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