81R11947 MCK/KEL/PAM-D

By: Duncan S.B. No. 1756

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