81R11947 MCK/KEL/PAM-D

By: Frost H.B. No. 2619

A BILL TO BE ENTITLED

AN ACT

relating to the nonsubstantive revision of certain local laws concerning special districts, including conforming amendments.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. NONSUBSTANTIVE REVISION OF LOCAL LAWS

SECTION 1.01. Subtitle A, Title 3, Special District Local Laws Code, is amended by adding Chapters 1035, 1056, 1061, 1063, 1064, 1067, 1072, 1073, 1077, 1078, 1079, 1080, 1081, 1082, 1083, 1084, 1085, 1088, 1089, 1090, 1091, 1092, 1093, 1094, 1095, and 1097 to read as follows: CHAPTER 1035. DEWITT MEDICAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1035.001. DEFINITIONS Sec. 1035.002. AUTHORITY FOR CREATION Sec. 1035.003. POLITICAL SUBDIVISION Sec. 1035.004. DISTRICT TERRITORY Sec. 1035.005. CORRECTION OF INVALID PROCEDURES Sec. 1035.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION

[Sections 1035.007-1035.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1035.051. BOARD ELECTION; TERM Sec. 1035.052. NOTICE OF ELECTION Sec. 1035.053. QUALIFICATIONS FOR OFFICE Sec. 1035.054. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE Sec. 1035.055. BOARD VACANCY Sec. 1035.056. OFFICERS Sec. 1035.057. COMPENSATION; EXPENSES Sec. 1035.058. VOTING REQUIREMENT Sec. 1035.059. DISTRICT ADMINISTRATOR Sec. 1035.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1035.061. RECRUITMENT OF MEDICAL STAFF AND

EMPLOYEES Sec. 1035.062. CONTINUING EDUCATION; RETRAINING Sec. 1035.063. DOCTORS AND OTHER EMPLOYEES

[Sections 1035.064-1035.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1035.101. DISTRICT RESPONSIBILITY Sec. 1035.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1035.103. MANAGEMENT AND CONTROL Sec. 1035.104. HOSPITAL SYSTEM Sec. 1035.105. PROVISION OF CERTAIN HEALTH SERVICES Sec. 1035.106. EMINENT DOMAIN Sec. 1035.107. GIFTS AND ENDOWMENTS Sec. 1035.108. CONTRACT WITH NIXON HOSPITAL DISTRICT Sec. 1035.109. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1035.110. REIMBURSEMENT FOR SERVICES Sec. 1035.111. AUTHORITY TO SUE AND BE SUED

[Sections 1035.112-1035.150 reserved for expansion]

SUBCHAPTER D. CHANGE IN BOUNDARIES Sec. 1035.151. EXPANSION OF TERRITORY; BOARD ORDER Sec. 1035.152. ANNEXATION OF TERRITORY; PETITION Sec. 1035.153. APPROVAL OR DENIAL OF ANNEXATION

PETITION Sec. 1035.154. ELECTION ORDER Sec. 1035.155. ELECTION DATE Sec. 1035.156. NOTICE OF ELECTION Sec. 1035.157. BALLOT Sec. 1035.158. ELECTION RESULTS

[Sections 1035.159-1035.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS Sec. 1035.201. DEPOSITORY Sec. 1035.202. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1035.203-1035.250 reserved for expansion]

SUBCHAPTER F. BONDS Sec. 1035.251. GENERAL OBLIGATION BONDS Sec. 1035.252. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1035.253. GENERAL OBLIGATION BOND ELECTION Sec. 1035.254. EXECUTION OF BONDS Sec. 1035.255. INVESTMENT OF BOND PROCEEDS Sec. 1035.256. REVENUE BONDS

[Sections 1035.257-1035.300 reserved for expansion]

SUBCHAPTER G. TAXES Sec. 1035.301. IMPOSITION OF AD VALOREM TAX Sec. 1035.302. TAX RATE Sec. 1035.303. TAX ASSESSOR-COLLECTOR

CHAPTER 1035. DEWITT MEDICAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1035.001. 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 DeWitt Medical District. (New.)

Sec. 1035.002. AUTHORITY FOR CREATION. The DeWitt Medical District is created under the authority of Section 9, Article IX, Texas Constitution. (Acts 59th Leg., R.S., Ch. 310, Secs. 1 (part), 1A(a).)

Sec. 1035.003. POLITICAL SUBDIVISION. The district is a political subdivision of this state. (Acts 59th Leg., R.S., Ch. 310, Sec. 15 (part).)

Sec. 1035.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 1, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue a bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district. (New; Acts 59th Leg., R.S., Ch. 310, Sec. 1 (part).)

Sec. 1035.005. CORRECTION OF INVALID PROCEDURES. If a court holds that any procedure under this chapter violates the constitution of this state or of the United States, the district by resolution may provide an alternative procedure that conforms with the constitution. (Acts 59th Leg., R.S., Ch. 310, Sec. 17 (part).)

Sec. 1035.006. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. The support and maintenance of the district's hospital system may not become a charge against or obligation of this state. (Acts 59th Leg., R.S., Ch. 310, Sec. 8 (part).)

[Sections 1035.007-1035.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1035.051. BOARD ELECTION; TERM. (a) The district is governed by a board of five directors elected from the district at large.

(b) Directors serve staggered three-year terms.

(c) An election shall be held each year on the May uniform election date under Section 41.001, Election Code, to elect the appropriate number of directors. (Acts 59th Leg., R.S., Ch. 310, Secs. 4(a), (c) (part).)

Sec. 1035.052. NOTICE OF ELECTION. Notice of a directors' election shall be published in a newspaper of general circulation in the district in accordance with Section 4.003, Election Code. (Acts 59th Leg., R.S., Ch. 310, Sec. 4(c) (part).)

Sec. 1035.053. QUALIFICATIONS FOR OFFICE. (a) To be qualified to serve as a director, a person must:

(1) reside in the district; and

(2) be at least 21 years of age.

(b) A person may not serve as a director if the person:

(1) is a district employee; or

(2) was a district employee at any time during the two years preceding the date of the election. (Acts 59th Leg., R.S., Ch. 310, Sec. 4(b).)

Sec. 1035.054. BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF OFFICE. (a) Each director shall qualify by executing a good and sufficient 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 kept in the district's permanent records. (Acts 59th Leg., R.S., Ch. 310, Sec. 5 (part).)

Sec. 1035.055. 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, the remaining directors shall immediately call a special election to fill the vacancies. If the remaining directors do not call the election, a district court, on application of a district voter or taxpayer, may order the directors to hold the election. (Acts 59th Leg., R.S., Ch. 310, Sec. 7(g).)

Sec. 1035.056. OFFICERS. (a) At the board's first regular meeting following the annual election of the directors, the board shall elect a chair, vice chair, and secretary from among its members to serve for a term of one year.

(b) The board may create additional officer positions. (Acts 59th Leg., R.S., Ch. 310, Sec. 7(a).)

Sec. 1035.057. COMPENSATION; EXPENSES. A director serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties on approval of the expenses by the board. (Acts 59th Leg., R.S., Ch. 310, Sec. 7(f).)

Sec. 1035.058. VOTING REQUIREMENT. A concurrence of a majority of the directors is sufficient in any matter relating to district business. (Acts 59th Leg., R.S., Ch. 310, Sec. 7(b) (part).)

Sec. 1035.059. DISTRICT ADMINISTRATOR. (a) The board shall appoint a qualified person as district administrator.

(b) The district administrator serves at the will of the board and is entitled to the compensation determined by the board.

(c) The board shall require that before assuming the duties of district administrator the administrator must execute a bond in an amount set by the board of not less than $5,000 that is:

(1) payable to the district; and

(2) conditioned on the performance of the administrator's duties.

(d) The board may pay for the bond with district money. (Acts 59th Leg., R.S., Ch. 310, Sec. 7(h) (part).)

Sec. 1035.060. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to the limitations prescribed by the board, the district administrator shall:

(1) supervise the work and activities of the district; and

(2) direct the affairs of the district. (Acts 59th Leg., R.S., Ch. 310, Sec. 7(h) (part).)

Sec. 1035.061. RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES. The board may spend district 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 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 59th Leg., R.S., Ch. 310, Secs. 16A(a), (b).)

Sec. 1035.062. CONTINUING EDUCATION; RETRAINING. The board may spend district money for continuing education and retraining of employees. (Acts 59th Leg., R.S., Ch. 310, Sec. 16A(c).)

Sec. 1035.063. DOCTORS AND OTHER EMPLOYEES. The board may contract with doctors or appoint doctors to the medical staff and may employ technicians, nurses, and other employees the board considers necessary for the efficient operation of the district. The board may delegate that authority to the district administrator. (Acts 59th Leg., R.S., Ch. 310, Sec. 7(i).)

[Sections 1035.064-1035.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1035.101. DISTRICT RESPONSIBILITY. The district has full responsibility for providing medical and hospital care for the district's needy inhabitants. (Acts 59th Leg., R.S., Ch. 310, Sec. 2 (part).)

Sec. 1035.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision in DeWitt County, other than the district, may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care in the district. (Acts 59th Leg., R.S., Ch. 310, Sec. 2 (part).)

Sec. 1035.103. MANAGEMENT AND CONTROL. (a) The board has all powers necessary, convenient, or incidental to carry out the purposes for which the district was created.

(b) The board has complete management and control of all district business, including the power to negotiate and contract with any person to purchase or lease land, to construct and equip a hospital system, to operate and maintain a hospital or hospitals, and to negotiate and contract with other political subdivisions of this state or with private individuals, associations, or corporations for those purposes as the board determines necessary or desirable. (Acts 59th Leg., R.S., Ch. 310, Secs. 7(c), (e).)

Sec. 1035.104. HOSPITAL SYSTEM. The district shall provide for:

(1) the establishment of a hospital or hospital system in the district to furnish medical and hospital care to district residents by:

(A) purchasing, constructing, acquiring, repairing, or renovating buildings and improvements for hospital purposes; and

(B) equipping the buildings and improvements for those purposes; and

(2) the administration of the hospital system for hospital purposes. (Acts 59th Leg., R.S., Ch. 310, Sec. 2 (part).)

Sec. 1035.105. PROVISION OF CERTAIN HEALTH SERVICES. The district may provide:

(1) emergency medical services;

(2) home health care services;

(3) long-term health care services;

(4) assisted living services; or

(5) any other appropriate health care services the board determines are necessary to meet the district's needs. (Acts 59th Leg., R.S., Ch. 310, Sec. 7A.)

Sec. 1035.106. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property, real, personal, or mixed, located in district territory, if the interest is necessary 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 petition for review. (Acts 59th Leg., R.S., Ch. 310, Sec. 11.)

Sec. 1035.107. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district. (Acts 59th Leg., R.S., Ch. 310, Sec. 16.)

Sec. 1035.108. CONTRACT WITH NIXON HOSPITAL DISTRICT. The district, through the board, may contract with the Nixon Hospital District of Gonzales and Wilson Counties, Texas, for the district to lease, manage, or operate a health care facility located in the Nixon Hospital District. (Acts 59th Leg., R.S., Ch. 310, Sec. 7(d).)

Sec. 1035.109. PAYMENT FOR TREATMENT; PROCEDURES. (a) Each year, the board may set criteria for determining residency, eligibility for service, and the type of services available.

(b) When a patient who resides in the district is admitted to a district facility, the district administrator may have an inquiry made into the financial circumstances of:

(1) the patient; and

(2) a relative of the patient who is legally responsible for the patient's support.

(c) The district without charge shall provide to a patient who resides in the district the care and treatment that the patient or a relative of the patient who is legally responsible for the patient's support cannot pay.

(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 individual's ability to pay.

(e) The district administrator may collect money owed to the district from the patient's estate or from that of a relative legally responsible for the patient's support in the manner provided by law for collection of expenses of the last illness of a deceased person.

(f) If there is a dispute relating to an individual'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 59th Leg., R.S., Ch. 310, Secs. 13A(a), (b) (part), (c), (d), (e), (f).)

Sec. 1035.110. 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 DeWitt County or the police chief of any municipality in the district to reimburse the district for the district's care and treatment of a person who is confined in a jail facility of DeWitt County or the municipality and is not a district resident. A prisoner in the DeWitt County jail or in a penal or police facility located in the district is not considered a district resident unless the person would meet the qualifications for residency notwithstanding the incarceration, its duration, or the facts surrounding the incarceration.

(c) The board may contract with the state or federal government for that government to reimburse the district for treatment of a sick or injured person. (Acts 59th Leg., R.S., Ch. 310, Sec. 13B.)

Sec. 1035.111. AUTHORITY TO SUE AND BE SUED. As a governmental agency, the district may sue and be sued in its own name in any court of this state. (Acts 59th Leg., R.S., Ch. 310, Sec. 15 (part).)

[Sections 1035.112-1035.150 reserved for expansion]

SUBCHAPTER D. CHANGE IN BOUNDARIES

Sec. 1035.151. EXPANSION OF TERRITORY; BOARD ORDER. (a) The board may order an election on the question of:

(1) expanding the district's boundaries to include all of the territory in DeWitt County that is not included in the Yoakum Hospital District;

(2) the assumption by the additional territory of a proportionate share of district debts; and

(3) the imposition of taxes in the territory to be added to the district.

(b) Subsequent elections may be held on the same issue. (Acts 59th Leg., R.S., Ch. 310, Secs. 1B(a), (h) (part).)

Sec. 1035.152. ANNEXATION OF TERRITORY; PETITION. (a) The district may annex one or more tracts of territory in accordance with the method provided by this subchapter.

(b) A registered voter who resides in a defined territory may file a petition with the board requesting inclusion of the territory in the district. The territory:

(1) must be contiguous to the district's boundaries or to territory to be annexed under this subchapter; and

(2) may not be located in the boundaries of another district or a district for which the legislature has enacted enabling legislation.

(c) The petition must:

(1) describe the territory to be annexed; and

(2) be signed by the lesser of:

(A) at least 100 registered voters who reside in that territory; or

(B) a majority of the registered voters.

(d) The board may act simultaneously on several petitions for annexation. If more than one petition requests annexation of the same territory, the board must act on the first petition filed.

(e) The board may not amend a petition. (Acts 59th Leg., R.S., Ch. 310, Secs. 1C(a), (b), (c) (part), (d) (part).)

Sec. 1035.153. APPROVAL OR DENIAL OF ANNEXATION PETITION. (a) If the board finds that annexation of territory into the district is in the district's best interest, the board shall, not later than the 90th day after the date the finding is made:

(1) approve the petition filed under Section 1035.152; and

(2) order an election on the question of annexing the territory.

(b) If the board finds that annexation is not in the district's best interest, the board shall deny the petition filed under Section 1035.152. (Acts 59th Leg., R.S., Ch. 310, Sec. 1C(d) (part).)

Sec. 1035.154. ELECTION ORDER. (a) The order calling an election under this subchapter 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.

(b) The board shall order an annexation election required by this subchapter so that the territory included in each approved annexation petition is allowed to vote separately on inclusion in the district. (Acts 59th Leg., R.S., Ch. 310, Secs. 1B(b), 1C(c) (part), (e).)

Sec. 1035.155. ELECTION DATE. (a) The election in the district and the election in the territory to be added or annexed must be held on the same day.

(b) Section 41.001(a), Election Code, does not apply to an election ordered under this section. (Acts 59th Leg., R.S., Ch. 310, Secs. 1B(d) (part), (g), 1C(g) (part), (j).)

Sec. 1035.156. 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 and the area to be added or annexed.

(b) The first publication of the notice must appear at least 30 days before the date set for the election. (Acts 59th Leg., R.S., Ch. 310, Secs. 1B(c), 1C(f).)

Sec. 1035.157. BALLOT. (a) The ballot for an expansion election ordered under Section 1035.151 must be printed to permit voting for or against the proposition: "Expanding the DeWitt Medical District to include all of DeWitt County except that territory included in Yoakum Hospital District, the assumption by the additional territory of its proportionate share of the district's outstanding debts, and the imposition of a tax not to exceed 75 cents on each $100 of valuation of all taxable property in the expanded area of the district."

(b) The ballot for an annexation election ordered under Section 1035.153 must be printed to permit voting for or against the proposition: "Adding (description of territory to be added) to the DeWitt Medical District, the assumption by the additional territory of its proportionate share of the district's outstanding debts, and the imposition of a tax not to exceed 75 cents on each $100 of valuation of all taxable property in the annexed area of the district." (Acts 59th Leg., R.S., Ch. 310, Secs. 1B(e), 1C(h).)

Sec. 1035.158. ELECTION RESULTS. (a) The district boundaries may be expanded or territory may be annexed to the district under this subchapter only if the expansion or annexation, the assumption of debt, and the imposition of taxes are approved by a majority of the voters voting at:

(1) an election held in the district; and

(2) a separate election held in the territory to be added.

(b) If the election results for an election under this subchapter are not favorable to the proposition to expand the district or to annex the territory, subsequent elections may be held on the same issue. (Acts 59th Leg., R.S., Ch. 310, Secs. 1B(f), (h), 1C(i), (k).)

[Sections 1035.159-1035.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 1035.201. DEPOSITORY. (a) The board by resolution shall designate a bank in the county as the district's depository. A designated bank serves for two years and until a successor is designated.

(b) All district money shall be secured in the manner provided for securing county funds. (Acts 59th Leg., R.S., Ch. 310, Sec. 10.)

Sec. 1035.202. 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 of the loan.

(b) To secure a loan, the board may pledge:

(1) district revenue that is not pledged to pay the district's bonded indebtedness;

(2) a district tax to be imposed by the district during the 12-month period following the date of the pledge that is not pledged to pay the principal of or interest on district bonds; or

(3) district bonds that have been authorized but not sold.

(c) A loan for which taxes or bonds are pledged must mature not later than the anniversary of the date the loan is made. A loan for which district revenue is pledged must mature not later than the 10th anniversary of the date the loan is made. (Acts 59th Leg., R.S., Ch. 310, Sec. 12A.)

[Sections 1035.203-1035.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec. 1035.251. GENERAL OBLIGATION BONDS. The board may issue and sell general obligation bonds authorized by an election in the name and on the faith and credit of the district for any purpose relating to:

(1) the purchase, construction, acquisition, repair, or renovation of buildings or improvements; and

(2) equipping buildings or improvements for hospital purposes. (Acts 59th Leg., R.S., Ch. 310, Sec. 12(a) (part).)

Sec. 1035.252. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued under Section 1035.251, an ad valorem tax shall be imposed at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature.

(b) The tax required by this section together with any other ad valorem tax imposed for the district may not in any year exceed 75 cents on each $100 valuation of all taxable property in the district. (Acts 59th Leg., R.S., Ch. 310, Sec. 12(a) (part).)

Sec. 1035.253. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting in an election called for that purpose and ordered by the board on its own motion.

(b) The election shall be conducted in accordance with Chapter 1251, Government Code. (Acts 59th Leg., R.S., Ch. 310, Secs. 6 (part), 12(c).)

Sec. 1035.254. EXECUTION OF BONDS. (a) The board president shall execute district bonds in the district's name.

(b) The board secretary shall countersign the bonds. (Acts 59th Leg., R.S., Ch. 310, Sec. 12(b) (part).)

Sec. 1035.255. INVESTMENT OF BOND PROCEEDS. Until the proceeds from the sale of district bonds are needed to carry out the bond purpose, the proceeds may be:

(1) invested in direct obligations of the United States; or

(2) placed on time deposit. (Acts 59th Leg., R.S., Ch. 310, Sec. 12(b) (part).)

Sec. 1035.256. REVENUE BONDS. (a) The board may issue and sell revenue bonds in the name and on the faith and credit of the district to purchase, construct, acquire, repair, renovate, or equip buildings or improvements for district purposes.

(b) The bonds must be payable from and secured by a pledge of all or part of the revenue derived from the operation of the district's hospital system.

(c) The bonds may be additionally secured by a mortgage or deed of trust lien on all or part of district property.

(d) The bonds must be issued in the manner provided by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for the issuance of revenue bonds by a county hospital authority. (Acts 59th Leg., R.S., Ch. 310, Sec. 12(e).)

[Sections 1035.257-1035.300 reserved for expansion]

SUBCHAPTER G. TAXES

Sec. 1035.301. IMPOSITION OF AD VALOREM TAX. (a) The board shall impose a tax on all property in the district subject to district taxation.

(b) The board shall impose the tax to:

(1) meet the requirements of district bonds;

(2) provide for the district's maintenance and operating expenses;

(3) make improvements and additions to the district's hospitals or hospital system; and

(4) acquire necessary sites by gift, purchase, lease, or condemnation. (Acts 59th Leg., R.S., Ch. 310, Sec. 8 (part).)

Sec. 1035.302. TAX RATE. The board shall impose the tax at a rate not to exceed 75 cents on each $100 valuation of all taxable property in the district. (Acts 59th Leg., R.S., Ch. 310, Sec. 8 (part).)

Sec. 1035.303. TAX ASSESSOR-COLLECTOR. The board may:

(1) appoint a tax assessor-collector for the district; or

(2) contract for the assessment and collection of taxes as provided by the Tax Code. (Acts 59th Leg., R.S., Ch. 310, Sec. 9 (part).) CHAPTER 1056. MARTIN COUNTY HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1056.001. DEFINITIONS Sec. 1056.002. AUTHORITY FOR OPERATION Sec. 1056.003. DISTRICT TERRITORY

[Sections 1056.004-1056.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1056.051. BOARD APPOINTMENT; TERM Sec. 1056.052. BOARD VACANCY Sec. 1056.053. NONATTENDANCE Sec. 1056.054. OFFICERS Sec. 1056.055. COMPENSATION; EXPENSES Sec. 1056.056. QUORUM Sec. 1056.057. RECORDS OF PROCEEDINGS Sec. 1056.058. DISTRICT ADMINISTRATOR Sec. 1056.059. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1056.060. ASSISTANT ADMINISTRATOR Sec. 1056.061. LEGAL COUNSEL Sec. 1056.062. EMPLOYEES Sec. 1056.063. RETIREMENT PROGRAM Sec. 1056.064. SEAL

[Sections 1056.065-1056.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1056.101. DISTRICT RESPONSIBILITY Sec. 1056.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION Sec. 1056.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1056.104. RULES Sec. 1056.105. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1056.106. EMINENT DOMAIN Sec. 1056.107. GIFTS AND ENDOWMENTS Sec. 1056.108. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT Sec. 1056.109. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1056.110. AUTHORITY TO SUE AND BE SUED

[Sections 1056.111-1056.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1056.151. BUDGET Sec. 1056.152. ANNUAL AUDIT Sec. 1056.153. FINANCIAL REPORT Sec. 1056.154. DEPOSITORY

[Sections 1056.155-1056.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1056.201. BONDS Sec. 1056.202. TAX TO PAY BONDS Sec. 1056.203. BOND ELECTION Sec. 1056.204. REFUNDING BONDS Sec. 1056.205. EXECUTION OF BONDS

[Sections 1056.206-1056.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1056.251. IMPOSITION OF AD VALOREM TAX Sec. 1056.252. TAX RATE Sec. 1056.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1056. MARTIN COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1056.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of hospital managers of the district.

(2) "District" means the Martin County Hospital District.

(3) "Manager" means a member of the board. (New.)

Sec. 1056.002. AUTHORITY FOR OPERATION. The Martin County Hospital District operates in accordance with and has the powers and responsibilities provided by Section 9, Article IX, Texas Constitution. (Acts 60th Leg., R.S., Ch. 674, Sec. 1 (part).)

Sec. 1056.003. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Martin County. (Acts 60th Leg., R.S., Ch. 674, Sec. 1 (part).)

[Sections 1056.004-1056.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1056.051. BOARD APPOINTMENT; TERM. (a) The board consists of six managers appointed by the Martin County Commissioners Court.

(b) Managers serve staggered two-year terms, with three managers appointed each year. (Acts 60th Leg., R.S., Ch. 674, Sec. 3 (part).)

Sec. 1056.052. BOARD VACANCY. If a vacancy occurs in the office of manager, the remaining managers shall appoint a manager for the unexpired term. (Acts 60th Leg., R.S., Ch. 674, Sec. 3 (part).)

Sec. 1056.053. NONATTENDANCE. The failure of a manager to attend three consecutive regular board meetings causes a vacancy in the manager's office unless the absence is excused by formal action of the board. (Acts 60th Leg., R.S., Ch. 674, Sec. 3 (part).)

Sec. 1056.054. OFFICERS. (a) The board shall select from among the managers a presiding officer, who shall preside over the board.

(b) A presiding officer pro tem shall preside in the absence of the presiding officer.

(c) The district administrator or any manager may be appointed secretary. (Acts 60th Leg., R.S., Ch. 674, Sec. 3 (part).)

Sec. 1056.055. COMPENSATION; EXPENSES. A manager serves without compensation but may be reimbursed for actual and necessary travel and other expenses incurred in the performance of the manager's duties as determined by the board. (Acts 60th Leg., R.S., Ch. 674, Sec. 3 (part).)

Sec. 1056.056. QUORUM. A majority of the board present shall constitute a quorum for the transaction of business. (Acts 60th Leg., R.S., Ch. 674, Sec. 3 (part).)

Sec. 1056.057. RECORDS OF PROCEEDINGS. (a) The board shall require the secretary to keep suitable records of all proceedings of each board meeting.

(b) After each meeting:

(1) the manager presiding at the meeting shall read and sign the record; and

(2) the secretary shall attest the record. (Acts 60th Leg., R.S., Ch. 674, Sec. 3 (part).)

Sec. 1056.058. DISTRICT ADMINISTRATOR. (a) The board shall appoint a general manager qualified by training and experience as the district administrator.

(b) The district administrator is entitled to receive the compensation determined by the board.

(c) The board may remove the district administrator at any time.

(d) Before assuming the duties of district administrator, the administrator must execute a bond payable to the district in an amount of not less than $10,000 that:

(1) is conditioned on the administrator performing well and faithfully the administrator's required duties; and

(2) contains other conditions the board may require. (Acts 60th Leg., R.S., Ch. 674, Sec. 3 (part).)

Sec. 1056.059. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to the limitations prescribed by the board, the district administrator shall:

(1) perform the duties required by the board;

(2) supervise the work and activities of the district; and

(3) direct the affairs of the district. (Acts 60th Leg., R.S., Ch. 674, Sec. 3 (part).)

Sec. 1056.060. ASSISTANT ADMINISTRATOR. (a) The board may designate an assistant administrator to discharge a duty or function of the district administrator in the event of the administrator's incapacity, absence, or inability to discharge the duty or function.

(b) The assistant administrator shall post the bond required by board order.

(c) The assistant administrator is subject to the limitations prescribed by board order. (Acts 60th Leg., R.S., Ch. 674, Sec. 5.)

Sec. 1056.061. LEGAL COUNSEL. The board may employ legal counsel to represent the district in all legal matters when the board considers the employment advisable. (Acts 60th Leg., R.S., Ch. 674, Sec. 10.)

Sec. 1056.062. EMPLOYEES. The board shall authorize the district administrator to employ any employees as considered advisable for the efficient operation of the hospital or hospital system. (Acts 60th Leg., R.S., Ch. 674, Sec. 3 (part).)

Sec. 1056.063. RETIREMENT PROGRAM. The board may:

(1) contract with this state or the federal government as necessary to establish or continue a retirement program for the benefit of district employees; or

(2) establish other retirement programs for the benefit of district employees as it considers necessary and advisable. (Acts 60th Leg., R.S., Ch. 674, Sec. 3 (part).)

Sec. 1056.064. SEAL. The board shall have a seal engraved with the district's name to authenticate the acts of the board. The secretary of the board shall keep the seal. (Acts 60th Leg., R.S., Ch. 674, Sec. 3 (part).)

[Sections 1056.065-1056.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1056.101. DISTRICT RESPONSIBILITY. (a) The district shall admit patients to the hospital who are:

(1) district inhabitants; and

(2) able to pay for medical and hospital care.

(b) The district has full responsibility for providing medical and hospital care for:

(1) eligible needy district inhabitants who are not able to pay all or a part of the cost of the care; and

(2) eligible needy and indigent district residents. (Acts 60th Leg., R.S., Ch. 674, Secs. 2 (part), 11 (part).)

Sec. 1056.102. RESTRICTION ON COUNTY OR MUNICIPALITY TAXATION. Martin County or a municipality in the county may not impose a tax for hospital purposes. (Acts 60th Leg., R.S., Ch. 674, Secs. 1 (part), 11 (part).)

Sec. 1056.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the hospital or hospital system. (Acts 60th Leg., R.S., Ch. 674, Sec. 3 (part).)

Sec. 1056.104. RULES. The board may adopt rules for the operation of the hospital or hospital system, including bylaws governing board proceedings. (Acts 60th Leg., R.S., Ch. 674, Sec. 3 (part).)

Sec. 1056.105. 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) The district shall pay the salaries and expenses necessarily incurred by the board or by an officer or agent of the board in performing a duty prescribed or required by this section or Section 1056.152.

(c) An officer, employee, or agent of the board shall perform any function or service prescribed by the board under this section or Section 1056.152. (Acts 60th Leg., R.S., Ch. 674, Sec. 4 (part).)

Sec. 1056.106. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property, real, personal, or mixed, located in district territory if the interest is necessary or convenient for the district to exercise a right, power, privilege, or function conferred on the district by this chapter.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, except the district is not required to deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code.

(c) In a condemnation proceeding brought by the district, the district is not required to:

(1) pay in advance or provide a bond for the issuance of a temporary restraining order or a temporary injunction; or

(2) provide a bond for costs or a supersedeas bond on an appeal or petition for review. (Acts 60th Leg., R.S., Ch. 674, Sec. 7.)

Sec. 1056.107. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district. (Acts 60th Leg., R.S., Ch. 674, Sec. 16.)

Sec. 1056.108. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT. The board may contract with:

(1) any county for the care and treatment of a sick or injured person of that county; and

(2) this state or a federal agency for the care and treatment of a sick or injured person for whom the state or agency is responsible. (Acts 60th Leg., R.S., Ch. 674, Sec. 3 (part).)

Sec. 1056.109. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a patient from Martin County is admitted to a district facility, the district administrator shall have an inquiry made into the circumstances of:

(1) the patient; and

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

(b) If the district administrator determines that the patient or those relatives cannot pay all or part of the costs of the care and treatment in the hospital, the amount of the costs that cannot be paid becomes a charge against the district.

(c) If the district administrator determines that the patient or those relatives are liable for all or part of the costs of the patient's care and treatment, the patient or those relatives shall be ordered to pay to the district a specified amount each week for the patient's care. The amount ordered must be proportionate to the person's financial ability and may not exceed the usual and customary charges for services rendered.

(d) The district administrator may collect the amount from the estate of the patient, or the patient's relatives who are legally liable for the patient's support, in the manner provided by law for the collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt in the mind of the district administrator, the county court shall hold a hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue an appropriate order.

(f) Either party to the dispute may appeal the order to the district court. (Acts 60th Leg., R.S., Ch. 674, Sec. 12.)

Sec. 1056.110. AUTHORITY TO SUE AND BE SUED. The board may sue and be sued. (Acts 60th Leg., R.S., Ch. 674, Sec. 3 (part).)

[Sections 1056.111-1056.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1056.151. BUDGET. (a) The district administrator, under the direction of the board, shall prepare an annual budget.

(b) The budget must be approved by the board. (Acts 60th Leg., R.S., Ch. 674, Sec. 6 (part).)

Sec. 1056.152. ANNUAL AUDIT. As soon as practicable after the close of each fiscal year, the board shall have an audit made of the district's books and records for the fiscal year by an independent public accountant. (Acts 60th Leg., R.S., Ch. 674, Sec. 4 (part).)

Sec. 1056.153. FINANCIAL REPORT. (a) As soon as practicable after the close of each fiscal year, the district administrator shall prepare a report that includes:

(1) a complete sworn statement of:

(A) all money and choses in action received by the administrator; and

(B) how the money and choses in action were disbursed or otherwise disposed; and

(2) the details of district operation during the preceding fiscal year.

(b) The district administrator shall make the report to:

(1) the board; and

(2) the Martin County Commissioners Court. (Acts 60th Leg., R.S., Ch. 674, Sec. 6 (part).)

Sec. 1056.154. DEPOSITORY. (a) Every two years, the board shall select one or more depositories for the district in the manner provided for securing county funds.

(b) All income received by the district shall be deposited with a district depository. (Acts 60th Leg., R.S., Ch. 674, Secs. 8, 13 (part).)

[Sections 1056.155-1056.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1056.201. BONDS. The board may issue and sell bonds as district obligations for any purpose relating to:

(1) the purchase, construction, acquisition, repair, or renovation of buildings or improvements; and

(2) equipping buildings and improvements for hospital purposes. (Acts 60th Leg., R.S., Ch. 674, Sec. 14 (part).)

Sec. 1056.202. TAX TO PAY BONDS. (a) An ad valorem tax shall be imposed at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on bonds issued under Section 1056.201 as the bonds mature.

(b) The tax required by this section together with any other ad valorem tax imposed for the district may not in any year exceed 75 cents on each $100 valuation of taxable property in the district. (Acts 60th Leg., R.S., Ch. 674, Sec. 14 (part).)

Sec. 1056.203. BOND ELECTION. (a) The district may issue bonds only if the bonds are authorized by a majority of the district voters voting at an election held in accordance with the provisions of Chapter 1251, Government Code, relating to county bonds.

(b) The board shall call the election. (Acts 60th Leg., R.S., Ch. 674, Sec. 14 (part).)

Sec. 1056.204. REFUNDING BONDS. (a) Refunding bonds may be issued without an election and in the manner provided by this subchapter to refund outstanding bonds issued or assumed by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bond applied to the payment of the outstanding bonds; or

(2) exchanged wholly or partly for not less than a similar amount of outstanding bonds and the matured but unpaid interest on the bonds. (Acts 60th Leg., R.S., Ch. 674, Sec. 14 (part).)

Sec. 1056.205. EXECUTION OF BONDS. (a) The board's presiding officer shall execute district bonds in the district's name.

(b) The board secretary shall countersign the bonds. (Acts 60th Leg., R.S., Ch. 674, Sec. 14 (part).)

[Sections 1056.206-1056.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1056.251. IMPOSITION OF AD VALOREM TAX. (a) The board shall impose a tax on all property in the district subject to district taxation.

(b) The board shall impose the tax to:

(1) pay the interest on and create a sinking fund for bonds assumed or issued by the district for hospital purposes as provided by this chapter;

(2) provide for the operation and maintenance of the hospital or hospital system; and

(3) make improvements and additions to the hospital system and acquire necessary sites for improvements and additions by purchase, lease, or condemnation. (Acts 60th Leg., R.S., Ch. 674, Sec. 13 (part).)

Sec. 1056.252. TAX RATE. The board shall impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district. (Acts 60th Leg., R.S., Ch. 674, Sec. 13 (part).)

Sec. 1056.253. TAX ASSESSOR-COLLECTOR. (a) Except as provided by Subsection (b), the Martin County tax assessor-collector shall collect the taxes imposed on all property subject to district taxation.

(b) The district may appoint its own tax assessor-collector. (Acts 60th Leg., R.S., Ch. 674, Sec. 13 (part).) CHAPTER 1061. MIDLAND COUNTY HOSPITAL DISTRICT OF MIDLAND COUNTY, TEXAS SUBCHAPTER A. GENERAL PROVISIONS Sec. 1061.001. DEFINITIONS Sec. 1061.002. AUTHORITY FOR CREATION Sec. 1061.003. ESSENTIAL PUBLIC FUNCTION Sec. 1061.004. DISTRICT TERRITORY Sec. 1061.005. CORRECTION OF INVALID PROCEDURES Sec. 1061.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1061.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1061.008-1061.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1061.051. BOARD ELECTION; TERM Sec. 1061.052. ALTERNATIVE DIRECTOR ELECTION Sec. 1061.053. NOTICE OF ELECTION Sec. 1061.054. QUALIFICATIONS FOR OFFICE Sec. 1061.055. BOARD VACANCY Sec. 1061.056. OFFICERS Sec. 1061.057. COMPENSATION; EXPENSES Sec. 1061.058. VOTING REQUIREMENT Sec. 1061.059. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR Sec. 1061.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1061.061. APPOINTMENT AND DISMISSAL OF STAFF AND

EMPLOYEES; CONTRACTS Sec. 1061.062. RECRUITMENT OF MEDICAL STAFF AND

EMPLOYEES Sec. 1061.063. SENIORITY; RETIREMENT BENEFITS

[Sections 1061.064-1061.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1061.101. DISTRICT RESPONSIBILITY Sec. 1061.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1061.103. MANAGEMENT, CONTROL, AND

ADMINISTRATION; GENERAL BOARD POWER Sec. 1061.104. HOSPITAL SYSTEM Sec. 1061.105. RULES Sec. 1061.106. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1061.107. AMBULANCE OR MOBILE EMERGENCY SERVICE Sec. 1061.108. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1061.109. EMINENT DOMAIN Sec. 1061.110. COST OF RELOCATING OR ALTERING PROPERTY Sec. 1061.111. GIFTS AND ENDOWMENTS Sec. 1061.112. CONSTRUCTION OR PURCHASE CONTRACTS Sec. 1061.113. MANAGEMENT AGREEMENT; LIABILITY Sec. 1061.114. CONTRACTS FOR HOSPITALIZATION,

TREATMENT, AND TRAINING Sec. 1061.115. CONTRACT FOR INVESTIGATORY OR OTHER

SERVICES Sec. 1061.116. CONTRACT FOR FACILITIES TO SUPPORT

SURGICAL RESIDENCY PROGRAM Sec. 1061.117. PROVISION OF SERVICES OUTSIDE DISTRICT Sec. 1061.118. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1061.119. REIMBURSEMENT FOR SERVICES TO

NONRESIDENTS Sec. 1061.120. AUTHORITY TO SUE AND BE SUED

[Sections 1061.121-1061.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1061.151. BUDGET Sec. 1061.152. NOTICE; HEARING; ADOPTION OF BUDGET Sec. 1061.153. AMENDMENTS TO BUDGET Sec. 1061.154. RESTRICTION ON EXPENDITURES Sec. 1061.155. FISCAL YEAR Sec. 1061.156. AUDIT Sec. 1061.157. INSPECTION OF AUDIT AND DISTRICT

RECORDS Sec. 1061.158. FINANCIAL REPORT Sec. 1061.159. DEPOSITORY Sec. 1061.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1061.161-1061.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1061.201. GENERAL OBLIGATION BONDS Sec. 1061.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1061.203. BOND ELECTION Sec. 1061.204. REVENUE BONDS Sec. 1061.205. PAYMENT OF REVENUE BONDS; SECURITY Sec. 1061.206. USE OF REVENUE BOND PROCEEDS Sec. 1061.207. CHARGE FOR OCCUPANCY OR USE OF HOSPITAL

FACILITY Sec. 1061.208. REFUNDING BONDS Sec. 1061.209. BONDS EXEMPT FROM TAXATION

[Sections 1061.210-1061.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1061.251. IMPOSITION OF AD VALOREM TAX Sec. 1061.252. TAX RATE Sec. 1061.253. USE OF AD VALOREM TAXES FOR OPERATION

AND MAINTENANCE EXPENSES Sec. 1061.254. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR Sec. 1061.255. ASSESSMENT AND COLLECTION BY DISTRICT

TAX ASSESSOR-COLLECTOR Sec. 1061.256. ASSESSMENT AND COLLECTION BY TAX

POLITICAL SUBDIVISION

CHAPTER 1061. MIDLAND COUNTY HOSPITAL DISTRICT OF

MIDLAND COUNTY, TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1061.001. 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 Midland County Hospital District of Midland County, Texas. (New.)

Sec. 1061.002. AUTHORITY FOR CREATION. The Midland County Hospital District of Midland County, Texas, is created under the authority of Section 9, Article IX, Texas Constitution. (Acts 65th Leg., R.S., Ch. 112, Sec. 1.)

Sec. 1061.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 65th Leg., R.S., Ch. 112, Sec. 23 (part).)

Sec. 1061.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Midland County, Texas, as the boundaries existed on May 4, 1977. (Acts 65th Leg., R.S., Ch. 112, Sec. 2.)

Sec. 1061.005. 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 65th Leg., R.S., Ch. 112, Sec. 24 (part).)

Sec. 1061.006. 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 65th Leg., R.S., Ch. 112, Sec. 22 (part).)

Sec. 1061.007. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 65th Leg., R.S., Ch. 112, Sec. 22 (part).)

[Sections 1061.008-1061.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1061.051. BOARD ELECTION; TERM. (a) The board is governed by a board of seven directors elected from single-member districts.

(b) Directors serve staggered four-year terms.

(c) An election of directors shall be held in each even-numbered year on the November uniform election date under Section 41.001, Election Code. (Acts 65th Leg., R.S., Ch. 112, Secs. 5(a) (part), (g) as added Acts 72nd Leg., 3rd C.S., Ch. 4.)

Sec. 1061.052. ALTERNATIVE DIRECTOR ELECTION. (a) The board on its own motion may order that not fewer than 50 percent of the directors be elected from single-member districts with the remaining directors elected from the district at large.

(b) Before entering an order under Subsection (a), the board must:

(1) hold a public hearing at which registered district voters may comment on whether they favor electing directors in the manner proposed by the board; and

(2) publish notice of the hearing in a newspaper with general circulation in the district not later than the seventh day before the date of the hearing.

(c) An order adopted under Subsection (a) must be entered not later than the 120th day before the date of the first election at which directors are elected in the manner provided by the order. Not later than the 90th day before the date of the first election at which directors are elected in the manner provided by the order, the board shall:

(1) divide the district into the appropriate number of single-member districts, based on the number of directors to be elected from the single-member districts and number each single-member district; and

(2) determine by lot the order in which the positions will be filled.

(d) The single-member districts must be:

(1) compact and contiguous; and

(2) as nearly as practicable of equal population according to the most recent federal census.

(e) If the data from the most recent federal census indicates that the population of the most populous single-member district exceeds the population of the least populous single-member district by more than 10 percent, the board shall redivide the hospital district into the appropriate number of single-member districts not later than the 90th day before the date of the first regular election at which directors may officially recognize and act on the census. Redivision of the district must be in the manner provided for division of the district under this section.

(f) If the district adopts a redistricting plan under this section, the board may provide in the plan for the directors in office to serve at large for the remainder of their terms. The single-member district and at-large positions provided by the district's plan shall be filled as the staggered terms of incumbent directors expire. (Acts 65th Leg., R.S., Ch. 112, Secs. 5(a) (part), (b) (part).)

Sec. 1061.053. 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 Midland County. (Acts 65th Leg., R.S., Ch. 112, Sec. 5(f) (part).)

Sec. 1061.054. QUALIFICATIONS FOR OFFICE. (a) A person may not be elected or appointed as a director unless the person is:

(1) a resident of the district; and

(2) more than 18 years of age when elected or appointed.

(b) A person who is elected from a single-member district or is appointed to fill a vacancy for a single-member district must reside in that single-member district. (Acts 65th Leg., R.S., Ch. 112, Secs. 5(b) (part), (d).)

Sec. 1061.055. BOARD VACANCY. (a) If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term.

(b) If the number of directors is reduced to fewer than four, 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, shall order the election. (Acts 65th Leg., R.S., Ch. 112, Sec. 5(e) (part).)

Sec. 1061.056. OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

(c) The board by vote shall fill a vacancy in a board office for the unexpired term. (Acts 65th Leg., R.S., Ch. 112, Sec. 5(e) (part).)

Sec. 1061.057. 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 65th Leg., R.S., Ch. 112, Sec. 5(g).)

Sec. 1061.058. VOTING REQUIREMENT. A concurrence of four directors is sufficient in any matter relating to district business. (Acts 65th Leg., R.S., Ch. 112, Sec. 5(e) (part).)

Sec. 1061.059. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The board may appoint a qualified person as district administrator.

(b) The board may appoint assistant administrators.

(c) The district administrator and any assistant administrator serve at the will of the board and are entitled to the compensation determined by the board.

(d) On assuming the duties of district administrator, the administrator shall execute a bond payable to the district in an amount set by the board of not less than $10,000 that:

(1) is conditioned on the administrator performing the administrator's duties; and

(2) contains other conditions the board may require. (Acts 65th Leg., R.S., Ch. 112, Sec. 6 (part).)

Sec. 1061.060. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to the limitations prescribed by the board, the district administrator shall:

(1) supervise the work and activities of the district; and

(2) direct the affairs of the district. (Acts 65th Leg., R.S., Ch. 112, Sec. 6 (part).)

Sec. 1061.061. APPOINTMENT AND DISMISSAL OF STAFF AND EMPLOYEES; CONTRACTS. (a) The board may appoint to or dismiss from the staff any doctors the board considers necessary for the efficient operation of the district and may make temporary appointments as necessary.

(b) The district may employ fiscal agents, accountants, architects, and attorneys the board considers proper.

(c) The board may delegate to the district administrator the authority to hire or contract with technicians, nurses, and other persons or district employees as the administrator considers advisable. (Acts 65th Leg., R.S., Ch. 112, Secs. 6 (part), 18.)

Sec. 1061.062. RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES. The board may spend district money, enter into agreements, and take other necessary action to recruit or otherwise obtain physicians and other personnel for the district's medical staff or for employment with the hospital or hospital system, including medical facilities or other health facilities owned or operated by the district. The actions may include:

(1) advertising and marketing;

(2) paying recruitment expenses;

(3) paying travel and relocation expenses; and

(4) providing a subsidy or scholarship. (Acts 65th Leg., R.S., Ch. 112, Sec. 6 (part).)

Sec. 1061.063. SENIORITY; RETIREMENT BENEFITS. (a) The board may:

(1) adopt rules relating to the seniority of district employees; and

(2) establish or administer a retirement program or elect to participate in any statewide retirement program in which the district is eligible to participate.

(b) The district may give effect to previous years of service for district employees continuously employed in the operation or management of the hospital facilities acquired from Midland Memorial Foundation when the district was created. (Acts 65th Leg., R.S., Ch. 112, Sec. 6 (part).)

[Sections 1061.064-1061.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1061.101. DISTRICT RESPONSIBILITY. (a) The district has full responsibility for providing hospital care for the district's indigent residents.

(b) The district shall provide all necessary hospital and medical care for the district's needy inhabitants. (Acts 65th Leg., R.S., Ch. 112, Secs. 3(a) (part), 21 (part).)

Sec. 1061.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision of this state, other than the district, may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care in the district. (Acts 65th Leg., R.S., Ch. 112, Secs. 3(a) (part), 21 (part).)

Sec. 1061.103. MANAGEMENT, CONTROL, AND ADMINISTRATION; GENERAL BOARD POWER. (a) The board shall manage, control, and administer the district's hospital or hospital system and the district's money and resources.

(b) The board may exercise any power provided by this chapter unless the board enters into a management contract under Section 1061.113 that provides the power is exercised in accordance with the contract. (Acts 65th Leg., R.S., Ch. 112, Sec. 6 (part).)

Sec. 1061.104. HOSPITAL SYSTEM. (a) The district has the responsibility to establish a hospital or hospital system, including medical facilities and other health facilities, within its boundaries to provide hospital and medical care to the district's residents.

(b) The district shall provide for:

(1) the establishment of a hospital system by:

(A) purchasing, constructing, acquiring, repairing, or renovating buildings and equipment; and

(B) equipping the buildings; and

(2) the administration of buildings and equipment for hospital and medical care purposes.

(c) The hospital system may include:

(1) facilities for domiciliary care of the sick, injured, or geriatric;

(2) outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses' domiciliaries;

(6) training centers;

(7) training facilities for doctors and nurses and for other health care disciplines;

(8) blood banks;

(9) community mental health centers;

(10) research centers or laboratories;

(11) parking; and

(12) any other facilities the board considers necessary for a hospital or hospital system and a medical facility or other health facility included in the hospital or hospital system. (Acts 65th Leg., R.S., Ch. 112, Secs. 3(a) (part), (b) (part), 11(a) (part).)

Sec. 1061.105. RULES. The board may adopt rules governing the operation of the hospital, the hospital system, and the district's staff and employees. (Acts 65th Leg., R.S., Ch. 112, Sec. 6 (part).)

Sec. 1061.106. 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) The board by resolution may delegate a power described by Subsection (a) to:

(1) the Midland Memorial Foundation or its successors; or

(2) a person who enters into an operating or management agreement with the district to exercise the power. (Acts 65th Leg., R.S., Ch. 112, Sec. 12 (part).)

Sec. 1061.107. AMBULANCE OR MOBILE EMERGENCY SERVICE. The district may operate or provide for the operation of an ambulance or mobile emergency service. (Acts 65th Leg., R.S., Ch. 112, Sec. 6 (part).)

Sec. 1061.108. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine the type, number, and location of buildings and property required to maintain an adequate hospital system.

(b) The board may lease property, including facilities and equipment, and may enter into a lease of all or part of the district's buildings or other facilities with any person on terms considered to be in the best interest of the district. The term of the lease may not exceed 40 years.

(c) The district may acquire equipment for use in the district's hospital system, including medical and health facilities, and mortgage or pledge the property as security for the payment of the purchase price. A contract entered into under this subsection must provide that the entire obligation be retired not later than the fifth anniversary of the date of the contract.

(d) The board on behalf of the district may hold, construct, condemn, purchase, acquire, lease, add to, maintain, operate, regulate, sell, convey, or otherwise dispose of any type of property, including land or equipment, or a property right, hospital facility, or hospital system on terms the board finds are in the best interest of the district's inhabitants.

(e) 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 65th Leg., R.S., Ch. 112, Secs. 11(a) (part), (b), 12 (part).)

Sec. 1061.109. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property located in district territory if the interest is necessary or convenient for the district to exercise a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, except the district is not required to deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code.

(c) In a condemnation proceeding brought by the district, the district is not required to:

(1) pay in advance or provide a bond or other security for costs in the trial court;

(2) provide a bond for the issuance of a temporary restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on an appeal or petition for review. (Acts 65th Leg., R.S., Ch. 112, Sec. 16(a).)

Sec. 1061.110. COST OF RELOCATING OR ALTERING PROPERTY. In exercising the power of eminent domain, if the board requires relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of any railroad, electric transmission, telegraph or telephone line, conduit, pole, or facility, or pipeline, the district must bear the actual cost of relocating, raising, lowering, rerouting, changing the grade, or altering the construction to provide comparable replacement, without enhancement of facilities, after deducting the net salvage value derived from the old facility. (Acts 65th Leg., R.S., Ch. 112, Sec. 16(b).)

Sec. 1061.111. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board 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 65th Leg., R.S., Ch. 112, Sec. 20.)

Sec. 1061.112. CONSTRUCTION OR PURCHASE CONTRACTS. A construction or purchase contract that involves the expenditure of more than $25,000 may be made only after advertising in the manner provided by Chapter 252, Local Government Code. (Acts 65th Leg., R.S., Ch. 112, Sec. 12 (part).)

Sec. 1061.113. MANAGEMENT AGREEMENT; LIABILITY. (a) The board may enter into a management agreement with any person, including the Midland Memorial Foundation or its successors, for the management and operation of any hospital or part of a hospital owned by the district, under terms satisfactory to the board and the person.

(b) An agreement under Subsection (a) may be for a term not to exceed 10 years, with renewal options as considered advisable.

(c) A nonprofit corporation that manages a hospital or provides services under a contract with the district under this chapter and any corporation employee are district employees for purposes of Chapters 101 and 102, Civil Practice and Remedies Code, while performing services under the contract for the benefit of the district. (Acts 65th Leg., R.S., Ch. 112, Sec. 7.)

Sec. 1061.114. CONTRACTS FOR HOSPITALIZATION, TREATMENT, AND TRAINING. (a) The board may contract with any person located inside or outside the district's boundaries for the hospitalization and treatment of a sick or injured person.

(b) The district may contract with any person located inside or outside the district's boundaries for services provided by the district, including:

(1) the promotion of health;

(2) hospital treatment of a sick or injured person; and

(3) the training of doctors and nurses and the provision of training in health care disciplines. (Acts 65th Leg., R.S., Ch. 112, Sec. 6 (part).)

Sec. 1061.115. CONTRACT FOR INVESTIGATORY OR OTHER SERVICES. The board may contract with any person for the district to provide investigatory or other services for the medical, hospital, or welfare needs of district inhabitants. (Acts 65th Leg., R.S., Ch. 112, Sec. 6 (part).)

Sec. 1061.116. CONTRACT FOR FACILITIES TO SUPPORT SURGICAL RESIDENCY PROGRAM. (a) The board may contract with a state agency or public medical school, including the Texas Tech University Health Sciences Center, for the improvement and equipping of hospital facilities as necessary to support a surgical residency program.

(b) Notwithstanding other law, the state agency or medical school may enter into an agreement described by Subsection (a) and spend appropriated funds for that purpose. (Acts 65th Leg., R.S., Ch. 112, Sec. 6A.)

Sec. 1061.117. PROVISION OF SERVICES OUTSIDE DISTRICT. The district may provide primary care, emergency services, preventive 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 65th Leg., R.S., Ch. 112, Sec. 3(a) (part).)

Sec. 1061.118. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a patient who resides in the district is admitted to a district facility, the district administrator may have an inquiry made into the financial 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 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 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. 112, Sec. 19 (part).)

Sec. 1061.119. 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. 112, Sec. 19 (part).)

Sec. 1061.120. AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued. (Acts 65th Leg., R.S., Ch. 112, Sec. 6 (part).)

[Sections 1061.121-1061.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1061.151. BUDGET. (a) Unless otherwise provided in a management agreement, 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.

(c) The board shall provide in each annual budget for the payment of all operation and maintenance expenses of the district.

(d) In preparing the budget, the board may consider the estimated excess revenue and income from hospital facilities available for paying the operation and maintenance expenses after providing for the payment of revenue bonds issued by the district. (Acts 65th Leg., R.S., Ch. 112, Secs. 8 (part), 10 (part).)

Sec. 1061.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The board shall hold a public hearing on the proposed annual budget.

(b) At least 10 days before the date of the hearing, notice of the hearing shall be published one time in a newspaper or newspapers that individually or collectively have general circulation in the district.

(c) Any property taxpayer of the district is entitled to be present and participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt a budget by acting on the budget proposed by the district administrator. The board may make any changes in the proposed budget that the board judges to be in the interest of the taxpayers and that the law warrants. (Acts 65th Leg., R.S., Ch. 112, Sec. 8 (part).)

Sec. 1061.153. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. (Acts 65th Leg., R.S., Ch. 112, Sec. 8 (part).)

Sec. 1061.154. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the budget or an amendment to the budget. (Acts 65th Leg., R.S., Ch. 112, Sec. 8 (part).)

Sec. 1061.155. FISCAL YEAR. The district operates according to a fiscal year that begins on October 1 and ends on September 30. The board may change the fiscal year. (Acts 65th Leg., R.S., Ch. 112, Sec. 8 (part).)

Sec. 1061.156. AUDIT. The board shall have an independent audit made of the district's financial condition for each fiscal year. (Acts 65th Leg., R.S., Ch. 112, Sec. 8 (part).)

Sec. 1061.157. INSPECTION OF AUDIT AND DISTRICT RECORDS. The audit and other district records shall be open to inspection at the district's principal office. (Acts 65th Leg., R.S., Ch. 112, Sec. 8 (part).)

Sec. 1061.158. FINANCIAL REPORT. As soon as practicable after the close of each fiscal year, the district administrator or the managing entity of the hospital 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 65th Leg., R.S., Ch. 112, Sec. 8 (part).)

Sec. 1061.159. DEPOSITORY. (a) The board shall select one or more banks in the district to serve as a depository for district money. A selected bank serves for four years. Bids shall be received for a depository contract after notice is published one time in a newspaper of general circulation in the district 20 days before the date to open the bids. The district shall award the depository contract to the bank or banks offering the most favorable terms for handling the district's money.

(b) District money, other than money invested as provided by Section 1061.160(b) and money transmitted to a bank for payment of bonds or obligations issued by the district, shall be deposited as received with the depository bank and shall remain on deposit.

(c) This chapter, including Subsection (b), does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit.

(d) The district may not deposit money with a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation unless the bank first executes a bond or other security or pledges security as required for county depositories in an amount sufficient to secure from loss the district money that exceeds the amount secured by the Federal Deposit Insurance Corporation. (Acts 65th Leg., R.S., Ch. 112, Sec. 13.)

Sec. 1061.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as otherwise provided by Section 1061.108(c) and by Subchapter E, the district may not incur an obligation payable from district revenue other than the revenue on hand or to be on hand in the current and following district fiscal years.

(b) The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code. (Acts 65th Leg., R.S., Ch. 112, Secs. 6 (part), 12 (part).)

[Sections 1061.161-1061.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1061.201. GENERAL OBLIGATION BONDS. The board may issue and sell general obligation bonds in the name and on the full faith and credit of the district for:

(1) the purchase, construction, acquisition, repair, or renovation of buildings or improvements; and

(2) equipping buildings or improvements for hospital purposes. (Acts 65th Leg., R.S., Ch. 112, Sec. 9(a) (part).)

Sec. 1061.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1061.201, 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 65th Leg., R.S., Ch. 112, Sec. 9(a) (part).)

Sec. 1061.203. BOND ELECTION. (a) The district may issue tax 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 presiding judges for each polling place;

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

(5) the maximum maturity date of the bonds.

(c) Notice of a bond election shall be given as provided by Section 1251.003, Government Code. (Acts 65th Leg., R.S., Ch. 112, Sec. 9(a) (part).)

Sec. 1061.204. REVENUE BONDS. (a) The board may issue revenue bonds for the purchase, construction, acquisition, and repair or renovation of buildings and improvements, and equipping any hospital facilities, including facilities for parking, and the training of doctors, nurses, and health care disciplines, and to acquire any real or personal property in connection with the hospital facilities.

(b) A revenue bond issued under this section must mature not later than 40 years after the date of issuance.

(c) The board may provide for the subsequent issuance of additional parity bonds, subordinate lien bonds, or other types of bonds under terms prescribed in the order authorizing the issuance of revenue bonds. (Acts 65th Leg., R.S., Ch. 112, Sec. 10 (part).)

Sec. 1061.205. PAYMENT OF REVENUE BONDS; SECURITY. (a) Revenue bonds issued under Section 1061.204 must be payable from and secured by liens on and pledges of all or any part of the revenue and income, other than ad valorem taxes, derived by the district from the operation of district facilities, the ownership of district facilities, or both. The board may pledge to the payment of revenue bonds all or any part of a grant, donation, or income received or to be received from the United States or any other public or private source under an agreement or otherwise.

(b) The bonds may be additionally secured by a mortgage or deed of trust on any real property on which a district hospital facility is or will be located and any real or personal property incident or appurtenant to the facility. The board may authorize the execution and delivery of a trust indenture, mortgage, deed of trust, or other form of encumbrance to evidence the security interest. (Acts 65th Leg., R.S., Ch. 112, Sec. 10 (part).)

Sec. 1061.206. USE OF REVENUE BOND PROCEEDS. (a) If permitted in the bond order, any required part of the proceeds from the sale of the revenue bonds may be used to:

(1) pay interest on the bonds during the period of the construction of a hospital facility to be provided through the issuance of the bonds;

(2) pay operation and maintenance expenses of the facility to the extent and for the time specified in the bond order; and

(3) create reserves for the payment of the principal of and interest on the bonds.

(b) The bond proceeds may be invested until needed to the extent and in the manner provided by the bond order. (Acts 65th Leg., R.S., Ch. 112, Sec. 10 (part).)

Sec. 1061.207. CHARGE FOR OCCUPANCY OR USE OF HOSPITAL FACILITY. The board may establish and collect charges for the occupancy or use of a hospital facility and for related services in the amounts and manner determined by the board. The charges shall be set and collected in amounts at least sufficient with any other pledged resources to pay:

(1) the principal of, interest on, and any other amounts required in relation to bonds issued by the district; and

(2) to the extent required by the bond order, all or any part of the operation, maintenance, and other expenses of the hospital facility. (Acts 65th Leg., R.S., Ch. 112, Sec. 10 (part).)

Sec. 1061.208. REFUNDING BONDS. (a) The board may, without an election, issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.

(b) Refunding bonds may be:

(1) sold, with the proceeds of the refunding bonds applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a like principal amount of outstanding indebtedness. (Acts 65th Leg., R.S., Ch. 112, Secs. 9(a) (part), (c) (part), 10 (part).)

Sec. 1061.209. BONDS EXEMPT FROM TAXATION. The following are exempt from taxation by this state or a political subdivision:

(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. 112, Sec. 23 (part).)

[Sections 1061.210-1061.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1061.251. 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 indebtedness issued or assumed by the district;

(2) provide for the operation and maintenance of the district and hospital system;

(3) make improvements and additions to the hospital system; and

(4) acquire necessary sites for the improvements and additions by purchase, lease, or condemnation.

(c) The board may not impose a tax to pay the principal of or interest on revenue bonds. (Acts 65th Leg., R.S., Ch. 112, Secs. 4(b) (part), 10 (part), 14(a) (part).)

Sec. 1061.252. 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 65th Leg., R.S., Ch. 112, Secs. 4(b) (part), 14(a) (part), (b) (part).)

Sec. 1061.253. USE OF AD VALOREM TAXES FOR OPERATION AND MAINTENANCE EXPENSES. (a) If the board issues revenue bonds under Section 1061.204, the board:

(1) shall use ad valorem taxes to pay the district's operation and maintenance expenses to the extent that the revenue and income from the district's hospital facilities are not sufficient after providing for the payment of those bonds; and

(2) may pledge the proceeds of the ad valorem tax for the payment of the district's operation and maintenance expenses in the order authorizing the issuance of the bonds.

(b) If the ad valorem tax is pledged, the board shall, during each year during which the revenue bonds are outstanding, compute a tax rate sufficient to pay the operation and maintenance expenses described by Subsection (a)(1).

(c) The ad valorem tax shall be imposed on all taxable property in the district for each year the revenue bonds are outstanding. The tax shall be assessed and collected each year and used for the purpose prescribed by this section to the extent required. (Acts 65th Leg., R.S., Ch. 112, Sec. 10 (part).)

Sec. 1061.254. ASSESSMENT AND COLLECTION BY COUNTY TAX ASSESSOR-COLLECTOR. (a) This section applies unless the board by majority vote elects to have taxes assessed and collected under Section 1061.255 or 1061.256.

(b) The tax assessor-collector of Midland County shall assess and collect taxes imposed by the district. (Acts 65th Leg., R.S., Ch. 112, Secs. 17(a) (part), (b) (part).)

Sec. 1061.255. 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 a similar resolution.

(b) The district tax assessor-collector must:

(1) reside in the district; and

(2) own real property subject to district taxation.

(c) The board shall set for the district tax assessor-collector:

(1) the term of employment; and

(2) compensation. (Acts 65th Leg., R.S., Ch. 112, Secs. 17(a) (part), (c) (part).)

Sec. 1061.256. 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 a similar resolution.

(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 appropriate parties. (Acts 65th Leg., R.S., Ch. 112, Secs. 17(a) (part), (d) (part).) CHAPTER 1063. MONTGOMERY COUNTY HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1063.001. DEFINITIONS Sec. 1063.002. AUTHORITY FOR OPERATION Sec. 1063.003. ESSENTIAL PUBLIC FUNCTION Sec. 1063.004. DISTRICT TERRITORY Sec. 1063.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1063.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1063.007-1063.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1063.051. BOARD ELECTION; TERM Sec. 1063.052. QUALIFICATIONS FOR OFFICE Sec. 1063.053. BALLOT PETITION Sec. 1063.054. NOTICE OF ELECTION Sec. 1063.055. RUNOFF ELECTION Sec. 1063.056. BOARD VACANCY Sec. 1063.057. OFFICERS Sec. 1063.058. COMPENSATION Sec. 1063.059. BOND; RECORD OF BOND Sec. 1063.060. VOTING REQUIREMENT Sec. 1063.061. CALLING MEETINGS Sec. 1063.062. CHIEF ADMINISTRATIVE OFFICER; ASSISTANT

ADMINISTRATOR Sec. 1063.063. GENERAL DUTIES OF CHIEF ADMINISTRATIVE

OFFICER Sec. 1063.064. APPOINTMENT OF STAFF AND EMPLOYEES Sec. 1063.065. RETIREMENT BENEFITS

[Sections 1063.066-1063.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1063.101. DISTRICT RESPONSIBILITY Sec. 1063.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1063.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1063.104. HEALTH CARE OR HOSPITAL SYSTEM Sec. 1063.105. RULES Sec. 1063.106. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1063.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1063.108. TAKEOVER OF NONPROFIT HOSPITAL PROPERTY Sec. 1063.109. EMINENT DOMAIN Sec. 1063.110. COST OF RELOCATING OR ALTERING PROPERTY Sec. 1063.111. GIFTS AND ENDOWMENTS Sec. 1063.112. CONSTRUCTION CONTRACTS Sec. 1063.113. OPERATING AND MANAGEMENT CONTRACTS Sec. 1063.114. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT Sec. 1063.115. CONTRACTS FOR HEALTH CARE SERVICES Sec. 1063.116. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES Sec. 1063.117. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1063.118. NONPROFIT CORPORATION Sec. 1063.119. AUTHORITY TO SUE AND BE SUED

[Sections 1063.120-1063.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1063.151. BUDGET Sec. 1063.152. NOTICE; HEARING; ADOPTION OF BUDGET Sec. 1063.153. AMENDMENTS TO BUDGET Sec. 1063.154. RESTRICTION ON EXPENDITURES Sec. 1063.155. FISCAL YEAR Sec. 1063.156. AUDIT Sec. 1063.157. INSPECTION OF AUDIT AND DISTRICT

RECORDS Sec. 1063.158. FINANCIAL REPORT Sec. 1063.159. DEPOSITORY Sec. 1063.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1063.161-1063.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1063.201. GENERAL OBLIGATION BONDS Sec. 1063.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1063.203. GENERAL OBLIGATION BOND ELECTION Sec. 1063.204. MATURITY OF GENERAL OBLIGATION BONDS Sec. 1063.205. EXECUTION OF GENERAL OBLIGATION BONDS Sec. 1063.206. REVENUE BONDS Sec. 1063.207. REFUNDING BONDS Sec. 1063.208. BONDS EXEMPT FROM TAXATION Sec. 1063.209. TAX ANTICIPATION NOTES Sec. 1063.210. CERTIFICATES OF OBLIGATION

[Sections 1063.211-1063.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1063.251. IMPOSITION OF AD VALOREM TAX Sec. 1063.252. TAX RATE Sec. 1063.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR Sec. 1063.254. ASSESSMENT AND COLLECTION BY

APPOINTMENT OR CONTRACT Sec. 1063.255. PETITION AND ORDER FOR ELECTION TO

REDUCE TAX RATE

[Sections 1063.256-1063.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION Sec. 1063.301. DISSOLUTION ELECTION; PETITION Sec. 1063.302. VALIDITY OF PETITION FOR ELECTION Sec. 1063.303. ELECTION DATE Sec. 1063.304. BALLOT Sec. 1063.305. ELECTION RESULTS Sec. 1063.306. TRANSFER, SALE, OR ADMINISTRATION OF

ASSETS IF ELECTION INITIATED BY BOARD Sec. 1063.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES Sec. 1063.308. REPORT; DISSOLUTION ORDER Sec. 1063.309. TRANSFER, SALE, OR ADMINISTRATION OF

DISTRICT PETITION

CHAPTER 1063. MONTGOMERY COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1063.001. 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 Montgomery County Hospital District. (New.)

Sec. 1063.002. AUTHORITY FOR OPERATION. The Montgomery County Hospital District operates and is administered and financed in accordance with Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties provided by this chapter. (Acts 65th Leg., R.S., Ch. 258, Sec. 1 (part).)

Sec. 1063.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 65th Leg., R.S., Ch. 258, Sec. 22 (part).)

Sec. 1063.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Montgomery County, Texas. (Acts 65th Leg., R.S., Ch. 258, Sec. 1 (part).)

Sec. 1063.005. 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 65th Leg., R.S., Ch. 258, Sec. 21 (part).)

Sec. 1063.006. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 65th Leg., R.S., Ch. 258, Sec. 21 (part).)

[Sections 1063.007-1063.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1063.051. BOARD ELECTION; TERM. (a) The board consists of seven directors elected as follows:

(1) one director elected from each county commissioners precinct; and

(2) three directors elected from the district at large by position.

(b) A district voter may vote on the directors to be elected at large and on the director to be elected from the precinct in which the voter resides.

(c) An election shall be held on the uniform election date in May of each even-numbered year to elect the appropriate number of directors.

(d) Directors serve staggered four-year terms that expire on the second Tuesday in June. (Acts 65th Leg., R.S., Ch. 258, Secs. 4(a) (part), (c) (part); Acts 72nd Leg., R.S., Ch. 511, Sec. 6.)

Sec. 1063.052. QUALIFICATIONS FOR OFFICE. (a) A person may not be elected or appointed as a director unless the person:

(1) is more than 21 years of age at the time of the appointment or election;

(2) is a resident of the district; and

(3) is a qualified voter.

(b) A director who represents a county commissioners precinct must be a resident of that precinct.

(c) A person may not be elected or appointed as a director if the person holds another appointed or elected public office of honor, trust, or profit.

(d) A person who holds another public office of honor, trust, or profit and seeks to be appointed or elected as a director automatically vacates the first office. (Acts 65th Leg., R.S., Ch. 258, Sec. 4(a) (part).)

Sec. 1063.053. 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 65th Leg., R.S., Ch. 258, Sec. 4(c) (part).)

Sec. 1063.054. NOTICE OF ELECTION. At least 10 days before the date of a regular election of directors, notice of the election shall be published one time in a newspaper of general circulation in Montgomery County. (Acts 65th Leg., R.S., Ch. 258, Sec. 4(c) (part).)

Sec. 1063.055. RUNOFF ELECTION. (a) If no candidate for a particular director position at a regular directors' election receives a majority of the votes of the voters voting in that race, the board shall order a runoff election.

(b) At least seven days before the date of a runoff election, the board shall publish notice of the election one time in a newspaper or newspapers that individually or collectively have general circulation in the area of the runoff election.

(c) Of the names printed on the ballot at a runoff election, the name of the candidate who received the higher number of votes at the general election of directors must be printed first on the ballot. (Acts 65th Leg., R.S., Ch. 258, Sec. 4(d) (part).)

Sec. 1063.056. 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 65th Leg., R.S., Ch. 258, Sec. 4(b) (part).)

Sec. 1063.057. OFFICERS. The board shall elect from among its members a presiding officer, assistant presiding officer, treasurer, and secretary. (Acts 65th Leg., R.S., Ch. 258, Sec. 4(b) (part).)

Sec. 1063.058. COMPENSATION. A director serves without compensation. (Acts 65th Leg., R.S., Ch. 258, Sec. 4(a) (part).)

Sec. 1063.059. BOND; RECORD OF BOND. (a) Each director shall execute a good and sufficient bond for $1,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the director's duties.

(b) Each director's bond shall be deposited with the district's depository bank for safekeeping. (Acts 65th Leg., R.S., Ch. 258, Sec. 4(a) (part).)

Sec. 1063.060. VOTING REQUIREMENT. A concurrence of a majority of the directors present is sufficient in any matter relating to district business. (Acts 65th Leg., R.S., Ch. 258, Sec. 4(b) (part).)

Sec. 1063.061. CALLING MEETINGS. The presiding officer or any four directors may call a board meeting. (Acts 65th Leg., R.S., Ch. 258, Sec. 4(b) (part).)

Sec. 1063.062. CHIEF ADMINISTRATIVE OFFICER; ASSISTANT ADMINISTRATOR. (a) The board shall appoint a qualified person as the district's chief administrative officer. That officer shall be known as the district president or by another title selected by the board.

(b) The board may appoint one or more assistant administrators. An assistant administrator shall be known as the district vice president or by another title selected by the board.

(c) The chief administrative officer and any assistant administrator serve at the will of the board and are entitled to the compensation determined by the board. (Acts 65th Leg., R.S., Ch. 258, Sec. 5(a) (part).)

Sec. 1063.063. GENERAL DUTIES OF CHIEF ADMINISTRATIVE OFFICER. Subject to the limitations prescribed by the board, the chief administrative officer shall:

(1) supervise the work and activities of the district; and

(2) direct the affairs of the district. (Acts 65th Leg., R.S., Ch. 258, Sec. 5(a) (part).)

Sec. 1063.064. APPOINTMENT OF STAFF AND EMPLOYEES. (a) The board may appoint to the staff any doctors the board considers necessary for the efficient operation of the district and may make temporary appointments as warranted.

(b) The district may employ fiscal agents, accountants, architects, and attorneys the board considers proper.

(c) The board may delegate to the chief administrative officer the authority to hire district employees, including technicians and nurses. (Acts 65th Leg., R.S., Ch. 258, Secs. 5(a) (part), 17.)

Sec. 1063.065. 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 65th Leg., R.S., Ch. 258, Sec. 6.)

[Sections 1063.066-1063.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1063.101. 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. 258, Sec. 20 (part).)

Sec. 1063.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision located wholly or partly within the district may not impose a tax or issue bonds or other obligations for hospital or health care purposes or to provide medical care for district residents. (Acts 65th Leg., R.S., Ch. 258, Sec. 20 (part).)

Sec. 1063.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the health care or hospital system and the district's money and resources. (Acts 65th Leg., R.S., Ch. 258, Sec. 5(a) (part).)

Sec. 1063.104. HEALTH CARE OR HOSPITAL SYSTEM. (a) The district shall provide for:

(1) the establishment of a health care or hospital system by:

(A) purchasing, constructing, acquiring, repairing, or renovating buildings and equipment; and

(B) equipping the buildings; and

(2) the administration of the system for health care or hospital purposes.

(b) The health care or hospital system may include:

(1) domiciliary care and treatment of the sick, injured, or geriatric;

(2) hospitals;

(3) outpatient clinics;

(4) dispensaries;

(5) convalescent home facilities;

(6) necessary nurses;

(7) domiciliaries and training centers;

(8) blood banks;

(9) community mental health centers;

(10) research centers or laboratories;

(11) ambulance services; and

(12) any other facilities the board considers necessary for health or hospital care. (Acts 65th Leg., R.S., Ch. 258, Secs. 2 (part), 11(a) (part).)

Sec. 1063.105. RULES. The board may adopt rules governing the operation of the hospital, the health care or hospital system, and the district's staff and employees. (Acts 65th Leg., R.S., Ch. 258, Sec. 5(a) (part).)

Sec. 1063.106. 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 65th Leg., R.S., Ch. 258, Sec. 11(c) (part).)

Sec. 1063.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine the type, number, and location of buildings required to maintain an adequate health care or 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. Except as provided by Subsection (c), the term of a lease may not exceed 25 years from the date entered.

(c) District land may not be leased for a period exceeding 25 years unless the board:

(1) finds that the land is not necessary for health care or hospital purposes;

(2) complies with any indenture securing the payment of district bonds; and

(3) receives not less than the current market value for the lease.

(d) The district may acquire equipment for use in the district's health care or 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.

(e) 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 must comply with Section 272.001, Local Government Code, when selling district land other than land the district is authorized to sell or exchange under Subsection (f).

(f) The district may sell or exchange a hospital, including real property necessary or convenient for the operation of the hospital and real property that the board finds may be useful in connection with future expansions of the hospital, on terms the board determines to be in the district's best interests. The district must comply with the procedures prescribed by Sections 285.051 and 285.052, Health and Safety Code. (Acts 65th Leg., R.S., Ch. 258, Secs. 11(a) (part), (b), (c) (part), 15(c), (d).)

Sec. 1063.108. TAKEOVER OF NONPROFIT HOSPITAL PROPERTY. The district may take over and may accept title to land, buildings, improvements, and equipment of a nonprofit hospital in the district if the governing authority of the hospital and district agree to the transfer. (Acts 65th Leg., R.S., Ch. 258, Sec. 2 (part).)

Sec. 1063.109. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property located in district territory if the interest is necessary or convenient for the district to exercise a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, except the district is not required to deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code.

(c) In a condemnation proceeding brought by the district, the district is not required to:

(1) pay in advance or provide a bond or other security for costs in the trial court;

(2) provide a bond for the issuance of a temporary restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on an appeal or petition for review. (Acts 65th Leg., R.S., Ch. 258, Sec. 15(a).)

Sec. 1063.110. COST OF RELOCATING OR ALTERING PROPERTY. In exercising the power of eminent domain, if the board requires the relocation, raising, lowering, rerouting, or change in grade or alteration in the construction of any railroad, electric transmission, telegraph or telephone lines, conduits, poles, or facilities or pipelines, the board must bear the actual cost of the relocation, raising, lowering, rerouting, or change in grade or alteration of 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. 258, Sec. 15(b).)

Sec. 1063.111. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board 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 65th Leg., R.S., Ch. 258, Sec. 19.)

Sec. 1063.112. CONSTRUCTION CONTRACTS. A construction contract that involves the expenditure of more than $10,000 may be made only after advertising in the manner provided by Chapter 252 and Subchapter C, Chapter 262, Local Government Code. (Acts 65th Leg., R.S., Ch. 258, Sec. 11(c) (part).)

Sec. 1063.113. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to a district facility. (Acts 65th Leg., R.S., Ch. 258, Sec. 11(a) (part).)

Sec. 1063.114. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT. (a) The board may contract with a county or municipality located outside the district's boundaries for the care and treatment of a sick or injured person of that county or municipality.

(b) The board may contract with this state or a federal agency for the treatment of a sick or injured person. (Acts 65th Leg., R.S., Ch. 258, Sec. 5(a) (part).)

Sec. 1063.115. CONTRACTS FOR HEALTH CARE SERVICES. (a) As permitted by the Texas Constitution and Chapter 61, Health and Safety Code, the district may:

(1) enter into a contract relating to the provision of health care services on terms the board determines to be in the district's best interests; and

(2) make payments under the contract.

(b) The term of a contract under this section may not exceed 15 years. (Acts 65th Leg., R.S., Ch. 258, Sec. 5(b).)

Sec. 1063.116. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR INVESTIGATORY OR OTHER SERVICES. The board may contract with a political subdivision or governmental agency for the district to provide investigatory or other services for the medical, health care, hospital, or welfare needs of district inhabitants. (Acts 65th Leg., R.S., Ch. 258, Sec. 5(a) (part).)

Sec. 1063.117. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a patient who resides in the district is admitted to a district facility, the chief administrative officer 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 chief administrative officer determines that the patient or those relatives cannot pay all or part of the costs of the care and treatment in the district facility, the amount of the costs that cannot be paid becomes a charge against the district.

(c) If the chief administrative 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 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 chief administrative officer may collect the amount from the estate of the patient, 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 chief administrative officer, 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 65th Leg., R.S., Ch. 258, Sec. 18.)

Sec. 1063.118. NONPROFIT CORPORATION. (a) The district may create and sponsor a nonprofit corporation under the Business Organizations Code and may contribute or cause to be contributed available funds to the corporation. A corporation under this section must be a nonmember, nonstock corporation.

(b) The board of directors of the corporation shall be composed of seven district residents appointed by the district's board. The district's board may remove any director of the corporation at any time with or without cause.

(c) The corporation may use money, other than money the corporation pays to the district, only to provide or pay the costs of providing or costs related to providing indigent health care or other services the district is required or authorized to provide under the constitution or state law.

(d) The district's board shall establish controls to ensure that the corporation uses its money as required by Subsection (c).

(e) 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. (Acts 65th Leg., R.S., Ch. 258, Sec. 19A.)

Sec. 1063.119. AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued. (Acts 65th Leg., R.S., Ch. 258, Sec. 5(a) (part).)

[Sections 1063.120-1063.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1063.151. BUDGET. (a) The chief administrative officer shall prepare an annual budget for approval by the board.

(b) The proposed budget must contain a complete financial statement of:

(1) the outstanding obligations of the district;

(2) the cash on hand in each district fund;

(3) the money received by the district from all sources during the previous year;

(4) the money available to the district from all sources during the ensuing year;

(5) the balances expected at the end of the year in which the budget is being prepared;

(6) the estimated revenue and balances available to cover the proposed budget; and

(7) the estimated tax rate required. (Acts 65th Leg., R.S., Ch. 258, Sec. 7 (part).)

Sec. 1063.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The board shall hold a public hearing on the proposed annual budget.

(b) Notice of the hearing must be published one time at least 10 days before the date of the hearing.

(c) Any district resident is entitled to be present and participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt a budget by acting on the budget proposed by the chief administrative officer. The board may make any changes in the proposed budget that the board judges to be in the interests of the taxpayers and that the law warrants. (Acts 65th Leg., R.S., Ch. 258, Sec. 7 (part).)

Sec. 1063.153. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. (Acts 65th Leg., R.S., Ch. 258, Sec. 7 (part).)

Sec. 1063.154. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the budget or an amendment to the budget. (Acts 65th Leg., R.S., Ch. 258, Sec. 7 (part).)

Sec. 1063.155. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that district revenue bonds are outstanding; or

(2) more than once in a 24-month period. (Acts 65th Leg., R.S., Ch. 258, Sec. 7 (part).)

Sec. 1063.156. AUDIT. The board shall have an audit made of the district's financial condition. (Acts 65th Leg., R.S., Ch. 258, Sec. 7 (part).)

Sec. 1063.157. INSPECTION OF AUDIT AND DISTRICT RECORDS. The audit and other district records shall be open to inspection at the district's principal office. (Acts 65th Leg., R.S., Ch. 258, Sec. 7 (part).)

Sec. 1063.158. FINANCIAL REPORT. As soon as practicable after the close of each fiscal year, the chief administrative officer shall prepare for the board:

(1) a complete sworn statement of all district money; and

(2) a complete account of the disbursements of district money. (Acts 65th Leg., R.S., Ch. 258, Sec. 7 (part).)

Sec. 1063.159. DEPOSITORY. (a) The board shall select one or more banks in the district to serve as a depository for district money.

(b) District money, other than money invested as provided by Section 1063.160, and money transmitted to a bank for payment of bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and shall remain on deposit.

(c) This chapter, including Subsection (b), does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit.

(d) The district may not deposit money with a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation unless the bank first executes a bond or other security in an amount sufficient to secure from loss the amount of district money that exceeds the amount secured by the Federal Deposit Insurance Corporation. (Acts 65th Leg., R.S., Ch. 258, Sec. 12.)

Sec. 1063.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as otherwise provided by Section 1063.107(d) and by Subchapter E, the district may not incur an obligation payable from district revenue other than the revenue on hand or to be on hand in the current and following district fiscal years.

(b) The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code. (Acts 65th Leg., R.S., Ch. 258, Secs. 5(a) (part), 11(c) (part).)

[Sections 1063.161-1063.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1063.201. 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 health care or hospital purposes. (Acts 65th Leg., R.S., Ch. 258, Sec. 8(a) (part).)

Sec. 1063.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1063.201, 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 subject to hospital district taxation. (Acts 65th Leg., R.S., Ch. 258, Sec. 8(a) (part).)

Sec. 1063.203. 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 election order must provide for clerks as in county elections and must specify:

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding and alternate election judges for each polling place;

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

(5) the maximum maturity of the bonds.

(c) Notice of a bond election shall be given as provided by Section 1251.003, Government Code. (Acts 65th Leg., R.S., Ch. 258, Sec. 8(a) (part).)

Sec. 1063.204. MATURITY OF GENERAL OBLIGATION BONDS. District general obligation bonds must mature not later than 40 years after the date of issuance. (Acts 65th Leg., R.S., Ch. 258, Sec. 8(c) (part).)

Sec. 1063.205. EXECUTION OF GENERAL OBLIGATION BONDS. (a) The board president shall execute the general obligation bonds in the district's name.

(b) The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code. (Acts 65th Leg., R.S., Ch. 258, Sec. 8(c) (part).)

Sec. 1063.206. REVENUE BONDS. (a) The district may issue revenue bonds or certificates of obligation or may incur or assume any other debt only if authorized by a majority of the district voters voting in an election held for that purpose. This subsection does not apply to refunding bonds or other debt incurred solely to refinance an outstanding debt.

(b) The board may issue revenue bonds to:

(1) purchase, construct, acquire, repair, renovate, or equip buildings or improvements for health care or hospital purposes; or

(2) acquire sites to be used for health care or hospital purposes.

(c) The bonds must be payable from and secured by a pledge of all or part of the revenue derived from the operation of the district's hospital or health care facilities.

(d) The bonds may be additionally secured by a mortgage or deed of trust lien on all or part of district property.

(e) The bonds must be issued in the manner and in accordance with the procedures and requirements prescribed by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 65th Leg., R.S., Ch. 258, Secs. 9A, 10 (part).)

Sec. 1063.207. REFUNDING BONDS. (a) The board may, without an election, issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bond applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness. (Acts 65th Leg., R.S., Ch. 258, Secs. 8(a) (part), (b) (part), 10 (part).)

Sec. 1063.208. 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 65th Leg., R.S., Ch. 258, Sec. 22 (part).)

Sec. 1063.209. TAX ANTICIPATION NOTES. (a) The board may:

(1) declare an emergency because money is not available to:

(A) pay the principal of and interest on any district bonds payable wholly or partly from taxes; or

(B) meet any other needs of the district; and

(2) issue negotiable tax anticipation notes to borrow the money the district needs.

(b) Tax anticipation notes may be issued for any purpose for which the district may impose taxes.

(c) Tax anticipation notes may bear interest at any rate or rates authorized by law.

(d) Tax anticipation notes must mature not later than one year after the date of issuance.

(e) Tax anticipation notes must be secured by the proceeds of taxes to be imposed by the district in the succeeding 12-month period.

(f) The board may covenant with the note purchasers that the board will impose a sufficient tax in the following fiscal year to pay the principal of and interest on the notes and pay the costs of collecting the taxes. (Acts 65th Leg., R.S., Ch. 258, Sec. 11(d).)

Sec. 1063.210. CERTIFICATES OF OBLIGATION. (a) The district may issue and sell certificates of obligation for a purpose permitted under this chapter.

(b) The certificates of obligation must be issued and sold in conformity with and in the manner specified for a municipality or county by Subchapter C, Chapter 271, Local Government Code. (Acts 65th Leg., R.S., Ch. 258, Sec. 8(d).)

[Sections 1063.211-1063.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1063.251. IMPOSITION OF AD VALOREM TAX. (a) The board shall impose an ad valorem tax on all taxable property in the district subject to district taxation.

(b) The board shall impose the tax to pay:

(1) indebtedness issued or assumed by the district; and

(2) the maintenance and operating expenses of the district.

(c) The board may not impose a tax to pay the principal of or interest on revenue bonds issued under this chapter. (Acts 65th Leg., R.S., Ch. 258, Secs. 13(a) (part), 16(a) (part).)

Sec. 1063.252. 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 subject to district taxation.

(b) In setting the tax rate, the board shall consider the income of the district from sources other than taxation. (Acts 65th Leg., R.S., Ch. 258, Secs. 3(b) (part), 13(a) (part), (b) (part).)

Sec. 1063.253. ASSESSMENT AND COLLECTION BY COUNTY TAX ASSESSOR-COLLECTOR. (a) This section applies unless the board elects to have district taxes assessed and collected under Section 1063.254.

(b) The tax assessor-collector of Montgomery County shall assess and collect taxes imposed by the district. (Acts 65th Leg., R.S., Ch. 258, Secs. 16(a) (part), (b) (part).)

Sec. 1063.254. ASSESSMENT AND COLLECTION BY APPOINTMENT OR CONTRACT. (a) The board may elect to:

(1) appoint a tax assessor-collector to assess and collect district taxes; or

(2) contract for the assessment and collection of taxes as provided by the Tax Code.

(b) An election under this section must be made by December 1 and governs the manner in which taxes are assessed and collected, until changed by a similar resolution.

(c) The board shall set for the appointed tax assessor-collector:

(1) the term of employment; and

(2) compensation. (Acts 65th Leg., R.S., Ch. 258, Secs. 16(a) (part), (c) (part).)

Sec. 1063.255. PETITION AND ORDER FOR ELECTION TO REDUCE TAX RATE. (a) Notwithstanding Section 26.07(b)(3), Tax Code, a petition to require an election under Section 26.07, Tax Code, on reducing the district's tax rate to the rollback tax rate shall be submitted to the Montgomery County elections administrator instead of to the board.

(b) Notwithstanding Section 26.07(c), Tax Code, not later than the 20th day after the date a petition is submitted under Subsection (a), the elections administrator shall:

(1) determine whether the petition is valid under Section 26.07, Tax Code; and

(2) certify the determination of the petition's validity to the board.

(c) If the elections administrator fails to act within the time allowed, the petition is treated as if it had been found valid.

(d) Notwithstanding Section 26.07(d), Tax Code, if the elections administrator certifies to the board that the petition is valid or fails to act within the time allowed, the board shall order that an election under Section 26.07, Tax Code, to determine whether to reduce the district's tax rate to the rollback rate be held in the district in the manner prescribed by Section 26.07(d) of that code.

(e) The district shall reimburse the elections administrator for reasonable costs incurred in performing the duties required by this section. (Acts 65th Leg., R.S., Ch. 258, Sec. 13A.)

[Sections 1063.256-1063.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1063.301. DISSOLUTION ELECTION; PETITION. (a) The board may order an election on the question of dissolving the district and disposing of the district's assets and obligations.

(b) The board shall order an election on the question of dissolving the district and disposing of the district's assets and obligations if the board receives a petition by district residents requesting an election that:

(1) is certified as valid by the Montgomery County elections administrator under Section 1063.302; or

(2) the Montgomery County elections administrator fails to act on within the time allowed by Section 1063.302.

(c) A petition requesting an election must:

(1) state that it is intended to request an election in the district on the question of dissolving the district and disposing of the district's assets and obligations;

(2) be signed by a number of district residents equal to at least 15 percent of the total vote received by all candidates for governor in the most recent gubernatorial general election in the district that occurs more than 30 days before the date the petition is submitted; and

(3) be submitted to the Montgomery County elections administrator. (Acts 65th Leg., R.S., Ch. 258, Secs. 23A(a), 23B(a), (a-3).)

Sec. 1063.302. VALIDITY OF PETITION FOR ELECTION. (a) Not later than the 30th day after the date a petition requesting the dissolution of the district is submitted under Section 1063.301, the Montgomery County elections administrator shall:

(1) determine whether the petition is valid; and

(2) certify the determination of the petition's validity to the board.

(b) If the elections administrator fails to act within the time allowed, the petition is treated as if it had been found valid.

(c) If a petition submitted under Section 1063.301 does not contain the necessary number of valid signatures, the district residents may not submit another petition under Section 1063.301 before the third anniversary of the date the invalid petition was submitted.

(d) The district shall reimburse the county elections administrator for reasonable costs incurred in performing the duties required by this section. (Acts 65th Leg., R.S., Ch. 258, Secs. 23B(a-1), (a-2), (a-4), (a-5).)

Sec. 1063.303. ELECTION DATE. An election under this subchapter shall be held on the earlier of the following dates that occurs at least 90 days after the date on which the election is ordered:

(1) the uniform election date in May; or

(2) the date of the general election for state and county officers. (Acts 65th Leg., R.S., Ch. 258, Secs. 23A(b), 23B(b).)

Sec. 1063.304. BALLOT. The ballot for an election under this subchapter must be printed to permit voting for or against the proposition: "The dissolution of the Montgomery County Hospital District." (Acts 65th Leg., R.S., Ch. 258, Secs. 23A(c) (part), 23B(c) (part).)

Sec. 1063.305. 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:

(1) the fourth anniversary of the date of the most recent election to dissolve the district if the board called the election under Section 1063.301(a); or

(2) the third anniversary of the date of the most recent election to dissolve the district if the board called the election under Section 1063.301(b). (Acts 65th Leg., R.S., Ch. 258, Secs. 23A(d), 23B(d).)

Sec. 1063.306. TRANSFER, SALE, OR ADMINISTRATION OF ASSETS IF ELECTION INITIATED BY BOARD. (a) This section, Section 1063.307, and Section 1063.308 apply to an election called under Section 1063.301(a).

(b) If a majority of the votes in the election favor dissolution, the board shall:

(1) transfer the ambulance service and related equipment, any vehicles, and any mobile clinics and related equipment that belong to the district to Montgomery County not later than the 45th day after the date on which the election is held; and

(2) transfer the land, buildings, improvements, equipment not described by Subdivision (1), and other assets that belong to the district to Montgomery County or administer the property, assets, and debts in accordance with Subsection (e) and Sections 1063.307 and 1063.308.

(c) The county assumes all debts and obligations of the district relating to the ambulance service and related equipment, any vehicles, and any mobile clinics and related equipment at the time of the transfer.

(d) If the district makes the transfer under Subsection (b)(2), the county assumes all debts and obligations of the district relating to those assets at the time of the transfer, and the district is dissolved.

(e) If the board finds that the district is dissolved but does not transfer the land, buildings, improvements, equipment, and other assets to Montgomery County under Subsection (b)(2), the board shall continue to control and administer that property and those assets and the related district debts until all money has been disposed of and all district debts have been paid or settled.

(f) The county shall use all transferred assets to:

(1) pay the outstanding debts and obligations of the district relating to the assets at the time of the transfer; or

(2) provide medical and hospital care for needy county residents. (Acts 65th Leg., R.S., Ch. 258, Secs. 23A(e), (f), (g).)

Sec. 1063.307. 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 on 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:

(1) to each district taxpayer the taxpayer's pro rata share of all unused tax money; and

(2) to Montgomery County all unused district money from any other source.

(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 send the money to the county tax assessor-collector.

(d) Montgomery County shall use unused district money received under this section to provide medical and hospital care for needy county residents.

(e) The board may institute a suit to enforce payment of taxes under this section and to foreclose liens to secure the payment of the taxes. (Acts 65th Leg., R.S., Ch. 258, Secs. 23A(h), (i), (j).)

Sec. 1063.308. 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 Montgomery County summarizing the board's actions in dissolving the district.

(b) Not later than the 10th day after the date the Commissioners Court of Montgomery 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. (Acts 65th Leg., R.S., Ch. 258, Sec. 23A(k).)

Sec. 1063.309. TRANSFER, SALE, OR ADMINISTRATION OF ASSETS IF ELECTION INITIATED BY DISTRICT PETITION. (a) This section applies to an election called under Section 1063.301(b).

(b) If a majority of the votes in the election favor dissolution, the board shall transfer the land, buildings, improvements, equipment, and other assets that belong to the district to Montgomery County not later than the 45th day after the date on which the election is held.

(c) The county assumes all debts and obligations of the district at the time of the transfer, and the district is dissolved.

(d) The county should use all transferred assets in a manner that benefits county residents residing in territory formerly constituting the district.

(e) The county shall use all transferred assets to:

(1) pay the outstanding debts and obligations of the district relating to the assets at the time of the transfer; or

(2) provide medical and hospital care for needy county residents. (Acts 65th Leg., R.S., Ch. 258, Sec. 23B(e).) CHAPTER 1064. MOORE COUNTY HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1064.001. DEFINITIONS Sec. 1064.002. AUTHORITY FOR OPERATION Sec. 1064.003. ESSENTIAL PUBLIC FUNCTION Sec. 1064.004. DISTRICT TERRITORY Sec. 1064.005. CORRECTION OF INVALID PROCEDURES Sec. 1064.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1064.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1064.008-1064.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1064.051. DEFINITION Sec. 1064.052. BOARD; TERM Sec. 1064.053. QUALIFICATIONS FOR OFFICE Sec. 1064.054. BOARD VACANCY Sec. 1064.055. OFFICERS Sec. 1064.056. COMPENSATION; EXPENSES Sec. 1064.057. VOTING REQUIREMENT Sec. 1064.058. ADMINISTRATOR; ASSISTANT ADMINISTRATOR Sec. 1064.059. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1064.060. APPOINTMENT OF STAFF; EMPLOYEES Sec. 1064.061. SENIORITY; RETIREMENT BENEFITS

[Sections 1064.062-1064.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1064.101. DISTRICT RESPONSIBILITY Sec. 1064.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1064.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1064.104. HOSPITAL SYSTEM; ANCILLARY HEALTH CARE

SERVICES SYSTEM Sec. 1064.105. RULES Sec. 1064.106. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1064.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1064.108. EMINENT DOMAIN Sec. 1064.109. GIFTS AND ENDOWMENTS Sec. 1064.110. CONSTRUCTION AND PURCHASE CONTRACTS Sec. 1064.111. OPERATING AND MANAGEMENT CONTRACTS Sec. 1064.112. CONTRACTS FOR CERTAIN SERVICES Sec. 1064.113. CONTRACTS FOR HEALTH CARE Sec. 1064.114. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1064.115. REIMBURSEMENT FOR SERVICES Sec. 1064.116. SALE OR LEASE OF HOSPITAL Sec. 1064.117. AUTHORITY TO SUE AND BE SUED

[Sections 1064.118-1064.150 reserved for expansion]

SUBCHAPTER D. CHANGE IN BOUNDARIES Sec. 1064.151. TERRITORY THAT MAY BE ANNEXED Sec. 1064.152. PETITION TO ANNEX TERRITORY Sec. 1064.153. ELECTION ORDER Sec. 1064.154. BALLOT Sec. 1064.155. NOTICE OF ELECTION Sec. 1064.156. ELECTION RESULTS Sec. 1064.157. EFFECT OF ANNEXATION

[Sections 1064.158-1064.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS Sec. 1064.201. BUDGET Sec. 1064.202. NOTICE; HEARING; ADOPTION OF BUDGET Sec. 1064.203. AMENDMENTS TO BUDGET Sec. 1064.204. RESTRICTION ON EXPENDITURES Sec. 1064.205. FISCAL YEAR Sec. 1064.206. AUDIT Sec. 1064.207. INSPECTION OF AUDIT AND DISTRICT

RECORDS Sec. 1064.208. FINANCIAL REPORT Sec. 1064.209. DEPOSITORY Sec. 1064.210. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1064.211-1064.250 reserved for expansion]

SUBCHAPTER F. BONDS Sec. 1064.251. GENERAL OBLIGATION BONDS, CERTIFICATES

OF OBLIGATION, AND OTHER FINANCING Sec. 1064.252. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1064.253. GENERAL OBLIGATION BOND ELECTION Sec. 1064.254. REVENUE BONDS Sec. 1064.255. REFUNDING BONDS Sec. 1064.256. MATURITY OF BONDS Sec. 1064.257. EXECUTION OF BONDS Sec. 1064.258. BONDS EXEMPT FROM TAXATION

[Sections 1064.259-1064.300 reserved for expansion]

SUBCHAPTER G. TAXES Sec. 1064.301. IMPOSITION OF AD VALOREM TAX Sec. 1064.302. TAX RATE Sec. 1064.303. ASSESSMENT AND COLLECTION OF TAXES IN

SAME MANNER AS COUNTY Sec. 1064.304. ASSESSMENT AND COLLECTION BY DISTRICT

TAX ASSESSOR-COLLECTOR

CHAPTER 1064. MOORE COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1064.001. 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 Moore County Hospital District. (New.)

Sec. 1064.002. AUTHORITY FOR OPERATION. The Moore County Hospital District operates in accordance with Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties provided by this chapter. (Acts 61st Leg., R.S., Ch. 287, Sec. 1 (part).)

Sec. 1064.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 61st Leg., R.S., Ch. 287, Sec. 21 (part).)

Sec. 1064.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Moore County, Texas, unless the boundaries are expanded under Subchapter D. (Acts 61st Leg., R.S., Ch. 287, Secs. 1 (part), 1A (part).)

Sec. 1064.005. CORRECTION OF INVALID PROCEDURES. If a court holds that any procedure under this chapter violates the constitution of this state or of the United States, the district by resolution may provide an alternative procedure that conforms with the constitution. (Acts 61st Leg., R.S., Ch. 287, Sec. 22 (part).)

Sec. 1064.006. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. The support and maintenance of the district may not become a charge against or obligation of this state. (Acts 61st Leg., R.S., Ch. 287, Sec. 20 (part).)

Sec. 1064.007. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 61st Leg., R.S., Ch. 287, Sec. 20 (part).)

[Sections 1064.008-1064.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1064.051. DEFINITION. In this subchapter, "medical staff" means physicians who:

(1) are licensed to practice medicine in this state; and

(2) hold medical staff privileges granted by the district. (Acts 61st Leg., R.S., Ch. 287, Sec. 4(a).)

Sec. 1064.052. BOARD; TERM. (a) The board consists of seven directors, appointed as follows:

(1) six directors appointed by the Commissioners Court of Moore County; and

(2) one director appointed by the medical staff of the district's hospital in accordance with procedures prescribed by the directors appointed under Subdivision (1).

(b) The director appointed under Subsection (a)(2) must be a member of the medical staff of the district's hospital. If the director is no longer a member of the medical staff, the person vacates the position.

(c) Directors appointed under Subsection (a)(1) serve staggered three-year terms. The director appointed under Subsection (a)(2) serves a two-year term. (Acts 61st Leg., R.S., Ch. 287, Secs. 4(b), (c), (d); Acts 76th Leg., R.S., Ch. 1091, Sec. 11(c).)

Sec. 1064.053. QUALIFICATIONS FOR OFFICE. (a) A person may not be appointed as a director unless the person is:

(1) a district resident; and

(2) a qualified voter.

(b) Except as provided by Section 1064.052(a)(2), a person is not eligible to serve as a director if the person is:

(1) a district administrator;

(2) a district employee; or

(3) a member of the medical staff. (Acts 61st Leg., R.S., Ch. 287, Sec. 4(f).)

Sec. 1064.054. BOARD VACANCY. If a vacancy occurs in the office of a director, the entity that appointed the vacating director shall appoint a director for the unexpired term. (Acts 61st Leg., R.S., Ch. 287, Sec. 4(e).)

Sec. 1064.055. OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

(c) The board shall fill a vacancy in a board office for the unexpired term. (Acts 61st Leg., R.S., Ch. 287, Sec. 4(g) (part).)

Sec. 1064.056. COMPENSATION; EXPENSES. A director or officer serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties. The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 61st Leg., R.S., Ch. 287, Sec. 4(g) (part).)

Sec. 1064.057. VOTING REQUIREMENT. A concurrence of four directors is sufficient in any matter relating to district business. (Acts 61st Leg., R.S., Ch. 287, Sec. 4(g) (part).)

Sec. 1064.058. ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The board shall appoint a qualified person as district administrator.

(b) The board may appoint an assistant administrator.

(c) The 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 $500,000 that:

(1) is conditioned on the administrator performing the administrator's duties; and

(2) contains any other conditions the board requires. (Acts 61st Leg., R.S., Ch. 287, Sec. 5 (part).)

Sec. 1064.059. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to any limitations prescribed by the board, the district administrator shall:

(1) supervise the work and activities of the district; and

(2) direct the affairs of the district. (Acts 61st Leg., R.S., Ch. 287, Sec. 5 (part).)

Sec. 1064.060. APPOINTMENT OF STAFF; EMPLOYEES. (a) The board may appoint doctors to the staff as the board considers necessary for the efficient operation of the district and may make temporary appointments to the staff if warranted.

(b) The board may employ physicians or other health care providers as the board considers necessary for the efficient operation of the district.

(c) The district may employ fiscal agents, accountants, architects, and attorneys as the board considers proper.

(d) The board may delegate to the district administrator the authority to employ technicians, nurses, and other district employees, except physicians.

(e) This section does not authorize the board to supervise or control the practice of medicine, as prohibited by Subtitle B, Title 3, Occupations Code. (Acts 61st Leg., R.S., Ch. 287, Secs. 5 (part), 16.)

Sec. 1064.061. SENIORITY; RETIREMENT BENEFITS. The board may:

(1) adopt rules related to the seniority of district employees, including rules for a retirement plan based on seniority; and

(2) give effect to previous years of service for a district employee continuously employed in the operation or management of hospital facilities:

(A) constructed by the district; or

(B) acquired by the district, including facilities acquired when the district was created. (Acts 61st Leg., R.S., Ch. 287, Sec. 5 (part).)

[Sections 1064.062-1064.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1064.101. DISTRICT RESPONSIBILITY. The district has full responsibility for providing hospital care for the district's indigent residents. (Acts 61st Leg., R.S., Ch. 287, Sec. 19 (part).)

Sec. 1064.102. 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 61st Leg., R.S., Ch. 287, Sec. 19 (part).)

Sec. 1064.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the hospital system and the district's money and resources. (Acts 61st Leg., R.S., Ch. 287, Sec. 5 (part).)

Sec. 1064.104. HOSPITAL SYSTEM; ANCILLARY HEALTH CARE SERVICES SYSTEM. (a) The district shall provide for the establishment of a hospital system by:

(1) purchasing, constructing, acquiring, repairing, or renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the buildings and equipment for hospital purposes.

(b) The hospital system may include:

(1) facilities for domiciliary care and treatment of the sick or injured;

(2) facilities for outpatient clinics;

(3) dispensaries;

(4) facilities for geriatric domiciliary care;

(5) convalescent home facilities;

(6) necessary nurses' domiciliaries and training centers;

(7) blood banks;

(8) community mental health centers;

(9) research centers or laboratories; and

(10) any other facilities the board considers necessary for hospital care. (Acts 61st Leg., R.S., Ch. 287, Secs. 2 (part), 9 (part).)

Sec. 1064.105. RULES. The board may adopt rules governing the operation of the hospital, the hospital system, and the district's staff and employees. (Acts 61st Leg., R.S., Ch. 287, Sec. 5 (part).)

Sec. 1064.106. PURCHASING AND ACCOUNTING PROCEDURES. The board may prescribe:

(1) the method and manner of making purchases and expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 61st Leg., R.S., Ch. 287, Sec. 10 (part).)

Sec. 1064.107. 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.

(d) The district may sell or otherwise dispose of any property, including equipment, on terms the board finds are in the best interest of the district's inhabitants. (Acts 61st Leg., R.S., Ch. 287, Secs. 9 (part), 10 (part).)

Sec. 1064.108. 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 petition for review. (Acts 61st Leg., R.S., Ch. 287, Sec. 14.)

Sec. 1064.109. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district. (Acts 61st Leg., R.S., Ch. 287, Sec. 18 (part).)

Sec. 1064.110. CONSTRUCTION AND PURCHASE CONTRACTS. (a) A construction or purchase contract that involves the expenditure of more than $15,000 may be made only after advertising in the manner provided by Subchapter B, Chapter 271, Local Government Code.

(b) Section 271.059, Local Government Code, relating to performance and payment bonds, applies to construction contracts let by the district. (Acts 61st Leg., R.S., Ch. 287, Sec. 10 (part).)

Sec. 1064.111. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to a district facility. (Acts 61st Leg., R.S., Ch. 287, Sec. 9 (part).)

Sec. 1064.112. CONTRACTS FOR CERTAIN SERVICES. The board may contract with any state, the United States, an agency or political subdivision of those entities, or a charitable or other private entity inside or outside the district for the district to:

(1) furnish a mobile emergency medical service; or

(2) provide for the investigatory or welfare needs of district inhabitants or of persons for whom the public or private entity has an obligation to provide care. (Acts 61st Leg., R.S., Ch. 287, Sec. 5A(c).)

Sec. 1064.113. CONTRACTS FOR HEALTH CARE. The board may contract with any public or private entity, including a charitable organization or a political subdivision, to provide health care or related services inside or outside the district. (Acts 61st Leg., R.S., Ch. 287, Sec. 5 (part).)

Sec. 1064.114. 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 patient's care and treatment in the hospital, the amount of the costs that cannot be paid becomes a charge against the district.

(c) If the district administrator determines that the patient or those relatives can pay for all or part of the costs of the patient's care and treatment, the patient or those relatives shall be ordered to pay the district a specified amount each week for the patient's care and support. The amount ordered must be proportionate to the person's financial ability.

(d) The district administrator may collect the amount from the patient's estate, or from any relative who is legally liable for the patient's support, in the manner provided by law for the collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt in the mind of the district administrator, the board shall hold a hearing and, after calling witnesses, shall:

(1) determine the patient's ability to pay; and

(2) issue any appropriate orders.

(f) The final order may be appealed to the district court. The substantial evidence rule applies to the appeal. (Acts 61st Leg., R.S., Ch. 287, Sec. 17(a).)

Sec. 1064.115. REIMBURSEMENT FOR SERVICES. (a) The board shall require a county, municipality, or public hospital located outside the district to reimburse the district for the district's care and treatment of a sick or injured person of that county, municipality, or public hospital as provided by Chapter 61, Health and Safety Code.

(b) The board shall require the sheriff of Moore County to reimburse the district for the district's care and treatment of a person confined in a Moore County jail facility who is not indigent and does not reside in the district.

(c) The board shall require the police department of a municipality located in Moore County to reimburse the district for the district's care and treatment of a person confined in a jail facility of that municipality who is not indigent and does not reside in the district.

(d) The board may contract with this or any other state, the United States, or an agency or political subdivision of those entities to reimburse the district for the care and treatment of a sick or injured person. (Acts 61st Leg., R.S., Ch. 287, Secs. 5A(a), (b).)

Sec. 1064.116. SALE OR LEASE OF HOSPITAL. (a) In this section, "long-term lease" means a lease for a term that exceeds 10 years.

(b) The board may not sell a hospital owned and operated by the district, including real property, or lease the hospital under a long-term lease that relinquishes control of the hospital to the lessee unless:

(1) the agreement for the sale or lease of the hospital provides for indigent care in the district;

(2) in the event of a sale of the hospital, the board has published notice of the proposed sale twice in a newspaper with general circulation in Moore County, with the first publication occurring not later than the 61st day before the date of the proposed sale, and the second publication occurring not earlier than the 30th day or later than the eighth day before the date of the proposed sale; and

(3) the majority of the votes cast by district voters at an election held for that purpose approve the sale or lease, as appropriate.

(c) Notice required by Subsection (b)(2) must include the:

(1) date of the proposed sale;

(2) name and address of the proposed buyer; and

(3) proposed purchase price. (Acts 61st Leg., R.S., Ch. 287, Sec. 25.)

Sec. 1064.117. AUTHORITY TO SUE AND BE SUED. (a) The district, through the board, may sue and be sued.

(b) The district is entitled to all causes of action and defenses to which similar authorities are entitled. (Acts 61st Leg., R.S., Ch. 287, Sec. 5 (part).)

[Sections 1064.118-1064.150 reserved for expansion]

SUBCHAPTER D. CHANGE IN BOUNDARIES

Sec. 1064.151. TERRITORY THAT MAY BE ANNEXED. (a) The district may annex territory that is not located in:

(1) Moore County;

(2) the boundaries of another hospital district; or

(3) the proposed boundaries of another hospital district authorized by the legislature under Section 9, Article IX, Texas Constitution.

(b) Territory may be annexed in one or more tracts. Each tract must be contiguous to:

(1) the district; or

(2) territory proposed to be annexed to the district. (Acts 61st Leg., R.S., Ch. 287, Sec. 1A (part).)

Sec. 1064.152. PETITION TO ANNEX TERRITORY. (a) A petition requesting that territory be annexed to the district may be presented to the board. The petition must:

(1) describe the tract or tracts of land to be annexed; and

(2) be signed by 100 or a majority of the registered voters who:

(A) reside in the territory to be annexed; and

(B) own property that will be subject to district taxation.

(b) This chapter does not prohibit simultaneous action on several petitions for annexation. Each ballot proposition must be submitted for each different territory proposed to be annexed, and an election held in each territory represented by a petition.

(c) If the board receives two or more petitions for annexation that include all or part of the same territory to be annexed to the district, the petition filed first with the board shall be considered and another petition that includes any of the same territory has no effect.

(d) The board may consider all petitions for annexation presented to it and may approve or reject each petition. The board may not partly approve or partly reject any petition. (Acts 61st Leg., R.S., Ch. 287, Sec. 1A (part).)

Sec. 1064.153. ELECTION ORDER. (a) If, on receipt of a petition under Section 1064.152, the board finds that annexing the territory is in the district's best interest, the board shall within 90 days of the board's finding:

(1) approve the petition; and

(2) order an election on the question of annexing the territory to the district.

(b) The election order shall provide for a separate election:

(1) in the territory proposed to be annexed; and

(2) in the district.

(c) The election order shall provide for clerks as in county elections and must specify:

(1) the date of the election;

(2) the location of the polling places;

(3) the form of ballot; and

(4) the presiding judge and alternate judge for each polling place.

(d) The election order may provide that:

(1) the entire district is one election precinct; or

(2) the county election precincts be combined for the election. (Acts 61st Leg., R.S., Ch. 287, Secs. 1A (part), 3(a) (part).)

Sec. 1064.154. BALLOT. The ballot for the election shall be printed to permit voting for or against the proposition: "The establishment of the Moore County Hospital District with extended boundaries and establishment of a hospital district tax at a rate not to exceed 75 cents on the $100 valuation on all taxable property in the extended boundaries of the hospital district that is subject to hospital district taxation for hospital purposes." (Acts 61st Leg., R.S., Ch. 287, Sec. 1A (part).)

Sec. 1064.155. NOTICE OF ELECTION. (a) Notice of the election shall be given by publishing once a week for two consecutive weeks a substantial copy of the election order in a newspaper or newspapers that individually or collectively have general circulation in the county or district.

(b) The first publication must appear at least 30 days before the date of the election. (Acts 61st Leg., R.S., Ch. 287, Secs. 1A (part), 3(a) (part).)

Sec. 1064.156. ELECTION RESULTS. (a) Territory may not be annexed to the district unless:

(1) an election is held in accordance with this subchapter; and

(2) the annexation is approved by a majority of the voters voting in the election in:

(A) the district; and

(B) the territory proposed to be annexed.

(b) If the territory is annexed to the district, a certified copy of the order canvassing the returns of the election shall be filed and recorded in the deed records.

(c) An election may not be held under this subchapter within 12 months of an election previously held under this subchapter. (Acts 61st Leg., R.S., Ch. 287, Secs. 1A (part), 3(a) (part).)

Sec. 1064.157. EFFECT OF ANNEXATION. (a) Territory annexed to the district is part of the district for all purposes.

(b) The annexation of territory to the district does not change the manner in which the board or district officers are selected. (Acts 61st Leg., R.S., Ch. 287, Sec. 1A (part).)

[Sections 1064.158-1064.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 1064.201. BUDGET. (a) The district administrator shall prepare an annual budget for approval by the board.

(b) The proposed budget must contain a complete financial statement of:

(1) the outstanding obligations of the district;

(2) the cash on hand in each district fund;

(3) the money received by the district from all sources during the previous year;

(4) the money available to the district from all sources during the ensuing year;

(5) the balances expected at the end of the year in which the budget is being prepared;

(6) the estimated revenue and balances available to cover the proposed budget;

(7) the estimated tax rate required; and

(8) the proposed expenditures and disbursements and the estimated receipts and collections for the following fiscal year. (Acts 61st Leg., R.S., Ch. 287, Sec. 6 (part).)

Sec. 1064.202. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The board shall hold a public hearing on the proposed annual budget.

(b) At least 10 days before the date of the hearing, notice of the hearing shall be published one time in a newspaper or newspapers that individually or collectively have general circulation in the district.

(c) Any 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, in the board's sole judgment and discretion:

(1) applicable federal and state law warrants and allows; and

(2) the interest of district residents requires in furtherance of hospital purposes. (Acts 61st Leg., R.S., Ch. 287, Sec. 6 (part).)

Sec. 1064.203. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. (Acts 61st Leg., R.S., Ch. 287, Sec. 6 (part).)

Sec. 1064.204. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the budget or an amendment to the budget. (Acts 61st Leg., R.S., Ch. 287, Sec. 6 (part).)

Sec. 1064.205. FISCAL YEAR. The district operates according to a fiscal year that begins on July 1 and ends on June 30. (Acts 61st Leg., R.S., Ch. 287, Sec. 6 (part).)

Sec. 1064.206. AUDIT. (a) The district shall have an independent audit made of the district's financial condition for the fiscal year.

(b) As soon as the audit is completed, the audit shall be filed at the district's office. (Acts 61st Leg., R.S., Ch. 287, Sec. 6 (part).)

Sec. 1064.207. INSPECTION OF AUDIT AND DISTRICT RECORDS. The audit and other district records shall be open to inspection at the district's principal office. (Acts 61st Leg., R.S., Ch. 287, Sec. 6 (part).)

Sec. 1064.208. FINANCIAL REPORT. As soon as practicable after the close of each fiscal year, the district administrator shall prepare for the board:

(1) a complete sworn statement of all district money; and

(2) a complete account of the disbursements of that money. (Acts 61st Leg., R.S., Ch. 287, Sec. 6 (part).)

Sec. 1064.209. DEPOSITORY. (a) The board shall select one or more depositories for district money.

(b) District money, other than money invested as provided by Section 1064.210(b), and money transmitted to a bank for payment of bonds or obligations issued or assumed by the district, shall be deposited as received with the depository and shall remain on deposit.

(c) This chapter, including Subsection (b), does not limit the power of the board to:

(1) place a part of district money on time deposit or other forms of deposit; or

(2) purchase certificates of deposit. (Acts 61st Leg., R.S., Ch. 287, Sec. 11.)

Sec. 1064.210. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as otherwise provided by Section 1064.107(c) and by Subchapter F, the district may not incur an obligation payable from district revenue other than the revenue on hand or to be on hand in the current and following district fiscal years.

(b) The board may invest operating, depreciation, or building fund reserves only in any funds or securities authorized by law, including Chapter 2256, Government Code. (Acts 61st Leg., R.S., Ch. 287, Secs. 5 (part), 10 (part).)

[Sections 1064.211-1064.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec. 1064.251. GENERAL OBLIGATION BONDS, CERTIFICATES OF OBLIGATION, AND OTHER FINANCING. The board may issue and sell general obligation bonds, certificates of obligation, or any other type of financing authorized by the laws of this state, including that type of financing authorized by Chapter 271, Local Government Code, in the name and on the faith and credit of the district for any purpose relating to:

(1) the purchase, construction, acquisition, repair, or renovation of buildings or improvements; and

(2) equipping buildings or improvements for hospital purposes. (Acts 61st Leg., R.S., Ch. 287, Sec. 7(a) (part).)

Sec. 1064.252. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued under Section 1064.251, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature.

(b) The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed the tax rate approved by the voters at the election authorizing the imposition of the tax. (Acts 61st Leg., R.S., Ch. 287, Sec. 7(a) (part).)

Sec. 1064.253. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

(b) The order calling the election shall provide for clerks as in county elections and must specify:

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding and alternate election judges for each polling place;

(4) the amount of the bonds to be authorized;

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

(6) the maximum maturity of the bonds.

(c) Notice of a bond election shall be given as provided by Section 1251.003, Government Code. (Acts 61st Leg., R.S., Ch. 287, Sec. 7(a) (part).)

Sec. 1064.254. 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, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 61st Leg., R.S., Ch. 287, Sec. 8 (part).)

Sec. 1064.255. REFUNDING BONDS. (a) The board may, without an election, issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bond applied to the payment of outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness. (Acts 61st Leg., R.S., Ch. 287, Secs. 7(a) (part), (b) (part), 8 (part).)

Sec. 1064.256. MATURITY OF BONDS. District bonds must mature not later than 40 years after the date of issuance. (Acts 61st Leg., R.S., Ch. 287, Sec. 7(c) (part).)

Sec. 1064.257. EXECUTION OF BONDS. (a) The board president shall execute district bonds in the district's name.

(b) The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code. (Acts 61st Leg., R.S., Ch. 287, Sec. 7(c) (part).)

Sec. 1064.258. BONDS EXEMPT FROM TAXATION. The following are exempt from taxation by this state or a political subdivision of this state:

(1) bonds issued by the district;

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

(3) profits made in the sale of the bonds. (Acts 61st Leg., R.S., Ch. 287, Sec. 21 (part).)

[Sections 1064.259-1064.300 reserved for expansion]

SUBCHAPTER G. TAXES

Sec. 1064.301. IMPOSITION OF AD VALOREM TAX. (a) The board shall impose a tax on all property in the district subject to district taxation.

(b) The board shall impose the tax to:

(1) pay the interest on and create a sinking fund for bonds and other obligations issued or assumed by the district for hospital purposes;

(2) provide for the operation and maintenance of the district and hospital system;

(3) make improvements and additions to the hospital system; and

(4) acquire necessary sites for the hospital system by purchase, lease, or condemnation. (Acts 61st Leg., R.S., Ch. 287, Secs. 12 (part), 15 (part).)

Sec. 1064.302. TAX RATE. (a) The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district.

(b) In setting the tax rate, the board shall consider the income of the district from sources other than taxation. (Acts 61st Leg., R.S., Ch. 287, Secs. 3(b) (part), 12 (part).)

Sec. 1064.303. ASSESSMENT AND COLLECTION OF TAXES IN SAME MANNER AS COUNTY. (a) This section applies unless the board elects to have taxes assessed and collected under Section 1064.304.

(b) District taxes shall be assessed and collected in the same manner as provided by law for the assessment and collection of county taxes.

(c) The tax assessor-collector shall assess and collect taxes imposed by the district.

(d) The tax assessor-collector shall charge and deduct from payments to the district an amount as fees for assessing and collecting the taxes at a rate determined by the board. (Acts 61st Leg., R.S., Ch. 287, Sec. 15 (part).)

Sec. 1064.304. 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 before December 1 and governs the manner in which taxes are assessed and collected, until changed by a similar resolution.

(b) The board shall set for the district tax assessor-collector:

(1) the terms of employment;

(2) compensation; and

(3) the requirement for bond to assure the faithful performance of the tax assessor-collector's duties.

(c) A bond required under Subsection (b)(3) must be set in an amount of not less than $100,000. (Acts 61st Leg., R.S., Ch. 287, Sec. 15 (part).) CHAPTER 1067. MUENSTER HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1067.001. DEFINITIONS Sec. 1067.002. AUTHORITY FOR CREATION Sec. 1067.003. ESSENTIAL PUBLIC FUNCTION Sec. 1067.004. DISTRICT TERRITORY Sec. 1067.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1067.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1067.007-1067.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1067.051. BOARD ELECTION; TERM Sec. 1067.052. NOTICE OF ELECTION Sec. 1067.053. QUALIFICATIONS FOR OFFICE Sec. 1067.054. BOARD VACANCY Sec. 1067.055. OFFICERS Sec. 1067.056. COMPENSATION; EXPENSES Sec. 1067.057. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR Sec. 1067.058. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1067.059. APPOINTMENT AND RECRUITMENT OF STAFF

AND EMPLOYEES Sec. 1067.060. PERSONNEL CONTRACTS Sec. 1067.061. RETIREMENT BENEFITS

[Sections 1067.062-1067.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1067.101. DISTRICT RESPONSIBILITY Sec. 1067.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1067.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1067.104. HOSPITAL OR HOSPITAL SYSTEM Sec. 1067.105. RULES Sec. 1067.106. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1067.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1067.108. EMINENT DOMAIN Sec. 1067.109. GIFTS AND ENDOWMENTS Sec. 1067.110. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT Sec. 1067.111. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1067.112. AUTHORITY TO SUE AND BE SUED

[Sections 1067.113-1067.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1067.151. BUDGET Sec. 1067.152. NOTICE; ADOPTION OF BUDGET Sec. 1067.153. AMENDMENTS TO BUDGET Sec. 1067.154. FISCAL YEAR Sec. 1067.155. ANNUAL AUDIT Sec. 1067.156. DEPOSITORY Sec. 1067.157. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1067.158-1067.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1067.201. GENERAL OBLIGATION BONDS Sec. 1067.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1067.203. GENERAL OBLIGATION BOND ELECTION Sec. 1067.204. MATURITY OF GENERAL OBLIGATION BONDS Sec. 1067.205. EXECUTION OF GENERAL OBLIGATION BONDS Sec. 1067.206. REVENUE BONDS Sec. 1067.207. REFUNDING BONDS Sec. 1067.208. BONDS EXEMPT FROM TAXATION

[Sections 1067.209-1067.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1067.251. IMPOSITION OF AD VALOREM TAX Sec. 1067.252. TAX RATE Sec. 1067.253. TAX ASSESSOR-COLLECTOR

[Sections 1067.254-1067.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION Sec. 1067.301. DISSOLUTION; ELECTION Sec. 1067.302. NOTICE OF ELECTION Sec. 1067.303. BALLOT Sec. 1067.304. ELECTION RESULTS Sec. 1067.305. TRANSFER OR ADMINISTRATION OF ASSETS Sec. 1067.306. SALE OR TRANSFER OF ASSETS AND

LIABILITIES Sec. 1067.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES Sec. 1067.308. REPORT; DISSOLUTION ORDER

CHAPTER 1067. MUENSTER HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1067.001. 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 Muenster Hospital District. (New.)

Sec. 1067.002. AUTHORITY FOR CREATION. The Muenster Hospital District is created under the authority of Section 9, Article IX, Texas Constitution. (Acts 59th Leg., R.S., Ch. 477, Sec. 1(a).)

Sec. 1067.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 59th Leg., R.S., Ch. 477, Sec. 11 (part).)

Sec. 1067.004. DISTRICT TERRITORY. The district is composed of the territory described by Section 2a, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965. (New.)

Sec. 1067.005. 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. 477, Sec. 21 (part).)

Sec. 1067.006. 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. 477, Sec. 21 (part).)

[Sections 1067.007-1067.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1067.051. BOARD ELECTION; TERM. (a) The district consists of nine elected directors.

(b) Directors serve staggered three-year terms.

(c) An election shall be held on the uniform election date in May of each year to elect the appropriate number of directors.

(d) The election order must state the time, place, and purpose of the election. (Acts 59th Leg., R.S., Ch. 477, Sec. 4(a) (part).)

Sec. 1067.052. NOTICE OF ELECTION. Notice of an election of directors shall be published one time in a newspaper of general circulation in the area of the district in accordance with Section 4.003(a)(1), Election Code. (Acts 59th Leg., R.S., Ch. 477, Sec. 4(a) (part).)

Sec. 1067.053. QUALIFICATIONS FOR OFFICE. (a) To be eligible to serve as a director, a person must be:

(1) a resident of the district; and

(2) a qualified voter.

(b) A district employee may not serve as a director. (Acts 59th Leg., R.S., Ch. 477, Sec. 4(b) (part).)

Sec. 1067.054. 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 59th Leg., R.S., Ch. 477, Sec. 4(a) (part).)

Sec. 1067.055. OFFICERS. (a) The board shall elect a president and a vice president from among its members.

(b) The board shall appoint a secretary, who need not be a director.

(c) Each officer serves for a term of one year.

(d) The president is the chief executive officer of the district and has the same right to vote as any other director.

(e) 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. 477, Sec. 4(b) (part).)

Sec. 1067.056. COMPENSATION; EXPENSES. A director is not entitled to compensation but is entitled to reimbursement for actual expenses incurred in attending to district business. The expenses must be:

(1) reported in the district's records; and

(2) approved by the remainder of the board. (Acts 59th Leg., R.S., Ch. 477, Sec. 4(b) (part).)

Sec. 1067.057. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The board shall appoint a qualified person as district administrator.

(b) The board may appoint an assistant administrator.

(c) The district administrator and any assistant administrator serve at the will of the board and are entitled to the compensation determined by the board.

(d) The board may require the district administrator, before assuming the administrator's duties, to execute a bond payable to the district in an amount set by the board of not less than $5,000 that:

(1) is conditioned on the faithful performance of the administrator's duties; and

(2) contains other conditions the board may require.

(e) The board may pay for the bond with district money. (Acts 59th Leg., R.S., Ch. 477, Sec. 5(a) (part).)

Sec. 1067.058. 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 hospital; and

(2) direct the affairs of the district. (Acts 59th Leg., R.S., Ch. 477, Sec. 5(b) (part).)

Sec. 1067.059. APPOINTMENT AND RECRUITMENT OF STAFF AND EMPLOYEES. (a) The board, with the district administrator, may appoint to the staff any doctors the board considers necessary for the efficient operation of the district.

(b) The board may employ technicians, nurses, and other employees as considered necessary for the efficient operation of the hospital or may provide that the district administrator has the authority to admit or employ those persons.

(c) The board may spend district money to recruit physicians, nurses, and other trained medical personnel. The board may pay the tuition or other expenses of a full-time medical student or other student in a health occupation who:

(1) is enrolled in and is in good standing at an accredited medical school, college, or university; and

(2) contractually agrees to become a district employee or independent contractor in return for that assistance. (Acts 59th Leg., R.S., Ch. 477, Secs. 5(b) (part), (g).)

Sec. 1067.060. PERSONNEL CONTRACTS. (a) The board may contract to provide administrative and other personnel for the operation of the hospital facilities.

(b) The term of the contract may not exceed 25 years from the date the contract is entered. (Acts 59th Leg., R.S., Ch. 477, Sec. 5(e) (part).)

Sec. 1067.061. RETIREMENT BENEFITS. The board may provide retirement benefits for district employees by:

(1) establishing or administering a retirement program; or

(2) participating in:

(A) the Texas County and District Retirement System; or

(B) another statewide retirement system in which the district is eligible to participate. (Acts 59th Leg., R.S., Ch. 477, Sec. 5(f).)

[Sections 1067.062-1067.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1067.101. 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 59th Leg., R.S., Ch. 477, Secs. 2 (part), 20 (part).)

Sec. 1067.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision located within the district may not impose a tax or issue bonds or other obligations for hospital purposes for medical treatment of indigent persons in the district. (Acts 59th Leg., R.S., Ch. 477, Sec. 20 (part).)

Sec. 1067.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the hospital, the hospital system, and the district's business, money, and resources. (Acts 59th Leg., R.S., Ch. 477, Sec. 5(a) (part).)

Sec. 1067.104. HOSPITAL OR HOSPITAL SYSTEM. (a) The district shall provide for the establishment, administration, maintenance, operation, and financing of a hospital or hospital system in the district.

(b) The district may provide any services or facilities necessary for hospital or medical care, including:

(1) rural health clinics;

(2) outpatient clinics;

(3) nursing homes;

(4) home health care agencies;

(5) extended care facilities;

(6) assisted living or personal care facilities; and

(7) retirement, housing, and medical office buildings. (Acts 59th Leg., R.S., Ch. 477, Sec. 2 (part).)

Sec. 1067.105. 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. 477, Secs. 5(a) (part), 12 (part).)

Sec. 1067.106. 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 59th Leg., R.S., Ch. 477, Sec. 12 (part).)

Sec. 1067.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board has exclusive authority to determine the type, character, and use of facilities in the 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 and equipment. (Acts 59th Leg., R.S., Ch. 477, Secs. 5(d), (e) (part), 12 (part).)

Sec. 1067.108. 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. 477, Sec. 15.)

Sec. 1067.109. 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. 477, Sec. 18.)

Sec. 1067.110. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT. (a) The board may contract with a county or municipality located outside the district for the care and treatment of a sick or injured person of that county or municipality.

(b) The board may contract with this state or a federal agency for the treatment of a sick or injured person for whom this state or the agency is responsible. (Acts 59th Leg., R.S., Ch. 477, Sec. 5(c).)

Sec. 1067.111. PAYMENT FOR TREATMENT; PROCEDURES. (a) When an indigent patient who resides in the district is admitted to a district facility or a person who does not reside in the district is admitted as an emergency patient 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 as care for indigents.

(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 59th Leg., R.S., Ch. 477, Sec. 17.)

Sec. 1067.112. AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued. (Acts 59th Leg., R.S., Ch. 477, Sec. 5(a) (part).)

[Sections 1067.113-1067.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1067.151. BUDGET. Not later than the 30th day before the first day of each fiscal year, the board shall have an annual budget prepared for that fiscal year. (Acts 59th Leg., R.S., Ch. 477, Secs. 6(b) (part), 19(a) (part).)

Sec. 1067.152. NOTICE; ADOPTION OF BUDGET. (a) Not later than the 30th day before the first day of each fiscal year, the board shall give notice of a public hearing on the proposed budget. The notice must be published in a newspaper of general circulation in the district one time at least 10 days before the date set for the hearing.

(b) The board shall adopt a budget by acting on the budget proposed by the district administrator.

(c) The budget is effective only after adoption by the board. (Acts 59th Leg., R.S., Ch. 477, Secs. 6(b), 19(a) (part).)

Sec. 1067.153. AMENDMENTS TO BUDGET. After the annual budget is adopted, the budget may be amended on the board's approval. (Acts 59th Leg., R.S., Ch. 477, Sec. 19(a) (part).)

Sec. 1067.154. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) 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. 477, Sec. 6 (part).)

Sec. 1067.155. 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. 477, Sec. 6 (part).)

Sec. 1067.156. 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 to pay the principal of and interest on the district's outstanding bonds on or before the maturity date of the principal and interest.

(c) To the extent that money in a depository bank is not insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by law for the security of county funds.

(d) Membership on the district's board of an officer or director of a bank does not disqualify the bank from being selected as a depository bank. (Acts 59th Leg., R.S., Ch. 477, Sec. 13.)

Sec. 1067.157. AUTHORITY TO BORROW MONEY; SECURITY. (a) The board may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time the loan is made if the board declares that:

(1) money is not available to meet authorized obligations of the district; and

(2) an emergency exists.

(b) To secure a loan, the board may pledge:

(1) district revenue that is not pledged to pay the district's bonded indebtedness;

(2) district taxes to be imposed by the district during the 12-month period following the date of the pledge that are not pledged to pay the principal of or interest on district bonds; or

(3) district bonds that have been authorized but not sold.

(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. 477, Sec. 20a.)

[Sections 1067.158-1067.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1067.201. GENERAL OBLIGATION BONDS. The board may issue and sell general obligation bonds authorized by an election in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate buildings or improvements;

(2) equip buildings or improvements for hospital purposes; or

(3) acquire and operate a mobile emergency medical or air ambulance service. (Acts 59th Leg., R.S., Ch. 477, Sec. 9(b).)

Sec. 1067.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) For general obligation bonds issued under Section 1067.201, 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 in any year exceed the limit approved by the voters at the election authorizing the imposition of the tax. (Acts 59th Leg., R.S., Ch. 477, Sec. 9(a) (part).)

Sec. 1067.203. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

(b) The board may order a bond election.

(c) The order calling the election must specify:

(1) the nature and date of the election;

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

(3) the location of the polling places;

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

(5) the maximum maturity of the bonds.

(d) Notice of a bond election shall be given as provided by Section 1251.003, Government Code.

(e) The board shall declare the results of the bond election.

(f) Except as otherwise provided by this chapter, the election is governed by the general laws relating to county elections. (Acts 59th Leg., R.S., Ch. 477, Sec. 9(a) (part).)

Sec. 1067.204. MATURITY OF GENERAL OBLIGATION BONDS. District general obligation bonds must mature not later than 40 years after the date of issuance. (Acts 59th Leg., R.S., Ch. 477, Sec. 9(d) (part).)

Sec. 1067.205. 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 attest the bonds as provided by Chapter 618, Government Code. (Acts 59th Leg., R.S., Ch. 477, Sec. 9(c) (part).)

Sec. 1067.206. REVENUE BONDS. (a) The district may issue revenue bonds to:

(1) purchase, construct, acquire, repair, or renovate buildings or improvements;

(2) equip buildings or improvements for hospitals and the hospital system;

(3) acquire sites to be used for hospital purposes; or

(4) 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 on all or part of district property.

(d) The bonds must be issued in the manner provided by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 59th Leg., R.S., Ch. 477, Sec. 7.)

Sec. 1067.207. REFUNDING BONDS. (a) The board may issue refunding bonds to refund any bond issued by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bond applied to the payment of the outstanding bonds or other refundable indebtedness; or

(2) exchanged wholly or partly for not less than a similar principal amount of the outstanding bonds or other refundable indebtedness. (Acts 59th Leg., R.S., Ch. 477, Sec. 8 (part).)

Sec. 1067.208. 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 of the bonds; or

(3) bond revenue, including any profits made in the sale of the bonds. (Acts 59th Leg., R.S., Ch. 477, Sec. 11 (part).)

[Sections 1067.209-1067.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1067.251. IMPOSITION OF AD VALOREM TAX. (a) The board may impose a tax on all property in the district subject to district taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district; and

(2) the maintenance and operating expenses of the district.

(c) The board may not impose a tax to pay the principal of or interest on revenue bonds. (Acts 59th Leg., R.S., Ch. 477, Secs. 16 (part), 19(b) (part).)

Sec. 1067.252. 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. (Acts 59th Leg., R.S., Ch. 477, Sec. 16 (part).)

Sec. 1067.253. 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. 477, Sec. 16 (part).)

[Sections 1067.254-1067.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1067.301. 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. 477, Secs. 20b(a), (b), (c) (part).)

Sec. 1067.302. 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. 477, Sec. 20b(d) (part).)

Sec. 1067.303. BALLOT. The ballot for an election under this subchapter must be printed to permit voting for or against the proposition: "The dissolution of the Muenster Hospital District." (Acts 59th Leg., R.S., Ch. 477, Sec. 20b(d) (part).)

Sec. 1067.304. 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. 477, Sec. 20b(e).)

Sec. 1067.305. TRANSFER OR ADMINISTRATION OF ASSETS. (a) If a majority of the votes in an election under this subchapter favor dissolution, the board shall:

(1) transfer the land, buildings, improvements, equipment, and other assets that belong to the district to Cooke County or another governmental entity in Cooke County; or

(2) administer the property, assets, and debts until all money has been disposed of and all district debts have been paid or settled.

(b) If the board makes the transfer under Subsection (a)(1), the county or entity assumes all debts and obligations of the district at the time of the transfer, and the district is dissolved. (Acts 59th Leg., R.S., Ch. 477, Secs. 20b(f), (g).)

Sec. 1067.306. SALE OR TRANSFER OF ASSETS AND LIABILITIES. (a) Notwithstanding any other provision of this chapter, the district may not be dissolved unless the board provides for the sale or transfer of the district's assets and liabilities to another person.

(b) The dissolution of the district and the sale or transfer of the district's assets or liabilities may not contravene a trust indenture or bond resolution relating to the district's outstanding bonds. The dissolution and sale or transfer does not diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district.

(c) The sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of district residents, including the residents' collective property rights in the district's assets.

(d) The district may not transfer or dispose of the district's assets except for due compensation unless:

(1) the transfer is made to another governmental entity that serves the district; and

(2) the transferred assets are to be used for the benefit of the district's residents.

(e) A grant from federal funds is an obligation to be repaid in satisfaction. (Acts 59th Leg., R.S., Ch. 477, Secs. 20b(m), (n).)

Sec. 1067.307. 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. 477, Secs. 20b(h), (i), (j).)

Sec. 1067.308. 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 Cooke County summarizing the board's actions in dissolving the district.

(b) Not later than the 10th day after the date the Commissioners Court of Cooke 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. 477, Secs. 20b(k), (l).) CHAPTER 1072. MAVERICK COUNTY HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1072.001. DEFINITIONS Sec. 1072.002. AUTHORITY FOR CREATION Sec. 1072.003. ESSENTIAL PUBLIC FUNCTION Sec. 1072.004. DISTRICT TERRITORY Sec. 1072.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1072.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1072.007-1072.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1072.051. BOARD ELECTION; TERMS Sec. 1072.052. QUALIFICATIONS FOR OFFICE Sec. 1072.053. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE Sec. 1072.054. BOARD VACANCY Sec. 1072.055. OFFICERS Sec. 1072.056. COMPENSATION; EXPENSES Sec. 1072.057. VOTING REQUIREMENT Sec. 1072.058. DISTRICT ADMINISTRATOR Sec. 1072.059. EMPLOYMENT OF MEDICAL STAFF AND OTHER

HEALTH CARE PROVIDERS Sec. 1072.060. APPOINTMENT AND REMOVAL OF MEDICAL

STAFF Sec. 1072.061. RECRUITMENT AND RETENTION OF MEDICAL

STAFF AND PROFESSIONAL PERSONNEL Sec. 1072.062. OTHER DISTRICT EMPLOYEES Sec. 1072.063. RETIREMENT BENEFITS Sec. 1072.064. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

[Sections 1072.065-1072.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1072.101. DISTRICT RESPONSIBILITY Sec. 1072.102. ANNUAL DETERMINATION OF CARE Sec. 1072.103. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1072.104. MANAGEMENT AND CONTROL OF DISTRICT Sec. 1072.105. RULES Sec. 1072.106. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1072.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1072.108. EMINENT DOMAIN Sec. 1072.109. GIFTS AND ENDOWMENTS Sec. 1072.110. CONSTRUCTION CONTRACTS Sec. 1072.111. OPERATING AND MANAGEMENT CONTRACTS Sec. 1072.112. CONTRACTS WITH POLITICAL SUBDIVISIONS

AND MEDICAL CARE Sec. 1072.113. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1072.114. REIMBURSEMENT FOR SERVICE Sec. 1072.115. CHARITABLE ORGANIZATION Sec. 1072.116. NONPROFIT CORPORATION

[Sections 1072.117-1072.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1072.151. BUDGET Sec. 1072.152. ADOPTION OF PROPOSED BUDGET: NOTICE AND

HEARING Sec. 1072.153. FISCAL YEAR Sec. 1072.154. ANNUAL AUDIT Sec. 1072.155. DEPOSITORY Sec. 1072.156. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1072.157-1072.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1072.201. BONDS Sec. 1072.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1072.203. BOND ELECTION Sec. 1072.204. REVENUE BONDS Sec. 1072.205. REFUNDING BONDS Sec. 1072.206. MATURITY OF BONDS Sec. 1072.207. EXECUTION OF BONDS Sec. 1072.208. BONDS EXEMPT FROM TAXATION

[Sections 1072.209-1072.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1072.251. IMPOSITION OF AD VALOREM TAX Sec. 1072.252. TAX RATE Sec. 1072.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1072. MAVERICK COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1072.001. 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 Maverick County Hospital District. (New.)

Sec. 1072.002. AUTHORITY FOR CREATION. The Maverick County Hospital District is created under the authority of Section 9, Article IX, Texas Constitution. (Acts 59th Leg., R.S., Ch. 172, Sec. 1.)

Sec. 1072.003. ESSENTIAL PUBLIC FUNCTION. The district is a public entity performing an essential public function. (Acts 59th Leg., R.S., Ch. 172, Sec. 10(j) (part).)

Sec. 1072.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Maverick County. (Acts 59th Leg., R.S., Ch. 172, Sec. 2.)

Sec. 1072.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. The support and maintenance of the district's hospital system and any indebtedness incurred by the district under this chapter may not become a charge against or obligation of this state. (Acts 59th Leg., R.S., Ch. 172, Sec. 17 (part).)

Sec. 1072.006. 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. 172, Sec. 17 (part).)

[Sections 1072.007-1072.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1072.051. BOARD ELECTION; TERMS. (a) The board consists of five directors elected by district voters.

(b) Directors serve staggered four-year terms.

(c) An election shall be held on the first Tuesday after the first Monday in November of each year to elect the appropriate number of directors. (Acts 59th Leg., R.S., Ch. 172, Secs. 5(a) (part), (d), (e) (part).)

Sec. 1072.052. QUALIFICATIONS FOR OFFICE. (a) To qualify for election to the board, a person must be:

(1) a district resident; and

(2) a qualified voter.

(b) A person may not serve on the board if the person is:

(1) a party to a contract with the district to perform services for the district for compensation; or

(2) a district employee.

(c) A director is eligible for reelection to the board. (Acts 59th Leg., R.S., Ch. 172, Secs. 5(b), (c), (e) (part).)

Sec. 1072.053. 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 a director's bond.

(c) Each director's bond and constitutional oath or affirmation of office shall be deposited with the district's depository for safekeeping. (Acts 59th Leg., R.S., Ch. 172, Sec. 6(a).)

Sec. 1072.054. BOARD VACANCY. (a) If a vacancy occurs in the office of director, the remaining directors by a unanimous vote shall appoint a director for the unexpired term.

(b) The appointed director must have the qualifications required by Section 1072.052. (Acts 59th Leg., R.S., Ch. 172, Sec. 5(f).)

Sec. 1072.055. OFFICERS. The board shall elect from among its members a president, a secretary, and a treasurer at the first meeting after each directors' election. (Acts 59th Leg., R.S., Ch. 172, Sec. 6(b).)

Sec. 1072.056. COMPENSATION; EXPENSES. A director is not entitled to compensation but is entitled to reimbursement for necessary expenses incurred in the performance of official duties. (Acts 59th Leg., R.S., Ch. 172, Sec. 6(c).)

Sec. 1072.057. VOTING REQUIREMENT. A concurrence of a majority of the directors voting is sufficient in any matter relating to the business of the district. (Acts 59th Leg., R.S., Ch. 172, Sec. 5(g) (part).)

Sec. 1072.058. DISTRICT ADMINISTRATOR. (a) The board may authorize the appointment, engagement, or employment of a district administrator to manage the operations of the district.

(b) The district administrator serves at the will of the board and is subject to rules adopted by the board.

(c) The board may require that a person, before assuming the duties of district administrator, execute a bond in an amount determined by the board of not less than $10,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the person's duties as district administrator under this chapter.

(d) The board may pay for the bond with district money. (Acts 59th Leg., R.S., Ch. 172, Secs. 11(e) (part), (f), (g).)

Sec. 1072.059. EMPLOYMENT OF MEDICAL STAFF AND OTHER HEALTH CARE PROVIDERS. (a) The board may employ physicians, dentists, or other health care providers as the board considers necessary for the efficient operation of the district.

(b) This section does not authorize the board to supervise or control the practice of medicine or permit the unauthorized practice of medicine, as prohibited by Subtitle B, Title 3, Occupations Code. (Acts 59th Leg., R.S., Ch. 172, Sec. 11(k-1).)

Sec. 1072.060. APPOINTMENT AND REMOVAL OF MEDICAL STAFF. (a) The board may appoint a physician to or remove a physician from the staff of any hospital or hospital system that is a component of the district's operations as the board considers necessary for the efficient operation of the district.

(b) The board may adopt rules relating to the method of appointing or removing medical staff members, including the method for temporary appointments. (Acts 59th Leg., R.S., Ch. 172, Sec. 11(k).)

Sec. 1072.061. RECRUITMENT AND RETENTION OF MEDICAL STAFF AND PROFESSIONAL PERSONNEL. The board may, consistent with applicable federal and state laws, recruit and retain physicians, nurses, technicians, and other professional personnel through:

(1) scholarship programs;

(2) agreements for future services;

(3) shared personnel;

(4) bonuses; and

(5) any other method the board determines necessary. (Acts 59th Leg., R.S., Ch. 172, Sec. 11(l).)

Sec. 1072.062. OTHER DISTRICT EMPLOYEES. (a) The board may authorize the employment of persons necessary for the efficient operation of the district.

(b) An employee serves at the will of the board and is subject to rules adopted by the board. (Acts 59th Leg., R.S., Ch. 172, Secs. 11(e) (part), (f).)

Sec. 1072.063. RETIREMENT BENEFITS. The board may provide retirement benefits for district employees by:

(1) establishing or administering a retirement program; or

(2) participating in:

(A) the Texas County and District Retirement System; or

(B) another statewide retirement system in which the district is eligible to participate. (Acts 59th Leg., R.S., Ch. 172, Sec. 11(m).)

Sec. 1072.064. 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. 172, Sec. 11(b).)

[Sections 1072.065-1072.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1072.101. DISTRICT RESPONSIBILITY. (a) The district has the responsibility of undertaking any measure, consistent with Section 9, Article IX, Texas Constitution, and this chapter, that the board determines is necessary to provide hospital and medical care to the district's needy residents.

(b) The district shall undertake any measure, consistent with Section 9, Article IX, Texas Constitution, and this chapter, that the board determines is necessary to provide hospital and medical care for the district's needy inhabitants. (Acts 59th Leg., R.S., Ch. 172, Sec. 3 (part), as amended Acts 79th Leg., R.S., Chs. 1237, 1351.)

Sec. 1072.102. ANNUAL DETERMINATION OF CARE. The board, based on the estimated amount of revenue and balances available to cover the proposed annual budget for the district, may annually determine the type and extent of hospital and medical care services offered by the district. (Acts 59th Leg., R.S., Ch. 172, Sec. 11(n), as amended Acts 79th Leg., R.S., Chs. 1237, 1351.)

Sec. 1072.103. 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. 172, Sec. 3 (part), as amended Acts 79th Leg., R.S., Chs. 1237, 1351.)

Sec. 1072.104. 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. 172, Secs. 5(a) (part), 11(a) (part).)

Sec. 1072.105. RULES. (a) The board shall adopt rules for the efficient operation of the district, including district facilities.

(b) The board shall:

(1) publish the rules in book form; and

(2) provide copies to interested persons on request at district expense. (Acts 59th Leg., R.S., Ch. 172, Sec. 11(c).)

Sec. 1072.106. PURCHASING AND ACCOUNTING PROCEDURES. The board may prescribe the method of making purchases and expenditures and the manner of accounting and control used by the district. (Acts 59th Leg., R.S., Ch. 172, Sec. 11(e) (part).)

Sec. 1072.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) 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.

(b) 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.

(c) 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. 172, Secs. 11(o), (p).)

Sec. 1072.108. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in real, personal, or mixed property located in district territory if the interest is necessary or convenient for the district to exercise a power or duty conferred on the district by this chapter.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, except the district is not required to deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code.

(c) In a condemnation proceeding, the district is not required to:

(1) pay in advance or provide a bond or other security for costs in the trial court; or

(2) provide a bond for costs or a supersedeas bond on an appeal or petition for review. (Acts 59th Leg., R.S., Ch. 172, Sec. 14.)

Sec. 1072.109. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management of the district. (Acts 59th Leg., R.S., Ch. 172, Sec. 11(h).)

Sec. 1072.110. CONSTRUCTION CONTRACTS. (a) The board may enter into construction contracts for the district.

(b) A construction contract awarded by the district that involves the expenditure of more than the amount provided by Section 271.024, Local Government Code, must be competitively bid as provided by Subchapter B, Chapter 271, Local Government Code. (Acts 59th Leg., R.S., Ch. 172, Sec. 11(q) (part).)

Sec. 1072.111. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to hospital services or medical care the district is authorized to provide. (Acts 59th Leg., R.S., Ch. 172, Sec. 11(r).)

Sec. 1072.112. CONTRACTS WITH POLITICAL SUBDIVISIONS OR GOVERNMENT AGENCIES FOR HOSPITAL AND MEDICAL CARE. The board may contract with a municipality or other political subdivision or a state or federal agency to provide hospital and medical care for needy persons who reside outside the district. (Acts 59th Leg., R.S., Ch. 172, Sec. 11(i).)

Sec. 1072.113. PAYMENT FOR TREATMENT; PROCEDURES. (a) A person who resides in the district is entitled to receive necessary medical and hospital care regardless of whether the person has the ability to pay for the care and may apply to receive this care without cost.

(b) The board or the district administrator shall employ a person to investigate the ability of the patient and any relative who is liable for the patient's support to pay for the medical and hospital care received by the patient.

(c) If the district determines that the patient or relative legally liable for the patient's support cannot pay all or part of the costs of the patient's care, the expense of the care becomes a charge against the district.

(d) If the patient or a relative legally liable for the patient's support can pay for all or part of the costs of the patient's care, the board shall order the patient or relative to pay to the district each week an amount specified in the order. The amount must be proportionate to the person's ability to pay.

(e) The district administrator may collect the amount from the patient's estate, or from any relative who is liable for the patient's support, in the manner provided by law for the collection of expenses of the last illness of a deceased person.

(f) If there is a dispute as to the ability to pay, the board shall hold a hearing and, after calling witnesses, shall:

(1) determine the question; and

(2) make the proper order based on the board's findings.

(g) A party to the hearing who is not satisfied with the result of the order may appeal to the district court. The substantial evidence rule applies to the appeal. (Acts 59th Leg., R.S., Ch. 172, Sec. 13.)

Sec. 1072.114. REIMBURSEMENT FOR SERVICE. (a) The board shall require a county, municipal, or other public hospital located outside the district to reimburse the district for the district's care and treatment of a patient of that hospital as provided by Chapter 61, Health and Safety Code.

(b) The board shall require the sheriff of Maverick County or the police chief of a municipality in the district to reimburse the district for the district's care and treatment of a person who is confined in a jail facility of the county or municipality and is not a resident of the district. (Acts 59th Leg., R.S., Ch. 172, Sec. 11(j).)

Sec. 1072.115. CHARITABLE ORGANIZATION. (a) In this section, "charitable organization" means an organization that is exempt from federal income tax under Section 501(a) of the Internal Revenue Code of 1986 by being listed as an exempt organization in Section 501(c)(3) or 501(c)(4) of the code.

(b) The board may facilitate the achievement of district purposes by creating a charitable organization to:

(1) provide or arrange for hospital and health care services;

(2) develop resources for hospital and health care services; and

(3) provide ancillary support services for the district.

(c) A charitable organization created under this section is a unit of local government for purposes of Chapter 101, Civil Practice and Remedies Code. (Acts 59th Leg., R.S., Ch. 172, Secs. 11(s), (u).)

Sec. 1072.116. NONPROFIT CORPORATION. (a) The board, on the district's behalf, may create and sponsor a nonprofit corporation under the Business Organizations Code and may contribute money to or solicit money for the corporation.

(b) The corporation may use money, 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 adequate controls to ensure that the corporation uses its money as required by this section. (Acts 59th Leg., R.S., Ch. 172, Sec. 11(t).)

[Sections 1072.117-1072.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1072.151. BUDGET. The district administrator shall prepare a proposed 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. 172, Sec. 12(b).)

Sec. 1072.152. ADOPTION OF PROPOSED BUDGET: NOTICE AND HEARING. (a) The board shall hold a public hearing on the proposed budget.

(b) Notice of the hearing must be published at least once in a newspaper of general circulation in the district not later than the 10th day before the date of the hearing.

(c) Any district resident is entitled to:

(1) appear at the hearing; and

(2) be heard regarding any item in the proposed budget.

(d) At the conclusion of the hearing, the board shall adopt a budget for the district that includes any changes to the proposed budget that the board determines are in the best interest of the district. (Acts 59th Leg., R.S., Ch. 172, Secs. 12(c), (d), (e).)

Sec. 1072.153. FISCAL YEAR. The district's fiscal year is from September 1 through August 31. (Acts 59th Leg., R.S., Ch. 172, Sec. 12(a).)

Sec. 1072.154. ANNUAL AUDIT. (a) The board annually shall require an independent audit of the district's books and records.

(b) Not later than January 1 of each year, the board shall:

(1) file a copy of the audit with the district; and

(2) provide a copy of the audit at each public library located in the district. (Acts 59th Leg., R.S., Ch. 172, Sec. 11(d).)

Sec. 1072.155. DEPOSITORY. (a) The board by resolution shall designate a bank in Maverick County as the district's depository. A designated bank serves for two years and until a successor is designated.

(b) All district money shall be deposited in the depository and secured in the manner provided for securing county funds. (Acts 59th Leg., R.S., Ch. 172, Sec. 15.)

Sec. 1072.156. 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 59th Leg., R.S., Ch. 172, Sec. 11A.)

[Sections 1072.157-1072.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1072.201. 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. 172, Sec. 9(a) (part).)

Sec. 1072.202. TAX TO PAY GENERAL OBLIGATION BONDS. The board may issue general obligation bonds 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. 172, Sec. 10(b).)

Sec. 1072.203. BOND ELECTION. (a) The board may issue general obligation bonds only if the bonds are authorized by a majority of district voters voting in an election held for that purpose.

(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 ballot;

(4) the presiding judge for each polling place;

(5) the purpose of the bond issuance;

(6) the amount of the bonds to be authorized;

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

(8) the maximum maturity of the bonds.

(d) A substantial copy of the election order shall be published in a newspaper of general circulation in the district once a week for two consecutive weeks before the date of the election. The first notice must be published at least 14 days before the date of the election.

(e) A copy of the election results must be filed with the county clerk and become a public record. (Acts 59th Leg., R.S., Ch. 172, Secs. 4(c), (d), (e) (part), 9(a) (part), (b), (d) (part).)

Sec. 1072.204. REVENUE BONDS. (a) The district may issue revenue bonds to:

(1) acquire, construct, repair, renovate, or equip buildings or improvements for hospital purposes; or

(2) acquire real property for district purposes.

(b) The bonds must be payable from and secured by a pledge of all or part of the revenue derived from the operation of the district's hospital system.

(c) The bonds must be issued in the manner provided by Sections 264.042, 264.043, 264.044, 264.045, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 59th Leg., R.S., Ch. 172, Secs. 10(d), (e), (f).)

Sec. 1072.205. 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 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 59th Leg., R.S., Ch. 172, Sec. 10(g) (part).)

Sec. 1072.206. MATURITY OF BONDS. District bonds must mature not later than 50 years after the date of issuance. (Acts 59th Leg., R.S., Ch. 172, Sec. 9(c) (part).)

Sec. 1072.207. EXECUTION OF BONDS. (a) The board president shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds. (Acts 59th Leg., R.S., Ch. 172, Sec. 10(a) (part).)

Sec. 1072.208. 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 59th Leg., R.S., Ch. 172, Sec. 10(j) (part).)

[Sections 1072.209-1072.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1072.251. 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;

(4) acquire sites for additions to the hospital system; and

(5) pay the indebtedness issued or assumed by the district. (Acts 59th Leg., R.S., Ch. 172, Secs. 8(a) (part), (c).)

Sec. 1072.252. TAX RATE. The board may impose the tax at a rate not to exceed 50 cents on each $100 valuation of all taxable property in the district. (Acts 59th Leg., R.S., Ch. 172, Sec. 8(a) (part).)

Sec. 1072.253. TAX ASSESSOR-COLLECTOR. The tax assessor-collector for Maverick County shall collect taxes for the district. (Acts 59th Leg., R.S., Ch. 172, Sec. 8(d) (part).) CHAPTER 1073. NORTH RUNNELS COUNTY HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1073.001. DEFINITIONS Sec. 1073.002. AUTHORITY FOR CREATION Sec. 1073.003. ESSENTIAL PUBLIC FUNCTION Sec. 1073.004. DISTRICT TERRITORY Sec. 1073.005. CORRECTION OF INVALID PROCEDURES Sec. 1073.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1073.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1073.008-1073.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1073.051. BOARD ELECTION; TERM Sec. 1073.052. NOTICE OF ELECTION Sec. 1073.053. QUALIFICATIONS FOR OFFICE Sec. 1073.054. BOND Sec. 1073.055. BOARD VACANCY Sec. 1073.056. OFFICERS Sec. 1073.057. COMPENSATION; EXPENSES Sec. 1073.058. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR Sec. 1073.059. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1073.060. APPOINTMENT, DISMISSAL, AND RECRUITMENT

OF STAFF AND EMPLOYEES Sec. 1073.061. PERSONNEL CONTRACTS Sec. 1073.062. SENIORITY Sec. 1073.063. RETIREMENT BENEFITS

[Sections 1073.064-1073.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1073.101. DISTRICT RESPONSIBILITY Sec. 1073.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1073.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1073.104. HOSPITAL SYSTEM Sec. 1073.105. RULES Sec. 1073.106. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1073.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1073.108. EMINENT DOMAIN Sec. 1073.109. GIFTS AND ENDOWMENTS Sec. 1073.110. OPERATING AND MANAGEMENT CONTRACTS Sec. 1073.111. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR HOSPITALIZATION AND TREATMENT Sec. 1073.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES Sec. 1073.113. BIDDING REQUIREMENTS Sec. 1073.114. PROVISION OF SERVICES OUTSIDE DISTRICT Sec. 1073.115. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1073.116. AUTHORITY TO SUE AND BE SUED

[Sections 1073.117-1073.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1073.151. BUDGET Sec. 1073.152. NOTICE; HEARING; ADOPTION OF BUDGET Sec. 1073.153. AMENDMENTS TO BUDGET Sec. 1073.154. RESTRICTION ON EXPENDITURES Sec. 1073.155. FISCAL YEAR Sec. 1073.156. ANNUAL AUDIT Sec. 1073.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS Sec. 1073.158. FINANCIAL REPORT Sec. 1073.159. DEPOSITORY Sec. 1073.160. SPENDING AND INVESTMENT RESTRICTIONS Sec. 1073.161. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1073.162-1073.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1073.201. GENERAL OBLIGATION BONDS Sec. 1073.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1073.203. GENERAL OBLIGATION BOND ELECTION Sec. 1073.204. REVENUE BONDS Sec. 1073.205. REFUNDING BONDS Sec. 1073.206. MATURITY OF BONDS Sec. 1073.207. EXECUTION OF BONDS Sec. 1073.208. BONDS EXEMPT FROM TAXATION

[Sections 1073.209-1073.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1073.251. IMPOSITION OF AD VALOREM TAX Sec. 1073.252. TAX RATE Sec. 1073.253. TAX ASSESSOR-COLLECTOR

[Sections 1073.254-1073.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION Sec. 1073.301. DISSOLUTION; ELECTION Sec. 1073.302. NOTICE OF ELECTION Sec. 1073.303. BALLOT Sec. 1073.304. ELECTION RESULTS Sec. 1073.305. TRANSFER OR ADMINISTRATION OF ASSETS Sec. 1073.306. SALE OR TRANSFER OF ASSETS AND

LIABILITIES Sec. 1073.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES Sec. 1073.308. REPORT; DISSOLUTION ORDER

CHAPTER 1073. NORTH RUNNELS COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1073.001. 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 North Runnels County Hospital District. (New.)

Sec. 1073.002. AUTHORITY FOR CREATION. The North Runnels County Hospital District is created under the authority of Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties provided by this chapter. (Acts 61st Leg., R.S., Ch. 206, Sec. 1 (part).)

Sec. 1073.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 61st Leg., R.S., Ch. 206, Sec. 23 (part).)

Sec. 1073.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of County Commissioners Precincts 2 and 3 of Runnels County as those boundaries existed on January 1, 1969. (Acts 61st Leg., R.S., Ch. 206, Sec. 1 (part).)

Sec. 1073.005. CORRECTION OF INVALID PROCEDURES. If a court holds that any procedure under this chapter violates the constitution of this state or of the United States, the district by resolution may provide an alternative procedure that conforms with the constitution. (Acts 61st Leg., R.S., Ch. 206, Sec. 24 (part).)

Sec. 1073.006. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. The support and maintenance of the district may not become a charge against or obligation of this state. (Acts 61st Leg., R.S., Ch. 206, Sec. 22 (part).)

Sec. 1073.007. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 61st Leg., R.S., Ch. 206, Sec. 22 (part).)

[Sections 1073.008-1073.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1073.051. BOARD ELECTION; TERM. (a) The board consists of seven directors elected from the district.

(b) Unless four-year terms are established under Section 285.081, Health and Safety Code:

(1) directors serve two-year terms; and

(2) a directors' election shall be held on the uniform election date in May of each year.

(c) The election order must state the time, place, and purpose of the election. (Acts 61st Leg., R.S., Ch. 206, Secs. 4(a), (b) (part).)

Sec. 1073.052. 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 or newspapers that individually or collectively have general circulation in the district. (Acts 61st Leg., R.S., Ch. 206, Sec. 4(b) (part).)

Sec. 1073.053. QUALIFICATIONS FOR OFFICE. (a) A person may not be appointed as a director unless the person is:

(1) a resident of the district; and

(2) a qualified voter.

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

(1) the district administrator;

(2) a district employee; or

(3) a member of the hospital staff. (Acts 61st Leg., R.S., Ch. 206, Sec. 4(c).)

Sec. 1073.054. BOND. (a) The board may require all district officers and employees charged with handling money to furnish a good bond for not less than $5,000 that is:

(1) payable to the district;

(2) conditioned on the faithful performance of the officer's or employee's duties; and

(3) signed by a surety company authorized to do business in this state.

(b) The board may pay for the bond with district money.

(c) The district shall pay the premiums on the bond. (Acts 61st Leg., R.S., Ch. 206, Sec. 4(b) (part).)

Sec. 1073.055. BOARD VACANCY. If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term. (Acts 61st Leg., R.S., Ch. 206, Sec. 4(b) (part).)

Sec. 1073.056. OFFICERS. (a) The board shall elect a president and a vice president from among its members.

(b) The board shall appoint a secretary, who need not be a director.

(c) Each officer of the board serves for a term of one year.

(d) The board shall fill a vacancy in a board office for the unexpired term. (Acts 61st Leg., R.S., Ch. 206, Sec. 4(d) (part).)

Sec. 1073.057. COMPENSATION; EXPENSES. A director or officer serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties. The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 61st Leg., R.S., Ch. 206, Sec. 4(d) (part).)

Sec. 1073.058. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The board may appoint a qualified person as district administrator.

(b) The board may appoint one or more assistant administrators.

(c) The district administrator and any assistant administrator serve at the will of the board and are entitled to the compensation determined by the board.

(d) Before assuming the duties of district administrator, the board may require the administrator to execute a bond payable to the district in an amount set by the board of not less than $5,000 that:

(1) is conditioned on the faithful performance of the administrator's duties; and

(2) contains other conditions the board may require.

(e) The board may pay for the bond with district money. (Acts 61st Leg., R.S., Ch. 206, Sec. 5(b) (part).)

Sec. 1073.059. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to the limitations prescribed by the board, the district administrator shall:

(1) supervise the work and activities of the district; and

(2) direct the affairs of the district. (Acts 61st Leg., R.S., Ch. 206, Sec. 5(b) (part).)

Sec. 1073.060. APPOINTMENT, DISMISSAL, AND RECRUITMENT OF STAFF AND EMPLOYEES. (a) The board, with the district administrator, may appoint doctors to or dismiss doctors from the staff as considered necessary for the efficient operation of the district and may make temporary appointments as warranted.

(b) The district may employ fiscal agents, accountants, architects, and attorneys the board considers proper.

(c) The board may delegate to the district administrator the authority to hire district employees, including technicians and nurses.

(d) The board may spend district money to recruit physicians, nurses, and other trained medical personnel. 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 61st Leg., R.S., Ch. 206, Secs. 5(b) (part), (h), 18.)

Sec. 1073.061. PERSONNEL CONTRACTS. (a) The board may contract to provide administrative or other personnel for the operation of hospital facilities.

(b) The term of a contract may not exceed 25 years. (Acts 61st Leg., R.S., Ch. 206, Sec. 5(f) (part).)

Sec. 1073.062. SENIORITY. The board may:

(1) adopt rules related to the seniority of district employees, including rules for a retirement plan based on seniority; and

(2) give effect to previous years of service for district employees continuously employed in the operation or management of hospital facilities acquired or constructed by the district. (Acts 61st Leg., R.S., Ch. 206, Sec. 5(a) (part).)

Sec. 1073.063. RETIREMENT BENEFITS. The board may provide retirement benefits for district employees by:

(1) establishing or administering a retirement program; or

(2) participating in:

(A) the Texas County and District Retirement System; or

(B) another statewide retirement system in which the district is eligible to participate. (Acts 61st Leg., R.S., Ch. 206, Sec. 5(g).)

[Sections 1073.064-1073.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1073.101. DISTRICT RESPONSIBILITY. The district has full responsibility for:

(1) operating all hospital facilities for providing medical and hospital care for the district's needy inhabitants; and

(2) providing medical and hospital care for the district's needy inhabitants. (Acts 61st Leg., R.S., Ch. 206, Secs. 2 (part), 21 (part).)

Sec. 1073.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision that is located within the district or that has the same boundaries as the district may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care. (Acts 61st Leg., R.S., Ch. 206, Sec. 21 (part).)

Sec. 1073.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer:

(1) the hospital and hospital system; and

(2) the district's business, money, and resources. (Acts 61st Leg., R.S., Ch. 206, Sec. 5(a) (part).)

Sec. 1073.104. HOSPITAL SYSTEM. (a) The district shall provide for the establishment, administration, maintenance, operation, and financing of a hospital system, including any component specified by Subsection (b) or a service or facility specified by Subsection (c), by:

(1) purchasing, constructing, acquiring, repairing, or renovating buildings and equipment;

(2) equipping the buildings; and

(3) administering the system, service, or facility for hospital purposes.

(b) The hospital system may include:

(1) a medical care system;

(2) rural health clinics;

(3) outpatient clinics and facilities for outpatient clinics;

(4) nursing homes;

(5) home health services;

(6) facilities for domiciliary care of the sick, injured, or geriatric;

(7) pharmacies;

(8) convalescent home facilities;

(9) necessary nurses domiciliaries and training centers;

(10) blood banks;

(11) community mental health centers;

(12) research centers or laboratories; and

(13) any other facilities the board considers necessary for hospital care.

(c) The district may provide any services or facilities necessary for:

(1) hospital agencies;

(2) extended care facilities; and

(3) assisted living or personal care facilities, including retirement benefits, housing, and medical office buildings. (Acts 61st Leg., R.S., Ch. 206, Secs. 2 (part), 11 (part).)

Sec. 1073.105. RULES. The board may adopt rules governing the operation of the hospital, the hospital system, and the district's staff and employees. (Acts 61st Leg., R.S., Ch. 206, Sec. 5(a) (part).)

Sec. 1073.106. PURCHASING AND ACCOUNTING PROCEDURES. The board may prescribe:

(1) the method and manner of making purchases and expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 61st Leg., R.S., Ch. 206, Sec. 12 (part).)

Sec. 1073.107. 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 and equipment, for the district to use in the hospital system; and

(2) mortgage or pledge the property as security for the payment of the purchase price.

(c) The board may lease district hospital facilities to individuals, corporations, or other legal entities.

(d) The board may sell or otherwise dispose of the district's property, including facilities and equipment. (Acts 61st Leg., R.S., Ch. 206, Secs. 5(e), (f) (part), 11 (part).)

Sec. 1073.108. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property located in district territory if the interest is necessary for the district to exercise a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, except the district is not required to deposit in the trial court money or a bond as provided by Section 21.021, Property Code.

(c) In a condemnation proceeding brought by the district, the district is not required to:

(1) pay in advance or provide a bond or other security for costs in the trial court;

(2) provide a bond for the issuance of a temporary restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on an appeal or petition for review. (Acts 61st Leg., R.S., Ch. 206, Sec. 16.)

Sec. 1073.109. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district. (Acts 61st Leg., R.S., Ch. 206, Sec. 20.)

Sec. 1073.110. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to a district facility. (Acts 61st Leg., R.S., Ch. 206, Sec. 11 (part).)

Sec. 1073.111. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR HOSPITALIZATION AND TREATMENT. (a) The board may contract with a county or municipality located outside the district's boundaries for the hospitalization of a sick or injured person of that county or municipality.

(b) The district may contract with this state or a federal agency for the hospital treatment of a sick or injured person. (Acts 61st Leg., R.S., Ch. 206, Sec. 5(c) (part).)

Sec. 1073.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR INVESTIGATORY OR OTHER SERVICES. The board may contract with a political subdivision or governmental agency for the district to provide investigatory or other services for the hospital or welfare needs of district inhabitants. (Acts 61st Leg., R.S., Ch. 206, Sec. 5(c) (part).)

Sec. 1073.113. BIDDING REQUIREMENTS. The district shall comply with the bidding requirements prescribed by Chapter 271, Local Government Code. (Acts 61st Leg., R.S., Ch. 206, Sec. 12 (part).)

Sec. 1073.114. PROVISION OF SERVICES OUTSIDE DISTRICT. The district may provide services outside the district's boundaries. (Acts 61st Leg., R.S., Ch. 206, Sec. 5(j).)

Sec. 1073.115. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a patient who resides in the district is admitted to a district facility, the district administrator may have an inquiry made into the circumstances of:

(1) the patient; and

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

(b) If the district administrator determines that the patient or those relatives cannot pay all or part of the costs of the care and treatment in the hospital, the amount of the costs that cannot be paid becomes a charge against the district.

(c) If the district administrator determines that the patient or those relatives can pay for all or part of the costs of the patient's care and treatment, the patient or those relatives shall be ordered to pay the district a specified amount each week for the patient's care and support. The amount ordered must be proportionate to the person's financial ability.

(d) The district administrator may collect the amount from the estate of the patient, or from any relative who is legally liable for the patient's support, in the manner provided by law for the collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt in the mind of the district administrator, the board shall hold a hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue any appropriate orders.

(f) A final order of the board may be appealed to the district court. The substantial evidence rule applies to the appeal. (Acts 61st Leg., R.S., Ch. 206, Sec. 19.)

Sec. 1073.116. AUTHORITY TO SUE AND BE SUED. (a) The district, through the board, may sue and be sued.

(b) The district is entitled to all causes of action and defenses to which similar authorities are entitled. (Acts 61st Leg., R.S., Ch. 206, Sec. 5(a) (part).)

[Sections 1073.117-1073.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1073.151. BUDGET. (a) The district administrator shall prepare an annual budget for approval by the board.

(b) The proposed budget must contain a complete financial statement of:

(1) the outstanding obligations of the district;

(2) the cash on hand in each district fund;

(3) the money received by the district from all sources during the previous year;

(4) the money available to the district from all sources during the ensuing year;

(5) the balances expected at the end of the year in which the budget is being prepared;

(6) the estimated revenue and balances available to cover the proposed budget;

(7) the estimated tax rate required; and

(8) the proposed expenditures and disbursements and the estimated receipts and collections for the following fiscal year. (Acts 61st Leg., R.S., Ch. 206, Sec. 6 (part).)

Sec. 1073.152. 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) 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 district's residents and that the law warrants. (Acts 61st Leg., R.S., Ch. 206, Sec. 6 (part).)

Sec. 1073.153. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. (Acts 61st Leg., R.S., Ch. 206, Sec. 6 (part).)

Sec. 1073.154. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the budget or an amendment to the budget. (Acts 61st Leg., R.S., Ch. 206, Sec. 6 (part).)

Sec. 1073.155. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) when revenue bonds of the district are outstanding; or

(2) more than once in a 24-month period. (Acts 61st Leg., R.S., Ch. 206, Sec. 6 (part).)

Sec. 1073.156. ANNUAL AUDIT. The board annually shall have an audit made of the district's financial condition. (Acts 61st Leg., R.S., Ch. 206, Sec. 6 (part).)

Sec. 1073.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT RECORDS. The annual audit and other district records shall be open to inspection at the district's principal office. (Acts 61st Leg., R.S., Ch. 206, Sec. 6 (part).)

Sec. 1073.158. FINANCIAL REPORT. As soon as practicable after the close of each fiscal year, the district administrator shall prepare for the board:

(1) a complete sworn statement of all district money; and

(2) a complete account of the disbursements of that money. (Acts 61st Leg., R.S., Ch. 206, Sec. 6 (part).)

Sec. 1073.159. DEPOSITORY. (a) The board shall select one or more banks to serve as a depository for district money.

(b) District money, other than money invested as provided by Section 1073.160(b), and money transmitted to a bank for payment of bonds or obligations issued by the district, shall be deposited as received with the depository bank and shall remain on deposit.

(c) This chapter, including Subsection (b), does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit.

(d) Membership on the district's board of an officer or director of a bank does not disqualify the bank from being designated as a depository bank. (Acts 61st Leg., R.S., Ch. 206, Sec. 13.)

Sec. 1073.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as otherwise provided by this chapter, the district may not incur an obligation payable from district revenue other than the revenue on hand or to be on hand in the current and following district fiscal years.

(b) The board may invest operating, depreciation, or building reserves only in securities described by Subchapter A, Chapter 1505, Government Code, or in accordance with Chapter 2256, Government Code. (Acts 61st Leg., R.S., Ch. 206, Secs. 5(a) (part), 12 (part).)

Sec. 1073.161. 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.

(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 following the date of the pledge that is not pledged to pay the principal of or interest on district bonds; or

(3) district bonds that have been authorized but not sold.

(c) A loan for which taxes or bonds are pledged must mature not later than the first anniversary of the date the loan is made. A loan for which district revenue is pledged must mature not later than the fifth anniversary of the date the loan is made. (Acts 61st Leg., R.S., Ch. 206, Sec. 20a.)

[Sections 1073.162-1073.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1073.201. GENERAL OBLIGATION BONDS. The board may issue general obligation bonds in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate buildings or improvements;

(2) equip buildings or improvements for hospital purposes; or

(3) acquire and operate a mobile emergency medical or air ambulance service. (Acts 61st Leg., R.S., Ch. 206, Sec. 9(a).)

Sec. 1073.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1073.201, 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 rate approved by the voters at the election authorizing the imposition of the tax. (Acts 61st Leg., R.S., Ch. 206, Sec. 9(b) (part).)

Sec. 1073.203. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

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

(c) Notice of a bond election shall be given as provided by Section 1251.003, Government Code.

(d) The board shall declare the results of the election. (Acts 61st Leg., R.S., Ch. 206, Sec. 9(b) (part).)

Sec. 1073.204. REVENUE BONDS. (a) The board may issue revenue bonds to:

(1) purchase, construct, acquire, repair, renovate, or equip buildings or improvements for hospital purposes;

(2) acquire sites to be used for hospital purposes; or

(3) acquire and operate a mobile emergency medical or air ambulance service.

(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, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 61st Leg., R.S., Ch. 206, Secs. 9(c), 10 (part).)

Sec. 1073.205. REFUNDING BONDS. (a) The board may issue refunding bonds to refund outstanding bonds issued by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bonds applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness. (Acts 61st Leg., R.S., Ch. 206, Secs. 9(d) (part), 10 (part).)

Sec. 1073.206. MATURITY OF BONDS. District bonds must mature not later than 40 years after the date of issuance. (Acts 61st Leg., R.S., Ch. 206, Sec. 9(e) (part).)

Sec. 1073.207. EXECUTION OF BONDS. (a) The board president shall execute district bonds in the district's name.

(b) The board secretary shall countersign district bonds in the manner provided by Chapter 618, Government Code. (Acts 61st Leg., R.S., Ch. 206, Sec. 9(e) (part).)

Sec. 1073.208. 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; or

(3) profits made in the sale of the bonds. (Acts 61st Leg., R.S., Ch. 206, Sec. 23 (part).)

[Sections 1073.209-1073.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1073.251. IMPOSITION OF AD VALOREM TAX. (a) The board may impose a tax on all property in the district subject to district taxation.

(b) The board may impose the tax to:

(1) pay the interest on and create a sinking fund for bonds and other obligations issued or assumed by the district for hospital purposes;

(2) provide for the operation and maintenance of the district and hospital system;

(3) make improvements and additions to the hospital system; and

(4) acquire necessary sites for the hospital system by purchase, lease, or condemnation.

(c) The board may not impose a tax to pay the principal of or interest on revenue bonds. (Acts 61st Leg., R.S., Ch. 206, Secs. 14 (part), 17(b) (part).)

Sec. 1073.252. TAX RATE. (a) The board may impose the tax at a rate not to exceed the limit approved by the voters at the election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on each $100 valuation of all taxable property in the district.

(c) In setting the tax rate, the board shall consider the income of the district from sources other than taxation. (Acts 61st Leg., R.S., Ch. 206, Secs. 14 (part), 17(b) (part).)

Sec. 1073.253. TAX ASSESSOR-COLLECTOR. The board may provide for the appointment of a tax assessor-collector for the district or may contract for the assessment and collection of taxes as provided by the Tax Code. (Acts 61st Leg., R.S., Ch. 206, Sec. 17(b) (part).)

[Sections 1073.254-1073.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1073.301. 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 61st Leg., R.S., Ch. 206, Secs. 20b(a), (b), (c) (part).)

Sec. 1073.302. NOTICE OF ELECTION. (a) The board shall give notice of an election under this subchapter by publishing once a week for two consecutive weeks a substantial copy of the election order in a newspaper with general circulation in the district.

(b) The first publication of the notice must appear not later than the 35th day before the date set for the election. (Acts 61st Leg., R.S., Ch. 206, Sec. 20b(d) (part).)

Sec. 1073.303. BALLOT. The ballot for an election under this subchapter must be printed to permit voting for or against the proposition: "The dissolution of the North Runnels County Hospital District." (Acts 61st Leg., R.S., Ch. 206, Sec. 20b(d) (part).)

Sec. 1073.304. ELECTION RESULTS. (a) If a majority of the votes in an election under this subchapter favor dissolution, the board shall find that the district is dissolved.

(b) If a majority of the votes in the election do not favor dissolution, the board shall continue to administer the district and another election on the question of dissolution may not be held before the first anniversary of the date of the most recent election to dissolve the district. (Acts 61st Leg., R.S., Ch. 206, Sec. 20b(e).)

Sec. 1073.305. 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 Runnels County or another governmental entity in Runnels County; or

(2) administer the property, assets, and debts until all money has been disposed of and all district debts have been paid or settled.

(b) If the board makes the transfer under Subsection (a)(1), the county or entity assumes all debts and obligations of the district at the time of the transfer and the district is dissolved. (Acts 61st Leg., R.S., Ch. 206, Secs. 20b(f), (g).)

Sec. 1073.306. SALE OR TRANSFER OF ASSETS AND LIABILITIES. (a) Notwithstanding any other provision of this chapter, the district may not be dissolved unless the board provides for the sale or transfer of the district's assets and liabilities to another person.

(b) The dissolution of the district and the sale or transfer of the district's assets or liabilities may not contravene a trust indenture or bond resolution relating to the district's outstanding bonds. The dissolution and sale or transfer does not diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district.

(c) The sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of district residents, including the residents' collective property rights in the district's assets.

(d) The district may not transfer or dispose of the district's assets except for due compensation unless:

(1) the transfer is made to another governmental entity that serves the district; and

(2) the transferred assets are to be used for the benefit of the district's residents.

(e) A grant from federal funds is an obligation to be repaid in satisfaction. (Acts 61st Leg., R.S., Ch. 206, Secs. 20b(m), (n).)

Sec. 1073.307. 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 61st Leg., R.S., Ch. 206, Secs. 20b(h), (i), (j).)

Sec. 1073.308. 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 Runnels County summarizing the board's actions in dissolving the district.

(b) Not later than the 10th day after the date the Commissioners Court of Runnels County receives the report and determines that the requirements of this subchapter have been fulfilled, the commissioners court shall enter an order dissolving the district and releasing the board from any further duty or obligation. (Acts 61st Leg., R.S., Ch. 206, Secs. 20b(k), (l).) CHAPTER 1077. GAINESVILLE HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1077.001. DEFINITIONS Sec. 1077.002. AUTHORITY FOR OPERATION Sec. 1077.003. POLITICAL SUBDIVISION Sec. 1077.004. DISTRICT TERRITORY Sec. 1077.005. PUBLIC PURPOSE; TAX EXEMPTION Sec. 1077.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1077.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1077.008-1077.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1077.051. BOARD ELECTION; TERM Sec. 1077.052. NOTICE OF ELECTION Sec. 1077.053. QUALIFICATIONS FOR OFFICE Sec. 1077.054. MEETING ATTENDANCE REQUIREMENT Sec. 1077.055. BOARD VACANCY Sec. 1077.056. OFFICERS Sec. 1077.057. COMPENSATION; EXPENSES Sec. 1077.058. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR Sec. 1077.059. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1077.060. APPOINTMENT AND DISMISSAL OF STAFF AND

EMPLOYEES Sec. 1077.061. PERSONNEL CONTRACTS Sec. 1077.062. RETIREMENT BENEFITS

[Sections 1077.063-1077.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1077.101. DISTRICT RESPONSIBILITY Sec. 1077.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1077.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1077.104. RULES Sec. 1077.105. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1077.106. DISTRICT PROPERTY, FACILITIES,

EQUIPMENT, AND SERVICES Sec. 1077.107. EMINENT DOMAIN Sec. 1077.108. GIFTS AND ENDOWMENTS Sec. 1077.109. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT Sec. 1077.110. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1077.111. AUTHORITY TO SUE AND BE SUED

[Sections 1077.112-1077.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1077.151. BUDGET Sec. 1077.152. PROPOSED BUDGET; NOTICE AND HEARING Sec. 1077.153. FISCAL YEAR Sec. 1077.154. AUDIT Sec. 1077.155. FINANCIAL REPORT Sec. 1077.156. DEPOSITORY

[Sections 1077.157-1077.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1077.201. BONDS Sec. 1077.202. TAX TO PAY BONDS Sec. 1077.203. BOND ELECTION Sec. 1077.204. REVENUE BONDS Sec. 1077.205. MATURITY OF TAX BONDS Sec. 1077.206. EXECUTION OF BONDS

[Sections 1077.207-1077.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1077.251. IMPOSITION OF AD VALOREM TAX Sec. 1077.252. TAX RATE Sec. 1077.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1077. GAINESVILLE HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1077.001. 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 Gainesville Hospital District. (New.)

Sec. 1077.002. AUTHORITY FOR OPERATION. The Gainesville Hospital District operates in accordance with Section 9, Article IX, Texas Constitution. (Acts 64th Leg., R.S., Ch. 211, Sec. 1 (part).)

Sec. 1077.003. POLITICAL SUBDIVISION. The district is a political subdivision of this state. (Acts 64th Leg., R.S., Ch. 211, Sec. 17 (part).)

Sec. 1077.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Cooke County, Texas, except that the district does not include territory located in the Muenster Hospital District on the date the election to approve the creation of the Gainesville Hospital District was called. (Acts 64th Leg., R.S., Ch. 211, Sec. 1 (part).)

Sec. 1077.005. PUBLIC PURPOSE; TAX EXEMPTION. All property owned by the district:

(1) shall be held for public purposes; and

(2) is exempt from taxation of every character by this state or a political subdivision of this state. (Acts 64th Leg., R.S., Ch. 211, Sec. 17 (part).)

Sec. 1077.006. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. The support and maintenance of the district may not become a charge against or obligation of this state. (Acts 64th Leg., R.S., Ch. 211, Sec. 18 (part).)

Sec. 1077.007. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 64th Leg., R.S., Ch. 211, Sec. 18 (part).)

[Sections 1077.008-1077.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1077.051. BOARD ELECTION; TERM. (a) The district is governed by a board of nine directors.

(b) Directors serve staggered three-year terms.

(c) An election shall be held on the uniform election date in May of each year to elect the appropriate number of directors. (Acts 64th Leg., R.S., Ch. 211, Secs. 4(a), (b), (c) (part).)

Sec. 1077.052. NOTICE OF ELECTION. Notice of an election of directors shall be published in a newspaper of general circulation in the area of the district in accordance with Section 4.003, Election Code. (Acts 64th Leg., R.S., Ch. 211, Sec. 4(c) (part).)

Sec. 1077.053. QUALIFICATIONS FOR OFFICE. To be qualified to hold office as a director, a person must be:

(1) a resident of the district; and

(2) a registered voter. (Acts 64th Leg., R.S., Ch. 211, Sec. 4(g).)

Sec. 1077.054. MEETING ATTENDANCE REQUIREMENT. (a) A director who fails to attend at least four regular meetings in any 12-month period is considered to have resigned the director's position, effective immediately on the date of the fourth absence. Further action is not required by the director or the board to effectuate a vacancy under this subsection.

(b) A vacancy created by a resignation under this section shall be filled as provided by Section 1077.055. (Acts 64th Leg., R.S., Ch. 211, Sec. 4(e).)

Sec. 1077.055. BOARD VACANCY. If a vacancy occurs in the office of director, the remaining directors by majority vote shall appoint a director for the unexpired term. (Acts 64th Leg., R.S., Ch. 211, Sec. 4(d).)

Sec. 1077.056. OFFICERS. 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. (Acts 64th Leg., R.S., Ch. 211, Sec. 4(h).)

Sec. 1077.057. COMPENSATION; EXPENSES. A director is not entitled to compensation but is entitled to receive actual expenses incurred in attending to district business on approval of the expenses by the remainder of the board. (Acts 64th Leg., R.S., Ch. 211, Sec. 4(f).)

Sec. 1077.058. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The board shall appoint a qualified person as district administrator.

(b) The board may appoint an assistant administrator.

(c) The district administrator and any assistant administrator serve at the will of the board and are entitled to the compensation determined by the board.

(d) On assuming the duties of district administrator, the administrator shall execute a bond payable to the district in an amount set by the board of not less than $5,000 that:

(1) is conditioned on the administrator performing the administrator's duties; and

(2) contains other conditions the board may require.

(e) The board may pay for the bond with district money. (Acts 64th Leg., R.S., Ch. 211, Sec. 5(b) (part).)

Sec. 1077.059. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to the limitations prescribed by the board, the district administrator shall:

(1) supervise the work and activities of the district; and

(2) direct the affairs of the district. (Acts 64th Leg., R.S., Ch. 211, Sec. 5(b) (part).)

Sec. 1077.060. APPOINTMENT AND DISMISSAL OF STAFF AND EMPLOYEES. (a) The board may appoint to or dismiss from the medical staff the physicians, dentists, and podiatrists the board determines necessary for the efficient operation of the district.

(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 hire district employees. (Acts 64th Leg., R.S., Ch. 211, Secs. 5(c), (d).)

Sec. 1077.061. PERSONNEL CONTRACTS. (a) The board may contract with a nonprofit corporation for the corporation to provide administrative and other personnel for the operation of the hospital facilities.

(b) The term of the contract may not exceed 25 years from the date the contract is executed. (Acts 64th Leg., R.S., Ch. 211, Sec. 5(f).)

Sec. 1077.062. 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 64th Leg., R.S., Ch. 211, Sec. 5(e) (part).)

[Sections 1077.063-1077.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1077.101. DISTRICT RESPONSIBILITY. (a) The district has full responsibility for operating all hospital facilities for providing medical and hospital care of the indigent persons in the district.

(b) The district shall provide medical and hospital care for the district's needy inhabitants. (Acts 64th Leg., R.S., Ch. 211, Secs. 2 (part), 16 (part).)

Sec. 1077.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision in the district, other than the district, may not impose a tax or issue bonds or other obligations for hospital purposes for medical treatment of indigent persons in the district. (Acts 64th Leg., R.S., Ch. 211, Sec. 16 (part).)

Sec. 1077.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the hospital system and the district's money and resources. (Acts 64th Leg., R.S., Ch. 211, Sec. 5(a) (part).)

Sec. 1077.104. RULES. The board may adopt rules governing the operation of the district and as required to administer this chapter. (Acts 64th Leg., R.S., Ch. 211, Secs. 5(a) (part), (g) (part).)

Sec. 1077.105. PURCHASING AND ACCOUNTING PROCEDURES. The board may prescribe:

(1) the method and manner of making purchases and expenditures by and for the district; and

(2) all accounting and control procedures. (Acts 64th Leg., R.S., Ch. 211, Sec. 5(g) (part).)

Sec. 1077.106. DISTRICT PROPERTY, FACILITIES, EQUIPMENT, AND SERVICES. (a) The board has exclusive authority to determine the type, character, and use of facilities in the hospital system.

(b) The district may:

(1) purchase, construct, acquire, repair, or renovate buildings and improvements; and

(2) equip buildings and improvements for hospital purposes. (Acts 64th Leg., R.S., Ch. 211, Secs. 2 (part), 5(g) (part).)

Sec. 1077.107. 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 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 64th Leg., R.S., Ch. 211, Sec. 12.)

Sec. 1077.108. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district. (Acts 64th Leg., R.S., Ch. 211, Sec. 15.)

Sec. 1077.109. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT. (a) The board may contract with a county or municipality located outside the district for the care and treatment of a sick or injured person of that county or municipality.

(b) The board may contract with this state or a federal agency for the treatment of a sick or injured person for whom this state or the agency is responsible. (Acts 64th Leg., R.S., Ch. 211, Sec. 5(e) (part).)

Sec. 1077.110. PAYMENT FOR TREATMENT; PROCEDURES. (a) When an indigent patient who resides in the district is admitted to a district facility or a person who does not reside in the district is admitted as an emergency patient 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 as care for indigents.

(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 estate of the patient, or from any relative who is legally liable for the patient's support, in the manner provided by law for the collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt in the mind of the district administrator, the board shall hold a hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue any appropriate orders.

(f) A final order of the board may be appealed to the district court. The substantial evidence rule applies to the appeal. (Acts 64th Leg., R.S., Ch. 211, Sec. 14.)

Sec. 1077.111. AUTHORITY TO SUE AND BE SUED. As a governmental entity, the district, through the board, may sue and be sued in its own name in any court of this state. (Acts 64th Leg., R.S., Ch. 211, Secs. 5(a) (part), 17 (part).)

[Sections 1077.112-1077.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1077.151. BUDGET. (a) The district administrator shall prepare an annual budget for approval by the board.

(b) The budget must be for the next fiscal year and must include:

(1) proposed expenditures and disbursements;

(2) estimated receipts and collections; and

(3) the amount of taxes required to be imposed for the year. (Acts 64th Leg., R.S., Ch. 211, Sec. 6 (part).)

Sec. 1077.152. 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 Cooke 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 64th Leg., R.S., Ch. 211, Sec. 6 (part).)

Sec. 1077.153. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed more than once in a 36-month period. (Acts 64th Leg., R.S., Ch. 211, Sec. 6 (part).)

Sec. 1077.154. AUDIT. (a) The district shall have an audit made of the district's financial condition.

(b) The audit shall be open to inspection at all times at the district's principal office. (Acts 64th Leg., R.S., Ch. 211, Sec. 6 (part).)

Sec. 1077.155. FINANCIAL REPORT. As soon as practical after the close of each fiscal year, the district administrator shall prepare for the board:

(1) a complete sworn statement of all district money; and

(2) a complete account of the disbursements of that money. (Acts 64th Leg., R.S., Ch. 211, Sec. 6 (part).)

Sec. 1077.156. 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 to pay the principal of and interest on the district's outstanding bonds on or before the maturity date of the principal and interest.

(c) To the extent that money in a depository bank is not insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by law for the security of county funds.

(d) Membership on the district's board of an officer or director of a bank does not disqualify the bank from being designated as a depository bank. (Acts 64th Leg., R.S., Ch. 211, Sec. 13.)

[Sections 1077.157-1077.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1077.201. BONDS. The board may issue and sell bonds to:

(1) purchase, construct, acquire, repair, or renovate buildings and improvements; and

(2) equip buildings and improvements for hospital purposes. (Acts 64th Leg., R.S., Ch. 211, Sec. 9 (part).)

Sec. 1077.202. TAX TO PAY BONDS. (a) The board may issue bonds under Section 1077.201 payable from ad valorem taxes. If the bonds are payable from ad valorem taxes, the board shall impose an ad valorem tax to create an interest and sinking fund sufficient to pay the principal of and interest on the bonds as the bonds mature.

(b) The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed 75 cents on each $100 valuation of all taxable property in the district. (Acts 64th Leg., R.S., Ch. 211, Sec. 9 (part).)

Sec. 1077.203. BOND ELECTION. (a) The district may issue bonds under Section 1077.201 that are payable from taxes only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

(b) The board may order the election on its own motion.

(c) The order calling the election must specify:

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding election officers;

(4) the purpose of the bond issuance;

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

(6) the maximum maturity of the bonds.

(d) Notice of a bond election shall be given by publishing a substantial copy of the order calling the election in a newspaper of general circulation in the district once each week for two consecutive weeks before the date of the election. The first publication must occur at least 14 days before the date of the election. (Acts 64th Leg., R.S., Ch. 211, Sec. 9 (part).)

Sec. 1077.204. REVENUE BONDS. (a) The board may issue bonds under Section 1077.201 payable from the district's revenue. The board may issue the revenue bonds without an election.

(b) The bonds must be payable from 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, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 64th Leg., R.S., Ch. 211, Sec. 9 (part).)

Sec. 1077.205. MATURITY OF TAX BONDS. District bonds payable from taxes must mature not later than 40 years after the date of issuance. (Acts 64th Leg., R.S., Ch. 211, Sec. 9 (part).)

Sec. 1077.206. EXECUTION OF BONDS. (a) The board president shall execute the district bonds in the district's name.

(b) The board secretary shall countersign the bonds. (Acts 64th Leg., R.S., Ch. 211, Sec. 9 (part).)

[Sections 1077.207-1077.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1077.251. IMPOSITION OF AD VALOREM TAX. (a) On final approval of the annual budget, the board shall impose a tax on all property in the district subject to district taxation.

(b) The board shall impose the tax to:

(1) pay the interest on and create a sinking fund for bonds issued or assumed by the district for hospital purposes; and

(2) care for indigents. (Acts 64th Leg., R.S., Ch. 211, Secs. 6 (part), 7 (part).)

Sec. 1077.252. 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) Not more than 65 cents of the rate authorized by Subsection (a) may be imposed in any year to pay the interest on and create a sinking fund for bonds issued or assumed by the district for hospital purposes. (Acts 64th Leg., R.S., Ch. 211, Sec. 7 (part).)

Sec. 1077.253. TAX ASSESSOR-COLLECTOR. (a) Except as provided by Subsection (b), the tax assessor-collector of Cooke County shall assess and collect taxes imposed by the district.

(b) The board may appoint a district tax assessor-collector under Section 285.041, Health and Safety Code. (Acts 64th Leg., R.S., Ch. 211, Secs. 6 (part), 7 (part).) CHAPTER 1078. HOUSTON COUNTY HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1078.001. DEFINITIONS Sec. 1078.002. AUTHORITY FOR OPERATION Sec. 1078.003. ESSENTIAL PUBLIC FUNCTION Sec. 1078.004. DISTRICT TERRITORY Sec. 1078.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1078.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1078.007-1078.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1078.051. BOARD ELECTION; TERM Sec. 1078.052. NOTICE OF ELECTION Sec. 1078.053. BALLOT PETITION Sec. 1078.054. QUALIFICATIONS FOR OFFICE Sec. 1078.055. BOND; RECORD OF BOND Sec. 1078.056. BOARD VACANCY Sec. 1078.057. OFFICERS Sec. 1078.058. COMPENSATION; EXPENSES Sec. 1078.059. VOTING REQUIREMENT Sec. 1078.060. DISTRICT ADMINISTRATOR Sec. 1078.061. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1078.062. ASSISTANT DISTRICT ADMINISTRATOR;

ATTORNEY Sec. 1078.063. APPOINTMENTS AND RECRUITMENT OF STAFF

AND EMPLOYEES Sec. 1078.064. RETIREMENT BENEFITS

[Sections 1078.065-1078.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1078.101. DISTRICT RESPONSIBILITY Sec. 1078.102. RESTRICTION ON HOUSTON COUNTY TAXATION

AND DEBT Sec. 1078.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1078.104. RULES Sec. 1078.105. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1078.106. MOBILE EMERGENCY MEDICAL SERVICE Sec. 1078.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1078.108. EMINENT DOMAIN Sec. 1078.109. COST OF RELOCATING OR ALTERING PROPERTY Sec. 1078.110. GIFTS AND ENDOWMENTS Sec. 1078.111. LEASE OF DISTRICT PROPERTY Sec. 1078.112. CONSTRUCTION CONTRACTS Sec. 1078.113. OPERATING AND MANAGEMENT CONTRACTS Sec. 1078.114. CONTRACTS FOR CARE Sec. 1078.115. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR SERVICES Sec. 1078.116. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1078.117. REIMBURSEMENT FOR SERVICE Sec. 1078.118. AUTHORITY TO SUE AND BE SUED

[Sections 1078.119-1078.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCE PROVISIONS Sec. 1078.151. BUDGET Sec. 1078.152. NOTICE; HEARING; ADOPTION OF BUDGET Sec. 1078.153. AMENDMENTS TO BUDGET Sec. 1078.154. RESTRICTION ON EXPENDITURES Sec. 1078.155. FISCAL YEAR Sec. 1078.156. ANNUAL AUDIT Sec. 1078.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS Sec. 1078.158. FINANCIAL REPORT Sec. 1078.159. DEPOSITORY Sec. 1078.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1078.161-1078.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1078.201. GENERAL OBLIGATION BONDS Sec. 1078.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1078.203. GENERAL OBLIGATION BOND ELECTION Sec. 1078.204. REVENUE BONDS Sec. 1078.205. REFUNDING BONDS Sec. 1078.206. MATURITY OF BONDS Sec. 1078.207. EXECUTION OF BONDS Sec. 1078.208. BONDS EXEMPT FROM TAXATION

[Sections 1078.209-1078.250 reserved for expansion]

SUBCHAPTER F. AD VALOREM TAX Sec. 1078.251. IMPOSITION OF AD VALOREM TAX Sec. 1078.252. TAX RATE Sec. 1078.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1078. HOUSTON COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1078.001. 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 Houston County Hospital District. (Acts 69th Leg., R.S., Ch. 766, Sec. 1.01.)

Sec. 1078.002. AUTHORITY FOR OPERATION. The Houston County Hospital District operates and is financed as provided by Section 9, Article IX, Texas Constitution, and by this chapter. (Acts 69th Leg., R.S., Ch. 766, Sec. 1.02.)

Sec. 1078.003. ESSENTIAL PUBLIC FUNCTION. The district is a public entity performing an essential public function. (Acts 69th Leg., R.S., Ch. 766, Sec. 7.11 (part).)

Sec. 1078.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Houston County, Texas, except that portion of Houston County within the boundaries of the Grapeland Hospital District of Houston County, Texas, as those boundaries existed on August 26, 1985, is not included in the district. (Acts 69th Leg., R.S., Ch. 766, Sec. 1.03.)

Sec. 1078.005. 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. 766, Sec. 9.01 (part).)

Sec. 1078.006. 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. 766, Sec. 9.01 (part).)

[Sections 1078.007-1078.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1078.051. BOARD ELECTION; TERM. (a) The district is governed by a board of nine directors elected by place.

(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. 766, Secs. 4.01(a), 4.03(a), (d).)

Sec. 1078.052. 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. 766, Sec. 4.04.)

Sec. 1078.053. BALLOT PETITION. A person who wants to have the person's name printed on the ballot as a candidate for director must file with the board secretary a petition requesting that action. The petition must:

(1) be signed by at least 100 registered voters of the district as determined by the most recent official list of registered voters;

(2) be filed not later than the 31st day before the date of the election; and

(3) specify the place for which the person is to be a candidate. (Acts 69th Leg., R.S., Ch. 766, Sec. 4.05.)

Sec. 1078.054. QUALIFICATIONS FOR OFFICE. (a) To be eligible to be a candidate for or to serve as a director, a person must be:

(1) a resident of the district; and

(2) a qualified voter.

(b) A district employee may not serve as a director. (Acts 69th Leg., R.S., Ch. 766, Sec. 4.06.)

Sec. 1078.055. 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. 766, Sec. 4.08.)

Sec. 1078.056. 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. 766, Sec. 4.09.)

Sec. 1078.057. 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. 766, Secs. 4.10, 4.11.)

Sec. 1078.058. 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. 766, Sec. 4.12.)

Sec. 1078.059. 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. 766, Sec. 4.13.)

Sec. 1078.060. 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. 766, Secs. 4.14(a) (part), (b) (part), (c) (part), (d).)

Sec. 1078.061. 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. 766, Sec. 4.17.)

Sec. 1078.062. 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. 766, Secs. 4.14(a) (part), (b) (part), (c) (part).)

Sec. 1078.063. 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. (Acts 69th Leg., R.S., Ch. 766, Secs. 4.15, 4.16.)

Sec. 1078.064. 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. 766, Sec. 4.18.)

[Sections 1078.065-1078.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1078.101. 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. 766, Sec. 5.02 (part).)

Sec. 1078.102. RESTRICTION ON HOUSTON COUNTY TAXATION AND DEBT. Houston 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. 766, Sec. 5.01(b).)

Sec. 1078.103. 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. 766, Sec. 5.03 (part).)

Sec. 1078.104. RULES. The board may adopt rules governing:

(1) the operation of the hospital and hospital system; and

(2) the duties, functions, and responsibilities of the district staff and employees. (Acts 69th Leg., R.S., Ch. 766, Sec. 5.04.)

Sec. 1078.105. 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. 766, Sec. 5.05.)

Sec. 1078.106. 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. 766, Sec. 5.02 (part).)

Sec. 1078.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine:

(1) the type, number, and location of buildings required to maintain an adequate hospital system; and

(2) the type of equipment necessary for hospital care.

(b) The board may:

(1) acquire property, including facilities and equipment, for the district for use in the hospital system; and

(2) mortgage or pledge the property as security for the payment of the purchase price.

(c) The board may lease hospital facilities from others for the district.

(d) The board may sell or otherwise dispose of property, including facilities or equipment, for the district. (Acts 69th Leg., R.S., Ch. 766, Secs. 5.06(a), (b), (c), (d).)

Sec. 1078.108. 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 petition for review. (Acts 69th Leg., R.S., Ch. 766, Sec. 5.09.)

Sec. 1078.109. 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. 766, Sec. 5.10.)

Sec. 1078.110. 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. 766, Sec. 5.14.)

Sec. 1078.111. LEASE OF DISTRICT PROPERTY. (a) The board may lease all or part of the district's property, including facilities or equipment, to any person on terms the board considers to be in the district's best interest. The lease period may not exceed 40 years.

(b) When leasing the property the board may delegate as it considers appropriate the board's power to manage or operate the leased property to furnish hospital care.

(c) For each leased property the board shall provide that the lessee charge rates for services rendered or goods provided at the leased premises that, together with other sources of the lessee's revenue, produce an amount sufficient to enable the lessee to pay the expenses of operating and maintaining the leased premises required of the lessee under the lease. The lease must also require the lessee to pay lease rentals to the district that will be sufficient when taken with any other sources of the district's estimated revenue that are pledged for the same purposes to:

(1) pay the interest on any revenue or special obligation bonds that are payable wholly or partly from the lease rentals;

(2) create and maintain a sinking fund to pay the principal of, interest on, and premium, if any, on the bonds as they become due;

(3) create and maintain a bond reserve fund and other fund as provided for in 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 for the operation of the leased premises. (Acts 69th Leg., R.S., Ch. 766, Sec. 5.06(e) (part).)

Sec. 1078.112. CONSTRUCTION CONTRACTS. (a) The board may enter into construction contracts for the district.

(b) The board may enter into a construction contract that involves the expenditure of more than the amount provided by Section 271.024, Local Government Code, only after competitive bidding as provided by Subchapter B, Chapter 271, Local Government Code. (Acts 69th Leg., R.S., Ch. 766, Sec. 5.07(a).)

Sec. 1078.113. OPERATING AND MANAGEMENT CONTRACTS. The district, through its board, may:

(1) enter into an operating or management contract with any person relating to all or any part of its hospital facility;

(2) delegate to the person the power to manage and operate all or part of the hospital facilities or hospital system; and

(3) employ and discharge employees or appoint and remove doctors from the staff. (Acts 69th Leg., R.S., Ch. 766, Secs. 5.03 (part), 5.08 (part).)

Sec. 1078.114. CONTRACTS FOR CARE. The board may contract with any lessee of the district's hospital facilities or any other person to provide hospital care to needy district inhabitants for payments and under terms that the board considers to be in the district's best interests. (Acts 69th Leg., R.S., Ch. 766, Sec. 5.08 (part).)

Sec. 1078.115. 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 or for any lessee of the district's hospital facilities 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. 766, Sec. 5.13.)

Sec. 1078.116. 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 or a person designated by the board 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 or the person designated by the board 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 or the person designated by the board may collect the amount owed to the district from the patient's estate or from that of a relative 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 or the person designated by the board 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 Houston County. The substantial evidence rule applies to the appeal. (Acts 69th Leg., R.S., Ch. 766, Sec. 5.11.)

Sec. 1078.117. 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 Houston County to reimburse the district for the district's care and treatment of a person who is confined in a jail facility of Houston 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. 766, Sec. 5.12.)

Sec. 1078.118. AUTHORITY TO SUE AND BE SUED. The board may sue and be sued on behalf of the district. (Acts 69th Leg., R.S., Ch. 766, Sec. 5.15.)

[Sections 1078.119-1078.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCE PROVISIONS

Sec. 1078.151. 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. 766, Sec. 6.04.)

Sec. 1078.152. 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. 766, Sec. 6.05.)

Sec. 1078.153. AMENDMENTS TO BUDGET. After the annual budget is adopted, the budget may be amended on the board's approval. (Acts 69th Leg., R.S., Ch. 766, Sec. 6.06.)

Sec. 1078.154. 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. 766, Sec. 6.07.)

Sec. 1078.155. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) 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. 766, Sec. 6.01.)

Sec. 1078.156. ANNUAL AUDIT. The board annually shall have an audit made of the district's financial condition. (Acts 69th Leg., R.S., Ch. 766, Sec. 6.02.)

Sec. 1078.157. 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. 766, Sec. 6.03.)

Sec. 1078.158. 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. 766, Sec. 6.08.)

Sec. 1078.159. 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 1078.160(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. 766, Sec. 6.10.)

Sec. 1078.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as provided by this section and Sections 1078.112, 1078.201, 1078.204, and 1078.205, 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. 766, Sec. 6.09.)

[Sections 1078.161-1078.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1078.201. 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. 766, Sec. 7.01.)

Sec. 1078.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1078.201, 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. 766, Sec. 7.02.)

Sec. 1078.203. 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. 766, Sec. 7.03.)

Sec. 1078.204. 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, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 69th Leg., R.S., Ch. 766, Sec. 7.04.)

Sec. 1078.205. 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. 766, Secs. 7.05(a), (c) (part).)

Sec. 1078.206. MATURITY OF BONDS. District bonds must mature not later than 50 years after the date of issuance. (Acts 69th Leg., R.S., Ch. 766, Sec. 7.06 (part).)

Sec. 1078.207. 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. 766, Sec. 7.07.)

Sec. 1078.208. 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. 766, Sec. 7.11 (part).)

[Sections 1078.209-1078.250 reserved for expansion]

SUBCHAPTER F. AD VALOREM TAX

Sec. 1078.251. 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 shall be imposed for and may be pledged to:

(1) meet the requirements of district bonds and the indebtedness assumed by the district;

(2) provide for the district's maintenance and operating expenses, including the cost or contract payments for hospital care for needy district inhabitants; and

(3) make improvements and additions to the district's hospital facilities or hospital system and acquire necessary sites for those improvements and additions by gift, purchase, lease, or condemnation.

(c) The district may not impose a tax to pay the principal of or interest on revenue bonds issued under this chapter. (Acts 69th Leg., R.S., Ch. 766, Secs. 8.01(a) (part), (c), (d), 8.02(b).)

Sec. 1078.252. TAX RATE. (a) The board may impose the tax at a rate not to exceed the limit approved by the voters at the election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on each $100 valuation of all taxable property in the district.

(c) In setting the tax rate, the board shall consider the income of the district from sources other than taxation. (Acts 69th Leg., R.S., Ch. 766, Secs. 8.01(a) (part), (b), 8.03 (part).)

Sec. 1078.253. TAX ASSESSOR-COLLECTOR. The board may provide for the appointment of a tax assessor-collector for the district or may contract for the assessment and collection of taxes as provided by the Tax Code. (Acts 69th Leg., R.S., Ch. 766, Sec. 8.04(b).) CHAPTER 1079. JACK COUNTY HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1079.001. DEFINITIONS Sec. 1079.002. AUTHORITY FOR OPERATION Sec. 1079.003. ESSENTIAL PUBLIC FUNCTION Sec. 1079.004. DISTRICT TERRITORY Sec. 1079.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1079.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1079.007-1079.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1079.051. BOARD ELECTION; TERM Sec. 1079.052. QUALIFICATIONS FOR OFFICE Sec. 1079.053. BOND; RECORD OF BOND Sec. 1079.054. BOARD VACANCY Sec. 1079.055. OFFICERS Sec. 1079.056. COMPENSATION; EXPENSES Sec. 1079.057. VOTING REQUIREMENT Sec. 1079.058. DISTRICT ADMINISTRATOR Sec. 1079.059. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1079.060. APPOINTMENT OF STAFF AND EMPLOYEES Sec. 1079.061. RETIREMENT BENEFITS

[Sections 1079.062-1079.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1079.101. DISTRICT RESPONSIBILITY Sec. 1079.102. RESTRICTION ON COUNTY TAXATION AND DEBT Sec. 1079.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1079.104. RULES Sec. 1079.105. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1079.106. MOBILE EMERGENCY MEDICAL SERVICE Sec. 1079.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1079.108. EMINENT DOMAIN Sec. 1079.109. COST OF RELOCATING OR ALTERING PROPERTY Sec. 1079.110. GIFTS AND ENDOWMENTS Sec. 1079.111. CONSTRUCTION CONTRACTS Sec. 1079.112. OPERATING AND MANAGEMENT CONTRACTS Sec. 1079.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR SERVICES Sec. 1079.114. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1079.115. REIMBURSEMENT FOR SERVICES Sec. 1079.116. AUTHORITY TO SUE AND BE SUED

[Sections 1079.117-1079.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1079.151. BUDGET Sec. 1079.152. NOTICE; HEARING; ADOPTION OF BUDGET Sec. 1079.153. AMENDMENTS TO BUDGET Sec. 1079.154. RESTRICTION ON EXPENDITURES Sec. 1079.155. FISCAL YEAR Sec. 1079.156. ANNUAL AUDIT Sec. 1079.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS Sec. 1079.158. FINANCIAL REPORT Sec. 1079.159. DEPOSITORY Sec. 1079.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1079.161-1079.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1079.201. GENERAL OBLIGATION BONDS Sec. 1079.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1079.203. GENERAL OBLIGATION BOND ELECTION Sec. 1079.204. REVENUE BONDS Sec. 1079.205. REFUNDING BONDS Sec. 1079.206. MATURITY OF BONDS Sec. 1079.207. EXECUTION OF BONDS Sec. 1079.208. BONDS EXEMPT FROM TAXATION

[Sections 1079.209-1079.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1079.251. IMPOSITION OF AD VALOREM TAX Sec. 1079.252. TAX RATE Sec. 1079.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1079. JACK COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1079.001. 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 Jack County Hospital District. (Acts 70th Leg., R.S., Ch. 16, Sec. 1.01.)

Sec. 1079.002. AUTHORITY FOR OPERATION. The Jack County Hospital District operates and is financed as provided by Section 9, Article IX, Texas Constitution, and by this chapter. (Acts 70th Leg., R.S., Ch. 16, Sec. 1.02.)

Sec. 1079.003. ESSENTIAL PUBLIC FUNCTION. The district is a public entity performing an essential public function. (Acts 70th Leg., R.S., Ch. 16, Sec. 7.11 (part).)

Sec. 1079.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Jack County, Texas. (Acts 70th Leg., R.S., Ch. 16, Sec. 1.03.)

Sec. 1079.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. This state may not become obligated for the support or maintenance of the district. (Acts 70th Leg., R.S., Ch. 16, Sec. 9.01 (part).)

Sec. 1079.006. 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., R.S., Ch. 16, Sec. 9.01 (part).)

[Sections 1079.007-1079.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1079.051. BOARD ELECTION; TERM. (a) The board is governed by five directors elected at large by place.

(b) Unless four-year terms are established under Section 285.081, Health and Safety Code:

(1) directors serve staggered two-year terms;

(2) a directors' election shall be held on the uniform election date in May of each year; and

(3) the terms of the directors elected to places 1, 3, and 5 expire in even-numbered years and the terms of the directors elected to places 2 and 4 expire in odd-numbered years.

(c) A director's term begins on June 1 following the director's election. (Acts 70th Leg., R.S., Ch. 16, Sec. 4.01; Acts 74th Leg., R.S., Ch. 70, Sec. 4.)

Sec. 1079.052. QUALIFICATIONS FOR OFFICE. To be eligible to be a candidate for or to serve as a director, a person must be:

(1) a resident of the district; and

(2) a qualified voter. (Acts 70th Leg., R.S., Ch. 16, Sec. 4.02.)

Sec. 1079.053. 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 70th Leg., R.S., Ch. 16, Sec. 4.03.)

Sec. 1079.054. 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., R.S., Ch. 16, Sec. 4.04.)

Sec. 1079.055. OFFICERS. (a) The board shall elect a president and a vice president from among its members.

(b) The board shall appoint a secretary, who need not be a director.

(c) Each officer of the board serves for a term of one year.

(d) The board shall fill a vacancy in a board office for the unexpired term. (Acts 70th Leg., R.S., Ch. 16, Secs. 4.05, 4.06.)

Sec. 1079.056. COMPENSATION; EXPENSES. A director or officer serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties. The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 70th Leg., R.S., Ch. 16, Sec. 4.07.)

Sec. 1079.057. VOTING REQUIREMENT. A concurrence of a majority of the directors voting is necessary in any matter relating to district business. (Acts 70th Leg., R.S., Ch. 16, Sec. 4.08.)

Sec. 1079.058. DISTRICT ADMINISTRATOR. (a) The board may appoint a qualified person as district administrator.

(b) The district administrator serves at the will of the board and is entitled to the compensation determined by the board.

(c) Before assuming the duties of district administrator, the administrator shall execute a bond in the amount determined by the board of not less than $5,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the administrator's duties under this chapter.

(d) The board may pay for the bond with district money. (Acts 70th Leg., R.S., Ch. 16, Sec. 4.09.)

Sec. 1079.059. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to the limitations prescribed by the board, the district administrator shall:

(1) supervise the work and activities of the district; and

(2) direct the general affairs of the district. (Acts 70th Leg., R.S., Ch. 16, Sec. 4.12.)

Sec. 1079.060. APPOINTMENT OF STAFF AND EMPLOYEES. (a) The board may appoint to the staff any doctors the board considers necessary for the efficient operation of the district and may make temporary appointments as necessary.

(b) The district may employ technicians, nurses, fiscal agents, accountants, architects, and other necessary employees.

(c) The board may delegate to the district administrator the authority to employ persons for the district. (Acts 70th Leg., R.S., Ch. 16, Secs. 4.10, 4.11.)

Sec. 1079.061. RETIREMENT BENEFITS. The board may provide retirement benefits for district employees by:

(1) establishing or administering a retirement program; or

(2) participating in:

(A) the Texas County and District Retirement System; or

(B) another statewide retirement system in which the district is eligible to participate. (Acts 70th Leg., R.S., Ch. 16, Sec. 4.13.)

[Sections 1079.062-1079.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1079.101. 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., R.S., Ch. 16, Sec. 5.02 (part).)

Sec. 1079.102. RESTRICTION ON COUNTY TAXATION AND DEBT. Jack County may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care for district residents. (Acts 70th Leg., R.S., Ch. 16, Sec. 5.01(b).)

Sec. 1079.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the hospital system and the district's money and resources. (Acts 70th Leg., R.S., Ch. 16, Sec. 5.03.)

Sec. 1079.104. 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., R.S., Ch. 16, Sec. 5.04.)

Sec. 1079.105. 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., R.S., Ch. 16, Sec. 5.05.)

Sec. 1079.106. MOBILE EMERGENCY MEDICAL SERVICE. The district may operate or provide for the operation of a mobile emergency medical service. (Acts 70th Leg., R.S., Ch. 16, Sec. 5.02 (part).)

Sec. 1079.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine:

(1) the type, number, and location of buildings required to maintain an adequate hospital system; and

(2) the type of equipment necessary for hospital care.

(b) The board may:

(1) acquire property, including facilities and equipment, for the district for use in the hospital system; and

(2) mortgage or pledge the property as security for the payment of the purchase price.

(c) The board may lease hospital facilities for the district.

(d) The board may sell or otherwise dispose of property, including facilities or equipment, for the district. (Acts 70th Leg., R.S., Ch. 16, Sec. 5.06.)

Sec. 1079.108. 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 that the district is not required to deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code.

(c) In a condemnation proceeding brought by the district, the district is not required to:

(1) pay in advance or provide a bond or other security for costs in the trial court;

(2) provide a bond for the issuance of a temporary restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on an appeal or petition for review. (Acts 70th Leg., R.S., Ch. 16, Sec. 5.09.)

Sec. 1079.109. COST OF RELOCATING OR ALTERING PROPERTY. In exercising the power of eminent domain, if the board requires relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of any railroad, highway, pipeline, or electric transmission and electric distribution, telegraph, or telephone line, conduit, pole, or facility, the district must bear the actual cost of relocating, raising, lowering, rerouting, changing the grade, or altering the construction to provide comparable replacement without enhancement of facilities, after deducting the net salvage value derived from the old facility. (Acts 70th Leg., R.S., Ch. 16, Sec. 5.10.)

Sec. 1079.110. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust for any purpose and under any direction, limitation, or other provision prescribed in writing by the donor that is consistent with the proper management of the district. (Acts 70th Leg., R.S., Ch. 16, Sec. 5.14.)

Sec. 1079.111. 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 70th Leg., R.S., Ch. 16, Sec. 5.07(a).)

Sec. 1079.112. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to a hospital facility for the district. (Acts 70th Leg., R.S., Ch. 16, Sec. 5.08.)

Sec. 1079.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR SERVICES. The board may contract with a political subdivision of this state or with a state or federal agency for the district to:

(1) furnish a mobile emergency medical service; or

(2) provide for the investigatory or welfare needs of district inhabitants. (Acts 70th Leg., R.S., Ch. 16, Sec. 5.13.)

Sec. 1079.114. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a person who resides in the district is admitted as a patient to a district facility, the district administrator may have an inquiry made into the financial circumstances of:

(1) the patient; and

(2) a relative of the patient who is legally responsible for the patient's support.

(b) To the extent that the patient or a relative of the patient who is legally responsible for the patient's support cannot pay for care and treatment provided by the district, the district shall supply the care and treatment without charging the patient or the patient's relative.

(c) On determining that the patient or a relative legally responsible for the patient's support can pay for all or part of the care and treatment provided by the district, the district administrator shall report that determination to the board and the board shall issue an order directing the patient or the relative to pay the district a specified amount each week. The amount must be based on the individual's ability to pay.

(d) The district administrator may collect the money owed to the district from the patient's estate or from that of a relative 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 Jack County. The substantial evidence rule applies to the appeal. (Acts 70th Leg., R.S., Ch. 16, Secs. 5.11(b), (c), (d), (e), (f).)

Sec. 1079.115. REIMBURSEMENT FOR SERVICES. (a) The board shall require a county, municipality, or public hospital located outside the district to reimburse the district for the district's care and treatment of a sick or injured person of that county, municipality, or public hospital as provided by Chapter 61, Health and Safety Code.

(b) The board shall require the sheriff of Jack County or the police chief of the City of Jacksboro to reimburse the district for the district's care and treatment of a person who is confined in a jail facility of Jack County or the City of Jacksboro and is not a district resident.

(c) On behalf of the district, the board may contract with the state or federal government for that government to reimburse the district for treatment of a sick or injured person. (Acts 70th Leg., R.S., Ch. 16, Sec. 5.12.)

Sec. 1079.116. AUTHORITY TO SUE AND BE SUED. The board may sue and be sued on behalf of the district. (Acts 70th Leg., R.S., Ch. 16, Sec. 5.15.)

[Sections 1079.117-1079.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1079.151. 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., R.S., Ch. 16, Sec. 6.04.)

Sec. 1079.152. 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., R.S., Ch. 16, Sec. 6.05.)

Sec. 1079.153. AMENDMENTS TO BUDGET. After the annual budget is adopted, the budget may be amended on the board's approval. (Acts 70th Leg., R.S., Ch. 16, Sec. 6.06.)

Sec. 1079.154. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the budget or an amendment to the budget. (Acts 70th Leg., R.S., Ch. 16, Sec. 6.07.)

Sec. 1079.155. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that revenue bonds of the district are outstanding; or

(2) more than once in a 24-month period. (Acts 70th Leg., R.S., Ch. 16, Sec. 6.01.)

Sec. 1079.156. ANNUAL AUDIT. The board annually shall have an audit made of the district's financial condition. (Acts 70th Leg., R.S., Ch. 16, Sec. 6.02.)

Sec. 1079.157. 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., R.S., Ch. 16, Sec. 6.03.)

Sec. 1079.158. 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., R.S., Ch. 16, Sec. 6.08.)

Sec. 1079.159. 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 1079.160(b) and money transmitted to a bank for payment of bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and must remain on deposit. This subsection does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit.

(c) The district may not deposit money with a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation unless the bank first executes a bond or other security in an amount sufficient to secure from loss the district money that exceeds the amount secured by the Federal Deposit Insurance Corporation. (Acts 70th Leg., R.S., Ch. 16, Sec. 6.10.)

Sec. 1079.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as provided by Sections 1079.111, 1079.201, 1079.204, and 1079.205, the district may not incur a debt payable from district revenue other than the revenue on hand or to be on hand in the current and the immediately following district fiscal years.

(b) The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code. (Acts 70th Leg., R.S., Ch. 16, Sec. 6.09.)

[Sections 1079.161-1079.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1079.201. GENERAL OBLIGATION BONDS. If authorized by an election, the board may issue and sell general obligation bonds in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate buildings or improvements;

(2) equip buildings or improvements for hospital purposes; or

(3) acquire and operate a mobile emergency medical service. (Acts 70th Leg., R.S., Ch. 16, Sec. 7.01.)

Sec. 1079.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1079.201, 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., R.S., Ch. 16, Sec. 7.02.)

Sec. 1079.203. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

(b) The board may order a bond election.

(c) The order calling the election must specify:

(1) the nature and date of the election;

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

(3) the location of the polling places;

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

(5) the maximum maturity of the bonds.

(d) Notice of a bond election shall be given as provided by Section 1251.003, Government Code.

(e) The board shall declare the results of the election. (Acts 70th Leg., R.S., Ch. 16, Sec. 7.03.)

Sec. 1079.204. 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, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 70th Leg., R.S., Ch. 16, Sec. 7.04.)

Sec. 1079.205. REFUNDING BONDS. (a) The board may issue refunding bonds to refund an outstanding indebtedness issued or assumed by the district.

(b) Refunding bonds may be:

(1) sold, with the proceeds of the refunding bonds applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness. (Acts 70th Leg., R.S., Ch. 16, Secs. 7.05(a), (c) (part).)

Sec. 1079.206. MATURITY OF BONDS. District bonds must mature not later than 50 years after the date of issuance. (Acts 70th Leg., R.S., Ch. 16, Sec. 7.06 (part).)

Sec. 1079.207. 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., R.S., Ch. 16, Sec. 7.07.)

Sec. 1079.208. 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., R.S., Ch. 16, Sec. 7.11 (part).)

[Sections 1079.209-1079.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1079.251. IMPOSITION OF AD VALOREM TAX. (a) The board may impose a tax on all property in the district subject to district taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district; and

(2) the maintenance and operating expenses of the district.

(c) The district may not impose a tax to pay the principal of or interest on revenue bonds issued under this chapter. (Acts 70th Leg., R.S., Ch. 16, Secs. 8.01(a) (part), (c), (d), 8.02(b).)

Sec. 1079.252. TAX RATE. (a) The board may impose the tax at a rate not to exceed the limit approved by the voters at the election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on each $100 valuation of all taxable property in the district.

(c) In setting the tax rate, the board shall consider the income of the district from sources other than taxation. (Acts 70th Leg., R.S., Ch. 16, Secs. 8.01(a) (part), (b), 8.03 (part).)

Sec. 1079.253. 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., R.S., Ch. 16, Sec. 8.04(b).) CHAPTER 1080. NIXON HOSPITAL DISTRICT OF GONZALES AND WILSON COUNTIES, TEXAS COUNTIES, TEXAS SUBCHAPTER A. GENERAL PROVISIONS Sec. 1080.001. DEFINITIONS Sec. 1080.002. AUTHORITY FOR CREATION Sec. 1080.003. DISTRICT TERRITORY Sec. 1080.004. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1080.005. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1080.006-1080.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1080.051. BOARD ELECTION; TERMS Sec. 1080.052. QUALIFICATIONS FOR OFFICE Sec. 1080.053. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE Sec. 1080.054. OFFICERS Sec. 1080.055. COMPENSATION; EXPENSES Sec. 1080.056. DISTRICT ADMINISTRATOR Sec. 1080.057. EMPLOYEES Sec. 1080.058. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

[Sections 1080.059-1080.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1080.101. DISTRICT RESPONSIBILITY Sec. 1080.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1080.103. MANAGEMENT AND CONTROL OF THE DISTRICT Sec. 1080.104. HOSPITAL SYSTEM Sec. 1080.105. RULES Sec. 1080.106. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1080.107. EMINENT DOMAIN Sec. 1080.108. GIFTS AND ENDOWMENTS Sec. 1080.109. CONTRACTS WITH POLITICAL SUBDIVISIONS

FOR HOSPITAL AND MEDICAL CARE Sec. 1080.110. CONTRACT CONCERNING HEALTH CARE

FACILITY IN DISTRICT Sec. 1080.111. PAYMENT FOR TREATMENT; PROCEDURE

[Sections 1080.112-1080.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1080.151. BUDGET Sec. 1080.152. PROPOSED BUDGET: NOTICE AND HEARING Sec. 1080.153. FISCAL YEAR Sec. 1080.154. ANNUAL AUDIT Sec. 1080.155. DEPOSITORY

[Sections 1080.156-1080.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1080.201. BONDS Sec. 1080.202. TAX TO PAY BONDS Sec. 1080.203. BOND ELECTION Sec. 1080.204. MATURITY OF BONDS Sec. 1080.205. EXECUTION OF BONDS

[Sections 1080.206-1080.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1080.251. IMPOSITION OF AD VALOREM TAX Sec. 1080.252. TAX RATE Sec. 1080.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1080. NIXON HOSPITAL DISTRICT OF GONZALES AND WILSON

COUNTIES, TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1080.001. 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 Nixon Hospital District of Gonzales and Wilson Counties, Texas. (New.)

Sec. 1080.002. AUTHORITY FOR CREATION. The Nixon Hospital District of Gonzales and Wilson Counties, Texas, is created under the authority of Section 9, Article IX, Texas Constitution. (Acts 59th Leg., R.S., Ch. 644, Sec. 1.)

Sec. 1080.003. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 2(a), Chapter 644, Acts of the 59th Legislature, Regular Session, 1965. Notwithstanding the metes and bounds description provided by that section, the district does not include any land in Karnes County.

(b) The district's boundaries described by Section 2(a), Chapter 644, Acts of the 59th Legislature, Regular Session, 1965, form a closure. An error in copying the description of the boundaries does not affect the validity of the district. (Acts 59th Leg., R.S., Ch. 644, Secs. 2(b), (c); New.)

Sec. 1080.004. 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. 644, Sec. 17 (part).)

Sec. 1080.005. 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. 644, Sec. 17 (part).)

[Sections 1080.006-1080.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1080.051. BOARD ELECTION; TERMS. (a) The board consists of seven directors elected from the district at large.

(b) Directors serve staggered two-year terms unless four-year terms are established under Section 285.081, Health and Safety Code. (Acts 59th Leg., R.S., Ch. 644, Secs. 5(a) (part), (e), (f), (h) (part).)

Sec. 1080.052. QUALIFICATIONS FOR OFFICE. To qualify for election to the board, a person must:

(1) be at least 18 years of age;

(2) have been a resident of the district for at least two years;

(3) be a qualified voter; and

(4) own taxable property in the district and have duly rendered that property for taxation. (Acts 59th Leg., R.S., Ch. 644, Sec. 5(b).)

Sec. 1080.053. BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF OFFICE. (a) A person elected to the board 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 a director's bond.

(c) Each director's bond and constitutional oath or affirmation of office shall be deposited with the district's depository for safekeeping. (Acts 59th Leg., R.S., Ch. 644, Sec. 6(a).)

Sec. 1080.054. OFFICERS. The board shall elect from among its members a president, a secretary, and a treasurer at the first meeting after each directors' election. (Acts 59th Leg., R.S., Ch. 644, Sec. 6(b).)

Sec. 1080.055. COMPENSATION; EXPENSES. A director is not entitled to compensation but is entitled to reimbursement for necessary expenses incurred in the performance of official duties. (Acts 59th Leg., R.S., Ch. 644, Sec. 6(c).)

Sec. 1080.056. DISTRICT ADMINISTRATOR. (a) The board may employ a district administrator to manage the operations of the hospital system.

(b) The district administrator may employ necessary personnel to perform the services provided by the hospital system. (Acts 59th Leg., R.S., Ch. 644, Sec. 11(e) (part).)

Sec. 1080.057. EMPLOYEES. The board may employ an attorney, a general manager, a bookkeeper, an architect, and other employees necessary for the efficient operation of the district. (Acts 59th Leg., R.S., Ch. 644, Sec. 11(e) (part).)

Sec. 1080.058. 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. 644, Sec. 11(b).)

[Sections 1080.059-1080.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1080.101. DISTRICT RESPONSIBILITY. The district shall provide all necessary hospital and medical care for the district's needy inhabitants. (Acts 59th Leg., R.S., Ch. 644, Sec. 3(a) (part).)

Sec. 1080.102. 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. 644, Sec. 3(a) (part).)

Sec. 1080.103. MANAGEMENT AND CONTROL OF THE 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. 644, Secs. 5(a) (part), 11(a) (part).)

Sec. 1080.104. HOSPITAL SYSTEM. The district has the responsibility to establish a hospital, hospital system, or clinic within its boundaries to provide hospital and medical care to the district's residents. (Acts 59th Leg., R.S., Ch. 644, Sec. 3(a) (part).)

Sec. 1080.105. RULES. (a) The board shall adopt rules for the efficient operation of the district, including district facilities.

(b) The board shall:

(1) publish the rules in book form; and

(2) provide copies to interested persons on request at district expense. (Acts 59th Leg., R.S., Ch. 644, Sec. 11(c).)

Sec. 1080.106. PURCHASING AND ACCOUNTING PROCEDURES. The board may prescribe the method of making purchases and expenditures and the manner of accounting and control used by the district. (Acts 59th Leg., R.S., Ch. 644, Sec. 11(e) (part).)

Sec. 1080.107. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in real, personal, or mixed property located in district territory if the interest is necessary 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 petition for review. (Acts 59th Leg., R.S., Ch. 644, Sec. 14.)

Sec. 1080.108. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management of the district. (Acts 59th Leg., R.S., Ch. 644, Sec. 11(f).)

Sec. 1080.109. 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. 644, Sec. 11(g).)

Sec. 1080.110. CONTRACT CONCERNING HEALTH CARE FACILITY IN DISTRICT. The district may contract with any of the following entities for the entity to lease, manage, or operate a health care facility in the district:

(1) the DeWitt Medical District; and

(2) Gonzales Healthcare Systems. (Acts 59th Leg., R.S., Ch. 644, Secs. 3(b), (c).)

Sec. 1080.111. PAYMENT FOR TREATMENT; PROCEDURE. (a) A person who resides in the district is entitled to receive necessary medical and hospital care regardless of whether the person has the ability to pay for the care and may apply to receive this care without cost.

(b) The board or the district administrator shall employ a person to investigate the ability of the patient and any relative who is liable for the patient's support to pay for the medical and hospital care received by the patient.

(c) If the investigator determines that the patient or relative legally liable for the patient's support cannot pay all or part of the costs of the patient's care, the expense of the care becomes a charge against the district.

(d) If the patient or a relative legally liable for the patient's support can pay for all or part of the costs of the patient's care, the board shall order the patient or relative to pay to the treasurer each week an amount specified in the order. The amount must be proportionate to the person's ability to pay.

(e) The district may collect the amount from the patient's estate, or from any relative who is liable for the patient's support, in the manner provided by law for the collection of expenses of the last illness of a deceased person.

(f) If there is a dispute as to the ability to pay, or doubt in the mind of the investigator, the board shall hold a hearing and, after calling witnesses, shall:

(1) determine the question; and

(2) make the proper order based on the board's findings.

(g) A party to the hearing who is not satisfied with the result of the order may appeal to the district court. The appeal is de novo, as that term is used in an appeal from a justice court to a county court. (Acts 59th Leg., R.S., Ch. 644, Sec. 13.)

[Sections 1080.112-1080.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1080.151. 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. 644, Sec. 12(b).)

Sec. 1080.152. 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 each county 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 duly rendered that property for taxation is entitled to:

(1) appear at the hearing; and

(2) be heard regarding any item in the proposed budget. (Acts 59th Leg., R.S., Ch. 644, Secs. 12(c), (d).)

Sec. 1080.153. FISCAL YEAR. The district's fiscal year is from October 1 to September 30. (Acts 59th Leg., R.S., Ch. 644, Sec. 12(a).)

Sec. 1080.154. ANNUAL AUDIT. (a) The board annually shall require an independent audit of the district's books and records.

(b) Not later than December 1 of each year, the board shall file a copy of the audit with:

(1) the comptroller; and

(2) the district. (Acts 59th Leg., R.S., Ch. 644, Sec. 11(d).)

Sec. 1080.155. DEPOSITORY. (a) The board by resolution shall designate a bank in Gonzales or Wilson 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. 644, Sec. 15.)

[Sections 1080.156-1080.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1080.201. 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. 644, Sec. 9(a) (part).)

Sec. 1080.202. TAX TO PAY BONDS. The board may issue bonds under Section 1080.201 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. 644, Secs. 10(a) (part), (c).)

Sec. 1080.203. BOND ELECTION. (a) The board may issue bonds under Section 1080.201 only if the bonds are authorized by a majority of district voters voting in an election held for that purpose. The total face value of the bonds may not exceed the amount specified in the election order.

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

(c) The order calling an election must include:

(1) the time of the election;

(2) the location of the polling places;

(3) the form of the ballots;

(4) the presiding judge for each polling place;

(5) the purpose of the bond issuance;

(6) the amount of the bonds to be authorized;

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

(8) the maximum maturity of the bonds.

(d) A substantial copy of the election order shall be published in a newspaper of general circulation in each county in the district once a week for two consecutive weeks before the date of the election. The first notice must be published at least 14 days before the date of the election.

(e) A copy of the election results must be filed with the county clerks of Gonzales and Wilson Counties and become a public record. (Acts 59th Leg., R.S., Ch. 644, Secs. 4(c), (d), (e) (part), 9(a) (part), (b), (d), 10(a) (part).)

Sec. 1080.204. MATURITY OF BONDS. District bonds must mature not later than 40 years after the date of issuance. (Acts 59th Leg., R.S., Ch. 644, Sec. 9(c) (part).)

Sec. 1080.205. EXECUTION OF BONDS. (a) The board president shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds. (Acts 59th Leg., R.S., Ch. 644, Sec. 10(b) (part).)

[Sections 1080.206-1080.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1080.251. 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. 644, Secs. 8(a) (part), (c).)

Sec. 1080.252. TAX RATE. The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district. (Acts 59th Leg., R.S., Ch. 644, Sec. 8(a) (part).)

Sec. 1080.253. TAX ASSESSOR-COLLECTOR. The tax assessor-collectors of Gonzales and Wilson Counties shall collect the district taxes imposed on property located in each assessor-collector's respective county. (Acts 59th Leg., R.S., Ch. 644, Sec. 8(d) (part).) CHAPTER 1081. NOCONA HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1081.001. DEFINITIONS Sec. 1081.002. AUTHORITY FOR OPERATION Sec. 1081.003. ESSENTIAL PUBLIC FUNCTION Sec. 1081.004. DISTRICT TERRITORY Sec. 1081.005. CORRECTION OF INVALID PROCEDURES Sec. 1081.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1081.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1081.008-1081.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1081.051. BOARD ELECTION; TERM Sec. 1081.052. QUALIFICATIONS FOR OFFICE Sec. 1081.053. BOARD VACANCY Sec. 1081.054. OFFICERS Sec. 1081.055. COMPENSATION; EXPENSES Sec. 1081.056. QUORUM Sec. 1081.057. VOTING REQUIREMENT Sec. 1081.058. CHIEF EXECUTIVE OFFICER; ASSISTANT TO

CHIEF EXECUTIVE OFFICER Sec. 1081.059. GENERAL DUTIES OF CHIEF EXECUTIVE

OFFICER Sec. 1081.060. APPOINTMENT OF STAFF AND EMPLOYEES

[Sections 1081.061-1081.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1081.101. DISTRICT RESPONSIBILITY Sec. 1081.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1081.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1081.104. HOSPITAL SYSTEM Sec. 1081.105. RULES Sec. 1081.106. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1081.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1081.108. EMINENT DOMAIN Sec. 1081.109. GIFTS AND ENDOWMENTS Sec. 1081.110. CONSTRUCTION CONTRACTS Sec. 1081.111. OPERATING AND MANAGEMENT CONTRACTS Sec. 1081.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR HOSPITALIZATION Sec. 1081.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY AND OTHER SERVICES Sec. 1081.114. CARE AND TREATMENT FOR INDIGENT Sec. 1081.115. AUTHORITY TO SUE AND BE SUED

[Sections 1081.116-1081.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1081.151. BUDGET Sec. 1081.152. NOTICE; HEARING; ADOPTION OF BUDGET Sec. 1081.153. AMENDMENTS TO BUDGET Sec. 1081.154. RESTRICTION ON EXPENDITURES Sec. 1081.155. FISCAL YEAR Sec. 1081.156. AUDIT Sec. 1081.157. INSPECTION OF AUDIT AND DISTRICT

RECORDS Sec. 1081.158. FINANCIAL REPORT Sec. 1081.159. DEPOSITORY Sec. 1081.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1081.161-1081.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1081.201. GENERAL OBLIGATION BONDS Sec. 1081.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1081.203. GENERAL OBLIGATION BOND ELECTION Sec. 1081.204. REVENUE BONDS Sec. 1081.205. MATURITY OF BONDS Sec. 1081.206. EXECUTION OF BONDS Sec. 1081.207. BONDS EXEMPT FROM TAXATION

[Sections 1081.208-1081.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1081.251. IMPOSITION OF AD VALOREM TAX Sec. 1081.252. TAX RATE Sec. 1081.253. TAX ASSESSOR-COLLECTOR

[Sections 1081.254-1081.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION Sec. 1081.301. DISSOLUTION; ELECTION Sec. 1081.302. NOTICE OF ELECTION Sec. 1081.303. BALLOT Sec. 1081.304. ELECTION RESULTS Sec. 1081.305. TRANSFER OR ADMINISTRATION OF ASSETS Sec. 1081.306. IMPOSITION OF TAX AND RETURN OF SURPLUS Sec. 1081.307. REPORT; DISSOLUTION ORDER

CHAPTER 1081. NOCONA HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1081.001. 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 Nocona Hospital District. (New.)

Sec. 1081.002. AUTHORITY FOR OPERATION. The Nocona Hospital District operates in accordance with Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties provided by this chapter. (Acts 62nd Leg., R.S., Ch. 868, Sec. 1 (part).)

Sec. 1081.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 62nd Leg., R.S., Ch. 868, Sec. 21 (part).)

Sec. 1081.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of the Nocona and Prairie Valley Independent School Districts of Montague County, Texas, as those boundaries existed on January 1, 1971. (Acts 62nd Leg., R.S., Ch. 868, Sec. 1 (part).)

Sec. 1081.005. 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. 868, Sec. 23 (part).)

Sec. 1081.006. 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. 868, Sec. 20 (part).)

Sec. 1081.007. 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. 868, Sec. 20 (part).)

[Sections 1081.008-1081.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1081.051. BOARD ELECTION; TERM. (a) The board consists of seven directors elected from the district at large.

(b) Unless four-year terms are established under Section 285.081, Health and Safety Code:

(1) directors serve staggered two-year terms;

(2) an election shall be held annually on the May uniform election date under Section 41.001, Election Code; and

(3) the terms of four directors expire in odd-numbered years and the terms of three directors expire in even-numbered years. (Acts 62nd Leg., R.S., Ch. 868, Secs. 4(a), (b).)

Sec. 1081.052. QUALIFICATIONS FOR OFFICE. (a) A person may not be elected or appointed as a director unless the person is:

(1) a resident of the district; and

(2) a qualified voter.

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

(1) the district chief executive officer;

(2) a district employee; or

(3) a medical staff member of the hospital. (Acts 62nd Leg., R.S., Ch. 868, Sec. 4(e).)

Sec. 1081.053. BOARD VACANCY. If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term. (Acts 62nd Leg., R.S., Ch. 868, Sec. 4(d).)

Sec. 1081.054. OFFICERS. (a) The board shall elect:

(1) a president and vice president from among its members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

(c) The board shall fill a vacancy in a board office for the unexpired term. (Acts 62nd Leg., R.S., Ch. 868, Sec. 4(f) (part).)

Sec. 1081.055. COMPENSATION; EXPENSES. A director or officer serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties. The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 62nd Leg., R.S., Ch. 868, Sec. 4(f) (part).)

Sec. 1081.056. QUORUM. Any five directors constitute a quorum. (Acts 62nd Leg., R.S., Ch. 868, Sec. 4(f) (part).)

Sec. 1081.057. VOTING REQUIREMENT. A concurrence of five directors is sufficient in any matter relating to district business. (Acts 62nd Leg., R.S., Ch. 868, Sec. 4(f) (part).)

Sec. 1081.058. CHIEF EXECUTIVE OFFICER; ASSISTANT TO CHIEF EXECUTIVE OFFICER. (a) The board shall appoint a qualified person as the chief executive officer of the district.

(b) The board may appoint an assistant to the chief executive officer.

(c) The chief executive officer and any assistant to the chief executive officer serve at the will of the board and are entitled to the compensation determined by the board. (Acts 62nd Leg., R.S., Ch. 868, Sec. 5(c) (part).)

Sec. 1081.059. GENERAL DUTIES OF CHIEF EXECUTIVE OFFICER. Subject to the limitations prescribed by the board, the chief executive officer shall:

(1) supervise the work and activities of the district; and

(2) direct the affairs of the district. (Acts 62nd Leg., R.S., Ch. 868, Sec. 5(c) (part).)

Sec. 1081.060. APPOINTMENT OF STAFF AND EMPLOYEES. (a) The board may appoint to the staff any doctors the board considers necessary for the efficient operation of the district and may make temporary appointments as necessary.

(b) The district may employ fiscal agents, accountants, architects, and attorneys the board considers proper.

(c) The board may delegate to the chief executive officer the authority to hire district employees, including technicians and nurses. (Acts 62nd Leg., R.S., Ch. 868, Secs. 5(d), (e), 16.)

[Sections 1081.061-1081.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1081.101. DISTRICT RESPONSIBILITY. The district has full responsibility for operating all hospital facilities for providing hospital care for the district's needy inhabitants. (Acts 62nd Leg., R.S., Ch. 868, Sec. 19 (part).)

Sec. 1081.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision located within the district may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care for the district's inhabitants. (Acts 62nd Leg., R.S., Ch. 868, Sec. 19 (part).)

Sec. 1081.103. 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. 868, Sec. 5(a) (part).)

Sec. 1081.104. 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) residential care of the sick and injured;

(2) outpatient clinics;

(3) dispensaries;

(4) nursing home facilities;

(5) necessary nurses;

(6) training centers;

(7) blood banks;

(8) community mental health centers;

(9) research centers or laboratories; and

(10) any other facility the board considers necessary for hospital care. (Acts 62nd Leg., R.S., Ch. 868, Secs. 2 (part), 10(a) (part).)

Sec. 1081.105. 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. 868, Sec. 5(b) (part).)

Sec. 1081.106. 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. 868, Sec. 10(d) (part).)

Sec. 1081.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system.

(b) The board may lease all or part of the district's buildings and other facilities on terms considered to be in the best interest of the district's inhabitants. The term of the lease may not exceed 25 years.

(c) The district may acquire equipment for use in the district's hospital system and mortgage or pledge the property as security for the payment of the purchase price. A contract entered into under this subsection must provide that the entire obligation be retired not later than the fifth anniversary of the date of the contract.

(d) The district may sell or otherwise dispose of any property, including equipment, on terms the board finds are in the best interest of the district's inhabitants. (Acts 62nd Leg., R.S., Ch. 868, Secs. 10(a) (part), (b) (part), (c), (d) (part).)

Sec. 1081.108. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property located in district territory if the interest is necessary or convenient for the district to exercise a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, except the district is not required to deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code.

(c) In a condemnation proceeding brought by the district, the district is not required to:

(1) pay in advance or provide a bond or other security for costs in the trial court;

(2) provide a bond for the issuance of a temporary restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on an appeal or petition for review. (Acts 62nd Leg., R.S., Ch. 868, Sec. 14.)

Sec. 1081.109. 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. 868, Sec. 18.)

Sec. 1081.110. CONSTRUCTION CONTRACTS. A construction contract that requires the expenditure of more than the amount provided by Section 271.024, Local Government Code, may be entered into only after competitive bidding as provided by Subchapter B, Chapter 271, Local Government Code. (Acts 62nd Leg., R.S., Ch. 868, Sec. 10(d) (part).)

Sec. 1081.111. 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. 868, Sec. 10(b) (part).)

Sec. 1081.112. 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 hospital treatment of a sick or injured person. (Acts 62nd Leg., R.S., Ch. 868, Sec. 5(f) (part).)

Sec. 1081.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR INVESTIGATORY AND OTHER SERVICES. The board may contract with a political subdivision or governmental agency for the district to provide investigatory or other services for the hospitalization needs of district inhabitants. (Acts 62nd Leg., R.S., Ch. 868, Sec. 5(f) (part).)

Sec. 1081.114. CARE AND TREATMENT FOR INDIGENT. The district shall provide health care and treatment to indigent persons in accordance with policies and procedures adopted by the board. (Acts 62nd Leg., R.S., Ch. 868, Sec. 17.)

Sec. 1081.115. AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued. (Acts 62nd Leg., R.S., Ch. 868, Sec. 5(b) (part).)

[Sections 1081.116-1081.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1081.151. BUDGET. (a) The chief executive officer shall prepare an annual budget for approval by the board.

(b) The proposed budget must contain a complete financial statement of:

(1) the outstanding obligations of the district;

(2) the cash on hand in each district fund;

(3) the money received by the district from all sources during the previous year;

(4) the money available to the district from all sources during the ensuing year;

(5) the balances expected at the end of the year in which the budget is being prepared;

(6) the estimated revenue and balances available to cover the proposed budget; and

(7) the estimated tax rate required. (Acts 62nd Leg., R.S., Ch. 868, Sec. 6(b).)

Sec. 1081.152. 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) Any district resident is entitled to be present and be heard at the hearing.

(d) At the conclusion of the hearing, the board shall adopt a budget by acting on the budget proposed by the chief executive officer. 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. 868, Sec. 6(c) (part).)

Sec. 1081.153. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. (Acts 62nd Leg., R.S., Ch. 868, Sec. 6(c) (part).)

Sec. 1081.154. 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. 868, Sec. 6(c) (part).)

Sec. 1081.155. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) if revenue bonds of the district are outstanding; or

(2) more than once in a 24-month period. (Acts 62nd Leg., R.S., Ch. 868, Sec. 6(a) (part).)

Sec. 1081.156. AUDIT. The board shall have an audit made of the district's financial condition. (Acts 62nd Leg., R.S., Ch. 868, Sec. 6(a) (part).)

Sec. 1081.157. 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. 868, Sec. 6(a) (part).)

Sec. 1081.158. 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 disbursements of that money. (Acts 62nd Leg., R.S., Ch. 868, Sec. 6(c) (part).)

Sec. 1081.159. 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 1081.160(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. 868, Sec. 11.)

Sec. 1081.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as otherwise provided by Section 1081.107(c) 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 year.

(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. 868, Secs. 5(a) (part), 10(d) (part).)

[Sections 1081.161-1081.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1081.201. 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. 868, Sec. 7(a).)

Sec. 1081.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1081.201, 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 62nd Leg., R.S., Ch. 868, Sec. 7(b) (part).)

Sec. 1081.203. 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 and publication of notice for the bond election must be provided in accordance with Chapter 1251, Government Code. (Acts 62nd Leg., R.S., Ch. 868, Sec. 7(c) (part).)

Sec. 1081.204. 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, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 62nd Leg., R.S., Ch. 868, Sec. 9 (part).)

Sec. 1081.205. MATURITY OF BONDS. District bonds must mature not later than 40 years after the date of issuance. (Acts 62nd Leg., R.S., Ch. 868, Sec. 7(e) (part).)

Sec. 1081.206. EXECUTION OF BONDS. (a) The board president shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code. (Acts 62nd Leg., R.S., Ch. 868, Sec. 7(e) (part).)

Sec. 1081.207. 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 bonds. (Acts 62nd Leg., R.S., Ch. 868, Sec. 21 (part).)

[Sections 1081.208-1081.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1081.251. IMPOSITION OF AD VALOREM TAX. (a) The board shall impose a tax on all property in the district subject to district taxation.

(b) The board shall impose the tax to pay:

(1) indebtedness issued or assumed by the district; and

(2) the maintenance and operating expenses of the district.

(c) The board may not impose the tax to pay the principal of or interest on revenue bonds issued under Section 1081.204. (Acts 62nd Leg., R.S., Ch. 868, Secs. 7(b) (part), 12 (part), 15(b).)

Sec. 1081.252. 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. 868, Secs. 7(b) (part), 12 (part), 15(a).)

Sec. 1081.253. 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 62nd Leg., R.S., Ch. 868, Sec. 15(d).)

[Sections 1081.254-1081.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1081.301. DISSOLUTION; ELECTION. (a) The district may be dissolved only on approval of a majority of the registered district voters voting in an election held for that purpose.

(b) The board may order an election on the question of dissolving the district and disposing of the district's assets and obligations.

(c) The board shall order an election if the board receives a petition requesting an election that is signed by at least 15 percent of the registered voters in the district.

(d) The election shall be held not later than the 60th day after the date the election is ordered.

(e) 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.

(f) Section 41.001(a), Election Code, does not apply to an election ordered under this section. (Acts 62nd Leg., R.S., Ch. 868, Secs. 19A(a), (b), (c), (d).)

Sec. 1081.302. NOTICE OF ELECTION. (a) The board shall give notice of an election under this subchapter by publishing once a week for two consecutive weeks a substantial copy of the election order in a newspaper with general circulation in the district.

(b) The first publication of notice must appear not later than the 35th day before the date set for the election. (Acts 62nd Leg., R.S., Ch. 868, Sec. 19A(e).)

Sec. 1081.303. BALLOT. The ballot for an election under this subchapter must be printed to permit voting for or against the proposition: "The dissolution of the Nocona Hospital District." (Acts 62nd Leg., R.S., Ch. 868, Sec. 19A(f).)

Sec. 1081.304. 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 62nd Leg., R.S., Ch. 868, Sec. 19A(g).)

Sec. 1081.305. 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 Montague County or another governmental entity in Montague County; or

(2) administer the property, assets, and debts until all money has been disposed of and all district debts have been paid or settled.

(b) If the district makes the transfer under Subsection (a)(1), the county or entity assumes all debts and obligations of the district at the time of the transfer, and the district is dissolved.

(c) If Subsection (a)(1) does not apply and the board administers the property, assets, and debts of the district under Subsection (a)(2), the district is dissolved when all the money has been disposed of and all district debts have been paid or settled. (Acts 62nd Leg., R.S., Ch. 868, Secs. 19A(h), (i), (j).)

Sec. 1081.306. IMPOSITION OF TAX AND RETURN OF SURPLUS. (a) After the board finds that the district is dissolved, the board shall:

(1) determine any debt owed by the district; and

(2) impose on the property included on the district's tax roll a tax that is in proportion of any debt to the property value.

(b) On the payment of all outstanding debts and obligations of the district, the board shall order the 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 62nd Leg., R.S., Ch. 868, Secs. 19A(k), (l), (m).)

Sec. 1081.307. REPORT; DISSOLUTION ORDER. (a) After the district has paid all district debts and has disposed of all district money and other assets as prescribed by this subchapter, the board shall file a written report with the Commissioners Court of Montague County summarizing the board's actions in dissolving the district.

(b) Not later than the 10th day after the date the Commissioners Court of Montague 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 62nd Leg., R.S., Ch. 868, Secs. 19A(n), (o).) CHAPTER 1082. NOLAN COUNTY HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1082.001. DEFINITIONS Sec. 1082.002. AUTHORITY FOR OPERATION Sec. 1082.003. ESSENTIAL PUBLIC FUNCTION Sec. 1082.004. DISTRICT TERRITORY Sec. 1082.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1082.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1082.007-1082.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1082.051. BOARD ELECTION; TERMS Sec. 1082.052. NOTICE OF ELECTION Sec. 1082.053. BALLOT PETITION Sec. 1082.054. QUALIFICATIONS FOR OFFICE Sec. 1082.055. BOARD VACANCY Sec. 1082.056. OFFICERS Sec. 1082.057. COMPENSATION; EXPENSES Sec. 1082.058. VOTING REQUIREMENT Sec. 1082.059. DISTRICT ADMINISTRATOR Sec. 1082.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1082.061. ASSISTANT DISTRICT ADMINISTRATOR;

ATTORNEY Sec. 1082.062. APPOINTMENT OF STAFF AND EMPLOYEES Sec. 1082.063. RETIREMENT BENEFITS

[Sections 1082.064-1082.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1082.101. DISTRICT RESPONSIBILITY Sec. 1082.102. RESTRICTION ON GOVERNMENTAL ENTITY

TAXATION AND DEBT Sec. 1082.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1082.104. RULES Sec. 1082.105. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1082.106. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1082.107. EMINENT DOMAIN Sec. 1082.108. COST OF RELOCATING OR ALTERING PROPERTY Sec. 1082.109. GIFTS AND ENDOWMENTS Sec. 1082.110. CONSTRUCTION CONTRACTS Sec. 1082.111. OPERATING AND MANAGEMENT CONTRACTS Sec. 1082.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR SERVICES Sec. 1082.113. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1082.114. REIMBURSEMENT FOR SERVICES Sec. 1082.115. AUTHORITY TO SUE AND BE SUED

[Sections 1082.116-1082.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1082.151. BUDGET Sec. 1082.152. NOTICE; HEARING; ADOPTION OF BUDGET Sec. 1082.153. AMENDMENTS TO BUDGET Sec. 1082.154. RESTRICTION ON EXPENDITURES Sec. 1082.155. FISCAL YEAR Sec. 1082.156. ANNUAL AUDIT Sec. 1082.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS Sec. 1082.158. FINANCIAL REPORT Sec. 1082.159. DEPOSITORY Sec. 1082.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1082.161-1082.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1082.201. GENERAL OBLIGATION BONDS Sec. 1082.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1082.203. GENERAL OBLIGATION BOND ELECTION Sec. 1082.204. REVENUE BONDS Sec. 1082.205. REFUNDING BONDS Sec. 1082.206. MATURITY OF BONDS Sec. 1082.207. EXECUTION OF BONDS Sec. 1082.208. BONDS EXEMPT FROM TAXATION

[Sections 1082.209-1082.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1082.251. IMPOSITION OF AD VALOREM TAX Sec. 1082.252. TAX RATE Sec. 1082.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1082. NOLAN COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1082.001. 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 Nolan County Hospital District. (Acts 71st Leg., R.S., Ch. 8, Sec. 1.01.)

Sec. 1082.002. AUTHORITY FOR OPERATION. The Nolan County Hospital District operates and is financed as provided by Section 9, Article IX, Texas Constitution, and by this chapter. (Acts 71st Leg., R.S., Ch. 8, Sec. 1.02.)

Sec. 1082.003. ESSENTIAL PUBLIC FUNCTION. The district is a public entity performing an essential public function. (Acts 71st Leg., R.S., Ch. 8, Sec. 7.11 (part).)

Sec. 1082.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Nolan County, Texas. (Acts 71st Leg., R.S., Ch. 8, Sec. 1.03.)

Sec. 1082.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. The state may not become obligated for the support or maintenance of the district. (Acts 71st Leg., R.S., Ch. 8, Sec. 9.01 (part).)

Sec. 1082.006. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 71st Leg., R.S., Ch. 8, Sec. 9.01 (part).)

[Sections 1082.007-1082.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1082.051. BOARD ELECTION; TERMS. (a) The district is governed by a board of not fewer than seven or more than nine directors, as determined by the board.

(b) As determined by the board, the directors are elected from:

(1) the district at large;

(2) single-member districts; or

(3) any combination of single-member districts and at-large positions.

(c) At an election for directors in which at least two directors are to be elected at large, the appropriate number of candidates receiving the highest number of votes are elected. An election for at-large directors may not be by place or numbered post.

(d) Unless four-year terms are established under Section 285.081, Health and Safety Code:

(1) directors serve two-year terms; and

(2) an election shall be held each year to elect the appropriate number of directors. (Acts 71st Leg., R.S., Ch. 8, Secs. 4.01(a), 4.03(a) (part), (b), (d) (part).)

Sec. 1082.052. NOTICE OF ELECTION. Not later than the 35th day before the date of an election of directors, notice of the election shall be published one time in a newspaper with general circulation in the district. (Acts 71st Leg., R.S., Ch. 8, Sec. 4.04 (part).)

Sec. 1082.053. BALLOT PETITION. A person seeking to have the person's name printed on the ballot as a candidate for director must file with the board secretary a petition requesting that action. The petition must:

(1) be signed by at least 10 registered voters of the district, as determined by the most recent official list of registered voters, who:

(A) reside in the appropriate single-member district, if the person seeks to become a candidate to represent a single-member district; or

(B) reside anywhere in the district, if the person seeks to become a candidate to represent the district at large;

(2) be filed not later than the 31st day before the date of the election; and

(3) specify the single-member district the person seeks to represent or specify that the candidate seeks to represent the district at large. (Acts 71st Leg., R.S., Ch. 8, Sec. 4.05.)

Sec. 1082.054. QUALIFICATIONS FOR OFFICE. (a) To be eligible to be a candidate for or to serve as a director, a person must be:

(1) a resident of the district; and

(2) a qualified voter.

(b) A person who is elected from a single-member district or who is appointed to fill a vacancy for a single-member district must reside in that single-member district.

(c) A district employee may not serve as a director. (Acts 71st Leg., R.S., Ch. 8, Secs. 4.03 (part), 4.06.)

Sec. 1082.055. BOARD VACANCY. If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term. (Acts 71st Leg., R.S., Ch. 8, Sec. 4.07.)

Sec. 1082.056. OFFICERS. (a) The board shall elect a president and a vice president from among its members.

(b) The board shall appoint a secretary, who need not be a director.

(c) Each officer of the board serves for a term of one year.

(d) The board shall fill a vacancy in a board office for the unexpired term. (Acts 71st Leg., R.S., Ch. 8, Secs. 4.08, 4.09.)

Sec. 1082.057. COMPENSATION; EXPENSES. A director or officer serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties. The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 71st Leg., R.S., Ch. 8, Sec. 4.10.)

Sec. 1082.058. VOTING REQUIREMENT. A concurrence of a majority of the directors voting is necessary in any matter relating to district business. (Acts 71st Leg., R.S., Ch. 8, Sec. 4.11.)

Sec. 1082.059. 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 an amount determined by the board of not less than $5,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the administrator's duties under this chapter.

(d) The board may pay for the bond with district money. (Acts 71st Leg., R.S., Ch. 8, Secs. 4.12(a) (part), (b) (part), (c) (part), (d).)

Sec. 1082.060. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to the limitations prescribed by the board, the district administrator shall:

(1) supervise the work and activities of the district; and

(2) direct the general affairs of the district. (Acts 71st Leg., R.S., Ch. 8, Sec. 4.15.)

Sec. 1082.061. ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY. (a) The board may appoint qualified persons as:

(1) the assistant district administrator; and

(2) the attorney for the district.

(b) The assistant district administrator and the attorney for the district serve at the will of the board and are entitled to the compensation determined by the board. (Acts 71st Leg., R.S., Ch. 8, Secs. 4.12(a) (part), (b) (part), (c) (part).)

Sec. 1082.062. APPOINTMENT OF STAFF AND EMPLOYEES. (a) The board may appoint to the staff any doctors the board considers necessary for the efficient operation of the district and may make temporary appointments as considered necessary.

(b) The district may employ technicians, nurses, fiscal agents, accountants, architects, additional attorneys, and other necessary employees.

(c) The board may delegate to the district administrator the authority to employ persons for the district. (Acts 71st Leg., R.S., Ch. 8, Secs. 4.13, 4.14.)

Sec. 1082.063. RETIREMENT BENEFITS. The board may provide retirement benefits for district employees by:

(1) establishing or administering a retirement program; or

(2) participating in:

(A) the Texas County and District Retirement System; or

(B) another statewide retirement system in which the district is eligible to participate. (Acts 71st Leg., R.S., Ch. 8, Sec. 4.16.)

[Sections 1082.064-1082.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1082.101. DISTRICT RESPONSIBILITY. The district has full responsibility for:

(1) operating hospital facilities; and

(2) providing medical and hospital care for the district's needy inhabitants. (Acts 71st Leg., R.S., Ch. 8, Sec. 5.02 (part).)

Sec. 1082.102. RESTRICTION ON GOVERNMENTAL ENTITY TAXATION AND DEBT. Nolan County, the City of Sweetwater, or any other governmental entity in which the district is located may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care for district residents. (Acts 71st Leg., R.S., Ch. 8, Sec. 5.01(c).)

Sec. 1082.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the hospital system and the district's money and resources. (Acts 71st Leg., R.S., Ch. 8, Sec. 5.03.)

Sec. 1082.104. RULES. The board may adopt rules governing:

(1) the operation of the hospital and hospital system; and

(2) the duties, functions, and responsibilities of district staff and employees. (Acts 71st Leg., R.S., Ch. 8, Sec. 5.04.)

Sec. 1082.105. PURCHASING AND ACCOUNTING PROCEDURES. The board may prescribe:

(1) the method of making purchases and expenditures by and for the district; and

(2) accounting and control procedures for the district. (Acts 71st Leg., R.S., Ch. 8, Sec. 5.05.)

Sec. 1082.106. 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 property, including facilities or equipment, for the district. (Acts 71st Leg., R.S., Ch. 8, Sec. 5.06.)

Sec. 1082.107. 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 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 petition for review. (Acts 71st Leg., R.S., Ch. 8, Sec. 5.09.)

Sec. 1082.108. COST OF RELOCATING OR ALTERING PROPERTY. In exercising the power of eminent domain, if the board requires relocating, raising, lowering, rerouting, changing the grade, or altering the construction of any railroad, highway, pipeline, or electric transmission and electric distribution, telegraph, or telephone line, conduit, pole, or facility, the district must bear the actual cost of relocating, raising, lowering, rerouting, changing the grade, or altering the construction to provide comparable replacement without enhancement of facilities, after deducting the net salvage value derived from the old facility. (Acts 71st Leg., R.S., Ch. 8, Sec. 5.10.)

Sec. 1082.109. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust for any purpose and under any direction, limitation, or other provision prescribed in writing by the donor that is consistent with the proper management of the district. (Acts 71st Leg., R.S., Ch. 8, Sec. 5.14.)

Sec. 1082.110. CONSTRUCTION CONTRACTS. (a) The board may enter into construction contracts for the district.

(b) The board may enter into a construction contract that involves the expenditure of more than the amount provided by Section 271.024, Local Government Code, only after competitive bidding as provided by Subchapter B, Chapter 271, Local Government Code. (Acts 71st Leg., R.S., Ch. 8, Sec. 5.07(a).)

Sec. 1082.111. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to a hospital facility for the district. (Acts 71st Leg., R.S., Ch. 8, Sec. 5.08.)

Sec. 1082.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR SERVICES. The board may contract with a political subdivision of this state or with a state or federal agency for the district to:

(1) furnish a mobile emergency medical service; or

(2) provide for the investigatory or welfare needs of district inhabitants. (Acts 71st Leg., R.S., Ch. 8, Sec. 5.13.)

Sec. 1082.113. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a patient who resides in the district is admitted to a district facility, the district administrator may have an inquiry made into the financial circumstances of:

(1) the patient; or

(2) a relative of the patient who is legally responsible for the patient's support.

(b) The district without charge shall provide to a patient who resides in the district the care and treatment that the patient or a relative of the patient who is legally responsible for the patient's support cannot pay.

(c) On determining that the patient or a relative legally responsible for the patient's support can pay for all or part of the care and treatment provided by the district, the district administrator shall report that determination to the board, and the board shall issue an order directing the patient or the relative to pay the district a specified amount each week. The amount must be based on the individual's ability to pay.

(d) The district administrator may collect money owed to the district from the estate of the patient or from that of a relative legally responsible for the patient's support in the manner provided by law for collection of expenses of the last illness of a deceased person.

(e) If there is a dispute relating to an individual's ability to pay or if the district administrator has any doubt concerning an individual's ability to pay, the board shall:

(1) call witnesses;

(2) hear and resolve the question; and

(3) issue a final order.

(f) A final order of the board may be appealed to a district court in Nolan County. The substantial evidence rule applies to the appeal. (Acts 71st Leg., R.S., Ch. 8, Secs. 5.11(a), (c), (d), (e), (f).)

Sec. 1082.114. 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 Nolan County or the police chief of the City of Sweetwater, as appropriate, to reimburse the district for the district's care and treatment of a person who is confined in a jail facility of Nolan County or the City of Sweetwater, as appropriate, and is not a district resident.

(c) The board may contract with the state or federal government for that government to reimburse the district for treatment of a sick or injured person. (Acts 71st Leg., R.S., Ch. 8, Sec. 5.12.)

Sec. 1082.115. AUTHORITY TO SUE AND BE SUED. The board may sue and be sued on behalf of the district. (Acts 71st Leg., R.S., Ch. 8, Sec. 5.15.)

[Sections 1082.116-1082.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1082.151. 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 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 to be required. (Acts 71st Leg., R.S., Ch. 8, Sec. 6.04.)

Sec. 1082.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The board shall hold a public hearing on the proposed annual budget.

(b) The board shall publish notice of the hearing in a newspaper of general circulation in the district not later than the 10th day before the date of the hearing.

(c) Any district resident is entitled to be present and participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt a budget by acting on the budget proposed by the district administrator. The board may make any changes in the proposed budget that the board judges to be in the interests of the taxpayers.

(e) The budget is effective only after adoption by the board. (Acts 71st Leg., R.S., Ch. 8, Sec. 6.05.)

Sec. 1082.153. AMENDMENTS TO BUDGET. After the annual budget is adopted, the budget may be amended on the board's approval. (Acts 71st Leg., R.S., Ch. 8, Sec. 6.06.)

Sec. 1082.154. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the budget or an amendment to the budget. (Acts 71st Leg., R.S., Ch. 8, Sec. 6.07.)

Sec. 1082.155. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that revenue bonds of the district are outstanding; or

(2) more than once in a 24-month period. (Acts 71st Leg., R.S., Ch. 8, Sec. 6.01.)

Sec. 1082.156. ANNUAL AUDIT. The board annually shall have an audit made of the district's financial condition. (Acts 71st Leg., R.S., Ch. 8, Sec. 6.02.)

Sec. 1082.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT RECORDS. The annual audit and other district records are open to inspection during regular business hours at the district's principal office. (Acts 71st Leg., R.S., Ch. 8, Sec. 6.03.)

Sec. 1082.158. FINANCIAL REPORT. As soon as practicable after the close of the fiscal year, the district administrator shall prepare for the board:

(1) a sworn statement of the amount of district money; and

(2) an account of the disbursements of that money. (Acts 71st Leg., R.S., Ch. 8, Sec. 6.08.)

Sec. 1082.159. 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 1082.160(b) and money transmitted to a bank of payment as a trustee for bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and shall remain on deposit. This subsection does not limit the power of the board to place a portion of district money on time deposit or to purchase certificates of deposit.

(c) The district may not deposit money with a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation unless the bank first executes a bond or other security in an amount sufficient to secure from loss the district money that exceeds the amount secured by the Federal Deposit Insurance Corporation. (Acts 71st Leg., R.S., Ch. 8, Sec. 6.10.)

Sec. 1082.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as provided by Sections 1082.110, 1082.201, 1082.204, and 1082.205, the district may not incur a debt payable from district revenue other than the revenue on hand or to be on hand in the current and immediately following district fiscal years.

(b) The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code. (Acts 71st Leg., R.S., Ch. 8, Sec. 6.09.)

[Sections 1082.161-1082.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1082.201. GENERAL OBLIGATION BONDS. The board may issue and sell general obligation bonds authorized by an election in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate buildings or improvements; or

(2) equip buildings or improvements for hospital purposes. (Acts 71st Leg., R.S., Ch. 8, Sec. 7.01.)

Sec. 1082.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1082.201, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature.

(b) The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed the limit approved by the voters at the election authorizing the imposition of the tax. (Acts 71st Leg., R.S., Ch. 8, Sec. 7.02.)

Sec. 1082.203. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

(b) The board may order a bond election.

(c) The order calling the election must specify:

(1) the nature and date of the election;

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

(3) the location of the polling places;

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

(5) the maximum maturity of the bonds.

(d) Notice of a bond election shall be given as provided by Section 1251.003, Government Code.

(e) The board shall declare the results of the election. (Acts 71st Leg., R.S., Ch. 8, Sec. 7.03.)

Sec. 1082.204. REVENUE BONDS. (a) The board may issue revenue bonds to:

(1) purchase, construct, acquire, repair, equip, or renovate buildings or improvements for hospital purposes; or

(2) acquire sites to be used for hospital purposes.

(b) The bonds must be payable from and secured by a pledge of all or part of the revenue derived from the operation of the district's hospital system.

(c) The bonds may be additionally secured by a mortgage or deed of trust lien on all or part of district property.

(d) The bonds must be issued in the manner provided by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 71st Leg., R.S., Ch. 8, Sec. 7.04.)

Sec. 1082.205. REFUNDING BONDS. (a) The board may issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.

(b) Refunding bonds may be:

(1) sold, with the proceeds of the refunding bonds applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness. (Acts 71st Leg., R.S., Ch. 8, Secs. 7.05(a) (part), (c) (part).)

Sec. 1082.206. MATURITY OF BONDS. District bonds must mature not later than 40 years after the date of issuance. (Acts 71st Leg., R.S., Ch. 8, Sec. 7.06 (part).)

Sec. 1082.207. EXECUTION OF BONDS. (a) The board president shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code. (Acts 71st Leg., R.S., Ch. 8, Sec. 7.07.)

Sec. 1082.208. BONDS EXEMPT FROM TAXATION. The following are exempt from taxation by this state or a political subdivision of this state:

(1) bonds issued by the district;

(2) any transaction relating to the bonds; and

(3) profits made in the sale of the bonds. (Acts 71st Leg., R.S., Ch. 8, Sec. 7.11 (part).)

[Sections 1082.209-1082.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1082.251. IMPOSITION OF AD VALOREM TAX. (a) The board may impose a tax on all property in the district subject to district taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district; and

(2) the maintenance and operating expenses of the district.

(c) The district may not impose a tax to pay the principal of or interest on revenue bonds issued under this chapter. (Acts 71st Leg., R.S., Ch. 8, Secs. 8.01(a) (part), (c), (d), 8.02(b).)

Sec. 1082.252. TAX RATE. (a) The board may impose the tax at a rate not to exceed the limit approved by the voters at the election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on each $100 valuation of all taxable property in the district.

(c) In setting the tax rate, the board shall consider the income of the district from sources other than taxation. (Acts 71st Leg., R.S., Ch. 8, Secs. 8.01(a) (part), (b), 8.03 (part).)

Sec. 1082.253. TAX ASSESSOR-COLLECTOR. The board may provide for the appointment of a tax assessor-collector for the district or may contract for the assessment and collection of taxes as provided by the Tax Code. (Acts 71st Leg., R.S., Ch. 8, Sec. 8.04(b).) CHAPTER 1083. NORTH WHEELER COUNTY HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1083.001. DEFINITIONS Sec. 1083.002. AUTHORITY FOR CREATION Sec. 1083.003. ESSENTIAL PUBLIC FUNCTION Sec. 1083.004. DISTRICT TERRITORY Sec. 1083.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1083.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1083.007-1083.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1083.051. BOARD ELECTION; TERM Sec. 1083.052. NOTICE OF ELECTION Sec. 1083.053. BALLOT PETITION Sec. 1083.054. QUALIFICATIONS FOR OFFICE Sec. 1083.055. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE Sec. 1083.056. BOARD VACANCY Sec. 1083.057. OFFICERS Sec. 1083.058. COMPENSATION Sec. 1083.059. VOTING REQUIREMENT Sec. 1083.060. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR Sec. 1083.061. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1083.062. EMPLOYEES Sec. 1083.063. RETIREMENT PROGRAM

[Sections 1083.064-1083.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1083.101. DISTRICT RESPONSIBILITY Sec. 1083.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1083.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1083.104. HOSPITAL SYSTEM Sec. 1083.105. RULES Sec. 1083.106. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1083.107. EMINENT DOMAIN Sec. 1083.108. GIFTS AND ENDOWMENTS Sec. 1083.109. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT Sec. 1083.110. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1083.111. AUTHORITY TO SUE AND BE SUED

[Sections 1083.112-1083.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1083.151. BUDGET Sec. 1083.152. FISCAL YEAR Sec. 1083.153. AUDIT Sec. 1083.154. FINANCIAL REPORT Sec. 1083.155. DEPOSITORY

[Sections 1083.156-1083.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1083.201. GENERAL OBLIGATION BONDS Sec. 1083.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1083.203. GENERAL OBLIGATION BOND ELECTION Sec. 1083.204. EXECUTION OF GENERAL OBLIGATION BONDS Sec. 1083.205. REFUNDING BONDS Sec. 1083.206. BONDS EXEMPT FROM TAXATION

[Sections 1083.207-1083.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1083.251. IMPOSITION OF AD VALOREM TAX Sec. 1083.252. TAX RATE Sec. 1083.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1083. NORTH WHEELER COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1083.001. 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 North Wheeler County Hospital District. (New.)

Sec. 1083.002. AUTHORITY FOR CREATION. The North Wheeler County Hospital District is created under the authority of Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties prescribed by this chapter. (Acts 58th Leg., R.S., Ch. 260, Sec. 1 (part).)

Sec. 1083.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 58th Leg., R.S., Ch. 260, Sec. 8 (part).)

Sec. 1083.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of County Commissioners Precincts 1 and 2 of Wheeler County, Texas, as those boundaries existed on January 1, 1963. (Acts 58th Leg., R.S., Ch. 260, Sec. 1 (part).)

Sec. 1083.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. The support and maintenance of the district may not become a charge against or obligation of this state. (Acts 58th Leg., R.S., Ch. 260, Sec. 18 (part).)

Sec. 1083.006. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 58th Leg., R.S., Ch. 260, Sec. 18 (part).)

[Sections 1083.007-1083.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1083.051. BOARD ELECTION; TERM. (a) The district is governed by a board of five directors elected from single-member voting precincts.

(b) Unless four-year terms are established under Section 285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) a directors' election shall be held each year on the date that the election of public school trustees is held. (Acts 58th Leg., R.S., Ch. 260, Sec. 4 (part).)

Sec. 1083.052. NOTICE OF ELECTION. At least 10 days before the date of a directors' election, notice of the election shall be published one time in a newspaper of general circulation in Wheeler County. (Acts 58th Leg., R.S., Ch. 260, Sec. 4 (part).)

Sec. 1083.053. BALLOT PETITION. A person seeking to have the person's name printed on the ballot as a candidate for director must file with the board secretary a petition requesting that action. The petition must be:

(1) signed by not fewer than five registered voters who reside in the voting precinct the candidate seeks to represent; and

(2) filed at least 25 days before the date of the election. (Acts 58th Leg., R.S., Ch. 260, Sec. 4 (part).)

Sec. 1083.054. QUALIFICATIONS FOR OFFICE. A person may not be elected or appointed as a director unless the person:

(1) is a resident of the voting precinct the person is elected or appointed to represent;

(2) owns property in the district subject to taxation; and

(3) is more than 18 years of age at the time of election or appointment. (Acts 58th Leg., R.S., Ch. 260, Sec. 4 (part).)

Sec. 1083.055. BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF OFFICE. (a) Each director shall execute a good and sufficient commercial bond for $1,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the director's duties.

(b) The district shall pay for a director's bond.

(c) Each director's bond and constitutional oath or affirmation of office shall be deposited with the district's depository bank for safekeeping. (Acts 58th Leg., R.S., Ch. 260, Sec. 4 (part).)

Sec. 1083.056. BOARD VACANCY. (a) If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term.

(b) If the number of directors is reduced to fewer than three for any reason, the remaining directors shall immediately call a special election to fill the vacancies. If the remaining directors do not call the election, a district court, on application of a district voter or taxpayer, may order the directors to hold the election. (Acts 58th Leg., R.S., Ch. 260, Sec. 4 (part).)

Sec. 1083.057. OFFICERS. The board shall elect from among its members a president, a vice president, and a secretary. (Acts 58th Leg., R.S., Ch. 260, Sec. 4 (part).)

Sec. 1083.058. COMPENSATION. A director serves without compensation. (Acts 58th Leg., R.S., Ch. 260, Sec. 4 (part).)

Sec. 1083.059. VOTING REQUIREMENT. A concurrence of three directors is sufficient in any matter relating to district business. (Acts 58th Leg., R.S., Ch. 260, Sec. 4 (part).)

Sec. 1083.060. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The board shall appoint a qualified person as district administrator.

(b) The board may appoint an assistant administrator.

(c) The district administrator and any assistant administrator serve at the will of the board and are entitled to the compensation determined by the board.

(d) On assuming the duties of district administrator, the administrator shall execute a bond payable to the district in an amount set by the board of not less than $10,000 that:

(1) is conditioned on the administrator performing the administrator's duties; and

(2) contains other conditions the board may require. (Acts 58th Leg., R.S., Ch. 260, Sec. 5 (part).)

Sec. 1083.061. 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 58th Leg., R.S., Ch. 260, Sec. 5 (part).)

Sec. 1083.062. EMPLOYEES. The board may employ any doctors, technicians, nurses, and other employees as considered necessary for the efficient operation of the district or may provide that the district administrator has the authority to employ those persons. (Acts 58th Leg., R.S., Ch. 260, Sec. 5 (part).)

Sec. 1083.063. RETIREMENT PROGRAM. 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 58th Leg., R.S., Ch. 260, Sec. 5 (part).)

[Sections 1083.064-1083.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1083.101. DISTRICT RESPONSIBILITY. The district has full responsibility for:

(1) operating all hospital facilities for providing medical and hospital care of indigent persons; and

(2) providing medical and hospital care for the district's needy inhabitants. (Acts 58th Leg., R.S., Ch. 260, Secs. 2 (part), 17 (part).)

Sec. 1083.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. Wheeler County or another political subdivision, other than the district, may not impose a tax or issue bonds or other obligations for hospital purposes for medical treatment of indigent persons in the district. (Acts 58th Leg., R.S., Ch. 260, Sec. 17 (part).)

Sec. 1083.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the district's hospitals and hospital system. (Acts 58th Leg., R.S., Ch. 260, Sec. 5 (part).)

Sec. 1083.104. HOSPITAL SYSTEM. The district shall provide for:

(1) the establishment of a hospital or hospital system in the district by:

(A) purchasing, constructing, acquiring, repairing, or renovating buildings and improvements; and

(B) equipping the buildings and improvements; and

(2) the administration of the hospital system for hospital purposes. (Acts 58th Leg., R.S., Ch. 260, Sec. 2 (part).)

Sec. 1083.105. RULES. The board may adopt rules for the operation of the district and as required to administer this chapter. (Acts 58th Leg., R.S., Ch. 260, Secs. 5 (part), 9 (part).)

Sec. 1083.106. 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 58th Leg., R.S., Ch. 260, Sec. 9 (part).)

Sec. 1083.107. 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 power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code. (Acts 58th Leg., R.S., Ch. 260, Sec. 12.)

Sec. 1083.108. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district. (Acts 58th Leg., R.S., Ch. 260, Sec. 15.)

Sec. 1083.109. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT. (a) The board may contract with a county or municipality located outside Wheeler County 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 federal government is responsible. (Acts 58th Leg., R.S., Ch. 260, Sec. 5 (part).)

Sec. 1083.110. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a patient who resides in the district is admitted to a district facility, the district administrator shall have an inquiry made into the circumstances of:

(1) the patient; and

(2) the patient's relatives 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 estate of the patient, 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. (Acts 58th Leg., R.S., Ch. 260, Sec. 14.)

Sec. 1083.111. AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued. (Acts 58th Leg., R.S., Ch. 260, Sec. 5 (part).)

[Sections 1083.112-1083.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1083.151. BUDGET. (a) The district administrator shall prepare an annual budget for approval by the board. The budget must be for the fiscal year prescribed by Section 1083.152.

(b) Not later than August 31 of each year, the board shall publish notice of a public hearing on the proposed budget. The notice must be published in a newspaper of general circulation in Wheeler County at least 10 days before the date of the hearing. (Acts 58th Leg., R.S., Ch. 260, Secs. 6 (part), 16.)

Sec. 1083.152. FISCAL YEAR. The district operates on a fiscal year that begins on October 1 and ends on September 30. (Acts 58th Leg., R.S., Ch. 260, Sec. 6 (part).)

Sec. 1083.153. AUDIT. (a) The district shall have an audit made of the district's financial condition.

(b) The audit shall be open to inspection at all times at the district's principal office. (Acts 58th Leg., R.S., Ch. 260, Sec. 6 (part).)

Sec. 1083.154. FINANCIAL REPORT. As soon as practicable after the close of each fiscal year, the district administrator shall prepare for the board:

(1) a complete sworn statement of all district money; and

(2) a complete account of the disbursements of that money. (Acts 58th Leg., R.S., Ch. 260, Sec. 6 (part).)

Sec. 1083.155. DEPOSITORY. (a) The board shall select one or more banks in Wheeler County 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 58th Leg., R.S., Ch. 260, Sec. 10.)

[Sections 1083.156-1083.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1083.201. GENERAL OBLIGATION BONDS. (a) The board may issue and sell general obligation bonds in the name and on the faith and credit of the district for any purpose related to the purchase, construction, acquisition, repair, or renovation of buildings or improvements, and equipping buildings or improvements for a hospital and the hospital system, as determined by the board.

(b) The board shall issue the bonds in compliance with the applicable provisions of Subtitles A and C, Title 9, Government Code. (Acts 58th Leg., R.S., Ch. 260, Sec. 7 (part).)

Sec. 1083.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1083.201, 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 in any year exceed 75 cents on each $100 valuation of taxable property in the district. (Acts 58th Leg., R.S., Ch. 260, Sec. 7 (part).)

Sec. 1083.203. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

(b) The board shall call the election. The election must be held in accordance with Chapter 1251, Government Code.

(c) The bond election order must specify:

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding election officers;

(4) the amount of the bonds to be authorized;

(5) the maximum maturity of the bonds; and

(6) the maximum interest rate of the bonds. (Acts 58th Leg., R.S., Ch. 260, Sec. 7 (part).)

Sec. 1083.204. EXECUTION OF GENERAL OBLIGATION BONDS. The board president shall execute the general obligation bonds in the district's name, and the board secretary shall attest the bonds as provided by Chapter 618, Government Code. (Acts 58th Leg., R.S., Ch. 260, Sec. 7 (part).)

Sec. 1083.205. REFUNDING BONDS. (a) The board may, without an election, issue refunding bonds to refund any bonds issued by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bond applied to the payment of the outstanding bonds; or

(2) exchanged wholly or partly for not less than a similar principal amount of the outstanding bonds. (Acts 58th Leg., R.S., Ch. 260, Sec. 7 (part).)

Sec. 1083.206. BONDS EXEMPT FROM TAXATION. The following are exempt from taxation by this state or a political subdivision of this state:

(1) bonds issued by the district;

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

(3) profits made in the sale of the bonds. (Acts 58th Leg., R.S., Ch. 260, Sec. 8 (part).)

[Sections 1083.207-1083.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1083.251. IMPOSITION OF AD VALOREM TAX. (a) The district may impose a tax on all property in the district subject to district taxation.

(b) The tax may be used:

(1) to meet the requirements of district bonds; and

(2) for the district's maintenance and operating expenses. (Acts 58th Leg., R.S., Ch. 260, Sec. 3 (part).)

Sec. 1083.252. TAX RATE. The district may impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district. (Acts 58th Leg., R.S., Ch. 260, Sec. 3 (part).)

Sec. 1083.253. TAX ASSESSOR-COLLECTOR. The tax assessor-collector of Wheeler County shall assess and collect taxes imposed by the district. (Acts 58th Leg., R.S., Ch. 260, Sec. 13 (part).) CHAPTER 1084. PALO PINTO COUNTY HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1084.001. DEFINITIONS Sec. 1084.002. AUTHORITY FOR OPERATION Sec. 1084.003. POLITICAL SUBDIVISION Sec. 1084.004. DISTRICT TERRITORY Sec. 1084.005. CORRECTION OF INVALID PROCEDURES

[Sections 1084.006-1084.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1084.051. BOARD ELECTION; TERM Sec. 1084.052. NOTICE OF ELECTION Sec. 1084.053. QUALIFICATIONS FOR OFFICE Sec. 1084.054. GROUNDS FOR REMOVAL Sec. 1084.055. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION Sec. 1084.056. BOARD VACANCY Sec. 1084.057. DIRECTOR RIGHTS AND RESPONSIBILITIES Sec. 1084.058. OFFICERS Sec. 1084.059. COMPENSATION; EXPENSES Sec. 1084.060. VOTING REQUIREMENT Sec. 1084.061. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR Sec. 1084.062. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1084.063. ELECTION OF CHIEF OF STAFF Sec. 1084.064. APPOINTMENT AND RECRUITMENT OF STAFF

AND EMPLOYEES Sec. 1084.065. PERSONNEL CONTRACTS Sec. 1084.066. EDUCATIONAL PROGRAMS; COURSES Sec. 1084.067. RETIREMENT BENEFITS Sec. 1084.068. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

[Sections 1084.069-1084.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1084.101. DISTRICT RESPONSIBILITY Sec. 1084.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION Sec. 1084.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1084.104. RULES Sec. 1084.105. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1084.106. EMINENT DOMAIN Sec. 1084.107. GIFTS AND ENDOWMENTS Sec. 1084.108. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT Sec. 1084.109. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1084.110. NONPROFIT CORPORATION Sec. 1084.111. AUTHORITY TO SUE AND BE SUED Sec. 1084.112. INSPECTIONS

[Sections 1084.113-1084.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1084.151. BUDGET Sec. 1084.152. NOTICE; HEARING; ADOPTION OF BUDGET Sec. 1084.153. AMENDMENTS TO BUDGET Sec. 1084.154. FISCAL YEAR Sec. 1084.155. ANNUAL AUDIT Sec. 1084.156. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS Sec. 1084.157. DEPOSITORY OR TREASURER Sec. 1084.158. GENERAL AUTHORITY TO BORROW MONEY;

SECURITY Sec. 1084.159. AUTHORITY TO BORROW MONEY IN EMERGENCY;

SECURITY

[Sections 1084.160-1084.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1084.201. GENERAL OBLIGATION BONDS Sec. 1084.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1084.203. ELECTION FOR GENERAL OBLIGATION BONDS Sec. 1084.204. REVENUE BONDS Sec. 1084.205. EXECUTION OF BONDS

[Sections 1084.206-1084.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1084.251. IMPOSITION OF AD VALOREM TAX Sec. 1084.252. TAX RATE Sec. 1084.253. TAX ASSESSOR-COLLECTOR

[Sections 1084.254-1084.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION Sec. 1084.301. DISSOLUTION; ELECTION Sec. 1084.302. NOTICE OF ELECTION Sec. 1084.303. BALLOT Sec. 1084.304. ELECTION RESULTS Sec. 1084.305. TRANSFER, SALE, OR ADMINISTRATION OF

ASSETS Sec. 1084.306. SALE OR TRANSFER OF ASSETS AND

LIABILITIES Sec. 1084.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES Sec. 1084.308. REPORT; DISSOLUTION ORDER

CHAPTER 1084. PALO PINTO COUNTY

HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1084.001. 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 Palo Pinto County Hospital District. (New.)

Sec. 1084.002. AUTHORITY FOR OPERATION. The Palo Pinto County Hospital District operates in accordance with Section 9, Article IX, Texas Constitution. (Acts 59th Leg., R.S., Ch. 84, Sec. 1 (part).)

Sec. 1084.003. POLITICAL SUBDIVISION. The district is a political subdivision of this state. (Acts 59th Leg., R.S., Ch. 84, Sec. 16 (part).)

Sec. 1084.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Palo Pinto County, Texas. (Acts 59th Leg., R.S., Ch. 84, Sec. 1 (part).)

Sec. 1084.005. CORRECTION OF INVALID PROCEDURES. If a court holds that any procedure under this chapter violates the constitution of this state or of the United States, the district by resolution may provide an alternative procedure that conforms with the constitution. (Acts 59th Leg., R.S., Ch. 84, Sec. 17 (part).)

[Sections 1084.006-1084.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1084.051. BOARD ELECTION; TERM. (a) The district is governed by a board of seven directors as follows:

(1) six directors elected by place; and

(2) the chief of staff elected by the medical staff under Section 1084.063.

(b) Unless four-year terms are established under Section 285.081, Health and Safety Code, the directors elected to the board serve staggered two-year terms as follows:

(1) directors for places 1, 2, and 3 are elected on the uniform election date in May of each odd-numbered year; and

(2) directors for places 4, 5, and 6 are elected on the uniform election date in May of each even-numbered year. (Acts 59th Leg., R.S., Ch. 84, Secs. 4(a) (part), (d) (part).)

Sec. 1084.052. NOTICE OF ELECTION. Notice of each directors' election shall be published in a newspaper of general circulation in Palo Pinto County in accordance with Chapter 4, Election Code. (Acts 59th Leg., R.S., Ch. 84, Sec. 4(d) (part).)

Sec. 1084.053. QUALIFICATIONS FOR OFFICE. (a) A person may not be elected or appointed to an elected position on the board unless the person is:

(1) a resident of the district; and

(2) a qualified voter.

(b) In addition to the requirements prescribed by Subsection (a), a person is not eligible to serve as a director if the person:

(1) directly or indirectly has an ownership or investment interest in a health care facility located in Palo Pinto County; or

(2) directly or in conjunction with another person or entity has an ownership interest in another business or entity that:

(A) is related to health care; and

(B) provides a good or service to the area served by the district that is the same as or substantially similar to a good or service provided by the district.

(c) Subsection (b) does not apply to:

(1) an ownership or investment interest in publicly available shares of a registered investment company, such as a mutual fund, that owns publicly traded equity securities or debt obligations issued by:

(A) a health care facility;

(B) a business or entity described by Subsection (b); or

(C) an entity that owns the health care facility, business, or entity; or

(2) a physician's ownership interest in the physician's own medical practice. (Acts 59th Leg., R.S., Ch. 84, Secs. 4(a) (part), (a-1), (a-2).)

Sec. 1084.054. GROUNDS FOR REMOVAL. (a) It is a ground for removal from the board that a director violates a prohibition established by Section 1084.053(b). A director may be removed for the violation in accordance with the procedures provided by Subchapter B, Chapter 87, Local Government Code, for removing a county official.

(b) The validity of a board action is not affected by the fact that the action is taken when a ground for removal of a director exists. (Acts 59th Leg., R.S., Ch. 84, Secs. 4(a-3), (a-4), (a-5).)

Sec. 1084.055. BOND; RECORD OF BOND AND OATH OR AFFIRMATION. (a) Each director shall execute a good and sufficient bond for $5,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the director's duties.

(b) Each director's bond and the constitutional oath or affirmation of office shall be deposited with the district's depository bank for safekeeping. (Acts 59th Leg., R.S., Ch. 84, Sec. 4(b) (part).)

Sec. 1084.056. BOARD VACANCY. (a) If a vacancy occurs in the office of elected director, the remaining directors by majority vote 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 of the elected positions. If the remaining directors do not call the election, a district court, on application of a district voter or taxpayer, may order the directors to hold the election. (Acts 59th Leg., R.S., Ch. 84, Sec. 4(c) (part).)

Sec. 1084.057. DIRECTOR RIGHTS AND RESPONSIBILITIES. All directors have the same rights and responsibilities with regard to voting and other matters. (Acts 59th Leg., R.S., Ch. 84, Sec. 4(a) (part).)

Sec. 1084.058. OFFICERS. (a) The board shall elect a president, vice president, and secretary from among its members.

(b) Each officer of the board serves for a term of one year and may serve successive terms. (Acts 59th Leg., R.S., Ch. 84, Sec. 4(c) (part).)

Sec. 1084.059. COMPENSATION; EXPENSES. A director serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties on approval of the expenses by the entire board as reported in the board minutes. (Acts 59th Leg., R.S., Ch. 84, Sec. 4(e).)

Sec. 1084.060. VOTING REQUIREMENT. A concurrence of four directors is sufficient in any matter relating to district business. (Acts 59th Leg., R.S., Ch. 84, Sec. 4(c) (part).)

Sec. 1084.061. 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.

(e) The board may pay for the bond with district money. (Acts 59th Leg., R.S., Ch. 84, Sec. 7(b) (part).)

Sec. 1084.062. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to any limitations prescribed by the board, the district administrator shall:

(1) supervise the work and activities of the district; and

(2) direct the affairs of the district. (Acts 59th Leg., R.S., Ch. 84, Sec. 7(b) (part).)

Sec. 1084.063. ELECTION OF CHIEF OF STAFF. At least once every two years, the medical staff of the hospital system owned and operated by the district shall elect a chief of staff. (Acts 59th Leg., R.S., Ch. 84, Sec. 4(a) (part).)

Sec. 1084.064. APPOINTMENT AND RECRUITMENT OF STAFF AND EMPLOYEES. (a) The board may provide that the district administrator has the authority to employ or appoint to the staff doctors, nurses, technicians, and any other employees as necessary for the efficient operation of the district.

(b) 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; or

(4) paying the tuition or other expenses of a full-time medical student or other student in a health occupation who:

(A) is enrolled in and is in good standing at an accredited medical school, college, or university; and

(B) contractually agrees to become a district employee or independent contractor in return for that assistance. (Acts 59th Leg., R.S., Ch. 84, Secs. 7(b) (part), (g).)

Sec. 1084.065. PERSONNEL CONTRACTS. (a) The board may contract to provide administrative and other personnel for the operation of the hospital facilities.

(b) The term of a contract may not exceed 25 years. (Acts 59th Leg., R.S., Ch. 84, Sec. 7(e) (part).)

Sec. 1084.066. 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. 84, Sec. 7(i).)

Sec. 1084.067. RETIREMENT BENEFITS. The board may provide retirement benefits for district employees by:

(1) establishing or administering a retirement program; or

(2) participating in a statewide retirement system in which the district is eligible to participate. (Acts 59th Leg., R.S., Ch. 84, Sec. 7(f).)

Sec. 1084.068. MAINTENANCE OF RECORDS; PUBLIC INSPECTION. Except as provided by Section 1084.055, all district records, including books, accounts, notices, minutes, and all other matters of the district and the operation of its facilities, shall be:

(1) maintained at the district office; and

(2) open to public inspection at the district office at all reasonable hours. (Acts 59th Leg., R.S., Ch. 84, Sec. 7(l).)

[Sections 1084.069-1084.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1084.101. DISTRICT RESPONSIBILITY. The district has full responsibility for providing medical and hospital care for the district's needy and indigent residents. (Acts 59th Leg., R.S., Ch. 84, Secs. 2 (part), 12 (part).)

Sec. 1084.102. RESTRICTION ON COUNTY OR MUNICIPALITY TAXATION. Palo Pinto County or a municipality in the district may not impose a tax on property in the district for hospital purposes. (Acts 59th Leg., R.S., Ch. 84, Sec. 12 (part).)

Sec. 1084.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the district's hospitals and hospital system. (Acts 59th Leg., R.S., Ch. 84, Sec. 7(a) (part).)

Sec. 1084.104. RULES. (a) The board may adopt rules governing the operation of the district, including district facilities.

(b) On approval by the board, the rules may be published in booklet form at district expense and made available to any taxpayer on request. (Acts 59th Leg., R.S., Ch. 84, Sec. 7(m).)

Sec. 1084.105. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board may:

(1) purchase or lease property, including facilities or equipment, for the district to use in the hospital system; and

(2) mortgage or pledge the property as security for the payment of the purchase price.

(b) The board may lease district hospital facilities to individuals, corporations, or other legal entities.

(c) The board may sell or otherwise dispose of the district's property, including facilities or equipment. (Acts 59th Leg., R.S., Ch. 84, Secs. 7(d), (e) (part).)

Sec. 1084.106. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property, real, personal, or mixed, located in district territory, if the interest is necessary or convenient for the district to exercise a right, power, privilege, or function conferred on the district by this chapter.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, except the district is not required to deposit in the trial court money or a bond as provided by Section 21.021, 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 petition for review. (Acts 59th Leg., R.S., Ch. 84, Sec. 9.)

Sec. 1084.107. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or 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. 84, Sec. 14.)

Sec. 1084.108. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT. (a) The board may contract with a county or municipality located outside the district's boundaries for the care and treatment of a sick or injured person of that county or municipality.

(b) The board may contract with this state or a federal agency for the treatment of a sick or injured person. (Acts 59th Leg., R.S., Ch. 84, Sec. 7(c).)

Sec. 1084.109. 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 are liable to pay for all or part of the costs of the patient's care and treatment, the patient or those relatives shall be ordered to pay the district a specified amount each week for the patient's support. The amount ordered must be proportionate to the person's financial ability.

(d) The district may collect the amount from the estate of the patient, 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) The board may institute a suit to collect an amount owed to the district by a patient who has not been determined to be unable to pay under this section.

(f) If there is a dispute as to the ability to pay, or doubt in the mind of the district administrator, the board shall hold a hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue an appropriate order. (Acts 59th Leg., R.S., Ch. 84, Secs. 7(j), 13.)

Sec. 1084.110. NONPROFIT CORPORATION. (a) The district may create and sponsor a nonprofit corporation under the Business Organizations Code and may contribute money to or solicit money for the corporation.

(b) The corporation may use district 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. (Acts 59th Leg., R.S., Ch. 84, Sec. 7(k).)

Sec. 1084.111. AUTHORITY TO SUE AND BE SUED. As a governmental agency, the district, through the board, may sue and be sued in the district's own name in any court of this state. (Acts 59th Leg., R.S., Ch. 84, Secs. 7(a) (part), 16 (part).)

Sec. 1084.112. INSPECTIONS. The district is subject to inspection by any authorized representative of this state. A district officer or employee shall:

(1) admit the representative into any district facility; and

(2) provide the representative with access on demand to any record, report, book, paper, or account relating to the district. (Acts 59th Leg., R.S., Ch. 84, Sec. 11.)

[Sections 1084.113-1084.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1084.151. BUDGET. The district administrator shall prepare an annual budget for approval by the board. (Acts 59th Leg., R.S., Ch. 84, Sec. 8(b) (part).)

Sec. 1084.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The board shall hold a public hearing on the proposed budget.

(b) Notice of the hearing must be published at least once in a newspaper of general circulation in the district not later than the 10th day before the date of the hearing.

(c) Any district resident is entitled to:

(1) appear at the time and place designated in the notice; and

(2) be heard regarding any item included in the proposed budget.

(d) The annual budget is effective only after adoption by the board. (Acts 59th Leg., R.S., Ch. 84, Sec. 8(b) (part).)

Sec. 1084.153. AMENDMENTS TO BUDGET. After the annual budget is adopted, the budget may be amended on the board's approval. (Acts 59th Leg., R.S., Ch. 84, Sec. 8(b) (part).)

Sec. 1084.154. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) 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. 84, Sec. 8(a) (part).)

Sec. 1084.155. ANNUAL AUDIT. The board annually shall have an independent audit made of the district's books and records. (Acts 59th Leg., R.S., Ch. 84, Sec. 8(a) (part).)

Sec. 1084.156. INSPECTION OF ANNUAL AUDIT AND DISTRICT RECORDS. The annual audit and other district records are open to inspection at the district's office. (Acts 59th Leg., R.S., Ch. 84, Sec. 8(a) (part).)

Sec. 1084.157. DEPOSITORY OR TREASURER. (a) The board by resolution shall designate a bank to serve as the district's depository or treasurer.

(b) All district money shall be secured in the manner provided for securing county funds. (Acts 59th Leg., R.S., Ch. 84, Sec. 10.)

Sec. 1084.158. 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 during the 12-month period following the date of the pledge that is not pledged to pay the principal of or interest on district bonds; or

(3) district bonds that have been authorized but not sold.

(c) A loan for which taxes or bonds are pledged must mature not later than the first anniversary of the date the loan is made. A loan for which district revenue is pledged must mature not later than the fifth anniversary of the date the loan is made. (Acts 59th Leg., R.S., Ch. 84, Sec. 6B.)

Sec. 1084.159. AUTHORITY TO BORROW MONEY IN EMERGENCY; SECURITY. (a) If money is not available to meet an authorized obligation of the district, the board shall adopt an order declaring an emergency. After the order is adopted, the board may borrow money on district notes at a rate not to exceed 12 percent a year to meet the obligation.

(b) To secure the loan, the board may pledge:

(1) district revenue that is not pledged to pay the district's bonded indebtedness;

(2) a district tax that is to be imposed not later than the first anniversary of the date of the loan and 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 spend money obtained from a loan under this section only to meet the obligation that made the loan necessary. The board may spend money obtained from any taxes or bonds used to secure the loan only for the purpose for which the taxes were imposed or the bonds were authorized. (Acts 59th Leg., R.S., Ch. 84, Sec. 6A.)

[Sections 1084.160-1084.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1084.201. GENERAL OBLIGATION BONDS. The board may issue and sell general obligation bonds authorized by an election in the name and on the faith and credit of the district, to:

(1) purchase, construct, acquire, repair, or renovate buildings or improvements;

(2) equip buildings or improvements for hospital purposes; and

(3) acquire sites to be used for district purposes. (Acts 59th Leg., R.S., Ch. 84, Sec. 6(a) (part).)

Sec. 1084.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1084.201, 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 59th Leg., R.S., Ch. 84, Sec. 6(a) (part).)

Sec. 1084.203. ELECTION FOR GENERAL OBLIGATION BONDS. (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 election shall be conducted in accordance with Chapter 1251, Government Code. (Acts 59th Leg., R.S., Ch. 84, Sec. 6(c).)

Sec. 1084.204. REVENUE BONDS. (a) The board may issue and sell revenue bonds in the name and on the faith and credit of the district to purchase, construct, acquire, repair, renovate, or equip buildings or improvements for district purposes.

(b) The bonds must be payable from and secured by a pledge of all or part of the revenue derived from the operation of the district's hospital system.

(c) The bonds may be additionally secured by a mortgage or deed of trust on all or part of district property.

(d) The bonds must be issued in the manner provided by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for the issuance of revenue bonds by a county hospital authority. (Acts 59th Leg., R.S., Ch. 84, Sec. 6(e).)

Sec. 1084.205. EXECUTION OF BONDS. (a) The board president shall execute district bonds in the district's name.

(b) The board secretary shall countersign the bonds. (Acts 59th Leg., R.S., Ch. 84, Sec. 6(b) (part).)

[Sections 1084.206-1084.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1084.251. IMPOSITION OF AD VALOREM TAX. (a) The board shall impose a tax on all property in the district subject to district taxation.

(b) The board shall impose the tax to:

(1) pay the interest on and create a sinking fund for bonds or other obligations issued or assumed by the district for hospital purposes;

(2) provide for the operation and maintenance of the district and hospital system;

(3) make improvements and additions to the hospital system; and

(4) acquire necessary sites for the hospital system by purchase, lease, or condemnation. (Acts 59th Leg., R.S., Ch. 84, Sec. 5(a) (part).)

Sec. 1084.252. 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. 84, Sec. 5(a) (part).)

Sec. 1084.253. 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. 84, Sec. 5(b) (part).)

[Sections 1084.254-1084.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1084.301. DISSOLUTION; ELECTION. (a) The district may be dissolved only on approval of a majority of the district voters voting in an election held for that purpose.

(b) The board may order an election on the question of dissolving the district and disposing of the district's assets and obligations.

(c) The board shall order an election if the board receives a petition requesting an election that is signed by at least 15 percent of the registered voters of the district.

(d) The order calling the election must state:

(1) the nature of the election, including the proposition to appear on the ballot;

(2) the date of the election;

(3) the hours during which the polls will be open; and

(4) the location of the polling places.

(e) Section 41.001(a), Election Code, does not apply to an election ordered under this section. (Acts 59th Leg., R.S., Ch. 84, Secs. 16A(a), (b), (c) (part).)

Sec. 1084.302. 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. 84, Sec. 16A(d) (part).)

Sec. 1084.303. BALLOT. The ballot for an election under this subchapter must be printed to permit voting for or against the proposition: "The dissolution of the Palo Pinto County Hospital District." (Acts 59th Leg., R.S., Ch. 84, Sec. 16A(d) (part).)

Sec. 1084.304. 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. 84, Sec. 16A(e).)

Sec. 1084.305. TRANSFER, SALE, OR ADMINISTRATION OF ASSETS. (a) If a majority of the votes in an election held under this subchapter favor dissolution, the board shall:

(1) transfer the land, buildings, improvements, equipment, and other assets that belong to the district to a county or to another governmental entity in Palo Pinto County;

(2) sell the assets and liabilities to another person; or

(3) administer the property, assets, and debts until all money has been disposed of and all district debts have been paid or settled.

(b) If the board makes the transfer under Subsection (a)(1), the county or entity assumes all debts and obligations of the district at the time of the transfer, and the district is dissolved.

(c) If Subsections (a)(1) and (2) do not apply and the board administers the property, assets, and debts of the district under Subsection (a)(3), the district is dissolved when all money has been disposed of and all district debts have been paid or settled. (Acts 59th Leg., R.S., Ch. 84, Secs. 16A(f), (g), (m) (part).)

Sec. 1084.306. SALE OR TRANSFER OF ASSETS AND LIABILITIES. (a) The dissolution of the district and the sale or transfer of the district's assets and liabilities to another person may not contravene a trust indenture or bond resolution relating to the district's outstanding bonds. The dissolution and sale or transfer does not diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district.

(b) The sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of district residents, including the residents' collective property rights in the district's assets.

(c) The district may not transfer or dispose of the district's assets except for due compensation unless:

(1) the transfer is made to another governmental entity that serves the district; and

(2) the transferred assets are to be used for the benefit of the district's residents.

(d) A grant from federal funds is an obligation to be repaid in satisfaction. (Acts 59th Leg., R.S., Ch. 84, Secs. 16A(m) (part), (n).)

Sec. 1084.307. 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 on 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. 84, Secs. 16A(h), (i), (j).)

Sec. 1084.308. 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 Palo Pinto County summarizing the board's actions in dissolving the district.

(b) Not later than the 10th day after the date the Commissioners Court of Palo Pinto 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. 84, Secs. 16A(k), (l).) CHAPTER 1085. PARKER COUNTY HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1085.001. DEFINITIONS Sec. 1085.002. AUTHORITY FOR CREATION Sec. 1085.003. ESSENTIAL PUBLIC FUNCTION Sec. 1085.004. DISTRICT TERRITORY Sec. 1085.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1085.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1085.007-1085.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1085.051. BOARD ELECTION; TERM Sec. 1085.052. NOTICE OF ELECTION Sec. 1085.053. BALLOT PETITION Sec. 1085.054. BOARD VACANCY Sec. 1085.055. OFFICERS Sec. 1085.056. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR Sec. 1085.057. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1085.058. APPOINTMENT OF STAFF AND EMPLOYEES Sec. 1085.059. RETIREMENT PROGRAM Sec. 1085.060. LEGAL COUNSEL

[Sections 1085.061-1085.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1085.101. DISTRICT RESPONSIBILITY Sec. 1085.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1085.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1085.104. HOSPITAL SYSTEM Sec. 1085.105. RULES Sec. 1085.106. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1085.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1085.108. EMINENT DOMAIN Sec. 1085.109. GIFTS AND ENDOWMENTS Sec. 1085.110. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT Sec. 1085.111. PAYMENT FOR TREATMENT; PROCEDURES

[Sections 1085.112-1085.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1085.151. BUDGET Sec. 1085.152. NOTICE; HEARING; APPROVAL OF BUDGET Sec. 1085.153. AMENDMENTS TO BUDGET Sec. 1085.154. RESTRICTION ON EXPENDITURES Sec. 1085.155. FISCAL YEAR Sec. 1085.156. AUDIT Sec. 1085.157. FINANCIAL REPORT Sec. 1085.158. DEPOSITORY Sec. 1085.159. AUTHORITY TO BORROW MONEY

[Sections 1085.160-1085.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1085.201. GENERAL OBLIGATION BONDS Sec. 1085.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1085.203. GENERAL OBLIGATION BOND ELECTION Sec. 1085.204. EXECUTION OF GENERAL OBLIGATION BONDS Sec. 1085.205. REFUNDING BONDS Sec. 1085.206. BONDS EXEMPT FROM TAXATION

[Sections 1085.207-1085.250 reserved for expansion]

SUBCHAPTER F. GENERAL TAX PROVISIONS Sec. 1085.251. IMPOSITION OF AD VALOREM TAX Sec. 1085.252. TAX RATE Sec. 1085.253. ELECTION TO INCREASE MAXIMUM TAX RATE Sec. 1085.254. TAX ASSESSOR-COLLECTOR

[Sections 1085.255-1085.300 reserved for expansion]

SUBCHAPTER G. SALES AND USE TAX Sec. 1085.301. DEFINITION: TAXABLE ITEM Sec. 1085.302. SALES AND USE TAX AUTHORIZED Sec. 1085.303. SALES TAX Sec. 1085.304. USE TAX Sec. 1085.305. CONSIDERATION OF TAX RATE Sec. 1085.306. APPLICABILITY OF TAX CODE Sec. 1085.307. REPEAL OF TAX

CHAPTER 1085. PARKER COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1085.001. 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 Parker County Hospital District. (New.)

Sec. 1085.002. AUTHORITY FOR CREATION. The Parker County Hospital District is created under the authority of Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties prescribed by this chapter. (Acts 59th Leg., R.S., Ch. 35, Sec. 1 (part).)

Sec. 1085.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 59th Leg., R.S., Ch. 35, Sec. 10 (part).)

Sec. 1085.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Parker County, Texas. (Acts 59th Leg., R.S., Ch. 35, Sec. 1 (part).)

Sec. 1085.005. 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. 35, Sec. 21 (part).)

Sec. 1085.006. 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. 35, Sec. 21 (part).)

[Sections 1085.007-1085.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1085.051. BOARD ELECTION; TERM. (a) The board consists of seven directors elected as follows:

(1) one director elected from each commissioners precinct of Parker County; and

(2) three directors elected from the district at large.

(b) The board shall declare the results of the election.

(c) Directors serve staggered two-year terms unless four-year terms are established under Section 285.081, Health and Safety Code. (Acts 59th Leg., R.S., Ch. 35, Secs. 4A(a), (b) (part), 4B(b), (d).)

Sec. 1085.052. NOTICE OF ELECTION. At least 60 days before the date of an election of directors, the board shall publish notice of the election one time in a newspaper of general circulation in the district. The notice must state the purpose of the election and the election date. (Acts 59th Leg., R.S., Ch. 35, Secs. 4A(b) (part), 4B(b).)

Sec. 1085.053. BALLOT PETITION. A person who wants to have the person's name printed on the ballot as a candidate for director must file with the board secretary a petition requesting that action. The petition must:

(1) be signed by at least 10 registered voters who reside in the district;

(2) be filed at least 31 days before the date of the election; and

(3) specify the county commissioners precinct the candidate wants to represent or specify that the candidate wants to represent the district at large. (Acts 59th Leg., R.S., Ch. 35, Secs. 4A(c) (part), 4B(c).)

Sec. 1085.054. BOARD VACANCY. If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term. (Acts 59th Leg., R.S., Ch. 35, Sec. 4A(h).)

Sec. 1085.055. OFFICERS. (a) The board shall elect a president, vice president, and secretary from among its members.

(b) Each officer of the board serves for a term of one year. (Acts 59th Leg., R.S., Ch. 35, Sec. 4A(g).)

Sec. 1085.056. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The board may appoint and employ a qualified person as district administrator.

(b) The board may appoint and employ 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 any other condition the board may require. (Acts 59th Leg., R.S., Ch. 35, Sec. 5 (part).)

Sec. 1085.057. 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 59th Leg., R.S., Ch. 35, Sec. 5 (part).)

Sec. 1085.058. APPOINTMENT OF STAFF AND EMPLOYEES. (a) The board may appoint to the staff any physicians and employ any technicians, nurses, and other employees the board considers necessary for the efficient operation of the district.

(b) The board may provide that the district administrator has the authority to hire district employees, including technicians and nurses. (Acts 59th Leg., R.S., Ch. 35, Sec. 5 (part).)

Sec. 1085.059. RETIREMENT PROGRAM. The board may enter into a contract or agreement with this state or the federal government as required to establish or continue a retirement program for the benefit of the district's employees. (Acts 59th Leg., R.S., Ch. 35, Sec. 5 (part).)

Sec. 1085.060. LEGAL COUNSEL. (a) The appropriate county, district, or criminal district attorney charged with representing Parker County in civil matters shall represent the district in all legal matters.

(b) The district shall contribute sufficient money to the Parker County general fund for the account designated for the appropriate attorney described in Subsection (a) to pay all additional salaries and expenses incurred by the attorney in performing the duties required by the district.

(c) The board may employ additional legal counsel the board considers advisable. (Acts 59th Leg., R.S., Ch. 35, Sec. 17.)

[Sections 1085.061-1085.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1085.101. DISTRICT RESPONSIBILITY. The district has full responsibility for:

(1) operating all hospital facilities for providing medical and hospital care of indigent persons in the district; and

(2) providing medical and hospital care for the district's needy inhabitants. (Acts 59th Leg., R.S., Ch. 35, Secs. 2 (part), 20 (part).)

Sec. 1085.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. Parker County or a municipality in Parker 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. 35, Sec. 20 (part).)

Sec. 1085.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the district's hospitals and hospital system. (Acts 59th Leg., R.S., Ch. 35, Sec. 5 (part).)

Sec. 1085.104. HOSPITAL SYSTEM. The district shall provide for:

(1) the establishment of a hospital system by:

(A) purchasing, constructing, acquiring, repairing, or renovating buildings and equipment; and

(B) equipping the buildings; and

(2) the administration of the hospital system for hospital purposes. (Acts 59th Leg., R.S., Ch. 35, Sec. 2 (part).)

Sec. 1085.105. RULES. The board may adopt rules as required to administer this chapter. (Acts 59th Leg., R.S., Ch. 35, Sec. 11 (part).)

Sec. 1085.106. 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 59th Leg., R.S., Ch. 35, Sec. 11 (part).)

Sec. 1085.107. 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 construct, purchase, acquire, lease, add to, maintain, operate, develop, regulate, sell, and convey all land, property, property rights, equipment, hospital facilities, and systems for the maintenance of hospitals, buildings, clinics, structures, and any other facilities. (Acts 59th Leg., R.S., Ch. 35, Secs. 5 (part), 9.)

Sec. 1085.108. EMINENT DOMAIN. (a) The district may:

(1) condemn and purchase all land, property, property rights, equipment, hospital facilities, and systems for the maintenance of hospitals, buildings, clinics, structures, and any other facilities; and

(2) exercise the power of eminent domain to effect a purpose described by Subdivision (1), or for acquiring or damaging any land or property, including any kind of property appurtenant to that land or property.

(b) The board must institute and exercise the power of eminent domain under a resolution adopted by the board and in the manner and by the procedure provided by Chapter 21, Property Code. (Acts 59th Leg., R.S., Ch. 35, Sec. 5 (part).)

Sec. 1085.109. 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. 35, Sec. 19.)

Sec. 1085.110. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT. (a) The board may contract with a county or a 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 federal government is responsible. (Acts 59th Leg., R.S., Ch. 35, Sec. 5 (part).)

Sec. 1085.111. 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 estate of the patient, 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 59th Leg., R.S., Ch. 35, Sec. 18.)

[Sections 1085.112-1085.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1085.151. BUDGET. The district administrator shall prepare an annual budget for approval by the board. (Acts 59th Leg., R.S., Ch. 35, Sec. 6 (part).)

Sec. 1085.152. NOTICE; HEARING; APPROVAL OF BUDGET. (a) The board shall hold a public hearing on the proposed annual budget.

(b) Notice of the hearing must be published one time at least 10 days before the date of the hearing.

(c) The board must approve the annual budget. (Acts 59th Leg., R.S., Ch. 35, Sec. 6 (part).)

Sec. 1085.153. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. (Acts 59th Leg., R.S., Ch. 35, Sec. 6 (part).)

Sec. 1085.154. 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. 35, Sec. 6 (part).)

Sec. 1085.155. FISCAL YEAR. The district operates according to a fiscal year that begins on October 1 and ends on September 30. (Acts 59th Leg., R.S., Ch. 35, Sec. 6 (part).)

Sec. 1085.156. AUDIT. (a) The district shall have an audit made of the district's financial condition.

(b) The audit shall be open to inspection at all times at the district's principal office. (Acts 59th Leg., R.S., Ch. 35, Sec. 6 (part).)

Sec. 1085.157. 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 59th Leg., R.S., Ch. 35, Sec. 6 (part).)

Sec. 1085.158. DEPOSITORY. (a) The board shall select one or more financial institutions to serve as a depository for district money.

(b) District money shall be immediately deposited on receipt with a depository institution, except that sufficient money must be remitted to the institution designated for the payment of principal of and interest on the district's outstanding bonds or other obligations assumed by the district in time for the institution to make that payment on or before the maturity date of the principal and interest.

(c) To the extent that money in a depository institution 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 financial institution does not disqualify the institution from being designated as a depository. (Acts 59th Leg., R.S., Ch. 35, Sec. 12.)

Sec. 1085.159. AUTHORITY TO BORROW MONEY. The board may contract indebtedness or borrow money for district purposes on the credit of the district or secured by revenues of district hospitals and the hospital system. (Acts 59th Leg., R.S., Ch. 35, Sec. 5 (part).)

[Sections 1085.160-1085.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1085.201. 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 improvements for hospitals and the hospital system, as determined by the board. (Acts 59th Leg., R.S., Ch. 35, Secs. 5 (part), 7 (part).)

Sec. 1085.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued under Section 1085.201, 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 in any year exceed the lesser of:

(1) the maximum tax rate approved by district voters; or

(2) 75 cents on each $100 valuation of all taxable property in the district. (Acts 59th Leg., R.S., Ch. 35, Sec. 7 (part).)

Sec. 1085.203. GENERAL OBLIGATION BOND ELECTION. (a) The board 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 interest rate of the bonds; and

(6) the maximum maturity of the bonds. (Acts 59th Leg., R.S., Ch. 35, Sec. 7 (part).)

Sec. 1085.204. EXECUTION OF GENERAL OBLIGATION BONDS. The board president shall execute the general obligation bonds in the district's name and the board secretary shall attest the bonds as provided by Chapter 618, Government Code. (Acts 59th Leg., R.S., Ch. 35, Sec. 7 (part).)

Sec. 1085.205. 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 outstanding bonds; or

(2) exchanged wholly or partly for not less than a similar principal amount of the outstanding bonds. (Acts 59th Leg., R.S., Ch. 35, Sec. 7 (part).)

Sec. 1085.206. BONDS EXEMPT FROM TAXATION. The following are exempt from taxation by this state or a political subdivision of this state:

(1) bonds issued by the district;

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

(3) profits made in the sale of the bonds. (Acts 59th Leg., R.S., Ch. 35, Sec. 10 (part).)

[Sections 1085.207-1085.250 reserved for expansion]

SUBCHAPTER F. GENERAL TAX PROVISIONS

Sec. 1085.251. IMPOSITION OF AD VALOREM TAX. (a) The board shall impose a tax on all property in the district subject to district taxation.

(b) The board shall impose the tax to pay:

(1) indebtedness issued or assumed by the district; and

(2) the maintenance and operating expenses of the district. (Acts 59th Leg., R.S., Ch. 35, Secs. 13 (part), 16 (part).)

Sec. 1085.252. TAX RATE. (a) The board may impose the tax at a rate not to exceed the lesser of:

(1) the maximum tax rate approved by district voters; or

(2) 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 59th Leg., R.S., Ch. 35, Secs. 3 (part), 13 (part).)

Sec. 1085.253. ELECTION TO INCREASE MAXIMUM TAX RATE. (a) The board may order an election to increase the district's maximum tax rate to a rate not to exceed 75 cents on each $100 valuation of taxable property in the district.

(b) The maximum tax rate may not be increased unless the increase is approved by a majority of the district voters voting in an election held for that purpose.

(c) An election held under this section must be ordered and notice must be given in the manner provided for a bond election under Subchapter E. (Acts 59th Leg., R.S., Ch. 35, Sec. 3 (part).)

Sec. 1085.254. TAX ASSESSOR-COLLECTOR. The tax assessor-collector of Parker County shall assess and collect taxes imposed by the district. (Acts 59th Leg., R.S., Ch. 35, Sec. 16 (part).)

[Sections 1085.255-1085.300 reserved for expansion]

SUBCHAPTER G. SALES AND USE TAX

Sec. 1085.301. DEFINITION: TAXABLE ITEM. (a) In this subchapter, "taxable item" includes only an item that is subject to a sales and use tax that might also be imposed by Parker County in the district. The term does not include an item that is not subject to a sales and use tax imposed by Parker County in the district.

(b) A change in the taxable status of an item for purposes of a sales and use tax imposed by Parker County results in the same change in the taxable status of the item for purposes of the tax imposed by the district. (Acts 59th Leg., R.S., Ch. 35, Sec. 13A(b) (part).)

Sec. 1085.302. SALES AND USE TAX AUTHORIZED. The district may adopt a sales and use tax for the benefit of the district if the tax is approved by a majority of the voters of the district voting at an election held for that purpose. (Acts 59th Leg., R.S., Ch. 35, Sec. 13A(a) (part).)

Sec. 1085.303. SALES TAX. (a) If the district adopts the tax under Section 1085.302, a tax is imposed on the receipts from the sale at retail of taxable items in the district.

(b) The rate of the tax imposed under Subsection (a) is one-half of one percent. (Acts 59th Leg., R.S., Ch. 35, Sec. 13A(b) (part).)

Sec. 1085.304. USE TAX. (a) If the district adopts the tax under Section 1085.302, an excise tax is imposed on the use, storage, or other consumption in the district of taxable items purchased, leased, or rented from a retailer during the period that the tax is effective in the district.

(b) The rate of the excise tax is the same as the rate of the sales tax portion of the sales and use tax and is applied to the sales price of the taxable items. (Acts 59th Leg., R.S., Ch. 35, Sec. 13A(b) (part).)

Sec. 1085.305. CONSIDERATION OF TAX RATE. The rate of the sales and use tax imposed by the district under this subchapter is not counted in determining the limitation prescribed by law on local sales and use taxes imposed by a municipality or county in the district. (Acts 59th Leg., R.S., Ch. 35, Sec. 13A(a) (part).)

Sec. 1085.306. APPLICABILITY OF TAX CODE. (a) Except as provided by Subsection (b) and Section 1085.307, Chapter 323, Tax Code, governs:

(1) an election to approve the adoption of the sales and use tax under this subchapter; and

(2) the imposition, computation, administration, governance, use, and repeal of the tax.

(b) The following sections of the Tax Code do not apply to the sales and use tax under this subchapter:

(1) Sections 323.101(d) and (e); and

(2) Section 323.209.

(c) In determining procedures under Chapter 323, Tax Code:

(1) a reference in that chapter to "the county" means the district; and

(2) a reference to the "commissioners court" means the board. (Acts 59th Leg., R.S., Ch. 35, Sec. 13A(c).)

Sec. 1085.307. REPEAL OF TAX. (a) If the district adopts the tax under Section 1085.302, the county clerk of Parker County shall place on the ballot a proposition on the question of repealing the tax if the county clerk receives a petition requesting the repeal that is signed by a number of registered voters of the district equal to at least 10 percent of the total number of votes cast in the most recent election at which the adoption of the tax was approved.

(b) The county clerk shall place the proposition on the ballot at the first November uniform election date that occurs at least 121 days after the date the county clerk receives the petition.

(c) If a majority of the voters voting in the election to repeal the tax approve the repeal, the repeal of the tax takes effect on the January 1 following the election. (Acts 59th Leg., R.S., Ch. 35, Sec. 13A(d).) CHAPTER 1088. REAGAN HOSPITAL DISTRICT OF REAGAN COUNTY, TEXAS SUBCHAPTER A. GENERAL PROVISIONS Sec. 1088.001. DEFINITIONS Sec. 1088.002. AUTHORITY FOR CREATION Sec. 1088.003. ESSENTIAL PUBLIC FUNCTION Sec. 1088.004. DISTRICT TERRITORY Sec. 1088.005. CORRECTION OF INVALID PROCEDURES Sec. 1088.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1088.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1088.008-1088.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1088.051. BOARD ELECTION; TERMS Sec. 1088.052. NOTICE OF ELECTION Sec. 1088.053. QUALIFICATIONS FOR OFFICE Sec. 1088.054. BOARD VACANCY Sec. 1088.055. OFFICERS Sec. 1088.056. VOTING REQUIREMENT Sec. 1088.057. DIRECTOR PARTICIPATION IN GROUP HEALTH

INSURANCE Sec. 1088.058. DISTRICT ADMINISTRATOR; ASSISTANT

DISTRICT ADMINISTRATORS Sec. 1088.059. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1088.060. APPOINTMENT AND DISMISSAL OF STAFF AND

EMPLOYEES; CONTRACT WITH DOCTORS Sec. 1088.061. RECRUITMENT OF MEDICAL STAFF AND

EMPLOYEES Sec. 1088.062. EDUCATIONAL PROGRAMS; COURSES Sec. 1088.063. SENIORITY; RETIREMENT BENEFITS

[Sections 1088.064-1088.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1088.101. DISTRICT RESPONSIBILITY Sec. 1088.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1088.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1088.104. HOSPITAL SYSTEM Sec. 1088.105. RULES Sec. 1088.106. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1088.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1088.108. EMINENT DOMAIN Sec. 1088.109. COST OF RELOCATING OR ALTERING PROPERTY Sec. 1088.110. GIFTS AND ENDOWMENTS Sec. 1088.111. CONSTRUCTION CONTRACTS Sec. 1088.112. OPERATING AND MANAGEMENT CONTRACTS Sec. 1088.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR HOSPITAL TREATMENT Sec. 1088.114. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES Sec. 1088.115. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1088.116. NONPROFIT CORPORATION Sec. 1088.117. AUTHORITY TO SUE AND BE SUED

[Sections 1088.118-1088.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1088.151. BUDGET Sec. 1088.152. NOTICE; HEARING; ADOPTION OF BUDGET Sec. 1088.153. AMENDMENTS TO BUDGET Sec. 1088.154. RESTRICTION ON EXPENDITURES Sec. 1088.155. FISCAL YEAR Sec. 1088.156. ANNUAL AUDIT Sec. 1088.157. INSPECTION OF AUDIT AND DISTRICT

RECORDS Sec. 1088.158. FINANCIAL REPORT Sec. 1088.159. DEPOSITORY Sec. 1088.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1088.161-1088.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1088.201. GENERAL OBLIGATION BONDS Sec. 1088.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1088.203. GENERAL OBLIGATION BOND ELECTION Sec. 1088.204. MATURITY OF GENERAL OBLIGATION BONDS Sec. 1088.205. EXECUTION OF GENERAL OBLIGATION BONDS Sec. 1088.206. REVENUE BONDS Sec. 1088.207. BONDS EXEMPT FROM TAXATION

[Sections 1088.208-1088.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1088.251. IMPOSITION OF AD VALOREM TAX Sec. 1088.252. TAX RATE Sec. 1088.253. TAX ASSESSOR-COLLECTOR

[Sections 1088.254-1088.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION Sec. 1088.301. DISSOLUTION; ELECTION Sec. 1088.302. NOTICE OF ELECTION Sec. 1088.303. BALLOT Sec. 1088.304. ELECTION RESULTS Sec. 1088.305. TRANSFER, SALE, OR ADMINISTRATION OF

ASSETS Sec. 1088.306. SALE OR TRANSFER OF ASSETS AND

LIABILITIES Sec. 1088.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES Sec. 1088.308. REPORT; DISSOLUTION ORDER

CHAPTER 1088. REAGAN HOSPITAL DISTRICT OF REAGAN

COUNTY, TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1088.001. 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 Reagan Hospital District of Reagan County, Texas. (New.)

Sec. 1088.002. AUTHORITY FOR CREATION. The Reagan Hospital District of Reagan County, Texas, is created under the authority of Section 9, Article IX, Texas Constitution. (Acts 65th Leg., R.S., Ch. 29, Sec. 1.)

Sec. 1088.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 65th Leg., R.S., Ch. 29, Sec. 22 (part).)

Sec. 1088.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of the Reagan County Independent School District of Reagan County, as those boundaries existed on March 24, 1977. (Acts 65th Leg., R.S., Ch. 29, Sec. 2.)

Sec. 1088.005. 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 65th Leg., R.S., Ch. 29, Sec. 23 (part).)

Sec. 1088.006. 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 65th Leg., R.S., Ch. 29, Sec. 21 (part).)

Sec. 1088.007. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 65th Leg., R.S., Ch. 29, Sec. 21 (part).)

[Sections 1088.008-1088.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1088.051. BOARD ELECTION; TERMS. (a) The board consists of six directors elected as follows:

(1) one director elected from each commissioners precinct of Reagan County; and

(2) two directors elected from the district at large.

(b) A redistricting or other change in the boundaries of the commissioners precincts of Reagan County does not affect the service or term of a director in office when the change occurs. The change in the commissioners precincts applies to each election of directors occurring after the change takes effect as the terms of directors then in office expire.

(c) Directors serve staggered three-year terms.

(d) An election shall be held on the uniform election date in May of each year to elect the appropriate number of directors. (Acts 65th Leg., R.S., Ch. 29, Secs. 5(a) (part), (b), (e) (part).)

Sec. 1088.052. NOTICE OF ELECTION. Notice of an election of directors shall be published one time in a newspaper of general circulation in the district in accordance with Chapter 4, Election Code. (Acts 65th Leg., R.S., Ch. 29, Sec. 5(e) (part).)

Sec. 1088.053. QUALIFICATIONS FOR OFFICE. (a) A person may not be elected or appointed as a director unless the person is:

(1) a resident of the district; and

(2) a qualified voter.

(b) A director elected from a commissioners precinct is not required to be a resident of that commissioners precinct. (Acts 65th Leg., R.S., Ch. 29, Secs. 5(a) (part), (c).)

Sec. 1088.054. BOARD VACANCY. (a) If a vacancy occurs in the office of director, the remaining directors shall appoint a director to hold office for the remainder of the unexpired term.

(b) If the number of directors is reduced to fewer than five, 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 resident, shall order the election. (Acts 65th Leg., R.S., Ch. 29, Sec. 5(d) (part).)

Sec. 1088.055. OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

(c) The board by vote shall fill a vacancy in a board office for the unexpired term. (Acts 65th Leg., R.S., Ch. 29, Sec. 5(d) (part).)

Sec. 1088.056. VOTING REQUIREMENT. A concurrence of four directors is sufficient in any matter relating to district business. (Acts 65th Leg., R.S., Ch. 29, Sec. 5(d) (part).)

Sec. 1088.057. DIRECTOR PARTICIPATION IN GROUP HEALTH INSURANCE. The directors may participate in any group health insurance plan sponsored by the district for district employees. (Acts 65th Leg., R.S., Ch. 29, Sec. 6(n).)

Sec. 1088.058. DISTRICT ADMINISTRATOR; ASSISTANT DISTRICT ADMINISTRATORS. (a) The board may appoint a qualified person as district administrator.

(b) The board may appoint assistant administrators.

(c) The district administrator and any assistant administrator serve at the will of the board and are entitled to the compensation determined by the board.

(d) On assuming the duties of district administrator, the administrator shall execute a bond payable to the district in an amount set by the board of not less than $5,000 that:

(1) is conditioned on the administrator performing the administrator's duties; and

(2) contains other conditions the board may require.

(e) The board may pay for the bond with district money. (Acts 65th Leg., R.S., Ch. 29, Sec. 6(d) (part).)

Sec. 1088.059. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to the limitations prescribed by the board, the district administrator shall:

(1) supervise the work and activities of the district; and

(2) direct the affairs of the district. (Acts 65th Leg., R.S., Ch. 29, Sec. 6(d) (part).)

Sec. 1088.060. APPOINTMENT AND DISMISSAL OF STAFF AND EMPLOYEES; CONTRACT WITH DOCTORS. (a) The board may appoint to or dismiss from the staff or contract with any doctors the board considers necessary for the efficient operation of the district and may make temporary appointments as necessary.

(b) The district may employ fiscal agents, accountants, architects, and attorneys the board considers proper.

(c) The board may delegate to the district administrator the authority to hire district employees, including technicians and nurses. (Acts 65th Leg., R.S., Ch. 29, Secs. 6(e), (f), 17.)

Sec. 1088.061. 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; or

(4) paying the tuition or other expenses of a full-time medical student or other student in a health occupation who:

(A) is enrolled in and is in good standing at an accredited medical school, college, or university; and

(B) contractually agrees to become a district employee or independent contractor in return for that assistance. (Acts 65th Leg., R.S., Ch. 29, Sec. 6(i).)

Sec. 1088.062. EDUCATIONAL PROGRAMS; COURSES. The board may provide or contract for the provision of educational programs or courses for district employees and medical staff. (Acts 65th Leg., R.S., Ch. 29, Sec. 6(k).)

Sec. 1088.063. SENIORITY; RETIREMENT BENEFITS. (a) The board may:

(1) adopt rules related to the seniority of district employees; and

(2) establish or administer a retirement program or elect to participate in any statewide retirement program in which the district is eligible to participate.

(b) The district may give effect to previous years of service for district employees continuously employed in the operation or management of the hospital facilities acquired from the county or a municipality when the district was created. (Acts 65th Leg., R.S., Ch. 29, Secs. 6(b), (c) (part).)

[Sections 1088.064-1088.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1088.101. DISTRICT RESPONSIBILITY. (a) The district has full responsibility for providing hospital care for the district's indigent residents.

(b) The district shall provide all necessary hospital and medical care for the district's needy inhabitants. (Acts 65th Leg., R.S., Ch. 29, Secs. 3(a) (part), 20 (part).)

Sec. 1088.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision of this state, other than the district, may not impose a tax or issue bonds or other obligations for hospital purposes or to provide hospital service or medical care in the district. (Acts 65th Leg., R.S., Ch. 29, Secs. 3(a) (part), 20 (part).)

Sec. 1088.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the hospital system and the district's money and resources. (Acts 65th Leg., R.S., Ch. 29, Sec. 6(a) (part).)

Sec. 1088.104. HOSPITAL SYSTEM. (a) The district has the responsibility to establish a hospital or hospital system within its boundaries to provide hospital and medical care to the district's residents.

(b) The district shall provide for:

(1) the establishment of a hospital system by:

(A) purchasing, constructing, acquiring, repairing, or renovating buildings and equipment; and

(B) equipping the buildings; and

(2) the administration of the hospital system for hospital purposes and medical purposes.

(c) The hospital system may include:

(1) facilities for domiciliary care of the sick, injured, or geriatric;

(2) outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses;

(6) domiciliaries and training centers;

(7) blood banks;

(8) community mental health centers;

(9) research centers or laboratories; and

(10) any other facilities the board considers necessary for medical and hospital care. (Acts 65th Leg., R.S., Ch. 29, Secs. 3(a) (part), (b) (part), 10 (part).)

Sec. 1088.105. RULES. The board may adopt rules governing the operation of the hospital, the hospital system, and the district's staff and employees. (Acts 65th Leg., R.S., Ch. 29, Sec. 6(c) (part).)

Sec. 1088.106. 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 65th Leg., R.S., Ch. 29, Sec. 11 (part).)

Sec. 1088.107. 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 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.

(d) 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.

(e) The district may sell or otherwise dispose of any property, including equipment, on terms the board finds are in the best interest of the district's inhabitants. (Acts 65th Leg., R.S., Ch. 29, Secs. 6(h), 10 (part), 11 (part).)

Sec. 1088.108. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property located in district territory if the interest is necessary or convenient for the district to exercise a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, except the district is not required to deposit in the trial court money or a bond as provided by Section 21.021, Property Code.

(c) In a condemnation proceeding brought by the district, the district is not required to:

(1) pay in advance or provide a bond or other security for costs in the trial court;

(2) provide a bond for the issuance of a temporary restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on an appeal or petition for review. (Acts 65th Leg., R.S., Ch. 29, Sec. 15(a).)

Sec. 1088.109. COST OF RELOCATING OR ALTERING PROPERTY. In exercising the power of eminent domain, if the board requires relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of any railroad, electric transmission and distribution, telegraph or telephone line, conduit, pole, or facility, or pipeline, the district must bear the actual cost of relocating, raising, lowering, rerouting, changing the grade, or altering the construction to provide comparable replacement without enhancement of facilities, after deducting the net salvage value derived from the old facility. (Acts 65th Leg., R.S., Ch. 29, Sec. 15(b).)

Sec. 1088.110. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district. (Acts 65th Leg., R.S., Ch. 29, Sec. 19.)

Sec. 1088.111. CONSTRUCTION CONTRACTS. A construction contract in excess of 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 65th Leg., R.S., Ch. 29, Sec. 11 (part).)

Sec. 1088.112. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to a district facility. (Acts 65th Leg., R.S., Ch. 29, Sec. 10 (part).)

Sec. 1088.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR HOSPITAL TREATMENT. (a) The board may contract with a county or municipality located outside the district's boundaries for the hospitalization 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 hospital treatment of a sick or injured person. (Acts 65th Leg., R.S., Ch. 29, Sec. 6(g) (part).)

Sec. 1088.114. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR INVESTIGATORY OR OTHER SERVICES. The board may contract with a political subdivision or governmental agency for the district to provide investigatory or other services for the medical, hospital, or welfare needs of district inhabitants. (Acts 65th Leg., R.S., Ch. 29, Sec. 6(g) (part).)

Sec. 1088.115. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a patient who resides in the district is admitted to a district hospital facility, the district administrator may have an inquiry made into the financial circumstances of:

(1) the patient; and

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

(b) If the district administrator determines that the patient or 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 the district administrator determines that the patient or relatives can pay for all or part of the costs of the care and treatment, as determined by the district's indigent health care policy, the patient or 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) The board may institute a suit to collect an amount owed to the district by a patient who has not been determined to be unable to pay under this section.

(f) If there is a dispute as to the ability to pay, or doubt in the mind of the district administrator concerning the ability to pay, the board shall hold a hearing and, after calling witnesses, shall determine the issue. (Acts 65th Leg., R.S., Ch. 29, Secs. 6(l), 18.)

Sec. 1088.116. NONPROFIT CORPORATION. (a) The district may create and sponsor a nonprofit corporation under the Business Organizations Code and may contribute money to or solicit money for the corporation.

(b) The corporation may use its money only to provide health care or other services the district is authorized to provide under this chapter.

(c) The corporation may invest the corporation's money in any manner in which the district may invest the district's money, including investing money as authorized by Chapter 2256, Government Code.

(d) The board shall establish controls to ensure that the corporation uses its money as required by this section. (Acts 65th Leg., R.S., Ch. 29, Sec. 6(m).)

Sec. 1088.117. AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued. (Acts 65th Leg., R.S., Ch. 29, Sec. 6(c) (part).)

[Sections 1088.118-1088.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1088.151. 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 65th Leg., R.S., Ch. 29, Sec. 7(c) (part).)

Sec. 1088.152. 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 of general circulation in the district.

(c) Any district resident is entitled to be present and participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt a budget by acting on the budget proposed by the district administrator. The board may make any changes in the proposed budget that the board judges to be in the interest of the taxpayers and that the law warrants. (Acts 65th Leg., R.S., Ch. 29, Sec. 7(c) (part).)

Sec. 1088.153. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. (Acts 65th Leg., R.S., Ch. 29, Sec. 7(c) (part).)

Sec. 1088.154. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the budget or an amendment to the budget. (Acts 65th Leg., R.S., Ch. 29, Sec. 7(c) (part).)

Sec. 1088.155. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that revenue bonds of the district are outstanding; or

(2) more than once in a 24-month period. (Acts 65th Leg., R.S., Ch. 29, Sec. 7(a).)

Sec. 1088.156. ANNUAL AUDIT. The board annually shall have an independent audit made of the district's books and records. (Acts 65th Leg., R.S., Ch. 29, Sec. 7(b) (part).)

Sec. 1088.157. INSPECTION OF AUDIT AND DISTRICT RECORDS. The annual audit and other district records shall be open to inspection at the district's principal office. (Acts 65th Leg., R.S., Ch. 29, Sec. 7(b) (part).)

Sec. 1088.158. 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 65th Leg., R.S., Ch. 29, Sec. 7(d).)

Sec. 1088.159. DEPOSITORY. (a) The board shall select one or more banks to serve as a depository for district money.

(b) District money, other than money invested as provided by Section 1088.160(b) and money transmitted to a bank for payment of bonds or obligations issued by the district, shall be deposited as received with the depository bank and shall remain on deposit.

(c) This chapter, including Subsection (b), does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit.

(d) The district may not deposit money with a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation unless the bank first executes treasury bonds in an amount sufficient to secure from loss the district money that exceeds the amount secured by the Federal Deposit Insurance Corporation. (Acts 65th Leg., R.S., Ch. 29, Sec. 12.)

Sec. 1088.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as otherwise provided by this chapter, the district may not incur an obligation payable from district revenue other than the revenue on hand or to be on hand in the current and following district fiscal years.

(b) The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code. (Acts 65th Leg., R.S., Ch. 29, Secs. 6(a) (part), 11 (part).)

[Sections 1088.161-1088.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1088.201. GENERAL OBLIGATION BONDS. The board may issue and sell general obligation bonds authorized by an election in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate buildings or improvements;

(2) equip the buildings or improvements; and

(3) acquire sites to be used for district purposes. (Acts 65th Leg., R.S., Ch. 29, Sec. 8(a) (part).)

Sec. 1088.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1088.201, 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 taxable property in the district. (Acts 65th Leg., R.S., Ch. 29, Sec. 8(a) (part).)

Sec. 1088.203. 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 called for that purpose.

(b) The election shall be conducted in accordance with Chapter 1251, Government Code. (Acts 65th Leg., R.S., Ch. 29, Sec. 8(a) (part).)

Sec. 1088.204. MATURITY OF GENERAL OBLIGATION BONDS. District bonds must mature not later than 40 years after the date of issuance. (Acts 65th Leg., R.S., Ch. 29, Sec. 8(d) (part).)

Sec. 1088.205. EXECUTION OF GENERAL OBLIGATION 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 65th Leg., R.S., Ch. 29, Sec. 8(d) (part).)

Sec. 1088.206. REVENUE BONDS. (a) The board may issue revenue bonds to:

(1) purchase, construct, acquire, repair, equip, or renovate buildings or improvements for district purposes; or

(2) acquire sites for those buildings or improvements.

(b) The bonds must be payable from and secured by a pledge of all or part of district revenue derived from the operation of the district's hospital system.

(c) The bonds may be additionally secured by a mortgage or deed of trust lien on all or part of district property.

(d) The bonds must be issued in the manner and in accordance with the procedures and requirements prescribed by Sections 264.042, 264.043, 264.044, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 65th Leg., R.S., Ch. 29, Sec. 9 (part).)

Sec. 1088.207. 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. 29, Sec. 22 (part).)

[Sections 1088.208-1088.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1088.251. 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 indebtedness issued or assumed by the district;

(2) provide for the operation and maintenance of the district and hospital system;

(3) make improvements and additions to the hospital system; and

(4) acquire necessary sites for those improvements and additions by purchase, lease, or condemnation.

(c) The board may not impose a tax to pay the principal of or interest on revenue bonds. (Acts 65th Leg., R.S., Ch. 29, Secs. 4(b) (part), 13(a) (part).)

Sec. 1088.252. 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 65th Leg., R.S., Ch. 29, Secs. 4(b) (part), 13(a) (part), (b) (part).)

Sec. 1088.253. 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 65th Leg., R.S., Ch. 29, Sec. 16 (part).)

[Sections 1088.254-1088.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1088.301. DISSOLUTION; ELECTION. (a) The district may be dissolved only on approval of a majority of the district voters voting in an election held for that purpose.

(b) The board may order an election on the question of dissolving the district and disposing of the district's assets and obligations.

(c) The board shall order an election if the board receives a petition requesting an election that is signed by at least 15 percent of the registered voters of the district.

(d) The order calling the election must state:

(1) the nature of the election, including the proposition to appear on the ballot;

(2) the date of the election;

(3) the hours during which the polls will be open; and

(4) the location of the polling places.

(e) Section 41.001(a), Election Code, does not apply to an election ordered under this section. (Acts 65th Leg., R.S., Ch. 29, Secs. 18A(a), (b), (c) (part).)

Sec. 1088.302. 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 65th Leg., R.S., Ch. 29, Sec. 18A(d) (part).)

Sec. 1088.303. BALLOT. The ballot for an election under this subchapter must be printed to permit voting for or against the proposition: "The dissolution of the Reagan Hospital District of Reagan County, Texas." (Acts 65th Leg., R.S., Ch. 29, Sec. 18A(d) (part).)

Sec. 1088.304. 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 65th Leg., R.S., Ch. 29, Sec. 18A(e).)

Sec. 1088.305. TRANSFER, SALE, OR ADMINISTRATION OF ASSETS. (a) If a majority of the votes in an 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 Reagan County or to another governmental entity in Reagan 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 the board does not make the transfer under Subsection (a)(1), the board shall sell the assets and liabilities to another person under Subsection (a)(2) or administer the property, assets, and debts of the district under Subsection (a)(3), and the district is dissolved when all money has been disposed of and all district debts have been paid or settled. (Acts 65th Leg., R.S., Ch. 29, Secs. 18A(f), (g), (m) (part).)

Sec. 1088.306. SALE OR TRANSFER OF ASSETS AND LIABILITIES. (a) The dissolution of the district and the sale or transfer of the district's assets and liabilities to another person may not contravene a trust indenture or bond resolution relating to the district's outstanding bonds. The dissolution and sale or transfer does not diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district.

(b) The sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of district residents, including the residents' collective property rights in the district's assets.

(c) The district may not transfer or dispose of the district's assets except for due compensation unless:

(1) the transfer is made to another governmental entity that serves the district; and

(2) the transferred assets are to be used for the benefit of the district's residents.

(d) A grant from federal funds is an obligation to be repaid in satisfaction. (Acts 65th Leg., R.S., Ch. 29, Secs. 18A(m) (part), (n).)

Sec. 1088.307. 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 65th Leg., R.S., Ch. 29, Secs. 18A(h), (i), (j).)

Sec. 1088.308. 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 Reagan County summarizing the board's actions in dissolving the district.

(b) Not later than the 10th day after the date the Commissioners Court of Reagan 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 65th Leg., R.S., Ch. 29, Secs. 18A(k), (l).) CHAPTER 1089. REEVES COUNTY HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1089.001. DEFINITIONS Sec. 1089.002. AUTHORITY FOR OPERATION Sec. 1089.003. ESSENTIAL PUBLIC FUNCTION Sec. 1089.004. DISTRICT TERRITORY Sec. 1089.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1089.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1089.007-1089.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1089.051. BOARD ELECTION; TERM Sec. 1089.052. NOTICE OF ELECTION Sec. 1089.053. QUALIFICATIONS FOR OFFICE Sec. 1089.054. BOND; RECORD OF BOND Sec. 1089.055. BOARD VACANCY Sec. 1089.056. OFFICERS Sec. 1089.057. COMPENSATION; EXPENSES Sec. 1089.058. VOTING REQUIREMENT Sec. 1089.059. DISTRICT ADMINISTRATOR Sec. 1089.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1089.061. ASSISTANT DISTRICT ADMINISTRATOR;

ATTORNEY Sec. 1089.062. APPOINTMENT OF STAFF AND EMPLOYEES Sec. 1089.063. RETIREMENT BENEFITS

[Sections 1089.064-1089.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1089.101. DISTRICT RESPONSIBILITY Sec. 1089.102. RESTRICTION ON COUNTY TAXATION AND DEBT Sec. 1089.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1089.104. RULES Sec. 1089.105. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1089.106. MOBILE EMERGENCY MEDICAL SERVICE Sec. 1089.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1089.108. EMINENT DOMAIN Sec. 1089.109. COST OF RELOCATING OR ALTERING PROPERTY Sec. 1089.110. GIFTS AND ENDOWMENTS Sec. 1089.111. CONSTRUCTION CONTRACTS Sec. 1089.112. OPERATING AND MANAGEMENT CONTRACTS Sec. 1089.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR SERVICES Sec. 1089.114. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1089.115. REIMBURSEMENT FOR SERVICES Sec. 1089.116. AUTHORITY TO SUE AND BE SUED

[Sections 1089.117-1089.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1089.151. BUDGET Sec. 1089.152. NOTICE; HEARING; ADOPTION OF BUDGET Sec. 1089.153. AMENDMENT OF BUDGET Sec. 1089.154. RESTRICTION ON EXPENDITURES Sec. 1089.155. FISCAL YEAR Sec. 1089.156. ANNUAL AUDIT Sec. 1089.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS Sec. 1089.158. FINANCIAL REPORT Sec. 1089.159. DEPOSITORY Sec. 1089.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1089.161-1089.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1089.201. GENERAL OBLIGATION BONDS Sec. 1089.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1089.203. GENERAL OBLIGATION BOND ELECTION Sec. 1089.204. REVENUE BONDS Sec. 1089.205. REFUNDING BONDS Sec. 1089.206. MATURITY OF BONDS Sec. 1089.207. EXECUTION OF BONDS Sec. 1089.208. BONDS EXEMPT FROM TAXATION

[Sections 1089.209-1089.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1089.251. IMPOSITION OF AD VALOREM TAX Sec. 1089.252. TAX RATE Sec. 1089.253. CONTRACT FOR TAX ASSESSMENT AND

COLLECTION

CHAPTER 1089. REEVES COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1089.001. 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 Reeves County Hospital District. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 1.01.)

Sec. 1089.002. AUTHORITY FOR OPERATION. The Reeves County Hospital 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. 11, Sec. 1.02.)

Sec. 1089.003. ESSENTIAL PUBLIC FUNCTION. The district is a public entity performing an essential public function. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 7.11 (part).)

Sec. 1089.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Reeves County. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 1.03.)

Sec. 1089.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. This state may not become obligated for the support or maintenance of the district. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 17.01 (part).)

Sec. 1089.006. 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. 11, Sec. 17.01 (part).)

[Sections 1089.007-1089.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1089.051. BOARD ELECTION; TERM. (a) The district is governed by a board of five directors.

(b) One director is elected from each commissioners precinct and one director is elected from the district at large.

(c) Unless four-year terms are established under Section 285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) an election shall be held on the uniform election date in May of each year to elect the appropriate number of directors. (Acts 70th Leg., 2nd C.S., Ch. 11, Secs. 4.01(a), 4.03(a), (d).)

Sec. 1089.052. 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. 11, Sec. 4.04.)

Sec. 1089.053. QUALIFICATIONS FOR OFFICE. (a) To be eligible to be a candidate for or to serve as a director, a person must be:

(1) a resident of the district; and

(2) a qualified voter.

(b) A person who is elected from a commissioners precinct or who is appointed to fill a vacancy for a commissioners precinct must be a resident of that commissioners precinct.

(c) A district employee may not serve as a director. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 4.06.)

Sec. 1089.054. 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) The bond shall be kept in the permanent records of the district. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 4.07.)

Sec. 1089.055. 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. 11, Sec. 4.08.)

Sec. 1089.056. OFFICERS. (a) The board shall elect a president and a vice president from among its members.

(b) The board shall appoint a secretary, who need not be a director.

(c) Each officer of the board serves for a term of one year.

(d) The board shall fill a vacancy in a board office for the unexpired term. (Acts 70th Leg., 2nd C.S., Ch. 11, Secs. 4.09, 4.10.)

Sec. 1089.057. 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. 11, Sec. 4.11.)

Sec. 1089.058. 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. 11, Sec. 4.12.)

Sec. 1089.059. DISTRICT ADMINISTRATOR. (a) The board may appoint a qualified person as district administrator.

(b) The district administrator serves at the will of the board and is entitled to the compensation determined by the board.

(c) Before assuming the duties of district administrator, the administrator must execute a bond in the amount determined by the board of not less than $5,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the administrator's duties under this chapter.

(d) The board may pay for the bond with district money. (Acts 70th Leg., 2nd C.S., Ch. 11, Secs. 4.13(a) (part), (b) (part), (c) (part), (d).)

Sec. 1089.060. 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. 11, Sec. 4.16.)

Sec. 1089.061. 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. 11, Secs. 4.13(a) (part), (b) (part), (c) (part).)

Sec. 1089.062. APPOINTMENT OF STAFF AND EMPLOYEES. (a) The board may appoint to the staff any doctors the board considers necessary for the efficient operation of the district and may make temporary appointments as necessary.

(b) The district may employ technicians, nurses, fiscal agents, accountants, architects, additional attorneys, and other necessary employees.

(c) The board may delegate to the district administrator the authority to employ persons for the district. (Acts 70th Leg., 2nd C.S., Ch. 11, Secs. 4.14, 4.15.)

Sec. 1089.063. RETIREMENT BENEFITS. The board may provide retirement benefits for district employees by:

(1) establishing or administering a retirement program; or

(2) participating in:

(A) the Texas County and District Retirement System; or

(B) another statewide retirement system in which the district is eligible to participate. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 4.17.)

[Sections 1089.064-1089.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1089.101. 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. 11, Sec. 5.02 (part).)

Sec. 1089.102. RESTRICTION ON COUNTY TAXATION AND DEBT. Reeves County may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care for district residents. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 5.01(b).)

Sec. 1089.103. 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. 11, Sec. 5.03.)

Sec. 1089.104. RULES. The board may adopt rules governing:

(1) the operation of the hospital and hospital system; and

(2) the duties, functions, and responsibilities of the district staff and employees. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 5.04.)

Sec. 1089.105. 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. 11, Sec. 5.05.)

Sec. 1089.106. MOBILE EMERGENCY MEDICAL SERVICE. The district may operate or provide for the operation of a mobile emergency medical service. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 5.02 (part).)

Sec. 1089.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine:

(1) the type, number, and location of buildings required to maintain an adequate hospital system; and

(2) the type of equipment necessary for hospital care.

(b) The board may:

(1) acquire property, including facilities and equipment, for the district for use in the hospital system; and

(2) mortgage or pledge the property as security for the payment of the purchase price.

(c) The board may lease hospital facilities for the district.

(d) The board may sell or otherwise dispose of the property, including facilities or equipment, for the district. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 5.06.)

Sec. 1089.108. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in property located in district territory if the property interest is necessary for the district to exercise a right or authority conferred by this chapter.

(b) The district may exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, except that the district is not required to deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code.

(c) In a condemnation proceeding brought by the district, the district is not required to:

(1) pay in advance or provide a bond or other security for costs in the trial court;

(2) provide a bond for the issuance of a temporary restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on an appeal or petition for review. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 5.09.)

Sec. 1089.109. COST OF RELOCATING OR ALTERING PROPERTY. In exercising the power of eminent domain, if the board requires relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of any railroad, highway, pipeline, electric transmission and electric distribution, telegraph, or telephone line, conduit, pole, or facility, the district must bear the actual cost of relocating, raising, lowering, rerouting, changing the grade, or altering the construction to provide comparable replacement, without enhancement of facilities, after deducting the net salvage value derived from the old facility. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 5.10.)

Sec. 1089.110. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust for any purpose and under any direction, limitation, or other provision prescribed in writing by the donor that is consistent with the proper management of the district. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 5.14.)

Sec. 1089.111. CONSTRUCTION CONTRACTS. (a) The board may enter into construction contracts for the district.

(b) The board may enter into a construction contract that involves an expenditure of more than the amount prescribed by Section 271.024, Local Government Code, only after competitive bidding as provided by Subchapter B, Chapter 271, Local Government Code. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 5.07(a).)

Sec. 1089.112. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to a hospital facility for the district. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 5.08.)

Sec. 1089.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR SERVICES. The board may contract with a political subdivision of this state or with a state or federal agency for the district to:

(1) furnish a mobile emergency medical service; or

(2) provide for the investigatory or welfare needs of district inhabitants. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 5.13.)

Sec. 1089.114. PAYMENT FOR TREATMENT; PROCEDURES. (a) The district administrator may have an inquiry made into the financial circumstances of:

(1) a person who resides in the district and is admitted as a patient to a district facility; and

(2) a relative of the patient who is legally responsible for the patient's support.

(b) To the extent that the patient or a relative of the patient who is legally responsible for the patient's support cannot pay for care and treatment provided by the district, the district shall supply the care and treatment without charging the patient or the patient's relative.

(c) On determining that the patient or a relative legally responsible for the patient's support can pay for all or part of the care and treatment provided by the district, the district administrator shall report that determination to the board and the board shall issue an order directing the patient or the relative to pay the district a specified amount each week. The amount must be based on the individual's ability to pay.

(d) The district administrator may collect the money owed to the district from the patient's estate or from that of a relative 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 Reeves County. The substantial evidence rule applies to the appeal. (Acts 70th Leg., 2nd C.S., Ch. 11, Secs. 5.11(b), (c), (d), (e), (f).)

Sec. 1089.115. REIMBURSEMENT FOR SERVICES. (a) The board shall require a county, municipality, or public hospital located outside the district to reimburse the district for the district's care and treatment of a sick or injured person of that county, municipality, or public hospital as provided by Chapter 61, Health and Safety Code.

(b) The board shall require the sheriff of Reeves County to reimburse the district for the district's care and treatment of a person who is confined in a jail facility of Reeves County and is not a district resident.

(c) On behalf of the district, the board may contract with the state or federal government for that government to reimburse the district for treatment of a sick or injured person. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 5.12.)

Sec. 1089.116. AUTHORITY TO SUE AND BE SUED. The board may sue and be sued on behalf of the district. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 5.15.)

[Sections 1089.117-1089.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1089.151. 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. 11, Sec. 6.04.)

Sec. 1089.152. 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. 11, Sec. 6.05.)

Sec. 1089.153. AMENDMENT OF BUDGET. After the annual budget is adopted, the budget may be amended on the board's approval. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 6.06.)

Sec. 1089.154. 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. 11, Sec. 6.07.)

Sec. 1089.155. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) 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. 11, Sec. 6.01.)

Sec. 1089.156. ANNUAL AUDIT. The board annually shall have an audit made of the district's financial condition. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 6.02.)

Sec. 1089.157. 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. 11, Sec. 6.03.)

Sec. 1089.158. 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. 11, Sec. 6.08.)

Sec. 1089.159. 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 1089.160(b) and money transmitted to a bank for payment of bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and must remain on deposit. This subsection does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit.

(c) The district may not deposit money with a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation unless the bank first executes a bond or other security in an amount sufficient to secure from loss the district money that exceeds the amount secured by the Federal Deposit Insurance Corporation. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 6.10.)

Sec. 1089.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as provided by Sections 1089.111, 1089.201, 1089.204, and 1089.205, the district may not incur a debt payable from district revenue other than the revenue on hand or to be on hand in the current and the immediately following district fiscal years.

(b) The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 6.09.)

[Sections 1089.161-1089.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1089.201. GENERAL OBLIGATION BONDS. If authorized by an election, the board may issue and sell general obligation bonds in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate buildings or improvements;

(2) equip buildings or improvements for hospital purposes; or

(3) acquire and operate a mobile emergency medical service. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 7.01.)

Sec. 1089.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1089.201, 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. 11, Sec. 7.02.)

Sec. 1089.203. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

(b) The board may order a bond election.

(c) The order calling the election must specify:

(1) the nature and date of the election;

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

(3) the location of the polling places;

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

(5) the maximum maturity of the bonds.

(d) Notice of a bond election shall be given as provided by Section 1251.003, Government Code.

(e) The board shall declare the results of the election. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 7.03.)

Sec. 1089.204. REVENUE BONDS. (a) The board may issue revenue bonds to:

(1) purchase, construct, acquire, repair, renovate, or equip buildings or improvements for hospital purposes;

(2) acquire sites to be used for hospital purposes; or

(3) acquire and operate a mobile emergency medical service to assist the district in carrying out its hospital purposes.

(b) The bonds must be payable from and secured by a pledge of all or part of the revenue derived from the operation of the district's hospital system.

(c) The bonds may be additionally secured by a mortgage or deed of trust lien on all or part of district property.

(d) The bonds must be issued in the manner provided by Sections 264.042, 264.043, and 264.046-264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 7.04.)

Sec. 1089.205. REFUNDING BONDS. (a) The board may issue refunding bonds to refund an outstanding indebtedness issued or assumed by the district.

(b) Refunding bonds may be:

(1) sold, with the proceeds of the refunding bonds applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness. (Acts 70th Leg., 2nd C.S., Ch. 11, Secs. 7.05(a), (c) (part).)

Sec. 1089.206. MATURITY OF BONDS. District bonds must mature not later than 50 years after the date of issuance. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 7.06 (part).)

Sec. 1089.207. 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. 11, Sec. 7.07.)

Sec. 1089.208. 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. 11, Sec. 7.11 (part).)

[Sections 1089.209-1089.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1089.251. IMPOSITION OF AD VALOREM TAX. (a) The board may impose a tax on all property in the district subject to district taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district; and

(2) the maintenance and operating expenses of the district.

(c) The district may not impose a tax to pay the principal of or interest on revenue bonds issued under this chapter. (Acts 70th Leg., 2nd C.S., Ch. 11, Secs. 8.01(a) (part), (c), (d), 8.02(b).)

Sec. 1089.252. TAX RATE. (a) The board may impose the tax at a rate not to exceed the limit approved by the voters at the election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on each $100 valuation of all taxable property in the district.

(c) In setting the tax rate, the board shall consider the income of the district from sources other than taxation. (Acts 70th Leg., 2nd C.S., Ch. 11, Secs. 8.01(a) (part), (b), 8.03 (part).)

Sec. 1089.253. CONTRACT FOR TAX ASSESSMENT AND COLLECTION. The board shall contract for the assessment and collection of taxes as provided by the Tax Code. (Acts 70th Leg., 2nd C.S., Ch. 11, Sec. 8.04(b).) CHAPTER 1090. REFUGIO COUNTY MEMORIAL HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1090.001. DEFINITIONS Sec. 1090.002. AUTHORITY FOR OPERATION Sec. 1090.003. ESSENTIAL PUBLIC FUNCTION Sec. 1090.004. DISTRICT TERRITORY Sec. 1090.005. CORRECTION OF INVALID PROCEDURES Sec. 1090.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1090.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1090.008-1090.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1090.051. BOARD ELECTION; TERM Sec. 1090.052. NOTICE OF ELECTION Sec. 1090.053. QUALIFICATIONS FOR OFFICE Sec. 1090.054. BOARD VACANCY Sec. 1090.055. OFFICERS Sec. 1090.056. COMPENSATION; EXPENSES Sec. 1090.057. VOTING REQUIREMENT Sec. 1090.058. INSURANCE FOR DIRECTORS AND OFFICERS Sec. 1090.059. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR Sec. 1090.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1090.061. APPOINTMENT AND RECRUITMENT OF STAFF

AND EMPLOYEES Sec. 1090.062. HEALTH EDUCATION Sec. 1090.063. RETIREMENT BENEFITS

[Sections 1090.064-1090.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1090.101. DISTRICT RESPONSIBILITY Sec. 1090.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1090.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1090.104. HOSPITAL SYSTEM Sec. 1090.105. RULES Sec. 1090.106. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1090.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1090.108. EMINENT DOMAIN Sec. 1090.109. COST OF RELOCATING OR ALTERING PROPERTY Sec. 1090.110. GIFTS AND ENDOWMENTS Sec. 1090.111. CONSTRUCTION CONTRACTS Sec. 1090.112. OPERATING AND MANAGEMENT CONTRACTS Sec. 1090.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT Sec. 1090.114. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES Sec. 1090.115. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1090.116. AUTHORITY TO SUE AND BE SUED

[Sections 1090.117-1090.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1090.151. BUDGET Sec. 1090.152. NOTICE; HEARING; ADOPTION OF BUDGET Sec. 1090.153. AMENDMENTS TO BUDGET Sec. 1090.154. RESTRICTION ON EXPENDITURES Sec. 1090.155. FISCAL YEAR Sec. 1090.156. AUDIT Sec. 1090.157. INSPECTION OF AUDIT AND DISTRICT

RECORDS Sec. 1090.158. FINANCIAL REPORT Sec. 1090.159. DEPOSITORY Sec. 1090.160. SPENDING RESTRICTIONS Sec. 1090.161. AUTHORITY TO BORROW MONEY; SECURITY

[Sections 1090.162-1090.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1090.201. GENERAL OBLIGATION BONDS Sec. 1090.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1090.203. GENERAL OBLIGATION BOND ELECTION Sec. 1090.204. MATURITY OF GENERAL OBLIGATION BONDS Sec. 1090.205. EXECUTION OF GENERAL OBLIGATION BONDS Sec. 1090.206. REVENUE BONDS Sec. 1090.207. REFUNDING BONDS Sec. 1090.208. BONDS EXEMPT FROM TAXATION

[Sections 1090.209-1090.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1090.251. IMPOSITION OF AD VALOREM TAX Sec. 1090.252. TAX RATE Sec. 1090.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR Sec. 1090.254. ASSESSMENT AND COLLECTION BY DISTRICT

TAX ASSESSOR-COLLECTOR

[Sections 1090.255-1090.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION Sec. 1090.301. DISSOLUTION; ELECTION Sec. 1090.302. NOTICE OF ELECTION ON DISSOLUTION Sec. 1090.303. BALLOT Sec. 1090.304. ELECTION RESULTS Sec. 1090.305. TRANSFER OF ASSETS AND LIABILITIES

CHAPTER 1090. REFUGIO COUNTY

MEMORIAL HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1090.001. 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 Refugio County Memorial Hospital District. (New.)

Sec. 1090.002. AUTHORITY FOR OPERATION. The Refugio County Memorial Hospital District operates and is administered and financed in accordance with Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties provided by this chapter. (Acts 65th Leg., R.S., Ch. 6, Sec. 1 (part).)

Sec. 1090.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 65th Leg., R.S., Ch. 6, Sec. 22 (part).)

Sec. 1090.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Refugio County. (Acts 65th Leg., R.S., Ch. 6, Sec. 1 (part).)

Sec. 1090.005. 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 65th Leg., R.S., Ch. 6, Sec. 23 (part).)

Sec. 1090.006. 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 65th Leg., R.S., Ch. 6, Sec. 21 (part).)

Sec. 1090.007. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 65th Leg., R.S., Ch. 6, Sec. 21 (part).)

[Sections 1090.008-1090.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1090.051. BOARD ELECTION; TERM. (a) The board consists of seven directors elected from the district at large by place.

(b) Directors serve staggered two-year terms unless four-year terms are established under Section 285.081, Health and Safety Code. (Acts 65th Leg., R.S., Ch. 6, Sec. 4(c) (part).)

Sec. 1090.052. 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 Refugio County. (Acts 65th Leg., R.S., Ch. 6, Sec. 4(c) (part).)

Sec. 1090.053. QUALIFICATIONS FOR OFFICE. (a) A person may not be elected or appointed as a director unless the person is:

(1) a resident of the district;

(2) a qualified voter; and

(3) a freeholder.

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

(1) the district administrator; or

(2) a district employee. (Acts 65th Leg., R.S., Ch. 6, Sec. 4(d).)

Sec. 1090.054. BOARD VACANCY. If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term. (Acts 65th Leg., R.S., Ch. 6, Sec. 4(c) (part).)

Sec. 1090.055. OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

(c) The board shall fill a vacancy in a board office for the unexpired term. (Acts 65th Leg., R.S., Ch. 6, Sec. 4(e) (part).)

Sec. 1090.056. COMPENSATION; EXPENSES. A director or officer serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties. The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 65th Leg., R.S., Ch. 6, Sec. 4(e) (part).)

Sec. 1090.057. VOTING REQUIREMENT. A concurrence of four directors is sufficient in any matter relating to district business. (Acts 65th Leg., R.S., Ch. 6, Sec. 4(e) (part).)

Sec. 1090.058. INSURANCE FOR DIRECTORS AND OFFICERS. Directors and officers may be included in the same insurance plan provided to district employees. (Acts 65th Leg., R.S., Ch. 6, Sec. 4(e) (part).)

Sec. 1090.059. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The board shall appoint a qualified person as district administrator.

(b) The board may appoint an assistant administrator.

(c) The district administrator and any assistant administrator serve at the will of the board and are entitled to the compensation determined by the board.

(d) On assuming the duties of district administrator, the administrator shall execute a bond payable to the district in an amount set by the board of not less than $5,000 that:

(1) is conditioned on the administrator performing the administrator's duties; and

(2) contains other conditions the board may require. (Acts 65th Leg., R.S., Ch. 6, Sec. 5 (part).)

Sec. 1090.060. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to the limitations prescribed by the board, the district administrator shall:

(1) supervise the work and activities of the district; and

(2) direct the affairs of the district. (Acts 65th Leg., R.S., Ch. 6, Sec. 5 (part).)

Sec. 1090.061. APPOINTMENT AND RECRUITMENT OF STAFF AND EMPLOYEES. (a) The board may appoint to the medical staff any physicians the board considers necessary and may make temporary appointments as warranted.

(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.

(d) The board may spend district money to recruit to the hospital staff any physicians that are required to meet the medical needs of district residents. (Acts 65th Leg., R.S., Ch. 6, Secs. 5 (part), 11(b) (part), 17.)

Sec. 1090.062. HEALTH EDUCATION. The board may use district money to provide scholarships and student loans for the education of county residents in health care-related fields. (Acts 65th Leg., R.S., Ch. 6, Sec. 11(b) (part).)

Sec. 1090.063. RETIREMENT BENEFITS. The board may provide retirement benefits for district employees by:

(1) establishing or administering a retirement program; or

(2) participating in:

(A) the Texas County and District Retirement System; or

(B) another statewide retirement system in which the district is eligible to participate. (Acts 65th Leg., R.S., Ch. 6, Sec. 6.)

[Sections 1090.064-1090.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1090.101. DISTRICT RESPONSIBILITY. The district has full responsibility for operating all hospital facilities for providing medical and hospital care for the district's needy inhabitants. (Acts 65th Leg., R.S., Ch. 6, Sec. 20(a) (part).)

Sec. 1090.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. Refugio County or any municipality or nonprofit hospital in the district may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care. (Acts 65th Leg., R.S., Ch. 6, Sec. 20(a) (part).)

Sec. 1090.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the hospital system and the district's money and resources. (Acts 65th Leg., R.S., Ch. 6, Sec. 5 (part).)

Sec. 1090.104. HOSPITAL SYSTEM. (a) The district shall provide for the establishment and administration for hospital purposes of a hospital system by:

(1) purchasing, constructing, acquiring by gift or otherwise, repairing, or renovating buildings and equipment; and

(2) equipping the buildings.

(b) The hospital system may include:

(1) facilities for domiciliary care and treatment of the sick, injured, or geriatric;

(2) outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses;

(6) domiciliaries and training centers;

(7) blood banks;

(8) community mental health centers;

(9) research centers or laboratories; and

(10) any other facilities the board considers necessary for hospital care. (Acts 65th Leg., R.S., Ch. 6, Secs. 2 (part), 11(a) (part).)

Sec. 1090.105. RULES. The board may adopt rules governing the operation of the hospital, the hospital system, and the district's staff and employees. (Acts 65th Leg., R.S., Ch. 6, Sec. 5 (part).)

Sec. 1090.106. 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 65th Leg., R.S., Ch. 6, Sec. 11(b) (part).)

Sec. 1090.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system.

(b) The board may lease all or part of the district's buildings and other facilities on terms considered to be in the best interest of the district's inhabitants. The term of the lease may not exceed 25 years.

(c) The district may acquire equipment for use in the district's hospital system and mortgage or pledge the property as security for the payment of the purchase price. A contract entered into under this subsection must provide that the entire obligation be retired not later than the fifth anniversary of the date of the contract.

(d) The district may sell or otherwise dispose of any property, including equipment, on terms the board finds are in the best interest of the district's inhabitants. (Acts 65th Leg., R.S., Ch. 6, Secs. 11(a) (part), (b) (part).)

Sec. 1090.108. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property located in district territory if the interest is necessary or convenient for the district to exercise a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, except the district is not required to deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code.

(c) In a condemnation proceeding brought by the district, the district is not required to:

(1) pay in advance or provide a bond or other security for costs in the trial court;

(2) provide a bond for the issuance of a temporary restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on an appeal or petition for review. (Acts 65th Leg., R.S., Ch. 6, Sec. 15(a).)

Sec. 1090.109. COST OF RELOCATING OR ALTERING PROPERTY. In exercising the power of eminent domain, if the board requires relocating, raising, lowering, rerouting, changing the grade, or altering the construction of any railroad, electric transmission, telegraph or telephone line, conduit, pole, or facility, or pipeline, the board 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. 6, Sec. 15(b).)

Sec. 1090.110. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district. (Acts 65th Leg., R.S., Ch. 6, Sec. 19.)

Sec. 1090.111. CONSTRUCTION CONTRACTS. A construction contract that involves the expenditure of more than $10,000 may be made only after advertising in the manner provided by Chapter 252 and Subchapter C, Chapter 262, Local Government Code. (Acts 65th Leg., R.S., Ch. 6, Sec. 11(b) (part).)

Sec. 1090.112. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to a district facility. (Acts 65th Leg., R.S., Ch. 6, Sec. 11(a) (part).)

Sec. 1090.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT. (a) The board may contract with a county or municipality located outside the district's boundaries to reimburse the district for the care and treatment of a sick or injured person of that county or municipality.

(b) The board may contract with this state or a federal agency for reimbursement for the treatment of a sick or injured person. (Acts 65th Leg., R.S., Ch. 6, Sec. 5 (part).)

Sec. 1090.114. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR INVESTIGATORY OR OTHER SERVICES. The board may contract with a political subdivision or governmental agency for the district to provide investigatory or other services for the medical, hospital, or welfare needs of district inhabitants. (Acts 65th Leg., R.S., Ch. 6, Sec. 5 (part).)

Sec. 1090.115. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a patient who resides in the district is admitted to a district facility, the district administrator may have an inquiry made into the circumstances of:

(1) the patient; and

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

(b) If the district administrator determines that the patient or those relatives cannot pay all or part of the costs of the care and treatment in the hospital, the amount of the costs that cannot be paid becomes a charge against the district.

(c) If the district administrator determines that the patient or those relatives can pay for all or part of the costs of the patient's care and treatment, the patient or those relatives shall be ordered to pay the district a specified amount each week for the patient's care and support. The amount ordered must be proportionate to the person's financial ability.

(d) The district administrator may collect the amount from the patient's estate, or from any relative who is legally liable for the patient's support, in the manner provided by law for the collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt in the mind of the district administrator, the board shall hold a hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue any appropriate orders.

(f) A 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. 6, Sec. 18.)

Sec. 1090.116. AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued. (Acts 65th Leg., R.S., Ch. 6, Sec. 5 (part).)

[Sections 1090.117-1090.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1090.151. BUDGET. (a) The district administrator shall prepare an annual budget for approval by the board.

(b) The proposed budget must contain a complete financial statement of:

(1) the outstanding obligations of the district;

(2) the cash on hand in each district fund;

(3) the money received by the district from all sources during the previous year;

(4) the money available to the district from all sources during the ensuing year;

(5) the balances expected at the end of the year in which the budget is being prepared;

(6) the estimated revenue and balances available to cover the proposed budget; and

(7) the estimated tax rate required. (Acts 65th Leg., R.S., Ch. 6, Sec. 7 (part).)

Sec. 1090.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The board shall hold a public hearing on the proposed annual budget.

(b) Notice of the hearing must be published one time at least 10 days before the date of the hearing.

(c) Any district resident is entitled to be present and participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt a budget by acting on the budget proposed by the district administrator. The board may make any changes in the proposed budget that the board judges to be in the interests of the taxpayers and that the law warrants. (Acts 65th Leg., R.S., Ch. 6, Sec. 7 (part).)

Sec. 1090.153. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. (Acts 65th Leg., R.S., Ch. 6, Sec. 7 (part).)

Sec. 1090.154. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the budget or an amendment to the budget. (Acts 65th Leg., R.S., Ch. 6, Sec. 7 (part).)

Sec. 1090.155. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that revenue bonds of the district are outstanding; or

(2) more than once in a 24-month period. (Acts 65th Leg., R.S., Ch. 6, Sec. 7 (part).)

Sec. 1090.156. AUDIT. The board shall have an audit made of the district's financial condition. (Acts 65th Leg., R.S., Ch. 6, Sec. 7 (part).)

Sec. 1090.157. INSPECTION OF AUDIT AND DISTRICT RECORDS. The audit and other district records shall be open to inspection at the district's principal office. (Acts 65th Leg., R.S., Ch. 6, Sec. 7 (part).)

Sec. 1090.158. 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 65th Leg., R.S., Ch. 6, Sec. 7 (part).)

Sec. 1090.159. DEPOSITORY. (a) The board shall select one or more financial institutions to serve as a depository for district money.

(b) District money, other than money transmitted to a bank for payment of bonds or obligations issued by the district, shall be deposited as received with the depository bank and shall remain on deposit.

(c) This chapter, including Subsection (b), does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit.

(d) The district may not deposit money with a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation unless the bank first executes a bond or other security in an amount sufficient to secure from loss the district money that exceeds the amount secured by the Federal Deposit Insurance Corporation. (Acts 65th Leg., R.S., Ch. 6, Sec. 12.)

Sec. 1090.160. SPENDING RESTRICTIONS. Except as otherwise provided by Section 1090.107(c) and by Subchapter E, the district may not incur an obligation payable from district revenue other than the revenue on hand or to be on hand in the current and following district fiscal years. (Acts 65th Leg., R.S., Ch. 6, Sec. 11(b) (part).)

Sec. 1090.161. 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) the purposes for which the taxes were imposed or the bonds were authorized, if district taxes or bonds are pledged to pay the loan. (Acts 65th Leg., R.S., Ch. 6, Sec. 10A.)

[Sections 1090.162-1090.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1090.201. 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 65th Leg., R.S., Ch. 6, Sec. 8(a) (part).)

Sec. 1090.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1090.201, 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 65th Leg., R.S., Ch. 6, Sec. 8(a) (part).)

Sec. 1090.203. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters.

(b) The order calling the election shall provide for clerks as in county elections and must specify:

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding and alternate election judges for each polling place;

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

(5) the maximum maturity of the bonds.

(c) Notice of a bond election shall be given as provided by Section 1251.003, Government Code. (Acts 65th Leg., R.S., Ch. 6, Sec. 8(a) (part).)

Sec. 1090.204. MATURITY OF GENERAL OBLIGATION BONDS. District general obligation bonds must mature not later than 40 years after the date of issuance. (Acts 65th Leg., R.S., Ch. 6, Sec. 8(c) (part).)

Sec. 1090.205. EXECUTION OF GENERAL OBLIGATION BONDS. (a) The board president shall execute the general obligation bonds in the district's name.

(b) The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code. (Acts 65th Leg., R.S., Ch. 6, Sec. 8(c) (part).)

Sec. 1090.206. REVENUE BONDS. (a) The board may issue revenue bonds to:

(1) purchase, construct, acquire, repair, renovate, or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used for hospital purposes.

(b) The bonds must be payable from and secured by a pledge of all or part of the revenue derived from the operation of the district's hospitals.

(c) The bonds may be additionally secured by a mortgage or deed of trust lien on all or part of district property.

(d) The bonds must be issued in the manner and in accordance with the procedures and requirements prescribed by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 65th Leg., R.S., Ch. 6, Sec. 10 (part).)

Sec. 1090.207. REFUNDING BONDS. (a) The board may, without an election, issue refunding bonds to refund outstanding indebtedness issued by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bonds applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness. (Acts 65th Leg., R.S., Ch. 6, Secs. 8(a) (part), (b) (part), 10 (part).)

Sec. 1090.208. 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; or

(3) profits made in the sale of the bonds. (Acts 65th Leg., R.S., Ch. 6, Sec. 22 (part).)

[Sections 1090.209-1090.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1090.251. IMPOSITION OF AD VALOREM TAX. (a) The board shall impose a tax on all property in the district subject to district taxation.

(b) The board shall impose the tax to pay:

(1) indebtedness issued by the district; and

(2) the maintenance and operating expenses of the district.

(c) The board may not impose a tax to pay the principal of or interest on revenue bonds issued under this chapter. (Acts 65th Leg., R.S., Ch. 6, Secs. 13 (part), 16(a) (part).)

Sec. 1090.252. 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 65th Leg., R.S., Ch. 6, Secs. 3(b) (part), 13 (part).)

Sec. 1090.253. ASSESSMENT AND COLLECTION BY COUNTY TAX ASSESSOR-COLLECTOR. (a) This section applies unless the board elects to have taxes assessed and collected under Section 1090.254.

(b) The tax assessor-collector of Refugio County shall assess and collect taxes imposed by the district. (Acts 65th Leg., R.S., Ch. 6, Secs. 16(a) (part), (b) (part).)

Sec. 1090.254. ASSESSMENT AND COLLECTION BY DISTRICT TAX ASSESSOR-COLLECTOR. (a) The board may elect to have district taxes assessed and collected by a tax assessor-collector appointed by the board. An election under this subsection must be made by December 1 and governs the manner in which taxes are assessed and collected, until changed by a similar resolution.

(b) The district tax assessor-collector must:

(1) reside in the district; and

(2) own real property subject to district taxation.

(c) The board shall set for the district tax assessor-collector:

(1) the term of employment; and

(2) compensation. (Acts 65th Leg., R.S., Ch. 6, Secs. 16(a) (part), (c) (part).)

[Sections 1090.255-1090.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1090.301. DISSOLUTION; ELECTION. (a) The district may be dissolved as provided by this subchapter.

(b) The district may be dissolved and the district's assets or facilities may be acquired by Refugio County only on approval of a majority of district voters who vote on the question of the district's dissolution and transfer of assets and facilities at an election.

(c) The board shall order the election if the board receives a petition calling for submission of the question that is signed by at least 15 percent of the district's registered voters. Each voter signing the petition must write next to the voter's name the date of the voter's signature.

(d) The petition must be filed within 45 days of the earliest date on which a voter signed the petition.

(e) The board shall order the question of the district's dissolution submitted at the first directors' election held after the date the board receives a petition under Subsection (d) that occurs after the time required by Section 3.005, Election Code. (Acts 65th Leg., R.S., Ch. 6, Secs. 26(a), (c) (part).)

Sec. 1090.302. NOTICE OF ELECTION ON DISSOLUTION. Notice of a directors' election at which the question of the district's dissolution will be submitted to the voters must include notice that the question of dissolution and the transfer of hospital facilities to and the assumption of debts and bond obligations by Refugio County will be submitted at the election. (Acts 65th Leg., R.S., Ch. 6, Sec. 26(c) (part).)

Sec. 1090.303. BALLOT. Beneath the names of the candidates for director of the district, the ballot for an election under this subchapter must provide for voting for or against the following proposition: "The dissolution of the Refugio County Memorial Hospital District and the transfer of the existing hospital facilities to and the assumption of the debts and bond obligations by Refugio County." (Acts 65th Leg., R.S., Ch. 6, Sec. 26(d).)

Sec. 1090.304. ELECTION RESULTS. (a) If a majority of the votes in an election under this subchapter favor dissolution, the board shall find that the proposition was approved and shall declare the district dissolved.

(b) If a majority of the votes in the election do not favor dissolution, the board shall find that the proposition was not approved and shall declare that the district will continue to operate. Another election on the question of dissolution may not be held within 48 months after the anniversary of the date of any preceding election held for the same purpose. (Acts 65th Leg., R.S., Ch. 6, Secs. 26(e) (part), (f).)

Sec. 1090.305. TRANSFER OF ASSETS AND LIABILITIES. If the proposition for the dissolution of the district and the transfer of the existing hospital facilities to and the assumption of the debts and bond obligations by Refugio County is approved as provided by this subchapter:

(1) the land, buildings, improvements, and equipment that are part of the hospital or hospital system owned by the district shall be transferred to Refugio County;

(2) any debts and bond obligations of the district shall be assumed by Refugio County; and

(3) the Refugio County Commissioners Court shall provide for:

(A) establishing and administering a hospital system by purchasing, constructing, acquiring by gift or otherwise, repairing, or renovating buildings and equipment; and

(B) equipping the hospital system. (Acts 65th Leg., R.S., Ch. 6, Sec. 26(b).) CHAPTER 1091. RICE HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1091.001. DEFINITIONS Sec. 1091.002. AUTHORITY FOR OPERATION Sec. 1091.003. ESSENTIAL PUBLIC FUNCTION Sec. 1091.004. DISTRICT TERRITORY Sec. 1091.005. DISTRICT SUPPORT OR MAINTENANCE NOT

STATE OBLIGATION Sec. 1091.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1091.007-1091.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1091.051. BOARD ELECTION; TERM Sec. 1091.052. NOTICE OF ELECTION Sec. 1091.053. BALLOT PETITION Sec. 1091.054. QUALIFICATIONS FOR OFFICE Sec. 1091.055. BOND; RECORD OF BOND Sec. 1091.056. BOARD VACANCY Sec. 1091.057. OFFICERS Sec. 1091.058. COMPENSATION; EXPENSES Sec. 1091.059. VOTING REQUIREMENT Sec. 1091.060. DISTRICT ADMINISTRATOR Sec. 1091.061. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1091.062. ASSISTANT DISTRICT ADMINISTRATOR;

ATTORNEY Sec. 1091.063. APPOINTMENT AND RECRUITMENT OF STAFF

AND EMPLOYEES Sec. 1091.064. RETIREMENT BENEFITS

[Sections 1091.065-1091.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1091.101. DISTRICT RESPONSIBILITY Sec. 1091.102. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1091.103. RULES Sec. 1091.104. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1091.105. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1091.106. EMINENT DOMAIN Sec. 1091.107. COST OF RELOCATING OR ALTERING PROPERTY Sec. 1091.108. GIFTS AND ENDOWMENTS Sec. 1091.109. CONSTRUCTION CONTRACTS Sec. 1091.110. OPERATING AND MANAGEMENT CONTRACTS Sec. 1091.111. CONTRACTS FOR SERVICES Sec. 1091.112. PROVISION OF CERTAIN HEALTH SERVICES Sec. 1091.113. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1091.114. REIMBURSEMENT FOR SERVICES Sec. 1091.115. AUTHORITY TO SUE AND BE SUED

[Sections 1091.116-1091.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1091.151. BUDGET Sec. 1091.152. NOTICE; HEARING; ADOPTION OF BUDGET Sec. 1091.153. AMENDMENTS TO BUDGET Sec. 1091.154. FISCAL YEAR Sec. 1091.155. ANNUAL AUDIT Sec. 1091.156. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS Sec. 1091.157. FINANCIAL REPORT Sec. 1091.158. SHORT-TERM FINANCING Sec. 1091.159. DEPOSITORY Sec. 1091.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1091.161-1091.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1091.201. GENERAL OBLIGATION BONDS Sec. 1091.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1091.203. GENERAL OBLIGATION BOND ELECTION Sec. 1091.204. REVENUE BONDS Sec. 1091.205. REFUNDING BONDS Sec. 1091.206. MATURITY OF BONDS Sec. 1091.207. EXECUTION OF BONDS Sec. 1091.208. BONDS EXEMPT FROM TAXATION

[Sections 1091.209-1091.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1091.251. IMPOSITION OF AD VALOREM TAX Sec. 1091.252. TAX RATE Sec. 1091.253. TAX ASSESSOR-COLLECTOR

[Sections 1091.254-1091.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION Sec. 1091.301. DISSOLUTION; ELECTION Sec. 1091.302. NOTICE OF ELECTION Sec. 1091.303. BALLOT Sec. 1091.304. ELECTION RESULTS Sec. 1091.305. SALE OR TRANSFER OF ASSETS AND

LIABILITIES

CHAPTER 1091. RICE HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1091.001. 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 Rice Hospital District. (Acts 71st Leg., R.S., Ch. 199, Sec. 1.01.)

Sec. 1091.002. AUTHORITY FOR OPERATION. The Rice Hospital District operates and is financed as provided by Section 9, Article IX, Texas Constitution, and by this chapter. (Acts 71st Leg., R.S., Ch. 199, Sec. 1.02.)

Sec. 1091.003. ESSENTIAL PUBLIC FUNCTION. The district is a public entity performing an essential public function. (Acts 71st Leg., R.S., Ch. 199, Sec. 7.11 (part).)

Sec. 1091.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Rice Consolidated Independent School District of Colorado County, Texas, as those boundaries existed on May 26, 1989. (Acts 71st Leg., R.S., Ch. 199, Sec. 1.03.)

Sec. 1091.005. DISTRICT SUPPORT OR MAINTENANCE NOT STATE OBLIGATION. The state may not become obligated for the support or maintenance of the district. (Acts 71st Leg., R.S., Ch. 199, Sec. 10.01 (part).)

Sec. 1091.006. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 71st Leg., R.S., Ch. 199, Sec. 10.01 (part).)

[Sections 1091.007-1091.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1091.051. BOARD ELECTION; TERM. (a) The district is governed by a board of nine directors elected from the district at large.

(b) Unless four-year terms are established under Section 285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) an election shall be held on the uniform election date in May of each year to elect the appropriate number of directors. (Acts 71st Leg., R.S., Ch. 199, Secs. 4.01(a), 4.03(a), (c) (part).)

Sec. 1091.052. NOTICE OF ELECTION. At least 35 days before the date of an election of directors, notice of the election shall be published one time in a newspaper with general circulation in the district. (Acts 71st Leg., R.S., Ch. 199, Sec. 4.04.)

Sec. 1091.053. BALLOT PETITION. A person seeking 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 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 71st Leg., R.S., Ch. 199, Sec. 4.05.)

Sec. 1091.054. QUALIFICATIONS FOR OFFICE. (a) To be eligible to be a candidate for or to serve as a director, a person must be:

(1) a resident of the district; and

(2) a qualified voter.

(b) A district employee may not serve as a director. (Acts 71st Leg., R.S., Ch. 199, Sec. 4.06.)

Sec. 1091.055. 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 directors' bonds with district money.

(c) Each director's bond shall be kept in the district's permanent records. (Acts 71st Leg., R.S., Ch. 199, Sec. 4.07.)

Sec. 1091.056. BOARD VACANCY. If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term. (Acts 71st Leg., R.S., Ch. 199, Sec. 4.08.)

Sec. 1091.057. OFFICERS. (a) The board shall elect a president and a vice president from among its members.

(b) The board shall appoint a secretary, who need not be a director.

(c) Each officer of the board serves for a term of one year.

(d) The board shall fill a vacancy in a board office for the unexpired term. (Acts 71st Leg., R.S., Ch. 199, Secs. 4.09, 4.10.)

Sec. 1091.058. COMPENSATION; EXPENSES. A director or officer serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties. The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 71st Leg., R.S., Ch. 199, Sec. 4.11.)

Sec. 1091.059. VOTING REQUIREMENT. A concurrence of a majority of the directors voting is necessary in any matter relating to district business. (Acts 71st Leg., R.S., Ch. 199, Sec. 4.12.)

Sec. 1091.060. 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 compensation as determined by the board.

(c) Before assuming the duties of district administrator, the administrator must execute a bond in an amount determined by the board of not less than $5,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the administrator's duties under this chapter.

(d) The board may pay for the bond with district money. (Acts 71st Leg., R.S., Ch. 199, Secs. 4.13(a) (part), (b) (part), (c) (part), (d).)

Sec. 1091.061. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to the limitations prescribed by the board, the district administrator shall:

(1) supervise the work and activities of the district; and

(2) direct the general affairs of the district. (Acts 71st Leg., R.S., Ch. 199, Sec. 4.16.)

Sec. 1091.062. 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 compensation as determined by the board. (Acts 71st Leg., R.S., Ch. 199, Secs. 4.13(a) (part), (b) (part), (c) (part).)

Sec. 1091.063. APPOINTMENT AND RECRUITMENT OF STAFF AND EMPLOYEES. (a) The board may:

(1) appoint to the staff any doctors whose appointment the board considers necessary for the efficient operation of the district;

(2) make temporary appointments as the board considers necessary; and

(3) after due process remove from the medical staff any doctor whose removal the board considers necessary for the efficient operation of the district.

(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) Except as prohibited by applicable law, the board may spend money to recruit physicians, nurses, and other personnel. (Acts 71st Leg., R.S., Ch. 199, Secs. 4.14, 4.15, 5.04(c).)

Sec. 1091.064. 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 71st Leg., R.S., Ch. 199, Sec. 4.17.)

[Sections 1091.065-1091.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1091.101. DISTRICT RESPONSIBILITY. The district has full responsibility for:

(1) operating hospital facilities; and

(2) providing medical and hospital care for the district's needy inhabitants. (Acts 71st Leg., R.S., Ch. 199, Sec. 5.01 (part).)

Sec. 1091.102. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the hospital system and the money and resources of the district. (Acts 71st Leg., R.S., Ch. 199, Sec. 5.02.)

Sec. 1091.103. RULES. The board may adopt rules governing:

(1) the operation of the hospital and hospital system; and

(2) the duties, functions, and responsibilities of district staff and employees. (Acts 71st Leg., R.S., Ch. 199, Sec. 5.03.)

Sec. 1091.104. PURCHASING AND ACCOUNTING PROCEDURES. The board may prescribe:

(1) the method of making purchases and expenditures by and for the district; and

(2) accounting and control procedures for the district. (Acts 71st Leg., R.S., Ch. 199, Secs. 5.04(a), (b).)

Sec. 1091.105. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine:

(1) the type, number, and location of buildings required to maintain an adequate hospital system; and

(2) the type of equipment necessary for hospital care.

(b) The board may:

(1) acquire property, including facilities and equipment, for the district for use in the hospital system; and

(2) mortgage or pledge the property as security for payment of the purchase price.

(c) The board may lease hospital facilities for the district.

(d) The board may sell or otherwise dispose of property, including facilities or equipment, for the district. (Acts 71st Leg., R.S., Ch. 199, Sec. 5.05.)

Sec. 1091.106. 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 petition for review. (Acts 71st Leg., R.S., Ch. 199, Sec. 5.08.)

Sec. 1091.107. COST OF RELOCATING OR ALTERING PROPERTY. In exercising the power of eminent domain, if the board requires relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of any railroad, highway, pipeline, or electric transmission and electric distribution, telegraph, or telephone line, conduit, pole, or facility, the district must bear the actual cost of relocating, raising, lowering, rerouting, changing the grade, or altering the construction to provide comparable replacement, without enhancement of facilities, after deducting the net salvage value derived from the old facility. (Acts 71st Leg., R.S., Ch. 199, Sec. 5.09.)

Sec. 1091.108. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust for any purpose and under any direction, limitation, or other provision prescribed in writing by the donor that is consistent with the proper management of the district. (Acts 71st Leg., R.S., Ch. 199, Sec. 5.13.)

Sec. 1091.109. CONSTRUCTION CONTRACTS. (a) The board may enter into construction contracts for the district.

(b) The board may enter into a construction contract that involves the expenditure of more than the amount provided by Section 271.024, Local Government Code, only after competitive bidding as provided by Subchapter B, Chapter 271, Local Government Code. (Acts 71st Leg., R.S., Ch. 199, Sec. 5.06(a).)

Sec. 1091.110. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract for the district relating to a hospital facility. (Acts 71st Leg., R.S., Ch. 199, Sec. 5.07.)

Sec. 1091.111. CONTRACTS FOR SERVICES. (a) The board may contract with a public or private hospital, a political subdivision of this state, or a state or federal agency for the district to provide a mobile emergency medical service or other health care services needed to provide for the investigatory or welfare needs of district inhabitants.

(b) The board may contract with any person to receive or supply the services the board considers necessary for the effective operation of the district. (Acts 71st Leg., R.S., Ch. 199, Sec. 5.12.)

Sec. 1091.112. PROVISION OF CERTAIN HEALTH SERVICES. The district may:

(1) operate or provide for the operation of a mobile emergency medical service; and

(2) operate or provide for home health services, long-term care, skilled nursing care, intermediate nursing care, hospice care, or any other reasonable or appropriate medical care or medical services. (Acts 71st Leg., R.S., Ch. 199, Sec. 5.01 (part).)

Sec. 1091.113. PAYMENT FOR TREATMENT; PROCEDURES. (a) If an individual who resides in the district is admitted as a patient to a district facility, the district administrator may have an inquiry made into the financial circumstances of:

(1) the patient; and

(2) a relative of the patient who is legally responsible for the patient's support.

(b) To the extent that the patient or a relative of the patient who is legally responsible for the patient's support cannot pay for care and treatment provided by the district, the district shall supply the care and treatment without charging the patient or the patient's relative.

(c) On determining that the patient or a relative legally responsible for the patient's support can pay for all or part of the care and treatment provided by the district, the district administrator shall report that determination to the board, and the board shall issue an order directing the patient or the relative to pay the district a specified amount each week. The amount must be based on the individual's ability to pay.

(d) The district administrator may collect money owed to the district from the patient's estate or from that of a relative legally responsible for the patient's support in the manner provided by law for the collection of expenses in the last illness of a deceased person.

(e) If there is a dispute relating to an individual's ability to pay or if the district administrator has any doubt concerning an individual's ability to pay, the board shall:

(1) call witnesses;

(2) hear and resolve the question; and

(3) issue a final order.

(f) A final order of the board may be appealed only to a district court in Colorado County. The substantial evidence rule applies to the appeal. (Acts 71st Leg., R.S., Ch. 199, Secs. 5.10(b), (c), (d), (e), (f).)

Sec. 1091.114. 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 Colorado County or the police chief of the City of Eagle Lake, as applicable, to reimburse the district for the district's care and treatment of a person who is confined in a jail facility of Colorado County or the City of Eagle Lake and is not a district resident.

(c) The board may contract with the state or federal government for that government to reimburse the district for treatment of a sick or injured person. (Acts 71st Leg., R.S., Ch. 199, Sec. 5.11.)

Sec. 1091.115. AUTHORITY TO SUE AND BE SUED. The board may sue and be sued on behalf of the district. (Acts 71st Leg., R.S., Ch. 199, Sec. 5.14.)

[Sections 1091.116-1091.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1091.151. 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 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 to be required. (Acts 71st Leg., R.S., Ch. 199, Sec. 6.04.)

Sec. 1091.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The board shall hold a public hearing on the proposed annual budget.

(b) Not later than the 10th day before the date of the hearing the board shall publish notice of the hearing in a newspaper of general circulation in the district.

(c) Any district resident is entitled to be present and participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt a budget by acting on the budget proposed by the district administrator. The board may make any changes in the proposed budget that the board judges to be in the interests of the taxpayers.

(e) The budget is effective only after adoption by the board. (Acts 71st Leg., R.S., Ch. 199, Sec. 6.05.)

Sec. 1091.153. AMENDMENTS TO BUDGET. After the annual budget is adopted, the budget may be amended on the board's approval. (Acts 71st Leg., R.S., Ch. 199, Sec. 6.06.)

Sec. 1091.154. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that revenue bonds of the district are outstanding; or

(2) more than once in a 24-month period. (Acts 71st Leg., R.S., Ch. 199, Sec. 6.01.)

Sec. 1091.155. ANNUAL AUDIT. The board annually shall have an audit made of the district's financial condition. (Acts 71st Leg., R.S., Ch. 199, Sec. 6.02.)

Sec. 1091.156. INSPECTION OF ANNUAL AUDIT AND DISTRICT RECORDS. The annual audit and other district records are open to inspection during regular business hours at the district's principal office. (Acts 71st Leg., R.S., Ch. 199, Sec. 6.03.)

Sec. 1091.157. FINANCIAL REPORT. As soon as practicable after the close of the fiscal year, the district administrator shall prepare for the board:

(1) a sworn statement of the amount of district money; and

(2) an account of the disbursements of that money. (Acts 71st Leg., R.S., Ch. 199, Sec. 6.08.)

Sec. 1091.158. SHORT-TERM FINANCING. The district may borrow money through short-term financing. (Acts 71st Leg., R.S., Ch. 199, Sec. 6.07.)

Sec. 1091.159. 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 1091.160(b) and money transmitted to a bank for payment of bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and must remain on deposit. This subsection does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit.

(c) The district may not deposit money with a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation unless the bank first executes a bond or other security in an amount sufficient to secure from loss the district money that exceeds the amount secured by the Federal Deposit Insurance Corporation. (Acts 71st Leg., R.S., Ch. 199, Sec. 6.10.)

Sec. 1091.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as provided by Sections 1091.109, 1091.201, 1091.204, and 1091.205, 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 fiscal year and the immediately following fiscal year of the district.

(b) The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code. (Acts 71st Leg., R.S., Ch. 199, Sec. 6.09.)

[Sections 1091.161-1091.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1091.201. GENERAL OBLIGATION BONDS. If authorized by an election, the board may issue and sell general obligation bonds in the name and on the faith and credit of the district to:

(1) purchase, construct, acquire, repair, or renovate buildings or improvements;

(2) equip buildings or improvements for hospital purposes; or

(3) acquire and operate a mobile emergency medical service. (Acts 71st Leg., R.S., Ch. 199, Sec. 7.01.)

Sec. 1091.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1091.201, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature.

(b) The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed the limit approved by the voters at the election authorizing the imposition of the tax. (Acts 71st Leg., R.S., Ch. 199, Sec. 7.02.)

Sec. 1091.203. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

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

(c) Notice of a bond election shall be given as provided by Section 1251.003, Government Code.

(d) The board shall declare the results of the election. (Acts 71st Leg., R.S., Ch. 199, Sec. 7.03.)

Sec. 1091.204. REVENUE BONDS. (a) The board may issue revenue bonds to:

(1) purchase, construct, acquire, repair, equip, or renovate buildings or improvements for hospital purposes;

(2) acquire sites to be used for hospital purposes; or

(3) acquire and operate a mobile emergency medical service to assist the district in carrying out its hospital purposes.

(b) The bonds must be payable from and secured by a pledge of all or part of the revenue derived from the operation of the district's hospital system.

(c) The bonds may be additionally secured by a mortgage or deed of trust lien on all or part of district property.

(d) The bonds must be issued in the manner provided by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 71st Leg., R.S., Ch. 199, Sec. 7.04.)

Sec. 1091.205. REFUNDING BONDS. (a) The board may issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.

(b) Refunding bonds may be:

(1) sold, with the proceeds of the refunding bonds applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness. (Acts 71st Leg., R.S., Ch. 199, Secs. 7.05(a), (c) (part).)

Sec. 1091.206. MATURITY OF BONDS. District bonds must mature not later than 50 years after the date of issuance. (Acts 71st Leg., R.S., Ch. 199, Sec. 7.06 (part).)

Sec. 1091.207. EXECUTION OF BONDS. (a) The board president shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code. (Acts 71st Leg., R.S., Ch. 199, Sec. 7.07.)

Sec. 1091.208. BONDS EXEMPT FROM TAXATION. The following are exempt from taxation by this state or a political subdivision of this state:

(1) bonds issued by the district;

(2) any transaction relating to the bonds; and

(3) profits made in the sale of the bonds. (Acts 71st Leg., R.S., Ch. 199, Sec. 7.11 (part).)

[Sections 1091.209-1091.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1091.251. IMPOSITION OF AD VALOREM TAX. (a) The board may impose a tax on all property in the district subject to district taxation.

(b) The tax may be used to pay:

(1) indebtedness issued or assumed by the district; and

(2) the maintenance and operating expenses of the district. (Acts 71st Leg., R.S., Ch. 199, Secs. 8.01(a) (part), (c), 8.02(b).)

Sec. 1091.252. TAX RATE. (a) The board may impose the tax at a rate not to exceed the limit approved by the voters at the election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on each $100 valuation of all taxable property in the district.

(c) In setting the tax rate, the board shall consider the income of the district from sources other than taxation. (Acts 71st Leg., R.S., Ch. 199, Secs. 8.01(a) (part), (b), 8.03 (part).)

Sec. 1091.253. TAX ASSESSOR-COLLECTOR. The board may provide for the appointment of a tax assessor-collector for the district or may contract for the assessment and collection of taxes as provided by the Tax Code. (Acts 71st Leg., R.S., Ch. 199, Sec. 8.04(b).)

[Sections 1091.254-1091.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1091.301. DISSOLUTION; ELECTION. (a) The district may be dissolved and the district's assets and liabilities sold or transferred to another person only on approval of a majority of the district voters voting in an election held for that purpose.

(b) A majority of the directors of the district may order an election on the question of dissolution of the district and the transfer of the district's assets and liabilities.

(c) The board shall order an election under this section if the board receives a petition requesting an election that is signed by at least 300 registered district voters according to the most recent official list of registered voters. The board shall call the election not later than the 60th day after the date the petition is presented to the district.

(d) An order calling an election under this section must state:

(1) the nature of the election, including the proposition to appear on the ballot;

(2) the date of the election;

(3) the hours during which the polls will be open; and

(4) the location of the polling places.

(e) Section 41.001(a), Election Code, does not apply to an election ordered under this section. (Acts 71st Leg., R.S., Ch. 199, Secs. 9.01, 9.02, 9.03, 9.05(b).)

Sec. 1091.302. NOTICE OF ELECTION. (a) The board shall give notice of an election under this subchapter by publishing once a week for two consecutive weeks a substantial copy of the election order in a newspaper with general circulation in the district.

(b) The first publication of the notice must appear at least 35 days before the date set for the election. (Acts 71st Leg., R.S., Ch. 199, Sec. 9.04.)

Sec. 1091.303. BALLOT. The ballot for an election under this subchapter must be printed to permit voting for or against the proposition: "The dissolution of the Rice Hospital District and the sale or transfer of its assets and liabilities in the following manner: ____________ (insert provisions for transfer)." (Acts 71st Leg., R.S., Ch. 199, Sec. 9.06.)

Sec. 1091.304. 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 dissolved; and

(2) proceed with the sale or transfer of the district's assets and liabilities according to the plan proposed on the ballot.

(b) If the board finds 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 in which the voters disapproved the proposition. (Acts 71st Leg., R.S., Ch. 199, Secs. 9.07(b), (c).)

Sec. 1091.305. SALE OR TRANSFER OF ASSETS AND LIABILITIES. (a) Notwithstanding any other provision of this subchapter, the district may not be dissolved unless the board provides for the sale or transfer of the district's assets and liabilities to another person.

(b) The dissolution of the district and the sale or transfer of the district's assets or liabilities may not:

(1) contravene a trust indenture or bond resolution relating to the district's outstanding bonds; or

(2) diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district.

(c) The sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of district citizens, including the citizens' collective property rights in the district's assets.

(d) The district may transfer or sell the district's assets only for due compensation, unless the transfer is made to another governmental agency embracing the district and using the transferred assets for the benefit of the citizens formerly in the district.

(e) A grant from federal funds is an obligation to be repaid in satisfaction. (Acts 71st Leg., R.S., Ch. 199, Sec. 9.08.) CHAPTER 1092. SABINE COUNTY HOSPITAL DISTRICT OF SABINE COUNTY, TEXAS TEXAS SUBCHAPTER A. GENERAL PROVISIONS Sec. 1092.001. DEFINITIONS Sec. 1092.002. AUTHORITY FOR CREATION Sec. 1092.003. DISTRICT TERRITORY Sec. 1092.004. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1092.005. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1092.006-1092.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1092.051. BOARD ELECTION; TERM Sec. 1092.052. QUALIFICATIONS FOR OFFICE Sec. 1092.053. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE Sec. 1092.054. BOARD VACANCY Sec. 1092.055. OFFICERS Sec. 1092.056. COMPENSATION; EXPENSES Sec. 1092.057. DISTRICT ADMINISTRATOR Sec. 1092.058. EMPLOYEES Sec. 1092.059. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION

[Sections 1092.060-1092.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1092.101. DISTRICT RESPONSIBILITY Sec. 1092.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1092.103. MANAGEMENT AND CONTROL OF DISTRICT Sec. 1092.104. HOSPITAL SYSTEM Sec. 1092.105. RULES Sec. 1092.106. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1092.107. EMINENT DOMAIN Sec. 1092.108. GIFTS AND ENDOWMENTS Sec. 1092.109. CONTRACTS FOR HOSPITAL AND MEDICAL CARE Sec. 1092.110. PAYMENT FOR TREATMENT; PROCEDURES

[Sections 1092.111-1092.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1092.151. BUDGET Sec. 1092.152. PROPOSED BUDGET: NOTICE AND HEARING Sec. 1092.153. FISCAL YEAR Sec. 1092.154. ANNUAL AUDIT Sec. 1092.155. DEPOSITORY

[Sections 1092.156-1092.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1092.201. BONDS Sec. 1092.202. TAX TO PAY BONDS Sec. 1092.203. BOND ELECTION Sec. 1092.204. MATURITY OF BONDS Sec. 1092.205. EXECUTION OF BONDS

[Sections 1092.206-1092.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1092.251. IMPOSITION OF AD VALOREM TAX Sec. 1092.252. TAX RATE Sec. 1092.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1092. SABINE COUNTY HOSPITAL DISTRICT OF SABINE COUNTY,

TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1092.001. 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 Sabine County Hospital District of Sabine County, Texas. (New.)

Sec. 1092.002. AUTHORITY FOR CREATION. The Sabine County Hospital District of Sabine County, Texas, is created under the authority of Section 9, Article IX, Texas Constitution. (Acts 64th Leg., R.S., Ch. 565, Sec. 1.)

Sec. 1092.003. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Sabine County, Texas. (Acts 64th Leg., R.S., Ch. 565, Sec. 2.)

Sec. 1092.004. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. The support and maintenance of the district's hospital system and any indebtedness incurred by the district under this chapter may not become a charge against or obligation of this state. (Acts 64th Leg., R.S., Ch. 565, Sec. 18 (part).)

Sec. 1092.005. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 64th Leg., R.S., Ch. 565, Sec. 18 (part).)

[Sections 1092.006-1092.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1092.051. BOARD ELECTION; TERM. (a) The board consists of five directors.

(b) One director is elected from each county commissioners precinct and one director is elected from the district at large.

(c) Unless four-year terms are established under Section 285.081, Health and Safety Code:

(1) directors serve staggered two-year terms;

(2) a directors' election shall be held each year to elect the appropriate number of directors; and

(3) the terms of directors elected from county commissioners precincts one and three expire in even-numbered years and the terms of directors elected from county commissioners precincts two and four and from the district at large expire in odd-numbered years. (Acts 64th Leg., R.S., Ch. 565, Secs. 5(a), (e), (f) (part), (g).)

Sec. 1092.052. QUALIFICATIONS FOR OFFICE. To qualify for election to the board, a person must:

(1) be at least 21 years of age;

(2) have been a resident of the district for at least two years;

(3) have been a resident of the county commissioners precinct for at least six months if the person seeks to represent a county commissioners precinct position; and

(4) be a qualified voter of the district. (Acts 64th Leg., R.S., Ch. 565, Sec. 5(b).)

Sec. 1092.053. 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 a director's bond.

(c) Each director's bond and constitutional oath or affirmation of office shall be deposited with the district's depository for safekeeping. (Acts 64th Leg., R.S., Ch. 565, Sec. 6(a).)

Sec. 1092.054. BOARD VACANCY. If a vacancy occurs in the office of director, a majority of the directors shall appoint a director for the unexpired term. (Acts 64th Leg., R.S., Ch. 565, Sec. 5(h).)

Sec. 1092.055. OFFICERS. The board shall elect from among its members a president, a secretary, and a treasurer at the first board meeting held after a directors' election. (Acts 64th Leg., R.S., Ch. 565, Sec. 6(b).)

Sec. 1092.056. COMPENSATION; EXPENSES. A director serves without compensation but is entitled to reimbursement for necessary expenses incurred in the performance of official duties. (Acts 64th Leg., R.S., Ch. 565, Sec. 6(c).)

Sec. 1092.057. DISTRICT ADMINISTRATOR. (a) The board may employ a district administrator to manage the operations of the hospital system.

(b) The district administrator may employ necessary personnel to perform the services provided by the hospital system. (Acts 64th Leg., R.S., Ch. 565, Sec. 12(e) (part).)

Sec. 1092.058. EMPLOYEES. The board may employ an attorney, a general manager, a bookkeeper, an architect, and other employees necessary for the efficient operation of the district. (Acts 64th Leg., R.S., Ch. 565, Sec. 12(e) (part).)

Sec. 1092.059. MAINTENANCE OF RECORDS; PUBLIC INSPECTION. The board shall:

(1) maintain all district records, including books, accounts, notices, minutes, and other matters of the district and its operations, at the district office; and

(2) make those records available for public inspection at reasonable times. (Acts 64th Leg., R.S., Ch. 565, Sec. 12(b).)

[Sections 1092.060-1092.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1092.101. DISTRICT RESPONSIBILITY. The district shall provide all necessary hospital and medical care for the district's needy inhabitants. (Acts 64th Leg., R.S., Ch. 565, Sec. 3 (part).)

Sec. 1092.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision of this state, other than the district, may not impose a tax or issue bonds or other obligations to provide hospital service or medical care in the district. (Acts 64th Leg., R.S., Ch. 565, Sec. 3 (part).)

Sec. 1092.103. MANAGEMENT AND CONTROL OF DISTRICT. The board has full power to manage and control the district. (Acts 64th Leg., R.S., Ch. 565, Sec. 12(a) (part).)

Sec. 1092.104. HOSPITAL SYSTEM. The district has the responsibility to establish a hospital or hospital system within its boundaries to provide hospital and medical care to the district's residents. (Acts 64th Leg., R.S., Ch. 565, Sec. 3 (part).)

Sec. 1092.105. RULES. (a) The board shall adopt rules for the efficient operation of the district, including district facilities.

(b) The board shall:

(1) publish the rules in book form; and

(2) provide copies to interested persons on request at district expense. (Acts 64th Leg., R.S., Ch. 565, Sec. 12(c).)

Sec. 1092.106. PURCHASING AND ACCOUNTING PROCEDURES. The board may prescribe the method of making purchases and expenditures and the manner of accounting and control used by the district. (Acts 64th Leg., R.S., Ch. 565, Sec. 12(e) (part).)

Sec. 1092.107. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in real, personal, or mixed property located in district territory if the interest is necessary or convenient for the district to exercise a power or duty conferred on the district by this chapter.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, except the district is not required to deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code.

(c) In a condemnation proceeding, the district is not required to:

(1) pay in advance or provide a bond or other security for costs in the trial court; or

(2) provide a bond for costs or a supersedeas bond on an appeal or petition for review. (Acts 64th Leg., R.S., Ch. 565, Sec. 15.)

Sec. 1092.108. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management of the district. (Acts 64th Leg., R.S., Ch. 565, Sec. 12(f).)

Sec. 1092.109. CONTRACTS FOR HOSPITAL AND MEDICAL CARE. The board may contract with another political subdivision to provide hospital and medical care for needy persons who reside outside the district. (Acts 64th Leg., R.S., Ch. 565, Sec. 12(g).)

Sec. 1092.110. PAYMENT FOR TREATMENT; PROCEDURES. (a) A person who resides in the district is entitled to receive necessary medical and hospital care regardless of whether the person has the ability to pay for the care and may apply to receive this care without cost.

(b) The board or the district administrator shall employ a person to investigate the ability of the patient and any relative who is liable for the patient's support to pay for the medical and hospital care received by the patient.

(c) If the investigator determines that the patient or relative legally liable for the patient's support cannot pay all or part of the costs of the patient's care, the expense of the care becomes a charge against the district.

(d) If the patient or a relative legally liable for the patient's support can pay for all or part of the costs of the patient's care, the board shall order the patient or relative to pay the treasurer each week an amount specified in the order, which must be proportionate to the person's ability to pay.

(e) The district may collect the amount from the patient's estate, or from any relative who is liable for the patient's support, in the manner provided by law for the collection of expenses of the last illness of a deceased person.

(f) If there is a dispute as to the ability to pay, or doubt in the mind of the investigator, the board shall hold a hearing and, after calling witnesses, shall:

(1) determine the question; and

(2) make the proper order based on the board's findings.

(g) A party to the hearing who is not satisfied with the result of the order may appeal to the district court. The appeal is de novo. (Acts 64th Leg., R.S., Ch. 565, Sec. 14.)

[Sections 1092.111-1092.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1092.151. BUDGET. The board shall prepare a budget that includes:

(1) proposed expenditures and disbursements;

(2) estimated receipts and collections for the next fiscal year; and

(3) the amount of taxes required to be imposed to meet the proposed budget. (Acts 64th Leg., R.S., Ch. 565, Sec. 13(b).)

Sec. 1092.152. PROPOSED BUDGET: NOTICE AND HEARING. (a) The board shall hold a public hearing on the proposed budget.

(b) Notice of the hearing must be published at least once in a newspaper of general circulation in the district not later than the 11th day before the date of the hearing.

(c) Any person who owns taxable property in the district and has duly rendered that property for taxation is entitled to:

(1) appear at the hearing; and

(2) be heard regarding any item in the proposed budget. (Acts 64th Leg., R.S., Ch. 565, Secs. 13(c), (d).)

Sec. 1092.153. FISCAL YEAR. The district's fiscal year is from January 1 to December 31. (Acts 64th Leg., R.S., Ch. 565, Sec. 13(a).)

Sec. 1092.154. ANNUAL AUDIT. (a) The board annually shall require an independent audit of the district's books and records.

(b) Not later than December 1 of each year, the board shall file a copy of the audit with:

(1) the comptroller; and

(2) the district. (Acts 64th Leg., R.S., Ch. 565, Sec. 12(d).)

Sec. 1092.155. DEPOSITORY. (a) The board by resolution shall designate a bank in Sabine County as the district's depository. A designated bank serves for two years and until a successor is designated.

(b) All district money shall be deposited in the depository and secured in the manner provided for securing county funds. (Acts 64th Leg., R.S., Ch. 565, Sec. 16.)

[Sections 1092.156-1092.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1092.201. BONDS. The district may issue bonds to:

(1) purchase, construct, acquire, repair, or renovate buildings and improvements; and

(2) equip buildings for hospital purposes. (Acts 64th Leg., R.S., Ch. 565, Secs. 9(a) (part), 10(a) (part).)

Sec. 1092.202. TAX TO PAY BONDS. The board may issue bonds under Section 1092.201 only if the board imposes an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature. (Acts 64th Leg., R.S., Ch. 565, Sec. 10(c).)

Sec. 1092.203. BOND ELECTION. (a) The board may issue bonds under Section 1092.201 only if the bonds are authorized by a majority of qualified voters voting in an election held for that purpose. The total face value of the bonds may not exceed the amount specified in the election order.

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

(c) The order calling the election must include:

(1) the time of the election;

(2) the location of the polling places;

(3) the form of the ballots;

(4) the presiding judge for each polling place;

(5) the purpose of the bond issuance;

(6) the amount of the bonds to be authorized;

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

(8) the maximum maturity date of the bonds.

(d) A substantial copy of the election order shall be published in a newspaper of general circulation in the district once a week for two consecutive weeks before the date of the election. The first notice must be published not later than the 15th day before the date of the election.

(e) A copy of the election results must be filed with the county clerk and become a public record. (Acts 64th Leg., R.S., Ch. 565, Secs. 4(b), (c), (d) (part), 9(a) (part), (b), (d), 10(a) (part).)

Sec. 1092.204. MATURITY OF BONDS. District bonds must mature not later than 40 years after the date of issuance. (Acts 64th Leg., R.S., Ch. 565, Sec. 9(c).)

Sec. 1092.205. EXECUTION OF BONDS. (a) The board president shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds. (Acts 64th Leg., R.S., Ch. 565, Sec. 10(b) (part).)

[Sections 1092.206-1092.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1092.251. IMPOSITION OF AD VALOREM TAX. (a) The board shall impose a tax on all property in the district subject to district taxation.

(b) The tax may be used only to:

(1) pay the interest on and create a sinking fund for bonds issued under this chapter;

(2) provide for the operation and maintenance of the district and hospital system;

(3) make improvements and additions to the hospital system; or

(4) acquire sites for additions to the hospital system. (Acts 64th Leg., R.S., Ch. 565, Secs. 8(a) (part), (c).)

Sec. 1092.252. TAX RATE. The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation. (Acts 64th Leg., R.S., Ch. 565, Sec. 8(a) (part).)

Sec. 1092.253. TAX ASSESSOR-COLLECTOR. The Sabine County tax assessor-collector shall collect taxes for the district. (Acts 64th Leg., R.S., Ch. 565, Sec. 8(d) (part).) CHAPTER 1093. SAN AUGUSTINE CITY-COUNTY HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1093.001. DEFINITIONS Sec. 1093.002. AUTHORITY FOR OPERATION Sec. 1093.003. ESSENTIAL PUBLIC FUNCTION Sec. 1093.004. DISTRICT TERRITORY Sec. 1093.005. CORRECTION OF INVALID PROCEDURES Sec. 1093.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1093.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1093.008-1093.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1093.051. BOARD APPOINTMENT; TERM Sec. 1093.052. QUALIFICATIONS FOR OFFICE Sec. 1093.053. BOND Sec. 1093.054. BOARD VACANCY Sec. 1093.055. OFFICERS Sec. 1093.056. COMPENSATION; EXPENSES Sec. 1093.057. VOTING REQUIREMENT Sec. 1093.058. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR Sec. 1093.059. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1093.060. APPOINTMENT AND DISMISSAL OF STAFF AND

EMPLOYEES Sec. 1093.061. SENIORITY; RETIREMENT BENEFITS

[Sections 1093.062-1093.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1093.101. DISTRICT RESPONSIBILITY Sec. 1093.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1093.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1093.104. HOSPITAL SYSTEM Sec. 1093.105. RULES Sec. 1093.106. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1093.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1093.108. EMINENT DOMAIN Sec. 1093.109. GIFTS AND ENDOWMENTS Sec. 1093.110. CONSTRUCTION OR PURCHASE CONTRACTS Sec. 1093.111. OPERATING AND MANAGEMENT CONTRACTS Sec. 1093.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT Sec. 1093.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES Sec. 1093.114. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1093.115. AUTHORITY TO SUE AND BE SUED

[Sections 1093.116-1093.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1093.151. BUDGET Sec. 1093.152. NOTICE; HEARING; ADOPTION OF BUDGET Sec. 1093.153. AMENDMENTS TO BUDGET Sec. 1093.154. RESTRICTION ON EXPENDITURES Sec. 1093.155. FISCAL YEAR Sec. 1093.156. AUDIT Sec. 1093.157. INSPECTION OF AUDIT AND DISTRICT

RECORDS Sec. 1093.158. FINANCIAL REPORT Sec. 1093.159. DEPOSITORY Sec. 1093.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1093.161-1093.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1093.201. GENERAL OBLIGATION BONDS Sec. 1093.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1093.203. GENERAL OBLIGATION BOND ELECTION Sec. 1093.204. MATURITY OF GENERAL OBLIGATION BONDS Sec. 1093.205. EXECUTION OF GENERAL OBLIGATION BONDS Sec. 1093.206. REVENUE BONDS Sec. 1093.207. REFUNDING BONDS Sec. 1093.208. BONDS EXEMPT FROM TAXATION

[Sections 1093.209-1093.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1093.251. IMPOSITION OF AD VALOREM TAX Sec. 1093.252. TAX RATE Sec. 1093.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR Sec. 1093.254. ASSESSMENT AND COLLECTION BY DISTRICT

TAX ASSESSOR-COLLECTOR

CHAPTER 1093. SAN AUGUSTINE CITY-COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1093.001. 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 San Augustine City-County Hospital District. (New.)

Sec. 1093.002. AUTHORITY FOR OPERATION. The San Augustine City-County Hospital 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. 5, Sec. 1 (part).)

Sec. 1093.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 62nd Leg., R.S., Ch. 5, Sec. 21 (part).)

Sec. 1093.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of San Augustine County, Texas. (Acts 62nd Leg., R.S., Ch. 5, Sec. 1 (part).)

Sec. 1093.005. 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. 5, Sec. 22 (part).)

Sec. 1093.006. 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. 5, Sec. 20 (part).)

Sec. 1093.007. 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. 5, Sec. 20 (part).)

[Sections 1093.008-1093.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1093.051. BOARD APPOINTMENT; TERM. (a) The board consists of seven directors appointed as follows:

(1) three directors appointed by the governing body of the City of San Augustine;

(2) three directors appointed by the Commissioners Court of San Augustine County; and

(3) one director jointly appointed by the City of San Augustine and the Commissioners Court of San Augustine County.

(b) Directors serve staggered two-year terms. (Acts 62nd Leg., R.S., Ch. 5, Sec. 3(d) (part).)

Sec. 1093.052. QUALIFICATIONS FOR OFFICE. (a) A person may not be appointed as a director unless the person is:

(1) a resident of the district;

(2) a freeholder; and

(3) a qualified voter.

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

(1) the district administrator;

(2) a district employee; or

(3) a member of the hospital staff. (Acts 62nd Leg., R.S., Ch. 5, Sec. 3(e).)

Sec. 1093.053. BOND. (a) Each director shall execute a good and sufficient bond for $1,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the director's duties.

(b) The district shall pay for the directors' bonds. (Acts 62nd Leg., R.S., Ch. 5, Sec. 3(d) (part).)

Sec. 1093.054. BOARD VACANCY. If a director resigns or dies, the body that appointed the resigning or deceased director shall fill the vacancy for the unexpired term. (Acts 62nd Leg., R.S., Ch. 5, Sec. 3(d) (part).)

Sec. 1093.055. OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

(c) The board shall fill a vacancy in a board office for the unexpired term. (Acts 62nd Leg., R.S., Ch. 5, Sec. 3(f) (part).)

Sec. 1093.056. COMPENSATION; EXPENSES. A director or officer serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties. The expenses must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 62nd Leg., R.S., Ch. 5, Sec. 3(f) (part).)

Sec. 1093.057. VOTING REQUIREMENT. A concurrence of four directors is sufficient in any matter relating to district business. (Acts 62nd Leg., R.S., Ch. 5, Sec. 3(f) (part).)

Sec. 1093.058. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The board may appoint a qualified person as a district administrator.

(b) The board may appoint one or more assistant administrators.

(c) The district administrator and any assistant administrator serve at the will of the board and are entitled to the compensation determined by the board.

(d) On assuming the duties of district administrator, the administrator shall execute a bond payable to the district in an amount set by the board of not less than $5,000 that:

(1) is conditioned on the administrator performing the administrator's duties; and

(2) contains other conditions the board may require. (Acts 62nd Leg., R.S., Ch. 5, Sec. 5 (part).)

Sec. 1093.059. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to the limitations prescribed by the board, the district administrator shall:

(1) supervise the work and activities of the district; and

(2) direct the affairs of the district. (Acts 62nd Leg., R.S., Ch. 5, Sec. 5 (part).)

Sec. 1093.060. APPOINTMENT AND DISMISSAL OF STAFF AND EMPLOYEES. (a) The board may appoint to or dismiss from the staff any doctors the board considers necessary for the efficient operation of the district and may make temporary appointments as warranted.

(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. 5, Secs. 5 (part), 16.)

Sec. 1093.061. 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. 5, Sec. 5 (part).)

[Sections 1093.062-1093.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1093.101. DISTRICT RESPONSIBILITY. The district has full responsibility for:

(1) providing medical and hospital care for the district's needy residents; and

(2) operating all hospital facilities for providing medical and hospital care for the district's needy inhabitants. (Acts 62nd Leg., R.S., Ch. 5, Secs. 4(a) (part), 19 (part).)

Sec. 1093.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision located within the district or that has the same boundaries as the district may not impose a tax on district residents or issue bonds or other obligations for hospital purposes or to provide medical care. (Acts 62nd Leg., R.S., Ch. 5, Sec. 19 (part).)

Sec. 1093.103. 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. 5, Sec. 5 (part).)

Sec. 1093.104. 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) community mental health centers;

(8) research centers or laboratories; and

(9) any other facilities the board considers necessary for hospital care. (Acts 62nd Leg., R.S., Ch. 5, Secs. 2 (part), 10 (part).)

Sec. 1093.105. 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. 5, Sec. 5 (part).)

Sec. 1093.106. 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. 5, Sec. 11 (part).)

Sec. 1093.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system.

(b) The board may lease all or part of the district's buildings or other facilities on terms considered to be in the best interest of the district's inhabitants. The term of the lease may not exceed 25 years.

(c) The district may acquire equipment for use in the district's hospital system and mortgage or pledge the property as security for the payment of the purchase price. A contract entered into under this subsection must provide that the entire obligation be retired not later than the fifth anniversary of the date of the contract.

(d) The district may sell or otherwise dispose of any property, including equipment, on terms the board finds are in the best interest of the district's inhabitants. (Acts 62nd Leg., R.S., Ch. 5, Secs. 10 (part), 11 (part).)

Sec. 1093.108. 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 petition for review. (Acts 62nd Leg., R.S., Ch. 5, Sec. 15.)

Sec. 1093.109. 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. 5, Sec. 18.)

Sec. 1093.110. 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. 5, Sec. 11 (part).)

Sec. 1093.111. 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. 5, Sec. 10 (part).)

Sec. 1093.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT. (a) The board may contract with a county or municipality located outside the district's boundaries for the hospitalization of a sick or injured person of that county or municipality.

(b) The board may contract with this state or a federal agency for the hospital treatment of a sick or injured person. (Acts 62nd Leg., R.S., Ch. 5, Sec. 5 (part).)

Sec. 1093.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR INVESTIGATORY OR OTHER SERVICES. The board may contract with a political subdivision or governmental agency for the district to provide investigatory or other services for the hospital or welfare needs of district inhabitants. (Acts 62nd Leg., R.S., Ch. 5, Sec. 5 (part).)

Sec. 1093.114. 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 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 day or week for the patient's care and support. The amount ordered must be proportionate to the person's financial ability.

(c) 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. (Acts 62nd Leg., R.S., Ch. 5, Sec. 17.)

Sec. 1093.115. AUTHORITY TO SUE AND BE SUED. (a) The district, through the board, may sue and be sued.

(b) The district is entitled to all causes of action and defenses to which similar authorities are entitled. (Acts 62nd Leg., R.S., Ch. 5, Sec. 5 (part).)

[Sections 1093.116-1093.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1093.151. 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. 5, Sec. 6 (part).)

Sec. 1093.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The board shall hold a public hearing on the proposed annual budget.

(b) At least 10 days before the date of the hearing, notice of the hearing shall be published one time in a newspaper or newspapers that individually or collectively have general circulation in the district.

(c) Any property taxpayer of the district is entitled to be present and participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt a budget by acting on the budget proposed by the district administrator. The board may make any changes in the proposed budget that the board judges to be in the interests of the taxpayers and that the law warrants. (Acts 62nd Leg., R.S., Ch. 5, Sec. 6 (part).)

Sec. 1093.153. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. (Acts 62nd Leg., R.S., Ch. 5, Sec. 6 (part).)

Sec. 1093.154. 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. 5, Sec. 6 (part).)

Sec. 1093.155. FISCAL YEAR. The district operates according to a fiscal year that begins on July 1 and ends on June 30. (Acts 62nd Leg., R.S., Ch. 5, Sec. 6 (part).)

Sec. 1093.156. AUDIT. (a) The district shall have an independent audit made of the district's financial condition for the fiscal year.

(b) As soon as the audit is completed, the audit shall be filed at the district's office. (Acts 62nd Leg., R.S., Ch. 5, Sec. 6 (part).)

Sec. 1093.157. 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. 5, Sec. 6 (part).)

Sec. 1093.158. 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. 5, Sec. 6 (part).)

Sec. 1093.159. DEPOSITORY. (a) The board shall select one or more banks in the district to serve as a depository for district money.

(b) District money, other than money invested as provided by Section 1093.160, and money transmitted to a bank for payment of bonds or obligations issued by the district, shall be deposited as received with the depository bank and shall remain on deposit.

(c) This chapter, including Subsection (b), does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit. (Acts 62nd Leg., R.S., Ch. 5, Sec. 12.)

Sec. 1093.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as otherwise provided by Section 1093.107(c) and by Subchapter E, the district may not incur an obligation payable from district revenue other than the revenue on hand or to be on hand in the current and following district fiscal years.

(b) The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code. (Acts 62nd Leg., R.S., Ch. 5, Secs. 5 (part), 11 (part).)

[Sections 1093.161-1093.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1093.201. 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) the equipment of buildings and improvements for hospital purposes. (Acts 62nd Leg., R.S., Ch. 5, Sec. 7(a) (part).)

Sec. 1093.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued under Section 1093.201, 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. 5, Sec. 7(a) (part).)

Sec. 1093.203. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

(b) The order calling the election shall provide for clerks as in county elections and must specify:

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding and alternate election judges for each polling place;

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

(5) the maximum interest rate of the bonds.

(c) Notice of a bond election shall be given as provided by Section 1251.003, Government Code. (Acts 62nd Leg., R.S., Ch. 5, Sec. 7(a) (part).)

Sec. 1093.204. MATURITY OF GENERAL OBLIGATION BONDS. District general obligation bonds must mature not later than 40 years after the date of issuance. (Acts 62nd Leg., R.S., Ch. 5, Sec. 7(d) (part).)

Sec. 1093.205. EXECUTION OF GENERAL OBLIGATION BONDS. (a) The board president shall execute the general obligation bonds in the district's name.

(b) The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code. (Acts 62nd Leg., R.S., Ch. 5, Sec. 7(d) (part).)

Sec. 1093.206. REVENUE BONDS. (a) The board may issue revenue bonds to:

(1) purchase, construct, acquire, repair, renovate, or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used for hospital purposes.

(b) The bonds must be payable from and secured by a pledge of all or part of the revenue derived from the operation of the district's hospitals.

(c) The bonds may be additionally secured by a mortgage or deed of trust lien on all or part of district property.

(d) The bonds must be issued in the manner and in accordance with the procedures and requirements prescribed by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 62nd Leg., R.S., Ch. 5, Sec. 8 (part).)

Sec. 1093.207. REFUNDING BONDS. (a) The board may, without an election, issue refunding bonds to refund outstanding indebtedness issued by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bond applied to the payment of the indebtedness to be refunded; or

(2) exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness. (Acts 62nd Leg., R.S., Ch. 5, Secs. 7(a) (part), (c) (part), 8 (part).)

Sec. 1093.208. 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; or

(3) profits made in the sale of the bonds. (Acts 62nd Leg., R.S., Ch. 5, Sec. 21 (part).)

[Sections 1093.209-1093.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1093.251. IMPOSITION OF AD VALOREM TAX. (a) The board shall impose a tax on all property in the district subject to district taxation.

(b) The board shall impose the tax to:

(1) pay the interest on and create a sinking fund for bonds or other obligations issued or assumed by the district for hospital purposes;

(2) provide for the operation and maintenance of the district and hospital system;

(3) make improvements and additions to the hospital system; and

(4) acquire necessary sites for the hospital system by purchase, lease, or condemnation. (Acts 62nd Leg., R.S., Ch. 5, Secs. 4(b) (part), 13 (part).)

Sec. 1093.252. 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 62nd Leg., R.S., Ch. 5, Secs. 4(b) (part), 13 (part).)

Sec. 1093.253. ASSESSMENT AND COLLECTION BY COUNTY TAX ASSESSOR-COLLECTOR. (a) This section applies unless the board by majority vote elects to have taxes assessed and collected under Section 1093.254.

(b) The tax assessor-collector of San Augustine County shall assess and collect taxes imposed by the district. (Acts 62nd Leg., R.S., Ch. 5, Sec. 14 (part).)

Sec. 1093.254. ASSESSMENT AND COLLECTION BY DISTRICT TAX ASSESSOR-COLLECTOR. (a) The board may elect to have district taxes assessed and collected by a tax assessor-collector appointed by the board. An election under this subsection must be made by December 1 and governs the manner in which taxes are assessed and collected, until changed by a similar resolution.

(b) The district tax assessor-collector must:

(1) reside in the district; and

(2) own real property subject to district taxation.

(c) The board shall set for the district tax assessor-collector:

(1) the term of employment; and

(2) compensation. (Acts 62nd Leg., R.S., Ch. 5, Sec. 14 (part).) CHAPTER 1094. SEMINOLE HOSPITAL DISTRICT OF GAINES COUNTY, TEXAS SUBCHAPTER A. GENERAL PROVISIONS Sec. 1094.001. DEFINITIONS Sec. 1094.002. AUTHORITY FOR CREATION Sec. 1094.003. ESSENTIAL PUBLIC FUNCTION Sec. 1094.004. DISTRICT TERRITORY Sec. 1094.005. CORRECTION OF INVALID PROCEDURES Sec. 1094.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1094.007. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1094.008-1094.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1094.051. BOARD ELECTION; TERM Sec. 1094.052. NOTICE OF ELECTION Sec. 1094.053. BALLOT PETITION Sec. 1094.054. QUALIFICATIONS FOR OFFICE Sec. 1094.055. BOARD VACANCY Sec. 1094.056. OFFICERS Sec. 1094.057. VOTING REQUIREMENT Sec. 1094.058. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR Sec. 1094.059. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1094.060. APPOINTMENT AND DISMISSAL OF STAFF AND

EMPLOYEES Sec. 1094.061. SENIORITY; RETIREMENT BENEFITS

[Sections 1094.062-1094.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1094.101. DISTRICT RESPONSIBILITY Sec. 1094.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1094.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1094.104. HOSPITAL SYSTEM Sec. 1094.105. RULES Sec. 1094.106. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1094.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1094.108. EMINENT DOMAIN Sec. 1094.109. GIFTS AND ENDOWMENTS Sec. 1094.110. CONSTRUCTION OR PURCHASE CONTRACTS Sec. 1094.111. OPERATING AND MANAGEMENT CONTRACTS Sec. 1094.112. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR HOSPITALIZATION Sec. 1094.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES Sec. 1094.114. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1094.115. AUTHORITY TO SUE AND BE SUED

[Sections 1094.116-1094.150 reserved for expansion]

SUBCHAPTER D. CHANGE IN BOUNDARIES Sec. 1094.151. ELECTION ON EXPANSION OF BOUNDARIES Sec. 1094.152. BALLOT Sec. 1094.153. ELECTION RESULTS

[Sections 1094.154-1094.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS Sec. 1094.201. BUDGET Sec. 1094.202. NOTICE; HEARING; ADOPTION OF BUDGET Sec. 1094.203. AMENDMENTS TO BUDGET Sec. 1094.204. RESTRICTION ON EXPENDITURES Sec. 1094.205. FISCAL YEAR Sec. 1094.206. AUDIT Sec. 1094.207. INSPECTION OF AUDIT AND DISTRICT

RECORDS Sec. 1094.208. FINANCIAL REPORT Sec. 1094.209. DEPOSITORY Sec. 1094.210. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1094.211-1094.250 reserved for expansion]

SUBCHAPTER F. BONDS Sec. 1094.251. GENERAL OBLIGATION BONDS Sec. 1094.252. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1094.253. GENERAL OBLIGATION BOND ELECTION Sec. 1094.254. MATURITY OF GENERAL OBLIGATION BONDS Sec. 1094.255. EXECUTION OF GENERAL OBLIGATION BONDS Sec. 1094.256. REVENUE BONDS Sec. 1094.257. REFUNDING BONDS Sec. 1094.258. BONDS EXEMPT FROM TAXATION

[Sections 1094.259-1094.300 reserved for expansion]

SUBCHAPTER G. TAXES Sec. 1094.301. IMPOSITION OF AD VALOREM TAX Sec. 1094.302. TAX RATE Sec. 1094.303. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR Sec. 1094.304. ASSESSMENT AND COLLECTION BY DISTRICT

TAX ASSESSOR-COLLECTOR

CHAPTER 1094. SEMINOLE HOSPITAL DISTRICT OF GAINES COUNTY, TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1094.001. 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 Seminole Hospital District of Gaines County, Texas. (New.)

Sec. 1094.002. AUTHORITY FOR CREATION. The Seminole Hospital District of Gaines County, Texas, is created under the authority of Section 9, Article IX, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 102, Sec. 1.)

Sec. 1094.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 62nd Leg., R.S., Ch. 102, Sec. 22 (part).)

Sec. 1094.004. DISTRICT TERRITORY. The district is composed of the territory in the boundaries of the Seminole Common Consolidated School District No. 1 located in Gaines County as those boundaries existed on April 29, 1971, unless the district's boundaries are expanded under Subchapter D. (Acts 62nd Leg., R.S., Ch. 102, Sec. 2.)

Sec. 1094.005. 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. 102, Sec. 23 (part).)

Sec. 1094.006. 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. 102, Sec. 21 (part).)

Sec. 1094.007. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 62nd Leg., R.S., Ch. 102, Sec. 21 (part).)

[Sections 1094.008-1094.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1094.051. BOARD ELECTION; TERM. (a) The board consists of seven directors elected from the district at large.

(b) Unless four-year terms are established under Section 285.081, Health and Safety Code, directors serve staggered two-year terms. (Acts 62nd Leg., R.S., Ch. 102, Secs. 5(a) (part), (b) (part).)

Sec. 1094.052. 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 Gaines County. (Acts 62nd Leg., R.S., Ch. 102, Sec. 5(e) (part).)

Sec. 1094.053. BALLOT PETITION. A person who wants to have the person's name printed on the ballot as a candidate for director must file with the board secretary a petition requesting that action. The petition must be:

(1) signed by at least 25 voters; and

(2) filed at least 25 days before the date of the election. (Acts 62nd Leg., R.S., Ch. 102, Sec. 5(e) (part).)

Sec. 1094.054. QUALIFICATIONS FOR OFFICE. A person may not be elected or appointed as a director unless the person:

(1) is a resident of the district;

(2) owns property in the district subject to taxation; and

(3) is more than 18 years of age at the time of the election or appointment. (Acts 62nd Leg., R.S., Ch. 102, Sec. 5(c).)

Sec. 1094.055. 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 five 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. 102, Sec. 5(d) (part).)

Sec. 1094.056. OFFICERS. The board shall elect:

(1) a president and a vice president from among its members; and

(2) a secretary, who need not be a director. (Acts 62nd Leg., R.S., Ch. 102, Sec. 5(d) (part).)

Sec. 1094.057. VOTING REQUIREMENT. A concurrence of four directors is sufficient in any matter relating to district business. (Acts 62nd Leg., R.S., Ch. 102, Sec. 5(d) (part).)

Sec. 1094.058. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The board may appoint a qualified person as district administrator.

(b) The board may appoint one or more assistant administrators.

(c) The district administrator and any assistant administrator serve at the will of the board and are entitled to the compensation determined by the board.

(d) On assuming the duties of district administrator, the administrator shall execute a bond payable to the district in an amount set by the board of not less than $5,000 that:

(1) is conditioned on the administrator performing the administrator's duties; and

(2) contains other conditions the board may require. (Acts 62nd Leg., R.S., Ch. 102, Sec. 6 (part).)

Sec. 1094.059. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to the limitations prescribed by the board, the district administrator shall:

(1) supervise the work and activities of the district; and

(2) direct the affairs of the district. (Acts 62nd Leg., R.S., Ch. 102, Sec. 6 (part).)

Sec. 1094.060. APPOINTMENT AND DISMISSAL OF STAFF AND EMPLOYEES. (a) The board may appoint to or dismiss from the staff any doctors as the board considers necessary for the efficient operation of the district and may make temporary appointments as warranted.

(b) The district may employ fiscal agents, accountants, architects, and attorneys 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. 102, Secs. 6 (part), 17.)

Sec. 1094.061. 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. 102, Sec. 6 (part).)

[Sections 1094.062-1094.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1094.101. DISTRICT RESPONSIBILITY. (a) The district has full responsibility for providing hospital care for the district's indigent residents.

(b) The district shall provide all necessary hospital and medical care for the district's needy inhabitants. (Acts 62nd Leg., R.S., Ch. 102, Secs. 3(a) (part), 20 (part).)

Sec. 1094.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision of this state, other than the district, may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care in the district. (Acts 62nd Leg., R.S., Ch. 102, Secs. 3(a) (part), 20 (part).)

Sec. 1094.103. 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. 102, Sec. 6 (part).)

Sec. 1094.104. HOSPITAL SYSTEM. (a) The district has the responsibility to establish a hospital or hospital system within its boundaries to provide hospital and medical care to the district's residents.

(b) The district shall provide for:

(1) the establishment of a hospital system by:

(A) purchasing, constructing, acquiring, repairing, or renovating buildings and equipment; and

(B) equipping the buildings; and

(2) the administration of the hospital system for hospital and medical care purposes.

(c) The hospital system may include:

(1) facilities for domiciliary care of the sick, injured, or geriatric;

(2) facilities for outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses domiciliaries and training centers;

(6) blood banks;

(7) community mental health centers;

(8) research centers or laboratories; and

(9) any other facilities the board considers necessary for medical and hospital care. (Acts 62nd Leg., R.S., Ch. 102, Secs. 3(a) (part), (b) (part), 10 (part).)

Sec. 1094.105. 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. 102, Sec. 6 (part).)

Sec. 1094.106. 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. 102, Sec. 11 (part).)

Sec. 1094.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system.

(b) The board may lease all or part of the district's buildings and other facilities on terms considered to be in the best interest of the district's inhabitants. The term of the lease may not exceed 25 years.

(c) The district may acquire equipment for use in the district's hospital system and mortgage or pledge the property as security for the payment of the purchase price. A contract entered into under this subsection must provide that the entire obligation be retired not later than the fifth anniversary of the date of the contract.

(d) The district may sell or otherwise dispose of any property, including equipment, on terms the board finds are in the best interest of the district's inhabitants. (Acts 62nd Leg., R.S., Ch. 102, Secs. 10 (part), 11 (part).)

Sec. 1094.108. 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 petition for review. (Acts 62nd Leg., R.S., Ch. 102, Sec. 15.)

Sec. 1094.109. 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. 102, Sec. 19.)

Sec. 1094.110. 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. 102, Sec. 11 (part).)

Sec. 1094.111. 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. 102, Sec. 10 (part).)

Sec. 1094.112. 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 hospital treatment of a sick or injured person. (Acts 62nd Leg., R.S., Ch. 102, Sec. 6 (part).)

Sec. 1094.113. 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 for the hospital or welfare needs of district inhabitants. (Acts 62nd Leg., R.S., Ch. 102, Sec. 6 (part).)

Sec. 1094.114. 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. 102, Sec. 18.)

Sec. 1094.115. AUTHORITY TO SUE AND BE SUED. (a) The district, through the board, may sue and be sued.

(b) The district is entitled to all causes of action and defenses to which similar authorities are entitled. (Acts 62nd Leg., R.S., Ch. 102, Sec. 6 (part).)

[Sections 1094.116-1094.150 reserved for expansion]

SUBCHAPTER D. CHANGE IN BOUNDARIES

Sec. 1094.151. ELECTION ON EXPANSION OF BOUNDARIES. (a) On presentation of a petition for an election signed by at least 50 registered voters of Gaines County who do not reside within the district's boundaries, the board shall order an election on the questions of:

(1) expanding the district's boundaries to include the entire county;

(2) the assumption of a proportionate share of district debts; and

(3) the imposition of taxes in the territory to be added to the district.

(b) The board shall order the election not later than the 60th day after the date on which the petition is presented to the board.

(c) The election in the district and the election in the territory to be added must be held on the same day.

(d) Section 41.001(a), Election Code, does not apply to an election ordered under this section. (Acts 62nd Leg., R.S., Ch. 102, Secs. 2A(a), (b), (e), (f).)

Sec. 1094.152. BALLOT. The ballot for the election shall be printed to permit voting for or against the proposition: "Expanding the Seminole Hospital District to include all of Gaines County, the assumption by the additional territory of its proportionate share of the district's outstanding debts, and the levy of a tax not to exceed 75 cents on each $100 of valuation on all taxable property in the expanded area of the district." (Acts 62nd Leg., R.S., Ch. 102, Sec. 2A(c).)

Sec. 1094.153. ELECTION RESULTS. The district may not be expanded unless the proposition under Section 1094.152 is approved by a majority of the voters at an election held in the district and by a majority of the voters at a separate election held in the territory to be added. (Acts 62nd Leg., R.S., Ch. 102, Sec. 2A(d).)

[Sections 1094.154-1094.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 1094.201. BUDGET. (a) The district administrator shall prepare an annual budget for approval by the board.

(b) The proposed budget must contain a complete financial statement of:

(1) the outstanding obligations of the district;

(2) the cash on hand in each district fund;

(3) the money received by the district from all sources during the previous year;

(4) the money available to the district from all sources during the ensuing year;

(5) the balances expected at the end of the year in which the budget is being prepared;

(6) the estimated revenue and balances available to cover the proposed budget;

(7) the estimated tax rate required; and

(8) the proposed expenditures and disbursements and the estimated receipts and collections for the following fiscal year. (Acts 62nd Leg., R.S., Ch. 102, Sec. 7 (part).)

Sec. 1094.202. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The board shall hold a public hearing on the proposed annual budget.

(b) At least 10 days before the date of the hearing, notice of the hearing shall be published one time in a newspaper or newspapers that individually or collectively have general circulation in the district.

(c) Any property taxpayer of the district is entitled to be present and participate at the hearing.

(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. 102, Sec. 7 (part).)

Sec. 1094.203. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. (Acts 62nd Leg., R.S., Ch. 102, Sec. 7 (part).)

Sec. 1094.204. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the budget or an amendment to the budget. (Acts 62nd Leg., R.S., Ch. 102, Sec. 7 (part).)

Sec. 1094.205. FISCAL YEAR. The district operates according to a fiscal year that begins on October 1 and ends on September 30. (Acts 62nd Leg., R.S., Ch. 102, Sec. 7 (part).)

Sec. 1094.206. AUDIT. (a) The district shall have an independent audit made of the district's financial condition for the fiscal year.

(b) As soon as the audit is completed, the audit shall be filed at the district's office. (Acts 62nd Leg., R.S., Ch. 102, Sec. 7 (part).)

Sec. 1094.207. INSPECTION OF AUDIT AND DISTRICT RECORDS. The audit and other district records shall be open to inspection at the district's principal office. (Acts 62nd Leg., R.S., Ch. 102, Sec. 7 (part).)

Sec. 1094.208. FINANCIAL REPORT. As soon as practicable after the close of each fiscal year, the district administrator shall prepare for the board:

(1) a complete sworn statement of all district money; and

(2) a complete account of the disbursements of that money. (Acts 62nd Leg., R.S., Ch. 102, Sec. 7 (part).)

Sec. 1094.209. DEPOSITORY. (a) The board shall select one or more banks in the district to serve as a depository for district money.

(b) District money, other than money invested as provided by Section 1094.210(b), and money transmitted to a bank for payment of bonds or obligations issued by the district, shall be deposited as received with the depository bank and shall remain on deposit.

(c) This chapter, including Subsection (b), does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit. (Acts 62nd Leg., R.S., Ch. 102, Sec. 12.)

Sec. 1094.210. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as otherwise provided by Section 1094.107(c) and Subchapter F, the district may not incur an obligation payable from district revenue other than the revenue on hand or to be on hand in the current and following district fiscal years.

(b) The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code. (Acts 62nd Leg., R.S., Ch. 102, Secs. 6 (part), 11 (part).)

[Sections 1094.211-1094.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec. 1094.251. GENERAL OBLIGATION BONDS. The board may issue and sell general obligation bonds in the name and on the faith and credit of the district for any purpose relating to:

(1) the purchase, construction, acquisition, repair, or renovation of buildings or improvements; and

(2) equipping buildings or improvements for hospital purposes. (Acts 62nd Leg., R.S., Ch. 102, Sec. 8(a) (part).)

Sec. 1094.252. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1094.251, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature.

(b) The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed the tax rate approved by the voters at the election authorizing the imposition of the tax. (Acts 62nd Leg., R.S., Ch. 102, Sec. 8(a) (part).)

Sec. 1094.253. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

(b) The order calling the election shall provide for clerks as in county elections and must specify:

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding and alternate election judges for each polling place;

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

(5) the maximum interest rate of the bonds.

(c) Notice of a bond election shall be given as provided by Section 1251.003, Government Code. (Acts 62nd Leg., R.S., Ch. 102, Sec. 8(a) (part).)

Sec. 1094.254. MATURITY OF GENERAL OBLIGATION BONDS. District general obligation bonds must mature not later than 40 years after the date of issuance. (Acts 62nd Leg., R.S., Ch. 102, Sec. 8(d) (part).)

Sec. 1094.255. EXECUTION OF GENERAL OBLIGATION BONDS. (a) The board president shall execute the general obligation bonds in the district's name.

(b) The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code. (Acts 62nd Leg., R.S., Ch. 102, Sec. 8(d) (part).)

Sec. 1094.256. 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. 102, Sec. 9 (part).)

Sec. 1094.257. REFUNDING BONDS. (a) The board may, without an election, issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bond applied to the payment of the indebtedness to be refunded; or

(2) exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness. (Acts 62nd Leg., R.S., Ch. 102, Secs. 8(a) (part), (c) (part), 9 (part).)

Sec. 1094.258. 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 62nd Leg., R.S., Ch.102, Sec. 22 (part).)

[Sections 1094.259-1094.300 reserved for expansion]

SUBCHAPTER G. TAXES

Sec. 1094.301. IMPOSITION OF AD VALOREM TAX. (a) The board shall impose a tax on all property in the district subject to district taxation.

(b) The board shall impose the tax to:

(1) pay the interest on and create a sinking fund for bonds or other obligations issued or assumed by the district for hospital purposes;

(2) provide for the operation and maintenance of the district and hospital system;

(3) make improvements and additions to the hospital system; and

(4) acquire necessary sites for the hospital system by purchase, lease, or condemnation. (Acts 62nd Leg., R.S., Ch. 102, Secs. 4(b) (part), 13(a) (part).)

Sec. 1094.302. 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 62nd Leg., R.S., Ch. 102, Secs. 4(b) (part), 13(a) (part), (b) (part).)

Sec. 1094.303. ASSESSMENT AND COLLECTION BY COUNTY TAX ASSESSOR-COLLECTOR. (a) This section applies unless the board elects to have taxes assessed and collected under Section 1094.304.

(b) The tax assessor-collector of Gaines County shall assess and collect taxes imposed by the district. (Acts 62nd Leg., R.S., Ch. 102, Secs. 16(a) (part), (b) (part).)

Sec. 1094.304. ASSESSMENT AND COLLECTION BY DISTRICT TAX ASSESSOR-COLLECTOR. (a) The board may elect to have district taxes assessed and collected by a tax assessor-collector appointed by the board. An election under this subsection must be made by December 1 and governs the manner in which taxes are assessed and collected, until changed by a similar resolution.

(b) The district tax assessor-collector must:

(1) reside in the district; and

(2) own real property subject to district taxation.

(c) The board shall set for the district tax assessor-collector:

(1) the term of employment; and

(2) compensation. (Acts 62nd Leg., R.S., Ch. 102, Secs. 16(a) (part), (c) (part).) CHAPTER 1095. SHACKELFORD COUNTY HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1095.001. DEFINITIONS Sec. 1095.002. AUTHORITY FOR OPERATION Sec. 1095.003. ESSENTIAL PUBLIC FUNCTION Sec. 1095.004. DISTRICT TERRITORY Sec. 1095.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1095.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1095.007-1095.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1095.051. BOARD ELECTION; TERM Sec. 1095.052. NOTICE OF ELECTION Sec. 1095.053. BALLOT PETITION Sec. 1095.054. QUALIFICATIONS FOR OFFICE Sec. 1095.055. BOARD VACANCY Sec. 1095.056. OFFICERS Sec. 1095.057. COMPENSATION; EXPENSES Sec. 1095.058. VOTING REQUIREMENT Sec. 1095.059. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR Sec. 1095.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1095.061. APPOINTMENT OF STAFF AND EMPLOYEES

[Sections 1095.062-1095.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1095.101. DISTRICT RESPONSIBILITY Sec. 1095.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1095.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1095.104. HOSPITAL SYSTEM Sec. 1095.105. RULES Sec. 1095.106. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1095.107. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT Sec. 1095.108. EMINENT DOMAIN Sec. 1095.109. COST OF RELOCATING OR ALTERING PROPERTY Sec. 1095.110. GIFTS AND ENDOWMENTS Sec. 1095.111. CONSTRUCTION CONTRACTS Sec. 1095.112. OPERATING AND MANAGEMENT CONTRACTS Sec. 1095.113. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT Sec. 1095.114. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR INVESTIGATORY OR OTHER SERVICES Sec. 1095.115. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1095.116. AUTHORITY TO SUE AND BE SUED Sec. 1095.117. ELECTION DATE

[Sections 1095.118-1095.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1095.151. BUDGET Sec. 1095.152. NOTICE; HEARING; ADOPTION OF BUDGET Sec. 1095.153. AMENDMENTS TO BUDGET Sec. 1095.154. RESTRICTION ON EXPENDITURES Sec. 1095.155. FISCAL YEAR Sec. 1095.156. ANNUAL AUDIT Sec. 1095.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS Sec. 1095.158. FINANCIAL REPORT Sec. 1095.159. DEPOSITORY Sec. 1095.160. SPENDING AND INVESTMENT RESTRICTIONS

[Sections 1095.161-1095.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1095.201. GENERAL OBLIGATION BONDS Sec. 1095.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1095.203. GENERAL OBLIGATION BOND ELECTION Sec. 1095.204. MATURITY OF GENERAL OBLIGATION BONDS Sec. 1095.205. EXECUTION OF GENERAL OBLIGATION BONDS Sec. 1095.206. REVENUE BONDS Sec. 1095.207. REFUNDING BONDS Sec. 1095.208. BONDS EXEMPT FROM TAXATION

[Sections 1095.209-1095.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1095.251. IMPOSITION OF AD VALOREM TAX Sec. 1095.252. TAX RATE Sec. 1095.253. ASSESSMENT AND COLLECTION BY COUNTY TAX

ASSESSOR-COLLECTOR Sec. 1095.254. ASSESSMENT AND COLLECTION BY DISTRICT

TAX ASSESSOR-COLLECTOR

CHAPTER 1095. SHACKELFORD COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1095.001. 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 Shackelford County Hospital District. (New.)

Sec. 1095.002. AUTHORITY FOR OPERATION. The Shackelford County Hospital District operates and is administered and financed in accordance with Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties provided by this chapter. (Acts 65th Leg., R.S., Ch. 140, Sec. 1 (part).)

Sec. 1095.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 65th Leg., R.S., Ch. 140, Sec. 21 (part).)

Sec. 1095.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Shackelford County, Texas. (Acts 65th Leg., R.S., Ch. 140, Sec. 1 (part).)

Sec. 1095.005. 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 65th Leg., R.S., Ch. 140, Sec. 20 (part).)

Sec. 1095.006. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 65th Leg., R.S., Ch. 140, Sec. 20 (part).)

[Sections 1095.007-1095.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1095.051. BOARD ELECTION; TERM. (a) The board consists of seven directors elected from the district at large.

(b) Unless four-year terms are established under Section 285.081, Health and Safety Code:

(1) directors serve staggered two-year terms; and

(2) a directors' election shall be held on the uniform election date in May of each year. (Acts 65th Leg., R.S., Ch. 140, Sec. 4(c) (part).)

Sec. 1095.052. NOTICE OF ELECTION. At least 30 days before the date of an election of directors, notice of the election shall be published one time in a newspaper or newspapers that individually or collectively have general circulation in the district. (Acts 65th Leg., R.S., Ch. 140, Sec. 4(c) (part).)

Sec. 1095.053. BALLOT PETITION. A person who wants to have the person's name printed on the ballot as a candidate for director must file with the board secretary a petition requesting that action. The petition must be:

(1) signed by at least 10 voters; and

(2) filed at least 30 days before the date of the election. (Acts 65th Leg., R.S., Ch. 140, Sec. 4(c) (part).)

Sec. 1095.054. QUALIFICATIONS FOR OFFICE. (a) A person may not be elected or appointed as a director unless the person is:

(1) a resident of the district; and

(2) a qualified voter.

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

(1) the district administrator; or

(2) a district employee. (Acts 65th Leg., R.S., Ch. 140, Sec. 4(d).)

Sec. 1095.055. BOARD VACANCY. If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term. (Acts 65th Leg., R.S., Ch. 140, Sec. 4(c) (part).)

Sec. 1095.056. OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

(c) The board shall fill a vacancy in a board office for the unexpired term. (Acts 65th Leg., R.S., Ch. 140, Sec. 4(e) (part).)

Sec. 1095.057. 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 65th Leg., R.S., Ch. 140, Sec. 4(e) (part).)

Sec. 1095.058. VOTING REQUIREMENT. A concurrence of four directors is sufficient in any matter relating to district business. (Acts 65th Leg., R.S., Ch. 140, Sec. 4(e) (part).)

Sec. 1095.059. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The board shall appoint a qualified person as district administrator.

(b) The board may appoint an assistant administrator.

(c) The district administrator and any assistant administrator serve at the will of the board and are entitled to the compensation determined by the board.

(d) On assuming the duties of district administrator, the administrator shall execute a bond payable to the district in an amount set by the board of not less than $5,000 that:

(1) is conditioned on the administrator performing the administrator's duties; and

(2) contains other conditions the board may require. (Acts 65th Leg., R.S., Ch. 140, Sec. 5 (part).)

Sec. 1095.060. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to the limitations prescribed by the board, the district administrator shall:

(1) supervise the work and activities of the district; and

(2) direct the affairs of the district. (Acts 65th Leg., R.S., Ch. 140, Sec. 5 (part).)

Sec. 1095.061. APPOINTMENT OF STAFF AND EMPLOYEES. (a) The board may appoint to the staff any doctors as the board considers necessary for the efficient operation of the district and may make temporary appointments as warranted.

(b) The district may employ fiscal agents, accountants, architects, and additional attorneys as the board considers proper.

(c) The board may delegate to the district administrator the authority to hire district employees, including technicians and nurses. (Acts 65th Leg., R.S., Ch. 140, Secs. 5 (part), 16.)

[Sections 1095.062-1095.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1095.101. DISTRICT RESPONSIBILITY. The district has full responsibility for operating all hospital facilities for providing medical and hospital care for the district's needy inhabitants. (Acts 65th Leg., R.S., Ch. 140, Sec. 19 (part).)

Sec. 1095.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision located wholly or partly within the district may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care for district residents. (Acts 65th Leg., R.S., Ch. 140, Sec. 19 (part).)

Sec. 1095.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the hospital system and the district's money and resources. (Acts 65th Leg., R.S., Ch. 140, Sec. 5 (part).)

Sec. 1095.104. HOSPITAL SYSTEM. (a) The district shall provide for:

(1) the establishment of a hospital system by:

(A) purchasing, constructing, acquiring, repairing, or renovating buildings and equipment; and

(B) equipping the buildings; and

(2) the administration of the system for hospital purposes.

(b) The hospital system may include any facilities the board considers necessary for hospital care. (Acts 65th Leg., R.S., Ch. 140, Secs. 2 (part), 10(a) (part).)

Sec. 1095.105. RULES. The board may adopt rules governing the operation of the hospital, the hospital system, and the district's staff and employees. (Acts 65th Leg., R.S., Ch. 140, Sec. 5 (part).)

Sec. 1095.106. 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 65th Leg., R.S., Ch. 140, Sec. 10(b) (part).)

Sec. 1095.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system.

(b) The board may lease all or part of the district's buildings and other facilities on terms considered to be in the best interest of the district's inhabitants.

(c) The district may acquire equipment for use in the district's hospital system and mortgage or pledge the property as security for the payment of the purchase price.

(d) The district may sell or otherwise dispose of any property, including equipment, on terms the board finds are in the best interest of the district's inhabitants. (Acts 65th Leg., R.S., Ch. 140, Secs. 10(a) (part), (b) (part).)

Sec. 1095.108. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property located in district territory if the interest is necessary or convenient for the district to exercise a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, except the district is not required to deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code.

(c) In a condemnation proceeding brought by the district, the district is not required to:

(1) pay in advance or provide a bond or other security for costs in the trial court;

(2) provide a bond for the issuance of a temporary restraining order or a temporary injunction; or

(3) provide a bond for costs or a supersedeas bond on an appeal or petition for review. (Acts 65th Leg., R.S., Ch. 140, Sec. 14(a).)

Sec. 1095.109. COST OF RELOCATING OR ALTERING PROPERTY. In exercising the power of eminent domain, if the board requires relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of any railroad, electric transmission, telegraph or telephone line, conduit, pole, or facility, or pipeline, the board 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. 140, Sec. 14(b).)

Sec. 1095.110. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district. (Acts 65th Leg., R.S., Ch. 140, Sec. 18.)

Sec. 1095.111. CONSTRUCTION CONTRACTS. A construction contract that involves the expenditure of more than $10,000 may be made only after advertising in the manner provided by Chapter 252 and Subchapter C, Chapter 262, Local Government Code. (Acts 65th Leg., R.S., Ch. 140, Sec. 10(b) (part).)

Sec. 1095.112. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to a district facility. (Acts 65th Leg., R.S., Ch. 140, Sec. 10(a) (part).)

Sec. 1095.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT. (a) The board may contract with a county or municipality located outside the district's boundaries for the care and treatment of a sick or injured person of that county or municipality.

(b) The board may contract with this state or a federal agency for the treatment of a sick or injured person. (Acts 65th Leg., R.S., Ch. 140, Sec. 5 (part).)

Sec. 1095.114. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR INVESTIGATORY OR OTHER SERVICES. The board may contract with a political subdivision or governmental agency for the district to provide investigatory or other services for the medical, hospital, or welfare needs of district inhabitants. (Acts 65th Leg., R.S., Ch. 140, Sec. 5 (part).)

Sec. 1095.115. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a patient who resides in the district is admitted to a district facility, the district administrator may have an inquiry made into the circumstances of:

(1) the patient; and

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

(b) If the district administrator determines that the patient or those relatives cannot pay all or part of the costs of the care and treatment in the hospital, the amount of the costs that cannot be paid becomes a charge against the district.

(c) If the district administrator determines that the patient or those relatives can pay for all or part of the costs of the patient's care and treatment, the patient or those relatives shall be ordered to pay the district a specified amount each week for the patient's care and support. The amount ordered must be proportionate to the person's financial ability.

(d) The district administrator may collect the amount from the estate of the patient, 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; 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 65th Leg., R.S., Ch. 140, Sec. 17.)

Sec. 1095.116. AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued. (Acts 65th Leg., R.S., Ch. 140, Sec. 5 (part).)

Sec. 1095.117. ELECTION DATE. Notwithstanding Section 41.001(a), Election Code, the board may choose the date for an election held under this chapter other than a directors' election under Section 1095.051. (Acts 65th Leg., R.S., Ch. 140, Sec. 3(e).)

[Sections 1095.118-1095.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1095.151. BUDGET. (a) The district administrator shall prepare an annual budget for approval by the board.

(b) The proposed budget must contain a complete financial statement of:

(1) the outstanding obligations of the district;

(2) the cash on hand in each district fund;

(3) the money received by the district from all sources during the previous year;

(4) the money available to the district from all sources during the ensuing year;

(5) the balances expected at the end of the year in which the budget is being prepared;

(6) the estimated revenue and balances available to cover the proposed budget; and

(7) the estimated tax rate required. (Acts 65th Leg., R.S., Ch. 140, Sec. 6 (part).)

Sec. 1095.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The board shall hold a public hearing on the proposed annual budget.

(b) Notice of the hearing must be published one time at least 10 days before the date of the hearing.

(c) Any district resident is entitled to be present and participate at the hearing.

(d) At the conclusion of the hearing, the board shall adopt a budget by acting on the budget proposed by the district administrator. The board may make any changes in the proposed budget that the board judges to be in the interests of the taxpayers and that the law warrants. (Acts 65th Leg., R.S., Ch. 140, Sec. 6 (part).)

Sec. 1095.153. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. (Acts 65th Leg., R.S., Ch. 140, Sec. 6 (part).)

Sec. 1095.154. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the budget or an amendment to the budget. (Acts 65th Leg., R.S., Ch. 140, Sec. 6 (part).)

Sec. 1095.155. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that district revenue bonds are outstanding; or

(2) more than once in a 24-month period. (Acts 65th Leg., R.S., Ch. 140, Sec. 6 (part).)

Sec. 1095.156. ANNUAL AUDIT. The board annually shall have an audit made of the district's financial condition. (Acts 65th Leg., R.S., Ch. 140, Sec. 6 (part).)

Sec. 1095.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT RECORDS. The annual audit and other district records shall be open to inspection at the district's principal office. (Acts 65th Leg., R.S., Ch. 140, Sec. 6 (part).)

Sec. 1095.158. 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 65th Leg., R.S., Ch. 140, Sec. 6 (part).)

Sec. 1095.159. 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 1095.160(b), and money transmitted to a bank for payment of bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and shall remain on deposit.

(c) This chapter, including Subsection (b), does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit.

(d) The district may not deposit money with a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation unless the bank first executes a bond or other security in an amount sufficient to secure from loss the district money that exceeds the amount secured by the Federal Deposit Insurance Corporation. (Acts 65th Leg., R.S., Ch. 140, Sec. 11.)

Sec. 1095.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as otherwise provided by Section 1095.107(c) and by Subchapter E, the district may not incur an obligation payable from district revenue other than the revenue on hand or to be on hand in the current and following district fiscal years.

(b) The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code. (Acts 65th Leg., R.S., Ch. 140, Secs. 5 (part), 10(b) (part).)

[Sections 1095.161-1095.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1095.201. 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 65th Leg., R.S., Ch. 140, Sec. 7(a) (part).)

Sec. 1095.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1095.201, 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 65th Leg., R.S., Ch. 140, Sec. 7(a) (part).)

Sec. 1095.203. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters.

(b) The order calling the election shall provide for clerks as in county elections and must specify:

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding and alternate election judges for each polling place;

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

(5) the maximum maturity of the bonds.

(c) Notice of a bond election shall be given as provided by Section 1251.003, Government Code. (Acts 65th Leg., R.S., Ch. 140, Sec. 7(a) (part).)

Sec. 1095.204. MATURITY OF GENERAL OBLIGATION BONDS. District general obligation bonds must mature not later than 40 years after the date of issuance. (Acts 65th Leg., R.S., Ch. 140, Sec. 7(c) (part).)

Sec. 1095.205. EXECUTION OF GENERAL OBLIGATION BONDS. (a) The board president shall execute the general obligation bonds in the district's name.

(b) The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code. (Acts 65th Leg., R.S., Ch. 140, Sec. 7(c) (part).)

Sec. 1095.206. REVENUE BONDS. (a) The board may issue revenue bonds to:

(1) purchase, construct, acquire, repair, renovate, or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used for hospital purposes.

(b) The bonds must be payable from and secured by a pledge of all or part of the revenue derived from the operation of the district's hospitals.

(c) The bonds may be additionally secured by a mortgage or deed of trust lien on all or part of district property.

(d) The bonds must be issued in the manner and in accordance with the procedures and requirements prescribed by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 65th Leg., R.S., Ch. 140, Sec. 9 (part).)

Sec. 1095.207. REFUNDING BONDS. (a) The board may, without an election, issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bond applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness. (Acts 65th Leg., R.S., Ch. 140, Secs. 7(a) (part), (b) (part), 9 (part).)

Sec. 1095.208. 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 65th Leg., R.S., Ch. 140, Sec. 21 (part).)

[Sections 1095.209-1095.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1095.251. IMPOSITION OF AD VALOREM TAX. (a) The board shall impose a tax on all property in the district subject to district taxation.

(b) The board shall impose the tax to pay:

(1) indebtedness issued or assumed by the district; and

(2) the maintenance and operating expenses of the district.

(c) The board may not impose a tax to pay the principal of or interest on revenue bonds issued under this chapter. (Acts 65th Leg., R.S., Ch. 140, Secs. 12(a) (part), 15(a) (part).)

Sec. 1095.252. 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 65th Leg., R.S., Ch. 140, Secs. 3(b) (part), 12(a) (part), (b) (part).)

Sec. 1095.253. ASSESSMENT AND COLLECTION BY COUNTY TAX ASSESSOR-COLLECTOR. (a) This section applies unless the board elects to have taxes assessed and collected under Section 1095.254.

(b) The tax assessor-collector of Shackelford County shall assess and collect taxes imposed by the district. (Acts 65th Leg., R.S., Ch. 140, Secs. 15(a) (part), (b) (part).)

Sec. 1095.254. ASSESSMENT AND COLLECTION BY DISTRICT TAX ASSESSOR-COLLECTOR. (a) The board may elect to have district taxes assessed and collected by a tax assessor-collector appointed by the board. An election under this subsection must be made by December 1 and governs the manner in which taxes are assessed and collected, until changed by a similar resolution.

(b) The district tax assessor-collector must reside in the district.

(c) The board shall set for the district tax assessor-collector:

(1) the term of employment; and

(2) compensation. (Acts 65th Leg., R.S., Ch. 140, Secs. 15(a) (part), (c) (part).) CHAPTER 1097. SOUTH WHEELER COUNTY HOSPITAL DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 1097.001. DEFINITIONS Sec. 1097.002. AUTHORITY FOR CREATION Sec. 1097.003. ESSENTIAL PUBLIC FUNCTION Sec. 1097.004. DISTRICT TERRITORY Sec. 1097.005. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION Sec. 1097.006. RESTRICTION ON STATE FINANCIAL

ASSISTANCE

[Sections 1097.007-1097.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 1097.051. BOARD ELECTION; TERM Sec. 1097.052. NOTICE OF ELECTION Sec. 1097.053. BALLOT PETITION Sec. 1097.054. QUALIFICATIONS FOR OFFICE Sec. 1097.055. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION OF OFFICE Sec. 1097.056. BOARD VACANCY Sec. 1097.057. OFFICERS Sec. 1097.058. VOTING REQUIREMENT Sec. 1097.059. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR Sec. 1097.060. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR Sec. 1097.061. EMPLOYEES Sec. 1097.062. RETIREMENT PROGRAM

[Sections 1097.063-1097.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 1097.101. DISTRICT RESPONSIBILITY Sec. 1097.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT Sec. 1097.103. MANAGEMENT, CONTROL, AND ADMINISTRATION Sec. 1097.104. HOSPITAL SYSTEM Sec. 1097.105. RULES Sec. 1097.106. PURCHASING AND ACCOUNTING PROCEDURES Sec. 1097.107. EMINENT DOMAIN Sec. 1097.108. GIFTS AND ENDOWMENTS Sec. 1097.109. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT Sec. 1097.110. PAYMENT FOR TREATMENT; PROCEDURES Sec. 1097.111. AUTHORITY TO SUE AND BE SUED

[Sections 1097.112-1097.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 1097.151. BUDGET Sec. 1097.152. FISCAL YEAR Sec. 1097.153. AUDIT Sec. 1097.154. FINANCIAL REPORT Sec. 1097.155. DEPOSITORY

[Sections 1097.156-1097.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 1097.201. GENERAL OBLIGATION BONDS Sec. 1097.202. TAX TO PAY GENERAL OBLIGATION BONDS Sec. 1097.203. GENERAL OBLIGATION BOND ELECTION Sec. 1097.204. EXECUTION OF GENERAL OBLIGATION BONDS Sec. 1097.205. REFUNDING BONDS Sec. 1097.206. BONDS EXEMPT FROM TAXATION

[Sections 1097.207-1097.250 reserved for expansion]

SUBCHAPTER F. TAXES Sec. 1097.251. IMPOSITION OF AD VALOREM TAX Sec. 1097.252. TAX RATE Sec. 1097.253. TAX ASSESSOR-COLLECTOR

CHAPTER 1097. SOUTH WHEELER COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1097.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the South Wheeler County Hospital District. (New.)

Sec. 1097.002. AUTHORITY FOR CREATION. The South Wheeler County Hospital District is created under the authority of Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties prescribed by this chapter. (Acts 58th Leg., R.S., Ch. 261, Sec. 1 (part).)

Sec. 1097.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 58th Leg., R.S., Ch. 261, Sec. 10 (part).)

Sec. 1097.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of County Commissioners Precincts 3 and 4 of Wheeler County, Texas, as those boundaries existed on January 1, 1963. (Acts 58th Leg., R.S., Ch. 261, Sec. 1 (part).)

Sec. 1097.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. The support and maintenance of the district may not become a charge against or obligation of this state. (Acts 58th Leg., R.S., Ch. 261, Sec. 20 (part).)

Sec. 1097.006. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 58th Leg., R.S., Ch. 261, Sec. 20 (part).)

[Sections 1097.007-1097.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1097.051. BOARD ELECTION; TERM. (a) The board consists of seven directors elected as follows:

(1) two directors elected from County Commissioners Precinct 3 by the voters of that precinct;

(2) two directors elected from County Commissioners Precinct 4 by the voters of that precinct; and

(3) three directors elected from the district at large by the voters of the entire district.

(b) Directors serve staggered two-year terms unless four-year terms are established under Section 285.081, Health and Safety Code. (Acts 58th Leg., R.S., Ch. 261, Sec. 4 (part).)

Sec. 1097.052. 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 Wheeler County. (Acts 58th Leg., R.S., Ch. 261, Sec. 4 (part).)

Sec. 1097.053. BALLOT PETITION. A person who wants to have the person's name printed on the ballot as a candidate for director must file with the board secretary a petition requesting that action. The petition must be:

(1) signed by not fewer than 10 registered voters; and

(2) filed at least 25 days before the date of the election. (Acts 58th Leg., R.S., Ch. 261, Sec. 4 (part).)

Sec. 1097.054. QUALIFICATIONS FOR OFFICE. (a) A person may not be elected or appointed as a director unless the person:

(1) is a resident of the district;

(2) owns property in the district subject to taxation; and

(3) is more than 18 years of age at the time of election or appointment.

(b) A person may not be elected to represent a particular county commissioners precinct unless the person is a resident of that precinct. (Acts 58th Leg., R.S., Ch. 281, Sec. 4 (part).)

Sec. 1097.055. BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF OFFICE. (a) Each director shall execute a good and sufficient bond for $1,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the director's duties.

(b) Each director's bond and constitutional oath or affirmation of office shall be deposited with the district's depository bank for safekeeping. (Acts 58th Leg., R.S., Ch. 261, Sec. 4 (part).)

Sec. 1097.056. 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 58th Leg., R.S., Ch. 261, Sec. 4 (part).)

Sec. 1097.057. OFFICERS. The board shall elect from among its members a president, a vice president, and a secretary. (Acts 58th Leg., R.S., Ch. 261, Sec. 4 (part).)

Sec. 1097.058. VOTING REQUIREMENT. A concurrence of four directors is sufficient in any matter relating to district business. (Acts 58th Leg., R.S., Ch. 261, Sec. 4 (part).)

Sec. 1097.059. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The board shall appoint a qualified person as district administrator.

(b) The board may appoint an assistant administrator.

(c) The district administrator and any assistant administrator serve at the will of the board and are entitled to the compensation determined by the board.

(d) On assuming the duties of district administrator, the administrator shall execute a bond payable to the district in an amount set by the board of not less than $10,000 that:

(1) is conditioned on the administrator performing the administrator's duties; and

(2) contains other conditions the board may require. (Acts 58th Leg., R.S., Ch. 261, Sec. 5 (part).)

Sec. 1097.060. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to the limitations prescribed by the board, the district administrator shall:

(1) supervise the work and activities of the district; and

(2) direct the affairs of the district. (Acts 58th Leg., R.S., Ch. 261, Sec. 5 (part).)

Sec. 1097.061. EMPLOYEES. The board may employ any doctors, technicians, nurses, and other employees as considered necessary for the efficient operation of the district or may provide that the district administrator has the authority to employ those persons. (Acts 58th Leg., R.S., Ch. 261, Sec. 5 (part).)

Sec. 1097.062. 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 58th Leg., R.S., Ch. 261, Sec. 5 (part).)

[Sections 1097.063-1097.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1097.101. DISTRICT RESPONSIBILITY. The district has full responsibility for:

(1) operating all hospital facilities for providing medical and hospital care of indigent persons; and

(2) providing medical and hospital care for the district's needy inhabitants. (Acts 58th Leg., R.S., Ch. 261, Secs. 2 (part), 19 (part).)

Sec. 1097.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision located within the district may not impose a tax or issue bonds or other obligations for hospital purposes for medical treatment of indigent persons. (Acts 58th Leg., R.S., Ch. 261, Sec. 19 (part).)

Sec. 1097.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the district's hospitals and hospital system. (Acts 58th Leg., R.S., Ch. 261, Sec. 5 (part).)

Sec. 1097.104. 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 58th Leg., R.S., Ch. 261, Sec. 2 (part).)

Sec. 1097.105. RULES. The board may adopt rules for the operation of the district and as required to administer this chapter. (Acts 58th Leg., R.S., Ch. 261, Secs. 5 (part), 11 (part).)

Sec. 1097.106. 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 58th Leg., R.S., Ch. 261, Sec. 11 (part).)

Sec. 1097.107. 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 power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code. (Acts 58th Leg., R.S., Ch. 261, Sec. 14.)

Sec. 1097.108. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district. (Acts 58th Leg., R.S., Ch. 261, Sec. 17.)

Sec. 1097.109. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT. (a) The board may contract with a county or municipality located outside the district for the care and treatment of a sick or injured person of that county or municipality.

(b) The board may contract with this state or a federal agency for the treatment of a sick or injured person for whom this state or the federal government is responsible. (Acts 58th Leg., R.S., Ch. 261, Sec. 5 (part).)

Sec. 1097.110. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a patient who resides in the district is admitted to a district facility, the district administrator shall have an inquiry made into the circumstances of:

(1) the patient; and

(2) the patient's relatives 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. (Acts 58th Leg., R.S., Ch. 261, Sec. 16.)

Sec. 1097.111. AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued. (Acts 58th Leg., R.S., Ch. 261, Sec. 5 (part).)

[Sections 1097.112-1097.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1097.151. BUDGET. (a) The district administrator shall prepare an annual budget for approval by the board. The budget must be for the fiscal year prescribed by Section 1097.152.

(b) Not later than August 31 of each year, the board shall publish notice of a public hearing on the proposed budget. The notice must be published in a newspaper of general circulation in the district at least 10 days before the date of the hearing. (Acts 58th Leg., R.S., Ch. 261, Secs. 6 (part), 18.)

Sec. 1097.152. FISCAL YEAR. The district operates on a fiscal year that begins on October 1 and ends on September 30. (Acts 58th Leg., R.S., Ch. 261, Sec. 6 (part).)

Sec. 1097.153. AUDIT. (a) The district shall have an audit made of the district's financial condition.

(b) The audit shall be open to inspection at all times at the district's principal office. (Acts 58th Leg., R.S., Ch. 261, Sec. 6 (part).)

Sec. 1097.154. FINANCIAL REPORT. As soon as practicable after the close of each fiscal year, the district administrator shall prepare for the board:

(1) a complete sworn statement of all district money; and

(2) a complete account of the disbursements of that money. (Acts 58th Leg., R.S., Ch. 261, Sec. 6 (part).)

Sec. 1097.155. 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 58th Leg., R.S., Ch. 261, Sec. 12.)

[Sections 1097.156-1097.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1097.201. GENERAL OBLIGATION BONDS. (a) The board may issue and sell general obligation bonds in the name and on the faith and credit of the district for any purpose related to the purchase, construction, acquisition, repair, or renovation of buildings or improvements, and equipping buildings or improvements for a hospital and the hospital system, as determined by the board.

(b) The board shall issue the bonds in compliance with the applicable provisions of Subtitles A and C, Title 9, Government Code. (Acts 58th Leg., R.S., Ch. 261, Sec. 9 (part).)

Sec. 1097.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued under Section 1097.201, 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 tax the district imposes may not in any year exceed 75 cents on each $100 valuation of taxable property in the district. (Acts 58th Leg., R.S., Ch. 261, Sec. 9 (part).)

Sec. 1097.203. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

(b) The board shall call the election. The election must be held in accordance with Chapter 1251, Government Code.

(c) The bond election order must specify:

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding election officers;

(4) the amount of the bonds to be authorized;

(5) the maximum maturity of the bonds; and

(6) the maximum interest rate of the bonds. (Acts 58th Leg., R.S., Ch. 261, Sec. 9 (part).)

Sec. 1097.204. 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. (Acts 58th Leg., R.S., Ch. 261, Sec. 9 (part).)

Sec. 1097.205. REFUNDING BONDS. (a) The board may, without an election, issue refunding bonds to refund any bond or other refundable indebtedness issued or assumed by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bond applied to the payment of the outstanding bonds or other refundable indebtedness; or

(2) exchanged wholly or partly for not less than a similar principal amount of the outstanding bonds or other refundable indebtedness. (Acts 58th Leg., R.S., Ch. 261, Sec. 9 (part).)

Sec. 1097.206. BONDS EXEMPT FROM TAXATION. The following are exempt from taxation by this state or a political subdivision of this state:

(1) bonds issued by the district;

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

(3) profits made in the sale of the bonds. (Acts 58th Leg., R.S., Ch. 261, Sec. 10 (part).)

[Sections 1097.207-1097.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1097.251. IMPOSITION OF AD VALOREM TAX. (a) The district may impose a tax on all property in the district subject to district taxation.

(b) The tax may be used to meet the requirements of:

(1) district bonds;

(2) indebtedness assumed by the district; and

(3) district maintenance and operating expenses. (Acts 58th Leg., R.S., Ch. 261, Sec. 3 (part).)

Sec. 1097.252. TAX RATE. The district may impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district. (Acts 58th Leg., R.S., Ch. 261, Sec. 3 (part).)

Sec. 1097.253. TAX ASSESSOR-COLLECTOR. The tax assessor-collector of Wheeler County shall assess and collect taxes imposed by the district. (Acts 58th Leg., R.S., Ch. 261, Sec. 15 (part).)

SECTION 1.02. Subtitle C, Title 4, Special District Local Laws Code, is amended by adding Chapter 3854 to read as follows: CHAPTER 3854. CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 1 SUBCHAPTER A. GENERAL PROVISIONS Sec. 3854.001. DEFINITIONS Sec. 3854.002. NATURE OF DISTRICT Sec. 3854.003. PURPOSE; DECLARATION OF INTENT Sec. 3854.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 3854.005. EFFECT OF DISTRICT CREATION ON

MUNICIPAL POWERS Sec. 3854.006. TORT CLAIMS Sec. 3854.007. LIBERAL CONSTRUCTION OF CHAPTER

[Sections 3854.008-3854.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATION Sec. 3854.051. DISTRICT TERRITORY Sec. 3854.052. ANNEXATION OR EXCLUSION OF TERRITORY BY

DISTRICT; MUNICIPAL CONSENT Sec. 3854.053. ANNEXATION OF DISTRICT TERRITORY BY

MUNICIPALITY

[Sections 3854.054-3854.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS Sec. 3854.101. GOVERNING BODY; TERMS Sec. 3854.102. APPLICABLE LAW Sec. 3854.103. DIRECTOR DISTRICTS Sec. 3854.104. APPOINTMENT OF DIRECTORS Sec. 3854.105. QUALIFICATIONS Sec. 3854.106. VOTING; ACTIONS Sec. 3854.107. VACANCY

[Sections 3854.108-3854.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES Sec. 3854.151. GENERAL POWERS Sec. 3854.152. ELECTIONS Sec. 3854.153. AUTHORITY TO ACQUIRE INTEREST IN LAND Sec. 3854.154. EXPENSES AND LIABILITY FOR CERTAIN

ACTIONS AFFECTING PROPERTY Sec. 3854.155. SECURITY SERVICES Sec. 3854.156. COMPETITIVE BIDDING Sec. 3854.157. DISTRICT NAME CHANGE Sec. 3854.158. OWNING OR OPERATING AIRPORT PROHIBITED

[Sections 3854.159-3854.200 reserved for expansion]

SUBCHAPTER E. FINANCIAL PROVISIONS Sec. 3854.201. DISBURSEMENTS OR TRANSFERS OF MONEY Sec. 3854.202. TAX AND BOND ELECTIONS Sec. 3854.203. MAINTENANCE AND OPERATION TAX Sec. 3854.204. ASSESSMENTS; LIENS FOR ASSESSMENTS Sec. 3854.205. FINANCING IMPROVEMENT PROJECTS OR

SERVICES Sec. 3854.206. IMPACT FEES Sec. 3854.207. CERTAIN RESIDENTIAL PROPERTY EXEMPT Sec. 3854.208. BONDS AND OTHER OBLIGATIONS Sec. 3854.209. APPROVAL OF BONDS

[Sections 3854.210-3854.250 reserved for expansion]

SUBCHAPTER F. DISSOLUTION Sec. 3854.251. DISSOLUTION OF DISTRICT

CHAPTER 3854. CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3854.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Chambers County Improvement District No. 1.

(4) "Extraterritorial jurisdiction" has the meaning assigned by Section 42.021, Local Government Code. (Acts 73rd Leg., R.S., Ch. 566, Sec. 2; New.)

Sec. 3854.002. NATURE OF DISTRICT. A special district known as the "Chambers County Improvement District No. 1" is a political subdivision of this state. (Acts 73rd Leg., R.S., Ch. 566, Sec. 1(a).)

Sec. 3854.003. PURPOSE; DECLARATION OF INTENT. (a) The creation of the district is essential to accomplish the purposes of Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution, and to accomplish the other purposes of this chapter. The legislature intends that by creating the district the legislature has established a program to accomplish the public purposes set out in Section 52-a, Article III, Texas Constitution.

(b) The creation of the district is necessary to:

(1) diversify the economy of the state;

(2) promote, develop, expand, encourage, and maintain employment, commerce, economic development, and the public welfare;

(3) promote the control, treatment, storage, and distribution of water;

(4) protect, preserve, and restore the sanitary conditions of water;

(5) promote the transportation of agricultural, industrial, and commercial products;

(6) promote the health, safety, and general welfare of:

(A) property owners, residents, employers, and employees in the district; and

(B) the public;

(7) promote the improvement of rivers, bays, creeks, streams, and canals to permit or to aid navigation and commerce; and

(8) promote the construction, maintenance, and operation of streets, roads, highways, turnpikes, and railroads in the greater Cedar Crossing area of Chambers County. (Acts 73rd Leg., R.S., Ch. 566, Secs. 1(c), (d), (g).)

Sec. 3854.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the district will benefit from the improvements and services to be provided by the district under powers conferred by Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution, and other powers granted under this chapter.

(c) The district will provide needed funding in the greater Cedar Crossing area to preserve, maintain, and enhance the economic health and vitality of the area as a community and a business and industrial center.

(d) The district will not act as the agent or instrumentality of any private interest even though the district will benefit many private interests, as well as the public. (Acts 73rd Leg., R.S., Ch. 566, Secs. 1(e), (f), (h).)

Sec. 3854.005. EFFECT OF DISTRICT CREATION ON MUNICIPAL POWERS. (a) The creation of the district does not:

(1) affect the power of a municipality in whose extraterritorial jurisdiction the district or a part of the district lies to designate all or part of the district as an industrial district;

(2) limit a power under Chapter 42, Local Government Code, of a municipality described by Subdivision (1); or

(3) affect the power of a municipality to provide municipal services to any area in the municipality or the municipality's extraterritorial jurisdiction that is in the district.

(b) A municipality described by Subsection (a)(3) has the same power to extend or provide municipal services after the creation of the district as the municipality had before the district's creation. (Acts 73rd Leg., R.S., Ch. 566, Sec. 9 (part).)

Sec. 3854.006. TORT CLAIMS. (a) The district is a governmental unit for the purposes of Chapter 101, Civil Practice and Remedies Code.

(b) The operations of the district are essential governmental functions for all purposes and not proprietary functions. (Acts 73rd Leg., R.S., Ch. 566, Sec. 7.)

Sec. 3854.007. LIBERAL CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed in conformance with the legislative findings and purposes stated in this chapter. (Acts 73rd Leg., R.S., Ch. 566, Sec. 1(i).)

[Sections 3854.008-3854.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATION

Sec. 3854.051. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 3, Chapter 566, Acts of the 73rd Legislature, Regular Session, 1993, as that territory may have been modified under:

(1) Subchapter J, Chapter 49, Water Code; or

(2) other law.

(b) The boundaries and field notes of the district form a closure. A mistake made in the field notes or in copying the field notes in the legislative process does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond or to issue or enter into another type of obligation for a purpose for which the district is created;

(3) the district's right to levy or collect an assessment or tax; or

(4) the legality or operation of the district or the district's governing body. (Acts 73rd Leg., R.S., Ch. 566, Sec. 4; New.)

Sec. 3854.052. ANNEXATION OR EXCLUSION OF TERRITORY BY DISTRICT; MUNICIPAL CONSENT. (a) The district may annex land to and exclude land from the district as provided by Subchapter J, Chapter 49, Water Code.

(b) The district may not annex land in a municipality's extraterritorial jurisdiction unless the municipality consents to the annexation. (Acts 73rd Leg., R.S., Ch. 566, Sec. 8.)

Sec. 3854.053. ANNEXATION OF DISTRICT TERRITORY BY MUNICIPALITY. (a) Notwithstanding Chapter 43, Local Government Code, a municipality in whose extraterritorial jurisdiction the district is located may annex all or part of the district. Annexation does not result in a total or partial dissolution of the district or an assumption by the annexing municipality of any of the district's obligations or indebtedness.

(b) A municipal annexation of all or part of the district has no effect on the validity of the district, and the district shall continue to exist and exercise the powers granted by this chapter. (Acts 73rd Leg., R.S., Ch. 566, Sec. 9 (part).)

[Sections 3854.054-3854.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec. 3854.101. GOVERNING BODY; TERMS. (a) The district is governed by a board of seven directors.

(b) Directors serve staggered four-year terms. (Acts 73rd Leg., R.S., Ch. 566, Secs. 5(a), (b) (part).)

Sec. 3854.102. APPLICABLE LAW. The board is governed by Subchapter D, Chapter 375, Local Government Code, to the extent that the subchapter does not conflict with this chapter. (Acts 73rd Leg., R.S., Ch. 566, Sec. 5(f) (part).)

Sec. 3854.103. DIRECTOR DISTRICTS. (a) Each position on the board represents a separate area of the district known as a director district.

(b) All land in the district must be in a director district.

(c) Director districts may not overlap.

(d) The board may establish new boundaries for a director district if it is necessary to provide a reasonable balance in the board representation between acreage, value, improvements, and interests of the property owners in the district. (Acts 73rd Leg., R.S., Ch. 566, Sec. 5(g) (part).)

Sec. 3854.104. APPOINTMENT OF DIRECTORS. The Commissioners Court of Chambers County shall appoint a director to represent a director district in the manner provided by Section 375.064, Local Government Code, from a list of candidates recommended by the board in the manner provided by that section. (Acts 73rd Leg., R.S., Ch. 566, Secs. 5(b) (part), (e) (part).)

Sec. 3854.105. QUALIFICATIONS. (a) Each director shall qualify for office as required by Subchapter D, Chapter 375, Local Government Code.

(b) Each director shall meet the qualifications provided by Section 375.063, Local Government Code, for the area in the director district that the director represents.

(c) A person may not be appointed as a director or continue to serve as a director unless the person satisfies the requirements provided by Section 375.063, Local Government Code, for the area in the director district that the person is appointed to represent. (Acts 73rd Leg., R.S., Ch. 566, Sec. 5(e) (part).)

Sec. 3854.106. VOTING; ACTIONS. (a) Directors may vote on any matter authorized by Subchapter D, Chapter 375, Local Government Code.

(b) The board may take action only if the action is approved in the manner prescribed by Subchapter D, Chapter 375, Local Government Code. (Acts 73rd Leg., R.S., Ch. 566, Sec. 5(f) (part).)

Sec. 3854.107. VACANCY. The remaining directors shall fill a vacancy in the office of director for the remainder of the unexpired term. (Acts 73rd Leg., R.S., Ch. 566, Sec. 5(b) (part).)

[Sections 3854.108-3854.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES

Sec. 3854.151. GENERAL POWERS. The district has:

(1) all the rights, powers, and privileges conferred by the general law of this state applicable to districts created under:

(A) Chapter 375, Local Government Code;

(B) Chapter 623, Acts of the 67th Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas Civil Statutes);

(C) Chapter 441, Transportation Code; and

(D) Chapter 54, Water Code;

(2) the rights, powers, and privileges granted to districts by:

(A) Subchapters E and M, Chapter 60, Water Code; and

(B) Section 61.116, Water Code; and

(3) all the powers granted to municipal management districts under Sections 375.092 and 375.111, Local Government Code, to provide any services or for any project the district is authorized to acquire, construct, or improve under this chapter. (Acts 73rd Leg., R.S., Ch. 566, Sec. 6(a) (part).)

Sec. 3854.152. ELECTIONS. The district shall hold elections as provided by Subchapter L, Chapter 375, Local Government Code. (Acts 73rd Leg., R.S., Ch. 566, Sec. 11 (part).)

Sec. 3854.153. AUTHORITY TO ACQUIRE INTEREST IN LAND. The district may acquire any interest in land in accordance with Chapter 54, Water Code. (Acts 73rd Leg., R.S., Ch. 566, Sec. 6(a) (part).)

Sec. 3854.154. EXPENSES AND LIABILITY FOR CERTAIN ACTIONS AFFECTING PROPERTY. If the district, in exercising a power conferred by this chapter, requires a relocation, adjustment, raising, lowering, rerouting, or changing the grade of or altering the construction of any street, alley, highway, overpass, underpass, road, railroad track, bridge, facility, or property, electric line, conduit, facility, or property, telephone or telegraph line, conduit, facility, or property, gas transmission or distribution pipe, pipeline, main, facility, or property, water, sanitary sewer or storm sewer pipe, pipeline, main, facility, or property, cable television line, cable, conduit, facility, or property, or other pipeline or facility or property relating to the pipeline, that relocation, adjustment, raising, lowering, rerouting, changing of grade, or altering of construction must be accomplished at the sole cost and expense of the district, and damages that are suffered by owners of the property or facilities shall be borne by the district. (Acts 73rd Leg., R.S., Ch. 566, Sec. 6(c).)

Sec. 3854.155. SECURITY SERVICES. To protect the public interest, the district may contract with a private entity or a municipality, county, or other political subdivision for services for the security and protection of residents and property in the district. (Acts 73rd Leg., R.S., Ch. 566, Sec. 15.)

Sec. 3854.156. COMPETITIVE BIDDING. The district shall contract for services, improvements, or the purchase of materials, machinery, equipment, supplies, or other property of more than $25,000 as provided by Section 375.221, Local Government Code. (Acts 73rd Leg., R.S., Ch. 566, Sec. 16.)

Sec. 3854.157. DISTRICT NAME CHANGE. The board by resolution may change the name of the district. The name must describe the district's location and principal powers. (Acts 73rd Leg., R.S., Ch. 566, Sec. 1(b).)

Sec. 3854.158. OWNING OR OPERATING AIRPORT PROHIBITED. The district may not own or operate an airport. (Acts 73rd Leg., R.S., Ch. 566, Sec. 6(d).)

[Sections 3854.159-3854.200 reserved for expansion]

SUBCHAPTER E. FINANCIAL PROVISIONS

Sec. 3854.201. DISBURSEMENTS OR TRANSFERS OF MONEY. The board by resolution shall establish the number of director signatures or the procedure required for all disbursements or transfers of the district's money. (Acts 73rd Leg., R.S., Ch. 566, Sec. 6(e).)

Sec. 3854.202. TAX AND BOND ELECTIONS. (a) The district shall hold an election in the manner provided by Subchapter L, Chapter 375, Local Government Code, to obtain voter approval for the district to impose a maintenance tax or issue bonds payable from ad valorem taxes or assessments.

(b) The board may submit multiple purposes in a single proposition at an election. (Acts 73rd Leg., R.S., Ch. 566, Sec. 11 (part).)

Sec. 3854.203. MAINTENANCE AND OPERATION TAX. (a) If authorized at an election held in accordance with Section 3854.202, the district may impose an annual ad valorem tax on taxable property in the district for:

(1) the maintenance, operation, and upkeep of the district and the improvements constructed or acquired by the district; and

(2) the provision of services to industrial and commercial businesses and residents and property owners.

(b) The board shall determine the tax rate. (Acts 73rd Leg., R.S., Ch. 566, Sec. 13.)

Sec. 3854.204. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The board may levy and collect an assessment under Subchapter F, Chapter 375, Local Government Code, for any authorized purpose only if the assessment does not conflict with this chapter.

(b) An assessment or reassessment by the district, penalties and interest on an assessment or reassessment, an expense of collection, and reasonable attorney's fees incurred by the district:

(1) are a first and prior lien against the property assessed;

(2) are superior to any other lien or claim other than a lien or claim for county, school district, or municipal ad valorem taxes; and

(3) are the personal liability of and a charge against the owners of the property even if the owners are not named in the assessment proceedings.

(c) The lien is effective from the date of the board's resolution levying the assessment until the date the assessment is paid. The board may enforce the lien in the same manner that the board may enforce an ad valorem tax lien against real property. (Acts 73rd Leg., R.S., Ch. 566, Secs. 10(a) (part), (c).)

Sec. 3854.205. FINANCING IMPROVEMENT PROJECTS OR SERVICES. (a) The district may finance the cost of any authorized improvement project or service in the manner provided by any law that applies to the district.

(b) A petition under Section 375.114, Local Government Code, is not required for the board to levy a tax, assessment, or impact fee to finance improvement projects and services under this chapter. (Acts 73rd Leg., R.S., Ch. 566, Sec. 6(b).)

Sec. 3854.206. IMPACT FEES. Except as provided by Section 3854.207, the district may impose an impact fee for an authorized purpose as provided by Subchapter G, Chapter 375, Local Government Code. (Acts 73rd Leg., R.S., Ch. 566, Sec. 12 (part).)

Sec. 3854.207. CERTAIN RESIDENTIAL PROPERTY EXEMPT. The district may not impose an impact fee or assessment on a single-family residential property or a residential duplex, triplex, fourplex, or condominium. (Acts 73rd Leg., R.S., Ch. 566, Sec. 12 (part).)

Sec. 3854.208. BONDS AND OTHER OBLIGATIONS. (a) The district may issue bonds or other obligations secured by and payable wholly or partly from ad valorem taxes, assessments, impact fees, revenue, grants, or other money of the district, or any combination of those sources of money, to pay for any authorized purpose of the district.

(b) In exercising the district's borrowing power, the district may issue a bond or other obligation in the form of a bond, note, certificate of participation or other instrument evidencing a proportionate interest in payments to be made by the district, or other type of obligation. (Acts 73rd Leg., R.S., Ch. 566, Secs. 6(a) (part), 10(a) (part).)

Sec. 3854.209. APPROVAL OF BONDS. (a) No approval is required for bonds issued by the district other than:

(1) the approval of the attorney general as provided by Section 375.205, Local Government Code; and

(2) the approval of the Texas Commission on Environmental Quality if the bonds are issued for a purpose that Section 375.208, Local Government Code, requires to be approved by the commission.

(b) Except as provided by Subsection (c), the district may not issue bonds payable from an ad valorem tax imposed over the entire district in an amount more than the greater of:

(1) $50 million; or

(2) 10 percent of the assessed value of the taxable property in the entire district as shown on the most recent certified tax rolls of the county central appraisal district.

(c) If the Texas Commission on Environmental Quality approves the feasibility of district bonds described by Subsection (b), the limit on the amount of bonds to be issued is the amount set by the commission.

(d) Subsection (b) does not limit the district's authority to issue bonds that are not payable from ad valorem taxes imposed over the entire district. (Acts 73rd Leg., R.S., Ch. 566, Secs. 10(b), (d).)

[Sections 3854.210-3854.250 reserved for expansion]

SUBCHAPTER F. DISSOLUTION

Sec. 3854.251. DISSOLUTION OF DISTRICT. The district may be dissolved as provided by Section 375.261 or 375.262, Local Government Code. If the district is dissolved, the district shall remain in existence solely for the purpose of discharging its bonds or other obligations according to their terms. (Acts 73rd Leg., R.S., Ch. 566, Sec. 14.)

SECTION 1.03. Subtitle A, Title 6, Special District Local Laws Code, is amended by adding Chapter 6604 to read as follows: CHAPTER 6604. FORT BEND COUNTY DRAINAGE DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 6604.001. DEFINITIONS Sec. 6604.002. NATURE OF DISTRICT Sec. 6604.003. DISTRICT TERRITORY

[Sections 6604.004-6604.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 6604.051. GOVERNING BODY Sec. 6604.052. DUTIES OF COUNTY OFFICIALS IN

OFFICERS, EMPLOYEES, AND AGENTS

[Sections 6604.053-6604.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 6604.101. GENERAL POWERS Sec. 6604.102. ACQUISITION OF PROPERTY; EMINENT DOMAIN Sec. 6604.103. DISPOSAL OR LEASE OF DISTRICT PROPERTY Sec. 6604.104. GENERAL RECLAMATION AND DRAINAGE POWERS Sec. 6604.105. ARRANGEMENTS WITH UNITED STATES Sec. 6604.106. CONTRACTS AND COOPERATION WITH STATE

AND POLITICAL SUBDIVISIONS Sec. 6604.107. CONSTRUCTION ON PUBLIC LAND

[Sections 6604.108-6604.150 reserved for expansion]

SUBCHAPTER D. TAXES Sec. 6604.151. AD VALOREM TAX FOR MAINTENANCE AND

OPERATIONS Sec. 6604.152. TAX ASSESSOR-COLLECTOR

[Sections 6604.153-6604.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 6604.201. AUTHORITY TO ISSUE BONDS Sec. 6604.202. LIMITATION ON DEBT Sec. 6604.203. FORM OF BONDS Sec. 6604.204. MATURITY Sec. 6604.205. ELECTION FOR BONDS PAYABLE FROM TAXES Sec. 6604.206. ISSUANCE OF CERTAIN TIME WARRANTS

PROHIBITED

CHAPTER 6604. FORT BEND COUNTY DRAINAGE DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 6604.001. DEFINITIONS. In this chapter:

(1) "Commissioners court" means the Commissioners Court of Fort Bend County.

(2) "District" means the Fort Bend County Drainage District. (Acts 51st Leg., R.S., Ch. 303, Sec. 1 (part); New.)

Sec. 6604.002. NATURE OF DISTRICT. (a) The district is created under Section 59, Article XVI, Texas Constitution, for the reclamation and drainage of the district's overflowed lands and other lands needing drainage.

(b) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 51st Leg., R.S., Ch. 303, Sec. 1 (part).)

Sec. 6604.003. DISTRICT TERRITORY. Unless the district territory has been modified under Subchapter J, Chapter 49, Water Code, or other law, the boundaries of the district are coextensive with the boundaries of Fort Bend County. (Acts 51st Leg., R.S., Ch. 303, Sec. 1 (part); New.)

[Sections 6604.004-6604.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 6604.051. GOVERNING BODY. (a) The commissioners court is the governing body of the district and the agency through which the management and control of the district is administered.

(b) The commissioners court may perform any act necessary to carry out the purposes of this chapter. (Acts 51st Leg., R.S., Ch. 303, Sec. 2 (part).)

Sec. 6604.052. DUTIES OF COUNTY OFFICIALS IN CONNECTION WITH DISTRICT; DISTRICT OFFICERS, EMPLOYEES, AND AGENTS. (a) The county judge, county commissioners, county tax assessor-collector, county treasurer, and county depository of Fort Bend County shall perform all duties in connection with the district that are required by law in connection with official matters for Fort Bend County.

(b) The county auditor of Fort Bend County is the auditor for the district.

(c) The commissioners court may employ a general manager for the district and any other agents, attorneys, engineers, and employees considered necessary in connection with the purposes of this chapter. All compensation for a person employed under this subsection may be payable from funds created under this chapter for the maintenance and operation of the district.

(d) The commissioners court shall require the county tax assessor-collector, the county treasurer, and any other officers and employees, as designated by the commissioners court, to post bonds that are:

(1) payable to the district in amounts determined by the commissioners court; and

(2) conditioned on:

(A) the faithful performance of their duties; and

(B) paying over and accounting for all money and other things of value that belong to the district and come into their possession.

(e) A bond required under Subsection (d) must be executed by a surety company authorized to do business in this state and is subject to the approval of the commissioners court. The district shall pay the premiums on the bond. (Acts 51st Leg., R.S., Ch. 303, Sec. 3(B).)

[Sections 6604.053-6604.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 6604.101. GENERAL POWERS. (a) The district has the powers of government and the authority to exercise the rights, privileges, and functions provided by this chapter.

(b) The district may perform any act necessary or proper to carry out a district purpose. (Acts 51st Leg., R.S., Ch. 303, Secs. 1 (part), 3(A) (part).)

Sec. 6604.102. ACQUISITION OF PROPERTY; EMINENT DOMAIN. (a) The district:

(1) by gift, devise, purchase, lease, or exercise of the power of eminent domain, may acquire inside the district an easement, right-of-way, or other property needed to carry on the work of the district; and

(2) by exercise of the power of eminent domain or otherwise, may acquire outside the district an easement or right-of-way.

(b) Before the district acquires by exercise of the power of eminent domain an easement or right-of-way outside the district, the acquisition must be unanimously approved by the entire commissioners court of the county in which the easement or right-of-way is located.

(c) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code. (Acts 51st Leg., R.S., Ch. 303, Sec. 3(A) (part).)

Sec. 6604.103. DISPOSAL OR LEASE OF DISTRICT PROPERTY. (a) The district may dispose of property or a property right that is not needed for a district purpose.

(b) The district may lease property or a property right for a purpose that does not interfere with the district's use of the property. (Acts 51st Leg., R.S., Ch. 303, Sec. 3(A) (part).)

Sec. 6604.104. GENERAL RECLAMATION AND DRAINAGE POWERS. The district may:

(1) devise plans and construct works to reclaim land in the district;

(2) provide drainage facilities for reclamation and drainage of the overflowed land and other land in the district that needs drainage;

(3) acquire or construct outside the district properties or facilities that in the judgment of the commissioners court are necessary to facilitate drainage and reclamation of land in the district;

(4) remove natural or artificial obstructions from streams or watercourses; and

(5) clean, straighten, widen, or maintain streams, watercourses, or drainage ditches. (Acts 51st Leg., R.S., Ch. 303, Sec. 3(A) (part).)

Sec. 6604.105. ARRANGEMENTS WITH UNITED STATES. (a) The district may cooperate with, contract with, or receive a grant, loan, or advancement from the United States to exercise a district power or to further a district purpose.

(b) The district may contribute to the United States in connection with any project that is undertaken by the United States and affects or relates to a district purpose. (Acts 51st Leg., R.S., Ch. 303, Sec. 3(A) (part).)

Sec. 6604.106. CONTRACTS AND COOPERATION WITH STATE AND POLITICAL SUBDIVISIONS. The district may cooperate and contract with this state or a political subdivision of this state to carry out a district purpose. (Acts 51st Leg., R.S., Ch. 303, Sec. 3(A) (part).)

Sec. 6604.107. CONSTRUCTION ON PUBLIC LAND. (a) The district may construct works, ditches, canals, or other improvements over, across, or along:

(1) a public stream, road, or highway; or

(2) land belonging to this state.

(b) A plan for an improvement under Subsection (a) on a state highway is subject to the approval of the Texas Department of Transportation.

(c) A plan for an improvement under Subsection (a) on Texas Department of Criminal Justice land is subject to the approval of the Texas Board of Criminal Justice. (Acts 51st Leg., R.S., Ch. 303, Sec. 3(A) (part).)

[Sections 6604.108-6604.150 reserved for expansion]

SUBCHAPTER D. TAXES

Sec. 6604.151. AD VALOREM TAX FOR MAINTENANCE AND OPERATIONS. (a) The commissioners court may impose a tax at a rate not to exceed 25 cents on each $100 valuation of taxable property in the district to pay the cost of maintaining district property and operating the district.

(b) The commissioners court may not impose the tax until the tax is authorized at an election:

(1) called for that purpose by the commissioners court in the manner provided by Section 6604.205; and

(2) at which a majority of the voters voting at the election vote in favor of the imposition of the tax. (Acts 51st Leg., R.S., Ch. 303, Sec. 5 (part).)

Sec. 6604.152. TAX ASSESSOR-COLLECTOR. The county tax assessor-collector of Fort Bend County is the tax assessor-collector for the district. (Acts 51st Leg., R.S., Ch. 303, Sec. 5 (part).)

[Sections 6604.153-6604.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 6604.201. AUTHORITY TO ISSUE BONDS. The commissioners court may:

(1) issue district bonds to finance carrying out any power or purpose granted by this chapter to the district; and

(2) provide for the payment of the interest on the bonds as it accrues and for a sinking fund for the redemption of the bonds as they mature by imposing a tax on all taxable property in the district, as shown by the most recent certified appraisal roll of the district, at a rate sufficient for that purpose. (Acts 51st Leg., R.S., Ch. 303, Sec. 4(A) (part).)

Sec. 6604.202. LIMITATION ON DEBT. The total principal amount of bonds issued under Section 6604.201 that the district may have outstanding at any time may not exceed five percent of the assessed value of all taxable property in the district as shown by the most recent appraisal roll of the district. (Acts 51st Leg., R.S., Ch. 303, Sec. 4(A) (part).)

Sec. 6604.203. FORM OF BONDS. (a) A district bond issued under this chapter must be:

(1) issued in the name of the district;

(2) signed by the county judge of Fort Bend County; and

(3) attested by the county clerk of Fort Bend County.

(b) If the bond is issued with one or more interest coupons, the coupons must be signed by the county judge and the county clerk of Fort Bend County. (Acts 51st Leg., R.S., Ch. 303, Sec. 4(B) (part).)

Sec. 6604.204. MATURITY. District bonds issued under Section 6604.201 must mature not later than 30 years after their date of issuance. (Acts 51st Leg., R.S., Ch. 303, Sec. 4(A) (part).)

Sec. 6604.205. ELECTION FOR BONDS PAYABLE FROM TAXES. (a) The commissioners court may not issue district bonds under Section 6604.201 until the issuance of the bonds and the imposition of taxes to pay the principal of and interest on the bonds are authorized by a majority of the voters voting at an election called for that purpose.

(b) The proposition for the issuance of district bonds may be submitted at any time the commissioners court considers proper.

(c) Chapter 1251, Government Code, applies to a district bond election except to the extent of any conflict with this chapter.

(d) If a majority of the voters voting at a district bond election vote in favor of the issuance of bonds and the imposition of taxes, the commissioners court may:

(1) issue, sell, and deliver the bonds;

(2) receive, use, and apply the proceeds for district purposes; and

(3) impose taxes on all property subject to taxation in the district. (Acts 51st Leg., R.S., Ch. 303, Sec. 4(A) (part).)

Sec. 6604.206. ISSUANCE OF CERTAIN TIME WARRANTS PROHIBITED. The district may not issue time warrants payable from taxes. (Acts 51st Leg., R.S., Ch. 303, Sec. 4(A) (part).)

SECTION 1.04. Subtitle F, Title 6, Special District Local Laws Code, is amended by adding Chapters 8215, 8219, 8220, 8229, 8230, 8243, 8246, 8259, 8260, 8262, 8271, 8272, 8273, 8274, 8275, 8276, 8277, 8278, 8279, 8280, 8281, 8282, 8283, 8284, 8285, 8286, 8287, 8288, 8289, 8290, 8291, 8292, 8293, 8302, and 8303 to read as follows: CHAPTER 8215. JACKRABBIT ROAD PUBLIC UTILITY DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8215.001. DEFINITIONS Sec. 8215.002. NATURE OF DISTRICT Sec. 8215.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8215.004. DISTRICT TERRITORY

[Sections 8215.005-8215.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8215.051. COMPOSITION OF BOARD

[Sections 8215.052-8215.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8215.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8215. JACKRABBIT ROAD PUBLIC UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8215.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Jackrabbit Road Public Utility District. (Acts 62nd Leg., R.S., Ch. 675, Sec. 1 (part); New.)

Sec. 8215.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Harris County created under Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 675, Sec. 1 (part).)

Sec. 8215.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 675, Secs. 1 (part), 3.)

Sec. 8215.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 675, Acts of the 62nd Legislature, Regular Session, 1971, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bonds for a purpose for which the district is created or to pay the principal of and interest on the bonds;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 62nd Leg., R.S., Ch. 675, Sec. 2; New.)

[Sections 8215.005-8215.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8215.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 62nd Leg., R.S., Ch. 675, Sec. 6 (part).)

[Sections 8215.052-8215.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8215.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred by general law applicable to a municipal utility district, including Chapters 49 and 54, Water Code. (Acts 62nd Leg., R.S., Ch. 675, Sec. 5 (part); New.) CHAPTER 8219. KLEIN PUBLIC UTILITY DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8219.001. DEFINITIONS Sec. 8219.002. NATURE OF DISTRICT Sec. 8219.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8219.004. DISTRICT TERRITORY

[Sections 8219.005-8219.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8219.051. COMPOSITION OF BOARD

[Sections 8219.052-8219.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8219.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8219. KLEIN PUBLIC UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8219.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Klein Public Utility District. (Acts 62nd Leg., R.S., Ch. 411, Sec. 1 (part); New.)

Sec. 8219.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Harris County created under Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 411, Sec. 1 (part).)

Sec. 8219.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 411, Secs. 1 (part), 3.)

Sec. 8219.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 411, Acts of the 62nd Legislature, Regular Session, 1971, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 62nd Leg., R.S., Ch. 411, Sec. 2; New.)

[Sections 8219.005-8219.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8219.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 62nd Leg., R.S., Ch. 411, Sec. 6 (part).)

[Sections 8219.052-8219.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8219.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred by general law applicable to a municipal utility district, including Chapters 49 and 54, Water Code. (Acts 62nd Leg., R.S., Ch. 411, Sec. 5 (part); New.) CHAPTER 8220. LAKE FOREST UTILITY DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8220.001. DEFINITIONS Sec. 8220.002. NATURE OF DISTRICT Sec. 8220.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8220.004. DISTRICT TERRITORY

[Sections 8220.005-8220.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8220.051. COMPOSITION OF BOARD

[Sections 8220.052-8220.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8220.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8220. LAKE FOREST UTILITY

DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8220.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Lake Forest Utility District. (Acts 62nd Leg., R.S., Ch. 579, Sec. 1 (part); New.)

Sec. 8220.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Harris County created under Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 579, Sec. 1 (part).)

Sec. 8220.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 579, Secs. 1 (part), 3.)

Sec. 8220.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 579, Acts of the 62nd Legislature, Regular Session, 1971, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 62nd Leg., R.S., Ch. 579, Sec. 2; New.)

[Sections 8220.005-8220.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8220.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 62nd Leg., R.S., Ch. 579, Sec. 6 (part).)

[Sections 8220.052-8220.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8220.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred by general law applicable to a municipal utility district, including Chapters 49 and 54, Water Code. (Acts 62nd Leg., R.S., Ch. 579, Sec. 5 (part); New.) CHAPTER 8229. LUCE BAYOU PUBLIC UTILITY DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8229.001. DEFINITIONS Sec. 8229.002. NATURE OF DISTRICT Sec. 8229.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8229.004. DISTRICT TERRITORY

[Sections 8229.005-8229.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8229.051. COMPOSITION OF BOARD

[Sections 8229.052-8229.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8229.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8229. LUCE BAYOU PUBLIC UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8229.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Luce Bayou Public Utility District. (Acts 62nd Leg., R.S., Ch. 554, Sec. 1 (part); New.)

Sec. 8229.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Harris County created under Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 554, Sec. 1 (part).)

Sec. 8229.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 554, Secs. 1 (part), 3.)

Sec. 8229.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 554, Acts of the 62nd Legislature, Regular Session, 1971, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 62nd Leg., R.S., Ch. 554, Sec. 2; New.)

[Sections 8229.005-8229.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8229.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 62nd Leg., R.S., Ch. 554, Sec. 6 (part).)

[Sections 8229.052-8229.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8229.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred by general law applicable to a municipal utility district, including Chapters 49 and 54, Water Code. (Acts 62nd Leg., R.S., Ch. 554, Sec. 5 (part); New.) CHAPTER 8230. LUMBERTON MUNICIPAL UTILITY DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8230.001. DEFINITIONS Sec. 8230.002. NATURE OF DISTRICT Sec. 8230.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8230.004. DISTRICT TERRITORY Sec. 8230.005. CERTAIN LAWS INAPPLICABLE TO CREATION OF DISTRICT

[Sections 8230.006-8230.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8230.051. COMPOSITION OF BOARD

[Sections 8230.052-8230.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8230.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8230. LUMBERTON MUNICIPAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8230.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Lumberton Municipal Utility District. (Acts 63rd Leg., R.S., Ch. 388, Sec. 1 (part); New.)

Sec. 8230.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Hardin County created under Section 59, Article XVI, Texas Constitution. (Acts 63rd Leg., R.S., Ch. 388, Sec. 1 (part).)

Sec. 8230.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 63rd Leg., R.S., Ch. 388, Secs. 1 (part), 4.)

Sec. 8230.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 2, Chapter 388, Acts of the 63rd Legislature, Regular Session, 1973, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 63rd Leg., R.S., Ch. 388, Sec. 3; New.)

Sec. 8230.005. CERTAIN LAWS INAPPLICABLE TO CREATION OF DISTRICT. The district was created notwithstanding any provision of Section 212.003, Local Government Code, Chapter 42 or 43, Local Government Code, or Section 54.016, Water Code, and to the extent of the creation of the district only, those provisions shall have no application. (Acts 63rd Leg., R.S., Ch. 388, Sec. 8.)

[Sections 8230.006-8230.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8230.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 63rd Leg., R.S., Ch. 388, Sec. 7 (part).)

[Sections 8230.052-8230.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8230.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred and imposed by general law applicable to a municipal utility district created under Section 59, Article XVI, Texas Constitution, including Chapters 49 and 54, Water Code. (Acts 63rd Leg., R.S., Ch. 388, Sec. 5 (part); New.) CHAPTER 8243. LANNIUS MUNICIPAL UTILITY DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8243.001. DEFINITIONS Sec. 8243.002. NATURE OF DISTRICT Sec. 8243.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8243.004. DISTRICT TERRITORY

[Sections 8243.005-8243.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8243.051. COMPOSITION OF BOARD

[Sections 8243.052-8243.100 reserved for expansion]

SUBCHAPTER C. POWERS Sec. 8243.101. MUNICIPAL UTILITY DISTRICT POWERS Sec. 8243.102. WATER AND SEWER SYSTEMS

CHAPTER 8243. LANNIUS MUNICIPAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8243.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Lannius Municipal Utility District. (Acts 63rd Leg., R.S., Ch. 620, Sec. 1 (part); New.)

Sec. 8243.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Fannin County created under Section 59, Article XVI, Texas Constitution. (Acts 63rd Leg., R.S., Ch. 620, Sec. 1 (part).)

Sec. 8243.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 63rd Leg., R.S., Ch. 620, Secs. 1 (part), 4.)

Sec. 8243.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 2, Chapter 620, Acts of the 63rd Legislature, Regular Session, 1973, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 63rd Leg., R.S., Ch. 620, Sec. 3; New.)

[Sections 8243.005-8243.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8243.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 63rd Leg., R.S., Ch. 620, Sec. 7 (part).)

[Sections 8243.052-8243.100 reserved for expansion]

SUBCHAPTER C. POWERS

Sec. 8243.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred and imposed by general law applicable to a municipal utility district created under Section 59, Article XVI, Texas Constitution, including Chapters 49 and 54, Water Code. (Acts 63rd Leg., R.S., Ch. 620, Sec. 5 (part).)

Sec. 8243.102. WATER AND SEWER SYSTEMS. The district may:

(1) acquire an existing water system that serves all or part of the district territory; or

(2) enter into a contract with the owner of a system described by Subdivision (1) under which the owner agrees:

(A) to operate and maintain all or part of the district's facilities;

(B) to provide billing for utility service supplied by district facilities;

(C) not to provide water service to a customer who is subject to the sanitary sewer service supplied by district facilities but who has not paid for that sewer service; and

(D) to any other agreement required to assure adequate maintenance of district facilities and provide money to pay district obligations. (Acts 63rd Leg., R.S., Ch. 620, Sec. 6.) CHAPTER 8246. LAVACA COUNTY FLOOD CONTROL DISTRICT NO. 3 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8246.001. DEFINITIONS Sec. 8246.002. NATURE OF DISTRICT Sec. 8246.003. DISTRICT TERRITORY

[Sections 8246.004-8246.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8246.051. COMPOSITION OF BOARD Sec. 8246.052. DIRECTOR'S BOND; TREASURER'S BOND Sec. 8246.053. OFFICIAL ACTIONS; QUORUM Sec. 8246.054. BOARD MEETINGS Sec. 8246.055. BOARD COMPENSATION FOR ATTENDING

MEETINGS Sec. 8246.056. OFFICERS

[Sections 8246.057-8246.100 reserved for expansion]

SUBCHAPTER C. GENERAL POWERS AND DUTIES Sec. 8246.101. MUNICIPAL UTILITY DISTRICT POWERS;

GENERAL POWERS Sec. 8246.102. EMINENT DOMAIN Sec. 8246.103. CONTRACTS AND WARRANTS

[Sections 8246.104-8246.150 reserved for expansion]

SUBCHAPTER D. FLOOD CONTROL Sec. 8246.151. FLOOD CONTROL POWERS AND DUTIES Sec. 8246.152. EASEMENT OVER AND RELOCATION OF ROADS Sec. 8246.153. MAINTENANCE OF FEDERAL FLOOD CONTROL

PROJECTS

[Sections 8246.154-8246.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS Sec. 8246.201. PETITION AND ELECTION AUTHORIZING AD

VALOREM TAX; TAX LIMIT Sec. 8246.202. NOTICE FOR AND MANNER OF HOLDING AD

VALOREM TAX ELECTION Sec. 8246.203. TAX LAWS APPLICABLE

[Sections 8246.204-8246.250 reserved for expansion]

SUBCHAPTER F. BONDS Sec. 8246.251. PETITION FOR BOND ELECTION Sec. 8246.252. DATE AND NOTICE OF PETITION HEARING Sec. 8246.253. HEARING AND DETERMINATION ON PETITION Sec. 8246.254. ELECTION FOR, ISSUANCE OF, AND SALE OF

BONDS

CHAPTER 8246. LAVACA COUNTY FLOOD CONTROL DISTRICT NO. 3

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8246.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Lavaca County Flood Control District No. 3.

(4) "President" means the president of the board.

(5) "Secretary" means the secretary of the board. (Acts 56th Leg., R.S., Ch. 95, Secs. 1 (part), 4 (part); New.)

Sec. 8246.002. NATURE OF DISTRICT. (a) The district is a municipal utility district and a conservation and reclamation district as provided by this chapter.

(b) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 56th Leg., R.S., Ch. 95, Sec. 1 (part); New.)

Sec. 8246.003. DISTRICT TERRITORY. The district is composed of the territory described by Section 1, Chapter 95, Acts of the 56th Legislature, Regular Session, 1959, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law. (New.)

[Sections 8246.004-8246.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8246.051. COMPOSITION OF BOARD. The board is composed of five elected directors who serve staggered terms. (New.)

Sec. 8246.052. DIRECTOR'S BOND; TREASURER'S BOND. (a) Each director shall give bond in the amount of $1,000 for the faithful performance of the director's duties.

(b) The treasurer of the district shall give bond in the amount of $2,500 for the faithful performance of the treasurer's duties. (Acts 56th Leg., R.S., Ch. 95, Sec. 5 (part).)

Sec. 8246.053. OFFICIAL ACTIONS; QUORUM. (a) The board shall perform official actions by resolution.

(b) Two-thirds of the board constitutes a quorum for the transaction of any business of the district.

(c) A majority vote of those present is sufficient in any official action, including final passage and enactment of a resolution. (Acts 56th Leg., R.S., Ch. 95, Sec. 6(a) (part).)

Sec. 8246.054. BOARD MEETINGS. (a) The board shall hold regular meetings at least once every three months. The dates of regular meetings must be established in the district's bylaws or by resolution.

(b) The president or any three directors may call a special meeting as necessary to administer district business. At least five days before the date of a special meeting, the secretary must mail notice of the meeting to the address each director filed with the secretary. A director may waive in writing notices of special meetings. (Acts 56th Leg., R.S., Ch. 95, Sec. 6(b) (part).)

Sec. 8246.055. BOARD COMPENSATION FOR ATTENDING MEETINGS. Unless the board by resolution increases the fee to an amount authorized by Section 49.060, Water Code:

(1) each director is entitled to receive a fee of $20 for attending each board meeting; and

(2) a director may not be paid more than $40 for meetings held in one calendar month. (Acts 56th Leg., R.S., Ch. 95, Sec. 6(b) (part); New.)

Sec. 8246.056. OFFICERS. (a) The president shall perform those functions that are customarily incident to the office of president.

(b) The vice president shall act as president in case of the inability, absence, or failure of the president to act.

(c) The secretary may be a director or an individual who is not a director. (Acts 56th Leg., R.S., Ch. 95, Sec. 6(c) (part).)

[Sections 8246.057-8246.100 reserved for expansion]

SUBCHAPTER C. GENERAL POWERS AND DUTIES

Sec. 8246.101. MUNICIPAL UTILITY DISTRICT POWERS; GENERAL POWERS. (a) The district has and may exercise the powers, functions, duties, and privileges provided by general law applicable to a municipal utility district, including those conferred by Chapters 49 and 54, Water Code.

(b) The district may exercise the rights, privileges, and functions provided by this chapter. (Acts 56th Leg., R.S., Ch. 95, Sec. 1 (part); New.)

Sec. 8246.102. EMINENT DOMAIN. The district may exercise the power of eminent domain inside district boundaries to acquire property of any kind, or an interest in property, necessary or convenient for the district to exercise a right, power, privilege, or function conferred on the district by this chapter. (Acts 56th Leg., R.S., Ch. 95, Sec. 8 (part).)

Sec. 8246.103. CONTRACTS AND WARRANTS. The district may enter into contracts and issue warrants payable from current funds under the applicable provisions of Chapter 252, Local Government Code, that relate to a municipality with a population of less than 5,000, to the extent those provisions are not in conflict with this chapter. (Acts 56th Leg., R.S., Ch. 95, Sec. 13.)

[Sections 8246.104-8246.150 reserved for expansion]

SUBCHAPTER D. FLOOD CONTROL

Sec. 8246.151. FLOOD CONTROL POWERS AND DUTIES. The district may:

(1) exercise a power, right, privilege, or function conferred by general law on a flood control district created under Section 59, Article XVI, Texas Constitution, as applicable to Lavaca County and essential to the flood control project;

(2) devise plans and construct works to lessen and control floods;

(3) reclaim land in the district;

(4) prevent the deposit of silt in navigable streams;

(5) remove natural or artificial obstructions from streams and other watercourses;

(6) regulate the flow of surface and floodwaters;

(7) provide drainage essential to the flood control project;

(8) acquire, by gift, devise, purchase, or condemnation, land, a right or interest in land, or any other character of property needed to carry on the work of flood control;

(9) sell, trade, or otherwise dispose of land or other property, or a right in the property, no longer needed for the flood control project or flood control purposes;

(10) use the bed and banks of a bayou, river, or stream in the district, subject to the concurrence of the Texas Commission on Environmental Quality;

(11) authorize its officers, employees, or agents to enter any land in the district to make or examine a survey in connection with a flood control plan or project or for any other authorized purpose;

(12) overflow or inundate any public land or public property, and require the relocation of a road or highway, in the manner and to the extent permitted to a district organized under general law under Section 59, Article XVI, Texas Constitution, subject to the concurrence of the state agency with jurisdiction over the land or property or the Texas Transportation Commission, as applicable;

(13) appoint a flood control manager and any agents or employees of the county as necessary for flood control purposes, including an engineer and counsel, prescribe their duties, and set the amounts of their bonds and compensation;

(14) cooperate or contract with the United States to receive and use money from a grant, loan, or advancement to exercise a power or further a purpose under this chapter;

(15) contribute to the United States in connection with any project undertaken by the United States that affects or relates to flood control in Lavaca County;

(16) cooperate or contract with an agency or political subdivision of this state, including a municipality in Lavaca County, in relation to:

(A) a survey;

(B) the acquisition of land or a right-of-way; or

(C) the construction, maintenance, or financing of all or part of a project in connection with any matter within the scope of this chapter;

(17) contract with an agency or political subdivision of this state, including a municipality in Lavaca County, for the imposition of taxes on behalf of and for the benefit of the district;

(18) sue and be sued under the laws of this state; and

(19) perform any act necessary or proper to carry out the powers described by this section or Section 8246.152. (Acts 56th Leg., R.S., Ch. 95, Sec. 2 (part).)

Sec. 8246.152. EASEMENT OVER AND RELOCATION OF ROADS. The district has a right-of-way and easement over and across a road or highway of this state or a subdivision of this state for the construction or maintenance of a district flood control project, subject to the concurrence of the Texas Transportation Commission if the project requires the relocation or bridging of a state highway. (Acts 56th Leg., R.S., Ch. 95, Sec. 2 (part).)

Sec. 8246.153. MAINTENANCE OF FEDERAL FLOOD CONTROL PROJECTS. The district is entitled to maintain a flood control project constructed in Lavaca County by the United States if the project:

(1) extends wholly or partly into the district or is within five miles of the boundaries of the district; and

(2) is considered by the board to protect property in the district. (Acts 56th Leg., R.S., Ch. 95, Sec. 2a.)

[Sections 8246.154-8246.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 8246.201. PETITION AND ELECTION AUTHORIZING AD VALOREM TAX; TAX LIMIT. (a) The board may impose on all taxable property in the district an annual tax at a rate not to exceed 15 cents on the $100 valuation.

(b) Before an election is held on the ad valorem tax proposition, a petition for the tax must be presented to the board. The petition must be signed by 10 percent of the registered voters who own taxable property in the district.

(c) The petition, election order, and notice of the election must state:

(1) the specific tax rate to be voted on or that the rate may not exceed the limit under Subsection (a); and

(2) one or more of the purposes authorized by this chapter for which the tax money may be spent.

(d) The total amount of all taxes imposed by the district for all purposes may not exceed 15 cents on the $100 valuation. (Acts 56th Leg., R.S., Ch. 95, Secs. 9(a), (b), 11.)

Sec. 8246.202. NOTICE FOR AND MANNER OF HOLDING AD VALOREM TAX ELECTION. (a) Notice of an election under Section 8246.201 must be published once each week for two weeks in a newspaper that is published in Lavaca County and has general circulation in the district.

(b) The date of the first publication of notice must be not less than 20 days and not more than 30 days before the date of the election.

(c) The presiding judge for each voting place shall appoint the necessary judges and clerks to assist the presiding judge in holding the election. (Acts 56th Leg., R.S., Ch. 95, Sec. 3(a) (part).)

Sec. 8246.203. TAX LAWS APPLICABLE. The laws of this state relating to the imposition of ad valorem taxes and collection of delinquent taxes by a water control and improvement district apply to the district. (Acts 56th Leg., R.S., Ch. 95, Sec. 12.)

[Sections 8246.204-8246.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec. 8246.251. PETITION FOR BOND ELECTION. (a) A petition requesting an election on the proposition of the issuance of bonds for any purpose authorized in this chapter may be presented to the board.

(b) The petition must be signed by at least 50 registered, property tax paying voters residing in the district.

(c) The petition must state:

(1) the amount of bonds to be voted on;

(2) the general nature of the work to be done;

(3) the necessity for and feasibility of the work;

(4) the estimated cost; and

(5) the operating costs. (Acts 56th Leg., R.S., Ch. 95, Sec. 14.)

Sec. 8246.252. DATE AND NOTICE OF PETITION HEARING. (a) The board shall set a date for a public hearing on the petition that is not more than 30 days after the date the petition is filed with the board.

(b) Notice of the hearing must be published once a week for two consecutive weeks in a newspaper of general circulation in the district. The first publication of notice must be not less than 20 days before the date of the hearing.

(c) The secretary shall post or cause to be posted for at least 15 days before the date of the hearing a copy of the notice at the courthouse door of Lavaca County and at three other public places in the district that will give reasonable notice throughout the district. (Acts 56th Leg., R.S., Ch. 95, Sec. 15.)

Sec. 8246.253. HEARING AND DETERMINATION ON PETITION. (a) The board shall consider and determine all matters brought before the board at the hearing.

(b) If the board determines that the proposed improvements are feasible and practicable and a benefit to the public, the board shall grant the petition and order the requested election. If the board refuses the petition, the board's reasons must be stated in the minutes of the board. The board's decision is final. (Acts 56th Leg., R.S., Ch. 95, Sec. 16.)

Sec. 8246.254. ELECTION FOR, ISSUANCE OF, AND SALE OF BONDS. (a) Except as provided by this section, the election for, issuance of, and sale of district bonds are governed by the provisions of Chapters 1201, 1207, 1251, and 1431, Government Code, that pertain to the election for, issuance of, and sale of bonds by counties.

(b) As determined by the board, district bonds mature serially not later than 30 years after the date of their issuance.

(c) District bonds may be sold only by sealed competitive bids to the highest bidder.

(d) Notice of a proposed sale must be published in a financial publication of general circulation in this state once a week for two consecutive weeks. The date of the first publication must be at least 15 days before the date of the proposed sale.

(e) District bonds must be signed by the president and attested by the secretary. (Acts 56th Leg., R.S., Ch. 95, Sec. 17.) CHAPTER 8259. LONGHORN TOWN UTILITY DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8259.001. DEFINITIONS Sec. 8259.002. NATURE OF DISTRICT Sec. 8259.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8259.004. DISTRICT TERRITORY

[Sections 8259.005-8259.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8259.051. COMPOSITION OF BOARD

[Sections 8259.052-8259.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8259.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8259. LONGHORN TOWN UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8259.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Longhorn Town Utility District of Harris County, Texas. (Acts 62nd Leg., R.S., Ch. 659, Sec. 1 (part); New.)

Sec. 8259.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Harris County created under Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 659, Sec. 1 (part).)

Sec. 8259.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 659, Secs. 1 (part), 3.)

Sec. 8259.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 659, Acts of the 62nd Legislature, Regular Session, 1971, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bonds for a purpose for which the district is created or to pay the principal of and interest on the bonds;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 62nd Leg., R.S., Ch. 659, Sec. 2; New.)

[Sections 8259.005-8259.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8259.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 62nd Leg., R.S., Ch. 659, Sec. 6 (part).)

[Sections 8259.052-8259.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8259.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred by general law applicable to a municipal utility district, including Chapters 49 and 54, Water Code. (Acts 62nd Leg., R.S., Ch. 659, Sec. 5 (part); New.) CHAPTER 8260. LOUETTA NORTH PUBLIC UTILITY DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8260.001. DEFINITIONS Sec. 8260.002. NATURE OF DISTRICT Sec. 8260.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8260.004. DISTRICT TERRITORY

[Sections 8260.005-8260.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8260.051. COMPOSITION OF BOARD

[Sections 8260.052-8260.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8260.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8260. LOUETTA NORTH PUBLIC UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8260.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Louetta North Public Utility District. (Acts 62nd Leg., R.S., Ch. 685, Sec. 1 (part); New.)

Sec. 8260.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Harris County created under Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 685, Sec. 1 (part).)

Sec. 8260.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 685, Secs. 1 (part), 3.)

Sec. 8260.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 685, Acts of the 62nd Legislature, Regular Session, 1971, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 62nd Leg., R.S., Ch. 685, Sec. 2; New.)

[Sections 8260.005-8260.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8260.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 62nd Leg., R.S., Ch. 685, Sec. 6 (part).)

[Sections 8260.052-8260.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8260.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred by general law applicable to a municipal utility district, including Chapters 49 and 54, Water Code. (Acts 62nd Leg., R.S., Ch. 685, Sec. 5 (part); New.) CHAPTER 8262. LOUETTA ROAD UTILITY DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8262.001. DEFINITIONS Sec. 8262.002. NATURE OF DISTRICT Sec. 8262.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8262.004. DISTRICT TERRITORY Sec. 8262.005. EXPANSION OF DISTRICT Sec. 8262.006. STATE POLICY REGARDING WASTE DISPOSAL

[Sections 8262.007-8262.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 8262.051. COMPOSITION OF BOARD Sec. 8262.052. DIRECTOR'S BOND Sec. 8262.053. ABSENCE OR INACTION OF BOARD PRESIDENT Sec. 8262.054. DISTRICT OFFICE

[Sections 8262.055-8262.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8262.101. MUNICIPAL UTILITY DISTRICT POWERS Sec. 8262.102. ADDITIONAL POWERS Sec. 8262.103. EMINENT DOMAIN Sec. 8262.104. COST OF RELOCATING OR ALTERING PROPERTY Sec. 8262.105. CONTRACT FOR PURCHASE OF WATER, SEWER,

REQUIRED Sec. 8262.106. NOTICE OF ELECTION Sec. 8262.107. DISTRICT RULES

[Sections 8262.108-8262.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8262.151. TAX METHOD Sec. 8262.152. DISTRICT ACCOUNTS Sec. 8262.153. COPY OF AUDIT REPORT Sec. 8262.154. PAYMENT OF TAX OR ASSESSMENT NOT

REQUIRED Sec. 8262.155. DEPOSITORY

[Sections 8262.156-8262.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 8262.201. LOST OR MUTILATED BONDS Sec. 8262.202. USE OF BOND PROCEEDS DURING

CONSTRUCTION Sec. 8262.203. REFUNDING BONDS

CHAPTER 8262. LOUETTA ROAD UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8262.001. 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 Louetta Road Utility District. (Acts 61st Leg., R.S., Ch. 749, Sec. 1 (part); New.)

Sec. 8262.002. NATURE OF DISTRICT. The district is a municipal utility district and a conservation and reclamation district in Harris County created under Section 59, Article XVI, Texas Constitution. (Acts 61st Leg., R.S., Ch. 749, Sec. 1 (part); New.)

Sec. 8262.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution.

(d) The accomplishment of the purposes stated in this chapter is for the benefit of the people of this state and for the improvement of their property and industries. The district in carrying out the purposes of this chapter will be performing an essential public function under the Texas Constitution. (Acts 61st Leg., R.S., Ch. 749, Secs. 1 (part), 4, 24 (part).)

Sec. 8262.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 2, Chapter 749, Acts of the 61st Legislature, Regular Session, 1969, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code;

(3) Section 9, Chapter 749, Acts of the 61st Legislature, Regular Session, 1969; or

(4) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or the board. (Acts 61st Leg., R.S., Ch. 749, Sec. 3; New.)

Sec. 8262.005. EXPANSION OF DISTRICT. (a) If land is annexed by the district under Section 49.301, Water Code, the board may require the petitioners to:

(1) assume the petitioners' pro rata share of the voted but unissued bonds of the district; and

(2) authorize the board to impose a tax on the petitioners' property to pay for the bonds after the bonds have been issued.

(b) If land is annexed by the district under Section 49.302, Water Code, the board may submit to the voters of the area to be annexed a proposition on the question of the assumption by the area to be annexed of its part of the voted but not yet issued or sold tax or tax-revenue bonds of the district and the imposition of an ad valorem tax on taxable property in the area to be annexed along with a tax in the rest of the district for the payment of the bonds.

(c) If the petitioners consent or if the election results favorably, the district may issue its voted but unissued tax or tax-revenue bonds regardless of changes to district boundaries since the original voting or authorization of the bonds. (Acts 61st Leg., R.S., Ch. 749, Sec. 9.)

Sec. 8262.006. 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 effect on state water quality caused by the construction and operation of numerous small waste collection, treatment, and disposal facilities. (Acts 61st Leg., R.S., Ch. 749, Sec. 5 (part).)

[Sections 8262.007-8262.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 8262.051. COMPOSITION OF BOARD. The board consists of five elected directors. (Acts 61st Leg., R.S., Ch. 749, Sec. 10 (part).)

Sec. 8262.052. DIRECTOR'S BOND. Each director shall qualify by giving bond in the amount of $5,000 for the faithful performance of the director's duties. (Acts 61st Leg., R.S., Ch. 749, Sec. 10 (part).)

Sec. 8262.053. ABSENCE OR INACTION OF BOARD PRESIDENT. (a) When the board president is absent or fails or declines to act, the board vice president shall perform all duties and exercise all power this chapter or general law gives the president.

(b) If the board president is absent from a board meeting:

(1) the board vice president may sign an order or other action adopted at the meeting; or

(2) the board may authorize the president to sign the order or implement the action. (Acts 61st Leg., R.S., Ch. 749, Sec. 10 (part).)

Sec. 8262.054. DISTRICT OFFICE. (a) Except as provided by this section, the board shall designate, establish, and maintain a district office as provided by Section 49.062, Water Code.

(b) The board may establish a second district office outside the district. If the board establishes a second district office, the board shall give notice of the location of that office by:

(1) filing a copy of the board resolution that establishes the location of the office:

(A) with the Texas Commission on Environmental Quality; and

(B) in the municipal utility district records of each county in which the district is located; and

(2) publishing notice of the location of the office in a newspaper of general circulation in each county in which the district is located.

(c) A district office that is a private residence, office, or dwelling is a public place for matters relating to the district's business.

(d) The board shall provide notice of any change in the location of the district office outside the district in the manner required by Subsection (b). (Acts 61st Leg., R.S., Ch. 749, Sec. 15.)

[Sections 8262.055-8262.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8262.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has all of the rights, powers, privileges, and functions conferred and imposed by the general law of this state relating to municipal utility districts created under Section 59, Article XVI, Texas Constitution, including those conferred by Chapters 49 and 54, Water Code. (Acts 61st Leg., R.S., Ch. 749, Sec. 5 (part).)

Sec. 8262.102. ADDITIONAL POWERS. (a) The district may:

(1) make, purchase, construct, lease, or otherwise acquire property, works, facilities, existing improvements, or improvements to be made, constructed, or acquired that are:

(A) inside or outside the district's boundaries; and

(B) necessary to carry out the powers granted by this chapter or general law; or

(2) enter into a contract with a person on terms the board considers desirable, fair, and advantageous for:

(A) the purchase or sale of water;

(B) the transportation, treatment, and disposal of the domestic, industrial, or communal wastes of the district or others;

(C) the continuing and orderly development of land and property in the district through the purchase, construction, or installation of facilities, works, or improvements that the district is otherwise authorized to do or perform so that, to the greatest extent reasonably possible, considering sound engineering and economic practices, all of the land and property may ultimately receive the services of the facilities, works, or improvements; and

(D) the performance of any of the powers granted by this chapter or general law.

(b) A contract under Subsection (a)(2) may not have a duration of more than 40 years. (Acts 61st Leg., R.S., Ch. 749, Sec. 5 (part).)

Sec. 8262.103. EMINENT DOMAIN. The district may exercise the power of eminent domain only:

(1) in a county in which the district is located; and

(2) when necessary to carry out the purposes for which the district was created. (Acts 61st Leg., R.S., Ch. 749, Sec. 13 (part).)

Sec. 8262.104. COST OF RELOCATING OR ALTERING PROPERTY. (a) In this section, "sole expense" means the actual cost of relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of a facility described by Subsection (b) in providing comparable replacement without enhancement of the facility, after deducting from that cost the net salvage value of the old facility.

(b) If the district's exercise of the power of eminent domain, the power of relocation, or any other power conferred by this chapter makes necessary the relocation, raising, rerouting, changing the grade, or alteration of the construction of a highway, a railroad, an electric transmission line, a telegraph or telephone property or facility, or a pipeline, the necessary action shall be accomplished at the sole expense of the district. (Acts 61st Leg., R.S., Ch. 749, Sec. 13 (part).)

Sec. 8262.105. CONTRACT FOR PURCHASE OF WATER, SEWER, OR DRAINAGE SERVICES; ELECTION NOT REQUIRED. (a) The district and a political subdivision may enter into a contract for water, sewer, or drainage services or any combination of those services without the necessity of an election by any contracting party to approve the contract.

(b) The district may pay for an obligation incurred by such a contract by issuing bonds that, if otherwise necessary, have been approved by the voters in the manner provided by this chapter.

(c) The district may deliver the district's bonds to the United States or an agency or instrumentality of the United States, or to this state or an agency or instrumentality of this state, that entered into a contract with the district. (Acts 61st Leg., R.S., Ch. 749, Sec. 5 (part).)

Sec. 8262.106. NOTICE OF ELECTION. The board president or secretary may give notice of an election. (Acts 61st Leg., R.S., Ch. 749, Sec. 19.)

Sec. 8262.107. DISTRICT RULES. The district shall adopt and enforce reasonable and effective rules to secure and maintain safe, sanitary, and adequate plumbing installations, connections, and appurtenances as subsidiary parts of the district's sewerage system to preserve the quality of water within or controlled by the district. (Acts 61st Leg., R.S., Ch. 749, Sec. 16.)

[Sections 8262.108-8262.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8262.151. TAX METHOD. (a) The district shall use the ad valorem plan of taxation.

(b) The board is not required to call or hold a hearing on the adoption of a plan of taxation. (Acts 61st Leg., R.S., Ch. 749, Sec. 8.)

Sec. 8262.152. DISTRICT ACCOUNTS. The district shall keep a complete system of the district's accounts. (Acts 61st Leg., R.S., Ch. 749, Sec. 14 (part).)

Sec. 8262.153. COPY OF AUDIT REPORT. A copy of the audit report prepared under Subchapter G, Chapter 49, Water Code, shall be delivered:

(1) to each director; and

(2) to a holder of at least 25 percent of the outstanding bonds of the district, on request. (Acts 61st Leg., R.S., Ch. 749, Sec. 14 (part); New.)

Sec. 8262.154. PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED. The district is not required to pay a tax or assessment on:

(1) district property; or

(2) a purchase made by the district. (Acts 61st Leg., R.S., Ch. 749, Sec. 24 (part).)

Sec. 8262.155. DEPOSITORY. (a) The board shall select one or more banks in this state to act as depository for the district's money.

(b) To the extent that money in the depository bank is not insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by law for the security of county funds.

(c) A director may be a shareholder in a bank that is a depository of district money. (Acts 61st Leg., R.S., Ch. 749, Sec. 14 (part).)

[Sections 8262.156-8262.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 8262.201. LOST OR MUTILATED BONDS. A trust indenture securing bonds issued under this chapter may provide for the issuance of bonds to replace lost or mutilated bonds. (Acts 61st Leg., R.S., Ch. 749, Sec. 12 (part).)

Sec. 8262.202. USE OF BOND PROCEEDS DURING CONSTRUCTION. (a) The district may appropriate or set aside out of the proceeds from the sale of any bonds issued under this chapter an amount for the payment of interest, administrative, and operating expenses expected to accrue during a period of construction, as may be provided in the bond orders or resolutions.

(b) For purposes of this section, the period of construction may not exceed three years. (Acts 61st Leg., R.S., Ch. 749, Sec. 12 (part).)

Sec. 8262.203. REFUNDING BONDS. (a) By order or resolution adopted by the board, the district may issue revenue refunding bonds or tax-revenue refunding bonds to refund revenue bonds or tax-revenue bonds, whether original bonds or refunding bonds, previously issued by the district.

(b) The comptroller shall register the refunding bonds on the surrender and cancellation of the bonds to be refunded.

(c) Instead of issuing bonds to be registered on the surrender and cancellation of the bonds to be refunded, the district, in the order or resolution authorizing the issuance of the refunding bonds, may provide for the sale of the refunding bonds and the deposit of the proceeds in the place or places where the bonds to be refunded are payable. In that case, the refunding bonds may be issued if an amount sufficient to pay the principal of and interest on the bonds to be refunded to their maturity dates, or to their option dates if according to their terms the bonds have been called for payment before maturity, has been deposited in the place or places where the bonds to be refunded are payable, and the comptroller shall register the refunding bonds without the surrender and cancellation of the bonds to be refunded. (Acts 61st Leg., R.S., Ch. 749, Sec. 12 (part).) CHAPTER 8271. LANGHAM CREEK UTILITY DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8271.001. DEFINITIONS Sec. 8271.002. NATURE OF DISTRICT Sec. 8271.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8271.004. DISTRICT TERRITORY Sec. 8271.005. EXPANSION OF DISTRICT Sec. 8271.006. STATE POLICY REGARDING WASTE DISPOSAL

[Sections 8271.007-8271.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 8271.051. COMPOSITION OF BOARD Sec. 8271.052. DIRECTOR'S BOND Sec. 8271.053. ABSENCE OR INACTION OF BOARD PRESIDENT Sec. 8271.054. DISTRICT OFFICE

[Sections 8271.055-8271.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8271.101. MUNICIPAL UTILITY DISTRICT POWERS Sec. 8271.102. ADDITIONAL POWERS Sec. 8271.103. EMINENT DOMAIN Sec. 8271.104. COST OF RELOCATING OR ALTERING PROPERTY Sec. 8271.105. CONTRACT FOR PURCHASE OF WATER, SEWER,

REQUIRED Sec. 8271.106. NOTICE OF ELECTION Sec. 8271.107. DISTRICT RULES

[Sections 8271.108-8271.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8271.151. TAX METHOD Sec. 8271.152. DISTRICT ACCOUNTS Sec. 8271.153. COPY OF AUDIT REPORT Sec. 8271.154. PAYMENT OF TAX OR ASSESSMENT NOT

REQUIRED Sec. 8271.155. DEPOSITORY

[Sections 8271.156-8271.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 8271.201. LOST OR MUTILATED BONDS Sec. 8271.202. USE OF BOND PROCEEDS DURING

CONSTRUCTION Sec. 8271.203. REFUNDING BONDS

CHAPTER 8271. LANGHAM CREEK UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8271.001. 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 Langham Creek Utility District. (Acts 61st Leg., R.S., Ch. 306, Sec. 1 (part); New.)

Sec. 8271.002. NATURE OF DISTRICT. The district is a municipal utility district and a conservation and reclamation district in Harris County created under Section 59, Article XVI, Texas Constitution. (Acts 61st Leg., R.S., Ch. 306, Sec. 1 (part); New.)

Sec. 8271.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution.

(d) The accomplishment of the purposes stated in this chapter is for the benefit of the people of this state and for the improvement of their property and industries. The district in carrying out the purposes of this chapter will be performing an essential public function under the Texas Constitution. (Acts 61st Leg., R.S., Ch. 306, Secs. 1 (part), 4, 24 (part).)

Sec. 8271.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 2, Chapter 306, Acts of the 61st Legislature, Regular Session, 1969, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code;

(3) Section 9, Chapter 306, Acts of the 61st Legislature, Regular Session, 1969; or

(4) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bonds for a purpose for which the district is created or to pay the principal of and interest on the bonds;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or the board. (Acts 61st Leg., R.S., Ch. 306, Sec. 3; New.)

Sec. 8271.005. EXPANSION OF DISTRICT. (a) If land is annexed by the district under Section 49.301, Water Code, the board may require the petitioners to:

(1) assume the petitioners' pro rata share of the voted but unissued bonds of the district; and

(2) authorize the board to impose a tax on the petitioners' property to pay for the bonds after the bonds have been issued.

(b) If land is annexed by the district under Section 49.302, Water Code, the board may submit to the voters of the area to be annexed a proposition on the question of the assumption by the area to be annexed of its part of the voted but not yet issued or sold tax or tax-revenue bonds of the district and the imposition of an ad valorem tax on taxable property in the area to be annexed along with a tax in the rest of the district for the payment of the bonds.

(c) If the petitioners consent or if the election results favorably, the district may issue its voted but unissued tax or tax-revenue bonds regardless of changes to district boundaries since the original voting or authorization of the bonds. (Acts 61st Leg., R.S., Ch. 306, Sec. 9.)

Sec. 8271.006. 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 effect on state water quality caused by the construction and operation of numerous small waste collection, treatment, and disposal facilities. (Acts 61st Leg., R.S., Ch. 306, Sec. 5 (part).)

[Sections 8271.007-8271.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 8271.051. COMPOSITION OF BOARD. The board consists of five elected directors. (Acts 61st Leg., R.S., Ch. 306, Sec. 10 (part).)

Sec. 8271.052. DIRECTOR'S BOND. Each director shall qualify by giving bond in the amount of $5,000 for the faithful performance of the director's duties. (Acts 61st Leg., R.S., Ch. 306, Sec. 10 (part).)

Sec. 8271.053. ABSENCE OR INACTION OF BOARD PRESIDENT. (a) When the board president is absent or fails or declines to act, the board vice president shall perform all duties and exercise all power this chapter or general law gives the president.

(b) If the board president is absent from a board meeting:

(1) the board vice president may sign an order or other action adopted at the meeting; or

(2) the board may authorize the president to sign the order or implement the action. (Acts 61st Leg., R.S., Ch. 306, Sec. 10 (part).)

Sec. 8271.054. DISTRICT OFFICE. (a) Except as provided by this section, the board shall designate, establish, and maintain a district office as provided by Section 49.062, Water Code.

(b) The board may establish a second district office outside the district. If the board establishes a second district office, the board shall give notice of the location of that office by:

(1) filing a copy of the board resolution that establishes the location of the office:

(A) with the Texas Commission on Environmental Quality; and

(B) in the municipal utility district records of each county in which the district is located; and

(2) publishing notice of the location of the office in a newspaper of general circulation in each county in which the district is located.

(c) A district office that is a private residence, office, or dwelling is a public place for matters relating to the district's business.

(d) The board shall provide notice of any change in the location of the district office outside the district in the manner required by Subsection (b). (Acts 61st Leg., R.S., Ch. 306, Sec. 15.)

[Sections 8271.055-8271.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8271.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has all of the rights, powers, privileges, and functions conferred and imposed by the general law of this state relating to municipal utility districts created under Section 59, Article XVI, Texas Constitution, including those conferred by Chapters 49 and 54, Water Code. (Acts 61st Leg., R.S., Ch. 306, Sec. 5 (part).)

Sec. 8271.102. ADDITIONAL POWERS. (a) The district may:

(1) make, purchase, construct, lease, or otherwise acquire property, works, facilities, existing improvements, or improvements to be made, constructed, or acquired that are:

(A) inside or outside the district's boundaries; and

(B) necessary to carry out the powers granted by this chapter or general law; or

(2) enter into a contract with a person on terms the board considers desirable, fair, and advantageous for:

(A) the purchase or sale of water;

(B) the transportation, treatment, and disposal of the domestic, industrial, or communal wastes of the district or others;

(C) the continuing and orderly development of land and property in the district through the purchase, construction, or installation of facilities, works, or improvements that the district is otherwise authorized to do or perform so that, to the greatest extent reasonably possible, considering sound engineering and economic practices, all of the land and property may ultimately receive the services of the facilities, works, or improvements; and

(D) the performance of any of the powers granted by this chapter or general law.

(b) A contract under Subsection (a)(2) may not have a duration of more than 40 years. (Acts 61st Leg., R.S., Ch. 306, Sec. 5 (part).)

Sec. 8271.103. EMINENT DOMAIN. The district may exercise the power of eminent domain only:

(1) in a county in which the district is located; and

(2) when necessary to carry out the purposes for which the district was created. (Acts 61st Leg., R.S., Ch. 306, Sec. 13 (part).)

Sec. 8271.104. COST OF RELOCATING OR ALTERING PROPERTY. (a) In this section, "sole expense" means the actual cost of relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of a facility described by Subsection (b) in providing comparable replacement without enhancement of the facility, after deducting from that cost the net salvage value of the old facility.

(b) If the district's exercise of the power of eminent domain, the power of relocation, or any other power conferred by this chapter makes necessary the relocation, raising, rerouting, changing the grade, or alteration of the construction of a highway, a railroad, an electric transmission line, a telegraph or telephone property or facility, or a pipeline, the necessary action shall be accomplished at the sole expense of the district. (Acts 61st Leg., R.S., Ch. 306, Sec. 13 (part).)

Sec. 8271.105. CONTRACT FOR PURCHASE OF WATER, SEWER, OR DRAINAGE SERVICES; ELECTION NOT REQUIRED. (a) The district and a political subdivision may enter into a contract for water, sewer, or drainage services or any combination of those services without the necessity of an election by any contracting party to approve the contract.

(b) The district may pay for an obligation incurred by such a contract by issuing bonds that, if otherwise necessary, have been approved by the voters in the manner provided by this chapter.

(c) The district may deliver the district's bonds to the United States or an agency or instrumentality of the United States, or to this state or an agency or instrumentality of this state, that entered into a contract with the district. (Acts 61st Leg., R.S., Ch. 306, Sec. 5 (part).)

Sec. 8271.106. NOTICE OF ELECTION. The board president or secretary may give notice of an election. (Acts 61st Leg., R.S., Ch. 306, Sec. 19.)

Sec. 8271.107. DISTRICT RULES. The district shall adopt and enforce reasonable and effective rules to secure and maintain safe, sanitary, and adequate plumbing installations, connections, and appurtenances as subsidiary parts of the district's sewerage system to preserve the quality of water within or controlled by the district. (Acts 61st Leg., R.S., Ch. 306, Sec. 16.)

[Sections 8271.108-8271.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8271.151. TAX METHOD. (a) The district shall use the ad valorem plan of taxation.

(b) The board is not required to call or hold a hearing on the adoption of a plan of taxation. (Acts 61st Leg., R.S., Ch. 306, Sec. 8.)

Sec. 8271.152. DISTRICT ACCOUNTS. The district shall keep a complete system of the district's accounts. (Acts 61st Leg., R.S., Ch. 306, Sec. 14 (part).)

Sec. 8271.153. COPY OF AUDIT REPORT. A copy of the audit report prepared under Subchapter G, Chapter 49, Water Code, shall be delivered:

(1) to each director; and

(2) to a holder of at least 25 percent of the outstanding bonds of the district, on request. (Acts 61st Leg., R.S., Ch. 306, Sec. 14 (part); New.)

Sec. 8271.154. PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED. The district is not required to pay a tax or assessment on:

(1) district property; or

(2) a purchase made by the district. (Acts 61st Leg., R.S., Ch. 306, Sec. 24 (part).)

Sec. 8271.155. DEPOSITORY. (a) The board shall select one or more banks in this state to act as depository for the district's money.

(b) To the extent that money in the depository bank is not insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by law for the security of county funds.

(c) A director may be a shareholder in a bank that is a depository of district money. (Acts 61st Leg., R.S., Ch. 306, Sec. 14 (part).)

[Sections 8271.156-8271.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 8271.201. LOST OR MUTILATED BONDS. A trust indenture securing bonds issued under this chapter may provide for the issuance of bonds to replace lost or mutilated bonds. (Acts 61st Leg., R.S., Ch. 306, Sec. 12 (part).)

Sec. 8271.202. USE OF BOND PROCEEDS DURING CONSTRUCTION. (a) The district may appropriate or set aside out of the proceeds from the sale of any bonds issued under this chapter an amount for the payment of interest, administrative, and operating expenses expected to accrue during a period of construction, as may be provided in the bond orders or resolutions.

(b) For purposes of this section, the period of construction may not exceed three years. (Acts 61st Leg., R.S., Ch. 306, Sec. 12 (part).)

Sec. 8271.203. REFUNDING BONDS. (a) By order or resolution adopted by the board, the district may issue revenue refunding bonds or tax-revenue refunding bonds to refund revenue bonds or tax-revenue bonds, whether original bonds or refunding bonds, previously issued by the district.

(b) The comptroller shall register the refunding bonds on the surrender and cancellation of the bonds to be refunded.

(c) Instead of issuing bonds to be registered on the surrender and cancellation of the bonds to be refunded, the district, in the order or resolution authorizing the issuance of the refunding bonds, may provide for the sale of the refunding bonds and the deposit of the proceeds in the place or places where the bonds to be refunded are payable. In that case, the refunding bonds may be issued if an amount sufficient to pay the principal of and interest on the bonds to be refunded to their maturity dates, or to their option dates if according to their terms the bonds have been called for payment before maturity, has been deposited in the place or places where the bonds to be refunded are payable, and the comptroller shall register the refunding bonds without the surrender and cancellation of the bonds to be refunded. (Acts 61st Leg., R.S., Ch. 306, Sec. 12 (part).) CHAPTER 8272. HARRIS-MONTGOMERY COUNTIES MUNICIPAL UTILITY DISTRICT NO. 386 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8272.001. DEFINITION Sec. 8272.002. NATURE OF DISTRICT Sec. 8272.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8272.004. DISTRICT TERRITORY

[Sections 8272.005-8272.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8272.051. COMPOSITION OF BOARD; TERMS

[Sections 8272.052-8272.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8272.101. MUNICIPAL UTILITY DISTRICT POWERS Sec. 8272.102. COMPLIANCE WITH MUNICIPAL CONSENT

ORDINANCES OR RESOLUTIONS Sec. 8272.103. RELOCATING OR ALTERING PROPERTY; COSTS Sec. 8272.104. UTILITY PROPERTY EXEMPT FROM IMPACT

FEES AND ASSESSMENTS

CHAPTER 8272. HARRIS-MONTGOMERY COUNTIES MUNICIPAL

UTILITY DISTRICT NO. 386

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8272.001. DEFINITION. In this chapter, "district" means the Harris-Montgomery Counties Municipal Utility District No. 386. (Acts 77th Leg., R.S., Ch. 1381, Sec. 2.)

Sec. 8272.002. NATURE OF DISTRICT. The district is a conservation and reclamation district created under Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1381, Secs. 1(a) (part), (b) (part).)

Sec. 8272.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1381, Secs. 1(b) (part), 5.)

Sec. 8272.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 3, Chapter 1381, Acts of the 77th Legislature, Regular Session, 2001, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in the field notes or in copying the field notes in the legislative process does not affect:

(1) the district's organization, existence, or validity;

(2) the validity of district bonds, notes, or other indebtedness;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 77th Leg., R.S., Ch. 1381, Sec. 4; New.)

[Sections 8272.005-8272.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8272.051. COMPOSITION OF BOARD; TERMS. (a) The district is governed by a board of five directors.

(b) Directors serve staggered four-year terms. (Acts 77th Leg., R.S., Ch. 1381, Secs. 8(a), (d).)

[Sections 8272.052-8272.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8272.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, functions, and duties provided by general law applicable to a municipal utility district created under Section 59, Article XVI, Texas Constitution, including Chapters 49, 50, and 54, Water Code. (Acts 77th Leg., R.S., Ch. 1381, Sec. 6(a) (part).)

Sec. 8272.102. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCES OR RESOLUTIONS. Subject to the limitations of Section 54.016, Water Code, the district shall comply with all applicable requirements of any ordinance or resolution adopted by the city council of the City of Houston, including an ordinance or resolution adopted before September 1, 2001, that consents to the creation of the district or to the inclusion of lands in the district. (Acts 77th Leg., R.S., Ch. 1381, Sec. 12.)

Sec. 8272.103. RELOCATING OR ALTERING PROPERTY; COSTS. (a) The district may relocate, raise, reroute, change the grade of, or alter the construction of a highway, railroad, electric transmission line, telecommunications or other public utility facility, pipeline, canal, or drainage ditch if considered necessary by the board of directors.

(b) The district shall pay for any relocation, raising, rerouting, changing, or altering under this section, unless otherwise agreed in writing by the interested parties.

(c) If a facility is replaced, the cost of replacement is limited to an amount equal to the cost of replacing the facility with a comparable facility, less the replaced facility's net salvage value. (Acts 77th Leg., R.S., Ch. 1381, Sec. 7.)

Sec. 8272.104. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND ASSESSMENTS. The district may not impose an impact fee or assessment on the property, including the equipment, rights-of-way, facilities, or improvements, of:

(1) an electric utility or a power generation company as defined by Section 31.002, Utilities Code;

(2) a gas utility as defined by Section 101.003 or 121.001, Utilities Code; or

(3) a telecommunications provider as defined by Section 51.002, Utilities Code. (Acts 77th Leg., R.S., Ch. 1381, Sec. 6(c).) CHAPTER 8273. EL PASO COUNTY TORNILLO WATER IMPROVEMENT DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8273.001. DEFINITIONS Sec. 8273.002. NATURE OF AUTHORITY Sec. 8273.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8273.004. AUTHORITY TERRITORY

[Sections 8273.005-8273.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8273.051. COMPOSITION OF BOARD; TERMS Sec. 8273.052. DIRECTOR'S BOND Sec. 8273.053. OFFICIAL BOARD ACTIONS Sec. 8273.054. COMPENSATION Sec. 8273.055. CHANGING METHOD OF ELECTING DIRECTORS

[Sections 8273.056-8273.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8273.101. GENERAL POWERS Sec. 8273.102. MUNICIPAL UTILITY DISTRICT POWERS Sec. 8273.103. PERMITS; WATER SUPPLY ACQUISITION Sec. 8273.104. DOMESTIC, INDUSTRIAL, OR COMMUNAL WASTE Sec. 8273.105. WATER CONSERVATION PROGRAM Sec. 8273.106. ADDITIONAL POWERS Sec. 8273.107. CONSTRUCTION CONTRACTS

CHAPTER 8273. EL PASO COUNTY TORNILLO WATER IMPROVEMENT DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8273.001. DEFINITIONS. In this chapter:

(1) "Authority" means the El Paso County Tornillo Water Improvement District.

(2) "Board" means the board of directors of the authority.

(3) "Director" means a member of the board. (Acts 70th Leg., R.S., Ch. 916, Secs. 1(a) (part), 2; New.)

Sec. 8273.002. NATURE OF AUTHORITY. The authority is a conservation and reclamation district in El Paso County created under Section 59, Article XVI, Texas Constitution. (Acts 70th Leg., R.S., Ch. 916, Sec. 1(a) (part).)

Sec. 8273.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The authority is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the authority will benefit from the works and projects accomplished by the authority under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the authority is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 70th Leg., R.S., Ch. 916, Secs. 1(b), 5.)

Sec. 8273.004. AUTHORITY TERRITORY. (a) The authority is composed of the territory described by Section 3, Chapter 916, Acts of the 70th Legislature, Regular Session, 1987, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the authority form a closure. A mistake in the field notes or in copying the field notes in the legislative process does not affect:

(1) the authority's organization, existence, or validity;

(2) the authority's right to impose a tax; or

(3) the legality or operation of the authority or its governing body. (Acts 70th Leg., R.S., Ch. 916, Sec. 4; New.)

[Sections 8273.005-8273.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8273.051. COMPOSITION OF BOARD; TERMS. (a) The authority is governed by a board of seven directors elected to numbered places.

(b) Directors serve staggered terms. (Acts 70th Leg., R.S., Ch. 916, Secs. 7(a), (b) (part), 9(b).)

Sec. 8273.052. DIRECTOR'S BOND. Each director shall execute a bond for $5,000 payable to the authority and conditioned on the faithful performance of the director's duties. (Acts 70th Leg., R.S., Ch. 916, Sec. 7(g) (part).)

Sec. 8273.053. OFFICIAL BOARD ACTIONS. The affirmative vote of a majority of the directors is required for any official board action. (Acts 70th Leg., R.S., Ch. 916, Sec. 7(h) (part).)

Sec. 8273.054. COMPENSATION. Unless the board by resolution increases the fee to an amount authorized by Section 49.060, Water Code, the authority may provide that each director is entitled to receive $20 for each day of service necessary to discharge the director's duties. (Acts 70th Leg., R.S., Ch. 916, Sec. 7(j) (part); New.)

Sec. 8273.055. CHANGING METHOD OF ELECTING DIRECTORS. If the board determines that it is in the best interest of the residents of the authority to change the method by which directors are elected, the board may adopt any plan of redistricting, including a plan based on equal geographical areas. (Acts 70th Leg., R.S., Ch. 916, Sec. 7(i).)

[Sections 8273.056-8273.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8273.101. GENERAL POWERS. The authority may perform any act consistent with the powers granted by this chapter. (Acts 70th Leg., R.S., Ch. 916, Sec. 10(d) (part).)

Sec. 8273.102. MUNICIPAL UTILITY DISTRICT POWERS. The authority has the rights, powers, privileges, and functions conferred by the general law applicable to a municipal utility district created under Section 59, Article XVI, Texas Constitution, including Chapters 49, 50, and 54, Water Code. (Acts 70th Leg., R.S., Ch. 916, Sec. 6(a) (part); New.)

Sec. 8273.103. PERMITS; WATER SUPPLY ACQUISITION. The authority may:

(1) acquire water appropriation permits, construction permits, and other permits directly from the Texas Commission on Environmental Quality or from owners of permits;

(2) acquire water or a water supply from any person, including a public agency, this state, or the United States;

(3) contract with one or more substantial users of water to acquire the water supply on an agreed allocation of storage space between the authority and the user; or

(4) contract independently for the authority's water supply. (Acts 70th Leg., R.S., Ch. 916, Sec. 10(a) (part).)

Sec. 8273.104. DOMESTIC, INDUSTRIAL, OR COMMUNAL WASTE. The authority may collect, transport, process, dispose of, and control all domestic, industrial, or communal waste, whether in fluid, solid, or composite state. (Acts 70th Leg., R.S., Ch. 916, Sec. 10(a) (part).)

Sec. 8273.105. WATER CONSERVATION PROGRAM. (a) In this section, "program of water conservation" means the practices, techniques, and technologies that will reduce water consumption, reduce water loss or waste, improve efficiency in water use, or increase water recycling and reuse so that a water supply is available for future uses.

(b) The authority shall adopt and implement a program of water conservation consistent with rules and criteria adopted and enforced by the Texas Commission on Environmental Quality for similarly situated districts in the region. (Acts 70th Leg., R.S., Ch. 916, Sec. 10(b).)

Sec. 8273.106. ADDITIONAL POWERS. The authority may purchase, construct, acquire, own, lease, operate, maintain, repair, improve, and extend, inside or outside the authority's boundaries, land or an interest in land, any work, improvement, facility, plant, equipment, or appliance incident, helpful, or necessary to provide for:

(1) the control, storage, preservation, transmission, treatment, and distribution and use of storm water, floodwater, the water of rivers and streams, and groundwater for municipal, domestic, industrial, and other beneficial uses; and

(2) the collection, transportation, processing, disposition, and control of domestic, industrial, or commercial waste. (Acts 70th Leg., R.S., Ch. 916, Sec. 10(c).)

Sec. 8273.107. CONSTRUCTION CONTRACTS. (a) The authority may award a construction contract that requires an expenditure of more than $12,500 only after publication of notice to bidders once each week for two consecutive weeks immediately before awarding the contract.

(b) The notice must be published in a newspaper with general circulation in the authority, as designated by the board.

(c) The notice must state:

(1) the time and place for opening the bids;

(2) the general nature of the work to be done or the material, equipment, or supplies to be purchased; and

(3) the terms on which copies of the plans and specifications may be obtained.

(d) The authority is not required to advertise work to be performed in an emergency. (Acts 70th Leg., R.S., Ch. 916, Sec. 11.) CHAPTER 8274. HARRIS COUNTY UTILITY DISTRICT NO. 6 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8274.001. DEFINITIONS Sec. 8274.002. NATURE OF DISTRICT Sec. 8274.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8274.004. DISTRICT TERRITORY Sec. 8274.005. EXPANSION OF DISTRICT Sec. 8274.006. STATE POLICY REGARDING WASTE DISPOSAL Sec. 8274.007. LIBERAL CONSTRUCTION OF CHAPTER

[Sections 8274.008-8274.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 8274.051. COMPOSITION OF BOARD Sec. 8274.052. DIRECTOR'S BOND Sec. 8274.053. ABSENCE OR INACTION OF BOARD PRESIDENT Sec. 8274.054. DISTRICT OFFICE

[Sections 8274.055-8274.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8274.101. MUNICIPAL UTILITY DISTRICT POWERS Sec. 8274.102. ADDITIONAL POWERS Sec. 8274.103. EMINENT DOMAIN Sec. 8274.104. COST OF RELOCATING OR ALTERING PROPERTY Sec. 8274.105. CONTRACT FOR PURCHASE OF WATER, SEWER,

REQUIRED Sec. 8274.106. NOTICE OF ELECTION

[Sections 8274.107-8274.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8274.151. TAX METHOD Sec. 8274.152. TAX TO PAY OBLIGATIONS INCURRED UNDER

CONTRACT FOR WATER PURCHASE Sec. 8274.153. DISTRICT ACCOUNTS Sec. 8274.154. FISCAL YEAR Sec. 8274.155. COPY OF AUDIT REPORT Sec. 8274.156. PAYMENT OF TAX OR ASSESSMENT NOT

REQUIRED Sec. 8274.157. DEPOSITORY

[Sections 8274.158-8274.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 8274.201. AUTHORITY TO ISSUE BONDS Sec. 8274.202. USE OF BOND PROCEEDS OUTSIDE DISTRICT Sec. 8274.203. USE OF BOND PROCEEDS DURING

CONSTRUCTION Sec. 8274.204. LOST OR MUTILATED BONDS Sec. 8274.205. REFUNDING BONDS

CHAPTER 8274. HARRIS COUNTY UTILITY DISTRICT NO. 6

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8274.001. 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 Harris County Utility District No. 6. (Acts 61st Leg., R.S., Ch. 391, Sec. 1 (part); New.)

Sec. 8274.002. NATURE OF DISTRICT. The district is a municipal utility district and a conservation and reclamation district in Harris County created under Section 59, Article XVI, Texas Constitution. (Acts 61st Leg., R.S., Ch. 391, Sec. 1 (part); New.)

Sec. 8274.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution.

(d) The accomplishment of the purposes stated in this chapter is for the benefit of the people of this state and for the improvement of their property and industries. The district in carrying out the purposes of this chapter will be performing an essential public function under the Texas Constitution. (Acts 61st Leg., R.S., Ch. 391, Secs. 1 (part), 4, 24 (part).)

Sec. 8274.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 2, Chapter 391, Acts of the 61st Legislature, Regular Session, 1969, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code;

(3) Section 9, Chapter 391, Acts of the 61st Legislature, Regular Session, 1969; or

(4) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or the board. (Acts 61st Leg., R.S., Ch. 391, Sec. 3; New.)

Sec. 8274.005. EXPANSION OF DISTRICT. (a) If land is annexed to the district under Section 49.301, Water Code, the board may require the petitioners to:

(1) allow the assumption by the area to be annexed of its pro rata share of the taxes necessary to support voted but unissued tax or tax-revenue bonds of the district; and

(2) authorize the board to impose a tax on the petitioners' property to pay for the bonds after the bonds have been issued.

(b) If land is annexed to the district under Section 49.302, Water Code, the board may submit to the voters of the area to be annexed a proposition on the question of the assumption by the area to be annexed of its pro rata share of the voted but not yet issued or sold tax or tax-revenue bonds of the district and the imposition of an ad valorem tax on taxable property in the area to be annexed along with a tax in the rest of the district for the payment of the bonds.

(c) If the petitioners consent or if the election results favorably, the district may issue its voted but unissued tax or tax-revenue bonds regardless of changes to district boundaries since the original voting or authorization of the bonds. (Acts 61st Leg., R.S., Ch. 391, Sec. 9.)

Sec. 8274.006. STATE POLICY REGARDING WASTE DISPOSAL. The district's powers and functions 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 effect on state water quality caused by the construction and operation of numerous small waste collection, treatment, and disposal facilities. (Acts 61st Leg., R.S., Ch. 391, Sec. 5.A (part).)

Sec. 8274.007. LIBERAL CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed to effect the purposes, powers, rights, and functions stated in this chapter. (Acts 61st Leg., R.S., Ch. 391, Sec. 25 (part).)

[Sections 8274.008-8274.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 8274.051. COMPOSITION OF BOARD. The board consists of five directors elected by position. (Acts 61st Leg., R.S., Ch. 391, Sec. 10 (part).)

Sec. 8274.052. DIRECTOR'S BOND. Each director shall qualify by giving bond in the amount of $5,000 for the faithful performance of the director's duties. (Acts 61st Leg., R.S., Ch. 391, Sec. 10 (part).)

Sec. 8274.053. ABSENCE OR INACTION OF BOARD PRESIDENT. (a) When the board president is absent or fails or declines to act, the board vice president shall perform all duties and exercise all power this chapter or general law gives the president.

(b) If the board president is absent from a board meeting:

(1) the board vice president may sign an order or other action adopted at the meeting; or

(2) the board may authorize the president to sign the order or other action. (Acts 61st Leg., R.S., Ch. 391, Sec. 10 (part).)

Sec. 8274.054. DISTRICT OFFICE. (a) Except as provided by this section, the board shall designate, establish, and maintain a district office as provided by Section 49.062, Water Code.

(b) The board may establish a second district office outside the district. If the board establishes a second district office, the board shall give notice of the location of that office by:

(1) filing a copy of the board resolution that establishes the location of the office:

(A) with the Texas Commission on Environmental Quality; and

(B) in the municipal utility district records of Harris County; and

(2) publishing notice of the location of the office in a newspaper of general circulation in Harris County.

(c) A district office that is a private residence, office, or dwelling is a public place for matters relating to the district's business.

(d) The board shall provide notice of any change in the location of the district office outside the district in the manner required by Subsection (b). (Acts 61st Leg., R.S., Ch. 391, Sec. 15.)

[Sections 8274.055-8274.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8274.101. MUNICIPAL UTILITY DISTRICT POWERS. (a) The district has all of the rights, powers, privileges, and functions conferred and imposed by the general law of this state relating to municipal utility districts created under Section 59, Article XVI, Texas Constitution, including those conferred by Chapters 49 and 54, Water Code.

(b) The district may exercise inside or outside the district's boundaries any of the rights or powers granted by this chapter or under the general law relating to municipal utility districts, including the provision of water, sanitary sewerage, and drainage services. (Acts 61st Leg., R.S., Ch. 391, Secs. 5.A (part), 16 (part).)

Sec. 8274.102. ADDITIONAL POWERS. (a) The district may:

(1) make, purchase, construct, lease, or otherwise acquire, inside or outside the district's boundaries, property, works, facilities, or improvements, whether previously existing or to be made, constructed, or acquired, that are necessary to carry out the powers granted by this chapter or general law; or

(2) enter into a contract with a person on terms the board considers desirable, fair, and advantageous for:

(A) the purchase or sale of water;

(B) the transportation, treatment, and disposal of the domestic, industrial, or communal wastes of the district or others, including the purposes provided by Chapter 30, Water Code;

(C) the continuing and orderly development of land and property in the district through the purchase, construction, or installation of facilities, works, or improvements that the district is otherwise authorized to do or perform so that, to the greatest extent reasonably possible, considering sound engineering and economic practices, all of the land and property may ultimately receive the services of the facilities, works, or improvements; and

(D) the performance of any of the powers granted by this chapter or the general law.

(b) A contract under Subsection (a)(2) may not have a duration of more than 40 years. (Acts 61st Leg., R.S., Ch. 391, Sec. 5.B (part).)

Sec. 8274.103. EMINENT DOMAIN. The district may exercise the power of eminent domain only:

(1) in a county in which the district is located; and

(2) when necessary to carry out the purposes for which the district was created. (Acts 61st Leg., R.S., Ch. 391, Sec. 13 (part).)

Sec. 8274.104. COST OF RELOCATING OR ALTERING PROPERTY. (a) In this section, "sole expense" means the actual cost of relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of a facility described by Subsection (b) in providing comparable replacement without enhancement of the facility, after deducting from that cost the net salvage value of the old facility.

(b) If the district's exercise of the power of eminent domain, the power of relocation, or any other power conferred by this chapter makes necessary the relocation, raising, rerouting, changing the grade, or alteration of the construction of a highway, a railroad, an electric transmission line, a telegraph or telephone property or facility, or a pipeline, the necessary action shall be accomplished at the sole expense of the district. (Acts 61st Leg., R.S., Ch. 391, Sec. 13 (part).)

Sec. 8274.105. CONTRACT FOR PURCHASE OF WATER, SEWER, OR DRAINAGE SERVICES; ELECTION NOT REQUIRED. (a) The district and a political subdivision may enter into a contract for water, sewer, or drainage services or any combination of those services without the necessity of an election by any contracting party to approve the contract.

(b) The district may pay for an obligation incurred by such a contract by issuing bonds that, if otherwise necessary, have been approved by the voters in the manner provided by this chapter.

(c) The district may deliver the district's bonds to the United States or an agency or instrumentality of the United States, or this state or an agency or instrumentality of this state, that entered into a contract with the district. (Acts 61st Leg., R.S., Ch. 391, Sec. 5.B (part).)

Sec. 8274.106. NOTICE OF ELECTION. The board president or secretary may give notice of an election. (Acts 61st Leg., R.S., Ch. 391, Sec. 19.)

[Sections 8274.107-8274.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8274.151. TAX METHOD. (a) The district shall use the ad valorem plan of taxation.

(b) The board is not required to call or hold a hearing on the adoption of a plan of taxation. (Acts 61st Leg., R.S., Ch. 391, Sec. 8.)

Sec. 8274.152. TAX TO PAY OBLIGATIONS INCURRED UNDER CONTRACT FOR WATER PURCHASE. (a) If the tax is authorized at an election held for that purpose in the manner provided by Section 49.107, Water Code, the district may impose a tax and pledge the tax for the payment of all or part of an obligation incurred under a contract to purchase water.

(b) The election may be held in conjunction with an election authorizing tax bonds or authorizing a maintenance tax. (Acts 61st Leg., R.S., Ch. 391, Sec. 5.B (part).)

Sec. 8274.153. DISTRICT ACCOUNTS. The district shall keep a complete system of the district's accounts. (Acts 61st Leg., R.S., Ch. 391, Sec. 14 (part).)

Sec. 8274.154. FISCAL YEAR. The fiscal year of the district is from January 1 to December 31 of the same year. (Acts 61st Leg., R.S., Ch. 391, Sec. 14 (part).)

Sec. 8274.155. COPY OF AUDIT REPORT. A copy of the audit report prepared under Subchapter G, Chapter 49, Water Code, shall be delivered:

(1) to each director; and

(2) to a holder of at least 25 percent of the outstanding bonds of the district, on request. (Acts 61st Leg., R.S., Ch. 391, Sec. 14 (part); New.)

Sec. 8274.156. PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED. The district is not required to pay a tax or assessment on:

(1) district property; or

(2) a purchase made by the district. (Acts 61st Leg., R.S., Ch. 391, Sec. 24 (part).)

Sec. 8274.157. DEPOSITORY. (a) The board shall select one or more banks in this state to act as depository for the district's money.

(b) To the extent that money in the depository bank is not insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by law for the security of county funds.

(c) A director may be a shareholder in a bank that is a depository of district money. (Acts 61st Leg., R.S., Ch. 391, Sec. 14 (part).)

[Sections 8274.158-8274.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 8274.201. AUTHORITY TO ISSUE BONDS. The district may vote and issue any kind of bonds or issue refunding bonds for contiguous or noncontiguous areas for any district purpose. (Acts 61st Leg., R.S., Ch. 391, Sec. 16 (part).)

Sec. 8274.202. USE OF BOND PROCEEDS OUTSIDE DISTRICT. The proceeds from the sale of tax-supported district bonds may not be spent outside the district unless the expenditure is absolutely necessary to the operation of the district in the exercise of the district's rights, powers, privileges, and functions. (Acts 61st Leg., R.S., Ch. 391, Sec. 16 (part).)

Sec. 8274.203. USE OF BOND PROCEEDS DURING CONSTRUCTION. (a) The district may appropriate or set aside out of the proceeds from the sale of any bonds issued under this chapter an amount for the payment of interest, administrative, and operating expenses expected to accrue during a period of construction, as may be provided in the bond orders or resolutions.

(b) For purposes of this section, the period of construction may not exceed three years. (Acts 61st Leg., R.S., Ch. 391, Sec. 12 (part).)

Sec. 8274.204. LOST OR MUTILATED BONDS. A trust indenture securing bonds issued under this chapter may provide for the issuance of bonds to replace lost or mutilated bonds. (Acts 61st Leg., R.S., Ch. 391, Sec. 12 (part).)

Sec. 8274.205. REFUNDING BONDS. (a) By order or resolution adopted by the board, the district may issue revenue refunding bonds or tax-revenue refunding bonds to refund revenue bonds or tax-revenue bonds, whether original bonds or refunding bonds, previously issued by the district.

(b) The comptroller shall register the refunding bonds on the surrender and cancellation of the bonds to be refunded.

(c) Instead of issuing bonds to be registered on the surrender and cancellation of the bonds to be refunded, the district, in the order or resolution authorizing the issuance of the refunding bonds, may provide for the sale of the refunding bonds and the deposit of the proceeds in the place or places where the bonds to be refunded are payable. In that case, the refunding bonds may be issued if an amount sufficient to pay the principal of and interest on the bonds to be refunded to their maturity dates, or to their option dates if according to their terms the bonds have been called for payment before maturity, has been deposited in the place or places where the bonds to be refunded are payable, and the comptroller shall register the refunding bonds without the surrender and cancellation of the bonds to be refunded. (Acts 61st Leg., R.S., Ch. 391, Sec. 12 (part).) CHAPTER 8275. HARRIS COUNTY UTILITY DISTRICT NO. 14 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8275.001. DEFINITIONS Sec. 8275.002. NATURE OF DISTRICT Sec. 8275.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8275.004. DISTRICT TERRITORY

[Sections 8275.005-8275.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8275.051. COMPOSITION OF BOARD

[Sections 8275.052-8275.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8275.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8275. HARRIS COUNTY UTILITY DISTRICT NO. 14

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8275.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Harris County Utility District No. 14. (Acts 62nd Leg., R.S., Ch. 445, Sec. 1 (part); New.)

Sec. 8275.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Harris County created under Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 445, Sec. 1 (part).)

Sec. 8275.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 445, Secs. 1 (part), 3.)

Sec. 8275.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 445, Acts of the 62nd Legislature, Regular Session, 1971, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 62nd Leg., R.S., Ch. 445, Sec. 2; New.)

[Sections 8275.005-8275.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8275.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 62nd Leg., R.S., Ch. 445, Sec. 6 (part).)

[Sections 8275.052-8275.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8275.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred by general law applicable to a municipal utility district, including Chapters 49 and 54, Water Code. (Acts 62nd Leg., R.S., Ch. 445, Sec. 5 (part); New.) CHAPTER 8276. HARRIS COUNTY UTILITY DISTRICT NO. 15 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8276.001. DEFINITIONS Sec. 8276.002. NATURE OF DISTRICT Sec. 8276.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8276.004. DISTRICT TERRITORY

[Sections 8276.005-8276.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8276.051. COMPOSITION OF BOARD

[Sections 8276.052-8276.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8276.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8276. HARRIS COUNTY UTILITY DISTRICT NO. 15

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8276.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Harris County Utility District No. 15. (Acts 62nd Leg., R.S., Ch. 642, Sec. 1 (part); New.)

Sec. 8276.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Harris County created under Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 642, Sec. 1 (part).)

Sec. 8276.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 642, Secs. 1 (part), 3.)

Sec. 8276.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 642, Acts of the 62nd Legislature, Regular Session, 1971, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 62nd Leg., R.S., Ch. 642, Sec. 2; New.)

[Sections 8276.005-8276.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8276.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 62nd Leg., R.S., Ch. 642, Sec. 6 (part).)

[Sections 8276.052-8276.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8276.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred by general law applicable to a municipal utility district, including Chapters 49 and 54, Water Code. (Acts 62nd Leg., R.S., Ch. 642, Sec. 5 (part); New.) CHAPTER 8277. HARRIS COUNTY UTILITY DISTRICT NO. 16 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8277.001. DEFINITIONS Sec. 8277.002. NATURE OF DISTRICT Sec. 8277.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8277.004. DISTRICT TERRITORY

[Sections 8277.005-8277.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8277.051. COMPOSITION OF BOARD

[Sections 8277.052-8277.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8277.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8277. HARRIS COUNTY UTILITY DISTRICT NO. 16

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8277.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Harris County Utility District No. 16. (Acts 62nd Leg., R.S., Ch. 437, Sec. 1 (part); New.)

Sec. 8277.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Harris County created under Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 437, Sec. 1 (part).)

Sec. 8277.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 437, Secs. 1 (part), 3.)

Sec. 8277.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 437, Acts of the 62nd Legislature, Regular Session, 1971, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 62nd Leg., R.S., Ch. 437, Sec. 2; New.)

[Sections 8277.005-8277.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8277.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 62nd Leg., R.S., Ch. 437, Sec. 6 (part).)

[Sections 8277.052-8277.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8277.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred by general law applicable to a municipal utility district, including Chapters 49 and 54, Water Code. (Acts 62nd Leg., R.S., Ch. 437, Sec. 5 (part); New.) CHAPTER 8278. HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 132 OF HARRIS COUNTY, TEXAS NO. 132 OF HARRIS COUNTY, TEXAS SUBCHAPTER A. GENERAL PROVISIONS Sec. 8278.001. DEFINITIONS Sec. 8278.002. NATURE OF DISTRICT Sec. 8278.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8278.004. DISTRICT TERRITORY Sec. 8278.005. EXPANSION OF DISTRICT Sec. 8278.006. STATE POLICY REGARDING WASTE DISPOSAL

[Sections 8278.007-8278.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 8278.051. COMPOSITION OF BOARD Sec. 8278.052. APPOINTMENT OF TREASURER Sec. 8278.053. DIRECTOR'S AND TREASURER'S BONDS Sec. 8278.054. ABSENCE OR INACTION OF BOARD PRESIDENT Sec. 8278.055. DISTRICT OFFICE

[Sections 8278.056-8278.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8278.101. MUNICIPAL UTILITY DISTRICT POWERS Sec. 8278.102. ADDITIONAL POWERS Sec. 8278.103. EMINENT DOMAIN Sec. 8278.104. COST OF RELOCATING OR ALTERING PROPERTY Sec. 8278.105. NOTICE OF ELECTION

[Sections 8278.106-8278.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8278.151. TAX METHOD Sec. 8278.152. DISTRICT ACCOUNTS Sec. 8278.153. FISCAL YEAR Sec. 8278.154. COPY OF AUDIT REPORT Sec. 8278.155. PAYMENT OF TAX OR ASSESSMENT NOT

REQUIRED Sec. 8278.156. DEPOSITORY

[Sections 8278.157-8278.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 8278.201. AUTHORITY TO ISSUE BONDS Sec. 8278.202. LOST OR MUTILATED BONDS Sec. 8278.203. USE OF BOND PROCEEDS DURING

CONSTRUCTION Sec. 8278.204. REFUNDING BONDS

CHAPTER 8278. HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT

NO. 132 OF HARRIS COUNTY, TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8278.001. 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 Harris County Water Control and Improvement District No. 132 of Harris County, Texas. (Acts 61st Leg., R.S., Ch. 144, Sec. 1 (part); New.)

Sec. 8278.002. NATURE OF DISTRICT. The district is a municipal utility district and a conservation and reclamation district in Harris County created under Section 59, Article XVI, Texas Constitution. (Acts 61st Leg., R.S., Ch. 144, Sec. 1 (part); New.)

Sec. 8278.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution.

(d) The accomplishment of the purposes stated in this chapter is for the benefit of the people of this state and for the improvement of their property and industries. The district in carrying out the purposes of this chapter will be performing an essential public function under the Texas Constitution. (Acts 61st Leg., R.S., Ch. 144, Secs. 1 (part), 4, 22 (part).)

Sec. 8278.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 2, Chapter 144, Acts of the 61st Legislature, Regular Session, 1969, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code;

(3) Section 9, Chapter 144, Acts of the 61st Legislature, Regular Session, 1969; or

(4) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or the board. (Acts 61st Leg., R.S., Ch. 144, Sec. 3; New.)

Sec. 8278.005. EXPANSION OF DISTRICT. (a) If land is annexed to the district under Section 49.301, Water Code, the board may require the petitioners to:

(1) assume the petitioners' pro rata share of the voted but unissued bonds of the district; and

(2) authorize the board to impose a tax on the petitioners' property to pay for the bonds after the bonds have been issued.

(b) If land is annexed to the district under Section 49.302, Water Code, the board may submit to the voters of the area to be annexed a proposition on the question of the assumption by the area to be annexed of its part of the voted but not yet issued or sold tax or tax-revenue bonds of the district and the imposition of an ad valorem tax on taxable property in the area to be annexed along with a tax in the rest of the district for the payment of the bonds.

(c) If the petitioners consent or if the election results favorably, the district may issue its voted but unissued tax or tax-revenue bonds regardless of changes to district boundaries since the original voting or authorization of the bonds. (Acts 61st Leg., R.S., Ch. 144, Sec. 9.)

Sec. 8278.006. 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 effect on state water quality caused by the construction and operation of numerous small waste collection, treatment, and disposal facilities. (Acts 61st Leg., R.S., Ch. 144, Sec. 5 (part).)

[Sections 8278.007-8278.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 8278.051. COMPOSITION OF BOARD. The board consists of five elected directors. (Acts 61st Leg., R.S., Ch. 144, Sec. 10 (part).)

Sec. 8278.052. APPOINTMENT OF TREASURER. The board may appoint the treasurer. (Acts 61st Leg., R.S., Ch. 144, Sec. 10 (part).)

Sec. 8278.053. DIRECTOR'S AND TREASURER'S BONDS. (a) Each director shall qualify by giving bond in the amount of $5,000 for the faithful performance of the director's duties.

(b) The treasurer shall give bond in the amount required by the board. The treasurer's bond shall be conditioned on the treasurer's faithful accounting for all money that comes into the treasurer's custody as treasurer of the district. (Acts 61st Leg., R.S., Ch. 144, Sec. 10 (part).)

Sec. 8278.054. ABSENCE OR INACTION OF BOARD PRESIDENT. (a) When the board president is absent or fails or declines to act, the board vice president shall perform all duties and exercise all power this chapter or general law gives the president.

(b) If the board president is absent from a board meeting:

(1) the board vice president may sign an order or other action adopted at the meeting; or

(2) the board may authorize the president to sign the order or other action. (Acts 61st Leg., R.S., Ch. 144, Sec. 10 (part).)

Sec. 8278.055. DISTRICT OFFICE. (a) Except as provided by this section, the board shall designate, establish, and maintain a district office as provided by Section 49.062, Water Code.

(b) The board may establish a second district office outside the district. If the board establishes a second district office, the board shall give notice of the location of that office by:

(1) filing a copy of the board resolution that establishes the location of the office:

(A) with the Texas Commission on Environmental Quality; and

(B) in the municipal utility district records of the county in which the district is located; and

(2) publishing notice of the location of the office in a newspaper of general circulation in the county in which the district is located.

(c) A district office that is a private residence, office, or dwelling is a public place for matters relating to the district's business.

(d) The board shall provide notice of any change in the location of the district office outside the district in the manner required by Subsection (b). (Acts 61st Leg., R.S., Ch. 144, Sec. 15.)

[Sections 8278.056-8278.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8278.101. MUNICIPAL UTILITY DISTRICT POWERS. (a) The district has all of the rights, powers, privileges, and functions conferred and imposed by the general law of this state relating to municipal utility districts created under Section 59, Article XVI, Texas Constitution, including those conferred by Chapters 49 and 54, Water Code.

(b) The district may exercise inside or outside the district's boundaries any of the rights or powers granted by this chapter or under the general law relating to municipal utility districts, including the provision of water or sewerage service. (Acts 61st Leg., R.S., Ch. 144, Secs. 5 (part), 16 (part).)

Sec. 8278.102. ADDITIONAL POWERS. (a) The district may:

(1) make, purchase, construct, lease, or otherwise acquire property, works, facilities, existing improvements, or improvements to be made, constructed, or acquired that are:

(A) inside or outside the district's boundaries; and

(B) necessary or useful to carry out the powers granted by this chapter or general law; or

(2) enter into a contract with a person on terms the board considers desirable, fair, and advantageous for:

(A) the purchase or sale of water;

(B) the transportation, treatment, and disposal of the domestic, industrial, or communal wastes of the district or others;

(C) the continuing and orderly development of land and property in the district through the purchase, construction, or installation of facilities, works, or improvements that the district is otherwise authorized to do or perform so that, to the greatest extent reasonably possible, considering sound engineering and economic practices, all of the land and property may ultimately receive the services of the facilities, works, or improvements; and

(D) the performance of any of the powers granted by this chapter or the general law relating to municipal utility districts.

(b) A contract under Subsection (a)(2) may not have a duration of more than 40 years. (Acts 61st Leg., R.S., Ch. 144, Sec. 5 (part).)

Sec. 8278.103. EMINENT DOMAIN. The district may exercise the power of eminent domain only in the county in which the district is located. (Acts 61st Leg., R.S., Ch. 144, Sec. 13 (part).)

Sec. 8278.104. COST OF RELOCATING OR ALTERING PROPERTY. (a) In this section, "sole expense" means the actual cost of relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of a facility described by Subsection (b) in providing comparable replacement without enhancement of the facility, after deducting from that cost the net salvage value of the old facility.

(b) If the district's exercise of the power of eminent domain makes necessary the relocation, raising, lowering, rerouting, changing the grade, or alteration of the construction of a highway, a railroad, an electric transmission line, a telegraph or telephone property or facility, or a pipeline, the necessary action shall be accomplished at the sole expense of the district. (Acts 61st Leg., R.S., Ch. 144, Sec. 13 (part).)

Sec. 8278.105. NOTICE OF ELECTION. The board president or secretary may give notice of an election. (Acts 61st Leg., R.S., Ch. 144, Sec. 19 (part).)

[Sections 8278.106-8278.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8278.151. TAX METHOD. (a) The district shall use the ad valorem plan of taxation.

(b) The board is not required to call or hold a hearing on the adoption of a plan of taxation. (Acts 61st Leg., R.S., Ch. 144, Sec. 8.)

Sec. 8278.152. DISTRICT ACCOUNTS. The district shall keep a complete system of the district's accounts. (Acts 61st Leg., R.S., Ch. 144, Sec. 14 (part).)

Sec. 8278.153. FISCAL YEAR. The fiscal year of the district is from January 1 to December 31 of the same year. (Acts 61st Leg., R.S., Ch. 144, Sec. 14 (part).)

Sec. 8278.154. COPY OF AUDIT REPORT. A copy of the audit report prepared under Subchapter G, Chapter 49, Water Code, shall be delivered:

(1) to each director; and

(2) to a holder of at least 25 percent of the outstanding bonds of the district, on request. (Acts 61st Leg., R.S., Ch. 144, Sec. 14 (part); New.)

Sec. 8278.155. PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED. The district is not required to pay a tax or assessment on:

(1) district property; or

(2) a purchase made by the district. (Acts 61st Leg., R.S., Ch. 144, Sec. 22 (part).)

Sec. 8278.156. DEPOSITORY. (a) The board shall select one or more banks in this state to act as depository for the district's money.

(b) To the extent that money in the depository bank is not insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by law for the security of county funds.

(c) A director may be a shareholder in a bank that is a depository of district money. (Acts 61st Leg., R.S., Ch. 144, Sec. 14 (part).)

[Sections 8278.157-8278.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 8278.201. AUTHORITY TO ISSUE BONDS. The district may issue bonds to provide water and sewer service to areas inside or outside the boundaries of the district, regardless of whether the areas are contiguous or noncontiguous. (Acts 61st Leg., R.S., Ch. 144, Sec. 16 (part).)

Sec. 8278.202. LOST OR MUTILATED BONDS. A trust indenture securing bonds issued under this chapter may provide for the issuance of bonds to replace lost or mutilated bonds. (Acts 61st Leg., R.S., Ch. 144, Sec. 12 (part).)

Sec. 8278.203. USE OF BOND PROCEEDS DURING CONSTRUCTION. (a) The district may appropriate or set aside out of the proceeds from the sale of any bonds issued under this chapter an amount for the payment of interest, administrative, and operating expenses expected to accrue during a period of construction, as may be provided in the bond orders or resolutions.

(b) For purposes of this section, the period of construction may not exceed three years. (Acts 61st Leg., R.S., Ch. 144, Sec. 12 (part).)

Sec. 8278.204. REFUNDING BONDS. (a) By order or resolution adopted by the board, the district may issue tax or revenue refunding bonds or tax-revenue refunding bonds to refund revenue bonds or tax-revenue bonds, whether original bonds or refunding bonds, previously issued by the district.

(b) The comptroller shall register the refunding bonds on the surrender and cancellation of the bonds to be refunded.

(c) Instead of issuing bonds to be registered on the surrender and cancellation of the bonds to be refunded, the district, in the order or resolution authorizing the issuance of the refunding bonds, may provide for the sale of the refunding bonds and the deposit of the proceeds in the place or places where the bonds to be refunded are payable. In that case, the refunding bonds may be issued if an amount sufficient to pay the principal of and interest on the bonds to be refunded to their maturity dates, or to their option dates if according to their terms the bonds have been called for payment before maturity, has been deposited in the place or places where the bonds to be refunded are payable, and the comptroller shall register the refunding bonds without the surrender and cancellation of the bonds to be refunded. (Acts 61st Leg., R.S., Ch. 144, Sec. 12 (part).) CHAPTER 8279. HORSEPEN BAYOU MUNICIPAL UTILITY DISTRICT OF HARRIS COUNTY, TEXAS SUBCHAPTER A. GENERAL PROVISIONS Sec. 8279.001. DEFINITIONS Sec. 8279.002. NATURE OF DISTRICT Sec. 8279.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8279.004. DISTRICT TERRITORY Sec. 8279.005. EXPANSION OF DISTRICT Sec. 8279.006. STATE POLICY REGARDING WASTE DISPOSAL

[Sections 8279.007-8279.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 8279.051. COMPOSITION OF BOARD Sec. 8279.052. APPOINTMENT OF TREASURER Sec. 8279.053. DIRECTOR'S AND TREASURER'S BONDS Sec. 8279.054. ABSENCE OR INACTION OF BOARD PRESIDENT Sec. 8279.055. DISTRICT OFFICE

[Sections 8279.056-8279.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8279.101. MUNICIPAL UTILITY DISTRICT POWERS Sec. 8279.102. ADDITIONAL POWERS Sec. 8279.103. EMINENT DOMAIN Sec. 8279.104. COST OF RELOCATING OR ALTERING PROPERTY Sec. 8279.105. NOTICE OF ELECTION

[Sections 8279.106-8279.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8279.151. TAX METHOD Sec. 8279.152. DISTRICT ACCOUNTS Sec. 8279.153. COPY OF AUDIT REPORT Sec. 8279.154. PAYMENT OF TAX OR ASSESSMENT NOT

REQUIRED Sec. 8279.155. DEPOSITORY

[Sections 8279.156-8279.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 8279.201. AUTHORITY TO ISSUE BONDS Sec. 8279.202. LOST OR MUTILATED BONDS Sec. 8279.203. USE OF BOND PROCEEDS DURING

CONSTRUCTION Sec. 8279.204. REFUNDING BONDS

CHAPTER 8279. HORSEPEN BAYOU MUNICIPAL UTILITY DISTRICT OF

HARRIS COUNTY, TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8279.001. 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 Horsepen Bayou Municipal Utility District of Harris County, Texas. (Acts 61st Leg., R.S., Ch. 838, Sec. 1 (part); New.)

Sec. 8279.002. NATURE OF DISTRICT. The district is a municipal utility district and a conservation and reclamation district in Harris County created under Section 59, Article XVI, Texas Constitution. (Acts 61st Leg., R.S., Ch. 838, Sec. 1 (part); New.)

Sec. 8279.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution.

(d) The accomplishment of the purposes stated in this chapter is for the benefit of the people of this state and for the improvement of their property and industries. The district in carrying out the purposes of this chapter will be performing an essential public function under the Texas Constitution. (Acts 61st Leg., R.S., Ch. 838, Secs. 1 (part), 4, 22 (part).)

Sec. 8279.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 2, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code;

(3) Section 9, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969; or

(4) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or the board. (Acts 61st Leg., R.S., Ch. 838, Sec. 3; New.)

Sec. 8279.005. EXPANSION OF DISTRICT. (a) If land is annexed to the district under Section 49.301, Water Code, the board may require the petitioners to:

(1) assume the petitioners' pro rata share of the voted but unissued bonds of the district; and

(2) authorize the board to impose a tax on the petitioners' property to pay for the bonds after the bonds have been issued.

(b) If land is annexed to the district under Section 49.302, Water Code, the board may submit to the voters of the area to be annexed a proposition on the question of the assumption by the area to be annexed of its part of the voted but not yet issued or sold tax or tax-revenue bonds of the district and the imposition of an ad valorem tax on taxable property in the area to be annexed along with a tax in the rest of the district for the payment of the bonds.

(c) If the petitioners consent or if the election results favorably, the district may issue its voted but unissued tax or tax-revenue bonds regardless of changes to district boundaries since the original voting or authorization of the bonds. (Acts 61st Leg., R.S., Ch. 838, Sec. 9.)

Sec. 8279.006. 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 effect on state water quality caused by the construction and operation of numerous small waste collection, treatment, and disposal facilities. (Acts 61st Leg., R.S., Ch. 838, Sec. 5 (part).)

[Sections 8279.007-8279.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 8279.051. COMPOSITION OF BOARD. The board consists of five elected directors. (Acts 61st Leg., R.S., Ch. 838, Sec. 10 (part).)

Sec. 8279.052. APPOINTMENT OF TREASURER. The board may appoint the treasurer. (Acts 61st Leg., R.S., Ch. 838, Sec. 10 (part).)

Sec. 8279.053. DIRECTOR'S AND TREASURER'S BONDS. (a) Each director shall qualify by giving bond in the amount of $5,000 for the faithful performance of the director's duties.

(b) The treasurer shall give bond in the amount required by the board. The treasurer's bond shall be conditioned on the treasurer's faithful accounting for all money that comes into the treasurer's custody as treasurer of the district. (Acts 61st Leg., R.S., Ch. 838, Sec. 10 (part).)

Sec. 8279.054. ABSENCE OR INACTION OF BOARD PRESIDENT. (a) When the board president is absent or fails or declines to act, the board vice president shall perform all duties and exercise all power this chapter or general law gives the president.

(b) If the board president is absent from a board meeting:

(1) the board vice president may sign an order or other action adopted at the meeting; or

(2) the board may authorize the president to sign the order or other action. (Acts 61st Leg., R.S., Ch. 838, Sec. 10 (part).)

Sec. 8279.055. DISTRICT OFFICE. (a) Except as provided by this section, the board shall designate, establish, and maintain a district office as provided by Section 49.062, Water Code.

(b) The board may establish a second district office outside the district. If the board establishes a second district office, the board shall give notice of the location of that office by:

(1) filing a copy of the board resolution that establishes the location of the office:

(A) with the Texas Commission on Environmental Quality; and

(B) in the municipal utility district records of the county in which the district is located; and

(2) publishing notice of the location of the office in a newspaper of general circulation in the county in which the district is located.

(c) A district office that is a private residence, office, or dwelling is a public place for matters relating to the district's business.

(d) The board shall provide notice of any change in the location of the district office outside the district in the manner required by Subsection (b). (Acts 61st Leg., R.S., Ch. 838, Sec. 15.)

[Sections 8279.056-8279.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8279.101. MUNICIPAL UTILITY DISTRICT POWERS. (a) The district has all of the rights, powers, privileges, and functions conferred and imposed by the general law of this state relating to municipal utility districts created under Section 59, Article XVI, Texas Constitution, including those conferred by Chapters 49 and 54, Water Code.

(b) The district may exercise inside or outside the district's boundaries any of the rights or powers granted by this chapter or under the general law relating to municipal utility districts, including the provision of water or sewerage service. (Acts 61st Leg., R.S., Ch. 838, Secs. 5 (part), 16 (part).)

Sec. 8279.102. ADDITIONAL POWERS. (a) The district may:

(1) make, purchase, construct, lease, or otherwise acquire property, works, facilities, existing improvements, or improvements to be made, constructed, or acquired that are:

(A) inside or outside the district's boundaries; and

(B) necessary to carry out the powers granted by this chapter or general law; or

(2) enter into a contract with a person on terms the board considers desirable, fair, and advantageous for:

(A) the purchase or sale of water;

(B) the transportation, treatment, and disposal of the domestic, industrial, or communal wastes of the district or others;

(C) the continuing and orderly development of land and property in the district through the purchase, construction, or installation of facilities, works, or improvements that the district is otherwise authorized to do or perform so that, to the greatest extent reasonably possible, considering sound engineering and economic practices, all of the land and property may ultimately receive the services of the facilities, works, or improvements; and

(D) the performance of any of the powers granted by this chapter or the general law relating to municipal utility districts.

(b) A contract under Subsection (a)(2) may not have a duration of more than 40 years. (Acts 61st Leg., R.S., Ch. 838, Sec. 5 (part).)

Sec. 8279.103. EMINENT DOMAIN. The district may exercise the power of eminent domain only in a county in which the district is located. (Acts 61st Leg., R.S., Ch. 838, Sec. 13 (part).)

Sec. 8279.104. COST OF RELOCATING OR ALTERING PROPERTY. (a) In this section, "sole expense" means the actual cost of relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of a facility described by Subsection (b) in providing comparable replacement without enhancement of the facility, after deducting from that cost the net salvage value of the old facility.

(b) If the district's exercise of the power of eminent domain makes necessary the relocation, raising, rerouting, changing the grade, or alteration of the construction of a highway, a railroad, an electric transmission line, a telegraph or telephone property or facility, or a pipeline, the necessary action shall be accomplished at the sole expense of the district. (Acts 61st Leg., R.S., Ch. 838, Sec. 13 (part).)

Sec. 8279.105. NOTICE OF ELECTION. The board president or secretary may give notice of an election. (Acts 61st Leg., R.S., Ch. 838, Sec. 19 (part).)

[Sections 8279.106-8279.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8279.151. TAX METHOD. (a) The district shall use the ad valorem plan of taxation.

(b) The board is not required to call or hold a hearing on the adoption of a plan of taxation. (Acts 61st Leg., R.S., Ch. 838, Sec. 8.)

Sec. 8279.152. DISTRICT ACCOUNTS. The district shall keep a complete system of the district's accounts. (Acts 61st Leg., R.S., Ch. 838, Sec. 14 (part).)

Sec. 8279.153. COPY OF AUDIT REPORT. A copy of the audit report prepared under Subchapter G, Chapter 49, Water Code, shall be delivered:

(1) to each director; and

(2) to a holder of at least 25 percent of the outstanding bonds of the district, on request. (Acts 61st Leg., R.S., Ch. 838, Sec. 14 (part); New.)

Sec. 8279.154. PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED. The district is not required to pay a tax or assessment on:

(1) district property; or

(2) a purchase made by the district. (Acts 61st Leg., R.S., Ch. 838, Sec. 22 (part).)

Sec. 8279.155. DEPOSITORY. (a) The board shall select one or more banks in this state to act as depository for the district's money.

(b) To the extent that money in the depository bank is not insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by law for the security of county funds.

(c) A director may be a shareholder in a bank that is a depository of district money. (Acts 61st Leg., R.S., Ch. 838, Sec. 14 (part).)

[Sections 8279.156-8279.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 8279.201. AUTHORITY TO ISSUE BONDS. The district may issue bonds to provide water and sewer service to areas inside or outside the boundaries of the district, regardless of whether the areas are contiguous or noncontiguous. (Acts 61st Leg., R.S., Ch. 838, Sec. 16 (part).)

Sec. 8279.202. LOST OR MUTILATED BONDS. A trust indenture securing bonds issued under this chapter may provide for the issuance of bonds to replace lost or mutilated bonds. (Acts 61st Leg., R.S., Ch. 838, Sec. 12 (part).)

Sec. 8279.203. USE OF BOND PROCEEDS DURING CONSTRUCTION. (a) The district may appropriate or set aside out of the proceeds from the sale of any bonds issued under this chapter an amount for the payment of interest, administrative, and operating expenses expected to accrue during a period of construction, as may be provided in the bond orders or resolutions.

(b) For purposes of this section, the period of construction may not exceed three years. (Acts 61st Leg., R.S., Ch. 838, Sec. 12 (part).)

Sec. 8279.204. REFUNDING BONDS. (a) By order or resolution adopted by the board, the district may issue revenue refunding bonds or tax-revenue refunding bonds to refund revenue bonds or tax-revenue bonds, whether original bonds or refunding bonds, previously issued by the district.

(b) The comptroller shall register the refunding bonds on the surrender and cancellation of the bonds to be refunded.

(c) Instead of issuing bonds to be registered on the surrender and cancellation of the bonds to be refunded, the district, in the order or resolution authorizing the issuance of the refunding bonds, may provide for the sale of the refunding bonds and the deposit of the proceeds in the place or places where the bonds to be refunded are payable. In that case, the refunding bonds may be issued if an amount sufficient to pay the principal of and interest on the bonds to be refunded to their maturity dates, or to their option dates if according to their terms the bonds have been called for payment before maturity, has been deposited in the place or places where the bonds to be refunded are payable, and the comptroller shall register the refunding bonds without the surrender and cancellation of the bonds to be refunded. (Acts 61st Leg., R.S., Ch. 838, Sec. 12 (part).) CHAPTER 8280. ISAACSON MUNICIPAL UTILITY DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8280.001. DEFINITIONS Sec. 8280.002. NATURE OF DISTRICT Sec. 8280.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8280.004. DISTRICT TERRITORY

[Sections 8280.005-8280.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8280.051. COMPOSITION OF BOARD; TERMS

[Sections 8280.052-8280.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8280.101. MUNICIPAL UTILITY DISTRICT POWERS AND

DUTIES

CHAPTER 8280. ISAACSON MUNICIPAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8280.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means Isaacson Municipal Utility District. (Acts 71st Leg., R.S., Ch. 741, Sec. 2; New.)

Sec. 8280.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Wharton County created under Section 59, Article XVI, Texas Constitution. (Acts 71st Leg., R.S., Ch. 741, Secs. 1(a) (part), (b) (part).)

Sec. 8280.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 71st Leg., R.S., Ch. 741, Secs. 1(b) (part), 5.)

Sec. 8280.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 3, Acts of the 71st Legislature, Regular Session, 1989, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in the field notes or in copying the field notes in the legislative process does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to impose a tax; or

(3) the legality or operation of the district or its governing body. (Acts 71st Leg., R.S., Ch. 741, Sec. 4; New.)

[Sections 8280.005-8280.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8280.051. COMPOSITION OF BOARD; TERMS. (a) The district is governed by a board of five directors.

(b) Directors serve staggered four-year terms. (Acts 71st Leg., R.S., Ch. 741, Secs. 7(a), (d).)

[Sections 8280.052-8280.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8280.101. MUNICIPAL UTILITY DISTRICT POWERS AND DUTIES. The district has the rights, powers, privileges, functions, and duties provided by the general law of this state, including Chapters 49, 50, and 54, Water Code, applicable to a municipal utility district created under Section 59, Article XVI, Texas Constitution. (Acts 71st Leg., R.S., Ch. 741, Sec. 6(a) (part); New.) CHAPTER 8281. EAST CEDAR CREEK FRESH WATER SUPPLY DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8281.001. DEFINITION Sec. 8281.002. NATURE OF DISTRICT Sec. 8281.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8281.004. DISTRICT TERRITORY

[Sections 8281.005-8281.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8281.051. COMPOSITION OF BOARD Sec. 8281.052. VACANCIES

[Sections 8281.053-8281.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8281.101. MUNICIPAL UTILITY DISTRICT POWERS Sec. 8281.102. WATER AND SEWER SYSTEMS Sec. 8281.103. LIMITATION ON PROVIDING WATER TO

CERTAIN USERS Sec. 8281.104. AGRICULTURAL PRODUCTS Sec. 8281.105. VOTER APPROVAL OF TAXES REQUIRED

CHAPTER 8281. EAST CEDAR CREEK FRESH WATER SUPPLY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8281.001. DEFINITION. In this chapter, "district" means the East Cedar Creek Fresh Water Supply District. (Acts 65th Leg., R.S., Ch. 696, Sec. 1 (part).)

Sec. 8281.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Henderson County created under Section 59, Article XVI, Texas Constitution. (Acts 65th Leg., R.S., Ch. 696, Sec. 1 (part).)

Sec. 8281.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects that are to be accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 65th Leg., R.S., Ch. 696, Secs. 1 (part), 4.)

Sec. 8281.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 2, Chapter 696, Acts of the 65th Legislature, Regular Session, 1977, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or any other mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on a bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 65th Leg., R.S., Ch. 696, Sec. 3; New.)

[Sections 8281.005-8281.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8281.051. COMPOSITION OF BOARD. The board of directors of the district is composed of seven elected directors. (Acts 65th Leg., R.S., Ch. 696, Sec. 7 (part).)

Sec. 8281.052. VACANCIES. The Commissioners Court of Henderson County shall appoint directors to fill all vacancies on the board when the number of qualified directors is fewer than four. (Acts 65th Leg., R.S., Ch. 696, Sec. 7 (part).)

[Sections 8281.053-8281.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8281.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions provided by general law applicable to a municipal utility district created under Section 59, Article XVI, Texas Constitution, including Chapters 49 and 54, Water Code. (Acts 65th Leg., R.S., Ch. 696, Sec. 5 (part); New.)

Sec. 8281.102. WATER AND SEWER SYSTEMS. (a) The district may acquire, and may improve or extend, any existing water or sewer system that serves all or part of the district territory or may construct a water or sewer system to serve the inhabitants of the county in which the district is located.

(b) A contract to acquire an existing water or sewer facility may be made on terms approved by the contracting parties. (Acts 65th Leg., R.S., Ch. 696, Sec. 6 (part).)

Sec. 8281.103. LIMITATION ON PROVIDING WATER TO CERTAIN USERS. Notwithstanding any other provision of this chapter, the district may not compete with the City of Mabank in providing water to household users unless the district receives permission from the Public Utility Commission of Texas, with the consent of that city. (Acts 65th Leg., R.S., Ch. 696, Sec. 5A.)

Sec. 8281.104. AGRICULTURAL PRODUCTS. The district may produce agricultural products other than livestock on property the district owns or controls and may market those products. (Acts 65th Leg., R.S., Ch. 696, Sec. 5B.)

Sec. 8281.105. VOTER APPROVAL OF TAXES REQUIRED. The district may not impose a tax unless the tax has been approved by the voters at an election called for that purpose. (Acts 65th Leg., R.S., Ch. 696, Sec. 6 (part).) CHAPTER 8282. FALCON'S LAIR UTILITY AND RECLAMATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8282.001. DEFINITIONS Sec. 8282.002. NATURE OF DISTRICT Sec. 8282.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

[Sections 8282.004-8282.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS TO DISTRICT TERRITORY Sec. 8282.051. DISTRICT TERRITORY Sec. 8282.052. CITY APPROVAL REQUIRED FOR ANNEXATION

[Sections 8282.053-8282.100 reserved for expansion]

SUBCHAPTER C. DISTRICT ADMINISTRATION Sec. 8282.101. COMPOSITION OF BOARD; TERMS Sec. 8282.102. VACANCY Sec. 8282.103. OFFICERS AND ASSISTANTS Sec. 8282.104. COMPENSATION Sec. 8282.105. BOARD PROCEDURES

[Sections 8282.106-8282.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES Sec. 8282.151. MUNICIPAL UTILITY DISTRICT POWERS Sec. 8282.152. AUTHORITY TO CONSTRUCT OR ACQUIRE WORKS

AND FACILITIES Sec. 8282.153. ROADS Sec. 8282.154. IMPROVEMENT PROJECTS AND SERVICES Sec. 8282.155. FIRE DEPARTMENT Sec. 8282.156. DISTRICT CONTRACTS Sec. 8282.157. GENERAL CONTRACTING AUTHORITY Sec. 8282.158. WATER AND SEWER CONTRACTS Sec. 8282.159. EMINENT DOMAIN Sec. 8282.160. PROVISION OF WATER AND SEWER SERVICES

BY CITY Sec. 8282.161. REGULATORY AUTHORITY Sec. 8282.162. POLICE PROTECTION Sec. 8282.163. DISTRICT ELECTIONS Sec. 8282.164. APPLICABILITY OF CITY ORDINANCES,

CODES, RESOLUTIONS, AND RULES

[Sections 8282.165-8282.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS Sec. 8282.201. GENERAL FINANCIAL POWERS Sec. 8282.202. TAX METHOD Sec. 8282.203. TAX COLLECTOR Sec. 8282.204. USE OF MAINTENANCE TAX Sec. 8282.205. DEPOSIT AND SECURITY OF DISTRICT MONEY Sec. 8282.206. INVESTMENT OF DISTRICT MONEY

[Sections 8282.207-8282.250 reserved for expansion]

SUBCHAPTER F. BONDS Sec. 8282.251. AUTHORITY TO ISSUE BONDS Sec. 8282.252. AUTHORITY TO ISSUE BONDS FOR ROADS AND

TURNPIKES Sec. 8282.253. AUTHORITY TO ISSUE BONDS FOR

IMPROVEMENT PROJECTS OR SERVICES Sec. 8282.254. OBLIGATIONS

CHAPTER 8282. FALCON'S LAIR UTILITY AND RECLAMATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8282.001. DEFINITIONS. In this chapter:

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

(2) "City" means the city of Mesquite.

(3) "District" means the Falcon's Lair Utility and Reclamation District. (Acts 69th Leg., R.S., Ch. 935, Secs. 1(a) (part), 2.)

Sec. 8282.002. NATURE OF DISTRICT. The district is a conservation and reclamation district created under Section 52, Article III, and Section 59, Article XVI, Texas Constitution. (Acts 69th Leg., R.S., Ch. 935, Sec. 1(a) (part).)

Sec. 8282.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by this chapter.

(c) The creation of the district is essential to accomplish the purposes of Section 52, Article III, and Section 59, Article XVI, Texas Constitution. (Acts 69th Leg., R.S., Ch. 935, Secs. 3, 6.)

[Sections 8282.004-8282.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS

TO DISTRICT TERRITORY

Sec. 8282.051. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 5(a), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right or power to issue bonds for the purposes for which the district is created or to pay the principal of and interest on the bonds;

(3) the district's authority to impose a tax;

(4) the validity of any contract, agreement, or obligation of the district; or

(5) the legality of the operations or proceedings of the district or the board. (Acts 69th Leg., R.S., Ch. 935, Sec. 5(b); New.)

Sec. 8282.052. CITY APPROVAL REQUIRED FOR ANNEXATION. The district must secure the approval of the city, in the form of an ordinance or resolution of the city council of the city, before final annexation of additional land to the district. (Acts 69th Leg., R.S., Ch. 935, Sec. 17 (part).)

[Sections 8282.053-8282.100 reserved for expansion]

SUBCHAPTER C. DISTRICT ADMINISTRATION

Sec. 8282.101. COMPOSITION OF BOARD; TERMS. (a) The board consists of five directors.

(b) Directors serve staggered four-year terms, with the terms of two or three directors expiring every other year. (Acts 69th Leg., R.S., Ch. 935, Secs. 9(a), (g) (part).)

Sec. 8282.102. VACANCY. (a) Except as provided by Subsection (b), if a vacancy occurs in the office of director, the remaining directors shall appoint a person to fill the vacancy until the next election of directors for the district. If the vacant position is not regularly scheduled to be filled at that election, the person elected at that election to fill the vacancy serves only for the unexpired term.

(b) If the number of qualified directors by reason of vacancies is fewer than three, the city council of the city, on petition of the owners of a majority in value of the land in the district, as shown by the tax rolls of the city, shall appoint the necessary number of directors to fill all vacancies on the board.

(c) The city may not be found liable for an act relating to a district obligation or the operation of the district because of the city's appointment of a director as prescribed by Subsection (b). (Acts 69th Leg., R.S., Ch. 935, Secs. 9(d), (h).)

Sec. 8282.103. OFFICERS AND ASSISTANTS. (a) The board shall reorganize and elect officers after each election and at any other time the board considers appropriate.

(b) The board may designate one or more assistant secretaries and an assistant treasurer. An assistant secretary or assistant treasurer is not required to be a director.

(c) The board secretary or one of the assistant secretaries:

(1) shall keep the minutes of the meetings of the board and all official records of the board; and

(2) may certify as to the accuracy or authenticity of any actions, proceedings, minutes, or records of the board or of the district. (Acts 69th Leg., R.S., Ch. 935, Secs. 10(a) (part), (b).)

Sec. 8282.104. COMPENSATION. Unless the board by resolution increases the fee to an amount authorized by Section 49.060, Water Code, each director is entitled to receive compensation in an amount not to exceed $50 for each meeting of the board, as determined by the board. (Acts 69th Leg., R.S., Ch. 935, Sec. 11 (part).)

Sec. 8282.105. BOARD PROCEDURES. The board shall provide the method of execution of all contracts, the signing of checks, and the handling of any other matter approved by the board, as shown in the district's official minutes. (Acts 69th Leg., R.S., Ch. 935, Sec. 10(a) (part).)

[Sections 8282.106-8282.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES

Sec. 8282.151. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred, contemplated, and described by Section 59, Article XVI, Texas Constitution, including the rights, powers, privileges, and functions conferred by the general law applicable to municipal utility districts operating under Chapter 54, Water Code. (Acts 69th Leg., R.S., Ch. 935, Sec. 7 (part).)

Sec. 8282.152. AUTHORITY TO CONSTRUCT OR ACQUIRE WORKS AND FACILITIES. Subject to compliance with applicable codes, ordinances, resolutions, and rules of the city, the district may plan, lay out, purchase, construct, acquire, own, operate, maintain, repair, or improve, inside or outside the boundaries of the district, any works, improvements, facilities, plants, equipment, and appliances, including any administrative buildings, properties, and facilities, any permits, franchises, licenses, or contract or property rights, and any levees, drains, waterways, lakes, reservoirs, channels, conduits, sewers, dams, storm water detention facilities, or other similar facilities and improvements, whether for municipal, industrial, agricultural, recreational, conservation, reclamation, or flood control purposes, that are necessary, helpful, or incidental to the exercise of any right, power, privilege, or function provided by this chapter. (Acts 69th Leg., R.S., Ch. 935, Sec. 8(e).)

Sec. 8282.153. ROADS. (a) To the extent authorized by Section 52, Article III, Texas Constitution, the district may provide for the construction, maintenance, and operation of a macadamized, graveled, or paved road or turnpike, or a work, facility, or improvement in aid of a road or turnpike, inside or outside the district's boundaries.

(b) Subject to compliance with Sections 8282.252(a) and (b), the district may issue, sell, and deliver bonds, notes, or other district obligations for a purpose described by Subsection (a) and may impose taxes to pay the bonds.

(c) Without the city's consent and approval, the district may not undertake to construct, maintain, operate, repair, reconstruct, cross, or intersect any city street or road.

(d) Sections 49.181, 49.182, and 54.5161, Water Code, do not apply to projects undertaken by the district under this section. (Acts 69th Leg., R.S., Ch. 935, Secs. 8(b), 19(c) (part).)

Sec. 8282.154. IMPROVEMENT PROJECTS AND SERVICES. (a) The board may undertake an improvement project or service that confers a special benefit on all or a definable part of the district.

(b) The board may levy and collect special assessments on property in the area described by Subsection (a), based on the benefit conferred by the improvement project or service, to pay all or part of the cost of the project or service.

(c) An improvement project or service provided by the district may include the acquisition, construction, or financing of water, wastewater, or drainage facilities, streets, sidewalks, or roadways.

(d) Sections 375.113-375.124, Local Government Code, apply to the financing of an improvement project or service under this section. (Acts 69th Leg., R.S., Ch. 935, Sec. 20A.)

Sec. 8282.155. FIRE DEPARTMENT. (a) The district may establish, operate, and maintain a fire department to perform all firefighting activities in the district and may issue bonds and impose taxes to pay for the department and the activities, as authorized by Section 59(f), Article XVI, Texas Constitution, and Section 49.351, Water Code. For purposes of this chapter, a reference in Section 49.351, Water Code, to the Texas Commission on Environmental Quality or the executive director of the commission means the city council of the city.

(b) The city has the superior right to provide the degree of firefighting services the city considers to be in the city's best interests. (Acts 69th Leg., R.S., Ch. 935, Sec. 8(c).)

Sec. 8282.156. DISTRICT CONTRACTS. (a) Except as provided by this section, a contract for the purchase or construction of materials, machinery, or other things used to constitute the district's works, improvements, facilities, plants, equipment, or appliances must be advertised, let, and awarded as provided by Section 49.273, Water Code.

(b) If the district determines, after a contract has been awarded, that additional work is needed or that the character or type of the work or facilities should be changed, the board may authorize change orders to the contract on terms the board approves, provided the change does not increase the total cost of the contract by more than 25 percent.

(c) The district must seek informal competitive bids or proposals from at least three bidders if:

(1) the estimated amount of a proposed construction contract is more than $5,000 but less than $25,000; or

(2) the duration of a proposed construction contract is more than two years.

(d) A contract must be written and awarded to the lowest and best bidder. (Acts 69th Leg., R.S., Ch. 935, Sec. 22.)

Sec. 8282.157. GENERAL CONTRACTING AUTHORITY. (a) The district may contract with the United States, this state or its agencies, the city, any other public agency or entity, or an individual, corporation, or other entity for the operation and maintenance or the construction of any facility or improvement authorized by this chapter.

(b) A contract that obligates the district to make payments in whole or in part from ad valorem taxes, other than maintenance taxes, is subject to approval at an election held under the same procedures required for the issuance of bonds payable from ad valorem taxes. (Acts 69th Leg., R.S., Ch. 935, Secs. 23(a), (c).)

Sec. 8282.158. WATER AND SEWER CONTRACTS. (a) The district and the city may enter into, execute, and perform contracts under Section 552.014, Local Government Code, as they consider to be appropriate and mutually advantageous.

(b) A contract under this section may provide for the district's acquisition for the benefit of the city and the district's conveyance to the city of, and the city's acceptance and ownership of and payment for, all or any designated portion of any of the works, facilities, improvements, equipment, appliances, properties, and contract rights as provided by Section 552.014, Local Government Code, that:

(1) the district is authorized under this chapter to purchase, acquire, construct, own, or improve; and

(2) the city, under its home-rule charter or under general law, would have been or may be authorized to purchase, acquire, construct, own, or improve in its own name or behalf. (Acts 69th Leg., R.S., Ch. 935, Sec. 24.)

Sec. 8282.159. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain in the manner, with the privileges, rights, and immunities, and subject to the conditions and limitations provided by Sections 49.222 and 49.223, Water Code, to acquire land, an easement, a right-of-way, or other property or improvement that is or may be needed to carry out the district's powers, purposes, and functions.

(b) Without the city's advance written consent and approval, the district may not begin eminent domain proceedings for a purpose described by Subsection (a).

(c) Without approval by city ordinance or resolution, the district may not exercise the power of eminent domain to acquire any land, easement, right-of-way, or other property or improvement owned by the city or any city agency or instrumentality. (Acts 69th Leg., R.S., Ch. 935, Sec. 8(d).)

Sec. 8282.160. PROVISION OF WATER AND SEWER SERVICES BY CITY. (a) Notwithstanding Section 8282.157(a), to the extent that the city considers practical, the city may provide water supply and sewer services to residential retail customers in the district and may provide water supply and wastewater treatment services to the district, under a mutually agreeable contract or otherwise.

(b) The district is responsible for an off-site extension that is required to provide water supply and sewer service. (Acts 69th Leg., R.S., Ch. 935, Sec. 23(b).)

Sec. 8282.161. REGULATORY AUTHORITY. (a) With respect to district property, the district has the regulatory and police power provided by Chapters 49 and 54, Water Code, except as limited by this section.

(b) Except with respect to any rules relating to the operation, use, or occupancy of the lakes, reservoirs, levees, channels, drains, dams, and contiguous or adjacent facilities constructed or to be constructed and owned or controlled by the district, the board may not adopt a rule that includes a penal provision to be enforced by a district peace officer unless the city has approved the adoption of the rule. The proposed rule must be presented to the city for the city's review and approval at least 30 days before the rule's effective date.

(c) The district may not adopt a penal rule that conflicts or is inconsistent with any ordinance of general applicability in the city.

(d) The district may not adopt or enforce a rule relating to the city's streets or roads. (Acts 69th Leg., R.S., Ch. 935, Secs. 26(a), (b), (c), (d); New.)

Sec. 8282.162. POLICE PROTECTION. Except for providing for the security of lakes, reservoirs, levees, channels, drains, dams, and contiguous and adjacent facilities, excluding parks and streets owned or controlled by the district, the district may not provide peace officers or have responsibility for police protection in the city's corporate limits. That function is a responsibility of the city. (Acts 69th Leg., R.S., Ch. 935, Sec. 26(e).)

Sec. 8282.163. DISTRICT ELECTIONS. (a) The board shall order each election the district is required to hold.

(b) Notice of a district election must be published once a week for two consecutive weeks in a newspaper with general circulation in the city, with the first publication occurring at least 14 days before the date of the election.

(c) A district election held for any purpose may be held separately or at the same time as an election for another purpose including a director or maintenance tax election that may be held on the same day as a bond election or another election. An election held at the same time as an election for another purpose may be called by the board in a single election order, and the results may be canvassed in a single order. (Acts 69th Leg., R.S., Ch. 935, Secs. 16(a), (c), (d).)

Sec. 8282.164. APPLICABILITY OF CITY ORDINANCES, CODES, RESOLUTIONS, AND RULES. Except as expressly provided, this chapter does not exempt the district from the terms of any applicable ordinances, codes, resolutions, or rules of the city. (Acts 69th Leg., R.S., Ch. 935, Sec. 27 (part).)

[Sections 8282.165-8282.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 8282.201. GENERAL FINANCIAL POWERS. The board may:

(1) spend and borrow money;

(2) issue bond anticipation notes and tax anticipation notes;

(3) impose maintenance taxes; and

(4) carry out all acts and exercise all powers provided by Subchapter E, Chapter 49, Water Code. (Acts 69th Leg., R.S., Ch. 935, Sec. 18.)

Sec. 8282.202. TAX METHOD. (a) The district shall use the ad valorem plan of taxation.

(b) Subchapter G, Chapter 54, Water Code, applies to all matters relating to the imposition of district taxes. (Acts 69th Leg., R.S., Ch. 935, Sec. 21.)

Sec. 8282.203. TAX COLLECTOR. (a) The board shall appoint a person as tax collector for the district and may appoint deputies considered necessary.

(b) Each person appointed under this section shall qualify by executing a bond in the amount of $10,000 payable to the district, approved by the board, and conditioned on the faithful performance of the person's duties.

(c) The board shall set the compensation for the tax collector and any deputy tax collector. (Acts 69th Leg., R.S., Ch. 935, Sec. 14.)

Sec. 8282.204. USE OF MAINTENANCE TAX. (a) The board may use and pledge the proceeds received from all or any designated portion of the district's maintenance taxes for any lawful purpose, other than the payment of the principal of or interest on bonds. Bonds must be paid from taxes imposed separately to the extent that those bonds are required to be paid from taxes.

(b) The district may not use maintenance taxes for the purpose of maintaining, repairing, operating, or improving any of the works, facilities, and improvements described by Section 8282.153 until the district has complied with Sections 8282.252(a) and (b). (Acts 69th Leg., R.S., Ch. 935, Sec. 20.)

Sec. 8282.205. DEPOSIT AND SECURITY OF DISTRICT MONEY. (a) The district's treasurer shall have district money deposited and invested in the district's depository bank or other banks or savings associations selected by the district's authorized investment officers.

(b) To the extent that deposited or invested money is not insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by law for the security of county funds. (Acts 69th Leg., R.S., Ch. 935, Secs. 15(a), (b).)

Sec. 8282.206. INVESTMENT OF DISTRICT MONEY. At the direction of the board or any other authorized district representative or investment officer, district money may be invested in direct or indirect obligations of the United States, the state, or any political subdivision of the state, or may be placed in certificates of deposit of state or national banks or savings and loan associations in this state, if that money is secured in the manner provided for the security of county funds. (Acts 69th Leg., R.S., Ch. 935, Sec. 15(c).)

[Sections 8282.207-8282.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec. 8282.251. AUTHORITY TO ISSUE BONDS. The board may issue bonds as provided by general law, including Sections 54.501-54.515 and 54.518-54.521, Water Code. (Acts 69th Leg., R.S., Ch. 935, Sec. 19(a).)

Sec. 8282.252. AUTHORITY TO ISSUE BONDS FOR ROADS AND TURNPIKES. (a) The district may not issue bonds for a purpose described by Section 8282.153 unless the bonds are approved by a vote of a two-thirds majority of the voters voting in the district or the territory to be affected by the bonds.

(b) Bonds, notes, or other district obligations issued or incurred for a purpose described by Section 8282.153 may not exceed one-fourth of the assessed valuation of the real property of the district or the territory to be affected by the bonds.

(c) Sections 49.181, 49.182, and 54.5161, Water Code, do not apply to bonds issued by the district as provided by this section. (Acts 69th Leg., R.S., Ch. 935, Secs. 19(b), (c) (part).)

Sec. 8282.253. AUTHORITY TO ISSUE BONDS FOR IMPROVEMENT PROJECTS OR SERVICES. (a) To pay all or part of the costs of an improvement project or service under Section 8282.154, the board may issue bonds in one or more series payable from and secured by ad valorem taxes, assessments, impact fees, revenues, grants, gifts, contracts, or leases or any combination of those sources of money.

(b) Bonds issued under this section may be liens on all or part of the revenue derived from improvements authorized under Section 8282.154, including installment payments of special assessments or from any other source pledged to their payment.

(c) Sections 375.202-375.206, Local Government Code, apply to bonds issued under this section. (Acts 69th Leg., R.S., Ch. 935, Secs. 19(d), (e).)

Sec. 8282.254. OBLIGATIONS. (a) In this section, "obligation" means a bond, note, lease-purchase agreement, or installment sale obligation of the district.

(b) The principal amount of the district's obligations that are payable from assessments imposed by the district may be in an amount that does not exceed the aggregate appraised value of the property in the district, as established by an independent appraisal by a member of the Appraisal Institute.

(c) The appraised value of the property in the district established for ad valorem tax purposes does not limit the principal amount of the obligations that may be issued by the district under Subsection (b).

(d) The city is not required to pay the principal of and interest on an obligation issued by the district. (Acts 69th Leg., R.S., Ch. 935, Sec. 19A.) CHAPTER 8283. GREATER TEXOMA UTILITY AUTHORITY SUBCHAPTER A. GENERAL PROVISIONS Sec. 8283.001. DEFINITIONS Sec. 8283.002. NATURE OF AUTHORITY Sec. 8283.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

[Sections 8283.004-8283.050 reserved for expansion]

SUBCHAPTER B. AUTHORITY TERRITORY; ANNEXATION Sec. 8283.051. AUTHORITY TERRITORY Sec. 8283.052. ANNEXATION

[Sections 8283.053-8283.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS Sec. 8283.101. COMPOSITION OF BOARD; TERMS Sec. 8283.102. APPOINTMENT OF DIRECTORS BY HOME-RULE

MUNICIPALITIES Sec. 8283.103. APPOINTMENT OF DIRECTORS BY

MUNICIPALITIES Sec. 8283.104. QUALIFICATIONS FOR OFFICE Sec. 8283.105. BOARD VACANCY Sec. 8283.106. REMOVAL FROM OFFICE Sec. 8283.107. VOTING REQUIREMENT

[Sections 8283.108-8283.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES Sec. 8283.151. MUNICIPAL UTILITY DISTRICT POWERS Sec. 8283.152. ACQUISITION AND USE OF PROPERTY Sec. 8283.153. WATER RIGHTS Sec. 8283.154. EMINENT DOMAIN Sec. 8283.155. GENERAL CONTRACT POWERS Sec. 8283.156. WATER, SEWER, SOLID WASTE, OR DRAINAGE

CONTRACTS; ELECTION NOT REQUIRED Sec. 8283.157. TREATMENT OF PAYMENTS UNDER CERTAIN

MUNICIPAL CORPORATION CONTRACTS Sec. 8283.158. STANDARD SPECIFICATIONS FOR FACILITIES

IN GRAYSON COUNTY Sec. 8283.159. TAX PROHIBITION

[Sections 8283.160-8283.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 8283.201. REVENUE BONDS Sec. 8283.202. BONDS FOR CERTAIN FACILITIES

CHAPTER 8283. GREATER TEXOMA UTILITY AUTHORITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8283.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the authority.

(2) "Director" means a member of the board.

(3) "Authority" means the Greater Texoma Utility Authority. (Acts 66th Leg., R.S., Ch. 97, Sec. 1 (part); New.)

Sec. 8283.002. NATURE OF AUTHORITY. (a) The authority is a conservation and reclamation district created under Section 59, Article XVI, Texas Constitution.

(b) The authority is a political subdivision of this state. (Acts 66th Leg., R.S., Ch. 97, Sec. 1 (part).)

Sec. 8283.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The authority is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the authority will benefit from the works and projects accomplished by the authority under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the authority is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 66th Leg., R.S., Ch. 97, Secs. 1 (part), 2(f).)

[Sections 8283.004-8283.050 reserved for expansion]

SUBCHAPTER B. AUTHORITY TERRITORY; ANNEXATION

Sec. 8283.051. AUTHORITY TERRITORY. The authority is composed of the territory that was included in the corporate boundaries of the cities of Denison and Sherman on May 2, 1979, as that territory may have been modified under:

(1) Section 2 or 4, Chapter 97, Acts of the 66th Legislature, Regular Session, 1979;

(2) Subchapter H, Chapter 54, Water Code;

(3) Subchapter J, Chapter 49, Water Code; or

(4) other law. (Acts 66th Leg., R.S., Ch. 97, Sec. 2(a); New.)

Sec. 8283.052. ANNEXATION. (a) The authority may annex territory only as specified by this section.

(b) A municipality, by resolution or ordinance adopted by its governing body, may request that the territory then included in its corporate limits be annexed to the authority. On receipt of the request, the board shall proceed in the manner provided by Subsections (d) and (e).

(c) Territory that is annexed to a municipality after May 2, 1979, or after annexation of the municipality to the authority may be annexed to the authority if the board determines the annexation should be considered and proceeds in the manner provided by Subsections (d) and (e).

(d) Under the circumstances described by this section, the board shall call and hold a public hearing to determine if the territory should be annexed. Notice of the hearing must be published at least:

(1) once in a newspaper of general circulation in the area of the authority and the territory proposed to be annexed; and

(2) 10 days before the date set for the hearing.

(e) If at the conclusion of the hearing the board finds that the annexation would be in the best interest of the territory to be annexed, the area in the authority, and the inhabitants of both, it shall enter an order to that effect. The order finally annexes the territory to the authority.

(f) An action to review the annexation of territory to the authority may be brought in a district court in the county where the principal office of the authority is located. An annexation may be set aside for fraud or abuse of discretion. (Acts 66th Leg., R.S., Ch. 97, Secs. 2(b), (c), (d), (e).)

[Sections 8283.053-8283.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec. 8283.101. COMPOSITION OF BOARD; TERMS. (a) The board consists of at least six and not more than nine directors appointed as follows:

(1) three directors appointed by the governing body of the City of Denison;

(2) three directors appointed by the governing body of the City of Sherman; and

(3) any directors appointed under Sections 8283.102 and 8283.103.

(b) Except for a director appointed under Section 8283.103, a director serves a two-year term that begins January 1 following the director's appointment.

(c) A director's term may not be shortened because of the annexation of a municipality under Section 8283.102 or 8283.103.

(d) The City of Denison or the City of Sherman by ordinance may provide for staggered terms for directors it appoints, but the term of an incumbent may not be shortened or be longer than two years. (Acts 66th Leg., R.S., Ch. 97, Secs. 6(a) (part), (d), (f) (part).)

Sec. 8283.102. APPOINTMENT OF DIRECTORS BY HOME-RULE MUNICIPALITIES. (a) If a home-rule municipality is annexed, the governing body of the municipality shall appoint a director whose term begins January 1 following the annexation.

(b) If more than two home-rule municipalities are annexed, those municipalities are collectively entitled to appoint two directors and shall designate their directors by any method agreed to by those municipalities. (Acts 66th Leg., R.S., Ch. 97, Sec. 6(b).)

Sec. 8283.103. APPOINTMENT OF DIRECTORS BY MUNICIPALITIES OTHER THAN HOME-RULE MUNICIPALITIES. Municipalities, other than home-rule municipalities, are collectively entitled to appoint one director and shall designate their director by any method agreed to by those municipalities. (Acts 66th Leg., R.S., Ch. 97, Sec. 6(c).)

Sec. 8283.104. QUALIFICATIONS FOR OFFICE. (a) Each director must be a qualified voter of the municipality that appoints the director.

(b) An officer, employee, or member of the governing body of a municipal corporation may not be a director. (Acts 66th Leg., R.S., Ch. 97, Secs. 6(f) (part), (h).)

Sec. 8283.105. BOARD VACANCY. A vacancy in the office of director shall be filled for the unexpired term, if applicable, by the governing body of the municipality that appointed the previous director. (Acts 66th Leg., R.S., Ch. 97, Sec. 6(f) (part).)

Sec. 8283.106. REMOVAL FROM OFFICE. (a) Under procedures adopted by board rule, the board may remove a director from office only for malfeasance in office.

(b) The procedures must be designed to guarantee due process to the director. (Acts 66th Leg., R.S., Ch. 97, Sec. 6(i).)

Sec. 8283.107. VOTING REQUIREMENT. A majority vote of the board is required to adopt any measure. (Acts 66th Leg., R.S., Ch. 97, Sec. 6(g).)

[Sections 8283.108-8283.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES

Sec. 8283.151. MUNICIPAL UTILITY DISTRICT POWERS. Except as otherwise provided by this chapter, the authority has the rights, powers, privileges, and functions conferred and imposed by the general law applicable to a municipal utility district created under Section 59, Article XVI, Texas Constitution, including those conferred by Chapters 30, 49, and 54, Water Code. (Acts 66th Leg., R.S., Ch. 97, Sec. 3(a) (part); New.)

Sec. 8283.152. ACQUISITION AND USE OF PROPERTY. The authority may operate, control, purchase, construct, lease, or acquire, inside or outside the boundaries of the authority, property, works, facilities, or improvements, whether previously existing or to be made, constructed, or acquired, that the board finds necessary to carry out the powers granted by this chapter or general law. (Acts 66th Leg., R.S., Ch. 97, Sec. 3(b) (part).)

Sec. 8283.153. WATER RIGHTS. The authority may acquire, develop, and use rights to groundwater or surface water. (Acts 66th Leg., R.S., Ch. 97, Sec. 3(b) (part).)

Sec. 8283.154. EMINENT DOMAIN. To carry out an authority power or purpose, the authority, in the manner provided by Chapter 49, Water Code, may exercise the power of eminent domain to acquire land, an easement, or other property inside or outside the authority's boundaries. (Acts 66th Leg., R.S., Ch. 97, Sec. 3(b) (part).)

Sec. 8283.155. GENERAL CONTRACT POWERS. (a) The authority may enter into a contract with a person, including a political subdivision, on terms the board considers desirable, fair, and advantageous for:

(1) the purchase or sale of raw or treated water;

(2) the purchase, lease, use, management, control, or operation of water treatment or distribution facilities or sewer collection and treatment facilities, all or part of the facilities or systems owned by the other political subdivision, in accordance with terms mutually agreed on by the governing bodies of the contracting parties; or

(3) planning, making preliminary surveys, investigations, or feasibility reports, engineering, or reports of any kind.

(b) A contract for the acquisition of an existing water or sewer facility may be made on terms approved by the contracting parties. (Acts 66th Leg., R.S., Ch. 97, Sec. 3(b) (part).)

Sec. 8283.156. WATER, SEWER, SOLID WASTE, OR DRAINAGE CONTRACTS; ELECTION NOT REQUIRED. The authority and a municipal corporation or other political subdivision may enter into a water, sewer, solid waste, or drainage contract or any combination of those contracts without the necessity of an election by any contracting party to approve the contract. (Acts 66th Leg., R.S., Ch. 97, Sec. 3(c).)

Sec. 8283.157. TREATMENT OF PAYMENTS UNDER CERTAIN MUNICIPAL CORPORATION CONTRACTS. A payment by a municipal corporation for the purchase of water or the treatment and disposal of sewage is a maintenance and operating expense of the utility system or combined systems of the municipal corporation unless the contract:

(1) provides for the municipal corporation to acquire an ownership interest in the facilities; or

(2) makes other provisions. (Acts 66th Leg., R.S., Ch. 97, Sec. 3(d).)

Sec. 8283.158. STANDARD SPECIFICATIONS FOR FACILITIES IN GRAYSON COUNTY. (a) In this section, "commission" means the Texas Commission on Environmental Quality or its successor.

(b) Subject to Subsection (f), for area in Grayson County, the authority by order may adopt standard specifications for facilities designed or constructed to:

(1) store, treat, or transport water for domestic, municipal, or industrial purposes to ensure that the facilities are adequate in design to serve the needs of the area's inhabitants;

(2) collect, treat, and dispose of sewage; or

(3) dispose of solid waste.

(c) Before the specifications become final, the board must hold a public hearing. The board must give notice of the hearing to the commission and must publish in a newspaper of general circulation in the area notice of the hearing one time at least 10 days before the date of the hearing so that any interested party may present evidence for or against a proposed specification.

(d) An appeal of an order adopting standard specifications may be made to a district court of Grayson County. The substantial evidence rule applies to the appeal.

(e) The authority is entitled to seek an injunction against:

(1) the construction of a facility, including an extension to an existing facility, if the construction does not meet the authority's standard specifications; or

(2) the operation of a facility if construction has begun and the facility does not meet those specifications.

(f) A standard specification adopted under this section does not apply to an area that, on the date the order is adopted, is located inside the corporate boundaries or the extraterritorial jurisdiction of a municipality unless approved by the governing body of the municipality.

(g) The authority shall file the standard specifications with the commission. (Acts 66th Leg., R.S., Ch. 97, Sec. 3(b) (part); New.)

Sec. 8283.159. TAX PROHIBITION. The authority may not impose a tax. (Acts 66th Leg., R.S., Ch. 97, Sec. 3(e).)

[Sections 8283.160-8283.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 8283.201. REVENUE BONDS. The authority may issue revenue bonds to carry out any of its powers, functions, or obligations. (Acts 66th Leg., R.S., Ch. 97, Sec. 5 (part).)

Sec. 8283.202. BONDS FOR CERTAIN FACILITIES. If the authority operates a facility under contract with a municipal corporation, it may, if the contract permits the issuance, issue bonds to improve or extend the facility. (Acts 66th Leg., R.S., Ch. 97, Sec. 5 (part).) CHAPTER 8284. GREENWOOD UTILITY DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8284.001. DEFINITIONS Sec. 8284.002. NATURE OF DISTRICT Sec. 8284.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8284.004. DISTRICT TERRITORY Sec. 8284.005. EXPANSION OF DISTRICT Sec. 8284.006. STATE POLICY REGARDING WASTE DISPOSAL

[Sections 8284.007-8284.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 8284.051. COMPOSITION OF BOARD Sec. 8284.052. APPOINTMENT OF TREASURER Sec. 8284.053. DIRECTOR'S AND TREASURER'S BONDS Sec. 8284.054. ABSENCE OR INACTION OF BOARD PRESIDENT Sec. 8284.055. DISTRICT OFFICE

[Sections 8284.056-8284.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8284.101. MUNICIPAL UTILITY DISTRICT POWERS Sec. 8284.102. ADDITIONAL POWERS Sec. 8284.103. EMINENT DOMAIN Sec. 8284.104. COST OF RELOCATING OR ALTERING PROPERTY Sec. 8284.105. NOTICE OF ELECTION

[Sections 8284.106-8284.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8284.151. TAX METHOD Sec. 8284.152. DISTRICT ACCOUNTS Sec. 8284.153. FISCAL YEAR Sec. 8284.154. COPY OF AUDIT REPORT Sec. 8284.155. PAYMENT OF TAX OR ASSESSMENT NOT

REQUIRED Sec. 8284.156. DEPOSITORY

[Sections 8284.157-8284.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 8284.201. LOST OR MUTILATED BONDS Sec. 8284.202. USE OF BOND PROCEEDS DURING

CONSTRUCTION Sec. 8284.203. REFUNDING BONDS

CHAPTER 8284. GREENWOOD UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8284.001. 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 Greenwood Utility District. (Acts 61st Leg., R.S., Ch. 616, Sec. 1 (part); New.)

Sec. 8284.002. NATURE OF DISTRICT. The district is a municipal utility district and a conservation and reclamation district in Harris County created under Section 59, Article XVI, Texas Constitution. (Acts 61st Leg., R.S., Ch. 616, Sec. 1 (part); New.)

Sec. 8284.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution.

(d) The accomplishment of the purposes stated in this chapter is for the benefit of the people of this state and for the improvement of their property and industries. The district in carrying out the purposes of this chapter will be performing an essential public function under the Texas Constitution. (Acts 61st Leg., R.S., Ch. 616, Secs. 1 (part), 4, 21 (part).)

Sec. 8284.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 2, Chapter 616, Acts of the 61st Legislature, Regular Session, 1969, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code;

(3) Section 9, Chapter 616, Acts of the 61st Legislature, Regular Session, 1969; or

(4) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or the board. (Acts 61st Leg., R.S., Ch. 616, Sec. 3; New.)

Sec. 8284.005. EXPANSION OF DISTRICT. (a) If land is annexed to the district under Section 49.301, Water Code, the board may require the petitioners to:

(1) assume the petitioners' pro rata share of the voted but unissued bonds of the district; and

(2) authorize the board to impose a tax on the petitioners' property to pay for the bonds after the bonds have been issued.

(b) If land is annexed to the district under Section 49.302, Water Code, the board may submit to the voters of the area to be annexed a proposition on the question of the assumption by the area to be annexed of its part of the voted but not yet issued or sold tax or tax-revenue bonds of the district and the imposition of an ad valorem tax on taxable property in the area to be annexed along with a tax in the rest of the district for the payment of the bonds.

(c) If the petitioners consent or if the election results favorably, the district may issue its voted but unissued tax or tax-revenue bonds regardless of changes to district boundaries since the original voting or authorization of the bonds. (Acts 61st Leg., R.S., Ch. 616, Sec. 9.)

Sec. 8284.006. 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 effect on state water quality caused by the construction and operation of numerous small waste collection, treatment, and disposal facilities. (Acts 61st Leg., R.S., Ch. 616, Sec. 5 (part).)

[Sections 8284.007-8284.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 8284.051. COMPOSITION OF BOARD. The board consists of five elected directors. (Acts 61st Leg., R.S., Ch. 616, Sec. 10 (part).)

Sec. 8284.052. APPOINTMENT OF TREASURER. The board may appoint the treasurer. (Acts 61st Leg., R.S., Ch. 616, Sec. 10 (part).)

Sec. 8284.053. DIRECTOR'S AND TREASURER'S BONDS. (a) Each director shall qualify by giving bond in the amount of $5,000 for the faithful performance of the director's duties.

(b) The treasurer shall give bond in the amount required by the board. The treasurer's bond shall be conditioned on the treasurer's faithful accounting for all money that comes into the treasurer's custody as treasurer of the district. (Acts 61st Leg., R.S., Ch. 616, Sec. 10 (part).)

Sec. 8284.054. ABSENCE OR INACTION OF BOARD PRESIDENT. (a) When the board president is absent or fails or declines to act, the board vice president shall perform all duties and exercise all power this chapter or general law gives the president.

(b) If the board president is absent from a board meeting:

(1) the board vice president may sign an order or other action adopted at the meeting; or

(2) the board may authorize the president to sign the order or other action. (Acts 61st Leg., R.S., Ch. 616, Sec. 10 (part).)

Sec. 8284.055. DISTRICT OFFICE. (a) Except as provided by this section, the board shall designate, establish, and maintain a district office as provided by Section 49.062, Water Code.

(b) The board may establish a second district office outside the district. If the board establishes a second district office, the board shall give notice of the location of that office by:

(1) filing a copy of the board resolution that establishes the location of the office:

(A) with the Texas Commission on Environmental Quality; and

(B) in the municipal utility district records of the county in which the district is located; and

(2) publishing notice of the location of the office in a newspaper of general circulation in the county in which the district is located.

(c) A district office that is a private residence, office, or dwelling is a public place for matters relating to the district's business.

(d) The board shall provide notice of any change in the location of the district office outside the district in the manner required by Subsection (b). (Acts 61st Leg., R.S., Ch. 616, Sec. 15.)

[Sections 8284.056-8284.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8284.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has all of the rights, powers, privileges, and functions conferred and imposed by the general law of this state relating to municipal utility districts created under Section 59, Article XVI, Texas Constitution, including those conferred by Chapters 49 and 54, Water Code. (Acts 61st Leg., R.S., Ch. 616, Sec. 5 (part).)

Sec. 8284.102. ADDITIONAL POWERS. (a) The district may:

(1) make, purchase, construct, lease, or otherwise acquire property, works, facilities, existing improvements, or improvements to be made, constructed, or acquired that are:

(A) inside or outside the district's boundaries; and

(B) necessary to carry out the powers granted by this chapter or general law; or

(2) enter into a contract with a person on terms the board considers desirable, fair, and advantageous for:

(A) the purchase or sale of water;

(B) the transportation, treatment, and disposal of the domestic, industrial, or communal wastes of the district or others;

(C) the continuing and orderly development of land and property in the district through the purchase, construction, or installation of facilities, works, or improvements that the district is otherwise authorized to do or perform so that, to the greatest extent reasonably possible, considering sound engineering and economic practices, all of the land and property may ultimately receive the services of the facilities, works, or improvements; and

(D) the performance of any of the powers granted by this chapter or the general law relating to municipal utility districts.

(b) A contract under Subsection (a)(2) may not have a duration of more than 40 years. (Acts 61st Leg., R.S., Ch. 616, Sec. 5 (part).)

Sec. 8284.103. EMINENT DOMAIN. The district may exercise the power of eminent domain only:

(1) in the county in which the district is located; and

(2) when necessary to carry out the purposes for which the district was created. (Acts 61st Leg., R.S., Ch. 616, Sec. 13 (part).)

Sec. 8284.104. COST OF RELOCATING OR ALTERING PROPERTY. (a) In this section, "sole expense" means the actual cost of relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of a facility described by Subsection (b) in providing comparable replacement without enhancement of the facility, after deducting from that cost the net salvage value of the old facility.

(b) If the district's exercise of the power of eminent domain makes necessary the relocation, raising, lowering, rerouting, changing the grade, or alteration of the construction of a highway, a railroad, an electric transmission line, a telegraph or telephone property or facility, or a pipeline, the necessary action shall be accomplished at the sole expense of the district. (Acts 61st Leg., R.S., Ch. 616, Sec. 13 (part).)

Sec. 8284.105. NOTICE OF ELECTION. The board president or secretary may give notice of an election. (Acts 61st Leg., R.S., Ch. 616, Sec. 18 (part).)

[Sections 8284.106-8284.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8284.151. TAX METHOD. (a) The district shall use the ad valorem plan of taxation.

(b) The board is not required to call or hold a hearing on the adoption of a plan of taxation. (Acts 61st Leg., R.S., Ch. 616, Sec. 8.)

Sec. 8284.152. DISTRICT ACCOUNTS. The district shall keep a complete system of the district's accounts. (Acts 61st Leg., R.S., Ch. 616, Sec. 14 (part).)

Sec. 8284.153. FISCAL YEAR. The fiscal year of the district is from January 1 to December 31 of the same year. (Acts 61st Leg., R.S., Ch. 616, Sec. 14 (part).)

Sec. 8284.154. COPY OF AUDIT REPORT. A copy of the audit report prepared under Subchapter G, Chapter 49, Water Code, shall be delivered:

(1) to each director; and

(2) to a holder of at least 25 percent of the outstanding bonds of the district, on request. (Acts 61st Leg., R.S., Ch. 616, Sec. 14 (part); New.)

Sec. 8284.155. PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED. The district is not required to pay a tax or assessment on:

(1) district property; or

(2) a purchase made by the district. (Acts 61st Leg., R.S., Ch. 616, Sec. 21 (part).)

Sec. 8284.156. DEPOSITORY. (a) The board shall select one or more banks in this state to act as depository for the district's money.

(b) To the extent that money in the depository bank is not insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by law for the security of county funds.

(c) A director may be a shareholder in a bank that is a depository of district money. (Acts 61st Leg., R.S., Ch. 616, Sec. 14 (part).)

[Sections 8284.157-8284.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 8284.201. LOST OR MUTILATED BONDS. A trust indenture securing bonds issued under this chapter may provide for the issuance of bonds to replace lost or mutilated bonds. (Acts 61st Leg., R.S., Ch. 616, Sec. 12 (part).)

Sec. 8284.202. USE OF BOND PROCEEDS DURING CONSTRUCTION. (a) The district may appropriate or set aside out of the proceeds from the sale of any bonds issued under this chapter an amount for the payment of interest, administrative, and operating expenses expected to accrue during a period of construction, as may be provided in the bond orders or resolutions.

(b) For purposes of this section, the period of construction may not exceed three years. (Acts 61st Leg., R.S., Ch. 616, Sec. 12 (part).)

Sec. 8284.203. REFUNDING BONDS. (a) By order or resolution adopted by the board, the district may issue tax or revenue refunding bonds or tax-revenue refunding bonds to refund revenue bonds or tax-revenue bonds, whether original bonds or refunding bonds, previously issued by the district.

(b) The comptroller shall register the refunding bonds on the surrender and cancellation of the bonds to be refunded.

(c) Instead of issuing bonds to be registered on the surrender and cancellation of the bonds to be refunded, the district, in the order or resolution authorizing the issuance of the refunding bonds, may provide for the sale of the refunding bonds and the deposit of the proceeds in the place or places where the bonds to be refunded are payable. In that case, the refunding bonds may be issued if an amount sufficient to pay the principal of and interest on the bonds to be refunded to their maturity dates, or to their option dates if according to their terms the bonds have been called for payment before maturity, has been deposited in the place or places where the bonds to be refunded are payable, and the comptroller shall register the refunding bonds without the surrender and cancellation of the bonds to be refunded. (Acts 61st Leg., R.S., Ch. 616, Sec. 12 (part).) CHAPTER 8285. MALCOMSON ROAD UTILITY DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8285.001. DEFINITIONS Sec. 8285.002. NATURE OF DISTRICT Sec. 8285.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8285.004. DISTRICT TERRITORY

[Sections 8285.005-8285.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8285.051. COMPOSITION OF BOARD

[Sections 8285.052-8285.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8285.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8285. MALCOMSON ROAD UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8285.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Malcomson Road Utility District. (Acts 62nd Leg., R.S., Ch. 658, Sec. 1 (part); New.)

Sec. 8285.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Harris County created under Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 658, Sec. 1 (part).)

Sec. 8285.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 658, Secs. 1 (part), 3.)

Sec. 8285.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 658, Acts of the 62nd Legislature, Regular Session, 1971, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 62nd Leg., R.S., Ch. 658, Sec. 2; New.)

[Sections 8285.005-8285.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8285.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 62nd Leg., R.S., Ch. 658, Sec. 6 (part).)

[Sections 8285.052-8285.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8285.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred by general law applicable to a municipal utility district, including Chapters 49 and 54, Water Code. (Acts 62nd Leg., R.S., Ch. 658, Sec. 5 (part); New.) CHAPTER 8286. MASON CREEK UTILITY DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8286.001. DEFINITIONS Sec. 8286.002. NATURE OF DISTRICT Sec. 8286.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8286.004. DISTRICT TERRITORY

[Sections 8286.005-8286.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8286.051. COMPOSITION OF BOARD

[Sections 8286.052-8286.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8286.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8286. MASON CREEK UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8286.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Mason Creek Utility District. (Acts 62nd Leg., R.S., Ch. 664, Sec. 1 (part); New.)

Sec. 8286.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Harris County created under Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 664, Sec. 1 (part).)

Sec. 8286.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 664, Secs. 1 (part), 3.)

Sec. 8286.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 664, Acts of the 62nd Legislature, Regular Session, 1971, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for the purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 62nd Leg., R.S., Ch. 664, Sec. 2; New.)

[Sections 8286.005-8286.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8286.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 62nd Leg., R.S., Ch. 664, Sec. 6 (part).)

[Sections 8286.052-8286.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8286.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred by general law applicable to a municipal utility district, including Chapters 49 and 54, Water Code. (Acts 62nd Leg., R.S., Ch. 664, Sec. 5 (part); New.) CHAPTER 8287. MONTGOMERY COUNTY UTILITY DISTRICT NO. 2 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8287.001. DEFINITIONS Sec. 8287.002. NATURE OF DISTRICT Sec. 8287.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8287.004. DISTRICT TERRITORY

[Sections 8287.005-8287.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8287.051. COMPOSITION OF BOARD

[Sections 8287.052-8287.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8287.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8287. MONTGOMERY COUNTY UTILITY DISTRICT NO. 2

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8287.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Montgomery County Utility District No. 2. (Acts 62nd Leg., R.S., Ch. 635, Sec. 1 (part); New.)

Sec. 8287.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Montgomery County created under Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 635, Sec. 1 (part).)

Sec. 8287.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 635, Secs. 1 (part), 3.)

Sec. 8287.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 635, Acts of the 62nd Legislature, Regular Session, 1971, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 62nd Leg., R.S., Ch. 635, Sec. 2; New.)

[Sections 8287.005-8287.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8287.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 62nd Leg., R.S., Ch. 635, Sec. 6 (part).)

[Sections 8287.052-8287.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8287.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred by general law applicable to a municipal utility district, including Chapters 49 and 54, Water Code. (Acts 62nd Leg., R.S., Ch. 635, Sec. 5 (part); New.) CHAPTER 8288. MEEKER MUNICIPAL WATER DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8288.001. DEFINITIONS Sec. 8288.002. NATURE OF DISTRICT Sec. 8288.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8288.004. LIBERAL CONSTRUCTION OF CHAPTER Sec. 8288.005. DISTRICT TERRITORY

[Sections 8288.006-8288.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8288.051. COMPOSITION OF BOARD; TERMS Sec. 8288.052. QUALIFICATIONS FOR OFFICE Sec. 8828.053. BOARD RESOLUTIONS; VOTING REQUIREMENTS Sec. 8288.054. OFFICERS AND ASSISTANTS Sec. 8288.055. OFFICER DUTIES Sec. 8288.056. MEETINGS

[Sections 8288.057-8288.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8288.101. DISTRICT POWERS Sec. 8288.102. GENERAL POWERS REGARDING WATER Sec. 8288.103. GENERAL POWERS REGARDING WASTE Sec. 8288.104. GENERAL POWERS REGARDING GARBAGE

COLLECTION AND DISPOSAL Sec. 8288.105. GENERAL CONTRACT POWERS Sec. 8288.106. AUTHORITY OF PUBLIC AGENCIES AND

WITH DISTRICT Sec. 8288.107. CONVEYANCE OF PROPERTY TO DISTRICT Sec. 8288.108. ACQUISITION OF EXISTING FACILITIES Sec. 8288.109. EMINENT DOMAIN Sec. 8288.110. COST OF RELOCATING OR ALTERING

PROPERTY; RIGHTS-OF-WAY AND EASEMENTS

[Sections 8288.111-8288.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8288.151. IMPOSITION OF MAINTENANCE TAX;

ASSESSMENTS Sec. 8288.152. ELECTION TO IMPOSE TAX Sec. 8288.153. DEPOSITORY Sec. 8288.154. INVESTMENT OF DISTRICT MONEY Sec. 8288.155. DISTRICT FACILITIES EXEMPT FROM

TAXATION AND ASSESSMENT

[Sections 8288.156-8288.200 reserved for expansion]

SUBCHAPTER E. BONDS Sec. 8288.201. AUTHORITY TO ISSUE BONDS Sec. 8288.202. FORM OF BONDS Sec. 8288.203. MATURITY Sec. 8288.204. BONDS SECURED BY REVENUE; ADDITIONAL

BONDS Sec. 8288.205. ADDITIONAL SECURITY Sec. 8288.206. TRUST INDENTURE Sec. 8288.207. CHARGES FOR DISTRICT SERVICES Sec. 8288.208. STATE PLEDGE REGARDING RIGHTS AND

REMEDIES OF BONDHOLDERS Sec. 8288.209. USE OF BOND PROCEEDS Sec. 8288.210. APPOINTMENT OF RECEIVER Sec. 8288.211. REFUNDING BONDS Sec. 8288.212. OTHER REMEDIES AND COVENANTS Sec. 8288.213. LIMITATION ON RIGHTS OF BONDHOLDERS Sec. 8288.214. BONDS EXEMPT FROM TAXATION

CHAPTER 8288. MEEKER MUNICIPAL WATER DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8288.001. DEFINITIONS. In this chapter:

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

(2) "Bond" means a bond or note.

(3) "Director" means a member of the board.

(4) "District" means the Meeker Municipal Water District. (Acts 65th Leg., R.S., Ch. 714, Secs. 1 (part), 4(a) (part), 15(a) (part); New.)

Sec. 8288.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Jefferson County created under Section 59, Article XVI, Texas Constitution. (Acts 65th Leg., R.S., Ch. 714, Sec. 1 (part).)

Sec. 8288.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The accomplishment of the purposes stated in this chapter is for the benefit of the people of this state and for the improvement of their property and industries. The district, in carrying out the purposes of this chapter, will be performing an essential public function under the constitution. (Acts 65th Leg., R.S., Ch. 714, Secs. 3, 22 (part).)

Sec. 8288.004. LIBERAL CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed to effect the purposes, powers, rights, and functions stated in this chapter. (Acts 65th Leg., R.S., Ch. 714, Sec. 23 (part).)

Sec. 8288.005. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 1, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue bonds or to pay the principal of and interest on the bonds;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or the board.

(c) The board may redefine the boundaries of the district to correct any mistake in the field notes appearing in Section 1, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977. (Acts 65th Leg., R.S., Ch. 714, Sec. 2; New.)

[Sections 8288.006-8288.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8288.051. COMPOSITION OF BOARD; TERMS. (a) The district is governed by a board of nine elected directors, each of whom occupies a numbered place on the board.

(b) Directors serve staggered terms.

(c) Director elections must be held in the manner provided in the Water Code for municipal utility districts. (Acts 65th Leg., R.S., Ch. 714, Sec. 4(a) (part).)

Sec. 8288.052. QUALIFICATIONS FOR OFFICE. To be eligible to be elected or to serve as a director, a person must be a resident, qualified voter of the district. (Acts 65th Leg., R.S., Ch. 714, Sec. 4(b).)

Sec. 8828.053. BOARD RESOLUTIONS; VOTING REQUIREMENTS. (a) The district shall act through orders or resolutions adopted by the board.

(b) All directors are entitled to vote.

(c) The affirmative vote of a majority of the directors in attendance, but not fewer than five directors, is necessary to adopt an order or resolution. (Acts 65th Leg., R.S., Ch. 714, Sec. 4(g).)

Sec. 8288.054. OFFICERS AND ASSISTANTS. (a) The board shall elect a president, vice president, secretary, and treasurer.

(b) The board shall elect the president and vice president from among the directors.

(c) The president serves for a one-year term.

(d) The offices of secretary and treasurer:

(1) may be held by one person; and

(2) are not required to be held by a director.

(e) The board may appoint one or more assistant officers who are not required to be directors. (Acts 65th Leg., R.S., Ch. 714, Sec. 4(f) (part).)

Sec. 8288.055. OFFICER DUTIES. (a) The board president shall preside at board meetings and perform other duties prescribed by the board.

(b) The board secretary is the official custodian of the minutes, books, records, and seal of the board and shall perform other duties and functions prescribed by the board.

(c) The board treasurer shall perform duties and functions prescribed by the board.

(d) An assistant officer may perform any duties or functions as may be prescribed by the board. (Acts 65th Leg., R.S., Ch. 714, Sec. 4(f) (part).)

Sec. 8288.056. MEETINGS. The board shall have regular meetings at times specified by board resolution or bylaws and shall have special meetings when called by the board president or by any three directors. (Acts 65th Leg., R.S., Ch. 714, Sec. 4(h).)

[Sections 8288.057-8288.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8288.101. DISTRICT POWERS. The district may exercise any power necessary or appropriate to achieve the purposes of this chapter, including the power to:

(1) adopt an official seal;

(2) adopt and enforce:

(A) bylaws and rules for the conduct of its affairs; and

(B) any rule that a municipal utility district may adopt and enforce under Section 54.205 et seq., Water Code;

(3) acquire, hold, use, invest, reinvest, and dispose of its receipts and money from any source;

(4) select a depository or depositories;

(5) acquire, own, rent, lease, accept, hold, or dispose of property or an interest in property, including a right or easement, by purchase, exchange, gift, assignment, condemnation, sale, lease, or other means, in performing a duty or exercising a power under this chapter;

(6) hold, manage, operate, or improve property;

(7) lease or rent any land, buildings, structures, or facilities from or to any person;

(8) sell, assign, lease, encumber, mortgage, or otherwise dispose of property or an interest in property, and release or relinquish a right, title, claim, lien, interest, easement, or demand, regardless of the manner in which acquired, and conduct a transaction authorized by this subdivision by public or private sale, notwithstanding any other law;

(9) in the manner and to the extent permitted by this chapter:

(A) borrow money for a corporate purpose;

(B) enter into an agreement in connection with the borrowing;

(C) issue bonds for money borrowed;

(D) provide for and secure the payment of the bonds; and

(E) provide for the rights of the holders of the bonds;

(10) request and accept an appropriation, grant, allocation, subsidy, guaranty, aid, service, material, or gift from any public or private source, including the federal government, the state, a public agency, or a political subdivision;

(11) operate and maintain an office; and

(12) appoint and determine the duties, tenure, qualifications, and compensation of officers, employees, agents, and professional advisors and counselors considered necessary or advisable by the board, including financial consultants, accountants, attorneys, architects, engineers, appraisers, and financing experts. (Acts 65th Leg., R.S., Ch. 714, Sec. 10 (part).)

Sec. 8288.102. GENERAL POWERS REGARDING WATER. The district has all rights, powers, and privileges necessary or useful to enable it to acquire, provide, supply, deliver, and sell potable water inside or outside its boundaries for any beneficial purpose. (Acts 65th Leg., R.S., Ch. 714, Sec. 6.)

Sec. 8288.103. GENERAL POWERS REGARDING WASTE. The district has all rights, powers, and privileges necessary or useful to enable it to collect, transport, dispose of, and control domestic, industrial, or communal wastes, whether in fluid, solid, or composite state. (Acts 65th Leg., R.S., Ch. 714, Sec. 7.)

Sec. 8288.104. GENERAL POWERS REGARDING GARBAGE COLLECTION AND DISPOSAL. The district has all rights, powers, and privileges necessary or useful to enable it to provide for garbage collection and disposal in all or part of the district on terms and at rates and charges the board considers just and reasonable to:

(1) preserve the water of rivers and streams in this state; and

(2) aid in the preservation and conservation of the natural resources of this state. (Acts 65th Leg., R.S., Ch. 714, Sec. 8.)

Sec. 8288.105. GENERAL CONTRACT POWERS. (a) The district may enter into and enforce a contract or agreement necessary or convenient to the exercise of the powers, rights, privileges, and functions conferred on the district by this chapter or the general law, including a contract or agreement with any person as the board considers necessary or proper for, or in connection with, any power or function of the district for:

(1) the purchase or sale of water;

(2) the collection, transportation, processing, or disposal of waste; or

(3) the construction, acquisition, ownership, financing, operation, maintenance, sale, leasing to or from, or other use or disposition of any facilities authorized to be developed, acquired, or constructed under this chapter or the general law.

(b) The authority to enter into or enforce the contract or agreement includes the authority to enter into or enforce a contract or agreement regarding:

(1) any improvements, structures, facilities, equipment, and other property of any kind in connection with the subject of the contract or agreement;

(2) any land, leaseholds, and easements; and

(3) any interests in the property.

(c) The contract or agreement:

(1) may not have a term of more than 40 years; and

(2) may contain provisions the board determines to be in the best interest of the district.

(d) The district may pledge all or part of its revenue to the payment of its obligations under the contract or agreement to the same extent and on the same conditions as it may pledge revenue to secure district bonds. (Acts 65th Leg., R.S., Ch. 714, Sec. 9(a).)

Sec. 8288.106. AUTHORITY OF PUBLIC AGENCIES AND POLITICAL SUBDIVISIONS TO CONTRACT WITH DISTRICT. A public agency or political subdivision of this state may enter into a contract or agreement with the district, on terms agreed to by the parties, for:

(1) the purchase or sale of water;

(2) waste collection, transportation, processing, or disposal; or

(3) any purpose relating to the district's powers or functions. (Acts 65th Leg., R.S., Ch. 714, Sec. 9(b) (part).)

Sec. 8288.107. CONVEYANCE OF PROPERTY TO DISTRICT. A public agency or political subdivision of this state may lease, sell, or otherwise convey to the district, for any consideration that the parties agree is adequate, any of its land, improvements, property, plants, lines, or other facilities related to:

(1) the supply of water; or

(2) waste collection, transportation, processing, or disposal. (Acts 65th Leg., R.S., Ch. 714, Sec. 9(b) (part).)

Sec. 8288.108. ACQUISITION OF EXISTING FACILITIES. If the district acquires existing works, improvements, facilities, plants, equipment, or appliances that are completed, partially created, 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. (Acts 65th Leg., R.S., Ch. 714, Sec. 9(c).)

Sec. 8288.109. EMINENT DOMAIN. (a) To carry out a power conferred by this chapter, the district may exercise the power of eminent domain inside or outside the district to acquire the fee simple title to land, or any other interest in land as determined by the board, and other property and easements, necessary for water wells, water or sewer treatment plants, water or sewer lines, pumping stations and force mains, storage tanks, or other similar facilities.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code. (Acts 65th Leg., R.S., Ch. 714, Sec. 11(a) (part).)

Sec. 8288.110. COST OF RELOCATING OR ALTERING PROPERTY; RIGHTS-OF-WAY AND EASEMENTS. (a) If the district's exercise of its eminent domain, police, or other power requires relocating, raising, lowering, rerouting, or changing the grade of or altering the construction of any highway, railroad, electric, transmission, telegraph, or telephone line, conduit, pole, property, or facility or pipeline, the action shall be accomplished at the sole expense of the district. The term "sole expense" means the actual cost of the lowering, rerouting, or change in grade or alteration of construction to provide a comparable replacement without enhancing the facility, after deducting from the cost the net salvage value derived from the old facility.

(b) The district has all necessary or useful rights-of-way and easements along, over, under, and across all public, state, municipal, and county roads, highways, and places for any of its purposes. The district shall restore a used facility to its previous condition as nearly as possible at the sole expense of the district. (Acts 65th Leg., R.S., Ch. 714, Secs. 11(c), (d).)

[Sections 8288.111-8288.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8288.151. IMPOSITION OF MAINTENANCE TAX; PROHIBITION ON OTHER TAXES OR ASSESSMENTS. (a) The district may impose a tax, not to exceed 10 cents on each $100 of the assessed value of taxable property in the district according to the most recent certified tax appraisal roll of the district, for:

(1) maintenance purposes, including money for studying, planning, maintaining, repairing, and operating all necessary plants, works, facilities, improvements, appliances, and equipment of the district;

(2) paying costs of proper services, engineering, and legal fees; and

(3) organization and administrative expenses.

(b) The district may not impose a maintenance tax unless the tax is approved by a majority of the voters voting at an election held for that purpose.

(c) Except for the maintenance tax authorized by this section, the district may not under this chapter or any other law levy or collect a tax or assessment or create a debt payable from a tax or assessment. (Acts 65th Leg., R.S., Ch. 714, Secs. 12(a), (b) (part), (c).)

Sec. 8288.152. ELECTION TO IMPOSE TAX. (a) The board may order an election to impose a maintenance tax. The election order must specify:

(1) the time and place of the election;

(2) the maximum amount of tax to be authorized;

(3) the form of the ballot; and

(4) other matters the board considers necessary or advisable.

(b) Notice of the election must be given by publishing once a week for two consecutive weeks a substantial copy of the election order in a newspaper of general circulation in the district. The first publication must occur at least 14 days before the date of the election. (Acts 65th Leg., R.S., Ch. 714, Sec. 12(b) (part).)

Sec. 8288.153. DEPOSITORY. (a) The board shall designate one or more banks inside or outside the district to serve as the depository for the district's money.

(b) All district money shall be deposited in the depository designated by the board, except that:

(1) bond proceeds and money pledged to pay bonds, to the extent provided in a resolution or trust indenture authorizing or securing district bonds, may be deposited with another bank or trustee named in the bond resolution or trust indenture; and

(2) money shall be remitted to each paying agent for the payment of principal of and interest on the bonds.

(c) To the extent that money in a depository bank or the trustee bank is not insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by law for the security of the county funds in this state. (Acts 65th Leg., R.S., Ch. 714, Sec. 19 (part).)

Sec. 8288.154. INVESTMENT OF DISTRICT MONEY. The board may invest district money in obligations and make time deposits of district money in a manner determined by the board or in the manner permitted or required in a resolution or trust indenture authorizing or securing district bonds. (Acts 65th Leg., R.S., Ch. 714, Sec. 19 (part).)

Sec. 8288.155. DISTRICT FACILITIES EXEMPT FROM TAXATION AND ASSESSMENT. The district is not required to pay a tax or assessment on its facilities or any part of its facilities. (Acts 65th Leg., R.S., Ch. 714, Sec. 22 (part).)

[Sections 8288.156-8288.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 8288.201. AUTHORITY TO ISSUE BONDS. (a) The district may issue bonds payable from and secured by district revenue to carry out any power conferred by this chapter. The bonds must be authorized by a board resolution.

(b) The bonds must be issued in the manner and under the terms of the resolution authorizing the issuance of the bonds. (Acts 65th Leg., R.S., Ch. 714, Secs. 15(a) (part), (b) (part).)

Sec. 8288.202. FORM OF BONDS. District bonds must be:

(1) issued in the district's name;

(2) signed by the president or vice president; and

(3) attested by the secretary. (Acts 65th Leg., R.S., Ch. 714, Sec. 15(b) (part).)

Sec. 8288.203. MATURITY. District bonds must mature not later than 40 years after the date of their issuance. (Acts 65th Leg., R.S., Ch. 714, Sec. 15(b) (part).)

Sec. 8288.204. BONDS SECURED BY REVENUE; ADDITIONAL BONDS. (a) District bonds may be secured by a pledge of all or part of the district's revenue, or by all or part of the payments or rentals under one or more contracts or leases specified by board resolution or a trust indenture securing the bonds.

(b) A resolution authorizing the issuance of bonds secured by a pledge of revenue of all or part of the district's facilities may provide that the district shall first pay the expenses of operating and maintaining all or part of the facilities as the board considers appropriate before paying the principal of and interest on the bonds.

(c) In a resolution authorizing the issuance of bonds secured by revenue, contract payments, or lease rentals, the district may reserve the right, under conditions specified by the resolution, to issue additional bonds that will be on a parity with, superior to, or subordinate to the bonds then being issued. (Acts 65th Leg., R.S., Ch. 714, Sec. 15(d).)

Sec. 8288.205. ADDITIONAL SECURITY. (a) District bonds may be additionally secured, at the discretion of the board, by a deed of trust or mortgage lien on all or part of the district's physical property, facilities, easements, water rights and appropriation permits, leases, contracts, and all rights appurtenant to the property, vesting in the trustee power to:

(1) sell the property for the payment of the debt;

(2) operate the property; and

(3) take other action to further secure the bonds.

(b) A purchaser under a sale under the deed of trust lien, if one is given:

(1) is the absolute owner of the property, facilities, and rights purchased; and

(2) is entitled to maintain and operate the property, facilities, and rights. (Acts 65th Leg., R.S., Ch. 714, Sec. 16 (part).)

Sec. 8288.206. TRUST INDENTURE. District bonds authorized by this chapter, including refunding bonds, may be additionally secured by a trust indenture. The trustee may be a bank with trust powers that is located inside or outside the state. (Acts 65th Leg., R.S., Ch. 714, Sec. 16 (part).)

Sec. 8288.207. CHARGES FOR DISTRICT SERVICES. If district bonds payable wholly from revenue are issued, the board shall set and revise the rates, fees, and charges assessed for water sold and waste collection and treatment services provided by the district. The rates, fees, and charges must be sufficient to:

(1) pay the expense of operating and maintaining the district facilities that generate the revenue from which the bonds will be paid;

(2) pay the principal of and interest on the bonds when due; and

(3) maintain the reserve fund and other funds as provided in the resolution authorizing the bonds. (Acts 65th Leg., R.S., Ch. 714, Sec. 15(e) (part).)

Sec. 8288.208. STATE PLEDGE REGARDING RIGHTS AND REMEDIES OF BONDHOLDERS. Without depriving this state of its power to regulate and control the rates, fees, and charges assessed for water sold and waste collection and treatment services provided by the district, the state pledges to and agrees with the holders of district bonds that the state will not exercise its power to regulate and control the rates, fees, and charges in any way that would impair the rights or remedies of the holders of the bonds. (Acts 65th Leg., R.S., Ch. 714, Sec. 15(e) (part).)

Sec. 8288.209. USE OF BOND PROCEEDS. (a) The district may set aside an amount of proceeds from the sale of district bonds for:

(1) the payment of interest expected to accrue during construction not to exceed three years;

(2) a debt service reserve fund; and

(3) other funds as may be provided in the resolution authorizing the bonds or in the trust indenture.

(b) The district may use proceeds from the sale of the bonds to pay any expense necessarily incurred in accomplishing the purpose of the district, including any expense of issuing and selling the bonds. (Acts 65th Leg., R.S., Ch. 714, Sec. 15(f).)

Sec. 8288.210. APPOINTMENT OF RECEIVER. (a) On default or threatened default in the payment of the principal of or interest on district bonds that are payable wholly or partly from revenue, a court may, on petition of the holders of at least 25 percent of the district's outstanding revenue bonds, appoint a receiver for the district.

(b) The receiver may collect and receive all district revenue, other than taxes, employ and discharge district agents and employees, and take charge of money on hand, other than money received from taxes, unless commingled, and or hindrance by the board.

(c) The receiver may be authorized to sell or contract for the sale of water or the collection or treatment of waste or to renew contracts with the approval of the court that appointed the receiver.

(d) The court may vest the receiver with any other power or duty the court finds necessary to protect the holders of the bonds. (Acts 65th Leg., R.S., Ch. 714, Sec. 15(g) (part).)

Sec. 8288.211. REFUNDING BONDS. (a) The district may issue refunding bonds to refund outstanding district bonds and interest on those bonds. Refunding bonds may be issued without an election.

(b) Refunding bonds may:

(1) be issued to refund bonds of more than one series;

(2) combine the pledges for the outstanding bonds for the security of the refunding bonds; or

(3) be secured by a pledge of other or additional revenue or mortgage liens.

(c) The provisions of this subchapter regarding the issuance of other bonds, their security, and the remedies of the holders apply to refunding bonds.

(d) The comptroller shall register the refunding bonds on the surrender and cancellation of the bonds to be refunded.

(e) Instead of issuing bonds to be registered on the surrender and cancellation of the bonds to be refunded, the district, in the resolution authorizing the issuance of the refunding bonds, may provide for the sale of the refunding bonds and the deposit of the proceeds in a bank at which the bonds to be refunded are payable. In that case, the refunding bonds may be issued in an amount sufficient to pay the principal of and interest and any required redemption premium on the bonds to be refunded to any redemption date or to their maturity date, and the comptroller shall register the refunding bonds without the surrender and cancellation of the bonds to be refunded.

(f) The district may also issue refunding bonds under any other applicable law. (Acts 65th Leg., R.S., Ch. 714, Sec. 17.)

Sec. 8288.212. OTHER REMEDIES AND COVENANTS. The resolution authorizing the issuance of any district bonds authorized under this chapter, including refunding bonds, or the trust indenture securing the bonds, may provide other remedies and covenants the board considers necessary to issue the bonds on the most favorable terms. (Acts 65th Leg., R.S., Ch. 714, Sec. 15(h).)

Sec. 8288.213. LIMITATION ON RIGHTS OF BONDHOLDERS. The resolution authorizing the bonds or the trust indenture securing the bonds may limit or qualify the rights of the holders of less than all of the outstanding bonds payable from the same source to institute or prosecute litigation affecting the district's property or income. (Acts 65th Leg., R.S., Ch. 714, Sec. 15(g) (part).)

Sec. 8288.214. BONDS EXEMPT FROM TAXATION. A district bond, the transfer of the bond, and the income from the bond, including profits made on the sale of the bond, are exempt from taxation in this state. (Acts 65th Leg., R.S., Ch. 714, Sec. 22 (part).) CHAPTER 8289. MEMORIAL POINT UTILITY DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8289.001. DEFINITIONS Sec. 8289.002. NATURE OF DISTRICT Sec. 8289.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8289.004. DISTRICT TERRITORY

[Sections 8289.005-8289.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8289.051. COMPOSITION OF BOARD

[Sections 8289.052-8289.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8289.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8289. MEMORIAL POINT UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8289.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Memorial Point Utility District. (Acts 62nd Leg., R.S., Ch. 423, Sec. 1 (part); New.)

Sec. 8289.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Polk County created under Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 423, Sec. 1 (part).)

Sec. 8289.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 423, Secs. 1 (part), 3.)

Sec. 8289.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 423, Acts of the 62nd Legislature, Regular Session, 1971, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 62nd Leg., R.S., Ch. 423, Sec. 2; New.)

[Sections 8289.005-8289.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8289.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 62nd Leg., R.S., Ch. 423, Sec. 6 (part).)

[Sections 8289.052-8289.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8289.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred by general law applicable to a municipal utility district, including Chapters 49 and 54, Water Code. (Acts 62nd Leg., R.S., Ch. 423, Sec. 5 (part); New.) CHAPTER 8290. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 6 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8290.001. DEFINITIONS Sec. 8290.002. NATURE OF DISTRICT Sec. 8290.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8290.004. DISTRICT TERRITORY

[Sections 8290.005-8290.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8290.051. COMPOSITION OF BOARD

[Sections 8290.052-8290.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8290.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8290. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 6

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8290.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Montgomery County Municipal Utility District No. 6. (Acts 62nd Leg., R.S., Ch. 693, Sec. 1 (part); New.)

Sec. 8290.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Montgomery County created under Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 693, Sec. 1 (part).)

Sec. 8290.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 693, Secs. 1 (part), 3.)

Sec. 8290.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 693, Acts of the 62nd Legislature, Regular Session, 1971, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bonds for a purpose for which the district is created or to pay the principal of and interest on the bonds;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 62nd Leg., R.S., Ch. 693, Sec. 2; New.)

[Sections 8290.005-8290.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8290.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 62nd Leg., R.S., Ch. 693, Sec. 6 (part).)

[Sections 8290.052-8290.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8290.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred by general law applicable to a municipal utility district, including Chapters 49 and 54, Water Code. (Acts 62nd Leg., R.S., Ch. 693, Sec. 5 (part); New.) CHAPTER 8291. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 7 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8291.001. DEFINITIONS Sec. 8291.002. NATURE OF DISTRICT Sec. 8291.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8291.004. DISTRICT TERRITORY

[Sections 8291.005-8291.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8291.051. COMPOSITION OF BOARD

[Sections 8291.052-8291.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8291.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8291. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 7

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8291.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Montgomery County Municipal Utility District No. 7. (Acts 62nd Leg., R.S., Ch. 694, Sec. 1 (part); New.)

Sec. 8291.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Montgomery County created under Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 694, Sec. 1 (part).)

Sec. 8291.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 694, Secs. 1 (part), 3.)

Sec. 8291.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 694, Acts of the 62nd Legislature, Regular Session, 1971, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bonds for a purpose for which the district is created or to pay the principal of and interest on the bonds;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 62nd Leg., R.S., Ch. 694, Sec. 2; New.)

[Sections 8291.005-8291.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8291.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 62nd Leg., R.S., Ch. 694, Sec. 6 (part).)

[Sections 8291.052-8291.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8291.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred by general law applicable to a municipal utility district, including Chapters 49 and 54, Water Code. (Acts 62nd Leg., R.S., Ch. 694, Sec. 5 (part); New.) CHAPTER 8292. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 67 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8292.001. DEFINITIONS Sec. 8292.002. NATURE OF DISTRICT Sec. 8292.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8292.004. DISTRICT TERRITORY

[Sections 8292.005-8292.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8292.051. COMPOSITION OF BOARD; TERMS Sec. 8292.052. BOARD VACANCY

[Sections 8292.053-8292.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8292.101. MUNICIPAL UTILITY DISTRICT POWERS Sec. 8292.102. WATER CONSERVATION PROGRAM

CHAPTER 8292. MONTGOMERY COUNTY MUNICIPAL UTILITY

DISTRICT NO. 67

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8292.001. 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 Montgomery County Municipal Utility District No. 67. (Acts 69th Leg., R.S., Ch. 756, Secs. 1(a) (part), 2; New.)

Sec. 8292.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Montgomery County created under Section 59, Article XVI, Texas Constitution. (Acts 69th Leg., R.S., Ch. 756, Sec. 1(a) (part).)

Sec. 8292.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 69th Leg., R.S., Ch. 756, Secs. 1(b), 5.)

Sec. 8292.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 3, Chapter 756, Acts of the 69th Legislature, Regular Session, 1985, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in the field notes or in copying the field notes in the legislative process does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bonds for a purpose for which the district is created or to pay the principal of and interest on the bonds;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing board. (Acts 69th Leg., R.S., Ch. 756, Sec. 4; New.)

[Sections 8292.005-8292.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8292.051. COMPOSITION OF BOARD; TERMS. (a) The district is governed by a board of five elected directors.

(b) Directors serve staggered four-year terms. (Acts 69th Leg., R.S., Ch. 756, Secs. 8(a), 10 (part).)

Sec. 8292.052. BOARD VACANCY. (a) Except as provided by Subsection (b), if a director fails to qualify for office, the remaining directors shall appoint a person to fill the vacancy until the next election of directors for the district. If the vacant position is not regularly scheduled to be filled at that election, the person elected at that election to fill the vacancy serves only for the unexpired term.

(b) If at any time there are fewer than three qualified directors, the Texas Commission on Environmental Quality shall appoint, on petition of a landowner in the district, the necessary number of directors to fill all vacancies on the board. Persons appointed under this subsection serve the same terms as provided for persons appointed under Subsection (a). (Acts 69th Leg., R.S., Ch. 756, Sec. 8(d).)

[Sections 8292.053-8292.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8292.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions provided by general law applicable to a municipal utility district created under Section 59, Article XVI, Texas Constitution, including Chapters 49 and 54, Water Code. (Acts 69th Leg., R.S., Ch. 756, Sec. 6(a) (part); New.)

Sec. 8292.102. WATER CONSERVATION PROGRAM. (a) In this section, "program of water conservation" means the practices, techniques, and technologies that will reduce water consumption, reduce water loss or waste, improve efficiency in water use, or increase water recycling and reuse so that a water supply is available for future or alternative uses.

(b) The district shall adopt and implement a program of water conservation consistent with rules and criteria adopted and enforceable by the Texas Commission on Environmental Quality for similarly situated districts in the region. (Acts 69th Leg., R.S., Ch. 756, Sec. 7.) CHAPTER 8293. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 9 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8293.001. DEFINITIONS Sec. 8293.002. NATURE OF DISTRICT Sec. 8293.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8293.004. DISTRICT TERRITORY

[Sections 8293.005-8293.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8293.051. COMPOSITION OF BOARD

[Sections 8293.052-8293.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8293.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8293. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 9

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8293.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Montgomery County Municipal Utility District No. 9. (Acts 62nd Leg., R.S., Ch. 704, Sec. 1 (part); New.)

Sec. 8293.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Montgomery County created under Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 704, Sec. 1 (part).)

Sec. 8293.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 704, Secs. 1 (part), 3.)

Sec. 8293.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 704, Acts of the 62nd Legislature, Regular Session, 1971, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 62nd Leg., R.S., Ch. 704, Sec. 2; New.)

[Sections 8293.005-8293.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8293.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 62nd Leg., R.S., Ch. 704, Sec. 6 (part).)

[Sections 8293.052-8293.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8293.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred by general law applicable to a municipal utility district, including Chapters 49 and 54, Water Code. (Acts 62nd Leg., R.S., Ch. 704, Sec. 5 (part); New.) CHAPTER 8302. MONTGOMERY COUNTY UTILITY DISTRICT NO. 3 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8302.001. DEFINITIONS Sec. 8302.002. NATURE OF DISTRICT Sec. 8302.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8302.004. DISTRICT TERRITORY

[Sections 8302.005-8302.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8302.051. COMPOSITION OF BOARD

[Sections 8302.052-8302.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8302.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8302. MONTGOMERY COUNTY UTILITY DISTRICT NO. 3

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8302.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Montgomery County Utility District No. 3. (Acts 62nd Leg., R.S., Ch. 634, Sec. 1 (part); New.)

Sec. 8302.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Montgomery County created under Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 634, Sec. 1 (part).)

Sec. 8302.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 634, Secs. 1 (part), 3.)

Sec. 8302.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 634, Acts of the 62nd Legislature, Regular Session, 1971, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 62nd Leg., R.S., Ch. 634, Sec. 2; New.)

[Sections 8302.005-8302.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8302.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 62nd Leg., R.S., Ch. 634, Sec. 6 (part).)

[Sections 8302.052-8302.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8302.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred by general law applicable to a municipal utility district, including Chapters 49 and 54, Water Code. (Acts 62nd Leg., R.S., Ch. 634, Sec. 5 (part); New.) CHAPTER 8303. MONTGOMERY COUNTY UTILITY DISTRICT NO. 4 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8303.001. DEFINITIONS Sec. 8303.002. NATURE OF DISTRICT Sec. 8303.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE Sec. 8303.004. DISTRICT TERRITORY

[Sections 8303.005-8303.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8303.051. COMPOSITION OF BOARD

[Sections 8303.052-8303.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8303.101. MUNICIPAL UTILITY DISTRICT POWERS

CHAPTER 8303. MONTGOMERY COUNTY UTILITY DISTRICT NO. 4

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8303.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a member of the board.

(3) "District" means the Montgomery County Utility District No. 4. (Acts 62nd Leg., R.S., Ch. 344, Sec. 1 (part); New.)

Sec. 8303.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Montgomery County created under Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 344, Sec. 1 (part).)

Sec. 8303.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 62nd Leg., R.S., Ch. 344, Secs. 1 (part), 3.)

Sec. 8303.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 344, Acts of the 62nd Legislature, Regular Session, 1971, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue any type of bonds for a purpose for which the district is created or to pay the principal of and interest on the bonds;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing body. (Acts 62nd Leg., R.S., Ch. 344, Sec. 2; New.)

[Sections 8303.005-8303.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8303.051. COMPOSITION OF BOARD. The board of directors is composed of five elected directors. (Acts 62nd Leg., R.S., Ch. 344, Sec. 6 (part).)

[Sections 8303.052-8303.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8303.101. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred by general law applicable to a municipal utility district, including Chapters 49 and 54, Water Code. (Acts 62nd Leg., R.S., Ch. 344, Sec. 5 (part); New.)

SECTION 1.05. Subtitle H, Title 6, Special District Local Laws Code, is amended by adding Chapters 8805, 8809, 8814, 8816, 8825, 8826, 8827, 8828, 8829, 8831, 8832, 8834, 8836, 8840, 8842, 8844, 8846, 8848, and 8849 to read as follows: CHAPTER 8805. LIPAN-KICKAPOO WATER CONSERVATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8805.001. DEFINITIONS Sec. 8805.002. NATURE OF DISTRICT Sec. 8805.003. LEGISLATIVE FINDINGS Sec. 8805.004. DISTRICT TERRITORY Sec. 8805.005. OWNERSHIP OF GROUNDWATER AND SURFACE

WATER RIGHTS NOT AFFECTED BY CHAPTER

[Sections 8805.006-8805.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8805.051. COMPOSITION OF BOARD; TERMS Sec. 8805.052. ELECTION OF DIRECTORS Sec. 8805.053. QUALIFICATIONS FOR ELECTION Sec. 8805.054. BOARD VACANCY Sec. 8805.055. COMPOSITION OF BOARD AND ELECTION OF

DIRECTORS FOLLOWING ANNEXATION Sec. 8805.056. VOTE REQUIRED FOR OFFICIAL BOARD ACTION

[Sections 8805.057-8805.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8805.101. GENERAL POWERS AND DUTIES Sec. 8805.102. SEAL Sec. 8805.103. CONTROL, STORAGE, AND PRESERVATION OF

STORM AND FLOOD WATER Sec. 8805.104. RECLAMATION Sec. 8805.105. SOIL CONSERVATION AND IMPROVEMENT Sec. 8805.106. ACQUISITION OF PROPERTY Sec. 8805.107. SALE AND DISPOSAL OF PROPERTY Sec. 8805.108. BORROWING MONEY Sec. 8805.109. APPEARANCE BEFORE RAILROAD COMMISSION

CHAPTER 8805. LIPAN-KICKAPOO WATER CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8805.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Lipan-Kickapoo Water Conservation District. (Acts 70th Leg., R.S., Ch. 439, Sec. 1; New.)

Sec. 8805.002. NATURE OF DISTRICT. The district is created under Section 59, Article XVI, Texas Constitution, to provide for the conservation, preservation, protection, recharge, and prevention of waste and pollution of the district's groundwater and surface water, consistent with the objectives of Section 59, Article XVI, Texas Constitution, and Chapter 36, Water Code. (Acts 70th Leg., R.S., Ch. 439, Secs. 2(a) (part), (b).)

Sec. 8805.003. LEGISLATIVE FINDINGS. The legislature finds that:

(1) the creation of the district is feasible and practicable;

(2) the district will benefit the land in the district;

(3) there is a public necessity for the district; and

(4) the district will provide a public use and benefit. (Acts 70th Leg., R.S., Ch. 439, Sec. 3.)

Sec. 8805.004. DISTRICT TERRITORY. The district is composed of the territory described by Section 4, Chapter 439, Acts of the 70th Legislature, Regular Session, 1987, as that territory may have been modified under:

(1) Subchapter J, Chapter 36, Water Code; or

(2) other law. (New.)

Sec. 8805.005. OWNERSHIP OF GROUNDWATER AND SURFACE WATER RIGHTS NOT AFFECTED BY CHAPTER. The ownership and rights of the owner of land, the owner's lessees, and assigns in groundwater and any surface water rights are recognized and this chapter does not deprive or divest the owner, the owner's lessees, or assigns of those ownership rights. (Acts 70th Leg., R.S., Ch. 439, Sec. 16.)

[Sections 8805.006-8805.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8805.051. COMPOSITION OF BOARD; TERMS. (a) The board consists of:

(1) an equal number of directors from each county in the district, elected by a majority vote of the voters residing in any part of the county that is included in the district; and

(2) one director elected from the district at large.

(b) Directors serve staggered four-year terms.

(c) A director takes office at the first regular meeting of the board following the director's election to the board. (Acts 70th Leg., R.S., Ch. 439, Secs. 8(a) (part), 9(b), 10(a).)

Sec. 8805.052. ELECTION OF DIRECTORS. (a) Every second year, the board shall hold an election on the uniform election date in May provided by Section 41.001, Election Code, to elect the appropriate number of directors.

(b) Three directors are elected at one election and four at the next election in continuing sequence unless the number of directors changes under Section 8805.055. (Acts 70th Leg., R.S., Ch. 439, Secs. 9(a), 10(b).)

Sec. 8805.053. QUALIFICATIONS FOR ELECTION. (a) To be qualified for election as a director, a person must be:

(1) a resident of the district or proposed district; and

(2) at least 18 years of age.

(b) In addition to the requirements of Subsection (a), a director from a county area must be a resident of that county. (Acts 70th Leg., R.S., Ch. 439, Secs. 7(a) (part), (b).)

Sec. 8805.054. BOARD VACANCY. (a) If a vacancy occurs in the office of director, the remaining directors shall appoint a replacement who meets the qualifications of Section 8805.053.

(b) The appointed replacement serves until the next directors' election.

(c) If the position is not regularly scheduled to be filled at the next election, the person elected to fill the position serves for the remainder of the unexpired term. (Acts 70th Leg., R.S., Ch. 439, Sec. 8(b).)

Sec. 8805.055. COMPOSITION OF BOARD AND ELECTION OF DIRECTORS FOLLOWING ANNEXATION. (a) When the district annexes territory, the board shall change the number of directors, if necessary, so that:

(1) an equal number of directors is elected by district voters of each county; and

(2) one director is elected from the district at large.

(b) If the board changes the number of directors under Subsection (a), the board shall provide that, as nearly as possible, half of the directors are elected at each subsequent election in continuing sequence. (Acts 70th Leg., R.S., Ch. 439, Sec. 8(c).)

Sec. 8805.056. VOTE REQUIRED FOR OFFICIAL BOARD ACTION. An official action of the board is not valid without the affirmative vote of a majority of the directors. (Acts 70th Leg., R.S., Ch. 439, Sec. 12 (part).)

[Sections 8805.057-8805.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8805.101. GENERAL POWERS AND DUTIES. (a) Except to the extent of any conflict with this chapter or as specifically limited by this chapter, the district:

(1) is governed by and subject to Chapter 36 and Subchapters H and I, Chapter 49, Water Code; and

(2) may exercise the powers provided by the chapters described by Subdivision (1), including the power to issue bonds, impose taxes, and exercise eminent domain authority.

(b) The district shall exercise the duties provided by the chapters specified by Subsection (a)(1). (Acts 70th Leg., R.S., Ch. 439, Secs. 5, 14(l).)

Sec. 8805.102. SEAL. The board may adopt a seal for the district. (Acts 70th Leg., R.S., Ch. 439, Sec. 14(b).)

Sec. 8805.103. CONTROL, STORAGE, AND PRESERVATION OF STORM AND FLOOD WATER. The district may control, store, and preserve storm water and floodwater in the district and water of rivers and streams in the district for:

(1) irrigation of arid land;

(2) prevention of floods and flood damage in the district; and

(3) domestic, agricultural, and industrial use. (Acts 70th Leg., R.S., Ch. 439, Sec. 14(c).)

Sec. 8805.104. RECLAMATION. The district may:

(1) reclaim land in the district; and

(2) construct works, facilities, and improvements necessary to accomplish that purpose. (Acts 70th Leg., R.S., Ch. 439, Sec. 14(d).)

Sec. 8805.105. SOIL CONSERVATION AND IMPROVEMENT. The district may construct and maintain terraces or other structures on land in the district and may engage in or promote land treatment measures for soil conservation and improvement. (Acts 70th Leg., R.S., Ch. 439, Sec. 14(e).)

Sec. 8805.106. ACQUISITION OF PROPERTY. The district may acquire land or other property necessary to carry out this chapter by:

(1) gift;

(2) grant;

(3) devise;

(4) lease;

(5) purchase; or

(6) condemnation. (Acts 70th Leg., R.S., Ch. 439, Sec. 14(h).)

Sec. 8805.107. SALE AND DISPOSAL OF PROPERTY. Subject to this chapter and Chapter 36, Water Code, the district may sell or otherwise dispose of land and other property of the district that the board determines is not necessary to carry out the purposes or powers of the district. (Acts 70th Leg., R.S., Ch. 439, Sec. 14(i).)

Sec. 8805.108. BORROWING MONEY. The district may borrow money for any purpose authorized by this chapter. (Acts 70th Leg., R.S., Ch. 439, Sec. 14(k).)

Sec. 8805.109. APPEARANCE BEFORE RAILROAD COMMISSION. The district, through the directors or the district's general manager, may appear before the Railroad Commission of Texas and present evidence and information relating to any pending permit application for an injection well to be located in the district. (Acts 70th Leg., R.S., Ch. 439, Sec. 14(j).) CHAPTER 8809. ANDERSON COUNTY UNDERGROUND WATER CONSERVATION DISTRICT DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8809.001. DEFINITIONS Sec. 8809.002. NATURE OF DISTRICT Sec. 8809.003. LEGISLATIVE FINDINGS Sec. 8809.004. DISTRICT TERRITORY

[Sections 8809.005-8809.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8809.051. COMPOSITION OF BOARD; TERMS Sec. 8809.052. ELECTION DATE Sec. 8809.053. QUALIFICATIONS FOR ELECTION Sec. 8809.054. BOARD RESOLUTIONS; VOTING REQUIREMENTS Sec. 8809.055. NOTICE OF MEETINGS

[Sections 8809.056-8809.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8809.101. GROUNDWATER CONSERVATION DISTRICT

POWERS AND DUTIES Sec. 8809.102. LIMITATIONS ON DISTRICT POWERS Sec. 8809.103. REGULATION OF GROUNDWATER PUMPING AND

USE Sec. 8809.104. PURCHASE OF WATER BY INJECTION WELL

PERMIT HOLDER Sec. 8809.105. DISPOSAL OF SALT DOME LEACHATE Sec. 8809.106. WATER WELL FEES Sec. 8809.107. DISSOLUTION OF DISTRICT

CHAPTER 8809. ANDERSON COUNTY UNDERGROUND WATER CONSERVATION

DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8809.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Anderson County Underground Water Conservation District. (Acts 70th Leg., R.S., Ch. 992, Sec. 1; New.)

Sec. 8809.002. NATURE OF DISTRICT. The district is created under Section 59, Article XVI, Texas Constitution. (Acts 70th Leg., R.S., Ch. 992, Sec. 2 (part).)

Sec. 8809.003. LEGISLATIVE FINDINGS. The legislature finds that:

(1) the creation of the district is feasible and practicable;

(2) the district will benefit the land in the district;

(3) there is a public necessity for the district; and

(4) the district will provide a public use and benefit. (Acts 70th Leg., R.S., Ch. 992, Sec. 3.)

Sec. 8809.004. DISTRICT TERRITORY. The district is composed of the territory described by Section 4, Chapter 992, Acts of the 70th Legislature, Regular Session, 1987, as that territory may have been modified under:

(1) Subchapter J, Chapter 36, Water Code; or

(2) other law. (New.)

[Sections 8809.005-8809.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8809.051. COMPOSITION OF BOARD; TERMS. (a) The board is composed of nine directors.

(b) Directors serve staggered four-year terms. (Acts 70th Leg., R.S., Ch. 992, Secs. 8, 10(a), (b) (part).)

Sec. 8809.052. ELECTION DATE. Every two years, an election shall be held on the uniform election date in May to elect the appropriate number of directors. (Acts 70th Leg., R.S., Ch. 992, Sec. 9.)

Sec. 8809.053. QUALIFICATIONS FOR ELECTION. To be qualified for election as a director, a person must be:

(1) a resident of the district; and

(2) at least 18 years of age. (Acts 70th Leg., R.S., Ch. 992, Sec. 7.)

Sec. 8809.054. BOARD RESOLUTIONS; VOTING REQUIREMENTS. (a) The district shall act by resolutions adopted by the board.

(b) All directors are entitled to vote.

(c) The affirmative vote of a majority of the board is necessary to adopt a resolution. (Acts 70th Leg., R.S., Ch. 992, Secs. 13(a) (part), (b).)

Sec. 8809.055. NOTICE OF MEETINGS. The board must publish notice in a newspaper of general circulation in the district not later than the fifth day before the date the board is scheduled to meet. (Acts 70th Leg., R.S., Ch. 992, Sec. 14.)

[Sections 8809.056-8809.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8809.101. GROUNDWATER CONSERVATION DISTRICT POWERS AND DUTIES. Except to the extent of any conflict with this chapter or as specifically limited by this chapter, the district is governed by and subject to Chapter 36, Water Code, and has the powers and duties provided by Chapter 36, Water Code. (Acts 70th Leg., R.S., Ch. 992, Sec. 5 (part).)

Sec. 8809.102. LIMITATIONS ON DISTRICT POWERS. The district does not have the power to issue bonds and impose taxes under Subchapters F and G, Chapter 36, Water Code. (Acts 70th Leg., R.S., Ch. 992, Sec. 5 (part).)

Sec. 8809.103. REGULATION OF GROUNDWATER PUMPING AND USE. The district may:

(1) prohibit the pumping or use of groundwater if the district determines that the pumping would present an unreasonable risk of pollution; or

(2) limit the pumping of groundwater to uses determined by the board to benefit the district. (Acts 70th Leg., R.S., Ch. 992, Secs. 12(a), (b).)

Sec. 8809.104. PURCHASE OF WATER BY INJECTION WELL PERMIT HOLDER. The district may require persons holding a permit for an injection well to purchase water from the district. (Acts 70th Leg., R.S., Ch. 992, Sec. 12(c).)

Sec. 8809.105. DISPOSAL OF SALT DOME LEACHATE. The district may:

(1) adopt rules for the disposal of salt dome leachate in the district; or

(2) require the disposal of salt dome leachate outside the district. (Acts 70th Leg., R.S., Ch. 992, Sec. 12(d).)

Sec. 8809.106. WATER WELL FEES. (a) The district shall impose a fee on each water well at the time a permit is first issued and may impose an annual fee on each well.

(b) The amount of a well fee must be set according to:

(1) the size of the column pipe used in the well;

(2) the production capacity of the well; or

(3) the amount of water produced.

(c) The board shall adopt rules relating to the rates for the fees.

(d) The board may:

(1) adopt rules classifying the types of uses made of groundwater in the district; and

(2) use the classifications to determine, in part, the amount of fees to be imposed under this section.

(e) The district may use money collected from fees to manage and operate the district. (Acts 70th Leg., R.S., Ch. 992, Sec. 15.)

Sec. 8809.107. DISSOLUTION OF DISTRICT. The district may be dissolved as provided by Subchapter P, Chapter 51, Water Code. (Acts 70th Leg., R.S., Ch. 992, Sec. 16.) CHAPTER 8814. STERLING COUNTY UNDERGROUND WATER CONSERVATION DISTRICT DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8814.001. DEFINITIONS Sec. 8814.002. NATURE OF DISTRICT Sec. 8814.003. LEGISLATIVE FINDINGS Sec. 8814.004. DISTRICT TERRITORY Sec. 8814.005. DISTRICT NAME CHANGE Sec. 8814.006. OWNERSHIP OF GROUNDWATER AND SURFACE

WATER RIGHTS NOT AFFECTED BY CHAPTER Sec. 8814.007. PAYMENT OF ORGANIZATIONAL EXPENSES

[Sections 8814.008-8814.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 8814.051. COMPOSITION OF BOARD; TERMS Sec. 8814.052. ELECTION OF DIRECTORS Sec. 8814.053. ELECTION DATE Sec. 8814.054. QUALIFICATIONS FOR ELECTION;

ELIGIBILITY TO SERVE Sec. 8814.055. BOARD VACANCY Sec. 8814.056. COMPOSITION OF BOARD FOLLOWING

ANNEXATION OR CONSOLIDATION Sec. 8814.057. COMPENSATION; EXPENSES Sec. 8814.058. VOTE REQUIRED FOR OFFICIAL BOARD ACTION Sec. 8814.059. OFFICERS Sec. 8814.060. GENERAL MANAGER; SERVICE OF PROCESS Sec. 8814.061. TREASURER AND ATTORNEY Sec. 8814.062. ENGINEER Sec. 8814.063. PERSONNEL Sec. 8814.064. DISTRICT OFFICE Sec. 8814.065. MEETINGS Sec. 8814.066. RECORDS

[Sections 8814.067-8814.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8814.101. GROUNDWATER CONSERVATION DISTRICT

POWERS AND DUTIES Sec. 8814.102. RULES Sec. 8814.103. EMINENT DOMAIN Sec. 8814.104. CERTAIN PERMIT DENIALS PROHIBITED Sec. 8814.105. CONTROL, STORAGE, AND PRESERVATION OF

STORM AND FLOOD WATER Sec. 8814.106. RECLAMATION Sec. 8814.107. SOIL CONSERVATION AND IMPROVEMENT Sec. 8814.108. ACQUISITION OF PROPERTY Sec. 8814.109. SALE AND DISPOSAL OF PROPERTY Sec. 8814.110. IMPROVEMENTS AND FACILITIES Sec. 8814.111. INPUT WELLS Sec. 8814.112. APPEARANCE BEFORE RAILROAD COMMISSION Sec. 8814.113. STUDIES AND SURVEYS Sec. 8814.114. RESEARCH; INFORMATION Sec. 8814.115. DISTRICT PLANS Sec. 8814.116. PAYMENT OF JUDGMENTS

CHAPTER 8814. STERLING COUNTY UNDERGROUND WATER CONSERVATION

DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8814.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Sterling County Underground Water Conservation District. (Acts 70th Leg., R.S., Ch. 915, Sec. 2; New.)

Sec. 8814.002. NATURE OF DISTRICT. The district is created under Section 59, Article XVI, Texas Constitution, to provide for the conservation, preservation, protection, recharge, and prevention of waste and pollution of the district's groundwater and surface water, consistent with the objectives of Section 59, Article XVI, Texas Constitution, and Chapter 36 and Subchapters H and I, Chapter 49, Water Code. (Acts 70th Leg., R.S., Ch. 915, Secs. 1 (part), 29.)

Sec. 8814.003. LEGISLATIVE FINDINGS. The legislature finds that:

(1) the organization of the district is feasible and practicable;

(2) the land to be included in and the residents of the district will benefit from the creation of the district;

(3) there is a public necessity for the district; and

(4) the creation of the district will further the public welfare. (Acts 70th Leg., R.S., Ch. 915, Sec. 3.)

Sec. 8814.004. DISTRICT TERRITORY. The district is composed of the territory in Sterling County unless the district's territory has been modified under:

(1) Subchapter J or K, Chapter 36, Water Code; or

(2) other law. (Acts 70th Leg., R.S., Ch. 915, Sec. 4; New.)

Sec. 8814.005. DISTRICT NAME CHANGE. The board may change the name of the district if additional territory is annexed to or consolidated with the district. (Acts 70th Leg., R.S., Ch. 915, Sec. 28.)

Sec. 8814.006. OWNERSHIP OF GROUNDWATER AND SURFACE WATER RIGHTS NOT AFFECTED BY CHAPTER. The ownership and rights of the owner of land, the owner's lessees, and assigns in groundwater and any surface water rights are recognized, and this chapter does not deprive or divest the owner, the owner's lessees, or assigns of those ownership rights. (Acts 70th Leg., R.S., Ch. 915, Sec. 45.)

Sec. 8814.007. PAYMENT OF ORGANIZATIONAL EXPENSES. (a) The board may pay:

(1) all costs and expenses necessarily incurred in the creation and organization of the district;

(2) legal fees; and

(3) other incidental expenses.

(b) The board may reimburse a person for money advanced for a purpose described by Subsection (a).

(c) A payment may be made from maintenance taxes or other district revenue. (Acts 70th Leg., R.S., Ch. 915, Sec. 47.)

[Sections 8814.008-8814.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 8814.051. COMPOSITION OF BOARD; TERMS. (a) The board is composed of five directors.

(b) Directors serve staggered four-year terms.

(c) A director takes office at the first regular meeting of the board following the director's election to the board. (Acts 70th Leg., R.S., Ch. 915, Secs. 8(a), 11, 12.)

Sec. 8814.052. ELECTION OF DIRECTORS. One director is elected from the district at large. One director is elected from each county commissioners precinct. (Acts 70th Leg., R.S., Ch. 915, Sec. 8(b).)

Sec. 8814.053. ELECTION DATE. Every two years, an election shall be held on the uniform election date in May to elect the appropriate number of directors. (Acts 70th Leg., R.S., Ch. 915, Sec. 10.)

Sec. 8814.054. QUALIFICATIONS FOR ELECTION; ELIGIBILITY TO SERVE. (a) To be qualified for election as a director, a person must be:

(1) a resident of the district; and

(2) at least 18 years of age.

(b) In addition to the requirements of Subsection (a), a person who is a director from a county commissioners precinct must be a resident of that precinct unless the composition of the board is changed by annexation or consolidation. (Acts 70th Leg., R.S., Ch. 915, Sec. 9.)

Sec. 8814.055. 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., R.S., Ch. 915, Sec. 13.)

Sec. 8814.056. COMPOSITION OF BOARD FOLLOWING ANNEXATION OR CONSOLIDATION. If the district annexes territory or consolidates with another district, the board shall determine the composition of the board in a manner that is equitable for the residents of the district as provided by Chapter 36, Water Code. (Acts 70th Leg., R.S., Ch. 915, Sec. 8(c).)

Sec. 8814.057. COMPENSATION; EXPENSES. (a) A director or officer serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties.

(b) The expenses described by Subsection (a) must be:

(1) reported in the district's records; and

(2) approved by the board. (Acts 70th Leg., R.S., Ch. 915, Sec. 15.)

Sec. 8814.058. VOTE REQUIRED FOR OFFICIAL BOARD ACTION. An official action of the board is not valid without the affirmative vote of a majority of the directors. (Acts 70th Leg., R.S., Ch. 915, Sec. 17 (part).)

Sec. 8814.059. OFFICERS. (a) After each directors' election, the board shall:

(1) hold a regular meeting at the district office; and

(2) organize by electing from the directors a president, a vice president, and a secretary.

(b) A person selected to serve as president, vice president, or secretary serves in that capacity for a two-year term.

(c) The president, vice president, and secretary shall perform the duties and may exercise the powers specifically provided by this chapter or by order of the board. (Acts 70th Leg., R.S., Ch. 915, Secs. 16(a), (b), (d).)

Sec. 8814.060. GENERAL MANAGER; SERVICE OF PROCESS. (a) The general manager shall execute a bond in the amount determined by the board, payable to the district, and conditioned on the faithful performance of the general manager's duties. The district shall pay for the bond.

(b) The general manager is entitled to receive the compensation provided by the district's budget.

(c) Service of process in a suit may be had by serving the general manager. (Acts 70th Leg., R.S., Ch. 915, Secs. 19(b), (c), 27(a) (part).)

Sec. 8814.061. TREASURER AND ATTORNEY. (a) The board may appoint a treasurer and an attorney for the district.

(b) The person appointed as treasurer shall execute a bond in the amount determined by the board, payable to the district, conditioned on the faithful performance of the treasurer's duties. The district shall pay for the bond.

(c) A person appointed under this section is entitled to the compensation provided by the district's budget. (Acts 70th Leg., R.S., Ch. 915, Sec. 18.)

Sec. 8814.062. ENGINEER. The board may:

(1) appoint or contract with a competent professional engineer for the district; and

(2) determine the amount of compensation to be paid to the engineer. (Acts 70th Leg., R.S., Ch. 915, Sec. 20.)

Sec. 8814.063. PERSONNEL. (a) The general manager or the board may:

(1) employ other persons necessary to properly handle the district's business and operation; and

(2) employ or contract with expert and specialized personnel who are necessary to carry out this chapter.

(b) The board shall determine the terms of employment and the compensation to be paid to employees described by this section.

(c) The district shall pay for any bond that an employee of or person under contract with the district is required to furnish under Section 36.057(d), Water Code.

(d) The general manager or the board may dismiss an employee of the district. (Acts 70th Leg., R.S., Ch. 915, Secs. 21(a), (b), (c), (d) (part).)

Sec. 8814.064. DISTRICT OFFICE. The board shall maintain an office in the district for conducting district business. (Acts 70th Leg., R.S., Ch. 915, Sec. 22.)

Sec. 8814.065. MEETINGS. The board shall hold regular meetings at the district office on a date established by the board. (Acts 70th Leg., R.S., Ch. 915, Sec. 23.)

Sec. 8814.066. RECORDS. The board shall keep a complete written account of board meetings and other proceedings and shall preserve the board's minutes, contracts, records, plans, notices, accounts, receipts, and records in a secure manner at the district's office. (Acts 70th Leg., R.S., Ch. 915, Sec. 24(a).)

[Sections 8814.067-8814.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8814.101. GROUNDWATER CONSERVATION DISTRICT POWERS AND DUTIES. Except to the extent of any conflict with this chapter or as specifically limited by this chapter, the district may exercise the powers granted by, and shall exercise the duties provided by, Chapter 36, Water Code, to carry out the purpose of the district and this chapter. (Acts 70th Leg., R.S., Ch. 915, Secs. 31(a), 46.)

Sec. 8814.102. RULES. (a) The board may adopt rules necessary to carry out the purpose and powers under this chapter.

(b) In addition to the rules adopted under Subsection (a), the board may adopt and enforce rules as provided by Chapter 36 and Subchapters H and I, Chapter 49, Water Code. (Acts 70th Leg., R.S., Ch. 915, Secs. 30(a) (part), (b).)

Sec. 8814.103. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire by condemnation a fee simple or other interest in property in the district if the property interest is necessary to the exercise of the authority conferred by this chapter.

(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 deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code. (Acts 70th Leg., R.S., Ch. 915, Secs. 42(a), (b).)

Sec. 8814.104. CERTAIN PERMIT DENIALS PROHIBITED. If the district regulates production of groundwater by permit as authorized by Chapter 36, Water Code, the board may not deny a permit to drill a well to the owner of land, or the owner's heirs, assigns, and lessees on that land, and the right to produce water from that well under rules adopted by the district. (Acts 70th Leg., R.S., Ch. 915, Sec. 32.)

Sec. 8814.105. CONTROL, STORAGE, AND PRESERVATION OF STORM AND FLOOD WATER. The district may control, store, and preserve the storm and flood water in the district and the water of the rivers and streams in the district for:

(1) irrigation of arid land;

(2) prevention of floods and flood damage in the district; and

(3) domestic, agricultural, municipal, and industrial uses. (Acts 70th Leg., R.S., Ch. 915, Sec. 36.)

Sec. 8814.106. RECLAMATION. The district may:

(1) reclaim land in the district; and

(2) construct works, facilities, and improvements necessary to accomplish that purpose. (Acts 70th Leg., R.S., Ch. 915, Sec. 37.)

Sec. 8814.107. SOIL CONSERVATION AND IMPROVEMENT. The district may construct and maintain terraces or other structures on land in the district and may engage in or promote land treatment measures for soil conservation and improvement. (Acts 70th Leg., R.S., Ch. 915, Sec. 38.)

Sec. 8814.108. ACQUISITION OF PROPERTY. The district may acquire land or other property necessary to carry out this chapter by:

(1) gift;

(2) devise;

(3) lease;

(4) purchase; or

(5) condemnation. (Acts 70th Leg., R.S., Ch. 915, Sec. 41.)

Sec. 8814.109. SALE AND DISPOSAL OF PROPERTY. Subject to this chapter and Chapter 36 and Subchapters H and I, Chapter 49, Water Code, the district may sell or otherwise dispose of land and other property of the district that is not necessary to carry out the purpose or powers of the district as determined by the board. (Acts 70th Leg., R.S., Ch. 915, Sec. 43.)

Sec. 8814.110. IMPROVEMENTS AND FACILITIES. (a) The district may construct or acquire and improve and maintain works, facilities, and improvements necessary to carry out the purpose, powers, and plans of the district.

(b) The district must construct and acquire works, facilities, and improvements in the manner provided by Chapter 49, Water Code. (Acts 70th Leg., R.S., Ch. 915, Sec. 39.)

Sec. 8814.111. INPUT WELLS. The district may drill, equip, operate, and maintain input wells, pumps, and other facilities to carry out its purpose and powers under this chapter. (Acts 70th Leg., R.S., Ch. 915, Sec. 40.)

Sec. 8814.112. APPEARANCE BEFORE RAILROAD COMMISSION. The district, through the directors or the district's general manager, may appear before the Railroad Commission of Texas and present evidence and information relating to a pending permit application for an injection well to be located in the district. (Acts 70th Leg., R.S., Ch. 915, Sec. 44.)

Sec. 8814.113. STUDIES AND SURVEYS. (a) The board may have a professional engineer conduct studies and surveys of the groundwater and surface water supplies in the district and the facilities available for use in the conservation, preservation, protection, recharge, and prevention of waste and pollution of those water resources.

(b) A professional engineer may determine the quantities of groundwater and surface water in the district. (Acts 70th Leg., R.S., Ch. 915, Sec. 33.)

Sec. 8814.114. RESEARCH; INFORMATION. The district may engage in research projects and shall develop information to be used by the district in preparing and implementing the district's plans and in carrying out the district's powers and duties under this chapter. (Acts 70th Leg., R.S., Ch. 915, Sec. 35.)

Sec. 8814.115. DISTRICT PLANS. (a) The district shall develop and implement comprehensive plans for the conservation, preservation, protection, recharge, and prevention of waste and pollution of groundwater and surface water in the district.

(b) The plans must include all works, facilities, and improvements necessary to implement the plans and the specifications for those works, facilities, and improvements. (Acts 70th Leg., R.S., Ch. 915, Sec. 34.)

Sec. 8814.116. 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 indebtedness of the district. (Acts 70th Leg., R.S., Ch. 915, Sec. 27(c).) CHAPTER 8816. CULBERSON COUNTY GROUNDWATER CONSERVATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8816.001. DEFINITIONS Sec. 8816.002. NATURE OF DISTRICT Sec. 8816.003. FINDINGS OF PUBLIC USE AND BENEFIT Sec. 8816.004. DISTRICT TERRITORY Sec. 8816.005. CONFLICTS OF LAW

[Sections 8816.006-8816.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8816.051. COMPOSITION OF BOARD; TERMS Sec. 8816.052. ELECTION DATE

[Sections 8816.053-8816.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8816.101. GROUNDWATER CONSERVATION DISTRICT

POWERS AND DUTIES Sec. 8816.102. CONTRACT FOR AND SALE AND DISTRIBUTION

OF WATER

CHAPTER 8816. CULBERSON COUNTY GROUNDWATER CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8816.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Culberson County Groundwater Conservation District. (Acts 75th Leg., R.S., Ch. 1075, Sec. 2; New.)

Sec. 8816.002. NATURE OF DISTRICT. The district is a groundwater conservation district in Culberson County created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 75th Leg., R.S., Ch. 1075, Secs. 1(a) (part), (b).)

Sec. 8816.003. FINDINGS OF PUBLIC USE AND BENEFIT. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution. (Acts 75th Leg., R.S., Ch. 1075, Sec. 4.)

Sec. 8816.004. DISTRICT TERRITORY. The district is composed of the territory described by Section 3, Chapter 1075, Acts of the 75th Legislature, Regular Session, 1997, as that territory may have been modified under:

(1) Subchapter J, Chapter 36, Water Code; or

(2) other law. (New.)

Sec. 8816.005. CONFLICTS OF LAW. (a) Except as otherwise provided by this chapter, if there is a conflict between this chapter and Chapter 36 or 49, Water Code, this chapter controls.

(b) If there is a conflict between Chapters 36 and 49, Water Code, Chapter 36 controls. (Acts 75th Leg., R.S., Ch. 1075, Sec. 11.)

[Sections 8816.006-8816.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8816.051. COMPOSITION OF BOARD; TERMS. (a) The district is governed by a board of five directors.

(b) Directors serve staggered four-year terms. (Acts 75th Leg., R.S., Ch. 1075, Secs. 6(a), (d).)

Sec. 8816.052. ELECTION DATE. Every two years on the uniform election date in May, the appropriate number of directors shall be elected to the board. (Acts 75th Leg., R.S., Ch. 1075, Sec. 9(b).)

[Sections 8816.053-8816.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8816.101. GROUNDWATER CONSERVATION DISTRICT POWERS AND DUTIES. The district has the rights, powers, privileges, functions, and duties provided by the general law of this state, including Chapters 36 and 49, Water Code, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution. (Acts 75th Leg., R.S., Ch. 1075, Sec. 5(a) (part).)

Sec. 8816.102. CONTRACT FOR AND SALE AND DISTRIBUTION OF WATER. The district may contract for, sell, and distribute water from a water import authority or other entity. (Acts 75th Leg., R.S., Ch. 1075, Sec. 10.) CHAPTER 8825. BLUEBONNET GROUNDWATER CONSERVATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8825.001. DEFINITIONS Sec. 8825.002. NATURE OF DISTRICT Sec. 8825.003. FINDINGS OF PUBLIC USE AND BENEFIT Sec. 8825.004. DISTRICT TERRITORY

[Sections 8825.005-8825.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8825.051. COMPOSITION OF BOARD Sec. 8825.052. TERMS Sec. 8825.053. APPOINTMENT OF DIRECTORS Sec. 8825.054. BOARD VACANCY Sec. 8825.055. COMPENSATION; EXPENSES Sec. 8825.056. VOTE REQUIRED FOR BOARD ACTION

[Sections 8825.057-8825.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8825.101. GROUNDWATER CONSERVATION DISTRICT

POWERS AND DUTIES Sec. 8825.102. LIMITATIONS ON DISTRICT POWERS Sec. 8825.103. REGISTRATION, EQUIPMENT, AND

APPLICABILITY OF FEES Sec. 8825.104. CERTAIN PERMIT DENIALS PROHIBITED Sec. 8825.105. PERMIT FEES Sec. 8825.106. ADDITIONAL FEE; SURCHARGE Sec. 8825.107. ANNUAL ASSESSMENT AND USE OF FEES Sec. 8825.108. MITIGATION ASSISTANCE Sec. 8825.109. COORDINATION WITH OTHER ENTITIES

CHAPTER 8825. BLUEBONNET GROUNDWATER CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8825.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Bluebonnet Groundwater Conservation District. (Acts 77th Leg., R.S., Ch. 1361, Sec. 2; New.)

Sec. 8825.002. NATURE OF DISTRICT. (a) The district is a groundwater conservation district created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution.

(b) The purpose of this chapter is to create a locally controlled district to:

(1) protect and recharge groundwater;

(2) prevent pollution or waste of groundwater;

(3) control subsidence caused by withdrawal of water from the groundwater reservoirs in the area; and

(4) regulate the transport of water out of the district. (Acts 77th Leg., R.S., Ch. 1361, Secs. 1(a) (part), (b), (c).)

Sec. 8825.003. FINDINGS OF PUBLIC USE AND BENEFIT. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1361, Sec. 4.)

Sec. 8825.004. DISTRICT TERRITORY. The district's boundaries are coextensive with the boundaries of Austin, Grimes, Walker, and Waller Counties, unless the district's territory has been modified under:

(1) Subchapter J, Chapter 36, Water Code; or

(2) other law. (Acts 77th Leg., R.S., Ch. 1361, Secs. 1(a) (part), 3; New.)

[Sections 8825.005-8825.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8825.051. COMPOSITION OF BOARD. The district is governed by a board of not fewer than 8 or more than 20 directors appointed as provided by Section 8825.053. (Acts 77th Leg., R.S., Ch. 1361, Sec. 12(a).)

Sec. 8825.052. TERMS. (a) Directors serve staggered four-year terms.

(b) A director may serve consecutive terms. (Acts 77th Leg., R.S., Ch. 1361, Secs. 12(c), (f).)

Sec. 8825.053. APPOINTMENT OF DIRECTORS. (a) The commissioners courts of the counties in the district, if the district has two to five counties, shall each appoint four directors, of whom:

(1) one must represent municipal interests;

(2) one must represent agricultural interests;

(3) one must represent industrial interests; and

(4) one must represent rural water suppliers' interests.

(b) If the district consists of one county, the commissioners court of that county shall appoint eight directors, of whom:

(1) two must represent municipal interests;

(2) two must represent agricultural interests;

(3) two must represent industrial interests; and

(4) two must represent rural water suppliers' interests.

(c) Every two years after the date on which all initial directors qualified as required by Section 36.055, Water Code, the appropriate commissioners courts shall each appoint the appropriate number of directors. (Acts 77th Leg., R.S., Ch. 1361, Secs. 13(a), (b), (d) (part).)

Sec. 8825.054. BOARD VACANCY. (a) If there is a vacancy on the board, the commissioners court that appointed the director who vacated the office shall appoint a director to serve the remainder of the term.

(b) In making the appointment, the commissioners court shall appoint a director to represent the interest of the director who vacated the office. (Acts 77th Leg., R.S., Ch. 1361, Sec. 12(g).)

Sec. 8825.055. COMPENSATION; EXPENSES. (a) A director is not entitled to receive compensation for serving as a director.

(b) A director may be reimbursed for actual reasonable expenses incurred in discharging official duties. (Acts 77th Leg., R.S., Ch. 1361, Sec. 12(h).)

Sec. 8825.056. VOTE REQUIRED FOR BOARD ACTION. A majority vote of a quorum of the board is required for board action. If there is a tie vote, the proposed action fails. (Acts 77th Leg., R.S., Ch. 1361, Sec. 12(i).)

[Sections 8825.057-8825.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8825.101. GROUNDWATER CONSERVATION DISTRICT POWERS AND DUTIES. Except as otherwise provided by this chapter, the district has the rights, powers, privileges, functions, and duties provided by the general law of this state, including Chapter 36, Water Code, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1361, Sec. 5(a) (part).)

Sec. 8825.102. LIMITATIONS ON DISTRICT POWERS. The district does not have the authority granted by:

(1) Section 36.105, Water Code, relating to eminent domain; and

(2) Sections 36.020 and 36.201-36.204, Water Code, relating to taxes. (Acts 77th Leg., R.S., Ch. 1361, Sec. 5(b).)

Sec. 8825.103. REGISTRATION, EQUIPMENT, AND MAINTENANCE OF EXEMPTED WELLS; APPLICABILITY OF FEES. (a) A well exempted under Section 36.117(a) or (b), Water Code, may be:

(1) registered in accordance with rules adopted by the district; and

(2) equipped and maintained in accordance with Section 36.117(h)(2), Water Code.

(b) The district may require the driller of a well exempted as provided by Subsection (a) to file the drilling log with the district.

(c) Groundwater withdrawn from an exempted well and subsequently transported outside the boundaries of the district is subject to all applicable production and export fees imposed under Sections 8825.105 and 8825.106. (Acts 77th Leg., R.S., Ch. 1361, Secs. 7(i) (part), (j), (l).)

Sec. 8825.104. CERTAIN PERMIT DENIALS PROHIBITED. The district may not deny the owner of a tract of land, or the owner's lessee, who does not have a well equipped to produce more than 25,000 gallons each day on the tract, either a permit to drill a well on the tract or the privilege to produce groundwater from the tract, subject to any rules of the district. (Acts 77th Leg., R.S., Ch. 1361, Sec. 7(c).)

Sec. 8825.105. PERMIT FEES. (a) The board by rule may impose a reasonable fee on each well that is not exempt from regulation by the district and for which a permit is issued by the district.

(b) The fee may be based on:

(1) the size of column pipe used by the well; or

(2) the actual, authorized, or anticipated amount of water to be withdrawn from the well.

(c) The fee may not exceed:

(1) $1 for each acre-foot payable annually for water used for agricultural use; or

(2) 17 cents for each thousand gallons for water used for any other purpose. (Acts 77th Leg., R.S., Ch. 1361, Secs. 6(a), (b).)

Sec. 8825.106. ADDITIONAL FEE; SURCHARGE. In addition to a fee imposed under Section 8825.105, the district may impose a reasonable fee or surcharge for an export fee using one of the following methods:

(1) a fee negotiated between the district and the transporter; or

(2) a combined production and export fee not to exceed 17 cents for each thousand gallons for water used. (Acts 77th Leg., R.S., Ch. 1361, Sec. 6(c).)

Sec. 8825.107. ANNUAL ASSESSMENT AND USE OF FEES. A fee imposed under Section 8825.105 or 8825.106 may be:

(1) assessed annually; and

(2) used to fund the costs of district operations. (Acts 77th Leg., R.S., Ch. 1361, Sec. 6(d).)

Sec. 8825.108. MITIGATION ASSISTANCE. In addition to the authority granted by Chapter 36, Water Code, the district may assist in the mediation between landowners regarding the mitigation of a loss of existing groundwater supply of exempt domestic and livestock users due to the groundwater pumping of others. (Acts 77th Leg., R.S., Ch. 1361, Sec. 8.)

Sec. 8825.109. COORDINATION WITH OTHER ENTITIES. The district may:

(1) coordinate activities with the Central Carrizo-Wilcox Coordinating Council and appoint a nonvoting representative to the Central Carrizo-Wilcox Coordinating Council; and

(2) coordinate activities with the Harris-Galveston Coastal Subsidence District or other groundwater conservation districts to manage portions of the Gulf Coast Aquifer. (Acts 77th Leg., R.S., Ch. 1361, Sec. 11.) CHAPTER 8826. BRAZORIA COUNTY GROUNDWATER CONSERVATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8826.001. DEFINITIONS Sec. 8826.002. NATURE OF DISTRICT Sec. 8826.003. FINDINGS OF PUBLIC USE AND BENEFIT Sec. 8826.004. DISTRICT TERRITORY

[Sections 8826.005-8826.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8826.051. COMPOSITION OF BOARD; TERMS Sec. 8826.052. ELECTION OF DIRECTORS Sec. 8826.053. ELECTION DATE Sec. 8826.054. ELIGIBILITY

[Sections 8826.055-8826.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8826.101. GROUNDWATER CONSERVATION DISTRICT

POWERS AND DUTIES Sec. 8826.102. LIMITATIONS ON DISTRICT POWERS Sec. 8826.103. WELLS EXEMPT FROM REGULATION

[Sections 8826.104-8826.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8826.151. FEES

CHAPTER 8826. BRAZORIA COUNTY GROUNDWATER CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8826.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Brazoria County Groundwater Conservation District. (Acts 78th Leg., R.S., Ch. 772, Sec. 2; New.)

Sec. 8826.002. NATURE OF DISTRICT. The district is a groundwater conservation district in Brazoria County created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 78th Leg., R.S., Ch. 772, Secs. 1(a) (part), (b).)

Sec. 8826.003. FINDINGS OF PUBLIC USE AND BENEFIT. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution. (Acts 78th Leg., R.S., Ch. 772, Sec. 4.)

Sec. 8826.004. DISTRICT TERRITORY. The district's boundaries are coextensive with the boundaries of Brazoria County, Texas, unless the district's territory has been modified under:

(1) Subchapter J, Chapter 36, Water Code; or

(2) other law. (Acts 78th Leg., R.S., Ch. 772, Sec. 3; New.)

[Sections 8826.005-8826.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8826.051. COMPOSITION OF BOARD; TERMS. (a) The district is governed by a board of five directors.

(b) Directors serve staggered four-year terms. (Acts 78th Leg., R.S., Ch. 772, Secs. 6(a), (d).)

Sec. 8826.052. ELECTION OF DIRECTORS. (a) Directors are elected according to the commissioners precinct method as provided by this section.

(b) One director is elected by the voters of the entire district. One director is elected from each county commissioners precinct by the voters of that precinct.

(c) A person shall indicate on the application for a place on the ballot:

(1) the precinct that the person seeks to represent; or

(2) that the person seeks to represent the district at large.

(d) When the boundaries of the county commissioners precincts are redrawn under Section 18, Article V, Texas Constitution, a director in office on the effective date of the change, or elected or appointed before the effective date of the change to a term of office beginning on or after the effective date of the change, shall serve the term or the remainder of the term in the precinct to which elected or appointed even though the change in boundaries places the director's residence outside the precinct for which the director was elected or appointed. (Acts 78th Leg., R.S., Ch. 772, Secs. 8(a), (b), (d), (e).)

Sec. 8826.053. ELECTION DATE. On the first Tuesday after the first Monday in November of each even-numbered year, the appropriate number of directors shall be elected. (Acts 78th Leg., R.S., Ch. 772, Sec. 10(b).)

Sec. 8826.054. ELIGIBILITY. (a) To be eligible to be a candidate for or to serve as director at large, a person must be a registered voter in the district.

(b) To be eligible to be a candidate for or to serve as director from a county commissioners precinct, a person must be a registered voter of that precinct, except as provided by Section 8826.052(d). (Acts 78th Leg., R.S., Ch. 772, Sec. 8(c).)

[Sections 8826.055-8826.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8826.101. GROUNDWATER CONSERVATION DISTRICT POWERS AND DUTIES. Except as provided by Section 8826.102, the district has the rights, powers, privileges, functions, and duties provided by the general law of this state, including Chapter 36, Water Code, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution. (Acts 78th Leg., R.S., Ch. 772, Sec. 5 (part).)

Sec. 8826.102. LIMITATIONS ON DISTRICT POWERS. The district may not:

(1) impose a tax of any type;

(2) exercise the power of eminent domain;

(3) acquire land;

(4) issue or sell bonds; or

(5) purchase, sell, transport, or distribute surface water or groundwater. (Acts 78th Leg., R.S., Ch. 772, Sec. 11(a).)

Sec. 8826.103. WELLS EXEMPT FROM REGULATION. (a) For a new or existing water well on private property that serves only a single-family dwelling used only for domestic purposes, the district may not:

(1) assess or collect a fee of any type; or

(2) require that a meter be placed on the well.

(b) For a new or existing water well used only for agriculture, as that term is defined by Section 36.001, Water Code, the district may not:

(1) assess or collect a fee of any type; or

(2) require that a meter be placed on the well. (Acts 78th Leg., R.S., Ch. 772, Secs. 11(b), (c).)

[Sections 8826.104-8826.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8826.151. FEES. Unless exempt under this chapter or Chapter 36, Water Code, the board may establish by schedule and impose:

(1) a production fee under Section 36.205, Water Code;

(2) an export fee for groundwater transferred out of the district in an amount not to exceed 150 percent of the maximum wholesale water rate charged by the City of Houston; and

(3) other fees as authorized by Chapter 36, Water Code. (Acts 78th Leg., R.S., Ch. 772, Sec. 12.) CHAPTER 8827. BREWSTER COUNTY GROUNDWATER CONSERVATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8827.001. DEFINITIONS Sec. 8827.002. NATURE OF DISTRICT Sec. 8827.003. FINDINGS OF PUBLIC USE AND BENEFIT Sec. 8827.004. DISTRICT TERRITORY Sec. 8827.005. DISTRICT NAME CHANGE

[Sections 8827.006-8827.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8827.051. COMPOSITION OF BOARD; TERMS Sec. 8827.052. APPOINTMENT OF DIRECTORS Sec. 8827.053. BOARD VACANCY Sec. 8827.054. COMPENSATION; EXPENSES

[Sections 8827.055-8827.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8827.101. GROUNDWATER CONSERVATION DISTRICT

POWERS AND DUTIES Sec. 8827.102. LIMITATIONS ON DISTRICT POWERS RELATING

TO REAL PROPERTY Sec. 8827.103. GROUNDWATER TRANSFER RESTRICTIONS AND

FEES

CHAPTER 8827. BREWSTER COUNTY GROUNDWATER CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8827.001. DEFINITIONS. In this chapter:

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

(2) "Commissioners court" means the Brewster County Commissioners Court.

(3) "Director" means a board member.

(4) "District" means the Brewster County Groundwater Conservation District. (Acts 77th Leg., R.S., Ch. 1291, Sec. 2; New.)

Sec. 8827.002. NATURE OF DISTRICT. The district is a groundwater conservation district in Brewster County created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1291, Secs. 1(a) (part), (b).)

Sec. 8827.003. FINDINGS OF PUBLIC USE AND BENEFIT. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1291, Sec. 4.)

Sec. 8827.004. DISTRICT TERRITORY. The district's boundaries are coextensive with the boundaries of Brewster County unless the district's territory has been modified under:

(1) Subchapter J, Chapter 36, Water Code; or

(2) other law. (Acts 77th Leg., R.S., Ch. 1291, Sec. 3; New.)

Sec. 8827.005. DISTRICT NAME CHANGE. The board by resolution may change the name of the district if the district annexes territory. (Acts 77th Leg., R.S., Ch. 1291, Sec. 10.)

[Sections 8827.006-8827.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8827.051. COMPOSITION OF BOARD; TERMS. (a) The district is governed by a board of seven directors appointed by the commissioners court.

(b) The board is composed of:

(1) three directors who represent the municipalities or population centers of Alpine, Lajitas, Marathon, Study Butte, and Terlingua;

(2) three directors who represent the rural part of Brewster County, exclusive of the municipalities or population centers of Alpine, Lajitas, Marathon, Study Butte, and Terlingua; and

(3) one director who represents Brewster County at large.

(c) A director described by Subsection (b)(1) must reside in or in the immediate area of a municipality or population center listed in that subsection.

(d) At least one director must reside in each county commissioners precinct.

(e) Directors serve staggered three-year terms. (Acts 77th Leg., R.S., Ch. 1291, Secs. 7(a), (b), (c), (d), (f).)

Sec. 8827.052. APPOINTMENT OF DIRECTORS. The commissioners court shall appoint a director to succeed a director on or before the date the director's term expires. (Acts 77th Leg., R.S., Ch. 1291, Sec. 7(i).)

Sec. 8827.053. BOARD VACANCY. If there is a vacancy on the board, the commissioners court shall appoint a director to serve the remainder of the term. (Acts 77th Leg., R.S., Ch. 1291, Sec. 7(h).)

Sec. 8827.054. COMPENSATION; EXPENSES. A director may not receive a salary or other compensation for service as a director but may be reimbursed for actual expenses of attending meetings at the rate in effect for employees of Brewster County. (Acts 77th Leg., R.S., Ch. 1291, Sec. 7(j).)

[Sections 8827.055-8827.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8827.101. GROUNDWATER CONSERVATION DISTRICT POWERS AND DUTIES. The district has the rights, powers, privileges, functions, and duties provided by the general law of this state, including Chapter 36, Water Code, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1291, Sec. 5(a) (part).)

Sec. 8827.102. LIMITATIONS ON DISTRICT POWERS RELATING TO REAL PROPERTY. Notwithstanding other law:

(1) the district may not exercise the power of eminent domain; and

(2) an agent or employee of the district may not enter private property without the permission of the landowner or the landowner's agent except to inspect a permitted well and to ensure compliance with district rules. (Acts 77th Leg., R.S., Ch. 1291, Sec. 6.)

Sec. 8827.103. GROUNDWATER TRANSFER RESTRICTIONS AND FEES. (a) The district may limit and impose fees on the transfer of groundwater out of the district if, after public notice and a hearing and in accordance with district rules, the district finds that restrictions or fees on transfer are in the district's best interests.

(b) In making the determination under Subsection (a), the district shall consider:

(1) the availability of water in the district and in the receiving area during the period for which the proposed water transfer is requested;

(2) the availability of feasible and practicable alternative supplies to the applicant proposing the transfer;

(3) the amount and proposed use of the transferred water in the receiving area;

(4) the projected effect of the proposed transfer on aquifer conditions, depletion, or subsidence or effects on existing permit holders or other groundwater users within the district;

(5) the projected environmental and economic effects on the district; and

(6) the compatibility of the proposed transfer with the approved regional plan and certified district management plan. (Acts 77th Leg., R.S., Ch. 1291, Sec. 5(c).) CHAPTER 8828. CLEAR FORK GROUNDWATER CONSERVATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8828.001. DEFINITIONS Sec. 8828.002. NATURE OF DISTRICT Sec. 8828.003. FINDINGS OF PUBLIC USE AND BENEFIT Sec. 8828.004. DISTRICT TERRITORY Sec. 8828.005. DISTRICT NAME CHANGE Sec. 8828.006. CONFLICTS OF LAW

[Sections 8828.007-8828.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8828.051. COMPOSITION OF BOARD; TERMS Sec. 8828.052. ELECTION OF DIRECTORS Sec. 8828.053. ELECTION DATE Sec. 8828.054. QUALIFICATIONS FOR OFFICE Sec. 8828.055. BOARD VACANCY

[Sections 8828.056-8828.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8828.101. GROUNDWATER CONSERVATION DISTRICT

POWERS AND DUTIES Sec. 8828.102. NO EMINENT DOMAIN POWER

[Sections 8828.103-8828.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8828.151. DISTRICT REVENUE

CHAPTER 8828. CLEAR FORK GROUNDWATER CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8828.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Clear Fork Groundwater Conservation District. (Acts 77th Leg., R.S., Ch. 1474, Sec. 2; New.)

Sec. 8828.002. NATURE OF DISTRICT. The district is a groundwater conservation district in Fisher County created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1474, Secs. 1(a) (part), (b).)

Sec. 8828.003. FINDINGS OF PUBLIC USE AND BENEFIT. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1474, Sec. 4.)

Sec. 8828.004. DISTRICT TERRITORY. The district's boundaries are coextensive with the boundaries of Fisher County, Texas, unless the district's territory has been modified under:

(1) Subchapter J, Chapter 36, Water Code; or

(2) other law. (Acts 77th Leg., R.S., Ch. 1474, Sec. 3; New.)

Sec. 8828.005. DISTRICT NAME CHANGE. The board may change the district's name when the district annexes territory. (Acts 77th Leg., R.S., Ch. 1474, Sec. 13.)

Sec. 8828.006. CONFLICTS OF LAW. (a) Except as otherwise provided by this chapter, if there is a conflict between this chapter and Chapter 36 or 49, Water Code, this chapter controls.

(b) If there is a conflict between Chapters 36 and 49, Water Code, Chapter 36 controls. (Acts 77th Leg., R.S., Ch. 1474, Sec. 12.)

[Sections 8828.007-8828.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8828.051. COMPOSITION OF BOARD; TERMS. (a) The district is governed by a board of five directors.

(b) Directors serve staggered four-year terms. (Acts 77th Leg., R.S., Ch. 1474, Secs. 6(a), (d).)

Sec. 8828.052. ELECTION OF DIRECTORS. (a) Directors are elected according to the commissioners precinct method as provided by this section.

(b) One director is elected by the voters of the entire district. One director is elected from each county commissioners precinct by the voters of that precinct.

(c) A person shall indicate on the application for a place on the ballot:

(1) the precinct that the person seeks to represent; or

(2) that the person seeks to represent the district at large.

(d) At the first election of the district after the county commissioners precincts are redrawn under Section 18, Article V, Texas Constitution, a new director is elected from each precinct. The directors shall draw lots to determine which two directors shall serve two-year terms and which two directors shall serve four-year terms. (Acts 77th Leg., R.S., Ch. 1474, Secs. 8(a), (b), (d), (e).)

Sec. 8828.053. ELECTION DATE. The district shall hold an election in the district to elect directors on the uniform election date in May of each even-numbered year. (Acts 77th Leg., R.S., Ch. 1474, Sec. 10(b).)

Sec. 8828.054. QUALIFICATIONS FOR OFFICE. (a) To be qualified to be a candidate for or to serve as director at large, a person must be a registered voter in the district.

(b) To be a candidate for or to serve as director from a county commissioners precinct, a person must be a registered voter of that precinct. (Acts 77th Leg., R.S., Ch. 1474, Sec. 8(c).)

Sec. 8828.055. BOARD VACANCY. (a) The board shall appoint a replacement to fill a vacancy in the office of any director.

(b) The appointed replacement serves until the next directors' election.

(c) If the position is not scheduled to be filled at the next election, the person elected to fill the position serves only for the remainder of the unexpired term. (Acts 77th Leg., R.S., Ch. 1474, Sec. 6(g).)

[Sections 8828.056-8828.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8828.101. GROUNDWATER CONSERVATION DISTRICT POWERS AND DUTIES. Except as provided by this chapter, the district has the rights, powers, privileges, functions, and duties provided by the general law of this state, including Chapter 36, Water Code, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1474, Sec. 5(a) (part).)

Sec. 8828.102. NO EMINENT DOMAIN POWER. The district does not have the power of eminent domain. (Acts 77th Leg., R.S., Ch. 1474, Sec. 5(b).)

[Sections 8828.103-8828.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8828.151. DISTRICT REVENUE. To pay the district's maintenance and operating costs, the district may:

(1) impose an ad valorem tax at a rate not to exceed five cents for each $100 of taxable value of property in the district;

(2) assess general production fees;

(3) solicit and accept grants from any public or private source; and

(4) assess a transfer fee on water exported from the district. (Acts 77th Leg., R.S., Ch. 1474, Sec. 11.) CHAPTER 8829. COASTAL BEND GROUNDWATER CONSERVATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8829.001. DEFINITIONS Sec. 8829.002. NATURE OF DISTRICT Sec. 8829.003. FINDINGS OF PUBLIC USE AND BENEFIT Sec. 8829.004. DISTRICT TERRITORY Sec. 8829.005. DISTRICT NAME CHANGE Sec. 8829.006. CONFLICTS OF LAW

[Sections 8829.007-8829.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8829.051. COMPOSITION OF BOARD; TERMS Sec. 8829.052. ELECTION OF DIRECTORS Sec. 8829.053. ELECTION DATE Sec. 8829.054. QUALIFICATIONS FOR OFFICE Sec. 8829.055. BOARD VACANCY Sec. 8829.056. COMPOSITION OF BOARD AND ELECTION OF

DIRECTORS FOLLOWING ANNEXATION Sec. 8829.057. REVISION OF VOTING DISTRICTS

[Sections 8829.058-8829.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8829.101. GROUNDWATER CONSERVATION DISTRICT

POWERS AND DUTIES Sec. 8829.102. REGIONAL COOPERATION

[Sections 8829.103-8829.150 reserved for expansion]

SUBCHAPTER D. FINANCIAL PROVISIONS Sec. 8829.151. DISTRICT REVENUE

CHAPTER 8829. COASTAL BEND GROUNDWATER CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8829.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Coastal Bend Groundwater Conservation District. (Acts 77th Leg., R.S., Ch. 1294, Sec. 2; New.)

Sec. 8829.002. NATURE OF DISTRICT. The district is a groundwater conservation district in Wharton County created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1294, Secs. 1(a) (part), (b).)

Sec. 8829.003. FINDINGS OF PUBLIC USE AND BENEFIT. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1294, Sec. 4.)

Sec. 8829.004. DISTRICT TERRITORY. The district's boundaries are coextensive with the boundaries of Wharton County, Texas, unless the district's territory has been modified under:

(1) Subchapter J, Chapter 36, Water Code; or

(2) other law. (Acts 77th Leg., R.S., Ch. 1294, Sec. 3; New.)

Sec. 8829.005. DISTRICT NAME CHANGE. The board may change the district's name when the district annexes territory. (Acts 77th Leg., R.S., Ch. 1294, Sec. 14.)

Sec. 8829.006. CONFLICTS OF LAW. (a) Except as otherwise provided by this chapter, if there is a conflict between this chapter and Chapter 36 or 49, Water Code, this chapter controls.

(b) If there is a conflict between Chapters 36 and 49, Water Code, Chapter 36 controls. (Acts 77th Leg., R.S., Ch. 1294, Sec. 13.)

[Sections 8829.007-8829.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8829.051. COMPOSITION OF BOARD; TERMS. (a) Except as provided by Section 8829.056(b), the district is governed by a board of five directors.

(b) Directors serve staggered four-year terms. (Acts 77th Leg., R.S., Ch. 1294, Secs. 7(a), (d).)

Sec. 8829.052. ELECTION OF DIRECTORS. (a) Except as provided by Section 8829.056, this section and Sections 8829.053 and 8829.054 govern the election and qualifications of directors.

(b) Directors are elected according to the commissioners precinct method as provided by this section.

(c) One director is elected by the voters of the entire district. One director is elected from each county commissioners precinct by the voters of that precinct.

(d) A person shall indicate on the application for a place on the ballot:

(1) the precinct that the person seeks to represent; or

(2) that the person seeks to represent the district at large.

(e) At the first election after the county commissioners precincts are redrawn under Section 18, Article V, Texas Constitution, a new director is elected from each precinct. The directors shall draw lots to determine which two directors shall serve two-year terms and which two directors shall serve four-year terms. (Acts 77th Leg., R.S., Ch. 1294, Secs. 9(a), (b), (d), (e), 9A(a) (part).)

Sec. 8829.053. ELECTION DATE. (a) The district shall hold an election in the district to elect directors on the first Tuesday after the first Monday in November of each even-numbered year.

(b) The district shall hold elections for the directors for:

(1) Precincts 1 and 3 every four years after 2004; and

(2) Precincts 2 and 4 and the district at large every four years after 2002. (Acts 77th Leg., R.S., Ch. 1294, Sec. 11.)

Sec. 8829.054. QUALIFICATIONS FOR OFFICE. (a) To be qualified to be a candidate for or to serve as director at large, a person must be a registered voter in the district.

(b) To be a candidate for or to serve as director from a county commissioners precinct, a person must be a registered voter of that precinct. (Acts 77th Leg., R.S., Ch. 1294, Sec. 9(c).)

Sec. 8829.055. BOARD VACANCY. (a) The board shall appoint a replacement to fill a vacancy in the office of any director.

(b) The appointed replacement serves until the next directors' election.

(c) If the position is not scheduled to be filled at the next election, the person elected to fill the position serves only for the remainder of the unexpired term. (Acts 77th Leg., R.S., Ch. 1294, Sec. 7(g).)

Sec. 8829.056. COMPOSITION OF BOARD AND ELECTION OF DIRECTORS FOLLOWING ANNEXATION. (a) If the district annexes territory, the board of directors of the district by resolution shall adopt an appropriate and equitable method for:

(1) electing directors for the district;

(2) drawing voting district boundaries if required by the method adopted; and

(3) maintaining staggered terms for the directors.

(b) If the district annexes territory, the board by resolution may add one or more directors as provided by Section 36.051, Water Code.

(c) If the board votes to add a director to represent annexed territory under Subsection (b), at an election to ratify annexation under Section 36.328, Water Code, the board may include on the ballot the names of candidates for director to represent the annexed territory on the board. A director elected under this subsection serves until an election is held under Subsection (d).

(d) A method of electing directors adopted under Subsection (a):

(1) supersedes the method of electing directors provided by Sections 8829.052-8829.054; and

(2) applies beginning with the election held on the first date provided by Section 8829.053 that:

(A) occurs after the date the annexation of the territory is final; and

(B) allows sufficient time to comply with any requirements of law.

(e) The method of electing directors provided by Sections 8829.052-8829.054 applies until an election is held under Subsection (d).

(f) To be eligible to be a candidate for or to serve as a director of the district under this section, a person must:

(1) be a registered voter of the district; and

(2) comply with each requirement stated in a resolution adopted under Subsection (a). (Acts 77th Leg., R.S., Ch. 1294, Secs. 7A, 9A(a) (part), (b), (c), (d), (e).)

Sec. 8829.057. REVISION OF VOTING DISTRICTS. (a) The board may revise voting districts as necessary or appropriate.

(b) If the board adopts a method for electing directors based on voting districts, the board shall revise each district after each federal decennial census to reflect population changes.

(c) When the boundaries of the voting districts are redrawn, a director serving on the effective date of the change, or elected or appointed before the effective date of the change to a term of office beginning on or after the effective date of the change, serves the term or the remainder of the term in the district to which elected or appointed even though the change in district boundaries places the person's residence outside the district for which the person was elected or appointed. (Acts 77th Leg., R.S., Ch. 1294, Sec. 9A(f).)

[Sections 8829.058-8829.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8829.101. GROUNDWATER CONSERVATION DISTRICT POWERS AND DUTIES. Except as provided by this chapter, the district has the rights, powers, duties, privileges, and functions provided by the general law of this state, including Chapter 36, Water Code, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1294, Sec. 5 (part).)

Sec. 8829.102. REGIONAL COOPERATION. (a) In recognition of the need for uniform regional monitoring and regulation of common, scientifically recognized groundwater sources, and within designated management areas, the district shall establish rules that:

(1) require the permitting of each water well that is:

(A) not exempt from permitting by Chapter 36, Water Code; and

(B) capable of producing more than 25,000 gallons each day;

(2) provide for the prevention of waste, as defined by Section 36.001, Water Code;

(3) provide for timely capping or plugging of abandoned wells; and

(4) require reports to be filed with the district on each new, nonexempt water well.

(b) A report required under Subsection (a)(4) must include:

(1) the driller's log;

(2) a description of the casing and pumping equipment installed;

(3) the capacity of the well; and

(4) the intended use of the water.

(c) To further regional continuity, the district shall:

(1) seek to participate in at least one coordination meeting annually with each adjacent district that shares an aquifer with the district;

(2) coordinate the collection of data with adjacent districts in a manner designed to achieve uniformity of data quality;

(3) coordinate efforts to monitor water quality with adjacent districts, local governments, and state agencies;

(4) investigate any groundwater pollution with the intention of locating its source and report its findings to adjacent districts and appropriate state agencies;

(5) provide to adjacent districts annually an inventory of new water wells in the district and an estimate of groundwater production within the district; and

(6) include adjacent districts on the mailing lists for district newsletters, seminars, public education events, news articles, and field days. (Acts 77th Leg., R.S., Ch. 1294, Sec. 6.)

[Sections 8829.103-8829.150 reserved for expansion]

SUBCHAPTER D. FINANCIAL PROVISIONS

Sec. 8829.151. DISTRICT REVENUE. To pay the district's maintenance and operating costs, the district may:

(1) impose an ad valorem tax at a rate not to exceed five cents for each $100 of taxable value of property in the district;

(2) assess general production fees;

(3) solicit and accept grants from any public or private source; and

(4) assess a transfer fee on water exported from the district. (Acts 77th Leg., R.S., Ch. 1294, Sec. 12.) CHAPTER 8831. COASTAL PLAINS GROUNDWATER CONSERVATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8831.001. DEFINITIONS Sec. 8831.002. NATURE OF DISTRICT Sec. 8831.003. FINDINGS OF PUBLIC USE AND BENEFIT Sec. 8831.004. DISTRICT TERRITORY

[Sections 8831.005-8831.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8831.051. COMPOSITION OF BOARD; TERMS Sec. 8831.052. ELECTION OF DIRECTORS Sec. 8831.053. ELECTION DATE Sec. 8831.054. ELIGIBILITY Sec. 8831.055. BOARD VACANCY

[Sections 8831.056-8831.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8831.101. GROUNDWATER CONSERVATION DISTRICT

POWERS AND DUTIES Sec. 8831.102. REGIONAL COOPERATION

[Sections 8831.103-8831.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8831.151. DISTRICT REVENUE

CHAPTER 8831. COASTAL PLAINS GROUNDWATER

CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8831.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Coastal Plains Groundwater Conservation District. (Acts 77th Leg., R.S., Ch. 1358, Sec. 2; New.)

Sec. 8831.002. NATURE OF DISTRICT. The district is a groundwater conservation district in Matagorda County created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1358, Secs. 1(a) (part), (b).)

Sec. 8831.003. FINDINGS OF PUBLIC USE AND BENEFIT. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1358, Sec. 4.)

Sec. 8831.004. DISTRICT TERRITORY. The district's boundaries are coextensive with the boundaries of Matagorda County, Texas, unless the district's territory has been modified under:

(1) Subchapter J, Chapter 36, Water Code; or

(2) other law. (Acts 77th Leg., R.S., Ch. 1358, Sec. 3; New.)

[Sections 8831.005-8831.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8831.051. COMPOSITION OF BOARD; TERMS. (a) The district is governed by a board of seven directors.

(b) Directors serve staggered four-year terms. (Acts 77th Leg., R.S., Ch. 1358, Secs. 7(a), (d).)

Sec. 8831.052. ELECTION OF DIRECTORS. (a) Three directors are elected by the voters of the entire district. One director is elected from each county commissioners precinct by the voters of that precinct. The directors elected from precincts 1-4 occupy positions 1-4, respectively, on the board. The at-large directors occupy positions 5-7, respectively, on the board.

(b) A person shall indicate on the application for a place on the ballot the position on the board for which the person is a candidate.

(c) At the first election after the county commissioners precincts are redrawn under Section 18, Article V, Texas Constitution, each director in office on the effective date of the change, or elected to a term of office beginning on or after the effective date of the change, shall serve, unless otherwise removed as provided by law, in the position to which each was elected for the entire term to which elected, even though the change in boundaries places the director's residence outside the precinct from which the director was elected. (Acts 77th Leg., R.S., Ch. 1358, Secs. 9(a), (c), (d).)

Sec. 8831.053. ELECTION DATE. Each even-numbered year, the board shall hold an election in the district on a uniform election date provided by Section 41.001(a), Election Code, to elect the appropriate number of directors. If the board changes the election date, the district shall adjust the terms of office to conform to the new election date. (Acts 77th Leg., R.S., Ch. 1358, Sec. 11.)

Sec. 8831.054. ELIGIBILITY. (a) To be eligible to be a candidate for or to serve as a director at large, a person must be a registered voter of the district.

(b) To be eligible to be a candidate for or to serve as a director from a county commissioners precinct, a person must be a registered voter of that precinct, except as provided by Section 8831.052(c). (Acts 77th Leg., R.S., Ch. 1358, Sec. 9(b).)

Sec. 8831.055. BOARD VACANCY. (a) The board shall appoint a replacement to fill a vacancy in the office of director.

(b) The appointed replacement serves until the next directors' election.

(c) At that election, a person is elected to fill the position. If the position is not scheduled to be filled at the election, the person elected to fill the position serves only for the remainder of the unexpired term. (Acts 77th Leg., R.S., Ch. 1358, Sec. 7(g).)

[Sections 8831.056-8831.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8831.101. GROUNDWATER CONSERVATION DISTRICT POWERS AND DUTIES. Except as provided by this chapter, the district has the rights, powers, privileges, functions, and duties provided by the general law of this state, including Chapter 36, Water Code, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1358, Sec. 5(a) (part).)

Sec. 8831.102. REGIONAL COOPERATION. To provide for uniformity across districts in addressing the need to achieve a common approach to managing the underlying aquifer and to ensure that administration of the district will be cost-effective, the district shall:

(1) attempt to coordinate meetings with adjacent districts;

(2) encourage sharing of personnel and resources to achieve administrative cost savings;

(3) study a common approach for collecting and sharing appropriate data to be used in managing the aquifer;

(4) support cooperation in the investigation of aquifer contamination; and

(5) include adjacent districts on mailing lists for district meeting announcements, newsletters, public meetings, and other scheduled events. (Acts 77th Leg., R.S., Ch. 1358, Sec. 6.)

[Sections 8831.103-8831.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8831.151. DISTRICT REVENUE. To pay the district's maintenance and operating costs and to pay any bonds issued by the district, the district may:

(1) impose an ad valorem tax at a rate not to exceed 2.5 cents for each $100 of taxable value of property in the district, subject to voter approval;

(2) assess fees for services or for water withdrawn from wells; or

(3) solicit and accept grants from any public or private source. (Acts 77th Leg., R.S., Ch. 1358, Sec. 12.) CHAPTER 8832. MESQUITE GROUNDWATER CONSERVATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8832.001. DEFINITIONS Sec. 8832.002. NATURE OF DISTRICT Sec. 8832.003. DISTRICT TERRITORY Sec. 8832.004. DISTRICT NAME CHANGE

[Sections 8832.005-8832.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8832.051. COMPOSITION OF BOARD; TERMS Sec. 8832.052. ELECTION OF DIRECTORS Sec. 8832.053. ELECTION DATE Sec. 8832.054. QUALIFICATIONS FOR ELECTION;

ELIGIBILITY TO SERVE Sec. 8832.055. COMPOSITION OF BOARD AND ELECTION OF

DIRECTORS FOLLOWING ANNEXATION

[Sections 8832.056-8832.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8832.101. GENERAL POWERS AND DUTIES Sec. 8832.102. ADMINISTRATIVE PROCEDURES Sec. 8832.103. WELL PERMITS Sec. 8832.104. WELL SPACING AND PRODUCTION Sec. 8832.105. LOGS Sec. 8832.106. SURVEYS Sec. 8832.107. RESEARCH AND DETERMINATIONS REGARDING

GROUNDWATER WITHDRAWAL Sec. 8832.108. COLLECTION AND PRESERVATION OF

INFORMATION Sec. 8832.109. CONTRACT FOR SALE AND DISTRIBUTION OF

WATER

[Sections 8832.110-8832.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8832.151. FINANCIAL RECORDS

CHAPTER 8832. MESQUITE GROUNDWATER CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8832.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Mequite Groundwater Conservation District. (Acts 69th Leg., R.S., Ch. 376, Sec. 2; New.)

Sec. 8832.002. NATURE OF DISTRICT. The district is created under Section 59, Article XVI, Texas Constitution, to provide for the conservation, preservation, protection, recharge, and prevention of waste of the groundwater reservoirs located under district land, consistent with the objectives of Section 59, Article XVI, Texas Constitution, and Chapter 36, Water Code. (Acts 69th Leg., R.S., Ch. 376, Secs. 1 (part), 4.)

Sec. 8832.003. DISTRICT TERRITORY. The district includes the territory in Collingsworth County and any territory annexed by the district under Section 8832.055 or other law. (Acts 69th Leg., R.S., Ch. 376, Sec. 3; New.)

Sec. 8832.004. DISTRICT NAME CHANGE. The board by resolution may change the district's name. (Acts 69th Leg., R.S., Ch. 376, Sec. 4A.)

[Sections 8832.005-8832.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8832.051. COMPOSITION OF BOARD; TERMS. (a) Except as provided by Section 8832.055, the district is governed by a board of five directors.

(b) Directors serve staggered four-year terms. (Acts 69th Leg., R.S., Ch. 376, Secs. 13(a), (d); New.)

Sec. 8832.052. ELECTION OF DIRECTORS. (a) The district is divided into five numbered single-member districts for electing directors.

(b) The board may revise the single-member districts as necessary or appropriate.

(c) One director is elected from each single-member district. A director elected from a single-member district represents the residents and property owners of that single-member district.

(d) Board elections are conducted according to Sections 36.017(b)-(h), Water Code, and the Election Code. (Acts 69th Leg., R.S., Ch. 376, Secs. 13(c) (part), (e) (part); Acts 77th Leg., R.S., Ch. 1364, Sec. 5(d) (part).)

Sec. 8832.053. ELECTION DATE. A board election shall be held on a uniform election date in each even-numbered year. (Acts 69th Leg., R.S., Ch. 376, Sec. 13(e) (part).)

Sec. 8832.054. QUALIFICATIONS FOR ELECTION; ELIGIBILITY TO SERVE. (a) To be qualified for election as a director, a person must be:

(1) a resident of the district; and

(2) at least 18 years of age.

(b) To represent a single-member district, a director must own property in that single-member district. (Acts 69th Leg., R.S., Ch. 376, Secs. 13(b), (c) (part).)

Sec. 8832.055. COMPOSITION OF BOARD AND ELECTION OF DIRECTORS FOLLOWING ANNEXATION. (a) Territory may be added to the district as provided by Chapter 36, Water Code.

(b) If the district annexes territory, the board may:

(1) add the annexed territory to one or more existing single-member districts for purposes of electing directors;

(2) redraw the five single-member districts to include the annexed territory; or

(3) add additional single-member districts for the election of additional directors.

(c) The district may not contain more than 11 single-member districts. (Acts 69th Leg., R.S., Ch. 376, Sec. 12.)

[Sections 8832.056-8832.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8832.101. GENERAL POWERS AND DUTIES. The district may exercise:

(1) the powers essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution; and

(2) the rights, powers, duties, privileges, and functions provided by this chapter, Chapter 36, Water Code, and other laws of this state relating to groundwater conservation districts. (Acts 69th Leg., R.S., Ch. 376, Secs. 1 (part), 5 (part).)

Sec. 8832.102. ADMINISTRATIVE PROCEDURES. Except as provided by this chapter, the administrative and procedural provisions of Chapter 36, Water Code, apply to the district. (Acts 69th Leg., R.S., Ch. 376, Sec. 6.)

Sec. 8832.103. WELL PERMITS. (a) As permitted by Chapter 36, Water Code, the district may:

(1) require a permit for drilling, equipping, or completing a well in a groundwater reservoir in the district; and

(2) issue a permit that includes terms relating to drilling, equipping, or completing a well that are necessary to prevent waste or conserve, preserve, and protect groundwater.

(b) The district may not deny an owner of land, or the owner's heirs, assigns, and lessees, a permit to drill a well on that land or the right to produce groundwater from that well subject to rules adopted under this chapter. (Acts 69th Leg., R.S., Ch. 376, Sec. 5 (part).)

Sec. 8832.104. WELL SPACING AND PRODUCTION. To minimize as far as practicable the drawdown of the water table or the reduction of the artesian pressure, the district as permitted by Chapter 36, Water Code, may provide for the spacing of wells producing from the groundwater reservoirs in the district and regulate the production from those wells. (Acts 69th Leg., R.S., Ch. 376, Sec. 5 (part).)

Sec. 8832.105. LOGS. As permitted by Chapter 36, Water Code, the district may require that:

(1) accurate driller's logs be kept of the drilling, equipping, and completion of a well into a groundwater reservoir in the district; and

(2) a copy of a driller's log and of any electric log that may be made of the well be filed with the district. (Acts 69th Leg., R.S., Ch. 376, Sec. 5 (part).)

Sec. 8832.106. SURVEYS. As permitted by Chapter 36, Water Code, the district may have a licensed engineer survey the groundwater of a groundwater reservoir in the district and the facilities for the development, production, and use of that groundwater and determine the quantity of the groundwater available for production and use and the improvements, developments, and recharges needed for the groundwater reservoir. (Acts 69th Leg., R.S., Ch. 376, Sec. 5 (part).)

Sec. 8832.107. RESEARCH AND DETERMINATIONS REGARDING GROUNDWATER WITHDRAWAL. As permitted by Chapter 36, Water Code, the district may carry out research projects, develop information, and determine limitations, if any, that should be made on the withdrawal of groundwater from a groundwater reservoir in the district. (Acts 69th Leg., R.S., Ch. 376, Sec. 5 (part).)

Sec. 8832.108. COLLECTION AND PRESERVATION OF INFORMATION. As permitted by Chapter 36, Water Code, the district may collect and preserve information regarding the use of groundwater and the practicability of recharge of a groundwater reservoir in the district. (Acts 69th Leg., R.S., Ch. 376, Sec. 5 (part).)

Sec. 8832.109. CONTRACT FOR SALE AND DISTRIBUTION OF WATER. As permitted by Chapter 36, Water Code, the district may contract for, sell, and distribute water from a water import authority or other agency. (Acts 69th Leg., R.S., Ch. 376, Sec. 5 (part).)

[Sections 8832.110-8832.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8832.151. FINANCIAL RECORDS. (a) The district shall file with the county treasurer of each county in which the district is located a copy of each audit, board order, or other document relating to district finances. The copy shall be filed not later than the 60th day after the date the audit is completed, the order is adopted, or the other document is finalized.

(b) The county treasurer shall maintain a copy of each audit, order, or other document at the county treasurer's main office and shall make the copies available for public inspection during regular office hours. (Acts 69th Leg., R.S., Ch. 376, Sec. 7.) CHAPTER 8834. FORT BEND SUBSIDENCE DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8834.001. DEFINITIONS Sec. 8834.002. NATURE OF DISTRICT Sec. 8834.003. PURPOSE; LEGISLATIVE INTENT Sec. 8834.004. FINDINGS OF PUBLIC USE AND BENEFIT Sec. 8834.005. DISTRICT TERRITORY Sec. 8834.006. CERTAIN OTHER STATUTES INAPPLICABLE

[Sections 8834.007-8834.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION Sec. 8834.051. DIRECTORS Sec. 8834.052. BOARD POWERS AND DUTIES Sec. 8834.053. OFFICIAL BOARD ACTIONS Sec. 8834.054. DIRECTOR'S BOND Sec. 8834.055. OFFICERS Sec. 8834.056. MEETINGS Sec. 8834.057. APPLICABILITY OF OPEN MEETINGS LAW Sec. 8834.058. COMPENSATION AND REIMBURSEMENT OF

DIRECTORS Sec. 8834.059. VACANCIES Sec. 8834.060. DISTRICT POLICIES Sec. 8834.061. GENERAL MANAGER Sec. 8834.062. PERSONNEL Sec. 8834.063. BENEFITS Sec. 8834.064. BOND FOR EMPLOYEE RESPONSIBLE FOR MONEY Sec. 8834.065. DISTRICT OFFICE Sec. 8834.066. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION Sec. 8834.067. SEAL

[Sections 8834.068-8834.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8834.101. DISTRICT PLAN Sec. 8834.102. ADOPTION OF DISTRICT PLAN Sec. 8834.103. WATER CONSERVATION MEASURES Sec. 8834.104. ANNUAL GROUNDWATER WITHDRAWAL

DETERMINATION Sec. 8834.105. MONITORING AND SUPERVISION BY DISTRICT Sec. 8834.106. DISTRICT RESEARCH Sec. 8834.107. STUDIES BY BOARD STAFF Sec. 8834.108. SALE OR DISTRIBUTION OF WATER

PROHIBITED Sec. 8834.109. ACCESS TO PROPERTY Sec. 8834.110. GENERAL POWERS RELATED TO PROPERTY AND

CONTRACTS Sec. 8834.111. COOPERATION WITH GOVERNMENTAL ENTITIES Sec. 8834.112. RULES Sec. 8834.113. CONSIDERATIONS FOR RULES AND ORDERS Sec. 8834.114. HEARINGS Sec. 8834.115. NOTICE OF HEARINGS Sec. 8834.116. BOARD BYLAWS AND POLICIES Sec. 8834.117. AUTHORITY TO ISSUE SUBPOENAS AND

ADMINISTER OATHS Sec. 8834.118. SUITS

[Sections 8834.119-8834.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8834.151. DISBURSEMENT OF MONEY Sec. 8834.152. DISTRICT ACCOUNTS Sec. 8834.153. FISCAL YEAR Sec. 8834.154. BUDGET Sec. 8834.155. AUDIT Sec. 8834.156. COPY OF AUDIT Sec. 8834.157. DEPOSITORY AND INVESTMENTS

[Sections 8834.158-8834.200 reserved for expansion]

SUBCHAPTER E. REGULATORY PROVISIONS Sec. 8834.201. GROUNDWATER WITHDRAWALS SUBJECT TO

BOARD RULE Sec. 8834.202. CERTAIN WELLS EXEMPT Sec. 8834.203. REGULATION OF SPACING AND GROUNDWATER

WITHDRAWAL Sec. 8834.204. WATER-METERING DEVICES Sec. 8834.205. WELL REGISTRATION Sec. 8834.206. PERMIT REQUIRED Sec. 8834.207. APPLICATION FOR PERMIT Sec. 8834.208. NOTICE AND HEARING ON PERMIT

APPLICATION Sec. 8834.209. ISSUANCE OF PERMIT Sec. 8834.210. TERM OF PERMIT Sec. 8834.211. RENEWAL OF PERMIT Sec. 8834.212. PERMIT FEES Sec. 8834.213. TRANSFERRING PERMIT Sec. 8834.214. ANNUAL REPORT Sec. 8834.215. REDUCTION OF GROUNDWATER USE Sec. 8834.216. OPEN OR UNCOVERED WELLS

[Sections 8834.217-8834.250 reserved for expansion]

SUBCHAPTER F. APPEAL AND ENFORCEMENT PROVISIONS Sec. 8834.251. APPEAL OF DISTRICT ACTIONS Sec. 8834.252. INJUNCTIVE RELIEF; CIVIL PENALTY

CHAPTER 8834. FORT BEND SUBSIDENCE DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8834.001. DEFINITIONS. In this chapter:

(1) "Beneficial use" means any use that is useful or beneficial to the user, including:

(A) an agricultural, gardening, domestic, stock raising, municipal, mining, manufacturing, industrial, commercial, or recreational use, or a use for pleasure purposes; or

(B) exploring for, producing, handling, or treating oil, gas, sulfur, or other minerals.

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

(3) "Commission" means the Texas Commission on Environmental Quality.

(4) "District" means the Fort Bend Subsidence District.

(5) "Groundwater" means water existing below the earth's surface in the district. The term does not include water produced with oil in the production of oil and gas.

(6) "Subsidence" means the lowering in elevation of the surface of land by groundwater withdrawal.

(7) "Waste" means:

(A) groundwater withdrawal from a groundwater reservoir at a rate and in an amount that causes or threatens to cause intrusion into the reservoir of water unsuitable for agricultural, gardening, domestic, or stock raising purposes;

(B) groundwater withdrawal from a groundwater reservoir through a well if the water withdrawn is not used for a beneficial use or if the amount used is more than is reasonably required for a beneficial use;

(C) escape of groundwater from a groundwater reservoir to any other reservoir or geologic strata that does not contain groundwater;

(D) pollution or harmful alteration of groundwater in a groundwater reservoir by saltwater or other harmful matter admitted from another stratum or from the surface of the ground;

(E) unless the discharge is authorized by a permit, rule, or order issued by the commission under Chapter 26, Water Code, wilfully or negligently causing, suffering, or allowing groundwater to escape or flow:

(i) into a river, creek, natural watercourse, depression, lake, reservoir, drain, sewer, street, highway, road, or road ditch; or

(ii) onto land that does not belong to the owner of the well;

(F) unless the occupant of the land receiving the discharge granted permission for the discharge, the escape of groundwater pumped for irrigation as irrigation tailwater onto land that does not belong to the owner of the well; or

(G) wilfully causing or knowingly permitting the water withdrawn from an artesian well to run off the owner's land or to percolate through the stratum above which the water is found, as prescribed by Section 11.205, Water Code.

(8) "Well" means a facility, device, or method used to withdraw groundwater.

(9) "Withdrawal" means the act of extracting by pumping or another method. (Acts 71st Leg., R.S., Ch. 1045, Secs. 2(2), (3), (4), (5), (6), (8), (9), (11), (15).)

Sec. 8834.002. NATURE OF DISTRICT. The district is:

(1) a conservation and reclamation district created under Section 59, Article XVI, Texas Constitution; and

(2) a political subdivision of the state. (Acts 71st Leg., R.S., Ch. 1045, Sec. 3(a) (part).)

Sec. 8834.003. PURPOSE; LEGISLATIVE INTENT. (a) The purpose of this chapter is to provide for the regulation of groundwater withdrawal in the district to prevent subsidence, which contributes to or precipitates flooding or overflow in the district, including rising water resulting from a storm or hurricane.

(b) The legislature intends that the district administer and enforce this chapter and exercise the district's rights, powers, and duties in a manner that will effectively and expeditiously accomplish the purposes of this chapter. (Acts 71st Leg., R.S., Ch. 1045, Sec. 1.)

Sec. 8834.004. FINDINGS OF PUBLIC USE AND BENEFIT. The district is created to serve a public use and benefit. (Acts 71st Leg., R.S., Ch. 1045, Sec. 3(b).)

Sec. 8834.005. DISTRICT TERRITORY. The district includes the territory in Fort Bend County unless the district's territory has been modified under other law. (Acts 71st Leg., R.S., Ch. 1045, Sec. 4; New.)

Sec. 8834.006. CERTAIN OTHER STATUTES INAPPLICABLE. Other laws governing the administration or operation of a conservation and reclamation district created under Section 52, Article III, or Section 59, Article XVI, Texas Constitution, including Chapters 36 and 49, Water Code, do not apply to the district. (Acts 71st Leg., R.S., Ch. 1045, Sec. 4A(a).)

[Sections 8834.007-8834.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 8834.051. DIRECTORS. (a) The district is governed by a board of 13 directors appointed as provided by this section.

(b) Directors serve two-year terms.

(c) A director must be a qualified voter of the district.

(d) The persons designated by Subsections (e), (f), and (g) shall appoint directors in January to fill vacancies caused by the expiration of directors' terms. The district shall mail notice regarding the necessity of an appointment to the persons designated by Subsections (e), (f), and (g) not later than the 20th day before the date of the board's January meeting.

(e) The mayor of each of the following municipalities shall appoint a director from the mayor's respective municipality:

(1) Houston;

(2) Missouri City;

(3) Stafford;

(4) Sugar Land;

(5) Rosenberg; and

(6) Richmond.

(f) The Commissioners Court of Fort Bend County shall appoint:

(1) two directors who represent agricultural interests and live in an unincorporated area;

(2) two directors who represent industrial interests; and

(3) two directors who represent business interests.

(g) The mayors of Fort Bend County municipalities other than those listed in Subsection (e) shall appoint one director jointly. (Acts 71st Leg., R.S., Ch. 1045, Secs. 5(a), (b), (c), (d), (f), (h) (part), (j) (part).)

Sec. 8834.052. BOARD POWERS AND DUTIES. (a) The board has all powers necessary or convenient to carry out its responsibilities and accomplish the purpose of this chapter, whether the powers are specifically authorized by this chapter or are implied by this chapter or other law.

(b) The board shall administer this chapter as provided by Section 8834.003. (Acts 71st Leg., R.S., Ch. 1045, Secs. 6(a), (d).)

Sec. 8834.053. OFFICIAL BOARD ACTIONS. The affirmative vote of a majority of the directors is required for any official board action. (Acts 71st Leg., R.S., Ch. 1045, Sec. 5(q) (part).)

Sec. 8834.054. DIRECTOR'S BOND. (a) A director shall execute a bond that is:

(1) for $5,000;

(2) payable to the district; and

(3) conditioned on the faithful performance of the director's duties.

(b) The district shall pay for the bond. (Acts 71st Leg., R.S., Ch. 1045, Sec. 5(p) (part).)

Sec. 8834.055. OFFICERS. (a) Each year, at the first meeting after the new directors take office, the directors shall select a president, a vice president, and a secretary.

(b) An officer selected under Subsection (a) serves at the will of the board and may be removed and replaced by a majority of the board at any time.

(c) The president shall preside over meetings of the board. If the president is not present, the vice president shall preside. (Acts 71st Leg., R.S., Ch. 1045, Secs. 5(l), (m).)

Sec. 8834.056. MEETINGS. (a) The board shall hold one regular meeting each month at a time set by the board.

(b) The board may hold a special meeting at the call of the president or on the written request of at least three directors. (Acts 71st Leg., R.S., Ch. 1045, Sec. 5(r) (part).)

Sec. 8834.057. APPLICABILITY OF OPEN MEETINGS LAW. (a) The board shall give notice of board meetings as provided by Chapter 551, Government Code. Failure to provide notice of a regular meeting or an insubstantial defect in notice of any meeting does not affect the validity of any action taken at the meeting.

(b) A meeting of a committee of the board is not subject to Chapter 551, Government Code, if less than a quorum is present at the meeting. (Acts 71st Leg., R.S., Ch. 1045, Sec. 5(r) (part).)

Sec. 8834.058. COMPENSATION AND REIMBURSEMENT OF DIRECTORS. (a) A director is entitled to receive fees of office of not more than $150 a day for each day the director is engaged in the exercise of the director's duties. The fees of office may not exceed $9,000 a year.

(b) A director is entitled to receive reimbursement for actual expenses reasonably and necessarily incurred in the exercise of the director's duties under this chapter.

(c) To receive fees of office and reimbursement for expenses, a director must file with the district a verified statement that:

(1) shows the number of days spent in the service of the district; and

(2) provides a general description of the duties performed for each day of service. (Acts 71st Leg., R.S., Ch. 1045, Sec. 5(n).)

Sec. 8834.059. VACANCIES. If a vacancy occurs on the board, the person or persons designated by Section 8834.051 to appoint a director for the position that is vacated shall appoint a director to serve the unexpired term. (Acts 71st Leg., R.S., Ch. 1045, Sec. 5(o).)

Sec. 8834.060. DISTRICT POLICIES. The board shall adopt the following written policies:

(1) a code of ethics for district directors, officers, and employees and for persons engaged in handling investments for the district;

(2) a policy relating to travel expenditures;

(3) a policy relating to district investments;

(4) policies and procedures for the selection, monitoring, or review and evaluation of professional services; and

(5) policies that ensure a better use of management information, including the use of:

(A) budgets to plan and control cost; and

(B) uniform reporting requirements based on "Audits of State and Local Governmental Units," published by the American Institute of Certified Public Accountants, and "Governmental Accounting and Financial Reporting Standards," published by the Governmental Accounting Standards Board. (Acts 71st Leg., R.S., Ch. 1045, Sec. 6(g).)

Sec. 8834.061. GENERAL MANAGER. (a) The board may employ a general manager to serve as the chief administrative officer of the district. The district may contract with any person to perform the general manager's duties.

(b) The board may delegate to the general manager the authority to manage and operate the affairs of the district subject only to orders of the board.

(c) The duties of the general manager include:

(1) administering board orders;

(2) coordinating with state, federal, and local agencies;

(3) supervising development of district plans and programs;

(4) preparing and submitting the annual budget to the board; and

(5) performing other duties assigned by the board.

(d) The general manager shall execute a bond that is:

(1) in an amount set by the board;

(2) payable to the district; and

(3) conditioned on the general manager's faithful performance of the general manager's duties.

(e) The district shall pay for the bond described under Subsection (d).

(f) The board shall determine the compensation and terms of office and employment for the general manager.

(g) The board by a vote of a majority of board members may discharge the general manager. (Acts 71st Leg., R.S., Ch. 1045, Sec. 7.)

Sec. 8834.062. PERSONNEL. (a) The general manager shall employ personnel necessary to properly handle district business and operation. The general manager may employ attorneys, bookkeepers, engineers, and other expert and specialized personnel considered necessary.

(b) The general manager shall determine the compensation paid to district employees.

(c) The general manager may discharge a district employee. (Acts 71st Leg., R.S., Ch. 1045, Secs. 8(a), (b).)

Sec. 8834.063. BENEFITS. (a) The board may provide for and administer retirement, disability, and death compensation funds for the employees of the district.

(b) The board may:

(1) establish a public retirement system as provided by Chapter 810, Government Code; or

(2) provide for a deferred compensation plan as described by Section 457, Internal Revenue Code of 1986.

(c) The board may:

(1) include hospitalization and medical benefits for district employees as part of the compensation paid to the employees; and

(2) adopt or amend a plan or rule as necessary to provide the benefits described by Subdivision (1).

(d) The board may establish a sick leave pool for district employees in the manner provided for state employees by Subchapter A, Chapter 661, Government Code. (Acts 71st Leg., R.S., Ch. 1045, Secs. 8(d), (e), (f), (g).)

Sec. 8834.064. BOND FOR EMPLOYEE RESPONSIBLE FOR MONEY. (a) The board shall require an employee who collects, pays, or handles district money to provide a good and sufficient bond that is:

(1) in an amount sufficient to safeguard the district;

(2) payable to the district; and

(3) conditioned on:

(A) the faithful performance of the employee's duties; and

(B) accounting for all district money and property under the employee's control.

(b) The district shall pay for the bond. (Acts 71st Leg., R.S., Ch. 1045, Sec. 8(c).)

Sec. 8834.065. DISTRICT OFFICE. The board shall maintain its principal office in the district for conducting district business. The office must be in the district. (Acts 71st Leg., R.S., Ch. 1045, Sec. 9.)

Sec. 8834.066. MAINTENANCE OF RECORDS; PUBLIC INSPECTION. (a) The district shall:

(1) keep a complete account of board meetings and proceedings; and

(2) maintain in a safe place the board's minutes, contracts, records, notices, accounts, and receipts.

(b) The board's minutes, contracts, records, notices, accounts, and receipts are:

(1) the property of the district; and

(2) subject to public inspection. (Acts 71st Leg., R.S., Ch. 1045, Sec. 10.)

Sec. 8834.067. SEAL. The board shall adopt a seal. (Acts 71st Leg., R.S., Ch. 1045, Sec. 12.)

[Sections 8834.068-8834.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8834.101. DISTRICT PLAN. (a) The board shall formulate a plan to control and mitigate subsidence in the district.

(b) The plan must:

(1) regulate groundwater withdrawals to maintain sufficient artesian pressure to control and mitigate subsidence; and

(2) specify in as much detail as practicable the acts, procedures, performance, and avoidance that are necessary to carry out the purpose of this chapter.

(c) When formulating the plan, the board shall compile and consider:

(1) a list of wells in the district subject to regulation under this chapter;

(2) a list of all available sources of water, other than groundwater, in the district;

(3) the purpose for which the water is used and for which it is proposed to be used;

(4) accurate estimates of:

(A) groundwater withdrawal from all wells or proposed wells in the district;

(B) the amount of groundwater that may be withdrawn from each area in the district without causing:

(i) long-term static water level decline; and

(ii) reduction of artesian pressure that will lead to subsidence in the district; and

(C) current and future water needs in the district;

(5) information relating to formulating a permit system; and

(6) other information necessary to manage groundwater in the district and to effectively and expeditiously carry out the purpose of this chapter. (Acts 71st Leg., R.S., Ch. 1045, Secs. 16(a), (b), (c).)

Sec. 8834.102. ADOPTION OF DISTRICT PLAN. (a) The board shall hold a hearing to consider a plan formulated under Section 8834.101.

(b) After the hearing, the board shall:

(1) make any changes it considers necessary according to evidence and material presented at the hearing; and

(2) adopt the plan.

(c) The board may amend or repeal a plan adopted under this section and may adopt a new plan as provided by this section for the adoption of the original plan.

(d) An adopted plan remains in effect until a new plan is adopted. (Acts 71st Leg., R.S., Ch. 1045, Secs. 16(f), (g), (h).)

Sec. 8834.103. WATER CONSERVATION MEASURES. (a) The board may adopt rules requiring the use of water conservation measures to reduce groundwater withdrawals.

(b) The district may cooperate with the commission and a local government to establish water conservation goals, guidelines, and plans to be used in the district.

(c) The district may contract with a local government in the district to provide services needed to meet water conservation requirements that the commission establishes. (Acts 71st Leg., R.S., Ch. 1045, Sec. 36.)

Sec. 8834.104. ANNUAL GROUNDWATER WITHDRAWAL DETERMINATION. (a) Before March 31 of each year, the board shall hold a hearing to determine the effects during the preceding calendar year of groundwater withdrawal on subsidence in the district.

(b) At the hearing, the board shall consider information provided under Sections 8834.107 and 8834.214 and information presented by persons appearing before the board.

(c) After the hearing, the board shall:

(1) consider all information presented to it;

(2) determine groundwater withdrawal in the district during the preceding calendar year; and

(3) make findings on the effects during the preceding calendar year of groundwater withdrawal on subsidence in the district.

(d) The board's findings and determinations under Subsection (c) shall be included in a report adopted by the board. The report shall be made available for examination by any interested person.

(e) The board shall submit the report adopted under Subsection (d) and a copy of the most recent district plan adopted under Section 8834.101 to the appropriate regional water planning group. (Acts 71st Leg., R.S., Ch. 1045, Sec. 24.)

Sec. 8834.105. MONITORING AND SUPERVISION BY DISTRICT. (a) The district may use subsidence compaction monitors, water-level observation wells, and other materials and equipment to determine the amount of groundwater that may be withdrawn while allowing groundwater to rebound and stabilize to a level that will halt subsidence.

(b) The district may use global positioning systems and other geodetic survey methods to monitor land surface elevations and measure subsidence.

(c) The district may coordinate monitoring and data collection activities with other entities, including private entities and federal, state, or local governmental entities. (Acts 71st Leg., R.S., Ch. 1045, Sec. 28.)

Sec. 8834.106. DISTRICT RESEARCH. (a) The board may conduct studies and research that the board considers necessary to implement this chapter.

(b) The district may collect any information that the board determines is necessary to implement this chapter, including information regarding the use of groundwater, water conservation, and the practicability of recharging a groundwater reservoir.

(c) The board may use the services of geologists, hydrologists, licensed engineers, licensed geoscientists, or other expert personnel to accomplish the purposes of this section. (Acts 71st Leg., R.S., Ch. 1045, Sec. 29.)

Sec. 8834.107. STUDIES BY BOARD STAFF. At least once each year and at any other time the board considers necessary, the board may have its staff make a complete study of the groundwater in the district and determine:

(1) the water level;

(2) the rates and amounts of groundwater withdrawal; and

(3) other information relating to groundwater withdrawal that may affect subsidence in the district. (Acts 71st Leg., R.S., Ch. 1045, Sec. 23.)

Sec. 8834.108. SALE OR DISTRIBUTION OF WATER PROHIBITED. The district may not sell or distribute surface water or groundwater. (Acts 71st Leg., R.S., Ch. 1045, Sec. 38.)

Sec. 8834.109. ACCESS TO PROPERTY. (a) To carry out technical and other investigations necessary to implement this chapter, the board and its agents and employees are entitled to access to all property in the district.

(b) Before entering property for the purposes of this section, the person seeking access shall:

(1) give notice to the owner of the property as provided by district rules; and

(2) present proper credentials.

(c) The board and its agents and employees who enter private property shall observe the establishment's rules concerning safety, internal security, and fire protection. (Acts 71st Leg., R.S., Ch. 1045, Sec. 27.)

Sec. 8834.110. GENERAL POWERS RELATED TO PROPERTY AND CONTRACTS. (a) The board may:

(1) purchase, lease, own, convey, and dispose of property both inside and outside district territory necessary or convenient to exercise the board's powers, duties, and functions under this chapter;

(2) construct, purchase, lease, or acquire in some other manner any material or property, including supplies, equipment, vehicles, or machinery, necessary to carry out this chapter;

(3) accept a grant, gift, or devise of property; or

(4) accept a grant, gift, loan, or other distribution of money.

(b) The district may make or accept a grant, gratuity, advance, or loan in any form to or from any public source approved by the board, including a governmental entity.

(c) The district may enter into a contract, covenant, or agreement the board considers appropriate related to a grant, gratuity, advance, or loan.

(d) The board may enter into a contract with any person to carry out this chapter.

(e) The district may enter into contracts only in the district's name. (Acts 71st Leg., R.S., Ch. 1045, Secs. 6(f), 31, 35.)

Sec. 8834.111. COOPERATION WITH GOVERNMENTAL ENTITIES. In implementing this chapter, the board may request the assistance of and cooperate with a local government or an agency of this state or of the United States, including the Texas Water Development Board, the commission, and the United States Geological Survey. (Acts 71st Leg., R.S., Ch. 1045, Sec. 30.)

Sec. 8834.112. RULES. (a) After notice and hearing, the board shall adopt rules designed to expeditiously and effectively implement this chapter and accomplish its purpose, including rules governing procedures before the board. The board shall enforce the rules.

(b) The board may adopt rules to prevent the waste of water or the degradation of water quality.

(c) The board shall compile its rules in a book and make the book available for use and inspection at the district's principal office. The district shall provide copies of its rules on payment of the reproduction cost. (Acts 71st Leg., R.S., Ch. 1045, Sec. 13.)

Sec. 8834.113. CONSIDERATIONS FOR RULES AND ORDERS. When adopting a rule or issuing an order, the board shall consider:

(1) the availability of surface water or alternative water supplies;

(2) the economic effects on persons and the community;

(3) the degree and effect of subsidence on the surface of the land; and

(4) the differing topographical and geophysical characteristics of the land. (Acts 71st Leg., R.S., Ch. 1045, Sec. 6(c).)

Sec. 8834.114. HEARINGS. (a) At a regular meeting of the board, the board shall set the date, time, and location for a hearing to be held under this chapter.

(b) The board may hold a hearing at any location in the district and recess a hearing from day to day.

(c) Any person may appear at a hearing and present testimony, evidence, exhibits, or other information in person or by counsel, or both.

(d) The board may use a hearing examiner to hear a subject set for the hearing.

(e) The board shall make the final decision on a subject heard by a hearing examiner. Procedures for use of hearing examiners shall be provided by rule. (Acts 71st Leg., R.S., Ch. 1045, Secs. 14(a), (e), (f), (g), (h).)

Sec. 8834.115. NOTICE OF HEARINGS. (a) Not later than the 10th day before the date set for a hearing other than a permit application hearing, the district shall deliver or mail notice of the hearing to:

(1) each county and municipal government in the district; and

(2) each person that the board considers to have an interest in the subject matter of the hearing.

(b) Not later than the 10th day before the date set for a hearing, the district shall:

(1) publish notice of the hearing once in a newspaper of general circulation in each county in the district; and

(2) post notice of the hearing at the county courthouse of each county in the district in the place where notices are usually posted. (Acts 71st Leg., R.S., Ch. 1045, Secs. 14(b), (c), (d).)

Sec. 8834.116. BOARD BYLAWS AND POLICIES. The board may adopt bylaws and policies as necessary to accomplish its purposes. (Acts 71st Leg., R.S., Ch. 1045, Sec. 6(e).)

Sec. 8834.117. AUTHORITY TO ISSUE SUBPOENAS AND ADMINISTER OATHS. (a) The board may issue a subpoena to compel the testimony of a person or the production of a document if the testimony or document is necessary to carry out the board's powers, duties, and functions under this chapter.

(b) On application by the board, a district court shall enforce a subpoena issued under Subsection (a) in the same manner as a subpoena issued by the court.

(c) The board may administer an oath to a person who testifies before the board. (Acts 71st Leg., R.S., Ch. 1045, Sec. 15.)

Sec. 8834.118. SUITS. (a) The district may sue and be sued in the courts of this state in the name of the district by and through the board.

(b) If requested by the district, the attorney general shall represent the district in the district courts and appellate courts of this state and in the courts of the United States.

(c) The board, in the board's sole discretion, may employ attorneys to represent the district in the district courts and appellate courts of this state and the courts of the United States.

(d) The general manager is the agent of the district on whom process, notice, or demand required or permitted by law to be served on the district may be served.

(e) The district is not required to give a bond for appeal, injunction, or costs in any suit to which the district is a party.

(f) If the district prevails in any suit other than a suit in which it voluntarily intervenes, the district may seek and the court shall grant, in the same action, recovery for attorney's fees, costs for expert witnesses, and other costs incurred by the district before the court. The court shall set the amount of the attorney's fees. (Acts 71st Leg., R.S., Ch. 1045, Sec. 11.)

[Sections 8834.119-8834.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8834.151. DISBURSEMENT OF MONEY. The district may disburse its money by:

(1) a check, draft, order, or other instrument signed by a person authorized under a board bylaw or board resolution; or

(2) electronic funds transfer. (Acts 71st Leg., R.S., Ch. 1045, Sec. 40.)

Sec. 8834.152. DISTRICT ACCOUNTS. The district shall keep a complete system of the district's accounts. (Acts 71st Leg., R.S., Ch. 1045, Sec. 41(a) (part).)

Sec. 8834.153. FISCAL YEAR. The district's fiscal year is the calendar year. (Acts 71st Leg., R.S., Ch. 1045, Sec. 41(c).)

Sec. 8834.154. BUDGET. (a) The board shall adopt an annual budget containing a complete financial statement.

(b) The board may amend the annual budget. (Acts 71st Leg., R.S., Ch. 1045, Sec. 41(d).)

Sec. 8834.155. AUDIT. The district shall have its affairs audited each year by an independent certified public accountant or a firm of independent certified public accountants of recognized integrity and ability. The district shall pay for the audit. (Acts 71st Leg., R.S., Ch. 1045, Sec. 41(a) (part).)

Sec. 8834.156. COPY OF AUDIT. The board shall keep one copy of the audit prepared under Section 8834.155 at the district office open to inspection by any interested person during normal office hours. (Acts 71st Leg., R.S., Ch. 1045, Sec. 41(b).)

Sec. 8834.157. DEPOSITORY AND INVESTMENTS. (a) Except as provided by Subsection (g), the board shall designate one or more banks in the district to serve as a depository for district money. All district money shall be deposited in a depository bank. This subsection does not limit the power of the board to place a portion of the district's money on time deposit or to purchase certificates of deposit or other authorized investments.

(b) The board shall prescribe the term of service for depositories.

(c) To the extent that money in a depository bank or a trustee bank is not invested or insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by Chapter 2257, Government Code.

(d) Before designating a depository bank, the board shall issue a notice stating the time and location the board will meet for that purpose and shall invite banks in the district to submit applications to be designated depositories.

(e) The board shall consider the management and condition of each bank that applies under Subsection (d) and designate as a depository the bank or banks that:

(1) offer the most favorable terms and conditions for handling district money;

(2) the board finds have proper management; and

(3) are in a condition to warrant handling of district money.

(f) Membership on the district's board of an officer or director of a bank does not disqualify the bank from being designated as a depository bank.

(g) If the board does not receive any applications before the meeting under Subsection (d), the board shall designate as a depository a bank or banks inside or outside the district under terms the board finds advantageous to the district.

(h) District money may be invested and reinvested as provided by Chapter 2256, Government Code.

(i) The board by resolution may provide that an authorized district representative may invest and reinvest district money and provide for money to be withdrawn from the appropriate district accounts for investments on terms that the board considers advisable. (Acts 71st Leg., R.S., Ch. 1045, Sec. 42.)

[Sections 8834.158-8834.200 reserved for expansion]

SUBCHAPTER E. REGULATORY PROVISIONS

Sec. 8834.201. GROUNDWATER WITHDRAWALS SUBJECT TO BOARD RULE. Groundwater withdrawals governed by this chapter, including withdrawals of injected water, are subject to reasonable board rules and orders. (Acts 71st Leg., R.S., Ch. 1045, Sec. 6(b).)

Sec. 8834.202. CERTAIN WELLS EXEMPT. This chapter does not apply to:

(1) a well regulated under Chapter 27, Water Code;

(2) a well that:

(A) has a casing with an inside diameter of not more than five inches; and

(B) serves only a single-family dwelling; or

(3) a shallow well that:

(A) is not used to provide water for:

(i) human consumption;

(ii) agriculture;

(iii) manufacturing or industry; or

(iv) water injection; and

(B) withdraws water solely:

(i) to prevent hazardous sand boils, dewater surface construction sites, or relieve hydrostatic uplift on permanent structures;

(ii) for groundwater quality analysis and for monitoring migration of subsurface contaminants or pollution; or

(iii) for recovery of contamination or pollution. (Acts 71st Leg., R.S., Ch. 1045, Sec. 39.)

Sec. 8834.203. REGULATION OF SPACING AND GROUNDWATER WITHDRAWAL. (a) To minimize as far as practicable the drawdown of the water table and the reduction of artesian pressure and to control and prevent subsidence, the board may provide for the spacing of wells in the district and may regulate groundwater withdrawal from wells, taking into consideration:

(1) the economic impact on well owners;

(2) the resulting effect on subsidence; and

(3) other relevant factors.

(b) Before adopting a rule or issuing an order under this section, the board shall set a hearing on the proposed rule or order.

(c) The district may adopt different rules for:

(1) each aquifer, subdivision of an aquifer, or geologic stratum located wholly or partly in the district's territory; or

(2) each geographic area overlying an aquifer or subdivision of an aquifer located wholly or partly in the district's territory. (Acts 71st Leg., R.S., Ch. 1045, Secs. 25(a), (b), (c).)

Sec. 8834.204. WATER-METERING DEVICES. The board may:

(1) require water-metering devices to be placed on wells in the district; and

(2) adopt standards for the accuracy, testing, and calibration of the devices. (Acts 71st Leg., R.S., Ch. 1045, Sec. 26.)

Sec. 8834.205. WELL REGISTRATION. The board by rule may require the registration of any well in the district. (Acts 71st Leg., R.S., Ch. 1045, Sec. 17.)

Sec. 8834.206. PERMIT REQUIRED. (a) The owner of a well located in the district must obtain a permit from the board before:

(1) drilling, equipping, or completing the well;

(2) substantially altering the size of the well or a well pump; or

(3) operating the well.

(b) An operational well must have a permit.

(c) An owner or operator commits a violation if the owner or operator does not obtain a permit as required by Subsection (a). A violation occurs on the first day the drilling, equipping, completing, altering, or operation begins. Each day that a violation continues is a separate violation. (Acts 71st Leg., R.S., Ch. 1045, Secs. 2(7), 18(a), (b).)

Sec. 8834.207. APPLICATION FOR PERMIT. (a) A person must submit an application and an application fee to the board to obtain a permit under this chapter.

(b) The application must state:

(1) the person's name and address;

(2) the location and wellhead elevation of the well or proposed well;

(3) the amount of water being withdrawn or proposed to be withdrawn; and

(4) any other information required by the board as necessary for the board to control and prevent subsidence in the district.

(c) The board shall use the application fee to process applications. (Acts 71st Leg., R.S., Ch. 1045, Secs. 18(f), (g).)

Sec. 8834.208. NOTICE AND HEARING ON PERMIT APPLICATION. (a) The board shall hold a hearing on each permit application.

(b) Not later than the 10th day before the date set for the hearing, the board shall notify the applicant by regular mail or by certified mail, return receipt requested, of the date, time, and location of the hearing.

(c) The board may consider at a hearing as many permit applications as the board considers necessary. (Acts 71st Leg., R.S., Ch. 1045, Sec. 19.)

Sec. 8834.209. ISSUANCE OF PERMIT. (a) Not later than the 60th day after the date of the hearing on a permit application, the board shall:

(1) decide whether to issue the permit; and

(2) prescribe the terms of the permit, if it decides to issue the permit.

(b) In deciding whether to issue a permit and in prescribing the terms of the permit, the board shall consider:

(1) the purpose of this chapter;

(2) the district plan;

(3) the quality, quantity, and availability of surface water or alternative water supplies at prices that are competitive with prices charged by suppliers of surface water in the district;

(4) the economic effect on the applicant of a decision to issue or deny the permit, or of the permit terms, in relation to the effect on subsidence that would result;

(5) the applicant's compliance with this chapter or any district rule, permit, or order; and

(6) all other relevant factors.

(c) The board shall issue a permit to an applicant if the board finds on sufficient evidence that:

(1) there is no other adequate and available substitute or supplemental source of surface water at prices competitive with the prices charged by suppliers of surface water in the district; and

(2) compliance with any provision of this chapter or any district rule will result in an arbitrary taking of property or in the practical closing and elimination of any lawful business, occupation, or activity without sufficient corresponding benefit or advantage to the public.

(d) The permit must state the terms prescribed by the board. The permit must include:

(1) the name and address of the permit holder;

(2) the location of the well;

(3) the date the permit begins and the date the permit expires;

(4) conditions and restrictions placed on groundwater withdrawal; and

(5) other terms necessary to control and prevent subsidence.

(e) The board may condition the issuance of a permit under this section on the resolution of a previous or continuing violation of this chapter or of any district rule, permit, or order. The board may require an applicant to pay a civil penalty or settlement amount, or take other necessary action, to resolve a previous or continuing violation. (Acts 71st Leg., R.S., Ch. 1045, Sec. 20.)

Sec. 8834.210. TERM OF PERMIT. (a) A permit issued under this chapter expires on the first anniversary of the date of issuance, unless the board specifies a different period.

(b) To aid the district in the effective and expeditious performance of its duties, the board may issue a permit for a term not to exceed five years if the issuance does not impair the district's ability to control and prevent subsidence in the district.

(c) A permit is not a vested right of the permit holder. The board may revoke, suspend, or amend a permit after notice and hearing when reasonably necessary to accomplish the purpose of this chapter. (Acts 71st Leg., R.S., Ch. 1045, Secs. 18(c), (d).)

Sec. 8834.211. RENEWAL OF PERMIT. The board may renew a permit in the manner provided for issuing an original permit. (Acts 71st Leg., R.S., Ch. 1045, Sec. 18(e).)

Sec. 8834.212. PERMIT FEES. (a) When the board issues or renews a permit, the board shall collect a permit fee from the applicant. The fee shall be determined by a schedule based on:

(1) the term of the permit; and

(2) the maximum annual amount of groundwater the board authorizes to be withdrawn from the well.

(b) The board may establish a disincentive permit fee to serve as a regulatory tool by creating a disincentive to continued overreliance on groundwater.

(c) The board shall determine the fee schedule after a hearing.

(d) The board shall use permit fees collected under this section to pay the cost of issuing permits and performing other regulatory functions under this chapter, including making grants, loans, or contractual payments to achieve, facilitate, or expedite reductions in groundwater pumping or the development or distribution of alternative water supplies. (Acts 71st Leg., R.S., Ch. 1045, Sec. 34.)

Sec. 8834.213. TRANSFERRING PERMIT. (a) A permit is transferable only if the permit holder and the new owner of the well notify the district by certified mail, return receipt requested, of:

(1) the transfer of ownership of the well; and

(2) the name and address of the new owner.

(b) On receipt of the information required under Subsection (a), the district shall issue an amended permit with the new owner of the well listed as the permit holder. The remaining terms of the permit remain unchanged. (Acts 71st Leg., R.S., Ch. 1045, Sec. 21.)

Sec. 8834.214. ANNUAL REPORT. Before January 31 each year, a well owner who holds a permit under this chapter shall submit to the board a report stating:

(1) the well owner's name;

(2) the location of the well;

(3) the total amount of groundwater withdrawn from the well during the preceding 12-month period;

(4) the total amount of groundwater withdrawn from the well during each month of the preceding 12-month period;

(5) the purpose for which the groundwater was used; and

(6) any other information required by the board that the board considers necessary for the board to control and prevent subsidence in the district. (Acts 71st Leg., R.S., Ch. 1045, Sec. 22.)

Sec. 8834.215. REDUCTION OF GROUNDWATER USE. (a) The board by order may require a person to completely or partially discontinue the use of groundwater by:

(1) acquiring an alternative water supply needed to replace the water supply covered by the order; or

(2) participating in a groundwater reduction plan or other agreement the board approves as complying with the district's regulatory requirements.

(b) The board by order or rule may require a person to reduce groundwater use by eliminating waste or implementing water conservation measures. (Acts 71st Leg., R.S., Ch. 1045, Secs. 25(d), (e).)

Sec. 8834.216. OPEN OR UNCOVERED WELLS. (a) The district may require the owner or lessee of land on which an open or uncovered well is located to keep the well closed or capped with a covering capable of supporting not less than 400 pounds when the well is not in actual use.

(b) If the owner or lessee fails or refuses to close or cap a well as required, a person employed by the district may enter the land and close or cap the well safely and securely. (Acts 71st Leg., R.S., Ch. 1045, Sec. 37.)

[Sections 8834.217-8834.250 reserved for expansion]

SUBCHAPTER F. APPEAL AND ENFORCEMENT PROVISIONS

Sec. 8834.251. APPEAL OF DISTRICT ACTIONS. (a) A person who is adversely affected by a rule, order, or other official action of the board, including a person residing in or owning real property in the district whose residence or real property is subsiding, may appeal the action to a district court in any county in the district after any administrative appeal is finally resolved.

(b) An appeal under this section must be filed not later than the 45th day after the date any administrative appeal is finally resolved.

(c) On written request from a person who is adversely affected, the board shall make written findings and conclusions regarding a rule, order, or other official action of the district. The board shall provide a certified copy of the findings and conclusions to the person not later than the 35th day after the date the request was made.

(d) An appeal under this section of the legal propriety of a rule, order, or other action of the board is governed by the substantial evidence rule as provided by Subchapter G, Chapter 2001, Government Code. The burden of proof is on the petitioner, and the challenged rule, order, or other official action of the district is considered prima facie valid.

(e) The district court shall set for trial as expeditiously as possible an appeal brought under this section and may not postpone or continue the suit unless the reasons for postponement or continuance are imperative. (Acts 71st Leg., R.S., Ch. 1045, Sec. 32.)

Sec. 8834.252. INJUNCTIVE RELIEF; CIVIL PENALTY. (a) If a person has violated, is violating, or is threatening to violate this chapter or a district rule, permit, or order, the district may institute an action in a district court in the district for:

(1) an injunction to restrain the person from continuing the violation or the threat of violation;

(2) a civil penalty of not less than $50 and not more than $5,000 for each violation and for each day of violation; or

(3) both injunctive relief and a civil penalty.

(b) The attorney general shall institute an action under this section at the request of the board, or at the request of the general manager if authorized by the board. The district in its sole discretion may employ attorneys of its choice to institute the action.

(c) The district is not required to post bond or other security with the court.

(d) The district court shall grant the injunctive relief requested under Subsection (a) as the facts warrant if the court finds that a person is violating or threatening to violate this chapter or a district rule, permit, or order.

(e) The district court shall assess a civil penalty requested under Subsection (a) in the amount provided by that subsection if the court finds that a person has violated or is violating this chapter or a district rule, permit, or order. (Acts 71st Leg., R.S., Ch. 1045, Sec. 43.) CHAPTER 8836. FAYETTE COUNTY GROUNDWATER CONSERVATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8836.001. DEFINITIONS Sec. 8836.002. NATURE OF DISTRICT Sec. 8836.003. FINDINGS OF PUBLIC USE AND BENEFIT Sec. 8836.004. DISTRICT TERRITORY Sec. 8836.005. DISTRICT NAME CHANGE

[Sections 8836.006-8836.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8836.051. COMPOSITION OF BOARD; TERMS Sec. 8836.052. ELECTION OF DIRECTORS Sec. 8836.053. ELECTION DATE Sec. 8836.054. QUALIFICATIONS FOR OFFICE

[Sections 8836.055-8836.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8836.101. GROUNDWATER CONSERVATION DISTRICT

POWERS AND DUTIES Sec. 8836.102. REGIONAL COOPERATION

[Sections 8836.103-8836.150 reserved for expansion]

SUBCHAPTER D. FINANCIAL PROVISIONS Sec. 8836.151. DISTRICT REVENUE Sec. 8836.152. ELECTION TO APPROVE BONDS OR NOTES

CHAPTER 8836. FAYETTE COUNTY GROUNDWATER CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8836.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Fayette County Groundwater Conservation District. (Acts 77th Leg., R.S., Ch. 302, Sec. 2; New.)

Sec. 8836.002. NATURE OF DISTRICT. The district is a groundwater conservation district in Fayette County created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 302, Secs. 1(a) (part), (b).)

Sec. 8836.003. FINDINGS OF PUBLIC USE AND BENEFIT. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 302, Sec. 4.)

Sec. 8836.004. DISTRICT TERRITORY. The district's boundaries are coextensive with the boundaries of Fayette County, Texas, unless the district's territory has been modified under:

(1) Subchapter J, Chapter 36, Water Code; or

(2) other law. (Acts 77th Leg., R.S., Ch. 302, Sec. 3; New.)

Sec. 8836.005. DISTRICT NAME CHANGE. The board by resolution may change the district's name. (Acts 77th Leg., R.S., Ch. 302, Sec. 14.)

[Sections 8836.006-8836.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8836.051. COMPOSITION OF BOARD; TERMS. (a) The district is governed by a board of five directors.

(b) Directors serve staggered four-year terms. (Acts 77th Leg., R.S., Ch. 302, Secs. 7(a), (d).)

Sec. 8836.052. ELECTION OF DIRECTORS. (a) Directors are elected according to the commissioners precinct method as provided by this section.

(b) One director is elected by the voters of the entire district. One director is elected from each county commissioners precinct by the voters of that precinct.

(c) A person shall indicate on the application for a place on the ballot:

(1) the precinct that the person seeks to represent; or

(2) that the person seeks to represent the district at large.

(d) At the first election after the county commissioners precincts are redrawn under Section 18, Article V, Texas Constitution, four new directors shall be elected to represent the precincts. The directors from Precincts 1 and 3 are elected for two-year terms. The directors from Precincts 2 and 4 are elected for four-year terms. (Acts 77th Leg., R.S., Ch. 302, Secs. 9(a), (b), (d), (e).)

Sec. 8836.053. ELECTION DATE. On the first Tuesday after the first Monday in November of each even-numbered year, the appropriate number of directors shall be elected for terms beginning January 1 of the following year. (Acts 77th Leg., R.S., Ch. 302, Sec. 11(b).)

Sec. 8836.054. QUALIFICATIONS FOR OFFICE. (a) To be qualified to be a candidate for or to serve as director at large, a person must be a registered voter in the district.

(b) To be qualified to be a candidate for or to serve as director from a county commissioners precinct, a person must be a registered voter of that precinct. (Acts 77th Leg., R.S., Ch. 302, Sec. 9(c).)

[Sections 8836.055-8836.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8836.101. GROUNDWATER CONSERVATION DISTRICT POWERS AND DUTIES. Except as provided by this chapter, the district has the rights, powers, privileges, functions, and duties provided by the general law of this state, including Chapter 36, Water Code, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 302, Sec. 5(a) (part).)

Sec. 8836.102. REGIONAL COOPERATION. To provide for regional continuity, the district shall:

(1) participate in coordination meetings with adjacent districts on an as-needed basis;

(2) coordinate the collection of data with adjacent districts in such a way as to achieve relative uniformity of data type and quality;

(3) coordinate efforts to monitor water quality with adjacent districts, local governments, and state agencies;

(4) provide groundwater level data to adjacent districts;

(5) investigate any groundwater and aquifer pollution with the intention of locating its source;

(6) notify adjacent districts and all appropriate agencies of any detected groundwater pollution;

(7) annually provide to adjacent districts an inventory of water wells and an estimate of groundwater production within the district; and

(8) include adjacent districts on the mailing lists for district newsletters, seminars, public education events, news articles, and field days. (Acts 77th Leg., R.S., Ch. 302, Sec. 6.)

[Sections 8836.103-8836.150 reserved for expansion]

SUBCHAPTER D. FINANCIAL PROVISIONS

Sec. 8836.151. DISTRICT REVENUE. To pay the district's maintenance and operating costs and to pay any bonds or notes issued by the district, the district may:

(1) impose an ad valorem tax at a rate not to exceed two cents on each $100 valuation of taxable property in the district, subject to voter approval;

(2) assess fees for services or for water withdrawn from non-exempt wells; or

(3) solicit and accept grants from any private or public source. (Acts 77th Leg., R.S., Ch. 302, Sec. 12.)

Sec. 8836.152. ELECTION TO APPROVE BONDS OR NOTES. The district may not issue or sell bonds or notes payable from any source unless the action is approved by a majority of the voters of the district voting at an election held for that purpose. (Acts 77th Leg., R.S., Ch. 302, Sec. 13.) CHAPTER 8840. GLASSCOCK GROUNDWATER CONSERVATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8840.001. DEFINITIONS Sec. 8840.002. NATURE OF DISTRICT Sec. 8840.003. FINDINGS OF PUBLIC USE AND BENEFIT Sec. 8840.004. DISTRICT TERRITORY

[Sections 8840.005-8840.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8840.051. COMPOSITION OF BOARD; TERMS Sec. 8840.052. ELECTION OF DIRECTORS Sec. 8840.053. ELECTION DATE Sec. 8840.054. QUALIFICATIONS FOR ELECTION Sec. 8840.055. ELECTION OF DIRECTORS FOLLOWING

ANNEXATION

[Sections 8840.056-8840.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8840.101. GENERAL POWERS AND DUTIES Sec. 8840.102. ADMINISTRATIVE PROCEDURES Sec. 8840.103. WELL PERMITS Sec. 8840.104. WELL SPACING AND PRODUCTION Sec. 8840.105. LOGS Sec. 8840.106. SURVEYS Sec. 8840.107. RESEARCH AND DETERMINATIONS REGARDING

GROUNDWATER WITHDRAWAL Sec. 8840.108. COLLECTION AND PRESERVATION OF

INFORMATION Sec. 8840.109. CONTRACT FOR SALE AND DISTRIBUTION OF

WATER

CHAPTER 8840. GLASSCOCK GROUNDWATER CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8840.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Glasscock Groundwater Conservation District. (Acts 67th Leg., R.S., Ch. 489, Sec. 1 (part); New.)

Sec. 8840.002. NATURE OF DISTRICT. The district is created under Section 59, Article XVI, Texas Constitution, to provide for the conservation, preservation, protection, recharge, and prevention of waste of the groundwater reservoirs located under district land, consistent with the objectives of Section 59, Article XVI, Texas Constitution, and Chapter 36, Water Code. (Acts 67th Leg., R.S., Ch. 489, Secs. 1 (part), 3.)

Sec. 8840.003. FINDINGS OF PUBLIC USE AND BENEFIT. (a) The district is created to serve a public use and benefit.

(b) All land included in the district will benefit from the district. (Acts 67th Leg., R.S., Ch. 489, Sec. 7(a).)

Sec. 8840.004. DISTRICT TERRITORY. The district's boundaries are coextensive with the boundaries of Glasscock County, Texas, unless the district's territory has been modified under:

(1) Subchapter J, Chapter 36, Water Code; or

(2) other law. (Acts 67th Leg., R.S., Ch. 489, Sec. 2; New.)

[Sections 8840.005-8840.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8840.051. COMPOSITION OF BOARD; TERMS. (a) The district is governed by a board of directors as provided by Chapter 36, Water Code.

(b) Directors serve staggered four-year terms. (Acts 67th Leg., R.S., Ch. 489, Secs. 11(a), (f) (part).)

Sec. 8840.052. ELECTION OF DIRECTORS. (a) The district is divided into numbered precincts for electing directors.

(b) The board may revise the district precincts as necessary or appropriate.

(c) One director is elected from each district precinct and one director is elected at large. (Acts 67th Leg., R.S., Ch. 489, Secs. 11(c), (d).)

Sec. 8840.053. ELECTION DATE. The board shall hold an election to elect the appropriate number of directors on the uniform election date in May of each even-numbered year. (Acts 67th Leg., R.S., Ch. 489, Sec. 11(f) (part).)

Sec. 8840.054. QUALIFICATIONS FOR ELECTION. (a) To be qualified for election as a director, a person must:

(1) be a resident of the district or proposed district;

(2) own land subject to taxation in the district or proposed district; and

(3) be at least 21 years of age.

(b) To be qualified for election as a director from a district precinct, a person must own land subject to taxation in the district precinct from which the person is elected. (Acts 67th Leg., R.S., Ch. 489, Secs. 11(b), (e).)

Sec. 8840.055. ELECTION OF DIRECTORS FOLLOWING ANNEXATION. (a) Territory may be added to the district under Chapter 36, Water Code.

(b) If the district annexes territory, the directors shall determine the precincts to which annexed territory is added for the purpose of electing directors. (Acts 67th Leg., R.S., Ch. 489, Sec. 10.)

[Sections 8840.056-8840.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8840.101. GENERAL POWERS AND DUTIES. The district may exercise:

(1) the powers essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution; and

(2) the rights, powers, duties, privileges, and functions provided by this chapter, Chapter 36, Water Code, and other laws of this state relating to groundwater conservation districts. (Acts 67th Leg., R.S., Ch. 489, Secs. 1 (part), 4 (part).)

Sec. 8840.102. ADMINISTRATIVE PROCEDURES. Except as provided by this chapter, the administrative and procedural provisions of Chapter 36, Water Code, apply to the district. (Acts 67th Leg., R.S., Ch. 489, Sec. 5.)

Sec. 8840.103. WELL PERMITS. (a) As permitted by Chapter 36, Water Code, the district may:

(1) require a permit for drilling, equipping, or completing a well in a groundwater reservoir; and

(2) issue a permit subject to terms relating to drilling, equipping, or completing a well that are necessary to prevent waste or conserve, preserve, and protect groundwater.

(b) The district may not deny an owner of land, or the owner's heirs, assigns, and lessees, a permit to drill a well on that land or the right to produce groundwater from that well subject to rules adopted under this chapter. (Acts 67th Leg., R.S., Ch. 489, Sec. 4 (part).)

Sec. 8840.104. WELL SPACING AND PRODUCTION. To minimize as far as practicable the drawdown of the water table or the reduction of the artesian pressure, the district, as permitted by Chapter 36, Water Code, may provide for the spacing of wells producing from the groundwater reservoirs and regulate the production from those wells. (Acts 67th Leg., R.S., Ch. 489, Sec. 4 (part).)

Sec. 8840.105. LOGS. As permitted by Chapter 36, Water Code, the district may require that:

(1) accurate driller's logs be kept of the drilling, equipping, or completion of a well into a groundwater reservoir; and

(2) a copy of a driller's log and of any electric log that may be made of the well be filed with the district. (Acts 67th Leg., R.S., Ch. 489, Sec. 4 (part).)

Sec. 8840.106. SURVEYS. As permitted by Chapter 36, Water Code, the district may have a licensed engineer survey the groundwater of a groundwater reservoir and the facilities for the development, production, and use of that groundwater and determine the quantity of the groundwater available for production and use and the improvements, developments, and recharges needed for the groundwater reservoir. (Acts 67th Leg., R.S., Ch. 489, Sec. 4 (part).)

Sec. 8840.107. RESEARCH AND DETERMINATIONS REGARDING GROUNDWATER WITHDRAWAL. As permitted by Chapter 36, Water Code, the district may carry out research projects, develop information, and determine limitations, if any, that should be made on the withdrawal of groundwater from a groundwater reservoir. (Acts 67th Leg., R.S., Ch. 489, Sec. 4 (part).)

Sec. 8840.108. COLLECTION AND PRESERVATION OF INFORMATION. As permitted by Chapter 36, Water Code, the district may collect and preserve information regarding the use of groundwater and the practicability of recharge of a groundwater reservoir. (Acts 67th Leg., R.S., Ch. 489, Sec. 4 (part).)

Sec. 8840.109. CONTRACT FOR SALE AND DISTRIBUTION OF WATER. As permitted by Chapter 36, Water Code, the district may contract for, sell, and distribute water from a water import authority or other agency. (Acts 67th Leg., R.S., Ch. 489, Sec. 4 (part).) CHAPTER 8842. HEADWATERS GROUNDWATER CONSERVATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8842.001. DEFINITIONS Sec. 8842.002. NATURE OF DISTRICT Sec. 8842.003. FINDINGS OF PUBLIC USE AND BENEFIT Sec. 8842.004. DISTRICT TERRITORY

[Sections 8842.005-8842.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8842.051. COMPOSITION OF BOARD; TERMS Sec. 8842.052. ELECTION OF DIRECTORS Sec. 8842.053. ELECTION DATE Sec. 8842.054. ELIGIBILITY Sec. 8842.055. COMPENSATION; EXPENSES

[Sections 8842.056-8842.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8842.101. GROUNDWATER CONSERVATION DISTRICT

POWERS AND DUTIES Sec. 8842.102. AUTHORITY OF DISTRICT TO CONTRACT WITH

GOVERNMENTAL BODIES Sec. 8842.103. GRANTING OF GROUNDWATER RIGHTS

PROHIBITED

CHAPTER 8842. HEADWATERS GROUNDWATER CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8842.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Headwaters Groundwater Conservation District. (Acts 72nd Leg., R.S., Ch. 693, Sec. 2; New.)

Sec. 8842.002. NATURE OF DISTRICT. The district is a groundwater conservation district in Kerr County created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 72nd Leg., R.S., Ch. 693, Secs. 1(a) (part), (b).)

Sec. 8842.003. FINDINGS OF PUBLIC USE AND BENEFIT. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution. (Acts 72nd Leg., R.S., Ch. 693, Sec. 4.)

Sec. 8842.004. DISTRICT TERRITORY. The district's boundaries are coextensive with the boundaries of Kerr County, unless the district's territory has been modified under:

(1) Subchapter J, Chapter 36, Water Code; or

(2) other law. (Acts 72nd Leg., R.S., Ch. 693, Sec. 3; New.)

[Sections 8842.005-8842.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8842.051. COMPOSITION OF BOARD; TERMS. (a) The district is governed by a board of five directors.

(b) Directors serve staggered four-year terms. (Acts 72nd Leg., R.S., Ch. 693, Secs. 6(a), (d).)

Sec. 8842.052. ELECTION OF DIRECTORS. (a) Directors are elected according to the commissioners precinct method as provided by this section.

(b) One director is elected by the voters of the entire district. One director is elected from each county commissioners precinct by the voters of that precinct.

(c) A person shall indicate on the application for a place on the ballot:

(1) the precinct that the person seeks to represent; or

(2) that the person seeks to represent the district at large.

(d) At the first election after the county commissioners precincts are redrawn under Section 18, Article V, Texas Constitution, a new director is elected from each precinct. The directors shall draw lots to determine which two directors shall serve two-year terms and which two directors shall serve four-year terms. (Acts 72nd Leg., R.S., Ch. 693, Secs. 9(a), (c), (e), (f).)

Sec. 8842.053. ELECTION DATE. (a) Except as provided by Subsection (b), directors' elections shall occur on the date of the general election for state and county officers.

(b) If directors' elections may not lawfully be held on the date described by Subsection (a), directors' elections shall occur on the uniform election date in May of odd-numbered years. (Acts 72nd Leg., R.S., Ch. 693, Sec. 9(b).)

Sec. 8842.054. ELIGIBILITY. (a) To be eligible to serve on the board, a person must have been a resident of the district for at least one year before the date the person takes office as a director.

(b) To be qualified to be a candidate for or to serve as director at large, a person must be a registered voter in the district.

(c) To be a candidate for or to serve as director from a county commissioners precinct, a person must be a registered voter of that precinct. (Acts 72nd Leg., R.S., Ch. 693, Secs. 6(h), 9(d).)

Sec. 8842.055. COMPENSATION; EXPENSES. A director serves without compensation but is entitled to reimbursement for actual expenses incurred in performing activities related to district business, including education, travel, and seminars. (Acts 72nd Leg., R.S., Ch. 693, Sec. 6(g).)

[Sections 8842.056-8842.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8842.101. GROUNDWATER CONSERVATION DISTRICT POWERS AND DUTIES. The district has the rights, powers, privileges, functions, and duties provided by the general law of this state, including Chapter 36, Water Code, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution. (Acts 72nd Leg., R.S., Ch. 693, Sec. 5(a) (part).)

Sec. 8842.102. AUTHORITY OF DISTRICT TO CONTRACT WITH GOVERNMENTAL BODIES. (a) The district may contract with Kerr County or a river authority whose boundaries are coextensive with the district's boundaries for services available from the county or river authority that directly relate to the district's activities. Any party to a contract under this subsection may petition the Texas Commission on Environmental Quality to resolve any dispute arising out of the contract.

(b) The district may contract with a state agency or another governmental body to carry out any function of the district. (Acts 72nd Leg., R.S., Ch. 693, Sec. 10.)

Sec. 8842.103. GRANTING OF GROUNDWATER RIGHTS PROHIBITED. The district may not sell, donate, lease, or otherwise grant rights in or to groundwater located in the district. (Acts 72nd Leg., R.S., Ch. 693, Sec. 11.) CHAPTER 8844. HILL COUNTRY UNDERGROUND WATER CONSERVATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8844.001. DEFINITIONS Sec. 8844.002. NATURE OF DISTRICT Sec. 8844.003. LEGISLATIVE FINDINGS Sec. 8844.004. DISTRICT TERRITORY

[Sections 8844.005-8844.050 reserved for expansion]

SUBCHAPTER B. ANNEXATION OF TERRITORY Sec. 8844.051. ANNEXATION OF TERRITORY AUTHORIZED Sec. 8844.052. PETITION FOR ANNEXATION ELECTION Sec. 8844.053. HEARING; ELECTION ORDER Sec. 8844.054. BALLOTS Sec. 8844.055. DECLARATION OF ELECTION RESULTS

[Sections 8844.056-8844.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS Sec. 8844.101. COMPOSITION OF BOARD Sec. 8844.102. TERMS Sec. 8844.103. QUALIFICATIONS FOR ELECTION;

ELIGIBILITY TO SERVE Sec. 8844.104. ELECTION DATE

[Sections 8844.105-8844.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES Sec. 8844.151. GROUNDWATER CONSERVATION DISTRICT

POWERS AND DUTIES Sec. 8844.152. RECLAMATION Sec. 8844.153. SOIL CONSERVATION AND IMPROVEMENT Sec. 8844.154. INPUT WELLS Sec. 8844.155. ACQUISITION OF PROPERTY Sec. 8844.156. SALE AND DISPOSAL OF PROPERTY Sec. 8844.157. APPEARANCE BEFORE RAILROAD COMMISSION Sec. 8844.158. PROHIBITION: SUPPLY OF GROUNDWATER

CHAPTER 8844. HILL COUNTRY UNDERGROUND WATER CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8844.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Hill Country Underground Water Conservation District. (Acts 70th Leg., R.S., Ch. 865, Sec. 2; New.)

Sec. 8844.002. NATURE OF DISTRICT. The district is created under Section 59, Article XVI, Texas Constitution. (Acts 70th Leg., R.S., Ch. 865, Sec. 1 (part).)

Sec. 8844.003. LEGISLATIVE FINDINGS. The legislature finds that:

(1) the organization of the district is feasible and practicable;

(2) the land to be included in the district and the residents of the district will benefit from the creation of the district;

(3) there is a public necessity for the district; and

(4) the creation of the district will further the public welfare. (Acts 70th Leg., R.S., Ch. 865, Sec. 3.)

Sec. 8844.004. DISTRICT TERRITORY. The district is composed of the territory located in Gillespie County, unless the district's territory has been modified under:

(1) this subchapter; or

(2) other law. (Acts 70th Leg., R.S., Ch. 865, Sec. 4; New.)

[Sections 8844.005-8844.050 reserved for expansion]

SUBCHAPTER B. ANNEXATION OF TERRITORY

Sec. 8844.051. ANNEXATION OF TERRITORY AUTHORIZED. The board may annex territory to the district as provided by this subchapter. (Acts 70th Leg., R.S., Ch. 865, Sec. 20(a).)

Sec. 8844.052. PETITION FOR ANNEXATION ELECTION. (a) To initiate a proceeding to annex territory to the district, a written petition requesting that the board call an annexation election must be presented to the board.

(b) The petition must:

(1) define the territory to be annexed; and

(2) be signed by at least 50 percent of the persons who reside in the territory to be annexed according to the most recent federal census. (Acts 70th Leg., R.S., Ch. 865, Sec. 20(b).)

Sec. 8844.053. HEARING; ELECTION ORDER. (a) On receipt of a petition under Section 8844.052, the board shall set a date for a hearing on the petition. The hearing must be set for a date that is not later than the 20th day after the date the board receives the petition.

(b) The board shall publish notice of the place, time, date, and purpose of the hearing in one or more newspapers with general circulation in the district and in the territory to be annexed.

(c) At the hearing, any person may present testimony for or against annexation of the territory to the district.

(d) At the conclusion of the hearing, the board shall determine whether an election should be held to determine whether the territory should be annexed.

(e) If the board determines that an election should be held, the board shall issue an order calling separate elections to be held in the district and in the territory to be annexed to determine whether the territory should be annexed to the district. The board shall hold the elections on the same day at the next uniform election date following the date of the order.

(f) If the board determines that an election should not be held, the board shall issue an order denying the petition. (Acts 70th Leg., R.S., Ch. 865, Secs. 20(c), (d), (e), (f), (g), (h).)

Sec. 8844.054. BALLOTS. Ballots for an election called under Section 8844.053 must be printed to provide for voting for or against the proposition: "The inclusion of _______________________ (briefly describe the territory to be annexed) in the Hill Country Underground Water Conservation District, and assumption by the described territory of a proportional share of the outstanding indebtedness of the district." (Acts 70th Leg., R.S., Ch. 865, Sec. 20(i).)

Sec. 8844.055. DECLARATION OF ELECTION RESULTS. (a) If a majority of the voters in the district and a majority of the voters in the territory to be annexed voting on the proposition vote in favor of the proposition, the territory is annexed to the district, and the board shall issue a declaration to that effect.

(b) If a majority of the voters in the district or in the territory to be annexed voting on the proposition vote against annexing the territory to the district, the territory is not annexed to the district, and the board shall issue a declaration to that effect.

(c) The board shall file a copy of the election results and declaration with the Texas Commission on Environmental Quality. (Acts 70th Leg., R.S., Ch. 865, Sec. 20(j).)

[Sections 8844.056-8844.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Sec. 8844.101. COMPOSITION OF BOARD. (a) The board is composed of five directors, unless the board is expanded under Subsection (b).

(b) If territory is annexed to the district, the territory annexed is entitled to be represented by one director, and the board shall add one director to the board for that purpose. The board shall appoint an initial director to represent the newly annexed territory. The initial director serves until the first regular meeting of the board following the first regular election of directors subsequent to the annexation of the territory. (Acts 70th Leg., R.S., Ch. 865, Secs. 8, 20(k).)

Sec. 8844.102. TERMS. Directors serve four-year terms. (Acts 70th Leg., R.S., Ch. 865, Sec. 11.)

Sec. 8844.103. QUALIFICATIONS FOR ELECTION; ELIGIBILITY TO SERVE. (a) To be qualified for election as a director, a person must be:

(1) a resident of the district; and

(2) at least 18 years of age.

(b) In addition to the requirements of Subsection (a):

(1) to be a director from a county commissioners precinct, a person must be a resident of that precinct; and

(2) to be a director from a specific territory annexed to the district, a person must be a resident of that territory. (Acts 70th Leg., R.S., Ch. 865, Sec. 9.)

Sec. 8844.104. ELECTION DATE. Each odd-numbered year, the board shall hold an election in the district on the uniform election date in May to elect the appropriate number of directors. (Acts 70th Leg., R.S., Ch. 865, Sec. 10.)

[Sections 8844.105-8844.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES

Sec. 8844.151. GROUNDWATER CONSERVATION DISTRICT POWERS AND DUTIES. Except to the extent of a conflict with this chapter or as limited by this chapter, the district is governed by, is subject to, may exercise the powers granted by, and shall exercise the duties provided by Chapter 36, Water Code. (Acts 70th Leg., R.S., Ch. 865, Sec. 12.)

Sec. 8844.152. RECLAMATION. The district may:

(1) reclaim land in the district; and

(2) construct works, facilities, and improvements necessary to accomplish that purpose. (Acts 70th Leg., R.S., Ch. 865, Sec. 13.)

Sec. 8844.153. SOIL CONSERVATION AND IMPROVEMENT. The district may construct and maintain terraces or other structures on land in the district and may engage in or promote land treatment measures for soil conservation and improvement. (Acts 70th Leg., R.S., Ch. 865, Sec. 14.)

Sec. 8844.154. INPUT WELLS. The district may drill, equip, operate, and maintain input wells, pumps, and other facilities to carry out its purpose and powers under this chapter. (Acts 70th Leg., R.S., Ch. 865, Sec. 15.)

Sec. 8844.155. ACQUISITION OF PROPERTY. The district may acquire any land or property necessary to carry out this chapter by:

(1) gift;

(2) grant;

(3) devise;

(4) lease;

(5) purchase; or

(6) the power of eminent domain. (Acts 70th Leg., R.S., Ch. 865, Sec. 16.)

Sec. 8844.156. SALE AND DISPOSAL OF PROPERTY. Subject to this chapter and Chapter 36, Water Code, the district may sell or otherwise dispose of land and other property of the district that is not necessary to carry out the purpose or powers of the district as determined by the board. (Acts 70th Leg., R.S., Ch. 865, Sec. 17.)

Sec. 8844.157. APPEARANCE BEFORE RAILROAD COMMISSION. The district, through the directors or the district's general manager, may appear before the Railroad Commission of Texas and present evidence and information related to a pending permit application for an injection well to be located in the district. (Acts 70th Leg., R.S., Ch. 865, Sec. 18.)

Sec. 8844.158. PROHIBITION: SUPPLY OF GROUNDWATER. The district may not contract to or take an action to supply groundwater inside or outside the district. (Acts 70th Leg., R.S., Ch. 865, Sec. 19.) CHAPTER 8846. KINNEY COUNTY GROUNDWATER CONSERVATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8846.001. DEFINITIONS Sec. 8846.002. NATURE OF DISTRICT Sec. 8846.003. FINDINGS OF PUBLIC USE AND BENEFIT Sec. 8846.004. DISTRICT TERRITORY Sec. 8846.005. DISTRICT NAME CHANGE Sec. 8846.006. CONTRACTS FOR ELECTION SERVICES

[Sections 8846.007-8846.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8846.051. COMPOSITION OF BOARD; TERMS Sec. 8846.052. ELECTION OF DIRECTORS Sec. 8846.053. ELECTION DATE Sec. 8846.054. ELIGIBILITY Sec. 8846.055. BOARD VACANCY Sec. 8846.056. COMPENSATION; EXPENSES

[Sections 8846.057-8846.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8846.101. GROUNDWATER CONSERVATION DISTRICT

POWERS AND DUTIES

[Sections 8846.102-8846.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8846.151. TAXES Sec. 8846.152. FEES

CHAPTER 8846. KINNEY COUNTY GROUNDWATER CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8846.001. DEFINITIONS. In this chapter:

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

(2) "Commissioners court" means the Kinney County Commissioners Court.

(3) "Director" means a board member.

(4) "District" means the Kinney County Groundwater Conservation District. (Acts 77th Leg., R.S., Ch. 1344, Sec. 2; New.)

Sec. 8846.002. NATURE OF DISTRICT. The district is a groundwater conservation district in Kinney County created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1344, Secs. 1(a) (part), (b).)

Sec. 8846.003. FINDINGS OF PUBLIC USE AND BENEFIT. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1344, Sec. 4.)

Sec. 8846.004. DISTRICT TERRITORY. The district's boundaries are coextensive with the boundaries of Kinney County, Texas, unless the district's territory has been modified under:

(1) Subchapter J, Chapter 36, Water Code; or

(2) other law. (Acts 77th Leg., R.S., Ch. 1344, Sec. 3; New.)

Sec. 8846.005. DISTRICT NAME CHANGE. The board may change the district's name when the district annexes territory. (Acts 77th Leg., R.S., Ch. 1344, Sec. 12.)

Sec. 8846.006. CONTRACTS FOR ELECTION SERVICES. The district shall contract with the county clerk of Kinney County to conduct the district's elections. (Acts 77th Leg., R.S., Ch. 1344, Sec. 9(b) (part).)

[Sections 8846.007-8846.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8846.051. COMPOSITION OF BOARD; TERMS. (a) The district is governed by a board of seven directors.

(b) Directors serve staggered four-year terms.

(c) A director may serve consecutive terms. (Acts 77th Leg., R.S., Ch. 1344, Secs. 6(a), (d), (g).)

Sec. 8846.052. ELECTION OF DIRECTORS. (a) Directors are elected according to the method provided by this section.

(b) Three at-large directors are elected by the voters of the entire district. One director is elected from each county commissioners precinct by the voters of that precinct.

(c) A person shall indicate on the application for a place on the ballot the position on the board for which the person is a candidate.

(d) At the first election after the county commissioners precincts are redrawn under Section 18, Article V, Texas Constitution, each director in office on the effective date of the change, or elected to a term of office beginning on or after the effective date of the change, shall serve, unless otherwise removed as provided by law, in the position to which each was elected for the entire term to which elected, even though the change in boundaries places the director's residence outside the precinct from which the director was elected. (Acts 77th Leg., R.S., Ch. 1344, Secs. 8(a), (b), (e), (f).)

Sec. 8846.053. ELECTION DATE. On the first Tuesday after the first Monday in November of each even-numbered year, the appropriate number of directors shall be elected. (Acts 77th Leg., R.S., Ch. 1344, Sec. 10(b).)

Sec. 8846.054. ELIGIBILITY. (a) To be eligible to be a candidate for or to serve as a director at large, a person must be a registered voter in the district and:

(1) for position one, reside in the district;

(2) for position two, reside in the city of Brackettville; and

(3) for position three, reside in the Fort Clark Springs Municipal Utility District.

(b) To be eligible to be a candidate for or to serve as a director from a county commissioners precinct, a person must:

(1) be a registered voter of that precinct; and

(2) reside in a rural area of that precinct. (Acts 77th Leg., R.S., Ch. 1344, Secs. 8(c), (d).)

Sec. 8846.055. BOARD VACANCY. (a) The commissioners court shall appoint a replacement to fill a vacancy in the office of director.

(b) The appointed replacement serves until the next directors' election.

(c) At that election, a person is elected to fill the position. If the position is not scheduled to be filled at the election, the person elected to fill the position serves only for the remainder of the unexpired term. (Acts 77th Leg., R.S., Ch. 1344, Sec. 6(i).)

Sec. 8846.056. COMPENSATION; EXPENSES. (a) A director may not receive compensation for performing duties as a director.

(b) A director shall be reimbursed for actual reasonable expenses incurred in performing duties as a director. (Acts 77th Leg., R.S., Ch. 1344, Sec. 6(h).)

[Sections 8846.057-8846.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8846.101. GROUNDWATER CONSERVATION DISTRICT POWERS AND DUTIES. The district has the rights, powers, privileges, functions, and duties provided by the general law of this state, including Chapter 36, Water Code, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1344, Sec. 5(a) (part).)

[Sections 8846.102-8846.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8846.151. TAXES. To pay the district's maintenance and operating expenses, each year the district may impose an ad valorem tax at a rate not to exceed 10 cents for each $100 of assessed valuation if a majority of the voters:

(1) approved the authority to impose the tax at the confirmation election; or

(2) approve that authority at a separate election called for that purpose by the board. (Acts 77th Leg., R.S., Ch. 1344, Sec. 11(a).)

Sec. 8846.152. FEES. The district may:

(1) impose a fee on water exported from the district; and

(2) assess other fees as authorized by Chapter 36, Water Code. (Acts 77th Leg., R.S., Ch. 1344, Secs. 11(b), (c).) CHAPTER 8848. LONE WOLF GROUNDWATER CONSERVATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8848.001. DEFINITIONS Sec. 8848.002. NATURE OF DISTRICT Sec. 8848.003. FINDINGS OF PUBLIC USE AND BENEFIT Sec. 8848.004. DISTRICT TERRITORY

[Sections 8848.005-8848.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8848.051. COMPOSITION OF BOARD; TERMS Sec. 8848.052. ELECTION OF DIRECTORS Sec. 8848.053. ELECTION DATE Sec. 8848.054. ELIGIBILITY Sec. 8848.055. COMPENSATION

[Sections 8848.056-8848.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8848.101. GROUNDWATER CONSERVATION DISTRICT

POWERS AND DUTIES

[Sections 8848.102-8848.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8848.151. LIMITATION ON TAX RATE FOR DEBT

CHAPTER 8848. LONE WOLF GROUNDWATER CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8848.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Lone Wolf Groundwater Conservation District. (Acts 76th Leg., R.S., Ch. 1331, Sec. 3; Acts 77th Leg., R.S., Ch. 966, Sec. 3.0402; Acts 77th Leg., R.S., Ch. 1328, Sec. 2; New.)

Sec. 8848.002. NATURE OF DISTRICT. The district is a groundwater conservation district created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 76th Leg., R.S., Ch. 1331, Secs. 1(a) (part), (c).)

Sec. 8848.003. FINDINGS OF PUBLIC USE AND BENEFIT. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution. (Acts 76th Leg., R.S., Ch. 1331, Sec. 4.)

Sec. 8848.004. DISTRICT TERRITORY. The district's boundaries are coextensive with the boundaries of Mitchell County unless the district's territory has been modified under:

(1) Subchapter J, Chapter 36, Water Code; or

(2) other law. (Acts 76th Leg., R.S., Ch. 1331, Sec. 2(a) (part); New.)

[Sections 8848.005-8848.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8848.051. COMPOSITION OF BOARD; TERMS. (a) The district is governed by a board of five directors.

(b) Directors serve staggered four-year terms. (Acts 77th Leg., R.S., Ch. 966, Secs. 3.0404(a), (d); Acts 77th Leg., R.S., Ch. 1328, Secs. 4(a), (d).)

Sec. 8848.052. ELECTION OF DIRECTORS. (a) Directors are elected according to the commissioners precinct method as provided by this section.

(b) One director is elected by the voters of the entire district. One director is elected from each county commissioners precinct by the voters of that precinct.

(c) A person shall indicate on the application for a place on the ballot:

(1) the precinct that the person seeks to represent; or

(2) that the person seeks to represent the district at large.

(d) When the boundaries of the county commissioners precincts are changed, each director in office on the effective date of the change or elected to a term of office beginning on or after the effective date of the change serves in the precinct to which the director was elected for the entire term to which the director was elected, even though the change in boundaries places the person's residence outside the precinct for which the person was elected. (Acts 77th Leg., R.S., Ch. 966, Secs. 3.0406(a), (b), (d), (e); Acts 77th Leg., R.S., Ch. 1328, Secs. 6(a), (b), (d).)

Sec. 8848.053. ELECTION DATE. On the uniform election date in May of each even-numbered year, the appropriate number of directors shall be elected. (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0408(b); Acts 77th Leg., R.S., Ch. 1328, Sec. 8(b).)

Sec. 8848.054. ELIGIBILITY. (a) To be eligible to be a candidate for or to serve as director at large, a person must be a registered voter in the district.

(b) To be eligible to be a candidate for or to serve as director from a county commissioners precinct, a person must be a registered voter of that precinct, except as provided by Section 8848.052(d). (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0406(c); Acts 77th Leg., R.S., Ch. 1328, Sec. 6(c); New.)

Sec. 8848.055. COMPENSATION. A director is not entitled to fees of office. (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0405 (part); Acts 77th Leg., R.S., Ch. 1328, Sec. 5 (part).)

[Sections 8848.056-8848.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8848.101. GROUNDWATER CONSERVATION DISTRICT POWERS AND DUTIES. The district has the rights, powers, privileges, functions, and duties provided by the general law of this state, including Chapter 36, Water Code, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0403 (part); Acts 77th Leg., R.S., Ch. 1328, Sec. 3(a) (part).)

[Sections 8848.102-8848.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8848.151. LIMITATION ON TAX RATE FOR DEBT. The district may impose an ad valorem tax at a rate not to exceed 20 cents for each $100 of assessed valuation to pay any part of the bonds or notes issued by the district if a majority of the voters approve:

(1) the authority to impose the tax at the confirmation election; or

(2) that authority at a separate election called for that purpose by the board. (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0409; Acts 77th Leg., R.S., Ch. 1328, Sec. 9.) CHAPTER 8849. LOST PINES GROUNDWATER CONSERVATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8849.001. DEFINITIONS Sec. 8849.002. NATURE OF DISTRICT Sec. 8849.003. FINDINGS OF PUBLIC USE AND BENEFIT Sec. 8849.004. DISTRICT TERRITORY

[Sections 8849.005-8849.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8849.051. COMPOSITION OF BOARD; TERMS Sec. 8849.052. APPOINTMENT OF DIRECTORS Sec. 8849.053. BOARD VACANCY Sec. 8849.054. EXPENSES

[Sections 8849.055-8849.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES Sec. 8849.101. GROUNDWATER CONSERVATION DISTRICT

POWERS AND DUTIES Sec. 8849.102. AUTHORITY TO EXEMPT CERTAIN WELLS FROM

REGULATION Sec. 8849.103. GROUNDWATER WELLS UNDER JURISDICTION OF

RAILROAD COMMISSION Sec. 8849.104. MEMBERSHIP ON CENTRAL CARRIZO-WILCOX

COORDINATING COUNCIL Sec. 8849.105. MANAGEMENT PLAN Sec. 8849.106. REGIONAL COOPERATION

[Sections 8849.107-8849.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8849.151. PUMPING FEES Sec. 8849.152. TAXES PROHIBITED

CHAPTER 8849. LOST PINES GROUNDWATER CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8849.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Lost Pines Groundwater Conservation District. (Acts 76th Leg., R.S., Ch. 1331, Sec. 3; Acts 77th Leg., R.S., Ch. 966, Sec. 3.0502(1); Acts 77th Leg., R.S., Ch. 1323, Sec. 2(1); New.)

Sec. 8849.002. NATURE OF DISTRICT. The district is a groundwater conservation district created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 76th Leg., R.S., Ch. 1331, Secs. 1(a) (part), (c).)

Sec. 8849.003. FINDINGS OF PUBLIC USE AND BENEFIT. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution. (Acts 76th Leg., R.S., Ch. 1331, Sec. 4.)

Sec. 8849.004. DISTRICT TERRITORY. The district's boundaries are coextensive with the boundaries of Bastrop and Lee Counties unless the district's territory has been modified under:

(1) Subchapter J, Chapter 36, Water Code; or

(2) other law. (Acts 76th Leg., R.S., Ch. 1331, Sec. 2(a) (part); Acts 77th Leg., R.S., Ch. 966, Sec. 3.0503; Acts 77th Leg., R.S., Ch. 1323, Sec. 3; New.)

[Sections 8849.005-8849.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8849.051. COMPOSITION OF BOARD; TERMS. (a) The district is governed by a board of 10 directors.

(b) Directors serve staggered four-year terms. (Acts 77th Leg., R.S., Ch. 966, Secs. 3.0506(a), (f); Acts 77th Leg., R.S., Ch. 1323, Secs. 7(a), (f).)

Sec. 8849.052. APPOINTMENT OF DIRECTORS. (a) Five directors are appointed from Bastrop County by the county judge of Bastrop County and five directors are appointed from Lee County by the county judge of Lee County.

(b) Every two years after the initial appointment of directors, the appropriate number of directors shall be appointed. (Acts 77th Leg., R.S., Ch. 966, Secs. 3.0506(b), (e); Acts 77th Leg., R.S., Ch. 1323, Secs. 7(b), (e).)

Sec. 8849.053. BOARD VACANCY. If a vacancy occurs on the board, the board may appoint a director to serve the remainder of the term. (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0506(j); Acts 77th Leg., R.S., Ch. 1323, Sec. 7(j).)

Sec. 8849.054. EXPENSES. A director is entitled to reimbursement for actual reasonable expenses incurred in performing duties as a director. (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0506(k) (part); Acts 77th Leg., R.S., Ch. 1323, Sec. 7(k) (part).)

[Sections 8849.055-8849.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8849.101. GROUNDWATER CONSERVATION DISTRICT POWERS AND DUTIES. The district has the rights, powers, privileges, functions, and duties provided by the general law of this state, including Chapter 36, Water Code, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0504(a) (part); Acts 77th Leg., R.S., Ch. 1323, Sec. 4(a) (part).)

Sec. 8849.102. AUTHORITY TO EXEMPT CERTAIN WELLS FROM REGULATION. The district may adopt a rule exempting a well that is not capable of producing more than 50,000 gallons of groundwater a day from a permit requirement, a fee, or a restriction on production. (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0504(c); Acts 77th Leg., R.S., Ch. 1323, Sec. 4(e).)

Sec. 8849.103. GROUNDWATER WELLS UNDER JURISDICTION OF RAILROAD COMMISSION. (a) In this section:

(1) "Public utility" means any person, corporation, public utility, water supply or sewer service corporation, municipality, political subdivision, or agency operating, maintaining, or controlling facilities in this state for providing potable water service for compensation.

(2) "Railroad commission" means the Railroad Commission of Texas.

(b) A groundwater well drilled or operated in the district under a permit issued by the railroad commission is under the exclusive jurisdiction of the railroad commission and is exempt from regulation by the district.

(c) Groundwater produced in an amount authorized by a railroad commission permit may be used in or exported from the district without a permit from the district.

(d) To the extent groundwater production exceeds railroad commission authorization, the holder of the railroad commission permit:

(1) shall apply to the district for the appropriate permit for the excess production; and

(2) is subject to the applicable regulatory fees.

(e) Groundwater produced from a well under the jurisdiction of the railroad commission is generally exempt from water district fees. However, the district may impose a pumping fee or an export fee on groundwater produced from an otherwise exempt mine well that is used for municipal purposes or by a public utility. A fee imposed by the district under this subsection may not exceed the fee imposed on other groundwater producers in the district. (Acts 77th Leg., R.S., Ch. 966, Secs. 3.0502(2), 3.0505; Acts 77th Leg., R.S., Ch. 1323, Secs. 2(2), 5; New.)

Sec. 8849.104. MEMBERSHIP ON CENTRAL CARRIZO-WILCOX COORDINATING COUNCIL. The district is a member of the Central Carrizo-Wilcox Coordinating Council. (Acts 77th Leg., R.S., Ch. 1323, Sec. 10.)

Sec. 8849.105. MANAGEMENT PLAN. The district shall develop or contract to develop a district management plan under Section 36.1071, Water Code, and submit the plan to the Central Carrizo-Wilcox Coordinating Council to be included in the management plan developed by the council. (Acts 77th Leg., R.S., Ch. 1323, Sec. 11.)

Sec. 8849.106. REGIONAL COOPERATION. The district shall:

(1) adopt a management plan detailing proposed efforts of the district to cooperate with other groundwater conservation districts;

(2) participate as needed in coordination meetings with adjacent groundwater conservation districts that share one or more aquifers with the district;

(3) coordinate the collection of data with adjacent groundwater conservation districts in such a way as to achieve relative uniformity of data type and quality;

(4) provide groundwater level information to adjacent groundwater conservation districts;

(5) investigate any groundwater pollution to identify the pollution's source;

(6) notify adjacent groundwater conservation districts and all appropriate agencies of any groundwater pollution detected and the source of the pollution identified;

(7) provide to adjacent groundwater conservation districts annually an inventory of water wells in the district and an estimate of groundwater production in the district; and

(8) include adjacent groundwater conservation districts on mailing lists for district newsletters and information regarding seminars, public education events, news articles, and field days. (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0508.)

[Sections 8849.107-8849.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8849.151. PUMPING FEES. (a) The district may assess regulatory pumping fees for water produced in or exported from the district.

(b) The regulatory pumping fees the district assesses for water for crop or livestock production or other agricultural uses may not exceed 20 percent of the rate applied to water for municipal uses.

(c) Regulatory pumping fees based on the amount of water withdrawn from a well may not exceed:

(1) $1 for each acre-foot for water used to irrigate agricultural crops; or

(2) 17 cents for each thousand gallons for water used for any other purpose.

(d) Combined regulatory pumping fees for production and export of water may not exceed 17 cents for each thousand gallons for water used. (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0504(b) (part); Acts 77th Leg., R.S., Ch. 1323, Secs. 4(c) (part), (d).)

Sec. 8849.152. TAXES PROHIBITED. The district may not impose a tax. (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0504(b) (part); Acts 77th Leg., R.S., Ch. 1323, Sec. 4(c) (part).)

ARTICLE 2. CONFORMING AMENDMENTS

SECTION 2.01. Section 1, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, is amended to read as follows:

Sec. 1. The [Pursuant to authority granted by the provisions of Section 9 of Article IX of the Constitution of the State of Texas, Cuero Hospital District of] DeWitt Medical District [County, Texas, is hereby authorized to be created in DeWitt County, Texas, and as created] shall have the following boundaries:

BEGINNING at the most southerly corner of DeWitt County, Texas, on the north bank of the Fifteen Mile Colletto Creek;

THENCE, in a generally northwesterly direction up said north bank of said creek and its meanders to another corner of DeWitt County on the south line of the P. C. Ragsdale Survey, A-414;

THENCE, in an easterly direction in a straight line to the west corner of the James Kelly Survey, A-285, same being the south corner of the David Oaks Survey, A-374;

THENCE, in a northwesterly direction with the southwest line of said Oaks Survey to its southwest corner, same also being an interior corner of the John T. Tinsley League, A-455;

THENCE, in a northeasterly direction along the southeast line of said Tinsley League to its intersection with the centerline of the Twelve Mile Colletto Creek;

THENCE, in a generally northwesterly direction up the centerline of said creek with its meanders to its intersection with the northeast line of the G. H. Woods Survey, A-482;

THENCE, in a southeasterly direction along said northeast line of said Woods Survey to its northeast corner, same being on the south line of the W. H. Stubblefield Survey, A-425;

THENCE, continuing in a southeasterly direction along said south line of said Stubblefield Survey to its southeast corner;

THENCE, in a northerly direction along the east line of said StubbIefield Survey and continuing in the same direction along an east boundary line of the James Foster Survey, A-176, to an interior corner of said Foster Survey;

THENCE, in an easterly direction along a south line of said Foster Survey, same being a north line of the Otto Von Roeder Survey, to an east corner of said Foster Survey and an interior corner of said Von Roeder Survey;

THENCE, in a northerly direction along an east line of said Foster Survey to an interior corner of said Foster Survey;

THENCE, in an easterly direction along a south line of said Foster Survey to an interior corner of the James Kelly Survey, A-282;

THENCE, in a northerly direction along an east line of said Foster Survey, same being a west line of said Kelly Survey, to the most northerly west corner of said Kelly Survey on the south line of the Campbell Taylor Survey, A-459;

THENCE, in a westerly direction along said south line of said Taylor Survey to its southwest corner;

THENCE, in a northerly direction along the west line of said Taylor Survey to the most northerly east corner of said Foster Survey;

THENCE, in a northwesterly direction along the most northerly north line of said Foster Survey to its most northerly corner;

THENCE, in a northerly direction along the east line of the Indianola Railroad Company Survey Section No. 5, A-248, to its northeast corner;

THENCE, in a westerly direction along the most northerly north line of said Indianola Railroad Survey Section No. 5 to its most northerly northwest corner on the east line of the James C. Davis Survey, A-148;

THENCE, in a northerly direction along said east line of said Davis Survey to its northeast corner;

THENCE, in a westerly direction along the north line of said Davis Survey to the southeast corner of the Wiley W. Hunter Survey, A-216;

THENCE, in a northerly direction along the east line of said Hunter Survey to its northeast corner on the south line of the John S. Stump Survey, A-430;

THENCE, in a westerly direction along said south line of said Stump Survey to its southwest corner, same being the most southerly east corner of the W. S. Lyell Survey, A-311;

THENCE, in a westerly direction along the most southerly south line of said Lyell Survey to its most southerly southwest corner;

THENCE, in a northerly direction along the most westerly west line of said Lyell Survey to the most southerly east corner of the W. W. Hunter Survey;

THENCE, in a westerly direction along the most southerly south line of said W. W. Hunter Survey to its most westerly southwest corner, same being on the southeast line of the William Eastland Survey, A-174;

THENCE, in a northeasterly direction along said southeast line of said Eastland Survey to its northeast corner;

THENCE, in a northwesterly direction along said northeast line of said Eastland Survey and the northeast line of the N. Whitehead Survey, A-489, to the north corner of said Whitehead Survey;

THENCE, in a southwesterly direction along the northwest line of said Whitehead Survey to the south corner of the J. D. Morris Survey, same being a northeast corner of the John E. Ross Survey, A-403;

THENCE, in a northwesterly direction along the southwest lines of said Morris Survey, the Daniel E. Benton Survey, A-67, and the William Robertson Survey, A-401, and the northeast lines of said Ross Survey and the Isaac Baker Survey, A-89, to an intersection with the DeWitt-Gonzales County Line;

THENCE, in a northeasterly direction along said DeWitt-Gonzales County Line to its intersection with the east line of the Daniel Davis Survey, A-12 and the west line of the Simeon Bateman Survey, A-4;

THENCE, in a southeasterly direction along the east line of the said Davis Survey to its intersection with the centerline of the Guadalupe River;

THENCE, in a generally southerly direction downstream with said centerline of said Guadalupe River and its meanders to its intersection with the westerly projection of the northeast line of the John McCoy League, A-30;

THENCE, in an easterly direction with said projection of said northeast line of the McCoy League to the northwest corner of the said McCoy League;

THENCE, in an easterly direction along the north line of said McCoy League to its northeast corner, same being an interior corner of the J. D. Clements League, A-10;

THENCE, southerly along the east line of the said McCoy League and along a west line of the said Clements League to the northwest corner of the Mrs. 0. S. Brown 150 acres tract;

THENCE, in an easterly direction parallel to the south line of the said Clements League and along the northerly line of the Mrs. 0. S. Brown, Walter Voegel and G. S. Baylor tracts to the east line of the said Clements League and the west line of the James Swindle Survey, A-416;

THENCE, southerly along said west line of the Swindle Survey to its southwest corner;

THENCE, in an easterly direction along the south line of the said Swindle Survey to the northeast corner of the W. W. McCormick 185 acres tract;

THENCE, southerly along the east line of the said McCormick tract; to the southeast corner of said McCormick tract;

THENCE, westerly along the south line of the said McCormick tract to the northeast corner of a 100 acres tract (C. G. Huatt 100 acres tract) formerly owned by Dick Frels;

THENCE, southerly along the east line of said 100 acres tract to its southeast corner on the north line of the Joseph Edgar Survey, A-168;

THENCE, westerly along said north line of the Edgar Survey to the northeast corner of the J. B. Milligan 160 acres tract;

THENCE, in a southerly direction along the most easterly east line of said Milligan tract to the most northerly southeast corner of said tract;

THENCE, in a southwesterly direction along an east or southeast line of said Milligan tract to the most southerly southeast corner of said tract;

THENCE, in a westerly direction along the south line of said Milligan tract to its southwest corner on the west line of said Edgar Survey;

THENCE, southerly along said west line of the Edgar Survey to its southwest corner on the east line of the K. W. Barton Survey, A-3, and at the most northerly northwest corner of the Isham G. Belcher Survey, A-68;

THENCE, easterly along the north line of said Belcher Survey to its east or northeast corner in the south line of the S. R. Roberts Survey, A-400;

THENCE, southerly along the east line of said Belcher Survey to its southeast corner at a corner of the W. S. Townsend Survey, A-453;

THENCE, westerly along the south line of said Belcher Survey to the northeest corner of the Nicholas McNutt Survey, A-327;

THENCE, southerly along the east line of the said McNutt Survey and along the west line of the Benjamin Payne Survey, A-378, to the southwest corner of said Payne Survey at an interior corner of the S. A. and M. G. Railroad Survey No. 11, A-449;

THENCE, easterly along the south line of said Payne Survey and the north line of said S. A. and M. G. Railroad Survey to the most easterly northeast corner of said S. A. and M. G. Railroad Survey at an interior corner of the C. D. Mixon Survey, A-354;

THENCE, southerly or southwesterly along a west line of said Mixon Survey and along an east line of the said S. A. and M. G. Railroad Survey to the west corner of the said Mixon Survey and the north corner of the William Norvall Survey, A-371;

THENCE, easterly or southeasterly along the north line of said Norvall Survey, the south line of the said Mixon Survey, and the south line of the S. A. Rogers Survey, A-412 to the south corner of said Rogers Survey at an interior corner of the William S. Townsend Survey, A-457;

THENCE, northerly or northeasterly along the southeast line of said Rogers Survey to the north corner of said Townsend Survey;

THENCE, southeasterly along an east line of said Townsend Survey to the south corner of the Abednego Biddy Survey, A-63;

THENCE, easterly or northeasterly along the south line of said Biddy Survey to the west corner of the John Graham Survey, A-193;

THENCE, southeasterly along the west line of said Graham Survey to its south corner and an interior corner of said Townsend Survey;

THENCE, easterly or northeasterly along the southeast line of said Graham Survey to its east corner and the most easterly northeast corner of said Townsend Survey;

THENCE, southeasterly along the most easterly east line of said Townsend Survey to its most easterly corner and the south or southwest corner of the J. G. Swisher Survey, A-421;

THENCE, southwesterly along a south line of said Townsend Survey to the west corner of the Berry Doolittle Survey, A-154;

THENCE, southeasterly along the west line of said Doolittle Survey to its southwest corner on the north line of the T. & N. 0. Railroad Survey No. 1, A-550;

THENCE, northeasterly along said north line of the T. & N. 0. Railroad Survey No. 1 to the most northerly corner of said Survey No. 1;

THENCE, southeasterly along an east line of said Survey No. 1 and the west line of the M. H. Granberry Survey, A-208, to south corner of said Granberry Survey;

THENCE, northeasterly along the south line of said Granberry Survey to the west or northwest corner of the T. C. Fort Survey, A-185;

THENCE, southeasterly along the west line of said Fort Survey to its south or southwest corner on the north line of the J. W. Boothe Survey;

THENCE, southwesterly along the north line of said Boothe Survey to its west corner;

THENCE, southeasterly along the west line of said Boothe Survey and along the west line of the Jesse E. Nash Survey, A-368, to its south or southwest corner;

THENCE, easterly or northeasterly along the south line of said Nash Survey to the west or northwest corner of the Manuel Manchaca Survey, A-334;

THENCE, southeasterly along the west line of said Manchaca Survey and along the east line of the E. Escamea Survey, A-690, to the southeast corner of said Escamea Survey;

THENCE, easterly along the northeast line of the W. H. Crain Survey, A-637 (T. & N. 0. R. R. Survey #10) to the most northerly east corner of said Crain Survey on the north line of the T. J. Thigpen Survey, A-614;

THENCE, southwesterly along said north line of the Thigpen Survey to its west or northwest corner;

THENCE, southeasterly along the west line of said Thigpen Survey to an intermediate east corner of said W. H. Crain Survey;

THENCE, southerly along the east line of said Crain Survey to its southeast corner;

THENCE, westerly along the south line of said Crain Survey to the northeast corner of the T. & N. 0. Railroad Survey No. 11;

THENCE, southerly along the east line of said T. & N. 0. Survey No. 11 to its intersection with the DeWitt-Victoria County line;

THENCE, in a westerly or southwesterly direction along the said DeWitt-Victoria County line to the most southerly corner of DeWitt County on the north bank of the Fifteen Mile Colletto Creek, the PLACE OF BEGINNING.

[The Legislature hereby finds that the foregoing boundaries and field notes of said District form a closure, and, if any mistake is made in copying the field notes in the legislative process, such mistake shall not affect the organization, existence or validity of the District or its right to issue bonds or refunding bonds, and the right to assess, levy and collect taxes, or in any other manner affect the legality or operation of the District.]

SECTION 2.02. Section 2a, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965, is amended to read as follows:

Sec. 2a. The boundaries of the Muenster Hospital District are [may be changed so as to include the territory located in Cooke County, Texas, described below, and if such change in boundaries is effected, the District as enlarged shall assume and be obligated to pay all indebtedness of the District as the same exists prior to such expansion of boundaries within the taxing limit approved at the election for which provision is hereafter made, and the District shall continue to have the same duties and responsibilities, over its extended boundaries, as now imposed, except as modified by this Act. The territory which may be added to the District is described as follows:

[FIELD NOTES TO THE ADDITION TO MUENSTER HOSPITAL DISTRICT

[Being an irregular shaped district or area of land that is situated in the Southwest part of Cooke County, Texas, with the West and South boundary lines of said district being common with the West and South lines of said Cooke County and being more particularly described by bounds as follows:

["Beginning at the Southwest corner of Cooke County, Texas;

[Thence East, with the South line of said Cooke County to the intersection of said county line with the West line of the C. De Morse Survey, Abstract No. 305;

[Thence North, with the West line of said C. De Morse Survey to the intersection of said Survey line with the South boundary line of the H. Lindsley 51 acre tract of land;

[Thence East, with the South boundary line of said H. Lindsley 51 acre tract, passing the Southeast corner of said tract and continuing East to a point due South of the South or Southeast corner of the W. E. Fortenberry 67.5 acre tract of land;

[Thence North, along a line, passing the South or Southeast corner of said Fortenberry 67.5 acre tract and continuing North, now with the East line of said 67.5 acre tract to its Northeast corner on the North line of said C. De Morse Survey, common with the South line of the W. M. Phelps Survey, Abstract No. 821;

[Thence East, with the South line of said W. M. Phelps Survey to its Southeast corner being common with the Southwest corner of the J. Harrison Survey, Abstract No. 125;

[Thence North, with the West line of said J. Harrison Survey, Abstract No. 125, passing the Northwest corner of said Harrison Survey and continuing North to a point in the South line of the P. P. Cady Survey, Abstract No. 1239;

[Thence East, with the South line of said P. P. Cady Survey, passing the Southeast corner of said Survey and continuing East to the center of the Sam Seagraves Road;

[Thence North, with the center of said Sam Seagraves Road to a point in the South line of the J. W. Dihill Survey, Abstract No. 1049;

[Thence West, with the South line of said Dihill Survey being common with the North lines of the D. M. Gray Survey, Abstract No. 415 and the M. Sowder Survey, Abstract No. 1579, to the Northwest corner of said Sowder Survey;

[Thence South, with the West line of said M. Sowder Survey, to the Northeast corner of the P. P. Cady Survey, Abstract No. 1239;

[Thence West, with the North lines of said P. P. Cady Survey and W. M. Phelps Survey, Abstract No. 821, to the most Northerly-Northwest corner of said Phelps Survey on the East line of the W. F. Evans Survey, Abstract No. 347;

[Thence North, with the East line of said W. F. Evans Survey, to the Southerly-Northeast corner of said Survey, being common with an inner corner to the P. O. Pittman Survey, Abstract No. 1211;

[Thence West, continuing with the East line of said W. F. Evans Survey, in a jog to the West, to the inner corner to said Evans Survey, being common with the Westerly-Southwest corner of said P. O. Pittman Survey, Abstract No. 1211;

[Thence North, continuing with the East line of said W. F. Evans Survey, to its Northerly-Northeast corner;

[Thence West, with the North line of said W. F. Evans Survey, to its Northwest corner;

[Thence South, with the West line of said W. F. Evans Survey, to the most Northerly-Northeast corner of the S. A. & M. G. R. R. Co. Survey, Abstract No. 1218;

[Thence West, with the North line of said S. A. & M. G. R. R. Co. Survey, to the Northwest corner of said Survey being common with the Southwest corner of the I & G. N. R. R. Co. Survey, Abstract No. 1265;

[Thence North, with the West lines of the I & G. N. R. R. Co. Survey, Abstract No. 1265, the I. W. Emory Survey, Abstract No. 1700 and the J. W. Francis Survey, Abstract No. 375, to the Northwest corner of said J. W. Francis Survey, common with the Northeast corner of the S. P. R. R. Co. Survey, Abstract No. 983 on the South line of the L. Finley Survey, Abstract No. 378;

[Thence East, with the division line between said L. Finley and J. W. Francis Surveys, to the Southeast corner of said L. Finley Survey;

[Thence North, with the East line of said L. Finley Survey to its Northeast corner on the South line of the L. A. English Survey, Abstract No. 1568;

[Thence West, with the South line of said L. A. English Survey, common with the South boundary line of the F. W. Fishcer tract of land, to the Southwest corner of said Fishcer tract;

[Thence North, with the West boundary line of said F. W. Fishcer tract of land, to a point in the center of Farm to Market Highway No. 922;

[Thence East, with the center of said Farm to Market Highway No. 922, to the Northeast corner of the J. Hagerty Survey, Abstract No. 508;

[Thence South, with the East line of said J. Hagerty Survey, to its Southeast corner on the North line of the E. Southward Survey, Abstract No. 927;

[Thence West, with the division line between said J. Hagerty and E. Southward Surveys, to the Northwest corner of said E. Southward Survey;

[Thence South, with the West line of said E. Southward Survey to its Southwest corner;

[Thence East, with the South line of said E. Southward Survey, to a point in the center of the Sam Seagraves Road;

[Thence North, with the center of said Sam Seagraves Road, to the intersection of said Road with the center of Farm to Market Highway No. 922;

[Thence East, with the center of said Farm to Market Highway No. 922, to the intersection of said Highway with the center of the Arthur Reese Road;

[Thence North, with the center of said Arthur Reese Road, to the intersection of said Road with the center of Farm to Market Highway No. 1630;

[Thence in a Northeasterly direction, with the center of said Farm to Market Highway No. 1630 to the intersection of said Highway with the center of the J. T. Biffle Road;

[Thence North, with the meandering of said J. T. Biffle Road to the Southwest corner of the H. Felderhoff 160 acre tract that is situated in the W. Thomas Survey, Abstract No. 1025 and continuing North, now with the West boundary line of said H. Felderhoff 160 acre tract to the Northwest corner of said 160 acre tract on the North line of said W. Thomas Survey;

[Thence East, with the North line of said W. Thomas Survey to its Northeast corner on the West line of the R. E. Shannon Survey, Abstract No. 963;

[Thence North, with the West line of said R. E. Shannon Survey to its Northwest corner;

[Thence East, with the North line of said R. E. Shannon Survey to its Northeast corner, being common with the Southwest corner of the A. H. Van Slyke Survey, Abstract No. 1076;

[Thence North, with the West line of said A. H. Van Slyke Survey to the center of the abandoned M. K. & T. R. R. Co. Right-of-way;

[Thence in a Westerly direction with the center of the abandoned M. K. & T. R. R. Co. Right-of-way to the West line of the A. J. Miller Survey, Abstract No. 635;

[Thence North, with the West line of said A. J. Miller Survey to its Northwest corner on the South line of the M. University Survey, Abstract No. 619;

[Thence West, with the South line of said M. University Survey to its Southwest corner on the East line of the John Barnett Survey, Abstract No. 42;

[Thence North, with the East line of said John Barnett Survey to its Northeast corner;

[Thence West with the North line of said Barnett Survey, 4043 varas to the Northwest corner of Sub. No. 5 made by Gunter and Welleslet as shown by plat in the County Clerk's Office of Cooke County, Texas;

[Thence South along the West boundary lines of Sub's Nos. 5, 13, and 21 made by said Gunter and Welleslet, 3315 varas to the Southwest corner of said Sub. No. 21 on the South line of said John Barnett Survey;

[Thence West on the South line of said Barnett Survey, 404 varas to the Northwest corner of 153 acre tract out of the Wm. Slingland Survey, Abstract No. 897 conveyed to John Knauff by deed recorded in Book 76 page 328 of the Cooke County Deed Records, (now owned by Wm. Henschied);

[Thence South 1200 varas to the Southwest corner of said Knauff (or Henschied) 153 acre tract, to the corner on the East line of the Reuben R. Brown Survey, and West line of the Wm. Slingland Survey;

[Thence West through and across said Reuben R. Brown Survey, 1900 varas to the West line of said Survey and the East line of the D. H. Campbell Survey, Abstract No. 196;

[Thence South with the West line of the Reuben R. Brown Survey, 370 varas to the Northwest corner of the Cyrus Underwood Survey, Abstract No. 1072;

[Thence South with its West line, passing its Southwest corner and continue South to the Southeast corner of the Cooke County School Land Survey, Abstract No. 1188, which is also an inner corner of the J. L. Townsley Survey, Abstract No. 1551;

[Thence West to the Northwest corner of said Townsley Survey, on the South line of said Cooke County School Land Survey, Abstract No. 1188;

[Thence South to the Southwest corner of said Townsley Survey, on the North line of the BBB & CRR Co. Survey, Abstract No. 146;

[Thence East with the Northbound line of said BBB & CRR Co. Survey, to a point 950 varas East of the Northwest corner of same;

[Thence South 1900 varas to the South line of said BBB & CRR Co. Survey to the center of the Gainesville and Forestburg Road same being Farm to Market Highway No. 1630;

[Thence Westerly with said road to the Northeast corner of the R. L. Hickox 100 acre tract out of the Northwest corner of the Thomas Toby Survey, Abstract No. 1062;

[Thence South with the East line of said Hickox 100 acre tract, continuing South with the East line of the B. J. Mitchell 208 acre tract out of said Toby Survey to the South line of said Toby Survey;

[Thence West with the South line of said Toby Survey to the Northeast corner of the BBB & CRR Co. Survey, Abstract No. 147;

[Thence South with the East line of said BBB & CRR Co. Survey to the Southeast corner of the B. J. Mitchell 206 acre tract out of said BBB & CRR Co. Survey;

[Thence West with the South boundary line of said Mitchell 206 acre tract to the West line of said BBB & CRR Co. Survey, Abstract No. 147;

[Thence South with the West line of said BBB & CRR Co. Survey to the Southeast corner of the John Stump Survey, Abstract No. 1497;

[Thence West with the South line of said Stump Survey, continuing West with the South line of the A. Stutzman Survey, Abstract No. 1444 to the Southwest corner of the said Stutzman Survey, same being the Southeast corner of the BBB & CRR Co. Survey, Abstract No. 150;

[Thence West with the South line of said BBB & CRR Co. Survey, Abstract No. 150 to the Northwest corner of the J. M. Williamson Survey, Abstract No. 1107, said corner being a corner of the Felty 282 acre tract;

[Thence in a Southwesterly direction following the West line of the said 282 acre tract conveyed by J. A. Felty to R. M. Felty by deed recorded in Book 118, page 343 of Cooke County Deed Records to Williams Creek;

[Thence down Williams Creek to the South line of Charles Lockhart Survey, Abstract No. 606;

[Thence West with the South line of said Lockhart Survey to its Southwest corner;

[Thence North with the West line of said Lockhart Survey to its Northwest corner on the South line of the J. J. Arocha Survey, Abstract No. 22;

[Thence West on the South line of said Arocha Survey to its Southwest corner;

[Thence North with the West line of said Arocha Survey to its Northwest corner on the South line of the BBB & CRR Co. Survey, Abstract No. 150;

[Thence West with the South line of said BBB & CRR Co. Survey, passing its Southwest corner and continuing West with the South line of the J. M. Culp Survey, Abstract No. 1350 to the Southwest corner of said Culp Survey;

[Thence North with the West line of said Culp Survey to a point due East of the Southeast corner of the J. A. Moore Survey, Abstract No. 759;

[Thence West passing the Southeast corner of said Moore Survey, continuing West with the South line of said Moore Survey to the Northwest corner of I. & G. N. R. R. Co. Survey, Abstract No. 1264;

[Thence South to its Southwest corner, which is common with the Southeast corner of the D. W. Donnel Survey, Abstract No. 1477;

[Thence West with the South line of said Donnel Survey to its Southwest corner on the East line of the S. P. R. R. Co. Survey, Abstract No. 984;

[Thence Southeasterly with the Northeast line of said S. P. R. R. Co. Survey, Abstract No. 984 to the Southeast corner of said Survey;

[Thence in a Southwesterly direction with the South line of said SPRR Co. Survey to the extreme Southeast corner of the T. B. Settle tract out of said SPRR Co. Survey;

[Thence in a Northwesterly direction with the East line of the Settles tract to the Southern Northeast corner of said tract;

[Thence in a Southwesterly direction with Settles line to his ell corner, passing this corner and continuing Southwesterly to the Southwest line of said SPRR Co. Survey, which is also the Northeast line of the Jacob Wilcox Survey, Abstract No. 1162;

[Thence in a Northwesterly direction with said SPRR Co. Survey Southwestern line to the Southeast corner of the L. A. Wineblood 80 acre tract out of the Jacob Wilcox Survey, Abstract No. 1162;

[Thence Southwesterly with the South boundary line of said Wineblood 80 acres to its Southwest corner, said corner being the Southeast corner of the T. B. Settles 80 acre tract out of the said Jacob Wilcox Survey;

[Thence Northwesterly with the East boundary line of said Settles 80 acre tract to the South boundary line of the E. M. Roberson 150 acre tract out of the said Jacob Wilcox Survey;

[Thence Southwesterly with the South boundary line of said Roberson 150 acres to its Southwest corner on the Southwestern line of said Wilcox Survey;

[Thence Northwesterly with said Southwestern line to the Northwest corner of the said Wilcox Survey, an ell corner of the John Deck Survey, Abstract No. 298, said corner being on the Southeast boundary line of the Huchton 271 acres out of said Deck Survey;

[Thence Southwesterly with said Southeastern boundary line of said Huchton tract to the county line between Cooke and Montague Counties;

[Thence South, with the county line between Cooke and Montague Counties to the Southwest corner of said Cooke County, to the Place of Beginning."

[In the event the change in boundaries of said District is approved at an election as hereinafter provided, the boundaries of the Muenster Hospital District shall be] as follows:

FIELD NOTES TO THE MUENSTER HOSPITAL DISTRICT (EXPANDED)

Being an irregular shaped district or area of land that is situated in the West part of Cooke County, Texas, with the South, West and North boundaries being common with the South, West and North lines of said Cooke County and being more particularly described by bounds as follows:

Beginning at the Southwest corner of Cooke County, Texas;

Thence North, with the county line between Cooke and Montague Counties to the Northwest corner of said Cooke County on the South cut bank of Red River, common with the boundary line between Texas and Oklahoma;

Thence East and Northeast with the meanderings of Red River to a point due North of the Northeast corner of the W. H. Nordman Survey, Abstract No. 1306;

Thence South to said corner of the Nordman Survey;

Thence South with the East line of said Nordman Survey to the Northwest corner of the BBB & CRR Co. Survey, Abstract No. 139;

Thence East with the North line of said BBB & CRR Co. Survey to its Northeast corner;

Thence South with the East line of said BBB & CRR Co. Survey and West boundary line of a 260 acre tract out of the H. T. & BRR Co. Survey, Abstract No. 498 conveyed to T. A. Galbrath by J. A. Cunningham by deed dated August 18, 1910 and recorded in Volume 105, page 534, Cooke County Deed Records, to the most Southerly Southwest corner of said Galbrath 260 acre tract;

Thence East with the South line of said Galbrath 260 acre tract to its Southeast corner on the West boundary line of the J. D. Burch Survey, Abstract No. 1723;

Thence South with the West line of said Burch Survey to the Southwest corner thereof;

Thence East with the South line of said Burch Survey to the Northwest corner of the Lewis Knight Survey, Abstract No. 548;

Thence South with the West line of said Knight Survey to its Southwest corner;

Thence East with the South line of said Knight Survey to the Northwest corner of the J. D. Sharum Survey, Abstract No. 960;

Thence South with the West line of said Sharum Survey to its Southwest corner;

Thence East to the Northeast corner of the Jacob Long Survey, Abstract No. 583;

Thence South with the East line of said Jacob Long Survey, Abstract No. 583, and the West line of the Jacob Long Survey, Abstract No. 582 to the Southwest corner of said Jacob Long Survey, Abstract No. 582;

Thence East and South with the boundary line to the Southeast corner of said Jacob Long Survey, Abstract No. 582, this being on the West line of D. Martin Survey, Abstract No. 653;

Thence South and East with this boundary line of the said Martin Survey to the Northwest corner of the I. N. Brookfield Survey, Abstract No. 1714;

Thence East with the North line of said Brookfield Survey to the North Northeast corner of said Brookfield Survey on the West line of the Wm. Martin Survey, Abstract No. 686;

Thence South to the Southwest corner of said Wm. Martin Survey;

Thence East with the South line of said Martin Survey to its Southeast corner on the North line of the J. E. Gilliam Survey, Abstract No. 1486, same being an ell corner of said Gilliam Survey;

Thence North to the North Northwest corner of said Gilliam Survey;

Thence East to the Northeast corner of said Gilliam Survey, which is also the Northwest corner of the A. C. Miller Survey, Abstract No. 1717, continuing East with the North line of said Miller Survey to its Northeast corner on the West line of the Hiram Sadler Survey, Abstract No. 901;

Thence North with the West line of said Sadler Survey to its Northwest corner;

Thence East with the North line of said Sadler Survey to the Northeast corner of the C. E. Marshall 100 acre tract out of the Northwest corner of said Sadler Survey;

Thence South with the East line of said 100 acre tract to the Northeast corner of the C. E. Marshall 435 acre tract out of said Sadler Survey;

Thence continuing South with the East line of said 435 acre tract to an inner corner thereof;

Thence East to the Southern Northeast corner of said 435 acre tract;

Thence South with the East line of the 435 acre tract to its Southeast corner;

Thence West with the South line of said 435 acres to the Northeast corner of Lot No. 32 out of said Sadler Survey, which is also the Northwest corner of Lot No. 33 out of said Survey;

Thence South with the West line of said Lot No. 33 to its Southwest corner on the North line of Lot No. 29 out of said Survey;

Thence East with the North line of Lot No. 29 to its Northeast Corner, which is also the Northwest corner of Lot No. 28;

Thence South with the West lines of Lots Nos. 28, 13 and 8 to the Southwest corner of Lot No. 8 on the South line of said Sadler Survey;

Thence East with the South line of Lot No. 8, passing its Southeast corner, which is also the Southwest corner of Lot No. 7 out of said Sadler Survey, continuing East with the South line of said Lot No. 7, to the Northeast corner of the SA & MGRR Co. Survey, Abstract No. 974, on the South line of said Sadler Survey;

Thence South with the East line of said SA & MGRR Co. Survey to its extreme Southeast corner on the East line of the B. C. Bagby Survey, Abstract No. 82;

Thence South 10 degrees East with the East line of said Bagby Survey to its Southeast corner, which corner is also the North Northeast corner of the R. F. Millard Survey, Abstract No. 643 and being common with the Northeast corner of the W. L. Parker 155 acre tract;

Thence South to the ell corner of said Millard Survey, on the East boundary line of said Parker 155 acre tract;

Thence continuing South with the East line of said 155 acre tract to its Southeast corner;

Thence in a Southwesterly direction with the South line of said 155 acre tract to the Northeast corner of the M. Charo Survey, Abstract No. 214;

Thence in a Southeasterly direction with the East line of said Charo Survey to its Southeast corner, which is also the Northeast corner of the P. Fleming Survey, Abstract No. 386;

Thence in a Southwesterly direction with the North line of said Fleming Survey to its Northwest corner on the East line of the T. R. Gossett Survey, Abstract No. 416;

Thence North with the East line of said Gossett Survey to the Northeast corner of the 105 acre tract sold by W. Kemplin to Tony Voth, by deed recorded in Book 325, page 556 of Cooke County Deed Records;

Thence West with the North line of said 105 acre tract to its Northwest corner on the West line of said Gossett Survey;

Thence South with the West line of said Gossett Survey to its Southwest corner, said corner being the Northwest corner of the O. F. Leverett Survey, Abstract No. 563, and the Northeast corner of the Kuykendall Survey, Abstract No. 560, continuing South with the East line of said Kuykendall Survey to the Northeast corner of the 100 acre tract out of said Kuykendall Survey conveyed by J. C. Hemphill and wife to George E. Hemphill by deed recorded in Book 66, page 113 of Cooke County Deed Records, (which said 100 acres is now owned by Mike Fuhrmann);

Thence West with the North line of said 100 acre tract to the Northwest corner of said 100 acres, same being the Northeast corner of the 83 acres conveyed by Christine Roewe to Jos. Fleitman, by deed recorded in Book 254, page 495 of the Cooke County Deed Records;

Thence South with the West line of said Fuhrmann 100 acres to its Southwest corner on the South line of said Kuykendall Survey;

Thence West with the South line of said Kuykendall Survey to the Northwest corner of the J. B. Trenary Survey, Abstract No. 1043;

Thence South with the West line of said Trenary Survey, continuing South with the West line of the A. Smith Survey, Abstract No. 903 to its Southwest corner;

Thence South to the Southwest corner of 218.32 acre tract out of C. Jessup Survey, Abstract No. 522, same being that conveyed to Ray Kupper from W. H. Campbell, recorded in Volume 443, page 570 of Cooke County Deed Records;

Thence due East across the C. Jessup Survey, Abstract No. 522 to the West boundary line of M. Alexander Survey, Abstract No. 6;

Thence South with the West line of said Alexander Survey to its Southwest corner which is also the Southeast corner of the J. Y. Wadlington Survey, Abstract No. 1282;

Thence West with the South line of said Wadlington Survey to the Northeast boundary line of the H. Jennings Survey, Abstract No. 531;

Thence Southeasterly with said Northeast line of said H. Jennings Survey to its Southeast corner;

Thence West on the North line of the A. Van Slyke Survey, Abstract No. 1076, continuing West with the North line of the A. Van Slyke Survey, Abstract No. 1075 and the North line of the Marshall University Survey, Abstract No. 620 to the Southwest corner of said H. Jennings Survey, said corner being also the Southeast corner of the J. Jennings Survey, Abstract No. 530;

Thence North 45 degrees West 1967 varas to the Northwest corner of the J. J. Tomlinson Survey, Abstract No. 1009, said corner being the Northeast corner of the G. E. N. Ball Survey, Abstract No. 1649;

Thence South 45 degrees West with the North line of said Ball Survey to the Southeast corner of the H. Ritchey Survey, Abstract No. 845, said corner being the Southwest corner of the William Thomas Survey, Abstract No. 1024;

Thence North 45 degrees West with the West line of said Thomas Survey to its Northwest corner, said corner being due East of the Southeast corner of the O. F. Leverett Survey, Abstract No. 607 and the Northeast corner of the John Barnett Survey, Abstract No. 42;

Thence due West to the Northeast corner of the John Barnett Survey, Abstract No. 42;

Thence South, with the East line of said John Barnett Survey to the Southwest corner of the M. University Survey, Abstract No. 619;

Thence East, with the South line of said M. University Survey, to the Northwest corner of the A. J. Miller Survey, Abstract No. 635;

Thence South, with the West line of said A. J. Miller Survey to the center of the abandoned M. K. & T. R. R. Co. Right-of-way;

Thence in an Easterly direction with the center of the abandoned M. K. & T. R. R. Co. Right-of-way, to the West line of the A. H. Van Slyke Survey, Abstract No. 1076;

Thence South, with the West line of said A. H. Van Slyke Survey to its Southwest corner, being common with the Northeast corner of the R. E. Shannon Survey, Abstract No. 963;

Thence West, with the North line of said R. E. Shannon Survey to its Northwest corner;

Thence South, with the West line of said R. E. Shannon Survey to the Northeast corner of the W. Thomas Survey, Abstract No. 1025;

Thence West, with the North line of said W. Thomas Survey, common with the North boundary line of the H. Felderhoff 160 acre tract of land, to the Northwest corner of said 160 acre tract;

Thence South, with the West line of said H. Felderhoff 160 acre tract to its Southwest corner and continuing South, now with the meandering of the center of the J. T. Biffle Road to the intersection of said road with the center of Farm to Market Highway No. 1630;

Thence Southeasterly, with the center of said Farm to Market Highway No. 1630, to the intersection of said Highway with the center of the Arthur Reese Road;

Thence South, with the center of the Arthur Reese Road to the intersection of said Road with the center of Farm to Market Highway No. 922;

Thence West, with the center of said Farm to Market Highway No. 922, to the intersection of said Highway with the center of the Sam Seagraves Road;

Thence South, with the center of said Sam Seagraves Road, to the Southeast corner of the E. Southward Survey, Abstract No. 927;

Thence West, with the South line of said E. Southward Survey to its Southwest corner;

Thence North, with the West line of said E. Southward Survey to its Northwest corner on the South line of the J. Hagerty Survey, Abstract No. 508;

Thence East, with the South line of said J. Hagerty Survey to its Southeast corner;

Thence North, with the East line of said J. Hagerty Survey, to a point in the center of Farm to Market Highway No. 922;

Thence West, with the center of Farm to Market Highway No. 922, to the Northwest corner of the F. W. Fishcer tract of land;

Thence South, with the West boundary line of said F. W. Fishcer tract of land to its Southwest corner on the South line of the L. A. English Survey, Abstract No. 1568;

Thence East, with the South line of said L. A. English Survey, to the Northeast corner of the L. Finley Survey, Abstract No. 378;

Thence South, with the East line of said L. Finley Survey to its Southeast corner on the North line of the J. W. Francis Survey, Abstract No. 375;

Thence West, with the North line of said J. W. Francis Survey to its Northwest corner, being common with the Northeast corner of the S. P. R. R. Co. Survey, Abstract No. 983;

Thence South, with the East lines of said S. P. R. R. Co. and M. Vance Surveys, Abstract No. 1077, to the Southwest corner of the I. & G. N. R. R. Co. Survey, Abstract No. 1265;

Thence East, with the South line of said I. & G. N. R. R. Co. Survey, Abstract No. 1265, to its Southeast corner on the West line of the W. F. Evans Survey, Abstract No. 347;

Thence North, with the West line of said W. F. Evans Survey to its Northwest corner;

Thence East, with the North line of said W. F. Evans Survey to its Northeast corner;

Thence South, with the East line of said W. F. Evans Survey to an inner corner to said Survey, being common with the most Westerly Southwest corner of the P. O. Pittman Survey, Abstract No. 1211;

Thence East, with the division line between said W. F. Evans and P. O. Pittman Surveys, to an inner corner of said Pittman Survey;

Thence South, continuing with the South line of said P. O. Pittman Survey, in a jog to the South, to the most Northerly-Northwest corner of the W. M. Phelps Survey, Abstract No. 821;

Thence East, with the North lines of the W. M. Phelps and P. P. Cady Surveys, to the Northeast corner of said P. P. Cady Survey, Abstract No. 1239, on the West line of the M. Sowder Survey, Abstract No. 1579;

Thence North, with the West line of said M. Sowder Survey to its Northwest corner;

Thence East, with the North line of said M. Sowder Survey, to a point in the center of the Sam Seagraves Road;

Thence South, with the center of the Sam Seagraves Road, to a point due East of the Southeast corner of the P. P. Cady Survey, Abstract No. 1239;

Thence West, along a line crossing the M. Sowder Survey, Abstract No. 1579, passing the Southeast corner of said P. P. Cady Survey and continuing West, now with the South line of said Cady Survey, to the most Easterly-Northeast corner of the W. M. Phelps Survey, Abstract No. 821;

Thence South, with the East line of said W. M. Phelps Survey to its Southeast corner on the North line of the C. De Morse Survey, Abstract No. 305;

Thence West, with the North line of said C. De Morse Survey, to the Northeast corner of the W. E. Fortenberry 67.5 acre tract of land;

Thence South, with the East boundary line of said W. E. Fortenberry 67.5 acre tract and continuing South to a point due East of the Southeast corner of the H. Lindsley 51 acre tract of land;

Thence West, passing the Southeast corner of said H. Lindsley 51 acre tract of land and continuing West, now with the South line of said 51 acre tract to its intersection with the West line of the C. De Morse Survey, Abstract No. 305;

Thence South, with the West line of said C. De Morse Survey, to the intersection of said survey line with the county line between Cooke and Denton Counties;

Thence West, with said county line between Cooke and Denton Counties, passing the Northwest corner of said Denton County and continuing West, now with the county line between Cooke and Wise Counties to the Southwest corner of said Cooke County, to the Place of Beginning.

[The change in the boundaries of the Muenster Hospital District, as herein permitted, shall not be effective unless and until such change is approved by a majority of the qualified property taxpaying electors residing within the boundaries of the area permitted to be annexed and by a majority of the qualified property taxpaying electors residing within the boundaries of the District as defined in Section 1(b) of the Act, voting at an election called for that purpose. The election shall be called by the Board of Directors of the District and shall be held not less than thirty (30) nor more than sixty (60) days from the date of the order calling such election. The order calling the election shall specify the time and places of holding the same, the form of the ballot and name the presiding and alternate judges for each voting place. Notice of the election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in the two areas in which the election is to be held, once a week for two consecutive weeks, the first publication to appear at least fourteen (14) days prior to the date set for the election. At the election there shall be submitted the proposition of whether the boundaries of the District shall be expanded and shall all taxable property situated within the expanded boundaries of the District be subject to the levy of annual taxes at a rate not to exceed seventy-five cents (75¢) on each one hundred dollar valuation of taxable property for the purpose of meeting the requirements of the District's bonds, and for the care of indigents. The ballots shall be printed to provide for voting for or against the proposition:

['The expansion of the boundaries of the Muenster Hospital District and the levy of a tax not to exceed seventy-five cents (75¢) on the one hundred dollar valuation of all taxable property within the expanded boundaries of the District.'

[As a result of recent court decisions relating to elections, the Legislature hereby recognized there is some confusion as to the proper qualifications of electors who may participate in certain types of elections. It is therefore expressly provided that the Board of Directors in calling any election required to be held under the provisions of this Act may provide that all qualified electors, including those who own taxable property which has been duly rendered for taxation should be permitted to vote at the election being called, by reason of the aforesaid court decisions; provided, however, in the order calling the election, provision is made whereby the ballots of the resident qualified property taxpaying electors who own taxable property which has been duly rendered for taxation can be tabulated and counted separately from the ballots of the other qualified electors, and in any election so called, a majority vote of the resident qualified property taxpaying voters who own taxable property which has been duly rendered for taxation and a majority vote of all qualified electors, including those who own taxable property which has been duly rendered for taxation, shall be required to sustain the proposition.]

SECTION 2.03. Section 1, Chapter 95, Acts of the 56th Legislature, Regular Session, 1959, is amended to read as follows:

Sec. 1. The [There is hereby created and established within the State of Texas in addition to the districts into which the state has heretofore been divided in the form and manner hereinafter provided, a Conservation and Reclamation District to be known as] Lavaca County Flood Control District Number 3 consists [, hereinafter called the District, and consisting] of that part of the State of Texas, all within the boundaries of the County of Lavaca, comprehended within the following field notes, to-wit:

BEGINNING at a point on the East side of the Lavaca River about one mile up said river from the City of Hallettsville where the league line between the J. Hallett and Luke Presnal Leagues joins said river;

THENCE in an easterly direction along said league line to the point where said line intersects with F.M. Road No. 537, being the Hallettsville to Breslau F.M. Road;

THENCE along said F.M. Road No. 537 in a northerly direction to a road; said road being located immediately S. of Campbell Branch;

THENCE along said road in an easterly direction to its intersection with U. S. Highway No. 77, being the Hallettsville to Schulenburg Highway;

THENCE along said Highway No. 77 in a southerly direction to the N.W. corner of the H. C. Randow property;

THENCE along Randow's property in an easterly direction and continuing along the north property line of the Joe Pavlu tract to a point being the N.E. corner of the Pavlu tract;

THENCE in a southerly direction along the E. line of the Pavlu tract, also being the Joe Leopold west boundary line and following said line to a road immediately on the west side of the Catholic Cemetery;

THENCE along said road in a southerly direction to a point where such road intersects with the "cemetery road";

THENCE along said cemetery road in a westerly direction to the Jim Najvar property;

THENCE in a southerly direction along the east boundary line of the Najvar property to U. S. Highway No. 90A;

THENCE beginning from U. S. Highway No. 90A and running in a southerly direction along F.M. Road No. 530 (presently known as the F.M. Road No. 530 By-pass) to a point where such by-pass intersects with the present F.M. Road No. 530 (being the Hallettsville to Vienna F.M. Road);

THENCE beginning at a point on the west side of F.M. Road No. 530 and running in a westerly direction along the S. boundary line of the Anna Treptow Estate tract and continuing along the S. boundary line of the Louis Menking tract to the E. A. Turk tract;

THENCE along the said Turk tract in a southerly direction to the Lavaca River;

THENCE up said river to the Poor Farm Bridge;

THENCE southerly and in a westerly direction along the boundary line of the Emil Marek tract of land:

THENCE along the S. boundary line of the Rud. Bujnoch tract in a westerly direction to U. S. Highway No. 77 (being the Hallettsville to Victoria Highway);

THENCE along said highway in a northerly direction to the T. & N. O. Railroad crossing;

THENCE in a westerly direction along the N. boundary line of the T. & N. O. Railroad right-of-way to the H. O. Von Rosenberg tract;

THENCE in a northerly direction along the East boundary line of the H. O. Von Rosenberg tract to U. S. Highway No. 77A (being the Hallettsville to Yoakum Highway);

THENCE beginning at a point on the N. side of U. S. Highway No. 77A and running in a northerly direction along the east line of the A. Schubert tract and continuing to the I. Rheinstrom tract;

THENCE along the west of the Rheinstrom tract to a creek also being the division line between the Rheinstrom and Alphonse Steffek tracts;

THENCE along said creek in an easterly direction to the Lavaca River.

[Such District shall be a governmental agency and body politic and corporate, with the powers of government and with the authority to exercise the rights, privileges, and functions hereinafter specified, the creation and establishment of such District being essential to the accomplishment of the purposes of Section 59 of Article XVI of the Constitution of this State, as amended, including the control, storing, preservation, and distribution of the storm and floodwaters, and the waters of the rivers and streams in the District and their tributaries, for domestic, municipal, flood control, irrigation, and other useful purposes, the reclamation and drainage of the overflow land within the District, the conservation of forests, and to aid in the protection of navigation on the navigable waters by regulating the flood and storm waters that flow into said navigable streams.]

SECTION 2.04. Section 1, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, is amended to read as follows:

Sec. 1. The boundaries of the Meeker Municipal Water District are [Under and pursuant to the provisions of Article XVI, Section 59, of the Texas Constitution, a conservation and reclamation district is hereby created and established in Jefferson County, Texas, to be known as "Meeker Municipal Water District" (the "district"), and the boundaries of said district shall be] as follows:

BEGINNING at the intersection of the center line of the TNN&O Railroad (Southern Pacific Railroad) right-of-way and the west right-of-way line of the Lower Neches Valley Authority lateral sometimes called Port Arthur Fresh Water Canal;

THENCE in a westerly direction along the center line of the TNN&O Railway (Southern Pacific Railroad) right-of-way to the east line of the James Gerish, Sr. League, Abstract 24, the same being the west right-of-way line of the Texas Public Service Company, Lower Neches Valley Authority (Cheek) Lateral;

THENCE north with the west right-of-way line of the Texas Public Service Company, now Lower Neches Valley Authority (Cheek) lateral, to its intersection with the center line of the LNVA/Texas Public Service Company's BI main canal;

THENCE northerly with the center line of the LNVA/Texas Public Service Company's/BI main canal to its intersection of the center line of State Highway 105;

THENCE westerly with the center line of State Highway 105 to its intersection with the right descending bank (the southeast bank) of Pine Island Bayou;

THENCE southwesterly with the meanders of the southeast bank (right descending bank) of Pine Island Bayou in a southeasterly direction to its intersection with the east line of the J. M. Carpenter Abstract 73, Tract No. 73;

THENCE south with the east line of the J. M. Carpenter Abstract 743, Tract No. 73, to the north line of the George Ennis Tract Abstract 824;

THENCE west with the north line of the George Ennis Tract Abstract 824 to its northwest corner;

THENCE south with the west line of the George Ennis Abstract 824 Tract to the north line of T&O RRC Abstract 237, Tract 101;

THENCE west with the north line of the T&NO RR Company Abstract 237, Tract 101, to its northwest corner;

THENCE south with the west line of the T&NO Railroad Company Abstract 237, Tract 101, to its southwest corner;

THENCE east with the south line of the T&NO RR Company Abstract 237, Tract 101, to the south line of the P. J. Chiles Survey, continuing east with the south line of the P. J. Chiles Survey, and its projection, which is the same line as the south line of the Susannah Cotton Tract, Abstract 106, and south line of the S. Cotton Tract, Abstract 107, to the north right-of-way of the LNVA/Texas Public Service Company's/BI main canal;

THENCE east with the north right-of-way line of the Lower Neches Valley Authority/Texas Public Service Company's/BI main canal to its intersection with the west right-of-way line of Imes Road;

THENCE south with the west right-of-way line of Imes Road to the center line of the T&NO RR (Southern Pacific) right-of-way line;

THENCE west with the center line of the T&NO RR/Southern Pacific right-of-way to the east bank of Green Pond Gulley;

THENCE south with the meanders of the east bank of Green Pond Gulley to the north line of the HT&B RR Company Abstract 150, Tract 7, the same being the south line of the James Gerish, Sr. League;

THENCE east along the north line of the HT&B RR Company Abstract 150, Tract 7, and the south line of the James Gerish, Sr. League to the southeast corner of the James Gerish, Sr. League;

THENCE continuing east along the south line of the Ashley Savery League Abstract 46 to the east right-of-way line of the LNVA/Texas Public Service Company/Tyrrell Lateral;

THENCE north with the west right-of-way line of the LNVA/Texas Public Service Company/Tyrrell Lateral and continuing along the west right-of-way line of the LNVA/Port Arthur Canal in a north and northwesterly direction to the place of beginning.

SECTION 2.05. Section 1(a), Chapter 1331, Acts of the 76th Legislature, Regular Session, 1999, is amended to read as follows:

(a) The following groundwater conservation districts are created:

(1) Cow Creek Groundwater Conservation District;

(2) Brazos Valley Groundwater Conservation District;

(3) Crossroads Groundwater Conservation District;

(4) Hays Trinity Groundwater Conservation District;

(5) [Lone Wolf Groundwater Conservation District;

[(6) Lost Pines Groundwater Conservation District;

[(7)] McMullen Groundwater Conservation District;

(6) [(8)] Middle Pecos Groundwater Conservation District;

(7) [(9)] Red Sands Groundwater Conservation District;

(8) [(10)] Refugio Groundwater Conservation District;

(9) [(11)] Southeast Trinity Groundwater Conservation District;

(10) [(12)] Texana Groundwater Conservation District; and

(11) [(13)] Tri-County Groundwater Conservation District.

SECTION 2.06. Section 2(a), Chapter 1331, Acts of the 76th Legislature, Regular Session, 1999, is amended to read as follows:

(a) The boundaries of the following groundwater conservation districts are coextensive with county boundaries as follows:

(1) the boundaries of the Cow Creek Groundwater Conservation District are coextensive with the boundaries of Kendall County;

(2) the boundaries of the Brazos Valley Groundwater Conservation District are coextensive with the boundaries of Robertson and Brazos Counties;

(3) the boundaries of the Crossroads Groundwater Conservation District are coextensive with the boundaries of Victoria County;

(4) [the boundaries of the Lone Wolf Groundwater Conservation District are coextensive with the boundaries of Mitchell County;

[(5) the boundaries of the Lost Pines Groundwater Conservation District are coextensive with the boundaries of Bastrop and Lee Counties, but if the voters of only one county confirm the creation of the district under Section 10 of this Act, the boundaries of the district are coextensive with the boundaries of that county;

[(6)] the boundaries of the McMullen Groundwater Conservation District are coextensive with the boundaries of McMullen County;

(5) [(7)] the boundaries of the Middle Pecos Groundwater Conservation District are coextensive with the boundaries of Pecos County;

(6) [(8)] the boundaries of the Refugio Groundwater Conservation District are coextensive with the boundaries of Refugio County;

(7) [(9)] the boundaries of the Texana Groundwater Conservation District are coextensive with the boundaries of Jackson County; and

(8) [(10)] the boundaries of the Tri-County Groundwater Conservation District are coextensive with the boundaries of Foard, Hardeman, and Wilbarger Counties.

ARTICLE 3. REPEALER

SECTION 3.01. The following statutes are repealed:

(1) Sections 1A, 1B, 1C, 2, 3, 4, 5, 6, 7, 7A, 8, 9, 10, 11, 12, 12A, 13, 13A, 13B, 14, 15, 16, 16A, 17, and 18, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965;

(2) Section 4, Chapter 249, Acts of the 72nd Legislature, Regular Session, 1991;

(3) Chapter 674, Acts of the 60th Legislature, Regular Session, 1967;

(4) Chapter 112, Acts of the 65th Legislature, Regular Session, 1977;

(5) Section 2, Chapter 911, Acts of the 70th Legislature, Regular Session, 1987;

(6) Section 5, Chapter 128, Acts of the 80th Legislature, Regular Session, 2007;

(7) Chapter 258, Acts of the 65th Legislature, Regular Session, 1977;

(8) Section 3, Chapter 479, Acts of the 67th Legislature, Regular Session, 1981;

(9) Section 6, Chapter 511, Acts of the 72nd Legislature, Regular Session, 1991;

(10) Section 2, Chapter 529, Acts of the 78th Legislature, Regular Session, 2003;

(11) Section 3, Chapter 476, Acts of the 79th Legislature, Regular Session, 2005;

(12) Chapter 287, Acts of the 61st Legislature, Regular Session, 1969;

(13) Sections 11, 12, and 13, Chapter 1091, Acts of the 76th Legislature, Regular Session, 1999;

(14) Sections 1, 1A, 2, 3, 4, 5, 6, 6(b), 7, 8, 9, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 20a, 20b, 20c, 21, 22, and 23, Chapter 477, Acts of the 59th Legislature, Regular Session, 1965;

(15) Section 14, Chapter 125, Acts of the 74th Legislature, Regular Session, 1995;

(16) Chapter 172, Acts of the 59th Legislature, Regular Session, 1965;

(17) Sections 10 and 11, Chapter 385, Acts of the 76th Legislature, Regular Session, 1999;

(18) Chapter 206, Acts of the 61st Legislature, Regular Session, 1969;

(19) Chapter 211, Acts of the 64th Legislature, Regular Session, 1975;

(20) Section 3, Chapter 415, Acts of the 80th Legislature, Regular Session, 2007;

(21) Chapter 766, Acts of the 69th Legislature, Regular Session, 1985;

(22) Chapter 16, Acts of the 70th Legislature, Regular Session, 1987;

(23) Section 4, Chapter 70, Acts of the 74th Legislature, Regular Session, 1995;

(24) Sections 1, 2(b) and (c), 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, and 18, Chapter 644, Acts of the 59th Legislature, Regular Session, 1965;

(25) Chapter 868, Acts of the 62nd Legislature, Regular Session, 1971;

(26) Chapter 8, Acts of the 71st Legislature, Regular Session, 1989;

(27) Chapter 260, Acts of the 58th Legislature, Regular Session, 1963;

(28) Chapter 84, Acts of the 59th Legislature, Regular Session, 1965;

(29) Sections 4 and 5, Chapter 259, Acts of the 68th Legislature, Regular Session, 1983;

(30) Chapter 35, Acts of the 59th Legislature, Regular Session, 1965;

(31) Sections 2 and 3, Chapter 472, Acts of the 67th Legislature, Regular Session, 1981;

(32) Section 5, Chapter 66, Acts of the 71st Legislature, Regular Session, 1989;

(33) Chapter 29, Acts of the 65th Legislature, Regular Session, 1977;

(34) Section 12, Chapter 434, Acts of the 77th Legislature, Regular Session, 2001;

(35) Articles 1 through 8, Chapter 11, Acts of the 70th Legislature, 2nd Called Session, 1987;

(36) Chapter 6, Acts of the 65th Legislature, Regular Session, 1977;

(37) Section 6, Chapter 614, Acts of the 67th Legislature, Regular Session, 1981;

(38) Chapter 199, Acts of the 71st Legislature, Regular Session, 1989;

(39) Chapter 565, Acts of the 64th Legislature, Regular Session, 1975;

(40) Chapter 5, Acts of the 62nd Legislature, Regular Session, 1971;

(41) Chapter 102, Acts of the 62nd Legislature, Regular Session, 1971;

(42) Chapter 140, Acts of the 65th Legislature, Regular Session, 1977; and

(43) Chapter 261, Acts of the 58th Legislature, Regular Session, 1963.

SECTION 3.02. The following statutes are repealed:

(1) Sections 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, and 18, Chapter 566, Acts of the 73rd Legislature, Regular Session, 1993;

(2) Chapter 303, Acts of the 51st Legislature, Regular Session, 1949;

(3) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 675, Acts of the 62nd Legislature, Regular Session, 1971;

(4) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 411, Acts of the 62nd Legislature, Regular Session, 1971;

(5) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 579, Acts of the 62nd Legislature, Regular Session, 1971;

(6) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 554, Acts of the 62nd Legislature, Regular Session, 1971;

(7) Sections 1, 3, 4, 5, 6, 7, 8, 9, and 10, Chapter 388, Acts of the 63rd Legislature, Regular Session, 1973;

(8) Sections 1, 3, 4, 5, 6, 7, 8, 9, and 10, Chapter 620, Acts of the 63rd Legislature, Regular Session, 1973;

(9) Sections 2, 2a, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, and 19, Chapter 95, Acts of the 56th Legislature, Regular Session, 1959;

(10) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 659, Acts of the 62nd Legislature, Regular Session, 1971;

(11) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 685, Acts of the 62nd Legislature, Regular Session, 1971;

(12) Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25, Chapter 749, Acts of the 61st Legislature, Regular Session, 1969;

(13) Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25, Chapter 306, Acts of the 61st Legislature, Regular Session, 1969;

(14) Sections 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13, Chapter 1381, Acts of the 77th Legislature, Regular Session, 2001;

(15) Sections 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, and 12, Chapter 916, Acts of the 70th Legislature, Regular Session, 1987;

(16) Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25, Chapter 391, Acts of the 61st Legislature, Regular Session, 1969;

(17) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 445, Acts of the 62nd Legislature, Regular Session, 1971;

(18) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 642, Acts of the 62nd Legislature, Regular Session, 1971;

(19) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 437, Acts of the 62nd Legislature, Regular Session, 1971;

(20) Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, and 24, Chapter 144, Acts of the 61st Legislature, Regular Session, 1969;

(21) Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, and 24, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969;

(22) Sections 1, 2, 4, 5, 6, 7, 8, 9, 10, and 11, Chapter 741, Acts of the 71st Legislature, Regular Session, 1989;

(23) Sections 1, 3, 4, 5, 5A, 6, 7, 8, and 9, Chapter 696, Acts of the 65th Legislature, Regular Session, 1977;

(24) Sections 1, 2, 3, 4, 5(b), 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 19A, 20, 20A, 21, 22, 23, 24, 25, 26, 27, and 28, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985;

(25) Sections 6 and 7, Chapter 1213, Acts of the 75th Legislature, Regular Session, 1997;

(26) Chapter 97, Acts of the 66th Legislature, Regular Session, 1979;

(27) Sections 4 and 5, Chapter 398, Acts of the 68th Legislature, Regular Session, 1983;

(28) Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, and 23, Chapter 616, Acts of the 61st Legislature, Regular Session, 1969;

(29) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 658, Acts of the 62nd Legislature, Regular Session, 1971;

(30) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 664, Acts of the 62nd Legislature, Regular Session, 1971;

(31) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 635, Acts of the 62nd Legislature, Regular Session, 1971;

(32) Sections 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, and 24, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977;

(33) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 423, Acts of the 62nd Legislature, Regular Session, 1971;

(34) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 693, Acts of the 62nd Legislature, Regular Session, 1971;

(35) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 694, Acts of the 62nd Legislature, Regular Session, 1971;

(36) Sections 1, 2, 4, 5, 6, 7, 8, 9, 10, and 11, Chapter 756, Acts of the 69th Legislature, Regular Session, 1985;

(37) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 704, Acts of the 62nd Legislature, Regular Session, 1971;

(38) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 634, Acts of the 62nd Legislature, Regular Session, 1971; and

(39) Sections 1, 2, 3, 5, 6, 7, and 8, Chapter 344, Acts of the 62nd Legislature, Regular Session, 1971.

SECTION 3.03. The following statutes are repealed:

(1) Sections 1, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, and 17, Chapter 439, Acts of the 70th Legislature, Regular Session, 1987;

(2) Sections 7 and 8, Chapter 1310, Acts of the 77th Legislature, Regular Session, 2001;

(3) Sections 1, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, and 17, Chapter 992, Acts of the 70th Legislature, Regular Session, 1987;

(4) Chapter 915, Acts of the 70th Legislature, Regular Session, 1987;

(5) Section 22, Chapter 759, Acts of the 78th Legislature, Regular Session, 2003;

(6) Sections 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, and 12, Chapter 1075, Acts of the 75th Legislature, Regular Session, 1997;

(7) Chapter 1361, Acts of the 77th Legislature, Regular Session, 2001;

(8) Chapter 772, Acts of the 78th Legislature, Regular Session, 2003;

(9) Chapter 1291, Acts of the 77th Legislature, Regular Session, 2001;

(10) Chapter 1474, Acts of the 77th Legislature, Regular Session, 2001;

(11) Chapter 1294, Acts of the 77th Legislature, Regular Session, 2001;

(12) Chapter 1358, Acts of the 77th Legislature, Regular Session, 2001;

(13) Chapter 376, Acts of the 69th Legislature, Regular Session, 1985;

(14) Chapter 26, Acts of the 70th Legislature, Regular Session, 1987;

(15) Chapter 1045, Acts of the 71st Legislature, Regular Session, 1989;

(16) Chapter 302, Acts of the 77th Legislature, Regular Session, 2001;

(17) Chapter 489, Acts of the 67th Legislature, Regular Session, 1981;

(18) Sections 2 and 3, Chapter 294, Acts of the 77th Legislature, Regular Session, 2001;

(19) Chapter 693, Acts of the 72nd Legislature, Regular Session, 1991;

(20) Chapter 865, Acts of the 70th Legislature, Regular Session, 1987;

(21) Chapter 1344, Acts of the 77th Legislature, Regular Session, 2001;

(22) Part 4, Chapter 966, Acts of the 77th Legislature, Regular Session, 2001;

(23) Chapter 1328, Acts of the 77th Legislature, Regular Session, 2001;

(24) Part 5, Chapter 966, Acts of the 77th Legislature, Regular Session, 2001; and

(25) Chapter 1323, Acts of the 77th Legislature, Regular Session, 2001.

ARTICLE 4. GENERAL MATTERS

SECTION 4.01. LEGISLATIVE INTENT OF NO SUBSTANTIVE CHANGE. This Act is enacted under Section 43, Article III, Texas Constitution. This Act is intended as a codification only, and no substantive change in the law is intended by this Act. This Act does not increase or decrease the territory of any special district of the state as those boundaries exist on the effective date of this Act.

SECTION 4.02. PRESERVATION OF VALIDATION MADE BY PREVIOUS LAW. (a) The repeal of a law, including a validating law, by this Act does not remove, void, or otherwise affect in any manner a validation under the repealed law. The validation is preserved and continues to have the same effect that it would have if the law were not repealed.

(b) Subsection (a) of this section does not diminish the saving provisions prescribed by Section 311.031, Government Code.

SECTION 4.03. EFFECTIVE DATE. This Act takes effect April 1, 2011.

COMMITTEE AMENDMENT NO. 1

Amend H.B. No. 2619 as follows:

(1) On page 759, line 24, strike "8848, and 8849" and substitute "and 8848".

(2) Strike page 893, line 7, through page 899, line 26.

(3) Strike page 938, line 2, through page 940, line 7, and substitute the following:

SECTION 2.05. Section 1(a), Chapter 1331, Acts of the 76th Legislature, Regular Session, 1999, is amended to read as follows:

(a) The following groundwater conservation districts are created:

(1) Cow Creek Groundwater Conservation District;

(2) Brazos Valley Groundwater Conservation District;

(3) Crossroads Groundwater Conservation District;

(4) Hays Trinity Groundwater Conservation District;

(5) [Lone Wolf Groundwater Conservation District;

[(6)] Lost Pines Groundwater Conservation District;

(6) [(7)] McMullen Groundwater Conservation District;

(7) [(8)] Middle Pecos Groundwater Conservation District;

(8) [(9)] Red Sands Groundwater Conservation District;

(9) [(10)] Refugio Groundwater Conservation District;

(10) [(11)] Southeast Trinity Groundwater Conservation District; and

(11) [(12)] Texana Groundwater Conservation District.

SECTION 2.06. Section 2(a), Chapter 1331, Acts of the 76th Legislature, Regular Session, 1999, is amended to read as follows:

(a) The boundaries of the following groundwater conservation districts are coextensive with county boundaries as follows:

(1) the boundaries of the Cow Creek Groundwater Conservation District are coextensive with the boundaries of Kendall County;

(2) the boundaries of the Brazos Valley Groundwater Conservation District are coextensive with the boundaries of Robertson and Brazos Counties;

(3) the boundaries of the Crossroads Groundwater Conservation District are coextensive with the boundaries of Victoria County;

(4) [the boundaries of the Lone Wolf Groundwater Conservation District are coextensive with the boundaries of Mitchell County;

[(5)] the boundaries of the Lost Pines Groundwater Conservation District are coextensive with the boundaries of Bastrop and Lee Counties, but if the voters of only one county confirm the creation of the district under Section 10 of this Act, the boundaries of the district are coextensive with the boundaries of that county;

(5) [(6)] the boundaries of the McMullen Groundwater Conservation District are coextensive with the boundaries of McMullen County;

(6) [(7)] the boundaries of the Middle Pecos Groundwater Conservation District are coextensive with the boundaries of Pecos County;

(7) [(8)] the boundaries of the Refugio Groundwater Conservation District are coextensive with the boundaries of Refugio County; and

(8) [(9)] the boundaries of the Texana Groundwater Conservation District are coextensive with the boundaries of Jackson County.

(4) On page 948, line 20, after the semicolon, add "and".

(5) On page 948, line 22, strike the semicolon and substitute a period.

(6) On page 948, strike lines 23-26. Swinford