H.B. No. 3166
 
relating to the nonsubstantive revision of certain local laws
concerning special districts, including conforming amendments.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1.  NONSUBSTANTIVE REVISION OF LOCAL LAWS
       SECTION 1.01.  Subtitle A, Title 2, Special District Local
Laws Code, is amended by adding Chapter 21 to read as follows:
CHAPTER 21.  UPPER SABINE VALLEY SOLID WASTE MANAGEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 21.001.  DEFINITIONS
Sec. 21.002.  NATURE OF DISTRICT
Sec. 21.003.  PURPOSE
Sec. 21.004.  FINDINGS AND DECLARATION OF POLICY
Sec. 21.005.  STATE POLICY REGARDING WASTE DISPOSAL
[Sections 21.006-21.050 reserved for expansion]
SUBCHAPTER B.  DISTRICT TERRITORY AND CHANGES TO
DISTRICT TERRITORY
Sec. 21.051.  DISTRICT TERRITORY
Sec. 21.052.  ANNEXATION OF COUNTY; PETITION
Sec. 21.053.  ANNEXATION PETITION HEARING; NOTICE
Sec. 21.054.  EXCLUSION OF COUNTY
Sec. 21.055.  ELECTION ON ANNEXATION OR EXCLUSION OF
               COUNTY
Sec. 21.056.  CONTINUED BOND OBLIGATION FOR EXCLUDED
               COUNTY
[Sections 21.057-21.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 21.101.  GOVERNING BODY; COMPOSITION
Sec. 21.102.  APPOINTMENT OF DIRECTORS FROM ANNEXED
               COUNTY
Sec. 21.103.  TERM
Sec. 21.104.  ELIGIBILITY TO SERVE
Sec. 21.105.  VACANCY
Sec. 21.106.  DIRECTOR'S BOND
Sec. 21.107.  TERM OF OFFICERS
Sec. 21.108.  BYLAWS
Sec. 21.109.  BOARD MEETINGS
Sec. 21.110.  COMPENSATION
Sec. 21.111.  CONFLICT OF INTEREST IN CONTRACT
[Sections 21.112-21.150 reserved for expansion]
SUBCHAPTER D. ADMINISTRATIVE POWERS AND DUTIES
Sec. 21.151.  PRINCIPAL OFFICE
Sec. 21.152.  GENERAL MANAGER
Sec. 21.153.  EMPLOYEE AND GENERAL MANAGER FIDELITY
               BONDS
Sec. 21.154.  ATTORNEY
Sec. 21.155.  RECORDS; LIMIT ON DISCLOSURE
[Sections 21.156-21.200 reserved for expansion]
SUBCHAPTER E. GENERAL POWERS AND DUTIES
Sec. 21.201.  ADMINISTRATION, ENFORCEMENT, AND
               ACCOMPLISHMENT OF CHAPTER
Sec. 21.202.  CONSERVATION AND RECLAMATION DISTRICT
               POWERS
Sec. 21.203.  RULES; HEARINGS
Sec. 21.204.  SCOPE OF DISTRICT'S REGULATORY POWER
Sec. 21.205.  PLANS
Sec. 21.206.  STUDIES AND RESEARCH
Sec. 21.207.  COOPERATIVE AGREEMENTS WITH OTHER
               POLITICAL SUBDIVISIONS
Sec. 21.208.  GIFTS, GRANTS, AND LOANS
Sec. 21.209.  ACQUISITION OF PROPERTY
Sec. 21.210.  EMINENT DOMAIN; COST OF RELOCATING
               PROPERTY
Sec. 21.211.  ENTRY ON LAND
Sec. 21.212.  ROAD RIGHT-OF-WAY
Sec. 21.213.  CONSENT FOR CHANGE OR DAMAGE TO STATE
               PROPERTY
Sec. 21.214.  BIDS ON CONTRACTS FOR PURCHASE OF
               VEHICLES, EQUIPMENT, AND SUPPLIES OVER
               $15,000; EXCEPTION
[Sections 21.215-21.250 reserved for expansion]
SUBCHAPTER F.  CONSTRUCTION, RENOVATION, AND REPAIR CONTRACTS
Sec. 21.251.  AUTHORITY TO ENTER INTO CONSTRUCTION,
               RENOVATION, AND REPAIR CONTRACTS
Sec. 21.252.  BIDS ON CONTRACTS OVER $15,000
Sec. 21.253.  CONTRACT SPECIFICATIONS, PLANS, AND
               DETAILS
Sec. 21.254.  EXECUTION AND AVAILABILITY OF CONTRACTS
Sec. 21.255.  CONTRACTOR'S BOND
Sec. 21.256.  BOARD CONTROL AND DETERMINATION
Sec. 21.257.  INSPECTION OF WORK
Sec. 21.258.  PAYMENTS FOR WORK
[Sections 21.259-21.300 reserved for expansion]
SUBCHAPTER G. WASTE DISPOSAL
Sec. 21.301.  ACQUISITION OF EXISTING FACILITIES
Sec. 21.302.  SOLID WASTE RECOVERY FACILITY
Sec. 21.303.  STANDARDS FOR SOLID WASTE HANDLING
Sec. 21.304.  MANAGEMENT OF MUNICIPAL SOLID WASTE
Sec. 21.305.  ON-SITE SEWAGE DISPOSAL SYSTEMS
Sec. 21.306.  ACQUISITION, CONSTRUCTION, AND OPERATION
               OF DISPOSAL SYSTEMS
Sec. 21.307.  WASTE DISPOSAL CONTRACTS
[Sections 21.308-21.350 reserved for expansion]
SUBCHAPTER H.  GENERAL FINANCIAL PROVISIONS
Sec. 21.351.  ACCOUNTING
Sec. 21.352.  ANNUAL BUDGET
Sec. 21.353.  SWORN STATEMENT REGARDING MONEY AND
               DISBURSEMENTS
Sec. 21.354.  DEPOSITORY
Sec. 21.355.  INVESTMENTS
Sec. 21.356.  PAYMENT OF EXPENSES
Sec. 21.357.  BORROWING MONEY
Sec. 21.358.  PAYMENT OF JUDGMENTS
[Sections 21.359-21.400 reserved for expansion]
SUBCHAPTER I. BONDS
Sec. 21.401.  AUTHORITY TO ISSUE BONDS
Sec. 21.402.  BOND PAYMENT
Sec. 21.403.  BOND ELECTION
Sec. 21.404.  MATURITY OF BONDS
Sec. 21.405.  SIGNATURE
Sec. 21.406.  BOND PROVISIONS
Sec. 21.407.  MANDAMUS BY BONDHOLDERS
Sec. 21.408.  REFUNDING BONDS
Sec. 21.409.  TAX EXEMPTION
[Sections 21.410-21.450 reserved for expansion]
SUBCHAPTER J.  TAXES
Sec. 21.451.  AUTHORITY TO IMPOSE PROPERTY TAXES
Sec. 21.452.  AMOUNT OF TAX
Sec. 21.453.  TAX RATE
Sec. 21.454.  TAX COLLECTOR
CHAPTER 21.  UPPER SABINE VALLEY SOLID WASTE MANAGEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.21.001.DEFINITIONS. In this Act:
             (1)  "Board" means the district's board of directors.
             (2)  "Commission" means the Texas Commission on
Environmental Quality.
             (3)  "Director" means a board member.
             (4)  "District" means the Upper Sabine Valley Solid
Waste Management District.
             (5)  "Local government" means:
                   (A)  a municipality;
                   (B)  a county; or
                   (C)  a water or other special district or
authority acting under Sections 52(b)(1) and (2), Article III, or
Section 59, Article XVI, Texas Constitution.
             (6)  "Solid waste" has the meaning assigned by Section
361.003, Health and Safety Code.
             (7)  "Water" means groundwater, percolating or
otherwise, lakes, bays, ponds, springs, rivers, streams, creeks,
and all other bodies of surface water, natural or artificial, that
are wholly or partly in the district.
             (8)  "Water pollution" means alteration of the
physical, chemical, or biological quality of water or contamination
of water that:
                   (A)  renders the water harmful, detrimental, or
injurious to:
                         (i)  humans, animal life, vegetation, or
property; or
                         (ii)  public health, safety, or welfare; or
                   (B)  impairs the usefulness or the public
enjoyment of the water for any lawful or reasonable purpose.  
(V.A.C.S. Art. 4477-7k, Secs. 1.03(1), (2), (4), (5), (7), (14),
(16), (17).)
       Sec.21.002.NATURE OF DISTRICT.  The district is a
conservation and reclamation district created under Section 59,
Article XVI, Texas Constitution. (V.A.C.S. Art. 4477-7k, Sec.
2.01.)
       Sec.21.003.PURPOSE.  The purpose of this chapter is to
establish an instrumentality to develop and carry out a regional
water quality protection program through solid waste management and
regulation of waste disposal for Rains, Upshur, and Wood Counties
and for the portion of Smith County that is north of Interstate
Highway 20. (V.A.C.S. Art. 4477-7k, Sec. 1.01.)
       Sec.21.004.FINDINGS AND DECLARATION OF POLICY.  (a)  The
legislature finds that:
             (1)  the quality of water in East Texas is materially
affected by the disposal of waste throughout the region;
             (2)  a regional effort to study water pollution, plan
corrective and preventive measures, provide coordinated facilities
for waste disposal, and regulate waste disposal is far more
effective than efforts on a smaller scale;
             (3)  solid waste, as well as other waste, may impair
water quality by seepage or drainage; and
             (4)  creation of the district would advance the
established policy of this state to maintain the quality of the
water in the state consistent with:
                   (A)  public health and enjoyment;
                   (B)  the propagation and protection of
terrestrial and aquatic life;
                   (C)  the operation of existing industries; and
                   (D)  the economic development of the state.
       (b)  All area included in the district will benefit from the
exercise of the power conferred by this chapter.
       (c)  The district is a public entity performing an essential
public function.  (V.A.C.S. Art. 4477-7k, Secs. 1.02(a), (c), 7.01
(part).)
       Sec.21.005.STATE POLICY REGARDING WASTE DISPOSAL.  The
district's powers and duties are subject to the state policy of
encouraging the development and use of integrated area-wide waste
collection, treatment, and disposal systems to serve the waste
disposal needs of this state's residents, if integrated systems can
reasonably be provided for an area, so as to avoid the economic
burden on residents and the impact on state water quality caused by
the construction and operation of numerous small waste collection,
treatment, and disposal facilities.  (V.A.C.S. Art. 4477-7k, Sec.
4.23.)
[Sections 21.006-21.050 reserved for expansion]
SUBCHAPTER B.  DISTRICT TERRITORY AND CHANGES TO
DISTRICT TERRITORY
       Sec.21.051.DISTRICT TERRITORY.  Unless the district
territory has been modified under this subchapter, Subchapter J,
Chapter 49, Water Code, or other law, the district's territory
consists of Rains, Upshur, and Wood Counties and the portion of
Smith County north of Interstate Highway 20.  (V.A.C.S. Art.
4477-7k, Sec. 2.02.)
       Sec.21.052.ANNEXATION OF COUNTY; PETITION.  (a)  The board
may annex an adjacent county in the manner provided by this section
and Sections 21.053 and 21.055.
       (b)  To initiate annexation proceedings, the commissioners
court of the adjacent county must petition the board requesting the
board to call an election for the annexation of the petitioner's
county.  The petition must be in writing and be endorsed by a
majority of the members of the commissioners court.  (V.A.C.S. Art.
4477-7k, Secs. 8.01, 8.02.)
       Sec.21.053.ANNEXATION PETITION HEARING; NOTICE.  (a) On
receipt of a petition under Section 21.052, the board shall set a
date, time, and place to hold a hearing on the petition. The date
may not be later than the 20th day after the date on which the board
receives the petition.
       (b)  In addition to the notice required under the open
meetings law, Chapter 551, Government Code, the board shall publish
notice of the date, time, place, and purpose of the hearing in one
or more newspapers with general circulation in the district and in
the county to be annexed.
       (c)  Any person may testify at the hearing for or against
annexation of the county to the district.
       (d)  At the conclusion of the hearing, the board shall
determine if an annexation election should be held in the county to
be annexed.  (V.A.C.S. Art. 4477-7k, Secs. 8.03(a), (b), (c), (d).)
       Sec.21.054.EXCLUSION OF COUNTY.  (a)  The commissioners
court of a county in the district may petition the board to hold an
election in the county to determine if a majority of voters of that
county want to exclude the county from the district.
       (b)  If the district has not issued bonds or incurred other
long-term debt before the commissioners court filed the petition,
the board shall, on receipt of the petition, enter an order
authorizing the commissioners court to call an election in that
county.
       (c)  If the district issued bonds or other long-term debt
before the commissioners court filed the petition, the board must
obtain adequate legal and financial assurances that, if the county
withdraws from the district, the county will assume and pay to the
district the county's proportionate share of the district's
outstanding debt based on assessed valuation of taxable property in
the county and district.  After obtaining assurances the board
considers adequate, the board shall enter an order authorizing the
commissioners court of that county to call an election in that
county to determine if the county should be excluded from the
district.  (V.A.C.S. Art. 4477-7k, Sec. 9.01.)
       Sec.21.055.ELECTION ON ANNEXATION OR EXCLUSION OF COUNTY.  
(a)  Annexation or exclusion of a county is final when approved by a
majority of the voters at an election held in the county to be
annexed or excluded.  An election in the existing district
accepting the addition of a county is not required.
       (b)  Section 41.001(a), Election Code, does not apply to an
election held under this section.
       (c)  The election ballots shall be printed to provide for
voting for or against the following, as applicable:
             (1)  "Adding (description of county to be added) to the
Upper Sabine Valley Solid Waste Management District."
             (2)  "(Description of county to be added) assuming its
proportionate share of the outstanding debts and taxes of the Upper
Sabine Valley Solid Waste Management District, if it is added to the
district."
             (3)  "The exclusion of ____________________ County
from the Upper Sabine Valley Solid Waste Management District and
assumption by the county of a duty to pay its proportionate share of
the outstanding indebtedness of the district."
       (d)  If a district has outstanding debts or taxes, the voters
in an election to approve the annexation must also determine if the
annexed county will assume its proportion of the debts or taxes if
added to the district.
       (e)  If the district has outstanding bonds or other long term
obligations, the voters in the election to approve the exclusion
must also determine if the excluded county will assume a duty to pay
its proportion of the district's outstanding indebtedness.
       (f)  The board shall file a copy of the election results with
the commission.  (V.A.C.S. Art. 4477-7k, Secs. 8.03(e), (f), (g)
(part), (h), 9.02(a), (b), (c) (part), (d).)
       Sec.21.056.CONTINUED BOND OBLIGATION FOR EXCLUDED COUNTY.  
The exclusion of a county under Section 21.054(c) does not relieve
the district of its obligation to perform and observe the covenants
and obligations or the conditions prescribed by the order or
resolution authorizing the issuance of the district's bonds.  
(V.A.C.S. Art. 4477-7k, Sec. 9.03.)
[Sections 21.057-21.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS
       Sec.21.101.GOVERNING BODY; COMPOSITION.  (a)  The
district is governed by a board of directors composed of at least
six directors.
       (b)  If the district is composed of only one county, the
commissioners court of that county shall appoint six persons to
serve as directors.
       (c)  If the district is composed of two counties, the
commissioners court of each county included in the district shall
each appoint three persons to serve as directors.
       (d)  If the district is composed of three or more counties,
the commissioners court of each county included in the district
shall each appoint two persons to serve as directors.
       (e)  At least one of the directors appointed by each
commissioners court shall represent the interests of
municipalities and of unincorporated communities with a population
of 1,000 or more that are located in that county.  (V.A.C.S. Art.
4477-7k, Sec. 3.01.)
       Sec.21.102.APPOINTMENT OF DIRECTORS FROM ANNEXED COUNTY.
(a) The commissioners court of an annexed county shall appoint two
directors to serve on the board.
       (b)  The newly appointed directors shall draw lots to
determine their initial terms of office. One new director shall
serve an initial term that coincides with the terms of directors
that expire before the expiration of two years and the other new
director shall serve a term that expires after the expiration of
two years but before the expiration of four years.  (V.A.C.S. Art.
4477-7k, Sec. 8.04.)
       Sec.21.103.TERM. Except as provided by Section
21.102(b), a director serves a term of four years. (V.A.C.S. Art.
4477-7k, Sec. 3.03.)
       Sec.21.104.ELIGIBILITY TO SERVE.  To be eligible to be
appointed as or to serve as a director, a person must be:
             (1)  at least 18 years of age;
             (2)  a qualified voter; and
             (3)  a resident of the county governed by the
appointing commissioners court.  (V.A.C.S. Art. 4477-7k, Sec.
3.02(a).)
       Sec.21.105.VACANCY.  A vacancy on the board shall be
filled in the same manner as the original appointment for the
unexpired term.  (V.A.C.S. Art. 4477-7k, Sec. 3.04.)
       Sec.21.106.DIRECTOR'S BOND.  Each director must execute a
$5,000 bond with a corporate surety authorized to do business in
this state and conditioned on the faithful performance of the
director's duties. (V.A.C.S. Art. 4477-7k, Sec. 3.02(c) (part).)
       Sec.21.107.TERM OF OFFICERS.  A person selected as an
officer serves for a term of one year.  (V.A.C.S. Art. 4477-7k, Sec.
3.06(b).)
       Sec.21.108.BYLAWS.  The board shall adopt bylaws.  The
bylaws must prescribe the powers and duties of, and procedures for
removal from, a board office.  (V.A.C.S. Art. 4477-7k, Sec. 3.06(d)
(part).)
       Sec.21.109.BOARD MEETINGS.  Except as otherwise provided
by law, the board shall meet at least one time each quarter and may
meet at any other time provided by its bylaws.  (V.A.C.S. Art.
4477-7k, Sec. 3.07(a).)
       Sec.21.110.COMPENSATION.  (a)  Unless the board by
resolution increases the rate of reimbursement to an amount
authorized by Section 49.060, Water Code, a director other than a
director described by Subsection (c) is entitled to receive $50 a
day and reimbursement for actual and necessary expenses incurred
for each day the director:
             (1)  attends a board meeting; and
             (2)  attends to the business of the district that is
authorized by board resolution or motion.
       (b)  A director is not entitled to receive a per diem
allowance for more than 60 days in a calendar year.
       (c)  If a member of a commissioners court or a municipal
government officer is appointed as a director, the member's or
officer's service as a director is considered an additional duty of
the member's or officer's existing office. The member or officer is
not entitled to a per diem allowance under this section, but is
entitled to reimbursement for actual and necessary expenses
incurred in performing official duties as a director. (V.A.C.S.
Art. 4477-7k, Secs. 3.02(b), 3.10.)
       Sec.21.111.CONFLICT OF INTEREST IN CONTRACT.  A director
who is financially interested in a contract to be executed by the
district for the purchase of property or the construction of
facilities shall disclose that fact to the other directors and may
not vote on the acceptance of the contract.  (V.A.C.S. Art. 4477-7k,
Sec. 3.09.)
[Sections 21.112-21.150 reserved for expansion]
SUBCHAPTER D. ADMINISTRATIVE POWERS AND DUTIES
       Sec.21.151.PRINCIPAL OFFICE. The district shall maintain
its principal office in the district. (V.A.C.S. Art. 4477-7k, Sec.
3.13.)
       Sec.21.152.GENERAL MANAGER.  (a)  The board shall employ a
general manager for a term and salary set by the board.
       (b)  The general manager is the chief executive officer of
the district. Under policies established by the board, the general
manager is responsible to the board for:
             (1)  administering board directives;
             (2)  keeping district records, including minutes of the
board's meetings;
             (3)  coordinating with state, federal, and local
agencies;
             (4)  developing plans and programs for the board's
approval;
             (5)  hiring, supervising, training, and discharging
district employees;
             (6)  contracting for or retaining technical,
scientific, legal, fiscal, and other professional services; and
             (7)  performing any other duty assigned to the general
manager by the board.
       (c)  The board may discharge the general manager by a
majority vote. (V.A.C.S. Art. 4477-7k, Sec. 3.11.)
       Sec.21.153.EMPLOYEE AND GENERAL MANAGER FIDELITY BONDS.
(a) The general manager and each district employee charged with the
collection, custody, or payment of any district money shall execute
a fidelity bond. The board shall approve the form, amount, and
surety of the bond.
       (b)  The district shall pay the premiums on employee bonds
under this section. (V.A.C.S. Art. 4477-7k, Sec. 3.12.)
       Sec.21.154.ATTORNEY.  (a)  The board may appoint an
attorney for the district.
       (b)  The person appointed under this section is entitled to
the compensation provided by the district's budget. (V.A.C.S. Art.
4477-7k, Secs. 3.08(a), (b).)
       Sec.21.155.RECORDS; LIMIT ON DISCLOSURE.  (a)  The
district shall keep its accounts, contracts, documents, minutes,
and other records at its principal office.
       (b)  The board and its employees may not disclose a district
record that relates to trade secrets or the economics of an
industry's operations. (V.A.C.S. Art. 4477-7k, Secs. 3.14(c),
(d).)
[Sections 21.156-21.200 reserved for expansion]
SUBCHAPTER E. GENERAL POWERS AND DUTIES
       Sec. 21.201.  ADMINISTRATION, ENFORCEMENT, AND
ACCOMPLISHMENT OF CHAPTER.  (a)  The district shall:
             (1)  administer and enforce this chapter; and
             (2)  use district facilities and powers to accomplish
the purposes of this chapter.
       (b)  The district may advise, consult, contract, and
cooperate with the federal government, the state, a local
government, or a private entity to carry out any purpose or power
under this chapter.  (V.A.C.S. Art. 4477-7k, Secs. 4.01(a), 4.03.)
       Sec.21.202.CONSERVATION AND RECLAMATION DISTRICT POWERS.  
Except as expressly limited by this chapter, the district has all
powers, rights, and privileges necessary and convenient for
accomplishing the purposes of this chapter that are conferred by
general law on a conservation and reclamation district created
under Section 59, Article XVI, Texas Constitution, including the
powers, rights, and privileges conferred by Subtitle B, Title 5,
Health and Safety Code, on a local or regional government.
(V.A.C.S. Art. 4477-7k, Sec. 4.01(g).)
       Sec.21.203.RULES; HEARINGS.  (a)  The board, after notice
and hearing, may adopt rules necessary to carry out this chapter.
       (b)  The board shall adopt rules establishing procedures for
giving notice and holding a hearing.  (V.A.C.S. Art. 4477-7k, Sec.
4.01(b).)
       Sec.21.204.SCOPE OF DISTRICT'S REGULATORY POWER.  The
regulatory powers of the district under this chapter apply to each
person in the district. (V.A.C.S. Art. 4477-7k, Sec. 4.01(f).)
       Sec.21.205.PLANS.  The district may prepare and adopt
plans for and may purchase, construct, acquire, own, operate,
maintain, repair, improve, and extend inside and outside district
boundaries any works, improvements, waste disposal, treatment, and
other facilities, plants, pipelines, equipment, and appliances
necessary to collect, transport, process, dispose of, and control
domestic, industrial, and communal waterborne and solid waste in
the district. (V.A.C.S. Art. 4477-7k, Sec. 4.01(c).)
       Sec.21.206.STUDIES AND RESEARCH.  The district shall:
             (1)  study and research the control of water pollution
and waste disposal in the district;
             (2)  cooperate with the commission in any study; and
             (3)  use the results of the studies. (V.A.C.S. Art.
4477-7k, Sec. 4.01(e).)
       Sec. 21.207.  COOPERATIVE AGREEMENTS WITH OTHER POLITICAL
SUBDIVISIONS.  The district may enter into a cooperative agreement
with a local government or other political subdivision to:
             (1)  jointly conduct solid waste management
activities; and
             (2)  charge reasonable fees for solid waste management
activities. (V.A.C.S. Art. 4477-7k, Sec. 4.01(i).)
       Sec.21.208.GIFTS, GRANTS, AND LOANS.  The district may
apply for, accept, receive, and administer gifts, grants, loans,
and other money available from any source to carry out any purpose
or power under this chapter.  (V.A.C.S. Art. 4477–7k, Sec. 4.02.)
       Sec.21.209.ACQUISITION OF PROPERTY.  The district may
acquire by gift, grant, devise, purchase, lease, or the exercise of
the power of eminent domain any land, easement, right-of-way, or
other property interest necessary to carry out the powers and
duties under this chapter.  (V.A.C.S. Art. 4477–7k, Sec. 4.04.)
       Sec.21.210.EMINENT DOMAIN; COST OF RELOCATING PROPERTY.  
(a)  The district may exercise the power of eminent domain to
acquire land for a purpose authorized by Section 21.205 if the board
determines, after notice and hearing, that it is necessary.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code, but the
district is not required to:
             (1)  deposit in the trial court money or a bond as
provided by Section 21.021(a), Property Code;
             (2)  pay in advance or give bond or other security for
costs in the trial court;
             (3)  give bond for the issuance of a temporary
restraining order or a temporary injunction; or
             (4)  give bond for costs or supersedeas on an appeal or
writ of error.
       (c)  If the district, in the exercise of the power of eminent
domain, requires relocating, raising, lowering, rerouting,
changing the grade of, or altering the construction of any
railroad, highway, pipeline, or electric transmission and electric
distribution, telegraph, or telephone lines, conduits, poles, or
facilities, the district must bear the actual cost of relocating,
raising, lowering, rerouting, changing the grade of, or altering
the construction to provide comparable replacement without
enhancement of facilities, after deducting the net salvage value
derived from the old facility.  (V.A.C.S. Art. 4477-7k, Sec. 4.05.)
       Sec.21.211.ENTRY ON LAND. (a) A district director,
engineer, or employee may go on any land inside or outside the
district to survey and examine the land with reference to the
location of works, improvements, and waste disposal, treatment, and
other facilities, plants, pipelines, equipment, and appliances,
and to attend to district business.
       (b)  The director, engineer, or employee must give the
landowner five days' written notice before entering on the land.
       (c)  If any district activity on the land causes damage to
the land or property, the district shall restore the land or
property as nearly as possible to its original state. The district
shall pay the restoration's cost. (V.A.C.S. Art. 4477-7k, Sec.
4.14.)
       Sec.21.212.ROAD RIGHT-OF-WAY.  A governmental entity
having jurisdiction over a right-of-way along and across a public
state or county road or highway may:
             (1)  designate the placement of district facilities
located on the right-of-way; and
             (2)  require the relocation of district facilities to
accommodate widening or changing traffic lanes.  (V.A.C.S. Art.
4477-7k, Sec. 4.15(a) (part).)
       Sec. 21.213.  CONSENT FOR CHANGE OR DAMAGE TO STATE
PROPERTY.  The district must obtain the written consent of the
governmental entity having control and jurisdiction over state
property, including a facility, before the district may proceed
with an action to change or damage the property.  (V.A.C.S. Art.
4477-7k, Sec. 4.15(b).)
       Sec. 21.214.  BIDS ON CONTRACTS FOR PURCHASE OF VEHICLES,
EQUIPMENT, AND SUPPLIES OVER $15,000; EXCEPTION.  (a)  If the
estimated amount of a proposed contract to purchase vehicles,
equipment, or supplies is more than $15,000, the board shall ask for
competitive bids as provided by Subchapter B, Chapter 271, Local
Government Code.
       (b)  This section does not apply to:
             (1)  the purchase of property from a public agency; or
             (2)  a contract for personal or professional services.  
(V.A.C.S. Art. 4477-7k, Sec. 4.13.)
[Sections 21.215-21.250 reserved for expansion]
SUBCHAPTER F.  CONSTRUCTION, RENOVATION, AND REPAIR CONTRACTS
       Sec. 21.251.  AUTHORITY TO ENTER INTO CONSTRUCTION,
RENOVATION, AND REPAIR CONTRACTS.  The district may contract with
any person to construct, renovate, repair, or make improvements to
any district works, improvements, waste disposal, treatment, or
other facilities, plants, pipelines, equipment, and appliances.  
(V.A.C.S. Art. 4477-7k, Sec. 4.06.)
       Sec.21.252.BIDS ON CONTRACTS OVER $15,000.  The district
may enter into a contract under Section 21.251 that requires an
expenditure of more than $15,000 only after competitive bidding as
provided by Subchapter B, Chapter 271, Local Government Code.  
(V.A.C.S. Art. 4477-7k, Sec. 4.07.)
       Sec.21.253.CONTRACT SPECIFICATIONS, PLANS, AND DETAILS.  
A contract under Section 21.251 must contain, or have attached to
it, the specifications, plans, and details for work included in the
contract. The work shall be done according to the plans and
specifications under the supervision of the district.  (V.A.C.S.
Art. 4477-7k, Sec. 4.08.)
       Sec.21.254.EXECUTION AND AVAILABILITY OF CONTRACTS.  (a)  
A contract under Section 21.251 must be in writing and signed by:
             (1)  the contractor; and
             (2)  a district representative designated by the board.
       (b)  The contract shall be kept in the district's office and
must be available for public inspection.  (V.A.C.S. Art. 4477-7k,
Sec. 4.09.)
       Sec.21.255.CONTRACTOR'S BOND.  (a)  A contractor shall
execute a bond:
             (1)  in an amount determined by the board, not to exceed
the contract price;
             (2)  payable to the district and approved by the board;
and
             (3)  conditioned on the faithful performance of the
contract.
       (b)  The bond must provide that a contractor pay to the
district all damages sustained as a result of the contractor's
default on the contract.
       (c)  The bond shall be deposited in the district's
depository.  A copy of the bond shall be kept in the district's
office.  (V.A.C.S. Art. 4477-7k, Sec. 4.10.)
       Sec.21.256.BOARD CONTROL AND DETERMINATION.  (a)  The
board has control of construction, renovation, or repairs being
done for the district under a contract under Section 21.251.
       (b)  The board shall determine whether the contract is being
fulfilled.  (V.A.C.S. Art. 4477-7k, Sec. 4.11(a).)
       Sec.21.257.INSPECTION OF WORK.  (a)  The board shall have
the work contracted for under Section 21.251 inspected by
engineers, inspectors, and personnel of the district.
       (b)  During the progress of the contracted work, the
engineers, inspectors, and personnel shall submit to the board
written reports that show whether the contractor is complying with
the contract.
       (c)  On completion of the contracted work, the engineers,
inspectors, and personnel shall submit to the board a final
detailed written report that includes information necessary to show
whether the contractor has fully complied with the contract.  
(V.A.C.S. Art. 4477-7k, Secs. 4.11(b), (c), (d).)
       Sec.21.258.PAYMENTS FOR WORK.  (a)  The district shall pay
the contract price of a construction, renovation, or repair
contract in accordance with this section.
       (b)  The district shall make monthly progress payments under
a contract as the work proceeds or at more frequent intervals as
determined by the board.
       (c)  To provide a basis for determining progress payments,
the contractor, on the request of the board, shall furnish, in the
detail requested, an analysis of the total contract price showing
the amount included for each principal category of the work.
       (d)  In making progress payments, the board shall retain 10
percent of the estimated amounts until final completion and
acceptance of the contract work. The board may authorize any of the
remaining progress payments to be made in full if:
             (1)  the board finds that satisfactory progress is
being made; and
             (2)  at least 50 percent of the work has been completed.
       (e)  If the work under a contract is substantially complete
and the board finds the amount retained to be in excess of the
amount adequate for the protection of the district, the board may
release to the contractor all or part of the excess amount.
       (f)  On completion and acceptance of each separate project,
work, or other division of the contract on which the price is stated
separately in the contract, payment may be made without retention
of a percentage.
       (g)  When work is completed according to the contract, the
board shall draw a warrant on the depository to pay any balance due
on the contract.  (V.A.C.S. Art. 4477-7k, Sec. 4.12.)
[Sections 21.259-21.300 reserved for expansion]
SUBCHAPTER G. WASTE DISPOSAL
       Sec.21.301.ACQUISITION OF EXISTING FACILITIES.  If the
district acquires existing works, improvements, and waste
disposal, treatment, and other facilities, plants, pipelines,
equipment, and appliances that are completed, partially completed,
or under construction, the district may:
             (1)  assume the contracts and obligations of the
previous owner; and
             (2)  perform the obligations of the previous owner in
the same manner and to the same extent that any other purchaser or
assignee would be bound.  (V.A.C.S. Art. 4477-7k, Sec. 4.17.)
       Sec.21.302.SOLID WASTE RECOVERY FACILITY.  The district
may construct or acquire and operate a facility used to store,
handle, sort, bail, recycle, process, and recover solid waste.  
(V.A.C.S. Art. 4477-7k, Secs. 1.03(11), 4.18.)
       Sec.21.303.STANDARDS FOR SOLID WASTE HANDLING.  (a)  The
district shall establish minimum standards of operation for all
aspects of solid waste handling, including:
             (1)  storage;
             (2)  collection;
             (3)  incineration;
             (4)  recycling;
             (5)  sanitary landfill; and
             (6)  composting.
       (b)  Before establishing the standards, the district must:
             (1)  hold public hearings after giving public notice in
the time and manner prescribed by board rule;
             (2)  consult with the commission to ensure that the
standards are not inconsistent with established criteria; and
             (3)  find that the standards are reasonably necessary
to protect the public health or welfare from water pollution or
other harm to the environment.
       (c)  To amend the standards, the district must follow the
same procedures required for establishing standards.
       (d)  The board may adopt rules reasonably necessary to
implement solid waste disposal standards. (V.A.C.S. Art. 4477-7k,
Secs. 4.19(a), (b), (c), (d).)
       Sec.21.304.MANAGEMENT OF MUNICIPAL SOLID WASTE.  (a)  The
district may assume the exclusive authority to exercise the powers
granted to a county under Section 361.165, Health and Safety Code,
including the power to issue licenses and exercise municipal solid
waste management authority.
       (b)  If the district exercises the licensing authority
granted under this section, the district must adopt and enforce
rules for the management of municipal solid waste.
       (c)  A rule adopted under this section must be:
             (1)  compatible with and at least as stringent as those
of the commission; and
             (2)  approved by the commission. (V.A.C.S. Art.
4477-7k, Sec. 4.19(e).)
       Sec.21.305.ON-SITE SEWAGE DISPOSAL SYSTEMS.  (a)  The
district may apply to the commission for designation as an
authorized agent to implement and enforce on-site sewage disposal
rules under Chapter 366, Health and Safety Code.
       (b)  If the district finds that due to the nature of the soil
or drainage in the area it is necessary to prevent water pollution
that may injure the public health, the board by rule may:
             (1)  provide limits on the number and kind of septic
tanks in an area defined by the rule;
             (2)  prohibit the use of septic tanks in the area; or
             (3)  prohibit the installation of new septic tanks in
the area.
       (c)  The board shall consult with the commission before the
adoption of a rule under Subsection (b).
       (d)  The board may not adopt a rule under Subsection (b)
without first holding a public hearing in the area to be affected by
the rule.
       (e)  The board by order may provide for a gradual and
systematic reduction of the number or kind of septic tanks in the
area and, by rule, may provide for a system to license and issue
permits for the installation of new septic tanks in the area
affected. If the board adopts a license and permit system, a person
may not install a septic tank in the area without a license or
permit from the board.  (V.A.C.S. Art. 4477-7k, Sec. 4.20.)
       Sec. 21.306.  ACQUISITION, CONSTRUCTION, AND OPERATION OF
DISPOSAL SYSTEMS.  The district may:
             (1)  acquire and provide by purchase, gift, or lease a
disposal system in the district or in a county adjacent to the
district;
             (2)  construct and provide a disposal system in the
district or in a county adjacent to the district;
             (3)  operate or sell a disposal system that it
constructs or acquires;
             (4)  contract with a person to operate and maintain a
disposal system belonging to the person; and
             (5)  contract with a person to train or supervise
employees of a disposal system.  (V.A.C.S. Art. 4477-7k, Secs.
1.03(9), 4.21.)
       Sec.21.307.WASTE DISPOSAL CONTRACTS.  (a)  The district
may contract to receive and to treat or dispose of waste from a
person in the district.
       (b)  The district shall set fees in the contract after
considering:
             (1)  the quality of the waste;
             (2)  the quantity of the waste;
             (3)  the difficulty encountered in treating or
disposing of the waste;
             (4)  operation and maintenance expenses and debt
retirement services; and
             (5)  any other reasonable consideration.  (V.A.C.S.
Art. 4477-7k, Sec. 4.22.)
[Sections 21.308-21.350 reserved for expansion]
SUBCHAPTER H.  GENERAL FINANCIAL PROVISIONS
       Sec.21.351.ACCOUNTING.  The district shall keep complete
and accurate accounts of its business transactions in accordance
with generally accepted methods of accounting.  (V.A.C.S. Art.
4477-7k, Sec. 3.14(a).)
       Sec.21.352.ANNUAL BUDGET.  (a)  The district's annual
budget must contain a complete financial statement, including a
statement of:
             (1)  the outstanding district obligations;
             (2)  the amount of cash on hand to the credit of each
district fund;
             (3)  the amount of money received by the district from
all sources during the previous year;
             (4)  the amount of money available to the district from
all sources during the ensuing year;
             (5)  the amount of the balances expected at the end of
the year in which the budget is being prepared;
             (6)  the estimated amount of revenue and balances
available to cover the proposed budget; and
             (7)  the estimated tax rate that will be required.
       (b)  The board may amend the budget after adoption.
       (c)  The district may not spend money for an expense not
included in the annual budget or an amendment to it unless the board
by order declares the expense to be necessary.  (V.A.C.S. Art.
4477-7k, Secs. 5.03(b), 5.04, 5.05.)
       Sec. 21.353.  SWORN STATEMENT REGARDING MONEY AND
DISBURSEMENTS.  As soon as practicable after the close of the fiscal
year, the district treasurer shall prepare for the board a sworn
statement of:
             (1)  the amount of money that belongs to the district;
and
             (2)  an account of the disbursement of that money.  
(V.A.C.S. Art. 4477-7k, Sec. 5.06.)
       Sec.21.354.DEPOSITORY.  (a)  The board shall name one or
more banks to serve as depository for the district's money.
       (b)  District money, other than money transmitted to a bank
for payment of bonds issued by the district, shall be deposited as
received with the depository bank and shall remain on deposit.
       (c)  Before the district deposits money in a bank in an
amount that exceeds the maximum amount secured by the Federal
Deposit Insurance Corporation, the bank must execute a bond or
provide other security in an amount sufficient to secure from loss
the amount of the district's deposits that exceed the amount
secured by the Federal Deposit Insurance Corporation.
       (d)  This section does not limit the board's power to invest
the district's money as provided by Subchapter A, Chapter 2256,
Government Code.  (V.A.C.S. Art. 4477-7k, Sec. 5.07.)
       Sec.21.355.INVESTMENTS.  (a)  The board may place district
money in a certificate of deposit of a state or national bank or a
state or federal savings and loan association in this state if the
money is secured in the manner required for the security of county
funds.
       (b)  The board by resolution may provide that an authorized
representative may invest and reinvest district money and provide
for money to be withdrawn from the appropriate district accounts
for investments on terms the board considers advisable.  (V.A.C.S.
Art. 4477-7k, Secs. 5.08(b), (c).)
       Sec.21.356.PAYMENT OF EXPENSES.  (a)  The board may pay:
             (1)  costs and expenses necessarily incurred in the
district's operation;
             (2)  legal fees; and
             (3)  other incidental expenses.
       (b)  The board may reimburse a person for money advanced for
a payment described by Subsection (a).
       (c)  A payment may be made from the proceeds of district
bonds, taxes, or fees or from other district revenue. (V.A.C.S.
Art. 4477-7k, Sec. 5.09.)
       Sec.21.357.BORROWING MONEY.  The district may borrow
money for any purpose authorized by this chapter. (V.A.C.S. Art.
4477-7k, Sec. 5.10.)
       Sec.21.358.PAYMENT OF JUDGMENTS.  A court of this state
that renders a money judgment against the district may require the
board to pay the judgment from money in the district depository that
is not dedicated to the payment of any district debt. (V.A.C.S. Art.
4477-7k, Sec. 3.17(c).)
[Sections 21.359-21.400 reserved for expansion]
SUBCHAPTER I. BONDS
       Sec.21.401.AUTHORITY TO ISSUE BONDS.  The board may issue
and sell bonds in the district's name to acquire land and construct
works, improvements, and waste disposal, treatment, and other
facilities, plants, pipelines, equipment, and appliances as
provided by this chapter.  (V.A.C.S. Art. 4477-7k, Sec. 6.01.)
       Sec.21.402.BOND PAYMENT.  The board may provide for the
payment of the principal of and interest on the bonds:
             (1)  from the imposition of property taxes on all
taxable property in the district;
             (2)  by pledging all or part of the designated revenue
from the ownership or operation of the district's works,
improvements, and facilities; or
             (3)  from a combination of the sources listed by
Subdivisions (1) and (2).  (V.A.C.S. Art. 4477-7k, Sec. 6.02.)
       Sec.21.403.BOND ELECTION.  (a)  The district may not issue
bonds until the issuance is approved by a majority of voters voting
in the district at an election held for that purpose.
       (b)  The board may order a bond election. The order calling
the election must state:
             (1)  the hours during which the polls will be open;
             (2)  the location of the polling places;
             (3)  the amount of bonds to be authorized; and
             (4)  the maximum maturity of the bonds.
       (c)  At an election to authorize bonds, the ballot must be
printed to provide for voting for or against the issuance of bonds
and the imposition of property taxes for payment of the bonds.
       (d)  If a majority of the votes cast at the election favor the
issuance of the bonds, the bonds may be issued by the board.  If a
majority of the votes cast at the election do not favor issuance of
the bonds, the bonds may not be issued.  (V.A.C.S. Art. 4477-7k,
Secs. 6.03(a), (b), (d), (e) (part).)
       Sec.21.404.MATURITY OF BONDS.  District bonds may mature
not more than 50 years after the date of issuance.  (V.A.C.S. Art.
4477-7k, Sec. 6.04(b) (part).)
       Sec.21.405.SIGNATURE.  District bonds must be signed and
executed as provided by the board in the resolution or order
authorizing the bonds.  (V.A.C.S. Art. 4477-7k, Sec. 6.04(d)
(part).)
       Sec.21.406.BOND PROVISIONS.  (a)  In an order or
resolution authorizing the issuance of bonds, including refunding
bonds, the board may:
             (1)  provide for the flow of money;
             (2)  provide for the establishment and maintenance of
an interest and sinking fund, a reserve fund, and other funds; and
             (3)  prohibit the further issuance of bonds or other
obligations payable from the pledged fees or reserve the right to
issue additional bonds to be secured by a pledge of and payable from
the pledged fees on a parity with or subordinate to the pledge in
support of the bonds being issued; and
             (4)  provide for other provisions as the board
determines.
       (b)  The board may adopt and have executed any other
proceeding or instrument necessary and convenient in the issuance
of bonds.  (V.A.C.S. Art. 4477-7k, Sec. 6.05.)
       Sec.21.407.MANDAMUS BY BONDHOLDERS. A holder of a
district bond is entitled, in addition to any other right or remedy
provided by law, to a writ of mandamus requiring the district and
its officials to observe and perform any covenant, condition, or
obligation provided by the order or resolution authorizing issuance
of the bond that the district fails to observe or perform,
including:
             (1)  a default in the payment of principal, interest,
or redemption price on the bond when due; and
             (2)  a failure to make payment into any fund created in
the order or resolution.  (V.A.C.S. Art. 4477-7k, Sec. 6.09.)
       Sec.21.408.REFUNDING BONDS. (a) The board may issue
refunding bonds to refund outstanding indebtedness issued or
assumed by the district.
       (b)  A refunding bond may be:
             (1)  sold, with the proceeds of the refunding bond
applied to the payment of the bonds to be refunded; or
             (2)  exchanged wholly or partly for not less than a
similar principal amount of outstanding indebtedness.  (V.A.C.S.
Art. 4477-7k, Secs. 6.07(a), (c) (part).)
       Sec.21.409.TAX EXEMPTION. District bonds, transactions
relating to the bonds, and profits made in the sale of the bonds are
exempt from state taxation or taxation by a municipality, county,
special district, or other political subdivision of the state.  
(V.A.C.S. Art. 4477-7k, Sec. 7.01 (part).)
[Sections 21.410-21.450 reserved for expansion]
SUBCHAPTER J.  TAXES
       Sec.21.451.AUTHORITY TO IMPOSE PROPERTY TAXES.  The board
annually may impose a tax on all property in the district subject to
district taxation.  (V.A.C.S. Art. 4477-7k, Secs. 7.02(a) (part),
7.03(b).)
       Sec.21.452.AMOUNT OF TAX.  (a)  The amount of tax imposed
by the board must be in an amount necessary to pay:
             (1)  the principal of and interest on district bonds;
and
             (2)  the expense of assessing and collecting taxes.
       (b)  The district may impose a maintenance and operating tax
in an amount not to exceed three cents on each $100 of assessed
valuation of property in the district to pay the district's
maintenance and operating expenses.  (V.A.C.S. Art. 4477-7k, Sec.
7.02 (part).)
       Sec.21.453.TAX RATE.  In setting the tax rate, the board
shall take into consideration the income of the district from
sources other than taxation. (V.A.C.S. Art. 4477-7k, Sec. 7.04
(part).)
       Sec.21.454.TAX COLLECTOR. The board may:
             (1)  provide for the appointment of a tax collector for
the district; or
             (2)  contract for the collection of taxes as provided
by the Tax Code.  (V.A.C.S. Art. 4477-7k, Sec. 7.05(b).)
       SECTION 1.02.  Subtitle A, Title 3, Special District Local
Laws Code, is amended by adding Chapters 1007, 1010, 1012, 1013,
1014, 1015, 1016, 1017, 1018, 1019, 1020, 1021, 1022, 1023, 1024,
1025, 1026, 1027, 1028, 1029, 1030, 1031, 1032, 1033, 1036, 1037,
1038, 1039, 1040, 1041, 1042, 1043, 1044, 1045, 1046, 1047, 1048,
1049, 1050, 1051, 1052, 1053, 1054, 1055, 1057, 1059, 1060, 1062,
1065, 1066, 1068, 1070, and 1071 to read as follows:
CHAPTER 1007.  BIG BEND REGIONAL HOSPITAL DISTRICT
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 1007.001.  DEFINITIONS
Sec. 1007.002.  AUTHORITY FOR CREATION
Sec. 1007.003.  DISTRICT TERRITORY
Sec. 1007.004.  DISTRICT SUPPORT AND MAINTENANCE NOT
                 STATE OBLIGATION
Sec. 1007.005.  RESTRICTION ON STATE FINANCIAL
                 ASSISTANCE
[Sections 1007.006-1007.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 1007.051.  BOARD ELECTION; TERM
Sec. 1007.052.  NOTICE OF ELECTION
Sec. 1007.053.  QUALIFICATIONS FOR OFFICE
Sec. 1007.054.  BOND; RECORD OF BOND AND OATH OR
                 AFFIRMATION OF OFFICE
Sec. 1007.055.  OFFICERS
Sec. 1007.056.  COMPENSATION; EXPENSES
Sec. 1007.057.  DISTRICT ADMINISTRATOR
Sec. 1007.058.  EMPLOYEES
Sec. 1007.059.  RETIREMENT BENEFITS
Sec. 1007.060.  MAINTENANCE OF RECORDS; PUBLIC
                 INSPECTION
[Sections 1007.061-1007.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 1007.101.  DISTRICT RESPONSIBILITY
Sec. 1007.102.  RESTRICTION ON POLITICAL SUBDIVISION
                 TAXATION AND DEBT
Sec. 1007.103.  MEDICAL SERVICES FOR PRESIDIO COUNTY
Sec. 1007.104.  MANAGEMENT AND CONTROL OF DISTRICT
Sec. 1007.105.  HOSPITAL SYSTEM
Sec. 1007.106.  RULES
Sec. 1007.107.  PURCHASING AND ACCOUNTING PROCEDURES
Sec. 1007.108.  DISTRICT PROPERTY, FACILITIES, AND
                 EQUIPMENT
Sec. 1007.109.  SURPLUS PROPERTY
Sec. 1007.110.  EMINENT DOMAIN
Sec. 1007.111.  GIFTS AND ENDOWMENTS
Sec. 1007.112.  CONTRACTS WITH POLITICAL SUBDIVISIONS
                 FOR HOSPITAL AND MEDICAL CARE
Sec. 1007.113.  PAYMENT FOR TREATMENT; PROCEDURE
[Sections 1007.114-1007.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 1007.151.  BUDGET
Sec. 1007.152.  PROPOSED BUDGET:  NOTICE AND HEARING
Sec. 1007.153.  FISCAL YEAR
Sec. 1007.154.  ANNUAL AUDIT
Sec. 1007.155.  DEPOSITORY
[Sections 1007.156-1007.200 reserved for expansion]
SUBCHAPTER E. BONDS
Sec. 1007.201.  BONDS
Sec. 1007.202.  TAX TO PAY BONDS
Sec. 1007.203.  BOND ELECTION
Sec. 1007.204.  MATURITY OF BONDS
Sec. 1007.205.  EXECUTION OF BONDS
[Sections 1007.206-1007.250 reserved for expansion]
SUBCHAPTER F. TAXES
Sec. 1007.251.  IMPOSITION OF AD VALOREM TAX
Sec. 1007.252.  TAX RATE
Sec. 1007.253.  TAX ASSESSOR-COLLECTOR
CHAPTER 1007.  BIG BEND REGIONAL HOSPITAL DISTRICT
SUBCHAPTER A.  GENERAL PROVISIONS
       Sec.1007.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Big Bend Regional Hospital
District. (New.)
       Sec.1007.002.AUTHORITY FOR CREATION. The district is
created under Section 9, Article IX, Texas Constitution. (Acts
59th Leg., R.S., Ch. 643, Sec. 1.)
       Sec.1007.003.DISTRICT TERRITORY.  The boundaries of the
district are coextensive with the boundaries of:
             (1)  Presidio County, including all "cut over" or
"banco" land on the north side of the Rio Grande; and
             (2)  Brewster County. (Acts 59th Leg., R.S., Ch. 643,
Secs. 2(a), 2A(h) (part).)
       Sec. 1007.004.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE
OBLIGATION. The support and maintenance of the district's hospital
system and any indebtedness incurred by the district under this
chapter may not become a charge against or obligation of this state.
(Acts 59th Leg., R.S., Ch. 643, Sec. 18 (part).)
       Sec.1007.005.RESTRICTION ON STATE FINANCIAL ASSISTANCE.
The legislature may not make a direct appropriation for the
construction, maintenance, or improvement of a district facility.
(Acts 59th Leg., R.S., Ch. 643, Sec. 18 (part).)
[Sections 1007.006-1007.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
       Sec.1007.051.BOARD ELECTION; TERM. (a) The board
consists of five directors elected from single-member voting
subdistricts established by the board.
       (b)  The board shall revise each single-member subdistrict
after each federal decennial census to reflect population changes.
At the first election after the subdistricts are revised, a new
director shall be elected from each subdistrict. The directors
shall draw lots to determine which two directors shall serve
two-year terms and which three directors shall serve four-year
terms.
       (c)  Directors serve staggered four-year terms.
       (d)  An election shall be held on the uniform election date
in May of each even-numbered year to elect the appropriate number of
directors. (Acts 59th Leg., R.S., Ch. 643, Secs. 2B(c) (part),
2C(c), (g), 7(b) (part).)
       Sec.1007.052.NOTICE OF ELECTION. At least 35 days before
the date of an election of directors, notice of the election must be
published one time in a newspaper with general circulation in the
district. (Acts 59th Leg., R.S., Ch. 643, Sec. 7(c), as added by
Acts 72nd Leg., R.S., Ch. 89.)
       Sec.1007.053.QUALIFICATIONS FOR OFFICE. (a) A person may
not be a candidate for or serve as a director unless the person is:
             (1)  a district resident; and
             (2)  a qualified voter.
       (b)  A person is not eligible to serve as a director if the
person is:
             (1)  a district employee;
             (2)  a party to a contract with the district to perform
services for compensation; or
             (3)  a physician who has staff privileges at a district
facility.
       (c)  A person who is elected from a single-member subdistrict
or who is appointed to fill a vacancy for a single-member
subdistrict must reside in that subdistrict. (Acts 59th Leg.,
R.S., Ch. 643, Secs. 2C(h) (part), 7B(a), (c).)
       Sec. 1007.054.  BOND; RECORD OF BOND AND OATH OR AFFIRMATION
OF OFFICE. (a) Each director shall qualify for office by executing
a good and sufficient commercial bond for $1,000 that is:
             (1)  payable to the district; and
             (2)  conditioned on the faithful performance of the
director's duties.
       (b)  The district shall pay for the directors' bonds.
       (c)  Each director's bond and constitutional oath or
affirmation of office shall be deposited in the district depository
for safekeeping. (Acts 59th Leg., R.S., Ch. 643, Sec. 8(a).)
       Sec.1007.055.OFFICERS. The board shall elect from among
its members a president, secretary, and treasurer at the first
meeting of the board after each directors' election. (Acts 59th
Leg., R.S., Ch. 643, Sec. 8(b).)
       Sec.1007.056.COMPENSATION; EXPENSES. A director serves
without compensation but is entitled to reimbursement for necessary
expenses incurred in the performance of official duties. (Acts 59th
Leg., R.S., Ch. 643, Sec. 8(c).)
       Sec.1007.057.DISTRICT ADMINISTRATOR. (a) The board may
employ a district administrator to manage the operations of the
hospital system.
       (b)  The district administrator may employ necessary
personnel to perform the services provided by the system.  (Acts
59th Leg., R.S., Ch. 643, Sec. 12(e) (part).)
       Sec.1007.058.EMPLOYEES. The board may employ an attorney,
general manager, bookkeeper, architect, and other employees
necessary for the efficient operation of the district.  (Acts 59th
Leg., R.S., Ch. 643, Sec. 12(e) (part).)
       Sec.1007.059.RETIREMENT BENEFITS. The board may enter
into any contract or agreement with this state or the federal
government that is required to establish or continue a retirement
program for the benefit of the district's employees. (Acts 59th
Leg., R.S., Ch. 643, Sec. 12(h).)
       Sec.1007.060.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.  
The board shall:
             (1)  maintain all district records, including books,
accounts, notices, minutes, and other matters of the district and
its operation, at the district office; and
             (2)  make those records available for public inspection
at reasonable times.  (Acts 59th Leg., R.S., Ch. 643, Sec. 12(b).)
[Sections 1007.061-1007.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.1007.101.DISTRICT RESPONSIBILITY. The district shall
provide all necessary hospital and medical care for the district's
needy inhabitants. (Acts 59th Leg., R.S., Ch. 643, Sec. 3 (part).)
       Sec. 1007.102.  RESTRICTION ON POLITICAL SUBDIVISION
TAXATION AND DEBT. A political subdivision of this state, other
than the district, may not impose a tax or issue bonds or other
obligations to provide hospital service or medical care in the
district. (Acts 59th Leg., R.S., Ch. 643, Sec. 3 (part).)
       Sec.1007.103.MEDICAL SERVICES FOR PRESIDIO COUNTY. (a)  
The board shall periodically review the feasibility and
desirability of operating a hospital in Presidio County.
       (b)  The district shall operate a facility that provides
medical services in Presidio County. At a minimum, the facility
must provide outpatient medical services to the district's
residents.
       (c)  The board may contract or otherwise cooperate with
another entity to provide the services required by Subsection (b).
(Acts 59th Leg., R.S., Ch. 643, Secs. 2E(b) (part), 2F(a) (part),
(b).)
       Sec.1007.104.MANAGEMENT AND CONTROL OF DISTRICT. The
management and control of the district is vested in the board, and
the board has full power to manage and control the district. (Acts
59th Leg., R.S., Ch. 643, Secs. 2E(a) (part), 12(a) (part).)
       Sec.1007.105.HOSPITAL SYSTEM. The district has the
responsibility to establish a hospital or hospital system within
its boundaries to provide hospital and medical care to the
district's residents.  (Acts 59th Leg., R.S., Ch. 643, Sec. 3
(part).)
       Sec.1007.106.RULES. (a)  The board shall adopt rules for
the efficient operation of the district, including district
facilities.
       (b)  The board shall:
             (1)  publish the rules in book form; and
             (2)  provide copies to interested persons on request at
district expense. (Acts 59th Leg., R.S., Ch. 643, Sec. 12(c).)
       Sec.1007.107.PURCHASING AND ACCOUNTING PROCEDURES. The
board may prescribe the method of making purchases and expenditures
and the manner of accounting and control used by the district.
(Acts 59th Leg., R.S., Ch. 643, Sec. 12(e) (part).)
       Sec. 1007.108.  DISTRICT PROPERTY, FACILITIES, AND
EQUIPMENT. The board may sell, lease, or otherwise dispose of
property, including facilities or equipment, for the district. The
sale or other disposal must be at a public sale and at a price and on
terms the board determines are most advantageous to the district.
(Acts 59th Leg., R.S., Ch. 643, Sec. 12(i).)
       Sec.1007.109.SURPLUS PROPERTY. The board may donate to
another governmental entity or to a charitable organization any
surplus personal property or equipment if the donation serves a
public purpose and is accompanied by adequate consideration.  (Acts
59th Leg., R.S., Ch. 643, Sec. 12(j).)
       Sec.1007.110.EMINENT DOMAIN. (a) The district may
exercise the power of eminent domain to acquire a fee simple or
other interest in any real, personal, or mixed property located in
district territory if the interest is necessary or convenient for
the district to exercise a power or duty conferred on the district
by this chapter.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code, except the
district is not required to deposit in the trial court money or a
bond as provided by Section 21.021(a), Property Code.
       (c)  In a condemnation proceeding, the district is not
required to:
             (1)  pay in advance or provide a bond or other security
for costs in the trial court; or
             (2)  provide a bond for costs or a supersedeas bond on
an appeal or writ of error. (Acts 59th Leg., R.S., Ch. 643, Sec.
15.)
       Sec.1007.111.GIFTS AND ENDOWMENTS. The board may accept
for the district a gift or endowment to be held in trust and
administered by the board under the directions, limitations, or
other provisions prescribed in writing by the donor that are not
inconsistent with the proper management of the district. (Acts
59th Leg., R.S., Ch. 643, Sec. 12(f).)
       Sec. 1007.112.  CONTRACTS WITH POLITICAL SUBDIVISIONS FOR
HOSPITAL AND MEDICAL CARE. The board may contract with another
political subdivision to provide hospital and medical care for
needy persons who reside outside the district.  (Acts 59th Leg.,
R.S., Ch. 643, Sec. 12(g).)
       Sec.1007.113.PAYMENT FOR TREATMENT; PROCEDURE. (a)  A
person who resides in the district is entitled to receive necessary
medical and hospital care regardless of whether the person has the
ability to pay for the care.
       (b)  The board by rule shall adopt a procedure for
determining:
             (1)  the ability of a patient to pay for the patient's
medical and hospital care; and
             (2)  the amount each patient is required to pay.  (Acts
59th Leg., R.S., Ch. 643, Sec. 14.)
[Sections 1007.114-1007.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
       Sec.1007.151.BUDGET.  The board shall prepare a budget
that includes:
             (1)  proposed expenditures and disbursements;
             (2)  estimated receipts and collections for the next
fiscal year; and
             (3)  the amount of taxes required to be imposed to meet
the proposed budget. (Acts 59th Leg., R.S., Ch. 643, Sec. 13(b).)
       Sec.1007.152.PROPOSED BUDGET: NOTICE AND HEARING. (a)  
The board shall hold a public hearing on the proposed budget.
       (b)  Notice of the hearing must be published at least once in
a newspaper of general circulation in the district not later than
the 10th day before the date of the hearing.
       (c)  Any person who owns taxable property in the district and
has rendered that property for taxation is entitled to:
             (1)  appear at the hearing; and
             (2)  be heard regarding any item in the proposed
budget.  (Acts 59th Leg., R.S., Ch. 643, Secs. 13(c), (d).)
       Sec.1007.153.FISCAL YEAR. The district's fiscal year is
from October 1 to September 30. (Acts 59th Leg., R.S., Ch. 643,
Sec. 13(a).)
       Sec.1007.154.ANNUAL AUDIT. (a)  The board annually shall
require an independent audit of the district's books and records.
       (b)  Not later than December 1 each year, the board shall
file a copy of the audit with:
             (1)  the comptroller; and
             (2)  the district. (Acts 59th Leg., R.S., Ch. 643, Sec.
12(d).)
       Sec.1007.155.DEPOSITORY. (a)  The board by resolution
shall designate a bank in Brewster or Presidio County as the
district's depository.  The designated bank serves for two years
and until a successor is designated.
       (b)  All district money shall be deposited in the depository
and secured in the manner provided for securing county funds.  (Acts
59th Leg., R.S., Ch. 643, Sec. 16.)
[Sections 1007.156-1007.200 reserved for expansion]
SUBCHAPTER E. BONDS
       Sec.1007.201.BONDS. The district may issue bonds to:
             (1)  purchase, construct, acquire, repair, or renovate
buildings or improvements; and
             (2)  equip buildings for hospital purposes. (Acts 59th
Leg., R.S., Ch. 643, Secs. 10(a) (part), 11(a) (part).)
       Sec.1007.202.TAX TO PAY BONDS. The board may issue bonds
under Section 1007.201 only if the board imposes an ad valorem tax
at a rate sufficient to create an interest and sinking fund to pay
the principal of and interest on the bonds as the bonds mature.
(Acts 59th Leg., R.S., Ch. 643, Sec. 11(c).)
       Sec.1007.203.BOND ELECTION. (a)  The board may issue
bonds under Section 1007.201 only if the bonds are authorized by a
majority of the district voters voting in an election held for that
purpose.  The total face value of the bonds may not exceed the
amount specified in the election order.
       (b)  The board may order a bond election at any time.
       (c)  The order calling an election must include:
             (1)  the time of the election;
             (2)  the location of the polling places;
             (3)  the form of the ballots;
             (4)  the presiding judge for each polling place;
             (5)  the purpose of the bond issuance;
             (6)  the amount of the proposed bond issuance;
             (7)  the maximum interest rate of the bonds; and
             (8)  the maximum maturity of the bonds.
       (d)  A substantial copy of the election order shall be
published in a newspaper of general circulation in the district
once a week for two consecutive weeks before the date of the
election.  The first notice must be published not later than the
14th day immediately preceding the day of the election.
       (e)  A copy of the election results must be filed with the
county clerk and become a public record.  (Acts 59th Leg., R.S., Ch.
643, Secs. 4(c), (d), (e) (part), 10(a) (part), (b), (d), 11(a)
(part).)
       Sec.1007.204.MATURITY OF BONDS.  District bonds must
mature not later than 40 years after the date of issuance. (Acts
59th Leg., R.S., Ch. 643, Sec. 10(c) (part).)
       Sec.1007.205.EXECUTION OF BONDS. (a)  The board president
shall execute the bonds in the district's name.
       (b)  The board secretary shall countersign the bonds. (Acts
59th Leg., R.S., Ch. 643, Sec. 11(b) (part).)
[Sections 1007.206-1007.250 reserved for expansion]
SUBCHAPTER F. TAXES
       Sec.1007.251.IMPOSITION OF AD VALOREM TAX. (a)  The board
shall impose a tax on all property in the district subject to
district taxation.
       (b)  The tax may be used only to:
             (1)  pay the interest on and create a sinking fund for
bonds issued under this chapter;
             (2)  provide for the operation and maintenance of the
district and hospital system;
             (3)  make improvements and additions to the hospital
system; and
             (4)  acquire sites for additions to the hospital
system. (Acts 59th Leg., R.S., Ch. 643, Secs. 9(a) (part), (c).)
       Sec.1007.252.TAX RATE. The board may impose the tax at a
rate not to exceed 75 cents on each $100 valuation of all taxable
property in the district. (Acts 59th Leg., R.S., Ch. 643, Sec. 9(a)
(part).)
       Sec.1007.253.TAX ASSESSOR-COLLECTOR. The tax
assessor-collector for Brewster or Presidio County shall collect
taxes for the district. (Acts 59th Leg., R.S., Ch. 643, Sec. 9(d)
(part).)
CHAPTER 1010. BURLESON COUNTY HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1010.001.  DEFINITIONS
Sec. 1010.002.  AUTHORITY FOR OPERATION
Sec. 1010.003.  ESSENTIAL PUBLIC FUNCTION
Sec. 1010.004.  DISTRICT TERRITORY
Sec. 1010.005.  CORRECTION OF INVALID PROCEDURES
[Sections 1010.006-1010.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 1010.051.  BOARD ELECTION; TERM
Sec. 1010.052.  QUALIFICATIONS FOR OFFICE
Sec. 1010.053.  BOND; RECORD OF BOND AND OATH OR
                 AFFIRMATION OF OFFICE
Sec. 1010.054.  BOARD VACANCY
Sec. 1010.055.  OFFICERS
Sec. 1010.056.  COMPENSATION; EXPENSES
Sec. 1010.057.  VOTING REQUIREMENT
Sec. 1010.058.  MEETINGS
Sec. 1010.059.  PERSONNEL
Sec. 1010.060.  DUTIES OF MANAGER
Sec. 1010.061.  RETIREMENT, DISABILITY, AND DEATH
                 COMPENSATION FUND
Sec. 1010.062.  MAINTENANCE OF RECORDS; PUBLIC
                 INSPECTION
Sec. 1010.063.  SEAL
[Sections 1010.064-1010.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 1010.101.  DISTRICT RESPONSIBILITY
Sec. 1010.102.  RESTRICTION ON POLITICAL SUBDIVISION
                 TAXATION AND DEBT
Sec. 1010.103.  MANAGEMENT AND CONTROL
Sec. 1010.104.  HOSPITAL SYSTEM
Sec. 1010.105.  DISTRICT ELECTIONS
Sec. 1010.106.  BYLAWS
Sec. 1010.107.  EMINENT DOMAIN
Sec. 1010.108.  COST OF RELOCATING OR ALTERING PROPERTY
Sec. 1010.109.  GIFTS AND ENDOWMENTS
Sec. 1010.110.  OPERATING AND MANAGEMENT CONTRACTS
Sec. 1010.111.  CONTRACT IN NAME OF DISTRICT
Sec. 1010.112.  CONTRACTS FOR CARE AND TRAINING
Sec. 1010.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                 FOR INVESTIGATORY OR OTHER SERVICES
Sec. 1010.114.  MISCELLANEOUS CONTRACT REQUIREMENTS
Sec. 1010.115.  LEASES
Sec. 1010.116.  PURCHASING
Sec. 1010.117.  DISPOSITION OF PROPERTY
Sec. 1010.118.  PAYMENT FOR TREATMENT; PROCEDURES
Sec. 1010.119.  REIMBURSEMENT FOR SERVICES TO
                 NONRESIDENTS
Sec. 1010.120.  AUTHORITY TO SUE AND BE SUED; SERVICE
                 OF PROCESS
[Sections 1010.121-1010.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 1010.151.  BUDGET
Sec. 1010.152.  AMENDMENTS TO BUDGET
Sec. 1010.153.  FISCAL YEAR
Sec. 1010.154.  ANNUAL AUDIT
Sec. 1010.155.  DEPOSITORY
Sec. 1010.156.  INVESTMENT OF DISTRICT MONEY
[Sections 1010.157-1010.200 reserved for expansion]
SUBCHAPTER E. BONDS
Sec. 1010.201.  GENERAL OBLIGATION BONDS
Sec. 1010.202.  TAX TO PAY GENERAL OBLIGATION BONDS
Sec. 1010.203.  REVENUE AND SPECIAL OBLIGATION BONDS
Sec. 1010.204.  BOND ELECTION
Sec. 1010.205.  MATURITY OF BONDS
Sec. 1010.206.  EXECUTION OF BONDS
Sec. 1010.207.  BONDS EXEMPT FROM TAXATION
Sec. 1010.208.  REFUNDING OR FUNDING AND RETIRING
                 CERTAIN OLDER BONDS
[Sections 1010.209-1010.250 reserved for expansion]
SUBCHAPTER F. TAXES
Sec. 1010.251.  TAX ELECTION
Sec. 1010.252.  IMPOSITION OF AD VALOREM TAX
Sec. 1010.253.  TAX RATE
Sec. 1010.254.  ASSESSMENT AND COLLECTION BY COUNTY TAX
                 ASSESSOR-COLLECTOR
Sec. 1010.255.  ASSESSMENT AND COLLECTION BY DISTRICT
                 TAX ASSESSOR-COLLECTOR
Sec. 1010.256.  ASSESSMENT AND COLLECTION BY TAX
                 ASSESSOR-COLLECTOR OF ANOTHER
                 POLITICAL SUBDIVISION
CHAPTER 1010. BURLESON COUNTY HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.1010.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Burleson County Hospital
District.  (Acts 65th Leg., R.S., Ch. 726, Secs. 1 (part), 5(a)
(part); New.)
       Sec.1010.002.AUTHORITY FOR OPERATION. The district
operates under and has the rights, powers, and duties provided by
Section 9, Article IX, Texas Constitution, and this chapter.  (Acts
65th Leg., R.S., Ch. 726, Secs. 1 (part), 3.)
       Sec.1010.003.ESSENTIAL PUBLIC FUNCTION.  The district is
a governmental agency performing an essential public function in
carrying out the purposes of this chapter. (Acts 65th Leg., R.S.,
Ch. 726, Secs. 13 (part), 30 (part).)
       Sec.1010.004.DISTRICT TERRITORY. The boundaries of the
district are coextensive with the boundaries of Burleson County.  
(Acts 65th Leg., R.S., Ch. 726, Sec. 2.)
       Sec.1010.005.CORRECTION OF INVALID PROCEDURES. If a
court holds that any procedure under this chapter violates the
constitution of this state or of the United States, the board by
resolution or order may provide an alternative procedure that
conforms with the constitution.  (Acts 65th Leg., R.S., Ch. 726,
Sec. 31 (part).)
[Sections 1010.006-1010.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
       Sec.1010.051.BOARD ELECTION; TERM. (a)  The district is
governed by a board of 11 elected directors.
       (b)  Unless four-year terms are established under Section
285.081, Health and Safety Code:
             (1)  directors serve two-year terms; and
             (2)  the terms of the five directors elected to
even-numbered places expire in even-numbered years and the terms of
the six directors elected to odd-numbered places expire in
odd-numbered years.  (Acts 65th Leg., R.S., Ch. 726, Sec. 8 (part).)
       Sec.1010.052.QUALIFICATIONS FOR OFFICE.  To serve as a
director, a person must be:
             (1)  at least 21 years of age; and
             (2)  a qualified voter of the district.  (Acts 65th
Leg., R.S., Ch. 726, Sec. 8 (part).)
       Sec. 1010.053.  BOND; RECORD OF BOND AND OATH OR AFFIRMATION
OF OFFICE. (a)  As soon as practicable after a director is elected
or appointed, the director shall execute a bond for $5,000 that is:
             (1)  approved by the board;
             (2)  payable to the district; and
             (3)  conditioned on the faithful performance of the
director's duties.
       (b)  Each director's bond and constitutional oath or
affirmation of office shall be filed with the district and retained
in the district's records.  (Acts 65th Leg., R.S., Ch. 726, Secs.
12(h), (i), (k).)
       Sec.1010.054.BOARD VACANCY. If a vacancy occurs in the
office of director, the board shall promptly appoint a director for
the unexpired term. (Acts 65th Leg., R.S., Ch. 726, Sec. 8 (part).)
       Sec.1010.055.OFFICERS. (a) The board shall elect from
its membership a president, a vice president, a secretary, a
treasurer, and any other officers the board considers necessary.
The district's depository bank may be designated as district
treasurer.
       (b)  The president is the district's chief executive officer
and shall preside at all board meetings. The vice president shall
act as president if the president is absent or disabled.
       (c)  The secretary shall:
             (1)  act as president if both the president and vice
president are absent or disabled;
             (2)  act as secretary of the board; and
             (3)  see that all district records and books are
properly kept.
       (d)  The board may appoint an assistant or deputy secretary
to assist the secretary. The assistant or deputy secretary may
certify the authenticity of any district record, including any
proceeding related to district contracts or bonds or other
indebtedness.
       (e)  The board may require an officer to execute a bond that
is:
             (1)  payable to the district; and
             (2)  conditioned on the faithful performance of the
officer's duties.
       (f)  If a vacancy occurs in an office, the board shall
appoint a replacement for the unexpired term.  (Acts 65th Leg.,
R.S., Ch. 726, Secs. 5(b), 8 (part), 9(b), (c), (d), 12(d) (part).)
       Sec.1010.056.COMPENSATION; EXPENSES.  A director serves
without compensation but may be reimbursed for travel or other
expenses incurred on the district's behalf if:
             (1)  the director presents a verified statement; and
             (2)  the board approves the expenses. (Acts 65th Leg.,
R.S., Ch. 726, Sec. 12(g).)
       Sec.1010.057.VOTING REQUIREMENT. A concurrence of six
directors is sufficient in any matter relating to district
business. (Acts 65th Leg., R.S., Ch. 726, Sec. 9(a) (part).)
       Sec.1010.058.MEETINGS. (a)  The board:
             (1)  shall hold the board's meetings at the board's
designated meeting place;
             (2)  may establish a schedule of regular meetings to
conduct district business; and
             (3)  may hold special meetings at other times as
district business requires.
       (b)  Except as provided by this section, Chapter 551,
Government Code, applies to board meetings.
       (c)  If there is an emergency or urgent public necessity,
posting of notice of a board meeting is not required.
       (d)  Failure to post notice does not affect the validity of
an action taken at a regular board meeting. Failure to post notice
may affect the validity of an action taken at a special meeting
unless the board declares, by an action taken at the special
meeting, that an emergency exists.
       (e)  Any interested person may attend a board meeting. (Acts
65th Leg., R.S., Ch. 726, Sec. 11 (part).)
       Sec.1010.059.PERSONNEL. (a) The board shall employ or
contract with all persons the board considers necessary or
advisable to conduct district affairs, including doctors, nurses,
medical technicians, engineers, architects, attorneys, financial
advisors, a hospital administrator, bookkeepers, auditors, and
secretaries.
       (b)  The board shall determine the powers, duties, terms of
office, and compensation of all employees and consultants by
contract or by resolution or order of the board.  The board may
delegate to any district employee any power that the board
considers advisable.
       (c)  The board may remove any employee.
       (d)  The board may require an employee to execute a bond
payable to the district and conditioned on the faithful performance
of the employee's duties.  (Acts 65th Leg., R.S., Ch. 726, Secs.
12(a) (part), (b), (c), (d) (part).)
       Sec.1010.060.DUTIES OF MANAGER. The district may
delegate to the manager the power to:
             (1)  manage and operate the district hospital or
hospital system or a portion of the district hospital or hospital
system; and
             (2)  employ and discharge employees or appoint and
remove doctors from the staff. (Acts 65th Leg., R.S., Ch. 726, Sec.
15(b) (part).)
       Sec. 1010.061.  RETIREMENT, DISABILITY, AND DEATH
COMPENSATION FUND.  (a) The board may:
             (1) provide for and administer a retirement,
disability, and death compensation fund for district officers and
employees; and
             (2)  adopt a plan to effectuate the purpose of this
section, including the forms of insurance and annuities that the
board considers advisable.
       (b)  The board may change a plan or rule after notice to the
employees and a hearing.
       (c)  As the board considers advisable, the board may invest
money provided:
             (1)  from the compensation of officers and employees
participating in the fund and plan authorized by this section; and
             (2)  by the district for the retirement, disability,
and death compensation fund after the money has been received by the
district.
       (d)  The board may invest the money in:
             (1)  bonds of the United States, this state, or any
political subdivision of this state;
             (2)  bonds issued by any agency of the United States if
the payment of the principal and interest is guaranteed by the
United States; and
             (3)  life insurance policies, endowment or annuity
contracts, or interest-bearing certificates of legal reserve life
insurance companies authorized to write the contracts in this
state.
       (e)  A sufficient amount of money shall be kept on hand to
meet the immediate payment of amounts likely to become due each year
out of the fund as determined by the board.
       (f)  The recipients or beneficiaries of the fund are not
eligible for any other pension, retirement fund, or direct aid from
this state unless the fund created under this chapter is released to
the state as a condition precedent to receiving the other pension or
aid or the joining of any other system.
       (g)  The board may:
             (1)  include hospitalization and medical benefits to
district officers and employees as part of the compensation
currently paid to the officers and employees;
             (2)  adopt a plan or rule in connection with the
benefits provided under Subdivision (1); or
             (3)  amend or change a plan or rule adopted under
Subdivision (2) as the board determines.
       (h)  The board may contract with the state and federal
governments as necessary to establish and continue a retirement
program for the benefit of the district's employees. (Acts 65th
Leg., R.S., Ch. 726, Secs. 16(a), (b), (c), (d), (e), (g).)
       Sec.1010.062.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.
(a)  The district shall maintain records and accounts in which full
and proper entries are made of:
             (1)  all dealings, transactions, and business matters
that in any way affect or relate to the district; and
             (2)  the allocation and application of all revenue
relating to the dealings, transactions, and business matters.
       (b)  The district records, including the audit report, shall
be available for public inspection at reasonable hours and under
reasonable circumstances. (Acts 65th Leg., R.S., Ch. 726, Sec. 17
(part).)
       Sec.1010.063.SEAL.  The board shall adopt a seal for the
district. (Acts 65th Leg., R.S., Ch. 726, Sec. 12(f).)
[Sections 1010.064-1010.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.1010.101.DISTRICT RESPONSIBILITY. The district has
full responsibility for providing medical and hospital care for the
district's needy inhabitants. (Acts 65th Leg., R.S., Ch. 726, Sec.
4 (part).)
       Sec. 1010.102.  RESTRICTION ON POLITICAL SUBDIVISION
TAXATION AND DEBT. A political subdivision other than the district
may not impose a tax or issue bonds or other obligations for
hospital purposes or to provide medical care in the district. (Acts
65th Leg., R.S., Ch. 726, Sec. 4 (part).)
       Sec.1010.103.MANAGEMENT AND CONTROL.  The board shall
manage and control all district affairs.  (Acts 65th Leg., R.S., Ch.
726, Sec. 12(a) (part).)
       Sec.1010.104.HOSPITAL SYSTEM. (a)  The district shall
provide for the establishment of a hospital or hospital system in
the district by:
             (1)  purchasing, constructing, acquiring, repairing,
or renovating buildings and improvements for hospital and medical
care purposes; and
             (2)  equipping the buildings and improvements for those
purposes.
       (b)  The district shall provide for the administration,
maintenance, and operation of the hospital or hospital system to
furnish hospital and medical care in the district.
       (c)  The board shall determine the type, number, and location
of buildings required to maintain an adequate hospital system.
       (d)  The hospital system may include:
             (1)  domiciliary hospital care of the sick or injured;
             (2)  outpatient clinics;
             (3)  dispensaries;
             (4)  geriatric domiciliary care;
             (5)  convalescent home facilities;
             (6)  necessary nurses;
             (7)  domiciliaries and training centers;
             (8)  blood banks;
             (9)  community health centers;
             (10)  research centers or laboratories; and
             (11)  any other facilities that the board considers
necessary for hospital care.  (Acts 65th Leg., R.S., Ch. 726, Secs.
4 (part), 15 (part).)
       Sec.1010.105.DISTRICT ELECTIONS. (a)  Each district
election shall be called by resolution or order of the board. The
order or resolution must specify:
             (1)  the date of the election;
             (2)  the proposition to be submitted and voted on;
             (3)  the polling place; and
             (4)  any other matter considered necessary or advisable
by the board.
       (b)  Notice of each district election shall be given by
publishing one time a substantial copy of the election resolution
or order in a newspaper of general circulation in the district at
least 20 days before the date set for the election.
       (c)  The board shall declare the results of a district
election.  (Acts 65th Leg., R.S., Ch. 726, Sec. 6 (part).)
       Sec.1010.106.BYLAWS. The board may adopt bylaws to
govern:
             (1)  the time, place, and manner of conducting board
meetings;
             (2)  the powers, duties, and responsibilities of the
board's officers and employees;
             (3)  the disbursement of money by check, draft, or
warrant;
             (4)  the appointment and authority of board committees;
             (5)  the keeping of records and accounts; and
             (6)  other matters the board considers appropriate.
(Acts 65th Leg., R.S., Ch. 726, Sec. 10.)
       Sec.1010.107.EMINENT DOMAIN. (a) The district may
exercise the power of eminent domain to acquire a fee simple or
other interest in any type of property located in district
territory if the interest is necessary or convenient for the
district to exercise a right, power, or privilege conferred by this
chapter.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code, except the
district is not required to deposit in the trial court money or a
bond as provided by Section 21.021(a), Property Code.
       (c)  In a condemnation proceeding brought by the district,
the district is not required to:
             (1)  pay in advance or provide bond or other security
for costs in the trial court;
             (2)  provide bond for the issuance of a temporary
restraining order or a temporary injunction; or
             (3)  provide a bond for costs or a supersedeas bond on
an appeal or writ of error. (Acts 65th Leg., R.S., Ch. 726, Sec.
26(a).)
       Sec.1010.108.COST OF RELOCATING OR ALTERING PROPERTY.  In
exercising the power of eminent domain, if the board requires
relocating, raising, lowering, rerouting, changing the grade of, or
altering the construction of any railroad, electric transmission,
telegraph or telephone lines, conduits, poles, or facilities, or
pipeline, the district must bear the actual cost of relocating,
raising, lowering, rerouting, changing the grade, or altering the
construction to provide comparable replacement without enhancement
of facilities, after deducting the net salvage value derived from
the old facility. (Acts 65th Leg., R.S., Ch. 726, Sec. 26(b).)
       Sec.1010.109.GIFTS AND ENDOWMENTS. The board may accept
for the district a gift or endowment to be held in trust and
administered by the board for the purposes and under the
directions, limitations, or other provisions prescribed in writing
by the donor that are not inconsistent, in the board's opinion, with
the proper management and objectives of the district. (Acts 65th
Leg., R.S., Ch. 726, Sec. 29.)
       Sec.1010.110.OPERATING AND MANAGEMENT CONTRACTS. The
district may enter into an operating or management contract with
any person regarding any district hospital or any part of the
district hospital system. (Acts 65th Leg., R.S., Ch. 726, Sec.
15(b) (part).)
       Sec.1010.111.CONTRACT IN NAME OF DISTRICT. The district
shall contract in the name of the district.  (Acts 65th Leg., R.S.,
Ch. 726, Sec. 13 (part).)
       Sec.1010.112.CONTRACTS FOR CARE AND TRAINING.  (a)  The
district may contract with this state, including agencies of this
state, or the United States for:
             (1)  the rendition of hospital or medical care; and
             (2)  the training of doctors, nurses, and other health
care disciplines.
       (b)  The board may contract with any lessee of the district's
hospitals or any other person to provide hospital care to needy
district inhabitants for payments and terms and under conditions
that the board considers to be in the district's best interests.  
(Acts 65th Leg., R.S., Ch. 726, Sec. 14 (part).)
       Sec. 1010.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
INVESTIGATORY OR OTHER SERVICES.  The board may contract with any
political subdivision or governmental agency for investigatory or
other services as to:
             (1)  the hospital or medical needs of district
inhabitants; or
             (2)  the hospital or medical care of the inhabitants of
the other political subdivision or governmental agency.  (Acts 65th
Leg., R.S., Ch. 726, Sec. 14 (part).)
       Sec.1010.114.MISCELLANEOUS CONTRACT REQUIREMENTS. (a)
The board may not enter into a contract calling for or requiring the
expenditure, payment, or creation or imposition of an obligation or
liability of any nature on the district in excess of $5,000, unless
the proposed contract is first submitted to competitive bids.
       (b)  Notice of the time and place the contract will be
awarded must be published once a week for two consecutive weeks in a
newspaper of general circulation in the district.  The first notice
must be published not later than the 14th day before the date set
for the receipt of bids.  The notice must specify that the plans and
specifications for the proposed project, or the specifications for
the machinery, supplies, equipment, or materials to be purchased,
are on file with a designated district representative for
examination without charge.
       (c)  A contract for construction or the purchase of
materials, equipment, supplies, or machinery awarded under this
chapter shall be awarded to the lowest responsible bidder and may be
awarded on a lump-sum basis or on a unit price basis, as the board
shall determine.
       (d)  After performance of a construction contract has
started, the board may approve change orders necessary to:
             (1)  change the plans or specifications; or
             (2)  decrease or increase:
                   (A)  the quantity of work to be performed; or
                   (B)  the materials, equipment, or supplies to be
furnished.
       (e)  The board may not increase the total contract price by a
change order under Subsection (d) unless the board provides for the
payment of the added cost by appropriating current or bond funds for
that purpose, but the original contract price may not be increased
by more than 25 percent.
       (f)  The original contract price may not be decreased by more
than 25 percent without the consent of the contractor.
       (g)  The board may reject any bid. If a contract is for the
construction of public works and requires the expenditure of $5,000
or more, a successful bidder is required to give a good and
sufficient payment bond and performance bond. Each bond must:
             (1)  be in the full amount of the contract price; and
             (2)  be executed by a surety company authorized to do
business in this state under Chapter 2253, Government Code.
       (h)  This section does not apply to:
             (1)  Section 1010.104(b), 1010.110, 1010.115, or
1010.117;
             (2)  a contract for personal or professional services;
or
             (3)  the purchase of land, buildings, or rights-of-way.  
(Acts 65th Leg., R.S., Ch. 726, Sec. 22.)
       Sec.1010.115.LEASES. (a)  The district through the board
may lease all or part of the buildings and facilities comprising the
hospital system to any person on terms the board considers to be in
the district's best interest.  The term of a lease may not exceed 40
years.
       (b)  When leasing a building or other facility, the board may
delegate as it considers appropriate the board's power to manage,
control, and administer the leased buildings and facilities to
furnish hospital care.
       (c)  For each leased building or other facility, the board
shall provide that the lessee charges sufficient rates for services
rendered or goods provided at the leased premise that together with
other sources of the lessee's revenue produce an amount sufficient
to enable the lessee to pay the expenses of operating and
maintaining the leased premise as the lessee is required to pay
under the lease.  The rates also must enable the lessee to pay lease
rentals to the district that will be sufficient, when taken with any
other source of the district's estimated revenue that are pledged
for the same purpose, to:
             (1)  pay the interest on any revenue or special
obligation bonds that are payable wholly or partly from the lease
rentals;
             (2)  create and maintain a sinking fund to pay the
principal of and premium, if any, on the bonds as they become due;
             (3)  create and maintain a bond reserve fund and other
fund as required by the bond resolution or trust indenture
authorizing the issuance of the bonds; and
             (4)  pay all other charges, fees, costs, and expenses
that the lessee is required to pay under the resolution or
indenture.
       (d)  The lease, management agreement, bond resolution, or
trust indenture may prescribe systems, methods, routines,
procedures, and policies for the operation of the buildings and
other facilities owned by the district. If all or part of the
district's buildings or other facilities are leased, the district
may delegate to the lessee the duty to establish the systems,
methods, routines, procedures, and policies needed for the
operation of the leased premise.  (Acts 65th Leg., R.S., Ch. 726,
Sec. 15(c) (part).)
       Sec.1010.116.PURCHASING.  The board may purchase any
material, supply, equipment, or vehicle needed by the district.
(Acts 65th Leg., R.S., Ch. 726, Sec. 12(e).)
       Sec.1010.117.DISPOSITION OF PROPERTY.  The district may
sell or otherwise dispose of any type of property, including
equipment, on terms the board finds are in the best interest of the
district.  (Acts 65th Leg., R.S., Ch. 726, Sec. 15(d).)
       Sec.1010.118.PAYMENT FOR TREATMENT; PROCEDURES. (a)  
When a patient who resides in the district is admitted to a district
facility, the board or a board representative may have an inquiry
made into the financial circumstances of:
             (1)  the patient; and
             (2)  the patient's relatives who are legally liable for
the patient's support.
       (b)  If the board or the board's authorized representative
determines that the patient or those relatives cannot pay all or
part of the costs of the patient's care and treatment, the amount of
the costs that cannot be paid becomes a charge against the district.
       (c)  If the inquiry under Subsection (a) discloses that the
patient or those relatives can pay for all or part of the costs of
the patient's care and treatment, the board shall order the patient
or those relatives to pay the district a specified amount each week
for the patient's care and support. The amount ordered must be
proportionate to the person's financial ability.
       (d)  The district may collect the amount from the patient's
estate, or from any relative who is legally liable for the patient's
support, in the manner provided by law for the collection of
expenses of the last illness of a deceased person.
       (e)  If there is a dispute as to the ability to pay, the board
shall hear and determine the issue, after calling witnesses.
       (f)  The final order of the board may be appealed to the
district court. The substantial evidence rule applies to the
appeal. (Acts 65th Leg., R.S., Ch. 726, Sec. 28 (part).)
       Sec.1010.119.REIMBURSEMENT FOR SERVICES TO NONRESIDENTS.  
If a welfare patient, who is not a district resident, is admitted to
a district facility, the district may:
             (1)  seek reimbursement from the patient's county of
residence; and
             (2)  sue for reimbursement. (Acts 65th Leg., R.S., Ch.
726, Sec. 28 (part).)
       Sec. 1010.120.  AUTHORITY TO SUE AND BE SUED; SERVICE OF
PROCESS. (a)  The district, through its directors, may sue and be
sued in the district's own name in any court of this state.
       (b)  Service of process in any suit may be made by serving any
two directors. (Acts of the 65th Leg., R.S., Ch. 726, Sec. 13
(part).)
[Sections 1010.121-1010.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
       Sec.1010.151.BUDGET.  An annual budget for each fiscal
year shall be prepared as directed by, and for approval of, the
board. (Acts 65th Leg., R.S., Ch. 726, Sec. 17 (part).)
       Sec.1010.152.AMENDMENTS TO BUDGET.  The board may amend
the budget as the board considers necessary. (Acts 65th Leg., R.S.,
Ch. 726, Sec. 17 (part).)
       Sec.1010.153.FISCAL YEAR. The district's fiscal year
ends on the last day of April.  The board may change the fiscal year.  
(Acts 65th Leg., R.S., Ch. 726, Sec. 17 (part).)
       Sec.1010.154.ANNUAL AUDIT.  (a)  The board shall have an
independent certified public accountant audit all transactions
relating to the district for each fiscal year.
       (b)  The accountant's audit report shall be submitted to the
board not later than the 90th day after the date the fiscal year
ends. (Acts 65th Leg., R.S., Ch. 726, Sec. 17 (part).)
       Sec.1010.155.DEPOSITORY.  (a)  The board shall select one
or more banks to serve as the district's depository.
       (b)  District money shall be deposited as received with the
district's depository bank.
       (c)  All deposits shall be secured in the manner provided for
securing county funds. Deposits may be placed on time deposit or
used to purchase certificates of deposit.  (Acts 65th Leg., R.S.,
Ch. 726, Sec. 23 (part).)
       Sec.1010.156.INVESTMENT OF DISTRICT MONEY.  The board may
invest district money in:
             (1)  bonds of the United States, this state, or any
political subdivision of this state; or
             (2)  bonds issued by any agency of the United States if
the payment of the principal and interest is guaranteed by the
United States.  (Acts 65th Leg., R.S., Ch. 726, Sec. 23 (part).)
[Sections 1010.157-1010.200 reserved for expansion]
SUBCHAPTER E. BONDS
       Sec.1010.201.GENERAL OBLIGATION BONDS. The board may
issue and sell general obligation bonds in the name and on the faith
and credit of the district for any purpose relating to:
             (1)  the purchase, construction, acquisition, repair,
or renovation of buildings and improvements for hospital purposes;
and
             (2)  equipping buildings or improvements for those
purposes. (Acts 65th Leg., R.S., Ch. 726, Sec. 18 (part).)
       Sec.1010.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a)  At
the time general obligation bonds are issued under Section
1010.201, the board shall impose an ad valorem tax on all property
in the district subject to district taxation at a rate sufficient
to:
             (1)  pay the interest on the bonds as the interest comes
due; and
             (2)  provide and maintain a sinking fund adequate to
pay the principal on the bonds as the principal matures.
       (b)  The tax required by this section together with any other
ad valorem tax the district imposes may not in any year exceed 75
cents on each $100 valuation of taxable property in the district.  
(Acts 65th Leg., R.S., Ch. 726, Sec. 18 (part).)
       Sec.1010.203.REVENUE AND SPECIAL OBLIGATION BONDS. (a)  
The district may issue revenue or special obligation bonds as
authorized by the laws of this state relating to the issuance of
revenue or special obligation bonds, including Sections
264.042-264.049 and 284.031, Health and Safety Code.
       (b)  Bonds issued under this section may be payable from and
secured by revenue, encumbrances, and mortgages as authorized by
law.  Any maintenance and operating expense of the system that is
charged against the revenue of the system may include only items set
forth and defined in the proceedings authorizing the bond issuance.
(Acts 65th Leg., R.S., Ch. 726, Sec. 19.)
       Sec.1010.204.BOND ELECTION. (a)  The district may not
issue bonds unless the bonds are authorized by a majority of the
district voters voting at an election held for that purpose.
       (b)  A proposition to authorize the issuance of district
bonds may be submitted at any district election.  (Acts 65th Leg.,
R.S., Ch. 726, Secs. 6 (part), 7 (part), 18 (part).)
       Sec.1010.205.MATURITY OF BONDS. District bonds,
including revenue bonds, must mature not later than 40 years after
the date of issuance. (Acts 65th Leg., R.S., Ch. 726, Sec. 20
(part).)
       Sec.1010.206.EXECUTION OF BONDS.  Bonds shall be signed
and executed as provided by the board in the resolution or order
authorizing the issuance of bonds. (Acts 65th Leg., R.S., Ch. 726,
Sec. 20 (part).)
       Sec.1010.207.BONDS EXEMPT FROM TAXATION.  The following
are exempt from taxation by this state or a political subdivision of
this state:
             (1)  bonds issued or assumed by the district;
             (2)  the transfer and issuance of the bonds; and
             (3)  profits made in the sale of the bonds. (Acts 65th
Leg., R.S., Ch. 726, Sec. 30 (part).)
       Sec. 1010.208.  REFUNDING OR FUNDING AND RETIRING CERTAIN
OLDER BONDS. (a) This section applies only to bonds approved in an
election held before May 31, 1991.
       (b)  Except as provided by Subsection (c) and
notwithstanding any legal defect in the incurrence, issuance, or
assumption of the obligation or indebtedness, the board may issue
and sell bonds in the name and on the faith and credit of the
district to refund or fund and retire any outstanding obligation or
other indebtedness the district has incurred, issued, or assumed.
       (c)  The board may not use the power granted by this section
to convert Farmers Home Administration bonds to tax bonds.  (Acts
65th Leg., R.S., Ch. 726, Sec. 18A.)
[Sections 1010.209-1010.250 reserved for expansion]
SUBCHAPTER F. TAXES
       Sec.1010.251.TAX ELECTION.  The district may impose a tax
only if authorized by a majority of the district voters voting in an
election held for that purpose.  (Acts 65th Leg., R.S., Ch. 726,
Sec. 6 (part).)
       Sec.1010.252.IMPOSITION OF AD VALOREM TAX. (a) The board
shall impose a tax on all property in the district subject to
district taxation.
       (b)  The tax shall be imposed for and may be pledged to:
             (1)  meet the requirements of district bonds;
             (2)  provide for the district's maintenance and
operating expenses, including the cost of contract payments for
hospital care for needy district inhabitants;
             (3)  make improvements and additions to the district's
hospitals or hospital system; and
             (4)  acquire necessary sites for hospitals or the
hospital system by gift, purchase, lease, or condemnation.  (Acts
65th Leg., R.S., Ch. 726, Secs. 7 (part), 24(a) (part).)
       Sec.1010.253.TAX RATE. (a) The board may impose the tax
at a rate not to exceed 75 cents on each $100 valuation of taxable
property in the district.
       (b)  In setting the tax rate, the board shall consider all
district income, including income from sources other than taxation
that are available for the purposes described by Section
1010.252(b). (Acts 65th Leg., R.S., Ch. 726, Secs. 7 (part), 24(a)
(part), (b) (part).)
       Sec. 1010.254.  ASSESSMENT AND COLLECTION BY COUNTY TAX
ASSESSOR-COLLECTOR.  (a)  This section applies unless the board
elects to have taxes assessed and collected under Section 1010.255
or 1010.256.
       (b)  The tax assessor-collector of Burleson County shall
assess and collect taxes imposed by the district.  (Acts 65th Leg.,
R.S., Ch. 726, Secs. 27(a) (part), (b) (part).)
       Sec. 1010.255.  ASSESSMENT AND COLLECTION BY DISTRICT TAX
ASSESSOR-COLLECTOR. (a)  The board may elect to have district taxes
assessed and collected by a tax assessor-collector appointed by the
board.  An election under this subsection must be made by December 1
and governs the manner in which taxes are assessed and collected,
until changed by the board.
       (b)  The district tax assessor-collector must:
             (1)  reside in the district; and
             (2)  own real property subject to district taxation.
       (c)  The board shall set for the district tax
assessor-collector:
             (1)  the terms of employment; and
             (2)  compensation.  (Acts 65th Leg., R.S., Ch. 726,
Secs. 27(a) (part), (c) (part).)
       Sec. 1010.256.  ASSESSMENT AND COLLECTION BY TAX
ASSESSOR-COLLECTOR OF ANOTHER POLITICAL SUBDIVISION. (a)  The
board may elect to have all or part of the district's taxes assessed
and collected by a political subdivision in which any part of the
district is located.  An election under this subsection must be made
by December 1 and governs the manner in which taxes are assessed and
collected, until changed by the board.
       (b)  The tax assessor or collector of the political
subdivision shall assess or collect the appropriate district taxes
in accordance with the board's election under Subsection (a) and
for the compensation agreed on by the board and the governing body
of the political subdivision.  (Acts 65th Leg., R.S., Ch. 726, Secs.
27(a) (part), (d) (part).)
CHAPTER 1012.  CHILDRESS COUNTY HOSPITAL DISTRICT
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 1012.001.  DEFINITIONS
Sec. 1012.002.  AUTHORITY FOR CREATION
Sec. 1012.003.  ESSENTIAL PUBLIC FUNCTION
Sec. 1012.004.  DISTRICT TERRITORY
Sec. 1012.005.  DISTRICT SUPPORT AND MAINTENANCE NOT
                 STATE OBLIGATION
Sec. 1012.006.  RESTRICTION ON STATE FINANCIAL
                 ASSISTANCE
[Sections 1012.007-1012.050 reserved for expansion]
SUBCHAPTER B.  DISTRICT ADMINISTRATION
Sec. 1012.051.  BOARD ELECTION; TERM
Sec. 1012.052.  QUALIFICATIONS FOR OFFICE
Sec. 1012.053.  BOARD VACANCY
Sec. 1012.054.  OFFICERS
Sec. 1012.055.  COMPENSATION; EXPENSES
Sec. 1012.056.  VOTING REQUIREMENT
Sec. 1012.057.  MAINTENANCE OF RECORDS; PUBLIC
                 INSPECTION
Sec. 1012.058.  INDIVIDUAL LIABILITY OF DIRECTORS
Sec. 1012.059.  CHIEF EXECUTIVE OFFICER; ASSISTANT
                 CHIEF EXECUTIVE OFFICER
Sec. 1012.060.  GENERAL DUTIES OF CHIEF EXECUTIVE
                 OFFICER
Sec. 1012.061.  EMPLOYEES
Sec. 1012.062.  LEGAL COUNSEL; OTHER PROFESSIONAL
                 SERVICES
Sec. 1012.063.  RECRUITMENT OF MEDICAL PERSONNEL
Sec. 1012.064.  PERSONNEL CONTRACTS
Sec. 1012.065.  EDUCATIONAL PROGRAMS; COURSES
Sec. 1012.066.  RETIREMENT BENEFITS
[Sections 1012.067-1012.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
Sec. 1012.101.  DISTRICT RESPONSIBILITY
Sec. 1012.102.  RESTRICTION ON COUNTY OR MUNICIPALITY
                 TAXATION AND DEBT
Sec. 1012.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION
Sec. 1012.104.  HOSPITAL SYSTEM
Sec. 1012.105.  RULES
Sec. 1012.106.  PURCHASING AND ACCOUNTING PROCEDURES
Sec. 1012.107.  DISTRICT PROPERTY, FACILITIES, AND
                 EQUIPMENT
Sec. 1012.108.  EMINENT DOMAIN
Sec. 1012.109.  GIFTS AND ENDOWMENTS
Sec. 1012.110.  CONSTRUCTION CONTRACTS
Sec. 1012.111.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                 FOR CARE AND TREATMENT
Sec. 1012.112.  PAYMENT FOR TREATMENT; PROCEDURES
Sec. 1012.113.  AUTHORITY TO SUE AND BE SUED
[Sections 1012.114-1012.150 reserved for expansion]
SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
Sec. 1012.151.  BUDGET
Sec. 1012.152.  NOTICE; HEARING; ADOPTION OF BUDGET
Sec. 1012.153.  AMENDMENT OF BUDGET
Sec. 1012.154.  RESTRICTION ON EXPENDITURES
Sec. 1012.155.  FISCAL YEAR
Sec. 1012.156.  ANNUAL AUDIT
Sec. 1012.157.  FINANCIAL REPORT
Sec. 1012.158.  DEPOSITORY
Sec. 1012.159.  GENERAL AUTHORITY TO BORROW MONEY;
                 SECURITY
Sec. 1012.160.  AUTHORITY TO BORROW MONEY IN EMERGENCY;
                 SECURITY
[Sections 1012.161-1012.200 reserved for expansion]
SUBCHAPTER E. BONDS
Sec. 1012.201.  GENERAL OBLIGATION BONDS
Sec. 1012.202.  TAX TO PAY GENERAL OBLIGATION BONDS
Sec. 1012.203.  GENERAL OBLIGATION BOND ELECTION
Sec. 1012.204.  EXECUTION OF GENERAL OBLIGATION BONDS
Sec. 1012.205.  REVENUE BONDS
Sec. 1012.206.  MATURITY OF BONDS
Sec. 1012.207.  BONDS EXEMPT FROM TAXATION
[Sections 1012.208-1012.250 reserved for expansion]
SUBCHAPTER F.  TAXES
Sec. 1012.251.  IMPOSITION OF AD VALOREM TAXES
Sec. 1012.252.  TAX RATE
Sec. 1012.253.  TAX ASSESSOR-COLLECTOR
[Sections 1012.254-1012.300 reserved for expansion]
SUBCHAPTER G.  DISSOLUTION
Sec. 1012.301.  DISSOLUTION; ELECTION
Sec. 1012.302.  NOTICE OF ELECTION
Sec. 1012.303.  BALLOT
Sec. 1012.304.  ELECTION RESULTS
Sec. 1012.305.  TRANSFER, SALE, OR ADMINISTRATION OF
                 ASSETS
Sec. 1012.306.  SALE OR TRANSFER OF ASSETS AND
                 LIABILITIES
Sec. 1012.307.  IMPOSITION OF TAX AND RETURN OF SURPLUS
                 TAXES
Sec. 1012.308.  REPORT; DISSOLUTION ORDER
CHAPTER 1012.  CHILDRESS COUNTY HOSPITAL DISTRICT
SUBCHAPTER A.  GENERAL PROVISIONS
       Sec.1012.001.DEFINITIONS.  In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Childress County Hospital
District.  (New.)
       Sec.1012.002.AUTHORITY FOR CREATION. The district is
created under the authority of Section 9, Article IX, Texas
Constitution, and has the rights, powers, and duties prescribed by
this chapter. (Acts 59th Leg., R.S., Ch. 647, Sec. 1 (part).)
       Sec.1012.003.ESSENTIAL PUBLIC FUNCTION. The district
performs an essential public function in carrying out the purposes
of this chapter. (Acts 59th Leg., R.S., Ch. 647, Sec. 10 (part).)
       Sec.1012.004.DISTRICT TERRITORY. The boundaries of the
district are coextensive with the boundaries of Childress County,
Texas. (Acts 59th Leg., R.S., Ch. 647, Sec. 1 (part).)
       Sec. 1012.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE
OBLIGATION. The support and maintenance of the district may not
become a charge against or obligation of this state. (Acts 59th
Leg., R.S., Ch. 647, Sec. 21 (part).)
       Sec.1012.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.
The legislature may not make a direct appropriation for the
construction, maintenance, or improvement of a district facility.
(Acts 59th Leg., R.S., Ch. 647, Sec. 21 (part).)
[Sections 1012.007-1012.050 reserved for expansion]
SUBCHAPTER B.  DISTRICT ADMINISTRATION
       Sec.1012.051.BOARD ELECTION; TERM. (a)  The district is
governed by a board of seven directors elected from the district at
large.
       (b)  Unless four-year terms are established under Section
285.081, Health and Safety Code:
             (1)  directors serve staggered two-year terms, with
three directors elected in even-numbered years and four directors
elected in odd-numbered years; and
             (2)  a director's election shall be held each year on
the May uniform election date prescribed by Section 41.001,
Election Code.  (Acts 59th Leg., R.S., Ch. 647, Secs. 4(a), (b)
(part).)
       Sec.1012.052.QUALIFICATIONS FOR OFFICE. (a)  To be
eligible to hold office as a director, a person must be:
             (1)  a district resident; and
             (2)  a qualified voter.
       (b)  An employee of the district may not serve as a director.  
(Acts 59th Leg., R.S., Ch. 647, Sec. 4(d).)
       Sec.1012.053.BOARD VACANCY. If a vacancy occurs in the
office of director, the remaining directors by majority vote shall
appoint a director for the unexpired term.  (Acts 59th Leg., R.S.,
Ch. 647, Sec. 4(b) (part).)
       Sec.1012.054.OFFICERS. (a)  The board shall elect a
president and vice president from among its members.
       (b)  The board shall appoint a secretary, who need not be a
director.
       (c)  The president has the same right to vote as any other
director.
       (d)  If the president is absent or fails and declines to act,
the vice president shall perform the president's duties and
exercise the president's powers under this chapter. (Acts 59th
Leg., R.S., Ch. 647, Sec. 4(e).)
       Sec.1012.055.COMPENSATION; EXPENSES. A director serves
without compensation but may be reimbursed for actual expenses
incurred in attending to district business.  The expenses must be:
             (1)  reported in the district's records; and
             (2)  approved by the remainder of the board. (Acts 59th
Leg., R.S., Ch. 647, Sec. 4(c).)
       Sec.1012.056.VOTING REQUIREMENT. A concurrence of four
directors is sufficient in any matter relating to district
business.  (Acts 59th Leg., R.S., Ch. 647, Sec. 4(f) (part).)
       Sec.1012.057.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.  
(a)  The board shall:
             (1)  keep an account of all board meetings and
proceedings; and
             (2)  maintain at the district's principal office all
district records and accounts, including all contracts, notices,
duplicate vouchers, and duplicate receipts.
       (b)  The information described by Subsection (a) shall be
open to public inspection at the district's principal office at all
reasonable times. (Acts 59th Leg., R.S., Ch. 647, Sec. 4(f)
(part).)
       Sec.1012.058.INDIVIDUAL LIABILITY OF DIRECTORS.  A
director is individually liable only for the director's individual
misapplication of public money.  (Acts 59th Leg., R.S., Ch. 647,
Sec. 5(a) (part).)
       Sec. 1012.059.  CHIEF EXECUTIVE OFFICER; ASSISTANT CHIEF
EXECUTIVE OFFICER.  (a)  The board shall appoint a qualified person
to be known as the chief executive officer of the district.
       (b)  The chief executive officer may appoint an assistant to
the chief executive officer.
       (c)  The chief executive officer is entitled to the
compensation determined by the board.
       (d)  The board may execute an employment contract with the
chief executive officer for a term of not more than three years.  
The employment contract may be renewed or extended annually.  (Acts
59th Leg., R.S., Ch. 647, Sec. 5(b).)
       Sec.1012.060.GENERAL DUTIES OF CHIEF EXECUTIVE OFFICER.  
The chief executive officer shall:
             (1)  stay informed on the latest methods of hospital
administration and the care of hospital patients; and
             (2)  subject to the limitations prescribed by the
board:
                   (A)  supervise the work and activities of the
district; and
                   (B)  direct the affairs of the district. (Acts
59th Leg., R.S., Ch. 647, Sec. 5(c) (part).)
       Sec.1012.061.EMPLOYEES.  The board shall authorize the
chief executive officer to employ nurses, technicians, and other
employees for the efficient operation of the district.  (Acts 59th
Leg., R.S., Ch. 647, Sec. 5(d).)
       Sec.1012.062.LEGAL COUNSEL; OTHER PROFESSIONAL SERVICES.
The board may employ legal counsel or contract for other
professional services as the board considers advisable. (Acts 59th
Leg., R.S., Ch. 647, Sec. 17.)
       Sec.1012.063.RECRUITMENT OF MEDICAL PERSONNEL.  (a)  The
board may spend district money to recruit physicians, nurses, and
other trained medical personnel.
       (b)  The board may pay the tuition or other expenses of a
full-time medical student or other student in a health occupation
who:
             (1)  is enrolled in and is in good standing at an
accredited medical school, college, or university; and
             (2)  contractually agrees to become a district employee
or independent contractor in return for that assistance.  (Acts
59th Leg., R.S., Ch. 647, Sec. 5(h).)
       Sec.1012.064.PERSONNEL CONTRACTS.  (a) The board may
contract to provide administrative and other personnel for the
operation of the hospital facilities.
       (b)  The term of the contract may not exceed 25 years. (Acts
59th Leg., R.S., Ch. 647, Sec. 5(g) (part).)
       Sec.1012.065.EDUCATIONAL PROGRAMS; COURSES. The board may
provide or contract for the provision of educational programs or
courses for district employees and medical staff. (Acts 59th Leg.,
R.S., Ch. 647, Sec. 5(j).)
       Sec.1012.066.RETIREMENT BENEFITS.  The board may provide
retirement benefits for district employees by:
             (1)  establishing or administering a retirement
program; or
             (2)  electing to participate in:
                   (A)  the Texas County and District Retirement
System; or
                   (B)  another statewide retirement system in which
the district is eligible to participate.  (Acts 59th Leg., R.S., Ch.
647, Sec. 5(l).)
[Sections 1012.067-1012.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
       Sec.1012.101.DISTRICT RESPONSIBILITY.  The district has
full responsibility for:
             (1)  operating all hospital facilities for providing
medical and hospital care to indigent persons in the district; and
             (2)  providing medical and hospital care for the
district's needy inhabitants. (Acts 59th Leg., R.S., Ch. 647,
Secs. 2 (part), 20 (part).)
       Sec. 1012.102.  RESTRICTION ON COUNTY OR MUNICIPALITY
TAXATION AND DEBT.  Childress County or a municipality in Childress
County may not impose a tax or issue bonds or other obligations for
hospital purposes or for medical treatment of indigent persons in
the district. (Acts 59th Leg., R.S., Ch. 647, Sec. 20 (part).)
       Sec.1012.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.  
(a)  The board shall manage, control, and administer the district's
hospitals and hospital system.
       (b)  The board may delegate to the chief executive officer
the authority to manage, control, and administer the hospital, the
hospital system, and the district's business, money, and resources
under the board's oversight. (Acts 59th Leg., R.S., Ch. 647, Secs.
5(a) (part), (c) (part).)
       Sec.1012.104.HOSPITAL SYSTEM.  The district shall provide
for the establishment of a hospital system by:
             (1)  purchasing, constructing, acquiring, repairing,
or renovating buildings and equipment;
             (2)  equipping the buildings; and
             (3)  administering the buildings and equipment for
hospital purposes.  (Acts 59th Leg., R.S., Ch. 647, Sec. 2 (part).)
       Sec.1012.105.RULES. The board may adopt rules for the
operation of the district and as required to administer this
chapter. (Acts 59th Leg., R.S., Ch. 647, Secs. 5(a) (part), 11
(part).)
       Sec.1012.106.PURCHASING AND ACCOUNTING PROCEDURES.  The
board may prescribe:
             (1)  the method and manner of the making of purchases
and expenditures by and for the district; and
             (2)  all accounting and control procedures.  (Acts 59th
Leg., R.S., Ch. 647, Sec. 11 (part).)
       Sec. 1012.107.  DISTRICT PROPERTY, FACILITIES, AND
EQUIPMENT.  (a)  The board shall determine the type, number, and
location of buildings required to maintain an adequate hospital
system.
       (b)  The board may:
             (1)  purchase or lease property, including facilities
or equipment, for the district to use in the hospital system; and
             (2)  mortgage or pledge the property as security for
the payment of the purchase price.
       (c)  The board may lease district hospital facilities to
individuals, corporations, or other legal entities.
       (d)  The board may sell or otherwise dispose of the
district's property, including facilities or equipment.  (Acts 59th
Leg., R.S., Ch. 647, Secs. 5(f), (g) (part), 9.)
       Sec.1012.108.EMINENT DOMAIN.  (a)  The district may
exercise the power of eminent domain to acquire a fee simple or
other interest in any type of property located in district
territory if the interest is necessary or convenient for the
district to exercise a power, right, or privilege conferred by this
chapter.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code. (Acts 59th
Leg., R.S., Ch. 647, Sec. 15.)
       Sec.1012.109.GIFTS AND ENDOWMENTS.  The board may accept
for the district a gift or endowment to be held in trust and
administered by the board for the purposes and under the
directions, limitations, or other provisions prescribed in writing
by the donor that are not inconsistent with the proper management
and objectives of the district. (Acts 59th Leg., R.S., Ch. 647,
Sec. 19.)
       Sec.1012.110.CONSTRUCTION CONTRACTS.  A construction
contract that requires the expenditure of more than the amount
provided by Section 271.024, Local Government Code, may be made
only after competitive bidding as provided by Subchapter B, Chapter
271, Local Government Code.  (Acts 59th Leg., R.S., Ch. 647, Sec. 11
(part).)
       Sec. 1012.111.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
CARE AND TREATMENT.  (a)  The board may contract with a county or
municipality located outside the district's boundaries for the care
and treatment of a sick or injured person of that county or
municipality.
       (b)  The board may contract with this state or a federal
agency for the treatment of a sick or injured person for whom this
state or the agency is responsible.  (Acts 59th Leg., R.S., Ch. 647,
Sec. 5(e).)
       Sec.1012.112.PAYMENT FOR TREATMENT; PROCEDURES.  (a)  
When a patient who resides in the district is admitted to a district
facility, the chief executive officer shall have an inquiry made
into the circumstances of:
             (1)  the patient; and
             (2)  the patient's relatives who are legally liable for
the patient's support.
       (b)  If the chief executive officer determines that the
patient or those relatives cannot pay all or part of the costs of
the care and treatment in the hospital, the amount of the costs that
cannot be paid becomes a charge against the district.
       (c)  If the chief executive officer determines that the
patient or those relatives can pay for all or part of the costs of
the patient's care and treatment, the chief executive officer shall
issue an order directing the patient or those relatives to pay the
district a specified amount each week for the patient's support.
The amount ordered must be proportionate to the person's financial
ability and may not exceed the actual per capita cost of
maintenance.
       (d)  The chief executive officer may collect the amount from
the patient's estate, or from a relative who is legally liable for
the patient's support, in the manner provided by law for the
collection of expenses of the last illness of a deceased person.
       (e)  The board may institute a suit to collect an amount owed
to the district by a patient who has not been determined under this
section to be unable to pay.
       (f)  If there is a dispute as to the ability to pay, or doubt
in the mind of the chief executive officer, the board shall hold a
hearing and, after calling witnesses, shall:
             (1)  resolve the dispute or doubt; and
             (2)  issue any appropriate orders.
       (g)  A final order of the board may be appealed to the
district court. The substantial evidence rule applies to the
appeal.  (Acts 59th Leg., R.S., Ch. 647, Secs. 5(k), 18.)
       Sec.1012.113.AUTHORITY TO SUE AND BE SUED. The district,
through the board, may sue and be sued. (Acts 59th Leg., R.S., Ch.
647, Sec. 5(a) (part).)
[Sections 1012.114-1012.150 reserved for expansion]
SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
       Sec.1012.151.BUDGET.  The chief executive officer shall
prepare an annual budget for approval by the board.  (Acts 59th
Leg., R.S., Ch. 647, Sec. 6 (part).)
       Sec.1012.152.NOTICE; HEARING; ADOPTION OF BUDGET.  (a)  
The board shall hold a public hearing on the proposed annual budget.
       (b)  The board shall publish notice of the hearing in
accordance with Chapter 551, Government Code.
       (c)  The board must approve the budget.  (Acts 59th Leg.,
R.S., Ch. 647, Sec. 6 (part).)
       Sec.1012.153.AMENDMENT OF BUDGET. The budget may be
amended as required by circumstances. The board must approve all
amendments.  (Acts 59th Leg., R.S., Ch. 647, Sec. 6 (part).)
       Sec.1012.154.RESTRICTION ON EXPENDITURES. Money may be
spent only for an expense included in the budget or an amendment to
the budget.  (Acts 59th Leg., R.S., Ch. 647, Sec. 6 (part).)
       Sec.1012.155.FISCAL YEAR. (a) The district operates on a
fiscal year established by the board.
       (b)  The fiscal year may not be changed:
             (1)  during a period that revenue bonds of the district
are outstanding; or
             (2)  more than once in a 24-month period.  (Acts 59th
Leg., R.S., Ch. 647, Sec. 6 (part).)
       Sec.1012.156.ANNUAL AUDIT. (a)  The board annually shall
have an audit made of the district's financial condition.
       (b)  The audit shall be open to inspection at all times at the
district's principal office.  (Acts 59th Leg., R.S., Ch. 647, Sec. 6
(part).)
       Sec.1012.157.FINANCIAL REPORT. As soon as practicable
after the close of each fiscal year, the chief executive officer
shall prepare for the board:
             (1)  a complete sworn statement of all district money;
and
             (2)  a complete account of the disbursement of that
money.  (Acts 59th Leg., R.S., Ch. 647, Sec. 6 (part).)
       Sec.1012.158.DEPOSITORY. (a)  The board shall select one
or more banks to serve as a depository for district money.
       (b)  District money shall be immediately deposited on
receipt with a depository bank, except that sufficient money must
be remitted to the appropriate bank to pay the principal of and
interest on the district's outstanding bonds or other obligations
on or before the maturity date of the principal and interest.
       (c)  To the extent that money in a depository bank is not
insured by the Federal Deposit Insurance Corporation, the money
must be secured in the manner provided by law for the security of
county funds.
       (d)  Membership on the district's board of an officer or
director of a bank disqualifies the bank from being selected as a
depository bank.  (Acts 59th Leg., R.S., Ch. 647, Sec. 12.)
       Sec.1012.159.GENERAL AUTHORITY TO BORROW MONEY; SECURITY.  
(a)  The board may borrow money at a rate not to exceed the maximum
annual percentage rate allowed by law for district obligations at
the time the loan is made.
       (b)  To secure a loan, the board may pledge:
             (1)  district revenue that is not pledged to pay the
district's bonded indebtedness;
             (2)  a district tax to be imposed by the district in the
next 12-month period that is not pledged to pay the principal of or
interest on district bonds; or
             (3)  district bonds that have been authorized but not
sold.
       (c)  A loan for which taxes or bonds are pledged must mature
not later than the first anniversary of the date the loan is made. A
loan for which district revenue is pledged must mature not later
than the fifth anniversary of the date the loan is made.  (Acts 59th
Leg., R.S., Ch. 647, Sec 20B.)
       Sec. 1012.160.  AUTHORITY TO BORROW MONEY IN EMERGENCY;
SECURITY.  (a)  The board may borrow money at a rate not to exceed
the maximum annual percentage rate allowed by law for district
obligations at the time the loan is made if the board declares that:
             (1)  money is not available to meet authorized
obligations of the district; and
             (2)  an emergency exists.
       (b)  To secure a loan, the board may pledge:
             (1)  district revenue that is not pledged to pay the
district's bonded indebtedness;
             (2)  a district tax to be imposed by the district in the
next 12-month period that is not pledged to pay the principal of or
interest on district bonds; or
             (3)  district bonds that have been authorized but not
sold.
       (c)  A loan for which taxes or bonds are pledged must mature
not later than the first anniversary of the date the loan is made. A
loan for which district revenue is pledged must mature not later
than the fifth anniversary of the date the loan is made.
       (d)  The board may not spend money obtained from a loan under
this section for any purpose other than:
             (1)  the purpose for which the board declared an
emergency; and
             (2)  if district taxes or bonds are pledged to pay the
loan, the purpose for which the pledged taxes were imposed or the
pledged bonds were authorized.  (Acts 59th Leg., R.S., Ch. 647, Sec.
20A.)
[Sections 1012.161-1012.200 reserved for expansion]
SUBCHAPTER E. BONDS
       Sec.1012.201.GENERAL OBLIGATION BONDS.  The board may
issue and sell general obligation bonds in the name and on the faith
and credit of the district, for hospital or hospital system
purposes, to:
             (1)  purchase, construct, acquire, repair, or renovate
buildings or improvements;
             (2)  equip buildings or improvements; or
             (3)  acquire and operate a mobile emergency medical or
air ambulance service. (Acts 59th Leg., R.S., Ch. 647, Sec. 7(a)
(part).)
       Sec.1012.202.TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  At
the time general obligation bonds are issued under Section
1012.201, the board shall impose an ad valorem tax at a rate
sufficient to create an interest and sinking fund and to pay the
principal of and interest on the bonds as the bonds mature.
       (b)  The tax required by this section together with any other
ad valorem tax the district imposes may not exceed the limit
approved by the voters at the election authorizing the imposition
of the tax.  (Acts 59th Leg., R.S., Ch. 647, Sec. 7(b) (part).)
       Sec.1012.203.GENERAL OBLIGATION BOND ELECTION. (a)  The
district may issue general obligation bonds only if the bonds are
authorized by a majority of the district voters voting at an
election held for that purpose.
       (b)  Section 41.001(a), Election Code, does not apply to a
bond election ordered by the board.
       (c)  Except as otherwise provided by this chapter, the
election shall be conducted in accordance with Chapter 1251,
Government Code.  (Acts 59th Leg., R.S., Ch. 647, Secs. 7(a)
(part), (b) (part).)
       Sec.1012.204.EXECUTION OF GENERAL OBLIGATION BONDS.  (a)
The board president shall execute the general obligation bonds in
the district's name.
       (b)  The board secretary shall attest the bonds as provided
by Chapter 618, Government Code.  (Acts 59th Leg., R.S., Ch. 647,
Sec. 7(c) (part).)
       Sec.1012.205.REVENUE BONDS. (a) The board may issue and
sell revenue bonds in the name and on the faith and credit of the
district to:
             (1)  purchase, construct, acquire, repair, renovate,
or equip buildings or improvements for hospitals and the hospital
system; or
             (2)  acquire sites to be used for hospital purposes.
       (b)  The bonds must be payable from and secured by a pledge of
all or part of the revenue derived from the operation of the
district's hospital system.
       (c)  The bonds may be additionally secured by a mortgage or
deed of trust on all or part of the district's property.
       (d)  The bonds must be issued in the manner provided by
Sections 264.042, 264.043, and 264.046-264.049, Health and Safety
Code, for issuance of revenue bonds by a county hospital authority.
(Acts 59th Leg., R.S., Ch. 647, Sec. 7(f).)
       Sec.1012.206.MATURITY OF BONDS. District bonds must
mature not later than 40 years after the date of issuance. (Acts
59th Leg., R.S., Ch. 647, Sec. 7(d) (part).)
       Sec.1012.207.BONDS EXEMPT FROM TAXATION.  The following
are exempt from taxation by this state or a political subdivision of
this state:
             (1)  bonds issued by the district;
             (2)  the transfer and issuance of the bonds; and
             (3)  profits made in the sale of the bonds. (Acts 59th
Leg., R.S., Ch. 647, Sec. 10 (part).)
[Sections 1012.208-1012.250 reserved for expansion]
SUBCHAPTER F.  TAXES
       Sec.1012.251.IMPOSITION OF AD VALOREM TAXES.  (a)  The
board may impose a tax on property in the district subject to
district taxation.
       (b)  The tax may be used to pay:
             (1)  indebtedness issued or assumed by the district;
and
             (2)  the maintenance and operating expenses of the
district.
       (c)  The district may not impose a tax to pay the principal of
or interest on revenue bonds.  (Acts 59th Leg., R.S., Ch. 647, Secs.
3 (part), 13 (part), 16(a) (part).)
       Sec.1012.252.TAX RATE.  (a)  The board may impose the tax
at a rate not to exceed the limit approved by the voters at the
election authorizing the imposition of the tax.
       (b)  The tax rate for all purposes may not exceed 75 cents on
each $100 valuation of taxable property in the district.
       (c)  In setting the tax rate, the board shall consider the
income of the district from sources other than taxation.  (Acts 59th
Leg., R.S., Ch. 647, Secs. 13 (part), 16(a) (part).)
       Sec.1012.253.TAX ASSESSOR-COLLECTOR. The board may
provide for the appointment of a tax assessor-collector for the
district or may contract for the assessment and collection of taxes
as provided by the Tax Code. (Acts 59th Leg., R.S., Ch. 647, Sec.
16(b) (part).)
[Sections 1012.254-1012.300 reserved for expansion]
SUBCHAPTER G.  DISSOLUTION
       Sec.1012.301.DISSOLUTION; ELECTION.  (a) The district
may be dissolved only on approval of a majority of the district
voters voting in an election held for that purpose.
       (b)  The board may order an election on the question of
dissolving the district and disposing of the district's assets and
obligations.
       (c)  The board shall order an election if the board receives
a petition requesting an election that is signed by a number of
residents of the district equal to at least 15 percent of the
registered voters in the district.
       (d)  The order calling the election must state:
             (1)  the nature of the election, including the
proposition to appear on the ballot;
             (2)  the date of the election;
             (3)  the hours during which the polls will be open; and
             (4)  the location of the polling places.
       (e)  Section 41.001(a), Election Code, does not apply to an
election ordered under this section. (Acts 59th Leg., R.S., Ch.
647, Secs. 21A(a), (b), (c) (part).)
       Sec.1012.302.NOTICE OF ELECTION.  (a) The board shall
give notice of an election under this subchapter by publishing once
a week for two consecutive weeks a substantial copy of the election
order in a newspaper with general circulation in the district.
       (b)  The first publication of the notice must appear not
later than the 35th day before the date set for the election. (Acts
59th Leg., R.S., Ch. 647, Sec. 21A(d) (part).)
       Sec.1012.303.BALLOT.  The ballot for an election under
this subchapter must be printed to permit voting for or against the
proposition: "The dissolution of the Childress County Hospital
District."  (Acts 59th Leg., R.S., Ch. 647, Sec. 21A(d) (part).)
       Sec.1012.304.ELECTION RESULTS.  (a)  If a majority of the
votes in an election under this subchapter favor dissolution, the
board shall find that the district is dissolved.
       (b)  If a majority of the votes in the election do not favor
dissolution, the board shall continue to administer the district
and another election on the question of dissolution may not be held
before the first anniversary of the date of the most recent election
to dissolve the district.  (Acts 59th Leg., R.S., Ch. 647, Sec.
21A(e).)
       Sec.1012.305.TRANSFER, SALE, OR ADMINISTRATION OF ASSETS.  
(a)  If a majority of the votes in the election under this
subchapter favor dissolution, the board shall:
             (1)  transfer the land, buildings, improvements,
equipment, and other assets that belong to the district to
Childress County or another governmental entity in Childress
County;
             (2)  sell the assets and liabilities to another person;
or
             (3)  administer the property, assets, and debts until
all money has been disposed of and all district debts have been paid
or settled.
       (b)  If the board makes the transfer under Subsection (a)(1),
the county or entity assumes all debts and obligations of the
district at the time of the transfer, and the district is dissolved.
       (c)  If Subsections (a)(1) and (2) do not apply and the board
administers the property, assets, and debts under Subsection
(a)(3), the district is dissolved when all money is disposed of and
all district debts have been paid or settled.  (Acts 59th Leg.,
R.S., Ch. 647, Secs. 21A(f), (g), (m) (part).)
       Sec.1012.306.SALE OR TRANSFER OF ASSETS AND LIABILITIES.  
(a)  The dissolution of the district and the sale or transfer of the
district's assets or liabilities to another person may not
contravene a trust indenture or bond resolution relating to the
district's outstanding bonds.  The dissolution and sale or transfer
does not diminish or impair the rights of a holder of an outstanding
bond, warrant, or other obligation of the district.
       (b)  The sale or transfer of the district's assets and
liabilities must satisfy the debt and bond obligations of the
district in a manner that protects the interests of the residents of
the district, including the residents' collective property rights
in the district's assets.
       (c)  The district may not transfer or dispose of the
district's assets except for due compensation unless:
             (1)  the transfer is made to another governmental
entity that serves the district; and
             (2)  the transferred assets are to be used for the
benefit of the district's residents.
       (d)  A grant from federal funds is an obligation to be repaid
in satisfaction. (Acts 59th Leg., R.S., Ch. 647, Secs. 21A(m)
(part), (n).)
       Sec. 1012.307.  IMPOSITION OF TAX AND RETURN OF SURPLUS
TAXES.  (a) After the board finds that the district is dissolved,
the board shall:
             (1)  determine the debt owed by the district; and
             (2)  impose on the property included in the district's
tax rolls a tax that is in proportion of the debt to the property
value.
       (b)  On the payment of all outstanding debts and obligations
of the district, the board shall order the secretary to return to
each district taxpayer the taxpayer's pro rata share of all unused
tax money.
       (c)  A taxpayer may request that the taxpayer's share of
surplus tax money be credited to the taxpayer's county taxes. If a
taxpayer requests the credit, the board shall direct the secretary
to transmit the money to the county tax assessor-collector.  (Acts
59th Leg., R.S., Ch. 647, Secs. 21A(h), (i), (j).)
       Sec.1012.308.REPORT; DISSOLUTION ORDER.  (a)  After the
district has paid all district debts and has disposed of all
district money and other assets as prescribed by this subchapter,
the board shall file a written report with the Commissioners Court
of Childress County summarizing the board's actions in dissolving
the district.
       (b)  Not later than the 10th day after the date the
Commissioners Court of Childress County receives the report and
determines that the requirements of this subchapter have been
fulfilled, the commissioners court shall enter an order dissolving
the district and releasing the board from any further duty or
obligation.  (Acts 59th Leg., R.S., Ch. 647, Secs. 21A(k), (l).)
CHAPTER 1013.  CASTRO COUNTY HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1013.001.  DEFINITIONS
Sec. 1013.002.  AUTHORITY FOR OPERATION
Sec. 1013.003.  ESSENTIAL PUBLIC FUNCTION; POLITICAL
                 SUBDIVISION
Sec. 1013.004.  DISTRICT TERRITORY
Sec. 1013.005.  CORRECTION OF INVALID PROCEDURES
[Sections 1013.006-1013.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 1013.051.  BOARD ELECTION; TERM
Sec. 1013.052.  NOTICE OF ELECTION
Sec. 1013.053.  QUALIFICATIONS FOR OFFICE
Sec. 1013.054.  BOND; RECORD OF BOND AND OATH OR
                 AFFIRMATION OF OFFICE
Sec. 1013.055.  BOARD VACANCY
Sec. 1013.056.  OFFICERS
Sec. 1013.057.  COMPENSATION; EXPENSES
Sec. 1013.058.  VOTING REQUIREMENT
Sec. 1013.059.  DISTRICT ADMINISTRATOR
Sec. 1013.060.  GENERAL DUTIES OF DISTRICT
                 ADMINISTRATOR
Sec. 1013.061.  EMPLOYEES
Sec. 1013.062.  RECRUITMENT OF MEDICAL STAFF AND
                 EMPLOYEES
Sec. 1013.063.  APPOINTMENT AND REMOVAL OF MEDICAL STAFF
Sec. 1013.064.  HEALTH CARE EDUCATIONAL PROGRAMS
Sec. 1013.065.  RETIREMENT BENEFITS
Sec. 1013.066.  LIABILITY INSURANCE; INDEMNIFICATION
Sec. 1013.067.  MAINTENANCE OF RECORDS; PUBLIC
                 INSPECTION
Sec. 1013.068.  SEAL
[Sections 1013.069-1013.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 1013.101.  DISTRICT RESPONSIBILITY
Sec. 1013.102.  RESTRICTION ON COUNTY OR MUNICIPALITY
                 TAXATION
Sec. 1013.103.  MANAGEMENT AND CONTROL
Sec. 1013.104.  HOSPITAL SYSTEM
Sec. 1013.105.  RULES
Sec. 1013.106.  PURCHASING AND ACCOUNTING PROCEDURES
Sec. 1013.107.  MOBILE EMERGENCY MEDICAL SERVICE
Sec. 1013.108.  DISTRICT PROPERTY, FACILITIES, AND
                 EQUIPMENT
Sec. 1013.109.  EMINENT DOMAIN
Sec. 1013.110.  GIFTS AND ENDOWMENTS
Sec. 1013.111.  CONTRACTS FOR CARE AND TREATMENT
Sec. 1013.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                 FOR INVESTIGATORY OR OTHER SERVICES
Sec. 1013.113.  PROVISION OF SERVICES OUTSIDE DISTRICT
Sec. 1013.114.  JOINT ADMINISTRATION OR DELIVERY OF
                 HEALTH CARE SERVICES
Sec. 1013.115.  PAYMENT FOR TREATMENT; PROCEDURES
Sec. 1013.116.  REIMBURSEMENT FOR SERVICES
Sec. 1013.117.  NONPROFIT CORPORATION
Sec. 1013.118.  AUTHORITY TO SUE AND BE SUED
[Sections 1013.119-1013.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 1013.151.  BUDGET
Sec. 1013.152.  PROPOSED BUDGET: NOTICE AND HEARING
Sec. 1013.153.  FISCAL YEAR
Sec. 1013.154.  ANNUAL AUDIT
Sec. 1013.155.  DEPOSITORY OR TREASURER
Sec. 1013.156.  AUTHORITY TO BORROW MONEY; SECURITY
[Sections 1013.157-1013.200 reserved for expansion]
SUBCHAPTER E. BONDS
Sec. 1013.201.  GENERAL OBLIGATION BONDS
Sec. 1013.202.  TAX TO PAY GENERAL OBLIGATION BONDS
Sec. 1013.203.  GENERAL OBLIGATION BOND ELECTION
Sec. 1013.204.  MATURITY OF GENERAL OBLIGATION BONDS
Sec. 1013.205.  EXECUTION OF GENERAL OBLIGATION BONDS
Sec. 1013.206.  REVENUE BONDS
Sec. 1013.207.  REFUNDING BONDS
Sec. 1013.208.  BONDS EXEMPT FROM TAXATION
[Sections 1013.209-1013.250 reserved for expansion]
SUBCHAPTER F. TAXES
Sec. 1013.251.  IMPOSITION OF AD VALOREM TAX
Sec. 1013.252.  TAX RATE
Sec. 1013.253.  TAX ASSESSOR-COLLECTOR
[Sections 1013.254-1013.300 reserved for expansion]
SUBCHAPTER G. DISSOLUTION
Sec. 1013.301.  DISSOLUTION; ELECTION
Sec. 1013.302.  NOTICE OF ELECTION
Sec. 1013.303.  BALLOT
Sec. 1013.304.  ELECTION RESULTS
Sec. 1013.305.  TRANSFER OR ADMINISTRATION OF ASSETS
Sec. 1013.306.  SALE OR TRANSFER OF ASSETS AND
                 LIABILITIES
Sec. 1013.307.  IMPOSITION OF TAX AND RETURN OF SURPLUS
                 TAXES
Sec. 1013.308.  REPORT; DISSOLUTION ORDER
CHAPTER 1013.  CASTRO COUNTY HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.1013.001.DEFINITIONS.  In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Castro County Hospital
District. (New.)
       Sec.1013.002.AUTHORITY FOR OPERATION. The district
operates under the authority of and has the powers and
responsibilities provided by Section 11, Article IX, Texas
Constitution. (Acts 57th Leg., R.S., Ch. 103, Sec. 1 (part).)
       Sec. 1013.003.  ESSENTIAL PUBLIC FUNCTION; POLITICAL
SUBDIVISION. The district is:
             (1)  a public entity performing an essential public
function; and
             (2)  a political subdivision of this state. (Acts 57th
Leg., R.S., Ch. 103, Secs. 6A(c) (part), 18 (part).)
       Sec.1013.004.DISTRICT TERRITORY. The boundaries of the
district are coextensive with the boundaries of Castro County.
(Acts 57th Leg., R.S., Ch. 103, Sec. 1 (part).)
       Sec.1013.005.CORRECTION OF INVALID PROCEDURES. If a
court holds that any procedure under this chapter violates the
constitution of this state or of the United States, the district by
resolution may provide an alternative procedure that conforms with
the constitution. (Acts 57th Leg., R.S., Ch. 103, Sec. 19 (part).)
[Sections 1013.006-1013.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
       Sec.1013.051.BOARD ELECTION; TERM. (a) The board
consists of five directors elected from the district at large.
       (b)  Directors serve staggered three-year terms.
       (c)  An election shall be held on the uniform election date
in May of each year to elect the appropriate number of directors.
(Acts 57th Leg., R.S., Ch. 103, Secs. 3(a) (part), (e) (part).)
       Sec.1013.052.NOTICE OF ELECTION. Not earlier than the
30th day or later than the 10th day before the date of an election of
directors, notice of the election shall be published one time in a
newspaper of general circulation in Castro County. (Acts 57th
Leg., R.S., Ch. 103, Sec. 3(e) (part).)
       Sec.1013.053.QUALIFICATIONS FOR OFFICE. (a) A person may
not be elected or appointed as a director unless the person is:
             (1)  a district resident; and
             (2)  at least 21 years of age.
       (b)  An employee or medical staff member of the district may
not serve as a director.  (Acts 57th Leg., R.S., Ch. 103, Sec. 3(b)
(part).)
       Sec. 1013.054.  BOND; RECORD OF BOND AND OATH OR AFFIRMATION
OF OFFICE. (a) Each director shall execute a good and sufficient
bond for $1,000 that is:
             (1)  payable to the district; and
             (2)  conditioned on the faithful performance of the
director's duties.
       (b)  The district may pay for the directors' bonds with
district money.
       (c)  Each director's bond and constitutional oath or
affirmation of office shall be deposited with the district's
depository bank for safekeeping. (Acts 57th Leg., R.S., Ch. 103,
Sec. 3(c) (part).)
       Sec.1013.055.BOARD VACANCY. (a) If a vacancy occurs in
the office of director, the remaining directors shall appoint a
director for the unexpired term.
       (b)  If the number of directors is reduced to fewer than
three for any reason, the remaining directors shall immediately
call a special election to fill the vacancies. If the remaining
directors do not call the election, a district court, on
application of a district voter or taxpayer, may order the
directors to hold the election. (Acts 57th Leg., R.S., Ch. 103,
Sec. 3(d) (part).)
       Sec.1013.056.OFFICERS. The board shall elect from among
its members a president, vice president, and secretary. (Acts 57th
Leg., R.S., Ch. 103, Sec. 3(d) (part).)
       Sec.1013.057.COMPENSATION; EXPENSES. A director serves
without compensation but may be reimbursed for actual expenses
incurred in the performance of official duties on approval of the
expenses by the entire board. (Acts 57th Leg., R.S., Ch. 103, Sec.
4 (part).)
       Sec.1013.058.VOTING REQUIREMENT. A concurrence of three
directors is sufficient in any matter relating to district
business. (Acts 57th Leg., R.S., Ch. 103, Sec. 3(d) (part).)
       Sec.1013.059.DISTRICT ADMINISTRATOR. (a) The board may
appoint a qualified person as district administrator.
       (b)  The district administrator serves at the will of the
board and receives the compensation determined by the board. (Acts
57th Leg., R.S., Ch. 103, Sec. 8(b) (part).)
       Sec.1013.060.GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
Subject to the limitations prescribed by the board, the district
administrator shall:
             (1)  supervise the work and activities of the district;
and
             (2)  direct the general affairs of the district. (Acts
57th Leg., R.S., Ch. 103, Sec. 8(b) (part).)
       Sec.1013.061.EMPLOYEES.  (a)  The board may employ a
general manager, attorney, bookkeeper, and architect.
       (b)  The board may employ technicians, nurses, fiscal
agents, accountants, and other necessary employees.
       (c)  The board may delegate to the district administrator the
authority to hire employees under Subsection (b).  (Acts 57th Leg.,
R.S., Ch. 103, Secs. 8(a) (part), (c) (part).)
       Sec.1013.062.RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES.  
The board may spend district money, enter into agreements, and take
other necessary action to recruit physicians and other persons to
serve as medical staff members or district employees, including:
             (1)  advertising and marketing;
             (2)  paying travel, recruitment, and relocation
expenses;
             (3)  providing a loan or scholarship to a physician or a
person who:
                   (A)  is currently enrolled in health care
education courses at an institution of higher education; and
                   (B)  contractually agrees to become a district
employee or medical staff member; and
             (4)  providing on a rent-free basis or subsidizing the
cost of office space or other facilities for a health care
professional, including a physician.  (Acts 57th Leg., R.S., Ch.
103, Sec. 8A(j).)
       Sec.1013.063.APPOINTMENT AND REMOVAL OF MEDICAL STAFF.  
(a)  The board may appoint to or remove from the medical staff any
doctors as necessary for the efficient operation of the district
and may make temporary appointments as necessary.
       (b)  The board may adopt policies relating to the appointment
and removal of medical staff members.  (Acts 57th Leg., R.S., Ch.
103, Sec. 8(d) (part).)
       Sec.1013.064.HEALTH CARE EDUCATIONAL PROGRAMS.  The
board may spend district money, enter into an agreement, or take
other necessary action to conduct, participate in, or assist in
providing health care educational programs for current or
prospective medical staff members or employees of the district.
(Acts 57th Leg., R.S., Ch. 103, Sec. 8A(k).)
       Sec.1013.065.RETIREMENT BENEFITS. The board may provide
retirement benefits for district employees by:
             (1)  establishing or administering a retirement
program; or
             (2)  participating in:
                   (A)  the Texas County and District Retirement
System; or
                   (B)  another statewide retirement system in which
the district is eligible to participate. (Acts 57th Leg., R.S., Ch.
103, Sec. 8A(l).)
       Sec.1013.066.LIABILITY INSURANCE; INDEMNIFICATION. (a)
The board may defend or indemnify an officer, director, board
appointee, medical staff member, or district employee against or
from a claim, expense, or liability arising from duties performed
in that capacity.
       (b)  The board may purchase liability insurance coverage or
establish a self-insurance program to fund an indemnity obligation
under this section. (Acts 57th Leg., R.S., Ch. 103, Sec. 4 (part).)
       Sec.1013.067.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.
Except as provided by Section 1013.054, all district records,
including books, accounts, notices, minutes, and all other matters
of the district and the operation of its facilities, shall be:
             (1)  maintained at the district office; and
             (2)  open to public inspection at the district office
at all reasonable hours. (Acts 57th Leg., R.S., Ch. 103, Sec.
8(e).)
       Sec.1013.068.SEAL. The board may adopt a seal for the
district. (Acts 57th Leg., R.S., Ch. 103, Sec. 8(a) (part).)
[Sections 1013.069-1013.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.1013.101.DISTRICT RESPONSIBILITY. The district has
full responsibility for providing medical and hospital care for the
district's needy and indigent residents. (Acts 57th Leg., R.S.,
Ch. 103, Sec. 13 (part).)
       Sec. 1013.102.  RESTRICTION ON COUNTY OR MUNICIPALITY
TAXATION. Castro County or a municipality in Castro County may not
impose a tax for hospital purposes. (Acts 57th Leg., R.S., Ch. 103,
Sec. 13 (part).)
       Sec.1013.103.MANAGEMENT AND CONTROL. The management and
control of the district is vested in the board. (Acts 57th Leg.,
R.S., Ch. 103, Sec. 4 (part).)
       Sec.1013.104.HOSPITAL SYSTEM.  (a)  The district may
provide for the establishment of a hospital or hospital system to
provide medical and hospital care to the district's needy
residents.
       (b)  The hospital system may include:
             (1)  facilities and equipment for domiliciary care and
treatment of sick, injured, or geriatric patients;
             (2)  outpatient clinics;
             (3)  convalescent home facilities;
             (4)  physicians' offices; and
             (5)  any other facilities or equipment the board
considers necessary for hospital purposes. (Acts 57th Leg., R.S.,
Ch. 103, Secs. 2 (part), 8A(a) (part).)
       Sec.1013.105.RULES. (a)  The board may adopt rules
governing the operation of the district, including district
facilities.
       (b)  On approval by the board, the rules may be published in
booklet form at district expense and made available to any taxpayer
on request. (Acts 57th Leg., R.S., Ch. 103, Sec. 8(f).)
       Sec.1013.106.PURCHASING AND ACCOUNTING PROCEDURES. (a)  
The board may prescribe the method and manner of making purchases
and expenditures by and for the district.
       (b)  The board shall prescribe:
             (1)  all accounting and control procedures; and
             (2)  the method of purchasing necessary supplies,
materials, and equipment.  (Acts 57th Leg., R.S., Ch. 103, Sec. 8(a)
(part).)
       Sec.1013.107.MOBILE EMERGENCY MEDICAL SERVICE.  The
district may operate or provide for the operation of a mobile
emergency medical service as part of the hospital system. (Acts
57th Leg., R.S., Ch. 103, Sec. 8A(a) (part).)
       Sec. 1013.108.  DISTRICT PROPERTY, FACILITIES, AND
EQUIPMENT. (a) The board shall determine:
             (1)  the type, number, and location of facilities
required to maintain an adequate hospital system; and
             (2)  the type of equipment necessary for hospital care.
       (b)  The board may:
             (1)  acquire, construct, repair, or renovate property,
including facilities or equipment, for the district for use in the
hospital system; and
             (2)  mortgage or pledge the property as security for
the payment of the purchase price.
       (c)  The board may lease hospital facilities for the
district.
       (d)  The board may sell or otherwise dispose of property,
including facilities or equipment, for the district.
       (e)  The district may operate any facility covered by this
section or contract with any person to operate the facility. (Acts
57th Leg., R.S., Ch. 103, Secs. 8A(a) (part), (b), (c), (d), (e).)
       Sec.1013.109.EMINENT DOMAIN. (a) The district may
exercise the power of eminent domain to acquire a fee simple or
other interest in any type of property, real, personal, or mixed,
located in district territory, if the interest is necessary or
convenient for the district to exercise a right, power, privilege,
or function conferred on the district by this chapter.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code, except the
district is not required to deposit in the trial court money or a
bond as provided by Section 21.021(a), Property Code.
       (c)  In a condemnation proceeding brought by the district,
the district is not required to:
             (1)  pay in advance or provide a bond or other security
for costs in the trial court;
             (2)  provide a bond for the issuance of a temporary
restraining order or a temporary injunction; or
             (3)  provide a bond for costs or a supersedeas bond on
an appeal or writ of error. (Acts 57th Leg., R.S., Ch. 103, Sec.
10.)
       Sec.1013.110.GIFTS AND ENDOWMENTS. The board may accept
for the district a gift or endowment to be held in trust and
administered by the board for the purposes and under the
directions, limitations, or provisions prescribed in writing by the
donor that are not inconsistent with the proper management and
objectives of the district. (Acts 57th Leg., R.S., Ch. 103, Sec.
16.)
       Sec.1013.111.CONTRACTS FOR CARE AND TREATMENT. (a) The
board may contract with a hospital, hospital authority, or
political subdivision of this state located outside the district's
boundaries to reimburse the district for the care and treatment of a
sick or injured person of that entity.
       (b)  The board may contract with this state or a federal
agency for the state or agency to reimburse the district for the
treatment of a sick or injured person. (Acts 57th Leg., R.S., Ch.
103, Sec. 8A(g) (part).)
       Sec. 1013.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
INVESTIGATORY OR OTHER SERVICES. The board may contract with a
political subdivision or governmental agency to provide
investigatory or other services related to facilities for the
medical care, hospital, or welfare needs of district inhabitants.
(Acts 57th Leg., R.S., Ch. 103, Sec. 8A(g) (part).)
       Sec.1013.113.PROVISION OF SERVICES OUTSIDE DISTRICT.  
Subject to board approval the district may provide primary care,
emergency services, preventative medical services, and other
health-related services outside the district, provided that the
services serve the purpose of the district as established by this
chapter. (Acts 57th Leg., R.S., Ch. 103, Sec. 8A(f).)
       Sec. 1013.114.  JOINT ADMINISTRATION OR DELIVERY OF HEALTH
CARE SERVICES.  (a)  To provide joint administration or delivery of
health care services, the district may contract with, affiliate
with, or enter into another arrangement with:
             (1)  a managed care system;
             (2)  a preferred provider organization;
             (3)  a health maintenance organization;
             (4)  another provider of an alternative health care or
delivery system; or
             (5)  a private hospital.
       (b)  The district may spend district money to establish and
maintain a partnership, corporation, or other entity involved in
the delivery of health care services. (Acts 57th Leg., R.S., Ch.
103, Sec. 8A(h).)
       Sec.1013.115.PAYMENT FOR TREATMENT; PROCEDURES. (a)
When a patient who resides in Castro County is admitted to a
district facility, the board shall have an inquiry made into the
circumstances of:
             (1)  the patient; and
             (2)  the patient's relatives who are legally liable for
the patient's support.
       (b)  If an agent designated by the district to handle the
inquiry determines that the patient or those relatives cannot pay
all or part of the costs of the patient's care and treatment in the
hospital, the amount of the costs that cannot be paid becomes a
charge against the district.
       (c)  If it is determined that the patient or those relatives
are liable to pay for all or part of the costs of the patient's care
and treatment, the patient or those relatives shall be ordered to
pay to the district's treasurer a specified amount each week for the
patient's support. The amount ordered must be proportionate to the
person's financial ability and may not exceed the actual per capita
cost of maintenance.
       (d)  The district may collect the amount from the patient's
estate, or from any relative who is legally liable for the patient's
support, in the manner provided by law for the collection of
expenses of the last illness of a deceased person.
       (e)  If there is a dispute as to the ability to pay, or doubt
in the mind of the district's designated agent, the board shall hold
a hearing and, after calling witnesses, shall:
             (1)  resolve the dispute or doubt; and
             (2)  issue an appropriate order.
       (f)  Either party to the dispute may appeal the order to the
district court. (Acts 57th Leg., R.S., Ch. 103, Sec. 14.)
       Sec.1013.116.REIMBURSEMENT FOR SERVICES.  (a) The board
shall require a county, municipality, or public hospital located
outside the district to reimburse the district for the district's
care and treatment of a sick or injured person for whom that county,
municipality, or public hospital has an obligation to provide care,
as provided by Chapter 61, Health and Safety Code.
       (b)  The board shall seek reimbursement under Article
104.002, Code of Criminal Procedure, for the district's care and
treatment of a person who is confined in a Castro County jail
facility and is not a district resident. (Acts 57th Leg., R.S., Ch.
103, Secs. 14A(a) (part), (b).)
       Sec.1013.117.NONPROFIT CORPORATION. (a) The district
may create and sponsor a nonprofit corporation under the Business
Organizations Code and may contribute money to or solicit money for
the corporation.
       (a-1)  On or before December 31, 2009, the district may
create and sponsor a nonprofit corporation under the Texas
Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
Texas Civil Statutes) or the Business Organizations Code, as
applicable, and may contribute money to or solicit money for the
corporation.
       (b)  The corporation may use money, other than money the
corporation pays to the district, only to provide health care or
other services the district is authorized to provide under this
chapter.
       (c)  The corporation may invest the corporation's money in
any manner in which the district may invest the district's money,
including investing money as authorized by Chapter 2256, Government
Code.
       (d)  The board shall establish controls to ensure that the
corporation uses its money as required by this section.
       (e)  This subsection and Subsection (a-1) expire December
31, 2009. (Acts 57th Leg., R.S., Ch. 103, Sec. 8A(i).)
       Sec.1013.118.AUTHORITY TO SUE AND BE SUED. As a
governmental agency, the district may sue and be sued in its own
name in any court of this state. (Acts 57th Leg., R.S., Ch. 103,
Sec. 18 (part).)
[Sections 1013.119-1013.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
       Sec.1013.151.BUDGET. The board annually shall require a
budget to be prepared for the next fiscal year that includes:
             (1)  proposed expenditures and disbursements;
             (2)  estimated receipts and collections; and
             (3)  the amount of taxes required to be imposed for the
year. (Acts 57th Leg., R.S., Ch. 103, Sec. 9(b) (part).)
       Sec.1013.152.PROPOSED BUDGET:NOTICE AND HEARING. (a)
The board shall hold a public hearing on the proposed budget.
       (b)  Notice of the hearing must be published at least once in
a newspaper of general circulation in Castro County not later than
the 10th day before the date of the hearing.
       (c)  Any district taxpayer is entitled to:
             (1)  appear at the time and place designated in the
notice; and
             (2)  be heard regarding any item included in the
proposed budget. (Acts 57th Leg., R.S., Ch. 103, Sec. 9(b) (part).)
       Sec.1013.153.FISCAL YEAR.   The district operates on a
fiscal year established by the board. (Acts 57th Leg., R.S., Ch.
103, Sec. 9(a) (part).)
       Sec.1013.154.ANNUAL AUDIT. (a)  The board annually shall
have an independent audit made of the district's books and records
for the fiscal year.
       (b)  Not later than December 31 each year, the audit shall be
filed:
             (1)  with the comptroller; and
             (2)  at the district office. (Acts 57th Leg., R.S., Ch.
103, Sec. 9(a) (part).)
       Sec.1013.155.DEPOSITORY OR TREASURER. (a) The board by
resolution shall designate a bank or banks in Castro County as the
district's depository or treasurer.  A designated bank serves for
three years and until a successor is designated.
       (b)  All district money shall be secured in the manner
provided for securing county funds. (Acts 57th Leg., R.S., Ch. 103,
Sec. 11.)
       Sec.1013.156.AUTHORITY TO BORROW MONEY; SECURITY. (a)
The board may borrow money for district purposes on district credit
or secured by district revenue.  The rate may not exceed the maximum
annual percentage rate allowed by law for district obligations at
the time the loan is made.
       (b)  To secure a loan, the board may pledge:
             (1)  district revenue that is not pledged to pay the
district's bonded indebtedness;
             (2)  a district tax to be imposed by the district in the
next 12-month period that is not pledged to pay the principal of or
interest on district bonds; or
             (3)  district bonds that have been authorized but not
sold.
       (c)  A loan for which taxes or bonds are pledged must mature
not later than the first anniversary of the date the loan is made. A
loan for which district revenue is pledged must mature not later
than the fifth anniversary of the date the loan is made. (Acts 57th
Leg., R.S., Ch. 103, Secs. 6B (part), 16A.)
[Sections 1013.157-1013.200 reserved for expansion]
SUBCHAPTER E. BONDS
       Sec.1013.201.GENERAL OBLIGATION BONDS. The board may
issue and sell general obligation bonds in the name and on the faith
and credit of the district for any purpose relating to:
             (1)  the purchase, construction, acquisition, repair,
or renovation of buildings or improvements; and
             (2)  equipping buildings or improvements for hospital
purposes. (Acts 57th Leg., R.S., Ch. 103, Sec. 6(a).)
       Sec.1013.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At
the time general obligation bonds are issued by the district under
Section 1013.201, the board shall impose an ad valorem tax at a rate
sufficient to create an interest and sinking fund to pay the
principal of and interest on the bonds as the bonds mature.
       (b)  The tax required by this section together with any other
ad valorem tax the district imposes may not in any year exceed 75
cents on each $100 valuation of all taxable property in the
district.  (Acts 57th Leg., R.S., Ch. 103, Sec. 6(b) (part).)
       Sec.1013.203.GENERAL OBLIGATION BOND ELECTION. (a)  The
district may issue general obligation bonds only if the bonds are
authorized by a majority of the district voters voting at an
election held for that purpose.
       (b)  The board may order the election on its own motion.
       (c)  The order calling the election must specify:
             (1)  the location of the polling places;
             (2)  the presiding election officers;
             (3)  the purpose of the bond issuance;
             (4)  the amount of the bonds to be authorized;
             (5)  the maximum interest rate of the bonds; and
             (6)  the maximum maturity of the bonds.
       (d)  Notice of a bond election shall be given by publishing a
substantial copy of the order calling the election in a newspaper of
general circulation in Castro County once a week for two
consecutive weeks before the date of the election. The first
publication must occur at least 14 days before the date of the
election.  (Acts 57th Leg., R.S., Ch. 103, Sec. 6(d) (part).)
       Sec.1013.204.MATURITY OF GENERAL OBLIGATION BONDS.
District general obligation bonds must mature not later than 40
years after the date of issuance. (Acts 57th Leg., R.S., Ch. 103,
Sec. 6(d) (part).)
       Sec.1013.205.EXECUTION OF GENERAL OBLIGATION BONDS. (a)
The board president shall execute the general obligation bonds in
the district's name.
       (b)  The board secretary shall countersign the bonds. (Acts
57th Leg., R.S., Ch. 103, Sec. 6(c) (part).)
       Sec.1013.206.REVENUE BONDS. (a) The board may issue
revenue bonds in the name and on the faith and credit of the
district to:
             (1)  purchase, construct, acquire, repair, or renovate
buildings or improvements;
             (2)  equip buildings or improvements for hospital
purposes; or
             (3)  acquire real property for hospital purposes.
       (b)  The bonds must be payable from and secured by a pledge of
all or part of the revenue derived from the operation of the
district's hospital system.
       (c)  The bonds may be additionally secured by a mortgage or
deed of trust on all or part of district property.
       (d)  The bonds must be issued in the manner provided by
Sections 264.042, 264.043, and 264.046-264.049, Health and Safety
Code, for issuance of revenue bonds by a county hospital authority.
(Acts 57th Leg., R.S., Ch. 103, Sec. 6A(d).)
       Sec.1013.207.REFUNDING BONDS. (a) The board may, without
an election, issue refunding bonds to refund outstanding bonds
issued or assumed by the district.
       (b)  A refunding bond may be:
             (1)  sold, with the proceeds of the refunding bonds
applied to the payment of the bonds to be refunded; or
             (2)  exchanged wholly or partly for not less than a
similar amount of outstanding bonds and the unpaid matured interest
on the bonds. (Acts 57th Leg., R.S., Ch. 103, Secs. 6(d) (part),
(e) (part).)
       Sec.1013.208.BONDS EXEMPT FROM TAXATION. The following
are exempt from taxation by this state or a political subdivision of
this state:
             (1)  bonds issued by the district;
             (2)  any transaction relating to the bonds; and
             (3)  profits made in the sale of the bonds. (Acts 57th
Leg., R.S., Ch. 103, Sec. 6A(c) (part).)
[Sections 1013.209-1013.250 reserved for expansion]
SUBCHAPTER F. TAXES
       Sec.1013.251.IMPOSITION OF AD VALOREM TAX. (a) On final
approval of the annual budget, the board may impose a tax on all
property in the district subject to district taxation.
       (b)  The tax may be used to pay:
             (1)  indebtedness issued or assumed by the district;
and
             (2)  the maintenance and operating expenses of the
district.
       (c)  The district may not impose a tax to pay the principal of
or interest on revenue bonds issued by the district. (Acts 57th
Leg., R.S., Ch. 103, Secs. 5A(a), (b) (part), (c) (part), (d), (e),
9(b) (part).)
       Sec.1013.252.TAX RATE. (a) The board may impose the tax
at a rate not to exceed the limit approved by the voters at the
election authorizing the imposition of the tax.
       (b)  The tax rate for all purposes may not exceed 75 cents on
each $100 valuation of all taxable property in the district. (Acts
57th Leg., R.S., Ch. 103, Secs. 5A(b) (part), (c), 6(b) (part).)
       Sec.1013.253.TAX ASSESSOR-COLLECTOR. (a)  The board may
provide for the appointment of a tax assessor-collector for the
district or may contract for the assessment and collection of taxes
as provided by the Tax Code.
       (b)  The tax assessor-collector shall assess and collect
taxes imposed by the district.  (Acts 57th Leg., R.S., Ch. 103,
Secs. 5A(g), 9(b) (part).)
[Sections 1013.254-1013.300 reserved for expansion]
SUBCHAPTER G. DISSOLUTION
       Sec.1013.301.DISSOLUTION; ELECTION. (a) The district
may be dissolved only on approval of a majority of the district
voters voting in an election held for that purpose.
       (b)  The board may order an election on the question of
dissolving the district and disposing of the district's assets and
obligations.
       (c)  The board shall order an election if the board receives
a petition requesting an election that is signed by a number of
district residents equal to at least 15 percent of the registered
voters in the district.
       (d)  The order calling the election must state:
             (1)  the nature of the election, including the
proposition to appear on the ballot;
             (2)  the date of the election;
             (3)  the hours during which the polls will be open; and
             (4)  the location of the polling places.
       (e)  Section 41.001(a), Election Code, does not apply to an
election ordered under this section. (Acts 57th Leg., R.S., Ch.
103, Secs. 21(a), (b), (c), (d) (part).)
       Sec.1013.302.NOTICE OF ELECTION. (a) The board shall
give notice of an election under this subchapter by publishing once
a week for two consecutive weeks the election order in a newspaper
with general circulation in the district.
       (b)  The first publication of the notice must appear not
later than the 35th day before the date set for the election. (Acts
57th Leg., R.S., Ch. 103, Sec. 21(e) (part).)
       Sec.1013.303.BALLOT. The ballot for an election under
this subchapter must be printed to permit voting for or against the
proposition: "The dissolution of the Castro County Hospital
District." (Acts 57th Leg., R.S., Ch. 103, Sec. 21(e) (part).)
       Sec.1013.304.ELECTION RESULTS. (a) If a majority of the
votes in an election under this subchapter favor dissolution, the
board shall find that the district is dissolved.
       (b)  If a majority of the votes in the election do not favor
dissolution, the board shall continue to administer the district
and another election on the question of dissolution may not be held
before the first anniversary of the date of the most recent election
to dissolve the district. (Acts 57th Leg., R.S., Ch. 103, Sec.
21(f).)
       Sec.1013.305.TRANSFER OR ADMINISTRATION OF ASSETS. (a)
If a majority of the votes in the election held under this
subchapter favor dissolution, the board shall:
             (1)  transfer the land, buildings, improvements,
equipment, and other assets that belong to the district to Castro
County or another governmental agency in Castro County; or
             (2)  administer the property, assets, and debts until
all money has been disposed of and all district debts have been paid
or settled.
       (b)  If the board makes the transfer under Subsection (a)(1),
the county or agency assumes all debts and obligations of the
district at the time of the transfer, and the district is dissolved.
(Acts 57th Leg., R.S., Ch. 103, Secs. 21(g), (h).)
       Sec.1013.306.SALE OR TRANSFER OF ASSETS AND LIABILITIES.
(a) The district may not be dissolved unless the board provides for
the sale or transfer of the district's assets and liabilities to
another person.
       (b)  The dissolution of the district and the sale or transfer
of the district's assets or liabilities may not contravene a trust
indenture or bond resolution relating to the district's outstanding
bonds. The dissolution and sale or transfer does not diminish or
impair the rights of a holder of an outstanding bond, warrant, or
other obligation of the district.
       (c)  The sale or transfer of the district's assets and
liabilities must satisfy the debt and bond obligations of the
district in a manner that protects the interests of district
residents, including the residents' collective property rights in
the district's assets.
       (d)  The district may not transfer or dispose of the
district's assets except for due compensation unless:
             (1)  the transfer is made to another governmental
agency that serves the district; and
             (2)  the transferred assets are to be used for the
benefit of the district's residents.
       (e)  A grant from federal funds is an obligation to be repaid
in satisfaction. (Acts 57th Leg., R.S., Ch. 103, Secs. 21(n), (o).)
       Sec. 1013.307.  IMPOSITION OF TAX AND RETURN OF SURPLUS
TAXES. (a) After the board finds that the district is dissolved,
the board shall:
             (1)  determine the debt owed by the district; and
             (2)  impose on the property included in the district's
tax rolls a tax that is in proportion of the debt to the property
value.
       (b)  On the payment of all outstanding debts and obligations
of the district, the board shall order the secretary to return to
each district taxpayer the taxpayer's pro rata share of all unused
tax money.
       (c)  A taxpayer may request that the taxpayer's share of
surplus tax money be credited to the taxpayer's county taxes. If a
taxpayer requests the credit, the board shall direct the secretary
to transmit the money to the county tax assessor-collector. (Acts
57th Leg., R.S., Ch. 103, Secs. 21(i), (j), (k).)
       Sec.1013.308.REPORT; DISSOLUTION ORDER. (a) After the
district has paid all its debts and has disposed of all its money
and other assets as prescribed by this subchapter, the board shall
file a written report with the Commissioners Court of Castro County
summarizing the board's actions in dissolving the district.
       (b)  Not later than the 10th day after the date the
Commissioners Court of Castro County receives the report and
determines that the requirements of this subchapter have been
fulfilled, the commissioners court shall enter an order dissolving
the district and releasing the board from any further duty or
obligation.  (Acts 57th Leg., R.S., Ch. 103, Secs. 21(l), (m).)
CHAPTER 1014.  COLLINGSWORTH COUNTY HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1014.001.  DEFINITIONS
Sec. 1014.002.  AUTHORITY FOR CREATION
Sec. 1014.003.  ESSENTIAL PUBLIC FUNCTION
Sec. 1014.004.  DISTRICT TERRITORY
Sec. 1014.005.  DISTRICT SUPPORT AND MAINTENANCE NOT
                 STATE OBLIGATION
Sec. 1014.006.  RESTRICTION ON STATE FINANCIAL
                 ASSISTANCE
[Sections 1014.007-1014.050 reserved for expansion]
SUBCHAPTER B.  DISTRICT ADMINISTRATION
Sec. 1014.051.  BOARD ELECTION; TERM
Sec. 1014.052.  BALLOT PETITION
Sec. 1014.053.  QUALIFICATIONS FOR OFFICE
Sec. 1014.054.  BOARD VACANCY
Sec. 1014.055.  OFFICERS
Sec. 1014.056.  COMPENSATION; EXPENSES
Sec. 1014.057.  VOTING REQUIREMENT
Sec. 1014.058.  MAINTENANCE OF RECORDS; PUBLIC
                 INSPECTION
Sec. 1014.059.  INDIVIDUAL LIABILITY OF DIRECTORS
Sec. 1014.060.  DISTRICT ADMINISTRATOR; ASSISTANT
                 ADMINISTRATOR
Sec. 1014.061.  GENERAL DUTIES OF DISTRICT
                 ADMINISTRATOR
Sec. 1014.062.  EMPLOYEES
Sec. 1014.063.  LEGAL COUNSEL; OTHER PROFESSIONAL
                 SERVICES
Sec. 1014.064.  RETIREMENT PROGRAM
[Sections 1014.065-1014.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
Sec. 1014.101.  DISTRICT RESPONSIBILITY
Sec. 1014.102.  RESTRICTION ON COUNTY OR MUNICIPALITY
                 TAXATION AND DEBT
Sec. 1014.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION
Sec. 1014.104.  HOSPITAL SYSTEM
Sec. 1014.105.  RULES
Sec. 1014.106.  PURCHASING AND ACCOUNTING PROCEDURES
Sec. 1014.107.  BUILDINGS
Sec. 1014.108.  EMINENT DOMAIN
Sec. 1014.109.  GIFTS AND ENDOWMENTS
Sec. 1014.110.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                 FOR CARE AND TREATMENT
Sec. 1014.111.  PAYMENT FOR TREATMENT; PROCEDURES
Sec. 1014.112.  AUTHORITY TO SUE AND BE SUED
[Sections 1014.113-1014.150 reserved for expansion]
SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
Sec. 1014.151.  BUDGET
Sec. 1014.152.  NOTICE; HEARING; ADOPTION OF BUDGET
Sec. 1014.153.  AMENDMENTS TO BUDGET
Sec. 1014.154.  RESTRICTION ON EXPENDITURES
Sec. 1014.155.  FISCAL YEAR
Sec. 1014.156.  ANNUAL AUDIT
Sec. 1014.157.  FINANCIAL REPORT
Sec. 1014.158.  DEPOSITORY
[Sections 1014.159-1014.200 reserved for expansion]
SUBCHAPTER E.  BONDS
Sec. 1014.201.  GENERAL OBLIGATION BONDS
Sec. 1014.202.  TAX TO PAY GENERAL OBLIGATION BONDS
Sec. 1014.203.  GENERAL OBLIGATION BOND ELECTION
Sec. 1014.204.  EXECUTION OF GENERAL OBLIGATION BONDS
Sec. 1014.205.  REVENUE OR SPECIAL OBLIGATION BONDS
Sec. 1014.206.  CHARGES FOR SERVICES RENDERED
Sec. 1014.207.  REFUNDING BONDS
Sec. 1014.208.  BONDS EXEMPT FROM TAXATION
[Sections 1014.209-1014.250 reserved for expansion]
SUBCHAPTER F.  TAXES
Sec. 1014.251.  IMPOSITION OF AD VALOREM TAX
Sec. 1014.252.  TAX RATE
Sec. 1014.253.  TAX ASSESSOR-COLLECTOR
CHAPTER 1014.  COLLINGSWORTH COUNTY HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.1014.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Collingsworth County
Hospital District. (New.)
       Sec.1014.002.AUTHORITY FOR CREATION. The district is
created under the authority of Section 9, Article IX, Texas
Constitution, and has the rights, powers, and duties prescribed by
this chapter.  (Acts 60th Leg., R.S., Ch. 262, Sec. 1 (part).)
       Sec.1014.003.ESSENTIAL PUBLIC FUNCTION.  The district
performs an essential public function in carrying out the purposes
of this chapter.  (Acts 60th Leg., R.S., Ch. 262, Sec. 11 (part).)
       Sec.1014.004.DISTRICT TERRITORY. The boundaries of the
district are coextensive with the boundaries of Collingsworth
County, Texas. (Acts 60th Leg., R.S., Ch. 262, Sec. 1 (part).)
       Sec. 1014.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE
OBLIGATION. The support and maintenance of the district may not
become a charge against or obligation of this state. (Acts 60th
Leg., R.S., Ch. 262, Sec. 22 (part).)
       Sec.1014.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.
The legislature may not make a direct appropriation for the
construction, maintenance, or improvement of a district facility.
(Acts 60th Leg., R.S., Ch. 262, Sec. 22 (part).)
[Sections 1014.007-1014.050 reserved for expansion]
SUBCHAPTER B.  DISTRICT ADMINISTRATION
       Sec.1014.051.BOARD ELECTION; TERM. (a)  The district is
governed by a board of seven directors elected from the district at
large.
       (b)  Directors serve staggered two-year terms unless
four-year terms are established under Section 285.081, Health and
Safety Code.
       (c)  The election order must state the time, place, and
purpose of the election. (Acts 60th Leg., R.S., Ch. 262, Secs. 4(a)
(part), (b) (part).)
       Sec.1014.052.BALLOT PETITION. A person who wants to have
the person's name printed on the ballot as a candidate for director
must file with the board secretary a petition requesting that
action.  The petition must be:
             (1)  signed by at least 15 registered voters; and
             (2)  filed at least 25 days before the date of the
election.  (Acts 60th Leg., R.S., Ch. 262, Sec. 4(b) (part).)
       Sec.1014.053.QUALIFICATIONS FOR OFFICE.  To be eligible
to hold office as a director, a person must be a resident
property-owning taxpaying voter of the district.  (Acts 60th Leg.,
R.S., Ch. 262, Sec. 4(c) (part).)
       Sec.1014.054.BOARD VACANCY.  If a vacancy occurs in the
office of director, the remaining directors by majority vote shall
appoint a director for the unexpired term.  (Acts 60th Leg., R.S.,
Ch. 262, Sec. 4(b) (part).)
       Sec.1014.055.OFFICERS.  (a)  The board shall elect from
among its members a president, vice president, secretary, and other
officers as in the judgment of the board are necessary.
       (b)  The president is the chief executive officer of the
district and has the same right to vote as any other director.
       (c)  If the president is absent or fails or declines to act,
the vice president shall perform the president's duties and
exercise the president's powers under this chapter. (Acts 60th
Leg., R.S., Ch. 262, Sec. 4(c) (part).)
       Sec.1014.056.COMPENSATION; EXPENSES.  A director serves
without compensation but may receive actual expenses incurred in
attending to district business on approval of the expenses by the
remainder of the board.  (Acts 60th Leg., R.S., Ch. 262, Sec. 4(c)
(part).)
       Sec.1014.057.VOTING REQUIREMENT.  A concurrence of four
directors is sufficient in any matter relating to district
business. (Acts 60th Leg., R.S., Ch. 262, Sec. 4(d) (part).)
       Sec.1014.058.MAINTENANCE OF RECORDS; PUBLIC INSPECTION.
(a)  The board shall:
             (1)  keep an account of all board meetings and
proceedings; and
             (2)  maintain at the district's principal office all
district records and accounts, including all contracts, notices,
duplicate vouchers, and duplicate receipts.
       (b)  The information described by Subsection (a) shall be
open to public inspection at the district's principal office at all
reasonable times. (Acts 60th Leg., R.S., Ch. 262, Sec. 4(d)
(part).)
       Sec.1014.059.INDIVIDUAL LIABILITY OF DIRECTORS.  A
director is individually liable only for the director's individual
misapplication of public money.  (Acts 60th Leg., R.S., Ch. 262,
Sec. 5(a) (part).)
       Sec. 1014.060.  DISTRICT ADMINISTRATOR; ASSISTANT
ADMINISTRATOR.  (a)  The board shall appoint a qualified person as
district administrator.
       (b)  The board may appoint an assistant administrator.
       (c)  The district administrator and any assistant
administrator are entitled to the compensation determined by the
board.
       (d)  The board may execute an employment contract with the
district administrator or assistant administrator for a term of not
more than three years. The employment contract may be renewed or
extended annually.
       (e)  On assuming the duties of district administrator, the
administrator shall execute a bond payable to the district in an
amount set by the board of not less than $25,000 that:
             (1)  is conditioned on the administrator performing the
administrator's duties; and
             (2)  contains other conditions the board may require.  
(Acts 60th Leg., R.S., Ch. 262, Sec. 5(a) (part).)
       Sec.1014.061.GENERAL DUTIES OF DISTRICT ADMINISTRATOR.  
The district administrator shall:
             (1)  stay informed on the latest methods of hospital
administration and the care of hospital patients; and
             (2)  subject to the limitations prescribed by the
board:
                   (A)  supervise the work and activities of the
district; and
                   (B)  direct the affairs of the district.  (Acts
60th Leg., R.S., Ch. 262, Sec. 5(a) (part).)
       Sec.1014.062.EMPLOYEES.  The board may employ nurses,
technicians, and other employees for the efficient operation of the
district or may provide that the district administrator has that
authority.  (Acts 60th Leg., R.S., Ch. 262, Sec. 5(b) (part).)
       Sec.1014.063.LEGAL COUNSEL; OTHER PROFESSIONAL SERVICES.  
The board may employ legal counsel or contract for other
professional services as the board considers advisable.  (Acts 60th
Leg., R.S., Ch. 262, Sec. 18.)
       Sec.1014.064.RETIREMENT PROGRAM.  The board may contract
with this state or the federal government to establish or continue a
retirement program for the benefit of the district's employees.
(Acts 60th Leg., R.S., Ch. 262, Sec. 5(b) (part).)
[Sections 1014.065-1014.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
       Sec.1014.101.DISTRICT RESPONSIBILITY.  The district has
full responsibility for:
             (1)  operating all hospital facilities for providing
medical and hospital care of the indigent persons in the district;
and
             (2)  providing medical and hospital care for the
district's needy inhabitants.  (Acts 60th Leg., R.S., Ch. 262,
Secs. 2 (part), 21 (part).)
       Sec. 1014.102.  RESTRICTION ON COUNTY OR MUNICIPALITY
TAXATION AND DEBT. Collingsworth County or a municipality in
Collingsworth County may not impose a tax or issue bonds or other
obligations for hospital purposes or for medical treatment of
indigent persons in the district.  (Acts 60th Leg., R.S., Ch. 262,
Sec. 21 (part).)
       Sec.1014.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.  
The board shall manage, control, and administer the district's
hospitals and hospital system.  (Acts 60th Leg., R.S., Ch. 262, Sec.
5(a) (part).)
       Sec.1014.104.HOSPITAL SYSTEM.  The district shall provide
for the establishment of a hospital system by:
             (1)  purchasing, constructing, acquiring, repairing,
or renovating buildings and equipment;
             (2)  equipping the buildings; and
             (3)  administering the buildings and equipment for
hospital purposes.  (Acts 60th Leg., R.S., Ch. 262, Sec. 2 (part).)
       Sec.1014.105.RULES.  The board may adopt rules for the
operation of the district and as required to administer this
chapter.  (Acts 60th Leg., R.S., Ch. 262, Secs. 5(a) (part), 12
(part).)
       Sec.1014.106.PURCHASING AND ACCOUNTING PROCEDURES.  (a)  
The board may prescribe:
             (1)  the method and manner of making purchases and
expenditures by and for the district; and
             (2)  all accounting and control procedures.
       (b)  A purchase that involves the expenditure of more than
$2,000 may be made only after advertising in the manner provided by
Chapter 252 and Subchapter C, Chapter 262, Local Government Code.  
(Acts 60th Leg., R.S., Ch. 262, Sec. 12 (part).)
       Sec.1014.107.BUILDINGS.  The board shall determine the
type, number, and location of buildings required to maintain an
adequate hospital system.  (Acts 60th Leg., R.S., Ch. 262, Sec. 10.)
       Sec.1014.108.EMINENT DOMAIN.  (a) The district may
exercise the power of eminent domain to acquire a fee simple or
other interest in any type of property located in district
territory if the interest is necessary or convenient for the
district to exercise a power, right, or privilege conferred by this
chapter.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code.  (Acts 60th
Leg., R.S., Ch. 262, Sec. 16.)
       Sec.1014.109.GIFTS AND ENDOWMENTS. The board may accept
for the district a gift or endowment to be held in trust and
administered by the board for the purposes and under the
directions, limitations, or other provisions prescribed in writing
by the donor that are not inconsistent with the proper management
and objectives of the district.  (Acts 60th Leg., R.S., Ch. 262,
Sec. 20.)
       Sec. 1014.110.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
CARE AND TREATMENT.  (a)  The board may contract with a county or
municipality located outside the district's boundaries for the care
and treatment of a sick or injured person of that county or
municipality.
       (b)  The board may contract with this state or a federal
agency for the treatment of a sick or injured person for whom this
state or the agency is responsible. (Acts 60th Leg., R.S., Ch. 262,
Sec. 5(b) (part).)
       Sec.1014.111.PAYMENT FOR TREATMENT; PROCEDURES. (a)
When a patient who resides in the district is admitted to a district
facility, the district administrator shall have an inquiry made
into the circumstances of:
             (1)  the patient; and
             (2)  the patient's relatives who are legally liable for
the patient's support.
       (b)  If the district administrator determines that the
patient or those relatives cannot pay all or part of the costs of
the care and treatment in the hospital, the amount of the costs that
cannot be paid becomes a charge against the district.
       (c)  If the district administrator determines that the
patient or those relatives can pay for all or part of the costs of
the patient's care and treatment, the patient or those relatives
shall be ordered to pay the district a specified amount each week
for the patient's support. The amount ordered must be
proportionate to the person's financial ability and may not exceed
the actual per capita cost of maintenance.
       (d)  The district administrator may collect the amount from
the patient's estate, or from any relative who is legally liable for
the patient's support, in the manner provided by law for the
collection of expenses of the last illness of a deceased person.
       (e)  If there is a dispute as to the ability to pay, or doubt
in the mind of the district administrator, the board shall hold a
hearing and, after calling witnesses, shall:
             (1)  resolve the dispute or doubt; and
             (2)  issue any appropriate orders.
       (f)  A final order of the board may be appealed to the
district court. The substantial evidence rule applies to the
appeal.  (Acts 60th Leg., R.S., Ch. 262, Sec. 19.)
       Sec.1014.112.AUTHORITY TO SUE AND BE SUED.  The district,
through the board, may sue and be sued.  (Acts 60th Leg., R.S., Ch.
262, Sec. 5(a) (part).)
[Sections 1014.113-1014.150 reserved for expansion]
SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
       Sec.1014.151.BUDGET.  The district administrator shall
prepare an annual budget for approval by the board.  (Acts 60th
Leg., R.S., Ch. 262, Sec. 6 (part).)
       Sec.1014.152.NOTICE; HEARING; ADOPTION OF BUDGET.  (a)  
The board shall hold a public hearing on the proposed annual budget.
       (b)  Notice of the hearing must be published one time at
least 10 days before the date of the hearing.
       (c)  The board must approve the budget.  (Acts 60th Leg.,
R.S., Ch. 262, Sec. 6 (part).)
       Sec.1014.153.AMENDMENTS TO BUDGET.  The budget may be
amended as required by circumstances.  The board must approve all
amendments.  (Acts 60th Leg., R.S., Ch. 262, Sec. 6 (part).)
       Sec.1014.154.RESTRICTION ON EXPENDITURES.  Money may be
spent only for an expense included in the budget or an amendment to
the budget.  (Acts 60th Leg., R.S., Ch. 262, Sec. 6 (part).)
       Sec.1014.155.FISCAL YEAR. The district operates on a
fiscal year that begins on October 1 and ends on September 30.  
(Acts 60th Leg., R.S., Ch. 262, Sec. 6 (part).)
       Sec.1014.156.ANNUAL AUDIT. (a)  The district annually
shall have an audit made of the district's financial condition.
       (b)  The audit shall be open to inspection at all times at the
district's principal office.  (Acts 60th Leg., R.S., Ch. 262, Sec. 6
(part).)
       Sec.1014.157.FINANCIAL REPORT. As soon as practicable
after the close of each fiscal year, the district administrator
shall prepare for the board:
             (1)  a complete sworn statement of all district money;
and
             (2)  a complete account of the disbursements of that
money.  (Acts 60th Leg., R.S., Ch. 262, Sec. 6 (part).)
       Sec.1014.158.DEPOSITORY. (a)  The board shall select one
or more banks in the district to serve as a depository for district
money.
       (b)  District money shall be immediately deposited on
receipt with a depository bank, except that sufficient money must
be remitted to an appropriate bank to pay the principal of and
interest on the district's outstanding bonds or other obligations
on or before the maturity date of the principal and interest.
       (c)  To the extent that money in a depository bank is not
insured by the Federal Deposit Insurance Corporation, the money
must be secured in the manner provided by law for the security of
county funds.
       (d)  Membership on the district's board of an officer or
director of a bank does not disqualify the bank from being selected
as a depository bank.  (Acts 60th Leg., R.S., Ch. 262, Sec. 13.)
[Sections 1014.159-1014.200 reserved for expansion]
SUBCHAPTER E.  BONDS
       Sec.1014.201.GENERAL OBLIGATION BONDS.  The board may
issue and sell general obligation bonds in the name and on the faith
and credit of the district for any purpose related to the purchase,
construction, acquisition, repair, or renovation of improvements,
and equipping the improvements for a hospital and the hospital
system, as determined by the board. (Acts 60th Leg., R.S., Ch. 262,
Sec. 7(a) (part).)
       Sec.1014.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a)  At
the time general obligation bonds are issued by the district under
Section 1014.201, the board shall impose an ad valorem tax on all
property in the district subject to district taxation at a rate
sufficient to create an interest and sinking fund and to pay the
principal of and interest on the bonds as the bonds mature.
       (b)  The tax required by this section together with any other
ad valorem tax the district imposes may not in any year exceed 75
cents on each $100 valuation of taxable property in the district.  
(Acts 60th Leg., R.S., Ch. 262, Sec. 7(a) (part).)
       Sec.1014.203.GENERAL OBLIGATION BOND ELECTION.  (a)  The
district may issue general obligation bonds only if the bonds are
authorized by a majority of the district voters voting at an
election held for that purpose.
       (b)  The board shall call the election. The election must be
held in accordance with Chapter 1251, Government Code.
       (c)  The bond election order must specify:
             (1)  the date of the election;
             (2)  the location of the polling places;
             (3)  the presiding election officers;
             (4)  the amount of the bonds to be authorized;
             (5)  the maximum maturity of the bonds; and
             (6)  the maximum interest rate of the bonds.  (Acts 60th
Leg., R.S., Ch. 262, Sec. 7(a) (part).)
       Sec.1014.204.EXECUTION OF GENERAL OBLIGATION BONDS.  (a)  
The board president shall execute the general obligation bonds in
the district's name.
       (b)  The board secretary shall attest the bonds as provided
by Chapter 618, Government Code.  (Acts 60th Leg., R.S., Ch. 262,
Sec. 7(a)  (part).)
       Sec.1014.205.REVENUE OR SPECIAL OBLIGATION BONDS.  (a)  
The board may issue and sell revenue or special obligation bonds for
the purposes provided by Section 1014.201.
       (b)  Special obligation bonds must be payable from the
revenue of the district's entire hospital system, including that
portion originally acquired and all past or future extensions,
additions, or replacements, excluding taxes, after deducting the
cost of maintaining and operating the system. For purposes of this
subsection, the cost of maintaining and operating the system:
             (1)  may include only the items set forth and defined in
the resolution authorizing the bond issuance; and
             (2)  may not include the cost of providing medical or
hospital care for the district's needy inhabitants.
       (c)  A cost described by Subsection (b)(2) is a maintenance
and operating expense for budget and tax purposes.
       (d)  The district may issue revenue bonds without an
election.
       (e)  Revenue bonds may be additionally secured by:
             (1)  a mortgage or deed of trust on real property;
             (2)  a chattel mortgage on the district's personal
property; or
             (3)  both.
       (f)  The board may issue bonds that are a junior lien on the
district's net revenue or property and additional parity bonds
under conditions specified in the bond resolution or trust
indenture.
       (g)  Money for the payment of not more than two years'
interest on the bonds and an amount the board estimates will be
required for maintenance and operating expenses during the first
year of operation may be set aside out of the proceeds from the sale
of the bonds.
       (h)  A revenue bond issued by the district must contain the
following provision:  "The holder of the bond may not demand payment
of this bond or appurtenant coupons out of money raised or to be
raised by taxation."  (Acts 60th Leg., R.S., Ch. 262, Secs. 8(a),
(b) (part), (c).)
       Sec.1014.206.CHARGES FOR SERVICES RENDERED. If the board
issues revenue bonds, the board shall charge and collect rates for
services rendered by the hospital system that are sufficient to:
             (1)  pay the maintenance and operating expenses
described by Section 1014.205;
             (2)  pay the principal and interest on the bonds as each
becomes due; and
             (3)  create and maintain a bond reserve fund and other
funds as provided in the bond resolution or trust indenture.  (Acts
60th Leg., R.S., Ch. 262, Sec. 8(b) (part).)
       Sec.1014.207.REFUNDING BONDS.  (a)  The board may, without
an election, issue refunding bonds to refund any bonds issued or
assumed by the district.
       (b)  A refunding bond may be:
             (1)  sold, with the proceeds of the refunding bond
applied to the payment of the outstanding bonds; or
             (2)  exchanged wholly or partly for not less than a
similar principal amount of the outstanding bonds.  (Acts 60th
Leg., R.S., Ch. 262, Secs. 7(a) (part), (b) (part).)
       Sec.1014.208.BONDS EXEMPT FROM TAXATION.  The following
are exempt from taxation by this state or a political subdivision of
this state:
             (1)  bonds issued by the district;
             (2)  the transfer and issuance of the bonds; and
             (3)  profits made in the sale of the bonds.  (Acts 60th
Leg., R.S., Ch. 262, Sec. 11 (part).)
[Sections 1014.209-1014.250 reserved for expansion]
SUBCHAPTER F.  TAXES
       Sec.1014.251.IMPOSITION OF AD VALOREM TAX. (a)  The board
shall impose a tax on property in the district subject to district
taxation.
       (b)  The board shall impose the tax to pay:
             (1)  indebtedness issued or assumed by the district;
and
             (2)  the maintenance and operating expenses of the
district.  (Acts 60th Leg., R.S., Ch. 262, Secs. 3(a) (part), 14
(part).)
       Sec.1014.252.TAX RATE. (a)  The board may impose the tax
at a rate not to exceed 75 cents on each $100 valuation of taxable
property in the district.
       (b)  In setting the tax rate, the board shall consider the
income of the district from sources other than taxation.  (Acts 60th
Leg., R.S., Ch. 262, Secs. 3(b) (part), 14 (part).)
       Sec.1014.253.TAX ASSESSOR-COLLECTOR. The tax
assessor-collector of Collingsworth County shall assess and
collect taxes imposed by the district.  (Acts 60th Leg., R.S., Ch.
262, Sec. 17 (part).)
CHAPTER 1015.  FAIRFIELD HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1015.001.  DEFINITIONS
Sec. 1015.002.  AUTHORITY FOR OPERATION
Sec. 1015.003.  ESSENTIAL PUBLIC FUNCTION
Sec. 1015.004.  DISTRICT TERRITORY
Sec. 1015.005.  DISTRICT SUPPORT AND MAINTENANCE NOT
                 STATE OBLIGATION
Sec. 1015.006.  RESTRICTION ON STATE FINANCIAL
                 ASSISTANCE
[Sections 1015.007-1015.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 1015.051.  BOARD ELECTION; TERM
Sec. 1015.052.  NOTICE OF ELECTION
Sec. 1015.053.  QUALIFICATIONS FOR OFFICE
Sec. 1015.054.  BOND; RECORD OF BOND
Sec. 1015.055.  BOARD VACANCY
Sec. 1015.056.  OFFICERS
Sec. 1015.057.  COMPENSATION; EXPENSES
Sec. 1015.058.  VOTING REQUIREMENT
Sec. 1015.059.  DISTRICT ADMINISTRATOR
Sec. 1015.060.  GENERAL DUTIES OF DISTRICT
                 ADMINISTRATOR
Sec. 1015.061.  ASSISTANT DISTRICT ADMINISTRATOR;
                 ATTORNEY
Sec. 1015.062.  APPOINTMENT AND RECRUITMENT OF STAFF
                 AND EMPLOYEES
Sec. 1015.063.  CONTINUING EDUCATION; RETRAINING
Sec. 1015.064.  RETIREMENT BENEFITS
[Sections 1015.065-1015.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 1015.101.  DISTRICT RESPONSIBILITY
Sec. 1015.102.  RESTRICTION ON MUNICIPAL TAXATION AND
                 DEBT
Sec. 1015.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION
Sec. 1015.104.  RULES
Sec. 1015.105.  PURCHASING AND ACCOUNTING PROCEDURES
Sec. 1015.106.  DISTRICT PROPERTY, FACILITIES, AND
                 EQUIPMENT
Sec. 1015.107.  EMINENT DOMAIN
Sec. 1015.108.  COST OF RELOCATING OR ALTERING PROPERTY
Sec. 1015.109.  GIFTS AND ENDOWMENTS
Sec. 1015.110.  CONSTRUCTION CONTRACTS
Sec. 1015.111.  OPERATING AND MANAGEMENT CONTRACTS
Sec. 1015.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                 FOR SERVICES
Sec. 1015.113.  PAYMENT FOR TREATMENT; PROCEDURES
Sec. 1015.114.  REIMBURSEMENT FOR SERVICES
Sec. 1015.115.  AUTHORITY TO SUE AND BE SUED
[Sections 1015.116-1015.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 1015.151.  BUDGET
Sec. 1015.152.  NOTICE; HEARING; ADOPTION OF BUDGET
Sec. 1015.153.  AMENDMENTS TO BUDGET
Sec. 1015.154.  RESTRICTION ON EXPENDITURES
Sec. 1015.155.  FISCAL YEAR
Sec. 1015.156.  ANNUAL AUDIT
Sec. 1015.157.  INSPECTION OF ANNUAL AUDIT AND DISTRICT
                 RECORDS
Sec. 1015.158.  FINANCIAL REPORT
Sec. 1015.159.  DEPOSITORY
Sec. 1015.160.  SPENDING AND INVESTMENT RESTRICTIONS
Sec. 1015.161.  AUTHORITY TO BORROW MONEY; SECURITY
[Sections 1015.162-1015.200 reserved for expansion]
SUBCHAPTER E. BONDS
Sec. 1015.201.  GENERAL OBLIGATION BONDS
Sec. 1015.202.  TAX TO PAY GENERAL OBLIGATION BONDS
Sec. 1015.203.  GENERAL OBLIGATION BOND ELECTION
Sec. 1015.204.  REVENUE BONDS
Sec. 1015.205.  REFUNDING BONDS
Sec. 1015.206.  MATURITY OF BONDS
Sec. 1015.207.  EXECUTION OF BONDS
Sec. 1015.208.  BONDS EXEMPT FROM TAXATION
[Sections 1015.209-1015.250 reserved for expansion]
SUBCHAPTER F. TAXES
Sec. 1015.251.  IMPOSITION OF AD VALOREM TAX
Sec. 1015.252.  TAX RATE
Sec. 1015.253.  TAX ASSESSOR-COLLECTOR
[Sections 1015.254-1015.300 reserved for expansion]
SUBCHAPTER G. DISSOLUTION
Sec. 1015.301.  DISSOLUTION; ELECTION
Sec. 1015.302.  NOTICE OF ELECTION
Sec. 1015.303.  BALLOT
Sec. 1015.304.  ELECTION RESULTS
Sec. 1015.305.  DIRECTORS IN OFFICE AFTER DISSOLUTION
Sec. 1015.306.  IMPOSITION OF TAX; TRANSFER OF DEBTS
Sec. 1015.307.  DISPOSITION OR TRANSFER OF ASSETS AND
                 DEBTS
Sec. 1015.308.  SPENDING RESTRICTIONS
Sec. 1015.309.  REPORT; DISSOLUTION ORDER
CHAPTER 1015.  FAIRFIELD HOSPITAL DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
       Sec.1015.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Fairfield Hospital District.
(Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 1.01.)
       Sec.1015.002.AUTHORITY FOR OPERATION. The district
operates and is financed as provided by Section 9, Article IX, Texas
Constitution, and by this chapter. (Acts 70th Leg., 2nd C.S., Ch.
12, Sec. 1.02.)
       Sec.1015.003.ESSENTIAL PUBLIC FUNCTION. The district is
a public entity performing an essential public function. (Acts
70th Leg., 2nd C.S., Ch. 12, Sec. 7.11 (part).)
       Sec.1015.004.DISTRICT TERRITORY. The boundaries of the
district are coextensive with the boundaries of the Fairfield
Independent School District as those boundaries existed on August
3, 1987. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 1.03.)
       Sec. 1015.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE
OBLIGATION. The state may not be obligated for the support or
maintenance of the district. (Acts 70th Leg., 2nd C.S., Ch. 12,
Sec. 10.01 (part).)
       Sec.1015.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.
The legislature may not make a direct appropriation for the
construction, maintenance, or improvement of a district facility.
(Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 10.01 (part).)
[Sections 1015.007-1015.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
       Sec.1015.051.BOARD ELECTION; TERM. (a) The district is
governed by a board of seven directors elected from the district at
large.
       (b)  Directors serve staggered four-year terms.
       (c)  An election shall be held on the uniform election day in
May of each even-numbered year to elect the appropriate number of
directors. (Acts 70th Leg., 2nd C.S., Ch. 12, Secs. 4.01(a),
4.03(a), (c).)
       Sec.1015.052.NOTICE OF ELECTION. At least 35 days before
the date of an election of directors, notice of the election shall
be published one time in a newspaper with general circulation in the
district. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 4.04.)
       Sec.1015.053.QUALIFICATIONS FOR OFFICE. (a) To be
eligible to be a candidate for or to serve as a director, a person
must be:
             (1)  a district resident; and
             (2)  a qualified voter.
       (b)  A district employee may not serve as a director. (Acts
70th Leg., 2nd C.S., Ch. 12, Sec. 4.06.)
       Sec.1015.054.BOND; RECORD OF BOND. (a) Before assuming
the duties of office, each director must execute a bond for $5,000
that is:
             (1)  payable to the district; and
             (2)  conditioned on the faithful performance of the
director's duties.
       (b)  The board may pay for a director's bond with district
money.
       (c)  Each director's bond shall be kept in the district's
permanent records. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 4.07.)
       Sec.1015.055.BOARD VACANCY. If a vacancy occurs in the
office of director, the remaining directors shall appoint a
director for the unexpired term. (Acts 70th Leg., 2nd C.S., Ch. 12,
Sec. 4.08.)
       Sec.1015.056.OFFICERS. (a) The board shall elect a
president and vice president from among its members.
       (b)  The board shall appoint a secretary, who need not be a
director.
       (c)  Each officer of the board serves for a term of one year.
       (d)  The board shall fill a vacancy in a board office for the
unexpired term. (Acts 70th Leg., 2nd C.S., Ch. 12, Secs. 4.09,
4.10.)
       Sec.1015.057.COMPENSATION; EXPENSES. A director or
officer serves without compensation but may be reimbursed for
actual expenses incurred in the performance of official duties.
The expenses must be:
             (1)  reported in the district's records; and
             (2)  approved by the board. (Acts 70th Leg., 2nd C.S.,
Ch. 12, Sec. 4.11.)
       Sec.1015.058.VOTING REQUIREMENT. A concurrence of a
majority of the directors voting is necessary in any matter
relating to district business. (Acts 70th Leg., 2nd C.S., Ch. 12,
Sec. 4.12.)
       Sec.1015.059.DISTRICT ADMINISTRATOR. (a) The board may
appoint a qualified person as district administrator.
       (b)  The district administrator serves at the will of the
board and is entitled to the compensation determined by the board.
       (c)  Before assuming the duties of district administrator,
the administrator must execute a bond in the amount set by the board
of not less than $5,000 that is:
             (1)  payable to the district; and
             (2)  conditioned on the faithful performance of the
administrator's duties under this chapter.
       (d)  The board may pay for the bond with district money.
(Acts 70th Leg., 2nd C.S., Ch. 12, Secs. 4.13(a) (part), (b) (part),
(c) (part), (d).)
       Sec.1015.060.GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
Subject to the limitations prescribed by the board, the district
administrator shall:
             (1)  supervise the work and activities of the district;
and
             (2)  direct the general affairs of the district. (Acts
70th Leg., 2nd C.S., Ch. 12, Sec. 4.16.)
       Sec.1015.061.ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.
(a) The board may appoint qualified persons as:
             (1)  the assistant district administrator; and
             (2)  the attorney for the district.
       (b)  The assistant district administrator and the attorney
for the district serve at the will of the board and are entitled to
the compensation determined by the board. (Acts 70th Leg., 2nd
C.S., Ch. 12, Secs. 4.13(a) (part), (b) (part), (c) (part).)
       Sec. 1015.062.  APPOINTMENT AND RECRUITMENT OF STAFF AND
EMPLOYEES. (a) The board may appoint to the staff any doctors the
board considers necessary for the efficient operation of the
district and may make temporary appointments as necessary.
       (b)  The district may employ technicians, nurses, fiscal
agents, accountants, architects, additional attorneys, and other
necessary employees.
       (c)  The board may delegate to the district administrator the
authority to employ persons for the district.
       (d)  The board may spend money to recruit physicians, nurses,
and other trained medical personnel.  The board may pay the tuition
or other costs or expenses of a full-time medical student or nursing
student who:
             (1)  is enrolled in and is in good standing at an
accredited school, college, or university; and
             (2)  contractually agrees to become a district employee
in return for that assistance.  (Acts 70th Leg., 2nd C.S., Ch. 12,
Secs. 4.14, 4.15, 4.18(a), (b).)
       Sec.1015.063.CONTINUING EDUCATION; RETRAINING.  The board
may spend money for continuing education and retraining of
employees. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 4.18(c).)
       Sec.1015.064.RETIREMENT BENEFITS. The board may provide
retirement benefits for district employees by:
             (1)  establishing or administering a retirement
program; or
             (2)  participating in:
                   (A)  the Texas County and District Retirement
System; or
                   (B)  another statewide retirement system in which
the district is eligible to participate. (Acts 70th Leg., 2nd C.S.,
Ch. 12, Sec. 4.17.)
[Sections 1015.065-1015.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
       Sec.1015.101.DISTRICT RESPONSIBILITY. The district has
full responsibility for:
             (1)  operating hospital facilities; and
             (2)  providing medical and hospital care for the
district's needy inhabitants. (Acts 70th Leg., 2nd C.S., Ch. 12,
Sec. 5.02 (part).)
       Sec.1015.102.RESTRICTION ON MUNICIPAL TAXATION AND DEBT.
The City of Fairfield may not impose a tax or issue bonds or other
obligations for hospital purposes or to provide medical care for
district residents. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec.
5.01(b).)
       Sec.1015.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.
The board shall manage, control, and administer the hospital system
and the district's money and resources. (Acts 70th Leg., 2nd C.S.,
Ch. 12, Sec. 5.03.)
       Sec.1015.104.RULES.  The board may adopt rules governing:
             (1)  the operation of the hospital and hospital system;
and
             (2)  the duties, functions, and responsibilities of
district staff and employees.  (Acts 70th Leg., 2nd C.S., Ch. 12,
Sec. 5.04.)
       Sec.1015.105.PURCHASING AND ACCOUNTING PROCEDURES. The
board may prescribe:
             (1)  the method of making purchases and expenditures by
and for the district; and
             (2)  accounting and control procedures for the
district. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 5.05.)
       Sec. 1015.106.  DISTRICT PROPERTY, FACILITIES, AND
EQUIPMENT. (a) The board shall determine:
             (1)  the type, number, and location of buildings
required to maintain an adequate hospital system; and
             (2)  the type of equipment necessary for hospital care.
       (b)  The board may:
             (1)  acquire property, including facilities and
equipment, for the district for use in the hospital system; and
             (2)  mortgage or pledge the property as security for
the payment of the purchase price.
       (c)  The board may lease hospital facilities for the
district.
       (d)  The board may sell or otherwise dispose of the property,
including facilities, or equipment, for the district.  (Acts 70th
Leg., 2nd C.S., Ch. 12, Sec. 5.06.)
       Sec.1015.107.EMINENT DOMAIN. (a) The district may
exercise the power of eminent domain to acquire a fee simple or
other interest in property located in district territory if the
interest is necessary for the district to exercise a right or
authority conferred by this chapter.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code, except the
district is not required to deposit in the trial court money or a
bond as provided by Section 21.021(a), Property Code.
       (c)  In a condemnation proceeding brought by the district,
the district is not required to:
             (1)  pay in advance or provide a bond or other security
for costs in the trial court;
             (2)  provide a bond for the issuance of a temporary
restraining order or a temporary injunction; or
             (3)  provide a bond for costs or a supersedeas bond on
an appeal or writ of error. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec.
5.09.)
       Sec.1015.108.COST OF RELOCATING OR ALTERING PROPERTY. In
exercising the power of eminent domain, if the board requires
relocating, raising, lowering, rerouting, changing the grade of, or
altering the construction of any railroad, highway, pipeline,
electric transmission and electric distribution, telegraph, or
telephone line, conduit, pole, or facility, the district must bear
the actual cost of relocating, raising, lowering, rerouting,
changing the grade, or altering the construction to provide
comparable replacement, without enhancement of facilities, after
deducting the net salvage value derived from the old facility.
(Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 5.10.)
       Sec.1015.109.GIFTS AND ENDOWMENTS. The board may accept
for the district a gift or endowment to be held in trust for any
purpose and under any direction, limitation, or provision
prescribed in writing by the donor that is consistent with the
proper management of the district. (Acts 70th Leg., 2nd C.S., Ch.
12, Sec. 5.14.)
       Sec.1015.110.CONSTRUCTION CONTRACTS.  (a)  The board may
enter into construction contracts for the district.
       (b)  The board may enter into a construction contract that
involves the expenditure of more than the amount provided by
Section 271.024, Local Government Code, only after competitive
bidding as provided by Subchapter B, Chapter 271, Local Government
Code.  (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 5.07(a).)
       Sec.1015.111.OPERATING AND MANAGEMENT CONTRACTS. The
board may enter into an operating or management contract relating
to a hospital facility for the district. (Acts 70th Leg., 2nd C.S.,
Ch. 12, Sec. 5.08.)
       Sec. 1015.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
SERVICES. The board may contract with a political subdivision of
this state or with a state or federal agency for the district to:
             (1)  furnish a mobile emergency medical service; or
             (2)  provide for the investigatory or welfare needs of
district inhabitants. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec.
5.13.)
       Sec.1015.113.PAYMENT FOR TREATMENT; PROCEDURES.
(a)  Each year, the board may set criteria for determining
residency, eligibility for a service, and the type of services
available.
       (b)  When a person who resides in the district is admitted as
a patient to a district facility, the district administrator may
have an inquiry made into the financial circumstances of:
             (1)  the patient; and
             (2)  a relative of the patient who is legally
responsible for the patient's support.
       (c)  To the extent that the patient or a relative of the
patient who is legally responsible for the patient's support cannot
pay for care and treatment provided by the district, the district
shall supply the care and treatment without charging the patient or
the patient's relative.
       (d)  On determining that the patient or a relative legally
responsible for the patient's support can pay for all or part of the
care and treatment provided by the district, the district
administrator shall report that determination to the board, and the
board shall issue an order directing the patient or the relative to
pay the district a specified amount each week. The amount must be
based on the person's ability to pay.
       (e)  The district administrator may collect the money owed to
the district from the patient's estate or from that of a relative
who was legally responsible for the patient's support in the manner
provided by law for the collection of expenses of the last illness
of a deceased person.
       (f)  If there is a dispute relating to a person's ability to
pay or if the district administrator has any doubt concerning a
person's ability to pay, the board shall:
             (1)  call witnesses;
             (2)  hear and resolve the question; and
             (3)  issue a final order.
       (g)  The final order of the board may be appealed to a
district court in the county in which the district is located.  The
substantial evidence rule applies to the appeal. (Acts 70th Leg.,
2nd C.S., Ch. 12, Secs. 5.11(a) (part), (b), (c), (d), (e), (f).)
       Sec.1015.114.REIMBURSEMENT FOR SERVICES. (a) The board
shall require a county, municipality, or public hospital located
outside the district to reimburse the district for the district's
care and treatment of a sick or injured person of that county,
municipality, or public hospital as provided by Chapter 61, Health
and Safety Code.
       (b)  The board shall require the sheriff of Freestone County
or the police chief of the City of Fairfield to reimburse the
district for the district's care and treatment of a person who is
confined in a jail facility of Freestone County or the City of
Fairfield and is not a district resident. A prisoner in the
Freestone County jail or any penal or police facility located in the
district does not qualify as a district resident unless the person
would meet the qualifications for residency notwithstanding the
incarceration, its duration, or the facts surrounding the
incarceration.
       (c)  On behalf of the district, the board may contract with
the state or federal government for that government to reimburse
the district for treatment of a sick or injured person. (Acts 70th
Leg., 2nd C.S., Ch. 12, Sec. 5.12.)
       Sec.1015.115.AUTHORITY TO SUE AND BE SUED. The board may
sue and be sued on behalf of the district. (Acts 70th Leg., 2nd
C.S., Ch. 12, Sec. 5.15.)
[Sections 1015.116-1015.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
       Sec.1015.151.BUDGET. (a) The district administrator
shall prepare a proposed annual budget for the district.
       (b)  The proposed budget must contain a complete financial
statement, including a statement of:
             (1)  the outstanding obligations of the district;
             (2)  the amount of cash on hand in each district fund;
             (3)  the amount of money received by the district from
all sources during the previous year;
             (4)  the amount of money available to the district from
all sources during the ensuing year;
             (5)  the amount of the balances expected at the end of
the year in which the budget is being prepared;
             (6)  the estimated amount of revenue and balances
available to cover the proposed budget; and
             (7)  the estimated tax rate required. (Acts 70th Leg.,
2nd C.S., Ch. 12, Sec. 6.04.)
       Sec.1015.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)
The board shall hold a public hearing on the proposed annual budget.
       (b)  The board shall publish notice of the hearing in a
newspaper with general circulation in the district not later than
the 10th day before the date of the hearing.
       (c)  Any district resident is entitled to be present and
participate at the hearing.
       (d)  At the conclusion of the hearing, the board shall adopt
a budget by acting on the budget proposed by the district
administrator. The board may make any changes in the proposed
budget that the board judges to be in the interests of the
taxpayers.
       (e)  The budget is effective only after adoption by the
board. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 6.05.)
       Sec.1015.153.AMENDMENTS TO BUDGET. After adoption, the
annual budget may be amended on the board's approval. (Acts 70th
Leg., 2nd C.S., Ch. 12, Sec. 6.06.)
       Sec.1015.154.RESTRICTION ON EXPENDITURES. Money may be
spent only for an expense included in the budget or an amendment to
the budget. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 6.07.)
       Sec.1015.155.FISCAL YEAR. (a) The district operates on a
fiscal year established by the board.
       (b)  The fiscal year may not be changed:
             (1)  during a period that revenue bonds of the district
are outstanding; or
             (2)  more than once in a 24-month period. (Acts 70th
Leg., 2nd C.S., Ch. 12, Sec. 6.01.)
       Sec.1015.156.ANNUAL AUDIT. The board annually shall have
an audit made of the district's financial condition. (Acts 70th
Leg., 2nd C.S., Ch. 12, Sec. 6.02.)
       Sec. 1015.157.  INSPECTION OF ANNUAL AUDIT AND DISTRICT
RECORDS. The annual audit and other district records shall be open
to inspection during regular business hours at the district's
principal office. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 6.03.)
       Sec.1015.158.FINANCIAL REPORT. As soon as practicable
after the close of the fiscal year, the district administrator
shall prepare for the board:
             (1)  a sworn statement of the amount of district money;
and
             (2)  an account of the disbursements of that money.
(Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 6.08.)
       Sec.1015.159.DEPOSITORY. (a) The board shall select at
least one bank to serve as a depository for district money.
       (b)  District money, other than money invested as provided by
Section 1015.160(b) and money transmitted to a bank for payment of
bonds or obligations issued or assumed by the district, shall be
deposited as received with the depository bank and shall remain on
deposit. This subsection does not limit the power of the board to
place a part of district money on time deposit or to purchase
certificates of deposit.
       (c)  The district may not deposit money with a bank in an
amount that exceeds the maximum amount secured by the Federal
Deposit Insurance Corporation unless the bank has first executed a
bond or other security in an amount sufficient to secure from loss
the district money that exceeds the amount secured by the Federal
Deposit Insurance Corporation. (Acts 70th Leg., 2nd C.S., Ch. 12,
Sec. 6.11.)
       Sec.1015.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)
Except as otherwise provided by Sections 1015.110, 1015.161,
1015.201, 1015.204, and 1015.205, the district may not incur a debt
payable from district revenue other than the revenue on hand or to
be on hand in the current and immediately following district fiscal
years.
       (b)  The board may invest operating, depreciation, or
building reserves only in funds or securities specified by Chapter
2256, Government Code. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec.
6.09.)
       Sec.1015.161.AUTHORITY TO BORROW MONEY; SECURITY. (a)
The board may borrow money at a rate not to exceed the maximum
annual percentage rate allowed by law for district obligations at
the time the loan is made if the board declares that money is not
available to meet authorized district obligations, which creates an
emergency.
       (b)  To secure a loan, the board may pledge:
             (1)  district revenue that is not pledged to pay the
district's bonded indebtedness;
             (2)  a district tax to be imposed by the district in the
next 12-month period that is not pledged to pay the principal of or
interest on district bonds; or
             (3)  district bonds that have been authorized but not
sold.
       (c)  A loan for which taxes or bonds are pledged must mature
not later than the first anniversary of the date the loan is made. A
loan for which district revenue is pledged must mature not later
than the fifth anniversary of the date the loan is made.
       (d)  Money obtained from a loan under this section may be
spent only for:
             (1)  a purpose for which the board declared an
emergency; and
             (2)  if district taxes or bonds are pledged to pay the
loan, the purpose for which the pledged taxes were imposed or the
pledged bonds were authorized. (Acts 70th Leg., 2nd C.S., Ch. 12,
Sec. 6.10.)
[Sections 1015.162-1015.200 reserved for expansion]
SUBCHAPTER E. BONDS
       Sec.1015.201.GENERAL OBLIGATION BONDS. If authorized by
an election, the board may issue and sell general obligation bonds
in the name and on the faith and credit of the district to:
             (1)  purchase, construct, acquire, repair, or renovate
buildings or improvements; and
             (2)  equip buildings or improvements for hospital
purposes. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 7.01.)
       Sec.1015.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At
the time general obligation bonds are issued by the district under
Section 1015.201, the board shall impose an ad valorem tax at a rate
sufficient to create an interest and sinking fund to pay the
principal of and interest on the bonds as the bonds mature.
       (b)  The tax required by this section together with any other
ad valorem tax the district imposes may not in any year exceed the
limit approved by the voters at the election authorizing the
imposition of the tax. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec.
7.02.)
       Sec.1015.203.GENERAL OBLIGATION BOND ELECTION. (a) The
district may issue general obligation bonds only if the bonds are
authorized by a majority of district voters voting at an election
held for that purpose.
       (b)  The board may order a bond election.
       (c)  The order calling the election must specify:
             (1)  the nature and date of the election;
             (2)  the hours during which the polls will be open;
             (3)  the location of the polling places;
             (4)  the amount of the bonds to be authorized; and
             (5)  the maximum maturity of the bonds.
       (d)  Notice of a bond election shall be given as provided by
Section 1251.003, Government Code.
       (e)  The board shall declare the results of the election.
(Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 7.03.)
       Sec.1015.204.REVENUE BONDS. (a) The board may issue
revenue bonds to:
             (1)  purchase, construct, acquire, repair, renovate,
or equip buildings or improvements for hospital purposes; or
             (2)  acquire sites to be used for hospital purposes.
       (b)  The bonds must be payable from and secured by a pledge of
all or part of the revenue derived from the operation of the
district's hospital system.
       (c)  The bonds may be additionally secured by a mortgage or
deed of trust lien on all or part of district property.
       (d)  The bonds must be issued in the manner provided by
Sections 264.042, 264.043, and 264.046-264.049, Health and Safety
Code, for issuance of revenue bonds by a county hospital authority.
(Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 7.04.)
       Sec.1015.205.REFUNDING BONDS. (a) The board may issue
refunding bonds to refund an outstanding indebtedness issued or
assumed by the district.
       (b)  A refunding bond may be:
             (1)  sold, with the proceeds of the refunding bonds
applied to the payment of the indebtedness to be refunded; or
             (2)  exchanged wholly or partly for not less than a
similar principal amount of outstanding indebtedness.  (Acts 70th
Leg., 2nd C.S., Ch. 12, Secs. 7.05(a), (c) (part).)
       Sec.1015.206.MATURITY OF BONDS. District bonds must
mature not later than 50 years after the date of issuance. (Acts
70th Leg., 2nd C.S., Ch. 12, Sec. 7.06 (part).)
       Sec.1015.207.EXECUTION OF BONDS. (a) The board president
shall execute district bonds in the district's name.
       (b)  The board secretary shall countersign the bonds in the
manner provided by Chapter 618, Government Code. (Acts 70th Leg.,
2nd C.S., Ch. 12, Sec. 7.07.)
       Sec.1015.208.BONDS EXEMPT FROM TAXATION. The following
are exempt from taxation by this state or a political subdivision of
this state:
             (1)  bonds issued by the district;
             (2)  any transaction relating to the bonds; and
             (3)  profits made in the sale of the bonds. (Acts 70th
Leg., 2nd C.S., Ch. 12, Sec. 7.11 (part).)
[Sections 1015.209-1015.250 reserved for expansion]
SUBCHAPTER F. TAXES
       Sec.1015.251.IMPOSITION OF AD VALOREM TAX. (a) The board
may impose a tax on all property in the district subject to district
taxation.
       (b)  The tax may be used to meet the requirements of:
             (1)  district bonds;
             (2)  indebtedness assumed by the district; and
             (3)  the maintenance and operating expenses of the
district.
       (c)  The district may not impose a tax to pay the principal of
or interest on revenue bonds issued under this chapter. (Acts 70th
Leg., 2nd C.S., Ch. 12, Secs. 8.01(a) (part), (c), (d), 8.02(b).)
       Sec.1015.252.TAX RATE. (a) The board may impose the tax
at a rate for the initial tax year not to exceed eight cents on each
$100 valuation of taxable property.
       (b)  The tax rate for all purposes may not exceed 12 cents on
each $100 valuation of all taxable property in the district.
       (c)  In setting the tax rate, the board shall consider income
of the district from sources other than taxation.
       (d)  The board may decrease the tax rate or may elect not to
impose a tax. (Acts 70th Leg., 2nd C.S., Ch. 12, Secs. 8.01(a)
(part), (b), 8.03 (part).)
       Sec.1015.253.TAX ASSESSOR-COLLECTOR. The board may
provide for the appointment of a tax assessor-collector for the
district or may contract for the assessment and collection of taxes
as provided by the Tax Code. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec.
8.04(b).)
[Sections 1015.254-1015.300 reserved for expansion]
SUBCHAPTER G. DISSOLUTION
       Sec.1015.301.DISSOLUTION; ELECTION. (a) The district
may be dissolved only on approval of a majority of the district
voters voting in an election held for that purpose.
       (b)  The board may order that a dissolution election be held.
       (c)  The board shall order an election if the board receives
a petition requesting an election that is signed by at least 10
percent of the registered voters in the district. The board shall
order the election not later than the 60th day after the date the
petition is presented to the district.
       (d)  The order calling the election must state:
             (1)  the nature of the election, including the
proposition to appear on the ballot;
             (2)  the date of the election;
             (3)  the hours during which the polls will be open; and
             (4)  the location of the polling places.
       (e)  Section 41.001(a), Election Code, does not apply to an
election ordered under this section. (Acts 70th Leg., 2nd C.S., Ch.
12, Secs. 9.01, 9.02, 9.03, 9.05(b).)
       Sec.1015.302.NOTICE OF ELECTION. (a) The board shall
give notice of an election under this subchapter by publishing once
a week for two consecutive weeks a substantial copy of the election
order in a newspaper with general circulation in the district.
       (b)  The first publication of the notice must appear at least
35 days before the date set for the election. (Acts 70th Leg., 2nd
C.S., Ch. 12, Sec. 9.04.)
       Sec.1015.303.BALLOT. The ballot for an election under
this subchapter must be printed to permit voting for or against the
proposition: "The dissolution of the Fairfield Hospital District."
(Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 9.06.)
       Sec.1015.304.ELECTION RESULTS. (a) If the board finds
that the election results favor the proposition to dissolve the
district, the board shall:
             (1)  issue an order declaring the district be
dissolved; and
             (2)  specify in the order the date the dissolution
takes effect.
       (b)  If the board finds that the election results do not
favor the proposition to dissolve the district, another dissolution
election may not be held before the first anniversary of the date of
the election at which the voters disapproved the proposition.
(Acts 70th Leg., 2nd C.S., Ch. 12, Secs. 9.07(b), (c).)
       Sec.1015.305.DIRECTORS IN OFFICE AFTER DISSOLUTION.  The
directors in office on the date of the dissolution shall continue in
office, without further election, until:
             (1)  the affairs of the district are effectively
concluded; and
             (2)  all duties or acts required of the board are
completed. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 9.08(c).)
       Sec.1015.306.IMPOSITION OF TAX; TRANSFER OF DEBTS.  After
issuing the dissolution order, the board shall determine the debt
owed by the district and shall:
             (1)  impose on property subject to taxation in the
district a tax in proportion of the debt to the property value and
use the tax revenue to pay the district's bonds or satisfy other
district debts; or
             (2)  transfer the district's debts to any governmental
entity assuming responsibility after dissolution of the district
for providing hospital care in the territory included in the
district. (Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 9.08(a).)
       Sec.1015.307.DISPOSITION OR TRANSFER OF ASSETS AND DEBTS.
(a)  The board may not dispose of or transfer the district's assets
except for due compensation unless:
             (1)  the debts are transferred to another governmental
entity embracing the district; and
             (2)  the transferred assets are used for the benefit of
citizens formerly in the district.
       (b)  If the board transfers the district's debts to another
governmental entity, the board shall also transfer to that
governmental entity:
             (1)  title to land, buildings, improvements, and
equipment related to the hospital system owned by the district; and
             (2)  operating money and reserves for operating
expenses and money budgeted by the district to provide medical care
for district residents for the remainder of the fiscal year in which
the district is dissolved. (Acts 70th Leg., 2nd C.S., Ch. 12, Secs.
9.08(b), (d) (part).)
       Sec.1015.308.SPENDING RESTRICTIONS. After the effective
date of the district's dissolution, the board may not spend any
money except:
             (1)  as authorized by law; and
             (2)  as necessary to pay reasonable dissolution
expenses and the district's legal debts incurred before that date.  
(Acts 70th Leg., 2nd C.S., Ch. 12, Sec. 9.08(d) (part).)
       Sec.1015.309.REPORT; DISSOLUTION ORDER. (a) After the
district has paid all district debts and has disposed of all
district money and other assets as prescribed by this subchapter,
the board shall file a written report with the Commissioners Court
of Freestone County summarizing the board's actions in dissolving
the district.  The report must include a summary of the district's
debts.
       (b)  Not later than the 10th day after the date the
Commissioners Court of Freestone County receives the report, the
commissioners court shall:
             (1)  determine whether the board has fulfilled the
requirements of this subchapter; and
             (2)  if the commissioners court determines the board
has fulfilled its duties, enter an order to that effect.
       (c)  On entry of an order under Subsection (b)(2), the
directors are discharged from liability under their bonds.  (Acts
70th Leg., 2nd C.S., Ch. 12, Sec. 9.08(e).)
CHAPTER 1016.  CONCHO COUNTY HOSPITAL DISTRICT
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 1016.001.  DEFINITIONS 
Sec. 1016.002.  AUTHORITY FOR OPERATION 
Sec. 1016.003.  ESSENTIAL PUBLIC FUNCTION 
Sec. 1016.004.  DISTRICT TERRITORY 
Sec. 1016.005.  CORRECTION OF INVALID PROCEDURES 
Sec. 1016.006.  DISTRICT SUPPORT AND MAINTENANCE NOT
                 STATE OBLIGATION 
Sec. 1016.007.  RESTRICTION ON STATE FINANCIAL
                 ASSISTANCE 
[Sections 1016.008-1016.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 1016.051.  BOARD ELECTION; TERM 
Sec. 1016.052.  NOTICE OF ELECTION 
Sec. 1016.053.  BALLOT PETITION 
Sec. 1016.054.  QUALIFICATIONS FOR OFFICE 
Sec. 1016.055.  BOND; RECORD OF BOND AND OATH OR
                 AFFIRMATION OF OFFICE 
Sec. 1016.056.  BOARD VACANCY 
Sec. 1016.057.  OFFICERS 
Sec. 1016.058.  VOTING REQUIREMENT 
Sec. 1016.059.  MEETINGS 
Sec. 1016.060.  DISTRICT ADMINISTRATOR; ASSISTANT
                 ADMINISTRATOR 
Sec. 1016.061.  GENERAL DUTIES OF DISTRICT
                 ADMINISTRATOR 
Sec. 1016.062.  EMPLOYEES; APPOINTMENT OF STAFF 
Sec. 1016.063.  SENIORITY; RETIREMENT BENEFITS 
[Sections 1016.064-1016.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
Sec. 1016.101.  DISTRICT RESPONSIBILITY 
Sec. 1016.102.  RESTRICTION ON POLITICAL SUBDIVISION
                 TAXATION AND DEBT 
Sec. 1016.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
Sec. 1016.104.  HOSPITAL SYSTEM 
Sec. 1016.105.  RULES 
Sec. 1016.106.  PURCHASING AND ACCOUNTING PROCEDURES 
Sec. 1016.107.  DISTRICT PROPERTY, FACILITIES, AND
                 EQUIPMENT 
Sec. 1016.108.  EMINENT DOMAIN 
Sec. 1016.109.  GIFTS AND ENDOWMENTS 
Sec. 1016.110.  CONSTRUCTION OR PURCHASE CONTRACTS 
Sec. 1016.111.  OPERATING AND MANAGEMENT CONTRACTS 
Sec. 1016.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                 FOR HOSPITALIZATION 
Sec. 1016.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                 FOR INVESTIGATORY OR OTHER SERVICES 
Sec. 1016.114.  PAYMENT FOR TREATMENT; PROCEDURES 
Sec. 1016.115.  AUTHORITY TO SUE AND BE SUED 
[Sections 1016.116-1016.150 reserved for expansion]
SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
Sec. 1016.151.  BUDGET 
Sec. 1016.152.  NOTICE; HEARING; ADOPTION OF BUDGET 
Sec. 1016.153.  AMENDMENTS TO BUDGET 
Sec. 1016.154.  RESTRICTION ON EXPENDITURES 
Sec. 1016.155.  FISCAL YEAR 
Sec. 1016.156.  AUDIT 
Sec. 1016.157.  INSPECTION OF AUDIT AND DISTRICT
                 RECORDS 
Sec. 1016.158.  FINANCIAL REPORT 
Sec. 1016.159.  DEPOSITORY 
Sec. 1016.160.  SPENDING AND INVESTMENT RESTRICTIONS 
[Sections 1016.161-1016.200 reserved for expansion]
SUBCHAPTER E.  BONDS
Sec. 1016.201.  GENERAL OBLIGATION BONDS 
Sec. 1016.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
Sec. 1016.203.  GENERAL OBLIGATION BOND ELECTION 
Sec. 1016.204.  REVENUE BONDS 
Sec. 1016.205.  REFUNDING BONDS 
Sec. 1016.206.  MATURITY OF BONDS 
Sec. 1016.207.  EXECUTION OF BONDS 
Sec. 1016.208.  BONDS EXEMPT FROM TAXATION 
[Sections 1016.209-1016.250 reserved for expansion]
SUBCHAPTER F.  TAXES
Sec. 1016.251.  IMPOSITION OF AD VALOREM TAX 
Sec. 1016.252.  TAX RATE 
CHAPTER 1016.  CONCHO COUNTY HOSPITAL DISTRICT
SUBCHAPTER A.  GENERAL PROVISIONS
       Sec.1016.001.DEFINITIONS. In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Concho County Hospital
District. (New.)
       Sec.1016.002.AUTHORITY FOR OPERATION. The district
operates in accordance with and has the rights, powers, and duties
provided by Section 9, Article IX, Texas Constitution, and by this
chapter. (Acts 62nd Leg., R.S., Ch. 877, Sec. 1 (part).)
       Sec.1016.003.ESSENTIAL PUBLIC FUNCTION.  The district
performs an essential public function in carrying out the purposes
of this chapter.  (Acts 62nd Leg., R.S., Ch. 877, Sec. 21 (part).)
       Sec.1016.004.DISTRICT TERRITORY.  The boundaries of the
district are coextensive with the boundaries of Concho County,
Texas.  (Acts 62nd Leg., R.S., Ch. 877, Sec. 1 (part).)
       Sec.1016.005.CORRECTION OF INVALID PROCEDURES.  If a
court holds that any procedure under this chapter violates the
constitution of this state or of the United States, the district by
resolution may provide an alternative procedure that conforms with
the constitution. (Acts 62nd Leg., R.S., Ch. 877, Sec. 23 (part).)
       Sec. 1016.006.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE
OBLIGATION.  The support and maintenance of the district may not
become a charge against or obligation of this state.  (Acts 62nd
Leg., R.S., Ch. 877, Sec. 20 (part).)
       Sec.1016.007.RESTRICTION ON STATE FINANCIAL ASSISTANCE.  
The legislature may not make a direct appropriation for
construction, maintenance, or improvement of a district facility.
(Acts 62nd Leg., R.S., Ch. 877, Sec. 20 (part).)
[Sections 1016.008-1016.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
       Sec.1016.051.BOARD ELECTION; TERM. (a) The board
consists of seven directors elected as follows:
             (1)  four directors, each of whom is a resident of a
different county commissioners precinct; and
             (2)  three directors from the district at large.
       (b)  A district voter may vote on each of the seven
directors.
       (c)  Directors serve staggered two-year terms unless
four-year terms are established under Section 285.081, Health and
Safety Code. (Acts 62nd Leg., R.S., Ch. 877, Sec. 4(a) (part).)
       Sec.1016.052.NOTICE OF ELECTION.  At least 10 days before
the date of an election of directors, notice of the election shall
be published one time in a newspaper of general circulation in
Concho County. (Acts 62nd Leg., R.S., Ch. 877, Sec. 4(c) (part).)
       Sec.1016.053.BALLOT PETITION. A person who wants to have
the person's name printed on the ballot as a candidate for director
must file with the board secretary a petition requesting that
action. The petition must be:
             (1)  signed by at least 10 registered voters; and
             (2)  filed at least 25 days before the date of the
election. (Acts 62nd Leg., R.S., Ch. 877, Sec. 4(c) (part).)
       Sec.1016.054.QUALIFICATIONS FOR OFFICE.  A person may not
be elected or appointed as a director unless the person is:
             (1)  a district resident;
             (2)  a qualified voter;
             (3)  a freeholder; and
             (4)  at least 18 years of age when elected or appointed.  
(Acts 62nd Leg., R.S., Ch. 877, Sec. 4(a) (part).)
       Sec. 1016.055.  BOND; RECORD OF BOND AND OATH OR AFFIRMATION
OF OFFICE.  (a) Each director shall execute a good and sufficient
bond for $1,000 that is:
             (1)  payable to the district; and
             (2)  conditioned on the faithful performance of the
director's duties.
       (b)  Each director's bond and the constitutional oath or
affirmation of office shall be deposited with the district's
depository bank for safekeeping.  (Acts 62nd Leg., R.S., Ch. 877,
Sec. 4(a) (part).)
       Sec.1016.056.BOARD VACANCY. (a) If a vacancy occurs in
the office of director, the remaining directors shall appoint a
director for the unexpired term.
       (b)  If the number of directors is reduced to fewer than four
for any reason, the remaining directors shall immediately call a
special election to fill the vacancies. If the remaining directors
do not call the election, a district court, on application of a
district voter or taxpayer, may order the directors to hold the
election. (Acts 62nd Leg., R.S., Ch. 877, Sec. 4(b) (part).)
       Sec.1016.057.OFFICERS. The board shall elect a president
and a secretary from among its members. (Acts 62nd Leg., R.S., Ch.
877, Sec. 4(b) (part).)
       Sec.1016.058.VOTING REQUIREMENT.  A concurrence of four
directors is sufficient in any matter relating to district
business.  (Acts 62nd Leg., R.S., Ch. 877, Sec. 4(b) (part).)
       Sec.1016.059.MEETINGS. (a) A board meeting may be called
by the president or any four directors.
       (b)  Notice of the time and place of a board meeting must be
given to each director at least 72 hours before the time of the
meeting. (Acts 62nd Leg., R.S., Ch. 877, Sec. 4(b) (part).)
       Sec. 1016.060.  DISTRICT ADMINISTRATOR; ASSISTANT
ADMINISTRATOR.  (a) The board may appoint a qualified person as
district administrator.
       (b)  The board may appoint an assistant administrator.
       (c)  The district administrator and any assistant
administrator serve at the will of the board and are entitled to the
compensation determined by the board.
       (d)  On assuming the duties of district administrator, the
administrator shall execute a bond payable to the district in an
amount set by the board of not less than $5,000 that:
             (1)  is conditioned on the administrator performing the
administrator's duties; and
             (2)  contains other conditions the board may require.  
(Acts 62nd Leg., R.S., Ch. 877, Sec. 6 (part).)
       Sec.1016.061.GENERAL DUTIES OF DISTRICT ADMINISTRATOR.  
Subject to the limitations prescribed by the board, the district
administrator shall:
             (1)  supervise the work and activities of the district;
and
             (2)  direct the affairs of the district. (Acts 62nd
Leg., R.S., Ch. 877, Sec. 6 (part).)
       Sec.1016.062.EMPLOYEES; APPOINTMENT OF STAFF.  (a) The
board may appoint to the staff any doctors the board considers
necessary for the efficient operation of the district and may make
temporary appointments as necessary.
       (b)  The district may employ fiscal agents, accountants,
architects, and attorneys the board considers proper.
       (c)  The board may delegate to the district administrator the
authority to hire district employees, including technicians and
nurses.  (Acts 62nd Leg., R.S., Ch. 877, Secs. 6 (part), 16.)
       Sec.1016.063.SENIORITY; RETIREMENT BENEFITS. The board
may:
             (1)  adopt rules related to the seniority of district
employees, including rules for a retirement plan based on
seniority; and
             (2)  give effect to previous years of service for
district employees continuously employed in the operation or
management of hospital facilities:
                   (A)  constructed by the district; or
                   (B)  acquired by the district, including
facilities acquired when the district was created. (Acts 62nd
Leg., R.S., Ch. 877, Sec. 6 (part).)
[Sections 1016.064-1016.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
       Sec.1016.101.DISTRICT RESPONSIBILITY. The district has
full responsibility for providing hospital care for the district's
indigent residents.  (Acts 62nd Leg., R.S., Ch. 877, Sec. 19
(part).)
       Sec. 1016.102.  RESTRICTION ON POLITICAL SUBDIVISION
TAXATION AND DEBT. A political subdivision located within the
district may not impose a tax or issue bonds or other obligations
for hospital purposes or to provide medical care. (Acts 62nd Leg.,
R.S., Ch. 877, Sec. 19 (part).)
       Sec.1016.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.  
The board shall manage, control, and administer the hospital system
and the district's money and resources. (Acts 62nd Leg., R.S., Ch.
877, Sec. 6 (part).)
       Sec.1016.104.HOSPITAL SYSTEM.  (a)  The district shall
provide for the establishment of a hospital system by:
             (1)  purchasing, constructing, acquiring, repairing,
or renovating buildings and equipment;
             (2)  equipping the buildings; and
             (3)  administering the buildings and equipment for
hospital purposes.
       (b)  The hospital system may include:
             (1)  facilities for domiciliary care of the sick,
injured, or geriatric;
             (2)  facilities for outpatient clinics;
             (3)  dispensaries;
             (4)  convalescent home facilities;
             (5)  necessary nurses' domiciliaries and training
centers;
             (6)  blood banks;
             (7)  research centers or laboratories; and
             (8)  any other facilities the board considers necessary
for hospital care.  (Acts 62nd Leg., R.S., Ch. 877, Secs. 2 (part),
10 (part).)
       Sec.1016.105.RULES.  The board may adopt rules governing
the operation of the hospital, the hospital system, and the
district's staff and employees.  (Acts 62nd Leg., R.S., Ch. 877,
Sec. 6 (part).)
       Sec.1016.106.PURCHASING AND ACCOUNTING PROCEDURES.  The
board may prescribe:
             (1)  the method and manner of making purchases and
expenditures by and for the district; and
             (2)  all accounting and control procedures.  (Acts 62nd
Leg., R.S., Ch. 877, Sec. 11 (part).)
       Sec. 1016.107.  DISTRICT PROPERTY, FACILITIES, AND
EQUIPMENT.  (a)  The board shall determine the type, number, and
location of buildings required to maintain an adequate hospital
system.
       (b)  The board may lease all or part of the district's
buildings and other facilities on terms considered to be in the best
interest of the district's inhabitants.  The term of the lease may
not exceed 25 years.
       (c)  The district may acquire equipment for use in the
district's hospital system and mortgage or pledge the property as
security for the payment of the purchase price.  A contract entered
into under this subsection must provide that the entire obligation
be retired not later than the fifth anniversary of the date of the
contract.
       (d)  The district may sell or otherwise dispose of any
property, including equipment, on terms the board finds are in the
best interest of the district's inhabitants.  The board may not sell
or dispose of any real property unless the board affirmatively
finds that the property is not needed for the operation of the
hospital system. (Acts 62nd Leg., R.S., Ch. 877, Secs. 10 (part),
11 (part).)
       Sec.1016.108.EMINENT DOMAIN.  (a) The district may
exercise the power of eminent domain to acquire a fee simple or
other interest in any type of property located in district
territory if the interest is necessary for the district to exercise
a power, right, or privilege conferred by this chapter.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code, except the
district is not required to deposit in the trial court money or a
bond as provided by Section 21.021(a), Property Code.
       (c)  In a condemnation proceeding brought by the district,
the district is not required to:
             (1)  pay in advance or provide a bond or other security
for costs in the trial court;
             (2)  provide a bond for the issuance of a temporary
restraining order or a temporary injunction; or
             (3)  provide a bond for costs or a supersedeas bond on
an appeal or writ of error. (Acts 62nd Leg., R.S., Ch. 877, Sec.
15.)
       Sec.1016.109.GIFTS AND ENDOWMENTS.  The board may accept
for the district a gift or endowment to be held in trust and
administered by the board for the purposes and under the
directions, limitations, or other provisions prescribed in writing
by the donor that are not inconsistent with the proper management
and objectives of the district.  (Acts 62nd Leg., R.S., Ch. 877,
Sec. 18 (part).)
       Sec.1016.110.CONSTRUCTION OR PURCHASE CONTRACTS.  A
construction or purchase contract that involves the expenditure of
more than $2,000 may be made only after advertising in the manner
provided by Chapter 252 and Subchapter C, Chapter 262, Local
Government Code.  (Acts 62nd Leg., R.S., Ch. 877, Sec. 11 (part).)
       Sec.1016.111.OPERATING AND MANAGEMENT CONTRACTS.  The
board may enter into an operating or management contract relating
to a district facility.  (Acts 62nd Leg., R.S., Ch. 877, Sec. 10
(part).)
       Sec. 1016.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
HOSPITALIZATION. (a) The board may contract with a county or
municipality located outside the district's boundaries for the
hospitalization of a sick or injured person of that county or
municipality.
       (b)  The board may contract with this state or a federal
agency for the hospitalization of a sick or injured person.  (Acts
62nd Leg., R.S., Ch. 877, Sec. 6 (part).)
       Sec. 1016.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
INVESTIGATORY OR OTHER SERVICES.  The board may contract with a
political subdivision or governmental agency for the district to
provide investigatory and other services as to the hospital or
welfare needs of district inhabitants.  (Acts 62nd Leg., R.S., Ch.
877, Sec. 6 (part).)
       Sec.1016.114.PAYMENT FOR TREATMENT; PROCEDURES.  (a)
When a patient who resides in the district is admitted to a district
facility, the district administrator may have an inquiry made into
the circumstances of:
             (1)  the patient; and
             (2)  the patient's relatives who are legally liable for
the patient's support.
       (b)  If the district administrator determines that the
patient or those relatives cannot pay all or part of the costs of
the care and treatment in the hospital, the amount of the costs that
cannot be paid becomes a charge against the district.
       (c)  If the district administrator determines that the
patient or those relatives can pay for all or part of the costs of
the patient's care and treatment, the patient or those relatives
shall be ordered to pay the district a specified amount each week
for the patient's care and support. The amount ordered must be
proportionate to the person's financial ability.
       (d)  The district administrator may collect the amount from
the patient's estate, or from any relative who is legally liable for
the patient's support, in the manner provided by law for the
collection of expenses of the last illness of a deceased person.
       (e)  If there is a dispute as to the ability to pay, or doubt
in the mind of the district administrator, the board shall hold a
hearing and, after calling witnesses, shall:
             (1)  resolve the dispute or doubt; and
             (2)  issue any appropriate orders.
       (f)  The final order of the board may be appealed to the
district court.  The substantial evidence rule applies to the
appeal.  (Acts 62nd Leg., R.S., Ch. 877, Sec. 17.)
       Sec.1016.115.AUTHORITY TO SUE AND BE SUED.  (a)  The
district, through the board, may sue and be sued.
       (b)  The district is entitled to all causes of action and
defenses to which similar authorities performing only governmental
functions are entitled.  (Acts 62nd Leg., R.S., Ch. 877, Sec. 6
(part).)
[Sections 1016.116-1016.150 reserved for expansion]
SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
       Sec.1016.151.BUDGET.  (a) The district administrator
shall prepare an annual budget for approval by the board.
       (b)  The proposed budget must contain a complete financial
statement of:
             (1)  the outstanding obligations of the district;
             (2)  the cash on hand in each district fund;
             (3)  the money received by the district from all
sources during the previous year;
             (4)  the money available to the district from all
sources during the ensuing year;
             (5)  the balances expected at the end of the year in
which the budget is being prepared;
             (6)  the estimated revenue and balances available to
cover the proposed budget;
             (7)  the estimated tax rate required; and
             (8)  the proposed expenditures and disbursements and
the estimated receipts and collections for the following fiscal
year.  (Acts 62nd Leg., R.S., Ch. 877, Sec. 7 (part).)
       Sec.1016.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)
The board shall hold a public hearing on the proposed annual budget.
       (b)  At least 10 days before the date of the hearing, notice
of the hearing shall be published one time in a newspaper or
newspapers that individually or collectively have general
circulation in the district.
       (c)  Any property taxpayer of the district is entitled to be
present and participate at the hearing in accordance with the rules
of decorum and procedures prescribed by the board.
       (d)  At the conclusion of the hearing, the board shall adopt
a budget by acting on the budget proposed by the district
administrator. The board may make any changes in the proposed
budget that the board judges to be in the interest of the taxpayers
and that the law warrants.  (Acts 62nd Leg., R.S., Ch. 877, Sec. 7
(part).)
       Sec.1016.153.AMENDMENTS TO BUDGET.  The budget may be
amended as required by circumstances. The board must approve all
amendments.  (Acts 62nd Leg., R.S., Ch. 877, Sec. 7 (part).)
       Sec.1016.154.RESTRICTION ON EXPENDITURES. Money may be
spent only for an expense included in the budget or an amendment to
the budget.  (Acts 62nd Leg., R.S., Ch. 877, Sec. 7 (part).)
       Sec.1016.155.FISCAL YEAR.  (a) The district operates on a
fiscal year established by the board.
       (b)  The fiscal year may not be changed more than once in a
24-month period. (Acts 62nd Leg., R.S., Ch. 877, Sec. 7 (part).)
       Sec.1016.156.AUDIT.  (a)  The board shall have an
independent audit made of the district's financial condition for
the fiscal year.
       (b)  As soon as the audit is completed, the audit shall be
filed at the district's office.  (Acts 62nd Leg., R.S., Ch. 877,
Sec. 7 (part).)
       Sec.1016.157.INSPECTION OF AUDIT AND DISTRICT RECORDS.  
The audit and other district records shall be open to inspection at
the district's principal office.  (Acts 62nd Leg., R.S., Ch. 877,
Sec. 7 (part).)
       Sec.1016.158.FINANCIAL REPORT.  As soon as practicable
after the close of each fiscal year, the district administrator
shall prepare for the board:
             (1)  a complete sworn statement of all district money;
and
             (2)  a complete account of the disbursements of that
money.  (Acts 62nd Leg., R.S., Ch. 877, Sec. 7 (part).)
       Sec.1016.159.DEPOSITORY.  (a) The board shall select one
or more banks inside or outside the district to serve as a
depository for district money.
       (b)  District money, other than money invested as provided by
Section 1016.160(b), and money transmitted to a bank for payment of
bonds or obligations issued or assumed by the district, shall be
deposited as received with the depository bank and shall remain on
deposit.
       (c)  This chapter, including Subsection (b), does not limit
the power of the board to place a part of district money on time
deposit or to purchase certificates of deposit.  (Acts 62nd Leg.,
R.S., Ch. 877, Sec. 12.)
       Sec.1016.160.SPENDING AND INVESTMENT RESTRICTIONS.  (a)
Except as otherwise provided by Section 1016.107(c), this
subchapter, and Subchapter E, the district may not incur an
obligation payable from district revenue other than the revenue on
hand or to be on hand in the current and following district fiscal
years.
       (b)  The board may invest operating, depreciation, or
building reserves only in funds or securities specified by Chapter
2256, Government Code.  (Acts 62nd Leg., R.S., Ch. 877, Secs. 6
(part), 11 (part).)
[Sections 1016.161-1016.200 reserved for expansion]
SUBCHAPTER E.  BONDS
       Sec.1016.201.GENERAL OBLIGATION BONDS.  The board may
issue and sell general obligation bonds in the name and on the faith
and credit of the district for any purpose relating to:
             (1)  the purchase, construction, acquisition, repair,
or renovation of buildings or improvements; and
             (2)  equipping buildings or improvements for hospital
purposes.  (Acts 62nd Leg., R.S., Ch. 877, Sec. 8 (part).)
       Sec.1016.202.TAX TO PAY GENERAL OBLIGATION BONDS.  (a) At
the time general obligation bonds are issued by the district under
Section 1016.201, the board shall impose an ad valorem tax at a rate
sufficient to create an interest and sinking fund to pay the
principal of and interest on the bonds as the bonds mature.
       (b)  The tax required by this section together with any other
ad valorem tax the district imposes may not in any year exceed the
tax rate approved by the voters at the election authorizing the
imposition of the tax. (Acts 62nd Leg., R.S., Ch. 877, Sec. 8
(part).)
       Sec.1016.203.GENERAL OBLIGATION BOND ELECTION.  (a) The
district may issue general obligation bonds only if the bonds are
authorized by a majority of the district voters voting at an
election held for that purpose.
       (b)  The order calling the election shall provide for clerks
as in county elections and must specify:
             (1)  the date of the election;
             (2)  the location of the polling places;
             (3)  the presiding and alternate election judges for
each polling place;
             (4)  the amount of the bonds to be authorized;
             (5)  the maximum maturity of the bonds; and
             (6)  the maximum interest rate of the bonds.
       (c)  Notice of a bond election shall be given as provided by
Section 1251.003, Government Code.  (Acts 62nd Leg., R.S., Ch. 877,
Sec. 8 (part).)
       Sec.1016.204.REVENUE BONDS. (a) The board may issue
revenue bonds to:
             (1)  purchase, construct, acquire, repair, renovate,
or equip buildings or improvements for hospital purposes; or
             (2)  acquire sites to be used for hospital purposes.
       (b)  The bonds must be payable from and secured by a pledge of
all or part of the revenue derived from the operation of the
district's hospitals.
       (c)  The bonds may be additionally secured by a mortgage or
deed of trust lien on all or part of district property.
       (d)  The bonds must be issued in the manner and in accordance
with the procedures and requirements prescribed by Sections
264.042, 264.043, and 264.046-264.049, Health and Safety Code, for
issuance of revenue bonds by a county hospital authority. (Acts
62nd Leg., R.S., Ch. 877, Sec. 9(b) (part).)
       Sec.1016.205.REFUNDING BONDS. (a) The board may issue
refunding bonds to refund outstanding indebtedness issued or
assumed by the district.
       (b)  Refunding bonds may be:
             (1)  sold, with the proceeds of the refunding bonds
applied to the payment of the outstanding indebtedness; or
             (2)  exchanged wholly or partly for not less than a
similar principal amount of outstanding indebtedness.  (Acts 62nd
Leg., R.S., Ch. 877, Secs. 9(a) (part), (b) (part).)
       Sec.1016.206.MATURITY OF BONDS.  District bonds must
mature not later than 40 years after the date of issuance. (Acts
62nd Leg., R.S., Ch. 877, Sec. 9(c) (part).)
       Sec.1016.207.EXECUTION OF BONDS.  (a) The board president
shall execute the district's bonds in the district's name.
       (b)  The board secretary shall countersign the bonds in the
manner provided by Chapter 618, Government Code. (Acts 62nd Leg.,
R.S., Ch. 877, Sec. 9(c) (part).)
       Sec.1016.208.BONDS EXEMPT FROM TAXATION.  The following
are exempt from taxation by this state or a political subdivision of
this state:
             (1)  bonds issued by the district;
             (2)  the transfer and issuance of the bonds; and
             (3)  profits made in the sale of the bonds.  (Acts 62nd
Leg., R.S., Ch. 877, Sec. 21 (part).)
[Sections 1016.209-1016.250 reserved for expansion]
SUBCHAPTER F.  TAXES
       Sec.1016.251.IMPOSITION OF AD VALOREM TAX. (a) The board
shall impose a tax on all property in the district subject to
district taxation.
       (b)  The board shall impose the tax to:
             (1)  pay the interest on and create a sinking fund for
bonds or other obligations issued or assumed by the district for
hospital purposes;
             (2)  pay indebtedness incurred or assumed by the
district;
             (3)  provide for the operation and maintenance of the
district and the hospital or hospital system;
             (4)  make improvements and additions to the hospital
system; and
             (5)  acquire necessary sites for the hospital system by
purchase, lease, or condemnation. (Acts 62nd Leg., R.S., Ch. 877,
Secs. 5 (part), 13 (part).)
       Sec.1016.252.TAX RATE. (a) The board may impose the tax
at a rate not to exceed 75 cents on each $100 valuation of all
taxable property in the district.
       (b)  In setting the tax rate, the board shall consider the
income of the district from sources other than taxation. (Acts 62nd
Leg., R.S., Ch. 877, Secs. 5 (part), 13 (part).)
CHAPTER 1017.  CULBERSON COUNTY HOSPITAL DISTRICT
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 1017.001.  DEFINITIONS
Sec. 1017.002.  AUTHORITY FOR OPERATION
Sec. 1017.003.  ESSENTIAL PUBLIC FUNCTION
Sec. 1017.004.  DISTRICT TERRITORY
Sec. 1017.005.  DISTRICT SUPPORT AND MAINTENANCE NOT
                 STATE OBLIGATION
Sec. 1017.006.  RESTRICTION ON STATE FINANCIAL
                 ASSISTANCE
[Sections 1017.007-1017.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 1017.051.  BOARD ELECTION; TERM
Sec. 1017.052.  NOTICE OF ELECTION
Sec. 1017.053.  BALLOT PETITION
Sec. 1017.054.  QUALIFICATIONS FOR OFFICE
Sec. 1017.055.  BOND; RECORD OF BOND
Sec. 1017.056.  BOARD VACANCY
Sec. 1017.057.  OFFICERS
Sec. 1017.058.  COMPENSATION; EXPENSES
Sec. 1017.059.  VOTING REQUIREMENT
Sec. 1017.060.  DISTRICT ADMINISTRATOR
Sec. 1017.061.  GENERAL DUTIES OF DISTRICT
                 ADMINISTRATOR
Sec. 1017.062.  ASSISTANT DISTRICT ADMINISTRATOR;
                 ATTORNEY
Sec. 1017.063.  APPOINTMENTS AND RECRUITMENT OF STAFF
                 AND EMPLOYEES
Sec. 1017.064.  RETIREMENT BENEFITS
[Sections 1017.065-1017.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
Sec. 1017.101.  DISTRICT RESPONSIBILITY
Sec. 1017.102.  RESTRICTION ON CULBERSON COUNTY
                 TAXATION AND DEBT
Sec. 1017.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION
Sec. 1017.104.  RULES
Sec. 1017.105.  PURCHASING AND ACCOUNTING PROCEDURES
Sec. 1017.106.  MOBILE EMERGENCY MEDICAL SERVICE
Sec. 1017.107.  DISTRICT PROPERTY, FACILITIES, AND
                 EQUIPMENT
Sec. 1017.108.  EMINENT DOMAIN
Sec. 1017.109.  COST OF RELOCATING OR ALTERING PROPERTY
Sec. 1017.110.  GIFTS AND ENDOWMENTS
Sec. 1017.111.  CONSTRUCTION CONTRACTS
Sec. 1017.112.  OPERATING AND MANAGEMENT CONTRACTS
Sec. 1017.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                 FOR SERVICES
Sec. 1017.114.  PAYMENT FOR TREATMENT; PROCEDURES
Sec. 1017.115.  REIMBURSEMENT FOR SERVICE
Sec. 1017.116.  AUTHORITY TO SUE AND BE SUED
[Sections 1017.117-1017.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCE PROVISIONS
Sec. 1017.151.  BUDGET
Sec. 1017.152.  NOTICE; HEARING; ADOPTION OF BUDGET
Sec. 1017.153.  AMENDMENTS TO BUDGET
Sec. 1017.154.  RESTRICTION ON EXPENDITURES
Sec. 1017.155.  FISCAL YEAR
Sec. 1017.156.  ANNUAL AUDIT
Sec. 1017.157.  INSPECTION OF ANNUAL AUDIT AND DISTRICT
                 RECORDS
Sec. 1017.158.  FINANCIAL REPORT
Sec. 1017.159.  DEPOSITORY
Sec. 1017.160.  SPENDING AND INVESTMENT RESTRICTIONS
Sec. 1017.161.  AUTHORITY TO BORROW MONEY; SECURITY
[Sections 1017.162-1017.200 reserved for expansion]
SUBCHAPTER E.  BONDS
Sec. 1017.201.  GENERAL OBLIGATION BONDS
Sec. 1017.202.  TAX TO PAY GENERAL OBLIGATION BONDS
Sec. 1017.203.  GENERAL OBLIGATION BOND ELECTION
Sec. 1017.204.  REVENUE BONDS
Sec. 1017.205.  REFUNDING BONDS
Sec. 1017.206.  MATURITY OF BONDS
Sec. 1017.207.  EXECUTION OF BONDS
Sec. 1017.208.  BONDS EXEMPT FROM TAXATION
[Sections 1017.209-1017.250 reserved for expansion]
SUBCHAPTER F. AD VALOREM TAX
Sec. 1017.251.  IMPOSITION OF AD VALOREM TAX
Sec. 1017.252.  TAX RATE
Sec. 1017.253.  TAX ASSESSOR-COLLECTOR
CHAPTER 1017.  CULBERSON COUNTY HOSPITAL DISTRICT
SUBCHAPTER A.  GENERAL PROVISIONS
       Sec.1017.001.DEFINITIONS.  In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "Director" means a member of the board.
             (3)  "District" means the Culberson County Hospital
District.  (Acts 69th Leg., R.S., Ch. 515, Sec. 1.01.)
       Sec.1017.002.AUTHORITY FOR OPERATION.  The district
operates and is financed as provided by Section 9, Article IX, Texas
Constitution, and by this chapter. (Acts 69th Leg., R.S., Ch. 515,
Sec. 1.02.)
       Sec.1017.003.ESSENTIAL PUBLIC FUNCTION. The district is
a public entity performing an essential public function. (Acts
69th Leg., R.S., Ch. 515, Sec. 7.11 (part).)
       Sec.1017.004.DISTRICT TERRITORY.  The boundaries of the
district are coextensive with the boundaries of Culberson County,
Texas. (Acts 69th Leg., R.S., Ch. 515, Sec. 1.03.)
       Sec. 1017.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE
OBLIGATION. The state may not become obligated for the support or
maintenance of the district. (Acts 69th Leg., R.S., Ch. 515, Sec.
9.01 (part).)
       Sec.1017.006.RESTRICTION ON STATE FINANCIAL ASSISTANCE.
The legislature may not make a direct appropriation for the
construction, maintenance, or improvement of a district facility.
(Acts 69th Leg., R.S., Ch. 515, Sec. 9.01 (part).)
[Sections 1017.007-1017.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
       Sec.1017.051.BOARD ELECTION; TERM.  (a)  The district is
governed by a board of five directors elected from the district at
large.
       (b)  Directors serve staggered two-year terms unless
four-year terms are established under Section 285.081, Health and
Safety Code.  (Acts 69th Leg., R.S., Ch. 515, Secs. 4.01(a),
4.03(a), (c).)
       Sec.1017.052.NOTICE OF ELECTION. At least 35 days before
the date of an election of directors, notice of the election shall
be published one time in a newspaper with general circulation in the
district. (Acts 69th Leg., R.S., Ch. 515, Sec. 4.04.)
       Sec.1017.053.BALLOT PETITION.  A person who wants to have
the person's name printed on the ballot as a candidate for director
must file with the board secretary a petition requesting that
action.  The petition must be:
             (1)  signed by at least one registered voter of the
district as determined by the most recent official list of
registered voters; and
             (2)  filed not later than the 31st day before the date
of the election.  (Acts 69th Leg., R.S., Ch. 515, Sec. 4.05.)
       Sec.1017.054.QUALIFICATIONS FOR OFFICE. (a) To be
eligible to be a candidate for or to serve as a director, a person
must be:
             (1)  a district resident; and
             (2)  a qualified voter.
       (b)  A district employee may not serve as a director.  (Acts
69th Leg., R.S., Ch. 515, Sec. 4.06.)
       Sec.1017.055.BOND; RECORD OF BOND.  (a)  Before assuming
the duties of office, each director must execute a bond for $5,000
that is:
             (1)  payable to the district; and
             (2)  conditioned on the faithful performance of the
director's duties.
       (b)  The board may pay for a director's bond with district
money.
       (c)  The bond shall be kept in the permanent records of the
district.  (Acts 69th Leg., R.S., Ch. 515, Sec. 4.07.)
       Sec.1017.056.BOARD VACANCY.  If a vacancy occurs in the
office of director, the remaining directors shall appoint a
director for the unexpired term.  (Acts 69th Leg., R.S., Ch. 515,
Sec. 4.08.)
       Sec.1017.057.OFFICERS.  (a)  The board shall elect a
president and a vice president from among its members.
       (b)  The board shall appoint a secretary, who need not be a
director.
       (c)  Each officer of the board serves for a term of one year.
       (d)  The board shall fill a vacancy in a board office for the
unexpired term.  (Acts 69th Leg., R.S., Ch. 515, Secs. 4.09, 4.10.)
       Sec.1017.058.COMPENSATION; EXPENSES. A director or
officer serves without compensation but may be reimbursed for
actual expenses incurred in the performance of official duties.
The expenses must be:
             (1)  reported in the district's records; and
             (2)  approved by the board. (Acts 69th Leg., R.S., Ch.
515, Sec. 4.11.)
       Sec.1017.059.VOTING REQUIREMENT.  A concurrence of a
majority of the directors voting is necessary in any matter
relating to district business. (Acts 69th Leg., R.S., Ch. 515, Sec.
4.12.)
       Sec.1017.060.DISTRICT ADMINISTRATOR.  (a)  The board may
appoint a qualified person as district administrator.
       (b)  The district administrator serves at the will of the
board and is entitled to the compensation determined by the board.
       (c)  Before assuming the duties of district administrator,
the administrator must execute a bond in the amount set by the board
of not less than $5,000 that is:
             (1)  payable to the district; and
             (2)  conditioned on the faithful performance of the
administrator's duties under this chapter.
       (d)  The board may pay for the bond with district money.  
(Acts 69th Leg., R.S., Ch. 515, Secs. 4.13(a) (part), (b) (part),
(c) (part), (d).)
       Sec.1017.061.GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
Subject to the limitations prescribed by the board, the district
administrator shall:
             (1)  supervise the work and activities of the district;
and
             (2)  direct the general affairs of the district.  (Acts
69th Leg., R.S., Ch. 515, Sec. 4.17.)
       Sec.1017.062.ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.
(a) The board may appoint qualified persons as:
             (1)  the assistant district administrator; and
             (2)  the attorney for the district.
       (b)  The assistant district administrator and the attorney
for the district serve at the will of the board and are entitled to
the compensation determined by the board.  (Acts 69th Leg., R.S.,
Ch. 515, Secs. 4.13(a) (part), (b) (part), (c) (part).)
       Sec. 1017.063.  APPOINTMENTS AND RECRUITMENT OF STAFF AND
EMPLOYEES. (a) The board may appoint to the staff any doctors the
board considers necessary for the efficient operation of the
district and may make temporary appointments as necessary.
       (b)  The district may employ technicians, nurses, fiscal
agents, accountants, architects, additional attorneys, and other
necessary employees.
       (c)  The board may delegate to the district administrator the
authority to employ persons for the district.
       (d)  The board may spend money to recruit physicians, nurses,
or other trained medical personnel. The board may pay the tuition or
other costs or expenses of a full-time medical student or nursing
student who:
             (1)  is enrolled in and is in good standing at an
accredited school, college, or university; and
             (2)  contractually agrees to become a district employee
in return for that assistance. (Acts 69th Leg., R.S., Ch. 515,
Secs. 4.14, 4.15, 4.16.)
       Sec.1017.064.RETIREMENT BENEFITS. The board may provide
retirement benefits for district employees by:
             (1)  establishing or administering a retirement
program; or
             (2)  participating in:
                   (A)  the Texas County and District Retirement
System; or
                   (B)  another statewide retirement system in which
the district is eligible to participate. (Acts 69th Leg., R.S., Ch.
515, Sec. 4.18.)
[Sections 1017.065-1017.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
       Sec.1017.101.DISTRICT RESPONSIBILITY. The district has
full responsibility for:
             (1)  operating hospital facilities; and
             (2)  providing medical and hospital care for the
district's needy inhabitants.  (Acts 69th Leg., R.S., Ch. 515, Sec.
5.02 (part).)
       Sec. 1017.102.  RESTRICTION ON CULBERSON COUNTY TAXATION AND
DEBT.  Culberson County may not impose a tax or issue bonds or other
obligations for hospital purposes or to provide medical care for
district residents.  (Acts 69th Leg., R.S., Ch. 515, Sec. 5.01(b).)
       Sec.1017.103.MANAGEMENT, CONTROL, AND ADMINISTRATION.
The board shall manage, control, and administer the hospital system
and the district's money and resources. (Acts 69th Leg., R.S., Ch.
515, Sec. 5.03.)
       Sec.1017.104.RULES.  The board may adopt rules governing:
             (1)  the operation of the hospital and hospital system;
and
             (2)  the duties, functions, and responsibilities of
district staff and employees.  (Acts 69th Leg., R.S., Ch. 515, Sec.
5.04.)
       Sec.1017.105.PURCHASING AND ACCOUNTING PROCEDURES. The
board may prescribe:
             (1)  the method of making purchases and expenditures by
and for the district; and
             (2)  accounting and control procedures for the
district. (Acts 69th Leg., R.S., Ch. 515, Sec. 5.05.)
       Sec.1017.106.MOBILE EMERGENCY MEDICAL SERVICE.  The
district may operate or provide for the operation of a mobile
emergency medical service. (Acts 69th Leg., R.S., Ch. 515, Sec.
5.02 (part).)
       Sec. 1017.107.  DISTRICT PROPERTY, FACILITIES, AND
EQUIPMENT. (a) The board shall determine the type, number, and
location of buildings required to maintain an adequate hospital
system and the type of equipment necessary for hospital care. The
hospital system may include facilities and equipment to provide for
domiciliary care and treatment of geriatric patients.
       (b)  The board may:
             (1)  lease or acquire property, including facilities
and equipment, for the use of the district; and
             (2)  mortgage or pledge the property as security for
the payment of the purchase price.
       (c)  The board may sell, lease, or otherwise dispose of
property, including facilities or equipment, for the district.
Sale or other disposal under this subsection must be at a public
sale and at a price and on the terms the board determines are most
advantageous to the district.
       (d)  The board may donate to another governmental entity or
to a charitable organization any surplus personal property or
equipment if the donation serves a public purpose and is
accompanied by adequate consideration. (Acts 69th Leg., R.S., Ch.
515, Sec. 5.06.)
       Sec.1017.108.EMINENT DOMAIN. (a) The district may
exercise the power of eminent domain to acquire a fee simple or
other interest in property located in district territory if the
property interest is necessary to exercise a right or authority
conferred by this chapter.
       (b)  The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code, except the
district is not required to deposit money in the trial court or
execute a bond as provided by Section 21.021(a)(2) or (3), Property
Code.
       (c)  In a condemnation proceeding brought by the district,
the district is not required to:
             (1)  pay in advance or provide a bond or other security
for costs in the trial court;
             (2)  provide a bond for the issuance of a temporary
restraining order or a temporary injunction; or
             (3)  provide a bond for costs or a supersedeas bond on
an appeal or writ of error. (Acts 69th Leg., R.S., Ch. 515, Sec.
5.09.)
       Sec.1017.109.COST OF RELOCATING OR ALTERING PROPERTY. In
exercising the power of eminent domain, if the board requires
relocating, raising, lowering, rerouting, changing the grade of, or
altering the construction of any railroad, highway, pipeline, or
electric transmission, telegraph, or telephone line, conduit,
pole, or facility, the district must bear the actual cost of
relocating, raising, lowering, rerouting, changing the grade, or
altering the construction to provide comparable replacement
without enhancement of facilities, after deducting the net salvage
value derived from the old facility.  (Acts 69th Leg., R.S., Ch.
515, Sec. 5.10.)
       Sec.1017.110.GIFTS AND ENDOWMENTS. The board may accept
for the district a gift or endowment to be held in trust for any
purpose and under any direction, limitation, or other provision
prescribed in writing by the donor that is consistent with the
proper management of the district. (Acts 69th Leg., R.S., Ch. 515,
Sec. 5.14.)
       Sec.1017.111.CONSTRUCTION CONTRACTS. (a) The board may
enter into construction contracts for the district.
       (b)  The board may enter into a construction contract that
involves the expenditure of more than the amount provided by
Section 271.024, Local Government Code, only after competitive
bidding as provided by Subchapter B, Chapter 271, Local Government
Code. (Acts 69th Leg., R.S., Ch. 515, Sec. 5.07(a).)
       Sec.1017.112.OPERATING AND MANAGEMENT CONTRACTS.  The
board may enter into an operating or management contract relating
to a hospital facility for the district.  (Acts 69th Leg., R.S., Ch.
515, Sec. 5.08.)
       Sec. 1017.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
SERVICES. The board may contract with a political subdivision of
the state or with a state or federal agency for the district to:
             (1)  furnish a mobile emergency medical service; or
             (2)  provide for the investigatory or welfare needs of
district inhabitants.  (Acts 69th Leg., R.S., Ch. 515, Sec. 5.13.)
       Sec.1017.114.PAYMENT FOR TREATMENT; PROCEDURES. (a)
When a person who resides in the district is admitted as a patient
to a district facility, the district administrator may have an
inquiry made into the financial circumstances of:
             (1)  the patient; and
             (2)  a relative of the patient who is legally
responsible for the patient's support.
       (b)  To the extent that a patient or a relative of the patient
legally responsible for the patient's support cannot pay for care
and treatment provided by the district, the district shall supply
the care and treatment without charging the patient or the
patient's relative.
       (c)  On determining that the patient or a relative legally
responsible for the patient's support can pay for all or any part of
the care and treatment provided by the district, the district
administrator shall report that determination to the board, and the
board shall issue an order directing the patient or the relative to
pay the district a specified amount each week.  The amount must be
based on the person's ability to pay.
       (d)  The district administrator may collect the amount owed
to the district from the patient's estate or from that of a relative
who was legally responsible for the patient's support in the manner
provided by law for collection of expenses in the last illness of a
deceased person.
       (e)  If there is a dispute relating to a person's ability to
pay or if the district administrator has any doubt concerning a
person's ability to pay, the board shall:
             (1)  call witnesses;
             (2)  hear and resolve the question; and
             (3)  issue a final order.
       (f)  The final order of the board may be appealed to a
district court in Culberson County.  The substantial evidence rule
applies to the appeal. (Acts 69th Leg., R.S., Ch. 515, Sec. 5.11.)
       Sec.1017.115.REIMBURSEMENT FOR SERVICE. (a) The board
shall require a county or municipality located outside the district
to reimburse the district for the district's care and treatment of a
sick or injured person of that county or municipality.
       (b)  The board shall require the sheriff of Culberson County
to reimburse the district for the district's care and treatment of a
person who is confined in a jail facility of Culberson County and is
not a district resident.
       (c)  On behalf of the district, the board may contract with
the state or federal government for that government to reimburse
the district for treatment of a sick or injured person.  (Acts 69th
Leg., R.S., Ch. 515, Sec. 5.12.)
       Sec.1017.116.AUTHORITY TO SUE AND BE SUED. The board may
sue and be sued on behalf of the district.  (Acts 69th Leg., R.S.,
Ch. 515, Sec. 5.15.)
[Sections 1017.117-1017.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCE PROVISIONS
       Sec.1017.151.BUDGET. (a) The district administrator
shall prepare a proposed annual budget for the district.
       (b)  The proposed budget must contain a complete financial
statement, including a statement of:
             (1)  the outstanding obligations of the district;
             (2)  the amount of cash on hand in each district fund;
             (3)  the amount of money received by the district from
all sources during the previous year;
             (4)  the amount of money available to the district from
all sources during the ensuing year;
             (5)  the amount of the balances expected at the end of
the year in which the budget is being prepared;
             (6)  the estimated amount of revenue and balances
available to cover the proposed budget; and
             (7)  the estimated tax rate required.  (Acts 69th Leg.,
R.S., Ch. 515, Sec. 6.04.)
       Sec.1017.152.NOTICE; HEARING; ADOPTION OF BUDGET. (a)
The board shall hold a public hearing on the proposed annual budget.
       (b)  The board shall publish notice of the hearing in a
newspaper with general circulation in the district not later than
the 10th day before the date of the hearing.
       (c)  Any district resident is entitled to be present and
participate at the hearing.
       (d)  At the conclusion of the hearing, the board shall adopt
a budget by acting on the budget proposed by the district
administrator. The board may make any changes in the proposed
budget that the board determines to be in the interests of the
taxpayers.
       (e)  The budget is effective only after adoption by the
board.  (Acts 69th Leg., R.S., Ch. 515, Sec. 6.05.)
       Sec.1017.153.AMENDMENTS TO BUDGET. After adoption, the
annual budget may be amended on the board's approval.  (Acts 69th
Leg., R.S., Ch. 515, Sec. 6.06.)
       Sec.1017.154.RESTRICTION ON EXPENDITURES. Money may be
spent only for an expense included in the budget or an amendment to
the budget.  (Acts 69th Leg., R.S., Ch. 515, Sec. 6.07.)
       Sec.1017.155.FISCAL YEAR.  (a) The district operates on a
fiscal year established by the board.
       (b)  The fiscal year may not be changed:
             (1)  during a period that revenue bonds of the district
are outstanding; or
             (2)  more than once in a 24-month period.  (Acts 69th
Leg., R.S., Ch. 515, Sec. 6.01.)
       Sec.1017.156.ANNUAL AUDIT. The board annually shall have
an audit made of the district's financial condition.  (Acts 69th
Leg., R.S., Ch. 515, Sec. 6.02.)
       Sec. 1017.157.  INSPECTION OF ANNUAL AUDIT AND DISTRICT
RECORDS. The annual audit and other district records shall be open
to inspection during regular business hours at the district's
principal office.  (Acts 69th Leg., R.S., Ch. 515, Sec. 6.03.)
       Sec.1017.158.FINANCIAL REPORT.  As soon as practicable
after the close of the fiscal year, the district administrator
shall prepare for the board:
             (1)  a sworn statement of the amount of district money;
and
             (2)  an account of the disbursements of that money.  
(Acts 69th Leg., R.S., Ch. 515, Sec. 6.08.)
       Sec.1017.159.DEPOSITORY. (a) The board shall select at
least one bank to serve as a depository for district money.
       (b)  District money, other than money invested as provided by
Section 1017.160(b) and money transmitted to a bank for payment of
bonds or obligations issued or assumed by the district, shall be
deposited as received with the depository bank and shall remain on
deposit. This subsection does not limit the power of the board to
place a part of district money on time deposit or to purchase
certificates of deposit.
       (c)  The district may not deposit money with a bank in an
amount that exceeds the maximum amount secured by the Federal
Deposit Insurance Corporation unless the bank first executes a bond
or other security in an amount sufficient to secure from loss the
district money that exceeds the amount secured by the Federal
Deposit Insurance Corporation.  (Acts 69th Leg., R.S., Ch. 515,
Sec. 6.10.)
       Sec.1017.160.SPENDING AND INVESTMENT RESTRICTIONS. (a)
Except as provided by this section and Sections 1017.063(d),
1017.111, 1017.201, 1017.204, and 1017.205, the district may not
incur a debt payable from district revenue other than the revenue on
hand or to be on hand in the current and immediately following
district fiscal years.
       (b)  The board may invest operating, depreciation, or
building reserves only in funds or securities specified by Chapter
2256, Government Code.  (Acts 69th Leg., R.S., Ch. 515, Secs.
6.09(a), (b).)
       Sec.1017.161.AUTHORITY TO BORROW MONEY; SECURITY.  (a)  
The board may borrow money at a rate of not more than 10 percent a
year on district notes to pay the obligations if the board declares
that money is not available to meet authorized district
obligations, which creates an emergency.
       (b)  To secure a loan, the board may pledge:
             (1)  district revenue that is not pledged to pay the
district's bonded indebtedness;
             (2)  a district tax to be imposed by the district in the
next 12-month period that is not pledged to pay the principal of or
interest on district bonds; or
             (3)  district bonds that have been authorized but not
sold.
       (c)  A loan for which taxes or bonds are pledged must mature
not later than the first anniversary of the date the loan is made. A
loan for which district revenue is pledged must mature not later
than the fifth anniversary of the date the loan is made.
       (d)  Money obtained from a loan under this section may be
spent only for:
             (1)  a purpose for which the board declared an
emergency; and
             (2)  if district taxes or bonds are pledged to pay the
loan, the purposes for which the taxes were imposed or the bonds
were authorized.  (Acts 69th Leg., R.S., Ch. 515, Sec. 6.09(c).)
[Sections 1017.162-1017.200 reserved for expansion]
SUBCHAPTER E.  BONDS
       Sec.1017.201.GENERAL OBLIGATION BONDS. If authorized by
an election, the board may issue and sell general obligation bonds
in the name and on the faith and credit of the district to:
             (1)  purchase, construct, acquire, repair, or renovate
buildings or improvements;
             (2)  equip buildings or improvements for hospital
purposes; or
             (3)  acquire and operate a mobile emergency medical
service.  (Acts 69th Leg., R.S., Ch. 515, Sec. 7.01.)
       Sec.1017.202.TAX TO PAY GENERAL OBLIGATION BONDS. (a) At
the time general obligation bonds are issued by the district under
Section 1017.201, the board shall impose an ad valorem tax at a rate
sufficient to create an interest and sinking fund to pay the
principal of and interest on the bonds as the bonds mature.
       (b)  The tax required by this section together with any other
ad valorem tax the district imposes may not in any year exceed the
limit approved by the voters at the election authorizing the
imposition of a tax. (Acts 69th Leg., R.S., Ch. 515, Sec. 7.02.)
       Sec.1017.203.GENERAL OBLIGATION BOND ELECTION. (a) The
district may issue general obligation bonds only if the bonds are
authorized by a majority of the district voters.
       (b)  The board may order a bond election.
       (c)  The order calling the election must specify:
             (1)  the nature and date of the election;
             (2)  the hours during which the polls will be open;
             (3)  the location of the polling places;
             (4)  the amount of the bonds to be authorized; and
             (5)  the maximum maturity of the bonds.
       (d)  Notice of a bond election shall be given as provided by
Section 1251.003, Government Code.
       (e)  The board shall declare the results of the election.
(Acts 69th Leg., R.S., Ch. 515, Sec. 7.03.)
       Sec.1017.204.REVENUE BONDS. (a) The board may issue
revenue bonds to:
             (1)  purchase, construct, acquire, repair, renovate,
or equip buildings or improvements for hospital purposes;
             (2)  acquire sites to be used for hospital purposes; or
             (3)  acquire and operate a mobile emergency medical
service to assist the district in carrying out its hospital
purposes.
       (b)  The bonds must be payable from and secured by a pledge of
all or part of the revenue derived from the operation of the
district's hospital system.
       (c)  The bonds may be additionally secured by a mortgage or
deed of trust lien on all or part of district property.
       (d)  The bonds must be issued in the manner provided by
Sections 264.042, 264.043, and 264.046-264.049, Health and Safety
Code, for issuance of revenue bonds by a county hospital authority.
(Acts 69th Leg., R.S., Ch. 515, Sec. 7.04.)
       Sec.1017.205.REFUNDING BONDS. (a) The board may issue
refunding bonds to refund outstanding indebtedness issued or
assumed by the district.
       (b)  A refunding bond may be:
             (1)  sold, with the proceeds of the refunding bond
applied to the payment of the outstanding indebtedness; or
             (2)  exchanged wholly or partly for not less than a
similar principal amount of outstanding indebtedness.  (Acts 69th
Leg., R.S., Ch. 515, Secs. 7.05(a), (c) (part).)
       Sec.1017.206.MATURITY OF BONDS. District bonds must
mature not later than 50 years after the date of issuance. (Acts
69th Leg., R.S., Ch. 515, Sec. 7.06 (part).)
       Sec.1017.207.EXECUTION OF BONDS. (a) The board president
shall execute district bonds in the district's name.
       (b)  The board secretary shall countersign the bonds in the
manner provided by Chapter 618, Government Code. (Acts 69th Leg.,
R.S., Ch. 515, Sec. 7.07.)
       Sec.1017.208.BONDS EXEMPT FROM TAXATION.  The following
are exempt from taxation by this state or a political subdivision of
this state:
             (1)  bonds issued by the district;
             (2)  any transaction relating to the bonds; and
             (3)  profits made in the sale of the bonds. (Acts 69th
Leg., R.S., Ch. 515, Sec. 7.11 (part).)
[Sections 1017.209-1017.250 reserved for expansion]
SUBCHAPTER F. AD VALOREM TAX
       Sec.1017.251.IMPOSITION OF AD VALOREM TAX. (a) The board
may impose a tax on all property in the district subject to district
taxation.
       (b)  The tax may be used to pa