S.B. No. 1147
 
 
 
 
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 1011, 1034, 1058, 1069,
  1074, 1086, 1098, 1099, 1100, 1101, 1102, 1103, 1104, 1105, 1106, 1108, and 1111 to read as follows:
 
  CHAPTER 1011.  SCHLEICHER COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A.  GENERAL PROVISIONS
  Sec. 1011.001.  DEFINITIONS 
  Sec. 1011.002.  AUTHORITY FOR OPERATION 
  Sec. 1011.003.  POLITICAL SUBDIVISION 
  Sec. 1011.004.  DISTRICT TERRITORY 
  Sec. 1011.005.  CORRECTION OF INVALID PROCEDURES 
  [Sections 1011.006-1011.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1011.051.  BOARD ELECTION; TERM 
  Sec. 1011.052.  NOTICE OF ELECTION 
  Sec. 1011.053.  BALLOT PETITION 
  Sec. 1011.054.  QUALIFICATIONS FOR OFFICE 
  Sec. 1011.055.  BOND; RECORD OF BOND AND OATH 
  Sec. 1011.056.  BOARD VACANCY 
  Sec. 1011.057.  OFFICERS 
  Sec. 1011.058.  COMPENSATION; EXPENSES 
  Sec. 1011.059.  VOTING REQUIREMENT 
  Sec. 1011.060.  MEETINGS 
  Sec. 1011.061.  EMPLOYEES 
  Sec. 1011.062.  MAINTENANCE OF RECORDS; PUBLIC
                   INSPECTION 
  Sec. 1011.063.  SEAL 
  Sec. 1011.064.  ALTERNATIVE ELECTION OF DIRECTORS BY
                   PRECINCT 
  [Sections 1011.065-1011.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1011.101.  DISTRICT RESPONSIBILITY 
  Sec. 1011.102.  RESTRICTION ON COUNTY OR MUNICIPAL
                   TAXATION 
  Sec. 1011.103.  MANAGEMENT AND CONTROL OF DISTRICT 
  Sec. 1011.104.  RULES 
  Sec. 1011.105.  PURCHASING AND ACCOUNTING PROCEDURES 
  Sec. 1011.106.  EMINENT DOMAIN 
  Sec. 1011.107.  GIFTS AND ENDOWMENTS 
  Sec. 1011.108.  PROVISION OF SERVICES OUTSIDE DISTRICT 
  Sec. 1011.109.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1011.110.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1011.111-1011.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 1011.151.  BUDGET 
  Sec. 1011.152.  PROPOSED BUDGET: NOTICE AND HEARING 
  Sec. 1011.153.  FISCAL YEAR 
  Sec. 1011.154.  ANNUAL AUDIT 
  Sec. 1011.155.  DEPOSITORY OR TREASURER 
  [Sections 1011.156-1011.200 reserved for expansion]
  SUBCHAPTER E. BONDS
  Sec. 1011.201.  GENERAL OBLIGATION BONDS 
  Sec. 1011.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1011.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1011.204.  MATURITY OF GENERAL OBLIGATION BONDS 
  Sec. 1011.205.  EXECUTION OF GENERAL OBLIGATION BONDS 
  Sec. 1011.206.  REFUNDING BONDS 
  [Sections 1011.207-1011.250 reserved for expansion]
  SUBCHAPTER F. TAXES
  Sec. 1011.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1011.252.  TAX RATE 
  Sec. 1011.253.  TAX ASSESSOR-COLLECTOR 
  CHAPTER 1011.  SCHLEICHER COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 1011.001.  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 Schleicher County Hospital
  District. (New.)
         Sec. 1011.002.  AUTHORITY FOR OPERATION. The Schleicher
  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. 38, Sec. 1 (part).)
         Sec. 1011.003.  POLITICAL SUBDIVISION. The district is a
  political subdivision of this state. (Acts 60th Leg., R.S., Ch. 38,
  Sec. 16 (part).)
         Sec. 1011.004.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of Schleicher County.
  (Acts 60th Leg., R.S., Ch. 38, Sec. 1 (part).)
         Sec. 1011.005.  CORRECTION OF INVALID PROCEDURES. If a
  court holds that any procedure under this chapter violates the
  constitution of this state or of the United States, the district by
  resolution may provide an alternative procedure that conforms with
  the constitution. (Acts 60th Leg., R.S., Ch. 38, Sec. 17 (part).)
  [Sections 1011.006-1011.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1011.051.  BOARD ELECTION; TERM. (a)  Except as
  provided by Section 1011.064, the board consists of seven directors
  elected from the district at large.
         (b)  Unless four-year terms are established under Section
  285.081, Health and Safety Code:
               (1)  directors serve staggered two-year terms; and
               (2)  a directors' election shall be held annually on a
  date authorized by Chapter 41, Election Code. (Acts 60th Leg.,
  R.S., Ch. 38, Secs. 3(a) (part), (c) (part).)
         Sec. 1011.052.  NOTICE OF ELECTION. At least 10 days before
  the date of a directors' election, notice of the election must be
  published one time in a newspaper of general circulation in
  Schleicher County. (Acts 60th Leg., R.S., Ch. 38, Sec. 3(c)
  (part).)
         Sec. 1011.053.  BALLOT PETITION. (a)  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 signed by not fewer than 10
  registered voters.
         (b)  The petition and an application for a place on the
  ballot that meets the requirements of the Election Code must be
  filed in the manner provided by Chapter 144, Election Code. (Acts
  60th Leg., R.S., Ch. 38, Sec. 3(c) (part).)
         Sec. 1011.054.  QUALIFICATIONS FOR OFFICE. A person may not
  be appointed or elected as a director unless the person is:
               (1)  a resident of the district; and
               (2)  at least 18 years of age at the time of the
  appointment or election.  (Acts 60th Leg., R.S., Ch. 38, Sec. 3(a)
  (part).)
         Sec. 1011.055.  BOND; RECORD OF BOND AND OATH. (a)  Each
  director shall execute a good and sufficient bond for $1,000 that
  is:
               (1)  payable to the district; and
               (2)  conditioned on the faithful performance of the
  director's duties.
         (b)  Each director's bond and constitutional oath of office
  shall be deposited with the district's depository bank for
  safekeeping.  (Acts 60th Leg., R.S., Ch. 38, Sec. 3(a) (part).)
         Sec. 1011.056.  BOARD VACANCY. (a)  If a vacancy occurs in
  the office of director, the remaining directors shall appoint a
  director for the unexpired term.
         (b)  If the number of directors is reduced to fewer than four
  for any reason, the remaining directors shall immediately call a
  special election to fill the vacancies. If the remaining directors
  do not call the election, a district court, on application of a
  district voter or taxpayer, may order the directors to hold the
  election. (Acts 60th Leg., R.S., Ch. 38, Sec. 3(b) (part).)
         Sec. 1011.057.  OFFICERS. The board shall elect from among
  its members a president and a secretary.  (Acts 60th Leg., R.S., Ch.
  38, Sec. 3(b) (part).)
         Sec. 1011.058.  COMPENSATION; EXPENSES. A director serves
  without compensation but may be reimbursed for actual expenses
  incurred in the performance of official duties on approval of the
  expenses by the board.  (Acts 60th Leg., R.S., Ch. 38, Sec. 4
  (part).)
         Sec. 1011.059.  VOTING REQUIREMENT. A concurrence of a
  majority of directors is sufficient in any matter relating to
  district business.  (Acts 60th Leg., R.S., Ch. 38, Sec. 3(b)
  (part).)
         Sec. 1011.060.  MEETINGS. (a)  A board meeting may be
  called by the president or a majority of the directors.
         (b)  Notice of the time and place of a board meeting must be
  given to each director not later than the seventh day before the
  time of the meeting.
         (c)  This section does not prevent the board from
  establishing by resolution a regular time and place for meetings
  for which special notice is not required. (Acts 60th Leg., R.S.,
  Ch. 38, Sec. 3(b) (part).)
         Sec. 1011.061.  EMPLOYEES. The board may employ a general
  manager and other necessary professional and clerical personnel.  
  (Acts 60th Leg., R.S., Ch. 38, Sec. 7(a) (part).)
         Sec. 1011.062.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.
  Except as provided by Section 1011.055, all district records,
  including books, accounts, notices, and minutes, and all other
  matters of the district and the operation of its facilities shall
  be:
               (1)  maintained at the district office; and
               (2)  open to public inspection at the district office
  at all reasonable hours.  (Acts 60th Leg., R.S., Ch. 38, Sec. 7(b).)
         Sec. 1011.063.  SEAL. The board may adopt a seal for the
  district. (Acts 60th Leg., R.S., Ch. 38, Sec. 7(a) (part).)
         Sec. 1011.064.  ALTERNATIVE ELECTION OF DIRECTORS BY
  PRECINCT. (a)  The board may adopt an order to elect directors from
  five districts according to the commissioners precinct method.
         (b)  If the board adopts an order under Subsection (a), one
  director is elected by the voters of the district at large and one
  director is elected from each county commissioners precinct by the
  voters of that precinct.
         (c)  Except as provided by Subsection (e), a person must be:
               (1)  a resident of the district to be eligible to be a
  candidate for or to serve as a director at large; and
               (2)  a resident of the precinct to be a candidate for or
  to serve as a director from that precinct.
         (d)  A person shall indicate on the application for a place
  on the ballot:
               (1)  that the person seeks to represent the district at
  large; or
               (2)  the precinct that the person seeks to represent.
         (e)  When the boundaries of the county commissioners
  precincts are redrawn to reflect population changes after each
  federal decennial census, a director in office on the effective
  date of the change, or elected or appointed before the effective
  date of the change to a term of office beginning on or after the
  effective date of the change, shall serve the term or the remainder
  of the term in the precinct to which elected or appointed even if
  the change in boundaries places the director's residence outside
  the precinct for which the director was elected or appointed.
         (f)  At the first directors' election after the adoption of
  an order under Subsection (a), five new directors shall be elected.
  After the canvass of the returns of the election, the terms of all
  directors serving at the time of the election expire.
         (g)  At the first meeting of the directors elected under this
  section, the directors shall draw lots to determine which three
  directors serve two-year terms and which two directors serve
  one-year terms. After the terms of the initial directors elected
  under this section expire, each director serves a two-year term.
  (Acts 60th Leg., R.S., Ch. 38, Sec. 3A.)
  [Sections 1011.065-1011.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1011.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for providing medical and hospital care for the
  district's residents, including the district's needy and indigent
  residents.  (Acts 60th Leg., R.S., Ch. 38, Secs. 2(a) (part), 12
  (part).)
         Sec. 1011.102.  RESTRICTION ON COUNTY OR MUNICIPAL
  TAXATION.  Schleicher County or a municipality in Schleicher County
  may not impose a tax for hospital purposes.  (Acts 60th Leg., R.S.,
  Ch. 38, Sec. 12 (part).)
         Sec. 1011.103.  MANAGEMENT AND CONTROL OF DISTRICT.  The
  management and control of the district is vested in the board.  
  (Acts 60th Leg., R.S., Ch. 38, Sec. 4 (part).)
         Sec. 1011.104.  RULES.  (a)  The board may adopt rules
  governing the operation of the district and district facilities.
         (b)  The rules, on approval by the board, may be published in
  booklet form at district expense and may be made available to any
  taxpayer on request.  (Acts 60th Leg., R.S., Ch. 38, Sec. 7(c).)
         Sec. 1011.105.  PURCHASING AND ACCOUNTING PROCEDURES. (a)
  The board may prescribe the method and manner of making purchases
  and expenditures by and for the district.
         (b)  The board shall prescribe:
               (1)  all accounting and control procedures; and
               (2)  the method of purchasing necessary supplies,
  materials, and equipment.   (Acts 60th Leg., R.S., Ch. 38, Sec. 7(a)
  (part).)
         Sec. 1011.106.  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 located in district
  territory, if the interest is necessary or convenient for the
  district to exercise a right, power, privilege, or function
  conferred on the district by this chapter.
         (b)  The district must exercise the power of eminent domain
  in the manner provided by Chapter 21, Property Code, except the
  district is not required to deposit in the trial court money or a
  bond as provided by Section 21.021(a), Property Code.
         (c)  In a condemnation proceeding brought by the district,
  the district is not required to:
               (1)  pay in advance or provide bond or other security
  for costs in the trial court;
               (2)  provide bond for the issuance of a temporary
  restraining order or a temporary injunction; or
               (3)  provide a bond for costs or a supersedeas bond on
  an appeal or petition for review.  (Acts 60th Leg., R.S., Ch. 38,
  Sec. 9.)
         Sec. 1011.107.  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. 38, Sec.
  14.)
         Sec. 1011.108.  PROVISION OF SERVICES OUTSIDE DISTRICT.  On
  approval of the board, the district may provide primary care,
  emergency services, preventive medical services, and other
  health-related services outside the district if the services serve
  the district's purpose.  (Acts 60th Leg., R.S., Ch. 38, Sec. 1
  (part).)
         Sec. 1011.109.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  
  When a patient who claims to be indigent is admitted to a district
  facility, the board shall have an inquiry made into the
  circumstances of:
               (1)  the patient; and
               (2)  the patient's relatives legally liable for the
  patient's support.
         (b)  If an agent designated by the district to handle the
  inquiry determines that the patient or those relatives cannot pay
  for all or part of the patient's care and treatment in the hospital,
  the amount that cannot be paid becomes a charge against the
  district.
         (c)  If it is determined that the patient or those relatives
  are liable to pay for all or part of the patient's care and
  treatment, the patient or those relatives shall be ordered to pay to
  the district's treasurer a specified amount each week for the
  patient's support.  The amount ordered must be proportionate to
  their financial ability and may not exceed the actual per capita
  cost of maintenance.
         (d)  The district may collect the amount from the patient's
  estate, or from those relatives legally liable for the patient's
  support, in the manner provided by law for the collection of
  expenses of the last illness of a deceased person.
         (e)  If there is a dispute as to the ability to pay or doubt
  in the mind of the district's designated agent, the board shall hold
  a hearing and, after calling witnesses, shall:
               (1)  resolve the dispute or doubt; and
               (2)  issue any appropriate order.
         (f)  The order may be appealed to the district court.  (Acts
  60th Leg., R.S., Ch. 38, Sec. 13.)
         Sec. 1011.110.  AUTHORITY TO SUE AND BE SUED.  As a
  governmental agency, the district may sue and be sued in its own
  name in any court in this state.  (Acts 60th Leg., R.S., Ch. 38, Sec.
  16 (part).)
  [Sections 1011.111-1011.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 1011.151.  BUDGET.  The board annually shall have a
  budget prepared for the next fiscal year that includes:
               (1)  proposed expenditures and disbursements;
               (2)  estimated receipts and collections; and
               (3)  the amount of taxes required to be imposed for the
  year.  (Acts 60th Leg., R.S., Ch. 38, Sec. 8(b) (part).)
         Sec. 1011.152.  PROPOSED BUDGET: NOTICE AND HEARING.  (a)  
  The board shall hold a public hearing on the proposed budget.
         (b)  Notice of the hearing must be published at least once in
  a newspaper of general circulation in Schleicher County not later
  than the 10th day before the date of the hearing.
         (c)  Any district taxpayer is entitled to:
               (1)  appear at the time and place designated in the
  notice; and
               (2)  be heard regarding any item included in the
  proposed budget.  (Acts 60th Leg., R.S., Ch. 38, Sec. 8(b) (part).)
         Sec. 1011.153.  FISCAL YEAR.  The district's fiscal year
  begins on January 1 and ends on December 31.  (Acts 60th Leg., R.S.,
  Ch. 38, Sec. 8(a) (part).)
         Sec. 1011.154.  ANNUAL AUDIT.  (a)  The board annually shall
  have an independent audit made of the district's books and records
  for the preceding fiscal year.
         (b)  Not later than March 31 each year, the audit shall be
  filed:
               (1)  with the comptroller; and
               (2)  at the district's office.  (Acts 60th Leg., R.S.,
  Ch. 38, Sec. 8(a) (part).)
         Sec. 1011.155.  DEPOSITORY OR TREASURER.  (a)  The board by
  resolution shall designate a bank or banks in Schleicher County as
  the district's depository or treasurer.  A designated bank serves
  for two years and until a successor is designated.
         (b)  All income received by the district shall be deposited
  with the district depository.
         (c)  All district money shall be secured in the manner
  provided for securing county funds.  (Acts 60th Leg., R.S., Ch. 38,
  Secs. 5(b) (part), 10.)
  [Sections 1011.156-1011.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 1011.201.  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 the purchase,
  construction, acquisition, repair, or renovation of buildings or
  improvements and equipping buildings and improvements for hospital
  purposes.  (Acts 60th Leg., R.S., Ch. 38, Sec. 6(a) (part).)
         Sec. 1011.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  
  The board shall impose an ad valorem tax at a rate sufficient to
  create an interest and sinking fund to pay the principal of and
  interest on general obligation bonds issued under Section 1011.201
  as the bonds mature.
         (b)  The tax required by this section together with any
  maintenance and operations tax the district imposes may not in any
  year exceed 75 cents on each $100 valuation of all taxable property
  in the district.  (Acts 60th Leg., R.S., Ch. 38, Sec. 6(a) (part).)
         Sec. 1011.203.  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 on its own motion.
         (c)  The order must specify:
               (1)  the location of the polling places;
               (2)  the presiding election officers;
               (3)  the purpose for which the bonds are to be issued;
               (4)  the amount of the bonds to be authorized;
               (5)  the maximum interest rate of the bonds; and
               (6)  the maximum maturity date of the bonds.
         (d)  Notice of a bond election shall be given by publishing a
  substantial copy of the order in a newspaper of general circulation
  in Schleicher County once each week for two consecutive weeks
  before the date of the election. The first publication must occur at
  least 14 days before the date of the election.  (Acts 60th Leg.,
  R.S., Ch. 38, Sec. 6(a) (part).)
         Sec. 1011.204.  MATURITY OF GENERAL OBLIGATION BONDS.  
  District general obligation bonds must mature not later than 40
  years after the date of issuance.  (Acts 60th Leg., R.S., Ch. 38,
  Sec. 6(a) (part).)
         Sec. 1011.205.  EXECUTION OF GENERAL OBLIGATION BONDS.  (a)  
  The board president shall execute the general obligation bonds in
  the district's name.
         (b)  The board secretary shall countersign the bonds.  (Acts
  60th Leg., R.S., Ch. 38, Sec. 6(a) (part).)
         Sec. 1011.206.  REFUNDING BONDS.  (a)  District refunding
  bonds may be issued without an election and in the manner provided
  by this subchapter to refund outstanding bonds issued by the
  district.
         (b)  A refunding bond may be:
               (1)  sold, with the proceeds of the refunding bond
  applied to the payment of the outstanding bonds; or
               (2)  exchanged wholly or partly for not less than a
  similar amount of the outstanding bonds and the unpaid matured
  interest on those bonds.  (Acts 60th Leg., R.S., Ch. 38, Secs. 6(a)
  (part), (b) (part).)
  [Sections 1011.207-1011.250 reserved for expansion]
  SUBCHAPTER F. TAXES
         Sec. 1011.251.  IMPOSITION OF AD VALOREM TAX.  (a)  On final
  approval of the budget, the board shall impose a tax on all taxable
  property in the district subject to district taxation.
         (b)  The board shall impose the tax to:
               (1)  pay the interest on and create a sinking fund for
  bonds issued by the district for hospital purposes as provided by
  this chapter;
               (2)  provide for the maintenance and operations of the
  hospital, hospital system, or related facilities;
               (3)  make improvements and additions to the hospital
  system; and
               (4)  acquire necessary sites for the hospital system by
  purchase, lease, or condemnation.  (Acts 60th Leg., R.S., Ch. 38,
  Secs. 5(a) (part), (b) (part), 8(b) (part).)
         Sec. 1011.252.  TAX RATE.  The board may impose the tax at a
  rate not to exceed 75 cents on each $100 valuation of all taxable
  property in the district.  (Acts 60th Leg., R.S., Ch. 38, Sec. 5(a)
  (part).)
         Sec. 1011.253.  TAX ASSESSOR-COLLECTOR.  The tax
  assessor-collector of Schleicher County shall assess and collect
  taxes imposed by the district.  (Acts 60th Leg., R.S., Ch. 38, Secs. 5(b) (part), 8(b) (part).)
 
  CHAPTER 1034.  HALL COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1034.001.  DEFINITIONS 
  Sec. 1034.002.  AUTHORITY FOR OPERATION 
  Sec. 1034.003.  ESSENTIAL PUBLIC FUNCTION 
  Sec. 1034.004.  DISTRICT TERRITORY 
  Sec. 1034.005.  DISTRICT SUPPORT OR MAINTENANCE NOT
                   STATE OBLIGATION 
  Sec. 1034.006.  RESTRICTION ON STATE FINANCIAL
                   ASSISTANCE 
  [Sections 1034.007-1034.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1034.051.  BOARD ELECTION; TERM 
  Sec. 1034.052.  NOTICE OF ELECTION 
  Sec. 1034.053.  BALLOT PETITION 
  Sec. 1034.054.  QUALIFICATIONS FOR OFFICE 
  Sec. 1034.055.  BOARD VACANCY 
  Sec. 1034.056.  OFFICERS 
  Sec. 1034.057.  COMPENSATION; EXPENSES 
  Sec. 1034.058.  VOTING REQUIREMENT 
  Sec. 1034.059.  DISTRICT ADMINISTRATOR 
  Sec. 1034.060.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1034.061.  ASSISTANT DISTRICT ADMINISTRATOR;
                   ATTORNEY 
  Sec. 1034.062.  APPOINTMENT OF STAFF AND EMPLOYEES 
  Sec. 1034.063.  RETIREMENT BENEFITS 
  [Sections 1034.064-1034.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1034.101.  DISTRICT RESPONSIBILITY 
  Sec. 1034.102.  RESTRICTION ON COUNTY TAXATION AND DEBT 
  Sec. 1034.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
  Sec. 1034.104.  RULES 
  Sec. 1034.105.  PURCHASING AND ACCOUNTING PROCEDURES 
  Sec. 1034.106.  MOBILE EMERGENCY MEDICAL SERVICE 
  Sec. 1034.107.  DISTRICT PROPERTY, FACILITIES, AND
                   EQUIPMENT 
  Sec. 1034.108.  EMINENT DOMAIN 
  Sec. 1034.109.  COST OF RELOCATING OR ALTERING PROPERTY 
  Sec. 1034.110.  GIFTS AND ENDOWMENTS 
  Sec. 1034.111.  CONSTRUCTION CONTRACTS 
  Sec. 1034.112.  OPERATING AND MANAGEMENT CONTRACTS 
  Sec. 1034.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR SERVICES 
  Sec. 1034.114.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1034.115.  REIMBURSEMENT FOR SERVICES 
  Sec. 1034.116.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1034.117-1034.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 1034.151.  BUDGET 
  Sec. 1034.152.  NOTICE; HEARING; ADOPTION OF BUDGET 
  Sec. 1034.153.  AMENDMENTS TO BUDGET 
  Sec. 1034.154.  RESTRICTION ON EXPENDITURES 
  Sec. 1034.155.  FISCAL YEAR 
  Sec. 1034.156.  ANNUAL AUDIT 
  Sec. 1034.157.  INSPECTION OF ANNUAL AUDIT AND DISTRICT
                   RECORDS 
  Sec. 1034.158.  FINANCIAL REPORT 
  Sec. 1034.159.  DEPOSITORY 
  Sec. 1034.160.  SPENDING AND INVESTMENT RESTRICTIONS 
  [Sections 1034.161-1034.200 reserved for expansion]
  SUBCHAPTER E.  BONDS
  Sec. 1034.201.  GENERAL OBLIGATION BONDS 
  Sec. 1034.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1034.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1034.204.  REVENUE BONDS 
  Sec. 1034.205.  REFUNDING BONDS 
  Sec. 1034.206.  MATURITY OF BONDS 
  Sec. 1034.207.  EXECUTION OF BONDS 
  Sec. 1034.208.  BONDS EXEMPT FROM TAXATION 
  [Sections 1034.209-1034.250 reserved for expansion]
  SUBCHAPTER F. TAXES
  Sec. 1034.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1034.252.  TAX RATE 
  Sec. 1034.253.  ELECTION TO INCREASE MAXIMUM TAX RATE 
  Sec. 1034.254.  TAX ASSESSOR-COLLECTOR 
  CHAPTER 1034.  HALL COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1034.001.  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 Hall County Hospital
  District.  (Acts 70th Leg., R.S., Ch. 1017, Sec. 1.01.)
         Sec. 1034.002.  AUTHORITY FOR OPERATION.  The Hall County
  Hospital District operates and is financed as provided by Section
  9, Article IX, Texas Constitution, and by this chapter. (Acts 70th
  Leg., R.S., Ch. 1017, Sec. 1.02.)
         Sec. 1034.003.  ESSENTIAL PUBLIC FUNCTION. The district is
  a public entity performing an essential public function. (Acts
  70th Leg., R.S., Ch. 1017, Sec. 7.11 (part).)
         Sec. 1034.004.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of Hall County, Texas.
  (Acts 70th Leg., R.S., Ch. 1017, Sec. 1.03.)
         Sec. 1034.005.  DISTRICT SUPPORT OR MAINTENANCE NOT STATE
  OBLIGATION. This state may not be obligated for the support or
  maintenance of the district. (Acts 70th Leg., R.S., Ch. 1017, Sec.
  9.01 (part).)
         Sec. 1034.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.
  The legislature may not make a direct appropriation for the
  construction, maintenance, or improvement of a district facility.
  (Acts 70th Leg., R.S., Ch. 1017, Sec. 9.01 (part).)
  [Sections 1034.007-1034.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1034.051.  BOARD ELECTION; TERM. (a)  The district is
  governed by a board of five directors elected from the district at
  large.
         (b)  Unless four-year terms are established under Section
  285.081, Health and Safety Code:
               (1)  directors serve staggered two-year terms; and
               (2)  an election shall be held annually on the May
  uniform election date to elect the appropriate number of directors.  
  (Acts 70th Leg., R.S., Ch. 1017, Secs. 4.01(a), 4.03(a), (c)
  (part).)
         Sec. 1034.052.  NOTICE OF ELECTION. At least 35 days before
  the date of a directors' election, notice of the election must be
  published one time in a newspaper with general circulation in the
  district. (Acts 70th Leg., R.S., Ch. 1017, Sec. 4.04.)
         Sec. 1034.053.  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 three registered voters of the
  district as determined by the most recent official list of
  registered voters; and
               (2)  filed by the deadline imposed by Section 144.005,
  Election Code. (Acts 70th Leg., R.S., Ch. 1017, Sec. 4.05.)
         Sec. 1034.054.  QUALIFICATIONS FOR OFFICE. (a)  To be
  eligible to be a candidate for or to serve as a director, a person
  must be:
               (1)  a resident of the district; and
               (2)  a qualified voter.
         (b)  A district employee may not serve as a director. (Acts
  70th Leg., R.S., Ch. 1017, Sec. 4.06.)
         Sec. 1034.055.  BOARD VACANCY. If a vacancy occurs in the
  office of director, the remaining directors shall appoint a
  director for the unexpired term. (Acts 70th Leg., R.S., Ch. 1017,
  Sec. 4.07.)
         Sec. 1034.056.  OFFICERS. (a)  The board shall elect from
  among its members a president and a vice president.
         (b)  The board shall appoint a secretary, who need not be a
  director.
         (c)  Each officer of the board serves a one-year term.
         (d)  The board shall fill a vacancy in a board office for the
  unexpired term. (Acts 70th Leg., R.S., Ch. 1017, Secs. 4.08, 4.09.)
         Sec. 1034.057.  COMPENSATION; EXPENSES. A director or
  officer serves without compensation but may be reimbursed for
  actual expenses incurred in the performance of official duties.
  The expenses must be:
               (1)  reported in the district's records; and
               (2)  approved by the board. (Acts 70th Leg., R.S., Ch.
  1017, Sec. 4.10.)
         Sec. 1034.058.  VOTING REQUIREMENT. A concurrence of a
  majority of the directors voting is necessary in matters relating
  to district business. (Acts 70th Leg., R.S., Ch. 1017, Sec. 4.11.)
         Sec. 1034.059.  DISTRICT ADMINISTRATOR. (a)  The board may
  appoint a qualified person as district administrator.
         (b)  The district administrator serves at the will of the
  board and is entitled to compensation as determined by the board.
         (c)  Before assuming the duties of district administrator,
  the administrator must execute a bond in an amount determined by the
  board of not less than $5,000 that is:
               (1)  payable to the district; and
               (2)  conditioned on the faithful performance of the
  administrator's duties under this chapter.
         (d)  The board may pay for the bond with district money.
  (Acts 70th Leg., R.S., Ch. 1017, Secs. 4.12(a) (part), (b) (part),
  (c) (part), (d).)
         Sec. 1034.060.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
  Subject to the limitations prescribed by the board, the district
  administrator shall:
               (1)  supervise the work and activities of the district;
  and
               (2)  direct the general affairs of the district. (Acts
  70th Leg., R.S., Ch. 1017, Sec. 4.15.)
         Sec. 1034.061.  ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.
  (a)  The board may appoint qualified persons as:
               (1)  the assistant district administrator; and
               (2)  the attorney for the district.
         (b)  The assistant district administrator and the attorney
  for the district serve at the will of the board and are entitled to
  compensation as determined by the board. (Acts 70th Leg., R.S., Ch.
  1017, Secs. 4.12(a) (part), (b) (part), (c) (part).)
         Sec. 1034.062.  APPOINTMENT OF STAFF AND EMPLOYEES.
  (a)  The board may appoint to the staff any doctors the board
  considers necessary for the efficient operation of the district and
  may make temporary appointments as considered necessary.
         (b)  The district may employ technicians, nurses, fiscal
  agents, accountants, architects, additional attorneys, and other
  necessary employees.
         (c)  The board may delegate to the district administrator the
  authority to employ persons for the district. (Acts 70th Leg.,
  R.S., Ch. 1017, Secs. 4.13, 4.14.)
         Sec. 1034.063.  RETIREMENT BENEFITS. The board may provide
  retirement benefits for district employees by:
               (1)  establishing or administering a retirement
  program; or
               (2)  participating in:
                     (A)  the Texas County and District Retirement
  System; or
                     (B)  another statewide retirement system in which
  the district is eligible to participate. (Acts 70th Leg., R.S., Ch.
  1017, Sec. 4.16.)
  [Sections 1034.064-1034.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1034.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for operating hospital facilities and for
  providing medical and hospital care for the district's needy
  inhabitants. (Acts 70th Leg., R.S., Ch. 1017, Sec. 5.02 (part).)
         Sec. 1034.102.  RESTRICTION ON COUNTY TAXATION AND DEBT.
  Hall County may not impose a tax or issue bonds or other obligations
  for hospital purposes or to provide medical care for district
  residents. (Acts 70th Leg., R.S., Ch. 1017, Sec. 5.01(b).)
         Sec. 1034.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.
  The board shall manage, control, and administer the hospital system
  and the district's money and resources. (Acts 70th Leg., R.S., Ch.
  1017, Sec. 5.03.)
         Sec. 1034.104.  RULES. The board may adopt rules governing:
               (1)  the operation of the hospital and hospital system;
  and
               (2)  the duties, functions, and responsibilities of
  district staff and employees. (Acts 70th Leg., R.S., Ch. 1017, Sec.
  5.04.)
         Sec. 1034.105.  PURCHASING AND ACCOUNTING PROCEDURES. The
  board may prescribe:
               (1)  the method of making purchases and expenditures by
  and for the district; and
               (2)  accounting and control procedures for the
  district. (Acts 70th Leg., R.S., Ch. 1017, Sec. 5.05.)
         Sec. 1034.106.  MOBILE EMERGENCY MEDICAL SERVICE. The
  district may operate or provide for the operation of a mobile
  emergency medical service. (Acts 70th Leg., R.S., Ch. 1017, Sec.
  5.02 (part).)
         Sec. 1034.107.  DISTRICT PROPERTY, FACILITIES, AND
  EQUIPMENT. (a)  The board shall determine:
               (1)  the type, number, and location of buildings
  required to maintain an adequate hospital system; and
               (2)  the type of equipment necessary for hospital care.
         (b)  The board may:
               (1)  acquire property, including facilities and
  equipment, for the district for use in the hospital system; and
               (2)  mortgage or pledge the property as security for
  payment of the purchase price.
         (c)  The board may lease hospital facilities for the
  district.
         (d)  The board may sell or otherwise dispose of property,
  including facilities or equipment, for the district. (Acts 70th
  Leg., R.S., Ch. 1017, Sec. 5.06.)
         Sec. 1034.108.  EMINENT DOMAIN. (a)  The district may
  exercise the power of eminent domain to acquire a fee simple or
  other interest in property located in district territory if the
  interest is necessary to exercise a right or authority conferred by
  this chapter.
         (b)  The district must exercise the power of eminent domain
  in the manner provided by Chapter 21, Property Code, except that the
  district is not required to deposit in the trial court money or a
  bond as provided by Section 21.021(a), Property Code.
         (c)  In a condemnation proceeding brought by the district,
  the district is not required to:
               (1)  pay in advance or provide a bond or other security
  for costs in the trial court;
               (2)  provide a bond for the issuance of a temporary
  restraining order or a temporary injunction; or
               (3)  provide a bond for costs or a supersedeas bond on
  an appeal or petition for review. (Acts 70th Leg., R.S., Ch. 1017,
  Sec. 5.09.)
         Sec. 1034.109.  COST OF RELOCATING OR ALTERING PROPERTY. In
  exercising the power of eminent domain, if the board requires
  relocating, raising, lowering, rerouting, changing the grade, or
  altering the construction of any railroad, highway, pipeline, or
  electric transmission and electric distribution, telegraph, or
  telephone line, conduit, pole, or facility, the district must bear
  the actual cost of relocating, raising, lowering, rerouting,
  changing the grade, or altering the construction to provide
  comparable replacement without enhancement of facilities, after
  deducting the net salvage value derived from the old facility.
  (Acts 70th Leg., R.S., Ch. 1017, Sec. 5.10.)
         Sec. 1034.110.  GIFTS AND ENDOWMENTS. The board may accept
  for the district a gift or endowment to be held in trust for any
  purpose and under any direction, limitation, or other provision
  prescribed in writing by the donor that is consistent with the
  proper management of the district.  (Acts 70th Leg., R.S., Ch. 1017,
  Sec. 5.14.)
         Sec. 1034.111.  CONSTRUCTION CONTRACTS. (a)  The board may
  enter into construction contracts for the district.
         (b)  The board may enter into a construction contract that
  involves the expenditure of more than the amount provided by
  Section 271.024, Local Government Code, only after competitive
  bidding as provided by Subchapter B, Chapter 271, Local Government
  Code. (Acts 70th Leg., R.S., Ch. 1017, Sec. 5.07(a).)
         Sec. 1034.112.  OPERATING AND MANAGEMENT CONTRACTS. The
  board may enter into an operating or management contract relating
  to a hospital facility for the district. (Acts 70th Leg., R.S., Ch.
  1017, Sec. 5.08.)
         Sec. 1034.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  SERVICES. The board may contract with a political subdivision of
  this state or with a state or federal agency for the district to:
               (1)  furnish a mobile emergency medical service; or
               (2)  provide for the investigatory or welfare needs of
  district inhabitants.  (Acts 70th Leg., R.S., Ch. 1017, Sec. 5.13.)
         Sec. 1034.114.  PAYMENT FOR TREATMENT; PROCEDURES.
  (a)  When an individual who resides in the district is admitted as a
  patient to a district facility, the district administrator may have
  an inquiry made into the financial circumstances of:
               (1)  the patient; and
               (2)  a relative of the patient legally responsible for
  the patient's support.
         (b)  To the extent that the patient or the relative of the
  patient legally responsible for the patient's support cannot pay
  for care and treatment provided by the district, the district shall
  supply the care and treatment without charging the patient or the
  relative.
         (c)  On determining that the patient or a relative legally
  responsible for the patient's support can pay for all or part of the
  care and treatment provided by the district, the district
  administrator shall report that determination to the board, and the
  board shall issue an order directing the patient or the relative to
  pay the district a specified amount each week. The amount must be
  based on the individual's ability to pay.
         (d)  The district administrator may collect money owed to the
  district from the patient's estate or from the estate of a relative
  legally responsible for the patient's support in the manner
  provided by law for the collection of expenses in the last illness
  of a deceased person.
         (e)  If there is a dispute relating to an individual's
  ability to pay or if the district administrator has any doubt
  concerning an individual's ability to pay, the board shall:
               (1)  call witnesses;
               (2)  hear and resolve the question; and
               (3)  issue a final order.
         (f)  The final order of the board may be appealed to a
  district court in Hall County. The substantial evidence rule
  applies to the appeal. (Acts 70th Leg., R.S., Ch. 1017, Secs.
  5.11(b), (c), (d), (e), (f).)
         Sec. 1034.115.  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 Hall County to
  reimburse the district for the district's care and treatment of a
  person confined in a jail facility of Hall County who is not a
  district resident.
         (c)  On behalf of the district, the board may contract with
  the state or federal government for that government to reimburse
  the district for treatment of a sick or injured person. (Acts 70th
  Leg., R.S., Ch. 1017, Sec. 5.12.)
         Sec. 1034.116.  AUTHORITY TO SUE AND BE SUED. The board may
  sue and be sued on behalf of the district. (Acts 70th Leg., R.S.,
  Ch. 1017, Sec. 5.15.)
  [Sections 1034.117-1034.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 1034.151.  BUDGET. (a) The district administrator
  shall prepare a proposed annual budget for the district.
         (b)  The proposed budget must contain a complete financial
  statement, including a statement of:
               (1)  the outstanding obligations of the district;
               (2)  the amount of cash on hand to the credit of each
  district fund;
               (3)  the amount of money received by the district from
  all sources during the previous year;
               (4)  the amount of money available to the district from
  all sources during the ensuing year;
               (5)  the amount of the balances expected at the end of
  the year in which the budget is being prepared;
               (6)  the estimated amount of revenue and balances
  available to cover the proposed budget; and
               (7)  the estimated tax rate required. (Acts 70th Leg.,
  R.S., Ch. 1017, Sec. 6.04.)
         Sec. 1034.152.  NOTICE; HEARING; ADOPTION OF BUDGET. (a)
  The board shall hold a public hearing on the proposed annual budget.
         (b)  The board shall publish notice of the hearing in a
  newspaper of general circulation in the district not later than the
  10th day before the date of the hearing.
         (c)  Any district resident is entitled to be present and
  participate at the hearing.
         (d)  At the conclusion of the hearing, the board shall adopt
  a budget by acting on the budget proposed by the district
  administrator. The board may make any changes in the proposed
  budget that the board judges to be in the interests of the
  taxpayers.
         (e)  The budget is effective only after adoption by the
  board. (Acts 70th Leg., R.S., Ch. 1017, Sec. 6.05.)
         Sec. 1034.153.  AMENDMENTS TO BUDGET. After the annual
  budget is adopted, the budget may be amended on the board's
  approval. (Acts 70th Leg., R.S., Ch. 1017, Sec. 6.06.)
         Sec. 1034.154.  RESTRICTION ON EXPENDITURES. Money may be
  spent only for an expense included in the annual budget or an
  amendment to the budget. (Acts 70th Leg., R.S., Ch. 1017, Sec.
  6.07.)
         Sec. 1034.155.  FISCAL YEAR. (a) The district operates
  according to a fiscal year established by the board.
         (b)  The fiscal year may not be changed:
               (1)  during a period that revenue bonds of the district
  are outstanding; or
               (2)  more than once in a 24-month period. (Acts 70th
  Leg., R.S., Ch. 1017, Sec. 6.01.)
         Sec. 1034.156.  ANNUAL AUDIT. The board annually shall have
  an audit made of the district's financial condition. (Acts 70th
  Leg., R.S., Ch. 1017, Sec. 6.02.)
         Sec. 1034.157.  INSPECTION OF ANNUAL AUDIT AND DISTRICT
  RECORDS. The annual audit and other district records shall be open
  to inspection during regular business hours at the district's
  principal office. (Acts 70th Leg., R.S., Ch. 1017, Sec. 6.03.)
         Sec. 1034.158.  FINANCIAL REPORT. As soon as practicable
  after the close of the fiscal year, the district administrator
  shall prepare for the board:
               (1)  a sworn statement of the amount of district money;
  and
               (2)  an account of the disbursements of that money.
  (Acts 70th Leg., R.S., Ch. 1017, Sec. 6.08.)
         Sec. 1034.159.  DEPOSITORY. (a) The board shall select at
  least one bank to serve as a depository for district money.
         (b)  District money, other than money invested as provided by
  Section 1034.160(b) and money transmitted to a bank for payment of
  bonds or obligations issued or assumed by the district, shall be
  deposited as received with the depository bank and shall remain on
  deposit.  This subsection does not limit the power of the board to:
               (1)  place a part of district money on time deposit; or
               (2)  purchase certificates of deposit.  (Acts 70th
  Leg., R.S., Ch. 1017, Secs. 6.10(a), (b).)
         Sec. 1034.160.  SPENDING AND INVESTMENT RESTRICTIONS. (a)
  Except as provided by Sections 1034.111, 1034.201, 1034.204, and
  1034.205, the district may not incur a debt payable from district
  revenue other than the revenue on hand or to be on hand in the
  current and immediately following district fiscal years.
         (b)  The board may invest operating, depreciation, or
  building reserves only in funds or securities specified by Chapter
  2256, Government Code. (Acts 70th Leg., R.S., Ch. 1017, Sec. 6.09.)
  [Sections 1034.161-1034.200 reserved for expansion]
  SUBCHAPTER E.  BONDS
         Sec. 1034.201.  GENERAL OBLIGATION BONDS. If authorized by
  an election, the board may issue and sell general obligation bonds
  in the name and on the faith and credit of the district to:
               (1)  purchase, construct, acquire, repair, or renovate
  buildings or improvements;
               (2)  equip buildings or improvements for hospital
  purposes; or
               (3)  acquire and operate a mobile emergency medical
  service. (Acts 70th Leg., R.S., Ch. 1017, Sec. 7.01.)
         Sec. 1034.202.  TAX TO PAY GENERAL OBLIGATION BONDS. (a) At
  the time general obligation bonds are issued by the district, the
  board shall impose an ad valorem tax at a rate sufficient to create
  an interest and sinking fund to pay the principal of and interest on
  the bonds as the bonds mature.
         (b)  The tax required by this section together with any other
  ad valorem tax the district imposes may not in any year exceed the
  limit approved by the voters at the election authorizing the
  imposition of the tax. (Acts 70th Leg., R.S., Ch. 1017, Sec. 7.02.)
         Sec. 1034.203.  GENERAL OBLIGATION BOND ELECTION. (a) The
  district may issue general obligation bonds only if the bonds are
  authorized by a majority of the district voters voting at an
  election held for that purpose.
         (b)  The board may order a bond election.
         (c)  The order calling the election must specify:
               (1)  the nature and date of the election;
               (2)  the hours during which the polls will be open;
               (3)  the location of the polling places;
               (4)  the amount of the bonds to be authorized; and
               (5)  the maximum maturity of the bonds.
         (d)  Notice of a bond election shall be given as provided by
  Section 1251.003, Government Code.
         (e)  The board shall declare the results of the election.
  (Acts 70th Leg., R.S., Ch. 1017, Sec. 7.03.)
         Sec. 1034.204.  REVENUE BONDS. (a) The board may issue
  revenue bonds to:
               (1)   purchase, construct, acquire, repair, renovate,
  or equip buildings or improvements for hospital purposes;
               (2)  acquire sites to be used for hospital purposes; or
               (3)  acquire and operate a mobile emergency medical
  service to assist the district in carrying out its hospital
  purposes.
         (b)  The bonds must be payable from and secured by a pledge of
  all or part of the revenue derived from the operation of the
  district's hospital system.
         (c)  The bonds may be additionally secured by a mortgage or
  deed of trust lien on all or part of district property.
         (d)  The bonds must be issued in the manner provided by
  Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
  Health and Safety Code, for issuance of revenue bonds by a county
  hospital authority. (Acts 70th Leg., R.S., Ch. 1017, Sec. 7.04.)
         Sec. 1034.205.  REFUNDING BONDS. (a) The board may issue
  refunding bonds to refund outstanding indebtedness issued or
  assumed by the district.
         (b)  Refunding bonds may be:
               (1)  sold, with the proceeds of the refunding bonds
  applied to the payment of outstanding indebtedness; or
               (2)  exchanged wholly or partly for not less than a
  similar principal amount of outstanding indebtedness. (Acts 70th
  Leg., R.S., Ch. 1017, Secs. 7.05(a), (c) (part).)
         Sec. 1034.206.  MATURITY OF BONDS. District bonds must
  mature not later than 50 years after the date of issuance. (Acts
  70th Leg., R.S., Ch. 1017, Sec. 7.06 (part).)
         Sec. 1034.207.  EXECUTION OF BONDS. The board president
  shall execute district bonds in the district's name, and the board
  secretary shall countersign the bonds in the manner provided by
  Chapter 618, Government Code. (Acts 70th Leg., R.S., Ch. 1017, Sec.
  7.07.)
         Sec. 1034.208.  BONDS EXEMPT FROM TAXATION. The following
  are exempt from taxation by this state or by a political subdivision
  of this state:
               (1)  bonds issued by the district;
               (2)  any transaction relating to the bonds; and
               (3)  profits made in the sale of the bonds. (Acts 70th
  Leg., R.S., Ch. 1017, Sec. 7.11 (part).)
  [Sections 1034.209-1034.250 reserved for expansion]
  SUBCHAPTER F. TAXES
         Sec. 1034.251.  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)  district maintenance and operating expenses.
         (c)  The district may not impose a tax to pay the principal of
  or interest on revenue bonds issued under this chapter. (Acts 70th
  Leg., R.S., Ch. 1017, Secs. 8.01(a) (part), (c), (d), 8.02(b).)
         Sec. 1034.252.  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)  Unless the rate is increased as provided by Section
  1034.253, the tax rate for all purposes may not exceed 20 cents on
  each $100 valuation of all taxable property in the district.
         (c)  In setting the tax rate, the board shall consider the
  income of the district from sources other than taxation. (Acts 70th
  Leg., R.S., Ch. 1017, Secs. 8.01(a) (part), (b), 8.03 (part).)
         Sec. 1034.253.  ELECTION TO INCREASE MAXIMUM TAX RATE. (a)
  The board may order an election to increase the district's maximum
  tax rate to 75 cents on each $100 valuation of taxable property in
  the district. The board shall order the election if the board
  receives a petition requesting an election that is signed by at
  least 50 qualified voters in the district.
         (b)  The ballot for the election shall be printed to permit
  voting for or against the proposition: "The imposition of annual
  taxes by the district for hospital purposes at a rate not to exceed
  75 cents on the $100 valuation of all taxable property in the
  district."
         (c)  If the board finds that the election results favor the
  proposition, the board may impose taxes as authorized by the
  proposition. If the board finds that the election results do not
  favor the proposition, another election on the question of
  increasing the district's maximum tax rate may not be held before
  the first anniversary of the date of the most recent election at
  which voters disapproved the proposition.
         (d)  Section 41.001(a), Election Code, does not apply to an
  election ordered under this section. (Acts 70th Leg., R.S., Ch.
  1017, Secs. 8.01A(a), (b) (part), (c) (part), (d) (part).)
         Sec. 1034.254.  TAX ASSESSOR-COLLECTOR. The board may
  provide for the appointment of a tax assessor-collector for the
  district or may contract for the assessment and collection of taxes
  as provided by the Tax Code. (Acts 70th Leg., R.S., Ch. 1017, Sec. 8.04(b).)
 
  CHAPTER 1058.  MCCAMEY COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A.  GENERAL PROVISIONS
  Sec. 1058.001.  DEFINITIONS 
  Sec. 1058.002.  AUTHORITY FOR CREATION 
  Sec. 1058.003.  POLITICAL SUBDIVISION 
  Sec. 1058.004.  DISTRICT TERRITORY 
  Sec. 1058.005.  CONSOLIDATION OF DISTRICT AND RANKIN
                   COUNTY HOSPITAL DISTRICT 
  [Sections 1058.006-1058.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1058.051.  BOARD ELECTION; TERM 
  Sec. 1058.052.  NOTICE OF ELECTION 
  Sec. 1058.053.  QUALIFICATIONS FOR OFFICE 
  Sec. 1058.054.  BOND; RECORD OF BOND AND OATH 
  Sec. 1058.055.  BOARD VACANCY 
  Sec. 1058.056.  OFFICERS 
  Sec. 1058.057.  VOTING REQUIREMENT 
  Sec. 1058.058.  RECORDS OF PROCEEDINGS 
  Sec. 1058.059.  DISTRICT ADMINISTRATOR 
  Sec. 1058.060.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1058.061.  ASSISTANT TO DISTRICT ADMINISTRATOR 
  Sec. 1058.062.  LEGAL COUNSEL 
  Sec. 1058.063.  RETIREMENT PROGRAM 
  Sec. 1058.064.  MAINTENANCE OF RECORDS; PUBLIC
                   INSPECTION 
  Sec. 1058.065.  SEAL 
  [Sections 1058.066-1058.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
  Sec. 1058.101.  DISTRICT RESPONSIBILITY 
  Sec. 1058.102.  RESTRICTION ON COUNTY OR MUNICIPAL
                   TAXATION 
  Sec. 1058.103.  MANAGEMENT AND CONTROL OF DISTRICT 
  Sec. 1058.104.  EMINENT DOMAIN 
  Sec. 1058.105.  GIFTS AND ENDOWMENTS 
  Sec. 1058.106.  AWARD OF CERTAIN CONTRACTS 
  Sec. 1058.107.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR CARE AND TREATMENT 
  Sec. 1058.108.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1058.109.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1058.110-1058.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
  Sec. 1058.151.  BUDGET 
  Sec. 1058.152.  PROPOSED BUDGET: NOTICE AND HEARING 
  Sec. 1058.153.  FISCAL YEAR 
  Sec. 1058.154.  ANNUAL AUDIT 
  Sec. 1058.155.  FINANCIAL REPORT 
  Sec. 1058.156.  DEPOSITORY 
  [Sections 1058.157-1058.200 reserved for expansion]
  SUBCHAPTER E. BONDS
  Sec. 1058.201.  GENERAL OBLIGATION BONDS 
  Sec. 1058.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1058.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1058.204.  MATURITY OF GENERAL OBLIGATION BONDS 
  Sec. 1058.205.  EXECUTION OF GENERAL OBLIGATION BONDS 
  [Sections 1058.206-1058.250 reserved for expansion]
  SUBCHAPTER F.  TAXES
  Sec. 1058.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1058.252.  TAX RATE 
  Sec. 1058.253.  ASSESSMENT AND COLLECTION BY COUNTY TAX
                   ASSESSOR-COLLECTOR 
  Sec. 1058.254.  ELECTION FOR SEPARATE TAX ASSESSOR AND
                   TAX COLLECTOR 
  Sec. 1058.255.  APPOINTMENT OF SEPARATE TAX ASSESSOR
                   AND COLLECTOR 
  CHAPTER 1058.  MCCAMEY COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 1058.001.  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 McCamey County Hospital
  District.  (New.)
         Sec. 1058.002.  AUTHORITY FOR CREATION. The McCamey 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 60th Leg., R.S., Ch. 183,
  Sec. 1 (part).)
         Sec. 1058.003.  POLITICAL SUBDIVISION. The district is a
  political subdivision of this state. (Acts 60th Leg., R.S., Ch.
  183, Sec. 21 (part).)
         Sec. 1058.004.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of the McCamey
  Independent School District, as those boundaries existed on January
  1, 1967.  (Acts 60th Leg., R.S., Ch. 183, Sec. 1 (part).)
         Sec. 1058.005.  CONSOLIDATION OF DISTRICT AND RANKIN COUNTY
  HOSPITAL DISTRICT. (a) The McCamey County Hospital District may be
  consolidated into the Rankin County Hospital District as provided
  by this section.
         (b)  On the request of 25 percent or more of the qualified
  taxpaying voters of each hospital district, the commissioners court
  of Upton County shall submit the consolidation proposal for vote.
         (c)  Consolidation of the district and the Rankin County
  Hospital District must be separately approved by a two-thirds
  majority of the voters voting in each hospital district at an
  election ordered and held for that purpose.
         (d)  At the consolidation election, five directors shall be
  elected to serve the consolidated district.
         (e)  Not more than one consolidation election may be held
  after each general election.
         (f)  Refunding bonds may be issued by the consolidated
  district to refund any outstanding bonds, including bonds issued by
  the district on consolidation, original bonds, and refunding bonds.  
  Additional funding may be provided as authorized by this chapter.
  (Acts 60th Leg., R.S., Ch. 183, Sec. 18.)
  [Sections 1058.006-1058.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1058.051.  BOARD ELECTION; TERM. (a) The board
  consists of five directors elected by the district voters.
         (b)  Unless four-year terms are established under Section
  285.081, Health and Safety Code, directors serve staggered two-year
  terms with the terms of two or three directors expiring each year as
  appropriate.  (Acts 60th Leg., R.S., Ch. 183, Sec. 3 (part).)
         Sec. 1058.052.  NOTICE OF ELECTION. At least 30 days before
  the date of a directors' election, notice of the election must be
  published one time in a newspaper of general circulation in Upton
  County. (Acts 60th Leg., R.S., Ch. 183, Sec. 3 (part).)
         Sec. 1058.053.  QUALIFICATIONS FOR OFFICE. (a)  To qualify
  for election to the board, a person must:
               (1)  be at least 18 years of age;
               (2)  have been a resident of the district for at least
  two years;
               (3)  be a qualified voter; and
               (4)  own taxable property in the district and have duly
  rendered that property for taxation.
         (b)  An elective or appointed officer of this state or a
  political subdivision, including Upton County, is not qualified for
  election to the board.  (Acts 60th Leg., R.S., Ch. 183, Sec. 3
  (part).)
         Sec. 1058.054.  BOND; RECORD OF BOND AND OATH. (a) Each
  director shall qualify 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 of office
  must be deposited with the district's depository bank for
  safekeeping. (Acts 60th Leg., R.S., Ch. 183, Sec. 3 (part).)
         Sec. 1058.055.  BOARD VACANCY. (a) The remaining directors
  by appointment shall fill a vacancy in the office of director.
         (b)  An appointed replacement serves until the next election
  for directors.  An elected director serves only for the remainder of
  the unexpired term. (Acts 60th Leg., R.S., Ch. 183, Sec. 3 (part).)
         Sec. 1058.056.  OFFICERS. (a) The board shall elect a
  presiding officer.
         (b)  A presiding officer pro tem shall preside in the absence
  of the presiding officer.
         (c)  The district administrator or any director may be
  appointed secretary. (Acts 60th Leg., R.S., Ch. 183, Sec. 3
  (part).)
         Sec. 1058.057.  VOTING REQUIREMENT. A concurrence of three
  directors is sufficient in any matter relating to district
  business. (Acts 60th Leg., R.S., Ch. 183, Sec. 3 (part).)
         Sec. 1058.058.  RECORDS OF PROCEEDINGS. (a) The board shall
  require the board secretary to keep suitable records of all
  proceedings of each board meeting.
         (b)  After each meeting:
               (1)  the member presiding at the meeting shall read and
  sign the record; and
               (2)  the board secretary shall attest the record.
  (Acts 60th Leg., R.S., Ch. 183, Sec. 3 (part).)
         Sec. 1058.059.  DISTRICT ADMINISTRATOR. (a) The board
  shall appoint a general manager to be known as the district
  administrator.
         (b)  The district administrator must be a qualified
  practitioner of medicine or be specifically trained for work of
  that type.  The district administrator may not be a director.
         (c)  The district administrator receives the compensation
  determined by the board.
         (d)  The district administrator serves at the pleasure of the
  board, and the board may remove the district administrator at any
  time.
         (e)  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 any other condition the board requires.
  (Acts 60th Leg., R.S., Ch. 183, Sec. 4 (part).)
         Sec. 1058.060.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.  
  Subject to any 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. 183, Sec. 4 (part).)
         Sec. 1058.061.  ASSISTANT TO DISTRICT ADMINISTRATOR. (a)
  The board may designate an assistant to the district administrator
  to discharge a duty or function of the administrator in the event of
  the administrator's incapacity, absence, or inability to discharge
  the duty or function.
         (b)  The assistant shall post the bond required by board
  order.
         (c)  The assistant is subject to any limitations prescribed
  by board order.  (Acts 60th Leg., R.S., Ch. 183, Sec. 5.)
         Sec. 1058.062.  LEGAL COUNSEL.  The board may employ legal
  counsel to represent the district in all legal matters.  (Acts 60th
  Leg., R.S., Ch. 183, Sec. 20.)
         Sec. 1058.063.  RETIREMENT PROGRAM. (a)  With the approval
  of the commissioners court of Upton County, the board may contract
  with this state or the federal government as necessary to establish
  or continue a retirement program for the benefit of district
  employees.
         (b)  The board may establish other retirement programs for
  the benefit of district employees as it considers necessary and
  advisable.  (Acts 60th Leg., R.S., Ch. 183, Sec. 4 (part).)
         Sec. 1058.064.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.
  All district records, including books, accounts, notices, and
  minutes, and all other matters of the district and the operation of
  its facilities shall be:
               (1)  maintained at the district office; and
               (2)  open to public inspection at the district office
  at all reasonable hours. (Acts 60th Leg., R.S., Ch. 183, Sec. 9
  (part).)
         Sec. 1058.065.  SEAL. The board shall have a seal engraved
  with the district's name to authenticate the board's acts. The
  board secretary shall keep the seal. (Acts 60th Leg., R.S., Ch.
  183, Sec. 3 (part).)
  [Sections 1058.066-1058.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 1058.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for providing medical and hospital care for the
  district's needy and indigent residents.  (Acts 60th Leg., R.S.,
  Ch. 183, Sec. 11 (part).)
         Sec. 1058.102.  RESTRICTION ON COUNTY OR MUNICIPAL TAXATION.
  Any part of a county or a municipality, any part of which is in the
  district, may not impose a tax for hospital purposes. (Acts 60th
  Leg., R.S., Ch. 183, Sec. 11 (part).)
         Sec. 1058.103.  MANAGEMENT AND CONTROL OF DISTRICT. The
  management and control of the district is vested in the board.  
  (Acts 60th Leg., R.S., Ch. 183, Sec. 3 (part).)
         Sec. 1058.104.  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 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 otherwise
  required 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. 183,
  Sec. 17.)
         Sec. 1058.105.  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 any
  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. 183,
  Sec. 16.)
         Sec. 1058.106.  AWARD OF CERTAIN CONTRACTS. (a) The board,
  on behalf of the district, may enter into a contract that exceeds
  $2,000 only with the lowest qualified bidder.
         (b)  Before awarding a contract under this section, notice
  must be given by:
               (1)  advertising in one or more newspapers of general
  circulation in this state, once a week for four weeks; and
               (2)  posting a notice for at least 25 days at four
  public places in Upton County, including:
                     (A)  at the courthouse door; and
                     (B)  in at least two other places in the district.
         (c)  On application by a person who wants to bid on the
  contract, the board shall provide to the person:
               (1)  a copy of the plans and specifications; or
               (2)  other data necessary to make the bid.
         (d)  A bid under this section must be in writing, sealed, and
  delivered to the presiding officer of the board together with a
  certified check for at least five percent of the total amount of the
  bid.
         (e)  If the bidder's bid is accepted but the bidder refuses a
  proper contract with the board, the certified check required by
  Subsection (d) is forfeited to the district.
         (f)  The board may reject a bid under this section that the
  board considers too high. (Acts 60th Leg., R.S., Ch. 183, Sec. 13
  (part).)
         Sec. 1058.107.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  CARE AND TREATMENT.  With the approval of the commissioners court
  of Upton County, the board may contract with:
               (1)  a county other than Upton County for the care and
  treatment of sick or injured persons of that county; and
               (2)  this state or a federal agency for the care and
  treatment of a sick or injured person for whom this state or the
  federal government is responsible. (Acts 60th Leg., R.S., Ch. 183,
  Sec. 4 (part).)
         Sec. 1058.108.  PAYMENT FOR TREATMENT; PROCEDURES. (a) When
  a patient from the district is admitted to a district facility, the
  district administrator shall have an inquiry made into the
  circumstances of:
               (1)  the patient; and
               (2)  the patient's relatives legally liable for the
  patient's support.
         (b)  If the district administrator determines that the
  patient or those relatives cannot pay for all or part of the
  patient's care and treatment in the hospital, the expense of that
  care becomes a charge against the district.
         (c)  If the district administrator determines that the
  patient or those relatives are liable to pay for all or part of the
  patient's care and treatment, the patient or those relatives shall
  be ordered to pay the district's treasurer a specified amount each
  week for the patient's support. The amount ordered must be
  proportionate to the 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 those relatives 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, or a doubt in the district
  administrator's mind, as to the ability to pay, the board shall hold
  a hearing and, after calling witnesses, shall:
               (1)  resolve the dispute or doubt; and
               (2)  issue any appropriate order.
         (f)  Either party to the dispute may appeal the district's
  order to the district court. The appeal is by trial de novo as that
  term is used in appeals from the justice courts to the county
  courts. (Acts 60th Leg., R.S., Ch. 183, Sec. 15.)
         Sec. 1058.109.  AUTHORITY TO SUE AND BE SUED. As a
  governmental agency, the district may sue and be sued in the
  district's own name in any court of this state. (Acts 60th Leg.,
  R.S., Ch. 183, Sec. 21 (part).)
  [Sections 1058.110-1058.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 1058.151.  BUDGET. The board annually shall require a
  budget to be prepared for the next fiscal year that includes:
               (1)  proposed expenditures and disbursements;
               (2)  estimated receipts and collections; and
               (3)  the amount of taxes required to be imposed for the
  year. (Acts 60th Leg., R.S., Ch. 183, Sec. 9 (part).)
         Sec. 1058.152.  PROPOSED BUDGET: NOTICE AND HEARING. (a)
  The board shall hold a public hearing on the proposed budget.
         (b)  Notice of the hearing must be published at least once in
  a newspaper of general circulation in Upton County not later than
  the 10th day before the date of the hearing.
         (c)  Any district taxpayer is entitled to:
               (1)  appear at the time and place designated in the
  notice; and
               (2)  be heard regarding any item included in the
  proposed budget. (Acts 60th Leg., R.S., Ch. 183, Sec. 9 (part).)
         Sec. 1058.153.  FISCAL YEAR. The district's fiscal year
  begins on October 1 and ends on September 30.  (Acts 60th Leg.,
  R.S., Ch. 183, Sec. 9 (part).)
         Sec. 1058.154.  ANNUAL AUDIT. (a) The board annually shall
  have an independent audit made of the district's books and records
  for the preceding fiscal year.
         (b)  Not later than December 31 of each year, the audit shall
  be filed:
               (1)  with the county clerk of Upton County; and
               (2)  at the district office. (Acts 60th Leg., R.S., Ch.
  183, Sec. 9 (part).)
         Sec. 1058.155.  FINANCIAL REPORT. (a) The board and the
  district administrator shall annually prepare a report under oath
  that includes:
               (1)  a complete statement of:
                     (A)  all money and choses in action; and
                     (B)  how the money and choses in action were
  disbursed or otherwise disposed;
               (2)  the details of district operation during the
  preceding fiscal year; and
               (3)  a full and complete list of all delinquent
  accounts owing and due the district, including names and addresses
  of delinquent debtors.
         (b)  The report shall be filed in:
               (1)  the district office; and
               (2)  the office of the county clerk of Upton County.
  (Acts 60th Leg., R.S., Ch. 183, Sec. 9 (part).)
         Sec. 1058.156.  DEPOSITORY. (a) The board shall designate
  one or more banks in the district to serve as a depository for
  district money.
         (b)  All district money shall be immediately deposited on
  receipt with a depository bank, except that sufficient money must
  be remitted to an appropriate bank to pay the principal of and
  interest on the district's outstanding bonds, or other obligations
  assumed by the district, 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 that bank from being
  designated as depository.  (Acts 60th Leg., R.S., Ch. 183, Secs. 6
  (part), 10.)
  [Sections 1058.157-1058.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 1058.201.  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 the purchase,
  construction, acquisition, repair, or renovation of buildings or
  improvements and equipping buildings or improvements for hospital
  purposes. (Acts 60th Leg., R.S., Ch. 183, Sec. 7 (part).)
         Sec. 1058.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  
  The board shall impose an ad valorem tax at a rate sufficient to
  create an interest and sinking fund to pay the principal of and
  interest on general obligation bonds issued under Section 1058.201
  as the bonds mature.
         (b)  The tax required by this section together with any other
  ad valorem tax imposed for the district may not in any year exceed
  75 cents on each $100 valuation of all taxable property in the
  district. (Acts 60th Leg., R.S., Ch. 183, Secs. 6 (part), 7
  (part).)
         Sec. 1058.203.  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 on its own motion.
         (c)  The order must specify:
               (1)  the location of the polling places;
               (2)  the presiding election officers;
               (3)  the purpose for which the bonds are to be issued;
               (4)  the amount of the bonds;
               (5)  the maximum interest rate of the bonds; and
               (6)  the maximum maturity date of the bonds.
         (d)  Notice of a bond election shall be given by publishing a
  substantial copy of the order in a newspaper of general circulation
  in the district once each week for two consecutive weeks before the
  date of the election. The first publication must occur at least 20
  days before the date set for the election. (Acts 60th Leg., R.S.,
  Ch. 183, Sec. 7 (part).)
         Sec. 1058.204.  MATURITY OF GENERAL OBLIGATION BONDS.
  District general obligation bonds must mature not later than 40
  years after the date of issuance. (Acts 60th Leg., R.S., Ch. 183,
  Sec. 7 (part).)
         Sec. 1058.205.  EXECUTION OF GENERAL OBLIGATION BONDS. (a)
  The board's presiding officer shall execute the general obligation
  bonds in the district's name.
         (b)  The board secretary shall countersign the bonds. (Acts
  60th Leg., R.S., Ch. 183, Sec. 7 (part).)
  [Sections 1058.206-1058.250 reserved for expansion]
  SUBCHAPTER F.  TAXES
         Sec. 1058.251.  IMPOSITION OF AD VALOREM TAX. (a) On final
  approval of the budget, the board shall impose a tax on all taxable
  property in the district subject to district taxation.
         (b)  The board shall impose the tax to:
               (1)  pay the interest on and create a sinking fund for
  bonds issued or assumed by the district for hospital purposes as
  provided by this chapter;
               (2)  provide for the maintenance and operation of the
  hospital or hospital system;
               (3)  make improvements and additions to the district's
  hospital system; and
               (4)  acquire necessary sites for the hospital system by
  purchase, lease, or condemnation. (Acts 60th Leg., R.S., Ch. 183,
  Secs. 6 (part), 9 (part).)
         Sec. 1058.252.  TAX RATE. The board shall impose the tax at
  a rate not to exceed 75 cents on each $100 valuation of all taxable
  property in the district. (Acts 60th Leg., R.S., Ch. 183, Secs. 2
  (part), 6 (part).)
         Sec. 1058.253.  ASSESSMENT AND COLLECTION BY COUNTY TAX
  ASSESSOR-COLLECTOR. Unless an election is held under Section
  1058.254, the tax assessor-collector of Upton County shall assess
  and collect taxes imposed by the district. (Acts 60th Leg., R.S.,
  Ch. 183, Secs. 6 (part), 9 (part).)
         Sec. 1058.254.  ELECTION FOR SEPARATE TAX ASSESSOR AND TAX
  COLLECTOR. (a) On receipt of a petition signed by a number of
  district voters equal to at least five percent of the taxpaying
  voters of the district, the court may order an election to determine
  whether the district shall have a separate tax assessor and tax
  collector for the assessment and collection of district taxes.
         (b)  Notice of the election shall be given as required by
  Section 1058.052. (Acts 60th Leg., R.S., Ch. 183, Sec. 19 (part).)
         Sec. 1058.255.  APPOINTMENT OF SEPARATE TAX ASSESSOR AND
  COLLECTOR. If the appointment of a separate tax assessor and
  separate tax collector is approved by a two-thirds majority vote of
  the district voters voting at an election held under Section
  1058.254, the board shall appoint:
               (1)  a suitable person as tax assessor; and
               (2)  a suitable person as tax collector. (Acts 60th Leg., R.S., Ch. 183, Sec. 19 (part).)
 
  CHAPTER 1069. NACOGDOCHES COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1069.001.  DEFINITIONS 
  Sec. 1069.002.  AUTHORITY FOR OPERATION 
  Sec. 1069.003.  ESSENTIAL PUBLIC FUNCTION 
  Sec. 1069.004.  DISTRICT TERRITORY 
  Sec. 1069.005.  DISTRICT SUPPORT AND MAINTENANCE NOT
                   STATE OBLIGATION 
  Sec. 1069.006.  RESTRICTION ON STATE FINANCIAL
                   ASSISTANCE 
  [Sections 1069.007-1069.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1069.051.  BOARD ELECTION; TERM 
  Sec. 1069.052.  NOTICE OF ELECTION 
  Sec. 1069.053.  BALLOT PETITION 
  Sec. 1069.054.  QUALIFICATIONS FOR OFFICE 
  Sec. 1069.055.  BOARD VACANCY 
  Sec. 1069.056.  OFFICERS 
  Sec. 1069.057.  QUORUM; VOTING REQUIREMENT 
  Sec. 1069.058.  DISTRICT ADMINISTRATOR; ASSISTANT
                   ADMINISTRATOR 
  Sec. 1069.059.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1069.060.  APPOINTMENT OF STAFF AND EMPLOYEES 
  Sec. 1069.061.  RETIREMENT BENEFITS 
  [Sections 1069.062-1069.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1069.101.  DISTRICT RESPONSIBILITY 
  Sec. 1069.102.  RESTRICTION ON POLITICAL SUBDIVISION
                   TAXATION AND DEBT 
  Sec. 1069.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
  Sec. 1069.104.  HOSPITAL SYSTEM 
  Sec. 1069.105.  RULES 
  Sec. 1069.106.  PURCHASING AND ACCOUNTING PROCEDURES 
  Sec. 1069.107.  DISTRICT PROPERTY, FACILITIES, AND
                   EQUIPMENT 
  Sec. 1069.108.  EMINENT DOMAIN 
  Sec. 1069.109.  GIFTS AND ENDOWMENTS 
  Sec. 1069.110.  CHARITABLE ORGANIZATION 
  Sec. 1069.111.  NONPROFIT CORPORATION 
  Sec. 1069.112.  CONSTRUCTION OR EQUIPMENT PURCHASE
                   CONTRACTS 
  Sec. 1069.113.  OPERATING AND MANAGEMENT CONTRACTS 
  Sec. 1069.114.  CONTRACTS FOR CARE AND TREATMENT 
  Sec. 1069.115.  CONTRACTS WITH POLITICAL SUBDIVISION
                   FOR SERVICES 
  Sec. 1069.116.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1069.117.  REIMBURSEMENT FOR SERVICE 
  Sec. 1069.118.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1069.119-1069.150 reserved for expansion]
  SUBCHAPTER D. CHANGE IN BOUNDARIES
  Sec. 1069.151.  PETITION TO EXPAND DISTRICT TERRITORY 
  Sec. 1069.152.  HEARING 
  Sec. 1069.153.  ORDER OF ANNEXATION 
  Sec. 1069.154.  RATIFICATION ELECTION 
  Sec. 1069.155.  ASSUMPTION OF DEBT AND TAXES 
  Sec. 1069.156.  BALLOT 
  [Sections 1069.157-1069.200 reserved for expansion]
  SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
  Sec. 1069.201.  BUDGET 
  Sec. 1069.202.  NOTICE; HEARING; APPROVAL OF BUDGET 
  Sec. 1069.203.  AMENDMENTS TO BUDGET 
  Sec. 1069.204.  RESTRICTION ON EXPENDITURES 
  Sec. 1069.205.  FISCAL YEAR 
  Sec. 1069.206.  AUDIT 
  Sec. 1069.207.  INSPECTION OF AUDIT AND DISTRICT
                   RECORDS 
  Sec. 1069.208.  FINANCIAL REPORT 
  Sec. 1069.209.  DEPOSITORY 
  Sec. 1069.210.  SPENDING RESTRICTIONS 
  Sec. 1069.211.  ECONOMIC DEVELOPMENT 
  Sec. 1069.212.  AUTHORITY TO BORROW MONEY 
  [Sections 1069.213-1069.250 reserved for expansion]
  SUBCHAPTER F. BONDS AND OTHER OBLIGATIONS
  Sec. 1069.251.  GENERAL OBLIGATION BONDS 
  Sec. 1069.252.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1069.253.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1069.254.  REFUNDING BONDS 
  Sec. 1069.255.  MATURITY OF BONDS 
  Sec. 1069.256.  EXECUTION OF BONDS 
  Sec. 1069.257.  OTHER OBLIGATIONS 
  Sec. 1069.258.  BONDS EXEMPT FROM TAXATION 
  [Sections 1069.259-1069.300 reserved for expansion]
  SUBCHAPTER G. TAXES
  Sec. 1069.301.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1069.302.  TAX RATE 
  Sec. 1069.303.  ASSESSMENT AND COLLECTION BY COUNTY TAX
                   ASSESSOR-COLLECTOR 
  Sec. 1069.304.  ASSESSMENT AND COLLECTION BY DISTRICT
                   TAX ASSESSOR-COLLECTOR 
  CHAPTER 1069. NACOGDOCHES COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1069.001.  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 Nacogdoches County Hospital
  District. (New.)
         Sec. 1069.002.  AUTHORITY FOR OPERATION. The Nacogdoches
  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 60th Leg., R.S., Ch. 431,
  Sec. 1 (part).)
         Sec. 1069.003.  ESSENTIAL PUBLIC FUNCTION. The district
  performs an essential public function in carrying out the purposes
  of this chapter. (Acts 60th Leg., R.S., Ch. 431, Sec. 21 (part).)
         Sec. 1069.004.  DISTRICT TERRITORY. Unless the district's
  boundaries are expanded under Subchapter D, the boundaries of the
  district are coextensive with the boundaries of Nacogdoches County,
  Texas. (Acts 60th Leg., R.S., Ch. 431, Sec. 1 (part); New.)
         Sec. 1069.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE
  OBLIGATION. The support and maintenance of the district may not
  become a charge against or obligation of this state. (Acts 60th
  Leg., R.S., Ch. 431, Sec. 20 (part).)
         Sec. 1069.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.
  The legislature may not make a direct appropriation for the
  construction, maintenance, or improvement of a district facility.
  (Acts 60th Leg., R.S., Ch. 431, Sec. 20 (part).)
  [Sections 1069.007-1069.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1069.051.  BOARD ELECTION; TERM. (a) The board
  consists of:
               (1)  one director elected from each commissioners
  precinct; and
               (2)  three directors elected from the district at
  large.
         (b)  Unless four-year terms are established under Section
  285.081, Health and Safety Code:
               (1)  directors serve staggered two-year terms; and
               (2)  an election shall be held annually on the May
  uniform election date to elect the appropriate number of directors.
  (Acts 60th Leg., R.S., Ch. 431, Sec. 4 (part); New.)
         Sec. 1069.052.  NOTICE OF ELECTION. At least 10 days before
  the date of a directors' election, notice of the election must be
  published one time in a newspaper of general circulation in the
  county. (Acts 60th Leg., R.S., Ch. 431, Sec. 4 (part).)
         Sec. 1069.053.  BALLOT PETITION. (a)  A person who wants to
  have the person's name printed on the ballot as a candidate for
  director must file with the board secretary a petition requesting
  that action. The petition must:
               (1)  be signed by not fewer than 25 qualified voters;
               (2)  be filed by the deadline imposed by Section
  144.005, Election Code; and
               (3)  specify the commissioners precinct the person
  wants to represent or specify that the person wants to represent the
  district at large.
         (b)  The board secretary may accept the petition only if it
  is accompanied by evidence showing that the candidate has the
  qualifications required by Section 1069.054. (Acts 60th Leg., R.S.,
  Ch. 431, Sec. 4 (part).)
         Sec. 1069.054.  QUALIFICATIONS FOR OFFICE. (a) To be
  eligible to be a candidate for or to serve as a director, a person
  must be:
               (1)  a resident of the district; and
               (2)  a qualified voter.
         (b)  A director elected or appointed to represent a
  commissioners precinct must be a resident of that commissioners
  precinct.
         (c)  A district employee may not serve as a director. (Acts
  60th Leg., R.S., Ch. 431, Sec. 4 (part).)
         Sec. 1069.055.  BOARD VACANCY. (a) If a vacancy occurs in
  the office of director, the remaining directors shall appoint a
  director for the unexpired term.
         (b)  If the number of directors is reduced to fewer than four
  for any reason, the remaining directors shall immediately call a
  special election to fill the vacancies. If the remaining directors
  do not call the election, a district court, on application of a
  district voter or taxpayer, may order the directors to hold the
  election. (Acts 60th Leg., R.S., Ch. 431, Sec. 4 (part).)
         Sec. 1069.056.  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 a one-year term.
         (c)  The board shall fill a vacancy in a board office for the
  unexpired term. (Acts 60th Leg., R.S., Ch. 431, Sec. 4 (part).)
         Sec. 1069.057.  QUORUM; VOTING REQUIREMENT. (a)  Any four
  directors constitute a quorum.
         (b)  A majority of the directors voting must concur in any
  matter relating to district business. (Acts 60th Leg., R.S., Ch.
  431, Sec. 4 (part).)
         Sec. 1069.058.  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 receive the
  compensation determined by the board.
         (d)  On assuming the duties of district administrator, the
  administrator shall execute a bond payable to the district in an
  amount set by the board of not less than $5,000 that:
               (1)  is conditioned on the administrator performing the
  administrator's duties; and
               (2)  contains any other condition the board requires.
  (Acts 60th Leg., R.S., Ch. 431, Sec. 5 (part).)
         Sec. 1069.059.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
  Subject to any limitation prescribed by the board, the district
  administrator shall:
               (1)  supervise the work and activities of the district;
  and
               (2)  direct the affairs of the district. (Acts 60th
  Leg., R.S., Ch. 431, Sec. 5 (part).)
         Sec. 1069.060.  APPOINTMENT OF STAFF AND EMPLOYEES. (a) The
  board may appoint to the staff any doctors and employ any
  technician, nurse, or other employee the board considers necessary
  for the efficient operation of the district.
         (b)  The district may employ fiscal agents, accountants,
  architects, and attorneys as the board considers proper.
         (c)  The board may provide that the district administrator
  has the authority to employ district employees, including
  technicians and nurses. (Acts 60th Leg., R.S., Ch. 431, Secs. 5
  (part), 16.)
         Sec. 1069.061.  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 60th Leg., R.S., Ch.
  431, Sec. 16A.)
  [Sections 1069.062-1069.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1069.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for operating all hospital facilities for
  providing medical and hospital care for the district's needy
  inhabitants. (Acts 60th Leg., R.S., Ch. 431, Sec. 19 (part).)
         Sec. 1069.102.  RESTRICTION ON POLITICAL SUBDIVISION
  TAXATION AND DEBT. A political subdivision located within the
  district may not impose a tax or issue bonds or other obligations
  for hospital purposes or to provide medical care. (Acts 60th Leg.,
  R.S., Ch. 431, Sec. 19 (part).)
         Sec. 1069.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.
  The board shall manage, control, and administer the district's
  hospitals and hospital system. (Acts 60th Leg., R.S., Ch. 431, Sec.
  5 (part).)
         Sec. 1069.104.  HOSPITAL SYSTEM. (a) The district shall
  provide for:
               (1)  the establishment of a hospital system by:
                     (A)  purchasing, constructing, acquiring,
  repairing, or renovating buildings and equipment; and
                     (B)  equipping the buildings; and
               (2)  the administration of the hospital system for
  hospital purposes.
         (b)  The hospital system may include:
               (1)  domiciliary care and treatment of the sick,
  injured, or geriatric;
               (2)  outpatient clinics;
               (3)  dispensaries;
               (4)  convalescent home facilities;
               (5)  necessary nurses;
               (6)  domiciliaries and training centers;
               (7)  blood banks;
               (8)  community mental health centers;
               (9)  research centers or laboratories; and
               (10)  any other facilities the board considers
  necessary for hospital care. (Acts 60th Leg., R.S., Ch. 431, Secs.
  2 (part), 9(c).)
         Sec. 1069.105.  RULES. The board may adopt rules for the
  operation of the district, including rules governing:
               (1)  the operation of the hospital and hospital system;
               (2)  the duties, functions, and responsibilities of
  district staff and employees; and
               (3)  the acquisition of goods or services. (Acts 60th
  Leg., R.S., Ch. 431, Secs. 5 (part), 10(d) (part), 16B.)
         Sec. 1069.106.  PURCHASING AND ACCOUNTING PROCEDURES. (a)
  Except as provided by Section 1069.112, the board may prescribe:
               (1)  procedures for the acquisition of goods or
  services, including the method and manner of making purchases and
  expenditures by and for the district; and
               (2)  all accounting and control procedures.
         (b)  In making purchases, the board may determine the method
  of purchase that provides the best value to the district,
  including:
               (1)  competitive bidding;
               (2)  competitive sealed proposals;
               (3)  catalogue purchase;
               (4)  a group purchasing program; or
               (5)  an open market contract.
         (c)  In determining what is the best value to the district,
  the board shall consider:
               (1)  the purchase price;
               (2)  the reputation of the vendor and of the vendor's
  goods or services;
               (3)  the quality of the vendor's goods or services;
               (4)  the extent to which the goods or services meet the
  district's needs;
               (5)  the vendor's past relationship with the district;
               (6)  the total long-term cost to the district of
  acquiring the vendor's goods or services; and
               (7)  any other relevant factor that a private business
  entity would consider in selecting a vendor.
         (d)  The state auditor may audit purchases of goods or
  services by the district.
         (e)  To the extent of any conflict, this section prevails
  over any other law relating to the purchasing of goods and services.
         (f)  Chapters 2151 and 2254, Government Code, do not apply to
  purchases of goods and services made under this section.
         (g)  The board may incur an obligation, including a lease or
  lease-purchase agreement for real property, facilities, or
  equipment for use in the hospital system, payable from the pledged
  sales and use tax revenue of the district. (Acts 60th Leg., R.S.,
  Ch. 431, Secs. 10(a), (b), (c), (d) (part), (e), (f), (g).)
         Sec. 1069.107.  DISTRICT PROPERTY, FACILITIES, AND
  EQUIPMENT. (a)  The board shall determine:
               (1)  the type, number, and location of buildings
  required to maintain an adequate hospital system; and
               (2)  the type of equipment necessary for hospital care.
         (b)  The board may:
               (1)  acquire real property, facilities, and equipment
  for the district for use in the hospital system in the manner
  determined by the board;
               (2)  lease to physicians, individuals, companies,
  corporations, or other legal entities or acquire by lease or by
  lease-purchase agreement real property, facilities, or equipment
  for use in the hospital system on terms the board determines are in
  the best interest of district residents; and
               (3)  sell or otherwise dispose of district real
  property, facilities, or equipment on terms the board determines
  are in the best interest of district residents.
         (c)  The district may acquire equipment for use in the
  district's hospital system and mortgage or pledge the acquired
  property as security for the payment of the purchase price.  A
  contract entered into under this subsection must provide that the
  entire obligation be retired not later than the fifth anniversary
  of the date of the contract. (Acts 60th Leg., R.S., Ch. 431, Secs.
  9(a), (b), 10(j).)
         Sec. 1069.108.  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 to 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 that the
  district is not required to deposit in the trial court money or a
  bond as provided by Section 21.021(a), Property Code.
         (c)  In a condemnation proceeding brought by the district,
  the district is not required to:
               (1)  pay in advance or provide a bond or other security
  for costs in the trial court;
               (2)  provide a bond for the issuance of a temporary
  restraining order or a temporary injunction; or
               (3)  provide a bond for costs or a supersedeas bond on
  an appeal or petition for review. (Acts 60th Leg., R.S., Ch. 431,
  Sec. 14.)
         Sec. 1069.109.  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 any direction,
  limitation, or other provision 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. 431, Sec. 18(a).)
         Sec. 1069.110.  CHARITABLE ORGANIZATION. (a) In this
  section, "charitable organization" means an organization that is
  eligible for an exemption from federal income tax under Section
  501(a), Internal Revenue Code of 1986, by being listed as an exempt
  organization by Section 501(c)(3) or (4) of that 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 60th Leg., R.S., Ch. 431, Sec.
  18(b).)
         Sec. 1069.111.  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 60th Leg., R.S., Ch. 431, Sec. 18(c).)
         Sec. 1069.112.  CONSTRUCTION  OR EQUIPMENT PURCHASE
  CONTRACTS. A contract for construction or the purchase of
  equipment that involves the expenditure of more than $25,000 may be
  made only after advertising in the manner provided by Subchapter B,
  Chapter 271, Local Government Code. (Acts 60th Leg., R.S., Ch. 431,
  Sec. 10(i) (part).)
         Sec. 1069.113.  OPERATING AND MANAGEMENT CONTRACTS. The
  district, through its board, may enter into an operating or
  management contract relating to a district facility. (Acts 60th
  Leg., R.S., Ch. 431, Sec. 9(d).)
         Sec. 1069.114.  CONTRACTS FOR CARE AND TREATMENT. (a) The
  board may contract with a county or municipality located outside
  the district's boundaries for the care and treatment of a sick or
  injured person of that county or municipality.
         (b)  The board may contract with this state or a federal
  agency for the treatment of a sick or injured person. (Acts 60th
  Leg., R.S., Ch. 431, Sec. 5 (part).)
         Sec. 1069.115.  CONTRACTS WITH POLITICAL SUBDIVISION FOR
  SERVICES. The board may contract with a political subdivision of
  this state or with a state or federal agency for the district to:
               (1)  furnish a mobile emergency medical service;
               (2)  provide for the investigatory or welfare needs of
  district inhabitants; or
               (3)  provide a rural health clinic to care for the
  inhabitants of the contracting political subdivision. (Acts 60th
  Leg., R.S., Ch. 431, Sec. 16C.)
         Sec. 1069.116.  PAYMENT FOR TREATMENT; PROCEDURES. (a)
  When a patient who resides in the district is admitted to a district
  facility, the district administrator may have an inquiry made into
  the financial circumstances of:
               (1)  the patient; and
               (2)  the patient's relatives legally liable for the
  patient's support.
         (b)  If the district administrator determines that the
  patient or those relatives cannot pay for all or part of the
  patient's care and treatment in the hospital, the amount 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 administrator shall issue an order
  directing the patient or those relatives to pay the district a
  specified amount during an agreed term for the patient's care and
  support. The amount ordered must be proportionate to their
  financial ability.
         (d)  The district administrator may collect the amount from
  the patient's estate, or from those relatives 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 order.
         (f)  The final order of the board may be appealed to the
  district court. The substantial evidence rule applies to the
  appeal. (Acts 60th Leg., R.S., Ch. 431, Secs. 17(b), (c), (d), (e),
  (f).)
         Sec. 1069.117.  REIMBURSEMENT FOR SERVICE. (a) The board
  shall require a county, municipality, or public hospital located
  outside the district to reimburse the district for the district's
  care and treatment of a sick or injured person of that county,
  municipality, or public hospital as provided by Chapter 61, Health
  and Safety Code.
         (b)  The board shall require the sheriff of a county or the
  police chief of a municipality to reimburse the district for the
  district's care and treatment of a person confined in a jail
  facility of the county or municipality who is not a district
  resident.
         (c)  The board may contract with the state or federal
  government for that government to reimburse the district for
  treatment of a sick or injured person. (Acts 60th Leg., R.S., Ch.
  431, Sec. 16E.)
         Sec. 1069.118.  AUTHORITY TO SUE AND BE SUED. The district,
  through the board, may sue and be sued. (Acts 60th Leg., R.S., Ch.
  431, Sec. 5 (part).)
  [Sections 1069.119-1069.150 reserved for expansion]
  SUBCHAPTER D. CHANGE IN BOUNDARIES
         Sec. 1069.151.  PETITION TO EXPAND DISTRICT
  TERRITORY.  (a)  Registered voters of a defined territory not
  included in the district may file a petition with the board
  secretary requesting inclusion of the territory in the district.
         (b)  The petition must be signed by at least 50 registered
  voters of the territory or a majority of those voters, whichever is
  fewer. (Acts 60th Leg., R.S., Ch. 431, Sec. 16D(a).)
         Sec. 1069.152.  HEARING.  (a)  The board by order shall set
  a time and place to hold a hearing on a petition to include a defined
  territory in the district.
         (b)  The board shall set a date for the hearing that is after
  the 30th day after the date the board issues the order. (Acts 60th
  Leg., R.S., Ch. 431, Sec. 16D(b).)
         Sec. 1069.153.  ORDER OF ANNEXATION.  (a)  If, after a
  hearing under Section 1069.152, the board finds that annexation of
  the defined territory into the district would be feasible and would
  benefit the district, the board may approve the annexation by a
  resolution entered in its minutes.
         (b)  The board is not required to include in the annexation
  all territory described in the petition if the board finds that a
  modification or change is necessary or desirable. (Acts 60th Leg.,
  R.S., Ch. 431, Sec. 16D(c).)
         Sec. 1069.154.  RATIFICATION ELECTION.  (a)  Annexation of
  territory is final when approved by a majority of the voters at:
               (1)  an election held in the district; and
               (2)  a separate election held in the territory proposed
  to be annexed.
         (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 form of the ballot; and
               (4)  the presiding and alternate election judges for
  each polling place.
         (c)  Notice of the election shall be given by publishing a
  substantial copy of the election order in a newspaper of general
  circulation in the county once each week for two consecutive weeks.
  The first publication must occur at least 30 days before the date of
  the election.
         (d)  Section 41.001(a), Election Code, does not apply to an
  election held under this section. (Acts 60th Leg., R.S., Ch. 431,
  Secs. 3 (part), 16D(d) (part), (f) (part).)
         Sec. 1069.155.  ASSUMPTION OF DEBT AND TAXES.  If the
  district has outstanding debts or taxes, the voters in an election
  to approve annexation under Section 1069.154 must determine whether
  the annexed territory will assume its portion of the debts or taxes
  on annexation. (Acts 60th Leg., R.S., Ch. 431, Sec. 16D(d) (part).)
         Sec. 1069.156.  BALLOT.  The ballot for an election under
  Section 1069.154 shall be printed to permit voting for or against
  the following, as applicable:
               (1)  "Adding (description of territory to be added) to
  the Nacogdoches County Hospital District."
               (2)  "(Description of territory to be added) assuming
  its proportionate share of the outstanding debts and taxes of the
  Nacogdoches County Hospital District, if it is added to the
  district." (Acts 60th Leg., R.S., Ch. 431, Sec. 16D(e).)
  [Sections 1069.157-1069.200 reserved for expansion]
  SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
         Sec. 1069.201.  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)  cash on hand to the credit of each district fund;
               (3)  money received by the district from all sources
  during the previous year;
               (4)  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 60th Leg.,
  R.S., Ch. 431, Sec. 6 (part).)
         Sec. 1069.202.  NOTICE; HEARING; APPROVAL OF BUDGET. (a)
  The board shall hold a public hearing on the proposed annual budget.
         (b)  Notice of the hearing must be published one time at
  least 10 days before the date of the hearing.
         (c)  Any district resident is entitled to be present and
  participate at the hearing.
         (d)  At the conclusion of the hearing, the board shall act on
  the budget as proposed by the board president. The board may make
  any changes in the proposed budget that the board judges to be in
  the interest of the taxpayers and the law warrants.  The budget must
  be approved by the board. (Acts 60th Leg., R.S., Ch. 431, Sec. 6
  (part).)
         Sec. 1069.203.  AMENDMENTS TO BUDGET. The annual budget may
  be amended as required by circumstances. The board must approve all
  amendments. (Acts 60th Leg., R.S., Ch. 431, Sec. 6 (part).)
         Sec. 1069.204.  RESTRICTION ON EXPENDITURES. Money may be
  spent only for an expense included in the annual budget or an
  amendment to the budget. (Acts 60th Leg., R.S., Ch. 431, Sec. 6
  (part).)
         Sec. 1069.205.  FISCAL YEAR. The district operates
  according to a fiscal year that begins on July 1 and ends on June 30.
  (Acts 60th Leg., R.S., Ch. 431, Sec. 6 (part).)
         Sec. 1069.206.  AUDIT. The district shall have an audit made
  of the district's financial condition. (Acts 60th Leg., R.S., Ch.
  431, Sec. 6 (part).)
         Sec. 1069.207.  INSPECTION OF AUDIT AND DISTRICT RECORDS.
  The audit and other district records shall be open to inspection at
  the district's principal office. (Acts 60th Leg., R.S., Ch. 431,
  Sec. 6 (part).)
         Sec. 1069.208.  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 60th Leg., R.S., Ch. 431, Sec. 6 (part).)
         Sec. 1069.209.  DEPOSITORY. (a) The board shall select one
  or more banks in the district to serve as a depository for district
  money.
         (b)  All district money shall be immediately deposited on
  receipt with a depository bank, except that sufficient money must
  be remitted to the place or places designated as agent for the
  payment of principal of and interest on the district's outstanding
  bonds or other obligations assumed by the district in time for the
  agent to make that payment on or before the maturity date of the
  principal and interest.
         (c)  To the extent that money in a depository bank is not
  insured by the Federal Deposit Insurance Corporation, the money
  must be secured in the manner provided by law for the security of
  county funds.
         (d)  Membership on the district's board of an officer or
  director of a bank does not disqualify the bank from being
  designated as depository. (Acts 60th Leg., R.S., Ch. 431, Sec. 11.)
         Sec. 1069.210.  SPENDING RESTRICTIONS. Except as provided
  by Sections 1069.106, 1069.107, and 1069.211 and by Subchapter F,
  the district may not incur an obligation payable from district
  revenue other than the revenue on hand or to be on hand in the
  current and immediately following district fiscal years. (Acts
  60th Leg., R.S., Ch. 431, Sec. 10(l).)
         Sec. 1069.211.  ECONOMIC DEVELOPMENT. The district may
  allocate a portion of its annual sales and use tax revenue, not to
  exceed one-fourth of one percent, to encourage economic development
  in the district as described by Section 52-a, Article III, Texas
  Constitution. (Acts 60th Leg., R.S., Ch. 431, Sec. 10(k).)
         Sec. 1069.212.  AUTHORITY TO BORROW MONEY. (a) Pending
  receipt of accounts receivable, the board may borrow money for the
  payment of maintenance and operating expenses of the district.
         (b)  A loan obtained by the district under this section must
  be repaid not later than one year after the date on which the loan is
  made. (Acts 60th Leg., R.S., Ch. 431, Sec. 10(h).)
  [Sections 1069.213-1069.250 reserved for expansion]
  SUBCHAPTER F. BONDS AND OTHER OBLIGATIONS
         Sec. 1069.251.  GENERAL OBLIGATION BONDS. The board may
  issue and sell general obligation bonds in the name and on the faith
  and credit of the district for any purpose relating to the purchase,
  construction, acquisition, repair, or renovation of buildings or
  improvements and equipping of buildings or improvements for
  hospital purposes. (Acts 60th Leg., R.S., Ch. 431, Sec. 7(a)
  (part).)
         Sec. 1069.252.  TAX TO PAY GENERAL OBLIGATION BONDS. (a) At
  the time general obligation bonds are issued by the district, 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 imposed for the district 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 60th Leg.,
  R.S., Ch. 431, Sec. 7(a) (part).)
         Sec. 1069.253.  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 a bond election shall provide for
  clerks as in county elections and must specify:
               (1)  the date of the election;
               (2)  the location of the polling places;
               (3)  the presiding and alternate election judges for
  each polling place;
               (4)  the amount of the bonds to be authorized;
               (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 60th Leg., R.S., Ch. 431,
  Sec. 7(a) (part).)
         Sec. 1069.254.  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 60th
  Leg., R.S., Ch. 431, Secs. 7(a) (part), (b).)
         Sec. 1069.255.  MATURITY OF BONDS. District bonds must
  mature not later than 40 years after the date of issuance. (Acts
  60th Leg., R.S., Ch. 431, Sec. 7(c) (part).)
         Sec. 1069.256.  EXECUTION OF BONDS.  District bonds shall be
  executed in the manner provided by Chapter 618, Government Code.
  (Acts 60th Leg., R.S., Ch. 431, Sec. 7(c) (part).)
         Sec. 1069.257.  OTHER OBLIGATIONS. Notwithstanding
  Sections 1069.251 through 1069.256, the board may issue and sell
  bonds, notes, or other obligations that are payable from the
  district's sales and use tax revenues to:
               (1)  acquire land for the hospital system; or
               (2)  purchase, construct, acquire, repair, or renovate
  buildings, improvements, or equipment related to the hospital
  system. (Acts 60th Leg., R.S., Ch. 431, Sec. 7(d).)
         Sec. 1069.258.  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 60th
  Leg., R.S., Ch. 431, Sec. 21 (part).)
  [Sections 1069.259-1069.300 reserved for expansion]
  SUBCHAPTER G. TAXES
         Sec. 1069.301.  IMPOSITION OF AD VALOREM TAX. (a) The board
  shall impose a 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. (Acts 60th Leg., R.S., Ch. 431, Secs. 12 (part), 15
  (part).)
         Sec. 1069.302.  TAX RATE.  (a) The board may impose the tax
  at a rate not to exceed 75 cents on each $100 valuation of the
  taxable property in the district subject to hospital district
  taxation.
         (b)  In setting the tax rate, the board shall consider the
  income of the district from sources other than taxation.  (Acts 60th
  Leg., R.S., Ch. 431, Secs. 3 (part), 12 (part).)
         Sec. 1069.303.  ASSESSMENT AND COLLECTION BY COUNTY TAX
  ASSESSOR-COLLECTOR. Unless the board by majority vote elects to
  have taxes assessed and collected under Section 1069.304, the tax
  assessor-collector of the county in which the district is located
  shall assess and collect taxes imposed by the district.  (Acts 60th
  Leg., R.S., Ch. 431, Secs. 15 (part), 15(a) (part).)
         Sec. 1069.304.  ASSESSMENT AND COLLECTION BY DISTRICT TAX
  ASSESSOR-COLLECTOR. (a)  The board may elect to have district
  taxes assessed and collected by a tax assessor-collector appointed
  by the board. An election under this subsection must be made by
  December 1 and governs the manner in which taxes are assessed and
  collected, until changed by a similar resolution.
         (b)  The district tax assessor-collector must be a district
  resident.
         (c)  The board shall prescribe for the district tax
  assessor-collector the term of employment and compensation. (Acts 60th Leg., R.S., Ch. 431, Secs. 15 (part), 15(b) (part).)
 
  CHAPTER 1074. COMANCHE COUNTY CONSOLIDATED HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1074.001.  DEFINITIONS 
  Sec. 1074.002.  AUTHORITY FOR OPERATION 
  Sec. 1074.003.  ESSENTIAL PUBLIC FUNCTION 
  Sec. 1074.004.  DISTRICT TERRITORY 
  Sec. 1074.005.  DISTRICT SUPPORT AND MAINTENANCE NOT
                   STATE OBLIGATION 
  Sec. 1074.006.  RESTRICTION ON STATE FINANCIAL
                   ASSISTANCE 
  [Sections 1074.007-1074.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1074.051.  BOARD ELECTION; TERM 
  Sec. 1074.052.  NOTICE OF ELECTION 
  Sec. 1074.053.  QUALIFICATIONS FOR OFFICE 
  Sec. 1074.054.  BOARD VACANCY 
  Sec. 1074.055.  OFFICERS 
  Sec. 1074.056.  COMPENSATION; EXPENSES 
  Sec. 1074.057.  VOTING REQUIREMENT 
  Sec. 1074.058.  DISTRICT ADMINISTRATOR; ASSISTANT
                   ADMINISTRATOR 
  Sec. 1074.059.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1074.060.  APPOINTMENT OF STAFF AND EMPLOYEES 
  [Sections 1074.061-1074.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1074.101.  DISTRICT RESPONSIBILITY 
  Sec. 1074.102.  RESTRICTION ON POLITICAL SUBDIVISION
                   TAXATION AND DEBT 
  Sec. 1074.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
  Sec. 1074.104.  HOSPITAL SYSTEM 
  Sec. 1074.105.  RULES 
  Sec. 1074.106.  PURCHASING AND ACCOUNTING PROCEDURES 
  Sec. 1074.107.  DISTRICT PROPERTY, FACILITIES, AND
                   EQUIPMENT 
  Sec. 1074.108.  EMINENT DOMAIN 
  Sec. 1074.109.  GIFTS AND ENDOWMENTS 
  Sec. 1074.110.  CONSTRUCTION CONTRACTS 
  Sec. 1074.111.  OPERATING AND MANAGEMENT CONTRACTS 
  Sec. 1074.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR CARE AND TREATMENT 
  Sec. 1074.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR INVESTIGATORY OR OTHER SERVICES 
  Sec. 1074.114.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1074.115.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1074.116-1074.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 1074.151.  BUDGET 
  Sec. 1074.152.  NOTICE; HEARING; APPROVAL OF BUDGET 
  Sec. 1074.153.  AMENDMENTS TO BUDGET 
  Sec. 1074.154.  RESTRICTION ON EXPENDITURES 
  Sec. 1074.155.  FISCAL YEAR 
  Sec. 1074.156.  ANNUAL AUDIT 
  Sec. 1074.157.  INSPECTION OF ANNUAL AUDIT AND DISTRICT
                   RECORDS 
  Sec. 1074.158.  FINANCIAL REPORT 
  Sec. 1074.159.  DEPOSITORY 
  Sec. 1074.160.  INVESTMENT RESTRICTIONS 
  Sec. 1074.161.  AUTHORITY TO BORROW MONEY; SECURITY 
  [Sections 1074.162-1074.200 reserved for expansion]
  SUBCHAPTER E. BONDS
  Sec. 1074.201.  GENERAL OBLIGATION BONDS 
  Sec. 1074.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1074.203.  REVENUE BONDS 
  Sec. 1074.204.  REFUNDING BONDS 
  Sec. 1074.205.  BOND ELECTION 
  Sec. 1074.206.  MATURITY OF BONDS 
  Sec. 1074.207.  EXECUTION OF BONDS 
  Sec. 1074.208.  ADDITIONAL MEANS OF SECURING PAYMENT OF
                   BONDS 
  Sec. 1074.209.  USE OF BOND PROCEEDS 
  Sec. 1074.210.  BONDS EXEMPT FROM TAXATION 
  Sec. 1074.211.  SECURITY OF CERTAIN BONDS 
  [Sections 1074.212-1074.250 reserved for expansion]
  SUBCHAPTER F. TAXES
  Sec. 1074.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1074.252.  TAX RATE 
  Sec. 1074.253.  TAX ASSESSOR-COLLECTOR 
  CHAPTER 1074. COMANCHE COUNTY CONSOLIDATED HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1074.001.  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 Comanche County Consolidated
  Hospital District. (New.)
         Sec. 1074.002.  AUTHORITY FOR OPERATION. The Comanche
  County Consolidated 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 74th Leg., R.S., Ch. 132, Secs. 3.01(a) (part),
  (b) (part).)
         Sec. 1074.003.  ESSENTIAL PUBLIC FUNCTION. The district
  performs an essential public function administering this chapter.
  (Acts 74th Leg., R.S., Ch. 132, Sec. 3.25 (part).)
         Sec. 1074.004.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of Comanche County,
  except that portion of Comanche County within the boundaries of the
  South Eastland County Hospital District, as those boundaries
  existed on June 15, 2001, is not included in the district. (Acts
  74th Leg., R.S., Ch. 132, Sec. 3.01(a) (part).)
         Sec. 1074.005.  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 74th
  Leg., R.S., Ch. 132, Sec. 3.24 (part).)
         Sec. 1074.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.
  The legislature may not make a direct appropriation for the
  construction, maintenance, or improvement of a district facility.
  (Acts 74th Leg., R.S., Ch. 132, Sec. 3.24 (part).)
  [Sections 1074.007-1074.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1074.051.  BOARD ELECTION; TERM.  (a)  The board
  consists of six directors elected from the district in accordance
  with former Section 3.04(f), Chapter 132, Acts of the 74th
  Legislature, Regular Session, 1995.
         (b)  Directors serve staggered three-year terms.
         (c)  A directors' election to elect two directors shall be
  held annually on the May uniform election date.  (Acts 74th Leg.,
  R.S., Ch. 132, Sec. 3.05(a) (part).)
         Sec. 1074.052.  NOTICE OF ELECTION. Not earlier than the
  30th day or later than the 10th day before the date of a directors' 
  election, notice of the election must be published one time in a
  newspaper of general circulation in the district. (Acts 74th Leg.,
  R.S., Ch. 132, Sec. 3.05(b) (part).)
         Sec. 1074.053.  QUALIFICATIONS FOR OFFICE. (a) A person may
  not be elected or appointed as a director unless the person is:
               (1)  a resident of the district; and
               (2)  a qualified voter.
         (b)  A person is not eligible to serve as a director if the
  person is:
               (1)  the district administrator; or
               (2)  a district employee. (Acts 74th Leg., R.S., Ch.
  132, Sec. 3.06.)
         Sec. 1074.054.  BOARD VACANCY. If a vacancy occurs in the
  office of director, the remaining directors shall fill the vacancy
  for the unexpired term. (Acts 74th Leg., R.S., Ch. 132, Sec.
  3.05(c).)
         Sec. 1074.055.  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 a one-year term.
         (c)  The board shall fill a vacancy in a board office for the
  unexpired term. (Acts 74th Leg., R.S., Ch. 132, Sec. 3.08(a).)
         Sec. 1074.056.  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 74th Leg., R.S., Ch.
  132, Sec. 3.08(c).)
         Sec. 1074.057.  VOTING REQUIREMENT. A concurrence of a
  majority of the directors voting is necessary in any matter
  relating to district business. (Acts 74th Leg., R.S., Ch. 132, Sec.
  3.08(b).)
         Sec. 1074.058.  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 receive the
  compensation determined by the board.
         (d)  On assuming the duties of district administrator, the
  administrator shall execute a bond payable to the district in an
  amount set by the board of not less than $5,000 that:
               (1)  is conditioned on the administrator performing the
  administrator's duties; and
               (2)  contains any other condition the board requires.
         (e)  The board may pay for the bond with district money.
  (Acts 74th Leg., R.S., Ch. 132, Sec. 3.09(c) (part).)
         Sec. 1074.059.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
  Subject to the limitations prescribed by the board, the district
  administrator shall supervise the work and activities of the
  district. (Acts 74th Leg., R.S., Ch. 132, Sec. 3.09(c) (part).)
         Sec. 1074.060.  APPOINTMENT OF STAFF AND EMPLOYEES. (a)  The
  board may appoint to the staff any doctors the board considers
  necessary for the efficient operation of the district if warranted.
         (b)  The board may employ, and may delegate to the district
  administrator the authority to employ, technicians, nurses, fiscal
  agents, accountants, architects, and other necessary employees for
  the district.  (Acts 74th Leg., R.S., Ch. 132, Sec. 3.09(d).)
  [Sections 1074.061-1074.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1074.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for operating all hospital facilities and
  providing medical and hospital care for the district's needy
  residents. (Acts 74th Leg., R.S., Ch. 132, Sec. 3.23(b).)
         Sec. 1074.102.  RESTRICTION ON POLITICAL SUBDIVISION
  TAXATION AND DEBT. A political subdivision located wholly or
  partly in the district may not impose a tax or issue bonds or other
  obligations for hospital purposes or to provide medical care for
  district residents. (Acts 74th Leg., R.S., Ch. 132, Sec. 3.23(a).)
         Sec. 1074.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.
  The board shall manage, control, and administer the hospital system
  and the district's business, money, and resources. (Acts 74th
  Leg., R.S., Ch. 132, Sec. 3.09(a) (part).)
         Sec. 1074.104.  HOSPITAL SYSTEM.  (a)  The district shall
  provide for:
               (1)  the establishment of a hospital system by:
                     (A)  purchasing, constructing, acquiring,
  repairing, or renovating buildings and equipment; and
                     (B)  equipping the buildings; and
               (2)  the administration of the district for hospital
  purposes.
         (b)  The hospital system may include:
               (1)  domiciliary care and treatment of the sick,
  injured, or geriatric;
               (2)  outpatient clinics;
               (3)  dispensaries;
               (4)  convalescent home facilities;
               (5)  necessary nurses;
               (6)  domiciliaries and training centers;
               (7)  blood banks;
               (8)  community mental health centers;
               (9)  research centers;
               (10)  laboratories; and
               (11)  any other facilities the board considers
  necessary for hospital care.  (Acts 74th Leg., R.S., Ch. 132, Secs.
  3.07(a) (part), 3.15(a) (part).)
         Sec. 1074.105.  RULES. The board may adopt rules governing
  the operation of the hospital, the hospital system, and the
  district's staff and employees. (Acts 74th Leg., R.S., Ch. 132,
  Sec. 3.09(b) (part).)
         Sec. 1074.106.  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 74th
  Leg., R.S., Ch. 132, Sec. 3.15(d).)
         Sec. 1074.107.  DISTRICT PROPERTY, FACILITIES, AND
  EQUIPMENT. (a) The board shall determine:
               (1)  the type, number, and location of buildings
  required to maintain an adequate hospital system; and
               (2)  the type of equipment necessary for hospital care.
         (b)  The board may lease all or part of the district's
  buildings and other facilities on terms considered to be in the best
  interest of district residents. The term of the lease may not
  exceed 25 years.
         (c)  The district may:
               (1)  acquire property, including facilities and
  equipment, for use in the district's hospital system; and
               (2)  mortgage or pledge the property as security for
  the payment of the purchase price.
         (d)  The district may sell or otherwise dispose of any
  property, including equipment, on terms the board finds are in the
  best interest of district residents. (Acts 74th Leg., R.S., Ch.
  132, Secs. 3.15(a) (part), (b) (part), (c), (g).)
         Sec. 1074.108.  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 to exercise a right or
  authority conferred by this chapter.
         (b)  The district must exercise the power of eminent domain
  in the manner provided by Chapter 21, Property Code, except the
  district is not required to deposit in the trial court money or a
  bond as provided by Section 21.021, 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 74th Leg., R.S., Ch. 132,
  Sec. 3.18.)
         Sec. 1074.109.  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 of
  the district. (Acts 74th Leg., R.S., Ch. 132, Sec. 3.21.)
         Sec. 1074.110.  CONSTRUCTION CONTRACTS. A construction
  contract that involves the expenditure of more than the amount
  provided by Section 271.024, Local Government Code, may be made
  only after competitive bidding as provided by Subchapter B, Chapter
  271, Local Government Code.  (Acts 74th Leg., R.S., Ch. 132, Sec.
  3.15(e).)
         Sec. 1074.111.  OPERATING AND MANAGEMENT CONTRACTS. The
  board may enter into an operating or management contract relating
  to a district facility. (Acts 74th Leg., R.S., Ch. 132, Sec.
  3.15(b) (part).)
         Sec. 1074.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  CARE AND TREATMENT. (a) The district 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 district may contract with this state or a federal
  agency to reimburse the district for treatment of a sick or injured
  person. (Acts 74th Leg., R.S., Ch. 132, Sec. 3.09(e) (part).)
         Sec. 1074.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  INVESTIGATORY OR OTHER SERVICES. The board may contract with a
  political subdivision or governmental agency for the district to
  provide investigatory or other services for the medical, hospital,
  or welfare needs of district residents. (Acts 74th Leg., R.S., Ch.
  132, Sec. 3.09(e) (part).)
         Sec. 1074.114.  PAYMENT FOR TREATMENT; PROCEDURES. (a)  The
  district shall provide without charge to a patient residing 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.
         (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 circumstances of:
               (1)  the patient; and
               (2)  the patient's relatives legally responsible for
  the patient's support.
         (c)  If the district administrator determines that the
  patient or relative can pay for all or part of the costs of the
  patient's care and treatment, the district administrator shall
  report that finding to the board and the board shall order the
  patient or relative to pay the district a specified amount each week
  for the patient's care and support. The amount ordered must be an
  amount the individual is able to pay.
         (d)  The district administrator may collect amounts under
  Subsection (c) from the patient's estate, or from a relative
  legally responsible for the patient's support, in the manner
  provided by law for the collection of expenses of the last illness
  of a deceased person.
         (e)  If there is a dispute as to the ability to pay, the board
  shall:
               (1)  call witnesses;
               (2)  hear and resolve the dispute; and
               (3)  issue a final order.
         (f)  The final order may be appealed to the district court in
  Comanche County.  The substantial evidence rule applies to the
  appeal. (Acts 74th Leg., R.S., Ch. 132, Secs. 3.20(a), (c), (d).)
         Sec. 1074.115.  AUTHORITY TO SUE AND BE SUED. The district,
  through the board, may sue and be sued. (Acts 74th Leg., R.S., Ch.
  132, Sec. 3.09(b) (part).)
  [Sections 1074.116-1074.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 1074.151.  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 to the credit of 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 revenues and balances available to
  cover the proposed budget; and
               (7)  the estimated tax rate required. (Acts 74th Leg.,
  R.S., Ch. 132, Sec. 3.10(c).)
         Sec. 1074.152.  NOTICE; HEARING; APPROVAL OF BUDGET.  (a)
  The board shall hold a public hearing on the proposed annual budget.
         (b)  At least 10 days before the date of the hearing, notice
  of the hearing must be published one time in a newspaper of general
  circulation in the district.
         (c)  Any district resident is entitled to be present and
  participate at the hearing.
         (d)  The board shall act on the budget proposed by the
  district administrator. The board may make any changes in the
  proposed budget that the board determines the law warrants and are
  in the interests of the taxpayers.  The board must approve the
  budget.  (Acts 74th Leg., R.S., Ch. 132, Secs. 3.10(d), (e), (g)
  (part).)
         Sec. 1074.153.  AMENDMENTS TO BUDGET. The budget may be
  amended as required by circumstances. The board must approve all
  amendments. (Acts 74th Leg., R.S., Ch. 132, Sec. 3.10(g) (part).)
         Sec. 1074.154.  RESTRICTION ON EXPENDITURES. Money may be
  spent only for an expense included in the budget or an amendment to
  the budget. (Acts 74th Leg., R.S., Ch. 132, Sec. 3.10(f).)
         Sec. 1074.155.  FISCAL YEAR. (a) The district operates
  according to a fiscal year established by the board.
         (b)  The fiscal year may not be changed:
               (1)  during a period that revenue bonds of the district
  are outstanding; or
               (2)  more than once in a 24-month period. (Acts 74th
  Leg., R.S., Ch. 132, Sec. 3.10(a).)
         Sec. 1074.156.  ANNUAL AUDIT. The board annually shall have
  an audit made of the district's financial condition. (Acts 74th
  Leg., R.S., Ch. 132, Sec. 3.10(b) (part).)
         Sec. 1074.157.  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 74th Leg.,
  R.S., Ch. 132, Sec. 3.10(b) (part).)
         Sec. 1074.158.  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 74th Leg., R.S., Ch. 132, Sec. 3.10(h).)
         Sec. 1074.159.  DEPOSITORY. (a) The board shall select one
  or more banks to serve as a depository for district money.
         (b)  All district money, other than money invested as
  provided by Section 1074.160 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 section does not limit the power of the board to
  place a part of district money on time deposit or to purchase
  certificates of deposit.  (Acts 74th Leg., R.S., Ch. 132, Sec.
  3.15(h).)
         Sec. 1074.160.  INVESTMENT RESTRICTIONS. The board may
  invest operating, depreciation, or building reserves only in funds
  or securities specified by Chapter 2256, Government Code. (Acts
  74th Leg., R.S., Ch. 132, Sec. 3.09(a) (part).)
         Sec. 1074.161.  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 authorized 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 in 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)  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 pledged taxes were imposed or the
  bonds were authorized. (Acts 74th Leg., R.S., Ch. 132, Sec. 3.22.)
  [Sections 1074.162-1074.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 1074.201.  GENERAL OBLIGATION BONDS. The board may
  issue and sell general obligation bonds in the name and on the faith
  and credit of the district for:
               (1)  the purchase, construction, acquisition, repair,
  or renovation of buildings or improvements;
               (2)  equipping buildings or improvements for hospital
  purposes; or
               (3)  acquiring and operating a mobile emergency
  service.  (Acts 74th Leg., R.S., Ch. 132, Sec. 3.11(a).)
         Sec. 1074.202.  TAX TO PAY GENERAL OBLIGATION BONDS. (a) At
  the time general obligation bonds are issued by the district, the
  board shall impose an ad valorem tax at a rate sufficient to create
  an interest and sinking fund and to pay the principal of and
  interest on the bonds as the bonds mature.
         (b)  The tax required by this section together with any other
  tax imposed for the district may not in any year exceed the limit
  approved by the voters at the election authorizing the imposition
  of the tax. (Acts 74th Leg., R.S., Ch. 132, Sec. 3.11(b).)
         Sec. 1074.203.  REVENUE BONDS.  (a)  The board may issue
  revenue bonds to:
               (1)  purchase, construct, acquire, repair, equip, or
  renovate a building or improvement for hospital purposes;
               (2)  acquire a site for hospital purposes; or
               (3)  acquire and operate a mobile emergency 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 district revenue derived from the operation of the
  district's hospital system.
         (c)  The bonds may be additionally secured by a mortgage or
  deed of trust lien on all or any part of district property.
         (d)  The bonds must be issued in the manner and in accordance
  with the procedures and requirements prescribed by Chapter 264,
  Health and Safety Code, for the issuance of revenue bonds by a
  county hospital authority. (Acts 74th Leg., R.S., Ch. 132, Secs.
  3.14(a) (part), (b), (c).)
         Sec. 1074.204.  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 the outstanding indebtedness. (Acts
  74th Leg., R.S., Ch. 132, Secs. 3.12(a), (b), 3.14(a) (part).)
         Sec. 1074.205.  BOND ELECTION. (a) The district may issue
  bonds, other than refunding bonds, to be wholly or partly secured by
  an ad valorem tax only if the bonds are authorized by a majority of
  the district voters at an election that is held in the district.
         (b)  The bond election order must specify:
               (1)  the nature and date of the election;
               (2)  the location of the polling places;
               (3)  the hours during which the polls will be open;
               (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 74th Leg., R.S., Ch. 132,
  Secs. 3.11(c), (d), (e), 3.14A(b).)
         Sec. 1074.206.  MATURITY OF BONDS. District bonds must
  mature not later than the 40th anniversary of the date of issuance.
  (Acts 74th Leg., R.S., Ch. 132, Sec. 3.13(a) (part).)
         Sec. 1074.207.  EXECUTION OF BONDS. The board president
  shall execute the district's bonds in the district's name, and the
  board secretary shall countersign the bonds in the manner provided
  by Chapter 618, Government Code. (Acts 74th Leg., R.S., Ch. 132,
  Sec. 3.13(a) (part).)
         Sec. 1074.208.  ADDITIONAL MEANS OF SECURING PAYMENT OF
  BONDS.  In addition to the authority to issue general obligation
  bonds and revenue bonds under this subchapter, the board may
  provide for the security and payment of district bonds from a pledge
  of a combination of ad valorem taxes as authorized by Section
  1074.202 and revenue and other sources as authorized by Section
  1074.203.  (Acts 74th Leg., R.S., Ch. 132, Sec. 3.14A(a).)
         Sec. 1074.209.  USE OF BOND PROCEEDS.  The district may use
  the proceeds of bonds issued under this subchapter to pay:
               (1)  any expense the board determines is reasonable and
  necessary to issue, sell, and deliver the bonds;
               (2)  interest payments on the bonds during a period of
  acquisition or construction of a project or facility to be provided
  through the bonds, not to exceed five years;
               (3)  costs related to the operation and maintenance of
  a project or facility to be provided through the bonds:
                     (A)  during an estimated period of acquisition or
  construction, not to exceed five years; and
                     (B)  for one year after the project or facility is
  acquired or constructed;
               (4)  costs related to the financing of the bond funds,
  including debt service reserve and contingency funds;
               (5)  costs related to the issuance of the bonds;
               (6)  costs related to the acquisition of land or
  interest in land for a project or facility to be provided through
  the bonds; and
               (7)  construction costs of a project or facility to be
  provided through the bonds, including the payment of related
  professional services and expenses.  (Acts 74th Leg., R.S., Ch.
  132, Sec. 3.14B.)
         Sec. 1074.210.  BONDS EXEMPT FROM TAXATION. The following
  are exempt from taxation by this state or a political subdivision of
  this state:
               (1)  bonds issued by the district;
               (2)  the transfer and issuance from the bonds; or
               (3)  any profits made in the sale of the bonds. (Acts
  74th Leg., R.S., Ch. 132, Sec. 3.25 (part).)
         Sec. 1074.211.  SECURITY OF CERTAIN BONDS. Bonds authorized
  at an election held in the district before May 20, 2003, may be
  payable from and secured by:
               (1)  taxes as authorized by the election; or
               (2)  a pledge of a combination of ad valorem taxes,
  revenues, and other sources as authorized by Section 1074.208.
  (Acts 74th Leg., R.S., Ch. 132, Sec. 3.14A(c).)
  [Sections 1074.212-1074.250 reserved for expansion]
  SUBCHAPTER F. TAXES
         Sec. 1074.251.  IMPOSITION OF AD VALOREM TAX. (a) The board
  shall annually impose a tax to pay:
               (1)  indebtedness issued or assumed by the district;
  and
               (2)  district maintenance and operating expenses.
         (b)  The district may not impose a tax to pay the principal of
  or interest on revenue bonds issued under Section 1074.203. (Acts
  74th Leg., R.S., Ch. 132, Secs. 3.16(a) (part), (b).)
         Sec. 1074.252.  TAX RATE. (a) The board may impose the tax
  at a rate not to exceed the limit approved by the voters.
         (b)  In setting the tax rate, the board shall consider the
  income of the district from sources other than taxation. (Acts 74th
  Leg., R.S., Ch. 132, Secs. 3.16(a) (part), (c) (part).)
         Sec. 1074.253.  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 74th Leg., R.S., Ch. 132, Sec. 3.19(c).)
 
  CHAPTER 1086. CROSBY COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1086.001.  DEFINITIONS 
  Sec. 1086.002.  AUTHORITY FOR OPERATION 
  Sec. 1086.003.  ESSENTIAL PUBLIC FUNCTION 
  Sec. 1086.004.  DISTRICT TERRITORY 
  Sec. 1086.005.  DISTRICT SUPPORT OR MAINTENANCE NOT
                   STATE OBLIGATION 
  Sec. 1086.006.  RESTRICTION ON STATE FINANCIAL
                   ASSISTANCE 
  [Sections 1086.007-1086.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1086.051.  BOARD ELECTION AND APPOINTMENT; TERM 
  Sec. 1086.052.  NOTICE OF ELECTION 
  Sec. 1086.053.  BALLOT PETITION 
  Sec. 1086.054.  QUALIFICATIONS FOR OFFICE 
  Sec. 1086.055.  BOND; RECORD OF BOND 
  Sec. 1086.056.  BOARD VACANCY 
  Sec. 1086.057.  OFFICERS 
  Sec. 1086.058.  COMPENSATION; EXPENSES 
  Sec. 1086.059.  VOTING REQUIREMENT 
  Sec. 1086.060.  DISTRICT ADMINISTRATOR 
  Sec. 1086.061.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1086.062.  ASSISTANT DISTRICT ADMINISTRATOR;
                   ATTORNEY 
  Sec. 1086.063.  APPOINTMENT OF STAFF AND EMPLOYEES 
  Sec. 1086.064.  RETIREMENT BENEFITS 
  [Sections 1086.065-1086.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1086.101.  DISTRICT RESPONSIBILITY 
  Sec. 1086.102.  RESTRICTION ON GOVERNMENTAL ENTITY
                   TAXATION AND DEBT 
  Sec. 1086.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
  Sec. 1086.104.  RULES 
  Sec. 1086.105.  PURCHASING AND ACCOUNTING PROCEDURES 
  Sec. 1086.106.  MOBILE EMERGENCY MEDICAL SERVICE 
  Sec. 1086.107.  DISTRICT PROPERTY, FACILITIES, AND
                   EQUIPMENT 
  Sec. 1086.108.  EMINENT DOMAIN 
  Sec. 1086.109.  COST OF RELOCATING OR ALTERING PROPERTY 
  Sec. 1086.110.  GIFTS AND ENDOWMENTS 
  Sec. 1086.111.  CONSTRUCTION CONTRACTS 
  Sec. 1086.112.  OPERATING AND MANAGEMENT CONTRACTS 
  Sec. 1086.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR SERVICES 
  Sec. 1086.114.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1086.115.  REIMBURSEMENT FOR SERVICES 
  Sec. 1086.116.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1086.117-1086.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
  Sec. 1086.151.  BUDGET 
  Sec. 1086.152.  NOTICE; HEARING; ADOPTION OF BUDGET 
  Sec. 1086.153.  AMENDMENTS TO BUDGET 
  Sec. 1086.154.  RESTRICTION ON EXPENDITURES 
  Sec. 1086.155.  FISCAL YEAR 
  Sec. 1086.156.  ANNUAL AUDIT 
  Sec. 1086.157.  INSPECTION OF ANNUAL AUDIT AND DISTRICT
                   RECORDS 
  Sec. 1086.158.  FINANCIAL REPORT 
  Sec. 1086.159.  DEPOSITORY 
  Sec. 1086.160.  SPENDING AND INVESTMENT RESTRICTIONS 
  [Sections 1086.161-1086.200 reserved for expansion]
  SUBCHAPTER E. BONDS
  Sec. 1086.201.  GENERAL OBLIGATION BONDS 
  Sec. 1086.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1086.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1086.204.  REVENUE BONDS 
  Sec. 1086.205.  REFUNDING BONDS 
  Sec. 1086.206.  MATURITY OF BONDS 
  Sec. 1086.207.  EXECUTION OF BONDS 
  Sec. 1086.208.  BONDS EXEMPT FROM TAXATION 
  [Sections 1086.209-1086.250 reserved for expansion]
  SUBCHAPTER F. TAXES
  Sec. 1086.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1086.252.  TAX RATE 
  Sec. 1086.253.  TAX ASSESSOR-COLLECTOR 
  CHAPTER 1086. CROSBY COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1086.001.  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 Crosby County Hospital
  District.  (Acts 71st Leg., R.S., Ch. 548, Sec. 1.01.)
         Sec. 1086.002.  AUTHORITY FOR OPERATION. The Crosby County
  Hospital District operates and is financed as provided by Section
  9, Article IX, Texas Constitution, and by this chapter. (Acts 71st
  Leg., R.S., Ch. 548, Sec. 1.02.)
         Sec. 1086.003.  ESSENTIAL PUBLIC FUNCTION. The district is
  a public entity performing an essential public function. (Acts
  71st Leg., R.S., Ch. 548, Sec. 7.11 (part).)
         Sec. 1086.004.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of Crosby County,
  Texas. (Acts 71st Leg., R.S., Ch. 548, Sec. 1.03.)
         Sec. 1086.005.  DISTRICT SUPPORT OR MAINTENANCE NOT STATE
  OBLIGATION. This state may not become obligated for the support or
  maintenance of the district.  (Acts 71st Leg., R.S., Ch. 548, Sec.
  9.01 (part).)
         Sec. 1086.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.  
  The legislature may not make a direct appropriation for the
  construction, maintenance, or improvement of a district facility.
  (Acts 71st Leg., R.S., Ch. 548, Sec. 9.01 (part).)
  [Sections 1086.007-1086.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1086.051.  BOARD ELECTION AND APPOINTMENT; TERM.  (a)  
  The district is governed by a board of 12 directors as follows:
               (1)  two directors elected from each commissioners
  precinct; and
               (2)  four directors appointed by the Crosby County
  Commissioners Court.
         (b)  Directors serve staggered two-year terms.
         (c)  A directors' election shall be held annually on the May
  uniform election date to elect the appropriate number of directors.
         (d)  The commissioners court shall annually within 10 days of
  the date that elected directors are elected appoint the appropriate
  number of directors.  (Acts 71st Leg., R.S., Ch. 548, Secs. 4.01(a),
  4.03(a), (d).)
         Sec. 1086.052.  NOTICE OF ELECTION. Not later than the 35th
  day before the date of a directors' election, notice of the election
  must be published one time in a newspaper with general circulation
  in the district. (Acts 71st Leg., R.S., Ch. 548, Sec. 4.04.)
         Sec. 1086.053.  BALLOT PETITION. A person who wants to have
  the person's name printed on the ballot as a candidate for a
  position as an elected director must file with the board secretary a
  petition requesting that action. The petition must:
               (1)  be signed by at least 10 registered voters of the
  district, as determined by the most recent official list of
  registered voters;
               (2)  be filed by the deadline imposed by Section
  144.005, Election Code; and
               (3)  specify the commissioners precinct the candidate
  wants to represent.  (Acts 71st Leg., R.S., Ch. 548, Sec. 4.05.)
         Sec. 1086.054.  QUALIFICATIONS FOR OFFICE. (a)  To be
  eligible to be a candidate for an elected position or to serve as an
  elected director, a person must be:
               (1)  a resident of the district; and
               (2)  a registered voter.
         (b)  To be eligible to serve as an appointed director, a
  person must be a registered voter.
         (c)  In addition to the qualifications required by
  Subsection (a), a person who is elected from a commissioners
  precinct or who is appointed to fill a vacancy for a commissioners
  precinct must be a resident of that commissioners precinct.
         (d)  A district employee may not serve as a director. (Acts
  71st Leg., R.S., Ch. 548, Sec. 4.06.)
         Sec. 1086.055.  BOND; RECORD OF BOND. (a)  Before assuming
  the duties of office, each director must execute a bond for $5,000
  that is:
               (1)  payable to the district; and
               (2)  conditioned on the faithful performance of the
  director's duties.
         (b)  The board may pay for directors' bonds with district
  money.
         (c)  Each director's bond shall be kept in the district's
  permanent records.  (Acts 71st Leg., R.S., Ch. 548, Sec. 4.07.)
         Sec. 1086.056.  BOARD VACANCY. If a vacancy occurs in the
  office of director, the remaining directors shall appoint a
  director for the unexpired term. (Acts 71st Leg., R.S., Ch. 548,
  Sec. 4.08.)
         Sec. 1086.057.  OFFICERS. (a) The board shall elect from
  among its members a president and a vice president.
         (b)  The board shall appoint a secretary, who need not be a
  director.
         (c)  The president may vote only to break a tie vote.
         (d)  Each officer of the board serves a one-year term.
         (e)  The board shall fill a vacancy in a board office for the
  unexpired term. (Acts 71st Leg., R.S., Ch. 548, Secs. 4.09, 4.10.)
         Sec. 1086.058.  COMPENSATION; EXPENSES. A director or
  officer serves without compensation but may be reimbursed for
  actual expenses incurred in the performance of official duties.
  The expenses must be:
               (1)  reported in the district's records; and
               (2)  approved by the board. (Acts 71st Leg., R.S., Ch.
  548, Sec. 4.11.)
         Sec. 1086.059.  VOTING REQUIREMENT. A concurrence of a
  majority of the directors voting is necessary in any matter
  relating to district business. (Acts 71st Leg., R.S., Ch. 548, Sec.
  4.12.)
         Sec. 1086.060.  DISTRICT ADMINISTRATOR. (a)  The board may
  appoint a qualified person as district administrator.
         (b)  The district administrator serves at the will of the
  board and is entitled to compensation as determined by the board.
         (c)  Before assuming the duties of district administrator,
  the administrator must execute a bond in an amount determined by the
  board of not less than $5,000 that is:
               (1)  payable to the district; and
               (2)  conditioned on the faithful performance of the
  administrator's duties under this chapter.
         (d)  The board may pay for the bond with district money.
  (Acts 71st Leg., R.S., Ch. 548, Secs. 4.13(a) (part), (b) (part),
  (c) (part), (d).)
         Sec. 1086.061.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
  Subject to the limitations prescribed by the board, the district
  administrator shall:
               (1)  supervise the work and activities of the district;
  and
               (2)  direct the general affairs of the district. (Acts
  71st Leg., R.S., Ch. 548, Sec. 4.16.)
         Sec. 1086.062.  ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.
  (a) The board may appoint qualified persons as:
               (1)  the assistant district administrator; and
               (2)  the attorney for the district.
         (b)  The assistant district administrator and the attorney
  for the district serve at the will of the board and are entitled to
  compensation as determined by the board. (Acts 71st Leg., R.S., Ch.
  548, Secs. 4.13(a) (part), (b) (part), (c) (part).)
         Sec. 1086.063.  APPOINTMENT OF STAFF AND EMPLOYEES.  (a) The
  board may appoint to the staff any doctors the board considers
  necessary for the efficient operation of the district and may make
  temporary appointments as considered necessary.
         (b)  The district may employ technicians, nurses, fiscal
  agents, accountants, architects, additional attorneys, and other
  necessary employees.
         (c)  The board may delegate to the district administrator the
  authority to employ persons for the district. (Acts 71st Leg.,
  R.S., Ch. 548, Secs. 4.14, 4.15.)
         Sec. 1086.064.  RETIREMENT BENEFITS.  The board may provide
  retirement benefits for district employees by:
               (1)  establishing or administering a retirement
  program; or
               (2)  participating in:
                     (A)  the Texas County and District Retirement
  System; or
                     (B)  another statewide retirement system in which
  the district is eligible to participate. (Acts 71st Leg., R.S., Ch.
  548, Sec. 4.17.)
  [Sections 1086.065-1086.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1086.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for operating hospital facilities and for
  providing medical and hospital care for the district's needy
  inhabitants. (Acts 71st Leg., R.S., Ch. 548, Sec. 5.02 (part).)
         Sec. 1086.102.  RESTRICTION ON GOVERNMENTAL ENTITY TAXATION
  AND DEBT. Crosby County, the City of Ralls, Crosbyton, or Lorenzo,
  or any other governmental entity in which the district is located
  may not impose a tax or issue bonds or other obligations for
  hospital purposes or to provide medical care for district
  residents. (Acts 71st Leg., R.S., Ch. 548, Sec. 5.01(b).)
         Sec. 1086.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.
  The board shall manage, control, and administer the hospital system
  and the district's money and resources. (Acts 71st Leg., R.S., Ch.
  548, Sec. 5.03.)
         Sec. 1086.104.  RULES. The board may adopt rules governing:
               (1)  the operation of the hospital and hospital system;
  and
               (2)  the duties, functions, and responsibilities of
  district staff and employees. (Acts 71st Leg., R.S., Ch. 548, Sec.
  5.04.)
         Sec. 1086.105.  PURCHASING AND ACCOUNTING PROCEDURES. The
  board may prescribe:
               (1)  the method of making purchases and expenditures by
  and for the district; and
               (2)  accounting and control procedures for the
  district. (Acts 71st Leg., R.S., Ch. 548, Sec. 5.05.)
         Sec. 1086.106.  MOBILE EMERGENCY MEDICAL SERVICE. The
  district may operate or provide for the operation of a mobile
  emergency medical service. (Acts 71st Leg., R.S., Ch. 548, Sec.
  5.02 (part).)
         Sec. 1086.107.  DISTRICT PROPERTY, FACILITIES, AND
  EQUIPMENT. (a) The board shall determine:
               (1)  the type, number, and location of buildings
  required to maintain an adequate hospital system; and
               (2)  the type of equipment necessary for hospital care.
         (b)  The board may:
               (1)  acquire property, including facilities and
  equipment, for the district for use in the hospital system; and
               (2)  mortgage or pledge the property as security for
  the payment of the purchase price.
         (c)  The board may lease hospital facilities for the
  district.
         (d)  The board may sell or otherwise dispose of property,
  including facilities or equipment, for the district. (Acts 71st
  Leg., R.S., Ch. 548, Sec. 5.06.)
         Sec. 1086.108.  EMINENT DOMAIN.  (a) The district may
  exercise the power of eminent domain to acquire a fee simple or
  other interest in property located in district territory if the
  interest is necessary to exercise a right or authority conferred by
  this chapter.
         (b)  The district must exercise the power of eminent domain
  in the manner provided by Chapter 21, Property Code, except the
  district is not required to deposit in the trial court money or a
  bond as provided by Section 21.021(a), Property Code.
         (c)  In a condemnation proceeding brought by the district,
  the district is not required to:
               (1)  pay in advance or provide a bond or other security
  for costs in the trial court;
               (2)  provide a bond for the issuance of a temporary
  restraining order or a temporary injunction; or
               (3)  provide a bond for costs or a supersedeas bond on
  an appeal or petition for review. (Acts 71st Leg., R.S., Ch. 548,
  Sec. 5.09.)
         Sec. 1086.109.  COST OF RELOCATING OR ALTERING PROPERTY. In
  exercising the power of eminent domain, if the board requires
  relocating, raising, lowering, rerouting, changing the grade, or
  altering the construction of any railroad, highway, pipeline, or
  electric transmission and electric distribution, telegraph, or
  telephone line, conduit, pole, or facility, the district must bear
  the actual cost of relocating, raising, lowering, rerouting,
  changing the grade, or altering the construction to provide
  comparable replacement without enhancement of facilities, after
  deducting the net salvage value derived from the old facility.
  (Acts 71st Leg., R.S., Ch. 548, Sec. 5.10.)
         Sec. 1086.110.  GIFTS AND ENDOWMENTS. The board may accept
  for the district a gift or endowment to be held in trust for any
  purpose and under any direction, limitation, or other provision
  prescribed in writing by the donor that is consistent with the
  proper management of the district. (Acts 71st Leg., R.S., Ch. 548,
  Sec. 5.14.)
         Sec. 1086.111.  CONSTRUCTION CONTRACTS. (a) The board may
  enter into construction contracts for the district.
         (b)  The board may enter into a construction contract that
  involves the expenditure of more than the amount provided by
  Section 271.024, Local Government Code, only after competitive
  bidding as provided by Subchapter B, Chapter 271, Local Government
  Code. (Acts 71st Leg., R.S., Ch. 548, Sec. 5.07(a).)
         Sec. 1086.112.  OPERATING AND MANAGEMENT CONTRACTS. The
  board may enter into an operating or management contract relating
  to a hospital facility for the district. (Acts 71st Leg., R.S., Ch.
  548, Sec. 5.08.)
         Sec. 1086.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  SERVICES.  The board may contract with a political subdivision of
  this state or with a state or federal agency for the district to:
               (1)  furnish a mobile emergency medical service; or
               (2)  provide for the investigatory or welfare needs of
  district inhabitants. (Acts 71st Leg., R.S., Ch. 548, Sec. 5.13.)
         Sec. 1086.114.  PAYMENT FOR TREATMENT; PROCEDURES. (a)
  When a patient who resides in the district is admitted to a district
  facility, the district administrator may have an inquiry made into
  the financial circumstances of:
               (1)  the patient; or
               (2)  a relative of the patient legally responsible for
  the patient's support.
         (b)  The district without charge shall provide to a patient
  who resides in the district the care and treatment that the patient
  or a relative of the patient legally responsible for the patient's
  support cannot pay.
         (c)  On determining that the patient or a relative legally
  responsible for the patient's support can pay for all or part of the
  care and treatment provided by the district, the district
  administrator shall report that determination to the board, and the
  board shall issue an order directing the patient or the relative to
  pay the district a specified amount each week. The amount must be
  based on the individual's ability to pay.
         (d)  The district administrator may collect money owed to the
  district from the patient's estate or from that of a relative
  legally responsible for the patient's support in the manner
  provided by law for collection of expenses of the last illness of a
  deceased person.
         (e)  If there is a dispute relating to an individual's
  ability to pay or if the district administrator has any doubt
  concerning an individual's ability to pay, the board shall:
               (1)  call witnesses;
               (2)  hear and resolve the question; and
               (3)  issue a final order.
         (f)  The final order of the board may be appealed to a
  district court in Crosby County. The substantial evidence rule
  applies to the appeal. (Acts 71st Leg., R.S., Ch. 548, Secs.
  5.11(a), (c), (d), (e), (f).)
         Sec. 1086.115.  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 Crosby County or
  the police chief of the City of Crosbyton, Ralls, or Lorenzo, as
  appropriate, to reimburse the district for the district's care and
  treatment of a person confined in a jail facility of Crosby County
  or the City of Crosbyton, Ralls, or Lorenzo, as appropriate, who is
  not a district resident.
         (c)  The board may contract with the state or federal
  government for that government to reimburse the district for
  treatment of a sick or injured person. (Acts 71st Leg., R.S., Ch.
  548, Sec. 5.12.)
         Sec. 1086.116.  AUTHORITY TO SUE AND BE SUED. The board may
  sue and be sued on behalf of the district. (Acts 71st Leg., R.S.,
  Ch. 548, Sec. 5.15.)
  [Sections 1086.117-1086.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 1086.151.  BUDGET. (a) The district administrator
  shall prepare a proposed annual budget for the district.
         (b)  The proposed budget must contain a complete financial
  statement, including a statement of:
               (1)  the outstanding obligations of the district;
               (2)  the amount of cash on hand to the credit of each
  district fund;
               (3)  the amount of money received by the district from
  all sources during the previous year;
               (4)  the amount of money available to the district from
  all sources during the ensuing year;
               (5)  the amount of the balances expected at the end of
  the year in which the budget is being prepared;
               (6)  the estimated amount of revenue and balances
  available to cover the proposed budget; and
               (7)  the estimated tax rate to be required. (Acts 71st
  Leg., R.S., Ch. 548, Sec. 6.04.)
         Sec. 1086.152.  NOTICE; HEARING; ADOPTION OF BUDGET. (a)
  The board shall hold a public hearing on the proposed annual budget.
         (b)  The board shall publish notice of the hearing in a
  newspaper of general circulation in the district not later than the
  10th day before the date of the hearing.
         (c)  Any district resident is entitled to be present and
  participate at the hearing.
         (d)  At the conclusion of the hearing, the board shall adopt
  a budget by acting on the budget proposed by the district
  administrator. The board may make any changes in the proposed
  budget that the board judges to be in the interests of the
  taxpayers.
         (e)  The budget is effective only after adoption by the
  board. (Acts 71st Leg., R.S., Ch. 548, Sec. 6.05.)
         Sec. 1086.153.  AMENDMENTS TO BUDGET. After the annual
  budget is adopted, the budget may be amended on the board's
  approval. (Acts 71st Leg., R.S., Ch. 548, Sec. 6.06.)
         Sec. 1086.154.  RESTRICTION ON EXPENDITURES. Money may be
  spent only for an expense included in the annual budget or an
  amendment to the budget. (Acts 71st Leg., R.S., Ch. 548, Sec.
  6.07.)
         Sec. 1086.155.  FISCAL YEAR. (a) The district operates
  according to a fiscal year established by the board.
         (b)  The fiscal year may not be changed:
               (1)  during a period that revenue bonds of the district
  are outstanding; or
               (2)  more than once in a 24-month period. (Acts 71st
  Leg., R.S., Ch. 548, Sec. 6.01.)
         Sec. 1086.156.  ANNUAL AUDIT. The board annually shall have
  an audit made of the district's financial condition. (Acts 71st
  Leg., R.S., Ch. 548, Sec. 6.02.)
         Sec. 1086.157.  INSPECTION OF ANNUAL AUDIT AND DISTRICT
  RECORDS. The annual audit and other district records are open to
  inspection during regular business hours at the district's
  principal office. (Acts 71st Leg., R.S., Ch. 548, Sec. 6.03.)
         Sec. 1086.158.  FINANCIAL REPORT. As soon as practicable
  after the close of the fiscal year, the district administrator
  shall prepare for the board:
               (1)  a sworn statement of the amount of district money;
  and
               (2)  an account of the disbursements of that money.
  (Acts 71st Leg., R.S., Ch. 548, Sec. 6.08.)
         Sec. 1086.159.  DEPOSITORY. (a) The board shall select at
  least one bank to serve as a depository for district money.
         (b)  District money, other than money invested as provided by
  Section 1086.160(b) and money transmitted to a bank of payment as a
  trustee for bonds or obligations issued or assumed by the district,
  shall be deposited as received with the depository bank and shall
  remain on deposit. This subsection does not limit the power of the
  board to:
               (1)  place a portion of district money on time deposit;
  or
               (2)  purchase certificates of deposit.
         (c)  The district may not deposit money with a bank in an
  amount that exceeds the maximum amount secured by the Federal
  Deposit Insurance Corporation unless the bank first executes a bond
  or other security in an amount sufficient to secure from loss the
  district money that exceeds the amount secured by the Federal
  Deposit Insurance Corporation. (Acts 71st Leg., R.S., Ch. 548,
  Sec. 6.10.)
         Sec. 1086.160.  SPENDING AND INVESTMENT RESTRICTIONS. (a)
  Except as provided by Sections 1086.111, 1086.201, 1086.204, and
  1086.205, the district may not incur a debt payable from district
  revenue other than the revenue on hand or to be on hand in the
  current and immediately following district fiscal years.
         (b)  The board may invest operating, depreciation, or
  building reserves only in funds or securities specified by Chapter
  2256, Government Code. (Acts 71st Leg., R.S., Ch. 548, Sec. 6.09.)
  [Sections 1086.161-1086.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 1086.201.  GENERAL OBLIGATION BONDS. If authorized by
  an election, the board may issue and sell general obligation bonds
  in the name and on the faith and credit of the district to:
               (1)  purchase, construct, acquire, repair, or renovate
  buildings or improvements;
               (2)  equip buildings or improvements for hospital
  purposes; or
               (3)  acquire and operate a mobile emergency medical
  service. (Acts 71st Leg., R.S., Ch. 548, Sec. 7.01.)
         Sec. 1086.202.  TAX TO PAY GENERAL OBLIGATION BONDS. (a) At
  the time general obligation bonds are issued by the district, the
  board shall impose an ad valorem tax at a rate sufficient to create
  an interest and sinking fund to pay the principal of and interest on
  the bonds as the bonds mature.
         (b)  The tax required by this section together with any other
  ad valorem tax the district imposes may not in any year exceed the
  limit approved by the voters at the election authorizing the
  imposition of the tax. (Acts 71st Leg., R.S., Ch. 548, Sec. 7.02.)
         Sec. 1086.203.  GENERAL OBLIGATION BOND ELECTION. (a) The
  district may issue general obligation bonds only if the bonds are
  authorized by a majority of the district voters voting at an
  election held for that purpose.
         (b)  The board may order a bond election.
         (c)  The order calling the election must specify:
               (1)  the nature and date of the election;
               (2)  the hours during which the polls will be open;
               (3)  the location of the polling places;
               (4)  the amount of the bonds to be authorized; and
               (5)  the maximum maturity of the bonds.
         (d)  Notice of a bond election shall be given as provided by
  Section 1251.003, Government Code.
         (e)  The board shall declare the results of the election.
  (Acts 71st Leg., R.S., Ch. 548, Sec. 7.03.)
         Sec. 1086.204.  REVENUE BONDS. (a) The board may issue
  revenue bonds to:
               (1)  purchase, construct, acquire, repair, equip, or
  renovate buildings or improvements for hospital purposes;
               (2)  acquire sites to be used for hospital purposes; or
               (3)  acquire and operate a mobile emergency medical
  service to assist the district in carrying out its hospital
  purposes.
         (b)  The bonds must be payable from and secured by a pledge of
  all or part of the revenue derived from the operation of the
  district's hospital system.
         (c)  The bonds may be additionally secured by a mortgage or
  deed of trust lien on all or part of district property.
         (d)  The bonds must be issued in the manner provided by
  Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
  Health and Safety Code, for issuance of revenue bonds by a county
  hospital authority. (Acts 71st Leg., R.S., Ch. 548, Sec. 7.04.)
         Sec. 1086.205.  REFUNDING BONDS. (a) District refunding
  bonds may be issued 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 71st
  Leg., R.S., Ch. 548, Secs. 7.05(a), (c) (part).)
         Sec. 1086.206.  MATURITY OF BONDS. District bonds must
  mature not later than 50 years after the date of issuance. (Acts
  71st Leg., R.S., Ch. 548, Sec. 7.06 (part).)
         Sec. 1086.207.  EXECUTION OF BONDS. The board president
  shall execute the district's bonds in the district's name, and the
  board secretary shall countersign the bonds in the manner provided
  by Chapter 618, Government Code. (Acts 71st Leg., R.S., Ch. 548,
  Sec. 7.07.)
         Sec. 1086.208.  BONDS EXEMPT FROM TAXATION. The following
  are exempt from taxation by this state or a political subdivision of
  this state:
               (1)  bonds issued by the district;
               (2)  any transaction relating to the bonds; and
               (3)  profits made in the sale of the bonds. (Acts 71st
  Leg., R.S., Ch. 548, Sec. 7.11 (part).)
  [Sections 1086.209-1086.250 reserved for expansion]
  SUBCHAPTER F. TAXES
         Sec. 1086.251.  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)  district maintenance and operating expenses.
         (c)  The district may not impose a tax to pay the principal of
  or interest on revenue bonds issued under this chapter. (Acts 71st
  Leg., R.S., Ch. 548, Secs. 8.01(a) (part), (c), (d), 8.02(b).)
         Sec. 1086.252.  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.
         (d)  An appointed director may not vote on the adoption of
  the tax rate to be set by the board. (Acts 71st Leg., R.S., Ch. 548,
  Secs. 8.01(a) (part), (b), 8.03 (part).)
         Sec. 1086.253.  TAX ASSESSOR-COLLECTOR. The board may
  provide for the appointment of a tax assessor-collector for the
  district or may contract for the assessment and collection of taxes
  as provided by the Tax Code. (Acts 71st Leg., R.S., Ch. 548, Sec. 8.04(b).)
 
  CHAPTER 1098. STONEWALL COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1098.001.  DEFINITIONS 
  Sec. 1098.002.  AUTHORITY FOR OPERATION 
  Sec. 1098.003.  POLITICAL SUBDIVISION 
  Sec. 1098.004.  DISTRICT TERRITORY 
  Sec. 1098.005.  CORRECTION OF INVALID PROCEDURES 
  Sec. 1098.006.  DISTRICT SUPPORT AND MAINTENANCE NOT
                   STATE OBLIGATION 
  Sec. 1098.007.  RESTRICTION ON STATE FINANCIAL
                   ASSISTANCE 
  [Sections 1098.008-1098.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1098.051.  BOARD ELECTION; TERM 
  Sec. 1098.052.  NOTICE OF ELECTION 
  Sec. 1098.053.  QUALIFICATIONS FOR OFFICE 
  Sec. 1098.054.  BOARD VACANCY 
  Sec. 1098.055.  OFFICERS 
  Sec. 1098.056.  COMPENSATION; EXPENSES 
  Sec. 1098.057.  VOTING REQUIREMENT 
  Sec. 1098.058.  DISTRICT ADMINISTRATOR; ASSISTANT
                   ADMINISTRATOR 
  Sec. 1098.059.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1098.060.  STAFF AND EMPLOYEES; RECRUITMENT OF
                   PERSONNEL 
  Sec. 1098.061.  EDUCATIONAL PROGRAMS; COURSES 
  Sec. 1098.062.  RETIREMENT BENEFITS 
  Sec. 1098.063.  MAINTENANCE OF RECORDS; PUBLIC
                   INSPECTION 
  Sec. 1098.064.  SEAL 
  [Sections 1098.065-1098.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1098.101.  DISTRICT RESPONSIBILITY 
  Sec. 1098.102.  RESTRICTION ON TAXATION AND DEBT 
  Sec. 1098.103.  MANAGEMENT AND CONTROL OF DISTRICT 
  Sec. 1098.104.  HOSPITAL SYSTEM 
  Sec. 1098.105.  RULES 
  Sec. 1098.106.  PURCHASING AND ACCOUNTING PROCEDURES 
  Sec. 1098.107.  DISTRICT PROPERTY, FACILITIES, AND
                   EQUIPMENT 
  Sec. 1098.108.  EMINENT DOMAIN 
  Sec. 1098.109.  GIFTS AND ENDOWMENTS 
  Sec. 1098.110.  BIDDING REQUIREMENTS 
  Sec. 1098.111.  OPERATING AND MANAGEMENT CONTRACTS 
  Sec. 1098.112.  CONTRACTS FOR HEALTH CARE 
  Sec. 1098.113.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1098.114.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1098.115-1098.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 1098.151.  BUDGET 
  Sec. 1098.152.  NOTICE; HEARING; APPROVAL OF BUDGET 
  Sec. 1098.153.  AMENDMENTS TO BUDGET 
  Sec. 1098.154.  SPENDING RESTRICTIONS 
  Sec. 1098.155.  FISCAL YEAR 
  Sec. 1098.156.  ANNUAL AUDIT 
  Sec. 1098.157.  INSPECTION OF ANNUAL AUDIT AND DISTRICT
                   RECORDS 
  Sec. 1098.158.  FINANCIAL REPORT 
  Sec. 1098.159.  DEPOSITORY OR TREASURER 
  Sec. 1098.160.  GENERAL AUTHORITY TO BORROW MONEY;
                   SECURITY 
  Sec. 1098.161.  AUTHORITY TO BORROW MONEY IN EMERGENCY;
                   SECURITY 
  [Sections 1098.162-1098.200 reserved for expansion]
  SUBCHAPTER E. BONDS
  Sec. 1098.201.  GENERAL OBLIGATION BONDS 
  Sec. 1098.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1098.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1098.204.  MATURITY OF GENERAL OBLIGATION BONDS 
  Sec. 1098.205.  EXECUTION OF GENERAL OBLIGATION BONDS 
  Sec. 1098.206.  REVENUE BONDS 
  [Sections 1098.207-1098.250 reserved for expansion]
  SUBCHAPTER F. TAXES
  Sec. 1098.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1098.252.  TAX RATE 
  Sec. 1098.253.  TAX ASSESSOR-COLLECTOR 
  [Sections 1098.254-1098.300 reserved for expansion]
  SUBCHAPTER G. DISSOLUTION
  Sec. 1098.301.  DISSOLUTION; ELECTION 
  Sec. 1098.302.  NOTICE OF ELECTION 
  Sec. 1098.303.  BALLOT 
  Sec. 1098.304.  ELECTION RESULTS 
  Sec. 1098.305.  TRANSFER, SALE, OR ADMINISTRATION OF
                   ASSETS 
  Sec. 1098.306.  SALE OR TRANSFER OF ASSETS AND
                   LIABILITIES 
  Sec. 1098.307.  IMPOSITION OF TAX AND RETURN OF SURPLUS
                   TAXES 
  Sec. 1098.308.  REPORT; DISSOLUTION ORDER 
  CHAPTER 1098. STONEWALL COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1098.001.  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 Stonewall County Hospital
  District. (New.)
         Sec. 1098.002.  AUTHORITY FOR OPERATION. The Stonewall
  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 58th Leg., R.S., Ch. 54,
  Sec. 1 (part).)
         Sec. 1098.003.  POLITICAL SUBDIVISION. The district is a
  political subdivision of this state. (Acts 58th Leg., R.S., Ch. 54,
  Sec. 14 (part).)
         Sec. 1098.004.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of Stonewall County,
  Texas. (Acts 58th Leg., R.S., Ch. 54, Sec. 1 (part).)
         Sec. 1098.005.  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 58th Leg., R.S., Ch. 54, Sec. 17 (part).)
         Sec. 1098.006.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE
  OBLIGATION. This state may not become obligated for the support or
  maintenance of the district.  (Acts 58th Leg., R.S., Ch. 54, Sec. 16
  (part).)
         Sec. 1098.007.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.
  The legislature may not make a direct appropriation for the
  construction, maintenance, or improvement of a district facility.
  (Acts 58th Leg., R.S., Ch. 54, Sec. 16 (part).)
  [Sections 1098.008-1098.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1098.051.  BOARD ELECTION; TERM. (a)  The district is
  governed by a board of five directors elected from the district at
  large by place.
         (b)  Directors serve staggered three-year terms.
         (c)  A directors' election shall be held annually on the May
  uniform election date prescribed by Section 41.001, Election Code.
  (Acts 58th Leg., R.S., Ch. 54, Secs. 3(a) (part), (c) (part).)
         Sec. 1098.052.  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 58th Leg., R.S., Ch. 54, Sec. 3(c) (part).)
         Sec. 1098.053.  QUALIFICATIONS FOR OFFICE. (a)  To be
  eligible to be a candidate for or to serve as a director, a person
  must be:
               (1)  a resident of the district; and
               (2)  a qualified voter.
         (b)  A district employee may not serve as a director.  (Acts
  58th Leg., R.S., Ch. 54, Sec. 3(d).)
         Sec. 1098.054.  BOARD VACANCY. (a)  If a vacancy occurs in
  the office of director, the remaining directors by majority vote
  shall fill the vacancy for the unexpired term.
         (b)  If the number of directors is reduced to fewer than
  three for any reason, the remaining directors shall immediately
  call a special election to fill the vacancies. If the remaining
  directors do not call the election, a district court, on
  application of a qualified voter or taxpayer of the district, may
  order the directors to hold the election. (Acts 58th Leg., R.S.,
  Ch. 54, Sec. 3(b) (part).)
         Sec. 1098.055.  OFFICERS. (a)  The board shall elect:
               (1)  a president and vice president from among its
  members; and
               (2)  a secretary and treasurer who is not required to be
  a director.
         (b)  Each officer of the board serves a one-year term. (Acts
  58th Leg., R.S., Ch. 54, Sec. 3(b) (part).)
         Sec. 1098.056.  COMPENSATION; EXPENSES. A director serves
  without compensation but may be reimbursed for actual expenses
  incurred in the performance of the director's official duties. The
  expenses must be:
               (1)  reported in the district's minutes; and
               (2)  approved by the board. (Acts 58th Leg., R.S., Ch.
  54, Sec. 4(a) (part).)
         Sec. 1098.057.  VOTING REQUIREMENT. A concurrence of three
  directors is sufficient in any matter relating to district
  business. (Acts 58th Leg., R.S., Ch. 54, Sec. 3(b) (part).)
         Sec. 1098.058.  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
  compensation as determined by the board.
         (d)  Before 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 faithful performance of the
  administrator's duties under this chapter; and
               (2)  contains any other condition the board requires.
         (e)  The board may pay for the bond with district money.
  (Acts 58th Leg., R.S., Ch. 54, Sec. 4(b).)
         Sec. 1098.059.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
  Subject to the limitations prescribed by the board, the district
  administrator shall:
               (1)  supervise the work and activities of the district;
  and
               (2)  direct the general affairs of the district. (Acts
  58th Leg., R.S., Ch. 54, Sec. 4(c).)
         Sec. 1098.060.  STAFF AND EMPLOYEES; RECRUITMENT OF
  PERSONNEL. (a)  The district may:
               (1)  appoint physicians to the district's staff; and
               (2)  employ technicians, nurses, fiscal agents,
  accountants, architects, attorneys, and other necessary employees.
         (b)  The board may delegate to the district administrator the
  authority to employ persons for the district.
         (c)  The board may spend district money to recruit
  physicians, nurses, and other trained medical personnel. (Acts
  58th Leg., R.S., Ch. 54, Secs. 4(d), (j).)
         Sec. 1098.061.  EDUCATIONAL PROGRAMS; COURSES. The board
  may provide or contract for the provision of educational programs
  or courses for district employees and medical staff. (Acts 58th
  Leg., R.S., Ch. 54, Sec. 4(l).)
         Sec. 1098.062.  RETIREMENT BENEFITS. The board may provide
  retirement benefits for district employees by:
               (1)  establishing or administering a retirement
  program; or
               (2)  participating in:
                     (A)  the Texas County and District Retirement
  System; or
                     (B)  another statewide retirement system in which
  the district is eligible to participate. (Acts 58th Leg., R.S., Ch.
  54, Sec. 4(i).)
         Sec. 1098.063.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.
  All district records, including books, accounts, notices, and
  minutes, and all other matters of the district and the operation of
  its facilities, shall be:
               (1)  maintained at the district's office; and
               (2)  open to public inspection at the district's office
  at all reasonable hours. (Acts 58th Leg., R.S., Ch. 54, Sec. 7(b).)
         Sec. 1098.064.  SEAL. The board may adopt a seal for the
  district. (Acts 58th Leg., R.S., Ch. 54, Sec. 7(a) (part).)
  [Sections 1098.065-1098.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1098.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for providing medical and hospital care for the
  district's needy inhabitants. (Acts 58th Leg., R.S., Ch. 54, Sec. 2
  (part).)
         Sec. 1098.102.  RESTRICTION ON TAXATION AND DEBT. Stonewall
  County or another governmental entity in which the district is
  located may not impose a tax or issue bonds or other obligations for
  hospital purposes or to provide medical care for district
  residents. (Acts 58th Leg., R.S., Ch. 54, Sec. 2A.)
         Sec. 1098.103.  MANAGEMENT AND CONTROL OF DISTRICT. The
  management and control of the district is vested in the board.  
  (Acts 58th Leg., R.S., Ch. 54, Sec. 4(a) (part).)
         Sec. 1098.104.  HOSPITAL SYSTEM. The district shall provide
  for:
               (1)  the establishment of a hospital system to provide
  medical and hospital care for district residents by:
                     (A)  purchasing, constructing, acquiring,
  repairing, or renovating buildings and improvements; and
                     (B)  equipping the buildings and improvements;
  and
               (2)  the administration of the hospital system for
  hospital purposes. (Acts 58th Leg., R.S, Ch. 54, Sec. 2 (part).)
         Sec. 1098.105.  RULES. (a) The board may adopt rules
  governing the operation of the district and district facilities.
         (b)  The rules may, on approval by the board, be published in
  booklet form at district expense and made available to any taxpayer
  on request. (Acts 58th Leg., R.S., Ch. 54, Sec. 7(c).)
         Sec. 1098.106.  PURCHASING AND ACCOUNTING PROCEDURES. (a)  
  The board may prescribe the method and manner of making purchases
  and expenditures by and for the district.
         (b)  The board shall prescribe:
               (1)  all accounting and control procedures; and
               (2)  the method of purchasing necessary supplies,
  materials, and equipment. (Acts 58th Leg., R.S., Ch. 54, Sec. 7(a)
  (part).)
         Sec. 1098.107.  DISTRICT PROPERTY, FACILITIES, AND
  EQUIPMENT. (a) The board shall determine:
               (1)  the type, number, and location of buildings
  required to maintain an adequate hospital system; and
               (2)  the type of equipment necessary for hospital care.
         (b)  The board may:
               (1)  establish and equip a clinic as part of the
  hospital system;
               (2)  acquire property, including facilities and
  equipment, for the district for use in the hospital system; and
               (3)  mortgage or pledge the property as security for
  payment of the purchase price.
         (c)  The board may lease district hospital facilities to or
  from individuals, companies, corporations, or other legal
  entities.
         (d)  The board may sell or otherwise dispose of property,
  including facilities or equipment. (Acts 58th Leg., R.S., Ch. 54,
  Secs. 4(f), (g).)
         Sec. 1098.108.  EMINENT DOMAIN. (a) The district may
  exercise the power of eminent domain to acquire a fee simple or
  other interest in any type of property, real, personal, or mixed,
  located in district territory, if the interest is necessary or
  convenient to exercise a right, power, privilege, or function
  conferred on the district by this chapter.
         (b)  The district must exercise the power of eminent domain
  in the manner provided by Chapter 21, Property Code, except the
  district is not required to deposit in the trial court money or a
  bond as provided by Section 21.021, Property Code.
         (c)  In a condemnation proceeding brought by the district,
  the district is not required to:
               (1)  pay in advance or provide a bond or other security
  for costs in the trial court;
               (2)  provide a bond for the issuance of a temporary
  restraining order or a temporary injunction; or
               (3)  provide a bond for costs or a supersedeas bond on
  an appeal or petition for review. (Acts 58th Leg., R.S., Ch. 54,
  Sec. 9.)
         Sec. 1098.109.  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 58th Leg., R.S., Ch. 54, Sec.
  12.)
         Sec. 1098.110.  BIDDING REQUIREMENTS. The district shall
  comply with the bidding requirements prescribed by Chapter 271,
  Local Government Code. (Acts 58th Leg., R.S., Ch. 54, Sec. 7(a)
  (part).)
         Sec. 1098.111.  OPERATING AND MANAGEMENT CONTRACTS. The
  board may enter into an operating or management contract relating
  to a hospital facility.  The term of the contract may not exceed 25
  years. (Acts 58th Leg., R.S., Ch. 54, Sec. 4(h).)
         Sec. 1098.112.  CONTRACTS FOR HEALTH CARE. The board may
  contract with any public or private entity, including the federal
  government, this state, a political subdivision, or a charitable
  organization, to provide health care or related services inside or
  outside the district. (Acts 58th Leg., R.S., Ch. 54, Sec. 4(e).)
         Sec. 1098.113.  PAYMENT FOR TREATMENT; PROCEDURES. (a)
  When a patient who resides in the district is admitted to a district
  facility, the district administrator shall have an inquiry made
  into the circumstances of:
               (1)  the patient; and
               (2)  the patient's relatives legally liable for the
  patient's support.
         (b)  If the district administrator determines that the
  patient or those relatives cannot pay for all or part of the
  patient's care and treatment in the hospital, the amount that
  cannot be paid becomes a charge against the district.
         (c)  If the district administrator determines that the
  patient or those relatives are liable to pay for all or part of the
  patient's care and treatment, the patient or those relatives shall
  be ordered to pay the district treasurer a specified amount each
  week for the patient's support. The amount ordered must be
  proportionate to their financial ability.
         (d)  The district administrator may collect the amount from
  the patient's estate, or from those relatives legally liable for
  the patient's support, in the manner provided by law for the
  collection of expenses of the last illness of a deceased person.
         (e)  The board may institute a suit to collect an amount owed
  to the district by a patient who has not been determined to be
  unable to pay under this section.
         (f)  If there is a dispute as to the ability to pay, or doubt
  in the mind of the district administrator, the board shall hold a
  hearing and, after calling witnesses, shall:
               (1)  resolve the dispute or doubt; and
               (2)  issue an appropriate order.
         (g)  Either party to the dispute may appeal the order to the
  district court.  (Acts 58th Leg., R.S., Ch. 54, Secs. 4(m), 11.)
         Sec. 1098.114.  AUTHORITY TO SUE AND BE SUED. As a
  governmental agency, the district may sue and be sued in the
  district's own name in any court of this state. (Acts 58th Leg.,
  R.S., Ch. 54, Sec. 14 (part).)
  [Sections 1098.115-1098.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 1098.151.  BUDGET. The board annually shall require a
  budget to be prepared for the next fiscal year that includes:
               (1)  proposed expenditures and disbursements;
               (2)  estimated receipts and collections; and
               (3)  the amount of taxes required to be imposed for the
  year. (Acts 58th Leg., R.S., Ch. 54, Secs. 8(b) (part), (c)
  (part).)
         Sec. 1098.152.  NOTICE; HEARING; APPROVAL OF BUDGET. (a)  
  The board shall hold a public hearing on the proposed budget.
         (b)  Notice of the hearing must be published at least once in
  a newspaper of general circulation in Stonewall County not later
  than the 10th day before the date of the hearing.
         (c)  Any district taxpayer is entitled to:
               (1)  appear at the time and place designated in the
  notice; and
               (2)  be heard regarding any item included in the
  proposed budget.
         (d)  The annual budget must be approved by the board of
  directors. (Acts 58th Leg., R.S., Ch. 54, Secs. 8(b) (part), (c)
  (part).)
         Sec. 1098.153.  AMENDMENTS TO BUDGET. The annual budget may
  be amended on the board's approval. (Acts 58th Leg., R.S., Ch. 54,
  Sec. 8(b) (part).)
         Sec. 1098.154.  SPENDING RESTRICTIONS. (a)  Except as
  otherwise provided by this chapter, the district may not incur an
  obligation payable from district revenue other than revenue held by
  the district or to be held by the district in the current district
  fiscal year.
         (b)  Money may be spent only for an expense included in the
  budget or an amendment to the budget. (Acts 58th Leg., R.S., Ch.
  54, Secs. 7(a) (part), 8(b) (part).)
         Sec. 1098.155.  FISCAL YEAR. (a)  The district operates
  according to a fiscal year established by the board.
         (b)  The fiscal year may not be changed:
               (1)  if revenue bonds of the district are outstanding;
  or
               (2)  more than once in a 24-month period. (Acts 58th
  Leg., R.S., Ch. 54, Sec. 8(a) (part).)
         Sec. 1098.156.  ANNUAL AUDIT. The board annually shall have
  an audit made of the district's books and records for the fiscal
  year.  (Acts 58th Leg., R.S., Ch. 54, Sec. 8(a) (part).)
         Sec. 1098.157.  INSPECTION OF ANNUAL AUDIT AND DISTRICT
  RECORDS. The annual audit and other district records are open to
  inspection during regular business hours at the district's
  principal office.  (Acts 58th Leg., R.S., Ch. 54, Sec. 8(a) (part).)
         Sec. 1098.158.  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 58th Leg., R.S., Ch. 54, Sec. 8(b) (part).)
         Sec. 1098.159.  DEPOSITORY OR TREASURER. (a)  The board by
  resolution shall designate one or more banks to serve as the
  district's depository or treasurer.
         (b)  District money shall be deposited on receipt with a
  depository bank, except that sufficient money must be remitted to
  an appropriate bank to pay the principal of and interest on the
  district's outstanding bonds, or other obligations assumed by the
  district, on or before the maturity date of the principal and
  interest.
         (c)  Money in the depository bank or banks that is not
  insured by the Federal Deposit Insurance Corporation must be
  secured in the manner provided by law for security of county money.
         (d)  Membership on the district's board of an officer or
  director of a bank does not disqualify that bank from being
  designated as depository. (Acts 58th Leg., R.S., Ch. 54, Sec. 10.)
         Sec. 1098.160.  GENERAL AUTHORITY TO BORROW MONEY; SECURITY.
  (a) The board may borrow money at a rate not to exceed the maximum
  annual percentage rate allowed by law for district obligations at
  the time the loan is made.
         (b)  To secure a loan, the board may pledge:
               (1)  district revenue that is not pledged to pay the
  district's bonded indebtedness;
               (2)  tax revenue to be collected by the district 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 third 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 58th
  Leg., R.S., Ch. 54, Sec. 15A.)
         Sec. 1098.161.  AUTHORITY TO BORROW MONEY IN EMERGENCY;
  SECURITY. (a) The board may borrow money at a rate not to exceed
  the maximum annual percentage rate allowed by law for district
  obligations at the time the loan is made if the board determines
  that:
               (1)  money is not available to meet a lawful obligation
  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 bond indebtedness;
               (2)  tax revenue to be collected by the district during
  the 12-month period following the date of the pledge that has not
  been pledged to pay the principal of or interest on district bonds;
  or
               (3)  district bonds that have been authorized but not
  sold.
         (c)  A loan for which tax revenue or bonds are pledged must
  mature not later than the third anniversary of the date the loan is
  made. A loan for which other district revenue is pledged must
  mature not later than the fifth anniversary of the date the loan is
  made.
         (d)  The board may not spend loan proceeds obtained under
  this section for a purpose other than:
               (1)  the purpose for which the board determined the
  emergency existed; and
               (2)  if tax revenue or bonds are pledged to pay the
  loan, the purpose for which the taxes were imposed or the bonds were
  authorized. (Acts 58th Leg., R.S., Ch. 54, Sec. 15.)
  [Sections 1098.162-1098.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 1098.201.  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 58th Leg., R.S., Ch. 54, Sec. 6(a).)
         Sec. 1098.202.  TAX TO PAY GENERAL OBLIGATION BONDS. (a)  At
  the time general obligation bonds are issued by the district, the
  board shall impose an ad valorem tax at a rate sufficient to create
  an interest and sinking fund to pay the principal of and interest on
  the bonds as the bonds mature.
         (b)  The tax required by this section together with any other
  ad valorem tax the district imposes may not in any year exceed the
  limit approved by the voters at the election authorizing the
  imposition of taxes. (Acts 58th Leg., R.S., Ch. 54, Sec. 6(b).)
         Sec. 1098.203.  GENERAL OBLIGATION BOND ELECTION. (a)  The
  district may issue general obligation bonds only if the bonds are
  authorized by a majority of the district voters voting at an
  election held for that purpose.
         (b)  The board may order a bond election.
         (c)  The election must be conducted in accordance with
  Chapter 1251, Government Code. (Acts 58th Leg., R.S., Ch. 54, Secs.
  6(c), (d).)
         Sec. 1098.204.  MATURITY OF GENERAL OBLIGATION BONDS.
  District general obligation bonds must mature not later than 40
  years after the date of issuance. (Acts 58th Leg., R.S., Ch. 54,
  Sec. 6(e) (part).)
         Sec. 1098.205.  EXECUTION OF GENERAL OBLIGATION BONDS. The
  board president shall execute the general obligation bonds in the
  district's name and the board secretary shall countersign the bonds
  in the manner provided by Chapter 618, Government Code. (Acts 58th
  Leg., R.S., Ch. 54, Sec. 6(e) (part).)
         Sec. 1098.206.  REVENUE BONDS. (a)  The board may issue
  revenue bonds to:
               (1)  purchase, construct, acquire, repair, equip, or
  renovate buildings or improvements for hospital purposes;
               (2)  acquire sites to be used for hospital purposes; or
               (3)  acquire and operate a mobile emergency medical or
  air ambulance service to assist the district in carrying out its
  hospital purposes.
         (b)  The bonds must be payable from and secured by a pledge of
  all or part of the revenue derived from the operation of the
  district's hospital system.
         (c)  The bonds may be additionally secured by a mortgage or
  deed of trust lien on all or part of district property.
         (d)  The bonds must be issued in the manner provided by
  Sections 264.042, 264.043, 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 58th Leg., R.S., Ch. 54, Sec. 6A.)
  [Sections 1098.207-1098.250 reserved for expansion]
  SUBCHAPTER F. TAXES
         Sec. 1098.251.  IMPOSITION OF AD VALOREM TAX. (a)  On final
  approval of the budget, the board shall impose a tax on all property
  in the district subject to district taxation.
         (b)  The tax may be used to:
               (1)  pay the indebtedness assumed or issued by the
  district;
               (2)  provide for the maintenance and operation 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 district may not impose a tax to pay the principal of
  or interest on revenue bonds issued by the district.  (Acts 58th
  Leg., R.S., Ch. 54, Secs. 5(a) (part), (b), 8(c) (part).)
         Sec. 1098.252.  TAX RATE. (a)  The board may impose the tax
  at a rate not to exceed the limit approved by the voters.
         (b)  The tax rate for all purposes may not exceed 75 cents on
  each $100 valuation of all taxable property in the district. (Acts
  58th Leg., R.S., Ch. 54, Sec. 5(a) (part).)
         Sec. 1098.253.  TAX ASSESSOR-COLLECTOR. (a)  Except as
  provided by Subsection (b), the tax assessor-collector of Stonewall
  County shall assess and collect taxes imposed by the district.
         (b)  The board may provide for the appointment of a tax
  assessor-collector for the district or may contract for the
  assessment and collection of taxes as provided by the Tax Code.
  (Acts 58th Leg., R.S., Ch. 54, Secs. 5(c) (part), 8(c) (part).)
  [Sections 1098.254-1098.300 reserved for expansion]
  SUBCHAPTER G. DISSOLUTION
         Sec. 1098.301.  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 58th Leg., R.S., Ch. 54,
  Secs. 15B(a), (b), (c) (part).)
         Sec. 1098.302.  NOTICE OF ELECTION. (a) The board shall
  give notice of an election under this subchapter by publishing the
  election order in a newspaper with general circulation in the
  district once a week for two consecutive weeks.
         (b)  The first publication of the notice must appear not
  later than the 35th day before the date set for the election. (Acts
  58th Leg., R.S., Ch. 54, Sec. 15B(d) (part).)
         Sec. 1098.303.  BALLOT. The ballot for an election under
  this subchapter must be printed to permit voting for or against the
  proposition: "The dissolution of the Stonewall County Hospital
  District." (Acts 58th Leg., R.S., Ch. 54, Sec. 15B(d) (part).)
         Sec. 1098.304.  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 58th Leg., R.S., Ch. 54, Sec.
  15B(e).)
         Sec. 1098.305.  TRANSFER, SALE, OR ADMINISTRATION OF ASSETS.
  (a) If a majority of the votes in an election held under this
  subchapter favor dissolution, the board shall:
               (1)  transfer the land, buildings, improvements,
  equipment, and other assets that belong to the district to a county
  or to another governmental entity in Stonewall County;
               (2)  sell the assets and liabilities to another person;
  or
               (3)  administer the property, assets, and debts until
  all money has been disposed of and all district debts have been paid
  or settled.
         (b)  If the board makes the transfer under Subsection (a)(1),
  the county or entity assumes all debts and obligations of the
  district at the time of the transfer, and the district is dissolved.
  (Acts 58th Leg., R.S., Ch. 54, Secs. 15B(f), (g).)
         Sec. 1098.306.  SALE OR TRANSFER OF ASSETS AND LIABILITIES.
  (a) The district may not be dissolved unless the board provides for
  the sale or transfer of the district's assets and liabilities to
  another person.
         (b)  The dissolution of the district and the sale or transfer
  of the district's assets and liabilities may not contravene a trust
  indenture or bond resolution relating to the district's outstanding
  bonds.  The dissolution and sale or transfer does not diminish or
  impair the rights of a holder of an outstanding bond, warrant, or
  other obligation of the district.
         (c)  The sale or transfer of the district's assets and
  liabilities must satisfy the debt and bond obligations of the
  district in a manner that protects the interests of district
  residents, including the residents' collective property rights in
  the district's assets.
         (d)  The district may not transfer or dispose of the
  district's assets except for due compensation unless:
               (1)  the transfer is made to another governmental
  agency that serves the district; and
               (2)  the transferred assets are to be used for the
  benefit of district residents.
         (e)  A grant from federal funds is an obligation to be repaid
  in satisfaction. (Acts 58th Leg., R.S., Ch. 54, Secs. 15B(m), (n).)
         Sec. 1098.307.  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 board 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 board
  secretary to transmit the money to the county tax
  assessor-collector. (Acts 58th Leg., R.S., Ch. 54, Secs. 15B(h),
  (i), (j).)
         Sec. 1098.308.  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 Stonewall County summarizing the board's actions in dissolving
  the district.
         (b)  Not later than the 10th day after the date the
  Commissioners Court of Stonewall 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 58th Leg., R.S., Ch. 54, Secs. 15B(k), (l).)
 
  CHAPTER 1099. STRATFORD HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1099.001.  DEFINITIONS 
  Sec. 1099.002.  AUTHORITY FOR OPERATION 
  Sec. 1099.003.  ESSENTIAL PUBLIC FUNCTION 
  Sec. 1099.004.  DISTRICT TERRITORY 
  Sec. 1099.005.  CORRECTION OF INVALID PROCEDURES 
  Sec. 1099.006.  DISTRICT SUPPORT AND MAINTENANCE NOT
                   STATE OBLIGATION 
  Sec. 1099.007.  RESTRICTION ON STATE FINANCIAL
                   ASSISTANCE 
  [Sections 1099.008-1099.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1099.051.  BOARD ELECTION; TERM 
  Sec. 1099.052.  NOTICE OF ELECTION 
  Sec. 1099.053.  QUALIFICATIONS FOR OFFICE 
  Sec. 1099.054.  BOND 
  Sec. 1099.055.  BOARD VACANCY 
  Sec. 1099.056.  OFFICERS 
  Sec. 1099.057.  COMPENSATION; EXPENSES 
  Sec. 1099.058.  VOTING REQUIREMENT 
  Sec. 1099.059.  DISTRICT MANAGER; ASSISTANT MANAGER 
  Sec. 1099.060.  GENERAL DUTIES OF DISTRICT MANAGER 
  Sec. 1099.061.  APPOINTMENT AND DISMISSAL OF STAFF AND
                   EMPLOYEES 
  Sec. 1099.062.  SENIORITY; RETIREMENT BENEFITS 
  [Sections 1099.063-1099.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1099.101.  DISTRICT RESPONSIBILITY 
  Sec. 1099.102.  RESTRICTION ON POLITICAL SUBDIVISION
                   TAXATION AND DEBT 
  Sec. 1099.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
  Sec. 1099.104.  HOSPITAL SYSTEM 
  Sec. 1099.105.  RULES 
  Sec. 1099.106.  PURCHASING AND ACCOUNTING PROCEDURES 
  Sec. 1099.107.  DISTRICT PROPERTY, FACILITIES, AND
                   EQUIPMENT 
  Sec. 1099.108.  EMINENT DOMAIN 
  Sec. 1099.109.  GIFTS AND ENDOWMENTS 
  Sec. 1099.110.  CONSTRUCTION AND PURCHASE CONTRACTS 
  Sec. 1099.111.  OPERATING AND MANAGEMENT CONTRACTS 
  Sec. 1099.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR HOSPITALIZATION AND TREATMENT 
  Sec. 1099.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR INVESTIGATORY OR OTHER SERVICES 
  Sec. 1099.114.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1099.115.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1099.116-1099.150 reserved for expansion]
  SUBCHAPTER D. CHANGE IN BOUNDARIES
  Sec. 1099.151.  TERRITORY THAT MAY BE ANNEXED 
  Sec. 1099.152.  PETITION TO ANNEX TERRITORY 
  Sec. 1099.153.  ELECTION ORDER 
  Sec. 1099.154.  BALLOT 
  Sec. 1099.155.  NOTICE OF ELECTION 
  Sec. 1099.156.  ELECTION RESULTS 
  Sec. 1099.157.  EFFECT OF ANNEXATION 
  [Sections 1099.158-1099.200 reserved for expansion]
  SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
  Sec. 1099.201.  BUDGET 
  Sec. 1099.202.  NOTICE; HEARING; APPROVAL OF BUDGET 
  Sec. 1099.203.  AMENDMENTS TO BUDGET 
  Sec. 1099.204.  RESTRICTION ON EXPENDITURES 
  Sec. 1099.205.  FISCAL YEAR 
  Sec. 1099.206.  AUDIT 
  Sec. 1099.207.  INSPECTION OF AUDIT AND DISTRICT
                   RECORDS 
  Sec. 1099.208.  FINANCIAL REPORT 
  Sec. 1099.209.  DEPOSITORY 
  Sec. 1099.210.  SPENDING AND INVESTMENT RESTRICTIONS 
  [Sections 1099.211-1099.250 reserved for expansion]
  SUBCHAPTER F. BONDS
  Sec. 1099.251.  GENERAL OBLIGATION BONDS 
  Sec. 1099.252.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1099.253.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1099.254.  MATURITY OF GENERAL OBLIGATION BONDS 
  Sec. 1099.255.  EXECUTION OF GENERAL OBLIGATION BONDS 
  Sec. 1099.256.  REVENUE BONDS 
  Sec. 1099.257.  REFUNDING BONDS 
  Sec. 1099.258.  BONDS EXEMPT FROM TAXATION 
  [Sections 1099.259-1099.300 reserved for expansion]
  SUBCHAPTER G. TAXES
  Sec. 1099.301.  IMPOSITION OF TAX 
  Sec. 1099.302.  TAX RATE 
  Sec. 1099.303.  ASSESSMENT AND COLLECTION BY COUNTY TAX
                   ASSESSOR-COLLECTOR 
  Sec. 1099.304.  ASSESSMENT AND COLLECTION BY DISTRICT
                   TAX ASSESSOR-COLLECTOR 
  CHAPTER 1099. STRATFORD HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1099.001.  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 Stratford Hospital District.
  (New.)
         Sec. 1099.002.  AUTHORITY FOR OPERATION. The Stratford
  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. 470, Sec. 1
  (part).)
         Sec. 1099.003.  ESSENTIAL PUBLIC FUNCTION. The district
  performs an essential public function in carrying out the purposes
  of this chapter. (Acts 61st Leg., R.S., Ch. 470, Sec. 21 (part).)
         Sec. 1099.004.  DISTRICT TERRITORY. Unless the district's
  boundaries are expanded under Subchapter D, the district is
  composed of the territory in the boundaries of that part of the
  Stratford Independent School District located in Sherman County, as
  those school district boundaries existed on January 1, 1969. (Acts
  61st Leg., R.S., Ch. 470, Secs. 1 (part), 1(a) (part).)
         Sec. 1099.005.  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
  that constitution. (Acts 61st Leg., R.S., Ch. 470, Sec. 22 (part).)
         Sec. 1099.006.  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. 470, Sec. 20 (part).)
         Sec. 1099.007.  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. 470, Sec. 20 (part).)
  [Sections 1099.008-1099.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1099.051.  BOARD ELECTION; TERM.  (a) The board
  consists of five directors elected from the district at large.
         (b)  Unless four-year terms are established under Section
  285.081, Health and Safety Code:
               (1)  directors serve staggered two-year terms with the
  terms of two or three directors expiring each year as appropriate;
  and
               (2)  a directors' election shall be held annually on the
  May uniform election date to elect the appropriate number of