By: Duncan S.B. No. 1147
 
  (Ritter)
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the nonsubstantive revision of certain local laws
  concerning special districts, including conforming amendments.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. NONSUBSTANTIVE REVISION OF LOCAL LAWS
         SECTION 1.01.  Subtitle A, Title 3, Special District Local
  Laws Code, is amended by adding Chapters 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
  directors. (Acts 61st Leg., R.S., Ch. 470, Sec. 4(c) (part).)
         Sec. 1099.052.  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 or newspapers that individually
  or collectively have general circulation in the district. (Acts
  61st Leg., R.S., Ch. 470, Sec. 4(c) (part).)
         Sec. 1099.053.  QUALIFICATIONS FOR OFFICE. (a)  A person may
  not be appointed or elected as a director unless the person is:
               (1)  a resident of the district;
               (2)  a freeholder; and
               (3)  a qualified voter.
         (b)  A person is not eligible to serve as a director if the
  person is:
               (1)  the district manager;
               (2)  a district employee; or
               (3)  a member of the hospital staff. (Acts 61st Leg.,
  R.S., Ch. 470, Sec. 4(d).)
         Sec. 1099.054.  BOND. (a)  Each director shall execute a
  good and sufficient bond for $1,000 that is:
               (1)  payable to the district; and
               (2)  conditioned on the faithful performance of the
  director's duties.
         (b)  The district shall pay for the directors' bonds. (Acts
  61st Leg., R.S., Ch. 470, Sec. 4(c) (part).)
         Sec. 1099.055.  BOARD VACANCY. If a vacancy occurs in the
  office of director, the remaining directors shall fill the vacancy
  for the unexpired term. (Acts 61st Leg., R.S., Ch. 470, Sec. 4(c)
  (part).)
         Sec. 1099.056.  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 61st Leg., R.S., Ch. 470, Sec. 4(e) (part).)
         Sec. 1099.057.  COMPENSATION; EXPENSES. A director or
  officer serves without compensation but may be reimbursed for
  actual expenses incurred in the performance of official duties.
  The expenses must be:
               (1)  reported in the district's records; and
               (2)  approved by the board. (Acts 61st Leg., R.S., Ch.
  470, Sec. 4(e) (part).)
         Sec. 1099.058.  VOTING REQUIREMENT. A concurrence of three
  directors is sufficient in any matter relating to district
  business.  (Acts 61st Leg., R.S., Ch. 470, Sec. 4(e) (part).)
         Sec. 1099.059.  DISTRICT MANAGER; ASSISTANT MANAGER. (a)
  The board shall appoint a qualified person as district manager.
         (b)  The board may appoint one or more assistant managers.
         (c)  The manager and any assistant manager serve at the will
  of the board and receive the compensation determined by the board.
         (d)  On assuming the duties of district manager, the manager
  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 manager performing the
  manager's required duties; and
               (2)  contains any other condition the board requires.
  (Acts 61st Leg., R.S., Ch. 470, Sec. 5 (part).)
         Sec. 1099.060.  GENERAL DUTIES OF DISTRICT MANAGER. Subject
  to the limitations prescribed by the board, the district manager
  shall:
               (1)  supervise the work and activities of the district;
  and
               (2)  direct the affairs of the district. (Acts 61st
  Leg., R.S., Ch. 470, Sec. 5 (part).)
         Sec. 1099.061.  APPOINTMENT AND DISMISSAL OF STAFF AND
  EMPLOYEES. (a) The board may appoint to or dismiss from the staff
  any doctor the board considers necessary for the efficient
  operation of the district and may make temporary appointments to
  the staff if warranted.
         (b)  The district may employ fiscal agents, accountants,
  architects, and attorneys as the board considers proper.
         (c)  The board may delegate to the district manager the
  authority to employ district employees, including technicians and
  nurses. (Acts 61st Leg., R.S., Ch. 470, Secs. 5 (part), 16.)
         Sec. 1099.062.  SENIORITY; RETIREMENT BENEFITS. The board
  may adopt rules relating to the seniority of district employees,
  including rules for a retirement plan based on seniority. (Acts
  61st Leg., R.S., Ch. 470, Sec. 5 (part).)
  [Sections 1099.063-1099.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1099.101.  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 61st Leg., R.S., Ch. 470, Sec. 19 (part).)
         Sec. 1099.102.  RESTRICTION ON POLITICAL SUBDIVISION
  TAXATION AND DEBT. A political subdivision located within the
  district or that has the same boundaries as the district may not
  impose a tax or issue bonds or other obligations for hospital
  purposes or to provide medical care. (Acts 61st Leg., R.S., Ch. 470,
  Sec. 19 (part).)
         Sec. 1099.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.
  The board shall manage, control, and administer the hospital system
  and the district's money and resources. (Acts 61st Leg., R.S., Ch.
  470, Sec. 5 (part).)
         Sec. 1099.104.  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)  facilities for domiciliary care of the sick,
  injured, or geriatric;
               (2)  facilities for outpatient clinics;
               (3)  dispensaries;
               (4)  convalescent home facilities;
               (5)  necessary nurses domiciliaries and training
  centers;
               (6)  blood banks;
               (7)  community mental health centers;
               (8)  research centers or laboratories; and
               (9)  any other facilities the board considers necessary
  for hospital care. (Acts 61st Leg., R.S., Ch. 470, Secs. 2 (part),
  9 (part).)
         Sec. 1099.105.  RULES. The board may adopt rules governing
  the operation of the hospital, the hospital system, and the
  district's staff and employees. (Acts 61st Leg., R.S., Ch. 470,
  Sec. 5 (part).)
         Sec. 1099.106.  PURCHASING AND ACCOUNTING PROCEDURES. The
  board may prescribe:
               (1)  the method and manner of making purchases and
  expenditures by and for the district; and
               (2)  all accounting and control procedures. (Acts 61st
  Leg., R.S., Ch. 470, Sec. 10 (part).)
         Sec. 1099.107.  DISTRICT PROPERTY, FACILITIES, AND
  EQUIPMENT. (a) The board shall determine the type, number, and
  location of buildings required to maintain an adequate hospital
  system.
         (b)  The board may lease all or part of the district's
  buildings and other facilities on terms considered to be in the best
  interest of the district's inhabitants. The term of the lease may
  not exceed 25 years.
         (c)  The district may acquire equipment for use in the
  district's hospital system and mortgage or pledge the property as
  security for the payment of the purchase price. A contract entered
  into under this subsection must provide that the entire obligation
  be retired not later than the fifth anniversary of the date of the
  contract.
         (d)  The district may sell or otherwise dispose of any
  property, including equipment, on terms the board finds are in the
  best interest of the district's inhabitants. (Acts 61st Leg.,
  R.S., Ch. 470, Secs. 9 (part), 10 (part).)
         Sec. 1099.108.  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 a power, right, or
  privilege conferred by this chapter.
         (b)  The district must exercise the power of eminent domain
  in the manner provided by Chapter 21, Property Code, except the
  district is not required to deposit in the trial court money or a
  bond as provided by Section 21.021(a), Property Code.
         (c)  In a condemnation proceeding brought by the district,
  the district is not required to:
               (1)  pay in advance or provide a bond or other security
  for costs in the trial court;
               (2)  provide a bond for the issuance of a temporary
  restraining order or a temporary injunction; or
               (3)  provide a bond for costs or a supersedeas bond on
  an appeal or petition for review. (Acts 61st Leg., R.S., Ch. 470,
  Sec. 14.)
         Sec. 1099.109.  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
  directions, limitations, or other provisions prescribed in writing
  by the donor that are not inconsistent with the proper management
  and objectives of the district. (Acts 61st Leg., R.S., Ch. 470,
  Sec. 18.)
         Sec. 1099.110.  CONSTRUCTION AND PURCHASE CONTRACTS. A
  construction or purchase contract that involves the expenditure of
  more than $15,000 may be made only after advertising in the manner
  provided by Chapter 252, Local Government Code. (Acts 61st Leg.,
  R.S., Ch. 470, Sec. 10 (part).)
         Sec. 1099.111.  OPERATING AND MANAGEMENT CONTRACTS. The
  board may enter into an operating or management contract relating
  to a district facility. (Acts 61st Leg., R.S., Ch. 470, Sec. 9
  (part).)
         Sec. 1099.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  HOSPITALIZATION AND TREATMENT. (a) The board may contract with a
  county or municipality located outside the district's boundaries
  for the hospitalization of a sick or injured person of that county
  or municipality.
         (b)  The board may contract with this state or a federal
  agency for the hospital treatment of a sick or injured person.
  (Acts 61st Leg., R.S., Ch. 470, Sec. 5 (part).)
         Sec. 1099.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  INVESTIGATORY OR OTHER SERVICES. The board may contract with
  another political subdivision or a governmental agency for the
  district to provide investigatory or other services for the
  hospital or welfare needs of district inhabitants. (Acts 61st
  Leg., R.S., Ch. 470, Sec. 5 (part).)
         Sec. 1099.114.  PAYMENT FOR TREATMENT; PROCEDURES. (a)
  When a patient who resides in the district is admitted to a district
  facility, the district manager may 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 manager 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 manager determines that the patient or
  those relatives can pay for all or part of the patient's care and
  treatment, the patient or those relatives shall be ordered to pay
  the district a specified amount each week for the patient's care and
  support. The amount ordered must be proportionate to their
  financial ability.
         (d)  The district manager 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 manager, the board shall hold a hearing
  and, after calling witnesses, shall:
               (1)  resolve the dispute or doubt; and
               (2)  issue any appropriate orders.
         (f)  The final order of the board may be appealed to the
  district court. The substantial evidence rule applies to the
  appeal. (Acts 61st Leg., R.S., Ch. 470, Sec. 17.)
         Sec. 1099.115.  AUTHORITY TO SUE AND BE SUED. (a) The
  district, through the board, may sue and be sued.
         (b)  The district is entitled to all causes of action and
  defenses to which similar authorities are entitled. (Acts 61st
  Leg., R.S., Ch. 470, Sec. 5 (part).)
  [Sections 1099.116-1099.150 reserved for expansion]
  SUBCHAPTER D. CHANGE IN BOUNDARIES
         Sec. 1099.151.  TERRITORY THAT MAY BE ANNEXED. (a) The
  district may annex territory that is not located in:
               (1)  Sherman County;
               (2)  the boundaries of another hospital district; or
               (3)  the proposed boundaries of another hospital
  district authorized by the legislature under Section 9, Article IX,
  Texas Constitution.
         (b)  Territory may be annexed in one or more tracts. Each
  tract must be contiguous to:
               (1)  the district; or
               (2)  territory proposed to be annexed to the district.
  (Acts 61st Leg., R.S., Ch. 470, Sec. 1(a) (part).)
         Sec. 1099.152.  PETITION TO ANNEX TERRITORY. (a) A petition
  requesting that territory be annexed to the district may be
  presented to the board. The petition must:
               (1)  describe the tract or tracts of land to be annexed;
  and
               (2)  be signed by 50 or a majority of the registered
  voters who:
                     (A)  reside in the territory to be annexed; and
                     (B)  own property duly rendered for taxation on
  the applicable county tax rolls that will be subject to district
  taxation.
         (b)  This subchapter does not prohibit simultaneous action
  on several petitions for annexation. A ballot proposition must be
  submitted for each different territory proposed to be annexed, and
  an election held in each territory represented by an approved
  petition.
         (c)  If the board receives two or more petitions for
  annexation that include all or part of the same territory to be
  annexed to the district, the petition filed first with the board
  shall be considered and another petition that includes any of the
  same territory has no effect.
         (d)  The board may consider all petitions for annexation
  presented to it and may approve or reject each petition. The board
  may not partly approve or partly reject any petition. (Acts 61st
  Leg., R.S., Ch. 470, Sec. 1(a) (part).)
         Sec. 1099.153.  ELECTION ORDER. (a) If, on receipt of a
  petition under Section 1099.152, the board finds that annexing the
  territory is in the district's best interest, the board shall
  within 90 days of the board's finding:
               (1)  approve the petition; and
               (2)  order an election on the question of annexing the
  territory to the district.
         (b)  The election order shall provide for a separate election
  in:
               (1)  the territory proposed to be annexed; and
               (2)  the district.
         (c)  The election order shall provide for clerks as in county
  elections and must specify:
               (1)  the date of the election;
               (2)  the location of the polling places;
               (3)  the form of ballot; and
               (4)  the presiding judge and alternate judge for each
  polling place.
         (d)  The election order may provide that:
               (1)  the entire district is one election precinct; or
               (2)  the county election precincts be combined for the
  election. (Acts 61st Leg., R.S., Ch. 470, Secs. 1(a) (part), 3(a)
  (part).)
         Sec. 1099.154.  BALLOT. The ballot for the election shall be
  printed to permit voting for or against the proposition: "The
  establishment of the Hospital District with extended boundaries and
  establishment of a hospital district tax at a rate not to exceed 40
  cents on the $100 valuation." (Acts 61st Leg., R.S., Ch. 470, Sec.
  1(a) (part).)
         Sec. 1099.155.  NOTICE OF ELECTION. (a) Notice of the
  election shall be given by publishing once a week for two
  consecutive weeks a substantial copy of the election order in a
  newspaper or newspapers that individually or collectively have
  general circulation in the county or district.
         (b)  The first publication must appear at least 30 days
  before the date of the election. (Acts 61st Leg., R.S., Ch. 470,
  Secs. 1(a) (part), 3(a) (part).)
         Sec. 1099.156.  ELECTION RESULTS. (a) Territory may not be
  annexed to the district unless:
               (1)  an election is held in accordance with this
  subchapter; and
               (2)  the annexation is approved by a majority of the
  voters voting in the election in:
                     (A)  the district; and
                     (B)  the territory proposed to be annexed.
         (b)  If the territory is annexed to the district, a certified
  copy of the order canvassing the returns of the election shall be
  filed and recorded in the deed records.
         (c)  The failure of an election under this subchapter does
  not prohibit subsequent elections for the same purpose.  A
  confirmation election may not be held under this subchapter before
  the first anniversary of the date of an election previously held
  under this subchapter. (Acts 61st Leg., R.S., Ch. 470, Secs. 1(a)
  (part), 3(a) (part).)
         Sec. 1099.157.  EFFECT OF ANNEXATION. (a) Territory
  annexed to the district is part of the board for all purposes.
         (b)  The annexation of territory to the district does not
  change the manner in which the board or board officers are selected.
  (Acts 61st Leg., R.S., Ch. 470, Sec. 1(a) (part).)
  [Sections 1099.158-1099.200 reserved for expansion]
  SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
         Sec. 1099.201.  BUDGET. (a) The district manager 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 revenue and balances available to
  cover the proposed budget;
               (7)  the estimated tax rate required; and
               (8)  the proposed expenditures and disbursements and
  the estimated receipts and collections for the following fiscal
  year. (Acts 61st Leg., R.S., Ch. 470, Sec. 6 (part).)
         Sec. 1099.202.  NOTICE; HEARING; APPROVAL OF BUDGET.
  (a)  The board shall hold a public hearing on the annual budget.
         (b)  At least 10 days before the date of the hearing, notice
  of the hearing shall be published one time in a newspaper or
  newspapers that individually or collectively have general
  circulation in the district.
         (c)  Any property taxpayer of the district is entitled to be
  present and participate at the hearing.
         (d)  At the conclusion of the hearing, the board shall act on
  the budget proposed by the district manager. The board may make any
  changes in the proposed budget that the board judges to be in the
  interests of the taxpayers and the law warrants. The board must
  approve the annual budget.  (Acts 61st Leg., R.S., Ch. 470, Sec. 6
  (part).)
         Sec. 1099.203.  AMENDMENTS TO BUDGET. The budget may be
  amended as required by circumstances. The board must approve all
  amendments. (Acts 61st Leg., R.S., Ch. 470, Sec. 6 (part).)
         Sec. 1099.204.  RESTRICTION ON EXPENDITURES. Money may be
  spent only for an expense included in the budget or an amendment to
  the budget. (Acts 61st Leg., R.S., Ch. 470, Sec. 6 (part).)
         Sec. 1099.205.  FISCAL YEAR. The district shall operate on a
  fiscal year that begins on September 1 and ends on August 31. (Acts
  61st Leg., R.S., Ch. 470, Sec. 6 (part).)
         Sec. 1099.206.  AUDIT. (a)  The district shall have an
  independent audit made of the district's financial condition for
  each fiscal year.
         (b)  As soon as the audit is completed, the audit shall be
  filed at the district's office. (Acts 61st Leg., R.S., Ch. 470,
  Sec. 6 (part).)
         Sec. 1099.207.  INSPECTION OF AUDIT AND DISTRICT RECORDS.
  The audit and other district records shall be open to inspection at
  the district's principal office. (Acts 61st Leg., R.S., Ch. 470,
  Sec. 6 (part).)
         Sec. 1099.208.  FINANCIAL REPORT. As soon as practicable
  after the close of each fiscal year, the district manager shall
  prepare for the board:
               (1)  a complete sworn statement of all district money;
  and
               (2)  a complete account of the disbursements of that
  money. (Acts 61st Leg., R.S., Ch. 470, Sec. 6 (part).)
         Sec. 1099.209.  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, other than money invested as
  provided by Section 1099.210(b), and money transmitted to a bank
  for payment of bonds or obligations issued by the district, shall be
  deposited as received with the depository bank and shall remain on
  deposit.
         (c)  This chapter, including Subsection (b), does not limit
  the power of the board to:
               (1)  place a part of district money on time deposit; or
               (2)  purchase certificates of deposit. (Acts 61st
  Leg., R.S., Ch. 470, Sec. 11.)
         Sec. 1099.210.  SPENDING AND INVESTMENT RESTRICTIONS. (a)
  Except as otherwise provided by Section 1099.107(c) and by
  Subchapter F, the district may not incur an obligation payable from
  district revenue other than the revenue on hand or to be on hand in
  the current and following district fiscal years.
         (b)  The board may invest operating, depreciation, or
  building reserves only in funds or securities specified by Chapter
  2256, Government Code. (Acts 61st Leg., R.S., Ch. 470, Secs. 5
  (part), 10 (part).)
  [Sections 1099.211-1099.250 reserved for expansion]
  SUBCHAPTER F. BONDS
         Sec. 1099.251.  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 the buildings or improvements for
  hospital purposes. (Acts 61st Leg., R.S., Ch. 470, Sec. 7(a)
  (part).)
         Sec. 1099.252.  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 exceed the tax rate
  approved by the voters at the election authorizing the imposition
  of the tax. (Acts 61st Leg., R.S., Ch. 470, Sec. 7(a) (part).)
         Sec. 1099.253.  GENERAL OBLIGATION BOND ELECTION. (a) The
  district may issue general obligation bonds only if the bonds are
  authorized by a majority of the district voters voting at an
  election held for that purpose.
         (b)  The order calling the 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; and
               (5)  the maximum interest rate of the bonds.
         (c)  Notice of a bond election shall be given as provided by
  Section 1251.003, Government Code. (Acts 61st Leg., R.S., Ch. 470,
  Sec. 7(a) (part).)
         Sec. 1099.254.  MATURITY OF GENERAL OBLIGATION BONDS.
  District general obligation bonds must mature not later than 40
  years after the date of issuance. (Acts 61st Leg., R.S., Ch. 470,
  Sec. 7(d) (part).)
         Sec. 1099.255.  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 61st
  Leg., R.S., Ch. 470, Sec. 7(d) (part).)
         Sec. 1099.256.  REVENUE BONDS. (a) The board may issue
  revenue bonds to:
               (1)  purchase, construct, acquire, repair, renovate,
  or equip buildings or improvements for hospital purposes; or
               (2)  acquire sites to be used for hospital purposes.
         (b)  The bonds must be payable from and secured by a pledge of
  all or part of district revenue derived from the operation of the
  district's hospitals.
         (c)  The bonds may be additionally secured by a mortgage or
  deed of trust lien on all or part of district property.
         (d)  The bonds must be issued in the manner and in accordance
  with the procedures and requirements prescribed by Sections
  264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health
  and Safety Code, for issuance of revenue bonds by a county hospital
  authority. (Acts 61st Leg., R.S., Ch. 470, Sec. 8 (part).)
         Sec. 1099.257.  REFUNDING BONDS. (a) The board may, without
  an election, issue refunding bonds to refund outstanding
  indebtedness issued by the district.
         (b)  A refunding bond may be:
               (1)  sold, with the proceeds of the refunding bond
  applied to the payment of outstanding indebtedness; or
               (2)  exchanged wholly or partly for not less than a
  similar principal amount of the outstanding indebtedness. (Acts
  61st Leg., R.S., Ch. 470, Secs. 7(a) (part), (c) (part), 8 (part).)
         Sec. 1099.258.  BONDS EXEMPT FROM TAXATION. The following
  are exempt from taxation by this state or a political subdivision of
  this state:
               (1)  any bonds issued by the district;
               (2)  the transfer and issuance of the bonds; and
               (3)  any profits made in the sale of the bonds. (Acts
  61st Leg., R.S., Ch. 470, Sec. 21 (part).)
  [Sections 1099.259-1099.300 reserved for expansion]
  SUBCHAPTER G. TAXES
         Sec. 1099.301.  IMPOSITION OF 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:
               (1)  pay the interest on and create a sinking fund for
  bonds or other obligations issued by the district for hospital
  purposes as provided by this chapter;
               (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. (Acts 61st Leg., R.S., Ch. 470,
  Secs. 3(b) (part), 12 (part).)
         Sec. 1099.302.  TAX RATE. (a) The board may impose the tax
  at a rate not to exceed 40 cents on each $100 valuation of taxable
  property in the district.
         (b)  In setting the tax rate, the board shall consider the
  income of the district from sources other than taxation. (Acts 61st
  Leg., R.S., Ch. 470, Secs. 3(b) (part), 12 (part).)
         Sec. 1099.303.  ASSESSMENT AND COLLECTION BY COUNTY TAX
  ASSESSOR-COLLECTOR. Unless the board by majority vote elects to
  have taxes assessed and collected under Section 1099.304, the tax
  assessor-collector of the county in which the district is located
  shall assess and collect taxes imposed by and for the district.
  (Acts 61st Leg., R.S., Ch. 470, Sec. 15 (part).)
         Sec. 1099.304.  ASSESSMENT AND COLLECTION BY DISTRICT TAX
  ASSESSOR-COLLECTOR. (a) The board, by majority vote, may elect to
  have district taxes assessed and collected by a tax
  assessor-collector appointed by the board. An election under this
  subsection must be made before December 1 and governs the manner in
  which taxes are assessed and collected, until changed by a similar
  resolution.
         (b)  The district tax assessor-collector must:
               (1)  reside in the district; and
               (2)  own real property subject to district taxation.
         (c)  The board shall prescribe the district tax
  assessor-collector's term of employment and compensation.  (Acts 61st Leg., R.S., Ch. 470, Sec. 15 (part).)
 
  CHAPTER 1100. SOUTH RANDALL COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1100.001.  DEFINITIONS 
  Sec. 1100.002.  AUTHORITY FOR OPERATION 
  Sec. 1100.003.  ESSENTIAL PUBLIC FUNCTION 
  Sec. 1100.004.  DISTRICT TERRITORY 
  Sec. 1100.005.  CORRECTION OF INVALID PROCEDURES 
  Sec. 1100.006.  DISTRICT SUPPORT AND MAINTENANCE NOT
                   STATE OBLIGATION 
  Sec. 1100.007.  RESTRICTION ON STATE FINANCIAL
                   ASSISTANCE 
  [Sections 1100.008-1100.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1100.051.  BOARD ELECTION; TERM 
  Sec. 1100.052.  NOTICE OF ELECTION 
  Sec. 1100.053.  BALLOT PETITION 
  Sec. 1100.054.  QUALIFICATIONS FOR OFFICE 
  Sec. 1100.055.  BOARD VACANCY 
  Sec. 1100.056.  OFFICERS 
  Sec. 1100.057.  QUORUM; VOTING REQUIREMENT 
  Sec. 1100.058.  EXPENSES 
  Sec. 1100.059.  PAYMENT FOR ATTENDANCE AT MEETINGS 
  Sec. 1100.060.  PETITION TO CHANGE NUMBER OF DIRECTORS 
  Sec. 1100.061.  DISTRICT ADMINISTRATOR; ASSISTANT
                   ADMINISTRATOR 
  Sec. 1100.062.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1100.063.  APPOINTMENT OF STAFF AND EMPLOYEES 
  Sec. 1100.064.  RECRUITMENT OF MEDICAL STAFF 
  Sec. 1100.065.  CONTINUING EDUCATION; RETRAINING 
  [Sections 1100.066-1100.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1100.101.  DISTRICT RESPONSIBILITY 
  Sec. 1100.102.  RESTRICTION ON POLITICAL SUBDIVISION
                   TAXATION AND DEBT 
  Sec. 1100.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
  Sec. 1100.104.  HOSPITAL SYSTEM 
  Sec. 1100.105.  RULES 
  Sec. 1100.106.  PURCHASING AND ACCOUNTING PROCEDURES 
  Sec. 1100.107.  DISTRICT PROPERTY, FACILITIES, AND
                   EQUIPMENT 
  Sec. 1100.108.  EMINENT DOMAIN 
  Sec. 1100.109.  GIFTS AND ENDOWMENTS 
  Sec. 1100.110.  CONSTRUCTION CONTRACTS 
  Sec. 1100.111.  OPERATING AND MANAGEMENT CONTRACTS 
  Sec. 1100.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR CARE AND TREATMENT 
  Sec. 1100.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR INVESTIGATORY OR OTHER SERVICES 
  Sec. 1100.114.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1100.115.  REIMBURSEMENT FOR SERVICES 
  Sec. 1100.116.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1100.117-1100.150 reserved for expansion]
  SUBCHAPTER D. CHANGE IN BOUNDARIES
  Sec. 1100.151.  EXPANSION OF TERRITORY; ELECTION 
  Sec. 1100.152.  BALLOT 
  [Sections 1100.153-1100.200 reserved for expansion]
  SUBCHAPTER E.  GENERAL FINANCIAL PROVISIONS
  Sec. 1100.201.  BUDGET 
  Sec. 1100.202.  NOTICE; HEARING; APPROVAL OF BUDGET 
  Sec. 1100.203.  AMENDMENTS TO BUDGET 
  Sec. 1100.204.  RESTRICTION ON EXPENDITURES 
  Sec. 1100.205.  FISCAL YEAR 
  Sec. 1100.206.  AUDIT 
  Sec. 1100.207.  INSPECTION OF AUDIT AND DISTRICT
                   RECORDS 
  Sec. 1100.208.  FINANCIAL REPORT 
  Sec. 1100.209.  DEPOSITORY 
  Sec. 1100.210.  SPENDING AND INVESTMENT RESTRICTIONS 
  Sec. 1100.211.  AUTHORITY TO BORROW MONEY; SECURITY 
  [Sections 1100.212-1100.250 reserved for expansion]
  SUBCHAPTER F. BONDS
  Sec. 1100.251.  GENERAL OBLIGATION BONDS 
  Sec. 1100.252.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1100.253.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1100.254.  MATURITY OF GENERAL OBLIGATION BONDS 
  Sec. 1100.255.  EXECUTION OF GENERAL OBLIGATION BONDS 
  Sec. 1100.256.  REVENUE BONDS 
  Sec. 1100.257.  REFUNDING BONDS 
  Sec. 1100.258.  BONDS EXEMPT FROM TAXATION 
  [Sections 1100.259-1100.300 reserved for expansion]
  SUBCHAPTER G. TAXES
  Sec. 1100.301.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1100.302.  TAX RATE 
  Sec. 1100.303.  TAX ASSESSOR-COLLECTOR 
  [Sections 1100.304-1100.350 reserved for expansion]
  SUBCHAPTER H. DISSOLUTION
  Sec. 1100.351.  DISSOLUTION; ELECTION 
  Sec. 1100.352.  BALLOT 
  Sec. 1100.353.  ELECTION RESULTS 
  Sec. 1100.354.  TRANSFER OR ADMINISTRATION OF ASSETS 
  Sec. 1100.355.  IMPOSITION OF TAX 
  Sec. 1100.356.  RETURN OF SURPLUS TAXES 
  Sec. 1100.357.  REPORT; DISSOLUTION ORDER 
  CHAPTER 1100. SOUTH RANDALL COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1100.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the board of directors of the
  district.
               (2)  "Director" means a member of the board.
               (3)  "District" means the South Randall County Hospital
  District. (New.)
         Sec. 1100.002.  AUTHORITY FOR OPERATION. The South Randall
  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 62nd Leg., R.S., Ch. 200,
  Sec. 1 (part).)
         Sec. 1100.003.  ESSENTIAL PUBLIC FUNCTION. The district
  performs an essential public function in carrying out the purposes
  of this chapter. (Acts 62nd Leg., R.S., Ch. 200, Sec. 21 (part).)
         Sec. 1100.004.  DISTRICT TERRITORY. Unless the district's
  boundaries are expanded under Subchapter D, the boundaries of the
  district are coextensive with the boundaries of County
  Commissioners Precinct Number 3 of Randall County, Texas, as the
  boundaries of that precinct existed on January 1, 1971. (Acts 62nd
  Leg., R.S., Ch. 200, Sec. 1 (part).)
         Sec. 1100.005.  CORRECTION OF INVALID PROCEDURES.  If a
  court holds that any procedure under this chapter violates the
  constitution of this state or of the United States, the district by
  resolution may provide an alternative procedure that conforms with
  the constitution. (Acts 62nd Leg., R.S., Ch. 200, Sec. 23 (part).)
         Sec. 1100.006.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE
  OBLIGATION. The support and maintenance of the district may not
  become a charge against or obligation of this state. (Acts 62nd
  Leg., R.S., Ch. 200, Sec. 20 (part).)
         Sec. 1100.007.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.
  The legislature may not make a direct appropriation for the
  construction, maintenance, or improvement of a district facility.
  (Acts 62nd Leg., R.S., Ch. 200, Sec. 20 (part).)
  [Sections 1100.008-1100.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1100.051.  BOARD ELECTION; TERM. (a) Unless the number
  of directors is increased or decreased in accordance with Section
  1100.060, 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)  an election shall be held annually on the May
  uniform election date to elect the appropriate number of directors.  
  (Acts 62nd Leg., R.S., Ch. 200, Sec. 4(c) (part).)
         Sec. 1100.052.  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 or newspapers that individually
  or collectively have general circulation in the district. (Acts
  62nd Leg., R.S., Ch. 200, Sec. 4(c) (part).)
         Sec. 1100.053.  BALLOT PETITION. A person who wants to have
  the person's name printed on the ballot as a candidate for director
  must file with the board secretary a petition requesting that
  action. The petition must be:
               (1)  signed by at least 10 registered taxpaying voters;
  and
               (2)  filed by the deadline imposed by Section 144.005,
  Election Code. (Acts 62nd Leg., R.S., Ch. 200, Sec. 4(c) (part).)
         Sec. 1100.054.  QUALIFICATIONS FOR OFFICE. (a) A person may
  not be elected or appointed as a director unless the person is:
               (1)  a resident of the district; and
               (2)  a qualified voter.
         (b)  A person is not eligible to serve as a director if the
  person is:
               (1)  the district administrator;
               (2)  a district employee; or
               (3)  a member of the hospital staff. (Acts 62nd Leg.,
  R.S., Ch. 200, Sec. 4(d).)
         Sec. 1100.055.  BOARD VACANCY. If a vacancy occurs in the
  office of director, the remaining directors shall fill the vacancy
  for the unexpired term. (Acts 62nd Leg., R.S., Ch. 200, Sec. 4(c)
  (part).)
         Sec. 1100.056.  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 62nd Leg., R.S., Ch. 200, Sec. 4(e) (part).)
         Sec. 1100.057.  QUORUM; VOTING REQUIREMENT. (a)  Any four
  directors constitute a quorum.
         (b)  A concurrence of four directors is sufficient in any
  matter relating to district business. (Acts 62nd Leg., R.S., Ch.
  200, Sec. 4(e) (part).)
         Sec. 1100.058.  EXPENSES. A director or officer may be
  reimbursed for actual expenses incurred in the performance of
  official duties. The expenses must be:
               (1)  reported in the district's records; and
               (2)  approved by the board. (Acts 62nd Leg., R.S., Ch.
  200, Sec. 4(e) (part).)
         Sec. 1100.059.  PAYMENT FOR ATTENDANCE AT MEETINGS. The
  board may establish a system of payments set at a reasonable amount
  determined by the board for attending board or committee meetings
  related to the performance of official duties. (Acts 62nd Leg.,
  R.S., Ch. 200, Sec. 4(e) (part).)
         Sec. 1100.060.  PETITION TO CHANGE NUMBER OF DIRECTORS. (a)
  A petition to increase or decrease the number of directors by one or
  two directors may be presented to the board at any time.
         (b)  A petition to increase or decrease the number of
  directors must:
               (1)  be executed by at least 100 registered voters of
  the district; and
               (2)  suggest the number of directors the petitioners
  believe are required for the orderly administration of district
  affairs.
         (c)  Not later than the 90th day after the date a proper
  petition is presented to the board, the board shall order an
  election on the question of changing the number of directors to a
  number not to exceed the number suggested by the petition.
         (d)  The order calling the election shall provide for
  election officials as in county elections and must specify:
               (1)  the date of the election; and
               (2)  the location of the polling places.
         (e)  Notice of the election shall be published as provided by
  Section 1251.003, Government Code.
         (f)  The ballot for the election shall be printed to permit
  voting for or against the proposition: "Providing for an increase
  (decrease) in the number of directors of the South Randall County
  Hospital District."
         (g)  If a proposition to increase the number of directors is
  approved by a majority of the voters participating in the election:
               (1)  each director in office shall continue to serve
  for the term for which the director was elected or appointed; and
               (2)  the board shall appoint any additional directors
  to serve until the next regular election of directors, at which time
  a successor shall be elected.
         (h)  If a proposition to decrease the number of directors is
  approved by a majority of the voters participating in the election:
               (1)  the reduction takes effect at the next regular
  election or election of directors; and
               (2)  not more than one position may be deleted at each
  election.
         (i)  Notwithstanding Subsection (c), another election for
  the same purpose may not be held before the third anniversary of the
  date of an election under this section. (Acts 62nd Leg., R.S., Ch.
  200, Sec. 4(f) (part).)
         Sec. 1100.061.  DISTRICT ADMINISTRATOR; ASSISTANT
  ADMINISTRATOR. (a) The board shall appoint a qualified person as
  district administrator.
         (b)  The district administrator may appoint an assistant
  administrator.
         (c)  The district administrator shall serve at the will of
  the board and shall 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 62nd Leg., R.S., Ch. 200, Sec. 5 (part).)
         Sec. 1100.062.  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 62nd
  Leg., R.S., Ch. 200, Sec. 5 (part).)
         Sec. 1100.063.  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 if warranted.
         (b)  The district may employ fiscal agents, accountants,
  architects, and attorneys as the board considers proper.
         (c)  The board may delegate to the district administrator the
  authority to employ district employees, including technicians and
  nurses.  (Acts 62nd Leg., R.S., Ch. 200, Secs. 5 (part), 16.)
         Sec. 1100.064.  RECRUITMENT OF MEDICAL STAFF. (a) The
  district may spend district money to recruit physicans, nurses, or
  other trained medical personnel.
         (b)  The district may pay the tuition or other costs or
  expenses of a full-time medical or nursing student who:
               (1)  is enrolled in and is in good standing at an
  accredited school, college, or university; and
               (2)  contractually agrees to become a district employee
  in return for that assistance. (Acts 62nd Leg., R.S., Ch. 200, Secs.
  5A(a), (b).)
         Sec. 1100.065.  CONTINUING EDUCATION; RETRAINING.  The board
  may spend district money for continuing education and retraining of
  employees. (Acts 62nd Leg., R.S., Ch. 200, Sec. 5A(c).)
  [Sections 1100.066-1100.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1100.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for operating all hospital facilities for
  providing hospital care for the district's needy inhabitants.
  (Acts 62nd Leg., R.S., Ch. 200, Sec. 19 (part).)
         Sec. 1100.102.  RESTRICTION ON POLITICAL SUBDIVISION
  TAXATION AND DEBT. A political subdivision located within the
  district may not impose a tax or issue bonds or other obligations
  for hospital purposes or to provide medical care for district
  inhabitants. (Acts 62nd Leg., R.S., Ch. 200, Sec. 19 (part).)
         Sec. 1100.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.
  The board shall manage, control, and administer the hospital system
  and the district's money and resources. (Acts 62nd Leg., R.S., Ch.
  200, Sec. 5 (part).)
         Sec. 1100.104.  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 62nd Leg., R.S., Ch. 200, Secs.
  2 (part), 10(a) (part).)
         Sec. 1100.105.  RULES. The board may adopt rules governing
  the operation of the hospital, the hospital system, and the
  district's staff and employees. (Acts 62nd Leg., R.S., Ch. 200,
  Sec. 5 (part).)
         Sec. 1100.106.  PURCHASING AND ACCOUNTING PROCEDURES. The
  board may prescribe:
               (1)  the method and manner of making purchases and
  expenditures by and for the district; and
               (2)  all accounting and control procedures. (Acts 62nd
  Leg., R.S., Ch. 200, Sec. 10(b) (part).)
         Sec. 1100.107.  DISTRICT PROPERTY, FACILITIES, AND
  EQUIPMENT. (a) The board shall determine the type, number, and
  location of buildings required to maintain an adequate hospital
  system.
         (b)  The board may lease all or part of the district's
  buildings and other facilities on terms considered to be in the best
  interest of the district's inhabitants. The term of the lease may
  not exceed 25 years.
         (c)  The district may acquire or lease equipment for use in
  the district's hospital system and mortgage or pledge the property
  as security for the payment of the purchase price. A contract
  entered into under this subsection must provide that the entire
  obligation be retired not later than the fifth anniversary of the
  date of the contract.
         (d)  The district may borrow money to purchase equipment or
  for other purposes authorized by the board.  The board may pledge
  all or part of the district's tax revenue to the payment of the
  amounts borrowed. Section 1100.211(c) does not apply to amounts
  borrowed under this subsection.
         (e)  The district may sell or otherwise dispose of any
  property, including equipment, on terms the board finds are in the
  best interest of the district's inhabitants. (Acts 62nd Leg.,
  R.S., Ch. 200, Secs. 10(a) (part), (b) (part).)
         Sec. 1100.108.  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 the
  district is not required to deposit in the trial court money or a
  bond as provided by Section 21.021(a), Property Code.
         (c)  In a condemnation proceeding brought by the district,
  the district is not required to:
               (1)  pay in advance or provide a bond or other security
  for costs in the trial court;
               (2)  provide a bond for the issuance of a temporary
  restraining order or a temporary injunction; or
               (3)  provide a bond for costs or a supersedeas bond on
  an appeal or petition for review. (Acts 62nd Leg., R.S., Ch. 200,
  Sec. 14.)
         Sec. 1100.109.  GIFTS AND ENDOWMENTS. The board may accept
  for the district a gift or endowment to be held in trust and
  administered by the board for the purposes and under the
  directions, limitations, or other provisions prescribed in writing
  by the donor that are not inconsistent with the proper management
  and objectives of the district. (Acts 62nd Leg., R.S., Ch. 200,
  Sec. 18.)
         Sec. 1100.110.  CONSTRUCTION CONTRACTS. A construction
  contract that involves the expenditure of more than $15,000 may be
  made only after advertising in the manner provided by Subchapter B,
  Chapter 271, Local Government Code. (Acts 62nd Leg., R.S., Ch. 200,
  Sec. 10(b) (part).)
         Sec. 1100.111.  OPERATING AND MANAGEMENT CONTRACTS. The
  board may enter into an operating or management contract relating
  to a district facility. (Acts 62nd Leg., R.S., Ch. 200, Sec. 10(a)
  (part).)
         Sec. 1100.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  CARE AND TREATMENT. (a) The board may contract with a county or
  municipality located outside the district's boundaries for the 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 state or federal government to reimburse the
  district for treatment of a sick or injured person. (Acts 62nd
  Leg., R.S., Ch. 200, Sec. 5 (part).)
         Sec. 1100.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  INVESTIGATORY OR OTHER SERVICES. The board may contract with
  another political subdivision or governmental agency for the
  district to provide investigatory or other services for the
  medical, hospital, or welfare needs of district inhabitants. (Acts
  62nd Leg., R.S., Ch. 200, Sec. 5 (part).)
         Sec. 1100.114.  PAYMENT FOR TREATMENT; PROCEDURES. (a)
  When a patient who resides in the district is admitted to a district
  facility, the district administrator may have an inquiry made into
  the circumstances of:
               (1)  the patient; and
               (2)  the patient's relatives 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 patient or those relatives shall be ordered
  to pay the district a specified amount each week for the patient's
  care and support. The amount ordered must be proportionate to 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 62nd Leg., R.S., Ch. 200, Sec. 17.)
         Sec. 1100.115.  REIMBURSEMENT FOR SERVICES. (a)  The board
  shall require the sheriff of Randall County or the police chief of a
  municipality located in Randall County, as appropriate, to
  reimburse the district for the district's care and treatment of a
  person confined in a jail facility of Randall County or a
  municipality located in Randall County who is not a district
  resident.
         (b)  A person confined in a jail facility of Randall County
  or a municipality located in Randall County, as appropriate, is not
  considered a district resident unless the person meets the
  qualifications for residency notwithstanding the confinement, the
  length of confinement, or the facts surrounding the confinement.  
  (Acts 62nd Leg., R.S., Ch. 200, Sec. 5 (part).)
         Sec. 1100.116.  AUTHORITY TO SUE AND BE SUED. The district,
  through the board, may sue and be sued. (Acts 62nd Leg., R.S., Ch.
  200, Sec. 5 (part).)
  [Sections 1100.117-1100.150 reserved for expansion]
  SUBCHAPTER D. CHANGE IN BOUNDARIES
         Sec. 1100.151.  EXPANSION OF TERRITORY; ELECTION. (a) The
  board may order an election on the question of:
               (1)  expanding the district's boundaries to include all
  of the territory in Randall County that is not included in the City
  of Amarillo Hospital District;
               (2)  the assumption by the additional territory of a
  proportionate share of district debt; and
               (3)  the imposition of taxes in the territory to be
  added to that district.
         (b)  The district may not be expanded unless the expansion,
  assumption of debt, and imposition of taxes are approved by a
  majority of the voters at:
               (1)  an election held in the district; and
               (2)  a separate election held in the territory to be
  added.
         (c)  The election in the district and the election in the
  territory to be added must be held on the same day.
         (d)  Section 41.001(a), Election Code, does not apply to an
  election ordered under this section. (Acts 62nd Leg., R.S., Ch.
  200, Secs. 1A(a), (c), (d), (e) (part).)
         Sec. 1100.152.  BALLOT. The ballot for the election must be
  printed to permit voting for or against the proposition:
  "Expanding the South Randall County Hospital District to include
  all of the territory in Randall County that is not included in the
  City of Amarillo Hospital District, the assumption by the
  additional territory of its proportionate share of the district's
  outstanding debt, and the imposition of a tax not to exceed 75 cents
  on each $100 of valuation on all taxable property in the expanded
  area of the district." (Acts 62nd Leg., R.S., Ch. 200, Sec. 1A(b).)
  [Sections 1100.153-1100.200 reserved for expansion]
  SUBCHAPTER E.  GENERAL FINANCIAL PROVISIONS
         Sec. 1100.201.  BUDGET. (a) The district administrator
  shall prepare an annual budget for approval by the board.
         (b)  The proposed budget must contain a complete financial
  statement of:
               (1)  the outstanding obligations of the district;
               (2)  the cash on hand 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 revenue and balances available to
  cover the proposed budget; and
               (7)  the estimated tax rate required. (Acts 62nd Leg.,
  R.S., Ch. 200, Sec. 6 (part).)
         Sec. 1100.202.  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 shall be published one time.
         (c)  Any district taxpayer is entitled to be present and
  participate at the hearing.
         (d)  At the conclusion of the hearing, 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 judges to be
  in the interest of the taxpayers and the law warrants. (Acts 62nd
  Leg., R.S., Ch. 200, Sec. 6 (part).)
         Sec. 1100.203.  AMENDMENTS TO BUDGET. The annual budget may
  be amended as required by circumstances. The board must approve all
  amendments. (Acts 62nd Leg., R.S., Ch. 200, Sec. 6 (part).)
         Sec. 1100.204.  RESTRICTION ON EXPENDITURES. Money may be
  spent only for an expense included in the annual budget or an
  amendment to the budget. (Acts 62nd Leg., R.S., Ch. 200, Sec. 6
  (part).)
         Sec. 1100.205.  FISCAL YEAR. (a) The district operates
  according to a fiscal year established by the board.
         (b)  The fiscal year may not be changed more than once in a
  24-month period. (Acts 62nd Leg., R.S., Ch. 200, Sec. 6 (part).)
         Sec. 1100.206.  AUDIT. The board shall have an audit made of
  the district's financial condition. (Acts 62nd Leg., R.S., Ch.
  200, Sec. 6 (part).)
         Sec. 1100.207.  INSPECTION OF AUDIT AND DISTRICT RECORDS.
  The audit and other district records shall be open to inspection at
  the district's principal office. (Acts 62nd Leg., R.S., Ch. 200,
  Sec. 6 (part).)
         Sec. 1100.208.  FINANCIAL REPORT. As soon as practicable
  after the close of each fiscal year, the district administrator
  shall prepare for the board:
               (1)  a complete sworn statement of all district money;
  and
               (2)  a complete account of the disbursements of that
  money. (Acts 62nd Leg., R.S., Ch. 200, Sec. 6 (part).)
         Sec. 1100.209.  DEPOSITORY. (a) The board shall select one
  or more banks or other federally insured financial institutions
  inside or outside the district to serve as a depository for district
  money.
         (b)  District money, other than money invested as provided by
  Section 1100.210(b), and money transmitted to a bank for payment of
  bonds or obligations issued or assumed by the district, shall be
  deposited as received with the depository and shall remain on
  deposit.
         (c)  This chapter, including Subsection (b), does not limit
  the power of the board to:
               (1)  place a portion of district money on time deposit;
  or
               (2)  purchase certificates of deposit. (Acts 62nd
  Leg., R.S., Ch. 200, Sec. 11.)
         Sec. 1100.210.  SPENDING AND INVESTMENT RESTRICTIONS. (a)
  Except as otherwise provided by Sections 1100.104(b), 1100.107,
  1100.110, 1100.111, and 1100.211 and Subchapter F, the district may
  not incur an obligation payable from district revenue other than
  the revenue on hand or to be on hand in the current and following
  district fiscal years.
         (b)  The board may invest district money in funds and
  securities as prescribed by Chapter 2256, Government Code. (Acts
  62nd Leg., R.S., Ch. 200, Secs. 5 (part), 10(b) (part).)
         Sec. 1100.211.  AUTHORITY TO BORROW MONEY; SECURITY. (a)
  The board may borrow money at a rate not to exceed the maximum
  annual percentage rate allowed by law for district obligations at
  the time the loan is made if the board declares that:
               (1)  money is not available to meet authorized district
  obligations; and
               (2)  an emergency exists.
         (b)  To secure a loan, the board may pledge:
               (1)  district revenue that is not pledged to pay the
  district's bonded indebtedness;
               (2)  a district tax to be imposed by the district in the
  next 12-month period that is not pledged to pay the principal of or
  interest on district bonds; or
               (3)  district bonds that have been authorized but not
  sold.
         (c)  A loan for which taxes or bonds are pledged must mature
  not later than the first anniversary of the date the loan is made. A
  loan for which district revenue is pledged must mature not later
  than the fifth anniversary of the date the loan is made.
         (d)  The board may not spend money obtained from a loan under
  this section for any purpose other than:
               (1)  the purpose for which the board declared an
  emergency; and
               (2)  if district taxes or bonds are pledged to pay the
  loan, the purposes for which the pledged taxes were imposed or the
  pledged bonds were authorized. (Acts 62nd Leg., R.S., Ch. 200, Sec.
  9A.)
  [Sections 1100.212-1100.250 reserved for expansion]
  SUBCHAPTER F. BONDS
         Sec. 1100.251.  GENERAL OBLIGATION BONDS. The board may
  issue and sell general obligation bonds in the name and on the faith
  and credit of the district for any purpose relating to:
               (1)  the purchase, construction, acquisition, repair,
  or renovation of buildings or improvements; and
               (2)  equipping buildings or improvements for hospital
  purposes. (Acts 62nd Leg., R.S., Ch. 200, Sec. 7 (part).)
         Sec. 1100.252.  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 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 62nd
  Leg., R.S., Ch. 200, Sec. 7 (part).)
         Sec. 1100.253.  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 must provide for
  clerks as in county elections and must specify:
               (1)  the date of the election;
               (2)  the location of the polling places;
               (3)  the presiding and alternate election judges for
  each polling place;
               (4)  the amount of the bonds to be authorized; and
               (5)  the maximum maturity of the bonds.
         (c)  Notice of a bond election shall be published as provided
  by Section 1251.003, Government Code. (Acts 62nd Leg., R.S., Ch.
  200, Sec. 7 (part).)
         Sec. 1100.254.  MATURITY OF GENERAL OBLIGATION BONDS.
  District general obligation bonds must mature not later than 40
  years after the date of issuance. (Acts 62nd Leg., R.S., Ch. 200,
  Sec. 7 (part).)
         Sec. 1100.255.  EXECUTION OF GENERAL OBLIGATION BONDS. The
  board president shall execute the district's general obligation
  bonds in the district's name, and the board secretary shall
  countersign the general obligation bonds in the manner provided by
  Chapter 618, Government Code. (Acts 62nd Leg., R.S., Ch. 200, Sec.
  7 (part).)
         Sec. 1100.256.  REVENUE BONDS. (a) The board may issue
  revenue bonds to:
               (1)  purchase, construct, acquire, repair, renovate,
  or equip buildings or improvements for hospital purposes; or
               (2)  acquire sites to be used for hospital purposes.
         (b)  The bonds must be payable from and secured by a pledge of
  all or part of the revenue derived from the operation of the
  district's hospitals.
         (c)  The bonds may be additionally secured by a mortgage or
  deed of trust lien on all or part of district property.
         (d)  The bonds must be issued in the manner and in accordance
  with the procedures and requirements prescribed by Sections
  264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health
  and Safety Code, for issuance of revenue bonds by a county hospital
  authority. (Acts 62nd Leg., R.S., Ch. 200, Sec. 9 (part).)
         Sec. 1100.257.  REFUNDING BONDS. (a) The board may, without
  an election, issue refunding bonds to refund outstanding
  indebtedness issued or assumed by the district.
         (b)  A refunding bond may be:
               (1)  sold, with the proceeds of the refunding bond
  applied to the payment of outstanding indebtedness; or
               (2)  exchanged wholly or partly for not less than a
  similar principal amount of outstanding indebtedness. (Acts 62nd
  Leg., R.S., Ch. 200, Secs. 7 (part), 9 (part).)
         Sec. 1100.258.  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)  any profits made in the sale of the bonds. (Acts
  62nd Leg., R.S., Ch. 200, Sec. 21 (part).)
  [Sections 1100.259-1100.300 reserved for expansion]
  SUBCHAPTER G. TAXES
         Sec. 1100.301.  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)  the district's indebtedness, including
  obligations created or assumed by the district; and
               (2)  the district's maintenance and operating expenses.  
  (Acts 62nd Leg., R.S., Ch. 200, Secs. 7 (part), 12 (part).)
         Sec. 1100.302.  TAX RATE. (a) The board may impose the tax
  at a rate not to exceed 75 cents on each $100 valuation of all
  taxable property in the district.
         (b)  In setting the tax rate, the board shall consider the
  income of the district from sources other than taxation. (Acts 62nd
  Leg., R.S., Ch. 200, Secs. 7 (part), 12 (part).)
         Sec. 1100.303.  TAX ASSESSOR-COLLECTOR. The board may
  provide for the appointment of a tax assessor-collector for the
  district or may contract for the assessment and collection of taxes
  as provided by the Tax Code. (Acts 62nd Leg., R.S., Ch. 200, Sec.
  15(c).)
  [Sections 1100.304-1100.350 reserved for expansion]
  SUBCHAPTER H. DISSOLUTION
         Sec. 1100.351.  DISSOLUTION; ELECTION. (a) The district
  may be dissolved as provided by this subchapter.
         (b)  The board may order an election on the question of
  dissolving the district and disposing of the district's assets and
  obligations.
         (c)  The board shall order an election if the board receives
  a petition requesting an election that is signed by at least 30
  registered voters in the district.
         (d)  Section 41.001(a), Election Code, does not apply to an
  election ordered under this section. (Acts 62nd Leg., R.S., Ch.
  200, Secs. 21A(a), (b), (c) (part).)
         Sec. 1100.352.  BALLOT. The ballot for the election under
  this subchapter must be printed to permit voting for or against the
  proposition: "The dissolution of the South Randall County Hospital
  District." (Acts 62nd Leg., R.S., Ch. 200, Sec. 21A(d) (part).)
         Sec. 1100.353.  ELECTION RESULTS. (a) If a majority of the
  votes in the election under this subchapter favor dissolution, the
  board shall find that the district is dissolved.
         (b)  If a majority of the votes in the election do not favor
  dissolution, the board shall continue to administer the district
  and another election on the question of dissolution may not be held
  before the first anniversary of the date of the most recent election
  to dissolve the district. (Acts 62nd Leg., R.S., Ch. 200, Sec.
  21A(e).)
         Sec. 1100.354.  TRANSFER OR ADMINISTRATION OF ASSETS. (a)
  If a majority of the votes in the election held under this
  subchapter favor dissolution, the board shall:
               (1)  transfer to Randall County the land, buildings,
  improvements, equipment, and other assets that belong to the
  district; or
               (2)  administer the property, assets, and debts in
  accordance with this subchapter.
         (b)  If the board makes the transfer under Subsection (a)(1),
  the county assumes all debts and obligations of the district at the
  time of the transfer, and the district is dissolved.
         (c)  If the board does not make the transfer under Subsection
  (a)(1), the board shall continue to control and administer the
  property, debts, and assets of the district under Subsection (a)(2)
  until all money has been disposed of and all district debts have
  been paid or settled. (Acts 62nd Leg., R.S., Ch. 200, Secs. 21A(f),
  21B(a).)
         Sec. 1100.355.  IMPOSITION OF TAX. (a) After the board
  finds that the district is dissolved, the board shall:
               (1)  determine the debt owed by the district; and
               (2)  impose on the property included in the district's
  tax rolls a tax that is in proportion of the debt to the property
  value.
         (b)  The board may institute a suit to enforce payment of
  taxes and to foreclose liens to secure the payment of the taxes.
  (Acts 62nd Leg., R.S., Ch. 200, Secs. 21B(b), (c).)
         Sec. 1100.356.  RETURN OF SURPLUS TAXES. (a) 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.
         (b)  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 62nd Leg., R.S., Ch. 200, Sec. 21B(d).)
         Sec. 1100.357.  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 Randall County summarizing the board's actions in dissolving the
  district.
         (b)  Not later than the 10th day after the date the
  Commissioners Court of Randall County receives the report and
  determines that the requirements of this subchapter have been
  fulfilled, the commissioners court shall enter an order dissolving the district. (Acts 62nd Leg., R.S., Ch. 200, Sec. 21B(e).)
 
  CHAPTER 1101.  SUTTON COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A.  GENERAL PROVISIONS
  Sec. 1101.001.  DEFINITIONS 
  Sec. 1101.002.  AUTHORITY FOR OPERATION 
  Sec. 1101.003.  ESSENTIAL PUBLIC FUNCTION 
  Sec. 1101.004.  DISTRICT TERRITORY 
  Sec. 1101.005.  DISTRICT SUPPORT AND MAINTENANCE NOT
                   STATE OBLIGATION 
  Sec. 1101.006.  RESTRICTION ON STATE FINANCIAL
                   ASSISTANCE 
  [Sections 1101.007-1101.050 reserved for expansion]
  SUBCHAPTER B.  DISTRICT ADMINISTRATION
  Sec. 1101.051.  BOARD ELECTION; TERM 
  Sec. 1101.052.  NOTICE OF ELECTION 
  Sec. 1101.053.  QUALIFICATIONS FOR OFFICE 
  Sec. 1101.054.  BOARD VACANCY 
  Sec. 1101.055.  OFFICERS 
  Sec. 1101.056.  COMPENSATION; EXPENSES 
  Sec. 1101.057.  VOTING REQUIREMENT 
  Sec. 1101.058.  DISTRICT ADMINISTRATOR 
  Sec. 1101.059.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1101.060.  ASSISTANT DISTRICT ADMINISTRATOR;
                   ATTORNEY 
  Sec. 1101.061.  APPOINTMENT AND RECRUITMENT OF STAFF
                   AND EMPLOYEES 
  Sec. 1101.062.  NURSING SCHOOL SCHOLARSHIPS 
  Sec. 1101.063.  RETIREMENT BENEFITS 
  [Sections 1101.064-1101.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
  Sec. 1101.101.  DISTRICT RESPONSIBILITY 
  Sec. 1101.102.  RESTRICTION ON COUNTY TAXATION AND DEBT 
  Sec. 1101.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
  Sec. 1101.104.  RULES 
  Sec. 1101.105.  PURCHASING AND ACCOUNTING PROCEDURES 
  Sec. 1101.106.  MOBILE EMERGENCY MEDICAL SERVICE 
  Sec. 1101.107.  DISTRICT PROPERTY, FACILITIES, AND
                   EQUIPMENT 
  Sec. 1101.108.  GIFTS AND ENDOWMENTS 
  Sec. 1101.109.  CONSTRUCTION CONTRACTS 
  Sec. 1101.110.  OPERATING AND MANAGEMENT CONTRACTS 
  Sec. 1101.111.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR SERVICES 
  Sec. 1101.112.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1101.113.  REIMBURSEMENT FOR SERVICES 
  Sec. 1101.114.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1101.115-1101.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
  Sec. 1101.151.  BUDGET 
  Sec. 1101.152.  NOTICE; HEARING; ADOPTION OF BUDGET 
  Sec. 1101.153.  AMENDMENTS TO BUDGET 
  Sec. 1101.154.  RESTRICTION ON EXPENDITURES 
  Sec. 1101.155.  FISCAL YEAR 
  Sec. 1101.156.  ANNUAL AUDIT 
  Sec. 1101.157.  INSPECTION OF ANNUAL AUDIT AND DISTRICT
                   RECORDS 
  Sec. 1101.158.  FINANCIAL REPORT 
  Sec. 1101.159.  DEPOSITORY 
  Sec. 1101.160.  SPENDING AND INVESTMENT RESTRICTIONS 
  Sec. 1101.161.  AUTHORITY TO BORROW MONEY; SECURITY 
  [Sections 1101.162-1101.200 reserved for expansion]
  SUBCHAPTER E.  BONDS
  Sec. 1101.201.  GENERAL OBLIGATION BONDS 
  Sec. 1101.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1101.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1101.204.  REVENUE BONDS 
  Sec. 1101.205.  REFUNDING BONDS 
  Sec. 1101.206.  MATURITY OF BONDS 
  Sec. 1101.207.  EXECUTION OF BONDS 
  Sec. 1101.208.  ADDITIONAL MEANS OF SECURING PAYMENT
                   OF BONDS 
  Sec. 1101.209.  USE OF BOND PROCEEDS 
  Sec. 1101.210.  BONDS EXEMPT FROM TAXATION 
  [Sections 1101.211-1101.250 reserved for expansion]
  SUBCHAPTER F.  TAXES
  Sec. 1101.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1101.252.  TAX RATE 
  Sec. 1101.253.  ELECTION TO INCREASE MAXIMUM TAX RATE 
  Sec. 1101.254.  LIMIT ON ANNUAL INCREASE IN TAX RATE 
  Sec. 1101.255.  TAX ASSESSOR-COLLECTOR 
  [Sections 1101.256-1101.300 reserved for expansion]
  SUBCHAPTER G.  DISSOLUTION
  Sec. 1101.301.  DISSOLUTION; ELECTION 
  Sec. 1101.302.  BALLOT 
  Sec. 1101.303.  ELECTION RESULTS 
  Sec. 1101.304.  TRANSFER OR ADMINISTRATION OF ASSETS 
  Sec. 1101.305.  BOARD MANAGEMENT OF ASSETS ON
                   DISSOLUTION; IMPOSITION OF TAX 
  Sec. 1101.306.  RETURN OF SURPLUS TAXES 
  Sec. 1101.307.  REPORT; DISSOLUTION ORDER 
  CHAPTER 1101.  SUTTON COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 1101.001.  DEFINITIONS.  In this chapter:
               (1)  "Board" means the board of directors of the
  district.
               (2)  "Commissioners court" means the Commissioners
  Court of Sutton County, Texas.
               (3)  "Director" means a member of the board.
               (4)  "District" means the Sutton County Hospital
  District. (Acts 68th Leg., R.S., Ch. 1047, Sec. 1.01.)
         Sec. 1101.002.  AUTHORITY FOR OPERATION.  The Sutton County
  Hospital District operates and is financed as provided by Section
  9, Article IX, Texas Constitution, and by this chapter. (Acts 68th
  Leg., R.S., Ch. 1047, Sec. 1.02.)
         Sec. 1101.003.  ESSENTIAL PUBLIC FUNCTION. The district is
  a public entity performing an essential public function. (Acts
  68th Leg., R.S., Ch. 1047, Sec. 6.11 (part).)
         Sec. 1101.004.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of Sutton County,
  Texas. (Acts 68th Leg., R.S., Ch. 1047, Sec. 1.03.)
         Sec. 1101.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE
  OBLIGATION. This state may not become obligated for the support or
  maintenance of the district. (Acts 68th Leg., R.S., Ch. 1047, Sec.
  8.01 (part).)
         Sec. 1101.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.  
  The legislature may not make a direct appropriation for the
  construction, maintenance, or improvement of a district facility.
  (Acts 68th Leg., R.S., Ch. 1047, Sec. 8.01 (part).)
  [Sections 1101.007-1101.050 reserved for expansion]
  SUBCHAPTER B.  DISTRICT ADMINISTRATION
         Sec. 1101.051.  BOARD ELECTION; TERM.  (a)  The district is
  governed by a board of seven directors elected as follows:
               (1)  one director elected from each commissioners
  precinct; and
               (2)  three directors elected from the district at
  large.
         (b)  Directors serve staggered four-year terms.
         (c)  An election shall be held in each even-numbered year on
  the May uniform election date under Section 41.001, Election Code,
  to elect the appropriate number of directors. (Acts 68th Leg.,
  R.S., Ch. 1047, Secs. 3.01(a), 3.03(a), (d); Acts 72nd Leg., R.S.,
  Ch. 521, Sec. 4.)
         Sec. 1101.052.  NOTICE OF ELECTION.  Notice of a directors' 
  election must be published one time in a newspaper with general
  circulation in the district in accordance with Section 4.003,
  Election Code. (Acts 68th Leg., R.S., Ch. 1047, Sec. 3.04.)
         Sec. 1101.053.  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)  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.
         (c)  A district employee may not serve as a director. (Acts
  68th Leg., R.S., Ch. 1047, Sec. 3.06.)
         Sec. 1101.054.  BOARD VACANCY.  If a vacancy occurs in the
  office of director, the remaining directors shall appoint a
  director for the unexpired term. (Acts 68th Leg., R.S., Ch. 1047,
  Sec. 3.07.)
         Sec. 1101.055.  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 68th Leg., R.S., Ch. 1047, Secs. 3.08, 3.09.)
         Sec. 1101.056.  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 68th Leg., R.S., Ch.
  1047, Sec. 3.10.)
         Sec. 1101.057.  VOTING REQUIREMENT. A concurrence of a
  majority of the directors voting is necessary in any matter
  relating to district business. (Acts 68th Leg., R.S., Ch. 1047,
  Sec. 3.11.)
         Sec. 1101.058.  DISTRICT ADMINISTRATOR. (a) The board may
  appoint a qualified person as district administrator.
         (b)  The district administrator serves at the will of the
  board and is entitled to 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 68th Leg., R.S., Ch. 1047, Secs. 3.12(a) (part), (b) (part),
  (c) (part), (d).)
         Sec. 1101.059.  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
  68th Leg., R.S., Ch. 1047, Sec. 3.15.)
         Sec. 1101.060.  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 68th Leg., R.S., Ch.
  1047, Secs. 3.12(a) (part), (b) (part), (c) (part).)
         Sec. 1101.061.  APPOINTMENT AND RECRUITMENT OF STAFF AND
  EMPLOYEES. (a) The board may appoint to the staff any doctors the
  board considers necessary for the efficient operation of the
  district and may make temporary appointments as 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.
         (d)  The board may spend district money to recruit to the
  hospital staff any physicians necessary to satisfy the medical
  needs of district residents.  (Acts 68th Leg., R.S., Ch. 1047, Secs.
  3.13, 3.14, 4.05(c) (part).)
         Sec. 1101.062.  NURSING SCHOOL SCHOLARSHIPS.  The board may
  spend district money to provide scholarships to district residents
  to attend nursing school.  (Acts 68th Leg., R.S., Ch. 1047, Sec.
  4.05(c) (part).)
         Sec. 1101.063.  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 68th Leg., R.S., Ch.
  1047, Sec. 3.16.)
  [Sections 1101.064-1101.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 1101.101.  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 68th Leg., R.S., Ch. 1047, Sec. 4.02 (part).)
         Sec. 1101.102.  RESTRICTION ON COUNTY TAXATION AND DEBT.
  Sutton County may not impose a tax or issue bonds or other
  obligations for hospital purposes or to provide medical care for
  district residents. (Acts 68th Leg., R.S., Ch. 1047, Sec. 4.01.)
         Sec. 1101.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.
  The board shall manage, control, and administer the hospital system
  and the district's money and resources. (Acts 68th Leg., R.S., Ch.
  1047, Sec. 4.03.)
         Sec. 1101.104.  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 68th Leg., R.S., Ch. 1047, Sec.
  4.04.)
         Sec. 1101.105.  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 68th Leg., R.S., Ch. 1047, Secs. 4.05(a), (b).)
         Sec. 1101.106.  MOBILE EMERGENCY MEDICAL SERVICE. The
  district may operate or provide for the operation of a mobile
  emergency medical service. (Acts 68th Leg., R.S., Ch. 1047, Sec.
  4.02 (part).)
         Sec. 1101.107.  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 hospital system may include:
               (1)  facilities and equipment to provide for
  domiciliary care and treatment of geriatric patients; and
               (2)  convalescent home facilities.
         (c)  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.
         (d)  The board may lease hospital facilities for the
  district.
         (e)  The board may sell or otherwise dispose of property,
  including facilities or equipment, for the district. (Acts 68th
  Leg., R.S., Ch. 1047, Sec. 4.06.)
         Sec. 1101.108.  GIFTS AND ENDOWMENTS. The board may accept
  for the district a gift or endowment to be held in trust for any
  purpose and under any direction, limitation, or other provision
  prescribed in writing by the donor that is consistent with the
  proper management of the district. (Acts 68th Leg., R.S., Ch. 1047,
  Sec. 4.12.)
         Sec. 1101.109.  CONSTRUCTION CONTRACTS. (a) The board may
  enter into construction contracts for the district.
         (b)  The board may enter into a construction contract that
  involves the expenditure of more than the amount provided by
  Section 271.024, Local Government Code, only after competitive
  bidding as provided by Subchapter B, Chapter 271, Local Government
  Code. (Acts 68th Leg., R.S., Ch. 1047, Sec. 4.07(a).)
         Sec. 1101.110.  OPERATING AND MANAGEMENT CONTRACTS. The
  board may enter into an operating or management contract relating
  to a hospital facility for the district. (Acts 68th Leg., R.S., Ch.
  1047, Sec. 4.08.)
         Sec. 1101.111.  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 68th Leg., R.S., Ch. 1047, Sec. 4.11.)
         Sec. 1101.112.  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 a relative of the
  patient legally responsible for the patient's support cannot pay
  for care and treatment provided by the district, the district shall
  supply the care and treatment without charging the patient or the
  relative.
         (c)  On determining that the patient or a relative legally
  responsible for the patient's support can pay for all or part of the
  care and treatment provided by the district, the district
  administrator shall report that determination to the board, and the
  board shall issue an order directing the patient or the relative to
  pay the district a specified amount each week. The amount must be
  based on the individual's ability to pay.
         (d)  The district administrator may collect money owed to the
  district from the patient's estate or from that of a relative
  legally responsible for the patient's support in the manner
  provided by law for the collection of expenses in the last illness
  of a deceased person.
         (e)  If there is a dispute relating to an individual's
  ability to pay or if the district administrator has any doubt
  concerning an individual's ability to pay, the board shall:
               (1)  call witnesses;
               (2)  hear and resolve the question; and
               (3)  issue a final order.
         (f)  The final order of the board may be appealed to a
  district court in Sutton County. The substantial evidence rule
  applies to the appeal. (Acts 68th Leg., R.S., Ch. 1047, Sec. 4.09.)
         Sec. 1101.113.  REIMBURSEMENT FOR SERVICES. (a) The board
  shall require a county or municipality located outside the district
  to reimburse the district for the district's care and treatment of a
  sick or injured person of that county or municipality.
         (b)  The board shall require the sheriff of Sutton County to
  reimburse the district for the district's care and treatment of a
  person confined in a jail facility of Sutton 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 68th
  Leg., R.S., Ch. 1047, Sec. 4.10.)
         Sec. 1101.114.  AUTHORITY TO SUE AND BE SUED.  The board may
  sue and be sued on behalf of the district. (Acts 68th Leg., R.S.,
  Ch. 1047, Sec. 4.13.)
  [Sections 1101.115-1101.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 1101.151.  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 68th Leg.,
  R.S., Ch. 1047, Sec. 5.04.)
         Sec. 1101.152.  NOTICE; HEARING; ADOPTION OF BUDGET. (a)
  The board shall hold a public hearing on the proposed annual budget.
         (b)  The board shall publish notice of the hearing in a
  newspaper with general circulation in the district not later than
  the 10th day before the date of the hearing.
         (c)  Any district resident is entitled to be present and
  participate at the hearing.
         (d)  At the conclusion of the hearing, the board shall adopt
  a budget by acting on the budget proposed by the district
  administrator. The board may make any changes in the proposed
  budget that the board judges to be in the interests of the
  taxpayers.
         (e)  The budget is effective only after adoption by the
  board. (Acts 68th Leg., R.S., Ch. 1047, Sec. 5.05.)
         Sec. 1101.153.  AMENDMENTS TO BUDGET. After the annual
  budget is adopted, the budget may be amended on the board's
  approval. (Acts 68th Leg., R.S., Ch. 1047, Sec. 5.06.)
         Sec. 1101.154.  RESTRICTION ON EXPENDITURES. Money may be
  spent only for an expense included in the annual budget or an
  amendment to the budget. (Acts 68th Leg., R.S., Ch. 1047, Sec.
  5.07.)
         Sec. 1101.155.  FISCAL YEAR.  The district operates
  according to a fiscal year established by the board.  (Acts 68th
  Leg., R.S., Ch. 1047, Sec. 5.01.)
         Sec. 1101.156.  ANNUAL AUDIT. The board annually shall have
  an audit made of the district's financial condition. (Acts 68th
  Leg., R.S., Ch. 1047, Sec. 5.02.)
         Sec. 1101.157.  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 68th Leg., R.S., Ch. 1047, Sec. 5.03.)
         Sec. 1101.158.  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 68th Leg., R.S., Ch. 1047, Sec. 5.08.)
         Sec. 1101.159.  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 1101.160(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 portion of district money on time deposit;
  or
               (2)  purchase certificates of deposit. (Acts 68th Leg.,
  R.S., Ch. 1047, Secs. 5.10(a), (b).)
         Sec. 1101.160.  SPENDING AND INVESTMENT RESTRICTIONS. (a)
  Except as provided by Sections 1101.109, 1101.201, 1101.204, and
  1101.205, 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 68th Leg., R.S., Ch. 1047, Sec. 5.09.)
         Sec. 1101.161.  AUTHORITY TO BORROW MONEY; SECURITY. (a)
  The board may borrow money at a rate not to exceed the maximum
  annual percentage rate allowed by law for district obligations at
  the time the loan is made.
         (b)  To secure a loan, the board may pledge:
               (1)  district revenue that is not pledged to pay the
  district's bonded indebtedness;
               (2)  a district tax to be imposed by the district in the
  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)  a district bond that has been authorized but not
  sold.
         (c)  A loan for which taxes or bonds are pledged must mature
  not later than the first anniversary of the date the loan is made. A
  loan for which district revenue is pledged must mature not later
  than the fifth anniversary of the date the loan is made. (Acts 68th
  Leg., R.S., Ch. 1047, Sec. 5.11.)
  [Sections 1101.162-1101.200 reserved for expansion]
  SUBCHAPTER E.  BONDS
         Sec. 1101.201.  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 68th Leg., R.S., Ch. 1047, Sec. 6.01.)
         Sec. 1101.202.  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 68th Leg., R.S., Ch. 1047, Sec. 6.02.)
         Sec. 1101.203.  GENERAL OBLIGATION BOND ELECTION. (a) The
  district may issue general obligation bonds only if the bonds are
  authorized by a majority of the district voters.
         (b)  The board may order a bond election.
         (c)  The order calling the election must specify:
               (1)  the nature and date of the election;
               (2)  the hours during which the polls will be open;
               (3)  the location of the polling places;
               (4)  the amount of the bonds to be authorized; and
               (5)  the maximum maturity of the bonds.
         (d)  Notice of a bond election shall be given as provided by
  Section 1251.003, Government Code.
         (e)  The board shall declare the results of the election.
  (Acts 68th Leg., R.S., Ch. 1047, Sec. 6.03.)
         Sec. 1101.204.  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 68th Leg., R.S., Ch. 1047, Sec. 6.04.)
         Sec. 1101.205.  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 68th
  Leg., R.S., Ch. 1047, Secs. 6.05(a), (c) (part).)
         Sec. 1101.206.  MATURITY OF BONDS. District bonds must
  mature not later than 50 years after the date of issuance. (Acts
  68th Leg., R.S., Ch. 1047, Sec. 6.06 (part).)
         Sec. 1101.207.  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 68th Leg., R.S., Ch. 1047,
  Sec. 6.07.)
         Sec. 1101.208.  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
  1101.202 and revenue and other sources authorized by Section
  1101.204. (Acts 68th Leg., R.S., Ch. 1047, Sec. 6.12.)
         Sec. 1101.209.  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 bond issuance;
               (6)  costs related to the acquisition of land or
  interests in land for a project or facility to be provided through
  the bonds; and
               (7)  costs of construction of a project or facility to
  be provided through the bonds, including the payment of related
  professional services and expenses. (Acts 68th Leg., R.S., Ch.
  1047, Sec. 6.13.)
         Sec. 1101.210.  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)  any transaction relating to the bonds; and
               (3)  profits made in the sale of the bonds. (Acts 68th
  Leg., R.S., Ch. 1047, Sec. 6.11 (part).)
  [Sections 1101.211-1101.250 reserved for expansion]
  SUBCHAPTER F.  TAXES
         Sec. 1101.251.  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 68th
  Leg., R.S., Ch. 1047, Secs. 7.01(a) (part), (c), (d), 7.02(b).)
         Sec. 1101.252.  TAX RATE. (a) The board may impose the tax
  at a rate not to exceed the limit approved by the voters at the
  election authorizing the imposition of the tax.
         (b)  The tax rate for all purposes may not exceed 75 cents on
  each $100 valuation of all taxable property in the district.
         (c)  In setting the tax rate, the board shall consider the
  income of the district from sources other than taxation. (Acts 68th
  Leg., R.S., Ch. 1047, Secs. 7.01(a) (part), (b), 7.03 (part).)
         Sec. 1101.253.  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 15 percent of the registered 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 a majority of the votes favor the proposition, the
  board may impose taxes as authorized by the proposition, subject to
  Section 1101.254. If a majority of the votes 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 68th Leg., R.S., Ch.
  1047, Secs. 7.05(a), (b) (part), (c) (part), (d) (part).)
         Sec. 1101.254.  LIMIT ON ANNUAL INCREASE IN TAX RATE. (a)  
  Notwithstanding Section 1101.253, the board may not in any year
  increase the tax rate by five cents or more on each $100 valuation
  above the tax rate imposed in the preceding year unless the increase
  is approved at an election held under this section.
         (b)  The board may order an election to increase the
  district's tax rate by five cents or more on each $100 of valuation
  above the rate imposed in the preceding year.  The board shall order
  the election if the board receives a petition requesting an
  election that is signed by at least 15 percent of the registered
  voters in the district.
         (c)  The ballot for the election shall be printed to permit
  voting for or against the proposition: "The imposition of the
  (insert year) annual tax by the district for hospital purposes at a
  rate not to exceed (insert rate) cents on the $100 valuation of all
  taxable property in the district."
         (d)  If a majority of the votes favor the proposition, the
  board may impose taxes as authorized by the proposition.  If a
  majority of the votes do not favor the proposition, the board may
  not increase the tax rate for that year by five cents or more on each
  $100 valuation above the tax rate imposed in the preceding year.
         (e)  This section does not authorize the board to impose
  taxes in an amount that exceeds the maximum amount approved by the
  voters under Section 1101.253.
         (f)  This section does not affect any rights district voters
  may have to petition for an election under Section 26.07, Tax Code,
  except that if district voters approve a tax rate increase under
  this section, the voters may not petition for an election under
  Section 26.07, Tax Code, as to the tax rate for that year.
         (g)  Section 41.001(a), Election Code, does not apply to an
  election ordered under this section. (Acts 68th Leg., R.S., Ch.
  1047, Secs. 7.06(a), (b), (c) (part), (d) (part), (e) (part), (f),
  (g).)
         Sec. 1101.255.  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 68th Leg., R.S., Ch. 1047, Sec.
  7.04(b).)
  [Sections 1101.256-1101.300 reserved for expansion]
  SUBCHAPTER G.  DISSOLUTION
         Sec. 1101.301.  DISSOLUTION; ELECTION. (a) The district
  may be dissolved as provided by this subchapter.
         (b)  The board may order an election on the question of
  dissolving the district and disposing of the district's assets and
  obligations.
         (c)  The board shall order an election if the board receives
  a petition requesting an election that is signed by at least 15
  percent of registered voters in the district.
         (d)  Section 41.001(a), Election Code, does not apply to an
  election ordered under this section. (Acts 68th Leg., R.S., Ch.
  1047, Secs. 7.21(a), (b), (c) (part).)
         Sec. 1101.302.  BALLOT. The ballot for an election under
  this subchapter must be printed to permit voting for or against the
  proposition: "The dissolution of the Sutton County Hospital
  District." (Acts 68th Leg., R.S., Ch. 1047, Sec. 7.21(d) (part).)
         Sec. 1101.303.  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 68th Leg., R.S., Ch. 1047, Sec.
  7.21(e).)
         Sec. 1101.304.  TRANSFER OR ADMINISTRATION OF ASSETS. (a)
  If a majority of the votes in an election under this subchapter
  favor dissolution, the board shall:
               (1)  transfer to Sutton County the land, buildings,
  improvements, equipment, and other assets that belong to the
  district; or
               (2)  administer the property, assets, and debts in
  accordance with Sections 1101.305, 1101.306, and 1101.307.
         (b)  If the board makes the transfer under Subsection (a)(1),
  Sutton County assumes all debts and obligations of the district at
  the time of the transfer, and the district is dissolved. (Acts 68th
  Leg., R.S., Ch. 1047, Sec. 7.21(f).)
         Sec. 1101.305.  BOARD MANAGEMENT OF ASSETS ON DISSOLUTION;
  IMPOSITION OF TAX. (a) If the district does not transfer the land,
  buildings, improvements, equipment, and other assets to Sutton
  County under Section 1101.304, the board shall continue to control
  and administer the property, assets, and debts of the district
  until all money has been disposed of and all district debts have
  been paid or settled.
         (b)  After the board finds that the district is dissolved,
  the board shall:
               (1)  determine the debt owed by the district; and
               (2)  impose on the property included in the district's
  tax rolls a tax that is in proportion of the debt to the property
  value.
         (c)  The board may institute a suit to enforce payment of
  taxes and to foreclose liens to secure the payment of taxes due the
  district. (Acts 68th Leg., R.S., Ch. 1047, Secs. 7.22(a), (b),
  (c).)
         Sec. 1101.306.  RETURN OF SURPLUS TAXES.  (a)  On the payment
  of all outstanding debts and obligations of the district in
  accordance with Section 1101.305, the board shall order the board
  secretary to return to each district taxpayer the pro rata share of
  all unused tax money.
         (b)  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 68th Leg., R.S., Ch. 1047, Sec.
  7.22(d).)
         Sec. 1101.307.  REPORT; DISSOLUTION ORDER.  (a)  After the
  district has paid all district debts and has disposed of all
  district money and other assets as prescribed by this subchapter,
  the board shall file a written report with the commissioners court
  summarizing the board's actions in dissolving the district.
         (b)  Not later than the 10th day after the date the
  commissioners court receives the report and determines that the
  requirements of this subchapter have been fulfilled, the
  commissioners court shall enter an order dissolving the district.  (Acts 68th Leg., R.S., Ch. 1047, Sec. 7.22(e).)
 
  CHAPTER 1102. SWEENY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1102.001.  DEFINITIONS 
  Sec. 1102.002.  AUTHORITY FOR OPERATION 
  Sec. 1102.003.  POLITICAL SUBDIVISION 
  Sec. 1102.004.  DISTRICT TERRITORY 
  Sec. 1102.005.  CORRECTION OF INVALID PROCEDURES 
  [Sections 1102.006-1102.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1102.051.  BOARD ELECTION; TERM 
  Sec. 1102.052.  NOTICE OF ELECTION 
  Sec. 1102.053.  QUALIFICATIONS FOR OFFICE 
  Sec. 1102.054.  BOND; RECORD OF BOND AND OATH 
  Sec. 1102.055.  BOARD VACANCY 
  Sec. 1102.056.  OFFICERS 
  Sec. 1102.057.  COMPENSATION; EXPENSES 
  Sec. 1102.058.  VOTING REQUIREMENT 
  Sec. 1102.059.  APPOINTMENT AND RECRUITMENT OF STAFF
                   AND EMPLOYEES 
  Sec. 1102.060.  MAINTENANCE OF RECORDS; PUBLIC
                   INSPECTION 
  Sec. 1102.061.  SEAL 
  [Sections 1102.062-1102.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1102.101.  DISTRICT RESPONSIBILITY 
  Sec. 1102.102.  RESTRICTION ON COUNTY OR MUNICIPAL
                   TAXATION 
  Sec. 1102.103.  MANAGEMENT AND CONTROL OF DISTRICT 
  Sec. 1102.104.  HOSPITAL SYSTEM 
  Sec. 1102.105.  NURSING HOME FACILITIES 
  Sec. 1102.106.  RULES 
  Sec. 1102.107.  PURCHASING AND ACCOUNTING PROCEDURES 
  Sec. 1102.108.  EMINENT DOMAIN 
  Sec. 1102.109.  GIFTS AND ENDOWMENTS 
  Sec. 1102.110.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1102.111.  NONPROFIT CORPORATION 
  Sec. 1102.112.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1102.113-1102.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
  Sec. 1102.151.  BUDGET 
  Sec. 1102.152.  PROPOSED BUDGET; NOTICE AND HEARING 
  Sec. 1102.153.  FISCAL YEAR 
  Sec. 1102.154.  ANNUAL AUDIT 
  Sec. 1102.155.  DEPOSITORY OR TREASURER 
  Sec. 1102.156.  GENERAL AUTHORITY TO BORROW MONEY;
                   SECURITY 
  [Sections 1102.157-1102.200 reserved for expansion]
  SUBCHAPTER E. BONDS
  Sec. 1102.201.  GENERAL OBLIGATION BONDS 
  Sec. 1102.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1102.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1102.204.  EXECUTION OF GENERAL OBLIGATION BONDS 
  Sec. 1102.205.  REVENUE BONDS 
  Sec. 1102.206.  ADDITIONAL MEANS OF SECURING REPAYMENT
                   OF BONDS 
  Sec. 1102.207.  USE OF BOND PROCEEDS 
  [Sections 1102.208-1102.250 reserved for expansion]
  SUBCHAPTER F. TAXES
  Sec. 1102.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1102.252.  TAX RATE 
  Sec. 1102.253.  TAX ASSESSOR-COLLECTOR 
  [Sections 1102.254-1102.300 reserved for expansion]
  SUBCHAPTER G. DISSOLUTION
  Sec. 1102.301.  DISSOLUTION; ELECTION 
  Sec. 1102.302.  NOTICE OF ELECTION 
  Sec. 1102.303.  BALLOT 
  Sec. 1102.304.  ELECTION RESULTS 
  Sec. 1102.305.  TRANSFER OR ADMINISTRATION OF ASSETS 
  Sec. 1102.306.  IMPOSITION OF TAX AND RETURN OF SURPLUS
                   TAXES 
  Sec. 1102.307.  REPORT; DISSOLUTION ORDER 
  CHAPTER 1102. SWEENY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1102.001.  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 Sweeny Hospital District.
  (New.)
         Sec. 1102.002.  AUTHORITY FOR OPERATION. The Sweeny
  Hospital District operates in accordance with Section 9, Article
  IX, Texas Constitution. (Acts 58th Leg., R.S., Ch. 135, Sec. 1
  (part).)
         Sec. 1102.003.  POLITICAL SUBDIVISION. The district is a
  political subdivision of this state.  (Acts 58th Leg., R.S., Ch.
  135, Sec. 16 (part).)
         Sec. 1102.004.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of the Sweeny
  Independent School District as those boundaries existed on May 10,
  1963. (Acts 58th Leg., R.S., Ch. 135, Sec. 1 (part).)
         Sec. 1102.005.  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. 135, Sec. 17 (part).)
  [Sections 1102.006-1102.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1102.051.  BOARD ELECTION; TERM. (a) The board
  consists of seven elected directors.
         (b)  Unless four-year terms are established under Section
  285.081, Health and Safety Code:
               (1)  directors serve two-year terms; and
               (2)  an election shall be held annually on the May
  uniform election date under Section 41.001, Election Code. (Acts
  58th Leg., R.S., Ch. 135, Secs. 3(a) (part), (c) (part).)
         Sec. 1102.052.  NOTICE OF ELECTION. Notice of a directors'
  election shall be published in a newspaper of general circulation
  in Brazoria County in accordance with Section 4.003, Election Code.
  (Acts 58th Leg., R.S., Ch. 135, Sec. 3(c) (part).)
         Sec. 1102.053.  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)  at least 18 years of age.
         (b)  A district employee may not serve as a director. (Acts
  58th Leg., R.S., Ch. 135, Sec. 3(a) (part).)
         Sec. 1102.054.  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 the constitutional oath of
  office must be deposited with the district's depository bank for
  safekeeping. (Acts 58th Leg., R.S., Ch. 135, Sec. 3(a) (part).)
         Sec. 1102.055.  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 58th Leg., R.S., Ch. 135, Sec. 3(b) (part).)
         Sec. 1102.056.  OFFICERS. (a)  The board shall elect from
  among its members a president and secretary.
         (b)  The board may elect or appoint other officers as the
  board determines necessary.
         (c)  The board shall prescribe the powers and duties of an
  officer position created under Subsection (b) in addition to the
  positions of president and secretary.  (Acts 58th Leg., R.S., Ch.
  135, Sec. 3(b) (part).)
         Sec. 1102.057.  COMPENSATION; EXPENSES. A director serves
  without compensation but may be reimbursed for actual expenses
  incurred in the performance of official duties on approval of the
  expenses by the entire board. (Acts 58th Leg., R.S., Ch. 135, Sec. 4
  (part).)
         Sec. 1102.058.  VOTING REQUIREMENT. A concurrence of four
  directors is sufficient in any matter relating to district
  business. (Acts 58th Leg., R.S., Ch. 135, Sec. 3(b) (part).)
         Sec. 1102.059.  APPOINTMENT AND RECRUITMENT OF STAFF AND
  EMPLOYEES. (a) The board may employ a general manager, an attorney,
  a bookkeeper, an architect, and other employees considered
  necessary for the efficient operation of the district.
         (b)  The board may spend district money, enter into
  agreements, and take other necessary action to recruit physicians
  as independent contractors to serve as medical staff members and to
  recruit other persons to serve as district employees, including:
               (1)  advertising and marketing;
               (2)  paying travel, recruitment, and relocation
  expenses;
               (3)  providing a loan or scholarship to:
                     (A)  a physician who:
                           (i)  is currently enrolled in health care
  education courses at an institution of higher education; and
                           (ii)  contractually agrees to serve as an
  independent contractor on the district's medical staff; or
                     (B)  a person who is not a physician who:
                           (i)  is currently enrolled in health care
  education courses at an institution of higher education; and
                           (ii)  contractually agrees to become a
  district employee;
               (4)  paying the tuition or other expenses of a
  full-time medical student who:
                     (A)  is enrolled in and is in good standing at an
  accredited medical school, college, or university; and
                     (B)  contractually agrees to serve as an
  independent contractor on the district's medical staff in return
  for that assistance; or
               (5)  paying the tuition or other expenses of a
  full-time student in a health occupation who:
                     (A)  is not a medical student;
                     (B)  is enrolled in and is in good standing at an
  accredited medical school, college, or university; and
                     (C)  contractually agrees to serve as an employee
  or independent contractor for the district in return for that
  assistance. (Acts 58th Leg., R.S., Ch. 135, Secs. 7(a) (part),
  (d).)
         Sec. 1102.060.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.
  Except as provided by Section 1102.054, 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 58th Leg., R.S., Ch. 135, Sec.
  7(b).)
         Sec. 1102.061.  SEAL. The board may adopt a seal for the
  district.  (Acts 58th Leg., R.S., Ch. 135, Sec. 7(a) (part).)
  [Sections 1102.062-1102.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1102.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for providing medical and hospital care for the
  district's needy inhabitants and needy and indigent residents.
  (Acts 58th Leg., R.S., Ch. 135, Secs. 2 (part), 12 (part).)
         Sec. 1102.102.  RESTRICTION ON COUNTY OR MUNICIPAL TAXATION.
  Brazoria County or a municipality in the district may not impose a
  tax on property in the district for hospital purposes. (Acts 58th
  Leg., R.S., Ch. 135, Sec. 12 (part).)
         Sec. 1102.103.  MANAGEMENT AND CONTROL OF DISTRICT. The
  management and control of the district is vested in the board.
  (Acts 58th Leg., R.S., Ch. 135, Sec. 4 (part).)
         Sec. 1102.104.  HOSPITAL SYSTEM. The district shall provide
  for:
               (1)  the establishment of a hospital system to provide
  medical and hospital care to 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. 135, Sec. 2 (part).)
         Sec. 1102.105.  NURSING HOME FACILITIES. The district may
  provide outpatient care for the aged or infirm residing in the
  district in nursing home facilities by purchasing, constructing,
  acquiring, repairing, renovating, or leasing land, buildings, and
  improvements.  The district may equip the facilities and administer
  the facilities for appropriate purposes. (Acts 58th Leg., R.S.,
  Ch. 135, Sec. 2a.)
         Sec. 1102.106.  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 58th Leg., R.S., Ch. 135, Sec. 7(c).)
         Sec. 1102.107.  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. 135, Sec. 7(a)
  (part).)
         Sec. 1102.108.  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(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 58th Leg., R.S., Ch. 135,
  Sec. 9.)
         Sec. 1102.109.  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. 135,
  Sec. 14.)
         Sec. 1102.110.  PAYMENT FOR TREATMENT; PROCEDURES. (a)
  When a patient who resides in the district 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 the board 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 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 the patient's 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)  Either party to the dispute may appeal the order to the
  district court.  (Acts 58th Leg., R.S., Ch. 135, Sec. 13.)
         Sec. 1102.111.  NONPROFIT CORPORATION. (a) The district
  may create and sponsor a nonprofit corporation under the Business
  Organizations Code and may contribute money to or solicit money for
  the corporation.
         (b)  The corporation may use money contributed by the
  district only to provide health care or other services the district
  is authorized to provide under this chapter.
         (c)  The corporation may invest the corporation's money in
  any manner in which the district may invest the district's money,
  including investing money as authorized by Chapter 2256, Government
  Code.
         (d)  The board shall establish controls to ensure that the
  corporation uses its money as required by this section. (Acts 58th
  Leg., R.S., Ch. 135, Sec. 7A.)
         Sec. 1102.112.  AUTHORITY TO SUE AND BE SUED. As a
  governmental agency, the district may sue and be sued in its own
  name in any court of this state. (Acts 58th Leg., R.S., Ch. 135,
  Sec. 16 (part).)
  [Sections 1102.113-1102.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 1102.151.  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 58th Leg., R.S., Ch. 135, Sec. 8(c) (part).)
         Sec. 1102.152.  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 Brazoria County not later
  than the 10th day before the date of the hearing.
         (c)  Any district resident is entitled to:
               (1)  appear at the time and place designated in the
  notice; and
               (2)  be heard regarding any item included in the
  proposed budget. (Acts 58th Leg., R.S., Ch. 135, Sec. 8(c) (part).)
         Sec. 1102.153.  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. 135, Sec. 8(a).)
         Sec. 1102.154.  ANNUAL AUDIT. The board annually shall have
  an independent audit made of the district's books and records.
  (Acts 58th Leg., R.S., Ch. 135, Sec. 8(b).)
         Sec. 1102.155.  DEPOSITORY OR TREASURER. (a) The board by
  resolution shall designate a bank or banks in Brazoria County as the
  district's depository or treasurer. A designated bank serves for
  two years and until a successor is designated.
         (b)  All district money shall be secured in the manner
  provided for securing county funds. (Acts 58th Leg., R.S., Ch. 135,
  Sec. 10.)
         Sec. 1102.156.  GENERAL AUTHORITY TO BORROW MONEY; SECURITY.
  (a) The board may borrow money at a rate not to exceed the maximum
  annual percentage rate allowed by law for district obligations at
  the time the loan is made.
         (b)  To secure a loan, the board may pledge:
               (1)  district revenue that is not pledged to pay the
  district's bonded indebtedness;
               (2)  a district tax to be imposed by the district during
  the 12-month period following the date of the pledge that is not
  pledged to pay the principal of or interest on district bonds; or
               (3)  a district bond that has been authorized but not
  sold.
         (c)  A loan for which taxes or bonds are pledged must mature
  not later than the first anniversary of the date the loan is made. A
  loan for which district revenue is pledged must mature not later
  than the fifth anniversary of the date the loan is made. (Acts 58th
  Leg., R.S., Ch. 135, Sec. 7B.)
  [Sections 1102.157-1102.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 1102.201.  GENERAL OBLIGATION BONDS. The board may
  issue and sell general obligation bonds in the name and on the faith
  and credit of the district to purchase, construct, acquire, repair,
  or renovate buildings or improvements and equip buildings or
  improvements for hospital purposes. (Acts 58th Leg., R.S., Ch.
  135, Sec. 6(a) (part).)
         Sec. 1102.202.  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 1102.201
  as the bonds mature.
         (b)  The tax required by this section together with any other
  ad valorem tax imposed for the district may not in any year exceed
  75 cents on each $100 valuation of taxable property in the district.
  (Acts 58th Leg., R.S., Ch. 135, Secs. 5(a) (part), 6(a) (part).)
         Sec. 1102.203.  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 in accordance with
  Chapter 1251, Government Code.
         (c)  Notice of a bond election shall be given as provided by
  Chapter 1251, Government Code. (Acts 58th Leg., R.S., Ch. 135, Sec.
  6(c) (part).)
         Sec. 1102.204.  EXECUTION OF GENERAL OBLIGATION BONDS. (a)
  The board president shall execute district general obligation bonds
  in the district's name.
         (b)  The board secretary shall countersign the bonds. (Acts
  58th Leg., R.S., Ch. 135, Sec. 6(b) (part).)
         Sec. 1102.205.  REVENUE BONDS. (a) The board may issue
  revenue bonds to purchase, construct, acquire, repair, renovate, or
  equip buildings, sites, or improvements for district purposes.
         (b)  The bonds must be payable from and secured by a pledge of
  all or part of the revenue derived from the operation of the
  district's hospital system.
         (c)  The bonds may be additionally secured by a mortgage or
  deed of trust lien on all or part of district property.
         (d)  The bonds must be issued in the manner provided by
  Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
  Health and Safety Code. (Acts 58th Leg., R.S., Ch. 135, Sec. 6(e).)
         Sec. 1102.206.  ADDITIONAL MEANS OF SECURING REPAYMENT 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
  1102.202 and revenue and other sources as authorized by Section
  1102.205. (Acts 58th Leg., R.S., Ch. 135, Sec. 6A.)
         Sec. 1102.207.  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 bond issuance;
               (6)  costs related to the acquisition of land or
  interests 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 58th Leg., R.S., Ch.
  135, Sec. 6B.)
  [Sections 1102.208-1102.250 reserved for expansion]
  SUBCHAPTER F. TAXES
         Sec. 1102.251.  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 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 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. (Acts 58th Leg., R.S., Ch. 135,
  Secs. 5(a) (part), 8(c) (part).)
         Sec. 1102.252.  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 58th Leg., R.S., Ch. 135, Sec. 5(a)
  (part).)
         Sec. 1102.253.  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 58th Leg., R.S., Ch. 135, Sec.
  5(c).)
  [Sections 1102.254-1102.300 reserved for expansion]
  SUBCHAPTER G. DISSOLUTION
         Sec. 1102.301.  DISSOLUTION; ELECTION.  (a) The district
  may be dissolved only on approval of a majority of the registered
  district voters voting in an election held for that purpose.
         (b)  The board may order an election on the question of
  dissolving the district and disposing of the district's assets and
  obligations.
         (c)  The board shall order an election if the board receives
  a petition requesting an election that is signed by at least 15
  percent of the registered district voters.
         (d)  The election shall be held not later than the 60th day
  after the date the election is ordered.
         (e)  The order calling the election must state:
               (1)  the nature of the election, including the
  proposition to appear on the ballot;
               (2)  the date of the election;
               (3)  the hours during which the polls will be open; and
               (4)  the location of the polling places.
         (f)  Section 41.001, Election Code, does not apply to an
  election ordered under this section. (Acts 58th Leg., R.S., Ch.
  135, Secs. 9A(a), (b), (c), (d).)
         Sec. 1102.302.  NOTICE OF ELECTION. (a) The board shall
  give notice of an election under this subchapter by publishing once
  a week for two consecutive weeks a substantial copy of the election
  order in a newspaper with general circulation in the district.
         (b)  The first publication of notice must appear not later
  than the 35th day before the date set for the election. (Acts 58th
  Leg., R.S., Ch. 135, Sec. 9A(e).)
         Sec. 1102.303.  BALLOT. The ballot for an election under
  this subchapter must be printed to permit voting for or against the
  proposition: "The dissolution of the Sweeny Hospital District."
  (Acts 58th Leg., R.S., Ch. 135, Sec. 9A(f).)
         Sec. 1102.304.  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. 135, Sec.
  9A(g).)
         Sec. 1102.305.  TRANSFER OR ADMINISTRATION OF ASSETS. (a)
  If a majority of the votes in the election held under this
  subchapter favor dissolution, the board shall:
               (1)  transfer the land, buildings, improvements,
  equipment, and other assets that belong to the district to Brazoria
  County or another governmental entity in Brazoria County; or
               (2)  administer the property, assets, and debts until
  all money has been disposed of and all district debts have been paid
  or settled.
         (b)  If the district makes the transfer under Subsection
  (a)(1), the county or entity assumes all debts and obligations of
  the district at the time of the transfer, and the district is
  dissolved.
         (c)  If the district does not make the transfer under
  Subsection (a)(1) and the board administers the property, assets,
  and debts of the district under Subsection (a)(2), the district is
  dissolved when all the money has been disposed of and all district
  debts have been paid or settled. (Acts 58th Leg., R.S., Ch. 135,
  Secs. 9A(h), (i), (j).)
         Sec. 1102.306.  IMPOSITION OF TAX AND RETURN OF SURPLUS
  TAXES. (a) After the board finds that the district is dissolved,
  the board shall:
               (1)  determine any debt owed by the district; and
               (2)  impose on the property included on the district's
  tax roll a tax that is in proportion of any debt to the property
  value.
         (b)  On the payment of all outstanding debts and obligations
  of the district, the board shall order the 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 Brazoria County tax
  assessor-collector. (Acts 58th Leg., R.S., Ch. 135, Secs. 9A(k),
  (l), (m).)
         Sec. 1102.307.  REPORT; DISSOLUTION ORDER. (a) After the
  district has paid all district debts and has disposed of all
  district money and other assets as prescribed by this subchapter,
  the board shall file a written report with the Commissioners Court
  of Brazoria County summarizing the board's actions in dissolving
  the district.
         (b)  Not later than the 10th day after the date the
  commissioners court 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. 135, Secs. 9A(n), (o).)
 
  CHAPTER 1103.  SWISHER MEMORIAL HOSPITAL DISTRICT
  SUBCHAPTER A.  GENERAL PROVISIONS
  Sec. 1103.001.  DEFINITIONS 
  Sec. 1103.002.  AUTHORITY FOR CREATION 
  Sec. 1103.003.  ESSENTIAL PUBLIC FUNCTION 
  Sec. 1103.004.  DISTRICT TERRITORY 
  Sec. 1103.005.  DISTRICT SUPPORT AND MAINTENANCE NOT
                   STATE OBLIGATION 
  Sec. 1103.006.  RESTRICTION ON STATE FINANCIAL
                   ASSISTANCE 
  [Sections 1103.007-1103.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1103.051.  BOARD ELECTION; TERM 
  Sec. 1103.052.  NOTICE OF ELECTION 
  Sec. 1103.053.  BALLOT PETITION 
  Sec. 1103.054.  QUALIFICATIONS FOR OFFICE 
  Sec. 1103.055.  BOARD VACANCY 
  Sec. 1103.056.  OFFICERS 
  Sec. 1103.057.  COMPENSATION 
  Sec. 1103.058.  VOTING REQUIREMENT 
  Sec. 1103.059.  DISTRICT ADMINISTRATOR; ASSISTANT
                   ADMINISTRATOR 
  Sec. 1103.060.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1103.061.  EMPLOYEES 
  Sec. 1103.062.  RETIREMENT PROGRAM 
  Sec. 1103.063.  MAINTENANCE OF RECORDS; PUBLIC
                   INSPECTION 
  [Sections 1103.064-1103.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
  Sec. 1103.101.  DISTRICT RESPONSIBILITY 
  Sec. 1103.102.  RESTRICTION ON COUNTY OR MUNICIPAL
                   TAXATION AND DEBT 
  Sec. 1103.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
  Sec. 1103.104.  HOSPITAL SYSTEM 
  Sec. 1103.105.  RULES 
  Sec. 1103.106.  PURCHASING AND ACCOUNTING PROCEDURES 
  Sec. 1103.107.  EMINENT DOMAIN 
  Sec. 1103.108.  GIFTS AND ENDOWMENTS 
  Sec. 1103.109.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR CARE AND TREATMENT 
  Sec. 1103.110.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1103.111.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1103.112-1103.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
  Sec. 1103.151.  BUDGET 
  Sec. 1103.152.  FISCAL YEAR 
  Sec. 1103.153.  AUDIT 
  Sec. 1103.154.  FINANCIAL REPORT 
  Sec. 1103.155.  DEPOSITORY 
  [Sections 1103.156-1103.200 reserved for expansion]
  SUBCHAPTER E.  BONDS
  Sec. 1103.201.  GENERAL OBLIGATION BONDS 
  Sec. 1103.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1103.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1103.204.  EXECUTION OF GENERAL OBLIGATION BONDS 
  Sec. 1103.205.  REFUNDING BONDS 
  Sec. 1103.206.  BONDS EXEMPT FROM TAXATION 
  Sec. 1103.207.  ANTICIPATION NOTES AND CERTIFICATES OF
                   OBLIGATION 
  [Sections 1103.208-1103.250 reserved for expansion]
  SUBCHAPTER F. GENERAL TAX PROVISIONS
  Sec. 1103.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1103.252.  TAX RATE 
  Sec. 1103.253.  TAX ASSESSOR-COLLECTOR 
  CHAPTER 1103.  SWISHER MEMORIAL HOSPITAL DISTRICT
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 1103.001.  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 Swisher Memorial Hospital
  District. (New.)
         Sec. 1103.002.  AUTHORITY FOR CREATION. The Swisher
  Memorial 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 59th Leg., R.S.,
  Ch. 16, Sec. 1 (part).)
         Sec. 1103.003.  ESSENTIAL PUBLIC FUNCTION. The district
  performs an essential public function in carrying out the purposes
  of this chapter. (Acts 59th Leg., R.S., Ch. 16, Sec. 8 (part).)
         Sec. 1103.004.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of Swisher County,
  Texas. (Acts 59th Leg., R.S., Ch. 16, Sec. 1 (part).)
         Sec. 1103.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE
  OBLIGATION. The support and maintenance of the district may not
  become a charge against or obligation of this state. (Acts 59th
  Leg., R.S., Ch. 16, Sec. 18 (part).)
         Sec. 1103.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.
  The legislature may not make a direct appropriation for the
  construction, maintenance, or improvement of a district facility.
  (Acts 59th Leg., R.S., Ch. 16, Sec. 18 (part).)
  [Sections 1103.007-1103.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1103.051.  BOARD ELECTION; TERM. (a) The district is
  governed by a board of five directors elected as follows:
               (1)  one director elected from each county
  commissioners precinct; and
               (2)  one director elected from the county at large.
         (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.
         (c)  An election shall be held on the uniform election date
  in May of each year to elect the appropriate number of directors.  
  (Acts 59th Leg., R.S., Ch. 16, Sec. 4 (part).)
         Sec. 1103.052.  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 Swisher
  County.  (Acts 59th Leg., R.S., Ch. 16, Sec. 4 (part).)
         Sec. 1103.053.  BALLOT PETITION. A person who wants to have
  the person's name printed on the ballot as a candidate for director
  must file a petition requesting that action. The petition must be:
               (1)  signed by not less than 25 registered voters; and
               (2)  filed by the deadline imposed by Section 144.005,
  Election Code.  (Acts 59th Leg., R.S., Ch. 16, Sec. 4 (part).)
         Sec. 1103.054.  QUALIFICATIONS FOR OFFICE. (a)  A person
  must at the time of election or appointment as director:
               (1)  own property subject to taxation in the district;
  and
               (2)  be at least 18 years of age.
         (b)  A director must reside in the area the director
  represents.  (Acts 59th Leg., R.S., Ch. 16, Sec. 4 (part).)
         Sec. 1103.055.  BOARD VACANCY. (a) If a vacancy occurs in
  the office of director, the remaining directors shall appoint a
  director for the unexpired term.
         (b)  If the number of directors is reduced to fewer than
  three for any reason, the remaining directors shall immediately
  call a special election to fill the vacancies. If the remaining
  directors do not call the election, the county judge of Swisher
  County may fill the vacancies by appointment. (Acts 59th Leg.,
  R.S., Ch. 16, Sec. 4 (part).)
         Sec. 1103.056.  OFFICERS. The board shall elect from among
  its members a president, a vice president, and a secretary. (Acts
  59th Leg., R.S., Ch. 16, Sec. 4 (part).)
         Sec. 1103.057.  COMPENSATION. A director is entitled to
  compensation at a rate determined by the board. The rate may not
  exceed $10 for each board meeting. (Acts 59th Leg., R.S., Ch. 16,
  Sec. 4 (part).)
         Sec. 1103.058.  VOTING REQUIREMENT. A concurrence of three
  directors is sufficient in any matter relating to district
  business. (Acts 59th Leg., R.S., Ch. 16, Sec. 4 (part).)
         Sec. 1103.059.  DISTRICT ADMINISTRATOR; ASSISTANT
  ADMINISTRATOR.  (a)  The board shall appoint a qualified person as
  district administrator.
         (b)  The board may appoint an assistant administrator.
         (c)  The district administrator and any assistant
  administrator serve at the will of the board and 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 $10,000 that:
               (1)  is conditioned on the administrator performing the
  administrator's duties; and
               (2)  contains any other condition the board requires.  
  (Acts 59th Leg., R.S., Ch. 16, Sec. 5 (part).)
         Sec. 1103.060.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
  Subject to any limitations prescribed by the board, the district
  administrator shall:
               (1)  supervise the work and activities of the district;
  and
               (2)  direct the affairs of the district. (Acts 59th
  Leg., R.S., Ch. 16, Sec. 5 (part).)
         Sec. 1103.061.  EMPLOYEES. The board may employ any
  doctors, technicians, nurses, and other employees as considered
  necessary for the efficient operation of the district or may
  provide that the district administrator has the authority to employ
  those persons.  (Acts 59th Leg., R.S., Ch. 16, Sec. 5 (part).)
         Sec. 1103.062.  RETIREMENT PROGRAM. The board may enter
  into any contract or agreement with this state or the federal
  government as required to establish or continue a retirement
  program for the benefit of the district's employees. (Acts 59th
  Leg., R.S., Ch. 16, Sec. 5 (part).)
         Sec. 1103.063.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.
  (a)  The board shall:
               (1)  keep an accurate account of board meetings and
  proceedings; and
               (2)  maintain at the district's principal office all
  district records and accounts, including contracts, notices,
  duplicate vouchers, and duplicate receipts.
         (b)  The information described by Subsection (a) shall be
  open to public inspection at the district's principal office at all
  reasonable times. (Acts 59th Leg., R.S., Ch. 16, Sec. 4 (part).)
  [Sections 1103.064-1103.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 1103.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for:
               (1)  operating all hospital facilities for providing
  medical and hospital care of indigent persons; and
               (2)  providing medical and hospital care for the
  district's needy inhabitants. (Acts 59th Leg., R.S., Ch. 16, Secs.
  2 (part), 17 (part).)
         Sec. 1103.102.  RESTRICTION ON COUNTY OR MUNICIPAL TAXATION
  AND DEBT. Swisher County or a municipality in Swisher County may
  not impose a tax or issue bonds or other obligations for hospital
  purposes or for medical care. (Acts 59th Leg., R.S., Ch. 16, Sec.
  17 (part).)
         Sec. 1103.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  
  The board shall manage, control, and administer the district's
  hospitals and hospital system. (Acts 59th Leg., R.S., Ch. 16, Sec.
  5 (part).)
         Sec. 1103.104.  HOSPITAL SYSTEM. The district shall provide
  for:
               (1)  the establishment of a hospital system by:
                     (A)  purchasing, constructing, acquiring,
  repairing, or renovating buildings and equipment; and
                     (B)  equipping the buildings; and
               (2)  the administration of the hospital system for
  hospital purposes. (Acts 59th Leg., R.S., Ch. 16, Sec. 2 (part).)
         Sec. 1103.105.  RULES. The board may adopt rules for the
  operation of the district and as required to administer this
  chapter. (Acts 59th Leg., R.S., Ch. 16, Secs. 5 (part), 9 (part).)
         Sec. 1103.106.  PURCHASING AND ACCOUNTING PROCEDURES. The
  board may prescribe:
               (1)  the method and manner of making purchases and
  expenditures by and for the district; and
               (2)  all accounting and control procedures. (Acts 59th
  Leg., R.S., Ch. 16, Sec. 9 (part).)
         Sec. 1103.107.  EMINENT DOMAIN. (a)  The district may
  exercise the power of eminent domain to acquire a fee simple or
  other interest in any type of property located in district
  territory if the interest is necessary or convenient 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. (Acts 59th
  Leg., R.S., Ch. 16, Sec. 12.)
         Sec. 1103.108.  GIFTS AND ENDOWMENTS. The board may accept
  for the district a gift or endowment to be held in trust and
  administered by the board for the purposes and under 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 59th Leg., R.S., Ch. 16, Sec.
  15.)
         Sec. 1103.109.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  CARE AND TREATMENT. (a)  The board may contract with a county or
  municipality located outside Swisher County for the care and
  treatment of a sick or injured person of that county or
  municipality.
         (b)  The board may contract with this state or a federal
  agency for the treatment of a sick or injured person for whom this
  state or the federal government is responsible. (Acts 59th Leg.,
  R.S., Ch. 16, Sec. 5 (part).)
         Sec. 1103.110.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  
  When a patient who resides in the district is admitted to a district
  facility, the district administrator shall have an inquiry made
  into the circumstances of:
               (1)  the patient; and
               (2)  the patient's relatives 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 patient or those relatives shall be ordered
  to pay the district a specified amount each week for the patient's
  support. The amount ordered must be proportionate to their
  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 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)  A party to the dispute who is not satisfied with the
  order may appeal to the district court.  The appeal shall be by
  trial de novo as that term is used in an appeal from a justice court
  to the county court.  (Acts 59th Leg., R.S., Ch. 16, Sec. 14.)
         Sec. 1103.111.  AUTHORITY TO SUE AND BE SUED. The district,
  through the board, may sue and be sued. (Acts 59th Leg., R.S., Ch.
  16, Sec. 5 (part).)
  [Sections 1103.112-1103.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 1103.151.  BUDGET. (a) The district administrator
  shall prepare for approval by the board an annual budget that
  corresponds to the district's fiscal year.
         (b)  Not later than August 31 of each year, the board shall
  publish notice of a public hearing on the proposed budget.  The
  notice must be published in a newspaper of general circulation in
  Swisher County at least 10 days before the date of the hearing.
  (Acts 59th Leg., R.S., Ch. 16, Secs. 6 (part), 16.)
         Sec. 1103.152.  FISCAL YEAR. The district shall operate on a
  fiscal year that begins on October 1 and ends on September 30.
  (Acts 59th Leg., R.S., Ch. 16, Sec. 6 (part).)
         Sec. 1103.153.  AUDIT. (a)  The district shall have an audit
  made of the district's financial condition.
         (b)  The audit shall be open to inspection at all times at the
  district's principal office. (Acts 59th Leg., R.S., Ch. 16, Sec. 6
  (part).)
         Sec. 1103.154.  FINANCIAL REPORT. As soon as practicable
  after the close of each fiscal year, the district administrator
  shall prepare for the board:
               (1)  a complete sworn statement of all district money;
  and
               (2)  a complete account of the disbursements of that
  money. (Acts 59th Leg., R.S., Ch. 16, Sec. 6 (part).)
         Sec. 1103.155.  DEPOSITORY. (a)  The board shall designate
  one or more banks in Swisher County 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 the bank from being
  designated as depository. (Acts 59th Leg., R.S., Ch. 16, Sec. 10.)
  [Sections 1103.156-1103.200 reserved for expansion]
  SUBCHAPTER E.  BONDS
         Sec. 1103.201.  GENERAL OBLIGATION BONDS. The board may
  issue and sell general obligation bonds in the name and on the faith
  and credit of the district for any purpose related to the purchase,
  construction, acquisition, repair, or renovation of buildings or
  improvements, and equipping buildings or improvements for a
  hospital and the hospital system, as determined by the board. (Acts
  59th Leg., R.S., Ch. 16, Sec. 7 (part).)
         Sec. 1103.202.  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
  ad valorem tax imposed for the district may not in any year exceed
  75 cents on each $100 valuation of taxable property in the district.
  (Acts 59th Leg., R.S., Ch. 16, Sec. 7 (part).)
         Sec. 1103.203.  GENERAL OBLIGATION BOND ELECTION. (a) The
  district may issue general obligation bonds only if the bonds are
  authorized by a majority of the district voters voting at an
  election held for that purpose.
         (b)  The board shall call the election. The election must be
  held in accordance with Chapter 1251, Government Code.
         (c)  The bond election order must specify:
               (1)  the date of the election;
               (2)  the location of the polling places;
               (3)  the presiding election officers;
               (4)  the amount of the bonds to be authorized;
               (5)  the maximum maturity of the bonds; and
               (6)  the maximum interest rate of the bonds. (Acts 59th
  Leg., R.S., Ch. 16, Sec. 7 (part).)
         Sec. 1103.204.  EXECUTION OF GENERAL OBLIGATION BONDS. The
  board president shall execute the general obligation bonds in the
  district's name and the board secretary shall attest the bonds as
  provided by Chapter 618, Government Code. (Acts 59th Leg., R.S.,
  Ch. 16, Sec. 7 (part).)
         Sec. 1103.205.  REFUNDING BONDS. (a) District refunding
  bonds may, without an election, be issued to refund any bonds issued
  or assumed by the district.
         (b)  A refunding bond may be:
               (1)  sold, with the proceeds of the refunding bond
  applied to the payment of outstanding bonds; or
               (2)  exchanged wholly or partly for not less than a
  similar principal amount of the outstanding bonds. (Acts 59th
  Leg., R.S., Ch. 16, Sec. 7 (part).)
         Sec. 1103.206.  BONDS EXEMPT FROM TAXATION. The following
  are exempt from taxation by this state or a political subdivision of
  this state:
               (1)  any bonds issued by the district;
               (2)  the transfer and issuance of the bonds; and
               (3)  any profits made in the sale of the bonds. (Acts
  59th Leg., R.S., Ch. 16, Sec. 8 (part).)
         Sec. 1103.207.  ANTICIPATION NOTES AND CERTIFICATES OF
  OBLIGATION. The board may issue:
               (1)  anticipation notes under Chapter 1431, Government
  Code; and
               (2)  certificates of obligation under Subchapter C,
  Chapter 271, Local Government Code.  (Acts 59th Leg., R.S., Ch. 16,
  Sec. 7A.)
  [Sections 1103.208-1103.250 reserved for expansion]
  SUBCHAPTER F. GENERAL TAX PROVISIONS
         Sec. 1103.251.  IMPOSITION OF AD VALOREM TAX. (a) The
  district may impose a tax on all taxable property in the district
  subject to district taxation.
         (b)  The tax may be used to meet the requirements of:
               (1)  district bonds;
               (2)  indebtedness assumed by the district; and
               (3)  district maintenance and operating expenses.
  (Acts 59th Leg., R.S., Ch. 16, Secs. 3 (part), 13 (part).)
         Sec. 1103.252.  TAX RATE. The district may impose the tax at
  a rate not to exceed 75 cents on each $100 valuation of taxable
  property in the district. (Acts 59th Leg., R.S., Ch. 16, Sec. 3
  (part).)
         Sec. 1103.253.  TAX ASSESSOR-COLLECTOR. The tax
  assessor-collector of Swisher County shall assess and collect taxes
  imposed by the district. (Acts 59th Leg., R.S., Ch. 16, Sec. 13 (part).)
 
  CHAPTER 1104. TEAGUE HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1104.001.  DEFINITIONS 
  Sec. 1104.002.  AUTHORITY FOR OPERATION 
  Sec. 1104.003.  ESSENTIAL PUBLIC FUNCTION 
  Sec. 1104.004.  DISTRICT TERRITORY 
  Sec. 1104.005.  DISTRICT SUPPORT AND MAINTENANCE NOT
                   STATE OBLIGATION 
  Sec. 1104.006.  RESTRICTION ON STATE FINANCIAL
                   ASSISTANCE 
  [Sections 1104.007-1104.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1104.051.  BOARD ELECTION; TERMS 
  Sec. 1104.052.  NOTICE OF ELECTION 
  Sec. 1104.053.  BALLOT PETITION 
  Sec. 1104.054.  QUALIFICATIONS FOR OFFICE 
  Sec. 1104.055.  BOND 
  Sec. 1104.056.  BOARD VACANCY 
  Sec. 1104.057.  OFFICERS 
  Sec. 1104.058.  COMPENSATION; EXPENSES 
  Sec. 1104.059.  VOTING REQUIREMENT 
  Sec. 1104.060.  DISTRICT ADMINISTRATOR 
  Sec. 1104.061.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1104.062.  ASSISTANT DISTRICT ADMINISTRATOR;
                   ATTORNEY 
  Sec. 1104.063.  APPOINTMENT OF STAFF AND EMPLOYEES 
  Sec. 1104.064.  RETIREMENT BENEFITS 
  [Sections 1104.065-1104.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1104.101.  DISTRICT RESPONSIBILITY 
  Sec. 1104.102.  RESTRICTION ON MUNICIPAL TAXATION AND
                   DEBT 
  Sec. 1104.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
  Sec. 1104.104.  RULES 
  Sec. 1104.105.  PURCHASING AND ACCOUNTING PROCEDURES 
  Sec. 1104.106.  DISTRICT PROPERTY, FACILITIES, AND
                   EQUIPMENT 
  Sec. 1104.107.  EMINENT DOMAIN 
  Sec. 1104.108.  COST OF RELOCATING OR ALTERING PROPERTY 
  Sec. 1104.109.  GIFTS AND ENDOWMENTS 
  Sec. 1104.110.  CONSTRUCTION CONTRACTS 
  Sec. 1104.111.  OPERATING AND MANAGEMENT CONTRACTS 
  Sec. 1104.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR SERVICES 
  Sec. 1104.113.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1104.114.  REIMBURSEMENT FOR SERVICES 
  Sec. 1104.115.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1104.116-1104.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 1104.151.  BUDGET 
  Sec. 1104.152.  NOTICE; HEARING; ADOPTION OF BUDGET 
  Sec. 1104.153.  AMENDMENTS TO BUDGET 
  Sec. 1104.154.  RESTRICTION ON EXPENDITURES 
  Sec. 1104.155.  FISCAL YEAR 
  Sec. 1104.156.  ANNUAL AUDIT 
  Sec. 1104.157.  INSPECTION OF ANNUAL AUDIT AND DISTRICT
                   RECORDS 
  Sec. 1104.158.  FINANCIAL REPORT 
  Sec. 1104.159.  DEPOSITORY 
  Sec. 1104.160.  SPENDING AND INVESTMENT RESTRICTIONS 
  [Sections 1104.161-1104.200 reserved for expansion]
  SUBCHAPTER E. BONDS
  Sec. 1104.201.  GENERAL OBLIGATION BONDS 
  Sec. 1104.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1104.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1104.204.  REVENUE BONDS 
  Sec. 1104.205.  REFUNDING BONDS 
  Sec. 1104.206.  MATURITY OF BONDS 
  Sec. 1104.207.  EXECUTION OF BONDS 
  Sec. 1104.208.  BONDS EXEMPT FROM TAXATION 
  [Sections 1104.209-1104.250 reserved for expansion]
  SUBCHAPTER F. TAXES
  Sec. 1104.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1104.252.  TAX RATE 
  Sec. 1104.253.  ELECTION TO INCREASE MAXIMUM TAX RATE 
  Sec. 1104.254.  TAX ASSESSOR-COLLECTOR 
  [Sections 1104.255-1104.300 reserved for expansion]
  SUBCHAPTER G. DISSOLUTION
  Sec. 1104.301.  DISSOLUTION; ELECTION 
  Sec. 1104.302.  NOTICE OF ELECTION 
  Sec. 1104.303.  BALLOT 
  Sec. 1104.304.  ELECTION RESULTS 
  Sec. 1104.305.  DIRECTORS IN OFFICE AFTER DISSOLUTION 
  Sec. 1104.306.  IMPOSITION OF TAX; TRANSFER OF DEBTS 
  Sec. 1104.307.  DISPOSITION OR TRANSFER OF ASSETS AND
                   DEBTS 
  Sec. 1104.308.  SPENDING RESTRICTIONS 
  Sec. 1104.309.  REPORT; DISSOLUTION ORDER 
  CHAPTER 1104. TEAGUE HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1104.001.  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 Teague Hospital District.
  (Acts 68th Leg., R.S., Ch. 1055, Sec. 1.01.)
         Sec. 1104.002.  AUTHORITY FOR OPERATION. The Teague
  Hospital District operates and is financed as provided by Section
  9, Article IX, Texas Constitution, and by this chapter. (Acts 68th
  Leg., R.S., Ch. 1055, Sec. 1.02.)
         Sec. 1104.003.  ESSENTIAL PUBLIC FUNCTION. The district is
  a public entity performing an essential public function. (Acts
  68th Leg., R.S., Ch. 1055, Sec. 7.11 (part).)
         Sec. 1104.004.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of the Teague
  Independent School District as those boundaries existed on June 19,
  1983.  (Acts 68th Leg., R.S., Ch. 1055, Sec. 1.03.)
         Sec. 1104.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE
  OBLIGATION. This state may not become obligated for the support or
  maintenance of the district. (Acts 68th Leg., R.S., Ch. 1055, Sec.
  10.01 (part).)
         Sec. 1104.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.
  The legislature may not make a direct appropriation for the
  construction, maintenance, or improvement of a district facility.
  (Acts 68th Leg., R.S., Ch. 1055, Sec. 10.01 (part).)
  [Sections 1104.007-1104.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1104.051.  BOARD ELECTION; TERMS. (a) The district is
  governed by a board of seven directors elected from the district at
  large.
         (b)  Directors serve staggered two-year terms unless
  four-year terms are established under Section 285.081, Health and
  Safety Code. (Acts 68th Leg., R.S., Ch. 1055, Secs. 4.01(a),
  4.03(a), (c).)
         Sec. 1104.052.  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 68th Leg., R.S., Ch. 1055, Sec. 4.04.)
         Sec. 1104.053.  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 50 registered voters of the
  district, as determined by the most recent official lists of
  registered voters; and
               (2)  filed by the deadline imposed by Section 144.005,
  Election Code.  (Acts 68th Leg., R.S., Ch. 1055, Sec. 4.05.)
         Sec. 1104.054.  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
  68th Leg., R.S., Ch. 1055, Sec. 4.06.)
         Sec. 1104.055.  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 68th Leg., R.S., Ch. 1055, Sec. 4.07.)
         Sec. 1104.056.  BOARD VACANCY. If a vacancy occurs in the
  office of director, the remaining directors shall appoint a
  director for the unexpired term. (Acts 68th Leg., R.S., Ch. 1055,
  Sec. 4.08.)
         Sec. 1104.057.  OFFICERS. (a) The board shall elect from
  among its members a president, a vice president, and a secretary.
         (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 68th Leg., R.S., Ch. 1055, Secs. 4.09, 4.10.)
         Sec. 1104.058.  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 68th Leg., R.S., Ch.
  1055, Sec. 4.11.)
         Sec. 1104.059.  VOTING REQUIREMENT. A concurrence of a
  majority of the directors voting is necessary in any matter
  relating to district business. (Acts 68th Leg., R.S., Ch. 1055,
  Sec. 4.12.)
         Sec. 1104.060.  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 68th Leg., R.S., Ch. 1055, Secs. 4.13(a) (part), (b) (part),
  (c) (part), (d).)
         Sec. 1104.061.  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
  68th Leg., R.S., Ch. 1055, Sec. 4.16.)
         Sec. 1104.062.  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 68th Leg., R.S., Ch.
  1055, Secs. 4.13(a) (part), (b) (part), (c) (part).)
         Sec. 1104.063.  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 68th Leg.,
  R.S., Ch. 1055, Secs. 4.14, 4.15.)
         Sec. 1104.064.  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 68th Leg., R.S., Ch.
  1055, Sec. 4.17.)
  [Sections 1104.065-1104.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1104.101.  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 68th Leg., R.S., Ch. 1055, Sec. 5.02 (part).)
         Sec. 1104.102.  RESTRICTION ON MUNICIPAL TAXATION AND DEBT.
  The City of Teague may not impose a tax or issue bonds or other
  obligations for hospital purposes or to provide medical care for
  district residents. (Acts 68th Leg., R.S., Ch. 1055, Sec.
  5.01(b).)
         Sec. 1104.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.
  The board shall manage, control, and administer the hospital system
  and the district's money and resources. (Acts 68th Leg., R.S., Ch.
  1055, Sec. 5.03.)
         Sec. 1104.104.  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 68th Leg., R.S., Ch. 1055, Sec.
  5.04.)
         Sec. 1104.105.  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 68th Leg., R.S., Ch. 1055, Sec. 5.05.)
         Sec. 1104.106.  DISTRICT PROPERTY, FACILITIES, AND
  EQUIPMENT. (a) The board shall determine:
               (1)  the type, number, and location of buildings
  required to maintain an adequate hospital system; and
               (2)  the type of equipment necessary for hospital care.
         (b)  The board may:
               (1)  acquire property, including facilities and
  equipment, for the district for use in the hospital system; and
               (2)  mortgage or pledge the property as security for
  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 68th
  Leg., R.S., Ch. 1055, Sec. 5.06.)
         Sec. 1104.107.  EMINENT DOMAIN. (a) The district may
  exercise the power of eminent domain to acquire a fee simple or
  other interest in property located in district territory if the
  interest is necessary to exercise a right or authority conferred by
  this chapter.
         (b)  The district must exercise the power of eminent domain
  in the manner provided by Chapter 21, Property Code, except the
  district is not required to deposit in the trial court money or a
  bond as provided by Section 21.021(a), Property Code.
         (c)  In a condemnation proceeding brought by the district,
  the district is not required to:
               (1)  pay in advance or provide a bond or other security
  for costs in the trial court;
               (2)  provide a bond for the issuance of a temporary
  restraining order or a temporary injunction; or
               (3)  provide a bond for costs or a supersedeas bond on
  an appeal or petition for review. (Acts 68th Leg., R.S., Ch. 1055,
  Sec. 5.09.)
         Sec. 1104.108.  COST OF RELOCATING OR ALTERING PROPERTY. In
  exercising the power of eminent domain, if the board requires
  relocating, raising, lowering, rerouting, changing the grade, or
  altering the construction of any railroad, highway, pipeline, or
  electric transmission, 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 68th Leg., R.S., Ch.
  1055, Sec. 5.10.)
         Sec. 1104.109.  GIFTS AND ENDOWMENTS. The board may accept
  for the district a gift or endowment to be held in trust for any
  purpose and under any direction, limitation, or other provision
  prescribed in writing by the donor that is consistent with the
  proper management of the district. (Acts 68th Leg., R.S., Ch. 1055,
  Sec. 5.14.)
         Sec. 1104.110.  CONSTRUCTION CONTRACTS. (a) The board may
  enter into construction contracts for the district.
         (b)  The board may enter into a construction contract that
  involves the expenditure of more than the amount provided by
  Section 271.024, Local Government Code, only after competitive
  bidding as provided by Subchapter B, Chapter 271, Local Government
  Code. (Acts 68th Leg., R.S., Ch. 1055, Sec. 5.07(a).)
         Sec. 1104.111.  OPERATING AND MANAGEMENT CONTRACTS. The
  board may enter into an operating or management contract relating
  to a hospital facility for the district. (Acts 68th Leg., R.S., Ch.
  1055, Sec. 5.08.)
         Sec. 1104.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  SERVICES. The board may contract with a political subdivision of
  this state or with a state or federal agency for the district to:
               (1)  furnish a mobile emergency medical service; or
               (2)  provide for the investigatory or welfare needs of
  district inhabitants. (Acts 68th Leg., R.S., Ch. 1055, Sec. 5.13.)
         Sec. 1104.113.  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 a relative of the
  patient legally responsible for the patient's support cannot pay
  for care and treatment provided by the district, the district shall
  supply the care and treatment without charging the patient or the
  patient's relative.
         (c)  On determining that the patient or a relative legally
  responsible for the patient's support can pay for all or part of the
  care and treatment provided by the district, the district
  administrator shall report that determination to the board, and the
  board shall issue an order directing the patient or the relative to
  pay the district a specified amount each week. The amount must be
  based on the individual's ability to pay.
         (d)  The district administrator may collect money owed to the
  district from the patient's estate or from that of a relative
  legally responsible for the patient's support in the manner
  provided by law for the collection of expenses in the last illness
  of a deceased person.
         (e)  If there is a dispute relating to an individual's
  ability to pay or if the district administrator has any doubt
  concerning an individual's ability to pay, the board shall:
               (1)  call witnesses;
               (2)  hear and resolve the question; and
               (3)  issue a final order.
         (f)  The final order of the board may be appealed to a
  district court in the county in which the district is located. The
  substantial evidence rule applies to the appeal. (Acts 68th Leg.,
  R.S., Ch. 1055, Sec. 5.11.)
         Sec. 1104.114.  REIMBURSEMENT FOR SERVICES. (a) The board
  shall require a county or municipality located outside the district
  to reimburse the district for the district's care and treatment of a
  sick or injured person of that county or municipality.
         (b)  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 68th
  Leg., R.S., Ch. 1055, Sec. 5.12.)
         Sec. 1104.115.  AUTHORITY TO SUE AND BE SUED.  The board may
  sue and be sued on behalf of the district. (Acts 68th Leg., R.S.,
  Ch. 1055, Sec. 5.15.)
  [Sections 1104.116-1104.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 1104.151.  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 68th Leg.,
  R.S., Ch. 1055, Sec. 6.04.)
         Sec. 1104.152.  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 68th Leg., R.S., Ch. 1055, Sec. 6.05.)
         Sec. 1104.153.  AMENDMENTS TO BUDGET. After the annual
  budget is adopted, the budget may be amended on the board's
  approval. (Acts 68th Leg., R.S., Ch. 1055, Sec. 6.06.)
         Sec. 1104.154.  RESTRICTION ON EXPENDITURES. Money may be
  spent only for an expense included in the annual budget or an
  amendment to the budget. (Acts 68th Leg., R.S., Ch. 1055, Sec.
  6.07.)
         Sec. 1104.155.  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 68th
  Leg., R.S., Ch. 1055, Sec. 6.01.)
         Sec. 1104.156.  ANNUAL AUDIT. The board annually shall have
  an audit made of the district's financial condition. (Acts 68th
  Leg., R.S., Ch. 1055, Sec. 6.02.)
         Sec. 1104.157.  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 68th Leg., R.S., Ch. 1055, Sec. 6.03.)
         Sec. 1104.158.  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 68th Leg., R.S., Ch. 1055, Sec. 6.08.)
         Sec. 1104.159.  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 1104.160(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 68th
  Leg., R.S., Ch. 1055, Secs. 6.10(a), (b).)
         Sec. 1104.160.  SPENDING AND INVESTMENT RESTRICTIONS. (a)
  Except as provided by Sections 1104.110, 1104.201, 1104.204, and
  1104.205, 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 68th Leg., R.S., Ch. 1055, Sec. 6.09.)
  [Sections 1104.161-1104.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 1104.201.  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; or
               (2)  equip buildings or improvements for hospital
  purposes.  (Acts 68th Leg., R.S., Ch. 1055, Sec. 7.01.)
         Sec. 1104.202.  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 68th Leg., R.S., Ch. 1055, Sec. 7.02.)
         Sec. 1104.203.  GENERAL OBLIGATION BOND ELECTION. (a) The
  district may issue general obligation bonds only if the bonds are
  authorized by a majority of the district voters.
         (b)  The board may order a bond election.
         (c)  The order calling the election must specify:
               (1)  the nature and date of the election;
               (2)  the hours during which the polls will be open;
               (3)  the location of the polling places;
               (4)  the amount of the bonds to be authorized; and
               (5)  the maximum maturity of the bonds.
         (d)  Notice of a bond election shall be given as provided by
  Section 1251.003, Government Code.
         (e)  The board shall declare the results of the election.
  (Acts 68th Leg., R.S., Ch. 1055, Sec. 7.03.)
         Sec. 1104.204.  REVENUE BONDS. (a) The board may issue
  revenue bonds to:
               (1)  purchase, construct, acquire, repair, equip, or
  renovate buildings or improvements for hospital purposes; or
               (2)  acquire sites to be used for hospital purposes.
         (b)  The bonds must be payable from and secured by a pledge of
  all or part of the revenue derived from the operation of the
  district's hospital system.
         (c)  The bonds may be additionally secured by a mortgage or
  deed of trust lien on all or part of district property.
         (d)  The bonds must be issued in the manner provided by
  Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
  Health and Safety Code, for issuance of revenue bonds by a county
  hospital authority. (Acts 68th Leg., R.S., Ch. 1055, Sec. 7.04.)
         Sec. 1104.205.  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 68th
  Leg., R.S., Ch. 1055, Secs. 7.05(a), (c) (part).)
         Sec. 1104.206.  MATURITY OF BONDS. District bonds must
  mature not later than 50 years after the date of issuance. (Acts
  68th Leg., R.S., Ch. 1055, Sec. 7.06 (part).)
         Sec. 1104.207.  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 68th Leg., R.S., Ch. 1055,
  Sec. 7.07.)
         Sec. 1104.208.  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 68th
  Leg., R.S., Ch. 1055, Sec. 7.11 (part).)
  [Sections 1104.209-1104.250 reserved for expansion]
  SUBCHAPTER F. TAXES
         Sec. 1104.251.  IMPOSITION OF AD VALOREM TAX. (a) The board
  shall impose a tax on all property in the district subject to
  district taxation.
         (b)  The tax may be used to pay:
               (1)  the general obligation bonds issued and the
  indebtedness 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 68th
  Leg., R.S., Ch. 1055, Secs. 8.01(a) (part), (c), (d), 8.02(b).)
         Sec. 1104.252.  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
  1104.253, the tax rate for all purposes may not exceed five 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 68th
  Leg., R.S., Ch. 1055, Secs. 8.01(a) (part), (b), 8.03 (part).)
         Sec. 1104.253.  ELECTION TO INCREASE MAXIMUM TAX RATE. (a)
  The board may order an election to increase the district's maximum
  tax rate to 12 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 registered 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
  12 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 68th Leg., R.S., Ch.
  1055, Secs. 8.01A(a), (b) (part), (c) (part), (d) (part).)
         Sec. 1104.254.  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 68th Leg., R.S., Ch. 1055, Sec.
  8.04(b).)
  [Sections 1104.255-1104.300 reserved for expansion]
  SUBCHAPTER G. DISSOLUTION
         Sec. 1104.301.  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)  A majority of the board may order that a dissolution
  election be held.
         (c)  If the board receives a petition requesting an election
  that is signed by at least 10 percent of the registered voters of
  the district, according to the most recent official list of
  registered voters, the board shall order an election to be held.  
  The election shall be called not later than the 60th day after the
  date the petition is presented to the district.
         (d)  The order calling the election must state:
               (1)  the nature of the election, including the
  proposition to appear on the ballot;
               (2)  the date of the election;
               (3)  the hours during which the polls will be open; and
               (4)  the location of the polling places.
         (e)  Section 41.001(a), Election Code, does not apply to an
  election ordered under this section. (Acts 68th Leg., R.S., Ch.
  1055, Secs. 9.01, 9.02, 9.03, 9.05(b).)
         Sec. 1104.302.  NOTICE OF ELECTION. (a) The board shall
  give notice of an election under this subchapter by publishing once
  a week for two consecutive weeks a substantial copy of the election
  order in a newspaper with general circulation in the district.
         (b)  The first publication must appear at least 35 days
  before the date set for the election. (Acts 68th Leg., R.S., Ch.
  1055, Sec. 9.04.)
         Sec. 1104.303.  BALLOT. The ballot for an election under
  this subchapter must be printed to permit voting for or against the
  proposition: "The dissolution of the Teague Hospital District."
  (Acts 68th Leg., R.S., Ch. 1055, Sec. 9.06.)
         Sec. 1104.304.  ELECTION RESULTS. (a) If the board finds
  that the election results favor the proposition to dissolve the
  district, the board shall:
               (1)  issue an order declaring the district be
  dissolved; and
               (2)  specify in the order the date the dissolution
  takes effect.
         (b)  If the board finds that the election results do not
  favor the proposition to dissolve the district, another dissolution
  election may not be held before the first anniversary of the date of
  the election at which the voters disapproved the proposition.
  (Acts 68th Leg., R.S., Ch. 1055, Secs. 9.07(b), (c).)
         Sec. 1104.305.  DIRECTORS IN OFFICE AFTER DISSOLUTION. The
  directors in office on the date of the dissolution shall continue in
  office, without further election, until:
               (1)  the affairs of the district are effectively
  concluded; and
               (2)  all duties or acts required of the board are
  completed. (Acts 68th Leg., R.S., Ch. 1055, Sec. 9.08(c).)
         Sec. 1104.306.  IMPOSITION OF TAX; TRANSFER OF DEBTS. After
  issuing the dissolution order, the board shall determine the debt
  owed by the district and shall:
               (1)  impose on property subject to taxation in the
  district a tax in proportion of the debt to the property value and
  use the tax revenue to pay the district's bonds or satisfy other
  district debts; or
               (2)  transfer the district's debts to any governmental
  entity assuming responsibility after dissolution of the district
  for providing hospital care in the territory included in the
  district. (Acts 68th Leg., R.S., Ch. 1055, Sec. 9.08(a).)
         Sec. 1104.307.  DISPOSITION OR TRANSFER OF ASSETS AND DEBTS.
  (a) The board may not dispose of or transfer the district's assets
  except for due compensation unless:
               (1)  the debts are transferred to another governmental
  entity embracing the district; and
               (2)  the transferred assets are used for the benefit of
  citizens formerly in the district.
         (b)  If the board transfers the district's debts to another
  governmental entity, the board shall also transfer to that
  governmental entity:
               (1)  title to land, buildings, improvements, and
  equipment related to the hospital system owned by the district; and
               (2)  operating money and reserves for operating
  expenses and money budgeted by the district to provide medical care
  for district residents for the remainder of the fiscal year in which
  the district is dissolved. (Acts 68th Leg., R.S., Ch. 1055, Secs.
  9.08(b), (d) (part).)
         Sec. 1104.308.  SPENDING RESTRICTIONS. After the effective
  date of the district's dissolution, the board may not spend any
  money except as authorized together with all reasonable dissolution
  expenses and the district's legal debts incurred before that date.
  (Acts 68th Leg., R.S., Ch. 1055, Sec. 9.08(d) (part).)
         Sec. 1104.309.  REPORT; DISSOLUTION ORDER. (a) After the
  district has paid all district debts and has disposed of all
  district money and other assets as prescribed by this subchapter,
  the board shall file a written report with the Commissioners Court
  of Freestone County summarizing the board's actions in dissolving
  the district. The report must include a summary of the district's
  debts.
         (b)  Not later than the 10th day after the date the
  Commissioners Court of Freestone County receives the report, the
  commissioners court shall:
               (1)  determine whether the board has fulfilled the
  requirements of this subchapter; and
               (2)  if the commissioners court determines the board
  has fulfilled its duties, enter an order to that effect.
         (c)  On entry of an order under Subsection (b)(2), the
  directors are discharged from liability under their bonds. (Acts
  68th Leg., R.S., Ch. 1055, Sec. 9.08(e).)
  CHAPTER 1105.  TERRY MEMORIAL HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1105.001.  DEFINITIONS 
  Sec. 1105.002.  AUTHORITY FOR CREATION 
  Sec. 1105.003.  ESSENTIAL PUBLIC FUNCTION 
  Sec. 1105.004.  DISTRICT TERRITORY 
  Sec. 1105.005.  DISTRICT SUPPORT AND MAINTENANCE NOT
                   STATE OBLIGATION 
  Sec. 1105.006.  RESTRICTION ON STATE FINANCIAL
                   ASSISTANCE 
  [Sections 1105.007-1105.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1105.051.  BOARD ELECTION; TERM 
  Sec. 1105.052.  NOTICE OF ELECTION 
  Sec. 1105.053.  BALLOT PETITION 
  Sec. 1105.054.  QUALIFICATIONS FOR OFFICE 
  Sec. 1105.055.  FILING OF OATH 
  Sec. 1105.056.  BOARD VACANCY 
  Sec. 1105.057.  OFFICERS 
  Sec. 1105.058.  COMPENSATION 
  Sec. 1105.059.  VOTING REQUIREMENT 
  Sec. 1105.060.  DISTRICT ADMINISTRATOR; ASSISTANT
                   ADMINISTRATOR 
  Sec. 1105.061.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1105.062.  EMPLOYEES 
  Sec. 1105.063.  RECRUITMENT OF MEDICAL STAFF 
  Sec. 1105.064.  CONTINUING EDUCATION; RETRAINING 
  Sec. 1105.065.  RETIREMENT PROGRAM 
  Sec. 1105.066.  MAINTENANCE OF RECORDS; PUBLIC
                   INSPECTION 
  [Sections 1105.067-1105.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1105.101.  DISTRICT RESPONSIBILITY 
  Sec. 1105.102.  RESTRICTION ON COUNTY OR MUNICIPAL
                   TAXATION AND DEBT 
  Sec. 1105.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
  Sec. 1105.104.  HOSPITAL SYSTEM 
  Sec. 1105.105.  RULES 
  Sec. 1105.106.  PURCHASING AND ACCOUNTING PROCEDURES 
  Sec. 1105.107.  RATES AND CHARGES 
  Sec. 1105.108.  EMINENT DOMAIN 
  Sec. 1105.109.  GIFTS AND ENDOWMENTS 
  Sec. 1105.110.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR CARE AND TREATMENT 
  Sec. 1105.111.  DISPOSITION OF REAL PROPERTY 
  Sec. 1105.112.  PROVISION OF CERTAIN HEALTH CARE
                   SERVICES 
  Sec. 1105.113.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1105.114.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1105.115-1105.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
  Sec. 1105.151.  BUDGET 
  Sec. 1105.152.  FISCAL YEAR 
  Sec. 1105.153.  AUDIT 
  Sec. 1105.154.  FINANCIAL REPORT 
  Sec. 1105.155.  DEPOSITORY 
  Sec. 1105.156.  AUTHORITY TO BORROW MONEY; SECURITY 
  [Sections 1105.157-1105.200 reserved for expansion]
  SUBCHAPTER E.  BONDS
  Sec. 1105.201.  GENERAL OBLIGATION BONDS 
  Sec. 1105.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1105.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1105.204.  EXECUTION OF GENERAL OBLIGATION BONDS 
  Sec. 1105.205.  REFUNDING BONDS 
  Sec. 1105.206.  BONDS EXEMPT FROM TAXATION 
  [Sections 1105.207-1105.250 reserved for expansion]
  SUBCHAPTER F. TAXES
  Sec. 1105.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1105.252.  TAX RATE 
  Sec. 1105.253.  TAX ASSESSOR-COLLECTOR 
  CHAPTER 1105.  TERRY MEMORIAL HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1105.001.  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 Terry Memorial Hospital
  District. (New.)
         Sec. 1105.002.  AUTHORITY FOR CREATION. The Terry Memorial
  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 59th Leg., R.S., Ch. 653,
  Sec. 1 (part).)
         Sec. 1105.003.  ESSENTIAL PUBLIC FUNCTION. The district
  performs an essential public function in carrying out the purposes
  of this chapter. (Acts 59th Leg., R.S., Ch. 653, Sec. 8 (part).)
         Sec. 1105.004.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of Terry County,
  Texas. (Acts 59th Leg., R.S., Ch. 653, Sec. 1 (part).)
         Sec. 1105.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE
  OBLIGATION.  The support and maintenance of the district may not
  become a charge against or obligation of this state. (Acts 59th
  Leg., R.S., Ch. 653, Sec. 18 (part).)
         Sec. 1105.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.
  The legislature may not make a direct appropriation for the
  construction, maintenance, or improvement of a district facility.
  (Acts 59th Leg., R.S., Ch. 653, Sec. 18 (part).)
  [Sections 1105.007-1105.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1105.051.  BOARD ELECTION; TERM. (a) The district is
  governed by a board of seven directors elected from the district at
  large.
         (b)  Unless four-year terms are established under Section
  285.081, Health and Safety Code:
               (1)  directors serve staggered two-year terms with the
  terms of three or four directors expiring each year as appropriate;
  and
               (2)  a directors' election shall be held annually on the
  May uniform election date.  (Acts 59th Leg., R.S., Ch. 653, Sec. 4
  (part).)  
         Sec. 1105.052.  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 Terry
  County. (Acts 59th Leg., R.S., Ch. 653, Sec. 4 (part).)
         Sec. 1105.053.  BALLOT PETITION. A person who wants to have
  the person's name printed on the ballot as a candidate for director
  must file a petition requesting that action. The petition must be:
               (1)  signed by not fewer than 10 registered voters; and
               (2)  filed by the deadline imposed by Section 144.005,
  Election Code. (Acts 59th Leg., R.S., Ch. 653, Sec. 4 (part).)
         Sec. 1105.054.  QUALIFICATIONS FOR OFFICE. A person must at
  the time of election or appointment as director be:
               (1)  registered to vote in the district; and
               (2)  at least 18 years of age.  (Acts 59th Leg., R.S.,
  Ch. 653, Sec. 4 (part).)
         Sec. 1105.055.  FILING OF OATH.  The constitutional oath of
  office executed by a director must be filed in the district's
  office.  (Acts 59th Leg., R.S., Ch. 653, Sec. 4 (part).)
         Sec. 1105.056.  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, the county judge of Terry County may fill
  the vacancies by appointment.  (Acts 59th Leg., R.S., Ch. 653, Sec.
  4 (part).)
         Sec. 1105.057.  OFFICERS. The board shall elect from among
  its members a president, a vice president, and a secretary. (Acts
  59th Leg., R.S., Ch. 653, Sec. 4 (part).)
         Sec. 1105.058.  COMPENSATION.  A director is entitled to
  compensation at a rate determined by the board. The rate may not
  exceed $10 for each board meeting.  (Acts 59th Leg., R.S., Ch. 653,
  Sec. 4 (part).)
         Sec. 1105.059.  VOTING REQUIREMENT.  A concurrence of four
  directors is sufficient in any matter relating to district
  business.  (Acts 59th Leg., R.S., Ch. 653, Sec. 4 (part).)
         Sec. 1105.060.  DISTRICT ADMINISTRATOR; ASSISTANT
  ADMINISTRATOR. (a) The board shall appoint a qualified person as
  district administrator.
         (b)  The board may appoint an assistant administrator.
         (c)  The district administrator and any assistant
  administrator serve at the will of the board and 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 $10,000 that:
               (1)  is conditioned on the administrator performing the
  administrator's duties; and
               (2)  contains any other condition the board requires.
  (Acts 59th Leg., R.S., Ch. 653, Sec. 5 (part).)
         Sec. 1105.061.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.  
  Subject to any limitations prescribed by the board, the district
  administrator shall:
               (1)  supervise the work and activities of the district;
  and
               (2)  direct the affairs of the district. (Acts 59th
  Leg., R.S., Ch. 653, Sec. 5 (part).)
         Sec. 1105.062.  EMPLOYEES.  The board may employ any nurses,
  technicians, and other lay personnel considered necessary for the
  efficient operation of the district or may provide that the
  district administrator has the authority to employ those persons.  
  (Acts 59th Leg., R.S., Ch. 653, Sec. 5 (part).)
         Sec. 1105.063.  RECRUITMENT OF MEDICAL STAFF. (a)  The board
  may spend district money to recruit physicians, nurses, or other
  trained medical personnel.
         (b)  The board may:
               (1)  contract with a full-time medical or nursing
  student who is enrolled and in good standing in an accredited
  school, college, or university; and
               (2)  agree to pay the student's tuition or other costs
  or expenses if the student agrees to serve in the district on terms
  prescribed by the contract.  (Acts 59th Leg., R.S., Ch. 653, Secs.
  5B(a), (b).)
         Sec. 1105.064.  CONTINUING EDUCATION; RETRAINING.  The board
  may spend district money for continuing education and retraining of
  employees. (Acts 59th Leg., R.S., Ch. 653, Sec. 5B(c).)
         Sec. 1105.065.  RETIREMENT PROGRAM. The board may enter
  into any contract or agreement with this state or the federal
  government that is required to establish or continue a retirement
  program for the benefit of the district's employees. (Acts 59th
  Leg., R.S., Ch. 653, Sec. 5 (part).)
         Sec. 1105.066.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.  
  (a)  The board shall:
               (1)  keep an accurate account of all board meetings and
  proceedings; and
               (2)  maintain at the district's principal office all
  district records and accounts, including all contracts, notices,
  duplicate vouchers, and duplicate receipts.
         (b)  The information described by Subsection (a) shall be
  open to public inspection at the district's principal office at all
  reasonable times.  (Acts 59th Leg., R.S., Ch. 653, Sec. 4 (part).)
  [Sections 1105.067-1105.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1105.101.  DISTRICT RESPONSIBILITY.  The district has
  full responsibility for:
               (1)  operating all hospital facilities for providing
  medical and hospital care of indigent persons; and
               (2)  providing medical and hospital care for the
  district's needy inhabitants. (Acts 59th Leg., R.S., Ch. 653,
  Secs. 2 (part), 17 (part).)
         Sec. 1105.102.  RESTRICTION ON COUNTY OR MUNICIPAL TAXATION
  AND DEBT. Terry County or a municipality in Terry County may not
  impose a tax or issue bonds or other obligations for hospital
  purposes or for medical care. (Acts 59th Leg., R.S., Ch. 653, Sec.
  17 (part).)
         Sec. 1105.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  
  The board shall manage, control, and administer the district's
  hospitals and hospital system. (Acts 59th Leg., R.S., Ch. 653, Sec.
  5 (part).)
         Sec. 1105.104.  HOSPITAL SYSTEM. The district shall provide
  for:
               (1)  the establishment of a hospital system by:
                     (A)  purchasing, constructing, acquiring,
  repairing, or renovating buildings and equipment; and
                     (B)  equipping the buildings; and
               (2)  the administration of the hospital system for
  hospital purposes. (Acts 59th Leg., R.S., Ch. 653, Sec. 2 (part).)
         Sec. 1105.105.  RULES.  The board may adopt rules for the
  operation of the district and as required to administer this
  chapter. (Acts 59th Leg., R.S., Ch. 653, Secs. 5 (part), 9 (part).)
         Sec. 1105.106.  PURCHASING AND ACCOUNTING PROCEDURES.  The
  board may prescribe:
               (1)  the method and manner of making purchases and
  expenditures by and for the district; and
               (2)  all accounting and control procedures. (Acts 59th
  Leg., R.S., Ch. 653, Sec. 9 (part).)
         Sec. 1105.107.  RATES AND CHARGES.  The board shall
  establish the rates and charges for:
               (1)  services;
               (2)  supplies; and
               (3)  the use of district facilities.  (Acts 59th Leg.,
  R.S., Ch. 653, Sec. 14 (part).)
         Sec. 1105.108.  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. (Acts 59th
  Leg., R.S., Ch. 653, Sec. 12.)
         Sec. 1105.109.  GIFTS AND ENDOWMENTS.  The board may accept
  for the district a gift or endowment to be held in trust and
  administered by the board for the purposes and under the
  directions, limitations, or other provisions prescribed in writing
  by the donor that are not inconsistent with the proper management
  and objectives of the district. (Acts 59th Leg., R.S., Ch. 653,
  Sec. 15.)
         Sec. 1105.110.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  CARE AND TREATMENT.  (a)  The board may contract with a county or
  municipality located outside Terry County for the care and
  treatment of a sick or injured person of that county or
  municipality.
         (b)  The board may contract with this state or a federal
  agency for the treatment of a sick or injured person for whom this
  state or the federal government is responsible. (Acts 59th Leg.,
  R.S., Ch. 653, Sec. 5 (part).)
         Sec. 1105.111.  DISPOSITION OF REAL PROPERTY.  The district
  may sell or otherwise dispose of real property on terms the board
  finds are in the best interest of the district.  (Acts 59th Leg.,
  R.S., Ch. 653, Sec. 5A.)
         Sec. 1105.112.  PROVISION OF CERTAIN HEALTH CARE SERVICES.
  The district may provide any appropriate health care services the
  board determines are necessary to meet the needs of the district,
  including:
               (1)  emergency medical services;
               (2)  home health care services;
               (3)  long-term care services;
               (4)  rehabilitation services; and
               (5)  fitness services. (Acts 59th Leg., R.S., Ch. 653,
  Sec. 2A.)
         Sec. 1105.113.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  
  When an indigent patient 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 can pay for all or part of the patient's
  care and treatment, the patient or those relatives shall be ordered
  to pay the district a specified amount each week for the patient's
  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 administrator may collect the amount from
  the patient's estate, or from those relatives, 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)  A party to the dispute who is not satisfied with the
  order may appeal to the district court.  The appeal shall be by
  trial de novo as that term is used in an appeal from a justice court
  to the county court. (Acts 59th Leg., R.S., Ch. 653, Sec. 14
  (part).)
         Sec. 1105.114.  AUTHORITY TO SUE AND BE SUED.  The district,
  through the board, may sue and be sued. (Acts 59th Leg., R.S., Ch.
  653, Sec. 5 (part).)
  [Sections 1105.115-1105.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 1105.151.  BUDGET. (a) The district administrator
  shall prepare for approval by the board an annual budget that
  corresponds to the district's fiscal year.
         (b)  Not later than August 31 of each year, the board shall
  publish notice of a public hearing on the proposed budget.  The
  notice must be published in a newspaper of general circulation in
  Terry County at least 10 days before the date of the hearing. (Acts
  59th Leg., R.S., Ch. 653, Secs. 6 (part), 16.)
         Sec. 1105.152.  FISCAL YEAR.  The district shall operate on a
  fiscal year that begins on October 1 and ends on September 30.
  (Acts 59th Leg., R.S., Ch. 653, Sec. 6 (part).)
         Sec. 1105.153.  AUDIT.  (a)  The district shall have an audit
  made of the district's financial condition.
         (b)  The audit shall be open to inspection at all times at the
  district's principal office. (Acts 59th Leg., R.S., Ch. 653, Sec. 6
  (part).)
         Sec. 1105.154.  FINANCIAL REPORT.  As soon as practicable
  after the close of each fiscal year, the district administrator
  shall prepare for the board:
               (1)  a complete sworn statement of all district money;
  and
               (2)  a complete account of the disbursements of that
  money. (Acts 59th Leg., R.S., Ch. 653, Sec. 6 (part).)
         Sec. 1105.155.  DEPOSITORY.  (a)  The board shall designate
  one or more banks in Terry County 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 the bank from being
  designated as depository. (Acts 59th Leg., R.S., Ch. 653, Sec. 10.)
         Sec. 1105.156.  AUTHORITY TO BORROW MONEY; SECURITY.  (a)
  The board may borrow money at a rate not to exceed the maximum
  annual percentage rate allowed by law for district obligations at
  the time the loan is made if the board declares that:
               (1)  money is not available to meet authorized
  obligations of the district; and
               (2)  an emergency exists.
         (b)  To secure a loan, the board may pledge:
               (1)  district revenue that is not pledged to pay the
  district's bonded indebtedness;
               (2)  a district tax to be imposed by the district in the
  next 12-month period that is not pledged to pay the principal of or
  interest on district bonds; or
               (3)  a district bond that has been authorized but not
  sold.
         (c)  A loan for which taxes or bonds are pledged must mature
  not later than the first anniversary of the date the loan is made. A
  loan for which district revenue is pledged must mature not later
  than the fifth anniversary of the date the loan is made.
         (d)  The board may not spend money obtained from a loan under
  this section for any purpose other than:
               (1)  the purpose for which the board declared an
  emergency; and
               (2)  if district taxes or bonds are pledged to pay the
  loan, the purposes for which the taxes were imposed or the bonds
  were authorized.  (Acts 59th Leg., R.S., Ch. 653, Sec. 8A.)
  [Sections 1105.157-1105.200 reserved for expansion]
  SUBCHAPTER E.  BONDS
         Sec. 1105.201.  GENERAL OBLIGATION BONDS. The board may
  issue and sell general obligation bonds in the name and on the faith
  and credit of the district for any purpose related to the purchase,
  construction, acquisition, repair, or renovation of buildings or
  improvements, and equipping buildings or improvements for a
  hospital and the hospital system, as determined by the board.  (Acts
  59th Leg., R.S., Ch. 653, Sec. 7 (part).)
         Sec. 1105.202.  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
  ad valorem tax imposed for the district may not in any year exceed
  75 cents on each $100 valuation of taxable property. (Acts 59th
  Leg., R.S., Ch. 653, Sec. 7 (part).)
         Sec. 1105.203.  GENERAL OBLIGATION BOND ELECTION. (a) The
  district may issue general obligation bonds only if the bonds are
  authorized by a majority of the district voters voting at an
  election held for that purpose.
         (b)  The board shall call the election. The election must be
  held in accordance with Chapter 1251, Government Code.
         (c)  The bond election order must specify:
               (1)  the date of the election;
               (2)  the location of the polling places;
               (3)  the presiding election officers;
               (4)  the amount of the bonds to be authorized;
               (5)  the maximum maturity of the bonds; and
               (6)  the maximum interest rate of the bonds. (Acts 59th
  Leg., R.S., Ch. 653, Sec. 7 (part).)
         Sec. 1105.204.  EXECUTION OF GENERAL OBLIGATION BONDS. The
  board president shall execute the general obligation bonds in the
  district's name and the board secretary shall attest the bonds as
  provided by Chapter 618, Government Code. (Acts 59th Leg., R.S.,
  Ch. 653, Sec. 7 (part).)
         Sec. 1105.205.  REFUNDING BONDS. (a) District bonds may be
  issued without an election to refund any bonds issued or assumed by
  the district.
         (b)  A refunding bond may be:
               (1)  sold, with the proceeds of the refunding bond
  applied to the payment of outstanding bonds; or
               (2)  exchanged wholly or partly for not less than a
  similar principal amount of the outstanding bonds. (Acts 59th
  Leg., R.S., Ch. 653, Sec. 7 (part).)
         Sec. 1105.206.  BONDS EXEMPT FROM TAXATION. The following
  are exempt from taxation by this state or a political subdivision of
  this state:
               (1)  any bonds issued by the district;
               (2)  the transfer of the bonds; and
               (3)  bond revenue, including any profits made in the
  sale of the bonds. (Acts 59th Leg., R.S., Ch. 653, Sec. 8 (part).)
  [Sections 1105.207-1105.250 reserved for expansion]
  SUBCHAPTER F. TAXES
         Sec. 1105.251.  IMPOSITION OF AD VALOREM TAX. (a) The
  district may impose a tax on all taxable property in the district
  subject to district taxation.
         (b)  The tax may be used to meet the requirements of:
               (1)  district bonds;
               (2)  indebtedness assumed by the district; and
               (3)  district maintenance and operating expenses.
  (Acts 59th Leg., R.S., Ch. 653, Secs. 3 (part), 13 (part).)
         Sec. 1105.252.  TAX RATE. The district may impose the tax at
  a rate not to exceed 75 cents on each $100 valuation of taxable
  property in the district. (Acts 59th Leg., R.S., Ch. 653, Sec. 3
  (part).)
         Sec. 1105.253.  TAX ASSESSOR-COLLECTOR. The tax
  assessor-collector of Terry County shall assess and collect taxes
  imposed by the district. (Acts 59th Leg., R.S., Ch. 653, Sec. 13
  (part).)
  CHAPTER 1106.  TEXHOMA MEMORIAL HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1106.001.  DEFINITIONS 
  Sec. 1106.002.  AUTHORITY FOR OPERATION 
  Sec. 1106.003.  POLITICAL SUBDIVISION 
  Sec. 1106.004.  DISTRICT TERRITORY 
  [Sections 1106.005-1106.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1106.051.  BOARD; TERM 
  Sec. 1106.052.  NOTICE OF ELECTION 
  Sec. 1106.053.  BALLOT PETITION 
  Sec. 1106.054.  QUALIFICATIONS FOR OFFICE 
  Sec. 1106.055.  BOND NOT REQUIRED 
  Sec. 1106.056.  BOARD VACANCY 
  Sec. 1106.057.  OFFICERS 
  Sec. 1106.058.  COMPENSATION; EXPENSES 
  Sec. 1106.059.  VOTING REQUIREMENT 
  Sec. 1106.060.  EMPLOYEES 
  Sec. 1106.061.  MAINTENANCE OF RECORDS; PUBLIC
                   INSPECTION 
  Sec. 1106.062.  SEAL 
  [Sections 1106.063-1106.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1106.101.  DISTRICT RESPONSIBILITY 
  Sec. 1106.102.  RESTRICTION ON POLITICAL SUBDIVISION
                   TAXATION 
  Sec. 1106.103.  MANAGEMENT AND CONTROL OF DISTRICT 
  Sec. 1106.104.  HOSPITAL SYSTEM 
  Sec. 1106.105.  RULES 
  Sec. 1106.106.  PURCHASING AND ACCOUNTING PROCEDURES 
  Sec. 1106.107.  EMINENT DOMAIN 
  Sec. 1106.108.  GIFTS AND ENDOWMENTS 
  Sec. 1106.109.  CONTRACTS WITH POLITICAL SUBDIVISIONS
                   FOR HOSPITAL AND MEDICAL CARE 
  Sec. 1106.110.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1106.111.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1106.112-1106.150 reserved for expansion]
  SUBCHAPTER D. FINANCIAL PROVISIONS
  Sec. 1106.151.  BUDGET 
  Sec. 1106.152.  PROPOSED BUDGET: NOTICE AND HEARING 
  Sec. 1106.153.  FISCAL YEAR 
  Sec. 1106.154.  ANNUAL AUDIT 
  Sec. 1106.155.  DEPOSITORY OR TREASURER 
  [Sections 1106.156-1106.200 reserved for expansion]
  SUBCHAPTER E. BONDS
  Sec. 1106.201.  GENERAL OBLIGATION BONDS 
  Sec. 1106.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1106.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1106.204.  MATURITY OF GENERAL OBLIGATION BONDS 
  Sec. 1106.205.  EXECUTION OF GENERAL OBLIGATION BONDS 
  [Sections 1106.206-1106.250 reserved for expansion]
  SUBCHAPTER F. TAXES
  Sec. 1106.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1106.252.  TAX RATE 
  CHAPTER 1106. TEXHOMA MEMORIAL HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1106.001.  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 Texhoma Memorial Hospital
  District. (New.)
         Sec. 1106.002.  AUTHORITY FOR OPERATION. The Texhoma
  Memorial Hospital District operates in accordance with Section 9,
  Article IX, Texas Constitution. (Acts 60th Leg., R.S., Ch. 422,
  Sec. 1(a) (part).)
         Sec. 1106.003.  POLITICAL SUBDIVISION. The district is a
  political subdivision of this state. (Acts 60th Leg., R.S., Ch.
  422, Sec. 16 (part).)
         Sec. 1106.004.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of the Texhoma
  Independent School District in Sherman County, as those boundaries
  existed as of January 1, 1967. (Acts 60th Leg., R.S., Ch. 422, Sec.
  1(a) (part).)
  [Sections 1106.005-1106.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1106.051.  BOARD; TERM. (a) The board consists of five
  elected directors.
         (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. 422, Sec. 3(a) (part).)
         Sec. 1106.052.  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
  district. (Acts 60th Leg., R.S., Ch. 422, Sec. 3(c) (part).)
         Sec. 1106.053.  BALLOT PETITION. A person who wants to have
  the person's name printed on the ballot as a candidate for director
  must file with the board secretary a petition requesting that
  action. The petition must be:
               (1)  signed by not less than 15 registered voters; and
               (2)  filed by the deadline imposed by Section 144.005,
  Election Code. (Acts 60th Leg., R.S., Ch. 422, Sec. 3(c) (part).)
         Sec. 1106.054.  QUALIFICATIONS FOR OFFICE. A person may not
  be appointed or elected a director unless the person:
               (1)  is a resident of the district;
               (2)  owns land in the district subject to taxation; and
               (3)  is at least 18 years of age at the time of the
  election or appointment. (Acts 60th Leg., R.S., Ch. 422, Sec. 3(a)
  (part).)
         Sec. 1106.055.  BOND NOT REQUIRED. A director is not
  required to post a public official's bond. (Acts 60th Leg., R.S.,
  Ch. 422, Sec. 3(a) (part).)
         Sec. 1106.056.  BOARD VACANCY. (a) If a vacancy occurs in
  the office of director, the remaining directors shall appoint a
  director for the unexpired term.
         (b)  If the number of directors is reduced to fewer than
  three for any reason, the remaining directors shall immediately
  call a special election to fill the vacancies. If the remaining
  directors do not call the election, a district court, on
  application of a district voter or taxpayer, may order the
  directors to hold the election. (Acts 60th Leg., R.S., Ch. 422,
  Sec. 3(b) (part).)
         Sec. 1106.057.  OFFICERS. The board shall elect from among
  its members a president and a secretary. (Acts 60th Leg., R.S., Ch.
  422, Sec. 3(b) (part).)
         Sec. 1106.058.  COMPENSATION; EXPENSES. A director serves
  without compensation but is entitled to reimbursement for actual
  expenses incurred in the performance of official duties on approval
  of the expenses by the board. (Acts 60th Leg., R.S., Ch. 422, Secs.
  3(a) (part), 4 (part).)
         Sec. 1106.059.  VOTING REQUIREMENT. A concurrence of three
  directors is sufficient in any matter relating to district
  business. (Acts 60th Leg., R.S., Ch. 422, Sec. 3(b) (part).)
         Sec. 1106.060.  EMPLOYEES. The board may employ a general
  manager, attorney, bookkeeper, architect, and any other employee
  considered necessary for the efficient operation of the district.
  (Acts 60th Leg., R.S., Ch. 422, Sec. 7(a) (part).)
         Sec. 1106.061.  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. 422, Sec.
  7(b).)
         Sec. 1106.062.  SEAL. The board may adopt a seal for the
  district. (Acts 60th Leg., R.S., Ch. 422, Sec. 7(a) (part).)
  [Sections 1106.063-1106.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1106.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for providing medical and hospital care for the
  district's needy inhabitants and needy and indigent residents.
  (Acts 60th Leg., R.S., Ch. 422, Secs. 2(a) (part), 12 (part).)
         Sec. 1106.102.  RESTRICTION ON POLITICAL SUBDIVISION
  TAXATION. Sherman County or any other political subdivision in the
  district may not impose a tax on property in the district for
  hospital purposes. (Acts 60th Leg., R.S., Ch. 422, Sec. 12 (part).)
         Sec. 1106.103.  MANAGEMENT AND CONTROL OF DISTRICT. The
  management and control of the district are vested in the board.
  (Acts 60th Leg., R.S., Ch. 422, Sec. 4 (part).)
         Sec. 1106.104.  HOSPITAL SYSTEM. The district shall provide
  for:
               (1)  the establishment of a hospital system to provide
  medical and hospital care to 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 60th Leg., R.S., Ch. 422, Sec. 2(a)
  (part).)
         Sec. 1106.105.  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 60th Leg., R.S., Ch. 422, Sec. 7(c).)
         Sec. 1106.106.  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 60th Leg., R.S., Ch. 422, Sec. 7(a)
  (part).)
         Sec. 1106.107.  EMINENT DOMAIN. (a) The district may
  exercise the power of eminent domain to acquire a fee simple or
  other interest in any type of property, 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 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. 422,
  Sec. 9.)
         Sec. 1106.108.  GIFTS AND ENDOWMENTS. The board may accept
  for the district a gift or endowment 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. 422,
  Sec. 14.)
         Sec. 1106.109.  CONTRACTS WITH POLITICAL SUBDIVISIONS FOR
  HOSPITAL AND MEDICAL CARE. (a)  The board may enter into an
  agreement or contract with another political subdivision of this
  state that has boundaries contiguous to the district, on terms the
  board considers reasonable and proper, to provide medical and
  hospital care for residents of the other political subdivision.
         (b)  A contract or agreement entered into under this section
  must require the other political subdivision to pay for all medical
  and hospital care received by or provided to any resident of the
  other political subdivision if the person fails to pay for the
  medical and hospital services received by the resident. (Acts 60th
  Leg., R.S., Ch. 422, Sec. 18.)
         Sec. 1106.110.  PAYMENT FOR TREATMENT; PROCEDURES. (a)
  When a patient who resides in the district 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 of the costs that cannot be paid becomes a charge against
  the district.
         (c)  If the board 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 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)  Either party to the dispute may appeal the order to the
  district court. (Acts 60th Leg., R.S., Ch. 422, Sec. 13.)
         Sec. 1106.111.  AUTHORITY TO SUE AND BE SUED. As a
  governmental agency, the district may sue and be sued in its own
  name in any court of this state. (Acts 60th Leg., R.S., Ch. 422,
  Sec. 16 (part).)
  [Sections 1106.112-1106.150 reserved for expansion]
  SUBCHAPTER D. FINANCIAL PROVISIONS
         Sec. 1106.151.  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. 422, Sec. 8(b) (part).)
         Sec. 1106.152.  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 Sherman 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. 422, Sec. 8(b) (part).)
         Sec. 1106.153.  FISCAL YEAR. The district's fiscal year
  begins on October 1 and ends on September 30. (Acts 60th Leg.,
  R.S., Ch. 422, Sec. 8(a) (part).)
         Sec. 1106.154.  ANNUAL AUDIT. The board annually shall have
  an independent audit made of the district's books and records.
  (Acts 60th Leg., R.S., Ch. 422, Sec. 8(a) (part).)
         Sec. 1106.155.  DEPOSITORY OR TREASURER. (a) The board by
  resolution shall designate a bank or banks in Sherman County as the
  district's depository or treasurer. A designated bank serves for
  two years and until a successor is designated.
         (b)  All district money shall be secured in the manner
  provided for securing county funds. (Acts 60th Leg., R.S., Ch. 422,
  Sec. 10.)
  [Sections 1106.156-1106.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 1106.201.  GENERAL OBLIGATION BONDS. The board may
  issue and sell general obligation bonds in the name and on the faith
  of the district for any purpose relating to the purchase,
  construction, acquisition, repair, or renovation of buildings or
  improvements and equipping the buildings or improvements for
  hospital purposes. (Acts 60th Leg., R.S., Ch. 422, Sec. 6(a)
  (part).)
         Sec. 1106.202.  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 1106.201
  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. 422, Secs. 5(a) (part), 6(a)
  (part).)
         Sec. 1106.203.  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 in an
  election held for that purpose.
         (b)  The board may order a bond election on its own motion.
         (c)  The order calling the election must specify:
               (1)  the date of the election;
               (2)  the location of the polling places;
               (3)  the presiding election officers;
               (4)  the purpose for which the bonds are to be issued;
               (5)  the amount of the bonds to be authorized;
               (6)  the maximum interest rate of the bonds; and
               (7)  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 14
  days before the date of the election. (Acts 60th Leg., R.S., Ch.
  422, Sec. 6(a) (part).)
         Sec. 1106.204.  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. 422,
  Sec. 6(a) (part).)
         Sec. 1106.205.  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. 422, Sec. 6(a) (part).)
  [Sections 1106.206-1106.250 reserved for expansion]
  SUBCHAPTER F. TAXES
         Sec. 1106.251.  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 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. (Acts 60th Leg., R.S., Ch. 422,
  Secs. 5(a) (part), 8(b) (part).)
         Sec. 1106.252.  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. 422, Sec. 5(a)
  (part).)
  CHAPTER 1108.  TRINITY MEMORIAL HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1108.001.  DEFINITIONS 
  Sec. 1108.002.  AUTHORITY FOR OPERATION 
  Sec. 1108.003.  ESSENTIAL PUBLIC FUNCTION 
  Sec. 1108.004.  DISTRICT TERRITORY 
  Sec. 1108.005.  DISTRICT SUPPORT AND MAINTENANCE NOT
                   STATE OBLIGATION 
  Sec. 1108.006.  RESTRICTION ON STATE FINANCIAL
                   ASSISTANCE 
  [Sections 1108.007-1108.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1108.051.  BOARD ELECTION; TERM 
  Sec. 1108.052.  NOTICE OF ELECTION 
  Sec. 1108.053.  BALLOT PETITION 
  Sec. 1108.054.  QUALIFICATIONS FOR OFFICE 
  Sec. 1108.055.  BOARD VACANCY 
  Sec. 1108.056.  OFFICERS 
  Sec. 1108.057.  COMPENSATION; EXPENSES 
  Sec. 1108.058.  QUORUM; VOTING REQUIREMENT 
  Sec. 1108.059.  DISTRICT ADMINISTRATOR 
  Sec. 1108.060.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1108.061.  ASSISTANT DISTRICT ADMINISTRATOR;
                   ATTORNEY 
  Sec. 1108.062.  APPOINTMENT OF STAFF AND EMPLOYEES 
  Sec. 1108.063.  RETIREMENT BENEFITS 
  [Sections 1108.064-1108.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1108.101.  DISTRICT RESPONSIBILITY 
  Sec. 1108.102.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
  Sec. 1108.103.  HOSPITAL SYSTEM; MOBILE EMERGENCY
                   MEDICAL SERVICES 
  Sec. 1108.104.  RULES 
  Sec. 1108.105.  PURCHASING AND ACCOUNTING PROCEDURES 
  Sec. 1108.106.  DISTRICT PROPERTY, FACILITIES, AND
                   EQUIPMENT 
  Sec. 1108.107.  EMINENT DOMAIN 
  Sec. 1108.108.  COST OF RELOCATING OR ALTERING PROPERTY 
  Sec. 1108.109.  GIFTS AND ENDOWMENTS 
  Sec. 1108.110.  CONSTRUCTION CONTRACTS 
  Sec. 1108.111.  OPERATING AND MANAGEMENT CONTRACTS 
  Sec. 1108.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR SERVICES 
  Sec. 1108.113.  PAYMENT FOR TREATMENT; PROCEDURES 
  Sec. 1108.114.  REIMBURSEMENT FOR SERVICES 
  Sec. 1108.115.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1108.116-1108.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 1108.151.  BUDGET 
  Sec. 1108.152.  NOTICE; HEARING; APPROVAL OF BUDGET 
  Sec. 1108.153.  AMENDMENTS TO BUDGET 
  Sec. 1108.154.  RESTRICTION ON EXPENDITURES 
  Sec. 1108.155.  FISCAL YEAR 
  Sec. 1108.156.  ANNUAL AUDIT 
  Sec. 1108.157.  INSPECTION OF ANNUAL AUDIT AND DISTRICT
                   RECORDS 
  Sec. 1108.158.  FINANCIAL REPORT 
  Sec. 1108.159.  DEPOSITORY 
  Sec. 1108.160.  SPENDING AND INVESTMENT RESTRICTIONS 
  [Sections 1108.161-1108.200 reserved for expansion]
  SUBCHAPTER E. BONDS
  Sec. 1108.201.  GENERAL OBLIGATION BONDS 
  Sec. 1108.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1108.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1108.204.  REVENUE BONDS 
  Sec. 1108.205.  REFUNDING BONDS 
  Sec. 1108.206.  MATURITY OF BONDS 
  Sec. 1108.207.  EXECUTION OF BONDS 
  Sec. 1108.208.  BONDS EXEMPT FROM TAXATION 
  [Sections 1108.209-1108.250 reserved for expansion]
  SUBCHAPTER F. TAXES
  Sec. 1108.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1108.252.  TAX RATE 
  Sec. 1108.253.  TAX ASSESSOR-COLLECTOR 
  CHAPTER 1108. TRINITY MEMORIAL HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1108.001.  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 Trinity Memorial Hospital
  District. (New.)
         Sec. 1108.002.  AUTHORITY FOR OPERATION. The Trinity
  Memorial Hospital District operates and is administered and
  financed in accordance with Section 9, Article IX, Texas
  Constitution, and has the rights, powers, and duties provided by
  this chapter. (Acts 67th Leg., R.S., Ch. 265, Sec. 1.)
         Sec. 1108.003.  ESSENTIAL PUBLIC FUNCTION. The district
  performs an essential public function in carrying out the purposes
  of this chapter. (Acts 67th Leg., R.S., Ch. 265, Sec. 24 (part).)
         Sec. 1108.004.  DISTRICT TERRITORY. The district is
  composed of the territory in Trinity County described by Section 2,
  Chapter 265, Acts of the 67th Legislature, Regular Session, 1981.  
  (New.)
         Sec. 1108.005.  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 67th
  Leg., R.S., Ch. 265, Sec. 23 (part).)
         Sec. 1108.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.
  The legislature may not make a direct appropriation for the
  construction, maintenance, or improvement of a district facility.
  (Acts 67th Leg., R.S., Ch. 265, Sec. 23 (part).)
  [Sections 1108.007-1108.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1108.051.  BOARD ELECTION; TERM. (a) The board
  consists of nine directors elected by place.
         (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 four or five directors expiring each year as
  appropriate. (Acts 67th Leg., R.S., Ch. 265, Sec. 5(d) (part).)
         Sec. 1108.052.  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 or newspapers that individually
  or collectively have general circulation in the district. (Acts
  67th Leg., R.S., Ch. 265, Sec. 5(e).)
         Sec. 1108.053.  BALLOT PETITION. A person who wants to have
  the person's name printed on the ballot as a candidate for director
  must file with the board secretary a petition requesting that
  action. The petition must:
               (1)  be signed by at least 10 voters in the district;
               (2)  be filed by the deadline imposed by Section
  144.005, Election Code; and
               (3)  specify the place for which the person is to be a
  candidate. (Acts 67th Leg., R.S., Ch. 265, Sec. 5(f).)
         Sec. 1108.054.  QUALIFICATIONS FOR OFFICE. (a) A person may
  not be elected or appointed as a director unless the person is:
               (1)  at least 18 years of age;
               (2)  a resident of the district; and
               (3)  a qualified voter.
         (b)  A person elected or appointed to fill Place 1 or 3 on the
  board must also be a resident of the portion of Commissioners
  Precinct 1 or 3, respectively, that lies within the district.
         (c)  A person is not eligible to serve as a director if the
  person is:
               (1)  the district administrator; or
               (2)  a district employee. (Acts 67th Leg., R.S., Ch.
  265, Sec. 5(h).)
         Sec. 1108.055.  BOARD VACANCY. If a vacancy occurs in the
  office of director, the remaining directors shall fill the vacancy
  for the unexpired term. (Acts 67th Leg., R.S., Ch. 265, Sec. 5(g).)
         Sec. 1108.056.  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 67th Leg., R.S., Ch. 265, Sec. 5(i) (part).)
         Sec. 1108.057.  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 67th Leg., R.S., Ch.
  265, Sec. 5(i) (part).)
         Sec. 1108.058.  QUORUM; VOTING REQUIREMENT. (a)  Any four
  directors constitute a quorum.
         (b)  A concurrence of four directors is sufficient in any
  matter relating to district business. (Acts 67th Leg., R.S., Ch.
  265, Sec. 5(i) (part).)
         Sec. 1108.059.  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 receive the compensation determined by the
  board.
         (c)  Before assuming the duties of district administrator,
  the administrator must execute a bond in the amount set by the board
  of not less than $5,000 that:
               (1)  is conditioned on the administrator performing the
  administrator's required duties; and
               (2)  contains any other condition the board requires.
  (Acts 67th Leg., R.S., Ch. 265, Sec. 6 (part).)
         Sec. 1108.060.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
  Subject to the limitations prescribed by the board, the district
  administrator shall:
               (1)  supervise the work and activities of the district;
  and
               (2)  direct the affairs of the district. (Acts 67th
  Leg., R.S., Ch. 265, Sec. 6 (part).)
         Sec. 1108.061.  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
  serve at the will of the board and are entitled to receive the
  compensation determined by the board. (Acts 67th Leg., R.S., Ch.
  265, Sec. 6 (part).)
         Sec. 1108.062.  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 warranted.
         (b)  The district may employ fiscal agents, accountants,
  architects, and additional attorneys as the board considers proper.
         (c)  The board may delegate to the district administrator the
  authority to employ district employees, including technicians and
  nurses. (Acts 67th Leg., R.S., Ch. 265, Secs. 6 (part), 19.)
         Sec. 1108.063.  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 67th Leg., R.S., Ch.
  265, Sec. 7.)
  [Sections 1108.064-1108.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1108.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for operating all hospital facilities and for
  providing medical and hospital care for the district's needy
  inhabitants. (Acts 67th Leg., R.S., Ch. 265, Sec. 22 (part).)
         Sec. 1108.102.  MANAGEMENT, CONTROL, AND ADMINISTRATION.
  The board shall manage, control, and administer the hospital system
  and the district's money and resources. (Acts 67th Leg., R.S., Ch.
  265, Sec. 6 (part).)
         Sec. 1108.103.  HOSPITAL SYSTEM; MOBILE EMERGENCY MEDICAL
  SERVICES. (a) The district shall provide for:
               (1)  the establishment of a hospital system and the
  provision of emergency medical services 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 any facilities and
  equipment the board considers necessary for hospital care. (Acts
  67th Leg., R.S., Ch. 265, Secs. 3 (part), 12(a) (part).)
         Sec. 1108.104.  RULES. The board may adopt rules governing
  the operation of the hospital, the hospital system, and the
  district's staff and employees. (Acts 67th Leg., R.S., Ch. 265,
  Sec. 6 (part).)
         Sec. 1108.105.  PURCHASING AND ACCOUNTING PROCEDURES. The
  board may prescribe:
               (1)  the method and manner of making purchases and
  expenditures by and for the district; and
               (2)  all accounting and control procedures. (Acts 67th
  Leg., R.S., Ch. 265, Sec. 12(b) (part).)
         Sec. 1108.106.  DISTRICT PROPERTY, FACILITIES, AND
  EQUIPMENT. (a) The board shall determine the type, number, and
  location of buildings required to maintain an adequate hospital
  system.
         (b)  The board may lease all or part of the district's
  facilities on terms considered to be in the best interest of the
  district's inhabitants.
         (c)  The district may acquire equipment for use in the
  district's hospital system and mortgage or pledge the property as
  security for the payment of the purchase price.
         (d)  The district may sell or otherwise dispose of any
  property, including equipment, on terms the board finds are in the
  best interest of the district's inhabitants. (Acts 67th Leg.,
  R.S., Ch. 265, Secs. 12(a) (part), (b) (part).)
         Sec. 1108.107.  EMINENT DOMAIN. (a) The district may
  exercise the power of eminent domain to acquire a fee simple or
  other interest in any type of property located in district
  territory if the interest is necessary or convenient 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 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 67th Leg., R.S., Ch. 265,
  Sec. 18(a).)
         Sec. 1108.108.  COST OF RELOCATING OR ALTERING PROPERTY. In
  exercising the power of eminent domain, if the board requires
  relocating, raising, lowering, rerouting, changing the grade, or
  altering the construction of any railroad, electric transmission,
  telegraph or telephone line, conduit, pole, or facility, or
  pipeline, the district must bear the actual cost of relocating,
  raising, lowering, rerouting, changing the grade, or altering the
  construction to provide comparable replacement without enhancement
  of facilities, after deducting the net salvage value derived from
  the old facility. (Acts 67th Leg., R.S., Ch. 265, Sec. 18(b).)
         Sec. 1108.109.  GIFTS AND ENDOWMENTS. The board may accept
  for the district a gift or endowment to be held in trust for the
  purposes and under the directions, limitations, or other provisions
  prescribed in writing by the donor that are consistent with the
  proper management and objectives of the district. (Acts 67th Leg.,
  R.S., Ch. 265, Sec. 21.)
         Sec. 1108.110.  CONSTRUCTION CONTRACTS. A construction
  contract that involves the expenditure of more than $10,000 may be
  made only after advertising in the manner provided by Chapter 252
  and Subchapter C, Chapter 262, Local Government Code. (Acts 67th
  Leg., R.S., Ch. 265, Sec. 12(b) (part).)
         Sec. 1108.111.  OPERATING AND MANAGEMENT CONTRACTS. The
  board may enter into an operating or management contract relating
  to a district facility. (Acts 67th Leg., R.S., Ch. 265, Sec. 12(a)
  (part).)
         Sec. 1108.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  SERVICES. The board may contract with a political subdivision or
  governmental agency for the district to provide mobile emergency
  medical services and investigatory or other services as to
  facilities for the medical care, hospital, or welfare needs of
  district inhabitants. (Acts 67th Leg., R.S., Ch. 265, Sec. 6
  (part).)
         Sec. 1108.113.  PAYMENT FOR TREATMENT; PROCEDURES. (a)
  When a patient who resides in the district is admitted to a district
  facility, the district administrator may have an inquiry made into
  the 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 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 costs of
  the patient's care and treatment, the patient or those relatives
  shall be ordered to pay the district a specified amount each week
  for the patient's care and support. The amount ordered must be
  proportionate to 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:
               (1)  call witnesses;
               (2)  hear and resolve the dispute or doubt; and
               (3)  issue a final order.
         (f)  A final order of the board may be appealed to the
  district court. The substantial evidence rule applies to the
  appeal. (Acts 67th Leg., R.S., Ch. 265, Sec. 20.)
         Sec. 1108.114.  REIMBURSEMENT FOR SERVICES. (a) The board
  shall require a county or municipality located outside the district
  to reimburse the district for the care and treatment of a sick or
  injured person of that county or municipality.
         (b)  The board shall require the sheriff of Trinity County to
  reimburse the district for the care and treatment of a prisoner
  imprisoned in Trinity County who is not a district resident.
         (c)  The district may contract with this state or a federal
  agency for the reimbursement for the treatment of a sick or injured
  person. (Acts 67th Leg., R.S., Ch. 265, Sec. 6 (part).)
         Sec. 1108.115.  AUTHORITY TO SUE AND BE SUED. The district,
  through the board, may sue and be sued. (Acts 67th Leg., R.S., Ch.
  265, Sec. 6 (part).)
  [Sections 1108.116-1108.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 1108.151.  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 revenue and balances available to
  cover the budget; and
               (7)  the estimated tax rate required. (Acts 67th Leg.,
  R.S., Ch. 265, Sec. 8 (part).)
         Sec. 1108.152.  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 with
  general circulation in the district.
         (c)  Any district resident is entitled to be present and
  participate at the hearing.
         (d)  At the conclusion of the hearing, the board shall act on
  the budget as proposed by the district administrator. The board may
  make any changes in the proposed budget that the board judges to be
  in the interests of the taxpayers and the law warrants.  The budget
  must be approved by the board.  (Acts 67th Leg., R.S., Ch. 265, Sec.
  8 (part).)
         Sec. 1108.153.  AMENDMENTS TO BUDGET. After the annual
  budget is adopted, the budget may be amended as required by
  circumstances. The board must approve all amendments. (Acts 67th
  Leg., R.S., Ch. 265, Sec. 8 (part).)
         Sec. 1108.154.  RESTRICTION ON EXPENDITURES. Money may be
  spent only for an expense included in the budget or an amendment to
  the budget. (Acts 67th Leg., R.S., Ch. 265, Sec. 8 (part).)
         Sec. 1108.155.  FISCAL YEAR. (a) The district operates
  according to a fiscal year established by the board.
         (b)  The fiscal year may not be changed:
               (1)  during a period that district revenue bonds are
  outstanding; or
               (2)  more than once in any 24-month period. (Acts 67th
  Leg., R.S., Ch. 265, Sec. 8 (part).)
         Sec. 1108.156.  ANNUAL AUDIT. The board annually shall have
  an audit made of the district's financial condition. (Acts 67th
  Leg., R.S., Ch. 265, Sec. 8 (part).)
         Sec. 1108.157.  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 67th Leg.,
  R.S., Ch. 265, Sec. 8 (part).)
         Sec. 1108.158.  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 67th Leg., R.S., Ch. 265, Sec. 8 (part).)
         Sec. 1108.159.  DEPOSITORY. (a) The board shall select one
  or more banks inside or outside the district to serve as a
  depository for district money.
         (b)  District money, other than money invested as provided by
  Section 1108.160(b) and money transmitted to a bank for payment of
  bonds or obligations issued or assumed by the district, shall be
  deposited as received with the depository bank and shall remain on
  deposit.
         (c)  This chapter, including Subsection (b), does not limit
  the power of the board to place a part of district money on time
  deposit or to purchase certificates of deposit.  (Acts 67th Leg.,
  R.S., Ch. 265, Sec. 13(a).)
         Sec. 1108.160.  SPENDING AND INVESTMENT RESTRICTIONS. (a)
  Except as provided by Section 1108.106(c) and by Subchapter E, the
  district may not incur an obligation payable from district revenue
  other than the revenue on hand or to be on hand in the current and
  following district fiscal years.
         (b)  The board may invest operating, depreciation, or
  building reserves only in funds or securities specified by Chapter
  2256, Government Code. (Acts 67th Leg., R.S., Ch. 265, Secs. 6
  (part), 12(b) (part).)
  [Sections 1108.161-1108.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 1108.201.  GENERAL OBLIGATION BONDS. The board may
  issue and sell general obligation bonds in the name and on the faith
  and credit of the district for any purpose relating to:
               (1)  the purchase, construction, acquisition, repair,
  or renovation of buildings or improvements;
               (2)  equipping buildings or improvements for hospital
  purposes; and
               (3)  the acquisition and operation of mobile emergency
  medical services to assist the district in carrying out its
  hospital purposes. (Acts 67th Leg., R.S., Ch. 265, Sec. 9(a)
  (part).)
         Sec. 1108.202.  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 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 67th Leg.,
  R.S., Ch. 265, Sec. 9(a) (part).)
         Sec. 1108.203.  GENERAL OBLIGATION BOND ELECTION. (a) The
  district may issue general obligation bonds only if the bonds are
  authorized by a majority of the district voters.
         (b)  The board, in ordering a bond election, must provide for
  clerks as in county elections and must specify:
               (1)  the date of the election;
               (2)  the location of the polling places;
               (3)  the presiding and alternate election judges for
  each polling place;
               (4)  the amount of the bonds to be authorized; and
               (5)  the maximum maturity of the bonds.
         (c)  Notice of a bond election shall be given as provided by
  Section 1251.003, Government Code.
         (d)  Section 41.001(a), Election Code, does not apply to an
  election held under this section.
         (e)  The board shall declare the results of the election.
  (Acts 67th Leg., R.S., Ch. 265, Sec. 9(a) (part).)
         Sec. 1108.204.  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 and operate mobile emergency medical
  services to assist the district in carrying out its hospital
  purposes; and
               (3)  acquire sites to be used for hospital purposes.
         (b)  The bonds must be payable from and secured by a pledge of
  all or part of district revenue derived from the operation of the
  district's hospitals.
         (c)  The bonds may be additionally secured by a mortgage or
  deed of trust lien on all or part of district property.
         (d)  The bonds must be issued in the manner and in accordance
  with the procedures and requirements prescribed by Sections
  264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health
  and Safety Code, for issuance of revenue bonds by a county hospital
  authority. (Acts 67th Leg., R.S., Ch. 265, Sec. 11 (part).)
         Sec. 1108.205.  REFUNDING BONDS. (a) The board may, without
  an election, issue refunding bonds to refund outstanding
  indebtedness issued or assumed by the district.
         (b)  A refunding bond may be:
               (1)  sold, with the proceeds of the refunding bond
  applied to the payment of the outstanding indebtedness; or
               (2)  exchanged wholly or partly for not less than a
  similar principal amount of outstanding indebtedness. (Acts 67th
  Leg., R.S., Ch. 265, Secs. 9(a) (part), (b) (part), 11 (part).)
         Sec. 1108.206.  MATURITY OF BONDS. District bonds must
  mature not later than 40 years after their date of issuance. (Acts
  67th Leg., R.S., Ch. 265, Sec. 9(c) (part).)
         Sec. 1108.207.  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 67th Leg., R.S., Ch. 265,
  Sec. 9(c) (part).)
         Sec. 1108.208.  BONDS EXEMPT FROM TAXATION. The following
  are exempt from taxation by this state or a political subdivision of
  this state:
               (1)  bonds issued by the district;
               (2)  the transfer and issuance of the bonds; and
               (3)  any profits made in the sale of the bonds. (Acts
  67th Leg., R.S., Ch. 265, Sec. 24 (part).)
  [Sections 1108.209-1108.250 reserved for expansion]
  SUBCHAPTER F. TAXES
         Sec. 1108.251.  IMPOSITION OF AD VALOREM TAX. (a) The board
  may impose a tax on all property in the district subject to district
  taxation.
         (b)  The board shall impose the tax to pay:
               (1)  indebtedness issued or assumed by the district;
  and
               (2)  district maintenance and operating expenses.
         (c)  The board may not impose a tax to pay the principal of or
  interest on revenue bonds issued under Section 1108.204. (Acts
  67th Leg., R.S., Ch. 265, Secs. 14(a) (part), (c).)
         Sec. 1108.252.  TAX RATE. (a) The board may impose the tax
  at a rate not to exceed 75 cents on each $100 valuation of taxable
  property in the district subject to district taxation.
         (b)  In setting the tax rate, the board shall consider the
  income of the district from sources other than taxation. (Acts 67th
  Leg., R.S., Ch. 265, Secs. 4(b) (part), 14(a) (part), (d) (part).)
         Sec. 1108.253.  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 Title 1, Tax Code. (Acts 67th Leg., R.S., Ch. 265, Sec. 16(b).)
 
  CHAPTER 1111.  WALKER COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 1111.001.  DEFINITIONS 
  Sec. 1111.002.  AUTHORITY FOR CREATION 
  Sec. 1111.003.  POLITICAL SUBDIVISION 
  Sec. 1111.004.  DISTRICT TERRITORY 
  Sec. 1111.005.  CORRECTION OF INVALID PROCEDURES 
  Sec. 1111.006.  DISTRICT SUPPORT AND MAINTENANCE NOT
                   STATE OBLIGATION 
  [Sections 1111.007-1111.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 1111.051.  BOARD ELECTION; TERM 
  Sec. 1111.052.  NOTICE OF ELECTION 
  Sec. 1111.053.  REQUEST TO APPEAR ON BALLOT 
  Sec. 1111.054.  QUALIFICATIONS FOR OFFICE 
  Sec. 1111.055.  BOND; RECORD OF BOND AND OATH 
  Sec. 1111.056.  OFFICERS 
  Sec. 1111.057.  OFFICE; MEETINGS 
  Sec. 1111.058.  RECORDS OF PROCEEDINGS 
  Sec. 1111.059.  DISTRICT ADMINISTRATOR 
  Sec. 1111.060.  GENERAL DUTIES OF DISTRICT
                   ADMINISTRATOR 
  Sec. 1111.061.  APPOINTMENT OF STAFF AND EMPLOYEES 
  Sec. 1111.062.  RETIREMENT PROGRAM 
  Sec. 1111.063.  SEAL 
  [Sections 1111.064-1111.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 1111.101.  DISTRICT RESPONSIBILITY 
  Sec. 1111.102.  RESTRICTION ON POLITICAL SUBDIVISION
                   TAXATION AND DEBT 
  Sec. 1111.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION 
  Sec. 1111.104.  HOSPITAL SYSTEM 
  Sec. 1111.105.  RULES 
  Sec. 1111.106.  EMINENT DOMAIN 
  Sec. 1111.107.  GIFTS AND ENDOWMENTS 
  Sec. 1111.108.  LEASES 
  Sec. 1111.109.  OPERATING AND MANAGEMENT CONTRACTS 
  Sec. 1111.110.  CONTRACTS FOR CARE 
  Sec. 1111.111.  CONTRACTS WITH GOVERNMENTAL ENTITIES
                   FOR HOSPITALIZATION 
  Sec. 1111.112.  DISPOSITION OF PROPERTY 
  Sec. 1111.113.  AUTHORITY TO SUE AND BE SUED 
  [Sections 1111.114-1111.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 1111.151.  DEPOSITORY 
  [Sections 1111.152-1111.200 reserved for expansion]
  SUBCHAPTER E. BONDS
  Sec. 1111.201.  GENERAL OBLIGATION BONDS 
  Sec. 1111.202.  TAX TO PAY GENERAL OBLIGATION BONDS 
  Sec. 1111.203.  GENERAL OBLIGATION BOND ELECTION 
  Sec. 1111.204.  MATURITY OF GENERAL OBLIGATION BONDS 
  Sec. 1111.205.  EXECUTION OF GENERAL OBLIGATION BONDS 
  Sec. 1111.206.  INVESTMENT OF GENERAL OBLIGATION BOND
                   PROCEEDS 
  Sec. 1111.207.  REVENUE AND SPECIAL OBLIGATION BONDS 
  [Sections 1111.208-1111.250 reserved for expansion]
  SUBCHAPTER F. TAXES
  Sec. 1111.251.  IMPOSITION OF AD VALOREM TAX 
  Sec. 1111.252.  TAX RATE 
  Sec. 1111.253.  ASSESSMENT AND COLLECTION BY COUNTY TAX
                   ASSESSOR-COLLECTOR 
  Sec. 1111.254.  ASSESSMENT AND COLLECTION BY DISTRICT
                   TAX ASSESSOR-COLLECTOR 
  CHAPTER 1111.  WALKER COUNTY HOSPITAL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1111.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the board of hospital managers of
  the district.
               (2)  "District" means the Walker County Hospital
  District of Walker County, Texas.
               (3)  "Manager" means a member of the board. (New.)
         Sec. 1111.002.  AUTHORITY FOR CREATION. The Walker County
  Hospital District of Walker County, Texas, is created under the
  authority of Section 9, Article IX, Texas Constitution. (Acts 62nd
  Leg., R.S., Ch. 848, Sec. 1 (part).)
         Sec. 1111.003.  POLITICAL SUBDIVISION. The district is a
  political subdivision of this state. (Acts 62nd Leg., R.S., Ch.
  848, Sec. 14 (part).)
         Sec. 1111.004.  DISTRICT TERRITORY. The boundaries of the
  district are coextensive with the boundaries of Walker County,
  Texas. (Acts 62nd Leg., R.S., Ch. 848, Sec. 1 (part).)
         Sec. 1111.005.  CORRECTION OF INVALID PROCEDURES. If a
  court holds that any procedure under this chapter violates the
  constitution of this state or of the United States, the district by
  resolution may provide an alternative procedure that conforms with
  the constitution. (Acts 62nd Leg., R.S., Ch. 848, Sec. 16 (part).)
         Sec. 1111.006.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE
  OBLIGATION. The support and maintenance of the district's hospital
  system may not become a charge against or obligation of this state.
  (Acts 62nd Leg., R.S., Ch. 848, Sec. 6 (part).)
  [Sections 1111.007-1111.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 1111.051.  BOARD ELECTION; TERM.  (a)  The board
  consists of five elected managers.
         (b)  Unless four-year terms are established under Section
  285.081, Health and Safety Code, managers serve staggered two-year
  terms with the terms of two or three managers expiring each year as
  appropriate.  (Acts 62nd Leg., R.S., Ch. 848, Sec. 4(b) (part).)
         Sec. 1111.052.  NOTICE OF ELECTION.  At least 10 days before
  the date of a managers' election, notice of the election must be
  published one time in a newspaper of general circulation in Walker
  County. (Acts 62nd Leg., R.S., Ch. 848, Sec. 4(b) (part).)
         Sec. 1111.053.  REQUEST TO APPEAR ON BALLOT.  A person who
  wants to have the person's name printed on the ballot as a candidate
  for manager must file a written request with the board secretary.  
  The request must be:
               (1)  signed by at least 20 district voters; and
               (2)  filed by the deadline imposed by Section 144.005,
  Election Code. (Acts 62nd Leg., R.S., Ch. 848, Sec. 4(b) (part).)
         Sec. 1111.054.  QUALIFICATIONS FOR OFFICE. A person may not
  serve as a manager unless the person is:
               (1)  a resident of the district; and
               (2)  at least 18 years of age. (Acts 62nd Leg., R.S.,
  Ch. 848, Sec. 4(b) (part).)
         Sec. 1111.055.  BOND; RECORD OF BOND AND OATH. (a) Each
  manager shall execute a good and sufficient bond for $5,000 that is:
               (1)  approved by the board;
               (2)  payable to the district; and
               (3)  conditioned on the faithful performance of the
  manager's duties.
         (b)  Each manager's bond and constitutional oath of office
  must be kept in the district's permanent records. (Acts 62nd Leg.,
  R.S., Ch. 848, Sec. 4(b) (part).)
         Sec. 1111.056.  OFFICERS. (a) The board shall select from
  among the managers a presiding officer.
         (b)  A presiding officer pro tem shall preside in the absence
  of the presiding officer.
         (c)  The district administrator or any manager may be
  appointed secretary. (Acts 62nd Leg., R.S., Ch. 848, Sec. 4(e)
  (part).)
         Sec. 1111.057.  OFFICE; MEETINGS. (a) The board:
               (1)  shall establish an office and meeting place in the
  district;
               (2)  shall establish regular meetings to conduct
  district business; and
               (3)  may hold special meetings at other times as
  district business requires.
         (b)  Except as provided by this section, Chapter 551,
  Government Code, applies to board meetings.
         (c)  If there is an emergency or urgent public necessity,
  posting of notice of a board meeting is not required.
         (d)  Failure to post notice does not affect the validity of
  an action taken at a regular board meeting. Failure to post notice
  may affect the validity of an action taken at a special meeting
  unless the board declares, by an action taken at the special
  meeting, that an emergency exists.
         (e)  Any interested person may attend a board meeting. (Acts
  62nd Leg., R.S., Ch. 848, Sec. 4(e) (part).)
         Sec. 1111.058.  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 manager presiding at the meeting shall read
  and sign the record; and
               (2)  the board secretary shall attest the record.
  (Acts 62nd Leg., R.S., Ch. 848, Sec. 4(e) (part).)
         Sec. 1111.059.  DISTRICT ADMINISTRATOR. (a) The board may
  appoint a qualified person as district administrator.
         (b)  The district administrator serves at the will of the
  board and receives the compensation determined by the board.
         (c)  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 62nd Leg., R.S., Ch. 848, Sec. 4(c) (part).)
         Sec. 1111.060.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
  Subject to any limitations prescribed by the board, the district
  administrator shall:
               (1)  supervise the work and activities of the district;
  and
               (2) direct the affairs of the district. (Acts 62nd
  Leg., R.S., Ch. 848, Sec. 4(c) (part).)
         Sec. 1111.061.  APPOINTMENT OF STAFF AND EMPLOYEES. (a) The
  board may:
               (1)  appoint to the staff any doctors and employ any
  technicians, nurses, and other employees considered necessary for
  the efficient operation of the district; and
               (2)  provide that the district administrator has the
  authority to employ district employees, including technicians and
  nurses.
         (b)  The district may employ fiscal agents, accountants,
  architects, and attorneys the board considers proper.  (Acts 62nd
  Leg., R.S., Ch. 848, Secs. 4(c) (part), 8.)
         Sec. 1111.062.  RETIREMENT PROGRAM. 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. (Acts 62nd Leg., R.S., Ch. 848, Sec. 4(c) (part).)
         Sec. 1111.063.  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 62nd Leg., R.S., Ch.
  848, Sec. 4(e) (part).)
  [Sections 1111.064-1111.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1111.101.  DISTRICT RESPONSIBILITY. The district has
  full responsibility for providing hospital care for the district's
  needy inhabitants. (Acts 62nd Leg., R.S., Ch. 848, Sec. 2 (part).)
         Sec. 1111.102.  RESTRICTION ON POLITICAL SUBDIVISION
  TAXATION AND DEBT. A political subdivision in Walker County, other
  than the district, may not impose a tax or issue bonds or other
  obligations for hospital purposes or to provide medical care in the
  district. (Acts 62nd Leg., R.S., Ch. 848, Sec. 2 (part).)
         Sec. 1111.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.
  The board shall manage, control, and administer the district's
  hospitals and hospital system. (Acts 62nd Leg., R.S., Ch. 848, Sec.
  4(c) (part).)
         Sec. 1111.104.  HOSPITAL SYSTEM. (a) The district shall
  provide for:
               (1)  the establishment of a hospital or hospital system
  in the district to furnish hospital care to 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.
         (b)  The board shall determine the type, number, and location
  of buildings required to maintain an adequate hospital system.
         (c)  The hospital system may include:
               (1)  domiciliary hospital care of the sick or injured;
               (2)  outpatient clinics;
               (3)  dispensaries;
               (4)  geriatric domiciliary care;
               (5)  convalescent home facilities;
               (6)  necessary nurses;
               (7)  domiciliaries and training centers;
               (8)  blood banks;
               (9)  community health centers;
               (10)  research centers or laboratories; and
               (11)  any other facilities the board considers
  necessary for hospital care. (Acts 62nd Leg., R.S., Ch. 848, Secs.
  2 (part), 4(d) (part).)
         Sec. 1111.105.  RULES. The district through the board may
  adopt rules for the operation of the district. (Acts 62nd Leg.,
  R.S., Ch. 848, Sec. 4(c) (part).)
         Sec. 1111.106.  EMINENT DOMAIN. (a) The district may
  exercise the power of eminent domain to acquire a fee simple or
  other interest in any type of property, real, personal, or mixed,
  located in district territory, if the interest is necessary or
  convenient to exercise a right, power, privilege, or function
  conferred on the district by this chapter.
         (b)  The district must exercise the power of eminent domain
  in the manner provided by Chapter 21, Property Code, except the
  district is not required to deposit in the trial court money or a
  bond as provided by Section 21.021(a), Property Code.
         (c)  In a condemnation proceeding brought by the district,
  the district is not required to:
               (1)  pay in advance or provide a bond or other security
  for costs in the trial court;
               (2)  provide a bond for the issuance of a temporary
  restraining order or a temporary injunction; or
               (3)  provide a bond for costs or a supersedeas bond on
  an appeal or petition for review. (Acts 62nd Leg., R.S., Ch. 848,
  Sec. 10.)
         Sec. 1111.107.  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 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 62nd Leg., R.S., Ch. 848,
  Sec. 15.)
         Sec. 1111.108.  LEASES. (a) The district through the board
  may lease all or part of the buildings and facilities comprising the
  hospital system to any person on terms considered to be in the
  district's best interest. The term of a lease may not exceed 40
  years.
         (b)  When leasing a building or other facility, the board may
  delegate as it considers appropriate the board's power to manage,
  control, and administer the leased buildings and facilities to
  furnish hospital care.
         (c)  If all or part of a district building or other facility
  is leased, the board shall provide that the lessee charges
  sufficient rates for services rendered or goods provided at the
  leased premise that together with other sources of the lessee's
  revenue produce an amount sufficient to enable the lessee to pay the
  expenses of operating and maintaining the leased premise as the
  lessee is required to pay under the lease. The rates also must
  enable the lessee to pay lease rentals to the district that will be
  sufficient, when taken with any other source of the district's
  estimated revenue that are pledged for the same purpose, to:
               (1)  pay the interest on any revenue or special
  obligation bonds that are payable wholly or partly from the lease
  rentals;
               (2)  create and maintain a sinking fund to pay the
  principal of and any premium on the bonds as they become due;
               (3)  create and maintain a bond reserve fund and any
  other fund required by the bond resolution or trust indenture
  authorizing the issuance of the bonds; and
               (4)  pay all other charges, fees, costs, and expenses
  that the lessee is required to pay under the resolution or
  indenture.
         (d)  The lease, management agreement, bond resolution, or
  trust indenture may prescribe systems, methods, routines,
  procedures, and policies for the operation of the buildings and
  other facilities owned by the district. If all or part of the
  district's buildings or other facilities are leased, the district
  may delegate to the lessee the duty to establish the systems,
  methods, routines, procedures, and policies for the operation of
  the leased premise. (Acts 62nd Leg., R.S., Ch. 848, Sec. 4(d)
  (part).)
         Sec. 1111.109.  OPERATING AND MANAGEMENT CONTRACTS. The
  district through the board may:
               (1)  enter into an operating or management contract
  with any person regarding any district hospital or any part of the
  district hospital system; and
               (2)  delegate to the person the power to:
                     (A)  manage and operate the hospital or hospital
  system or a portion of the hospital or hospital system; and
                     (B)  employ and discharge employees or appoint and
  remove doctors from the staff. (Acts 62nd Leg., R.S., Ch. 848, Sec.
  4(d) (part).)
         Sec. 1111.110.  CONTRACTS FOR CARE. The board may contract
  with any lessee of the district's hospitals or any other person to
  provide hospital care to needy district inhabitants for the
  payments and terms and under the conditions the board considers to
  be in the district's best interests. (Acts 62nd Leg., R.S., Ch.
  848, Sec. 4(c) (part).)
         Sec. 1111.111.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR
  HOSPITALIZATION. (a) The board may contract with a county or
  municipality located outside the district's boundaries for the
  hospitalization of a sick or injured person of that county or
  municipality.
         (b)  The board may contract with this state or a federal
  agency for the hospitalization of a sick or injured person. (Acts
  62nd Leg., R.S., Ch. 848, Sec. 4(c) (part).)
         Sec. 1111.112.  DISPOSITION OF PROPERTY. The district may
  sell or otherwise dispose of any property, including equipment, on
  terms the board finds are in the district's best interest. (Acts
  62nd Leg., R.S., Ch. 848, Sec. 4(d) (part).)
         Sec. 1111.113.  AUTHORITY TO SUE AND BE SUED. As a
  governmental agency, the district, through the board, may sue and
  be sued in the district's own name in any court of this state. (Acts
  62nd Leg., R.S., Ch. 848, Secs. 4(c) (part), 14 (part).)
  [Sections 1111.114-1111.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 1111.151.  DEPOSITORY. (a) The board by resolution
  shall designate a bank in Walker County as the district's
  depository. A designated bank serves for two years and until a
  successor is designated.
         (b)  All district money shall be secured in the manner
  provided for securing county funds. (Acts 62nd Leg., R.S., Ch. 848,
  Sec. 9.)
  [Sections 1111.152-1111.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 1111.201.  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 62nd Leg., R.S., Ch. 848, Sec. 11(a) (part).)
         Sec. 1111.202.  TAX TO PAY GENERAL OBLIGATION BONDS. (a) An
  ad valorem tax shall be imposed at a rate sufficient to create an
  interest and sinking fund to pay the principal of and interest on
  general obligation bonds issued under Section 1111.201 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 62nd Leg., R.S., Ch. 848, Sec. 11(a) (part).)
         Sec. 1111.203.  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 in an
  election held for that purpose.
         (b)  The board may order a bond election on its own motion.
         (c)  The order calling the election must specify:
               (1)  the date of the election;
               (2)  the location of the polling places;
               (3)  the presiding election officers;
               (4)  each proposition to be voted on; and
               (5)  any other matter considered necessary or desirable
  by the board.
         (d)  Notice of a bond election shall be given by publishing a
  substantial copy of the order calling the election in a newspaper of
  general circulation in the district once each week for two
  consecutive weeks. The first publication must occur at least 14
  days before the date of the election. (Acts 62nd Leg., R.S., Ch.
  848, Secs. 5 (part), 11(a) (part).)
         Sec. 1111.204.  MATURITY OF GENERAL OBLIGATION BONDS.
  District general obligation bonds must mature not later than 40
  years after the date of issuance. (Acts 62nd Leg., R.S., Ch. 848,
  Sec. 11(a) (part).)
         Sec. 1111.205.  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
  62nd Leg., R.S., Ch. 848, Sec. 11(a) (part).)
         Sec. 1111.206.  INVESTMENT OF GENERAL OBLIGATION BOND
  PROCEEDS. Until general obligation bond proceeds are needed to
  carry out the bond purpose, the proceeds may be:
               (1)  invested in direct obligations of the United
  States; or
               (2)  placed on time deposit. (Acts 62nd Leg., R.S., Ch.
  848, Sec. 11(a) (part).)
         Sec. 1111.207.  REVENUE AND SPECIAL OBLIGATION BONDS. (a)
  The district may, without an election, issue revenue or special
  obligation bonds as authorized by the laws of this state relating to
  the issuance of revenue or special obligation bonds, including
  Sections 264.042-264.049 and 284.031, Health and Safety Code.
         (b)  Bonds issued under this section may be payable from and
  secured by revenue, encumbrances, and mortgages as authorized by
  law. Any maintenance and operating expense of the hospital system
  that is charged against the revenue of the system may include only
  items set forth and defined in the proceedings authorizing the bond
  issuance. (Acts 62nd Leg., R.S., Ch. 848, Sec. 11(b).)
  [Sections 1111.208-1111.250 reserved for expansion]
  SUBCHAPTER F. TAXES
         Sec. 1111.251.  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 tax shall be imposed for and may be pledged to:
               (1)  meet the requirements of district bonds and
  indebtedness assumed by the district;
               (2)  provide for the district's maintenance and
  operating expenses, including the costs or contract payments for
  hospital care for needy district inhabitants;
               (3)  make improvements and additions to the district's
  hospitals or hospital system; and
               (4)  acquire necessary sites for the hospitals or
  hospital system by gift, purchase, lease, or condemnation. (Acts
  62nd Leg., R.S., Ch. 848, Secs. 6 (part), 7 (part).)
         Sec. 1111.252.  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 62nd Leg., R.S., Ch. 848, Sec. 6
  (part).)
         Sec. 1111.253.  ASSESSMENT AND COLLECTION BY COUNTY TAX
  ASSESSOR-COLLECTOR.  Unless the board elects to have taxes assessed
  and collected by its own tax assessor-collector under Section
  1111.254, the tax assessor-collector of Walker County shall assess
  and collect taxes imposed by and for the district.  (Acts 62nd Leg.,
  R.S., Ch. 848, Secs. 7 (part), 7(a) (part).)
         Sec. 1111.254.  ASSESSMENT AND COLLECTION BY DISTRICT TAX
  ASSESSOR-COLLECTOR. (a) The board by majority vote may elect to
  have district taxes assessed and collected by a tax
  assessor-collector appointed by the board. An election under this
  subsection must be made before December 1 and governs the manner in
  which taxes are assessed and collected, until changed by the board.
         (b)  The district tax assessor-collector must:
               (1)  reside in the district; and
               (2)  own real property subject to district taxation.
         (c)  The board shall prescribe the district tax
  assessor-collector's term of employment and compensation.  (Acts
  62nd Leg., R.S., Ch. 848, Secs. 7 (part), 7(b) (part).)
         SECTION 1.02.  Subtitle E, Title 6, Special District Local
  Laws Code, is amended by adding Chapters 7806 and 7807 to read as follows:
 
  CHAPTER 7806.  NORTHWEST DALLAS COUNTY FLOOD CONTROL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 7806.001.  DEFINITIONS 
  Sec. 7806.002.  NATURE OF DISTRICT; POLITICAL
                   SUBDIVISION 
  Sec. 7806.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE 
  Sec. 7806.004.  DISTRICT TERRITORY 
  [Sections 7806.005-7806.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 7806.051.  COMPOSITION OF BOARD 
  Sec. 7806.052.  ELIGIBILITY 
  Sec. 7806.053.  BOARD VACANCY 
  Sec. 7806.054.  OFFICERS 
  Sec. 7806.055.  COMPENSATION 
  Sec. 7806.056.  MEETINGS 
  [Sections 7806.057-7806.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
  Sec. 7806.101.  LEVEE IMPROVEMENT DISTRICT POWERS 
  Sec. 7806.102.  RECLAMATION AND DRAINAGE 
  Sec. 7806.103.  ANNEXATION OR EXCLUSION OF LAND 
  Sec. 7806.104.  COST OF RELOCATING OR ALTERING PROPERTY 
  Sec. 7806.105.  DISTRICT ELECTIONS 
  [Sections 7806.106-7806.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 7806.151.  TAX METHOD 
  Sec. 7806.152.  TAX ASSESSMENT AND COLLECTION 
  Sec. 7806.153.  DEPOSITORY 
  Sec. 7806.154.  INVESTMENT OF DISTRICT MONEY 
  Sec. 7806.155.  EXPENDITURES 
  [Sections 7806.156-7806.200 reserved for expansion]
  SUBCHAPTER E.  BONDS
  Sec. 7806.201.  AUTHORITY TO ISSUE BONDS 
  Sec. 7806.202.  ELECTION REQUIRED 
  CHAPTER 7806.  NORTHWEST DALLAS COUNTY FLOOD CONTROL DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 7806.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a member of the board.
               (3)  "District" means the Northwest Dallas County Flood
  Control District. (Acts 69th Leg., R.S., Ch. 472, Sec. 2; New.)
         Sec. 7806.002.  NATURE OF DISTRICT; POLITICAL SUBDIVISION.
  The district is:
               (1)  a conservation and reclamation district created
  under Section 59, Article XVI, Texas Constitution; and
               (2)  a political subdivision of this state.  (Acts 69th
  Leg., R.S., Ch. 472, Sec. 1 (part).)
         Sec. 7806.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  
  The district is created to serve a public use and benefit.
         (b)  All land and other property included in the district's
  boundaries will benefit from the works and projects of the
  district.
         (c)  The creation of the district will accomplish the
  purposes of Section 59, Article XVI, Texas Constitution.  (Acts
  69th Leg., R.S., Ch. 472, Sec. 4 (part).)
         Sec. 7806.004.  DISTRICT TERRITORY. (a)  The district is
  composed of the territory described by Section 3, Chapter 472, Acts
  of the 69th Legislature, Regular Session, 1985, as that territory
  may have been modified under:
               (1)  Section 7806.103 of this chapter or its
  predecessor statute, former Section 14, Chapter 472, Acts of the
  69th Legislature, Regular Session, 1985;
               (2)  Subchapter J, Chapter 49, Water Code; or
               (3)  other law.
         (b)  The boundaries of the district form a closure.  A
  mistake in the description of the district's boundaries does not
  affect:
               (1)  the district's organization, existence, or
  validity; or
               (2)  the exercise of a power, function, or purpose
  under this chapter. (Acts 69th Leg., R.S., Ch. 472, Sec. 4 (part);
  New.)
  [Sections 7806.005-7806.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 7806.051.  COMPOSITION OF BOARD. The district is
  governed by a board of three elected directors. (Acts 69th Leg.,
  R.S., Ch. 472, Secs. 9(a), (g) (part).)
         Sec. 7806.052.  ELIGIBILITY. To serve as a director, a
  person must:
               (1)  own taxable property in the district; or
               (2)  be a resident of the district. (Acts 69th Leg.,
  R.S., Ch. 472, Sec. 9(b).)
         Sec. 7806.053.  BOARD VACANCY. A vacancy on the board shall
  be filled by the remaining directors for the unexpired term.  (Acts
  69th Leg., R.S., Ch. 472, Sec. 9(l).)
         Sec. 7806.054.  OFFICERS. (a)  The board shall elect a
  president, a vice president, and a secretary-treasurer at the first
  board meeting after each directors' election.
         (b)  The secretary-treasurer:
               (1)  is the custodian of district records; and
               (2)  shall attest to all legal documents executed by
  the district.
         (c)  The board may employ an assistant secretary to act in
  the absence of the secretary.  (Acts 69th Leg., R.S., Ch. 472, Sec.
  9(n) (part).)
         Sec. 7806.055.  COMPENSATION. Unless the board by
  resolution increases the fee to an amount authorized by Section
  49.060, Water Code, each director is entitled to receive $50 for
  each day the director is actually engaged in duties for the
  district, but not more than $200 in any month.  (Acts 69th Leg.,
  R.S., Ch. 472, Sec. 9(i) (part); New.)
         Sec. 7806.056.  MEETINGS. (a)  The board shall:
               (1)  establish a regular meeting time and place; and
               (2)  publish notice of the meeting time and place in a
  newspaper with general circulation in the district.
         (b)  The board by order may change the meeting time and place
  if the board gives notice as provided by this section.  (Acts 69th
  Leg., R.S., Ch. 472, Sec. 9(m).)
  [Sections 7806.057-7806.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 7806.101.  LEVEE IMPROVEMENT DISTRICT POWERS. The
  district may exercise all of the rights, powers, privileges, and
  functions conferred or imposed by the general law of this state
  applicable to a levee improvement district created under Section
  59, Article XVI, Texas Constitution, including those provided by
  Chapters 49 and 57, Water Code.  (Acts 69th Leg., R.S., Ch. 472,
  Sec. 5(a) (part); New.)
         Sec. 7806.102.  RECLAMATION AND DRAINAGE. (a)  The district
  may purchase, acquire, construct, own, operate, maintain, repair,
  rebuild, add to, and make improvements to any works, materials,
  facilities, plants, equipment, and improvements necessary,
  helpful, or incident to the reclamation of land in the district and
  for the proper drainage of land in the district.
         (b)  To accomplish the purposes of Subsection (a), the
  district may issue bonds and notes, enter into contracts, or incur
  obligations in the manner provided by this chapter. (Acts 69th
  Leg., R.S., Ch. 472, Sec. 6.)
         Sec. 7806.103.  ANNEXATION OR EXCLUSION OF LAND. (a) The
  district may annex land to or may, before holding a bond election,
  exclude land from the district in accordance with Subchapter J,
  Chapter 49, or Subchapter H, Chapter 54, Water Code.
         (b)  The district is not required to hold an exclusion
  hearing unless the board determines the hearing should be held.  
  (Acts 69th Leg., R.S., Ch. 472, Sec. 14; New.)
         Sec. 7806.104.  COST OF RELOCATING OR ALTERING PROPERTY. If
  the district's exercise of the powers granted under this chapter
  makes necessary the relocating, raising, rerouting, changing the
  grade of, or altering the construction of any highway, railroad,
  electric transmission or distribution line, pipeline, or telephone
  or telegraph properties or facilities, the district shall pay all
  of the actual cost of:
               (1)  the relocating, raising, rerouting, changing in
  grade, or altering of construction; and
               (2)  providing comparable replacement of facilities
  without enhancement, less the net salvage value of the facilities.
  (Acts 69th Leg., R.S., Ch. 472, Sec. 16.)
         Sec. 7806.105.  DISTRICT ELECTIONS. (a) Notice of an
  election must be published once a week for two consecutive weeks in
  a newspaper with general circulation in the district, with the
  first publication occurring at least 14 days before the date of the
  election.
         (b)  A bond or maintenance tax election may be held at the
  same time.  (Acts 69th Leg., R.S., Ch. 472, Secs. 10(a), (b)
  (part).)
  [Sections 7806.106-7806.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 7806.151.  TAX METHOD. (a) The district shall use the
  ad valorem plan of taxation.
         (b)  The board is not required to hold a hearing on the
  adoption of a plan of taxation. (Acts 69th Leg., R.S., Ch. 472,
  Sec. 8.)
         Sec. 7806.152.  TAX ASSESSMENT AND COLLECTION. The district
  may:
               (1)  employ a tax collector; or
               (2)  contract with any qualified person to assess and
  collect taxes for the district. (Acts 69th Leg., R.S., Ch. 472,
  Secs. 9(o) (part), 13(b).)
         Sec. 7806.153.  DEPOSITORY. The board may select one or more
  depositories. (Acts 69th Leg., R.S., Ch. 472, Sec. 9(o) (part).)
         Sec. 7806.154.  INVESTMENT OF DISTRICT MONEY. District
  money may be invested by the board or the board's designee under
  Subchapter E, Chapter 49, Water Code. (Acts 69th Leg., R.S., Ch.
  472, Sec. 9(p).)
         Sec. 7806.155.  EXPENDITURES. An expenditure of the
  district must be made by check signed by two directors. (Acts 69th
  Leg., R.S., Ch. 472, Sec. 9(q).)
  [Sections 7806.156-7806.200 reserved for expansion]
  SUBCHAPTER E.  BONDS
         Sec. 7806.201.  AUTHORITY TO ISSUE BONDS.  (a) The board may
  issue bonds or notes of the district for any authorized purpose or
  combination of purposes under Chapter 54, Water Code.
         (b)  Sections 49.181 and 49.182, Water Code, do not apply to
  the district.  (Acts 69th Leg., R.S., Ch. 472, Sec. 11(a).)
         Sec. 7806.202.  ELECTION REQUIRED. The district may not
  issue bonds, except refunding bonds, secured wholly or partly by
  the imposition of ad valorem taxes unless the issuance is
  authorized by a majority of the district voters voting at an
  election called for that purpose.  (Acts 69th Leg., R.S., Ch. 472, Sec. 11(b).)
 
  CHAPTER 7807. VALWOOD IMPROVEMENT AUTHORITY OF DALLAS COUNTY, TEXAS
  SUBCHAPTER A.  GENERAL PROVISIONS
  Sec. 7807.001.  DEFINITIONS 
  Sec. 7807.002.  NATURE OF DISTRICT 
  Sec. 7807.003.  DISSOLUTION AND ABOLITION OF DISTRICT 
  Sec. 7807.004.  LIBERAL CONSTRUCTION OF CHAPTER 
  [Sections 7807.005-7807.050 reserved for expansion]
  SUBCHAPTER B.  DISTRICT ADMINISTRATION
  Sec. 7807.051.  COMPOSITION OF BOARD; TERMS 
  Sec. 7807.052.  QUALIFICATIONS FOR OFFICE 
  Sec. 7807.053.  DIRECTOR'S BOND 
  Sec. 7807.054.  BOARD VACANCY 
  Sec. 7807.055.  OFFICERS AND ASSISTANTS 
  Sec. 7807.056.  SECRETARY'S DUTIES 
  Sec. 7807.057.  COMPENSATION 
  Sec. 7807.058.  BOARD PROCEDURES 
  Sec. 7807.059.  MEETING PLACE 
  [Sections 7807.060-7807.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
  Sec. 7807.101.  LEVEE IMPROVEMENT DISTRICT POWERS 
  Sec. 7807.102.  EXCLUSION OR ANNEXATION OF LAND 
  Sec. 7807.103.  EMINENT DOMAIN 
  Sec. 7807.104.  COST OF RELOCATING OR ALTERING PROPERTY 
  Sec. 7807.105.  CONTRACTS FOR FACILITIES AND
                   IMPROVEMENTS; ELECTION NOT REQUIRED 
  Sec. 7807.106.  CONSTRUCTION CONTRACTS: MUNICIPAL
                   APPROVAL REQUIRED 
  Sec. 7807.107.  CONSTRUCTION CONTRACTS: AWARD 
  Sec. 7807.108.  CONSTRUCTION CONTRACTS: EXECUTION AND
                   AVAILABILITY 
  Sec. 7807.109.  CONSTRUCTION CONTRACTS: PAYMENT 
  Sec. 7807.110.  FLOOD HAZARD AREAS 
  Sec. 7807.111.  SETBACK LINES 
  Sec. 7807.112.  DISTRICT ELECTIONS 
  [Sections 7807.113-7807.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 7807.151.  TAX METHOD 
  Sec. 7807.152.  TAX ASSESSOR AND COLLECTOR 
  Sec. 7807.153.  DEPOSITORY 
  Sec. 7807.154.  INVESTMENT OF DISTRICT MONEY 
  [Sections 7807.155-7807.200 reserved for expansion]
  SUBCHAPTER E. BONDS
  Sec. 7807.201.  AUTHORITY TO ISSUE BONDS 
  Sec. 7807.202.  FORM OF BONDS 
  Sec. 7807.203.  MATURITY 
  Sec. 7807.204.  ELECTION REQUIRED 
  Sec. 7807.205.  USE OF BOND PROCEEDS 
  Sec. 7807.206.  TAXES FOR BONDS 
  Sec. 7807.207.  BOND ANTICIPATION NOTES AND PRELIMINARY
                   BONDS 
  Sec. 7807.208.  REFUNDING BONDS 
  CHAPTER 7807. VALWOOD IMPROVEMENT AUTHORITY OF DALLAS COUNTY, TEXAS
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 7807.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a member of the board.
               (3)  "District" means the Valwood Improvement
  Authority of Dallas County, Texas.  (Acts 64th Leg., R.S., Ch. 201,
  Sec. 2; New.)
         Sec. 7807.002.  NATURE OF DISTRICT. The district is a
  conservation and reclamation district established under Section
  59, Article XVI, Texas Constitution.  (Acts 64th Leg., R.S., Ch.
  201, Sec. 1 (part).)
         Sec. 7807.003.  DISSOLUTION AND ABOLITION OF DISTRICT.  The
  Cities of Carrollton and Farmers Branch, and any other municipality
  in which the district is located, may dissolve and abolish the
  district at the municipalities' discretion on written notice of the
  dissolution and abolition to the board, in the same manner and on
  the same terms and obligations as prescribed by Section 43.076,
  Local Government Code.  (Acts 64th Leg., R.S., Ch. 201, Sec. 11.)
         Sec. 7807.004.  LIBERAL CONSTRUCTION OF CHAPTER. This
  chapter shall be liberally construed to effect the purposes,
  powers, rights, and functions stated in this chapter. (Acts 71st
  Leg., R.S., Ch. 588, Sec. 4 (part).)
  [Sections 7807.005-7807.050 reserved for expansion]
  SUBCHAPTER B.  DISTRICT ADMINISTRATION
         Sec. 7807.051.  COMPOSITION OF BOARD; TERMS.  (a)  The board
  consists of seven directors.
         (b)  Directors serve staggered two-year terms and are
  appointed as follows:
               (1)  the Commissioners Court of Dallas County shall
  appoint one director to a term expiring each even-numbered year;
               (2)  the city council of the City of Carrollton shall
  appoint one director to a term expiring each even-numbered year and
  two directors to terms expiring each odd-numbered year; and
               (3)  the city council of the City of Farmers Branch
  shall appoint one director to a term expiring each even-numbered
  year and two directors to terms expiring each odd-numbered year.  
  (Acts 64th Leg., R.S., Ch. 201, Sec. 3 (part).)
         Sec. 7807.052.  QUALIFICATIONS FOR OFFICE.  (a)  A director
  must own land in the district subject to taxation at the time the
  person qualifies for office.
         (b)  Each director must be fully qualified to serve as
  director before taking office.  (Acts 64th Leg., R.S., Ch. 201, Sec.
  3 (part).)
         Sec. 7807.053.  DIRECTOR'S BOND.  (a) Each director shall
  qualify by giving bond in the amount of $5,000 for the faithful
  performance of the director's duties.
         (b)  The bond must be:
               (1)  approved by the board; and
               (2)  recorded in the official bond records of the
  county clerk of Dallas County.
         (c)  Each director shall file the bond as soon as practicable
  after the director's appointment.  (Acts 64th Leg., R.S., Ch. 201,
  Sec. 3 (part).)
         Sec. 7807.054.  BOARD VACANCY.  (a)  Except as provided by
  Subsection (b) or (c), a vacancy on the board shall be filled by
  appointment to the unexpired term by the governing body that
  appointed the director in whose position a vacancy exists.
         (b)  If under Subsection (a) the governing body does not fill
  a vacancy within 60 days after the date the position became vacant,
  the unexpired term of the position shall be filled by appointment by
  the remaining directors.  The Commissioners Court of Dallas County,
  after consulting with the Cities of Carrollton and Farmers Branch,
  shall appoint directors to fill all vacancies on the board when the
  number of directors is fewer than four.
         (c)  If any director ceases to possess the qualifications
  prescribed by Section 7807.052, the remaining directors shall
  declare the person's office vacant and appoint a successor. (Acts
  64th Leg., R.S., Ch. 201, Sec. 3 (part).)
         Sec. 7807.055.  OFFICERS AND ASSISTANTS.  (a)  The board
  shall annually elect a president, one or more vice presidents, a
  secretary, and a treasurer.
         (b)  The board may appoint one or more assistant secretaries
  and an assistant treasurer.  An assistant secretary or assistant
  treasurer is not required to be a director.  (Acts 64th Leg., R.S.,
  Ch. 201, Secs. 3 (part), 4 (part).)
         Sec. 7807.056.  SECRETARY'S DUTIES.  The board secretary or
  an assistant secretary shall keep the minutes of the board meetings
  and all official records of the board and may certify to any action
  the board takes.  (Acts 64th Leg., R.S., Ch. 201, Sec. 3 (part).)
         Sec. 7807.057.  COMPENSATION.  Unless the board by
  resolution increases the fee to an amount authorized by Section
  49.060, Water Code, each director shall receive a per diem payment
  of $50, not to exceed a maximum payment of $200 per month. (Acts
  64th Leg., R.S., Ch. 201, Sec. 3 (part); New.)
         Sec. 7807.058.  BOARD PROCEDURES.  The board shall designate
  the proper execution of all contracts, signing of checks, or
  handling of any other matters entered into by the board as shown in
  the district's official minutes.  (Acts 64th Leg., R.S., Ch. 201,
  Sec. 3 (part).)
         Sec. 7807.059.  MEETING PLACE.  (a)  The board shall
  designate a meeting place or places.
         (b)  Any meeting place of the district is a public place for
  matters pertaining to the district's business.
         (c)  The board shall give notice of the meeting place and of
  any changes in the meeting place by publishing the location in a
  newspaper of general circulation in Dallas County.  (Acts 64th
  Leg., R.S., Ch. 201, Sec. 4 (part).)
  [Sections 7807.060-7807.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 7807.101.  LEVEE IMPROVEMENT DISTRICT POWERS.  (a)  The
  district has all of the rights, powers, privileges, and functions
  provided by the general law of this state applicable to a levee
  improvement district created under the authority of Section 59,
  Article XVI, Texas Constitution, including those conferred by
  Chapters 49 and 57, Water Code.
         (b)  In the accomplishment of the district's purposes, the
  district may issue bonds, enter into contracts, or incur debt in the
  manner prescribed by this chapter.  (Acts 64th Leg., R.S., Ch. 201,
  Sec. 1 (part); New.)
         Sec. 7807.102.  EXCLUSION OR ANNEXATION OF LAND.  (a)  The
  board may exclude land from the district or add land to the district
  in accordance with Subchapter J, Chapter 49, or Subchapter H,
  Chapter 54, Water Code.
         (b)  Land may not be added to the district until the board has
  obtained the written consent of the Cities of Carrollton and
  Farmers Branch to approve any petition for annexation.  (Acts 64th
  Leg., R.S., Ch. 201, Sec. 6.)
         Sec. 7807.103.  EMINENT DOMAIN.  (a)  The district may
  exercise the power of eminent domain provided by Chapter 49, Water
  Code.
         (b)  The district may not exercise the power of eminent
  domain without first obtaining the approval of any municipality in
  which the subject property is located.  (Acts 64th Leg., R.S., Ch.
  201, Sec. 10 (part).)
         Sec. 7807.104.  COST OF RELOCATING OR ALTERING PROPERTY.
  (a) In this section, "sole expense" means the actual cost of
  relocating, raising, lowering, rerouting, changing the grade of, or
  altering the construction of a facility described by Subsection (b)
  in providing comparable replacement without enhancement of the
  facility, after deducting from that cost the net salvage value of
  the old facility.
         (b)  If the district's exercise of its power of eminent
  domain, police power, or any other power conferred by this chapter
  makes necessary the relocation, raising, lowering, rerouting,
  changing the grade, or alteration of the construction of a
  railroad, an electric transmission, telegraph, or telephone line,
  property, or facility, or a pipeline, the necessary action shall be
  accomplished at the sole expense of the district.  (Acts 64th Leg.,
  R.S., Ch. 201, Sec. 10 (part).)
         Sec. 7807.105.  CONTRACTS FOR FACILITIES AND IMPROVEMENTS;
  ELECTION NOT REQUIRED.  (a) The district may enter into a contract
  with the United States, the City of Carrollton, the City of Farmers
  Branch, another public body, or an individual, corporation, or
  other entity for the operation and maintenance of or construction
  of any facility or improvement authorized by this chapter.
         (b)  The district is not required to hold an election to
  approve a contract described by Subsection (a).  (Acts 64th Leg.,
  R.S., Ch. 201, Sec. 9(a) (part).)
         Sec. 7807.106.  CONSTRUCTION CONTRACTS: MUNICIPAL APPROVAL
  REQUIRED.  Plans and specifications for a construction contract
  must be approved, before the contract is awarded, by any
  municipality in which the improvements or facilities are to be
  constructed.  (Acts 64th Leg., R.S., Ch. 201, Sec. 9(a) (part).)
         Sec. 7807.107.  CONSTRUCTION CONTRACTS: AWARD.  (a)  The
  board shall award all construction contracts.
         (b)  The board may award contracts to construct improvements
  included in the approved plan of reclamation for the district at the
  times and in the amounts that the board considers in the best
  interest of the district.  (Acts 64th Leg., R.S., Ch. 201, Sec. 9(b)
  (part).)
         Sec. 7807.108.  CONSTRUCTION CONTRACTS: EXECUTION AND
  AVAILABILITY.  (a)  A contract under Section 7807.107 must be in
  writing and be signed by:
               (1)  the contractor; and
               (2)  the president and secretary of the board.
         (b)  A copy of each construction contract shall be kept in
  the district's records and be subject to public inspection. (Acts
  64th Leg., R.S., Ch. 201, Sec. 9(b) (part).)
         Sec. 7807.109.  CONSTRUCTION CONTRACTS: PAYMENT.  (a) A
  contract under Section 7807.107 may be paid for in partial payments
  as the work progresses, based on estimates approved by the
  district's engineer.
         (b)  The payments may not exceed 90 percent of the amount due
  at the time of such payments as shown by approved estimates, except
  that on certification by the district's engineer that the project
  is substantially complete, the board may authorize payment of not
  to exceed 95 percent of the amount due at the time of such
  certification before the acceptance of the job and the certificate
  of completion of the job.  (Acts 64th Leg., R.S., Ch. 201, Sec. 9(b)
  (part).)
         Sec. 7807.110.  FLOOD HAZARD AREAS.  (a)  The board shall
  designate flood hazard areas in the district if the board finds that
  the public health and safety and the purposes of Section 59, Article
  XVI, Texas Constitution, will be promoted by the designation.
         (b)  The area to be included in a flood hazard area shall be
  described by field notes, map, or both.
         (c)  Before designating a flood hazard area, the board shall
  hold a public hearing. The board must publish notice of the hearing
  in a newspaper having general circulation in Dallas County at least
  15 days before the hearing. Any interested person is entitled to an
  opportunity to be heard.
         (d)  The board may, following notice and a hearing as
  required by Subsection (c), amend the designated flood hazard areas
  as necessary.  (Acts 64th Leg., R.S., Ch. 201, Sec. 13.)
         Sec. 7807.111.  SETBACK LINES.  (a)  The board shall
  establish building setback lines along any waterway in the
  boundaries of the district if the board finds the setback lines are
  needed to protect the public health and safety and to accomplish the
  purposes of Section 59, Article XVI, Texas Constitution.
         (b)  After the establishment of building setback lines, no
  structure may be erected within the setback lines.  In any
  subsequent eminent domain proceeding instituted by the district to
  acquire the area within the setback lines, it shall constitute
  prima facie showing that the person erecting the structure did so at
  the person's own risk with knowledge of:
               (1)  the fact that erecting the structure interfered
  with the district's setback provisions; and
               (2)  the district's right to remove the structure
  erected after the establishment of the setback lines without
  payment of the value of the structure.
         (c)  The area included within the building setback lines
  shall be described by field notes, map or plat, or both.  A
  certified copy of the description shall be filed for record
  immediately with the county clerk of Dallas County.
         (d)  Before establishing building setback lines, the board
  shall hold a public hearing.  The board must:
               (1)  publish notice of the hearing in a newspaper
  having general circulation in Dallas County at least 15 days before
  the hearing; and
               (2)  mail notice of the hearing to the latest available
  address for each landowner affected by the proposed setback lines.
         (e)  After establishing building setback lines, the board
  may, following notice and a hearing as required by Subsection (d),
  amend or grant exceptions to the setback lines.  (Acts 64th Leg.,
  R.S., Ch. 201, Sec. 12.)
         Sec. 7807.112.  DISTRICT ELECTIONS.  (a) The board shall
  order each election the district is required to hold.
         (b)  Notice of a district election must be published once a
  week for two consecutive weeks in a newspaper with general
  circulation in Dallas County, with the first publication occurring
  at least 14 days before the date of the election.
         (c)  A district election may be held separately or at the
  same time as an election for another purpose, including a
  maintenance tax election that may be held on the same day as a bond
  election. An election held at the same time as an election for
  another purpose may be ordered by the board in a single election
  order, and the results may be canvassed in a single order. (Acts
  64th Leg., R.S., Ch. 201, Sec. 5 (part).)
  [Sections 7807.113-7807.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 7807.151.  TAX METHOD.  (a)  The district shall use the
  ad valorem plan of taxation.
         (b)  Subchapter G, Chapter 54, Water Code, applies to all
  matters relating to the imposition of district taxes.  (Acts 64th
  Leg., R.S., Ch. 201, Sec. 8 (part).)
         Sec. 7807.152.  TAX ASSESSOR AND COLLECTOR.  (a)  The board
  shall appoint a tax assessor and collector and may appoint deputies
  that the board considers necessary.
         (b)  The tax assessor and collector and each deputy shall
  qualify by executing a bond for $10,000 conditioned on the faithful
  performance of the person's duties. The bond must be payable to the
  district and approved by the board.
         (c)  The board shall set the compensation of the tax assessor
  and collector and any deputies.  (Acts 64th Leg., R.S., Ch. 201,
  Sec. 4 (part).)
         Sec. 7807.153.  DEPOSITORY.  (a)  The district's treasurer
  shall see that all district money is deposited in the depository
  bank or banks designated by the board as the official depository of
  the district.
         (b)  To the extent that money in the depository bank is not
  insured by the Federal Deposit Insurance Corporation, the money
  must be secured in the manner provided by law for the security of
  county funds.  (Acts 64th Leg., R.S., Ch. 201, Sec. 4 (part).)
         Sec. 7807.154.  INVESTMENT OF DISTRICT MONEY.  District
  money may be invested by the board, the treasurer, or another
  qualified representative of the district in direct or indirect
  obligations of the United States, the state, or any political
  subdivision of the state, or may be placed in certificates of
  deposit of state or national banks or savings and loan associations
  in this state, if that money is secured in the manner provided for
  the security of county funds.  (Acts 64th Leg., R.S., Ch. 201, Sec.
  4 (part).)
  [Sections 7807.155-7807.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 7807.201.  AUTHORITY TO ISSUE BONDS. The board may
  issue district tax bonds to acquire money to carry out any power or
  accomplish any purpose conferred by this chapter. The bonds may be
  authorized by a board order.  (Acts 64th Leg., R.S., Ch. 201, Secs.
  7(a) (part), (b) (part).)
         Sec. 7807.202.  FORM OF BONDS. District bonds shall be
  signed and executed as provided by the board in the order
  authorizing the issuance of the bonds.  (Acts 64th Leg., R.S., Ch.
  201, Sec. 7(a) (part).)
         Sec. 7807.203.  MATURITY. District bonds must mature not
  later than 40 years after their date of issuance.  (Acts 64th Leg.,
  R.S., Ch. 201, Sec. 7(a) (part).)
         Sec. 7807.204.  ELECTION REQUIRED.  (a)  Bonds, other than
  refunding bonds, may not be issued unless authorized by a majority
  of the votes cast in an election held to determine whether the bonds
  should be issued and whether a tax should be imposed to pay the
  principal of and interest on the bonds.
         (b)  The board may order and provide notice of an election
  under this section.
         (c)  In addition to other requirements, the ballot shall be
  printed to provide for voting for or against the proposition:  "The
  issuance of bonds and the imposition of a tax in payment thereof."  
  (Acts 64th Leg., R.S., Ch. 201, Sec. 7(b) (part).)
         Sec. 7807.205.  USE OF BOND PROCEEDS. (a) The board may set
  aside part of the bond proceeds to:
               (1)  pay interest on the bonds and administrative and
  operational expenses expected to accrue during the period of
  construction of the improvements or facilities; and
               (2)  create reserves for the payment of the principal
  of and interest on the bonds.
         (b)  For purposes of Subsection (a), the period of
  construction may not exceed two years.  (Acts 64th Leg., R.S., Ch.
  201, Sec. 7(c) (part).)
         Sec. 7807.206.  TAXES FOR BONDS.  The board of directors may
  impose continuing direct annual ad valorem taxes on all taxable
  property in the district sufficient to:
               (1)  provide for the payment of interest on bonds
  issued under this subchapter as the interest accrues; and
               (2)  create and provide a sinking fund for the payment
  of principal of the bonds as the principal matures.  (Acts 64th
  Leg., R.S., Ch. 201, Sec. 7(a) (part).)
         Sec. 7807.207.  BOND ANTICIPATION NOTES AND PRELIMINARY
  BONDS.  (a)  The district may issue either bond anticipation notes
  or preliminary bonds, which need not be designated as such, to
  provide a fund to pay:
               (1)  the cost of making surveys and investigations,
  attorneys' fees, and engineers' work;
               (2)  the cost of issuing bonds; and
               (3)  all other costs and expenses incident to the
  organization of the district and the district's operation in
  investigating and determining plans for the district's plant and
  improvements.
         (b)  Preliminary bonds shall be voted and authorized in the
  manner and under the same provisions applicable to the district's
  construction bonds and shall be of equal dignity with those
  construction bonds.
         (c)  The district may issue bond anticipation notes as
  provided by Section 49.154(c), Water Code.  These notes shall be
  sold on the best terms and for the best price possible.  (Acts 64th
  Leg., R.S., Ch. 201, Secs. 7(d) (part), (e) (part).)
         Sec. 7807.208.  REFUNDING BONDS.  (a)  The board may issue
  refunding bonds to refund or refinance all or part of the district's
  outstanding bonds and matured but unpaid interest coupons.
         (b)  District refunding bonds must mature not later than 40
  years after their date of issuance.  (Acts 64th Leg., R.S., Ch. 201,
  Sec. 7(g) (part).)
         SECTION 1.03.  Subtitle H, Title 6, Special District Local
  Laws Code, is amended by adding Chapters 8833, 8835, 8838, 8839,
  8841, 8843, 8845, 8851, 8854, and 8857 to read as follows:
  CHAPTER 8833.  GUADALUPE COUNTY GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 8833.001.  DEFINITIONS 
  Sec. 8833.002.  NATURE OF DISTRICT 
  Sec. 8833.003.  FINDINGS OF PUBLIC USE AND BENEFIT 
  Sec. 8833.004.  DISTRICT TERRITORY 
  [Sections 8833.005-8833.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
  Sec. 8833.051.  COMPOSITION OF BOARD; SINGLE-MEMBER
                   DISTRICTS; TERMS 
  Sec. 8833.052.  ELECTION DATE 
  Sec. 8833.053.  QUALIFICATIONS FOR ELECTION 
  [Sections 8833.054-8833.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 8833.101.  GROUNDWATER CONSERVATION DISTRICT
                   POWERS AND DUTIES 
  Sec. 8833.102.  LIMITATIONS ON DISTRICT POWERS 
  CHAPTER 8833.  GUADALUPE COUNTY GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8833.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Guadalupe County Groundwater
  Conservation District. (Acts 75th Leg., R.S., Ch. 1066, Sec. 2;
  New.)
         Sec. 8833.002.  NATURE OF DISTRICT. The district is a
  groundwater conservation district in Guadalupe County created
  under and essential to accomplish the purposes of Section 59,
  Article XVI, Texas Constitution. (Acts 75th Leg., R.S., Ch. 1066,
  Secs. 1(a) (part), (b).)
         Sec. 8833.003.  FINDINGS OF PUBLIC USE AND BENEFIT.  (a) The
  district is created to serve a public use and benefit.
         (b)  All land and other property included in the district
  will benefit from the works and projects accomplished by the
  district under the powers conferred by Section 59, Article XVI,
  Texas Constitution.  (Acts 75th Leg., R.S., Ch. 1066, Sec. 4.)
         Sec. 8833.004.  DISTRICT TERRITORY. The district is
  composed of the territory described by Section 3, Chapter 1066,
  Acts of the 75th Legislature, Regular Session, 1997, as that
  territory may have been modified under:
               (1)  Subchapter J, Chapter 36, Water Code; or
               (2)  other law. (New.)
  [Sections 8833.005-8833.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8833.051.  COMPOSITION OF BOARD; SINGLE-MEMBER
  DISTRICTS; TERMS. (a) The district is governed by a board of seven
  directors elected from single-member districts determined by the
  Guadalupe County Commissioners Court.
         (b)  Section 36.059(b), Water Code, does not apply to the
  district.
         (c)  Directors serve staggered four-year terms.  (Acts 75th
  Leg., R.S., Ch. 1066, Secs. 6(a), (d), (i).)
         Sec. 8833.052.  ELECTION DATE. On the uniform election date
  in November of each odd-numbered year, the district shall hold an
  election in the district to elect the appropriate number of
  directors.  (Acts 75th Leg., R.S., Ch. 1066, Sec. 9.)
         Sec. 8833.053.  QUALIFICATIONS FOR ELECTION. To be
  qualified to be elected as a director, a person must be a registered
  voter in the single-member district that the person would
  represent. (Acts 75th Leg., R.S., Ch. 1066, Sec. 6(h).)
  [Sections 8833.054-8833.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8833.101.  GROUNDWATER CONSERVATION DISTRICT POWERS
  AND DUTIES. Except as provided by Section 8833.102, the district
  has the rights, powers, privileges, functions, and duties provided
  by the general law of this state, including Chapters 36 and 49,
  Water Code, applicable to groundwater conservation districts
  created under Section 59, Article XVI, Texas Constitution. (Acts
  75th Leg., R.S., Ch. 1066, Sec. 5(a) (part).)
         Sec. 8833.102.  LIMITATIONS ON DISTRICT POWERS. The
  district may not impose:
               (1)  a tax; or
               (2)  a fee on a well used exclusively for domestic or
  livestock watering purposes. (Acts 75th Leg., R.S., Ch. 1066, Sec. 5(c).)
 
  CHAPTER 8835. BRAZOS VALLEY GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 8835.001.  DEFINITIONS 
  Sec. 8835.002.  NATURE OF DISTRICT 
  Sec. 8835.003.  FINDINGS OF PUBLIC USE AND BENEFIT 
  Sec. 8835.004.  DISTRICT TERRITORY 
  [Sections 8835.005-8835.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
  Sec. 8835.051.  COMPOSITION OF BOARD; TERMS 
  Sec. 8835.052.  APPOINTMENT OF DIRECTORS 
  Sec. 8835.053.  BOARD VACANCY 
  Sec. 8835.054.  COMPENSATION; EXPENSES 
  Sec. 8835.055.  VOTE REQUIRED FOR BOARD ACTION 
  [Sections 8835.056-8835.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 8835.101.  GROUNDWATER CONSERVATION DISTRICT
                   POWERS AND DUTIES 
  Sec. 8835.102.  GROUNDWATER WELLS UNDER JURISDICTION OF
                   RAILROAD COMMISSION 
  Sec. 8835.103.  LIMITATION ON POWER OF EMINENT DOMAIN 
  [Sections 8835.104-8835.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 8835.151.  FEES 
  Sec. 8835.152.  AUTHORITY TO ISSUE BONDS AND NOTES 
  Sec. 8835.153.  LIMITATION ON AUTHORITY TO IMPOSE TAXES 
  CHAPTER 8835. BRAZOS VALLEY GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8835.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Brazos Valley Groundwater
  Conservation District. (Acts 76th Leg., R.S., Ch. 1331, Sec. 3;
  Acts 77th Leg., R.S., Ch. 966, Sec. 3.1302; Acts 77th Leg., R.S.,
  Ch. 1307, Sec. 2.02; New.)
         Sec. 8835.002.  NATURE OF DISTRICT. The district is a
  groundwater conservation district created under and essential to
  accomplish the purposes of Section 59, Article XVI, Texas
  Constitution. (Acts 76th Leg., R.S., Ch. 1331, Secs. 1(a) (part),
  (c).)
         Sec. 8835.003.  FINDINGS OF PUBLIC USE AND BENEFIT. (a) The
  district is created to serve a public use and benefit.
         (b)  All land and other property included in the district
  will benefit from the works and projects accomplished by the
  district under the powers conferred by Section 59, Article XVI,
  Texas Constitution. (Acts 76th Leg., R.S., Ch. 1331, Sec. 4.)
         Sec. 8835.004.  DISTRICT TERRITORY. The district's
  boundaries are coextensive with the boundaries of Robertson and
  Brazos Counties unless the district's territory has been modified
  under:
               (1)  Subchapter J, Chapter 36, Water Code; or
               (2)  other law. (Acts 76th Leg., R.S., Ch. 1331, Sec.
  2(a) (part); Acts 77th Leg., R.S., Ch. 966, Sec. 3.1303; Acts 77th
  Leg., R.S., Ch. 1307, Sec. 2.03; New.)
  [Sections 8835.005-8835.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8835.051.  COMPOSITION OF BOARD; TERMS.  (a) The
  district is governed by a board of eight directors.
         (b)  Directors serve staggered four-year terms.
         (c)  A director may serve consecutive terms. (Acts 77th Leg.,
  R.S., Ch. 966, Secs. 3.1309(a), (c), (f); Acts 77th Leg., R.S., Ch.
  1307, Secs. 2.10(a), (c), (f).)
         Sec. 8835.052.  APPOINTMENT OF DIRECTORS. (a)  The
  Robertson County Commissioners Court shall appoint four directors,
  of whom:
               (1)  one must represent municipal interests in the
  county;
               (2)  one must be a bona fide agricultural producer who
  derives a substantial portion of the producer's income from
  agriculture in the county;
               (3)  one must be a director or employee of a rural water
  supply corporation in the county; and
               (4)  one must represent active industrial interests in
  the county.
         (b)  The Brazos County Commissioners Court shall appoint two
  directors, of whom:
               (1)  one must be a bona fide agricultural producer who
  derives a substantial portion of the producer's income from
  agriculture in the county; and
               (2)  one must be a director or employee of a rural water
  supply corporation in the county.
         (c)  The governing body of the City of Bryan, with the
  approval of the Brazos County Commissioners Court, shall appoint
  one director.
         (d)  The governing body of the City of College Station, with
  the approval of the Brazos County Commissioners Court, shall
  appoint one director.
         (e)  Every two years after January 1 of the second year
  following the district's confirmation, the appropriate governing
  body shall appoint the appropriate number of directors. (Acts 77th
  Leg., R.S., Ch. 966, Secs. 3.1310(c), (d), (f) (part); Acts 77th
  Leg., R.S., Ch. 1307, Secs. 2.11(a), (b), (c), (d), (f) (part).)
         Sec. 8835.053.  BOARD VACANCY. If there is a vacancy on the
  board, the governing body of the entity that appointed the director
  who vacated the office shall appoint a director to serve the
  remainder of the term. (Acts 77th Leg., R.S., Ch. 966, Sec.
  3.1309(g); Acts 77th Leg., R.S., Ch. 1307, Sec. 2.10(g).)
         Sec. 8835.054.  COMPENSATION; EXPENSES. (a) A director is
  not entitled to receive compensation for serving as a director.
         (b)  A director may be reimbursed for actual, reasonable
  expenses incurred in discharging official duties. (Acts 77th Leg.,
  R.S., Ch. 966, Sec. 3.1309(h); Acts 77th Leg., R.S., Ch. 1307, Sec.
  2.10(h).)
         Sec. 8835.055.  VOTE REQUIRED FOR BOARD ACTION. A majority
  vote of a quorum of the board is required for board action. If there
  is a tie vote, the proposed action fails. (Acts 77th Leg., R.S.,
  Ch. 966, Sec. 3.1309(i); Acts 77th Leg., R.S., Ch. 1307, Sec.
  2.10(i).)
  [Sections 8835.056-8835.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8835.101.  GROUNDWATER CONSERVATION DISTRICT POWERS
  AND DUTIES. Except as provided by this chapter, the district has
  the rights, powers, privileges, functions, and duties provided by
  the general law of this state, including Chapter 36, Water Code,
  applicable to groundwater conservation districts created under
  Section 59, Article XVI, Texas Constitution. (Acts 77th Leg.,
  R.S., Ch. 966, Sec. 3.1304(a) (part); Acts 77th Leg., R.S., Ch.
  1307, Sec. 2.04(a) (part).)
         Sec. 8835.102.  GROUNDWATER WELLS UNDER JURISDICTION OF
  RAILROAD COMMISSION. (a) In this section, "railroad commission"
  means the Railroad Commission of Texas.
         (b)  A groundwater well drilled or operated in the district
  under a permit issued by the railroad commission is under the
  exclusive jurisdiction of the railroad commission and is exempt
  from regulation by the district.
         (c)  Groundwater produced in an amount authorized by a
  railroad commission permit may be used in or exported from the
  district without a permit from the district.
         (d)  To the extent groundwater production exceeds railroad
  commission authorization, the holder of the railroad commission
  permit:
               (1)  must apply to the district for the appropriate
  permit for the excess production; and
               (2)  is subject to the applicable regulatory fees.
         (e)  Groundwater produced from a well under the jurisdiction
  of the railroad commission is generally exempt from water district
  fees. However, the district may impose either a pumping fee or an
  export fee on groundwater produced from an otherwise exempt mine
  well that is used for municipal purposes or by a public utility. A
  fee imposed by the district under this subsection may not exceed the
  fee imposed on other groundwater producers in the district. (Acts
  77th Leg., R.S., Ch. 966, Sec. 3.1307; Acts 77th Leg., R.S., Ch.
  1307, Sec. 2.07; New.)
         Sec. 8835.103.  LIMITATION ON POWER OF EMINENT DOMAIN. The
  district does not have the power of eminent domain granted by
  Section 36.105, Water Code. (Acts 77th Leg., R.S., Ch. 966, Sec.
  3.1304(b) (part); Acts 77th Leg., R.S., Ch. 1307, Sec. 2.04(b)
  (part).)
  [Sections 8835.104-8835.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8835.151.  FEES. (a)  The board by rule may impose a
  reasonable fee on each well that is not exempt from regulation by
  the district and for which a permit is issued by the district.  The
  fee may be based on:
               (1)  the size of column pipe used by the well; or
               (2)  the actual, authorized, or anticipated amount of
  water to be withdrawn from the well.
         (b)  The board shall base the amount of the initial fee on the
  amount of water to be withdrawn from the well.  The initial fee:
               (1)  may not exceed:
                     (A)  $0.25 for each acre-foot for water used to
  irrigate agricultural crops or operate existing steam electric
  stations; or
                     (B)  $0.0425 for each thousand gallons for water
  used for any other purpose; and
               (2)  may be increased at a cumulative rate not to exceed
  three percent for each year.
         (c)  In addition to the fee authorized under Subsection (b),
  the district may impose a reasonable fee or surcharge for an export
  fee using one of the following methods:
               (1)  a fee negotiated between the district and the
  transporter; or
               (2)  a combined production and export fee not to exceed
  17 cents for each thousand gallons for water used.
         (d)  Fees authorized by this section may be:
               (1)  assessed annually; and
               (2)  used to pay the cost of operating the district. 
  (Acts 77th Leg., R.S., Ch. 966, Sec. 3.1306; Acts 77th Leg., R.S.,
  Ch. 1307, Sec. 2.06.)
         Sec. 8835.152.  AUTHORITY TO ISSUE BONDS AND NOTES. The
  district may issue bonds and notes under Subchapter F, Chapter 36,
  Water Code, not to exceed $500,000 of total indebtedness at any
  time.  (Acts 77th Leg., R.S., Ch. 966, Sec. 3.1305; Acts 77th Leg.,
  R.S., Ch. 1307, Sec. 2.05.)
         Sec. 8835.153.  LIMITATION ON AUTHORITY TO IMPOSE TAXES.
  The district does not have the authority relating to taxes that is
  granted by Sections 36.020 and 36.201-36.204, Water Code. (Acts
  77th Leg., R.S., Ch. 966, Sec. 3.1304(b) (part); Acts 77th Leg., R.S., Ch. 1307, Sec. 2.04(b) (part).)
 
  CHAPTER 8838. COW CREEK GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 8838.001.  DEFINITIONS 
  Sec. 8838.002.  NATURE OF DISTRICT 
  Sec. 8838.003.  FINDINGS OF PUBLIC USE AND BENEFIT 
  Sec. 8838.004.  DISTRICT TERRITORY 
  Sec. 8838.005.  CONFLICTS WITH OTHER LAW 
  [Sections 8838.006-8838.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
  Sec. 8838.051.  COMPOSITION OF BOARD; TERMS 
  Sec. 8838.052.  ELECTION OF DIRECTORS 
  Sec. 8838.053.  ELECTION DATE 
  Sec. 8838.054.  ELIGIBILITY 
  Sec. 8838.055.  BOARD VACANCY 
  [Sections 8838.056-8838.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 8838.101.  GROUNDWATER CONSERVATION DISTRICT
                   POWERS AND DUTIES 
  Sec. 8838.102.  PROGRAMS TO PRESERVE AND PROTECT
                   GROUNDWATER RESOURCES 
  Sec. 8838.103.  CONTRACTS WITH OTHER GOVERNMENTAL
                   BODIES 
  Sec. 8838.104.  WELL PERMITS; AUTHORIZATION OF EXEMPT
                   WELLS 
  Sec. 8838.105.  BEST MANAGEMENT PRACTICES FOR WATER
                   RESOURCE MANAGEMENT 
  Sec. 8838.106.  LIMITATIONS ON DISTRICT POWERS 
  [Sections 8838.107-8838.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 8838.151.  FEES 
  Sec. 8838.152.  AD VALOREM TAX EXEMPTION FOR PROPERTY
                   ON WHICH WATER CONSERVATION
                   INITIATIVE HAS BEEN IMPLEMENTED 
  Sec. 8838.153.  LIMITATION ON TAXES 
  CHAPTER 8838. COW CREEK GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8838.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Cow Creek Groundwater
  Conservation District.
               (4)  "Well" means an excavation drilled or dug into the
  ground that may intercept or penetrate a water-bearing stratum or
  formation. (Acts 76th Leg., R.S., Ch. 1331, Sec. 3; Acts 77th Leg.,
  R.S., Ch. 966, Secs. 3.0102(1), (3); Acts 77th Leg., R.S., Ch. 1349,
  Sec. 2(1); New.)
         Sec. 8838.002.  NATURE OF DISTRICT. The district is a
  groundwater conservation district created under and essential to
  accomplish the purposes of Section 59, Article XVI, Texas
  Constitution. (Acts 76th Leg., R.S., Ch. 1331, Secs. 1(a) (part),
  (c).)
         Sec. 8838.003.  FINDINGS OF PUBLIC USE AND BENEFIT.
  (a)  The district is created to serve a public use and benefit.
         (b)  All land and other property included in the district
  will benefit from the works and projects accomplished by the
  district under the powers conferred by Section 59, Article XVI,
  Texas Constitution. (Acts 76th Leg., R.S., Ch. 1331, Sec. 4.)
         Sec. 8838.004.  DISTRICT TERRITORY. The district's
  boundaries are coextensive with the boundaries of Kendall County
  unless the district's territory has been modified under:
               (1)  Subchapter J, Chapter 36, Water Code; or
               (2)  other law. (Acts 76th Leg., R.S., Ch. 1331, Sec.
  2(a) (part); Acts 77th Leg., R.S., Ch. 966, Sec. 3.0103; Acts 77th
  Leg., R.S., Ch. 1349, Sec. 3; New.)
         Sec. 8838.005.  CONFLICTS WITH OTHER LAW. The following
  provisions prevail over a conflicting or inconsistent provision of
  this chapter:
               (1)  Sections 36.1071-36.108, Water Code;
               (2)  Sections 36.159-36.161, Water Code; and
               (3)  Subchapter I, Chapter 36, Water Code. (Acts 77th
  Leg., R.S., Ch. 1349, Sec. 4(b).)
  [Sections 8838.006-8838.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8838.051.  COMPOSITION OF BOARD; TERMS. (a) The
  district is governed by a board of five directors.
         (b)  Directors serve staggered four-year terms. (Acts 77th
  Leg., R.S., Ch. 966, Secs. 3.0105(a), (d); Acts 77th Leg., R.S., Ch.
  1349, Secs. 5(a), (d).)
         Sec. 8838.052.  ELECTION OF DIRECTORS. (a) Directors are
  elected according to the commissioners precinct method provided by
  this section.
         (b)  One director is elected by the voters of the entire
  district. One director is elected from each county commissioners
  precinct by the voters of that precinct.
         (c)  A person shall indicate on the application for a place
  on the ballot:
               (1)  the precinct that the person seeks to represent;
  or
               (2)  that the person seeks to represent the district at
  large.
         (d)  When the boundaries of the county commissioners
  precincts are changed, each director in office on the effective
  date of the change or elected to a term of office beginning on or
  after the effective date of the change serves in the precinct to
  which the director was elected for the entire term to which the
  director was elected, even though the change in boundaries places
  the person's residence outside the precinct for which the person
  was elected. (Acts 77th Leg., R.S., Ch. 966, Secs. 3.0106(a), (b),
  (c), (d); Acts 77th Leg., R.S., Ch. 1349, Secs. 6(a), (b), (d).)
         Sec. 8838.053.  ELECTION DATE. On the uniform election date
  in May of each even-numbered year, the appropriate number of
  directors shall be elected. (Acts 77th Leg., R.S., Ch. 966, Sec.
  3.0110; Acts 77th Leg., R.S., Ch. 1349, Sec. 10.)
         Sec. 8838.054.  ELIGIBILITY. (a)  To be eligible to be a
  candidate for or to serve as director at large, a person must be a
  registered voter in the district.
         (b)  To be eligible to be a candidate for or to serve as a
  director from a county commissioners precinct, a person must be a
  registered voter of that precinct, except as provided by Section
  8838.052(d). (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0106(e); Acts
  77th Leg., R.S., Ch. 1349, Sec. 6(c); New.)
         Sec. 8838.055.  BOARD VACANCY. (a)  The board shall appoint
  a replacement to fill a vacancy in the office of director.
         (b)  The appointed replacement serves until the next
  directors' election.
         (c)  At that election, a person is elected to fill the
  position. If the position is not scheduled to be filled at the
  election, the person elected to fill the position serves only for
  the remainder of the unexpired term. (Acts 77th Leg., R.S., Ch.
  966, Sec. 3.0105(g); Acts 77th Leg., R.S., Ch. 1349, Sec. 5(g).)
  [Sections 8838.056-8838.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8838.101.  GROUNDWATER CONSERVATION DISTRICT POWERS
  AND DUTIES. Except as otherwise provided by this chapter, the
  district has the rights, powers, privileges, functions, and duties
  provided by the general law of this state, including Chapter 36,
  Water Code, applicable to groundwater conservation districts
  created under Section 59, Article XVI, Texas Constitution. (Acts
  77th Leg., R.S., Ch. 966, Sec. 3.0104 (part); Acts 77th Leg., R.S.,
  Ch. 1349, Sec. 4(a) (part).)
         Sec. 8838.102.  PROGRAMS TO PRESERVE AND PROTECT GROUNDWATER
  RESOURCES. The district may develop and implement regulatory,
  conservation, and recharge programs that preserve and protect
  groundwater resources located in the district. (Acts 77th Leg.,
  R.S., Ch. 966, Sec. 3.0101(b).)
         Sec. 8838.103.  CONTRACTS WITH OTHER GOVERNMENTAL BODIES.
  The district may contract with one or more state agencies or other
  governmental bodies, including a county, a river authority, or
  another district, to carry out any function of the district. (Acts
  77th Leg., R.S., Ch. 966, Sec. 3.0111(a); Acts 77th Leg., R.S., Ch.
  1349, Sec. 11(a).)
         Sec. 8838.104.  WELL PERMITS; AUTHORIZATION OF EXEMPT WELLS.
  (a)  The district may require a drilling permit before a new well is
  drilled or an existing well is substantially altered.
         (b)  Notwithstanding an exemption for a well under Section
  36.117, Water Code, written authorization granted by the district
  must be received before a new well is drilled or an existing well is
  substantially altered. (Acts 77th Leg., R.S., Ch. 966, Sec.
  3.0111(b); Acts 77th Leg., R.S., Ch. 1349, Sec. 11(b).)
         Sec. 8838.105.  BEST MANAGEMENT PRACTICES FOR WATER RESOURCE
  MANAGEMENT. (a)  The district may participate in the construction,
  implementation, and maintenance of best management practices for
  water resource management in the district and may engage in and
  promote the acceptance of best management practices through
  education efforts sponsored by the district.
         (b)  Construction, implementation, and maintenance of best
  management practices must address water quantity and quality
  practices such as brush management, prescribed grazing, recharge
  structures, water and silt detention and retention structures,
  plugging of abandoned wells, rainwater harvesting, and other
  treatment measures for the conservation of water resources. (Acts
  77th Leg., R.S., Ch. 966, Sec. 3.0111(c); Acts 77th Leg., R.S., Ch.
  1349, Sec. 11(c).)
         Sec. 8838.106.  LIMITATIONS ON DISTRICT POWERS. (a)  In this
  section, "retail public utility" means a retail public utility as
  defined by Section 13.002, Water Code, that is providing service in
  the district on September 1, 2001.
         (b)  The district may not:
               (1)  require the owner of a well used solely for
  domestic or livestock purposes to install a meter or measuring
  device on the well;
               (2)  sell, transport, or export groundwater outside of
  the district; or
               (3)  enter into a contract or engage in an action to
  supply water to any person in the service area of any municipality
  or retail public utility located in the district, except with the
  consent of the municipality or retail public utility. (Acts 77th
  Leg., R.S., Ch. 966, Secs. 3.0102(2), 3.0112 (part); Acts 77th
  Leg., R.S., Ch. 1349, Sec. 12 (part).)
  [Sections 8838.107-8838.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8838.151.  FEES. (a)  Reasonable fees, as determined by
  the district, may be imposed on an annual basis on each nonexempt
  well and on each well exempt from permitting under Section
  36.117(b)(1), Water Code. The district shall adopt any rules
  necessary for the assessment and collection of fees under this
  subsection.
         (b)  The district may use money collected from fees:
               (1)  in any manner necessary for the management and
  operation of the district;
               (2)  to pay all or part of the principal of and interest
  on district bonds or notes; and
               (3)  for any purpose consistent with the district's
  approved water management plan. (Acts 77th Leg., R.S., Ch. 966,
  Secs. 3.0111(d), (e); Acts 77th Leg., R.S., Ch. 1349, Secs. 11(d),
  (e).)
         Sec. 8838.152.  AD VALOREM TAX EXEMPTION FOR PROPERTY ON
  WHICH WATER CONSERVATION INITIATIVE HAS BEEN IMPLEMENTED. (a)  The
  district may adopt rules providing for granting exemptions from ad
  valorem taxes on property on which a water conservation initiative
  has been implemented as provided by Section 11.32, Tax Code.
         (b)  The total amount of the exemption from ad valorem taxes
  may not exceed one-half of the tax imposed by the district. (Acts
  77th Leg., R.S., Ch. 966, Secs. 3.0111(f), (h); Acts 77th Leg.,
  R.S., Ch. 1349, Secs. 11(f), (i).)
         Sec. 8838.153.  LIMITATION ON TAXES. The district may not
  impose an ad valorem tax for administrative, operation, or
  maintenance expenses that exceeds the lesser of:
               (1)  the rate approved by the majority of the voters
  voting in the election authorizing the tax; or
               (2)  three cents per $100 of assessed valuation. (Acts
  77th Leg., R.S., Ch. 966, Sec. 3.0112 (part); Acts 77th Leg., R.S., Ch. 1349, Sec. 12 (part).)
 
  CHAPTER 8839. GATEWAY GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 8839.001.  DEFINITIONS 
  Sec. 8839.002.  DISTRICT TERRITORY 
  [Sections 8839.003-8839.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
  Sec. 8839.051.  COMPOSITION OF BOARD; TERMS 
  Sec. 8839.052.  APPOINTMENT OF DIRECTORS 
  Sec. 8839.053.  BOARD VACANCY 
  Sec. 8839.054.  COMPENSATION; EXPENSES 
  [Sections 8839.055-8839.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
  Sec. 8839.101.  GROUNDWATER CONSERVATION DISTRICT
                   POWERS AND DUTIES 
  [Sections 8839.102-8839.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 8839.151.  TAXING AUTHORITY 
  CHAPTER 8839. GATEWAY GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8839.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Gateway Groundwater
  Conservation District. (Acts 77th Leg., R.S., Ch. 1352, Sec. 2;
  New.)
         Sec. 8839.002.  DISTRICT TERRITORY. The district's
  boundaries are coextensive with the boundaries of Foard and
  Hardeman Counties unless the district's territory has been modified
  under:
               (1)  Subchapter J, Chapter 36, Water Code; or
               (2)  other law.  (Acts 77th Leg., R.S., Ch. 1352, Sec.
  3(a); New.)
  [Sections 8839.003-8839.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8839.051.  COMPOSITION OF BOARD; TERMS.  (a)  The
  district is governed by a board in the manner provided by Section
  36.051, Water Code.
         (b)  Directors serve staggered four-year terms.  (Acts 77th
  Leg., R.S., Ch. 1352, Secs. 5(a), (d).)
         Sec. 8839.052.  APPOINTMENT OF DIRECTORS. (a)  The
  commissioners court of each county in the district shall appoint an
  equal number of directors.
         (b)  The appropriate commissioners court shall appoint a
  director to succeed a director on or before the date the director's
  term expires. (Acts 77th Leg., R.S., Ch. 1352, Secs. 5(g), 7(a).)
         Sec. 8839.053.  BOARD VACANCY. If there is a vacancy on the
  board, the appropriate commissioners court shall appoint a director
  to serve the remainder of the term. (Acts 77th Leg., R.S., Ch.
  1352, Sec. 5(f).)
         Sec. 8839.054.  COMPENSATION; EXPENSES.  A director may not
  receive a salary or other compensation for service as a director but
  may be reimbursed for actual expenses of attending meetings. (Acts
  77th Leg., R.S., Ch. 1352, Sec. 5(h).)
  [Sections 8839.055-8839.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 8839.101.  GROUNDWATER CONSERVATION DISTRICT POWERS
  AND DUTIES. The district has the rights, powers, privileges,
  functions, and duties provided by the general law of this state,
  including Chapter 36, Water Code, applicable to groundwater
  conservation districts created under Section 59, Article XVI, Texas
  Constitution. (Acts 77th Leg., R.S., Ch. 1352, Sec. 4(a) (part).)
  [Sections 8839.102-8839.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8839.151.  TAXING AUTHORITY.  The district may impose
  an ad valorem tax in the district at a rate not to exceed one cent on
  each $100 of assessed valuation. (Acts 77th Leg., R.S., Ch. 1352, Sec. 9.)
 
  CHAPTER 8841. GOLIAD COUNTY GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 8841.001.  DEFINITIONS 
  Sec. 8841.002.  NATURE OF DISTRICT 
  Sec. 8841.003.  FINDINGS OF PUBLIC USE AND BENEFIT 
  Sec. 8841.004.  DISTRICT TERRITORY 
  Sec. 8841.005.  DISTRICT NAME CHANGE 
  Sec. 8841.006.  CONFLICTS WITH OTHER LAW 
  [Sections 8841.007-8841.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
  Sec. 8841.051.  COMPOSITION OF BOARD; TERMS 
  Sec. 8841.052.  ELECTION DATE 
  Sec. 8841.053.  ELIGIBILITY 
  Sec. 8841.054.  BOARD VACANCY 
  Sec. 8841.055.  OFFICERS 
  [Sections 8841.056-8841.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
  Sec. 8841.101.  GROUNDWATER CONSERVATION DISTRICT
                   POWERS AND DUTIES 
  Sec. 8841.102.  REGIONAL COOPERATION 
  [Sections 8841.103-8841.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
  Sec. 8841.151.  LIMITATION ON TAXES 
  CHAPTER 8841. GOLIAD COUNTY GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8841.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Goliad County Groundwater
  Conservation District. (Acts 77th Leg., R.S., Ch. 1359, Sec. 2;
  New.)
         Sec. 8841.002.  NATURE OF DISTRICT. The district is a
  groundwater conservation district in Goliad County created under
  and essential to accomplish the purposes of Section 59, Article
  XVI, Texas Constitution. (Acts 77th Leg., R.S., Ch. 1359, Secs.
  1(a) (part), (b).)
         Sec. 8841.003.  FINDINGS OF PUBLIC USE AND BENEFIT. (a) The
  district is created to serve a public use and benefit.
         (b)  All land and other property included in the district
  will benefit from the works and projects accomplished by the
  district under the powers conferred by Section 59, Article XVI,
  Texas Constitution. (Acts 77th Leg., R.S., Ch. 1359, Sec. 4.)
         Sec. 8841.004.  DISTRICT TERRITORY. The district's
  boundaries are coextensive with the boundaries of Goliad County,
  Texas, unless the district's territory has been modified under:
               (1)  Subchapter J, Chapter 36, Water Code; or
               (2)  other law. (Acts 77th Leg., R.S., Ch. 1359, Sec.
  3; New.)
         Sec. 8841.005.  DISTRICT NAME CHANGE. The board may change
  the district's name if the district annexes territory. (Acts 77th
  Leg., R.S., Ch. 1359, Sec. 14.)
         Sec. 8841.006.  CONFLICTS WITH OTHER LAW. The following
  provisions prevail over a conflicting or inconsistent provision of
  this chapter:
               (1)  Sections 36.1071-36.108, Water Code;
               (2)  Sections 36.159-36.161, Water Code; and
               (3)  Subchapter I, Chapter 36, Water Code. (Acts 77th
  Leg., R.S., Ch. 1359, Sec. 5(b).)
  [Sections 8841.007-8841.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8841.051.  COMPOSITION OF BOARD; TERMS. (a) The
  district is governed by a board of seven directors elected to
  numbered places from Goliad County at large by the voters of the
  district.
         (b)  Directors serve staggered four-year terms. (Acts 77th
  Leg., R.S., Ch. 1359, Secs. 10(a), (c), 11(a), 12 (part).)
         Sec. 8841.052.  ELECTION DATE. Beginning in the second year
  following the election that confirmed the creation of the district,
  an election shall be held on the uniform election date in November
  every two years to elect the appropriate number of directors. (Acts
  77th Leg., R.S., Ch. 1359, Sec. 12 (part).)
         Sec. 8841.053.  ELIGIBILITY. To be eligible to serve as a
  director, a person must be a resident of Goliad County. (Acts 77th
  Leg., R.S., Ch. 1359, Sec. 6(a).)
         Sec. 8841.054.  BOARD VACANCY. (a) If a vacancy occurs on
  the board, the remaining directors shall appoint a person to fill
  the vacancy.
         (b)  A director appointed to fill a vacancy serves for the
  unexpired portion of the term. (Acts 77th Leg., R.S., Ch. 1359,
  Secs. 11(b), (c).)
         Sec. 8841.055.  OFFICERS. The board shall select from among
  the directors a presiding officer, assistant presiding officer, and
  secretary. (Acts 77th Leg., R.S., Ch. 1359, Sec. 10(b).)
  [Sections 8841.056-8841.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 8841.101.  GROUNDWATER CONSERVATION DISTRICT POWERS
  AND DUTIES. Except as provided by this chapter, the district has
  the rights, powers, privileges, functions, and duties provided by
  the general law of this state, including Chapter 36, Water Code,
  applicable to groundwater conservation districts created under
  Section 59, Article XVI, Texas Constitution. (Acts 77th Leg.,
  R.S., Ch. 1359, Sec. 5(a) (part).)
         Sec. 8841.102.  REGIONAL COOPERATION. (a) In recognition
  of the need for uniform regional monitoring and regulation of
  common, scientifically recognized groundwater sources, and in
  designated management areas, the district shall establish rules
  that:
               (1)  require the permitting of each water well that is:
                     (A)  not exempted from permitting by Chapter 36,
  Water Code; and
                     (B)  capable of producing more than 25,000 gallons
  each day;
               (2)  provide for the prevention of waste, as defined by
  Section 36.001, Water Code;
               (3)  provide for timely capping or plugging of
  abandoned wells; and
               (4)  require reports to be filed with the district on
  each new, nonexempt water well.
         (b)  A report required under Subsection (a)(4) must include:
               (1)  the driller's log;
               (2)  a description of the casing and pumping equipment
  installed;
               (3)  the capacity of the well; and
               (4)  the intended use of the water.
         (c)  To further regional continuity, the district shall:
               (1)  seek to participate in at least one coordination
  meeting annually with each adjacent district that shares an aquifer
  with the district;
               (2)  coordinate the collection of data with adjacent
  districts in a manner designed to achieve uniformity of data
  quality;
               (3)  coordinate efforts to monitor water quality with
  adjacent districts, local governments, and state agencies;
               (4)  investigate any groundwater pollution with the
  intention of locating its source and report the district's findings
  to adjacent districts and appropriate state agencies;
               (5)  provide to adjacent districts annually an
  inventory of new water wells in the district and an estimate of
  groundwater production in the district; and
               (6)  include adjacent districts on the mailing lists
  for district newsletters, seminars, public education events, news
  articles, and field days.  (Acts 77th Leg., R.S., Ch. 1359, Sec.
  15.)
  [Sections 8841.103-8841.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 8841.151.  LIMITATION ON TAXES. The district may not
  impose an ad valorem tax at a rate that exceeds five cents on each
  $100 valuation of taxable property in the district. (Acts 77th Leg., R.S., Ch. 1359, Sec. 13.)
 
  CHAPTER 8843. HAYS TRINITY GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 8843.001.  DEFINITIONS 
  Sec. 8843.002.  NATURE OF DISTRICT 
  Sec. 8843.003.  FINDINGS OF PUBLIC USE AND BENEFIT 
  Sec. 8843.004.  DISTRICT TERRITORY 
  [Sections 8843.005-8843.050 reserved for expansion]
  SUBCHAPTER B.  BOARD OF DIRECTORS
  Sec. 8843.051.  COMPOSITION OF BOARD; TERMS 
  Sec. 8843.052.  ELECTION OF DIRECTORS 
  Sec. 8843.053.  ELECTION DATE 
  Sec. 8843.054.  QUALIFICATIONS FOR OFFICE 
  Sec. 8843.055.  BOARD VACANCY 
  Sec. 8843.056.  REVISION OF SINGLE-MEMBER DISTRICTS 
  Sec. 8843.057.  COMPENSATION; EXPENSES 
  [Sections 8843.058-8843.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 8843.101.  GROUNDWATER CONSERVATION DISTRICT
                   POWERS AND DUTIES 
  Sec. 8843.102.  ELECTION ON BOARD DECISION 
  Sec. 8843.103.  WELL CONSTRUCTION PERMIT 
  Sec. 8843.104.  EXEMPT WELLS 
  Sec. 8843.105.  STANDARDS FOR RESIDENTIAL WELLS 
  Sec. 8843.106.  ELECTIONS OTHER THAN DIRECTORS'
                   ELECTIONS 
  [Sections 8843.107-8843.150 reserved for expansion]
  SUBCHAPTER D. FINANCIAL PROVISIONS
  Sec. 8843.151.  WELL CONSTRUCTION PERMIT FEE 
  Sec. 8843.152.  SERVICE CONNECTION FEE 
  Sec. 8843.153.  TAXES AND OTHER FEES PROHIBITED 
  Sec. 8843.154.  BUDGET 
  Sec. 8843.155.  AUDIT 
  CHAPTER 8843. HAYS TRINITY GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8843.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Hays Trinity Groundwater
  Conservation District.  (Acts 76th Leg., R.S., Ch. 1331, Sec. 3;
  Acts 77th Leg., R.S., Ch. 966, Sec. 3.0302; New.)
         Sec. 8843.002.  NATURE OF DISTRICT. The district is a
  groundwater conservation district created under and essential to
  accomplish the purposes of Section 59, Article XVI, Texas
  Constitution. (Acts 76th Leg., R.S., Ch. 1331, Secs. 1(a) (part),
  (c).)
         Sec. 8843.003.  FINDINGS OF PUBLIC USE AND BENEFIT. (a) The
  district is created to serve a public use and benefit.
         (b)  All land and other property included in the district
  will benefit from the works and projects accomplished by the
  district under the powers conferred by Section 59, Article XVI,
  Texas Constitution. (Acts 76th Leg., R.S., Ch. 1331, Sec. 4.)
         Sec. 8843.004.  DISTRICT TERRITORY. The district's
  boundaries are coextensive with the boundaries of Hays County,
  excluding any area that on September 1, 2001, was within another
  groundwater conservation district with authority to require a
  permit to drill or alter a well for the withdrawal of groundwater,
  unless the district's territory has been modified under:
               (1)  Subchapter J, Chapter 36, Water Code; or
               (2)  other law.  (Acts 77th Leg., R.S., Ch. 966, Sec.
  3.0303 (part); New.)
  [Sections 8843.005-8843.050 reserved for expansion]
  SUBCHAPTER B.  BOARD OF DIRECTORS
         Sec. 8843.051.  COMPOSITION OF BOARD; TERMS. (a) The
  district is governed by a board of five directors.
         (b)  Directors serve staggered two-year terms.  (Acts 77th
  Leg., R.S., Ch. 966, Secs. 3.0307(a), (d).)
         Sec. 8843.052.  ELECTION OF DIRECTORS. (a)  The district is
  divided into five numbered single-member districts for electing
  directors.
         (b)  One director is elected from each single-member
  district. A director elected from a single-member district
  represents the residents of that single-member district.  (Acts
  77th Leg., R.S., Ch. 966, Secs. 3.0308(a), (b).)
         Sec. 8843.053.  ELECTION DATE. On the uniform election date
  in May of each year, the appropriate number of directors shall be
  elected. (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0310(b).)
         Sec. 8843.054.  QUALIFICATIONS FOR OFFICE. To be qualified
  to be a candidate for or to serve as director, a person must be a
  registered voter in the single-member district that the person
  represents or seeks to represent. (Acts 77th Leg., R.S., Ch. 966,
  Sec. 3.0308(c).)
         Sec. 8843.055.  BOARD VACANCY. If there is a vacancy on the
  board, the Hays County Commissioners Court shall appoint a director
  to serve the remainder of the term.  (Acts 77th Leg., R.S., Ch. 966,
  Sec. 3.0307(g).)
         Sec. 8843.056.  REVISION OF SINGLE-MEMBER DISTRICTS. (a)
  The board may revise the single-member districts as necessary or
  appropriate.
         (b)  The board shall revise each single-member district
  after each federal decennial census to reflect population changes.
         (c)  At the first election after the single-member districts
  are revised, a new director shall be elected from each district.  
  The directors shall draw lots to determine which two directors
  serve one-year terms and which three directors serve two-year
  terms.  (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0308(d).)
         Sec. 8843.057.  COMPENSATION; EXPENSES. A director may not
  receive a salary or other compensation for service as a director but
  may be reimbursed for actual expenses of attending meetings at the
  rate in effect for employees of Hays County.  (Acts 77th Leg., R.S.,
  Ch. 966, Sec. 3.0307(h).)
  [Sections 8843.058-8843.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8843.101.  GROUNDWATER CONSERVATION DISTRICT POWERS
  AND DUTIES. The district has the rights, powers, privileges,
  functions, and duties provided by the general law of this state,
  including Chapter 36, Water Code, applicable to groundwater
  conservation districts created under Section 59, Article XVI, Texas
  Constitution. (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0304(a)
  (part).)
         Sec. 8843.102.  ELECTION ON BOARD DECISION. The Hays County
  Commissioners Court by resolution may require an election to affirm
  or reverse a decision of the board not later than six months after
  the date of the decision. (Acts 77th Leg., R.S., Ch. 966, Sec.
  3.0304(d).)
         Sec. 8843.103.  WELL CONSTRUCTION PERMIT. Except as
  provided by Sections 8843.104(b) and (c), the district may require
  a permit for the construction of a new well completed after
  September 1, 2001.  (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0312(a)
  (part).)
         Sec. 8843.104.  EXEMPT WELLS. (a)  The following wells are
  exempt from the requirements of Chapter 36, Water Code, and may not
  be regulated, permitted, or metered by the district:
               (1)  a well used for domestic use by a single private
  residential household and producing less than 25,000 gallons per
  day; and
               (2)  a well used for conventional farming and ranching
  activities, including such intensive operations as aquaculture,
  livestock feedlots, or poultry operations.
         (b)  The district may not require a permit to construct a
  well described by Subsection (a)(2).
         (c)  A well used for dewatering and monitoring in the
  production of coal or lignite is exempt from permit requirements,
  regulations, and fees imposed by the district.
         (d)  The district may not enter property to inspect an exempt
  well without the property owner's permission.  (Acts 77th Leg.,
  R.S., Ch. 966, Secs. 3.0304(c), 3.0305.)
         Sec. 8843.105.  STANDARDS FOR RESIDENTIAL WELLS. The
  district may not adopt standards for the construction of a
  residential well that are more stringent than state standards for a
  residential well.  (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0304(e).)
         Sec. 8843.106.  ELECTIONS OTHER THAN DIRECTORS' ELECTIONS.
  An election held by the district, other than an election under
  Section 8843.053, must be scheduled to coincide with a general
  election in May or November. (Acts 77th Leg., R.S., Ch. 966, Sec.
  3.0311.)
  [Sections 8843.107-8843.150 reserved for expansion]
  SUBCHAPTER D. FINANCIAL PROVISIONS
         Sec. 8843.151.  WELL CONSTRUCTION PERMIT FEE. The district
  may charge and collect a construction permit fee not to exceed $300
  for a well for which the district requires a permit under Section
  8843.103.  (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0312(a) (part).)
         Sec. 8843.152.  SERVICE CONNECTION FEE. (a)  This section
  does not apply to a water utility that has surface water as its sole
  source of water.
         (b)  The district may levy and collect a water utility
  service connection fee not to exceed $300 for each new water service
  connection made after September 1, 2001.  (Acts 77th Leg., R.S., Ch.
  966, Sec. 3.0312(b).)
         Sec. 8843.153.  TAXES AND OTHER FEES PROHIBITED.
  Notwithstanding Section 8843.101 or Subchapter G, Chapter 36, Water
  Code, the district may not:
               (1)  impose a tax; or
               (2)  assess or collect any fees except as authorized by
  Section 8843.151 or 8843.152.  (Acts 77th Leg., R.S., Ch. 966, Sec.
  3.0312(c).)
         Sec. 8843.154.  BUDGET. (a)  The district shall annually:
               (1)  prepare a budget showing proposed expenditures and
  disbursements and estimated receipts and collections for the next
  fiscal year; and
               (2)  hold a public hearing on the proposed budget.
         (b)  The district must publish notice of the hearing at least
  once in a newspaper of general circulation in the county not later
  than the 10th day before the date of the hearing.
         (c)  A taxpayer of the district is entitled to appear at the
  hearing to be heard regarding any item in the proposed budget.  
  (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0306(a).)
         Sec. 8843.155.  AUDIT. At the written request of the Hays
  County Commissioners Court, the county auditor shall audit the
  performance of the district. The commissioners court may request a
  general audit of the performance of the district or may request an
  audit of only one or more district matters.  (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0306(b).)
 
  CHAPTER 8845.  IRION COUNTY WATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 8845.001.  DEFINITIONS 
  Sec. 8845.002.  NATURE AND PURPOSE OF DISTRICT 
  Sec. 8845.003.  LEGISLATIVE FINDINGS 
  Sec. 8845.004.  DISTRICT TERRITORY 
  Sec. 8845.005.  DISTRICT NAME CHANGE 
  Sec. 8845.006.  OWNERSHIP OF GROUNDWATER AND SURFACE
                   WATER RIGHTS 
  [Sections 8845.007-8845.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 8845.051.  COMPOSITION OF BOARD; TERMS 
  Sec. 8845.0511. TERMS FOR CERTAIN DIRECTORS 
  Sec. 8845.052.  ELECTION OF DIRECTORS 
  Sec. 8845.053.  ELECTION DATE 
  Sec. 8845.054.  QUALIFICATIONS FOR ELECTION;
                   ELIGIBILITY TO SERVE 
  Sec. 8845.055.  BOARD VACANCY 
  Sec. 8845.056.  COMPOSITION OF BOARD FOLLOWING
                   ANNEXATION OR CONSOLIDATION 
  Sec. 8845.057.  VOTE REQUIRED FOR OFFICIAL BOARD ACTION 
  Sec. 8845.058.  OFFICERS 
  Sec. 8845.059.  GENERAL MANAGER 
  Sec. 8845.060.  TREASURER AND ATTORNEY 
  Sec. 8845.061.  ENGINEER 
  Sec. 8845.062.  EMPLOYEES AND CONTRACT PERSONNEL 
  Sec. 8845.063.  DISTRICT OFFICE 
  Sec. 8845.064.  MEETINGS 
  Sec. 8845.065.  RECORDS 
  [Sections 8845.066-8845.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 8845.101.  GENERAL POWERS AND DUTIES 
  Sec. 8845.102.  RULES 
  Sec. 8845.103.  EMINENT DOMAIN 
  Sec. 8845.104.  CONTROL, STORAGE, AND PRESERVATION OF
                   STORM WATER AND FLOODWATER 
  Sec. 8845.105.  RECLAMATION 
  Sec. 8845.106.  SOIL CONSERVATION AND IMPROVEMENT 
  Sec. 8845.107.  ACQUISITION OF PROPERTY 
  Sec. 8845.108.  SALE AND DISPOSAL OF PROPERTY 
  Sec. 8845.109.  IMPROVEMENTS AND FACILITIES 
  Sec. 8845.110.  INPUT WELLS 
  Sec. 8845.111.  STUDIES AND SURVEYS 
  Sec. 8845.112.  RESEARCH; INFORMATION 
  Sec. 8845.113.  DISTRICT PLANS 
  Sec. 8845.114.  SERVICE OF PROCESS 
  Sec. 8845.115.  PAYMENT OF JUDGMENTS 
  Sec. 8845.116.  CERTAIN PERMIT DENIALS PROHIBITED 
  Sec. 8845.117.  PROHIBITION: SUPPLY OF WATER 
  [Sections 8845.118-8845.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 8845.151.  MAINTENANCE AND OPERATIONS TAX;
                   ELECTION 
  Sec. 8845.152.  NOTICE; HEARING; ADOPTION OF BUDGET 
  Sec. 8845.153.  INVESTMENT OF DISTRICT MONEY 
  Sec. 8845.154.  ANNUAL AUDIT 
  Sec. 8845.155.  BORROWING MONEY 
  Sec. 8845.156.  PROHIBITION ON BONDS 
  Sec. 8845.157.  RESTRICTION ON EXPENDITURES 
  CHAPTER 8845.  IRION COUNTY WATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8845.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Irion County Water
  Conservation District.  (Acts 69th Leg., R.S., Ch. 65, Sec. 2; New.)
         Sec. 8845.002.  NATURE AND PURPOSE OF DISTRICT. The
  district is created under Section 59, Article XVI, Texas
  Constitution, to provide for the conservation, preservation,
  protection, recharge, and prevention of waste and pollution of the
  district's groundwater and surface water, consistent with:
               (1)  the objectives of Section 59, Article XVI, Texas
  Constitution, and Chapter 36, Water Code; and
               (2)  the powers and duties under Subchapters H and I,
  Chapter 49, Water Code. (Acts 69th Leg., R.S., Ch. 65, Secs. 1
  (part), 29.)
         Sec. 8845.003.  LEGISLATIVE FINDINGS. The legislature finds
  that:
               (1)  the organization of the district is feasible and
  practicable;
               (2)  the land to be included in and the residents of the
  district will benefit from the creation of the district;
               (3)  there is a public necessity for the district; and
               (4)  the creation of the district will further the
  public welfare. (Acts 69th Leg., R.S., Ch. 65, Sec. 3.)
         Sec. 8845.004.  DISTRICT TERRITORY. The district is
  composed of all the territory in Irion County unless the district's
  territory has been modified by:
               (1)  annexation under Subchapter J or consolidation
  under Subchapter K, Chapter 36, Water Code; or
               (2)  other law. (Acts 69th Leg., R.S., Ch. 65, Sec. 4;
  New.)
         Sec. 8845.005.  DISTRICT NAME CHANGE. The name of the
  district may be changed if:
               (1)  additional territory is annexed to the district;
  or
               (2)  the district consolidates with another district.
  (Acts 69th Leg., R.S., Ch. 65, Sec. 28.)
         Sec. 8845.006.  OWNERSHIP OF GROUNDWATER AND SURFACE WATER
  RIGHTS. The ownership and rights of the owner of land, the owner's
  lessees, and assigns in groundwater and any surface water rights
  are recognized, and this chapter does not deprive or divest the
  owner, the owner's lessees, or assigns of those ownership rights.
  (Acts 69th Leg., R.S., Ch. 65, Sec. 45.)
  [Sections 8845.007-8845.050 reserved for expansion]
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 8845.051.  COMPOSITION OF BOARD; TERMS.  (a)  The board
  is composed of five directors.
         (b)  Directors serve staggered four-year terms.
         (c)  A director takes office at the first regular meeting of
  the board following the director's election to the board.  (Acts
  69th Leg., R.S., Ch. 65, Secs. 8(a), 11, 12; New.)
         Sec. 8845.0511.  TERMS FOR CERTAIN DIRECTORS. (a)
  Notwithstanding Section 8845.051(b), a director whose term expires
  in May 2009 shall serve a term that expires on the uniform election
  date in May 2012.
         (b)  A director elected to replace a director whose term
  expires in May 2010 shall serve a four-year term as provided by
  Section 8845.051(b).
         (c)  Section 8845.051(b) applies to any regularly scheduled
  election of directors held in 2012 or a later year.
         (d)  This section expires June 1, 2014.  (Acts 81st Leg.,
  R.S., Ch. 113, Sec. 13; New.)
         Sec. 8845.052.  ELECTION OF DIRECTORS. One director is
  elected from the district at large. One director is elected from
  each county commissioners precinct. (Acts 69th Leg., R.S., Ch. 65,
  Sec. 8(b).)
         Sec. 8845.053.  ELECTION DATE. Each even-numbered year, an
  election shall be held on the uniform election date in May to elect
  the appropriate number of directors.  (Acts 69th Leg., R.S., Ch. 65,
  Sec. 10.)
         Sec. 8845.054.  QUALIFICATIONS FOR ELECTION; ELIGIBILITY TO
  SERVE.  (a)  To be qualified for election as a director, a person
  must be:
               (1)  a resident of the district; and
               (2)  at least 18 years of age.
         (b)  In addition to the requirements of Subsection (a), a
  person who is a director from a county commissioners precinct must
  be a resident of that precinct unless the composition of the board
  changes under Section 8845.056. (Acts 69th Leg., R.S., Ch. 65, Sec.
  9.)
         Sec. 8845.055.  BOARD VACANCY. If a vacancy occurs on the
  board, the remaining directors shall appoint a director for the
  unexpired term. (Acts 69th Leg., R.S., Ch. 65, Sec. 13.)
         Sec. 8845.056.  COMPOSITION OF BOARD FOLLOWING ANNEXATION OR
  CONSOLIDATION. If the district annexes territory or consolidates
  with another district, the composition of the board shall be
  determined in a manner that is:
               (1)  equitable for the residents of the district as
  provided by Chapter 36, Water Code; and
               (2)  otherwise in compliance with Subchapter K, Chapter
  36, Water Code.  (Acts 69th Leg., R.S., Ch. 65, Sec. 8(c).)
         Sec. 8845.057.  VOTE REQUIRED FOR OFFICIAL BOARD ACTION. An
  official action of the board is not valid without the affirmative
  vote of a majority of the directors. (Acts 69th Leg., R.S., Ch. 65,
  Sec. 17 (part).)
         Sec. 8845.058.  OFFICERS. (a) After each directors'
  election, the board shall:
               (1)  hold a regular meeting at the district office; and
               (2)  organize by electing from the directors a
  president, a vice president, and a secretary.
         (b)  A person selected to serve as president, vice president,
  or secretary serves in that capacity for a two-year term.
         (c)  The president, vice president, and secretary shall
  perform the duties and may exercise the powers specifically
  provided by this chapter or by order of the board. (Acts 69th Leg.,
  R.S., Ch. 65, Secs. 16(a), (b), (d).)
         Sec. 8845.059.  GENERAL MANAGER. (a) The general manager
  may execute a bond in the amount determined by the board, payable to
  the district, and conditioned on the faithful performance of the
  general manager's duties. The district shall pay for the bond.
         (b)  The general manager is entitled to receive the
  compensation provided by the district's budget.  (Acts 69th Leg.,
  R.S., Ch. 65, Secs. 19(b), (c).)
         Sec. 8845.060.  TREASURER AND ATTORNEY. (a) The board may
  appoint a treasurer and an attorney for the district.
         (b)  The person appointed as treasurer shall execute a bond
  in the amount determined by the board, payable to the district,
  conditioned on the faithful performance of the treasurer's duties.  
  The district shall pay for the bond.
         (c)  A person appointed under this section is entitled to the
  compensation provided by the district's budget. (Acts 69th Leg.,
  R.S., Ch. 65, Sec. 18.)
         Sec. 8845.061.  ENGINEER. The board may:
               (1)  appoint or contract with a competent professional
  engineer for the district; and
               (2)  determine the amount of compensation to be paid to
  the engineer. (Acts 69th Leg., R.S., Ch. 65, Sec. 20.)
         Sec. 8845.062.  EMPLOYEES AND CONTRACT PERSONNEL. (a) The
  general manager or the board may:
               (1)  employ other persons necessary to properly handle
  the district's business and operation; and
               (2)  employ or contract with expert and specialized
  personnel who are necessary to carry out this chapter.
         (b)  The board shall determine the terms of employment and
  the compensation to be paid to employees under this section.
         (c)  The district shall pay for any bond that an employee of
  or a person under contract with the district is required to furnish
  under Section 36.057(d), Water Code.
         (d)  The general manager or the board may dismiss an employee
  of the district. (Acts 69th Leg., R.S., Ch. 65, Secs. 21(a), (b),
  (c), (d) (part).)
         Sec. 8845.063.  DISTRICT OFFICE. The board shall maintain
  an office in the district for conducting district business. (Acts
  69th Leg., R.S., Ch. 65, Sec. 22.)
         Sec. 8845.064.  MEETINGS. The board shall hold regular
  meetings at the district office on dates established by the board.
  (Acts 69th Leg., R.S., Ch. 65, Sec. 23.)
         Sec. 8845.065.  RECORDS. (a) The board shall keep a
  complete written account of board meetings and other proceedings
  and shall preserve the board's minutes, contracts, plans, notices,
  accounts, receipts, and other records in a secure manner at the
  district's office.
         (b)  Minutes, contracts, plans, notices, accounts, receipts,
  and other records are the property of the district and are subject
  to public inspection.  (Acts 69th Leg., R.S., Ch. 65, Sec. 24.)
  [Sections 8845.066-8845.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8845.101.  GENERAL POWERS AND DUTIES. Except to the
  extent of any conflict with this chapter or as specifically limited
  by this chapter, the district may exercise the powers granted by,
  and shall exercise the duties provided by, Chapter 36 and
  Subchapters H and I, Chapter 49, Water Code, to carry out the
  purpose of the district and this chapter. (Acts 69th Leg., R.S.,
  Ch. 65, Sec. 31.)
         Sec. 8845.102.  RULES. (a)  The board may adopt rules
  necessary to carry out the purpose and powers under this chapter and
  may enforce those rules by injunction, mandatory injunction, or
  other appropriate remedies in court.
         (b)  In addition to the rules adopted under Subsection (a),
  the board may:
               (1)  adopt and enforce rules as provided by Chapter 36,
  Water Code; and
               (2)  adopt rules necessary for the exercise of district
  powers and duties under Subchapters H and I, Chapter 49, Water Code.  
  (Acts 69th Leg., R.S., Ch. 65, Sec. 30.)
         Sec. 8845.103.  EMINENT DOMAIN. (a) The district may
  exercise the power of eminent domain to acquire a fee simple or
  other interest in property in the district if the property interest
  is necessary to the exercise of the authority conferred by this
  chapter.
         (b)  The district must exercise the power of eminent domain
  in the manner provided by Chapter 21, Property Code, but the
  district is not required to deposit in the trial court money or a
  bond as provided by Section 21.021(a), Property Code. (Acts 69th
  Leg., R.S., Ch. 65, Secs. 42(a), (b).)
         Sec. 8845.104.  CONTROL, STORAGE, AND PRESERVATION OF STORM
  WATER AND FLOODWATER. Subject to obtaining the permits required by
  law, the district may control, store, and preserve the storm water
  and floodwater in the district and the water of the rivers and
  streams in the district for:
               (1)  irrigation of arid land;
               (2)  prevention of floods and flood damage in the
  district; and
               (3)  domestic, agricultural, and industrial uses.
  (Acts 69th Leg., R.S., Ch. 65, Sec. 36.)
         Sec. 8845.105.  RECLAMATION. The district may:
               (1)  reclaim land in the district; and
               (2)  construct works, facilities, and improvements
  necessary to accomplish that purpose. (Acts 69th Leg., R.S., Ch.
  65, Sec. 37.)
         Sec. 8845.106.  SOIL CONSERVATION AND IMPROVEMENT. The
  district may construct and maintain terraces or other structures on
  land in the district and may engage in or promote land treatment
  measures for soil conservation and improvement. (Acts 69th Leg.,
  R.S., Ch. 65, Sec. 38.)
         Sec. 8845.107.  ACQUISITION OF PROPERTY. The district may
  acquire land or other property necessary to carry out this chapter
  by gift, grant, devise, lease, purchase, or condemnation.  (Acts
  69th Leg., R.S., Ch. 65, Sec. 41.)
         Sec. 8845.108.  SALE AND DISPOSAL OF PROPERTY. Subject to
  this chapter and Chapter 36 and Subchapters H and I, Chapter 49,
  Water Code, the district may sell or otherwise dispose of land and
  other property of the district that is not necessary to carry out
  the purpose or powers of the district as determined by the board.
  (Acts 69th Leg., R.S., Ch. 65, Sec. 43.)
         Sec. 8845.109.  IMPROVEMENTS AND FACILITIES. (a) The
  district may construct or acquire and improve and maintain works,
  facilities, and improvements necessary to carry out the purpose,
  powers, and plans of the district.
         (b)  The district shall construct and acquire works,
  facilities, and improvements in the manner provided by Subchapters
  H and I, Chapter 49, Water Code. (Acts 69th Leg., R.S., Ch. 65, Sec.
  39.)
         Sec. 8845.110.  INPUT WELLS. The district may drill, equip,
  operate, and maintain input wells, pumps, and other facilities to
  carry out its purpose and powers under this chapter. (Acts 69th
  Leg., R.S., Ch. 65, Sec. 40.)
         Sec. 8845.111.  STUDIES AND SURVEYS. (a) The board may have
  a professional engineer conduct studies and surveys of the
  groundwater and surface water supplies in the district and the
  facilities available for use in the conservation, preservation,
  protection, recharge, and prevention of waste and pollution of
  those water resources.
         (b)  A professional engineer may determine the quantities of
  groundwater and surface water available in the district. (Acts
  69th Leg., R.S., Ch. 65, Sec. 33.)
         Sec. 8845.112.  RESEARCH; INFORMATION. The district may
  engage in research projects and develop information to be used by
  the district in preparing and implementing the district's plans and
  in carrying out the district's powers and duties under this
  chapter. (Acts 69th Leg., R.S., Ch. 65, Sec. 35.)
         Sec. 8845.113.  DISTRICT PLANS. (a) The district shall
  develop and implement comprehensive plans for the conservation,
  preservation, protection, recharge, and prevention of waste and
  pollution of groundwater and surface water in the district.
         (b)  The plans must include all works, facilities, and
  improvements necessary to implement the plans and the
  specifications for those works, facilities, and improvements.
  (Acts 69th Leg., R.S., Ch. 65, Sec. 34.)
         Sec. 8845.114.  SERVICE OF PROCESS.  Service of process in a
  suit may be had by serving the general manager.  (Acts 69th Leg.,
  R.S., Ch. 65, Sec. 27(a) (part).)
         Sec. 8845.115.  PAYMENT OF JUDGMENTS. A court of this state
  that renders a money judgment against the district may require the
  board to pay the judgment from money in the district depository that
  is not dedicated to the payment of any indebtedness of the district.  
  (Acts 69th Leg., R.S., Ch. 65, Sec. 27(c).)
         Sec. 8845.116.  CERTAIN PERMIT DENIALS PROHIBITED. If the
  district regulates production of groundwater by permit as
  authorized by Chapter 36, Water Code, the board may not deny a
  permit to drill a well to the owner of land or the owner's heirs,
  assigns, and lessees on that land that complies with rules adopted
  by the district. (Acts 69th Leg., R.S., Ch. 65, Sec. 32.)
         Sec. 8845.117.  PROHIBITION: SUPPLY OF WATER. The district
  may not contract to or take an action to supply groundwater or
  surface water inside or outside the district. (Acts 69th Leg.,
  R.S., Ch. 65, Sec. 44(a).)
  [Sections 8845.118-8845.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8845.151.  MAINTENANCE AND OPERATIONS TAX; ELECTION.
  (a) The district may annually impose an ad valorem tax on property
  in the district for use in maintaining district facilities and
  paying district operating expenses.
         (b)  The district may not impose a maintenance and operations
  tax until it is approved by a majority vote of the district voters
  voting at an election held for that purpose.
         (c)  The directors shall publish notice of a maintenance and
  operations tax election at least one time in a newspaper or
  newspapers that have general circulation in the district. The
  notice must be published before the 30th day preceding the date of
  the election.
         (d)  The directors shall declare the result of a maintenance
  and operations tax election.  (Acts 69th Leg., R.S., Ch. 65, Secs.
  6(c), (e) (part), 58(a), (b), (c) (part).)
         Sec. 8845.152.  NOTICE; HEARING; ADOPTION OF BUDGET. (a)
  The board shall hold a public hearing on the annual budget.
         (b)  Notice of the hearing must be published in a newspaper
  or newspapers having general circulation in the district at least
  10 days before the date of the hearing.
         (c)  Any district resident is entitled to be present at and
  participate in the hearing.
         (d)  At the conclusion of the hearing, the board shall act on
  the budget and may make changes in the proposed budget that in the
  board's judgment the interests of the taxpayers demand.  (Acts 69th
  Leg., R.S., Ch. 65, Sec. 50.)
         Sec. 8845.153.  INVESTMENT OF DISTRICT MONEY. (a)  District
  money may be invested by the board or its authorized representative
  in direct or indirect obligations of the United States, the state,
  or any political subdivision of the state.
         (b)  District money may be placed in certificates of deposit
  of state or national banks or savings and loan associations in this
  state, if that money is secured in the manner provided for the
  security of county funds. (Acts 69th Leg., R.S., Ch. 65, Secs.
  55(a), (b).)
         Sec. 8845.154.  ANNUAL AUDIT. The board shall annually have
  an audit made of the financial condition of the district.  (Acts
  69th Leg., R.S., Ch. 65, Sec. 47.)
         Sec. 8845.155.  BORROWING MONEY. The district may borrow
  money for any purpose authorized by this chapter or any combination
  of those purposes.  (Acts 69th Leg., R.S., Ch. 65, Sec. 57.)
         Sec. 8845.156.  PROHIBITION ON BONDS. The district may not
  issue bonds or impose an ad valorem tax to secure the payment of
  bonds.  (Acts 69th Leg., R.S., Ch. 65, Sec. 44(b).)
         Sec. 8845.157.  RESTRICTION ON EXPENDITURES. Money may be
  spent only for an expense included in the annual budget or an
  amendment to the annual budget. (Acts 69th Leg., R.S., Ch. 65, Sec. 52.)
 
  CHAPTER 8851. MIDDLE PECOS GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 8851.001.  DEFINITIONS 
  Sec. 8851.002.  NATURE OF DISTRICT 
  Sec. 8851.003.  FINDINGS OF PUBLIC USE AND BENEFIT 
  Sec. 8851.004.  DISTRICT TERRITORY 
  [Sections 8851.005-8851.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
  Sec. 8851.051.  COMPOSITION OF BOARD; TERMS 
  Sec. 8851.052.  ELECTION OF DIRECTORS 
  Sec. 8851.053.  ELECTION DATE 
  Sec. 8851.054.  QUALIFICATIONS FOR OFFICE 
  Sec. 8851.055.  BOARD VACANCY 
  Sec. 8851.056.  COMPENSATION; EXPENSES 
  [Sections 8851.057-8851.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 8851.101.  GROUNDWATER CONSERVATION DISTRICT
                   POWERS AND DUTIES 
  Sec. 8851.102.  POWERS AND DUTIES NOT SUBJECT TO STATE
                   SUPERVISION 
  Sec. 8851.103.  LIMITATION ON RULEMAKING POWER NOT
                   APPLICABLE 
  Sec. 8851.104.  GROUNDWATER FOR USE OUTSIDE DISTRICT 
  CHAPTER 8851. MIDDLE PECOS GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8851.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Middle Pecos Groundwater
  Conservation District. (Acts 76th Leg., R.S., Ch. 1331, Sec. 3;
  Acts 77th Leg., R.S., Ch. 1299, Sec. 2; New.)
         Sec. 8851.002.  NATURE OF DISTRICT. The district is a
  groundwater conservation district created under and essential to
  accomplish the purposes of Section 59, Article XVI, Texas
  Constitution. (Acts 76th Leg., R.S., Ch. 1331, Secs. 1(a) (part),
  (c).)
         Sec. 8851.003.  FINDINGS OF PUBLIC USE AND BENEFIT. (a) The
  district is created to serve a public use and benefit.
         (b)  All land and other property included in the district
  will benefit from the works and projects accomplished by the
  district under the powers conferred by Section 59, Article XVI,
  Texas Constitution. (Acts 76th Leg., R.S., Ch. 1331, Sec. 4.)
         Sec. 8851.004.  DISTRICT TERRITORY. The district's
  boundaries are coextensive with the boundaries of Pecos County
  unless the district's territory has been modified under:
               (1)  Subchapter J, Chapter 36, Water Code; or
               (2)  other law. (Acts 76th Leg., R.S., Ch. 1331, Sec.
  2(a) (part); Acts 77th Leg., R.S., Ch. 1299, Sec. 3; New.)
  [Sections 8851.005-8851.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8851.051.  COMPOSITION OF BOARD; TERMS. (a) The
  district is governed by a board of 11 directors.
         (b)  Directors serve staggered four-year terms. (Acts 77th
  Leg., R.S., Ch. 1299, Secs. 5(a), (d).)
         Sec. 8851.052.  ELECTION OF DIRECTORS. (a) Directors are
  elected according to the method provided by this section.
         (b)  One director is elected by the voters of the entire
  district. Two directors are elected from each county commissioners
  precinct by the voters of that precinct. One director is elected
  from Iraan by the voters of that municipality. One director is
  elected from Fort Stockton by the voters of that municipality.
         (c)  A person shall indicate on the application for a place
  on the ballot:
               (1)  the precinct or municipality that the person seeks
  to represent; or
               (2)  that the person seeks to represent the district at
  large.
         (d)  At the first election after the county commissioners
  precincts are redrawn under Section 18, Article V, Texas
  Constitution, eight new directors are elected to represent the
  precincts. The directors shall draw lots to determine which four
  directors serve two-year terms and which four directors serve
  four-year terms. (Acts 77th Leg., R.S., Ch. 1299, Secs. 6(a), (b),
  (d), (e).)
         Sec. 8851.053.  ELECTION DATE. On the uniform election date
  in May of each even-numbered year, the appropriate number of
  directors shall be elected. (Acts 77th Leg., R.S., Ch. 1299, Sec. 8
  (part).)
         Sec. 8851.054.  QUALIFICATIONS FOR OFFICE. (a) To be
  qualified to be a candidate for or to serve as director at large, a
  person must be a registered voter in the district.
         (b)  To be qualified to be a candidate for or to serve as
  director from a county commissioners precinct, a person must be a
  registered voter of that precinct.
         (c)  To be qualified to be a candidate for or to serve as
  director from a municipality, a person must be a registered voter of
  that municipality. (Acts 77th Leg., R.S., Ch. 1299, Sec. 6(c).)
         Sec. 8851.055.  BOARD VACANCY. (a) If there is a vacancy on
  the board, the remaining directors shall appoint a director to
  serve the remainder of the term.
         (b)  If at any time there are fewer than three qualified
  directors, the Pecos County Commissioners Court shall appoint the
  necessary number of persons to fill all the vacancies on the board.
  (Acts 77th Leg., R.S., Ch. 1299, Sec. 5(g).)
         Sec. 8851.056.  COMPENSATION; EXPENSES. A director may not
  receive a salary or other compensation for service as a director but
  may be reimbursed for actual expenses of attending meetings at the
  rate in effect for employees of Pecos County. (Acts 77th Leg.,
  R.S., Ch. 1299, Sec. 5(h).)
  [Sections 8851.057-8851.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8851.101.  GROUNDWATER CONSERVATION DISTRICT POWERS
  AND DUTIES. The district has the rights, powers, privileges,
  functions, and duties provided by the general law of this state,
  including Chapter 36, Water Code, applicable to groundwater
  conservation districts created under Section 59, Article XVI, Texas
  Constitution. (Acts 77th Leg., R.S., Ch. 1299, Sec. 4(a) (part).)
         Sec. 8851.102.  POWERS AND DUTIES NOT SUBJECT TO STATE
  SUPERVISION. The rights, powers, privileges, functions, and duties
  of the district are not subject to the continuing right of
  supervision of the state through the Texas Commission on
  Environmental Quality. (Acts 77th Leg., R.S., Ch. 1299, Sec.
  4(d).)
         Sec. 8851.103.  LIMITATION ON RULEMAKING POWER NOT
  APPLICABLE. Section 36.121, Water Code, does not apply to the
  district. (Acts 77th Leg., R.S., Ch. 1299, Sec. 4(c).)
         Sec. 8851.104.  GROUNDWATER FOR USE OUTSIDE DISTRICT. (a)  
  The district may not impose a rule on the production of groundwater
  for use outside the district that is in addition to the rules the
  district imposes on the production of groundwater for use inside
  the district.
         (b)  In addition to other fees assessed by the district, the
  district may assess a fee on groundwater transferred out of the
  district in an amount not to exceed 10 percent of the amount of the
  fee assessed for the production of water for use in the district.  (Acts 77th Leg., R.S., Ch. 1299, Secs. 4(e), (f).)
 
  CHAPTER 8854. REFUGIO GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 8854.001.  DEFINITIONS 
  Sec. 8854.002.  NATURE OF DISTRICT 
  Sec. 8854.003.  FINDINGS OF PUBLIC USE AND BENEFIT 
  Sec. 8854.004.  DISTRICT TERRITORY 
  [Sections 8854.005-8854.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
  Sec. 8854.051.  COMPOSITION OF BOARD; TERMS 
  Sec. 8854.052.  ELECTION OF DIRECTORS 
  Sec. 8854.053.  ELECTION DATE 
  Sec. 8854.054.  QUALIFICATIONS FOR OFFICE 
  Sec. 8854.055.  APPOINTMENT ON FAILURE TO QUALIFY 
  [Sections 8854.056-8854.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 8854.101.  GROUNDWATER CONSERVATION DISTRICT
                   POWERS AND DUTIES 
  Sec. 8854.102.  AUTHORITY TO SET FEES 
  CHAPTER 8854. REFUGIO GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8854.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Refugio Groundwater
  Conservation District. (Acts 76th Leg., R.S., Ch. 1331, Sec. 3;
  Acts 77th Leg., R.S., Ch. 966, Sec. 3.0902; Acts 77th Leg., R.S.,
  Ch. 1314, Sec. 2; New.)
         Sec. 8854.002.  NATURE OF DISTRICT. The district is a
  groundwater conservation district created under and essential to
  accomplish the purposes of Section 59, Article XVI, Texas
  Constitution. (Acts 76th Leg., R.S., Ch. 1331, Secs. 1(a) (part),
  (c).)
         Sec. 8854.003.  FINDINGS OF PUBLIC USE AND BENEFIT. (a) The
  district is created to serve a public use and benefit.
         (b)  All land and other property included in the district
  will benefit from the works and projects accomplished by the
  district under the powers conferred by Section 59, Article XVI,
  Texas Constitution. (Acts 76th Leg., R.S., Ch. 1331, Sec. 4.)
         Sec. 8854.004.  DISTRICT TERRITORY. The district's
  boundaries are coextensive with the boundaries of Refugio County
  unless the district's territory has been modified under:
               (1)  Subchapter J, Chapter 36, Water Code; or
               (2)  other law. (Acts 76th Leg., R.S., Ch. 1331, Sec.
  2(a) (part); Acts 77th Leg., R.S., Ch. 966, Sec. 3.0903; Acts 77th
  Leg., R.S., Ch. 1314, Sec. 3; New.)
  [Sections 8854.005-8854.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8854.051.  COMPOSITION OF BOARD; TERMS. (a) The
  district is governed by a board of five directors.
         (b)  Directors serve staggered four-year terms. (Acts 77th
  Leg., R.S., Ch. 966, Secs. 3.0905(a), (d); Acts 77th Leg., R.S., Ch.
  1314, Secs. 6(a), (d).)
         Sec. 8854.052.  ELECTION OF DIRECTORS. (a) Directors are
  elected according to the commissioners precinct method as provided
  by this section.
         (b)  One director is elected by the voters of the entire
  district.  One director is elected from each county commissioners
  precinct by the voters of that precinct.
         (c)  A person shall indicate on the application for a place
  on the ballot:
               (1)  the precinct that the person seeks to represent;
  or
               (2)  that the person seeks to represent the district at
  large.
         (d)  When the boundaries of the county commissioners
  precincts are changed, each director in office on the effective
  date of the change or elected to a term of office beginning on or
  after the effective date of the change serves in the precinct to
  which the director was elected for the entire term to which the
  director was elected, even though the change in boundaries places
  the person's residence outside the precinct for which the person
  was elected. (Acts 77th Leg., R.S., Ch. 966, Secs. 3.0906(a), (b),
  (d), (e); Acts 77th Leg., R.S., Ch. 1314, Secs. 7(a), (b), (d).)
         Sec. 8854.053.  ELECTION DATE. On the uniform election date
  in November of each even-numbered year, the appropriate number of
  directors shall be elected. (Acts 77th Leg., R.S., Ch. 966, Sec.
  3.0908(b); Acts 77th Leg., R.S., Ch. 1314, Sec. 9(b).)
         Sec. 8854.054.  QUALIFICATIONS FOR OFFICE. (a) To be
  qualified to be a candidate for or to serve as director at large, a
  person must be a registered voter in the district.
         (b)  To be a candidate for or to serve as director from a
  county commissioners precinct, a person must be a registered voter
  of that precinct, except as provided by Section 8854.052(d). (Acts
  77th Leg., R.S., Ch. 966, Sec. 3.0906(c); Acts 77th Leg., R.S., Ch.
  1314, Sec. 7(c); New.)
         Sec. 8854.055.  APPOINTMENT ON FAILURE TO QUALIFY. If a
  director fails to qualify for office, the commissioners court shall
  appoint a person to fill the vacancy. (Acts 77th Leg., R.S., Ch.
  966, Sec. 3.0905(g) (part); Acts 77th Leg., R.S., Ch. 1314, Sec.
  6(g) (part).)
  [Sections 8854.056-8854.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8854.101.  GROUNDWATER CONSERVATION DISTRICT POWERS
  AND DUTIES. The district has the rights, powers, privileges,
  functions, and duties provided by the general law of this state,
  including Chapter 36, Water Code, applicable to groundwater
  conservation districts created under Section 59, Article XVI, Texas
  Constitution. (Acts 77th Leg., R.S., Ch. 966, Sec. 3.0904 (part);
  Acts 77th Leg., R.S., Ch. 1314, Sec. 4(a) (part).)
         Sec. 8854.102.  AUTHORITY TO SET FEES. (a) In this section,
  "agriculture" includes:
               (1)  cultivating the soil;
               (2)  producing crops for:
                     (A)  human food;
                     (B)  animal feed;
                     (C)  planting seed; or
                     (D)  the production of fibers;
               (3)  floriculture, viticulture, silviculture, and
  horticulture, including the cultivation of plants in containers or
  non-soil media;
               (4)  raising, feeding, or keeping livestock or other
  animals for the production of food or fiber, leather, pelts, or
  other tangible products having a commercial value;
               (5)  wildlife management;
               (6)  planting cover crops, including cover crops
  cultivated for transplantation; and
               (7)  leaving land idle for the purpose of participating
  in any governmental program or normal crop or livestock rotation
  procedure.
         (b)  The district may set and collect fees for all services
  provided outside the boundaries of the district. The fees may not
  unreasonably exceed the cost to the district of providing the
  services outside the district.
         (c)  The district may assess a production fee based on the
  amount of water a permit authorizes to be withdrawn from a well or
  the amount actually withdrawn. The district may assess a
  production fee instead of or in conjunction with any tax otherwise
  imposed by the district. The district may use production fee
  revenue for any lawful purpose. Production fees may not exceed:
               (1)  $1 per acre-foot for water used for agriculture;
  or
               (2)  $10 per acre-foot annually for water used for
  another purpose.
         (d)  The district may assess a production fee under
  Subsection (c) for water that is:
               (1)  produced under an exemption under Section 36.117,
  Water Code; and
               (2)  subsequently sold to another person.
         (e)  Notwithstanding Section 36.117, Water Code, the
  district may assess a production fee under Subsection (c) of this
  section for any water produced for injection into a geologic
  formation for the recovery of oil or natural gas.  (Acts 77th Leg., R.S., Ch. 1314, Secs. 5(a), (c), (d), (e), (f).)
 
  CHAPTER 8857. TEXANA GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 8857.001.  DEFINITIONS 
  Sec. 8857.002.  NATURE OF DISTRICT 
  Sec. 8857.003.  FINDINGS OF PUBLIC USE AND BENEFIT 
  Sec. 8857.004.  DISTRICT TERRITORY 
  [Sections 8857.005-8857.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
  Sec. 8857.051.  COMPOSITION OF BOARD; TERMS 
  Sec. 8857.052.  ELECTION OF DIRECTORS 
  Sec. 8857.053.  ELECTION DATE 
  Sec. 8857.054.  QUALIFICATIONS FOR OFFICE 
  Sec. 8857.055.  BOARD VACANCY 
  Sec. 8857.056.  COMPENSATION; EXPENSES 
  [Sections 8857.057-8857.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 8857.101.  GROUNDWATER CONSERVATION DISTRICT
                   POWERS AND DUTIES 
  Sec. 8857.102.  CONTRACTS WITH OTHER GOVERNMENTAL
                   ENTITIES 
  [Sections 8857.103-8857.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 8857.151.  LIMITATION ON TAXES 
  CHAPTER 8857. TEXANA GROUNDWATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8857.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Texana Groundwater
  Conservation District. (Acts 76th Leg., R.S., Ch. 1331, Sec. 3;
  Acts 77th Leg., R.S., Ch. 307, Sec. 2; Acts 77th Leg., R.S., Ch.
  966, Sec. 3.1102; New.)
         Sec. 8857.002.  NATURE OF DISTRICT. The district is a
  groundwater conservation district created under and essential to
  accomplish the purposes of Section 59, Article XVI, Texas
  Constitution. (Acts 76th Leg., R.S., Ch. 1331, Secs. 1(a) (part),
  (c).)
         Sec. 8857.003.  FINDINGS OF PUBLIC USE AND BENEFIT. (a) The
  district is created to serve a public use and benefit.
         (b)  All land and other property included in the district
  will benefit from the works and projects accomplished by the
  district under the powers conferred by Section 59, Article XVI,
  Texas Constitution. (Acts 76th Leg., R.S., Ch. 1331, Sec. 4.)
         Sec. 8857.004.  DISTRICT TERRITORY. The district's
  boundaries are coextensive with the boundaries of Jackson County
  unless the district's territory has been modified under:
               (1)  Subchapter J, Chapter 36, Water Code; or
               (2)  other law. (Acts 76th Leg., R.S., Ch. 1331, Sec.
  2(a) (part); Acts 77th Leg., R.S., Ch. 307, Sec. 3; Acts 77th Leg.,
  R.S., Ch. 966, Sec. 3.1103; New.)
  [Sections 8857.005-8857.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8857.051.  COMPOSITION OF BOARD; TERMS. (a) The
  district is governed by a board of seven directors.
         (b)  Directors serve staggered four-year terms. (Acts 77th
  Leg., R.S., Ch. 307, Secs. 5(a), (d); Acts 77th Leg., R.S., Ch. 966,
  Secs. 3.1105(a), (d).)
         Sec. 8857.052.  ELECTION OF DIRECTORS. (a) Directors are
  elected according to the commissioners precinct method provided by
  this section.
         (b)  Three directors are elected by the voters of the entire
  district. One director is elected from each county commissioners
  precinct by the voters of that precinct.
         (c)  A person shall indicate on the application for a place
  on the ballot:
               (1)  the precinct that the person seeks to represent;
  or
               (2)  that the person seeks to represent the district at
  large.
         (d)  When the boundaries of the county commissioners
  precincts are changed, each director in office on the effective
  date of the change or elected to a term of office beginning on or
  after the effective date of the change serves in the precinct to
  which the director was elected for the entire term to which the
  director was elected, even though the change in boundaries places
  the person's residence outside the precinct for which the person
  was elected. (Acts 77th Leg., R.S., Ch. 307, Secs. 6(a), (b), (d);
  Acts 77th Leg., R.S., Ch. 966, Secs. 3.1106(a), (b), (d), (e).)
         Sec. 8857.053.  ELECTION DATE. On the uniform election date
  in May of each even-numbered year, the appropriate number of
  directors shall be elected. (Acts 77th Leg., R.S., Ch. 307, Sec.
  8(b); Acts 77th Leg., R.S., Ch. 966, Sec. 3.1108(b).)
         Sec. 8857.054.  QUALIFICATIONS FOR OFFICE. (a) To be
  qualified to be a candidate for or to serve as director at large, a
  person must be a registered voter in the district.
         (b)  To be a candidate for or to serve as director from a
  county commissioners precinct, a person must be a registered voter
  of that precinct, except as provided by Section 8857.052(d). (Acts
  77th Leg., R.S., Ch. 307, Sec. 6(c); Acts 77th Leg., R.S., Ch. 966,
  Sec. 3.1106(c); New.)
         Sec. 8857.055.  BOARD VACANCY. If there is a vacancy on the
  board, the remaining directors shall appoint a director to serve
  the remainder of the term. (Acts 77th Leg., R.S., Ch. 307, Sec.
  5(g); Acts 77th Leg., R.S., Ch. 966, Sec. 3.1105(g).)
         Sec. 8857.056.  COMPENSATION; EXPENSES. A director may not
  receive a salary or other compensation for service as a director but
  may be reimbursed for actual expenses of attending meetings at the
  rate in effect for employees of Jackson County. (Acts 77th Leg.,
  R.S., Ch. 307, Sec. 5(h); Acts 77th Leg., R.S., Ch. 966, Sec.
  3.1105(h).)
  [Sections 8857.057-8857.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8857.101.  GROUNDWATER CONSERVATION DISTRICT POWERS
  AND DUTIES. The district has the rights, powers, privileges,
  functions, and duties provided by the general law of this state,
  including Chapter 36, Water Code, applicable to groundwater
  conservation districts created under Section 59, Article XVI, Texas
  Constitution. (Acts 77th Leg., R.S., Ch. 307, Sec. 4(a) (part);
  Acts 77th Leg., R.S., Ch. 966, Sec. 3.1104 (part).)
         Sec. 8857.102.  CONTRACTS WITH OTHER GOVERNMENTAL ENTITIES.
  (a) The district may contract with other governmental entities.
         (b)  The district may contract with other governmental
  entities, including a river authority in the district, to perform
  district functions.
         (c)  A river authority that contracts with the district under
  Subsection (b) may perform district functions as provided by the
  contract. (Acts 77th Leg., R.S., Ch. 307, Sec. 10; Acts 77th Leg.,
  R.S., Ch. 966, Sec. 3.1110.)
  [Sections 8857.103-8857.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8857.151.  LIMITATION ON TAXES.  The district may not
  impose an ad valorem tax at a rate that exceeds two cents on each
  $100 valuation of taxable property in the district.  (Acts 77th
  Leg., R.S., Ch. 307, Sec. 9; Acts 77th Leg., R.S., Ch. 966, Sec.
  3.1109.)
         SECTION 1.04.  Title 6, Special District Local Laws Code, is
  amended by adding Subtitle M to read as follows:
  SUBTITLE M.  WATER POWER CONTROL DISTRICTS
  CHAPTER 9701. RED BLUFF WATER POWER CONTROL DISTRICT: TRANSFER OF
  FUNDS
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 9701.001.  DEFINITIONS 
  Sec. 9701.002.  NATURE OF DISTRICT 
  Sec. 9701.003.  MEMBER DISTRICTS 
  [Sections 9701.004-9701.150 reserved for expansion]
  SUBCHAPTER B. GENERAL FINANCIAL PROVISIONS
  Sec. 9701.151.  USE OF MONEY 
  Sec. 9701.152.  ALLOCATION OF EARNED INTEREST 
  Sec. 9701.153.  INVESTMENT AND EXPENDITURE OF PRINCIPAL 
  Sec. 9701.154.  ANNUAL ACCOUNTING 
  SUBTITLE M.  WATER POWER CONTROL DISTRICTS
  CHAPTER 9701. RED BLUFF WATER POWER CONTROL DISTRICT: TRANSFER OF
  FUNDS
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 9701.001.  DEFINITIONS.  In this chapter:
               (1)  "Member district" means a district listed as a
  member of the Red Bluff District in Section 9701.003.
               (2)  "Principal amount" means the amount of $13.8
  million, representing the amount received by this state by order of
  the United States Supreme Court in the case of Texas v. New Mexico
  (494 U.S. 111 (1990)) and deposited to the credit of the Pecos River
  compact account established by Section 1, Chapter 3, Acts of the
  71st Legislature, 5th Called Session, 1990.
               (3)  "Red Bluff District" means the Red Bluff Water
  Power Control District. (Acts 72nd Leg., 1st C.S., Ch. 4, Secs.
  10.01(3) (part), (4), (5), (6) (part).)
         Sec. 9701.002.  NATURE OF DISTRICT.  The Red Bluff District
  is a water power control district created under Chapter 76, General
  Laws, Acts of the 43rd Legislature, Regular Session, 1933 (Article
  7807d, Vernon's Texas Civil Statutes). (Acts 72nd Leg., 1st C.S.,
  Ch. 4, Sec. 10.01(6) (part).)
         Sec. 9701.003.  MEMBER DISTRICTS.  The Red Bluff District is
  composed of the following member districts:
               (1)  Loving County Water Improvement District No. 1;
               (2)  Reeves County Water Improvement District No. 2;
               (3)  Ward County Irrigation District No. 3;
               (4)  Ward County Irrigation District No. 1;
               (5)  Ward County Water Improvement District No. 2;
               (6)  Pecos County Water Improvement District No. 2; and
               (7)  Pecos County Water Improvement District No. 3.  
  (Acts 72nd Leg., 1st C.S., Ch. 4, Sec. 10.01(3).)
  [Sections 9701.004-9701.150 reserved for expansion]
  SUBCHAPTER B. GENERAL FINANCIAL PROVISIONS
         Sec. 9701.151.  USE OF MONEY.  (a) The money received by the
  Red Bluff District under Chapter 4, Acts of the 72nd Legislature,
  1st Called Session, 1991, and any interest earned on the money, may
  be used by the Red Bluff District or a member district only for
  agricultural or irrigation projects, including an associated water
  quality improvement project that affects surface water irrigators
  in Loving, Pecos, Reeves, or Ward County.
         (b)  A project authorized under Subsection (a) may include:
               (1)  the operation of the Red Bluff District or a member
  district; and
               (2)  the maintenance of a water supply reservoir,
  associated downstream diversion facility, or internal distribution
  system of the Red Bluff District or a member district. (Acts 72nd
  Leg., 1st C.S., Ch. 4, Sec. 10.03.)
         Sec. 9701.152.  ALLOCATION OF EARNED INTEREST.  The Red
  Bluff District shall annually distribute interest earned on the
  principal amount as follows:
               (1)  one-third to the Red Bluff District; and
               (2)  two-thirds to the member districts, to be
  allocated among the member districts in the same percentages as
  each member district's pro rata share of water under the master
  contract between the Red Bluff District and the member districts
  dated March 8, 1934. (Acts 72nd Leg., 1st C.S., Ch. 4, Secs.
  10.01(2), 10.04(a), (d).)
         Sec. 9701.153.  INVESTMENT AND EXPENDITURE OF PRINCIPAL.
  (a)  The Red Bluff District shall invest the principal amount in
  accordance with Chapter 2256, Government Code.
         (b)  The Red Bluff District shall comply with Chapter 2257,
  Government Code, to the extent applicable.
         (c)  The Red Bluff District may not spend any portion of the
  principal amount unless the expenditure is approved by an
  affirmative vote of:
               (1)  the board of directors of the Red Bluff District;
  and
               (2)  the boards of directors of at least five member
  districts.  (Acts 72nd Leg., 1st C.S., Ch. 4, Secs. 10.04(c), (e).)
         Sec. 9701.154.  ANNUAL ACCOUNTING.  The Red Bluff District
  shall provide to each member district and the Texas Water
  Development Board an annual accounting of the Red Bluff District's
  administration of money under this chapter and of the amount of
  interest earned.  (Acts 72nd Leg., 1st C.S., Ch. 4, Secs. 10.01(1),
  10.05.)
  ARTICLE 2.  CONFORMING AMENDMENTS
         SECTION 2.01.  Subsection (a), Section 1, Chapter 1331, Acts
  of the 76th Legislature, Regular Session, 1999, is amended to read
  as follows:
         (a)  The following groundwater conservation districts are
  created:
               (1)  [Cow Creek Groundwater Conservation District;
               [(2)  Brazos Valley Groundwater Conservation District;
               [(3)]  Crossroads Groundwater Conservation District;
               (2) [(4)     Hays Trinity Groundwater Conservation
  District;
               [(5)]  McMullen Groundwater Conservation District;
               (3) [(6)     Middle Pecos Groundwater Conservation
  District;
               [(7)]  Red Sands Groundwater Conservation District;
  and
               (4) [(8)  Refugio Groundwater Conservation District;
               [(9)]  Southeast Trinity Groundwater Conservation
  District[; and
               [(10)  Texana Groundwater Conservation District].
         SECTION 2.02.  Subsection (a), Section 2, Chapter 1331, Acts
  of the 76th Legislature, Regular Session, 1999, is amended to read
  as follows:
         (a)  The boundaries of the following groundwater
  conservation districts are coextensive with county boundaries as
  follows:
               (1)  [the boundaries of the Cow Creek Groundwater
  Conservation District are coextensive with the boundaries of
  Kendall County;
               [(2)     the boundaries of the Brazos Valley Groundwater
  Conservation District are coextensive with the boundaries of
  Robertson and Brazos Counties;
               [(3)]  the boundaries of the Crossroads Groundwater
  Conservation District are coextensive with the boundaries of
  Victoria County; and
               (2) [(4)]  the boundaries of the McMullen Groundwater
  Conservation District are coextensive with the boundaries of
  McMullen County[;
               [(5)     the boundaries of the Middle Pecos Groundwater
  Conservation District are coextensive with the boundaries of Pecos
  County;
               [(6)     the boundaries of the Refugio Groundwater
  Conservation District are coextensive with the boundaries of
  Refugio County; and
               [(7)     the boundaries of the Texana Groundwater
  Conservation District are coextensive with the boundaries of
  Jackson County].
  ARTICLE 3. REPEALERS
         SECTION 3.01.  The following statutes are repealed:
               (1)  Chapter 38, Acts of the 60th Legislature, Regular
  Session, 1967;
               (2)  Chapter 1017, Acts of the 70th Legislature,
  Regular Session, 1987;
               (3)  Chapter 183, Acts of the 60th Legislature, Regular
  Session, 1967;
               (4)  Chapter 431, Acts of the 60th Legislature, Regular
  Session, 1967;
               (5)  Article 3, Chapter 132, Acts of the 74th
  Legislature, Regular Session, 1995;
               (6)  Chapter 548, Acts of the 71st Legislature, Regular
  Session, 1989;
               (7)  Chapter 54, Acts of the 58th Legislature, Regular
  Session, 1963;
               (8)  Chapter 470, Acts of the 61st Legislature, Regular
  Session, 1969;
               (9)  Chapter 200, Acts of the 62nd Legislature, Regular
  Session, 1971;
               (10)  Chapter 1047, Acts of the 68th Legislature,
  Regular Session, 1983;
               (11)  Chapter 135, Acts of the 58th Legislature,
  Regular Session, 1963;
               (12)  Chapter 16, Acts of the 59th Legislature, Regular
  Session, 1965;
               (13)  Chapter 1055, Acts of the 68th Legislature,
  Regular Session, 1983;
               (14)  Chapter 653, Acts of the 59th Legislature,
  Regular Session, 1965;
               (15)  Sections 2 and 3, Chapter 838, Acts of the 66th
  Legislature, Regular Session, 1979;
               (16)  Chapter 24, Acts of the 72nd Legislature, Regular
  Session, 1991;
               (17)  Chapter 422, Acts of the 60th Legislature,
  Regular Session, 1967;
               (18)  Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
  14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25, Chapter 265, Acts
  of the 67th Legislature, Regular Session, 1981; and
               (19)  Chapter 848, Acts of the 62nd Legislature,
  Regular Session, 1971.
         SECTION 3.02.  The following statutes are repealed:
               (1)  Sections 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14,
  15, and 16, Chapter 472, Acts of the 69th Legislature, Regular
  Session, 1985;
               (2)  Chapter 201, Acts of the 64th Legislature, Regular
  Session, 1975;
               (3)  Sections 3, 4, and 5, Chapter 588, Acts of the 71st
  Legislature, Regular Session, 1989;
               (4)  Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10, Chapter
  1066, Acts of the 75th Legislature, Regular Session, 1997;
               (5)  Section 7, Chapter 1141, Acts of the 76th
  Legislature, Regular Session, 1999;
               (6)  Sections 3 and 4, Chapter 410, Acts of the 81st
  Legislature, Regular Session, 2009;
               (7)  Part 13, Article 3, Chapter 966, Acts of the 77th
  Legislature, Regular Session, 2001;
               (8)  Article 2, Chapter 1307, Acts of the 77th
  Legislature, Regular Session, 2001;
               (9)  Part 1, Article 3, Chapter 966, Acts of the 77th
  Legislature, Regular Session, 2001;
               (10)  Chapter 1349, Acts of the 77th Legislature,
  Regular Session, 2001;
               (11)  Sections 4 and 5, Chapter 1064, Acts of the 81st
  Legislature, Regular Session, 2009;
               (12)  Chapter 1352, Acts of the 77th Legislature,
  Regular Session, 2001;
               (13)  Sections 9 and 10, Chapter 192, Acts of the 80th
  Legislature, Regular Session, 2007;
               (14)  Chapter 1359, Acts of the 77th Legislature,
  Regular Session, 2001;
               (15)  Section 2, Chapter 12, Acts of the 81st
  Legislature, Regular Session, 2009;
               (16)  Subsection (b), Section 2, Chapter 1331, Acts of
  the 76th Legislature, Regular Session, 1999;
               (17)  Part 3, Article 3, Chapter 966, Acts of the 77th
  Legislature, Regular Session, 2001;
               (18)  Chapter 65, Acts of the 69th Legislature, Regular
  Session, 1985;
               (19)  Sections 13 and 14, Chapter 113, Acts of the 81st
  Legislature, Regular Session, 2009;
               (20)  Chapter 1299, Acts of the 77th Legislature,
  Regular Session, 2001;
               (21)  Part 9, Article 3, Chapter 966, Acts of the 77th
  Legislature, Regular Session, 2001;
               (22)  Chapter 1314, Acts of the 77th Legislature,
  Regular Session, 2001;
               (23)  Chapter 307, Acts of the 77th Legislature,
  Regular Session, 2001;
               (24)  Part 11, Article 3, Chapter 966, Acts of the 77th
  Legislature, Regular Session, 2001; and
               (25)  Article 10, Chapter 4, Acts of the 72nd
  Legislature, 1st Called Session, 1991.
  ARTICLE 4. GENERAL MATTERS
         SECTION 4.01.  LEGISLATIVE INTENT OF NO SUBSTANTIVE CHANGE.
  This Act is enacted under Section 43, Article III, Texas
  Constitution. This Act is intended as a codification only, and no
  substantive change in the law is intended by this Act. This Act
  does not increase or decrease the territory of any special district
  of the state as those boundaries exist on the effective date of this
  Act.
         SECTION 4.02.  PRESERVATION OF VALIDATION MADE BY PREVIOUS
  LAW. (a) The repeal of a law, including a validating law, by this
  Act does not remove, void, or otherwise affect in any manner a
  validation under the repealed law. The validation is preserved and
  continues to have the same effect that it would have if the law were
  not repealed.
         (b)  Subsection (a) of this section does not diminish the
  saving provisions prescribed by Section 311.031, Government Code.
         SECTION 4.03.  EFFECTIVE DATE. This Act takes effect April
  1, 2013.