hours before the first
board meeting following the appointment.
       (c)  The appointment is effective on the date notice is
received by the board. If the notice is not provided, the
appointment is not effective until after the first board meeting
following the appointment. (Acts 75th Leg., R.S., Ch. 1273, Sec.
2.01(k).)
       Sec.7208.107.REMOVAL FROM OFFICE. A director may be
removed for any reason:
             (1)  by the governing body of the member entity that
appointed the director; or
             (2)  if three-fourths of the directors vote to remove
the director. (Acts 75th Leg., R.S., Ch. 1273, Sec. 2.02.)
       Sec.7208.108.COMPENSATION; EXPENSES. (a) Except as
provided by Subsection (b), a director may not receive compensation
for serving on the board.
       (b)  A director may receive reimbursement for travel or other
expenses reasonably incurred by the director while acting on behalf
of the district. The board may adopt reasonable policies governing
the reimbursement of director expenses, including a requirement
that the director provide written verification of expenses. (Acts
75th Leg., R.S., Ch. 1273, Sec. 2.05.)
       Sec.7208.109.OFFICERS.  (a)  Each year at the first board
meeting following the appointment of directors under Section
7208.103, the board shall elect from its members a president, a vice
president, a secretary, a treasurer, and any other officer the
board determines is necessary.
       (b)  The president is the chief executive officer of the
district.
       (c)  The vice president may perform the duties and exercise
the powers of the president if the president is absent or fails,
refuses, or is unable to act.
       (d)  The board secretary or an assistant secretary:
             (1)  shall keep a record of the minutes of board
meetings;
             (2)  shall maintain the official district records; and
             (3)  may certify the accuracy and authenticity of any
actions, proceedings, minutes, or records of the board or the
district.
       (e)  The board may provide for additional powers and duties
of elected officers in the district bylaws.
       (f)  Officers serve until the election of new officers.  
(Acts 75th Leg., R.S., Ch. 1273, Secs. 2.09(a) (part), (c), (d),
2.10.)
       Sec.7208.110.MEETINGS. The board shall hold regular and,
if necessary, special and emergency board meetings. The board shall
hold board meetings at a time and place specified in the district
bylaws. (Acts 75th Leg., R.S., Ch. 1273, Secs. 2.08(a) (part),
(c).)
       Sec.7208.111.QUORUM. (a)  A quorum of the directors is
required to be present at a board meeting for the board to conduct
district business.
       (b)  The board shall specify in the district bylaws the
number of directors that constitute a quorum.  A quorum may not be
less than a majority of the directors serving on the board. (Acts
75th Leg., R.S., Ch. 1273, Sec. 2.14(a).)
       Sec.7208.112.VOTING REQUIREMENTS. (a)  The board shall
specify in the district bylaws the number of votes necessary to
approve a matter considered by the board.  The number of votes
specified may not be less than a majority of the directors present
at the meeting at which the matter is being considered.
       (b)  A director, including the president, may vote on any
matter considered by the board, including a matter authorizing a
financial commitment to a capital project. This subsection applies
even if the director was appointed by a member entity that is not
participating in the project being considered by the board. (Acts
75th Leg., R.S., Ch. 1273, Secs. 2.04, 2.14(b).)
       Sec.7208.113.CONFLICT OF INTEREST. District directors
and officers are subject to Chapter 572, Government Code. (Acts
75th Leg., R.S., Ch. 1273, Sec. 2.12.)
       Sec.7208.114.DISTRICT EMPLOYEES. The board may appoint
and employ any person that the board determines is necessary to
conduct the affairs of the district, including a general manager,
engineer, attorney, financial advisor, accountant, or other
consultant.  (Acts 75th Leg., R.S., Ch. 1273, Sec. 2.11.)
       Sec.7208.115.BYLAWS. The board shall adopt bylaws to
govern matters of the district. (Acts 75th Leg., R.S., Ch. 1273,
Sec. 2.08(a) (part).)
       Sec.7208.116.CUSTOMER ADVISORY COUNCIL. (a) The board
may establish a customer advisory council that consists of one
representative of each customer of the district.
       (b)  A representative serving on the customer advisory
council:
             (1)  has the powers and duties provided in the bylaws
and rules of the district; and
             (2)  may not vote on any matter considered by the board.
       (c)  The board may abolish the customer advisory council.
(Acts 75th Leg., R.S., Ch. 1273, Sec. 2.15.)
[Sections 7208.117-7208.150 reserved for expansion]
SUBCHAPTER D.  POWERS AND DUTIES
       Sec.7208.151.GENERAL POWERS AND DUTIES OF DISTRICT.  
Except as provided by Sections 7208.167 and 7208.206, the district
has all the rights, powers, privileges, functions, and duties:
             (1)  provided by general law, including Chapters 49,
54, and 65, Water Code; and
             (2)  conferred by Section 59, Article XVI, Texas
Constitution.  (Acts 75th Leg., R.S., Ch. 1273, Sec. 1.08(a)
(part).)
       Sec.7208.152.RULES.  The board may adopt and enforce
reasonable rules to exercise the powers and perform the duties of
the district as provided by this chapter. (Acts 75th Leg., R.S.,
Ch. 1273, Sec. 2.18.)
       Sec.7208.153.RULES RELATING TO WATER QUALITY. (a) The
district may adopt and enforce rules relating to protection of the
quality of water flowing to or from the areas in or surrounding a
lake, reservoir, or other source of water supply owned, operated,
or controlled by the district.
       (b)  A rule adopted by the district under this section must:
             (1)  relate to:
                   (A)  preventing waste or unauthorized use of water
controlled by the district; or
                   (B)  regulating privileges on land, a reservoir,
or an easement owned or controlled by the district; and
             (2)  be consistent with rules of the state. (Acts 75th
Leg., R.S., Ch. 1273, Sec. 3.09.)
       Sec.7208.154.GENERAL WASTE AND WATER POWERS.  The
district may:
             (1)  provide for:
                   (A)  the collection, construction, improvement,
maintenance, and operation of wholesale wastewater and water
systems and treatment works necessary to provide wholesale service
to customers; and
                   (B)  the acquisition, construction, improvement,
and maintenance of a water supply or reservoir, or an interest in a
water supply or reservoir, necessary to exercise and fulfill the
powers and duties of the district;
             (2)  supply water for municipal, domestic, and
industrial or other beneficial uses or controls;
             (3)  collect, treat, process, dispose of, and control
all domestic or industrial wastes, whether in fluid, solid, or
composite state;
             (4)  gather, conduct, divert, control, and treat local
storm water or local harmful excesses of water in the district; and
             (5)  irrigate and alter land elevations in the district
as needed. (Acts 75th Leg., R.S., Ch. 1273, Sec. 3.05.)
       Sec.7208.155.PERMITS.  The district may acquire a water
appropriation or other necessary permit from the state or a permit
owner.  (Acts 75th Leg., R.S., Ch. 1273, Sec. 3.12(c).)
       Sec.7208.156.GENERAL CONTRACTING AUTHORITY. (a) If
necessary to exercise the powers and accomplish the purposes of the
district, the district may contract with the United States, a
municipality, a county, a water supply corporation, an entity
created under Section 52, Article III, or Section 59, Article XVI,
Texas Constitution, or another public or private entity.
       (b)  The district may contract for the acquisition, rental,
lease, or operation of wastewater or water facilities owned or
operated by the party contracting with the district.
       (c)  A contract that requires payment of money by the
district may be satisfied from any general or specific source of
district money as determined by the board. (Acts 75th Leg., R.S.,
Ch. 1273, Secs. 3.12(a), (b), (d).)
       Sec. 7208.157.  CONTRACTS WITH DISTRICT FOR WASTEWATER AND
OTHER UTILITY SERVICES. (a) Except as provided by Subsection (b),
this chapter does not require a customer or prospective customer of
the district to secure wastewater or other utility service from the
district unless the customer or prospective customer contracts with
the district for that purpose.
       (b)  A customer or prospective customer is required to secure
wastewater or other utility service from the district if:
             (1)  the customer or prospective customer is not
receiving the service from another source; and
             (2)  the district provides the service or determines
that the district will make the service available to the customer or
prospective customer.
       (c)  If a customer contracts with the district to secure
wastewater or other utility service from the district, a user of the
service under the contract must connect to the district's service
system if:
             (1)  the user is located inside the boundaries of the
customer; and
             (2)  the district's system is available for connection
at or near the property line of the user.
       (d)  A contract under this section may authorize the district
to:
             (1)  require the customer to terminate service provided
to a user who fails or refuses to pay for that service after
providing notice as required by law;
             (2)  terminate service provided to a customer or user
who fails or refuses to pay for that service after providing notice
as required by law; and
             (3)  terminate other utility services provided to a
customer or user if the customer or user fails or refuses to pay for
any service provided by the district after providing notice as
required by law.  (Acts 75th Leg., R.S., Ch. 1273, Secs. 3.02(a),
(b), (c), (d).)
       Sec. 7208.158.  AUTHORITY OF OTHER ENTITIES TO CONTRACT WITH
DISTRICT. (a) A municipality, county, public agency, or political
subdivision of the state, an entity created under Section 52,
Article III, or Section 59, Article XVI, Texas Constitution, or a
water supply corporation may contract with the district if the
entity is conducting business wholly or partly inside the district.
       (b)  The governing body of an entity that contracts with the
district under this section may pledge to the payment of the
contract any source of revenue available to the governing body,
including revenue from ad valorem taxes.
       (c)  If an entity under this section pledges to the payment
of a contract money from the entity's water system, wastewater
system, or combined water and wastewater system, the payments are
an operating expense of that system. (Acts 75th Leg., R.S., Ch.
1273, Sec. 3.13.)
       Sec.7208.159.JOINT AGREEMENTS. To accomplish the
objectives and exercise the powers of the district, the district
may enter into a joint agreement or contract with a water supply
corporation, a municipality, an entity created under Section 52,
Article III, or Section 59, Article XVI, Texas Constitution, a
county, a political subdivision of the state, the state, or another
private or public entity. (Acts 75th Leg., R.S., Ch. 1273, Sec.
3.15 (part).)
       Sec. 7208.160.  WASTEWATER AND OTHER NECESSARY UTILITIES AND
SERVICES. (a) The district may provide wastewater collection,
treatment, or service in the district.
       (b)  The district may own, operate, and provide other
necessary utilities and services in the district, including raw
water, potable water, water distribution and treatment, solid waste
collection and disposal, fire, police, and ambulance services, if:
             (1)  the right to own, operate, or provide the utility
or service has not been conveyed to another entity; or
             (2)  the entity to which the right has been conveyed
agrees to sell, cede, or otherwise convey to the district the right
to own, operate, or provide the utility or service.
       (c)  Subsection (b) does not require the district to own,
operate, or provide other necessary utilities or services in the
district unless the district is required to own, operate, or
provide the utility or service under a permit, certificate, or
license issued by the state. (Acts 75th Leg., R.S., Ch. 1273, Sec.
3.01.)
       Sec. 7208.161.  CONSTRUCTION OR ACQUISITION OF WORKS AND
FACILITIES. The district may plan, lay out, construct, acquire,
own, operate, maintain, repair, improve, or contract for, inside or
outside the district, any works, improvements, facilities, plants,
equipment, and appliances, including any administrative property
and facilities, any permits, franchises, licenses, or contract or
property rights, and any levees, drains, waterways, lakes,
reservoirs, channels, conduits, sewers, dams, storm water
detention facilities, treatment plants, or other similar
facilities and improvements, whether for municipal, industrial,
agricultural, flood control, or related purposes, that are
necessary, helpful, or incidental to the exercise of any right,
power, privilege, or function provided by this chapter. (Acts 75th
Leg., R.S., Ch. 1273, Sec. 3.03.)
       Sec.7208.162.WASTE DISPOSAL SYSTEMS. (a) The district
may establish, acquire, operate, or maintain a regional solid waste
disposal system or a nonhazardous liquid waste disposal system.
       (b)  If the district establishes a disposal system under  
this section, the district shall provide services from the system
to:
             (1)  users as determined by the board if the services
are provided inside the district's service area; and
             (2)  customers if the services are provided outside the
district's service area.  (Acts 75th Leg., R.S., Ch. 1273, Sec.
3.08.)
       Sec.7208.163.SERVICES PROVIDED OUTSIDE SERVICE AREA. The
district may provide services outside the district's service area
as provided by state law. (Acts 75th Leg., R.S., Ch. 1273, Sec.
3.07.)
       Sec.7208.164.RIGHT OFEMINENT DOMAIN. (a) The district
may acquire by eminent domain land, an easement, a right-of-way, or
other property or improvement inside or outside the district if
necessary or appropriate in exercising the powers and performing
the functions of the district.
       (b)  The district may exercise the power of eminent domain as
provided by state law, including Chapter 21, Property Code, except
that the district is not required to comply with Section 21.021(a),
Property Code, during the pendency of the subject litigation.
       (c)  In a condemnation proceeding brought by the district,
the district is not required to:
             (1)  pay in advance or give bond or other security for
costs;
             (2)  give bond for the issuance of a temporary
restraining order or a temporary injunction; or
             (3)  give bond for costs or supersedeas on an appeal or
writ of error.
       (d)  The district may not exercise the power of eminent
domain to acquire:
             (1)  property located in the existing corporate limits
of a municipality that is located wholly or partly inside the
district unless the governing body of the municipality in which the
property is located consents by resolution to the acquisition of
the property;
             (2)  property located outside the district to be used
as a water supply reservoir unless the county in which the reservoir
is to be located consents;
             (3)  property owned by a county, a municipality, an
entity created by special act of the legislature under Section 52,
Article III, or Section 59, Article XVI, Texas Constitution, a
political subdivision of the state, or an agency or instrumentality
of a county or municipality; or
             (4)  a waterworks system or a wastewater system owned
by a municipality, an entity created by special act of the
legislature under Section 52, Article III, or Section 59, Article
XVI, Texas Constitution, a political subdivision of the state, a
private party, or a nonprofit corporation.  (Acts 75th Leg., R.S.,
Ch. 1273, Secs. 3.06(a), (b), (c), (d).)
       Sec.7208.165.COSTS OF RELOCATING OR ALTERING PROPERTY.  
If the district exercises the power of eminent domain and requires
relocating, raising, lowering, rerouting, changing the grade of, or
altering the construction of any railroad, highway, pipeline, or
electric transmission and electric distribution, telegraph, or
telephone lines, conduits, poles, or facilities, the district shall
pay the cost of relocating, raising, lowering, rerouting, changing
the grade, or altering the construction that equals the comparable
replacement cost without enhancement of facilities minus the net
salvage value derived from the old facility. (Acts 75th Leg., R.S.,
Ch. 1273, Sec. 3.06(e).)
       Sec.7208.166.REGULATORY POWER OF MUNICIPALITIES. The
district and the land in the district are subject to any ordinance,
code, resolution, or rule, including any platting or zoning
requirement, of a municipality that has jurisdiction over territory
in the district. (Acts 75th Leg., R.S., Ch. 1273, Sec. 3.11.)
       Sec.7208.167.STATE SUPERVISION.  (a)  The rights, powers,
privileges, functions, and duties of the district are subject to
the continuing right of supervision by this state exercised by the
Texas Commission on Environmental Quality.
       (b)  Except as otherwise provided by this chapter or other
law, the district may exercise the rights, powers, privileges,
functions, and duties conferred by this chapter without obtaining
approval from the Texas Commission on Environmental Quality. (Acts
75th Leg., R.S., Ch. 1273, Sec. 1.08(c).)
       Sec. 7208.168.  RIGHTS AND DUTIES ASSUMED ON CREATION OF
DISTRICT.  The district may succeed to and assume the rights,
privileges, and duties, including contractual obligations, of the
Walnut Creek Special Utility District and the City of Springtown
relating to the creation of the district. (Acts 75th Leg., R.S.,
Ch. 1273, Sec. 4.02(b).)
[Sections 7208.169-7208.200 reserved for expansion]
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
       Sec.7208.201.AUDITS. All funds and accounts of the
district shall be audited by an independent auditor.  The district
shall maintain a copy of the audit in the district's official
records. (Acts 75th Leg., R.S., Ch. 1273, Sec. 4.01.)
       Sec.7208.202.DEPOSITORY. The board, by order or
resolution, shall designate one or more banks inside or outside the
district to serve as depository for district money.  Except as
provided by this chapter, district money shall be deposited in a
depository bank designated under this section.  (Acts 75th Leg.,
R.S., Ch. 1273, Secs. 3.14(a), (b).)
       Sec.7208.203.INVESTMENT OF DISTRICT MONEY.  The board may
invest district money:
             (1)  in the same manner as provided for the investment
of county money; and
             (2)  as provided by Chapter 2256, Government Code.
(Acts 75th Leg., R.S., Ch. 1273, Sec. 3.14(c).)
       Sec.7208.204.RATES, FEES, CHARGES, AND RENTALS. (a)
District rates, fees, and charges assessed to provide services and
facilities to customers and users of the district may vary
according to customer class, project, or service area to reflect
different costs of providing service.
       (b)  The district may require a customer to obtain a deposit
from a user for services or facilities provided by the district. A
deposit under this subsection may bear interest.
       (c)  If the district issues bonds payable wholly from
revenue, the board shall establish and revise rates of compensation
for water sold and wastewater or other services rendered by the
district that are sufficient:
             (1)  to pay operating and maintenance expenses of
district facilities;
             (2)  to pay the issued bonds as the bonds mature and the
interest that accrues on the bonds;
             (3)  to maintain the district's fund reserve; and
             (4)  to maintain other funds of the district provided
by the resolution that authorized the issuance of the bonds.
       (d)  A local government, water supply corporation, or other
entity that contracts with the district may:
             (1)  establish, charge, and collect fees, rates,
charges, rentals, or other amounts for services or facilities
provided under the contract; and
             (2)  pledge amounts that are sufficient to make the
required payments under the contract. (Acts 75th Leg., R.S., Ch.
1273, Secs. 3.10(a) (part), (b), (c), (d).)
       Sec.7208.205.ADMINISTRATION AND PLANNING COSTS FEE. (a)
The district may charge each member entity an annual pro rata fee to
pay for administration and planning costs incurred by the district
that are unrelated to capital projects financed by the district.
       (b)  The fee may not exceed $2 per capita population of the
member entity unless the board and at least 75 percent of the member
entities of the district that together have at least 75 percent of
the population of the district agree to a different fee. (Acts 75th
Leg., R.S., Ch. 1273, Sec. 2.16.)
       Sec. 7208.206.  IMPOSITION OF AD VALOREM TAXES
PROHIBITED.  The district may not impose an ad valorem tax. (Acts
75th Leg., R.S., Ch. 1273, Sec. 1.08(b).)
       Sec. 7208.207.  DISTRICT PROPERTY AND PROJECTS EXEMPT FROM
TAXATION AND ASSESSMENT. The district is not required to pay a tax
or assessment on any property or project owned, operated, leased,
or controlled by the district. (Acts 75th Leg., R.S., Ch. 1273,
Sec. 4.03 (part).)
[Sections 7208.208-7208.250 reserved for expansion]
SUBCHAPTER F. BONDS
       Sec.7208.251.AUTHORITY TO ISSUE BONDS. The district may
issue bonds as provided by Chapters 1201 and 1371, Government Code,
to provide money for the district to exercise its powers and carry
out its purposes.  (Acts 75th Leg., R.S., Ch. 1273, Secs. 5.01(a),
5.06(b).)
       Sec.7208.252.ELECTION NOT REQUIRED.  The district may
issue bonds without holding an election. (Acts 75th Leg., R.S., Ch.
1273, Sec. 5.01(b).)
       Sec.7208.253.BONDS EXEMPT FROM TAXATION. Bonds issued by
the district, the transfer of the bonds, and income from those
bonds, including profits made on the sale of the bonds, are exempt
from taxation in this state. (Acts 75th Leg., R.S., Ch. 1273, Sec.
4.03 (part).)
       Sec.7208.254.PAYMENT AND SECURITY.  (a) District bonds
may be:
             (1)  made payable from all or part of the revenue of the
district derived from any lawful source, including revenue derived
from a contract with a customer or other user of facilities owned or
operated by the district or from the ownership and operation of any
waterworks system, wastewater system, sewer system, solid waste
disposal system, or nonhazardous liquid waste system, or a
combination of those systems; and
             (2)  paid from and secured by liens on the pledges of
all or part of the revenue, income, or receipts derived from the
district's ownership, operation, lease, or sale of the property,
buildings, structures, or facilities, including the proceeds or
revenue from contracts with any person.
       (b)  District bonds may be additionally secured by a mortgage
or deed of trust on real property owned or to be acquired by the
district and by a chattel mortgage or lien on any personal property
appurtenant to that real property. The board may authorize the
execution of a trust indenture, mortgage, deed of trust, or other
form of encumbrance. The district may also pledge to the payment of
the bonds all or part of a grant, a donation, or revenue or income
received or to be received from the United States or any public or
private source.
       (c)  The district may pledge all or part of the district's
revenue, income, or receipts from fees, rentals, rates, charges, or
contract proceeds or payments to the payment of district bonds,
including the payment of principal, interest, and any other amount
required or permitted relating to the bonds. The pledged fees,
rentals, rates, charges, proceeds, or payments shall be established
and collected in amounts sufficient, together with any other
pledged resources, to provide for the payment of expenses relating
to the bonds and for operation and maintenance and other expenses
relating to those facilities.
       (d)  For purposes of Subsections (a) and (c), payments and
revenue pledged for the district's benefit under Sections
7208.158(a) and (b) are district revenue.  (Acts 75th Leg., R.S.,
Ch. 1273, Sec. 5.02.)
       Sec.7208.255.MATURITY. District bonds may not have a term
that exceeds 40 years from the date of issuance.  (Acts 75th Leg.,
R.S., Ch. 1273, Sec. 5.03 (part).)
       Sec.7208.256.INTEREST RATE.  District bonds shall bear an
interest rate as provided by the resolution that authorized the
issuance of the bond.  (Acts 75th Leg., R.S., Ch. 1273, Sec. 5.03
(part).)
       Sec.7208.257.ADDITIONAL BONDS.  District bonds may
provide for the subsequent issuance of additional parity bonds or
subordinate lien bonds under terms provided in the resolution that
authorized the issuance of the bond.  (Acts 75th Leg., R.S., Ch.
1273, Sec. 5.03 (part).)
       Sec.7208.258.USE OF BOND PROCEEDS. (a) If permitted in
the resolution that authorized the issuance of the bond, the
proceeds from the sale of the bond may be used:
             (1)  to pay the interest on the bond during the period
of acquisition or construction of facilities to be provided through
the issuance of the bond;
             (2)  to pay the operating and maintenance expenses of
district facilities;
             (3)  to create a reserve fund for the payment of the
principal of and interest on the bond; and
             (4)  in any other manner that is necessary,
appropriate, or convenient to accomplish a district purpose.
       (b)  The proceeds from the sale of a bond may be placed on
time deposit or invested as provided by the resolution that
authorized the issuance of the bond.  (Acts 75th Leg., R.S., Ch.
1273, Sec. 5.05.)
       Sec.7208.259.NEGOTIABLE INSTRUMENTS. Obligations under
this chapter are negotiable instruments for purposes of Chapter 8,
Business & Commerce Code. (Acts 75th Leg., R.S., Ch. 1273, Sec.
5.04.)
       SECTION 1.08.  Subtitle D, Title 6, Special District Local
Laws Code, is amended by adding Chapter 7503 to read as follows:
CHAPTER 7503. DELTA LAKE IRRIGATION DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7503.001.  DEFINITION
Sec. 7503.002.  NATURE OF DISTRICT
Sec. 7503.003.  LEGISLATIVE FINDINGS
Sec. 7503.004.  DISTRICT TERRITORY
[Sections 7503.005-7503.050 reserved for expansion]
SUBCHAPTER B. POWERS
Sec. 7503.051.  GENERAL POWERS
CHAPTER 7503.  DELTA LAKE IRRIGATION DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.7503.001.DEFINITION.  In this chapter, "district"
means the Delta Lake Irrigation District.  (New.)
       Sec.7503.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Willacy and Hidalgo
Counties, Texas, created under Section 59, Article XVI, Texas
Constitution. (Acts 41st Leg., R.S., 1929, Ch. 166, Secs. 1 (part),
2 (part); Acts 54th Leg., R.S., 1955, Ch. 40, Sec. 1.)
       Sec.7503.003.LEGISLATIVE FINDINGS. The legislature finds
that the district is essential to accomplish the purposes of
Section 59, Article XVI, Texas Constitution. (Acts 41st Leg.,
R.S., 1929, Ch. 166, Sec. 14 (part).)
       Sec.7503.004.DISTRICT TERRITORY.  The district is
composed of the territory described by Section 1, Chapter 166, Acts
of the 41st Legislature, Regular Session, 1929, as that territory
may have been modified under:
             (1)  Chapter 25, General Laws, Acts of the 39th
Legislature, Regular Session, 1925 (Article 7880-1 et seq.,
Vernon's Texas Civil Statutes), before August 30, 1971;
             (2)  Chapter 3, General Laws, Acts of the 46th
Legislature, Regular Session, 1939 (Article 7775c-1, Vernon's
Texas Civil Statutes), before August 30, 1971;
             (3)  Subchapter O, Chapter 51, Water Code, before June
19, 1980;
             (4)  Subchapter J, Chapter 49, Water Code;
             (5)  Subchapter N, Chapter 58, Water Code; or
             (6)  other law. (New.)
[Sections 7503.005-7503.050 reserved for expansion]
SUBCHAPTER B. POWERS
       Sec.7503.051.GENERAL POWERS. The district has:
             (1)  the powers of a conservation and reclamation
district under Section 59, Article XVI, Texas Constitution, and the
general laws of this state; and
             (2)  the powers of government and the authority to
exercise the rights, privileges, and functions that are conferred
by this chapter and the general laws of this state. (Acts 41st
Leg., R.S., 1929, Ch. 166, Secs. 1 (part), 2 (part), 14 (part).)
       SECTION 1.09.  Subtitle E, Title 6, Special District Local
Laws Code, is amended by adding Chapter 7802 to read as follows:
CHAPTER 7802. DALLAS COUNTY LEVEE IMPROVEMENT DISTRICT NO. 14
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 7802.001.  DEFINITIONS
Sec. 7802.002.  NATURE OF DISTRICT
Sec. 7802.003.  FINDING OF PUBLIC PURPOSE
Sec. 7802.004.  DISTRICT TERRITORY
Sec. 7802.005.  APPLICABILITY OF OTHER LAW
[Sections 7802.006-7802.050 reserved for expansion]
SUBCHAPTER B.  BOARD OF DIRECTORS AND OFFICERS
Sec. 7802.051.  BOARD
Sec. 7802.052.  TREASURER
[Sections 7802.053-7802.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
Sec. 7802.101.  GENERAL POWERS AND DUTIES OF DISTRICT
Sec. 7802.102.  POWERS AND DUTIES OF BOARD
Sec. 7802.103.  IMPOSITION OF TAXES
                         CHAPTER 7802. DALLAS COUNTY LEVEE IMPROVEMENT DISTRICT NO. 14
SUBCHAPTER A.  GENERAL PROVISIONS
       Sec.7802.001.DEFINITIONS.  In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Dallas County Levee
Improvement District No. 14.  (Acts 72nd Leg., R.S., Ch. 359, Sec.
1.)
       Sec.7802.002.NATURE OF DISTRICT.  The district is a
conservation and reclamation district and a levee improvement
district created under Section 59, Article XVI, Texas Constitution.  
(Acts 45th Leg., R.S., Ch. 306, Secs. 1 (part), 8 (part).)
       Sec.7802.003.FINDING OF PUBLIC PURPOSE.  The district is
essential to accomplish the purposes of Section 59, Article XVI,
Texas Constitution.  (Acts 45th Leg., R.S., Ch. 306, Sec. 8 (part).)
       Sec.7802.004.DISTRICT TERRITORY. The district is
composed of the territory in Dallas County described by Section 1,
Chapter 306, Acts of the 45th Legislature, Regular Session, 1937,
as that territory may have been modified under:
             (1)  Subchapter J, Chapter 49, Water Code; or
             (2)  other law.  (Acts 45th Leg., R.S., Ch. 306, Sec. 1
(part); New.)
       Sec.7802.005.APPLICABILITY OF OTHER LAW. Except as
otherwise provided by this chapter, Chapter 57, Water Code, applies
to the district.  (Acts 72nd Leg., R.S., Ch. 359, Sec. 5(a) (part).)
[Sections 7802.006-7802.050 reserved for expansion]
SUBCHAPTER B.  BOARD OF DIRECTORS AND OFFICERS
       Sec.7802.051.BOARD. (a) The district is governed by a
board of five elected directors.
       (b)  An election shall be held on the uniform election date
in May of each even-numbered year to elect the appropriate number of
directors. Except as provided by Subsection (c), directors serve
four-year terms.
       (c)  The board shall revise each precinct used to elect a
director after each federal decennial census to reflect population
changes. At the first election after the precincts are revised, a
new director shall be elected from each precinct. The directors
shall draw lots to determine which two directors serve two-year
terms and which three directors serve four-year terms.  (Acts 72nd
Leg., R.S., Ch. 359, Secs. 2(a) (part), (d); 7(c).)
       Sec.7802.052.TREASURER. (a)  The board may provide for
the appointment of a treasurer for the district.
       (b)  In addition to the powers and duties provided by other
law, the treasurer has the powers and duties of the county treasurer
under Chapter 57, Water Code.  (Acts 72nd Leg., R.S., Ch. 359, Sec.
3.)
[Sections 7802.053-7802.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
       Sec.7802.101.GENERAL POWERS AND DUTIES OF DISTRICT. The
district has:
             (1)  the powers of government; and
             (2)  the rights, privileges, and functions conferred by
this chapter, by Section 59, Article XVI, Texas Constitution, and
by the general laws of this state relating to levee improvement
districts, including Chapters 49 and 57, Water Code.  (Acts 45th
Leg., R.S., Ch. 306, Secs. 1 (part), 8 (part); New.)
       Sec.7802.102.POWERS AND DUTIES OF BOARD. The board has
the powers and duties delegated to the commissioners court and
county judge under Chapter 57, Water Code.  (Acts 72nd Leg., R.S.,
Ch. 359, Sec. 5(a) (part).)
       Sec.7802.103.IMPOSITION OF TAXES.  (a) The Tax Code
governs the imposition of district taxes.
       (b)  The board may provide for the appointment of a tax
assessor-collector or may contract for the imposition of taxes with
Dallas County or with another person as provided by the Tax Code.  
(Acts 72nd Leg., R.S., Ch. 359, Sec. 4.)
       SECTION 1.10.  Subtitle F, Title 6, Special District Local
Laws Code, is amended by adding Chapters 8103, 8121, 8127, 8154,
8155, 8156, 8159, 8160, 8161, 8163, 8164, 8165, 8166, 8167, 8168,
8169, 8170, 8171, 8172, 8173, 8174, 8177, 8178, 8179, 8180, 8181,
8182, 8183, 8184, 8186, 8187, 8188, 8191, and 8192 to read as
follows:
CHAPTER 8103. EL DORADO UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8103.001.  DEFINITION
Sec. 8103.002.  NATURE OF DISTRICT
Sec. 8103.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8103.004.  DISTRICT TERRITORY
[Sections 8103.005-8103.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8103.051.  COMPOSITION OF BOARD
[Sections 8103.052-8103.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8103.101.  MUNICIPAL UTILITY DISTRICT POWERS
CHAPTER 8103. EL DORADO UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8103.001.DEFINITION. In this chapter, "district"
means the El Dorado Utility District. (V.A.C.S. Art. 8280-538,
Sec. 1 (part).)
       Sec.8103.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Harris County created
under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.
8280-538, Sec. 1 (part).)
       Sec.8103.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.
(V.A.C.S. Art. 8280-538, Secs. 1 (part), 3.)
       Sec.8103.004.DISTRICT TERRITORY. (a)  The district is
composed of the territory described by Section 4, Chapter 648, Acts
of the 62nd Legislature, Regular Session, 1971 (Article 8280-538,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (V.A.C.S. Art. 8280-538, Sec. 2; New.)
       [Sections 8103.005-8103.050 reserved for expansion]
       SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8103.051.COMPOSITION OF BOARD. The board of
directors is composed of five elected directors. (V.A.C.S. Art.
8280-538, Sec. 6 (part).)
       [Sections 8103.052-8103.100 reserved for expansion]
       SUBCHAPTER C. POWERS AND DUTIES
       Sec.8103.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district,
including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-538,
Sec. 5 (part); New.)
CHAPTER 8121. BEVIL OAKS MUNICIPAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8121.001.  DEFINITION
Sec. 8121.002.  NATURE OF DISTRICT
Sec. 8121.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8121.004.  DISTRICT TERRITORY
[Sections 8121.005-8121.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8121.051.  COMPOSITION OF BOARD
[Sections 8121.052-8121.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8121.101.  MUNICIPAL UTILITY DISTRICT POWERS
Sec. 8121.102.  HEARING NOT REQUIRED FOR EXCLUSION OF
                 TERRITORY
CHAPTER 8121. BEVIL OAKS MUNICIPAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8121.001.DEFINITION. In this chapter, "district"
means the Bevil Oaks Municipal Utility District. (Acts 63rd Leg.,
R.S., Ch. 621, Sec. 1 (part).)
       Sec.8121.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Jefferson County, created
under Section 59, Article XVI, Texas Constitution.  (Acts 63rd
Leg., R.S., Ch. 621, Sec. 1 (part).)
       Sec.8121.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.  (Acts
63rd Leg., R.S., Ch. 621, Secs. 1 (part), 3.)
       Sec.8121.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 6, Chapter 621, Acts
of the 63rd Legislature, Regular Session, 1973, as that territory
may have been modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (Acts 63rd Leg., R.S., Ch. 621, Sec. 2; New.)
[Sections 8121.005-8121.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8121.051.COMPOSITION OF BOARD.  The board of
directors is composed of five elected directors.  (Acts 63rd Leg.,
R.S., Ch. 621, Sec. 8(b) (part).)
[Sections 8121.052-8121.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8121.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district,
including Chapters 49 and 54, Water Code. (Acts 63rd Leg., R.S.,
Ch. 621, Sec. 7 (part).)
       Sec. 8121.102.  HEARING NOT REQUIRED FOR EXCLUSION OF
TERRITORY. The board is not required to call or hold a hearing on
the exclusion of land or other property from the district,
including a hearing on the petition of a landowner or other property
owner in the district.  (Acts 63rd Leg., R.S., Ch. 621, Sec. 5
(part).)
CHAPTER 8127. BILMA PUBLIC UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8127.001.  DEFINITION
Sec. 8127.002.  NATURE OF DISTRICT
Sec. 8127.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8127.004.  DISTRICT TERRITORY
[Sections 8127.005-8127.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8127.051.  COMPOSITION OF BOARD
[Sections 8127.052-8127.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8127.101.  MUNICIPAL UTILITY DISTRICT POWERS
CHAPTER 8127. BILMA PUBLIC UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8127.001.DEFINITION. In this chapter, "district"
means the Bilma Public Utility District. (V.A.C.S. Art. 8280-512,
Sec. 1 (part).)
       Sec.8127.002.NATURE OF DISTRICT. Notwithstanding
provisions of the general laws relating to consent by political
subdivisions for the creation of conservation and reclamation
districts, the district is a conservation and reclamation district
in Harris County created under Section 59, Article XVI, Texas
Constitution.  (V.A.C.S. Art. 8280-512, Sec. 1 (part).)
       Sec.8127.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.
(V.A.C.S. Art. 8280-512, Secs. 1 (part), 3.)
       Sec.8127.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 4, Chapter 559, Acts
of the 62nd Legislature, Regular Session, 1971 (Article 8280-512,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (V.A.C.S. Art. 8280-512, Sec. 2; New.)
[Sections 8127.005-8127.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8127.051.COMPOSITION OF BOARD. The board of
directors is composed of five elected directors. (V.A.C.S. Art.
8280-512, Sec. 6 (part).)
[Sections 8127.052-8127.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8127.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district,
including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-512,
Sec. 5 (part); New.)
CHAPTER 8154.  BLUE RIDGE WEST MUNICIPAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8154.001.  DEFINITIONS
Sec. 8154.002.  NATURE OF DISTRICT
Sec. 8154.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8154.004.  DISTRICT TERRITORY
[Sections 8154.005-8154.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8154.051.  COMPOSITION OF BOARD
Sec. 8154.052.  QUALIFICATIONS FOR OFFICE
Sec. 8154.053.  DIRECTOR'S BOND
Sec. 8154.054.  ABSENCE OF PRESIDENT OR SECRETARY FROM
                 BOARD MEETING; DUTY OF SECRETARY
[Sections 8154.055-8154.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8154.101.  MUNICIPALITY UTILITY DISTRICT POWERS
                 AND DUTIES
Sec. 8154.102.  ADDITIONAL POWERS
Sec. 8154.103.  HEARINGS FOR EXCLUSION OF TERRITORY
Sec. 8154.104.  EMINENT DOMAIN
Sec. 8154.105.  COST OF RELOCATING OR ALTERING PROPERTY
Sec. 8154.106.  NOTICE OF ELECTION
[Sections 8154.107-8154.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8154.151.  TAX METHOD
Sec. 8154.152.  DEPOSITORY
Sec. 8154.153.  PROCEDURE FOR PAYMENT
Sec. 8154.154.  PROJECTS AND PURCHASES EXEMPT FROM
                 ASSESSMENT OR TAXATION
[Sections 8154.155-8154.200 reserved for expansion]
SUBCHAPTER E. BONDS
Sec. 8154.201.  AUTHORITY TO ISSUE BONDS
Sec. 8154.202.  EXCHANGING BONDS FOR PROPERTY OR WORK
Sec. 8154.203.  BOND ELECTION
Sec. 8154.204.  BONDS EXEMPT FROM TAXATION
CHAPTER 8154.  BLUE RIDGE WEST MUNICIPAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8154.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "District" means the Blue Ridge West Municipal
Utility District. (V.A.C.S. Art. 8280-379, Sec. 1 (part); New.)
       Sec.8154.002.NATURE OF DISTRICT. The district is a
municipal utility district and a conservation and reclamation
district in Fort Bend County created under Section 59, Article XVI,
Texas Constitution. (V.A.C.S. Art. 8280-379, Sec. 1 (part); New.)
       Sec.8154.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.
       (d)  The accomplishment of the purposes stated in this
chapter is for the benefit of the people of this state and for the
improvement of their property and industries. The district, in
carrying out the purposes of this chapter, will be performing an
essential public function under the constitution. (V.A.C.S. Art.
8280-379, Secs. 1 (part), 4, 21 (part).)
       Sec.8154.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 2, Chapter 633, Acts
of the 60th Legislature, Regular Session, 1967 (Article 8280-379,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (V.A.C.S. Art. 8280-379, Sec. 3; New.)
[Sections 8154.005-8154.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8154.051.COMPOSITION OF BOARD. The board consists of
five directors. (V.A.C.S. Art. 8280-379, Sec. 9 (part).)
       Sec.8154.052.QUALIFICATIONS FOR OFFICE.  (a) A person
must reside in this state to be elected or appointed as a director
of the board.
       (b)  A director is not required to reside in the district.  
(V.A.C.S. Art. 8280-379, Sec. 9 (part).)
       Sec.8154.053.DIRECTOR'S BOND. (a) Each director shall
execute a bond in the amount of $5,000 for the faithful performance
of the director's duties.
       (b)  The bond must be:
             (1)  approved by:
                   (A)  the board; and
                   (B)  the county judge or the commissioners court
of the county in which the district is located;
             (2)  filed for record in the office of the county clerk
of the county in which the district is located;
             (3)  filed for safekeeping in the district's
depository; and
             (4)  recorded in a record kept for that purpose in the
district office. (V.A.C.S. Art. 8280-379, Sec. 9 (part).)
       Sec. 8154.054.  ABSENCE OF PRESIDENT OR SECRETARY FROM BOARD
MEETING; DUTY OF SECRETARY. (a) If the board president is absent
from a board meeting at which an order is adopted or other action is
taken:
             (1)  the board vice president may sign the order or
action; or
             (2)  the board may authorize the president to sign the
order or action.
       (b)  The board secretary shall sign the minutes of each board
meeting.
       (c)  If the board secretary is absent from a board meeting,
the board:
             (1)  shall name a secretary pro tem for the meeting who:
                   (A)  may exercise all powers and duties of the
secretary for the meeting;
                   (B)  shall sign the minutes of the meeting; and
                   (C)  may attest all orders passed or other action
taken at the meeting; or
             (2)  may authorize the secretary to attest all orders
passed or other action taken at the meeting. (V.A.C.S. Art.
8280-379, Sec. 9 (part).)
[Sections 8154.055-8154.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec. 8154.101.  MUNICIPALITY UTILITY DISTRICT POWERS AND
DUTIES. The district has all of the rights, powers, privileges, and
duties provided by general law applicable to a municipal utility
district created under Section 59, Article XVI, Texas Constitution,
including those conferred by Chapters 49 and 54, Water Code.
(V.A.C.S. Art. 8280-379, Sec. 5 (part); New.)
       Sec.8154.102.ADDITIONAL POWERS. (a) The district may:
             (1)  purchase, construct, or otherwise acquire a
waterworks system, sanitary sewer system, or storm sewer system and
drainage facility, or any part of those systems or facilities;
             (2)  make any necessary purchase, construction,
improvement, extension, or addition to a system or facility
described by Subdivision (1);
             (3)  purchase or acquire, operate, and maintain any
land, right-of-way, easement, site, equipment, building, plant,
structure, or facility necessary to a system or facility described
by Subdivision (1); and
             (4)  sell water and other services.
       (b)  The district may exercise any of the rights or powers
granted by this chapter inside or outside the district's
boundaries.
       (c)  The district may exercise any of its rights or powers to
provide water or sewerage services to an area inside or outside the
district's boundaries.  (V.A.C.S. Art. 8280-379, Sec. 16 (part).)
       Sec.8154.103.HEARINGS FOR EXCLUSION OF TERRITORY. (a)
The board is not required to call or hold a hearing on the exclusion
of land or other property from the district.
       (b)  The board on its own motion may call and hold one or more
hearings on the exclusion of land or other property from the
district in the manner provided by general law. (V.A.C.S. Art.
8280-379, Sec. 7 (part).)
       Sec.8154.104.EMINENT DOMAIN. The district may exercise
the power of eminent domain only in a county in which the district
is located. (V.A.C.S. Art. 8280-379, Sec. 12 (part).)
       Sec.8154.105.COST OF RELOCATING OR ALTERING PROPERTY.  
(a) In this section, "sole expense" means the actual cost of
relocating, raising, lowering, rerouting, or changing the grade of,
or altering the construction of a facility described by Subsection
(b) in providing a comparable replacement without enhancing the
facility, after deducting from that cost the net salvage value
derived from the old facility.
       (b)  If the district, in the exercise of the power of eminent
domain, the power of relocation, or any other power granted under
this chapter, makes necessary the relocation, raising, rerouting,
changing the grade of, or altering the construction of a highway, a
railroad, an electric transmission line, a pipeline, or a telegraph
or telephone property or facility, the necessary relocation,
raising, rerouting, changing the grade of, or alteration of
construction shall be accomplished at the sole expense of the
district. (V.A.C.S. Art. 8280-379, Sec. 12 (part).)
       Sec.8154.106.NOTICE OF ELECTION. The board president or
secretary may give notice of an election. (V.A.C.S. Art. 8280-379,
Sec. 19.)
[Sections 8154.107-8154.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
       Sec.8154.151.TAX METHOD. (a)  The district shall use the
ad valorem plan of taxation.
       (b)  The board is not required to hold a hearing on the
adoption of a plan of taxation.  (V.A.C.S. Art. 8280-379, Sec. 8.)
       Sec.8154.152.DEPOSITORY. (a) The board shall select one
or more banks or trust companies in this state to act as a
depository of bond proceeds or of revenue derived from the
operation of district facilities.
       (b)  The depository shall, as determined by the board:
             (1)  furnish indemnity bonds;
             (2)  pledge securities; or
             (3)  meet any other requirement. (V.A.C.S. Art.
8280-379, Sec. 15.)
       Sec.8154.153.PROCEDURE FOR PAYMENT. An officer or
employee of the district, as designated by a standing order entered
in the board's minutes, may draw and sign a warrant to pay a current
expense, salary, or account of the district if the account has been
contracted and ordered paid by the board. (V.A.C.S. Art. 8280-379,
Sec. 9 (part).)
       Sec. 8154.154.  PROJECTS AND PURCHASES EXEMPT FROM
ASSESSMENT OR TAXATION. The district is not required to pay a tax
or assessment on:
             (1)  a district project or any part of the project; or
             (2)  a district purchase. (V.A.C.S. Art. 8280-379,
Sec. 21 (part).)
[Sections 8154.155-8154.200 reserved for expansion]
SUBCHAPTER E. BONDS
       Sec.8154.201.AUTHORITY TO ISSUE BONDS. The district may
vote and issue bonds of any kind, including refunding bonds, for
contiguous or noncontiguous areas for any district purpose.  
(V.A.C.S. Art. 8280-379, Sec. 16 (part).)
       Sec.8154.202.EXCHANGING BONDS FOR PROPERTY OR WORK. The
district may exchange bonds, including refunding bonds:
             (1)  for property acquired by purchase; or
             (2)  in payment of the contract price of work done or
materials or services furnished for the use and benefit of the
district. (V.A.C.S. Art. 8280-379, Sec. 17 (part).)
       Sec.8154.203.BOND ELECTION. (a) On the failure of a bond
election:
             (1)  a general law that provides for calling a hearing
on the dissolution of the district after a district bond election
fails does not apply to the district; and
             (2)  the board may call a subsequent bond election
after the expiration of six months after the date of the election.
       (b)  The outcome of a bond election does not affect the
district's existence, function, or operation.  (V.A.C.S. Art.
8280-379, Sec. 18.)
       Sec.8154.204.BONDS EXEMPT FROM TAXATION. A bond issued
under this subchapter, the transfer of the bond, and income from the
bond, including profits made on the sale of the bond, are exempt
from taxation in this state. (V.A.C.S. Art. 8280-379, Sec. 21
(part).)
CHAPTER 8155.  BOIS D'ARC MUNICIPAL UTILITY DISTRICT
OF FANNIN COUNTY, TEXAS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8155.001.  DEFINITION
Sec. 8155.002.  NATURE OF DISTRICT
Sec. 8155.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8155.004.  DISTRICT TERRITORY
[Sections 8155.005-8155.050 reserved for expansion]
SUBCHAPTER B.  BOARD OF DIRECTORS
Sec. 8155.051.  COMPOSITION OF BOARD
Sec. 8155.052.  VACANCIES
Sec. 8155.053.  DIRECTOR'S BOND
[Sections 8155.054-8155.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
Sec. 8155.101.  MUNICIPAL UTILITY DISTRICT POWERS
Sec. 8155.102.  WATER AND SEWER SYSTEMS
Sec. 8155.103.  TAXES
CHAPTER 8155.  BOIS D'ARC MUNICIPAL UTILITY DISTRICT
OF FANNIN COUNTY, TEXAS
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8155.001.DEFINITION. In this chapter, "district"
means the Bois D'Arc Municipal Utility District of Fannin County,
Texas.  (Acts 66th Leg., R.S., Ch. 421, Sec. 1 (part).)
       Sec.8155.002.NATURE OF DISTRICT.  The district is a
conservation and reclamation district created under Section 59,
Article XVI, Texas Constitution.  (Acts 66th Leg., R.S., Ch. 421,
Sec. 1 (part).)
       Sec.8155.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects that are to
be accomplished by the district under the powers conferred by
Section 59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.  (Acts
66th Leg., R.S., Ch. 421, Secs. 1 (part), 4 (part).)
       Sec.8155.004.DISTRICT TERRITORY.  (a)  The district is
composed of the territory described by Section 2, Chapter 421, Acts
of the 66th Legislature, Regular Session, 1979, as that territory
may have been modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on a bond;
             (3)  the district's right to impose taxes; or
             (4)  the legality or operation of the district or its
governing body.  (Acts 66th Leg., R.S., Ch. 421, Sec. 3 (part);
New.)
[Sections 8155.005-8155.050 reserved for expansion]
SUBCHAPTER B.  BOARD OF DIRECTORS
       Sec.8155.051.COMPOSITION OF BOARD.  The district is
governed by a board of seven directors.  (Acts 66th Leg., R.S., Ch.
421, Sec. 7 (part).)
       Sec.8155.052.VACANCIES. The Commissioners Court of
Fannin County shall appoint directors to fill all vacancies on the
board when the number of qualified directors is fewer than four.  
(Acts 66th Leg., R.S., Ch. 421, Sec. 7 (part).)
       Sec.8155.053.DIRECTOR'S BOND. A director is not required
to post a public official's bond.  (Acts 66th Leg., R.S., Ch. 421,
Sec. 7 (part).)
[Sections 8155.054-8155.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
       Sec.8155.101.MUNICIPAL UTILITY DISTRICT POWERS.  The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district created
under Section 59, Article XVI, Texas Constitution, including
Chapters 49 and 54, Water Code.  (Acts 66th Leg., R.S., Ch. 421,
Sec. 5 (part).)
       Sec.8155.102.WATER AND SEWER SYSTEMS.  (a)  To serve the
inhabitants of the county in which the district is situated, the
district may:
             (1)  acquire, and may improve or extend, any existing
water or sewer system that serves all or part of the district
territory; or
             (2)  construct a water or sewer system.
       (b)  A contract to acquire an existing water or sewer
facility may be made on terms approved by the contracting parties.  
(Acts 66th Leg., R.S., Ch. 421, Sec. 6 (part).)
       Sec.8155.103.TAXES.  The district may not impose a tax
unless the tax has been approved by the voters at an election called
for that purpose.  (Acts 66th Leg., R.S., Ch. 421, Sec. 6 (part).)
CHAPTER 8156. EL PASO COUNTY MUNICIPAL UTILITY DISTRICT NO. 2
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8156.001.  DEFINITION
Sec. 8156.002.  NATURE OF DISTRICT
Sec. 8156.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8156.004.  DISTRICT TERRITORY
Sec. 8156.005.  EFFECT OF CHAPTER ON CITY OF EL PASO
[Sections 8156.006-8156.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8156.051.  COMPOSITION OF BOARD
[Sections 8156.052-8156.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8156.101.  MUNICIPAL UTILITY DISTRICT POWERS
Sec. 8156.102.  ANNEXATION OF DISTRICT TERRITORY BY
                 POLITICAL SUBDIVISION
Sec. 8156.103.  AUTHORITY OF EL PASO WATER UTILITIES
                 PUBLIC SERVICE BOARD OVER DISTRICT
                 FACILITIES
CHAPTER 8156. EL PASO COUNTY MUNICIPAL UTILITY DISTRICT NO. 2
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8156.001.DEFINITION. In this chapter, "district"
means El Paso County Municipal Utility District No. 2. (Acts 74th
Leg., R.S., Ch. 700, Sec. 2.)
       Sec.8156.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in El Paso County created
under Section 59, Article XVI, Texas Constitution. (Acts 74th
Leg., R.S., Ch. 700, Secs. 1(a) (part), (b).)
       Sec.8156.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the district
will benefit from the works and projects accomplished by the
district under the powers conferred by Section 59, Article XVI,
Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution. (Acts
74th Leg., R.S., Ch. 700, Secs. 1(b) (part), 5.)
       Sec.8156.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 3, Chapter 700, Acts
of the 74th Legislature, Regular Session, 1995, as that territory
may have been modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, or
validity;
             (2)  the district's right to impose a tax; or
             (3)  the legality or operation of the district or its
governing body. (Acts 74th Leg., R.S., Ch. 700, Sec. 4; New.)
       Sec.8156.005.EFFECT OF CHAPTER ON CITY OF EL PASO. This
chapter does not diminish or affect the City of El Paso's
extraterritorial jurisdiction or its rights under the Local
Government Code.  (Acts 74th Leg., R.S., Ch. 700, Sec. 6(e).)
       [Sections 8156.006-8156.050 reserved for expansion]
       SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8156.051.COMPOSITION OF BOARD. The district is
governed by a board of five directors. (Acts 74th Leg., R.S., Ch.
700, Sec. 7(a).)
[Sections 8156.052-8156.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8156.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, functions, and duties
provided by general law applicable to a municipal utility district
created under Section 59, Article XVI, Texas Constitution,
including Chapters 49, 50, and 54, Water Code. (Acts 74th Leg.,
R.S., Ch. 700, Sec. 6(a) (part).)
       Sec. 8156.102.  ANNEXATION OF DISTRICT TERRITORY BY
POLITICAL SUBDIVISION. A political subdivision that annexes the
district territory included in Section 3, Chapter 700, Acts of the
74th Legislature, Regular Session, 1995, as provided by Chapter 43,
Local Government Code, assumes the district's powers, functions,
and duties and any outstanding bonded indebtedness of the district.
(Acts 74th Leg., R.S., Ch. 700, Sec. 6(c).)
       Sec. 8156.103.  AUTHORITY OF EL PASO WATER UTILITIES PUBLIC
SERVICE BOARD OVER DISTRICT FACILITIES. (a)  In this section,
"Public Service Board" means the El Paso Water Utilities Public
Service Board.
       (b)   The plans and specifications for any facilities to be
constructed or acquired by the district must be approved by the
Public Service Board.  The Public Service Board may not
unreasonably withhold or delay the approval.
       (c)  The Public Service Board is entitled to inspect or act
as the construction manager for district facilities to ensure that
the facilities meet the applicable standards of the Public Service
Board.  The district shall pay the Public Service Board a reasonable
fee for those services consistent with fees charged for similar
services the Public Service Board provides on similar utility
construction contracts. (Acts 74th Leg., R.S., Ch. 700, Sec. 6(d);
New.)
CHAPTER 8159.  EMERALD BAY MUNICIPAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8159.001.  DEFINITION
Sec. 8159.002.  NATURE OF DISTRICT
Sec. 8159.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8159.004.  DISTRICT TERRITORY
[Sections 8159.005-8159.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8159.051.  COMPOSITION OF BOARD
[Sections 8159.052-8159.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8159.101.  MUNICIPAL UTILITY DISTRICT POWERS
Sec. 8159.102.  GENERAL CONTRACT POWERS
Sec. 8159.103.  CONTRACTS TO ACQUIRE EXISTING WATER OR
                 SEWER SYSTEMS
Sec. 8159.104.  VOTER APPROVAL OF CERTAIN CONTRACTS
CHAPTER 8159.  EMERALD BAY MUNICIPAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8159.001.DEFINITION. In this chapter, "district"
means Emerald Bay Municipal Utility District. (Acts 68th Leg.,
R.S., Ch. 722, Sec. 1 (part); New.)
       Sec.8159.002.NATURE OF DISTRICT. (a) The district is a
conservation and reclamation district in Smith County created under
Section 59, Article XVI, Texas Constitution.
       (b)  The district is a political subdivision of the state.  
(Acts 68th Leg., R.S., Ch. 722, Sec. 1 (part).)
       Sec.8159.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the district
will benefit from the works and projects accomplished by the
district under Section 59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.  (Acts
68th Leg., R.S., Ch. 722, Secs. 1 (part), 3.)
       Sec.8159.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 2(a), Chapter 722,
Acts of the 68th Legislature, Regular Session, 1983, as that
territory may have been modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries of the district form a closure. A
mistake in the description of the boundaries under Section 2(a),
Chapter 722, Acts of the 68th Legislature, Regular Session, 1983,
does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue bonds for a purpose
for which the district is created or to pay the principal of and
interest on the bonds; or
             (3)  the legality or operation of the district or its
governing body.  (Acts 68th Leg., R.S., Ch. 722, Secs. 2(b), (c);
New.)
[Sections 8159.005-8159.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8159.051.COMPOSITION OF BOARD. The district is
governed by a board of five directors who serve staggered terms.
(Acts 68th Leg., R.S., Ch. 722, Secs. 8(a) (part), (e) (part).)
[Sections 8159.052-8159.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8159.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district may exercise the rights, powers, privileges, and functions
provided by general law applicable to a municipal utility district
created under Section 59, Article XVI, Texas Constitution,
including Chapters 49 and 54, Water Code. (Acts 68th Leg., R.S.,
Ch. 722, Sec. 5(a).)
       Sec.8159.102.GENERAL CONTRACT POWERS. The district may
enter into a water supply, sewage treatment, solid waste, or
drainage contract, or any combination of those contracts, with a
municipal corporation, political subdivision, or private entity.  
(Acts 68th Leg., R.S., Ch. 722, Sec. 7(a).)
       Sec. 8159.103.  CONTRACTS TO ACQUIRE EXISTING WATER OR SEWER
SYSTEMS. A contract for the acquisition of an existing water or
sewer facility may be made on terms approved by the contracting
parties. (Acts 68th Leg., R.S., Ch. 722, Sec. 6(c) (part).)
       Sec.8159.104.VOTER APPROVAL OF CERTAIN CONTRACTS. (a) A
contract that provides for the district to make payment from taxes
other than maintenance taxes must be approved by a majority of the
district voters voting on the question at an election held for that
purpose.
       (b)  The election shall be held in the same manner as an
election for the issuance of bonds payable from taxes by a municipal
utility district. (Acts 68th Leg., R.S., Ch. 722, Sec. 7(b)
(part).)
CHAPTER 8160. EMERALD FOREST UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8160.001.  DEFINITIONS
Sec. 8160.002.  NATURE OF DISTRICT
Sec. 8160.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8160.004.  DISTRICT TERRITORY
[Sections 8160.005-8160.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8160.051.  COMPOSITION OF BOARD
[Sections 8160.052-8160.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8160.101.  MUNICIPAL UTILITY DISTRICT POWERS
CHAPTER 8160. EMERALD FOREST UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8160.001.DEFINITIONS. In this chapter, "district"
means Emerald Forest Utility District. (V.A.C.S. Art. 8280-519,
Sec. 1 (part).)
       Sec.8160.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Harris County created
under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.
8280-519, Sec. 1 (part).)
       Sec.8160.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.
(V.A.C.S. Art. 8280-519, Secs. 1 (part), 3.)
       Sec.8160.004.DISTRICT TERRITORY. (a)  The district is
composed of the territory described by Section 4, Chapter 584, Acts
of the 62nd Legislature, Regular Session, 1971 (Article 8280-519,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (V.A.C.S. Art. 8280-519, Sec. 2; New.)
       [Sections 8160.005-8160.050 reserved for expansion]
       SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8160.051.COMPOSITION OF BOARD. The board of
directors is composed of five elected directors. (V.A.C.S. Art.
8280-519, Sec. 6 (part).)
       [Sections 8160.052-8160.100 reserved for expansion]
       SUBCHAPTER C. POWERS AND DUTIES
       Sec.8160.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district,
including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-519,
Sec. 5 (part); New.)
CHAPTER 8161. ENCANTO REAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8161.001.  DEFINITION
Sec. 8161.002.  NATURE OF DISTRICT
Sec. 8161.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8161.004.  DISTRICT TERRITORY
[Sections 8161.005-8161.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8161.051.  COMPOSITION OF BOARD
[Sections 8161.052-8161.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8161.101.  MUNICIPAL UTILITY DISTRICT POWERS
CHAPTER 8161. ENCANTO REAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8161.001.DEFINITION. In this chapter, "district"
means the Encanto Real Utility District. (V.A.C.S. Art. 8280-584,
Sec. 1 (part).)
       Sec.8161.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Harris County created
under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.
8280-584, Sec. 1 (part).)
       Sec.8161.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.
(V.A.C.S. Art. 8280-584, Secs. 1 (part), 3.)
       Sec.8161.004.DISTRICT TERRITORY. (a)  The district is
composed of the territory described by Section 4, Chapter 700, Acts
of the 62nd Legislature, Regular Session, 1971 (Article 8280-584,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (V.A.C.S. Art. 8280-584, Sec. 2; New.)
[Sections 8161.005-8161.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8161.051.COMPOSITION OF BOARD. The board of
directors is composed of five elected directors. (V.A.C.S. Art.
8280-584, Sec. 6 (part).)
[Sections 8161.052-8161.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8161.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district,
including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-584,
Sec. 5 (part); New.)
CHAPTER 8163.  BURLESON COUNTY MUNICIPAL UTILITY
DISTRICT NO. 1
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 8163.001.  DEFINITION
Sec. 8163.002.  NATURE OF DISTRICT
Sec. 8163.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8163.004.  DISTRICT TERRITORY
[Sections 8163.005-8163.050 reserved for expansion]
SUBCHAPTER B.  BOARD OF DIRECTORS
Sec. 8163.051.  COMPOSITION OF BOARD
[Sections 8163.052-8163.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
Sec. 8163.101.  MUNICIPAL UTILITY DISTRICT POWERS
CHAPTER 8163.  BURLESON COUNTY MUNICIPAL UTILITY
DISTRICT NO. 1
SUBCHAPTER A.  GENERAL PROVISIONS
       Sec.8163.001.DEFINITION. In this chapter, "district"
means the Burleson County Municipal Utility District No. 1.  
(V.A.C.S. Art. 8280-587, Sec. 1 (part).)
       Sec.8163.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Burleson County created
under Section 59, Article XVI, Texas Constitution.  (V.A.C.S. Art.
8280-587, Sec. 1 (part).)
       Sec.8163.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.
(V.A.C.S. Art. 8280-587, Secs. 1 (part), 3.)
       Sec.8163.004.DISTRICT TERRITORY. (a)  The district is
composed of the territory described by Section 4, Chapter 703, Acts
of the 62nd Legislature, Regular Session, 1971 (Article 8280-587,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (V.A.C.S. Art. 8280-587, Sec. 2; New.)
[Sections 8163.005-8163.050 reserved for expansion]
SUBCHAPTER B.  BOARD OF DIRECTORS
       Sec.8163.051.COMPOSITION OF BOARD. The board of
directors is composed of five elected directors.  (V.A.C.S. Art.
8280-587, Sec. 6 (part).)
[Sections 8163.052-8163.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
       Sec.8163.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district,
including Chapters 49 and 54, Water Code.  (V.A.C.S. Art. 8280-587,
Sec. 5 (part).)
CHAPTER 8164. CAPE ROYALE UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8164.001.  DEFINITIONS
Sec. 8164.002.  NATURE OF DISTRICT
Sec. 8164.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8164.004.  DISTRICT TERRITORY
[Sections 8164.005-8164.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 8164.051.  COMPOSITION OF BOARD
Sec. 8164.052.  DIRECTOR'S BOND
Sec. 8164.053.  BOARD VACANCY
Sec. 8164.054.  DISTRICT OFFICE
Sec. 8164.055.  ABSENCE OF PRESIDENT FROM BOARD MEETING
[Sections 8164.056-8164.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8164.101.  MUNICIPAL UTILITY DISTRICT POWERS AND DUTIES
Sec. 8164.102.  ADDITIONAL POWERS AND DUTIES
Sec. 8164.103.  EMINENT DOMAIN
Sec. 8164.104.  COST OF RELOCATING OR ALTERING PROPERTY
Sec. 8164.105.  CONTRACT FOR PURCHASE OF WATER, SEWER,
                 OR DRAINAGE SERVICES; ELECTION NOT
                 REQUIRED
Sec. 8164.106.  NOTICE OF ELECTION
Sec. 8164.107.  DISTRICT RULES
[Sections 8164.108-8164.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8164.151.  TAX METHOD
Sec. 8164.152.  DISTRICT ACCOUNTS
Sec. 8164.153.  COPY OF AUDIT REPORT
Sec. 8164.154.  PAYMENT OF TAX OR ASSESSMENT NOT
                 REQUIRED
Sec. 8164.155.  DIRECTOR AS SHAREHOLDER IN DEPOSITORY
[Sections 8164.156-8164.200 reserved for expansion]
SUBCHAPTER E.  BONDS
Sec. 8164.201.  USE OF BOND PROCEEDS DURING
                 CONSTRUCTION
CHAPTER 8164. CAPE ROYALE UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8164.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Cape Royale Utility District.
(V.A.C.S. Art. 8280-424, Sec. 1 (part); New.)
       Sec.8164.002.NATURE OF DISTRICT. The district is a
municipal utility district and a conservation and reclamation
district in San Jacinto County, created under Section 59, Article
XVI, Texas Constitution. (V.A.C.S. Art. 8280-424, Sec. 1 (part);
New.)
       Sec.8164.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.
       (d)  The accomplishment of the purposes stated in this
chapter is for the benefit of the people of this state and for the
improvement of their property and industries. The district in
carrying out the purposes of this chapter will be performing an
essential public function under the Texas Constitution. (V.A.C.S.
Art. 8280-424, Secs. 1 (part), 4, 24 (part).)
       Sec.8164.004.DISTRICT TERRITORY. (a)  The district is
composed of the territory described by Section 2, Chapter 270, Acts
of the 61st Legislature, Regular Session, 1969 (Article 8280-424,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code;
             (3)  former Section 9, Chapter 270, Acts of the 61st
Legislature, Regular Session, 1969 (Article 8280-424, Vernon's
Texas Civil Statutes); or
             (4)  other law.
       (b)  The boundaries and field notes of the district form a
closure. If a mistake is made in the field notes or in copying the
field notes in the legislative process, the mistake does not
affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or the
board. (V.A.C.S. Art. 8280-424, Sec. 3; New.)
[Sections 8164.005-8164.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
       Sec.8164.051.COMPOSITION OF BOARD. The board consists of
five directors. (V.A.C.S. Art. 8280-424, Sec. 10 (part).)
       Sec.8164.052.DIRECTOR'S BOND. (a)  Each director shall
give a bond in the amount of $5,000 for the faithful performance of
the director's duties.
       (b)  The bond must be:
             (1)  approved by the county judge and the board;
             (2)  filed in the office of the county clerk of the
county or counties in which the district is located; and
             (3)  recorded in a record book kept for that purpose in
the district office. (V.A.C.S. Art. 8280-424, Sec. 10 (part).)
       Sec.8164.053.BOARD VACANCY. (a)  Except as provided by
Subsection (b), a vacancy in the office of director shall be filled
in the manner provided by Section 49.105, Water Code.
       (b)  The county judge of the county in which the district is
located shall appoint directors to fill all vacancies on the board
whenever the number of qualified directors is fewer than three.
(V.A.C.S. Art. 8280-424, Sec. 10 (part).)
       Sec.8164.054.DISTRICT OFFICE. (a)  Except as provided by
this section, the board shall designate, establish, and maintain a
district office as provided by Section 49.062, Water Code.
       (b)  The board may establish a second district office outside
the district. If the board establishes a second district office,
the board shall give notice of the location of that office by:
             (1)  filing a copy of the board resolution that
establishes the location of the office:
                   (A)  with the Texas Commission on Environmental
Quality; and
                   (B)  in the municipal utility district records of
each county in which the district is located; and
             (2)  publishing notice of the location of the office in
a newspaper of general circulation in each county in which the
district is located.
       (c)  A district office that is a private residence, office,
or dwelling is a public place for matters relating to district
business.
       (d)  The board shall provide notice of any change in the
location of the district office outside the district in the manner
required by Subsection (b). (V.A.C.S. Art. 8280-424, Sec. 15.)
       Sec.8164.055.ABSENCE OF PRESIDENT FROM BOARD MEETING. If
the board president is absent from a board meeting:
             (1)  the board vice president may:
                   (A)  sign an order adopted at the meeting; or
                   (B)  implement any other action taken at the
meeting; or
             (2)  the board may authorize the president to sign the
order or implement the action. (V.A.C.S. Art. 8280-424, Sec. 10
(part).)
[Sections 8164.056-8164.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec. 8164.101.  MUNICIPAL UTILITY DISTRICT POWERS AND
DUTIES. The district has all of the rights, powers, privileges,
authority, and functions conferred by the general laws of this
state relating to municipal utility districts created under Section
59, Article XVI, Texas Constitution, including those conferred by
Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-424, Sec. 5
(part).)
       Sec.8164.102.ADDITIONAL POWERS AND DUTIES. (a)  The
district may:
             (1)  make, purchase, construct, lease, or otherwise
acquire property, works, facilities, existing improvements, or
improvements to be made, constructed, or acquired that are:
                   (A)  inside or outside the district's boundaries;
and
                   (B)  necessary to carry out the powers granted by
this chapter or general law; or
             (2)  enter into a contract with a person on terms the
board considers desirable, fair, and advantageous for:
                   (A)  the purchase or sale of water;
                   (B)  the transportation, treatment, and disposal
of the domestic, industrial, or communal wastes of the district or
others;
                   (C)  the continuing and orderly development of
land and property in the district through the purchase,
construction, or installation of facilities, works, or
improvements that the district is otherwise authorized to do or
perform so that, to the greatest extent reasonably possible,
considering sound engineering and economic practices, all of the
land and property may ultimately receive the services of the
facilities, works, or improvements; and
                   (D)  the performance of any of the powers granted
by this chapter or general law.
       (b)  A contract under Subsection (a)(2) may not have a
duration of more than 40 years. (V.A.C.S. Art. 8280-424, Sec. 5
(part).)
       Sec.8164.103.EMINENT DOMAIN. The district may exercise
the power of eminent domain only:
             (1)  in a county in which the district is located; and
             (2)  when necessary to carry out the purposes for which
the district was created. (V.A.C.S. Art. 8280-424, Sec. 13
(part).)
       Sec.8164.104.COST OF RELOCATING OR ALTERING PROPERTY.
(a)  In this section, "sole expense" means the actual cost of
relocating, raising, lowering, rerouting, changing the grade of, or
altering the construction of a facility described by Subsection (b)
in providing comparable replacement without enhancement of the
facility, after deducting from that cost the net salvage value of
the old facility.
       (b)  If the district's exercise of the power of eminent
domain, the power of relocation, or any other power granted by this
chapter makes necessary the relocating, raising, rerouting or
changing the grade of, or alteration of the construction of a
highway, a railroad, an electric transmission line, a telegraph or
telephone property or facility, or a pipeline, the necessary action
shall be accomplished at the sole expense of the district.
(V.A.C.S. Art. 8280-424, Sec. 13 (part).)
       Sec. 8164.105.  CONTRACT FOR PURCHASE OF WATER, SEWER, OR
DRAINAGE SERVICES; ELECTION NOT REQUIRED. (a)  The district may
enter into a contract with a political subdivision for water,
sewer, or drainage services or any combination of those services
without the necessity of an election by any contracting party.
       (b)  The district may pay for an obligation incurred by such
a contract by issuing bonds that, if otherwise necessary, have been
approved by the voters in the manner provided by this chapter.
       (c)  The district may deliver the district's bonds to any of
the following parties that enters into such a contract with the
district:
             (1)  the United States;
             (2)  an agency or instrumentality of the United States;
             (3)  this state; or
             (4)  an agency or instrumentality of this state.
(V.A.C.S. Art. 8280-424, Sec. 5 (part).)
       Sec.8164.106.NOTICE OF ELECTION. The board president or
secretary may give notice of an election. (V.A.C.S. Art. 8280-424,
Sec. 19.)
       Sec.8164.107.DISTRICT RULES. The district shall adopt
and enforce reasonable and effective rules to secure and maintain
safe, sanitary, and adequate plumbing installations, connections,
and appurtenances as subsidiary parts of the district's sewerage
system to preserve the quality of water within or controlled by the
district. (V.A.C.S. Art. 8280-424, Sec. 16.)
[Sections 8164.108-8164.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
       Sec.8164.151.TAX METHOD. (a)  The district shall use the
ad valorem plan of taxation.
       (b)  The board is not required to hold a hearing on the
adoption of a plan of taxation.  (V.A.C.S. Art. 8280-424, Sec. 8.)
       Sec.8164.152.DISTRICT ACCOUNTS. The district shall keep
a complete system of the district's accounts. (V.A.C.S. Art.
8280-424, Sec. 14 (part).)
       Sec.8164.153.COPY OF AUDIT REPORT. A copy of the audit
report prepared under Subchapter G, Chapter 49, Water Code, shall
be delivered:
             (1)  to each director; and
             (2)  on request to a holder of at least 25 percent of
the outstanding bonds of the district. (V.A.C.S. Art. 8280-424,
Sec. 14 (part).)
       Sec.8164.154.PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED.
The district is not required to pay a tax or assessment on:
             (1)  district property; or
             (2)  a purchase made by the district. (V.A.C.S. Art.
8280-424, Sec. 24 (part).)
       Sec.8164.155.DIRECTOR AS SHAREHOLDER IN DEPOSITORY. A
director may be a shareholder in a depository of district funds.
(V.A.C.S. Art. 8280-424, Sec. 14 (part).)
[Sections 8164.156-8164.200 reserved for expansion]
SUBCHAPTER E.  BONDS
       Sec.8164.201.USE OF BOND PROCEEDS DURING CONSTRUCTION.
(a)  The district may appropriate or set aside out of the proceeds
from the sale of any bonds issued under this chapter an amount for
the payment of interest, administrative, and operating expenses
expected to accrue during a period of construction, as may be
provided in the bond orders or resolutions.
       (b)  For purposes of this section, the period of construction
may not exceed three years.  (V.A.C.S. Art. 8280-424, Sec. 12
(part).)
CHAPTER 8165. CHATEAU WOODS MUNICIPAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8165.001.  DEFINITIONS 
Sec. 8165.002.  NATURE OF DISTRICT 
Sec. 8165.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE 
Sec. 8165.004.  DISTRICT TERRITORY 
[Sections 8165.005-8165.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8165.051.  COMPOSITION OF BOARD; TERMS 
Sec. 8165.052.  QUALIFICATIONS FOR OFFICE 
Sec. 8165.053.  VACANCIES 
[Sections 8165.054-8165.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
Sec. 8165.101.  MUNICIPAL UTILITY DISTRICT POWERS 
CHAPTER 8165. CHATEAU WOODS MUNICIPAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8165.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "City" means the city of Chateau Woods.
             (3)  "District" means the Chateau Woods Municipal
Utility District. (Acts 73rd Leg., R.S., Ch. 744, Sec. 2; New.)
       Sec.8165.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Montgomery County created
under Section 59, Article XVI, Texas Constitution. (Acts 73rd
Leg., R.S., Ch. 744, Secs. 1(a), (b) (part).)
       Sec.8165.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the district
will benefit from the works and projects accomplished by the
district under the powers conferred by Section 59, Article XVI,
Texas Constitution.
       (c)  The district is essential to accomplish the purposes of
Section 59, Article XVI, Texas Constitution. (Acts 73rd Leg.,
R.S., Ch. 744, Secs. 1(b) (part), 4.)
       Sec.8165.004.DISTRICT TERRITORY. The district is
composed of the territory described by Section 3, Chapter 744, Acts
of the 73rd Legislature, Regular Session, 1993, as that territory
may have been modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.  (New.)
       [Sections 8165.005-8165.050 reserved for expansion]
       SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8165.051.COMPOSITION OF BOARD; TERMS. (a) The
district is governed by a board of five directors.
       (b)  Directors serve staggered four-year terms.  (Acts 73rd
Leg., R.S., Ch. 744, Secs. 6(a), 7(c).)
       Sec.8165.052.QUALIFICATIONS FOR OFFICE.  To be eligible
to serve as director, a person must:
             (1)  be a registered voter; and
             (2)  reside in the district. (Acts 73rd Leg., R.S., Ch.
744, Sec. 6(c).)
       Sec.8165.053.VACANCIES. A vacancy in the office of
director shall be filled by appointment of the board until the next
election for directors.  If the position is not scheduled to be
filled at the election, the person elected to fill the position
shall serve only for the remainder of the unexpired term. (Acts
73rd Leg., R.S., Ch. 744, Sec. 6(b).)
[Sections 8165.054-8165.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
       Sec.8165.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, functions, and duties
provided by general law applicable to a municipal utility district
created under Section 59, Article XVI, Texas Constitution,
including those conferred by Chapters 49, 50, and 54, Water Code.  
(Acts 73rd Leg., R.S., Ch. 744, Sec. 5(a) (part); New.)
CHAPTER 8166. CIBOLO CREEK MUNICIPAL AUTHORITY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8166.001.  DEFINITION
Sec. 8166.002.  NATURE OF DISTRICT
Sec. 8166.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8166.004.  DISTRICT TERRITORY
[Sections 8166.005-8166.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8166.051.  COMPOSITION OF BOARD
[Sections 8166.052-8166.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8166.101.  MUNICIPAL UTILITY DISTRICT AND WASTE
                 DISPOSAL POWERS
Sec. 8166.102.  WATER SUPPLY IN AND TO MUNICIPALITY
[Sections 8166.103-8166.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8166.151.  LIMITATION ON USE OF SEWAGE SYSTEM
                 REVENUE
CHAPTER 8166. CIBOLO CREEK MUNICIPAL AUTHORITY
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8166.001.DEFINITION. In this chapter, "district"
means the Cibolo Creek Municipal Authority. (V.A.C.S. Art.
8280-487, Sec. 1 (part).)
       Sec.8166.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Bexar, Comal, and
Guadalupe Counties created under Section 59, Article XVI, Texas
Constitution. (V.A.C.S. Art. 8280-487, Sec. 1 (part).)
       Sec.8166.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.
(V.A.C.S. Art. 8280-487, Secs. 1 (part), 3 (part).)
       Sec.8166.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 4, Chapter 347, Acts
of the 62nd Legislature, Regular Session, 1971 (Article 8280-487,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (V.A.C.S. Art. 8280-487, Sec. 2; New.)
[Sections 8166.005-8166.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8166.051.COMPOSITION OF BOARD. The board of
directors is composed of five elected directors. (V.A.C.S. Art.
8280-487, Sec. 6(a) (part).)
[Sections 8166.052-8166.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec. 8166.101.  MUNICIPAL UTILITY DISTRICT AND WASTE
DISPOSAL POWERS. The district has the rights, powers, privileges,
and functions provided by general law applicable to a municipal
utility district, including Chapters 49 and 54, Water Code, and
applicable to a river authority under Chapter 30, Water Code.
(V.A.C.S. Art. 8280-487, Sec. 5 (part); New.)
       Sec.8166.102.WATER SUPPLY IN AND TO MUNICIPALITY. (a)  
The powers granted by Section 8166.101 do not include the power to
supply water for municipal uses, domestic uses, or commercial
purposes, on a retail basis in the municipal limits or
extraterritorial jurisdiction of a municipality that lies wholly or
partly in the district.
       (b)  A municipality described by Subsection (a) may contract
with the district to supply surface water to the municipality for
resale.  The municipality shall bear the full cost of the
development, transportation, distribution, and treatment of the
water.  (V.A.C.S. Art. 8280-487, Sec. 5 (part).)
       [Sections 8166.103-8166.150 reserved for expansion]
       SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
       Sec.8166.151.LIMITATION ON USE OF SEWAGE SYSTEM REVENUE.
The district may not use revenue received from the district sewage
system, including from the collection, transportation, treatment,
or disposal of sewage, and from other purposes pertaining to the
system, to pay for surface water development, transportation,
distribution, or treatment.  (V.A.C.S. Art. 8280–487, Sec. 5
(part).)
CHAPTER 8167. CINCO MUNICIPAL UTILITY DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8167.001.  DEFINITION
Sec. 8167.002.  NATURE OF DISTRICT
Sec. 8167.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8167.004.  DISTRICT TERRITORY
[Sections 8167.005-8167.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8167.051.  COMPOSITION OF BOARD
[Sections 8167.052-8167.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8167.101.  MUNICIPAL UTILITY DISTRICT POWERS
Sec. 8167.102.  WATER CONSERVATION PROGRAM
CHAPTER 8167. CINCO MUNICIPAL UTILITY DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8167.001.DEFINITION. In this chapter, "district"
means Cinco Municipal Utility District No. 1. (Acts 69th Leg.,
R.S., Ch. 184, Secs. 1(a) (part), 2.)
       Sec.8167.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Fort Bend County created
under Section 59, Article XVI, Texas Constitution. (Acts 69th
Leg., R.S., Ch. 184, Sec. 1(a) (part).)
       Sec.8167.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution. (Acts
69th Leg., R.S., Ch. 184, Secs. 1(b), 5.)
       Sec.8167.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 3, Chapter 184, Acts
of the 69th Legislature, Regular Session, 1985, as that territory
may have been modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (Acts 69th Leg., R.S., Ch. 184, Sec. 4; New.)
[Sections 8167.005-8167.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8167.051.COMPOSITION OF BOARD. The district is
governed by a board of five elected directors.  (Acts 69th Leg.,
R.S., Ch. 184, Secs. 8(a), (b) (part).)
[Sections 8167.052-8167.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8167.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district created
under Section 59, Article XVI, Texas Constitution, including
Chapters 49 and 54, Water Code. (Acts 69th Leg., R.S., Ch. 184,
Sec. 6(a) (part).)
       Sec.8167.102.WATER CONSERVATION PROGRAM. (a)  In this
section, "program of water conservation" means the practices,
techniques, and technologies that will reduce water consumption,
reduce water loss or waste, improve efficiency in water use, or
increase water recycling and reuse so that a water supply is
available for future or alternative uses.
       (b)  The district shall adopt and implement a program of
water conservation consistent with rules and criteria adopted and
enforceable by the Texas Commission on Environmental Quality for
similarly situated districts in the region.  (Acts 69th Leg., R.S.,
Ch. 184, Sec. 7.)
CHAPTER 8168. CINCO MUNICIPAL UTILITY DISTRICT NO. 2
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8168.001.  DEFINITION
Sec. 8168.002.  NATURE OF DISTRICT
Sec. 8168.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8168.004.  DISTRICT TERRITORY
[Sections 8168.005-8168.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8168.051.  COMPOSITION OF BOARD
[Sections 8168.052-8168.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8168.101.  MUNICIPAL UTILITY DISTRICT POWERS
Sec. 8168.102.  WATER CONSERVATION PROGRAM
CHAPTER 8168. CINCO MUNICIPAL UTILITY DISTRICT NO. 2
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8168.001.DEFINITION. In this chapter, "district"
means Cinco Municipal Utility District No. 2. (Acts 69th Leg.,
R.S., Ch. 185, Secs. 1(a) (part), 2.)
       Sec.8168.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Fort Bend and Harris
Counties created under Section 59, Article XVI, Texas Constitution.
(Acts 69th Leg., R.S., Ch. 185, Sec. 1(a) (part).)
       Sec.8168.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution. (Acts
69th Leg., R.S., Ch. 185, Secs. 1(b), 5.)
       Sec.8168.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 3, Chapter 185, Acts
of the 69th Legislature, Regular Session, 1985, as that territory
may have been modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (Acts 69th Leg., R.S., Ch. 185, Sec. 4; New.)
[Sections 8168.005-8168.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8168.051.COMPOSITION OF BOARD. The district is
governed by a board of five elected directors.  (Acts 69th Leg.,
R.S., Ch. 185, Secs. 8(a), (b) (part).)
[Sections 8168.052-8168.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8168.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district created
under Section 59, Article XVI, Texas Constitution, including
Chapters 49 and 54, Water Code. (Acts 69th Leg., R.S., Ch. 185,
Sec. 6(a) (part).)
       Sec.8168.102.WATER CONSERVATION PROGRAM. (a)  In this
section, "program of water conservation" means the practices,
techniques, and technologies that will reduce water consumption,
reduce water loss or waste, improve efficiency in water use, or
increase water recycling and reuse so that a water supply is
available for future or alternative uses.
       (b)  The district shall adopt and implement a program of
water conservation consistent with rules and criteria adopted and
enforceable by the Texas Commission on Environmental Quality for
similarly situated districts in the region.  (Acts 69th Leg., R.S.,
Ch. 185, Sec. 7.)
CHAPTER 8169. CINCO MUNICIPAL UTILITY DISTRICT NO. 3
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8169.001.  DEFINITION
Sec. 8169.002.  NATURE OF DISTRICT
Sec. 8169.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8169.004.  DISTRICT TERRITORY
[Sections 8169.005-8169.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8169.051.  COMPOSITION OF BOARD
[Sections 8169.052-8169.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8169.101.  MUNICIPAL UTILITY DISTRICT POWERS
Sec. 8169.102.  WATER CONSERVATION PROGRAM
CHAPTER 8169. CINCO MUNICIPAL UTILITY DISTRICT NO. 3
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8169.001.DEFINITION. In this chapter, "district"
means Cinco Municipal Utility District No. 3. (Acts 69th Leg.,
R.S., Ch. 186, Secs. 1(a) (part), 2.)
       Sec.8169.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Fort Bend and Harris
Counties created under Section 59, Article XVI, Texas Constitution.
(Acts 69th Leg., R.S., Ch. 186, Sec. 1(a) (part).)
       Sec.8169.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution. (Acts
69th Leg., R.S., Ch. 186, Secs. 1(b), 5.)
       Sec.8169.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 3, Chapter 186, Acts
of the 69th Legislature, Regular Session, 1985, as that territory
may have been modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (Acts 69th Leg., R.S., Ch. 186, Sec. 4; New.)
[Sections 8169.005-8169.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8169.051.COMPOSITION OF BOARD. The district is
governed by a board of five elected directors.  (Acts 69th Leg.,
R.S., Ch. 186, Secs. 8(a), (b) (part).)
[Sections 8169.052-8169.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8169.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district created
under Section 59, Article XVI, Texas Constitution, including
Chapters 49 and 54, Water Code. (Acts 69th Leg., R.S., Ch. 186,
Sec. 6(a) (part).)
       Sec.8169.102.WATER CONSERVATION PROGRAM. (a)  In this
section, "program of water conservation" means the practices,
techniques, and technologies that will reduce water consumption,
reduce water loss or waste, improve efficiency in water use, or
increase water recycling and reuse so that a water supply is
available for future or alternative uses.
       (b)  The district shall adopt and implement a program of
water conservation consistent with rules and criteria adopted and
enforceable by the Texas Commission on Environmental Quality for
similarly situated districts in the region.  (Acts 69th Leg., R.S.,
Ch. 186, Sec. 7.)
CHAPTER 8170. CINCO MUNICIPAL UTILITY DISTRICT NO. 5
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8170.001.  DEFINITION
Sec. 8170.002.  NATURE OF DISTRICT
Sec. 8170.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8170.004.  DISTRICT TERRITORY
[Sections 8170.005-8170.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8170.051.  COMPOSITION OF BOARD
[Sections 8170.052-8170.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8170.101.  MUNICIPAL UTILITY DISTRICT POWERS
Sec. 8170.102.  WATER CONSERVATION PROGRAM
CHAPTER 8170. CINCO MUNICIPAL UTILITY DISTRICT NO. 5
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8170.001.DEFINITION. In this chapter, "district"
means Cinco Municipal Utility District No. 5. (Acts 69th Leg.,
R.S., Ch. 188, Secs. 1(a) (part), 2.)
       Sec.8170.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Fort Bend and Harris
Counties created under Section 59, Article XVI, Texas Constitution.
(Acts 69th Leg., R.S., Ch. 188, Sec. 1(a) (part).)
       Sec.8170.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution. (Acts
69th Leg., R.S., Ch. 188, Secs. 1(b), 5.)
       Sec.8170.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 3, Chapter 188, Acts
of the 69th Legislature, Regular Session, 1985, as that territory
may have been modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (Acts 69th Leg., R.S., Ch. 188, Sec. 4; New.)
[Sections 8170.005-8170.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8170.051.COMPOSITION OF BOARD. The district is
governed by a board of five elected directors.  (Acts 69th Leg.,
R.S., Ch. 188, Secs. 8(a), (b) (part).)
[Sections 8170.052-8170.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8170.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district created
under Section 59, Article XVI, Texas Constitution, including
Chapters 49 and 54, Water Code. (Acts 69th Leg., R.S., Ch. 188,
Sec. 6(a) (part).)
       Sec.8170.102.WATER CONSERVATION PROGRAM. (a)  In this
section, "program of water conservation" means the practices,
techniques, and technologies that will reduce water consumption,
reduce water loss or waste, improve efficiency in water use, or
increase water recycling and reuse so that a water supply is
available for future or alternative uses.
       (b)  The district shall adopt and implement a program of
water conservation consistent with rules and criteria adopted and
enforceable by the Texas Commission on Environmental Quality for
similarly situated districts in the region.  (Acts 69th Leg., R.S.,
Ch. 188, Sec. 7.)
CHAPTER 8171. CINCO MUNICIPAL UTILITY DISTRICT NO. 6
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8171.001.  DEFINITION
Sec. 8171.002.  NATURE OF DISTRICT
Sec. 8171.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8171.004.  DISTRICT TERRITORY
[Sections 8171.005-8171.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8171.051.  COMPOSITION OF BOARD
[Sections 8171.052-8171.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8171.101.  MUNICIPAL UTILITY DISTRICT POWERS
Sec. 8171.102.  WATER CONSERVATION PROGRAM
CHAPTER 8171. CINCO MUNICIPAL UTILITY DISTRICT NO. 6
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8171.001.DEFINITION. In this chapter, "district"
means Cinco Municipal Utility District No. 6. (Acts 69th Leg.,
R.S., Ch. 189, Secs. 1(a) (part), 2.)
       Sec.8171.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Fort Bend County created
under Section 59, Article XVI, Texas Constitution. (Acts 69th
Leg., R.S., Ch. 189, Sec. 1(a) (part).)
       Sec.8171.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution. (Acts
69th Leg., R.S., Ch. 189, Secs. 1(b), 5.)
       Sec.8171.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 3, Chapter 189, Acts
of the 69th Legislature, Regular Session, 1985, as that territory
may have been modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (Acts 69th Leg., R.S., Ch. 189, Sec. 4; New.)
[Sections 8171.005-8171.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8171.051.COMPOSITION OF BOARD. The district is
governed by a board of five elected directors.  (Acts 69th Leg.,
R.S., Ch. 189, Secs. 8(a), (b) (part).)
[Sections 8171.052-8171.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8171.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district created
under Section 59, Article XVI, Texas Constitution, including
Chapters 49 and 54, Water Code. (Acts 69th Leg., R.S., Ch. 189,
Sec. 6(a) (part).)
       Sec.8171.102.WATER CONSERVATION PROGRAM. (a)  In this
section, "program of water conservation" means the practices,
techniques, and technologies that will reduce water consumption,
reduce water loss or waste, improve efficiency in water use, or
increase water recycling and reuse so that a water supply is
available for future or alternative uses.
       (b)  The district shall adopt and implement a program of
water conservation consistent with rules and criteria adopted and
enforceable by the Texas Commission on Environmental Quality for
similarly situated districts in the region.  (Acts 69th Leg., R.S.,
Ch. 189, Sec. 7.)
CHAPTER 8172. CINCO MUNICIPAL UTILITY DISTRICT NO. 7
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8172.001.  DEFINITION
Sec. 8172.002.  NATURE OF DISTRICT
Sec. 8172.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8172.004.  DISTRICT TERRITORY
[Sections 8172.005-8172.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8172.051.  COMPOSITION OF BOARD
[Sections 8172.052-8172.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8172.101.  MUNICIPAL UTILITY DISTRICT POWERS
Sec. 8172.102.  WATER CONSERVATION PROGRAM
CHAPTER 8172. CINCO MUNICIPAL UTILITY DISTRICT NO. 7
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8172.001.DEFINITION. In this chapter, "district"
means Cinco Municipal Utility District No. 7. (Acts 69th Leg.,
R.S., Ch. 190, Secs. 1(a) (part), 2.)
       Sec.8172.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Fort Bend County created
under Section 59, Article XVI, Texas Constitution. (Acts 69th
Leg., R.S., Ch. 190, Sec. 1(a) (part).)
       Sec.8172.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution. (Acts
69th Leg., R.S., Ch. 190, Secs. 1(b), 5.)
       Sec.8172.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 3, Chapter 190, Acts
of the 69th Legislature, Regular Session, 1985, as that territory
may have been modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (Acts 69th Leg., R.S., Ch. 190, Sec. 4; New.)
[Sections 8172.005-8172.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8172.051.COMPOSITION OF BOARD. The district is
governed by a board of five elected directors.  (Acts 69th Leg.,
R.S., Ch. 190, Secs. 8(a), (b) (part).)
[Sections 8172.052-8172.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8172.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district created
under Section 59, Article XVI, Texas Constitution, including
Chapters 49 and 54, Water Code. (Acts 69th Leg., R.S., Ch. 190,
Sec. 6(a) (part).)
       Sec.8172.102.WATER CONSERVATION PROGRAM. (a)  In this
section, "program of water conservation" means the practices,
techniques, and technologies that will reduce water consumption,
reduce water loss or waste, improve efficiency in water use, or
increase water recycling and reuse so that a water supply is
available for future or alternative uses.
       (b)  The district shall adopt and implement a program of
water conservation consistent with rules and criteria adopted and
enforceable by the Texas Commission on Environmental Quality for
similarly situated districts in the region.  (Acts 69th Leg., R.S.,
Ch. 190, Sec. 7.)
CHAPTER 8173. CINCO MUNICIPAL UTILITY DISTRICT NO. 8
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8173.001.  DEFINITION
Sec. 8173.002.  NATURE OF DISTRICT
Sec. 8173.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8173.004.  DISTRICT TERRITORY
[Sections 8173.005-8173.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8173.051.  COMPOSITION OF BOARD
[Sections 8173.052-8173.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8173.101.  MUNICIPAL UTILITY DISTRICT POWERS
Sec. 8173.102.  WATER CONSERVATION PROGRAM
CHAPTER 8173. CINCO MUNICIPAL UTILITY DISTRICT NO. 8
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8173.001.DEFINITION. In this chapter, "district"
means Cinco Municipal Utility District No. 8. (Acts 69th Leg.,
R.S., Ch. 191, Secs. 1(a) (part), 2.)
       Sec.8173.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Fort Bend County created
under Section 59, Article XVI, Texas Constitution. (Acts 69th
Leg., R.S., Ch. 191, Sec. 1(a) (part).)
       Sec.8173.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution. (Acts
69th Leg., R.S., Ch. 191, Secs. 1(b), 5.)
       Sec.8173.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 3, Chapter 191, Acts
of the 69th Legislature, Regular Session, 1985, as that territory
may have been modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (Acts 69th Leg., R.S., Ch. 191, Sec. 4; New.)
[Sections 8173.005-8173.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8173.051.COMPOSITION OF BOARD. The district is
governed by a board of five elected directors.  (Acts 69th Leg.,
R.S., Ch. 191, Secs. 8(a), (b) (part).)
[Sections 8173.052-8173.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8173.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district created
under Section 59, Article XVI, Texas Constitution, including
Chapters 49 and 54, Water Code. (Acts 69th Leg., R.S., Ch. 191,
Sec. 6(a) (part).)
       Sec.8173.102.WATER CONSERVATION PROGRAM. (a)  In this
section, "program of water conservation" means the practices,
techniques, and technologies that will reduce water consumption,
reduce water loss or waste, improve efficiency in water use, or
increase water recycling and reuse so that a water supply is
available for future or alternative uses.
       (b)  The district shall adopt and implement a program of
water conservation consistent with rules and criteria adopted and
enforceable by the Texas Commission on Environmental Quality for
similarly situated districts in the region.  (Acts 69th Leg., R.S.,
Ch. 191, Sec. 7.)
CHAPTER 8174. CINCO MUNICIPAL UTILITY DISTRICT NO. 9
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8174.001.  DEFINITION
Sec. 8174.002.  NATURE OF DISTRICT
Sec. 8174.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8174.004.  DISTRICT TERRITORY
[Sections 8174.005-8174.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8174.051.  COMPOSITION OF BOARD
[Sections 8174.052-8174.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8174.101.  MUNICIPAL UTILITY DISTRICT POWERS
Sec. 8174.102.  WATER CONSERVATION PROGRAM
CHAPTER 8174. CINCO MUNICIPAL UTILITY DISTRICT NO. 9
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8174.001.DEFINITION. In this chapter, "district"
means Cinco Municipal Utility District No. 9. (Acts 69th Leg.,
R.S., Ch. 192, Secs. 1(a) (part), 2.)
       Sec.8174.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Fort Bend and Harris
Counties created under Section 59, Article XVI, Texas Constitution.
(Acts 69th Leg., R.S., Ch. 192, Sec. 1(a) (part).)
       Sec.8174.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution. (Acts
69th Leg., R.S., Ch. 192, Secs. 1(b), 5.)
       Sec.8174.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 3, Chapter 192, Acts
of the 69th Legislature, Regular Session, 1985, as that territory
may have been modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (Acts 69th Leg., R.S., Ch. 192, Sec. 4; New.)
[Sections 8174.005-8174.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8174.051.COMPOSITION OF BOARD. The district is
governed by a board of five elected directors.  (Acts 69th Leg.,
R.S., Ch. 192, Secs. 8(a),  (b) (part).)
[Sections 8174.052-8174.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8174.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district created
under Section 59, Article XVI, Texas Constitution, including
Chapters 49 and 54, Water Code. (Acts 69th Leg., R.S., Ch. 192,
Sec. 6(a) (part).)
       Sec.8174.102.WATER CONSERVATION PROGRAM. (a)  In this
section, "program of water conservation" means the practices,
techniques, and technologies that will reduce water consumption,
reduce water loss or waste, improve efficiency in water use, or
increase water recycling and reuse so that a water supply is
available for future or alternative uses.
       (b)  The district shall adopt and implement a program of
water conservation consistent with rules and criteria adopted and
enforceable by the Texas Commission on Environmental Quality for
similarly situated districts in the region.  (Acts 69th Leg., R.S.,
Ch. 192, Sec. 7.)
CHAPTER 8177. FLYING "L" PUBLIC UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8177.001.  DEFINITION
Sec. 8177.002.  NATURE OF DISTRICT
Sec. 8177.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8177.004.  DISTRICT TERRITORY
[Sections 8177.005-8177.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8177.051.  COMPOSITION OF BOARD
[Sections 8177.052-8177.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8177.101.  MUNICIPAL UTILITY DISTRICT POWERS
CHAPTER 8177. FLYING "L" PUBLIC UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8177.001.DEFINITION. In this chapter, "district"
means the Flying "L" Public Utility District. (V.A.C.S. Art.
8280-508, Sec. 1 (part).)
       Sec.8177.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Bandera County, created
under Section 59, Article XVI, Texas Constitution.  (V.A.C.S. Art.
8280-508, Sec. 1 (part).)
       Sec.8177.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.  
(V.A.C.S. Art. 8280-508, Secs. 1 (part), 3.)
       Sec.8177.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 4, Chapter 505, Acts
of the 62nd Legislature, Regular Session, 1971 (Article 8280-508,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (V.A.C.S. Art. 8280-508, Sec. 2; New.)
[Sections 8177.005-8177.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8177.051.COMPOSITION OF BOARD.  The board of
directors is composed of five elected directors.  (V.A.C.S. Art.
8280-508, Sec. 6 (part).)
[Sections 8177.052-8177.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8177.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district,
including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-508,
Sec. 5 (part).)
CHAPTER 8178. CY-CHAMP PUBLIC UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8178.001.  DEFINITIONS
Sec. 8178.002.  NATURE OF DISTRICT
Sec. 8178.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8178.004.  DISTRICT TERRITORY
[Sections 8178.005-8178.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8178.051.  COMPOSITION OF BOARD
[Sections 8178.052-8178.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8178.101.  MUNICIPAL UTILITY DISTRICT POWERS
CHAPTER 8178. CY-CHAMP PUBLIC UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8178.001.DEFINITIONS. In this chapter, "district"
means the Cy-Champ Public Utility District. (V.A.C.S. Art.
8280-573, Sec. 1 (part).)
       Sec.8178.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Harris County created
under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.
8280-573, Sec. 1 (part).)
       Sec.8178.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.
(V.A.C.S. Art. 8280-573, Secs. 1 (part), 3.)
       Sec.8178.004.DISTRICT TERRITORY. (a)  The district is
composed of the territory described by Section 4, Chapter 686, Acts
of the 62nd Legislature, Regular Session, 1971 (Article 8280-573,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (V.A.C.S. Art. 8280-573, Sec. 2; New.)
       [Sections 8178.005-8178.050 reserved for expansion]
       SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8178.051.COMPOSITION OF BOARD. The board of
directors is composed of five elected directors. (V.A.C.S. Art.
8280-573, Sec. 6 (part).)
       [Sections 8178.052-8178.100 reserved for expansion]
       SUBCHAPTER C. POWERS AND DUTIES
       Sec.8178.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district,
including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-573,
Sec. 5 (part); New.)
CHAPTER 8179. CYPRESS CREEK UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8179.001.  DEFINITIONS
Sec. 8179.002.  NATURE OF DISTRICT
Sec. 8179.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8179.004.  DISTRICT TERRITORY
[Sections 8179.005-8179.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 8179.051.  COMPOSITION OF BOARD
Sec. 8179.052.  DIRECTOR'S BOND
Sec. 8179.053.  BOARD VACANCY
Sec. 8179.054.  DISTRICT OFFICE
Sec. 8179.055.  ABSENCE OF PRESIDENT FROM BOARD MEETING
[Sections 8179.056-8179.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8179.101.  GENERAL POWERS AND DUTIES
Sec. 8179.102.  ADDITIONAL POWERS AND DUTIES
Sec. 8179.103.  EMINENT DOMAIN
Sec. 8179.104.  COST OF RELOCATING OR ALTERING PROPERTY
Sec. 8179.105.  CONTRACT FOR PURCHASE OF WATER, SEWER,
                 OR DRAINAGE SERVICES; ELECTION NOT
                 REQUIRED
Sec. 8179.106.  NOTICE OF ELECTION
Sec. 8179.107.  DISTRICT RULES
[Sections 8179.108-8179.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8179.151.  TAX METHOD
Sec. 8179.152.  DISTRICT ACCOUNTS
Sec. 8179.153.  COPY OF AUDIT REPORT
Sec. 8179.154.  PAYMENT OF TAX OR ASSESSMENT NOT
                 REQUIRED
Sec. 8179.155.  DIRECTOR AS SHAREHOLDER IN DEPOSITORY
[Sections 8179.156-8179.200 reserved for expansion]
SUBCHAPTER E.  BONDS
Sec. 8179.201.  USE OF BOND PROCEEDS DURING
                 CONSTRUCTION
CHAPTER 8179. CYPRESS CREEK UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8179.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Cypress Creek Utility
District. (V.A.C.S. Art. 8280-403, Sec. 1 (part); New.)
       Sec.8179.002.NATURE OF DISTRICT. The district is a
municipal utility district and a conservation and reclamation
district in Harris County, created under Section 59, Article XVI,
Texas Constitution. (V.A.C.S. Art. 8280-403, Sec. 1 (part); New.)
       Sec.8179.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.
       (d)  The accomplishment of the purposes stated in this
chapter is for the benefit of the people of this state and for the
improvement of their property and industries. The district in
carrying out the purposes of this chapter will be performing an
essential public function under the Texas Constitution. (V.A.C.S.
Art. 8280-403, Secs. 1 (part), 4, 24 (part).)
       Sec.8179.004.DISTRICT TERRITORY. (a)  The district is
composed of the territory described by Section 2, Chapter 146, Acts
of the 61st Legislature, Regular Session, 1969 (Article 8280-403,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code;
             (3)  former Section 9, Chapter 146, Acts of the 61st
Legislature, Regular Session, 1969 (Article 8280-403, Vernon's
Texas Civil Statutes); or
             (4)  other law.
       (b)  The boundaries and field notes of the district form a
closure. If a mistake is made in the field notes or in copying the
field notes in the legislative process, the mistake does not
affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or the
board. (V.A.C.S. Art. 8280-403, Sec. 3; New.)
[Sections 8179.005-8179.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
       Sec.8179.051.COMPOSITION OF BOARD. The board consists of
five directors. (V.A.C.S. Art. 8280-403, Sec. 10 (part).)
       Sec.8179.052.DIRECTOR'S BOND. (a)  Each director shall
execute a bond in the amount of $5,000 for the faithful performance
of the director's duties.
       (b)  The bond must be:
             (1)  approved by the county judge and the board;
             (2)  filed in the office of the county clerk of the
county or counties in which the district is located; and
             (3)  recorded in a record book kept for that purpose in
the district office. (V.A.C.S. Art. 8280-403, Sec. 10 (part).)
       Sec.8179.053.BOARD VACANCY. (a)  Except as provided by
Subsection (b), a vacancy in the office of director shall be filled
in the manner provided by Section 49.105, Water Code.
       (b)  The county judge of the county in which the district is
located shall appoint directors to fill all vacancies on the board
whenever the number of qualified directors is fewer than three.
(V.A.C.S. Art. 8280-403, Sec. 10 (part).)
       Sec.8179.054.DISTRICT OFFICE. (a)  Except as provided by
this section, the board shall designate, establish, and maintain a
district office as provided by Section 49.062, Water Code.
       (b)  The board may establish a second district office outside
the district. If the board establishes a second district office,
the board shall give notice of the location of that office by:
             (1)  filing a copy of the board resolution that
establishes the location of the office:
                   (A)  with the Texas Commission on Environmental
Quality; and
                   (B)  in the municipal utility district records of
each county in which the district is located; and
             (2)  publishing notice of the location of the office in
a newspaper of general circulation in each county in which the
district is located.
       (c)  A district office that is a private residence, office,
or dwelling is a public place for matters relating to district
business.
       (d)  The board shall provide notice of any change in the
location of the district office outside the district in the manner
required by Subsection (b). (V.A.C.S. Art. 8280-403, Sec. 15.)
       Sec.8179.055.ABSENCE OF PRESIDENT FROM BOARD MEETING. If
the board president is absent from a board meeting:
             (1)  the board vice president may:
                   (A)  sign an order adopted at the meeting; or
                   (B)  implement any other action taken at the
meeting; or
             (2)  the board may authorize the president to sign the
order or implement the action. (V.A.C.S. Art. 8280-403, Sec. 10
(part).)
[Sections 8179.056-8179.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8179.101.GENERAL POWERS AND DUTIES. The district has
all of the rights, powers, privileges, authority, and functions
conferred by the general laws of this state relating to municipal
utility districts created under Section 59, Article XVI, Texas
Constitution, including those conferred by Chapters 49 and 54,
Water Code. (V.A.C.S. Art. 8280-403, Sec. 5 (part).)
       Sec.8179.102.ADDITIONAL POWERS AND DUTIES. (a)  The
district may:
             (1)  make, purchase, construct, lease, or otherwise
acquire property, works, facilities, existing improvements, or
improvements to be made, constructed, or acquired that are:
                   (A)  inside or outside the district's boundaries;
and
                   (B)  necessary to carry out the powers granted by
this chapter or general law; or
             (2)  enter into a contract with a person on terms the
board considers desirable, fair, and advantageous for:
                   (A)  the purchase or sale of water;
                   (B)  the transportation, treatment, and disposal
of the domestic, industrial, or communal wastes of the district or
others;
                   (C)  the continuing and orderly development of
land and property in the district through the purchase,
construction, or installation of facilities, works, or
improvements that the district is otherwise authorized to do or
perform so that, to the greatest extent reasonably possible,
considering sound engineering and economic practices, all of the
land and property may ultimately receive the services of the
facilities, works, or improvements; and
                   (D)  the performance of any of the powers granted
by this chapter or general law.
       (b)  A contract under Subsection (a)(2) may not have a
duration of more than 40 years. (V.A.C.S. Art. 8280-403, Sec. 5
(part).)
       Sec.8179.103.EMINENT DOMAIN. The district may exercise
the power of eminent domain only:
             (1)  in a county in which the district is located; and
             (2)  when necessary to carry out the purposes for which
the district was created. (V.A.C.S. Art. 8280-403, Sec. 13
(part).)
       Sec.8179.104.COST OF RELOCATING OR ALTERING PROPERTY.
(a)  In this section, "sole expense" means the actual cost of
relocating, raising, lowering, rerouting, or changing the grade of
or altering the construction of a facility described by Subsection
(b) in providing comparable replacement without enhancement of the
facility, after deducting from that cost the net salvage value of
the old facility.
       (b)  If the district's exercise of the power of eminent
domain, the power of relocation, or any other power conferred by
this chapter makes necessary the relocation, raising, rerouting,
changing the grade, or alteration of the construction of a highway,
a railroad, an electric transmission line, a telegraph or telephone
property or facility, or a pipeline, the necessary action shall be
accomplished at the sole expense of the district. (V.A.C.S. Art.
8280-403, Sec. 13 (part).)
       Sec. 8179.105.  CONTRACT FOR PURCHASE OF WATER, SEWER, OR
DRAINAGE SERVICES; ELECTION NOT REQUIRED. (a)  The district may
enter into a contract with a political subdivision for water,
sewer, or drainage services or any combination of those services
without the necessity of an election by any contracting party.
       (b)  The district may pay for an obligation incurred by such
a contract by issuing bonds that, if otherwise necessary, have been
approved by the voters in the manner provided by this chapter.
       (c)  The district may deliver the district's bonds to any of
the following parties that enters into such a contract with the
district:
             (1)  the United States;
             (2)  an agency or instrumentality of the United States;
             (3)  this state; or
             (4)  an agency or instrumentality of this state.
(V.A.C.S. Art. 8280-403, Sec. 5 (part).)
       Sec.8179.106.NOTICE OF ELECTION. The board president or
secretary may give notice of an election. (V.A.C.S. Art. 8280-403,
Sec. 19.)
       Sec.8179.107.DISTRICT RULES. The district shall adopt
and enforce reasonable and effective rules to secure and maintain
safe, sanitary, and adequate plumbing installations, connections,
and appurtenances as subsidiary parts of the district's sewerage
system to preserve the quality of water within or controlled by the
district. (V.A.C.S. Art. 8280-403, Sec. 16.)
[Sections 8179.108-8179.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
       Sec.8179.151.TAX METHOD. (a)  The district shall use the
ad valorem plan of taxation.
       (b)  The board is not required to hold a hearing on the
adoption of a plan of taxation.  (V.A.C.S. Art. 8280-403, Sec. 8.)
       Sec.8179.152.DISTRICT ACCOUNTS. The district shall keep
a complete system of the district's accounts. (V.A.C.S. Art.
8280-403, Sec. 14 (part).)
       Sec.8179.153.COPY OF AUDIT REPORT. A copy of the audit
report prepared under Subchapter G, Chapter 49, Water Code, shall
be delivered:
             (1)  to each director; and
             (2)  on request to a holder of at least 25 percent of
the outstanding bonds of the district. (V.A.C.S. Art. 8280-403,
Sec. 14 (part).)
       Sec.8179.154.PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED.
The district is not required to pay a tax or assessment on:
             (1)  district property; or
             (2)  a purchase made by the district. (V.A.C.S. Art.
8280-403, Sec. 24 (part).)
       Sec.8179.155.DIRECTOR AS SHAREHOLDER IN DEPOSITORY. A
director may be a shareholder in a depository of district funds.
(V.A.C.S. Art. 8280-403, Sec. 14 (part).)
[Sections 8179.156-8179.200 reserved for expansion]
SUBCHAPTER E.  BONDS
       Sec.8179.201.USE OF BOND PROCEEDS DURING CONSTRUCTION.
(a)  The district may appropriate or set aside out of the proceeds
from the sale of any bonds issued under this chapter an amount for
the payment of interest, administrative, and operating expenses
expected to accrue during a period of construction, as may be
provided in the bond orders or resolutions.
       (b)  For purposes of this section, the period of construction
may not exceed three years.  (V.A.C.S. Art. 8280-403, Sec. 12
(part).)
CHAPTER 8180. CYPRESS FOREST PUBLIC UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8180.001.  DEFINITION
Sec. 8180.002.  NATURE OF DISTRICT
Sec. 8180.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8180.004.  DISTRICT TERRITORY
[Sections 8180.005-8180.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8180.051.  COMPOSITION OF BOARD
[Sections 8180.052-8180.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8180.101.  MUNICIPAL UTILITY DISTRICT POWERS
CHAPTER 8180. CYPRESS FOREST PUBLIC UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8180.001.DEFINITION. In this chapter, "district"
means Cypress Forest Public Utility District. (V.A.C.S. Art.
8280-479, Sec. 1 (part).)
       Sec.8180.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Harris County created
under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.
8280-479, Sec. 1 (part).)
       Sec.8180.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.
(V.A.C.S. Art. 8280-479, Secs. 1 (part), 3.)
       Sec.8180.004.DISTRICT TERRITORY. (a)  The district is
composed of the territory described by Section 4, Chapter 195, Acts
of the 62nd Legislature, Regular Session, 1971 (Article 8280-479,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (V.A.C.S. Art. 8280-479, Sec. 2; New.)
       [Sections 8180.005-8180.050 reserved for expansion]
       SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8180.051.COMPOSITION OF BOARD. The board of
directors is composed of five elected directors. (V.A.C.S. Art.
8280-479, Sec. 6 (part).)
       [Sections 8180.052-8180.100 reserved for expansion]
       SUBCHAPTER C. POWERS AND DUTIES
       Sec.8180.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district,
including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-479,
Sec. 5 (part); New.)
CHAPTER 8181. CYPRESS-KLEIN UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8181.001.  DEFINITION
Sec. 8181.002.  NATURE OF DISTRICT
Sec. 8181.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8181.004.  DISTRICT TERRITORY
[Sections 8181.005-8181.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8181.051.  COMPOSITION OF BOARD
[Sections 8181.052-8181.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8181.101.  MUNICIPAL UTILITY DISTRICT POWERS
CHAPTER 8181. CYPRESS-KLEIN UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8181.001.DEFINITION. In this chapter, "district"
means the Cypress-Klein Utility District. (V.A.C.S. Art. 8280-542,
Sec. 1 (part).)
       Sec.8181.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Harris County created
under Section 59, Article XVI, Texas Constitution.  (V.A.C.S. Art.
8280-542, Sec. 1 (part).)
       Sec.8181.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.
(V.A.C.S. Art. 8280-542, Secs. 1 (part), 3.)
       Sec.8181.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 4, Chapter 654, Acts
of the 62nd Legislature, Regular Session, 1971 (Article 8280-542,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (V.A.C.S. Art. 8280-542, Sec. 2; New.)
[Sections 8181.005-8181.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8181.051.COMPOSITION OF BOARD. The board of
directors is composed of five elected directors. (V.A.C.S. Art.
8280-542, Sec. 6 (part).)
[Sections 8181.052-8181.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8181.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district,
including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-542,
Sec. 5 (part); New.)
CHAPTER 8182. CYPRESSWOOD UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8182.001.  DEFINITION
Sec. 8182.002.  NATURE OF DISTRICT
Sec. 8182.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8182.004.  DISTRICT TERRITORY
[Sections 8182.005-8182.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8182.051.  COMPOSITION OF BOARD
[Sections 8182.052-8182.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8182.101.  MUNICIPAL UTILITY DISTRICT POWERS
CHAPTER 8182. CYPRESSWOOD UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8182.001.DEFINITION. In this chapter, "district"
means the Cypresswood Utility District. (V.A.C.S. Art. 8280-515,
Sec. 1 (part).)
       Sec.8182.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Harris County created
under Section 59, Article XVI, Texas Constitution.  (V.A.C.S. Art.
8280-515, Sec. 1 (part).)
       Sec.8182.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.
(V.A.C.S. Art. 8280-515, Secs. 1 (part), 3.)
       Sec.8182.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 4, Chapter 576, Acts
of the 62nd Legislature, Regular Session, 1971 (Article 8280-515,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (V.A.C.S. Art. 8280-515, Sec. 2; New.)
[Sections 8182.005-8182.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8182.051.COMPOSITION OF BOARD. The board of
directors is composed of five elected directors. (V.A.C.S. Art.
8280-515, Sec. 6 (part).)
[Sections 8182.052-8182.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8182.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district,
including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-515,
Sec. 5 (part); New.)
CHAPTER 8183.  DELTA COUNTY MUNICIPAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8183.001.  DEFINITIONS
Sec. 8183.002.  NATURE OF DISTRICT
Sec. 8183.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
[Sections 8183.004-8183.050 reserved for expansion]
SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS
TO DISTRICT TERRITORY
Sec. 8183.051.  DISTRICT TERRITORY
Sec. 8183.052.  ANNEXATION OF TERRITORY
Sec. 8183.053.  RESTRICTION ON ANNEXATION OF RAILROAD
                 RIGHT-OF-WAY
[Sections 8183.054-8183.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 8183.101.  QUALIFICATIONS FOR OFFICE
Sec. 8183.102.  APPOINTMENT OF SECRETARY AND TREASURER
Sec. 8183.103.  VOTE BY BOARD PRESIDENT
Sec. 8183.104.  DIRECTOR'S AND TREASURER'S BOND
Sec. 8183.105.  COMPENSATION
[Sections 8183.106-8183.150 reserved for expansion]
SUBCHAPTER D. GENERAL POWERS AND DUTIES
Sec. 8183.151.  CONTRACTS TO SUPPLY WATER OR SEWAGE
                 SERVICES
Sec. 8183.152.  ACQUISITION OF LAND AND OTHER PROPERTY
Sec. 8183.153.  CONSTRUCTION CONTRACTS
Sec. 8183.154.  SURPLUS PROPERTY
Sec. 8183.155.  EMINENT DOMAIN
Sec. 8183.156.  COST OF RELOCATING PROPERTY
[Sections 8183.157-8183.200 reserved for expansion]
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 8183.201.  DEPOSITORY
Sec. 8183.202.  TAX ASSESSOR AND COLLECTOR
Sec. 8183.203.  PROJECTS EXEMPT FROM ASSESSMENT OR
                 TAXATION
[Sections 8183.204-8183.250 reserved for expansion]
SUBCHAPTER F. BONDS
Sec. 8183.251.  AUTHORITY TO ISSUE BONDS
Sec. 8183.252.  FORM OF BONDS
Sec. 8183.253.  MATURITY
Sec. 8183.254.  ELECTION FOR BONDS PAYABLE FROM AD
                 VALOREM TAX
Sec. 8183.255.  BONDS PAYABLE FROM REVENUE
Sec. 8183.256.  BONDS PAYABLE FROM AD VALOREM TAXES
Sec. 8183.257.  TAX AND RATE REQUIREMENTS
Sec. 8183.258.  ADDITIONAL SECURITY
Sec. 8183.259.  TRUST INDENTURE
Sec. 8183.260.  USE OF BOND PROCEEDS
Sec. 8183.261.  APPOINTMENT OF RECEIVER
Sec. 8183.262.  REFUNDING BONDS
Sec. 8183.263.  LIMITATION ON RIGHTS OF HOLDERS
Sec. 8183.264.  BONDS EXEMPT FROM TAXATION
Sec. 8183.265.  DETACHMENT OF TERRITORY AFTER ISSUANCE
                 OF BONDS
CHAPTER 8183.  DELTA COUNTY MUNICIPAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8183.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Commissioners court" means the Commissioners
Court of Delta County.
             (3)  "Director" means a member of the board.
             (4)  "District" means the Delta County Municipal
Utility District. (V.A.C.S. Art. 8280-589, Sec. 1 (part); New.)
       Sec.8183.002.NATURE OF DISTRICT. The district is a
municipal utility district and a conservation and reclamation
district created under Section 59, Article XVI, Texas Constitution.
(V.A.C.S. Art. 8280-589, Sec. 1 (part); New.)
       Sec.8183.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
All territory in the district will benefit from the works and
improvements of the district.
       (b)  The accomplishment of the purposes stated in this
chapter is for the benefit of the people of this state for the
improvement of their property and industries. In carrying out the
purposes of this chapter, the district will be performing an
essential public function under the constitution. (V.A.C.S. Art.
8280-589, Secs. 2 (part), 17 (part).)
[Sections 8183.004-8183.050 reserved for expansion]
SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS
TO DISTRICT TERRITORY
       Sec.8183.051.DISTRICT TERRITORY. The boundaries of the
district are coextensive with the boundaries of Delta County unless
the district territory has been modified under this subchapter or
other law. (V.A.C.S. Art. 8280-589, Sec. 2 (part); New.)
       Sec.8183.052.ANNEXATION OF TERRITORY.  (a) The board may
annex territory if a petition requesting annexation is signed by a
majority of the registered voters of the territory who own taxable
property in the territory and is filed with the board. The petition
must describe the territory to be annexed by metes and bounds, or
otherwise, except that if the territory is the same as that
contained in the boundaries of a municipality, the petition is
sufficient if it states that the territory to be annexed is the
territory contained in the municipal boundaries.
       (b)  If the board determines that the petition complies with
Subsection (a), the board shall:
             (1)  adopt a resolution stating the conditions, if any,
under which the territory may be annexed to the district; and
             (2)  set a time and place to hold a hearing on the
question of whether the territory to be annexed will benefit from
the improvements, works, or facilities owned or operated or
contemplated to be owned or operated by the district.
       (c)  At least 10 days before the date of the hearing, notice
of the adoption of the resolution stating the time and place of the
hearing and addressed to the citizens and owners of property in the
territory to be annexed shall be published one time in a newspaper
designated by the board that is of general circulation in the
territory to be annexed. The notice must describe the territory in
the same manner in which Subsection (a) requires the petition to
describe the territory.
       (d)  Any interested person may appear at the hearing and
offer evidence for or against the annexation.
       (e)  The hearing may proceed in the order and under the rules
prescribed by the board and may be recessed from time to time.
       (f)  If, at the conclusion of the hearing, the board finds
that the land in the territory will benefit from the present or
contemplated improvements, works, or facilities of the district,
the board may adopt a resolution annexing the territory to the
district. (V.A.C.S. Art. 8280-589, Secs. 5(a), (b) (part), (c),
(d).)
       Sec. 8183.053.  RESTRICTION ON ANNEXATION OF RAILROAD
RIGHT-OF-WAY.  (a)  A railroad right-of-way may not be annexed to
the district unless the right-of-way is contained in the limits of a
municipality annexed at the same time or previously annexed to the
district.
       (b)  A railroad right-of-way that is not in the limits of a
municipality will not benefit from improvements, works, and
facilities the district is authorized to construct.  (V.A.C.S. Art.
8280-589, Sec. 5(b) (part).)
[Sections 8183.054-8183.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS
       Sec.8183.101.QUALIFICATIONS FOR OFFICE. (a)  A person may
not be appointed a director unless the person resides in Delta
County or in a county all or a portion of which is contained in the
district.
       (b)  A person may not be appointed a director unless the
person resides in and owns taxable property in the district.
(V.A.C.S. Art. 8280-589, Secs. 3(c) (part), 4 (part).)
       Sec.8183.102.APPOINTMENT OF SECRETARY AND TREASURER. The
board shall appoint a secretary and a treasurer, who are not
required to be directors. The board may combine the offices of
secretary and treasurer. (V.A.C.S. Art. 8280-589, Sec. 4 (part).)
       Sec.8183.103.VOTE BY BOARD PRESIDENT. The president has
the same right to vote as any other director. The vice president
may not exercise the president's right to vote. (V.A.C.S. Art.
8280-589, Sec. 4 (part).)
       Sec.8183.104.DIRECTOR'S AND TREASURER'S BOND. (a) Each
director shall give bond in the amount of $5,000 conditioned on the
faithful performance of the director's duties.
       (b)  The treasurer shall give bond in the amount required by
the board. The treasurer's bond shall be conditioned on the
treasurer's faithful accounting for all money that comes into the
treasurer's custody as treasurer of the district. (V.A.C.S. Art.
8280-589, Secs. 3(c) (part), 4 (part).)
       Sec.8183.105.COMPENSATION. Unless the board by
resolution increases the fee to an amount authorized by Section
49.060, Water Code, each director:
             (1)  shall receive a fee for attending each meeting of
the board not to exceed $20 for a meeting or $40 in one calendar
month; and
             (2)  is entitled to an additional amount not to exceed
$20 for each day that the director devotes to serving the business
of the district if the service is expressly approved by the board.
(V.A.C.S. Art. 8280-589, Sec. 3(d) (part).)
[Sections 8183.106-8183.150 reserved for expansion]
SUBCHAPTER D. GENERAL POWERS AND DUTIES
       Sec. 8183.151.  CONTRACTS TO SUPPLY WATER OR SEWAGE
SERVICES. (a)  The district may contract with a municipality or
other entity to supply to the entity water or sewage
transportation, treatment, or disposal services.
       (b)  The district may contract with a municipality for the
rental or leasing of or for the operation of the municipality's
water production, water supply, water filtration or purification,
or water supply facilities or the municipality's sewage collection,
treatment, and disposal system on the consideration agreed to by
the district and the municipality.
       (c)  The contract may be on terms and for the time agreed to
by the parties.
       (d)  The contract may provide that it will continue in effect
until bonds specified in it and refunding bonds issued in lieu of
the bonds are paid.
       (e)  The district may contract with a municipality for the
operation of the district's water and sewer system by the
municipality. (V.A.C.S. Art. 8280-589, Sec. 14.)
       Sec.8183.152.ACQUISITION OF LAND AND OTHER PROPERTY. The
district may acquire the fee simple title to land and other property
or easements inside or outside the district and may construct,
lease, or otherwise acquire all works, plants, and other facilities
necessary or useful to:
             (1)  divert, impound, store, or treat water for, or
transport water to, municipalities and others inside or outside the
district for municipal, domestic, industrial, or mining purposes;
or
             (2)  provide sewage collection, transportation,
treatment, or disposal services to municipalities and others inside
or outside the district. (V.A.C.S. Art. 8280-589, Sec. 6 (part).)
       Sec.8183.153.CONSTRUCTION CONTRACTS. (a) The district
may award a construction contract that requires an expenditure of
more than $5,000 only after publication of notice to bidders once
each week for two weeks in a newspaper of general circulation in the
district that is designated or approved by the board.
       (b)  The notice is sufficient if it states:
             (1)  the time and place for opening the bids;
             (2)  the general nature of the work to be done or the
material, equipment, or supplies to be purchased; and
             (3)  the place where and the terms on which copies of
the plans and specifications may be obtained. (V.A.C.S. Art.
8280-589, Sec. 8.)
       Sec.8183.154.SURPLUS PROPERTY. Subject to the terms of a
deed of trust issued by the district, the district may sell, trade,
or otherwise dispose of property the board considers not needed for
district purposes. (V.A.C.S. Art. 8280-589, Sec. 6 (part).)
       Sec.8183.155.EMINENT DOMAIN. (a) To carry out a power
provided by this chapter, the district may exercise the power of
eminent domain to acquire the fee simple title to land and other
property and easements, inside or outside the district, including
land needed for a reservoir, dam, or flood easement above the
probable high-water line around a reservoir.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code.
       (c)  The district is a municipal corporation for the purposes
of Chapter 21, Property Code.
       (d)  The district may not exercise the power of eminent
domain to acquire property owned by any other political
subdivision.
       (e)  In exercising the power of eminent domain against a
person that has the power of eminent domain or a receiver or trustee
for that person, the district may acquire an easement only and not
the fee title.
       (f)  The board shall determine the amount of and the type of
interest in land, other property, or easements to be acquired under
this section.  (V.A.C.S. Art. 8280-589, Sec. 7 (part).)
       Sec.8183.156.COST OF RELOCATING PROPERTY. If the
district's exercise of any power granted under this chapter makes
necessary relocating, raising, rerouting or changing the grade of,
or altering the construction of any highway, railroad, electric
transmission line, telephone or telegraph property and facility, or
pipeline, the action shall be accomplished at the sole expense of
the district. (V.A.C.S. Art. 8280-589, Sec. 6 (part).)
[Sections 8183.157-8183.200 reserved for expansion]
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
       Sec.8183.201.DEPOSITORY. (a) The board shall designate
one or more banks inside or outside the district to serve as
depository for district money.
       (b)  All district money shall be deposited in a designated
depository, except that:
             (1)  bond proceeds and money pledged to pay bonds, to
the extent provided in the indenture, may be deposited with the
trustee bank named in the trust indenture; and
             (2)  money shall be remitted to the bank of payment for
the payment of principal of and interest on the bonds.
       (c)  To the extent that money in a depository bank or the
trustee bank is not insured by the Federal Deposit Insurance
Corporation, the money must be secured in the manner provided by law
for the security of county funds.
       (d)  The board shall prescribe the terms of service for
depositories.
       (e)  Before designating a depository bank, the board shall:
             (1)  publish notice one time in a newspaper of general
circulation in the district that is specified by the board; or
             (2)  mail a copy of the notice to each bank in the
district.
       (f)  The notice must:
             (1)  state the time and place at which the board will
meet to designate a depository bank or banks; and
             (2)  invite each bank in the district to submit an
application to be designated as a depository.
       (g)  At the time stated in the notice, the board shall:
             (1)  consider the applications and the management and
condition of each bank; and
             (2)  designate as a depository the bank or banks:
                   (A)  that offer the most favorable terms for the
handling of the money; and
                   (B)  that the board finds have proper management
and are in condition to handle the money.
       (h)  Membership on the board of an officer or director of a
bank does not disqualify the bank from being designated as a
depository.
       (i)  If the board does not receive any applications before
the time stated in the notice, the board shall designate one or more
banks inside or outside the district on terms that the board finds
advantageous to the district.  (V.A.C.S. Art. 8280-589, Sec. 15.)
       Sec.8183.202.TAX ASSESSOR AND COLLECTOR. Before the sale
and delivery of district bonds payable wholly or partly from ad
valorem taxes, the board may appoint a tax assessor and collector.
(V.A.C.S. Art. 8280-589, Sec. 18(b) (part).)
       Sec.8183.203.PROJECTS EXEMPT FROM ASSESSMENT OR TAXATION.
The district is not required to pay a tax or assessment on a project
or any part of a project. (V.A.C.S. Art. 8280-589, Sec. 17 (part).)
[Sections 8183.204-8183.250 reserved for expansion]
SUBCHAPTER F. BONDS
       Sec.8183.251.AUTHORITY TO ISSUE BONDS.  The district may
issue bonds to carry out any power conferred by this chapter. The
bonds must be authorized by a board resolution. (V.A.C.S. Art.
8280-589, Secs. 9(a) (part), (b) (part), (c) (part).)
       Sec.8183.252.FORM OF BONDS. A district bond must be:
             (1)  issued in the district's name;
             (2)  signed by the president or vice president; and
             (3)  attested by the secretary. (V.A.C.S. Art.
8280-589, Sec. 9(b) (part).)
       Sec.8183.253.MATURITY. District bonds must mature not
later than 40 years after their date of issuance. (V.A.C.S. Art.
8280-589, Sec. 9(b) (part).)
       Sec. 8183.254.  ELECTION FOR BONDS PAYABLE FROM AD VALOREM
TAX. (a) Bonds, other than refunding bonds, payable wholly or
partly from ad valorem taxes may not be issued unless authorized by
a majority of the district voters voting at an election.
       (b)  The board may order an election under this section
without a petition. The order must specify:
             (1)  the time and places at which the election will be
held;
             (2)  the purpose for which the bonds will be issued;
             (3)  the maximum amount of the bonds;
             (4)  the maximum maturity of the bonds;
             (5)  the form of the ballot; and
             (6)  the presiding judge for each voting place.
       (c)  Notice of the election must be given by publishing a
substantial copy of the order calling the election in a newspaper of
general circulation in each municipality located in the district.
The notice must be published once a week for two consecutive weeks.
The first publication must be not later than the 21st day before the
date of the election. (V.A.C.S. Art. 8280-589, Secs. 12(a) (part),
(b) (part).)
       Sec.8183.255.BONDS PAYABLE FROM REVENUE. (a) Bonds
issued under this subchapter may be secured under board resolution
by a pledge of:
             (1)  all or part of the net revenue of the district;
             (2)  the net revenue of one or more contracts made
before or after the issuance of the bonds; or
             (3)  other revenue or income specified by resolution of
the board or in the trust indenture.
       (b)  The pledge may reserve the right to issue additional
bonds on a parity with, or subordinate to, the bond being issued,
subject to conditions specified in the pledge.
       (c)  Bonds not payable wholly or partly from ad valorem taxes
may be issued without an election. (V.A.C.S. Art. 8280-589, Secs.
9(a) (part), (d), 12(a) (part).)
       Sec.8183.256.BONDS PAYABLE FROM AD VALOREM TAXES. The
district may issue bonds payable, as pledged by board resolution,
from:
             (1)  ad valorem taxes imposed on taxable property in
the district; or
             (2)  ad valorem taxes and revenue of the district.
(V.A.C.S. Art. 8280-589, Secs. 9(a) (part), (e) (part).)
       Sec.8183.257.TAX AND RATE REQUIREMENTS. (a) If the
district issues bonds payable wholly or partly from ad valorem
taxes, the board shall impose a tax sufficient to pay the bonds and
the interest on the bonds as the bonds and interest become due. The
board may adopt the rate of the tax after considering the money
received from the other pledged revenue available for payment of
principal and interest to the extent and in the manner permitted by
the resolution authorizing the issuance of the bonds.
       (b)  If the district issues bonds payable wholly or partly
from revenue, the board shall set and revise the rates of
compensation for water sold and services rendered by the district.
       (c)  For bonds payable wholly from revenue, the rates of
compensation must be sufficient to:
             (1)  pay the expense of operating and maintaining the
facilities of the district;
             (2)  pay the bonds as they mature and the interest as it
accrues; and
             (3)  maintain the reserve and other funds as provided
in the resolution authorizing the issuance of the bonds.
       (d)  For bonds payable partly from revenue, the rates of
compensation must be sufficient to assure compliance with the
resolution authorizing the issuance of the bonds or the trust
indenture securing the bonds. (V.A.C.S. Art. 8280-589, Secs. 9(e)
(part), (f).)
       Sec.8183.258.ADDITIONAL SECURITY. (a) Bonds not payable
wholly from ad valorem taxes may be additionally secured, at the
discretion of the board, by a deed of trust or mortgage lien on
physical property of the district, franchises, easements, water
rights and appropriation permits, leases, contracts, and all rights
appurtenant to the property, vesting in the trustee the power to:
             (1)  sell the property for the payment of the debt;
             (2)  operate the property; and
             (3)  take other action to further secure the bonds.
       (b)  A purchaser under a sale under the deed of trust lien, if
one is given:
             (1)  is the absolute owner of property, facilities, and
rights purchased; and
             (2)  is entitled to maintain and operate the property,
facilities, and rights. (V.A.C.S. Art. 8280-589, Sec. 11 (part).)
       Sec.8183.259.TRUST INDENTURE. (a) A bond issued under
this subchapter, including a refunding bond, that is not payable
wholly from ad valorem taxes may be additionally secured by a trust
indenture. The trustee may be a bank with trust powers located
inside or outside this state.
       (b)  A trust indenture, regardless of the existence of the
deed of trust or mortgage lien on the property, may:
             (1)  provide for the security of the bonds and the
preservation of the trust estate in the manner prescribed by the
board;
             (2)  provide for amendment or modification of the trust
indenture;
             (3)  provide for the issuance of bonds to replace lost
or mutilated bonds;
             (4)  condition the right to spend district money or
sell district property on the approval of a licensed engineer
selected as provided by the trust indenture; and
             (5)  provide for the investment of district money.
(V.A.C.S. Art. 8280-589, Sec. 11 (part).)
       Sec.8183.260.USE OF BOND PROCEEDS. (a) The district may
set aside an amount of proceeds from the sale of bonds issued under
this subchapter for:
             (1)  payment of interest expected to accrue during
construction;
             (2)  a reserve interest and sinking fund; and
             (3)  any other fund provided for in the resolution
authorizing the bonds or in the trust indenture.
       (b)  The district may use proceeds from the sale of the bonds
to pay any expense necessarily incurred in accomplishing the
purpose of the district, including any expense of issuing and
selling the bonds.
       (c)  The district may temporarily invest proceeds from the
sale of the bonds and other district funds in securities that are
specified in the bond resolution or the trust indenture. (V.A.C.S.
Art. 8280-589, Sec. 9(g).)
       Sec.8183.261.APPOINTMENT OF RECEIVER. (a) On default or
threatened default in the payment of principal of or interest on
bonds issued under this subchapter that are payable wholly or
partly from revenue, a court may, on petition of the holders of
outstanding bonds, appoint a receiver for the district.
       (b)  The receiver may collect and receive all district income
except taxes, employ and discharge district agents and employees,
take charge of money on hand except money received from taxes,
unless commingled, and manage the proprietary affairs of the
district without consent or hindrance by the board.
       (c)  The receiver may be authorized to sell or contract for
the sale of water or to renew those contracts with the approval of
the court that appointed the receiver.
       (d)  The court may vest the receiver with any other power or
duty the court finds necessary to protect the bondholders.
(V.A.C.S. Art. 8280-589, Sec. 9(h) (part).)
       Sec.8183.262.REFUNDING BONDS. (a) The district may issue
refunding bonds to refund outstanding bonds issued under this
subchapter and interest on those bonds.
       (b)  Refunding bonds may:
             (1)  be issued to refund bonds of more than one series;
             (2)  combine the pledges for the outstanding bonds for
the security of the refunding bonds; or
             (3)  be secured by a pledge of other or additional
revenue or mortgage liens.
       (c)  The provisions of this subchapter regarding the
issuance of other bonds, their security, and the remedies of the
holders apply to refunding bonds.
       (d)  The comptroller shall register the refunding bonds on
surrender and cancellation of the bonds to be refunded.
       (e)  Instead of issuing bonds to be registered on the
surrender and cancellation of the bonds to be refunded, the
district, in the resolution authorizing the issuance of the
refunding bonds, may provide for the sale of the refunding bonds and
the deposit of the proceeds in a bank at which the bonds to be
refunded are payable. In that case, the refunding bonds may be
issued in an amount sufficient to pay the principal of and interest
on the bonds to be refunded to their option date or maturity date,
and the comptroller shall register the refunding bonds without the
concurrent surrender and cancellation of the bonds to be refunded.
       (f)  An election is not required for refunding bonds.  
(V.A.C.S. Art. 8280-589, Sec. 10.)
       Sec.8183.263.LIMITATION ON RIGHTS OF HOLDERS. The
resolution authorizing the bonds or the trust indenture securing
the bonds may limit or qualify the rights of the holders of less
than all of the outstanding bonds payable from the same source to
institute or prosecute litigation affecting the district's
property or income. (V.A.C.S. Art. 8280-589, Sec. 9(h) (part).)
       Sec.8183.264.BONDS EXEMPT FROM TAXATION. A bond issued
under this subchapter, the transfer of the bond, and income from the
bond, including profits made on the sale of the bond, are exempt
from taxation in this state. (V.A.C.S. Art. 8280-589, Sec. 17
(part).)
       Sec. 8183.265.  DETACHMENT OF TERRITORY AFTER ISSUANCE OF
BONDS. Territory may not be detached from the district after the
issuance of bonds payable from revenue or taxes. (V.A.C.S. Art.
8280-589, Sec. 12(a) (part).)
CHAPTER 8184. DOWDELL PUBLIC UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8184.001.  DEFINITION
Sec. 8184.002.  NATURE OF DISTRICT
Sec. 8184.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8184.004.  DISTRICT TERRITORY
[Sections 8184.005-8184.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8184.051.  COMPOSITION OF BOARD
[Sections 8184.052-8184.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8184.101.  MUNICIPAL UTILITY DISTRICT POWERS
CHAPTER 8184. DOWDELL PUBLIC UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8184.001.DEFINITION. In this chapter, "district"
means the Dowdell Public Utility District. (V.A.C.S. Art.
8280-581, Sec. 1 (part).)
       Sec.8184.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Harris County created
under Section 59, Article XVI, Texas Constitution.  (V.A.C.S. Art.
8280-581, Sec. 1 (part).)
       Sec.8184.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.
(V.A.C.S. Art. 8280-581, Secs. 1 (part), 3.)
       Sec.8184.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 4, Chapter 697, Acts
of the 62nd Legislature, Regular Session, 1971 (Article 8280-581,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (V.A.C.S. Art. 8280-581, Sec. 2; New.)
[Sections 8184.005-8184.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8184.051.COMPOSITION OF BOARD. The board of
directors is composed of five elected directors. (V.A.C.S. Art.
8280-581, Sec. 6 (part).)
[Sections 8184.052-8184.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8184.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district,
including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-581,
Sec. 5 (part); New.)
CHAPTER 8186.  EAST MONTGOMERY COUNTY MUNICIPAL
UTILITY DISTRICT NO. 3
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8186.001.  DEFINITION
Sec. 8186.002.  NATURE OF DISTRICT
Sec. 8186.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8186.004.  DISTRICT TERRITORY
[Sections 8186.005-8186.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8186.051.  COMPOSITION OF BOARD; TERMS
[Sections 8186.052-8186.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8186.101.  MUNICIPAL UTILITY DISTRICT POWERS
Sec. 8186.102.  COMPLIANCE WITH MUNICIPAL CONSENT
                 ORDINANCES OR RESOLUTIONS
CHAPTER 8186.  EAST MONTGOMERY COUNTY MUNICIPAL
UTILITY DISTRICT NO. 3
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8186.001.DEFINITION. In this chapter, "district"
means the East Montgomery County Municipal Utility District No. 3.  
(Acts 77th Leg., R.S., Ch. 1385, Sec. 2.)
       Sec.8186.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Montgomery County,
created under Section 59, Article XVI, Texas Constitution. (Acts
77th Leg., R.S., Ch. 1385, Secs. 1(a) (part), (b) (part).)
       Sec.8186.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the district
will benefit from the works and projects accomplished by the
district under the powers conferred by Section 59, Article XVI,
Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution. (Acts
77th Leg., R.S., Ch. 1385, Secs. 1(b) (part), 5.)
       Sec.8186.004.DISTRICT TERRITORY.  (a) The district is
composed of the territory described by Section 3, Chapter 1385,
Acts of the 77th Legislature, Regular Session, 2001, as that
territory may have been modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, or
validity;
             (2)  the validity of district bonds, notes, or other
indebtedness;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (Acts 77th Leg., R.S., Ch. 1385, Sec. 4; New.)
[Sections 8186.005-8186.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8186.051.COMPOSITION OF BOARD; TERMS.  (a) The
district is governed by a board of five directors.
       (b)  Directors serve staggered four-year terms. (Acts 77th
Leg., R.S., Ch. 1385, Secs. 7(a), (d).)
[Sections 8186.052-8186.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8186.101.MUNICIPAL UTILITY DISTRICT POWERS.  The
district has the rights, powers, privileges, functions, and duties
provided by general law applicable to a municipal utility district
created under Section 59, Article XVI, Texas Constitution,
including Chapters 49, 50, and 54, Water Code. (Acts 77th Leg.,
R.S., Ch. 1385, Sec. 6(a) (part).)
       Sec. 8186.102.  COMPLIANCE WITH MUNICIPAL CONSENT
ORDINANCES OR RESOLUTIONS. Subject to the limitations of Section
54.016, Water Code, the district shall comply with all applicable
requirements of any ordinance or resolution adopted by any
municipality in whose corporate limits or extraterritorial
jurisdiction the district is located, including an ordinance or
resolution adopted before September 1, 2001, that consents to the
creation of the district or to the inclusion of lands in the
district.  (Acts 77th Leg., R.S., Ch. 1385, Sec. 11.)
CHAPTER 8187.  GOBER MUNICIPAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8187.001.  DEFINITIONS 
Sec. 8187.002.  NATURE OF DISTRICT 
Sec. 8187.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE 
Sec. 8187.004.  DISTRICT TERRITORY 
[Sections 8187.005-8187.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8187.051.  COMPOSITION OF BOARD; TERMS 
[Sections 8187.052-8187.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8187.101.  MUNICIPAL UTILITY DISTRICT POWERS 
CHAPTER 8187.  GOBER MUNICIPAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8187.001.DEFINITIONS. In this chapter:
             (1)  "Director" means a member of the district's board
of directors.
             (2)  "District" means the Gober Municipal Utility
District.  (Acts 75th Leg., R.S., Ch. 756, Sec. 2; New.)
       Sec.8187.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Fannin County created
under Section 59, Article XVI, Texas Constitution.  (Acts 75th
Leg., R.S., Ch. 756, Secs. 1(a) (part), (b) (part).)
       Sec.8187.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property in the district will benefit
from the works and projects to be accomplished by the district under
powers conferred by Section 59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.  (Acts
75th Leg., R.S., Ch. 756, Secs. 1(b) (part), 5.)
       Sec.8187.004.DISTRICT TERRITORY. (a)  The district is
composed of the territory described by Section 3, Chapter 756, Acts
of the 75th Legislature, Regular Session, 1997, as that territory
may have been modified under:
             (1)  Subchapter J, Chapter 49, Water Code;
             (2)  Subchapter H, Chapter 54, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, or
validity;
             (2)  the district's right to impose a tax; or
             (3)  the legality or operation of the district or its
governing body. (New; Acts 75th Leg., R.S., Ch. 756, Sec. 4.)
[Sections 8187.005-8187.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8187.051.COMPOSITION OF BOARD; TERMS. (a)  The
district is governed by a board of five directors.
       (b)  Directors serve staggered terms of four years.  (Acts
75th Leg., R.S., Ch. 756, Secs. 7(a), (d).)
[Sections 8187.052-8187.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8187.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, functions, and duties
provided by general law applicable to a municipal utility district
created under Section 59, Article XVI, Texas Constitution,
including Chapters 49 and 54, Water Code.  (Acts 75th Leg., R.S.,
Ch. 756, Sec. 6(a) (part).)
CHAPTER 8188.  GRANT ROAD PUBLIC UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8188.001.  DEFINITION
Sec. 8188.002.  NATURE OF DISTRICT
Sec. 8188.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8188.004.  DISTRICT TERRITORY
[Sections 8188.005-8188.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8188.051.  COMPOSITION OF BOARD
[Sections 8188.052-8188.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8188.101.  MUNICIPAL UTILITY DISTRICT POWERS
CHAPTER 8188.  GRANT ROAD PUBLIC UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8188.001.DEFINITION. In this chapter, "district"
means the Grant Road Public Utility District. (V.A.C.S. Art.
8280-504, Sec. 1 (part).)
       Sec.8188.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Harris County, created
under Section 59, Article XVI, Texas Constitution.  (V.A.C.S. Art.
8280-504, Sec. 1 (part).)
       Sec.8188.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.  
(V.A.C.S. Art. 8280-504, Secs. 1 (part), 3.)
       Sec.8188.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 4, Chapter 474, Acts
of the 62nd Legislature, Regular Session, 1971 (Article 8280-504,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (V.A.C.S. Art. 8280-504, Sec. 2; New.)
[Sections 8188.005-8188.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8188.051.COMPOSITION OF BOARD.  The board of
directors is composed of five elected directors.  (V.A.C.S. Art.
8280-504, Sec. 6 (part).)
[Sections 8188.052-8188.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8188.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district,
including Chapters 49 and 54, Water Code. (V.A.C.S. Art. 8280-504,
Sec. 5 (part).)
CHAPTER 8191.  HACIENDAS DEL NORTE WATER IMPROVEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8191.001.  DEFINITION
Sec. 8191.002.  NATURE OF DISTRICT
Sec. 8191.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8191.004.  DISTRICT TERRITORY
[Sections 8191.005-8191.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8191.051.  COMPOSITION OF BOARD
[Sections 8191.052-8191.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8191.101.  MUNICIPAL UTILITY DISTRICT POWERS
CHAPTER 8191.  HACIENDAS DEL NORTE WATER IMPROVEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8191.001.DEFINITION. In this chapter, "district"
means the Haciendas Del Norte Water Improvement District. (Acts
67th Leg., R.S., Ch. 104, Sec. 1 (part).)
       Sec.8191.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in El Paso County, created
under Section 59, Article XVI, Texas Constitution.  (Acts 67th
Leg., R.S., Ch. 104, Sec. 1 (part).)
       Sec.8191.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.  (Acts
67th Leg., R.S., Ch. 104, Secs. 1 (part), 3.)
       Sec.8191.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 4, Chapter 104, Acts
of the 67th Legislature, Regular Session, 1981, as that territory
may have been modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (Acts 67th Leg., R.S., Ch. 104, Sec. 2; New.)
[Sections 8191.005-8191.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8191.051.COMPOSITION OF BOARD.  The board of
directors is composed of five elected directors.  (Acts 67th Leg.,
R.S., Ch. 104, Sec. 6 (part).)
[Sections 8191.052-8191.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8191.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district,
including Chapters 49 and 54, Water Code. (Acts 67th Leg., R.S.,
Ch. 104, Sec. 5 (part).)
CHAPTER 8192. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 233
OF HARRIS COUNTY, TEXAS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8192.001.  DEFINITION
Sec. 8192.002.  NATURE OF DISTRICT
Sec. 8192.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8192.004.  DISTRICT TERRITORY
[Sections 8192.005-8192.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8192.051.  COMPOSITION OF BOARD; TERMS
Sec. 8192.052.  BOARD VACANCY
[Sections 8192.053-8192.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8192.101.  MUNICIPAL UTILITY DISTRICT POWERS
Sec. 8192.102.  COMPLIANCE WITH MUNICIPAL CONSENT
                 ORDINANCES OR RESOLUTIONS
CHAPTER 8192. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 233
OF HARRIS COUNTY, TEXAS
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8192.001.DEFINITION. In this chapter, "district"
means the Harris County Municipal Utility District No. 233 of
Harris County, Texas. (Acts 68th Leg., R.S., Ch. 704, Sec. 1
(part).)
       Sec.8192.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Harris County, created
under Section 59, Article XVI, Texas Constitution.  (Acts 68th
Leg., R.S., Ch. 704, Sec. 1 (part).)
       Sec.8192.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.  (Acts
68th Leg., R.S., Ch. 704, Secs. 1 (part), 4.)
       Sec.8192.004.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 2, Chapter 704, Acts
of the 68th Legislature, Regular Session, 1983, as that territory
may have been modified under:
             (1)  Subchapter H, Chapter 54, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue bonds for a purpose
for which the district is created or to pay the principal of and
interest on the bonds;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (Acts 68th Leg., R.S., Ch. 704, Sec. 3; New.)
[Sections 8192.005-8192.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8192.051.COMPOSITION OF BOARD; TERMS.  (a)  The board
of directors is composed of five elected directors.
       (b)  Directors serve staggered four-year terms, with two or
three directors elected at each election. (Acts 68th Leg., R.S.,
Ch. 704, Sec. 6 (part).)
       Sec.8192.052.BOARD VACANCY. If at any time there are fewer
than three qualified directors for any reason, on petition of a
landowner in the district, the Texas Commission on Environmental
Quality shall appoint the necessary number of directors to fill all
vacancies on the board. (Acts 68th Leg., R.S., Ch. 704, Sec. 6
(part).)
[Sections 8192.053-8192.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.8192.101.MUNICIPAL UTILITY DISTRICT POWERS. The
district has the rights, powers, privileges, and functions provided
by general law applicable to a municipal utility district,
including Chapters 49 and 54, Water Code. (Acts 68th Leg., R.S.,
Ch. 704, Sec. 5 (part).)
       Sec. 8192.102.  COMPLIANCE WITH MUNICIPAL CONSENT
ORDINANCES OR RESOLUTIONS. The district shall comply with all
applicable requirements of a Houston City Council ordinance or
resolution that consented to the creation of the district or the
inclusion of land in the district. (Acts 68th Leg., R.S., Ch. 704,
Sec. 7 (part).)
       SECTION 1.11.  Subtitle H, Title 6, Special District Local
Laws Code, is amended by adding Chapter 8806 to read as follows:
CHAPTER 8806.  COKE COUNTY UNDERGROUND WATER
CONSERVATION DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8806.001.  DEFINITIONS
Sec. 8806.002.  NATURE OF DISTRICT
Sec. 8806.003.  FINDINGS OF PUBLIC USE AND BENEFIT
Sec. 8806.004.  DISTRICT TERRITORY
Sec. 8806.005.  ADMINISTRATIVE PROCEDURES
Sec. 8806.006.  CONFLICT OF LAW
[Sections 8806.007-8806.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8806.051.  COMPOSITION OF BOARD; TERMS
Sec. 8806.052.  METHOD OF ELECTING DIRECTORS
Sec. 8806.053.  ELECTION DATE
Sec. 8806.054.  QUALIFICATIONS FOR ELECTION
[Sections 8806.055-8806.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8806.101.  GENERAL RIGHTS, POWERS, DUTIES,
                 PRIVILEGES, AND FUNCTIONS
Sec. 8806.102.  WELL PERMITS
Sec. 8806.103.  WELL SPACING AND PRODUCTION
Sec. 8806.104.  RECORDS, REPORTS, AND LOGS
Sec. 8806.105.  ACQUISITION OF LAND
Sec. 8806.106.  RECHARGE OF RESERVOIR
Sec. 8806.107.  SURVEYS
Sec. 8806.108.  DISTRICT PLANS
Sec. 8806.109.  RESEARCH PROJECTS
Sec. 8806.110.  COLLECTION AND PRESERVATION OF
                 INFORMATION
Sec. 8806.111.  DISSEMINATION OF PLANS AND INFORMATION
Sec. 8806.112.  CONTRACT FOR AND SALE AND DISTRIBUTION
                 OF WATER
Sec. 8806.113.  ANNEXATION
Sec. 8806.114.  DISSOLUTION
CHAPTER 8806.  COKE COUNTY UNDERGROUND WATER
CONSERVATION DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.8806.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Coke County Underground Water
Conservation District. (Acts 69th Leg., R.S., Ch. 950, Sec. 2;
New.)
       Sec.8806.002.NATURE OF DISTRICT. The district is created
under Section 59, Article XVI, Texas Constitution, to provide for
the conservation, preservation, protection, recharge, and
prevention of waste of the groundwater reservoirs located under
district land, consistent with the objectives of Section 59,
Article XVI, Texas Constitution, and Chapters 36 and 51, Water
Code. (Acts 69th Leg., R.S., Ch. 950, Secs. 1 (part), 4.)
       Sec.8806.003.FINDINGS OF PUBLIC USE AND BENEFIT.  (a)  The
district is created to serve a public use and benefit.
       (b)  Land included in the boundaries of the district will
benefit. (Acts 69th Leg., R.S., Ch. 950, Sec. 8(a).)
       Sec.8806.004.DISTRICT TERRITORY. The boundaries of the
district are coextensive with the boundaries of Coke County, Texas.
(Acts 69th Leg., R.S., Ch. 950, Sec. 3.)
       Sec.8806.005.ADMINISTRATIVE PROCEDURES. The
administrative and procedural provisions of Chapters 36 and 51,
Water Code, apply to the district. (Acts 69th Leg., R.S., Ch. 950,
Sec. 6 (part).)
       Sec.8806.006.CONFLICT OF LAW. If there is a conflict
between Chapters 36 and 51, Water Code, Chapter 36 controls.  (Acts
69th Leg., R.S., Ch. 950, Sec. 13 (part).)
[Sections 8806.007-8806.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
       Sec.8806.051.COMPOSITION OF BOARD; TERMS. (a)  The
district is governed by a board of five directors.
       (b)  Directors serve staggered four-year terms. (Acts 69th
Leg., R.S., Ch. 950, Secs. 12(a), (f); Acts 72nd Leg., R.S., Ch.
197, Sec. 3(b) (part).)
       Sec.8806.052.METHOD OF ELECTING DIRECTORS. One director
is elected from each county commissioners precinct in Coke County
and one director is elected at large. (Acts 69th Leg., R.S., Ch.
950, Sec. 12(c).)
       Sec.8806.053.ELECTION DATE. The district shall hold an
election in the district to elect directors on the uniform election
date in May of each odd-numbered year. (Acts 69th Leg., R.S., Ch.
950, Sec. 12(e).)
       Sec.8806.054.QUALIFICATIONS FOR ELECTION. (a)  To be
qualified for election as a director, a person must be:
             (1)  a resident of the district; and
             (2)  at least 21 years of age.
       (b)  To be qualified for election as a director from a
precinct, a person must reside in that precinct.  (Acts 69th Leg.,
R.S., Ch. 950, Secs. 12(b), (d).)
[Sections 8806.055-8806.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec. 8806.101.  GENERAL RIGHTS, POWERS, DUTIES, PRIVILEGES,
AND FUNCTIONS. The district has:
             (1)  the powers essential to accomplish the purposes of
Section 59, Article XVI, Texas Constitution; and
             (2)  the rights, powers, duties, privileges, and
functions provided by this chapter, Chapters 36 and 51, Water Code,
and other laws of this state relating to groundwater conservation
districts. (Acts 69th Leg., R.S., Ch. 950, Secs. 1 (part), 5(a).)
       Sec.8806.102.WELL PERMITS. (a)  The board may:
             (1)  require a permit for drilling, equipping, or
completing a well in the groundwater reservoir; and
             (2)  issue a permit subject to terms and provisions
relating to drilling, equipping, or completing a well that are
necessary to prevent waste or conserve, preserve, and protect
groundwater.
       (b)  The board may not deny an owner of land, or the owner's
heirs, assigns, and lessees, a permit to drill a well on that land
or the right to produce groundwater from that well subject to rules
adopted under this chapter.  (Acts 69th Leg., R.S., Ch. 950, Secs.
5(c), (d) (part).)
       Sec.8806.103.WELL SPACING AND PRODUCTION. The board may:
             (1)  provide for the spacing of wells producing from
groundwater reservoirs; and
             (2)  regulate the production from those wells to
minimize as far as practicable the drawdown of the water table or
the reduction of the artesian pressure. (Acts 69th Leg., R.S., Ch.
950, Sec. 5(d) (part).)
       Sec.8806.104.RECORDS, REPORTS, AND LOGS.  (a)  The board
may require that records be kept and reports be made of:
             (1)  the drilling, equipping, and completing of a well
into a groundwater reservoir; and
             (2)  the taking and use of groundwater from that
reservoir.
       (b)  The board may require accurate driller's logs to be kept
of a well described by Subsection (a)(1).
       (c)  The board may require that a copy of a driller's log and
of any electric log that may be made of a well be filed with the
district. (Acts 69th Leg., R.S., Ch. 950, Sec. 5(e).)
       Sec.8806.105.ACQUISITION OF LAND. The district may
acquire land to erect a dam or drain a lake, depression, or draw.
(Acts 69th Leg., R.S., Ch. 950, Sec. 5(f) (part).)
       Sec.8806.106.RECHARGE OF RESERVOIR. The district may
construct dams, drain lakes, depressions, draws, or creeks, and
install pumps and other equipment necessary to recharge a
groundwater reservoir. (Acts 69th Leg., R.S., Ch. 950, Sec. 5(f)
(part).)
       Sec.8806.107.SURVEYS. The district may have a licensed
engineer survey the groundwater of a groundwater reservoir and the
facilities for the development, production, and use of that
groundwater and determine the quantity of the groundwater available
for production and use and the improvements, developments, and
recharges needed for the groundwater reservoir. (Acts 69th Leg.,
R.S., Ch. 950, Sec. 5(g).)
       Sec.8806.108.DISTRICT PLANS. (a)  The district may
develop comprehensive plans for the most efficient use of the
groundwater of a groundwater reservoir and for the control and
prevention of waste of that groundwater.
       (b)  The plans must specify in the amount of detail that may
be practicable any act, procedure, performance, or avoidance
necessary to effect those plans. (Acts 69th Leg., R.S., Ch. 950,
Sec. 5(h).)
       Sec.8806.109.RESEARCH PROJECTS. The district may carry
out research projects, develop information, and determine
limitations, if any, that should be made on the withdrawal of
groundwater from a groundwater reservoir. (Acts 69th Leg., R.S.,
Ch. 950, Sec. 5(i).)
       Sec.8806.110.COLLECTION AND PRESERVATION OF INFORMATION.
The district may collect and preserve information regarding the use
of groundwater and the practicability of recharge of a groundwater
reservoir. (Acts 69th Leg., R.S., Ch. 950, Sec. 5(j).)
       Sec.8806.111.DISSEMINATION OF PLANS AND INFORMATION. The
board may:
             (1)  publish plans and information;
             (2)  notify the users of groundwater in the district of
the plans and information; and
             (3)  encourage the adoption and execution of the plans.
(Acts 69th Leg., R.S., Ch. 950, Sec. 5(k).)
       Sec. 8806.112.  CONTRACT FOR AND SALE AND DISTRIBUTION OF
WATER. The district may contract for, sell, and distribute water
from a water import authority or other agency. (Acts 69th Leg.,
R.S., Ch. 950, Sec. 5(l).)
       Sec.8806.113.ANNEXATION. Territory may be added to the
district under Subchapter J, Chapter 49, Water Code. The board
shall determine to which precinct the annexed land is added for the
purpose of electing directors. (Acts 69th Leg., R.S., Ch. 950, Sec.
11.)
       Sec.8806.114.DISSOLUTION. Chapter 36, Water Code,
applies to the dissolution of the district. (Acts 69th Leg., R.S.,
Ch. 950, Sec. 10.)
       SECTION 1.12.  Subtitle I, Title 6, Special District Local
Laws Code, is amended by adding Chapters 9009, 9011, 9012, and 9013
to read as follows:
CHAPTER 9009. ALICE WATER AUTHORITY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 9009.001.  DEFINITIONS 
Sec. 9009.002.  NATURE OF AUTHORITY 
Sec. 9009.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE 
Sec. 9009.004.  CONSTRUCTION OF CHAPTER 
[Sections 9009.005-9009.050 reserved for expansion]
SUBCHAPTER B. AUTHORITY TERRITORY AND ANNEXATIONS TO AUTHORITY
TERRITORY
Sec. 9009.051.  AUTHORITY TERRITORY 
Sec. 9009.052.  ANNEXATION OF CITY TERRITORY 
[Sections 9009.053-9009.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 9009.101.  COMPOSITION OF BOARD; TERMS 
Sec. 9009.102.  APPOINTMENT OF DIRECTORS 
Sec. 9009.103.  QUALIFICATIONS FOR OFFICE 
Sec. 9009.104.  VACANCY 
Sec. 9009.105.  APPOINTMENT OF SECRETARY AND TREASURER 
Sec. 9009.106.  VOTE BY BOARD PRESIDENT 
Sec. 9009.107.  DIRECTOR'S AND TREASURER'S BOND 
Sec. 9009.108.  COMPENSATION 
Sec. 9009.109.  MANAGER 
[Sections 9009.110-9009.150 reserved for expansion]
SUBCHAPTER D. GENERAL POWERS AND DUTIES
Sec. 9009.151.  ACQUISITION AND USE OF WATER FROM
                 CORPUS CHRISTI 
Sec. 9009.152.  WATER FACILITIES 
Sec. 9009.153.  REGIONAL WASTE DISPOSAL 
Sec. 9009.154.  APPROPRIATION PERMITS 
Sec. 9009.155.  ACQUISITION OF PROPERTY 
Sec. 9009.156.  GENERAL CONTRACT POWERS 
Sec. 9009.157.  AWARD OF CERTAIN CONSTRUCTION CONTRACTS 
Sec. 9009.158.  ASSIGNMENT OF CONTRACT RIGHTS 
[Sections 9009.159-9009.200 reserved for expansion]
SUBCHAPTER E. EMINENT DOMAIN AND RELATED POWERS
Sec. 9009.201.  EMINENT DOMAIN IN JIM WELLS COUNTY 
Sec. 9009.202.  EMINENT DOMAIN IN NUECES COUNTY 
Sec. 9009.203.  DETERMINATION OF INTEREST TO BE
                 ACQUIRED 
Sec. 9009.204.  SURVEYS 
Sec. 9009.205.  COST OF RELOCATING OR ALTERING PROPERTY 
[Sections 9009.206-9009.250 reserved for expansion]
SUBCHAPTER F. REGULATORY POWERS
Sec. 9009.251.  ADOPTION OF RULES 
Sec. 9009.252.  ENFORCEMENT OF RULES; PENALTY 
Sec. 9009.253.  NOTICE OF RULE PROVIDING PENALTY 
Sec. 9009.254.  JUDICIAL NOTICE OF RULES 
Sec. 9009.255.  ENFORCEMENT BY PEACE OFFICERS 
[Sections 9009.256-9009.300 reserved for expansion]
SUBCHAPTER G.  GENERAL FINANCIAL PROVISIONS
Sec. 9009.301.  DEPOSITORY 
Sec. 9009.302.  TAX ASSESSOR AND COLLECTOR 
Sec. 9009.303.  PROJECTS EXEMPT FROM ASSESSMENT OR
                 TAXATION 
[Sections 9009.304-9009.350 reserved for expansion]
SUBCHAPTER H. BONDS
Sec. 9009.351.  AUTHORITY TO ISSUE BONDS 
Sec. 9009.352.  FORM OF BONDS 
Sec. 9009.353.  MATURITY 
Sec. 9009.354.  ELECTION FOR BONDS PAYABLE FROM AD
                 VALOREM TAXES 
Sec. 9009.355.  BONDS PAYABLE FROM REVENUE 
Sec. 9009.356.  BONDS PAYABLE FROM AD VALOREM TAXES 
Sec. 9009.357.  TAX AND RATE REQUIREMENTS 
Sec. 9009.358.  ADDITIONAL SECURITY 
Sec. 9009.359.  TRUST INDENTURE 
Sec. 9009.360.  INTERIM BONDS OR NOTES 
Sec. 9009.361.  USE OF BOND PROCEEDS 
Sec. 9009.362.  APPOINTMENT OF RECEIVER 
Sec. 9009.363.  REFUNDING BONDS 
Sec. 9009.364.  LIMITATION ON RIGHTS OF HOLDERS 
Sec. 9009.365.  BONDS EXEMPT FROM TAXATION 
CHAPTER 9009. ALICE WATER AUTHORITY
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.9009.001.DEFINITIONS. In this chapter:
             (1)  "Authority" means the Alice Water Authority.
             (2)  "Board" means the board of directors of the
authority.
             (3)  "City" means the City of Alice.
             (4)  "Corpus Christi" means the City of Corpus Christi.
             (5)  "Director" means a member of the board.
             (6)  "Nueces district" means the Lower Nueces Water
Supply District. (V.A.C.S. Art. 8280-270, Secs. 1 (part), 3(a)
(part), 6 (part); New.)
       Sec.9009.002.NATURE OF AUTHORITY. (a) The authority is a
conservation and reclamation district created under Section 59,
Article XVI, Texas Constitution.
       (b)  The authority is an agency of this state.  (V.A.C.S.
Art. 8280-270, Sec. 1 (part).)
       Sec.9009.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
All territory and taxable property in the authority will benefit
from the works and improvements of the authority.
       (b)  The accomplishment of the purposes stated in this
chapter, including the use, for municipal and industrial purposes,
of stored water that otherwise would be wasted into the Gulf, is for
the benefit of the people of this state and for the improvement of
their property and industries.
       (c)  In carrying out the purposes of this chapter, the
authority will be performing an essential public function under the
constitution.  (V.A.C.S. Art. 8280-270, Secs. 2 (part), 20 (part).)
       Sec.9009.004.CONSTRUCTION OF CHAPTER. This chapter may
not be interpreted as amending or repealing Section 11.024, Water
Code, which provides for priorities for the use of water.  (V.A.C.S.
Art. 8280-270, Sec. 23.)
[Sections 9009.005-9009.050 reserved for expansion]
SUBCHAPTER B. AUTHORITY TERRITORY AND ANNEXATIONS TO AUTHORITY
TERRITORY
       Sec.9009.051.AUTHORITY TERRITORY. The authority is
composed of the territory that was contained in the city on January
1, 1981, as that territory may have been modified under:
             (1)  Subchapter J, Chapter 49, Water Code;
             (2)  Section 5, Chapter 12, Acts of the 57th
Legislature, 3rd Called Session, 1962 (Article 8280-270, Vernon's
Texas Civil Statutes);
             (3)  Section 9009.052; or
             (4)  other law.  (V.A.C.S. Art. 8280-270, Sec. 2
(part); New.)
       Sec.9009.052.ANNEXATION OF CITY TERRITORY. (a)
Territory annexed to the city may be annexed to the authority as
provided by this section.
       (b)  At any time after final passage of an ordinance annexing
territory to the city, the board may issue a notice of hearing on
the question of annexing all or part of the territory annexed to the
city.
       (c)  The notice is sufficient if it:
             (1)  states the date and place of the hearing; and
             (2)  describes the area proposed to be annexed or
refers to the annexation ordinance of the city.
       (d)  The notice must be published one time in a newspaper of
general circulation in the city not later than the 10th day before
the date set for the hearing.
       (e)  The board shall adopt a resolution annexing the
territory to the authority if, after the hearing, the board finds
that the territory proposed to be annexed will benefit from the
water supplied or to be supplied by the authority.
       (f)  After the territory is annexed to the authority, the
board may hold an election in the authority as enlarged to determine
whether the authority as enlarged shall:
             (1)  assume any tax-supported bonds that are
outstanding or voted but not yet sold; and
             (2)  impose an ad valorem tax on all taxable property in
the authority as enlarged for the payment of those bonds.
       (g)  An election held under Subsection (f) shall be held in
the same manner as an election under Section 9009.354 for the
issuance of bonds payable wholly or partly from taxes. (V.A.C.S.
Art. 8280-270, Sec. 5.)
[Sections 9009.053-9009.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS
       Sec.9009.101.COMPOSITION OF BOARD; TERMS.  The board
consists of five directors who serve staggered two-year terms
expiring January 1.  (V.A.C.S. Art. 8280-270, Sec. 3(a) (part);
New.)
       Sec.9009.102.APPOINTMENT OF DIRECTORS. Each December the
governing body of the city shall appoint a director to succeed each
director whose term expires on the following January 1. (V.A.C.S.
Art. 8280-270, Secs. 3(a) (part), (b) (part).)
       Sec.9009.103.QUALIFICATIONS FOR OFFICE. (a) A director
must reside in and own taxable property in the authority.
       (b)  A member of the city's governing body or an employee of
the city may not be appointed as a director.  (V.A.C.S. Art.
8280-270, Sec. 3(c) (part).)
       Sec.9009.104.VACANCY. If a director ceases to reside in
the authority or otherwise ceases to serve as a director, the
governing body of the city shall appoint a successor to fill the
vacancy for the unexpired term. (V.A.C.S. Art. 8280-270, Secs.
3(b) (part), (c) (part).)
       Sec.9009.105.APPOINTMENT OF SECRETARY AND TREASURER. The
board shall appoint a secretary and a treasurer, who are not
required to be directors. The board may combine the offices of
secretary and treasurer.  (V.A.C.S. Art. 8280-270, Sec. 4 (part).)
       Sec.9009.106.VOTE BY BOARD PRESIDENT.  The president has
the same right to vote as any other director.  The vice president
may not exercise the president's right to vote.  (V.A.C.S. Art.
8280-270, Sec. 4 (part).)
       Sec.9009.107.DIRECTOR'S AND TREASURER'S BOND.  (a)  Each
director shall give bond in the amount of $5,000 conditioned on the
faithful performance of the director's duties.
       (b)  The treasurer shall give bond in the amount required by
the board.  The treasurer's bond shall be conditioned on the
treasurer's faithful accounting for all money that comes into the
treasurer's custody as treasurer of the authority.  (V.A.C.S. Art.
8280-270, Secs. 3(c) (part); 4 (part).)
       Sec.9009.108.COMPENSATION.  Unless the board by
resolution increases the fee to an amount authorized by Section
49.060, Water Code, each director:
             (1)  shall receive a fee for attending each meeting of
the board not to exceed $20 for a meeting or $40 in one calendar
month; and
             (2)  is entitled to an additional amount not to exceed
$20 for each day that the director devotes to serving the business
of the authority if the service is expressly approved by the board.  
(V.A.C.S. Art. 8280-270, Sec. 3(d) (part).)
       Sec.9009.109.MANAGER.  The board shall employ a manager.  
(V.A.C.S. Art. 8280-270, Sec. 4 (part).)
[Sections 9009.110-9009.150 reserved for expansion]
SUBCHAPTER D. GENERAL POWERS AND DUTIES
       Sec. 9009.151.  ACQUISITION AND USE OF WATER FROM CORPUS
CHRISTI. (a) The authority may acquire from Corpus Christi
untreated water supplied from Lake Corpus Christi, subject to a
contract between the authority and Corpus Christi that is approved
by the Nueces district or under a contract assigned to the
authority.
       (b)  The authority may procure water under Subsection (a)
only if the water is "surplus" to the requirements of Corpus
Christi as defined in a contract between Corpus Christi and the
Nueces district.
       (c)  The authority may use water procured under Subsection
(a) as a source of water supply for the city if the right of the city
to execute a contract prescribing the obligations of the city and
the authority is approved by the voters of the city in compliance
with Section 402.020, Local Government Code.
       (d)  The authority may contract with Corpus Christi or the
Nueces district, or both, in reference to the authority's duty or
option to participate in the cost of any future enlargement of Lake
Corpus Christi and for a commensurate share of the increased water
yield.  (V.A.C.S. Art. 8280-270, Sec. 6 (part).)
       Sec.9009.152.WATER FACILITIES. (a)  The authority may
acquire or construct, inside or outside the authority:
             (1)  a diversion works;
             (2)  wells;
             (3)  pumps;
             (4)  pumping stations;
             (5)  pipelines;
             (6)  intermediate and terminal storage reservoirs;
             (7)  a water treatment plant; and
             (8)  any other related facility necessary or useful in
diverting, impounding, drilling, storing, or treating water, or in
transporting treated or untreated water to the city for municipal,
domestic, agricultural, industrial, or any other purpose.
       (b)  A diversion works may be constructed to take water from
Lake Corpus Christi through intake or otherwise or from the Nueces
River below Lake Corpus Christi.
       (c)  The specifications in this section of certain elements
of the authority's proposed water supply, treatment, and
transportation system do not preclude the authority from
constructing any facility necessary or convenient in enabling the
authority to deliver treated or untreated water to the city.
(V.A.C.S. Art. 8280-270, Sec. 7.)
       Sec.9009.153.REGIONAL WASTE DISPOSAL. The authority may
exercise the powers granted by Chapter 30, Water Code. (V.A.C.S.
Art. 8280-270, Sec. 6B.)
       Sec.9009.154.APPROPRIATION PERMITS. The authority may:
             (1)  obtain an appropriation permit from the Texas
Commission on Environmental Quality as provided by Section 12.011,
Water Code; or
             (2)  participate with Corpus Christi or the Nueces
district in obtaining a required appropriation permit. (V.A.C.S.
Art. 8280-270, Sec. 8.)
       Sec.9009.155.ACQUISITION OF PROPERTY. (a) To exercise a
right or perform a duty under this chapter, the authority may
acquire:
             (1)  works, machinery, plants, or other facilities; and
             (2)  land, rights-of-way, or easements.
       (b)  Subject to the terms of a deed of trust or indenture
executed by the authority, the authority may sell, trade, lease,
rent, or otherwise dispose of any property the board considers not
needed for authority purposes. (V.A.C.S. Art. 8280-270, Sec. 9.)
       Sec.9009.156.GENERAL CONTRACT POWERS. The authority may
contract with the city, a public agency, a political subdivision,
this state, the United States, or another person for the purchase or
sale of water or any other purpose necessary to carry out this
chapter.  (V.A.C.S. Art. 8280-270, Sec. 6A.)
       Sec.9009.157.AWARD OF CERTAIN CONSTRUCTION CONTRACTS.
(a) This section applies only to a construction contract requiring
an expenditure of more than $2,000.
       (b)  A contract may be awarded only after notice of the
contract to bidders for sealed bids is published once a week for two
weeks in a newspaper of general circulation in the authority that is
designated or approved by the board.
       (c)  The notice is sufficient if it states:
             (1)  the time and place for opening the bids;
             (2)  the general nature of the work to be done or the
material, equipment, or supplies to be purchased; and
             (3)  the place where and the terms on which copies of
the plans and specifications may be obtained.
       (d)  The bids must be opened publicly. (V.A.C.S. Art.
8280-270, Sec. 11.)
       Sec.9009.158.ASSIGNMENT OF CONTRACT RIGHTS.  (a) The
authority may acquire by assignment any right of the city under a
contract between the city and Corpus Christi in reference to such
water supply.
       (b)  If the assignment is accepted, the authority shall
assume the city's obligations under the contract. (V.A.C.S. Art.
8280-270, Sec. 18.)
[Sections 9009.159-9009.200 reserved for expansion]
SUBCHAPTER E. EMINENT DOMAIN AND RELATED POWERS
       Sec.9009.201.EMINENT DOMAIN IN JIM WELLS COUNTY.  (a) The
authority may exercise the power of eminent domain in Jim Wells
County to acquire fee simple title to, an easement or right-of-way
in or on, or other interest in land or other property inside or
outside the authority, necessary to the exercise of the authority's
powers, rights, privileges, and functions under this chapter.
       (b)  The authority may acquire a property interest under
Subsection (a) in the manner provided by Chapter 21, Property Code,
or in the manner provided by a statute relating to condemnation by a
general law district created under Section 59, Article XVI, Texas
Constitution.
       (c)  The authority is a municipal corporation for the
purposes of Section 21.021, Property Code.  (V.A.C.S. Art.
8280-270, Sec. 10(a) (part).)
       Sec.9009.202.EMINENT DOMAIN IN NUECES COUNTY. (a) Except
as provided by this section, the authority has the same power of
eminent domain in Nueces County as it has in Jim Wells County.
       (b)  The power is strictly limited to an acquisition
necessary to acquire:
             (1)  an easement or right-of-way necessary to build a
pipeline from the city to a point on the Nueces River from which
water will be obtained from Corpus Christi under a contract;
             (2)  fee simple title to any land reasonably necessary
for the erection of a pumping station or stations near the pipeline
to be built under Subdivision (1); or
             (3)  land or an interest in land located inside or
outside the authority on which to place reservoirs, works, wells,
plants, transmission lines, or other facilities necessary or
helpful in impounding, storing, or treating water or in
transporting water to the city or to others for municipal,
domestic, agricultural, commercial, or other purposes. (V.A.C.S.
Art. 8280-270, Sec. 10(b).)
       Sec.9009.203.DETERMINATION OF INTEREST TO BE ACQUIRED.
The board shall determine the amount and character of interest in
land, easements, or other property to be acquired under this
subchapter. (V.A.C.S. Art. 8280-270, Sec. 10(a) (part).)
       Sec.9009.204.SURVEYS. The authority has the same rights
and powers to make surveys and attend to other business of the
authority in Jim Wells and Nueces Counties as provided by Section
49.221, Water Code. (V.A.C.S. Art. 8280-270, Sec. 10(a) (part).)
       Sec.9009.205.COST OF RELOCATING OR ALTERING PROPERTY.  
(a)  In this section, the term "sole expense" means the actual cost
of the relocation, raising, lowering, rerouting, or change in grade
or alteration of construction under Subsection (b) to provide a
comparable replacement without enhancing the facility, after
deducting the net salvage value derived from the old facility.
       (b)  If the authority's exercise of eminent domain,
relocation, or another power conferred by this chapter makes
necessary relocating, raising, rerouting, changing the grade of, or
altering the construction of any highway, railroad, electric
transmission line, telephone or telegraph property and facility, or
pipeline, the action shall be accomplished at the sole expense of
the authority.  (V.A.C.S. Art. 8280-270, Sec. 10(c).)
[Sections 9009.206-9009.250 reserved for expansion]
SUBCHAPTER F. REGULATORY POWERS
       Sec.9009.251.ADOPTION OF RULES. The board may adopt
reasonable rules to:
             (1)  secure, maintain, and preserve the sanitary
condition of water in and water that flows into any intermediate or
terminal reservoir owned by the authority;
             (2)  prevent waste of or the unauthorized use of water;
and
             (3)  regulate resident, hunting, fishing, boating,
camping, and any other recreational or business privilege along or
around any reservoir, body of land, or easement owned by the
authority. (V.A.C.S. Art. 8280-270, Sec. 22(a).)
       Sec.9009.252.ENFORCEMENT OF RULES; PENALTY. (a) The
authority by rule may prescribe reasonable penalties for the
violation of an authority rule.
       (b)  A penalty may consist of:
             (1)  a fine not to exceed $200;
             (2)  confinement in jail for a term not to exceed 30
days; or
             (3)  both the fine and confinement.
       (c)  A penalty adopted under this section is in addition to
any other penalty provided by Texas law. (V.A.C.S. Art. 8280-270,
Sec. 22(b) (part).)
       Sec.9009.253.NOTICE OF RULE PROVIDING PENALTY. (a) If
the authority adopts a rule that provides a penalty, the authority
must publish a substantive statement of the rule and the penalty
once a week for two consecutive weeks in each county in which any
part of the reservoir to which the rule applies is situated.
       (b)  The statement must be as condensed as possible so that
the act prohibited by the rule can be easily understood.
       (c)  The statement may include notice of any number of rules.
       (d)  The notice must state that:
             (1)  a person who violates the rule is subject to a
penalty; and
             (2)  the rule is on file in the principal office of the
authority, where it may be read by any interested person.
       (e)  A rule takes effect five days after the date of second
publication of the statement under this section.  (V.A.C.S. Art.
8280-270, Sec. 22(b) (part).)
       Sec.9009.254.JUDICIAL NOTICE OF RULES. A court shall take
judicial notice of a rule adopted under this subchapter and
published as required by Section 9009.253, and the court shall
consider the rule to be similar in nature to a penal ordinance of a
municipality. (V.A.C.S. Art. 8280-270, Sec. 22(b) (part).)
       Sec.9009.255.ENFORCEMENT BY PEACE OFFICERS. (a) A peace
officer may make an arrest when necessary to prevent or abate the
commission of an offense:
             (1)  in violation of an authority rule or a law of this
state that occurs or threatens to occur on any land, water, or
easement owned or controlled by the authority; or
             (2)  involving damage to any property owned or
controlled by the authority.
       (b)  A peace officer may make an arrest under Subsection
(a)(2) at any location. (V.A.C.S. Art. 8280-270, Sec. 22(c).)
[Sections 9009.256-9009.300 reserved for expansion]
SUBCHAPTER G.  GENERAL FINANCIAL PROVISIONS
       Sec.9009.301.DEPOSITORY. (a) Except as provided by
Subsection (h), the board shall designate one or more banks in the
authority to serve as depository for authority money.
       (b)  Authority money shall be deposited with a designated
depository bank, except that:
             (1)  money pledged to pay bonds may be deposited with
the trustee bank named in the trust agreement; and
             (2)  money shall be remitted to the bank of payment for
the payment of principal of and interest on bonds.
       (c)  To the extent that money in a depository bank or the
trustee bank is not insured by the Federal Deposit Insurance
Corporation, the money must be secured in the manner provided by law
for the security of county funds.
       (d)  The board shall prescribe the terms of service for
depositories.
       (e)  Before designating a depository bank, the board shall
mail a written notice to each bank in the authority at least 10 days
before the date set for receiving bids that:
             (1)  states the time and place at which the board will
meet to designate a depository bank or banks; and
             (2)  invites each bank in the authority to submit an
application to be designated as a depository.
       (f)  At the time stated in the notice, the board shall:
             (1)  consider the application and the management and
condition of each bank that applies; and
             (2)  designate as a depository the bank or banks:
                   (A)  that offer the most favorable terms for the
handling of the money; and
                   (B)  that the board finds have proper management
and are in condition to handle the money.
       (g)  Membership on the board of an officer or director of a
bank does not disqualify the bank from being designated as a
depository.
       (h)  If the board does not receive any applications before
the time stated in the notice, the board may designate one or more
banks located inside or outside the authority on terms that the
board finds advantageous to the authority. (V.A.C.S. Art.
8280-270, Sec. 17.)
       Sec.9009.302.TAX ASSESSOR AND COLLECTOR. The board shall
appoint a tax assessor and collector. (V.A.C.S. Art. 8280-270,
Sec. 21(b) (part).)
       Sec.9009.303.PROJECTS EXEMPT FROM ASSESSMENT OR TAXATION.
The authority is not required to pay a tax or assessment on a
project or any part of a project.  (V.A.C.S. Art. 8280-270, Sec. 20
(part).)
[Sections 9009.304-9009.350 reserved for expansion]
SUBCHAPTER H. BONDS
       Sec.9009.351.AUTHORITY TO ISSUE BONDS. The authority may
issue bonds to carry out any power conferred by this chapter.  The
bonds must be authorized by a board resolution. (V.A.C.S. Art.
8280-270, Secs. 12(a) (part), (b) (part), (c) (part).)
       Sec.9009.352.FORM OF BONDS.  An authority bond must be:
             (1)  issued in the authority's name;
             (2)  signed by the president or vice president; and
             (3)  attested by the secretary.  (V.A.C.S. Art.
8280-270, Sec. 12(b) (part).)
       Sec.9009.353.MATURITY.  Authority bonds must mature not
later than 40 years after their date of issuance.  (V.A.C.S. Art.
8280-270, Sec. 12(b) (part).)
       Sec. 9009.354.  ELECTION FOR BONDS PAYABLE FROM AD VALOREM
TAXES. (a) Bonds, other than refunding bonds, payable wholly or
partly from ad valorem taxes may not be issued unless authorized by
a majority of the authority voters voting at an election.
       (b)  The board may order an election under this section
without a petition. The order must specify:
             (1)  the time and places at which the election will be
held;
             (2)  the purpose for which the bonds will be issued;
             (3)  the maximum amount of the bonds;
             (4)  the maximum maturity of the bonds;
             (5)  the form of the ballot; and
             (6)  the presiding judge for each voting place.
       (c)  Notice of the election must be given by publishing a
substantial copy of the order calling the election in a newspaper of
general circulation in the authority.  The notice must be published
on the same day in each of two consecutive weeks. The first
publication must be not later than the 14th day before the date of
the election. If a newspaper of general circulation is not
published in the authority, notice must be given by posting a copy
of the resolution in three public places in the authority.  
(V.A.C.S. Art. 8280-270, Secs. 12(e) (part), 15(a) (part), (b)
(part).)
       Sec.9009.355.BONDS PAYABLE FROM REVENUE. (a) In this
section, "net revenue" means the gross revenue and income of the
authority pledged under this section less the amount necessary to
pay the cost of:
             (1)  performing any contract, the revenue of which is
pledged under this section; and
             (2)  maintaining and operating the authority and its
property.
       (b)  Bonds issued under this subchapter may be secured under
board resolution by a pledge of:
             (1)  all or part of the net revenue of the authority
other than revenue from taxation;
             (2)  the net revenue of one or more contracts made
before or after the issuance of the bonds; or
             (3)  other revenue or income specified by resolution of
the board or in the trust indenture or other instrument securing the
bonds.
       (c)  The pledge may reserve the right to issue additional
bonds on a parity with, or subordinate to, the bonds being issued,
subject to the conditions specified in the pledge.
       (d)  Bonds not payable wholly or partly from ad valorem taxes
may be issued without an election.  (V.A.C.S. Art. 8280-270, Secs.
12(a) (part), (d), 15(a) (part).)
       Sec.9009.356.BONDS PAYABLE FROM AD VALOREM TAXES.  The
authority may issue bonds payable, as pledged by board resolution,
from:
             (1)  ad valorem taxes imposed on taxable property in
the authority; or
             (2)  ad valorem taxes and revenue of the authority.  
(V.A.C.S. Art. 8280-270, Secs. 12(a) (part), (e) (part).)
       Sec.9009.357.TAX AND RATE REQUIREMENTS. (a) If the
authority issues bonds payable wholly or partly from ad valorem
taxes, the board shall impose a tax sufficient to pay the bonds and
the interest on the bonds as the bonds and interest become due. The
board may adopt the rate of the tax after considering the money
received from the other pledged revenue available for payment of
principal and interest to the extent and in the manner permitted by
the resolution authorizing the issuance of the bonds.
       (b)  If the authority issues bonds payable wholly or partly
from revenue, the board shall set and revise the rates of
compensation for water sold and services rendered by the authority.
       (c)  For bonds payable wholly from revenue, the rates of
compensation must be sufficient to:
             (1)  pay the expense of operating and maintaining the
facilities of the authority;
             (2)  pay the bonds as they mature and the interest as it
accrues; and
             (3)  maintain the reserve and other funds as required
in the resolution authorizing the issuance of the bonds or in the
trust indenture or other instrument securing the bonds.
       (d)  For bonds payable partly from revenue, the rates of
compensation must be sufficient to assure compliance with the
resolution authorizing the issuance of the bonds and any trust
indenture or other instrument securing the bonds. (V.A.C.S. Art.
8280-270, Secs. 12(e) (part), (f).)
       Sec.9009.358.ADDITIONAL SECURITY. (a)  Bonds, including
refunding bonds, authorized by the law that are not payable wholly
from ad valorem taxes may be additionally secured, at the
discretion of the board, by a deed of trust or mortgage lien on
physical property of the authority, franchises, easements, water
rights and appropriation permits, leases, contracts, and all rights
appurtenant to the property, vesting in the trustee power to:
             (1)  sell the property for the payment of the debt;
             (2)  operate the property; and
             (3)  take other action to further secure the bonds.
       (b)  A purchaser under a sale under the deed of trust lien, if
one is given:
             (1)  is the absolute owner of property, facilities, and
rights purchased; and
             (2)  is entitled to maintain and operate the property,
facilities, and rights.  (V.A.C.S. Art. 8280-270, Sec. 14 (part).)
       Sec.9009.359.TRUST INDENTURE. (a)  A bond authorized by
the law, including a refunding bond, that is not payable wholly from
ad valorem taxes may be additionally secured by a trust indenture.
The trustee may be a bank with trust powers located inside or
outside this state.
       (b)  A trust indenture, regardless of the existence of the
deed of trust or mortgage lien on the property, may:
             (1)  provide for the security of the bonds and the
preservation of the trust estate in the manner prescribed by the
board;
             (2)  provide for amendment or modification of the trust
indenture;
             (3)  provide for the issuance of bonds to replace lost
or mutilated bonds;
             (4)  condition the right to spend authority money or
sell authority property on the approval of a licensed engineer
selected as provided by the trust indenture; and
             (5)  provide for the investment of authority money.
(V.A.C.S. Art. 8280-270, Sec. 14 (part).)
       Sec.9009.360.INTERIM BONDS OR NOTES. Before issuing
definitive bonds, the board may issue interim bonds or notes
exchangeable for definitive bonds. (V.A.C.S. Art. 8280-270, Sec.
12(a) (part).)
       Sec.9009.361.USE OF BOND PROCEEDS. (a) The authority may
set aside an amount of proceeds from the sale of bonds issued under
this subchapter for payments into the interest and sinking fund and
the reserve fund. The resolution authorizing the bonds or a trust
indenture or other instrument securing the bonds may provide for
setting aside amounts under this subsection.
       (b)  The authority may use proceeds from the sale of the
bonds to pay any expense necessarily incurred in accomplishing the
purpose of the authority, including any expense of issuing and
selling the bonds.
       (c)  The authority may invest proceeds from the sale of the
bonds in direct obligations of or obligations unconditionally
guaranteed by the United States that mature in the manner
authorized by the resolution authorizing the bonds or by the trust
indenture or other instrument securing the bonds.  (V.A.C.S. Art.
8280-270, Sec. 12(g).)
       Sec.9009.362.APPOINTMENT OF RECEIVER. (a) On default or
threatened default in the payment of principal of or interest on
bonds issued under this subchapter that are payable wholly or
partly from revenue, a court may, on petition of the holders of
outstanding bonds, appoint a receiver for the authority.
       (b)  The receiver may collect and receive all authority
income except taxes, employ and discharge authority agents and
employees, take charge of money on hand, except money received from
taxes, unless commingled, and manage the proprietary affairs of the
authority without consent or hindrance by the board.
       (c)  The receiver may be authorized to sell or contract for
the sale of water or to renew those contracts with the approval of
the court that appointed the receiver.
       (d)  The court may vest the receiver with any other power or
duty the court finds necessary to protect the bondholders.  
(V.A.C.S. Art. 8280-270, Sec. 12(h) (part).)
       Sec.9009.363.REFUNDING BONDS.  (a)  The authority may
issue refunding bonds to refund outstanding bonds issued under this
subchapter and interest on those bonds.
       (b)  Refunding bonds may:
             (1)  be issued to refund bonds of more than one series;
             (2)  combine the pledges for the outstanding bonds for
the security of the refunding bonds; or
             (3)  be secured by a pledge of other or additional
revenue or mortgage liens.
       (c)  The provisions of this subchapter regarding the
issuance of other bonds, their security, and the remedies of the
holders apply to refunding bonds.
       (d)  The comptroller shall register the refunding bonds on
surrender and cancellation of the bonds to be refunded.
       (e)  Instead of issuing bonds to be registered on the
surrender and cancellation of the bonds to be refunded, the
authority, in the resolution authorizing the issuance of the
refunding bonds, may provide for the sale of the refunding bonds and
the deposit of the proceeds in a bank at which the bonds to be
refunded are payable. In that case, the refunding bonds may be
issued in an amount sufficient to pay the principal of and interest
on the bonds to be refunded to their option date or maturity date,
and the comptroller shall register the refunding bonds without the
surrender and cancellation of the bonds to be refunded. (V.A.C.S.
Art. 8280-270, Sec. 13.)
       Sec.9009.364.LIMITATION ON RIGHTS OF HOLDERS.  The
resolution authorizing the bonds or the trust indenture or other
instrument securing the bonds may limit or qualify the rights of the
holders of less than all of the outstanding bonds payable from the
same source to institute or prosecute litigation affecting the
authority's property or income.  (V.A.C.S. Art. 8280-270, Sec.
12(h) (part).)
       Sec.9009.365.BONDS EXEMPT FROM TAXATION. A bond issued
under this subchapter, the transfer of the bond, and income from the
bond, including profits made on the sale of the bond, are exempt
from taxation in this state. (V.A.C.S. Art. 8280-270, Sec. 20
(part).)
CHAPTER 9011. BELL COUNTY WATER CONTROL AND
IMPROVEMENT DISTRICT NO. 3
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 9011.001.  DEFINITIONS
Sec. 9011.002.  NATURE OF DISTRICT
Sec. 9011.003.  FINDING OF BENEFIT AND PUBLIC PURPOSE
[Sections 9011.004-9011.050 reserved for expansion]
SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS
TO DISTRICT TERRITORY
Sec. 9011.051.  DISTRICT TERRITORY
Sec. 9011.052.  ANNEXATION OF TERRITORY BY LANDOWNER
                 PETITION
Sec. 9011.053.  PETITION REQUIREMENTS
Sec. 9011.054.  HEARING ON PETITION
Sec. 9011.055.  NOTICE OF HEARING
Sec. 9011.056.  BOARD ANNEXATION OF TERRITORY
Sec. 9011.057.  RATIFICATION ELECTION; LIMITATION ON
                 ASSUMPTION OF DEBT OR TAXES
Sec. 9011.058.  ANNEXED TERRITORY'S RESPONSIBILITY FOR
                 DISTRICT DEBT OR TAXES
Sec. 9011.059.  ANNEXATION OF TERRITORY IN A
                 MUNICIPALITY
[Sections 9011.060-9011.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 9011.101.  COMPOSITION OF BOARD
Sec. 9011.102.  QUALIFICATIONS FOR OFFICE
Sec. 9011.103.  DIRECTORS' ELECTION
Sec. 9011.104.  BALLOT PETITION
Sec. 9011.105.  APPOINTMENT OF SECRETARY AND TREASURER
Sec. 9011.106.  VOTE BY BOARD PRESIDENT
Sec. 9011.107.  DIRECTOR'S AND TREASURER'S BOND
Sec. 9011.108.  COMPENSATION
[Sections 9011.109-9011.150 reserved for expansion]
SUBCHAPTER D.  POWERS AND DUTIES
Sec. 9011.151.  WATER CONTROL AND IMPROVEMENT DISTRICT
                 POWERS
Sec. 9011.152.  WATER SUPPLY AND DISTRIBUTION;
                 ACQUISITION OF LAND RIGHTS
Sec. 9011.153.  EMINENT DOMAIN
Sec. 9011.154.  COST OF RELOCATING OR ALTERING PROPERTY
Sec. 9011.155.  AWARD OF CERTAIN CONSTRUCTION OR
                 PURCHASE CONTRACTS
Sec. 9011.156.  CONTRACTS REGARDING WATER OR SEWER
                 FACILITIES
Sec. 9011.157.  CONTRACTS AND COOPERATION WITH
                 MUNICIPALITY INSIDE DISTRICT
Sec. 9011.158.  PROHIBITED AGREEMENTS
[Sections 9011.159-9011.200 reserved for expansion]
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 9011.201.  DEPOSITORY
Sec. 9011.202.  IMPOSITION OF AD VALOREM TAXES
Sec. 9011.203.  TAX ASSESSOR AND COLLECTOR
Sec. 9011.204.  PROJECTS EXEMPT FROM ASSESSMENT OR
                 TAXATION
[Sections 9011.205-9011.250 reserved for expansion]
SUBCHAPTER F. BONDS
Sec. 9011.251.  AUTHORITY TO ISSUE BONDS
Sec. 9011.252.  FORM OF BONDS
Sec. 9011.253.  MATURITY
Sec. 9011.254.  ELECTION FOR BONDS PAYABLE FROM AD
                 VALOREM TAXES
Sec. 9011.255.  BONDS PAYABLE FROM REVENUE
Sec. 9011.256.  TAX AND RATE REQUIREMENTS
Sec. 9011.257.  ADDITIONAL SECURITY
Sec. 9011.258.  TRUST INDENTURE OR DEED OF TRUST
Sec. 9011.259.  USE OF BOND PROCEEDS
Sec. 9011.260.  APPOINTMENT OF RECEIVER
Sec. 9011.261.  REFUNDING BONDS
Sec. 9011.262.  BONDS EXEMPT FROM TAXATION
CHAPTER 9011. BELL COUNTY WATER CONTROL AND
IMPROVEMENT DISTRICT NO. 3
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.9011.001.DEFINITIONS.  In this chapter:
             (1)  "Board" means the district's board of directors.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Bell County Water Control and
Improvement District No. 3. (New; V.A.C.S. Art. 8280-182, Sec. 1
(part).)
       Sec.9011.002.NATURE OF DISTRICT.  The district is a water
control and improvement district created under Section 59, Article
XVI, Texas Constitution. (V.A.C.S. Art. 8280-182, Sec. 1 (part).)
       Sec.9011.003.FINDING OF BENEFIT AND PUBLIC PURPOSE.  (a)  
The district is created to serve a public use and benefit.
       (b)  All land included in the district will benefit.
       (c)  The accomplishment of the purposes stated in this
chapter is for the benefit of the people of this state and the
improvement of their property and industries.  The district, in
carrying out the purposes of this chapter, will be performing an
essential public function under the constitution. (V.A.C.S. Art.
8280-182, Secs. 22 (part), 26 (part).)
[Sections 9011.004-9011.050 reserved for expansion]
SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS
TO DISTRICT TERRITORY
       Sec.9011.051.DISTRICT TERRITORY.  The district is
composed of the territory described by Section 2, Chapter 506, Acts
of the 54th Legislature, Regular Session, 1955 (Article 8280-182,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  this subchapter or its predecessor statutes; or
             (2)  other law. (New.)
       Sec. 9011.052.  ANNEXATION OF TERRITORY BY LANDOWNER
PETITION.  As provided by this subchapter, the district may annex
territory by petition of the owners of land or a portion of the land
requested to be annexed. (V.A.C.S. Art. 8280-182, Sec. 5 (part).)
       Sec.9011.053.PETITION REQUIREMENTS.  (a)  A petition to
the board to annex land must:
             (1)  request that the district annex the land;
             (2)  describe by metes and bounds the land proposed to
be annexed;
             (3)  affirmatively state that:
                   (A)  the land annexed is subject to its
proportionate part of the outstanding debt;
                   (B)  the land will be subject to taxation for
payment of that debt;
                   (C)  the assumption of the proportionate debt will
be a covenant running with the land; and
                   (D)  the petition will be filed in the deed
records of Bell County; and
             (4)  be signed:
                   (A)  by a majority of the owners of the land to be
annexed if the number of owners is 30 or fewer; or
                   (B)  by 30 owners of the land to be annexed if the
number of owners is more than 30.
       (b)  The petition must be filed with the board secretary.
(V.A.C.S. Art. 8280-182, Sec. 5 (part).)
       Sec.9011.054.HEARING ON PETITION.  The board shall order a
hearing on the petition to be held at a time and on a date stated in
the order and not before the 30th day after the date of the order.
(V.A.C.S. Art. 8280-182, Sec. 5 (part).)
       Sec.9011.055.NOTICE OF HEARING.  (a)  The board secretary
shall:
             (1)  issue notice of the hearing that includes:
                   (A)  the time and place of the hearing; and
                   (B)  a description of the territory proposed to be
annexed; and
             (2)  post copies of the notice for 15 days before the
date of the hearing in:
                   (A)  three public places in the district; and
                   (B)  one public place in the territory proposed to
be annexed.
       (b)  The notice must be published in a newspaper of general
circulation in the county one time at least 15 days before the date
of the hearing. (V.A.C.S. Art. 8280-182, Sec. 5 (part).)
       Sec.9011.056.BOARD ANNEXATION OF TERRITORY.  (a)  The
board by resolution may annex the proposed territory to the
district if the board finds as a result of the hearing that the
annexation:
             (1)  is to the advantage of the district; and
             (2)  will not injure other land of the district.
       (b)  If on hearing the petition a change to the proposed
annexation is found necessary or desirable, the annexation may
include less than all of the territory described in the petition.
       (c)  The resolution authorizing the annexation must be
recorded in the board minutes.  (V.A.C.S. Art. 8280-182, Sec. 5
(part).)
       Sec. 9011.057.  RATIFICATION ELECTION; LIMITATION ON
ASSUMPTION OF DEBT OR TAXES.  (a) The annexation of territory under
this subchapter is not final until ratified by:
             (1)  a majority of the voters voting at a separate
election held in the district; and
             (2)  a majority of the voters voting at a separate
election held in the territory to be annexed.
       (b)  If the district has outstanding debts or taxes, the
proposition for the territory's assumption of its proportion of the
debts or taxes on annexation shall be submitted at the same time and
at the same election.
       (c)  The manner of holding the election, the election notice,
and the manner and time of giving notice of the election  under this
section are governed by Chapters 49 and 51, Water Code. (V.A.C.S.
Art. 8280-182, Sec. 5 (part).)
       Sec. 9011.058.  ANNEXED TERRITORY'S RESPONSIBILITY FOR
DISTRICT DEBT OR TAXES.  The annexed territory shall bear the
territory's proportionate share of all debt or taxes owed,
contracted, or authorized by the district. (V.A.C.S.
Art. 8280-182, Sec. 5 (part).)
       Sec.9011.059.ANNEXATION OF TERRITORY IN A MUNICIPALITY.  
The district may annex territory inside a municipality's
boundaries. (V.A.C.S. Art. 8280-182, Sec. 25.)
[Sections 9011.060-9011.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS
       Sec.9011.101.COMPOSITION OF BOARD.  The board consists of
five elected directors. (V.A.C.S. Art. 8280-182, Secs. 3(a)
(part), (b) (part).)
       Sec.9011.102.QUALIFICATIONS FOR OFFICE.  (a)  A person may
not be appointed a director unless the person resides in Bell County
and owns taxable property in the district.
       (b)  A person may not serve as a director if the person is:
             (1)  a member of a governing body of a county or
municipality; or
             (2)  an employee of a county or municipality.  
(V.A.C.S. Art. 8280-182, Sec. 3(a) (part).)
       Sec.9011.103.DIRECTORS'ELECTION.  (a)  Except as
provided by this subchapter, a directors' election is held in
accordance with Chapters 49 and 51, Water Code, and the Election
Code.
       (b)  The election order must state the time, place, and
purpose of the election.
       (c)  Notice of a directors' election must be published in a
newspaper of general circulation in the district's territory one
time at least 30 days before the date of the election.  (V.A.C.S.
Art. 8280-182, Sec. 3(c) (part).)
       Sec.9011.104.BALLOT PETITION.  (a)  A person who wants to
have the person's name printed on the ballot as a candidate for
director must present to the board secretary a petition requesting
that action.
       (b)  The petition must be:
             (1)  signed by at least 10 registered voters; and
             (2)  presented to the secretary not later than the 11th
day before the date of the election. (V.A.C.S. Art. 8280-182, Sec.
3(d).)
       Sec.9011.105.APPOINTMENT OF SECRETARY AND TREASURER.  The
board shall appoint a secretary and a treasurer who are not required
to be directors.  The board may combine the offices of secretary and
treasurer. (V.A.C.S. Art. 8280-182, Sec. 4 (part).)
       Sec.9011.106.VOTE BY BOARD PRESIDENT.  The president has
the same right to vote as any other director. (V.A.C.S.
Art. 8280-182, Sec. 4 (part).)
       Sec.9011.107.DIRECTOR'S AND TREASURER'S BOND.  (a) A
director shall give bond in the amount of $5,000 for the faithful
performance of the director's duties.
       (b)  The treasurer shall give bond in the amount required by
the board.  The treasurer's bond shall be conditioned on the
treasurer's faithfully accounting for all money that comes into the
treasurer's custody as treasurer.  (V.A.C.S. Art. 8280-182, Secs.
3(a) (part), 4 (part).)
       Sec.9011.108.COMPENSATION.  Unless the board by
resolution increases the fee to an amount authorized by Section
49.060, Water Code, each director is entitled to receive a fee of
not more than $25 a day for each day the director spends performing
duties as a director. The fees for each director for any one month
may not exceed $100.  (V.A.C.S. Art. 8280-182, Sec. 3(f) (part).)
[Sections 9011.109-9011.150 reserved for expansion]
SUBCHAPTER D.  POWERS AND DUTIES
       Sec. 9011.151.  WATER CONTROL AND IMPROVEMENT DISTRICT
POWERS.  The district has all powers conferred by the general laws
of this state relating to water control and improvement districts,
including Chapters 49 and 51, Water Code, except powers that:
             (1)  conflict with this chapter; or
             (2)  relate to the annexation and exclusion of
territory. (V.A.C.S. Art. 8280-182, Sec. 21 (part).)
       Sec. 9011.152.  WATER SUPPLY AND DISTRIBUTION; ACQUISITION
OF LAND RIGHTS. (a) The district may acquire or develop water,
including groundwater, and sources of water.
       (b)  The district may acquire or construct all works, plants,
or other facilities or equipment necessary or useful to:
             (1)  store or process the water; and
             (2)  transport and distribute the water for municipal,
domestic, farm, or industrial purposes.
       (c)  The board may make an agreement or contract with any
organized district, municipality, person, public agency, or state
or the federal government for the district to:
             (1)  acquire water, groundwater, or sources of water;
             (2)  store, process, transport, and distribute the
water; and
             (3)  perform any other act necessary to carry out the
powers of the district or accomplish a purpose of this chapter.
       (d)  An existing municipality or district may contract with
the district for the purposes stated in this section.
       (e)  The district may acquire all the land, easements, and
rights-of-way necessary to carry out the powers of the district or
the purposes of this chapter.
       (f)  The district may exercise the powers under this section
inside or outside the district's boundaries but only in Bell
County. (V.A.C.S. Art. 8280-182, Sec. 7.)
       Sec.9011.153.EMINENT DOMAIN.  (a)  In Bell County only,
the district may exercise the power of eminent domain to acquire
land, easements, or rights-of-way to carry out any power conferred
by this chapter.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code.
       (c)  The board shall determine the amount of and character of
interest in land or easements to be acquired.
       (d)  In exercising the power of eminent domain against a
person that has the power of eminent domain or a receiver or trustee
for that person, the district may acquire an easement only but may
not acquire the fee title.  (V.A.C.S. Art. 8280-182, Sec. 8 (part).)
       Sec.9011.154.COST OF RELOCATING OR ALTERING PROPERTY.  If
the district's exercise of the power of eminent domain, the power of
relocation, or any other power granted under this chapter makes
necessary the relocating, raising, rerouting, changing the grade,
or altering the construction of any highway, railroad, electric
transmission line, communication property and facility, or
pipeline, the action shall be accomplished at the sole expense of
the district.  (V.A.C.S. Art. 8280-182, Sec. 8 (part).)
       Sec. 9011.155.  AWARD OF CERTAIN CONSTRUCTION OR PURCHASE
CONTRACTS.  (a)  This section applies only to a construction
contract or contract for the purchase of materials, equipment, or
supplies requiring an expenditure of more than $2,000.
       (b)  This section does not apply to the purchase of a system
or part of a system in existence at the time of the purchase.
       (c)  The district shall award a contract to the lowest and
best bidder only after notice of the contract to bidders is
published once at least 10 days before the date the contract is
awarded.  The notice must be printed in a newspaper of general
circulation in the district that is designated by the board.
       (d)  The notice is sufficient if it states:
             (1)  the time and place for opening the bids;
             (2)  the general nature of the work to be done or the
material, equipment, or supplies to be purchased; and
             (3)  the place where and the terms on which copies of
the plans and specifications may be obtained.  (V.A.C.S. Art.
8280-182, Sec. 9.)
       Sec. 9011.156.  CONTRACTS REGARDING WATER OR SEWER
FACILITIES.  (a)  The district may contract with a municipality,
an organized district, or another person to supply water to that
person.
       (b)  The district may contract with a municipality, an
organized district, or another person to rent, lease, or operate
the water production, water supply and water supply facilities, or
sanitary and storm sewer facilities of that person.
       (c)  The parties to the contract may agree on the contract
terms including the consideration and the duration of the contract.
       (d)  The contract may provide that it will continue in effect
until bonds specified in it and refunding bonds issued in lieu of
those bonds are paid.
       (e)  A power granted by this section does not apply outside
Bell County.  (V.A.C.S. Art. 8280-182, Sec. 17.)
       Sec. 9011.157.  CONTRACTS AND COOPERATION WITH MUNICIPALITY
INSIDE DISTRICT.  (a)  The district territory described by the law
codified by this chapter intentionally overlaps the territory of an
existing municipality.  The board may contract or cooperate with
the municipality on matters that come within the purposes for which
the district is organized or in aid of those purposes.
       (b)  The municipality may contract with the district for the
purposes stated in this section or in aid of those purposes.  
(V.A.C.S. Art. 8280-182, Sec. 24.)
       Sec.9011.158.PROHIBITED AGREEMENTS.  (a)  The district
may not enter into a contract or agreement that requires the
district or the people in the district to lose ownership of or
control over the use of any district property, real, personal, or
mixed, after payment of all outstanding legal obligations of the
district, including bonds and refunding bonds.
       (b)  A contract or agreement prohibited by this section, if
entered into by the board, is void.  (V.A.C.S. Art. 8280-182, Sec.
7-A (part).)
[Sections 9011.159-9011.200 reserved for expansion]
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
       Sec.9011.201.DEPOSITORY.  (a)  The board shall designate
one or more banks to serve as depository for the district's money.
       (b)  District money shall be deposited with a designated
depository bank, except that:
             (1)  money pledged to pay bonds may be deposited with
the trustee bank named in the trust indenture; and
             (2)  money shall be remitted to the bank of payment for
the payment of principal of and interest on bonds.
       (c)  To the extent that money in a depository bank or the
trustee bank is not insured by the Federal Deposit Insurance
Corporation, the money must be secured in the manner provided by law
for the security of county funds.
       (d)  Membership on the board of an officer or director of a
bank does not disqualify the bank from being designated as a
depository. (V.A.C.S. Art. 8280-182, Sec. 18.)
       Sec.9011.202.IMPOSITION OF AD VALOREM TAXES.  A tax
imposed by the district must be an ad valorem tax, including a tax
to:
             (1)  pay off bonds for preliminary surveys and
investigation or to provide funds for conducting preliminary
surveys, if no construction bonds are to be issued; and
             (2)  pay the principal and interest and other costs
that may be paid from taxes. (V.A.C.S. Art. 8280-182, Secs. 11, 12
(part).)
       Sec.9011.203.TAX ASSESSOR AND COLLECTOR.  (a) The board
shall appoint a tax assessor and collector.
       (b)  The board may appoint deputies to assist the tax
assessor and collector by an order stating the manner and period of
assistance. (V.A.C.S. Art. 8280-182, Sec. 12 (part).)
       Sec.9011.204.PROJECTS EXEMPT FROM ASSESSMENT OR TAXATION.
The district is not required to pay a tax or assessment on a project
or any part of a project.  (V.A.C.S. Art. 8280-182, Sec. 22 (part).)
[Sections 9011.205-9011.250 reserved for expansion]
SUBCHAPTER F. BONDS
       Sec.9011.251.AUTHORITY TO ISSUE BONDS.  (a)  The
district may issue bonds to carry out any purpose of this chapter
and to:
             (1)  provide a water system, as authorized by this
chapter, for municipal, domestic, and industrial purposes;
             (2)  pay fees of an attorney, engineer, or fiscal
agent;
             (3)  pay the cost of printing and issuing bonds; and
             (4)  exercise any other power conferred by this
chapter.
       (b)  The bonds must be authorized by a board resolution.
       (c)  Bonds issued by the district must be payable by a pledge
of:
             (1)  revenue;
             (2)  ad valorem taxes imposed on all taxable property
in the district; or
             (3)  both revenue and ad valorem taxes.
       (d)  The pledge must be in a resolution or trust indenture
adopted or authorized by the board.
       (e)  A bond issuance payable wholly or partly from ad valorem
taxes is subject to the conditions prescribed by this subchapter.  
(V.A.C.S. Art. 8280-182, Secs. 10(a), (b) (part), (c) (part), (f)
(part).)
       Sec.9011.252.FORM OF BONDS.  A district bond must be:
             (1)  issued in the district's name;
             (2)  signed by the president or vice president; and
             (3)  attested by the secretary.  (V.A.C.S. Art.
8280-182, Sec. 10(b) (part).)
       Sec.9011.253.MATURITY.  District bonds must mature not
later than 40 years after their date of issuance.  (V.A.C.S. Art.
8280-182, Sec. 10(b) (part).)
       Sec. 9011.254.  ELECTION FOR BONDS PAYABLE FROM AD VALOREM
TAXES.  (a)  Bonds, other than refunding bonds, payable wholly or
partly from ad valorem taxes may not be issued unless authorized by
a majority of the district voters voting at an election.
       (b)  The board may order an election under this section
without a petition.  The order must specify:
             (1)  the time and place at which the election will be
held;
             (2)  the purpose for which the bonds will be issued;
             (3)  the maximum amount of the bonds;
             (4)  the maximum maturity of the bonds;
             (5)  the form of the ballot; and
             (6)  the presiding judge for each voting place.
       (c)  Notice of the election must be published:
             (1)  at least once in a newspaper published or having
general circulation in the district; and
             (2)  at least 14 days before the date of the election.  
(V.A.C.S. Art. 8280-182, Sec. 10(g) (part).)
       Sec.9011.255.BONDS PAYABLE FROM REVENUE.  (a)  In this
section, "net revenue" means the gross revenue of the district less
the amount necessary to pay the cost of maintaining and operating
the district and its property.
       (b)  Bonds issued under this subchapter may be secured under
board resolution by a pledge of:
             (1)  all or part of the net revenue of the district;
             (2)  the net revenue of one or more contracts made
before or after the issuance of the bonds; or
             (3)  other revenue specified by resolution of the
board.
       (c)  The pledge may reserve the right to issue additional
bonds on a parity with, or subordinate to, the bond being issued,
subject to the conditions specified in the pledge. (V.A.C.S.
Art. 8280-182, Sec. 10(d).)
       Sec.9011.256.TAX AND RATE REQUIREMENTS.  (a)  If the
district issues bonds payable wholly or partly from ad valorem
taxes, the board shall impose a tax sufficient to pay the bonds and
the interest on the bonds as the bonds and interest become due.  The
board may adopt the rate of the tax after considering the money
received from pledged revenue available for payment of principal
and interest to the extent and in the manner permitted by the
resolution authorizing the issuance of the bonds.
       (b)  If the district issues bonds payable wholly or partly
from revenue, the board shall set and revise the rates of
compensation for the use of the systems and services rendered by the
district.
       (c)  For bonds payable wholly from revenue, the rates of
compensation must be sufficient to:
             (1)  pay the expense of operating and maintaining the
facilities of the district;
             (2)  pay the bonds as they mature and the interest as it
accrues; and
             (3)  maintain the reserve and other funds as provided
by the resolution authorizing the issuance of the bonds or the trust
indenture.
       (d)  For bonds payable partly from revenue, the rates of
compensation must be sufficient to assure compliance with the
resolution authorizing the issuance of the bonds or with the trust
indenture. (V.A.C.S. Art. 8280-182, Secs. 10(e), (f) (part).)
       Sec.9011.257.ADDITIONAL SECURITY.  (a)  Bonds, including
refunding bonds, authorized by this subchapter may be additionally
secured by a deed of trust lien on physical property of the
district, franchises, easements, water rights and appropriation
permits, leases, contracts, and all rights appurtenant to the
property, vesting in the trustee the power to:
             (1)  sell the property; and
             (2)  take other action to further secure the bonds.
       (b)  A purchaser under a sale under the deed of trust:
             (1)  is the owner of the property and facilities
purchased; and
             (2)  is entitled to maintain and operate the property
and facilities. (V.A.C.S. Art. 8280-182, Sec. 14.)
       Sec.9011.258.TRUST INDENTURE OR DEED OF TRUST.  (a)  A
deed of trust lien conferred on the physical property may be
combined with the trust indenture authorized by this chapter.
       (b)  The trust indenture or deed of trust may provide for:
             (1)  the security of the bonds and the operation and
preservation of the trust estate in the manner prescribed by the
board;
             (2)  amendment or modification of the trust indenture
or deed of trust; and
             (3)  the issuance of bonds to replace lost or mutilated
bonds. (V.A.C.S. Art. 8280-182, Sec. 15.)
       Sec.9011.259.USE OF BOND PROCEEDS.  (a)  The district may
set aside an amount of proceeds from the sale of bonds issued under
this subchapter for the payment of:
             (1)  interest to accrue during two years after the
purchase of a system or expected to accrue during construction and
two years after construction; and
             (2)  a reserve interest and sinking fund.
       (b)  The resolution authorizing the bonds or a trust
indenture may provide for setting aside amounts under Subsection
(a).
       (c)  The district may use proceeds from the sale of the bonds
to pay an expense incurred in accomplishing the purposes of the
district, including:
             (1)  the fees of attorneys, engineers, or fiscal
agents; and
             (2)  the cost of printing and issuing the bonds.
(V.A.C.S. Art. 8280-182, Sec. 10(h).)
       Sec.9011.260.APPOINTMENT OF RECEIVER.  (a)  On default or
threatened default in the payment of the principal of or interest on
bonds issued under this subchapter and payable wholly or partly
from revenue, a court may, on petition of the holders of 25 percent
of the outstanding bonds, appoint a receiver.
       (b)  The receiver may collect and receive all district
income, employ and discharge district agents and employees, take
charge of money on hand, and manage the affairs of the district
without consent or hindrance by the board.
       (c)  The court may vest the receiver with any other power or
duty the court finds necessary to protect the bondholders.
(V.A.C.S. Art. 8280-182, Sec. 10(i).)
       Sec.9011.261.REFUNDING BONDS.  (a)  The district may issue
refunding bonds without an election to refund outstanding bonds
issued under this subchapter and interest on those bonds.
       (b)  Refunding bonds may:
             (1)  be issued to refund bonds of more than one series;
             (2)  combine the pledges for the outstanding bonds for
the security of the refunding bonds; or
             (3)  be secured  by a pledge of other or additional
revenue.
       (c)  The provisions of this subchapter regarding the
issuance of other bonds and the remedies of the holders apply to
refunding bonds.
       (d)  The comptroller shall register the refunding bonds on
surrender and cancellation of the bonds to be refunded.
       (e)  Instead of issuing bonds to be registered on the
surrender and cancellation of the bonds to be refunded, the
district, in the resolution authorizing the issuance of the
refunding bonds, may provide for the sale of the refunding bonds and
the deposit of the proceeds in a bank at which the bonds to be
refunded are payable. In that case, the refunding bonds may be
issued in an amount sufficient to pay the interest on the bonds to
be refunded to their option date or maturity date, and the
comptroller shall register the refunding bonds without the
surrender and cancellation of the bonds to be refunded. (V.A.C.S.
Art. 8280-182, Sec. 13.)
       Sec.9011.262.BONDS EXEMPT FROM TAXATION.  A bond issued
under this subchapter, the transfer of the bond, and income from the
bond, including profits made on the sale of the bond, are exempt
from taxation in this state. (V.A.C.S. Art. 8280-182, Sec. 22
(part).)
CHAPTER 9012.  CROSBY MUNICIPAL UTILITY DISTRICT OF HARRIS COUNTY,
TEXAS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 9012.001.  DEFINITIONS
Sec. 9012.002.  NATURE OF DISTRICT
Sec. 9012.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
[Sections 9012.004-9012.050 reserved for expansion]
SUBCHAPTER B.  DISTRICT TERRITORY AND EXCLUSIONS FROM DISTRICT
TERRITORY
Sec. 9012.051.  DISTRICT TERRITORY
Sec. 9012.052.  EXCLUDING TERRITORY FROM THE DISTRICT
Sec. 9012.053.  HEARINGS FOR EXCLUSION OF TERRITORY
[Sections 9012.054-9012.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 9012.101.  COMPOSITION OF BOARD
[Sections 9012.102-9012.150 reserved for expansion]
SUBCHAPTER D. POWERS AND DUTIES
Sec. 9012.151.  WATER CONTROL AND IMPROVEMENT DISTRICT
                 POWERS
Sec. 9012.152.  ACQUISITION OF IMPROVEMENTS
Sec. 9012.153.  COST OF RELOCATING OR ALTERING PROPERTY
Sec. 9012.154.  LIMIT ON EMINENT DOMAIN POWER
Sec. 9012.155.  DURATION OF CONTRACT FOR WATER PURCHASE
                 OR SALE
[Sections 9012.156-9012.200 reserved for expansion]
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 9012.201.  TAX METHOD
CHAPTER 9012.  CROSBY MUNICIPAL UTILITY DISTRICT OF HARRIS COUNTY,
TEXAS
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.9012.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "District" means the Crosby Municipal Utility
District of Harris County, Texas. (V.A.C.S. Art. 8280-315, Sec. 1
(part); New.)
       Sec.9012.002.NATURE OF DISTRICT.  The district is:
             (1)  a conservation and reclamation district under
Section 59, Article XVI, Texas Constitution;
             (2)  a water control and improvement district; and
             (3)  a municipal corporation. (V.A.C.S. Art. 8280-315,
Secs. 1 (part), 7 (part), 8 (part).)
       Sec.9012.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
The district is created to serve a public use and benefit.
       (b)  All land and other property in the district will benefit
from the creation of the district and the improvements the district
will purchase, construct, or otherwise acquire.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.
(V.A.C.S. Art. 8280-315, Secs. 7 (part), 8 (part).)
[Sections 9012.004-9012.050 reserved for expansion]
SUBCHAPTER B.  DISTRICT TERRITORY AND EXCLUSIONS FROM DISTRICT
TERRITORY
       Sec.9012.051.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 1, Chapter 554, Acts
of the 59th Legislature, Regular Session, 1965 (Article 8280-315,
Vernon's Texas Civil Statutes), as that territory may have been
modified under:
             (1)  Subchapter O, Chapter 51, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code;
             (3)  former Section 5, Chapter 554, Acts of the 59th
Legislature, Regular Session, 1965 (Article 8280-315, Vernon's
Texas Civil Statutes); or
             (4)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, or
validity;
             (2)  the district's right to issue bonds or to pay the
principal of and interest on the bonds;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or its
governing body. (V.A.C.S. Art. 8280-315, Sec. 2; New.)
       Sec.9012.052.EXCLUDING TERRITORY FROM THE DISTRICT.  (a)  
The board may exclude territory from the district before voting any
bonds or taxes in and for the district.
       (b)  The board shall give notice of its intention to hold a
hearing on the question of excluding territory from the district.
The notice must:
             (1)  specify the date and place of the hearing; and
             (2)  describe by metes and bounds the territory
proposed to be excluded.
       (c)  The notice must be published at least once in a
newspaper of general circulation in Harris County. The first
publication of the notice must be at least 10 days before the date
set for the hearing.
       (d)  The board by order may exclude the territory from the
district if at the hearing the board finds that the proposed
exclusion of territory is advantageous to the district and to the
territory to be excluded. In the order, the board shall also
redefine the boundaries of the district to embrace all land not
excluded.  The territory is no longer a part of the district.
       (e)  The order authorizing the exclusion must be recorded in
the board minutes. (V.A.C.S. Art. 8280-315, Sec. 5 (part).)
       Sec.9012.053.HEARINGS FOR EXCLUSION OF TERRITORY. (a)
The board is not required to call or hold a hearing on the exclusion
of land or other property from the district.
       (b)  This section may not be construed to prevent the board
on its own motion from calling and holding an exclusion hearing
under general law. (V.A.C.S. Art. 8280-315, Sec. 7 (part).)
[Sections 9012.054-9012.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS
       Sec.9012.101.COMPOSITION OF BOARD. The board is composed
of five directors. (V.A.C.S. Art. 8280-315, Sec. 4 (part).)
[Sections 9012.102-9012.150 reserved for expansion]
SUBCHAPTER D. POWERS AND DUTIES
       Sec. 9012.151.  WATER CONTROL AND IMPROVEMENT DISTRICT
POWERS. The district has the rights, powers, privileges, and
duties provided by general law applicable to a water control and
improvement district created under Section 59, Article XVI, Texas
Constitution, including Chapters 49 and 51, Water Code. (V.A.C.S.
Art. 8280-315, Sec. 3 (part).)
       Sec.9012.152.ACQUISITION OF IMPROVEMENTS. The district
may make, construct, or otherwise acquire improvements inside or
outside the district that are necessary or convenient to carry out a
power granted to the district under this chapter or a general law
described by Section 9012.151. (V.A.C.S. Art. 8280-315, Sec. 3
(part).)
       Sec.9012.153.COST OF RELOCATING OR ALTERING PROPERTY.
(a) In this section, "sole expense" means the actual cost of
relocating, raising, lowering, rerouting, or changing the grade of,
or altering the construction of a facility described by Subsection
(b) in providing comparable replacement without enhancement of the
facility, after deducting from that cost the net salvage value
derived from the old facility.
       (b)  If the district's exercise of the power of eminent
domain, the power of relocation, or any other power conferred by
this chapter makes necessary the relocation, raising, rerouting,
changing the grade, or alteration of the construction of a highway,
a railroad, an electric transmission line, or a telephone or
telegraph property or facility, or a pipeline, the necessary action
shall be accomplished at the sole expense of the district.
(V.A.C.S. Art. 8280-315, Sec. 3 (part).)
       Sec.9012.154.LIMIT ON EMINENT DOMAIN POWER. The district
may not exercise the power of eminent domain outside the district.
(V.A.C.S. Art. 8280-315, Sec. 3 (part).)
       Sec. 9012.155.  DURATION OF CONTRACT FOR WATER PURCHASE OR
SALE. A district contract for the purchase or sale of water may not
exceed 40 years. (V.A.C.S. Art. 8280-315, Sec. 3 (part).)
[Sections 9012.156-9012.200 reserved for expansion]
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
       Sec.9012.201.TAX METHOD. (a)  The district shall use the
ad valorem basis or plan of taxation.
       (b)  The board is not required to hold a hearing on the
adoption of a plan of taxation.  (V.A.C.S. Art. 8280-315, Sec. 7
(part).)
CHAPTER 9013.  CNP UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 9013.001.  DEFINITIONS
Sec. 9013.002.  NATURE OF DISTRICT
Sec. 9013.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
[Sections 9013.004-9013.050 reserved for expansion]
SUBCHAPTER B.  DISTRICT TERRITORY AND ANNEXATIONS
TO DISTRICT TERRITORY
Sec. 9013.051.  DISTRICT TERRITORY
Sec. 9013.052.  EXPANSION OF DISTRICT
[Sections 9013.053-9013.100 reserved for expansion]
SUBCHAPTER C. DISTRICT ADMINISTRATION
Sec. 9013.101.  COMPOSITION OF BOARD
Sec. 9013.102.  DIRECTOR'S BOND
Sec. 9013.103.  VACANCY
Sec. 9013.104.  DISTRICT OFFICE
Sec. 9013.105.  ABSENCE OF PRESIDENT FROM BOARD MEETING
[Sections 9013.106-9013.150 reserved for expansion]
SUBCHAPTER D. POWERS AND DUTIES
Sec. 9013.151.  WATER CONTROL AND IMPROVEMENT DISTRICT
                 POWERS AND DUTIES
Sec. 9013.152.  ADDITIONAL POWERS AND DUTIES
Sec. 9013.153.  EMINENT DOMAIN
Sec. 9013.154.  COST OF RELOCATING OR ALTERING PROPERTY
Sec. 9013.155.  CONTRACT FOR PURCHASE OF WATER, SEWER,
                 OR DRAINAGE SERVICES; ELECTION NOT
                 REQUIRED
Sec. 9013.156.  NOTICE OF ELECTION
Sec. 9013.157.  DISTRICT RULES
[Sections 9013.158-9013.200 reserved for expansion]
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 9013.201.  TAX METHOD
Sec. 9013.202.  DISTRICT ACCOUNTS
Sec. 9013.203.  COPY OF AUDIT REPORT
Sec. 9013.204.  PAYMENT OF TAX OR ASSESSMENT NOT
                 REQUIRED
Sec. 9013.205.  DIRECTOR AS SHAREHOLDER IN DEPOSITORY
[Sections 9013.206-9013.250 reserved for expansion]
SUBCHAPTER F. BONDS
Sec. 9013.251.  ISSUANCE OF BONDS
Sec. 9013.252.  ADDITIONAL SECURITY
Sec. 9013.253.  TRUST INDENTURE
Sec. 9013.254.  ORDER OR RESOLUTION AUTHORIZING
                 ISSUANCE OF CERTAIN BONDS
CHAPTER 9013.  CNP UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.9013.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "District" means the CNP Utility District.
(V.A.C.S. Art. 8280-466, Sec. 1 (part); New.)
       Sec.9013.002.NATURE OF DISTRICT. The district is a
conservation and reclamation district in Harris County created
under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art.
8280-466, Sec. 1 (part).)
       Sec.9013.003.FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
The district is created to serve a public use and benefit.
       (b)  All land and other property included in the boundaries
of the district will benefit from the works and projects
accomplished by the district under the powers conferred by Section
59, Article XVI, Texas Constitution.
       (c)  The creation of the district is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.
       (d)  The accomplishment of the purposes stated in this
chapter is for the benefit of the people of this state and for the
improvement of their property and industries. The district, in
carrying out the purposes of this chapter, will be performing an
essential public function under the constitution. (V.A.C.S. Art.
8280-466, Secs. 1 (part), 4, 24 (part).)
[Sections 9013.004-9013.050 reserved for expansion]
SUBCHAPTER B.  DISTRICT TERRITORY AND ANNEXATIONS
TO DISTRICT TERRITORY
       Sec.9013.051.DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 2, Chapter 751, Acts
of the 61st Legislature, Regular Session, 1969, as that territory
may have been modified under:
             (1)  Subchapter O, Chapter 51, Water Code;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  other law.
       (b)  The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field notes
in the legislative process does not affect:
             (1)  the district's organization, existence, and
validity;
             (2)  the district's right to issue any type of bond for
a purpose for which the district is created or to pay the principal
of and interest on the bond;
             (3)  the district's right to impose a tax; or
             (4)  the legality or operation of the district or the
board. (V.A.C.S. Art. 8280-466, Sec. 3; New.)
       Sec.9013.052.EXPANSION OF DISTRICT.  (a)  If land is added
to the district under Section 49.301 or 51.714, Water Code, the
board may require the petitioners:
             (1)  to assume the petitioners' pro rata share of the
voted but unissued bonds of the district; and
             (2)  to authorize the board to impose a tax on the
petitioners' property to pay for the bonds after the bonds have been
issued.
       (b)  If land is annexed in the manner provided by Section
49.302, Water Code, the board may also submit a proposition to the
voters of the area to be annexed on the question of the assumption
by the area to be annexed of its part of the voted but not yet issued
or sold tax or tax-revenue bonds of the district and the imposition
of an ad valorem tax on taxable property within the area to be
annexed along with a tax on the rest of the district for the payment
of the bonds.
       (c)  If the petitioners consent or if the election results
favorably, the district may issue its voted but unissued tax or
tax-revenue bonds regardless of changes to district boundaries
since the original voting or authorization of the bonds.  (V.A.C.S.
Art. 8280-466, Sec. 9.)
[Sections 9013.053-9013.100 reserved for expansion]
SUBCHAPTER C. DISTRICT ADMINISTRATION
       Sec.9013.101.COMPOSITION OF BOARD. The board consists of
five directors. (V.A.C.S. Art. 8280-466, Sec. 10 (part).)
       Sec.9013.102.DIRECTOR'S BOND. (a) Each director shall
give bond in the amount of $5,000 for the faithful performance of
the director's duties.
       (b)  The bond must be:
             (1)  approved by the county judge and the board;
             (2)  filed in the office of the county clerk of the
county or counties in which the district is located; and
             (3)  recorded in a record book kept for that purpose in
the district office. (V.A.C.S. Art. 8280-466, Sec. 10 (part).)
       Sec.9013.103.VACANCY. (a) Except as provided by
Subsection (b), a vacancy in the office of director shall be filled
in the manner provided by Section 49.105, Water Code.
       (b)  The county judge of the county in which the district is
located shall appoint directors to fill all vacancies on the board
whenever the number of qualified directors is fewer than three.
(V.A.C.S. Art. 8280-466, Sec. 10 (part).)
       Sec.9013.104.DISTRICT OFFICE. (a)  Except as provided by
this section, the board shall designate, establish, and maintain a
district office as provided by Section 49.062, Water Code.
       (b)  The board may establish a second district office outside
the district. If the board establishes a second district office,
the board shall give notice of the location of that office by:
             (1)  filing a copy of the board resolution that
establishes the location of the office:
                   (A)  with the Texas Commission on Environmental
Quality; and
                   (B)  in the water control and improvement district
records of each county in which the district is located; and
             (2)  publishing notice of the location of the office in
a newspaper of general circulation in each county in which the
district is located.
       (c)  A district office that is a private residence, office,
or dwelling is a public place for matters relating to district
business.
       (d)  The board shall provide notice of any change in the
location of the district office outside the district in the manner
required by Subsection (b). (V.A.C.S. Art. 8280-466, Sec. 15.)
       Sec.9013.105.ABSENCE OF PRESIDENT FROM BOARD MEETING. If
the board president is absent from a board meeting:
             (1)  the board vice president may:
                   (A)  sign an order adopted at the meeting; or
                   (B)  implement any other action taken at the
meeting; or
             (2)  the board may authorize the president to sign the
order or implement the action. (V.A.C.S. Art. 8280-466, Sec. 10
(part).)
[Sections 9013.106-9013.150 reserved for expansion]
SUBCHAPTER D. POWERS AND DUTIES
       Sec. 9013.151.  WATER CONTROL AND IMPROVEMENT DISTRICT
POWERS AND DUTIES. The district has all of the rights, powers,
privileges, authority, and functions conferred by the general laws
of the state relating to water control and improvement districts
created under Section 59, Article XVI, Texas Constitution,
including those conferred by Chapters 49 and 51, Water Code.
(V.A.C.S. Art. 8280-466, Sec. 5 (part).)
       Sec.9013.152.ADDITIONAL POWERS AND DUTIES. (a) The
district may:
             (1)  make, purchase, construct, lease, or otherwise
acquire property, works, facilities, existing improvements, or
improvements to be made, constructed, or acquired that are:
                   (A)  inside or outside the district's boundaries;
and
                   (B)  necessary to carry out the powers granted by
this chapter or general law; or
             (2)  enter into a contract with a person on terms the
board considers desirable, fair, and advantageous for:
                   (A)  the purchase or sale of water;
                   (B)  the transportation, treatment, and disposal
of the domestic, industrial, or communal wastes of the district or
others;
                   (C)  the continuing and orderly development of
land and property in the district through the purchase,
construction, or installation of facilities, works, or
improvements that the district is otherwise authorized to do or
perform so that, to the greatest extent reasonably possible,
considering sound engineering and economic practices, all of the
land and property may ultimately receive the services of the
facilities, works, or improvements; and
                   (D)  the performance of any of the powers granted
by this chapter or general law.
       (b)  A contract under Subsection (a)(2) may not have a
duration of more than 40 years. (V.A.C.S. Art. 8280-466, Sec. 5
(part).)
       Sec.9013.153.EMINENT DOMAIN. The district may exercise
the power of eminent domain only:
             (1)  in a county in which the district is located; and
             (2)  when necessary to carry out the purposes for which
the district was created. (V.A.C.S. Art. 8280-466, Sec. 13
(part).)
       Sec.9013.154.COST OF RELOCATING OR ALTERING PROPERTY.
(a) In this section, "sole expense" means the actual cost of
relocating, raising, lowering, rerouting, or changing the grade of
or altering the construction of a facility described by Subsection
(b) in providing comparable replacement without enhancement of the
facility, after deducting from that cost the net salvage value of
the old facility.
       (b)  If the district's exercise of the power of eminent
domain, the power of relocation, or any other power conferred by
this chapter makes necessary relocating, raising, rerouting,
changing the grade, or altering the construction of a highway, a
railroad, an electric transmission line, a telegraph or telephone
property or facility, or a pipeline, the necessary action shall be
accomplished at the sole expense of the district. (V.A.C.S. Art.
8280-466, Sec. 13 (part).)
       Sec. 9013.155.  CONTRACT FOR PURCHASE OF WATER, SEWER, OR
DRAINAGE SERVICES; ELECTION NOT REQUIRED. (a) The district may
enter into a contract with a political subdivision for water,
sewer, or drainage services or any combination of those services
without the necessity of an election by any contracting party.
       (b)  The district may pay for an obligation incurred by such
a contract by issuing bonds that, if otherwise necessary, have been
approved by the voters in the manner provided by this chapter.
       (c)  The district may deliver the district's bonds to any of
the following parties that enters into such a contract with the
district:
             (1)  the United States;
             (2)  an agency or instrumentality of the United States;
             (3)  this state; or
             (4)  an agency or instrumentality of this state.
(V.A.C.S. Art. 8280-466, Sec. 5 (part).)
       Sec.9013.156.NOTICE OF ELECTION. The board president or
secretary may give notice of an election. (V.A.C.S. Art. 8280-466,
Sec. 19.)
       Sec.9013.157.DISTRICT RULES. The district shall adopt
and enforce reasonable and effective rules to secure and maintain
safe, sanitary, and adequate plumbing installations, connections,
and appurtenances as subsidiary parts of the district's sewerage
system to preserve the quality of water within or controlled by the
district. (V.A.C.S. Art. 8280-466, Sec. 16.)
[Sections 9013.158-9013.200 reserved for expansion]
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
       Sec.9013.201.TAX METHOD. (a) The board shall use the ad
valorem plan of taxation.
       (b)  The board is not required to hold a hearing on the
adoption of a plan of taxation. (V.A.C.S. Art. 8280-466, Sec. 8.)
       Sec.9013.202.DISTRICT ACCOUNTS. The district shall keep
a complete system of the district's accounts. (V.A.C.S. Art.
8280-466, Sec. 14 (part).)
       Sec.9013.203.COPY OF AUDIT REPORT. A copy of the audit
report prepared under Subchapter G, Chapter 49, Water Code, shall
be delivered:
             (1)  to each director; and
             (2)  on request to a holder of at least 25 percent of
the outstanding bonds of the district. (V.A.C.S. Art. 8280-466,
Sec. 14 (part).)
       Sec.9013.204.PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED.
The district is not required to pay a tax or assessment on:
             (1)  district property; or
             (2)  a purchase made by the district. (V.A.C.S. Art.
8280-466, Sec. 24 (part).)
       Sec.9013.205.DIRECTOR AS SHAREHOLDER IN DEPOSITORY. A
director may be a shareholder in a depository of district funds.
(V.A.C.S. Art. 8280-466, Sec. 14 (part).)
[Sections 9013.206-9013.250 reserved for expansion]
SUBCHAPTER F. BONDS
       Sec.9013.251.ISSUANCE OF BONDS. (a) The district may
issue bonds payable from taxes or revenue to provide money for any
purpose of this chapter, including the acquisition of land.
       (b)  The district must issue bonds in the manner provided by
Chapters 49 and 51, Water Code, except that the district may issue
bonds payable solely from net revenue by resolution or order of the
board without an election.
       (c)  Bonds issued under this subchapter may be payable from
all or any designated part of the revenue of district property and
facilities or under a specific contract, as provided in the order or
resolution authorizing the issuance of bonds. (V.A.C.S. Art.
8280-466, Sec. 12 (part).)
       Sec.9013.252.ADDITIONAL SECURITY. (a) Within the
discretion of the board, bonds issued under this subchapter may be
additionally secured by a deed of trust or mortgage lien on physical
property of the district and franchises, easements, water rights
and appropriation permits, leases, contracts, and all rights
appurtenant to that property, vesting in the trustee the power to:
             (1)  sell the property for payment of the debt;
             (2)  operate the property; and
             (3)  take any other action to secure the bonds.
       (b)  A purchaser under a sale under the deed of trust or
mortgage lien of the property:
             (1)  is the absolute owner of the property, facilities,
and rights purchased; and
             (2)  may maintain and operate the property and
facilities. (V.A.C.S. Art. 8280-466, Sec. 12 (part).)
       Sec.9013.253.TRUST INDENTURE. A trust indenture created
under Section 9013.252, regardless of the existence of a deed of
trust or mortgage lien on the property, may:
             (1)  provide for the security of the bonds and the
preservation of the trust estate in the manner prescribed by the
board;
             (2)  provide for amendment or modification of the trust
indenture;
             (3)  provide for the issuance of bonds to replace lost
or mutilated bonds;
             (4)  condition the right to spend district money or
sell district property on the approval of a licensed engineer
selected as provided by the trust indenture; and
             (5)  provide for the investment of district money.
(V.A.C.S. Art. 8280-466, Sec. 12 (part).)
       Sec. 9013.254.  ORDER OR RESOLUTION AUTHORIZING ISSUANCE OF
CERTAIN BONDS. (a) In an order or resolution authorizing the
issuance of revenue, tax-revenue, revenue refunding, or
tax-revenue refunding bonds, the board may:
             (1)  provide for:
                   (A)  the flow of funds; and
                   (B)  the establishment and maintenance of the
interest and sinking fund, reserve fund, or other fund;
             (2)  make additional covenants with respect to the
bonds and the pledged revenue and the operation and maintenance of
the improvements and facilities the revenue of which is pledged,
which may include provisions for the operation or leasing of all or
part of the improvements and facilities and the use or pledge of
money received from the operation contract or lease as the board
considers appropriate;
             (3)  prohibit the further issuance of bonds or other
obligations payable from the pledged revenue or reserve the right
to issue additional bonds to be secured by a pledge of and payable
from the revenue on a parity with, or subordinate to, the lien and
pledge in support of the bonds being issued, subject to any
conditions set forth in the order or resolution; and
             (4)  include any other provision or covenant not
prohibited by the Texas Constitution or this chapter.
       (b)  The board may adopt and execute any other proceeding or
instrument necessary or convenient in the issuance of the bonds.
(V.A.C.S. Art. 8280-466, Sec. 12 (part).)
ARTICLE 2.  CONFORMING AMENDMENTS
       SECTION 2.01.  Section 1, Chapter 668, Acts of the 64th
Legislature, Regular Session, 1975, is amended to read as follows:
       Sec. 1.  The boundaries [Pursuant to the provisions of
Article IX, Section 9, of the Texas Constitution, this Act
authorizes the creation, establishment, maintenance, operation,
and financing] of the Follett Hospital District of Lipscomb County
[the boundaries of which] are described as follows:
       "Beginning at the Northeast corner of Lipscomb County at the
Northeast corner of the Texas Panhandle at a corner of the State
Boundary Line between Texas and Oklahoma;
       Thence South along the East line of Lipscomb County and along
the State Boundary Line, about 15.5 miles, to an extension of the
South line of Section 705, Block 43, H&TC RR Co. Surveys in Lipscomb
County, Texas;
       Thence West along said extension and along the South line of
Sections 705, 706, 707, 708, 709, 710, 711, 712, 713, 714, 715, 716,
717, 718, 719, 720, 721, 722, 723, 724 and 725 all in said Block 43,
about 21.5 miles, to the Southwest corner of said Section 725;
       Thence North along the West line of said Section 725, about
one mile, to the Northwest corner of said Section 725;
       Thence East along the North line of Sections 725, 724, 723,
722, 721, 720, 719, 718, 717, and 716 all in said Block 43, about 10
miles, to the Northeast corner of said Section 716 which is also the
Southwest corner of Section 782 in said Block 43;
       Thence North along the West line of Sections 782, 803 and 870
in said Block 43, about 3 miles, to the Northwest corner of said
Section 870 which is also the Southeast corner of Section 892 in
said Block 43;
       Thence West along the South line of Section 892 and Section
893 in said Block 43, about 2 miles, to the Southwest corner of said
Section 893;
       Thence North along the West line of said Section 893, about
one mile, to the Northwest corner of said Section 893 which is also
the Southeast corner of Section 955 in said Block 43;
       Thence West along the South line of said Section 955, about
one mile, to the Southwest corner of said Section 955;
       Thence North along the West line of Sections 955, 982, 1043,
1070, 1131 and 1158 all in said Block 43, about 6 miles, to a point
in the South line of Section 163, Block 10, H&GN RR Co. Surveys;
       Thence West along the South line of said Section 163 to the
Southwest corner of said Section 163;
       Thence North along the West line of said Section 163 and along
the West line of Sections 102, 75 and 14, Block 10, H&TB RR Co.
Surveys and an extension of said line, about 4.5 miles, to its
intersection with the North line of Lipscomb County which is also
the State Boundary Line between Texas and Oklahoma;
       Thence East along said North line of Lipscomb County and said
State Boundary Line, about 14.5 miles, to PLACE OF BEGINNING."
       SECTION 2.02.  Section 1, Chapter 539, Acts of the 63rd
Legislature, Regular Session, 1973, is amended to read as follows:
       Sec. 1.  The boundaries [Pursuant to the provisions of
Article IX, Section 9, of the Texas Constitution, this Act shall be
operative so as to authorize the creation, establishment,
maintenance, and operation] of the Darrouzett Hospital District of
Lipscomb County, Texas, [the boundaries of which] are described as
follows, to-wit:
       BEGINNING at the intersection of the state boundary line
between Texas and Oklahoma and the eastern boundary line of
Sections 23 and 66 of Block 10, H. T. & B. Survey, Lipscomb County,
Texas;
       THENCE Southerly along the eastern boundaries of Sections 66,
23, and 111, in Block 10, H. T. & B. Survey and of Section 154, Block
10, S.P. R.R. Survey, to the point of intersection of the eastern
boundary of said Section 154 with the south boundary of Section 155
of Block 10 of the Southern Pacific R. R. Survey;
       THENCE East along the south boundary of Section 155 of Block
10 of the Southern Pacific R. R. Survey to its point of intersection
with the east boundary of Section 1167, Block 43, H. & T. C. R. R.
Co. Survey;
       THENCE South along the east boundary of said Section 1167 and
continuing south along the east boundaries of Sections 1122, 1079,
1034, 991, 946, 903, 858, 815, 770, and 727 of Block 43, H. & T. C.
R. R. Co. Survey to the southwest corner of Section 726 (which is
the same as the southeast corner of Section 727);
       THENCE East approximately one mile along the southern
boundary of Section 726 to the southeast corner of the said Section
726;
       THENCE North approximately one mile along the eastern
boundary of the said Section 726 to the Southwest corner of Section
772 (which is the same as the northeast corner of Section 726);
       THENCE East along the south boundary line of Sections 772,
773, 774, 775, 776, 777, 778, 779, 780 and 781, all in Block 10, H. &
T. C. R. R. Co. Survey to the southeast corner of the said Section
781;
       THENCE North approximately three miles along the east
boundary of Sections 781, 804 and 869 to the northeast corner of the
said Section 869;
       THENCE West approximately two miles along the north boundary
line of Sections 869 and 868 to the southeast corner of Section 894
(which is the same as the northwest corner of Section 868);
       THENCE North approximately one mile along the eastern
boundary of Section 894;
       THENCE West approximately one mile along the north boundary
of the said Section 894 to the southeast corner of Section 954
(which is the same as the northwest corner of Section 894);
       THENCE North along the eastern boundary of Sections 954, 983,
1042, 1071, 1130, and 1159 to the intersection of the said eastern
boundary line of Section 1159 with the south boundary line of
Section 163, Block 10, H. & G. N. R. R. Co. Survey;
       THENCE West along the south boundary of Section 163 to the
east boundary line of Section 162, Block 10, H. & G. R. R. Co.
Survey;
       THENCE North along the east boundary line of the said Section
162, and of Sections 103, 74 and 15, Block 10, H. T. & B. R. R. Co.
Survey to the state boundary line between Texas and Oklahoma;
       THENCE West along the said state boundary of Texas and
Oklahoma to the PLACE OF BEGINNING.
       [The Darrouzett Hospital District shall include all of the
present territory of the Darrouzett Independent School District
except for that part of the school district which is already in the
Booker Hospital District.]
       SECTION 2.03.  Section 1, Chapter 561, Acts of the 63rd
Legislature, Regular Session, 1973, is amended to read as follows:
       Sec. 1.  The [Pursuant to the authority granted by the
provisions of Article IX, Section 9, of the Texas Constitution,
the] Hamlin Hospital District[, hereinafter referred to as
district,] is [hereby authorized to be created and established so
as to be] composed of all the territory and property in Jones County
included within the following boundaries:
       Beginning at a point on the North line of Jones County at its
intersection with the East line of Section 87, BBB&C RR Co. lands,
said point being also on the boundary of the Stamford Hospital
District;
       Thence South with the East lines of Sections 87, 88, 89, 90,
91, BBB&C RR Co. lands to the SE corner of Section 91, the NE corner
of Section 92, same lands;
       Thence West with the South lines of Sections 91 and 102 to the
mid-point of the South line of Section 102, same lands;
       Thence South across Sections 101 and 100 to the mid-point of
the South line Section 100, same lands;
       Thence West with the South line of Section 100 to the
Southwest corner of said Section 100;
       Thence South with the West line of Section 99, same lands and
the West lines of Sections 7 and 8, GH&H RR Co. Survey to a point in
the East line of the McMullen and McGloin League 336;
       Thence S 15 deg. E with the East line of League 336 to its SE
corner;
       Thence S 75 deg. W with the South line of League 336 to the NE
corner of Sub-division 12 of the L. Kratz League 335;
       Thence S 15 deg. E with the East lines of Subdivisions 12, 17
and 26, League 335 to a point in the North line of the Harrison
County School Lands League 334;
       Thence S 75 deg. W with the North line of League 334 to the NE
corner of Subdivision 30, League 334;
       Thence S 15 deg. E with the East lines of Subdivisions 30 and
43 to the mid-point of said League 334;
       Thence S 75 deg. W to the mid-point of the West line of said
League 334;
       Thence S 15 deg. E with the West lines of League 334 and 333
Harrison County School Lands to the SW corner of League 333 on the
North line of Section 44, S. P. RR Co. Block 2;
       Thence S 75 deg. W with the North line of said Sec. 44 to its
NW corner;
       Thence South with the West lines of Sections 44 and 43, S. P.
RR to the SW corner of said Section 43 on the North line of the S.
Redman pre-emption Survey;
       Thence N 75 deg. E to the NE corner of said Redman Survey;
       Thence S 15 deg. E with the East lines of the S. Redman and W.
S. Coulson Survey 212 to the NE corner of the M. Northington Survey
270 on the Clear Fork of the Brazos River;
       Thence down the river with its meanders and with the East line
of the M. Northington Survey 270 and the North lines of the J. M.
Cloud Survey 269, J. C. Hunt Survey 268, the M. Fragosa Survey 267,
the S. Jones Survey 266 and the A. B. Jones Survey 265 to the NE
corner of Survey 265;
       Thence S 15 deg. E with the East line of Section 265 to its SE
corner on the North line of Section 9, Blk. 17, T&P RR Co.;
       Thence S 75 deg. W with the North line of Section 9 to its NW
corner;
       Thence S 13 deg. E with the East lines of Sections 8, 13, 16
same lands and crossing Section 22, same lands to a point in the
North line of the G. A. Kirkland Survey 2;
       Thence N 75 deg. E with the North line of said Survey 2 to the
NE corner of Subdivision 63;
       Thence S 15 deg. E with the East line of Subdivision 63 to a
point in the North line of Dewitt County School Lands League 126;
       Thence N 77 deg. E with the North line of League 126 to its NE
corner;
       Thence S 13 deg. E with the East line of League 126 and
Section 23, Blk. 17, T&P RR to a point in the South line of Jones
County;
       Thence West with South County line of Jones County across
Blk. 17, T&P RR Co. Dewitt County School Lands Leagues 125 and 149,
Blks. 18, 19, T&P RR Co. to the SW corner of Jones County, the SE
corner of Fisher County;
       Thence North with the West county line of Jones County across
the R. S. Spiers Survey 283, E. Miles Survey 219, J. S. Hail Survey
2, Goliad County School Land Leagues 360, 359 and 358, J. Rodriquez
Survey 357, I. De La Garza Survey 356, Austin & Williams Survey 355
and 354, BBB&C RR Co. Blk. 1, Sections 181, 182 and 183, and others
to the NW corner of Jones County and the NE corner of Fisher County;
       Thence East with the North county line of Jones County across
the W. E. Kaye Survey and Sections 171, 158, 152, 139, 134, 121,
115, 106 and 87, BBB&C RR Co. lands to the place of beginning.
       SECTION 2.04.  (a) Section 1, Chapter 666, Acts of the 64th
Legislature, Regular Session, 1975, is amended to read as follows:
       Sec. 1.  In addition to the boundaries described by Section
1, Chapter 667, Acts of the 64th Legislature, Regular Session,
1975, the boundaries [Pursuant to the provisions of Article IX,
Section 9, of the Texas Constitution, this Act authorizes the
creation, establishment, maintenance, operation, and financing] of
the Higgins-Lipscomb [Higgins] Hospital District [of Lipscomb
County, the boundaries of which] are described as follows[, unless
expansion of the district is authorized under Sections 4A, 4B, and
4C of this Act]:
       "Beginning at the Southeast corner of Lipscomb County on the
State Boundary Line between Texas and Oklahoma;
       Thence West along the South line of Lipscomb County about
12.5 miles to the West line of Section 77, Block 43, H&TC RR Co.
Surveys;
       Thence North along the West line of Sections 77, 100, 165,
188, 253, 276, 341, 364 and 429 in said Block 43, about 9 miles, to
the Northwest corner of said Section 429;
       Thence East along the North line of said Section 429, about
one mile, to the Northeast corner of said Section 429 which is also
the Southwest corner of Section 451 in said Block 43;
       Thence North along the West line of Sections 451, 518, 539,
606, 627 and 694 in said Block 43, about 6 miles, to the Northwest
corner of said Section 694;
       Thence East along the North line of Sections 694, 695, 696,
697, 698, 699, 700, 701, 702, 703 and 704 and an extension of said
line, about 11.5 miles, to its intersection with the East line of
Lipscomb County which is also the State Boundary Line between Texas
and Oklahoma;
       Thence South along said East line of Lipscomb County and said
State Boundary Line, about 15 miles, to PLACE OF BEGINNING."
       (b)  Section 1, Chapter 667, Acts of the 64th Legislature,
Regular Session, 1975, is amended to read as follows:
       Sec. 1.  In addition to the boundaries described by Section
1, Chapter 666, Acts of the 64th Legislature, Regular Session,
1975, the boundaries [Pursuant to the provisions of Article IX,
Section 9, of the Texas Constitution, this Act authorizes the
creation, establishment, maintenance, operation, and financing] of
the Higgins-Lipscomb [Lipscomb] Hospital District [of Lipscomb
County, the boundaries of which] are described as follows:
       Beginning at the intersection of the South line of Lipscomb
County with the West line of Section 67, Block 43, H&TC RR Co.
Surveys;
       Thence North along the West line of Sections 67, 110, 155,
198, 243, 286, 331, 374, 419, 462, 507, 550, 595, 638 and 683 all in
said Block 43, about 15 miles, to the Northwest corner of said
Section 683;
       Thence East along the North line of Sections 683, 684, 685,
686, 687, 688, 689, 690, 691, 692, and 693 all in said Block 43,
about 11 miles, to the Northeast corner of said Section 693;
       Thence South along the East line of Sections 693, 628, 605,
540, 517 and 452 all in said Block 43, about 6 miles, to the
Southeast corner of said Section 452;
       Thence West along the South line of said Section 452, about
one mile, to the Southwest corner of said Section 452 which is also
the Northeast corner of Section 428 in said Block 43;
       Thence South along the East line of Sections 428, 365, 340,
277, 252, 189, 164, 101 and 76 all in said Block 43, about 9 miles,
to the South line of Lipscomb County;
       Thence West along said South line of Lipscomb County, about
10 miles, to PLACE OF BEGINNING.
       SECTION 2.05.  Section 1.03, Chapter 45, Acts of the 71st
Legislature, Regular Session, 1989, is amended to read as follows:
       Sec. 1.03.  The [Except as provided by Section 3.07 of this
Act, the] district is located in Bailey and Parmer counties, and has
the following boundaries:
       BEGINNING at the Northwest corner of Bailey County, Texas,
said point being in the Texas-New Mexico state line:
       THENCE East along the North County Line of Bailey County,
Texas, to a point in the north boundary of Section 18, Block X, W. D. &
F. W. Johnson Subdivision in Bailey and Parmer Counties, Texas,
said point being the southeast corner of the Farwell Hospital
District which is in Parmer County, Texas;
       THENCE North along the east boundary of the Farwell Hospital
District to a point in the east-west centerline of Section 29,
Township 11 South, Range 3 East, Capital Syndicate Subdivision in
Parmer County, Texas;
       THENCE East along the east-west centerlines of Sections 29,
28, 27 and 26, all in Township 11 South, Range 3 East, Capital
Syndicate Subdivision in Parmer County, Texas, to a point in the
East boundary of said Section 26;
       THENCE North along the East boundary of said Section 26 to the
Northwest corner of Section 18, Doud & Keefer Subdivision in Parmer
County, Texas;
       THENCE East along the north boundaries of Sections 18, 17,
16, 15, 14, and 13, Doud & Keefer Subdivision in Parmer County,
Texas, and continuing East along the north boundaries of Sections
69, 70, 71, 72, 73, 74 and 75, Block H, Kelly Subdivision in Parmer
County, Texas, to the East County Line of Parmer County, Texas;
       THENCE South along the East County Line of Parmer County,
Texas, to the Southeast Corner of Parmer County, Texas;
       THENCE West along the South County Line of Parmer County,
Texas, to the Northeast corner of Bailey County, Texas;
       THENCE South on the county line between Bailey and Lamb
Counties, Texas, to the Southeast corner of Labor 23, in League 206,
Ochiltree County School Land;
       THENCE West on the League lines, between Leagues 206 and 207,
of the Ochiltree County School Lands, to the Southwest corner of
Labor 25, League 206, Ochiltree County School Land;
       THENCE jog South to the Northeast corner of Labor 1, of League
203, Roberts County School Lands;
       THENCE West on the League Line of Leagues 204, Ochiltree
County School Lands, and League 203, Roberts County School Lands,
to the Northwest Corner of labor 1, League 203, Roberts County
School Lands;
       THENCE South along the labor lines between Labors 2 and 1, 9
and 10, 12 and 11, 19 and 20, 22 and 21, League 203, Roberts County
School Lands, and continuing South along the Labor lines between
Labors 2 and 1, 9 and 10, 12 and 11, 19 and 20, 22 and 21, League 202,
Roberts County School Lands, to a point in the North line of League
201, Roberts County School Lands, and the Southeast corner of Labor
22, League 202, Roberts County School Lands;
       THENCE West along the South line of League 202, Roberts
County School Land, and the North line of League 201, Roberts County
School Land, and continuing West along the South line of League 192,
Foard County School Land, and the North line of League 193, Foard
County School Land, to the Northeast corner of League 186, and the
Southeast corner of league 187, both of Swisher County School Land;
       THENCE South on the League Line between League 186, Swisher
County School Lands, and League 193, Foard County School Land, and
League Line between League 185, Swisher County School Land, and
League 194, Foard County School Land, and League Line between
League 184, Swisher County School Land, and League 195, Foard
County School Land, to the Southeast Corner of League 184, Swisher
County School Lands, and Southwest Corner of League 195, Foard
County School Lands;
       THENCE West on League lines between Leagues 184, Swisher
County School Land, and League 183, Floyd County School Lands,
League 179, Motley County School Lands, and League 180, Floyd
County School Lands, League 167, Irion County School Lands, and
League 166, Irion County School Lands;
       THENCE due West, across Section 9 in Block F, Leon Blum
Survey;
       THENCE North along the West boundary line of said Block F,
Leon Blum Survey, to the Northeast Corner of Section 26, Block B,
Melvin, Blum and Blum Survey;
       THENCE West on the Section Line between Section 13 and
Section 26, Block B, to the Southwest corner of Section 13, and
Northwest corner of Section 26, all in Block B, aforesaid;
       THENCE North on the Section line between Sections 12 and 13
all in Block B, aforesaid, to the Northwest corner of Section 13,
Block B, aforesaid;
       THENCE East on the Section line between Sections 13, Block B,
aforesaid and Section 146, Block A, Melvin, Blum and Blum Survey, to
the Northeast corner of Section 13, Block B, aforesaid, and
Southeast corner of Section 146, Block A, aforesaid;
       THENCE North on the Block line between Block F and Block A,
Melvin, Blum and Blum Survey, to a point being the Northeast corner
of Section 120, Block A, aforesaid, also being the Southeast corner
of Section 107, Block A, Melvin, Blum and Blum Survey;
       THENCE West along the Section lines, between Sections 107 and
120, 106 and 119, 105 and 118, 104 and 117, 103 and 116, 102 and 115,
101 and 114, 100 and 113, 99 and 112;
       THENCE continuing directly West to the Texas-New Mexico State
Line to a Point;
       THENCE North along and on said Texas-New Mexico state Line,
to the Northwest corner of Bailey County, Texas, this being the
Place of Beginning.
       SECTION 2.06.  Section 1, Chapter 55, Acts of the 40th
Legislature, 1st Called Session, 1927, is amended to read as
follows:
       Sec. 1.  [That Brazos River Harbor Navigation District of
Brazoria County, in Brazoria County, Texas, as hereinafter
described by metes and bounds, is hereby created and established
under authority of Section 59, Article 16 of the Constitution of
Texas for the purpose of making improvements for the navigation of
inland and coastal waters, and for the preservation and
conservation of inland and coastal waters for navigation and for
control and distribution of storm and flood waters of rivers and
streams in aid of navigation; that all property, real and personal,
situated within said District and subject to taxation will be
benefited by the improvements to be constructed by said District;
and all orders of the Commissioners' Court of Brazoria County
heretofore made in respect to the creation of such district and the
authorization and issuance of $1,000,000 Bonds of such navigation
district be and the same are hereby in all things ratified and
validated. Said] Brazos River Harbor Navigation District of
Brazoria County is described by metes and bounds [bouonds] as
follows, to wit:
       Beginning at the Southwest corner of Brazoria County, being
also the Southeast corner of Matagorda County, at the entrance of
Cedar Lake into the Gulf of Mexico; thence with the line between
Brazoria and Matagorda counties up said Cedar Lake to the upper line
of the league of land granted to C. Harrison; thence Northwest with
the line between Brazoria and Matagorda Counties to Lynville Bayou;
thence up said Lynville Bayou and following the line between
Brazoria and Matagorda Counties to the Western corner of the C.
Garrett League, being a common corner of Brazoria, Matagorda and
Wharton Counties; thence along the upper line of said Garrett
league with the line between Brazoria and Wharton Counties to the
San Bernard River; thence up said river to the west corner of the
league of land on the East bank of said river granted to Wm. Prater;
thence with the line between Brazoria and Fort Bend Counties along
the upper line of said league to its North corner; thence southeast
along the northeast line of said league, following the line between
Brazoria and Fort Bend Counties, to the most westerly corner of the
league of land granted to A. Darst; thence northeast along the upper
line of said league, following the line between Brazoria and Fort
Bend Counties, to the North corner of said A. Darst League; thence
east in a direct line, following the line between Brazoria and Fort
Bend Counties, to the south prong of Cow Creek, and thence down said
Creek, following the line between Brazoria and Fort Bend Counties,
to its mouth, the confluence with the Brazos River; thence West
crossing the Brozas River to its East Bank; thence up the East bank
of said Brazos River to the Northwest corner of the league of land
granted to Francis Bingham; thence East along the North line of said
Bingham league to its northeast corner, and continuing East along
the North lines of Lavaca Navigation Company survey No. 1 and H. T. &
B. R. R. Co. Surveys Nos. 51, 52, 53 and 54 to the Southwest line
of the Oliver Hall Survey; thence Southeast along the Southwest
line of said Oliver Hall Survey to its Southern Corner; thence
Northeast along the Southeast line of said Oliver Hall Survey to the
West bank of Chocolate Bayou; thence down the Western Bank of
Chocolate Bayou with its meanders to the entrance of said Bayou into
Chocolate Bay; thence along the western shore of Chocolate Bay and
West Bay to San Luis Pass at the Gulf of Mexico; and thence
southwesterly along the shore of the Gulf of Mexico to the place of
beginning.
       SECTION 2.07.  Section 4a, Chapter 55, Acts of the 40th
Legislature, 1st Called Session, 1927, is amended to read as
follows:
       Sec. 4a.  The boundaries of the navigation precincts for [On
and after January 1, 1961,] the [governing body of] Brazos River
Harbor Navigation District of Brazoria County are [shall be
composed of six Navigation and Canal Commissioners. For the
purpose of electing Navigation and Canal Commissioners, said
District is hereby divided into four Navigation Precincts] as
follows:
       Navigation Precinct No. 1 shall contain that part of said
District described by metes and bounds as follows:
       BEGINNING on the East Bank of the San Bernard River near its
mouth at the northwest corner of the S. F. Austin Labor, Abstract
No. 34, also being the common line of Commissioners Precinct 1 and 4
of Brazoria County, Texas;
       THENCE, in a northerly direction along said common line of
said Commissioners Precinct 1 and 4 to its intersection with the
common line between the Retrieve State Prison Farm and the old Lake
Jackson Plantation;
       THENCE, along said common line in an easterly direction to
its intersection with Oyster Creek;
       THENCE, down center line of said Oyster Creek in a
southeasterly direction with its meanders to its intersection with
the east line of said Retrieve State Prison Farm;
       THENCE, north along the common line between said Prison Farm
and a 450 acre tract No. 78 to the northwest corner of said tract No.
78;
       THENCE, east along the north line of tracts No. 78 and 77 to
the northeast corner of the 450 acre tract No. 77;
       THENCE, south along the east line of said tract No. 77 to its
intersection with Bastrop Bayou;
       THENCE, down said Bayou in an easterly direction to its
intersection with the common line between a 400 acre tract No. 99A
and a 902 acre tract No. 101;
       THENCE, following said common line east to its intersection
with the center line of the Clute-Angleton County Road No. 288;
       THENCE, along the center line of said Clute-Angleton County
Road No. 288 in a southerly direction to its intersection with
Bastrop Bayou;
       THENCE, following the northeast bank of Bastrop Bayou to the
point of intersection of Austin and Bastrop Bayou, same point being
also the intersection of Commissioners Precinct 1 and 3 of Brazoria
County, Texas;
       THENCE, down Bastrop Bayou in an easterly direction following
the common boundary of County Commissioners Precinct 1 and 3 to a
point of intersection of the common line of County Commissioners
Precinct 1 and 3 with Galveston County;
       THENCE, in a southeasterly direction following the common
boundary of Brazoria and Galveston County to the Gulf of Mexico;
       THENCE, in a southwesterly direction along the shoreline of
the Gulf of Mexico to the mouth of the San Bernard River;
       THENCE, up the East Bank of the San Bernard River to the place
of beginning being the northwest corner of the S. F. Austin Labor,
Abstract No. 34, and also being the point of intersection of the
common boundary line of Commissioners Precincts 1 and 4 of Brazoria
County, Texas.
       Navigation Precinct No. 2 shall include all the territory in
Brazoria County Commissioners Precinct No. 2 as such precinct is
now established.
       Navigation Precinct No. 3 shall include all the territory in
Brazoria County Commissioners Precinct No. 4 as such precinct is
now established.
       Navigation Precinct No. 4 shall include the remaining
territory situated within said District other than that contained
in said Navigation Precincts Nos. 1, 2 and 3.
       [There shall be six positions or offices of Navigation and
Canal Commissioner, numbered from 1 to 6, respectively, as follows:
One commissioner (Position 1) shall be at large and shall be a
qualified resident voter of the Navigation District.  He shall hold
his office for a term of two years.  Two commissioners (Positions 2
and 3) shall be qualified voters and residents of Navigation
Precinct No. 1 and shall hold office for terms of two and four
years, respectively.  One commissioner (Position 4) shall be a
qualified voter and resident of Navigation Precinct No. 2 and shall
hold office for a term of six years.  One commissioner (Position 5)
shall be a qualified voter and resident of Navigation Precinct No. 3
and shall hold office for a term of four years. One commissioner
(Position 6) shall be a qualified voter and resident of Navigation
Precinct No. 4 and shall hold office for a term of six years.
       [An election shall be held in said District on the first
Tuesday after the first Monday in November, A. D. 1960, to elect
four commissioners who, together with the two existing Navigation
and Canal Commissioners whose terms have not expired, shall
constitute the governing body of the District. The person
heretofore elected as Navigation and Canal Commissioner with term
of office expiring in 1961 shall hold Position No. 2 on the
six-member Commission with a two-year term of office and the person
heretofore elected as Navigation and Canal Commissioner with a term
of office expiring in 1963 shall hold Position No. 5 on said
six-member Commission with a term of office of four years.
       [An election shall be held in said District every two years in
accordance with Chapter 41, Election Code, for the purpose of
electing two commissioners who shall hold their offices for a term
of six years.  Any candidate offering himself for a position as
commissioner shall, in filing as a candidate, indicate the number
of the position for which he is a candidate.
       [Requests for placing the name of a candidate on the ballot
shall be filed with the chairman of the governing body of the
District, shall be in writing and signed by the candidate or shall
be in the form of a petition signed by not less than twenty-five
qualified voters of the District.  The filing period for a request
for placing the name of a candidate on the ballot is governed by
Chapter 144, Election Code.
       [Arrangements for each election shall be made by the
governing body and notice of the election, signed by the chairman or
secretary of the governing body, shall be published once a week for
two consecutive weeks in a newspaper of general circulation within
the District, the first publication to be not less than fourteen
days prior to the election.
       [The governing body shall canvass the returns and declare the
results of each election, and the candidate receiving the highest
number of votes for each position shall be elected, and shall take
office on the appropriate date, next succeeding his election. All
qualified voters throughout said Navigation District shall be
permitted to vote on all candidates running for commissioner in all
Navigation Precincts.
       [Each commissioner shall qualify by taking the
constitutional oath of office and by making an official bond in the
sum of Ten Thousand Dollars ($10,000.00) executed by himself and by
two solvent sureties or by a surety company authorized to do
business in the State of Texas and such bond shall be approved by
the County Judge of Brazoria County. Except as otherwise provided
herein, all vacancies in the office of Navigation and Canal
Commissioners for this District shall be filled by appointment by
the Board itself for the unexpired term. In the event that more than
two vacancies occur at the same time, the remaining Navigation and
Canal Commissioners shall call a special election to fill such
vacancies, and if they fail to do so within fifteen days after such
vacancies occur, the judge or judges of the district court or courts
of the judicial district in which such Navigation District lies,
upon the petition of any voter or creditor thereof, may order the
holding of such election, fixing the date thereof and order the
publication of notice of such election by the county clerk of the
county, and name the officers to hold the election. In any such
election held by order of the district judge or judges, the returns
of the election shall be made and filed in the office of the clerk of
the district court and he shall declare the result thereof.]
       SECTION 2.08.  Section 57(a), Chapter 8, Acts of the 67th
Legislature, 1st Called Session, 1981, is amended to read as
follows:
       (a)  The management and control of the Brazoria County
Drainage Districts Nos. 4[, 5, 8,] and 11 are hereby vested in the
boards of directors of those districts.  In this section,
"district" means the Brazoria County Drainage Districts Nos. 4[, 5,
8,] and 11.
       SECTION 2.09.  Section 1, Chapter 166, Acts of the 41st
Legislature, Regular Session, 1929, is amended to read as follows:
       Sec. 1.  The boundaries of [That] Willacy County Water
Control and Improvement District Number One[, embracing lands in
the Counties of Willacy and Hidalgo, in the State of Texas, is
hereby created and established as a conservation and reclamation
district, and which district shall have such powers of government
and the authority to exercise such rights, privileges and functions
as are conferred by Article 16, Section 59 of the Constitution of
the State of Texas, and provisions of Chapter 25, of the General
laws passed by the Thirty-ninth Legislature, at its Regular Session
in 1925, as amended by Chapter 107, of the General Laws passed by
the Fortieth Legislature, at its First Called Session in 1927, as
such general laws now exist or may be hereafter amended, except as
herein otherwise provided; and the boundary lines of such district]
shall be as follows:
       Beginning at the southwest corner of Lot 13, Block 87, Turner
tract, a subdivision of Share 24, San Juan De Carricitos Grant in
Hidalgo County, Texas;
       Thence east with the south boundary lines of Blocks 87, 86, 85
and 84, said Turner Tract at 15700 ft. the S.E. corner Lot 13, Block
84, The Turner Tract and the S.W. corner Lot 13, Block 39, Jose
Tract No. 5, continue with the south boundary line of Blocks 39 and
38 said Jose Tract, continue with the south line of Blocks 4, 3, 2
and 1, Lyford Tract No. 2 to S. E. corner of Block 1, a point in west
line Share 44, in all 45950 feet;
       Thence South with the West line of Share 44, 34990 ft. to the
Willacy-Cameron County line;
       Thence in a southeasterly direction with said
Willacy-Cameron County Line 20100 ft. to the most southerly S.E.
corner of Share 44, the S. W. corner of Share 2 of said Carricitos
Grant;
       Thence north with the east line of Share 44 and the west line
of Share 2, 11700 ft. to the N.W. corner of said Share 2;
       Thence east with the north line of Share 2, 4600 ft. to a S.E.
corner of Share 44, the S.W. corner of Block 5, of the Los Coyotes
Ranch Subdivision;
       Thence north with the east line of Share 44 and the west line
of the Los Coyotes Subdivision 16000 ft. to the N.W. corner of said
Los Coyotes Ranch Subdivision;
       Thence east with the north line of the Los Coyotes Ranch Sub
3300 feet to a S.E. corner of Share 44, the S.W. corner of Share 14;
       Thence north with the east line of Share 44 and the west line
of Share 14, 8500 ft. the N.W. corner of Share 14;
       Thence east with the north line of Share 14, the south line of
Share 45, 14900 ft to the S.E. corner of said Share 45, a point in
the west line of Share 34;
       Thence south with the west line of Share 34, 750 ft to the S.W
corner of same an inner corner of Share 14;
       Thence east with the north line of Share 14, and the south
line of Share 34, at 12300 ft. pass the N.E. corner of said Share 14,
in all 17650 ft to the S.E. corner of Lot 8, Share 34;
       Thence north with the east line of said Lot 8, 3200 ft. to the
N.E. corner of same;
       Thence west with the north line of Lots 8 and 7, Share 34,
5350 ft. to a point in the east line of Share 34, a S. W. corner of
Share 64;
       Thence north with the east line of Share 34, and 61, 17200 ft.
to the N. E. corner of Share 61;
       Thence west with the south line of Share 16, 2640 ft. to the
S. E. corner of Lot 21, Share 16;
       Thence north with the east line of Lot 21, Share 16, 2900 ft.
to the N.E. corner of same;
       Thence west with the north line of Lot 21, 22 and 23, Share
16, 4300 ft. to the N. W. corner of said lot 23;
       Thence south with the west line of lot 23, Share 16, 2900 ft
to the S. W. corner of same;
       Thence west with the south line of Share 16 and the South line
of the Gulf Coast Subdivision, 7000 ft to the N W corner of Lot 4 B1k
2 of the E F Hubmer Subdivision;
       Thence south with the west line of lots 4, 5, 12 and 13, Blk 2
of Hubmer's Subdivision 5280 ft to the S. W corner of said lot 13;
       Thence East with the South line of said Lot 13, Blk 2, 1320 ft
to the S. E. corner of same;
       Thence South with the West line of Lots 3 and 6, Blk 3,
Hubmer's Subdivision 2640 ft to the S W corner of said Lot 6;
       Thence East with the South line of Lot 6, Blk 3, 1320 ft to the
S E corner of same;
       Thence South with the West line of Lot 10 Blk 3, 1320 ft to the
S. W. corner of same;
       Thence west with the north line of lots 14 and 13 Blk 3, 2640
ft to the N W corner of said Lot 13;
       Thence South with the West line of said Lot 13, BLk 3, 800 ft
to the S W Corner of same;
       Thence West with the South line of Share 64, the North line of
Share 45, 6500 ft to the S E corner of Lot 20 of the Harding Gill
Subdivision of Share 64;
       Thence North with the East line of said Subdivision 10,000 ft
to the N E corner of same;
       Thence West with the North line of said Subdivision and the
North line of the Beise Tract 6660 ft to the N W corner of said Beise
Tract;
       Thence South with the West line of the Beise Tract, and the
West line of Share 45, 14700 ft to the N E. corner of Share 44;
       Thence West with the North line of Share 44, 21850 ft to the S
E corner of the Raymond Hallam Subdivision;
       Thence North with the East boundary line of said subdivision
7250 ft to its N E corner;
       Thence West with the North boundary line of the Raymond
Hallam Subdivision 11250 ft to the East right-of-way of the St. L.
and B. M. Railroad Co;
       Thence in a Northerly direction with the East line of said
right-of-way 7325 ft more or less to the South boundary line of
Rodriguez Ave;
       Thence West with the South boundary line of Rodriguez Ave
2540 ft more or less to the West boundary line of First St.;
       Thence North with the East line of Farm Lot J. G. and B, 2620
ft to a point in the East line of said Lot B;
       Thence East crossing First St and continuing with the South
Boundary line of lots C, D and E 4000 ft to the N W corner of Farm Lot
F, Town of Raymondville;
       Thence South with the West Boundary line of Farm Lot F, 1860
ft to the center of Hidalgo Ave;
       Thence East with the center of Hidalgo Ave 3280 ft to the N.
W. corner of Lot 3, E. B. Raymond Tract;
       Thence South with the West boundary line lot 3, 1320 ft to its
S. W. corner;
       Thence East with the South line of Lot 3, 1320 ft to its S.E.
corner;
       Thence south with the west line of Lot 5, 1320 ft, to its S.W.
corner;
       Thence east with the south line of Lot 5, 1320 ft. to its S. E.
corner;
       Thence north with the east line of Lots 5 and 2, 2640 ft to
center of Hidalgo Road;
       Thence West with the north line of Lot 2, 1320 ft. to its N. W.
corner;
       Thence north with the east line of Lot 13, Block 47, Gulf
Coast Subdivision 1320 ft to its N. E. corner;
       Thence East with the south line of Lots 11, 10 and 9, Block
47, 3960 ft. to the S E corner of Lot 9;
       Thence south with the west line of Lot 13, Block 48, 1320 ft.
to its S. W. corner;
       Thence East with the South line of Lots 13 and 14, Block 48,
2640 ft to the S E. corner of said Lot 14;
       Thence north with the East line of Lot 14 and 11, Block 48,
2640 ft to the N E Corner of Lot 11;
       Thence west with the north line of Lots 11 and 12; Block 48,
2640 ft to the N W corner of said Lot 12;
       Thence north with the east line of Lot 8, Block 47, 1320 ft to
its N E corner;
       Thence east with the south line of Lots 4 and 3, Block 48,
2640 ft to the S E corner of said Lot 3;
       Thence south with the west line of Lot 7, Block 48, 1320 ft to
the S W corner;
       Thence East with the South line of Lot 7, Block 48, 1320 ft to
the S E corner of same;
       Thence South with the west line of Lots 9 and 16, Block 48,
2640 ft to the S W corner of Lot 16;
       Thence East with the South line of Lot 16, Block 48 and the
south line of Lots 13 and 14, Block 49, 3960 ft to the S. E. corner
of said Lot 14;
       Thence north with the east line of Lot 14, Block 49, 1320 ft
to its N E corner;
       Thence East with the south line of Lots 10 and 9, Block 49,
2640 ft to the S. E. corner of said Lot 9:
       Thence south with the west line of Lot 13, Block 50 1320 ft to
the S W corner of said Lot 13;
       Thence east with the south line of Block 50, and Lots 13 and
14, Block 51, 7920 ft to the S E corner of said Lot 14;
       Thence north with the east line of Lots 14, 11, 6 and 3, Block
51, and east line of Lots 14, 11, Block 60, 7920 ft. to the N E
corner of said Lot 11;
       Thence west with the south line of Lots 6, 5, Block 60, and
Lot 8, Block 61, 3960 ft to the S W corner of said Lot 8;
       Thence north with the east line of Lots 7 and 2, Block 61,
2640 ft. to the N E. corner of said Lot 2;
       Thence west with the north line of Lots 2, 3 and 4, Block 61,
and north line Blocks 62 and 63 and north line of Lots 1 and 2, Block
64, 16600 ft. to the N. W. corner of said Lot 2;
       Thence north with the west line of Lot 7, Block 67, 350 ft. to
the S. E. corner of Lot 15, Subdivision of the El Chapote Tract;
       Thence west with the south line of Lots 15, 14, 13, 12 and 11,
of the El Chapote Subdivision, 6250 ft. to the east right of way
line of St. L. B. and M. R. R.;
       Thence in a northeasterly direction with said right-of-way
line 2700 ft. to the S. W. corner of Lot 41, the El Chapote
Subdivision;
       Thence east with the south line of Lots 41 and 42, 2750 ft. to
the S. E. corner of said Lot 42;
       Thence north with the east line of Lots 42 and 49, E1 Chapote
Tract 2640 ft. to the N. E. corner of said Lot 49;
       Thence west with the north line of Lots 49, 50, 51 and 52, El
Chapote Tract 4650 ft. to the N. W. corner of said Lot 52;
       Thence north with the east line of Lot 1, Block 68, El Chapote
Tract 750 ft. to the N. E. corner of said Lot 1, the S. E. corner of
Share 29 of the San Juan De Carricitos Grant;
       Thence west with north boundary line of Chapote League 4150
ft. to the S. W. corner of Share 29;
       Thence north with west line of Share 29 the east line of Lots
8 and 1, Block 19, Harding Lindahl Gill Subdivision, 2640 ft. to the
N. E. corner of said Lot 1;
       Thence west with the north line of Harding Lindahl Gill
Subdivision 18700 ft. to the N. W. corner of said subdivision;
       Thence South with the west line of said Subdivision and west
line of Lot 2, Block 23, Harding Lindahl Subdivision 3940 ft. to an
inner corner in said Lot 2;
       Thence west with north boundary line of Lots 2, 3, 4, Block
23, 2275 feet to the most westerly N. W. corner of said Subdivision;
       Thence south with west boundary line said Subdivision 10500
feet to a point in the west boundary line of Lot 4, Block 29, said
Subdivision the N. E. corner of Lot 1, Block 1, Narcisso Tract No.
4, Subdivision;
       Thence west with north boundary line said Narcisso Tract No.
4, 5700 ft. to its N. W. Corner;
       Thence south with west boundary line of Narcisso No. 4, 4750
ft. to intersection with north boundary line San Martin Ranch
Subdivision;
       Thence westerly 7100 ft. more or less to a point in the east
line of the Teniente League which point is the S. E. corner of Lot 1,
Block 4, of the S. D. Reynold Subdivision of said Teniente League;
       Thence in a northeasterly direction with the east line of the
said Teniente League 12000 ft. more or less to its N. E. corner;
       Thence in a westerly direction with the north line of the
Teniente League 15500 ft. more or less to its N. W. corner a point in
the east line of the Stoddard Development Company's Subdivision;
       Thence in a northerly direction with the east line of said
Subdivision 3100 ft. more or less to the N. E. corner of same;
       Thence in a westerly direction with the north line of
Stoddard Development Company Subdivision 15200 ft. more or less to
the N. W. corner of same;
       Thence in a southerly direction with the west boundary line
of the Stoddard Development Company's Subdivision 16300 ft. to the
S. W. corner of same; in the north boundary line of the Missouri
Texas Land and Irrigation Company's Subdivision;
       Thence in a westerly direction with the north boundary line
of said M. T. L. & I. Co., Subdivision 18600 ft. to the N. W. corner
of same;
       Thence in a southerly direction with the west boundary line
of said Subdivision and the Los Mestenas Grant 10560 ft. to the S.
W. corner of Lot 16, Block 10, of the M. T. L. and I. Co.
Subdivision;
       Thence in an easterly direction with the south boundary line
of Block 10, 11, and Lots 13, 14, of Block 12, 9240 ft. to the S. E.
corner of said Lot 14;
       Thence in a northerly direction with the east line of Lots 14
and 11, Block 12, 2640 ft. to the N. E. corner of said Lot 11;
       Thence in an easterly direction with the south line of Lots 7
and 8, Block 12, 2640 ft. to the S. E. corner of said Lot 8;
       Thence in a southerly direction with the west line of Lots 12
and 13, Block 13, and Lots 4 and 5, Block 26, 5280 ft. to the S. W.
corner of said Lot 5;
       Thence in a westerly direction with the north line of Lots 9,
10 and 11, Block 27, 4650 ft. to the N. W. corner of Lot 11;
       Thence in a southerly direction with the west line of Lots 11
and 14, Block 27, and Lot 2, Block 28, 3300 ft. to the S. W. corner
of said Lot 2;
       Thence in an easterly direction with the south line of said
lot 2, 2000 ft. to the S. E. corner of same;
       Thence in a southerly direction with the west line of Lots 7
and 10, Block 5, 2436 ft. to a point in the west line of said Lot 10,
being 660 ft. south of its N. W. corner;
       Thence in an easterly direction parallel to the north line of
Lots 10 and 12, Block 5, 2275 ft.;
       Thence in a southerly direction parallel to the east line of
Lot 12, Block 29, 660 ft. to a point in the north line of Lot 13,
Block 29;
       Thence in westerly direction with the north line of Lot 13,
Block 29, 900 ft. to the N. W. corner of said Lot 13;
       Thence in a southerly direction with the west line of said Lot
13, Block 29, and the west line Blks. 42 and 43, 8600 ft. to  the S.
W. Corner of Block 43;
       Thence in an easterly direction with the south line of Block
43 and the south line of Lot 5, Block 44, 6700 ft. to an inner corner
of said Lot 5;
       Thence in a southerly direction with the west line of Blocks
44, 55, and 56 and continuing to an inner corner of Lot 4, Block 67,
in all 13750 feet;
       Thence in a westerly direction with the north line of Lot 4,
Block 67 and the north line if Block 68, 5900 ft. to the N. W. corner
of said Block 68;
       Thence in a southerly direction with the west line of Block
68, 5280 ft. to the S. W. corner of same;
       Thence in a westerly direction with the north line of Block
74, and the N. Line of Lots 1 and 2, Block 73, 7920 ft. to the N. W.
corner of said Lot 2;
       Thence in a southerly direction with the west line of Lots 2,
7, 10 and 15, Block 73, 5280 ft. to the S. W. corner of said Lot 15;
       Thence in a westerly direction with the north line of Lots 3
and 4, Block 90 and the north line of Lot 1, Block 91, 4150 ft. to
the N. W. corner of said Lot 1;
       Thence in a southerly direction with the west line of Blocks
91 and 92, 11100 ft. to the S. W. corner of said Block 92;
       Thence in an easterly direction with the south line of Blocks
92, 93 and Lots 13 and 14, Block 94, 9240 ft. to the S. E. corner of
said Lot 14;
       Thence in a northerly direction with the east line of Lot 14,
11, 6 and 3, Block 94, 5820 ft. to the N. E. corner of said Lot 3;
       Thence in an easterly direction with the south line of Lots 15
and 16, Block 89, 2640 ft. to the S. E. corner of said Lot 16;
       Thence in a northerly direction with the east line of Lots 16,
9, 8 and 1, of Block 89, 5280 ft. to the N. E. corner of said Lot 1;
       Thence in an easterly direction with the south line of Lots 13
and 14, Block 75, 2640 ft. to the S. E. corner of said Lot 14;
       Thence in a northerly direction with the east line of Lots 14,
11, 6 and 3, Block 75, 5280 ft. to the N. E. corner of said Lot 3;
       Thence in an easterly direction with the south line of Lots 15
and 16, Block 68, and the south line of Blocks 67, 66, 65 and 64,
23760 ft. to the S. E. corner of said Block 64;
       Thence in a northerly direction with the east line of Lot 16,
Block 64, 1320 ft. to the N. E. corner of same;
       Thence in an easterly direction with the south line of Lots 12
and 11, Block 63, 2640 ft. to the S. E. corner of said Lot 11;
       Thence in a southerly direction with the west line of Lots 15,
Block 63, 1320 ft. to the S. W. corner of said Lot 15;
       Thence in an easterly direction with the south line of Lots 15
and 16, Block 63, 2640 ft. to the S. E. corner of said Lot 16;
       Thence in a southerly direction with the west line of Block
81, 5280 ft. to the S. W. corner of same;
       Thence in a westerly direction with the north line of Block
83, 5280 ft. to the N. W. corner of same;
       Thence in a southerly direction with the west line of Block
83, 5280 ft. to the S. W. corner of same;
       Thence in a westerly direction with the north line of Block
99, 5280 ft. to the N. W. corner of same;
       Thence in a southerly direction with the west line of Lot 4,
Block 99, 1320 ft. to the S. W. corner of same;
       Thence in an easterly direction with the south line of Lot 4,
Block 99, 1320 ft. to the S. E. corner of same;
       Thence in a southerly direction with the west line of Lots 6
and 11, Block 99, 3150 ft. to the S. W. corner of said Lot 11; the
center line of Mile 18 Road;
       Thence in an easterly direction with the south line of the
Mestenas Grant the center line of said Mile 18 Road 20100 ft. to the
center line of Base Line Road;
       Thence north with the center line of Base Line Road 2500 ft.
to the S. E. corner of Lot 8, Block 120, of the Barr Subdivision of
the Ojo de Agua Grant;
       Thence east 4700 ft. to the most westerly S. E. corner of the
Durazno Ranch;
       Thence North 800 ft;
       Thence East 250 ft;
       Thence north 3300 ft;
       Thence east 3160 ft;
       Thence south 4500 ft. to the S. W. corner Lot 11, Block 118,
of Barr Subdivision;
       Thence East 8650 ft. along south line of Barr Subdivision to
the S. E. corner of Lot 9, Block 117 Subdivision;
       Thence North 10350 ft. to the N. E. corner of Lot 9, Block 109
of Barr Subdivision;
       Thence westerly along the north boundary line of said Barr
Subdivision 20000 ft to the N. W. corner of the Barr Subdivision the
S. W. corner of the Turner Tract;
       Thence northerly along the west line of said Turner tract
26600 ft. to the S. W. corner of Lot 13, Block 87, Turner Tract a
Subdivision of the San Juan De Carricitos Grant, the place of
beginning;
       Provided, however, that there is excepted from the above, and
here and now excluded therefrom and as forming no part of said
Irrigation District or proposed inclusion into said Irrigation
District the following lands in Hidalgo County, Texas, and out of
the Los Mestenas Grant;
    Lot 3, Block 3 40 Acres    
    Lot 8, Block 4 40 Acres    
    Lots 3, 4, 5 and 6, Block 5 160 Acres    
    Lot 4, Block 8 40 Acres    
    Lots 1 and 8, Block 15 80 Acres    
    Lots 5, 9, 10, 11, 12, 13, 14 and
    15, Block 16 320 Acres    
    Lots 2, 4, 5, 9, 10, 11, 12, 13 and
    and 14, Block 22 360 Acres    
    Lots 1, 7, 8, 9 and 10, Block 23 200 Acres    
    Lots 5 and 6, Block 24 80 Acres    
    Lots 1, 2, 7 and 8, Block 25 160 Acres    
    Lots 9, 10, 11 and 15, Block 30 160 Acres    
    Lots 9, 10, 15 and 16, Block 31 160 Acres    
    Lot 12 and 13, Block 32 80 Acres    
    Lots 1, 2, 7, 8, 9, 10, 11, 14, 15
    and 16, Block 44 453 Acres    
    Lots 1, 2, 7 and 8, Block 51 160 Acres    
    Lots 11, 12, 13 and 14, Block 49 160 Acres    
    Lots 3, 4, 5 and 6, Block 50 160 Acres    
    10 Acres of Lot 1, West of R. R.
    all of Lot 2, Block 54 50 Acres    
       In the Town of Lasara the following described lands are also
to be excluded:
   Blocks  19 to  24, inclusive;
   Blocks  33 to  38, inclusive;
   Blocks  47 to  52, inclusive;
   Blocks  61 to  66, inclusive;
   Blocks  74 to  80, inclusive;
   Blocks  89 to  95, inclusive;
   Blocks 103 to 108, inclusive;
       In the Town of Rollo the following described lands are also to
be excluded:
   Blocks  1 to  4, inclusive;
   Blocks  8 to  49, inclusive;
       In the town of Hargill the following lands are also to be
excluded:
   Blocks   6, 36 to 41, inclusive;
   Blocks  50 to  55, inclusive;
   Blocks  64 to  69, inclusive;
   Blocks  78 to  83, inclusive;
   Blocks  92 to  97, inclusive;
   Blocks 106 to 111, inclusive;
   Blocks 120 to 125, inclusive;
   Blocks 132 to 137, inclusive.
       And, further provided, that there is excepted from the above
here and now excluded therefrom and as forming no part of said
Irrigation District or proposed inclusion into said Irrigation
District the following described lands in Willacy County, Texas,
and out of the town of Willamar, Blocks 11 to 19, inclusive, Blocks
23, 25, 26.
       And further provided, that there is excepted from the above
and here and now excluded therefrom and as forming no part of said
Irrigation District the following described lands in Willacy
County, Texas.
       Out of the Gulf Coast Subdivision of the Raymondville Tract:
       Lots 6, 11 and 15, Block 62, containing 120 acres of land;
       Lots 7, 8, 9, 10, 13 and 14, Block 64, containing 240 acres of
land;
       Lot 9, Block 65, containing 30.3 acres of land;
       Sub Lots 1, 2, 5, 6, 7 and 8, of Lot 3 and Lot 4, and the West
15 acres of Lot 5, Block 46, containing 77.2 acres of land;
OUT OF THE RAYMOND HALLAM SUBDIVISION.
Lots 5 and 6, of Block 1, and Lots 5, Block 2, containing 112 acres
of land;
North one-half of Lot 1 and all of Lot 6, in Block 3, containing 60
acres of land;
Lot 4, Block 4, containing 40 acres of land;
OUT OF THE HARDING LINDAHL SUBDIVISION OF SHARE 1.
Lots 11, 12, 13 and 14, Block 25, containing 160 acres of land;
Lots 9, 10, 15 and 16, Block 26, containing 160 acres of land;
Lots 1, 2, 3, 4, 5 and 6, Block 30, containing 240 acres of land;
Lots 1, 2, 7, 8 and N. one-half of Lot 9, Block 31 containing 180
acres of land.
OUT OF NARCISSO TRACT NO. 4.
Lots 7 8, 10, 11, 12, 13, 14 and 15, Block 10;
Lots 1, 2, 7 and 8, Block 5;
Lots 1, 2, 3 and 4, Block 9;
OUT OF THE RAYMONDVILLE TRACT NO. 1.
Lots 4 and 5, of Block 4, containing 65 acres of land;
Lots 11, 13 and 14, Block 6, containing 120 acres of land;
Lots 7, 9, 10, 11 and 12, Block 7, containing 144.8 acres of land;
Lots 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10, south one-half of 14 and all of
15, Block 9, containing 460 acres of land;
OUT OF THE TOWN OF RAYMONDVILLE.
Lots 1 to 12, inclusive, in Block 56;
Lots 1 to 6, inclusive, east one-half of 9, all of 10 and 11, in
Block 58;
Lots 18 to 26, inclusive, in Block 72;
Lots 17 to 22, inclusive, Block 64; and 100 ft. by 150 ft. out of the
N. E. corner of Lot 1, Block N. owned by Dr. McCann.
OUT OF FARM LOT J TOWN OF RAYMONDVILLE.
The west 500 ft. of Lot 1 and 79 ft. By 375 ft. out of the N. E.
corner of Lot 3, being the property owned by E. H. Whitney, both
tracts being out of Farm Lot J. containing 3 acres of land.
OUT OF LYFORD TRACT NO. 2.
Lots 15 and 16, Block 3;
Lots 2 and 5, Block 1;
Lots 4, 5, 10, 11 and 12, in Block 4.
OUT OF JOSE TRACT NO. 5.
Lots 1, 2, 3, 6, 7 and 8, Block 39;
Lots 1, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12; 13; 14; 15 and 16; Block 38.
       SECTION 2.10.  Section 1, Chapter 306, Acts of the 45th
Legislature, Regular Session, 1937, is amended to read as follows:
       Sec. 1.  The boundaries of [That] Dallas County Levee
Improvement District Number Fourteen[, composed of territory lying
in Dallas County, Texas, is hereby created and established as a
Conservation and Reclamation District, and which District shall
have such powers of government and the authority to exercise such
rights, privileges, and functions as are conferred by Article 16,
Section 59, of the Constitution of the State of Texas, and
provisions of Chapter 21, of the General Laws passed by the
Thirty-ninth Legislature of the State of Texas, at is Regular
Session in 1925, as such General Laws now exist, or may be hereafter
amended, except as herein otherwise provided; and the boundary
lines of such District] shall be as follows:
FIELD NOTES OF DALLAS COUNTY LEVEE IMPROVEMENT DISTRICT NO. 14,
(PROPOSED, 2/15/1937)
       BEGINNING at the Southeast corner of Dallas County Levee
Improvement District No. 2 as REVISED on February 15, 1937, a stake
on the West bank of the Trinity River;
       THENCE S. 81 W. with the channel of Ten Mile Creek 9800 feet;
       THENCE, S. 74-3/4 W. with said channel 1030 feet to the
Southwest corner of said Dallas County Levee Improvement District
No. 2 as Revised;
       THENCE along the hill line as follows:
       S. 3-1/4 W. 56 feet;
       S. 2-3/4 E. 2757 feet;
       S. 37 E. 1936 feet;
       S. 17-1/2 E. 1133 feet;
       S. 51-1/2 E. 707 feet;
       S. 71 E. 498 feet;
       S. 9-3/4 E. 984 feet stake in the South line of Dallas County
and the North line of Ellis County;
       THENCE East with the South line of said Dallas County and the
North line of said Ellis County 16,330 feet, more or less, to the
West bank of the Trinity River;
       THENCE up said River with its meanders to the place of
beginning, containing 2710 acres of land, more or less.
       The above field notes are made and verified from the records
of Dallas County, Texas, in conjunction with a survey of the line
described as being in Ten Mile Creek Channel.
FIELD NOTES OF DALLAS COUNTY LEVEE IMPROVEMENT DISTRICT NO. 2.  
(REVISED—2/15/1937)
       BEGINNING at a stake on the West bank of the Trinity River at
the Southeast corner of Dallas County Levee Improvement District
No. 1;
       THENCE S. 60 W. with the south line of said District No. 1, a
distance of 4926 feet to the southwest corner a tract of land
formerly owned by W. H. Hilton and now owned by Bluebird Farms Co.;
       THENCE N. 30 W. 818 feet to S. E. corner of a tract of land
formerly owned by G. W. Pierce and now owned by Bluebird Farms Co.;
       THENCE S. 60 W. with the south line of said tract 1328 feet to
corner on hill line, same being the Southwest corner of said Dallas
County Levee Improvement District No. 1;
       THENCE along said hill line as follows:
       S. 13-3/4 W. 1099 Feet;
       S. 8-1/2 W. at 433 feet Mrs. Jake Ginsberg's N. W. line
(formerly Jim McKay) at 878 feet stake in road;
       S. 30E. 1526 feet;
       S. 59-1/2 W. 818 feet;
       S. 2-374 W. 980 feet;
       S. 6-1/4 W. 748 feet;
       S. 32 W. at 175 feet W. F. Rives (formerly W. J. Potter) East
line, at 1079 feet, stake;
       S. 50 W. 1403 feet;
       S. 2 W. at 350 feet north line of the tract owned by the
Trustees of the Trinity University, at 1119 feet, stake;
       S. 41-1/4 E. at 661 feet North line of Mrs. Lena Mae Nokes
tract in all a distance of 1513 feet;
       S. 56-1/2 E. 665 feet;
       S. 23-1/2 E. 723 feet;
       S. 14-3/4 E. at 772 feet north line of tract now owned by the
Federal Land Bank of Houston, in all a distance of 1078 feet;
       S. 3-1/4 W. at 314 feet edge of Ten Mile Creek bottom at 570
feet stake for the S. W. corner of Dallas County Levee Improvement
District No. 2, as REVISED, in Ten Mile Creek Channel;
       THENCE with said Ten Mile Creek channel as follows:
       N. 74-3/4 E. 1030 feet;
       N. 81 E. 9800 feet to the West bank of the Trinity River,
stake for the Southeast corner of DALLAS COUNTY LEVEE IMPROVEMENT
DISTRICT No. 2 as REVISED.
       THENCE up said Trinity River with the West bank of same to the
place of beginning, containing 2400 acres of land, more or less.
       The above Field notes are made and verified from the records
of Dallas County, Texas, in conjunction with a survey of the line
described as being in Ten Mile Creek Channel.
       SECTION 2.11.  Section 1, Chapter 554, Acts of the 59th
Legislature, Regular Session, 1965, is amended to read as follows:
       Sec. 1.  The [Under and pursuant to the provisions of Section
59 of Article XVI, Constitution of Texas, a conservation and
reclamation district is hereby created and incorporated in Harris
County, Texas, to be known as "Crosby Municipal Utility District of
Harris County, Texas," hereinafter referred to as the "District,"
and the] boundaries of the Crosby Municipal Utility District of
Harris County, Texas, [said District] shall be as follows:
       BEGINNING at the southwestern corner of the Lewis A. Levy
Survey, Abstract No. 517, Harris County, Texas, same being a point
on the northern line of the Humphrey Jackson League, Abstract No.
37;
       THENCE in an easterly direction along said northern line of
said Humphrey Jackson League, being also the southern line of said
Lewis A. Levy Survey, and a projection easterly thereof to an
intersection with the southwestern line of the San Jacinto River
Authority canal right-of-way in the B. F. Tankersley Survey,
Abstract No. 770;
       THENCE in a southeasterly direction along said southwestern
line of the San Jacinto River Authority canal right-of-way to the
eastern line of the Adolph Erlund 59.24 acre tract;
       THENCE in a southerly direction along said eastern line of
said 59.24 acre tract, being also the western line of a 60.58 acre
tract, to the northwestern line of the T & NO Railroad right-of-way;
       THENCE in a northeasterly direction along said northwestern
line of said T & NO Railroad right-of-way to an intersection with
the projection northerly of the eastern line of the W. H. Miller
2.15 acre tract;
       THENCE in a southerly direction along said projection
northerly of said Miller 2.15 acre tract and said eastern line of
said 2.15 acre tract, being also the western line of the F. R.
Curtis 6.65 acre tract, to the southeastern corner of said 2.15 acre
tract on the south line of said B. F. Tankersley Survey, being also
the north line of the John Quinlan Survey, Abstract No. 641;
       THENCE in an easterly direction along said south line of the
B. F. Tankersley Survey, being also the north line of said John
Quinlan Survey, to its intersection with the western line of the
aforementioned San Jacinto River Authority canal right-of-way;
       THENCE in a generally southerly and southwesterly direction
along said western line of the San Jacinto River Authority canal
right-of-way to its intersection with a line parallel to and 200
feet perpendicular northerly from the northern right-of-way line of
the road along the southern line of the Robert Sebesta 38.68 acre
tract in the Thos. Toby Survey, Abstract No. 791;
       THENCE in an easterly direction along said line parallel to
and 200 feet perpendicular northerly from the northern right-of-way
line of the road along the southern line of the said Robert Sebesta
38.68 acre tract to an intersection with the northwestern line of
the right-of-way of U. S. Highway No. 90;
       THENCE in a southwesterly direction along said northwestern
right-of-way line of U. S. Highway No. 90 to its intersection with
the northern line of the Victor Adam 12.02 acre tract;
       THENCE in a westerly direction along said northern line of
the Victor Adam 12.02 acre tract and its projection westerly to the
western line of the aforementioned San Jacinto River Authority
canal right-of-way, being also the eastern line of a 1.97 acre
tract;
       THENCE in a southerly direction along said western line of
the San Jacinto River Authority canal right-of-way to its
intersection with the southern line of said 1.97 acre tract;
       THENCE in a westerly direction along said southern line of
said 1.97 acre tract and its projection westerly to the western
right-of-way line of the Crosby-Lynchburg Road;
       THENCE in a northerly direction along said western
right-of-way line of the Crosby-Lynchburg Road to a point 200 feet
perpendicular southerly from the southern line of the Ed Ulrich
44.70 acre tract;
       THENCE in a westerly direction with a line parallel to and 200
feet perpendicular southerly from said south line of the Ed Ulrich
44.70 acre tract for a distance of 500 feet to a point for corner;
       THENCE in a northerly direction along a line parallel to and
500 feet perpendicular westerly from the western right-of-way line
of said Crosby-Lynchburg Road to an intersection with the northern
line of the B. J. Kristynik 37.30 acre tract, being also the
southern line of Crosby Townsite;
       THENCE in a generally westerly direction along said northern
line of said B. J. Kristynik 37.30 acre tract, being also the
southern line of Crosby Townsite, to an intersection with the
southeastern line of the T & NO Railroad right-of-way;
       THENCE in a northwesterly direction perpendicular or at right
angles to the centerline of said T & NO Railroad right-of-way to the
northwestern line of said T & NO Railroad right-of-way;
       THENCE in a northeasterly direction along said northwestern
line of said T & NO Railroad right-of-way to the southern corner of
Block Eleven (11) of said Crosby Townsite on the northeastern line
of Avenue "C";
       THENCE in a northwesterly direction along the southwestern
line of said Block Eleven (11) and Block Ten (10) of Crosby
Townsite, being also the northeastern line of Avenue "C", to the
western corner of said Block Ten (10) on the southeastern line of
First Street;
       THENCE in a northeasterly direction along the northwestern
line of said Block Ten (10) to the most northerly northwestern
corner of said Block Ten (10) on the northern line of Crosby
Townsite;
       THENCE in a westerly direction along said northern line of
Crosby Townsite to a point for corner at the intersection of said
northern line of Crosby Townsite with a line which is parallel to
and southwesterly from the westerly right-of-way line of
Farm-To-Market Road No. 2100 and passes through the southwestern
corner of the aforementioned Lewis A. Levy Survey;
       THENCE in a northwesterly direction along said line parallel
to and southwesterly from said westerly right-of-way line of
Farm-To-Market Road No. 2100 to the southwestern corner of said
Lewis A. Levy Survey on the north line of the Humphrey Jackson
League, Abstract No. 37, the place of beginning, and containing 700
acres of land, more or less.
ARTICLE 3.  REPEALER
       SECTION 3.01.  The following statutes are repealed:
             (1)  Chapter 734, Acts of the 72nd Legislature, Regular
Session, 1991 (Article 4477-7k, Vernon's Texas Civil Statutes);
             (2)  Chapter 643, Acts of the 59th Legislature, Regular
Session, 1965;
             (3)  Chapter 375, Acts of the 69th Legislature, Regular
Session, 1985;
             (4)  Chapter 726, Acts of the 65th Legislature, Regular
Session, 1977;
             (5)  Chapter 647, Acts of the 59th Legislature, Regular
Session, 1965;
             (6)  Chapter 103, Acts of the 57th Legislature, Regular
Session, 1961;
             (7)  Chapter 262, Acts of the 60th Legislature, Regular
Session, 1967;
             (8)  Chapter 12, Acts of the 70th Legislature, 2nd
Called Session, 1987;
             (9)  Chapter 877, Acts of the 62nd Legislature, Regular
Session, 1971;
             (10)  Chapter 515, Acts of the 69th Legislature,
Regular Session, 1985;
             (11)  Chapter 128, Acts of the 66th Legislature,
Regular Session, 1979;
             (12)  Sections 2, 3, 3A, 4, 5, 6, 7, 8, 9, 10, 11, 12,
13, 14, 15, 16, 17, 18, and 19, Chapter 539, Acts of the 63rd
Legislature, Regular Session, 1973;
             (13)  Chapter 59, Acts of the 62nd Legislature, Regular
Session, 1971;
             (14)  Chapter 699, Acts of the 61st Legislature,
Regular Session, 1969;
             (15)  Chapter 444, Acts of the 61st Legislature,
Regular Session, 1969;
             (16)  Sections 1.01, 1.02, 2.01, 2.02, 3.01, 3.02,
3.03, 3.04, 3.05, 3.06, 3.07, 3.08, 4.01, 4.02, 4.03, 4.04, 4.05,
4.06, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16,
5.01, 5.02, 5.03, 5.04, 5.05, 5.06, 5.07, 5.08, 5.09, 5.10, 5.11,
5.12, 5.13, 5.14, 5.15, 5.16, 5.17, 6.01, 6.02, 6.03, 6.04, 6.05,
6.06, 6.07, 6.08, 6.09, 6.10, 7.01, 7.02, 7.03, 7.04, 7.05, 7.06,
7.07, 7.08, 7.09, 7.10, 7.11, 8.01, 8.02, 8.03, 8.04, 9.01, 9.02,
9.03, 9.04, 9.05, 9.06, 9.07, 9.08, and 10.01, Chapter 221, Acts of
the 71st Legislature, Regular Session, 1989;
             (17)  Chapter 550, Acts of the 71st Legislature,
Regular Session, 1989;
             (18)  Chapter 513, Acts of the 63rd Legislature,
Regular Session, 1973;
             (19)  Chapter 73, Acts of the 64th Legislature, Regular
Session, 1975;
             (20)  Chapter 448, Acts of the 63rd Legislature,
Regular Session, 1973;
             (21)  Chapter 680, Acts of the 68th Legislature,
Regular Session, 1983;
             (22)  Sections 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
14, 15, 16, and 17, Chapter 668, Acts of the 64th Legislature,
Regular Session, 1975;
             (23)  Chapter 220, Acts of the 71st Legislature,
Regular Session, 1989;
             (24)  Chapter 502, Acts of the 60th Legislature,
Regular Session, 1967;
             (25)  Chapter 191, Acts of the 64th Legislature,
Regular Session, 1975;
             (26)  Chapter 455, Acts of the 62nd Legislature,
Regular Session, 1971;
             (27)  Chapter 42, Acts of the 70th Legislature, 2nd
Called Session, 1987;
             (28)  Sections 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25, Chapter 561, Acts
of the 63rd Legislature, Regular Session, 1973;
             (29)  Chapter 214, Acts of the 66th Legislature,
Regular Session, 1979;
             (30)  Chapter 424, Acts of the 66th Legislature,
Regular Session, 1979;
             (31)  Chapter 528, Acts of the 60th Legislature,
Regular Session, 1967;
             (32)  Sections 1A, 2, 3, 3A, 4, 4A, 4B, 4C, 5, 6, 7, 8,
9, 10, 11, 12, 13, 14, 15, 16, and 17, Chapter 666, Acts of the 64th
Legislature, Regular Session, 1975;
             (33)  Chapter 852, Acts of the 62nd Legislature,
Regular Session, 1971;
             (34)  Chapter 43, Acts of the 57th Legislature, 1st
Called Session, 1961;
             (35)  Chapter 125, Acts of the 60th Legislature,
Regular Session, 1967;
             (36)  Chapter 77, Acts of the 71st Legislature, Regular
Session, 1989;
             (37)  Chapter 275, Acts of the 66th Legislature,
Regular Session, 1979;
             (38)  Chapter 56, Acts of the 58th Legislature, Regular
Session, 1963;
             (39)  Chapter 591, Acts of the 61st Legislature,
Regular Session, 1969;
             (40)  Chapter 873, Acts of the 62nd Legislature,
Regular Session, 1971:
             (41)  Chapter 241, Acts of the 60th Legislature,
Regular Session, 1967;
             (42)  Chapter 16, Acts of the 64th Legislature, Regular
Session, 1975;
             (43)  Chapter 58, Acts of the 63th Legislature, Regular
Session, 1973;
             (44)  Chapter 484, Acts of the 60th Legislature,
Regular Session, 1967;
             (45)  Chapter 66, Acts of the 60th Legislature, Regular
Session, 1967;
             (46)  Chapter 184, Acts of the 60th Legislature,
Regular Session, 1967;
             (47)  Chapter 41, Acts of the 59th Legislature, Regular
Session, 1965;
             (48)  Chapter 51, Acts of the 71st Legislature, Regular
Session, 1989;
             (49)  Chapter 665, Acts of the 64th Legislature,
Regular Session, 1975;
             (50)  Chapter 466, Acts of the 60th Legislature,
Regular Session, 1967;
             (51)  Chapter 465, Acts of the 59th Legislature,
Regular Session, 1965;
             (52)  Chapter 546, Acts of the 71st Legislature,
Regular Session, 1989;
             (53)  Sections 1.01, 1.02, 2.01, 3.01, 3.02, 3.03,
3.04, 3.05, 3.06, 3.07, 3.08, 4.01, 4.02, 4.03, 4.04, 4.05, 4.06,
4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16, 5.01,
5.02, 5.03, 5.04, 5.05, 5.06, 5.07, 5.08, 5.09, 5.10, 5.11, 5.12,
5.13, 5.14, 5.15, 6.01, 6.02, 6.03, 6.04, 6.05, 6.06, 6.07, 6.08,
6.09, 6.10, 7.01, 7.02, 7.03, 7.04, 7.05, 7.06, 7.07, 7.08, 7.09,
7.10, 7.11, 8.01, 8.02, 8.03, 8.04, 8.05, and 9.01, Chapter 45, Acts
of the 71st Legislature, Regular Session, 1989;
             (54)  Chapter 872, Acts of the 62nd Legislature,
Regular Session, 1971;
             (55)  Chapter 1316, Acts of the 75th Legislature,
Regular Session, 1997;
             (56)  Sections 1a, 1b, 2, 3, 4, 4b, and 4c, Chapter 55,
Acts of the 40th Legislature, 1st Called Session, 1927;
             (57)  Chapter 195, Acts of the 53rd Legislature,
Regular Session, 1953;
             (58)  Chapter 715, Acts of the 59th Legislature,
Regular Session, 1965;
             (59)  Sections 2, 3, 4, 5, 6, 7, 7A, 8, 9, 10, 11, and
12, Chapter 36, Acts of the 41st Legislature, 1st Called Session,
1929;
             (60)  Sections 1A, 2, 3, 4, 5, 6, 6A, 6B, 6C, 6D, 7, and
8, Chapter 203, Acts of the 57th Legislature, Regular Session,
1961;
             (61)  Sections 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, and 12,
Chapter 6, Special Laws, Acts of the 41st Legislature, 4th Called
Session, 1930;
             (62)  Chapter 775, Acts of the 69th Legislature,
Regular Session, 1985;
             (63)  Chapter 465, Acts of the 51st Legislature,
Regular Session, 1949;
             (64)  Chapter 713, Acts of the 65th Legislature,
Regular Session, 1977;
             (65)  Chapter 432, Acts of the 66th Legislature,
Regular Session, 1979;
             (66)  Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25, Chapter 435, Acts
of the 66th Legislature, Regular Session, 1979;
             (67)  Sections 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
and 14, Chapter 1321, Acts of the 76th Legislature, Regular
Session, 1999;
             (68)  Sections 1.01, 1.02, 1.03, 1.05, 1.06, 1.07,
1.08, 1.09, 2.01, 2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.09,
2.10, 2.11, 2.12, 2.13, 2.14, 2.15, 2.16, 2.17, 2.18, 3.01, 3.02,
3.03, 3.04, 3.05, 3.06, 3.07, 3.08, 3.09, 3.10, 3.11, 3.12, 3.13,
3.14, 3.15, 4.01, 4.02, 4.03, 5.01, 5.02, 5.03, 5.04, 5.05, 5.06,
6.01, 6.02, 7.01, and 7.02, Chapter 1273, Acts of the 75th
Legislature, Regular Session, 1997;
             (69)  Sections 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
14, 15, and 16, Chapter 166, Acts of the 41st Legislature, Regular
Session, 1929;
             (70)  Sections 2, 3, 4, 5, 6, 7, 8, 9, 10, and 11,
Chapter 306, Acts of the 45th Legislature, Regular Session, 1937;
             (71)  Chapter 359, Acts of the 72nd Legislature,
Regular Session, 1989;
             (72)  Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 648,
Acts of the 62nd Legislature, Regular Session, 1971;
             (73)  Sections 1, 2, 3, 4, 5, 7, 8, 9, and 10, Chapter
621, Acts of the 63rd Legislature, Regular Session, 1973;
             (74)  Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 559,
Acts of the 62nd Legislature, Regular Session, 1971;
             (75)  Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
14, 15, 16, 17, 18, 19, 20, 21, 22, and 23, Chapter 633, Acts of the
60th Legislature, Regular Session, 1967;
             (76)  Sections 1, 3, 4, 5, 6, 7, 8, and 9, Chapter 421,
Acts of the 66th Legislature, Regular Session, 1979;
             (77)  Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter
700, Acts of the 74th Legislature, Regular Session, 1995;
             (78)  Sections 1, 2(b), 2(c), 3, 4, 5, 6, 7, 8, and 9,
Chapter 722, Acts of the 68th Legislature, Regular Session, 1983;
             (79)  Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 584,
Acts of the 62nd Legislature, Regular Session, 1971;
             (80)  Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 700,
Acts of the 62nd Legislature, Regular Session, 1971;
             (81)  Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 703,
Acts of the 62nd Legislature, Regular Session, 1971;
             (82)  Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25, Chapter 270, Acts
of the 61st Legislature, Regular Session, 1969;
             (83)  Sections 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
14, 15, and 16, Chapter 744, Acts of the 73rd Legislature, Regular
Session, 1993;
             (84)  Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 347,
Acts of the 62nd Legislature, Regular Session, 1971;
             (85)  Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter
184, Acts of the 69th Legislature, Regular Session, 1985;
             (86)  Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter
185, Acts of the 69th Legislature, Regular Session, 1985;
             (87)  Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter
186, Acts of the 69th Legislature, Regular Session, 1985;
             (88)  Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter
188, Acts of the 69th Legislature, Regular Session, 1985;
             (89)  Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter
189, Acts of the 69th Legislature, Regular Session, 1985;
             (90)  Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter
190, Acts of the 69th Legislature, Regular Session, 1985;
             (91)  Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter
191, Acts of the 69th Legislature, Regular Session, 1985;
             (92)  Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter
192, Acts of the 69th Legislature, Regular Session, 1985;
             (93)  Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 505,
Acts of the 62nd Legislature, Regular Session, 1971;
             (94)  Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 686,
Acts of the 62nd Legislature, Regular Session, 1971;
             (95)  Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25, Chapter 146, Acts
of the 61st Legislature, Regular Session, 1969;
             (96)  Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 195,
Acts of the 62nd Legislature, Regular Session, 1971;
             (97)  Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 654,
Acts of the 62nd Legislature, Regular Session, 1971;
             (98)  Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 576,
Acts of the 62nd Legislature, Regular Session, 1971;
             (99)  Chapter 705, Acts of the 62nd Legislature,
Regular Session, 1971;
             (100)  Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 697,
Acts of the 62nd Legislature, Regular Session, 1971;
             (101)  Sections 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, and 12,
Chapter 1385, Acts of the 77th Legislature, Regular Session, 2001;
             (102)  Sections 1, 2, 4, 5, 6, 7, 8, 9, 10, and 11,
Chapter 756, Acts of the 75th Legislature, Regular Session, 1997;
             (103)  Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 474,
Acts of the 62nd Legislature, Regular Session, 1971;
             (104)  Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 104,
Acts of the 67th Legislature, Regular Session, 1981;
             (105)  Sections 1, 3, 4, 5, 6, 7, and 8, Chapter 704,
Acts of the 68th Legislature, Regular Session, 1983;
             (106)  Chapter 950, Acts of the 69th Legislature,
Regular Session, 1985;
             (107)  Chapter 12, Acts of the 57th Legislature, 3rd
Called Session, 1962;
             (108)  Sections 1, 3, 4, 5, 6, 7, 7-A, 8, 9, 10, 11, 12,
13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, and 26, Chapter
506, Acts of the 54th Legislature, Regular Session, 1955;
             (109)  Sections 2, 3, 4, 5, 6, 7, 8, 9, and 10, Chapter
554, Acts of the 59th Legislature, Regular Session, 1965; and
             (110)  Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25, Chapter 751, Acts
of the 61st Legislature, Regular Session, 1969.
ARTICLE 4.  GENERAL MATTERS
       SECTION 4.01.  LEGISLATIVE INTENT OF NO SUBSTANTIVE CHANGE.  
This Act is enacted under Section 43, Article III, Texas
Constitution. This Act is intended as a codification only, and no
substantive change in the law is intended by this Act. This Act
does not increase or decrease the territory of any special district
of the state as those boundaries exist on the effective date of this
Act.
       SECTION 4.02.  PRESERVATION OF VALIDATION MADE BY PREVIOUS
LAW. (a) The repeal of a law, including a validating law, by this
Act does not remove, void, or otherwise affect in any manner a
validation under the repealed law. The validation is preserved and
continues to have the same effect that it would have if the law were
not repealed.
       (b)  Subsection (a) of this section does not diminish the
saving provisions prescribed by Section 311.031, Government Code.
       SECTION 4.03.  EFFECTIVE DATE. This Act takes effect April
1, 2009.