    SPECIAL DISTRICT LOCAL LAWS CODE
    TITLE 3. HEALTH
    SUBTITLE A. HOSPITAL DISTRICTS
    CHAPTER 1023.  EASTLAND MEMORIAL HOSPITAL DISTRICT
    SUBCHAPTER A.  GENERAL PROVISIONS
    Sec. 1023.001.  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 Eastland Memorial Hospital District.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.002.  AUTHORITY FOR OPERATION.  The district operates and is financed as provided by Section 9, Article IX, Texas Constitution, and by this chapter.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.003.  ESSENTIAL PUBLIC FUNCTION.  The district is a public entity performing an essential public function.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.004.  DISTRICT TERRITORY.  The district is composed of the territory described by Section 1.03, Chapter 221, Acts of the 71st Legislature, Regular Session, 1989, unless the boundaries of the district are expanded under Subchapter H or other applicable law.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.Amended by: Acts 2013, 83rd Leg., R.S., Ch. 291 (H.B. 1237), Sec. 1, eff. June 14, 2013.

    Sec. 1023.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION.  The state may not be obligated for the support or maintenance of the district.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.  The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    SUBCHAPTER B.  DISTRICT ADMINISTRATION
    Sec. 1023.051.  BOARD ELECTION; TERMS.  (a)  The district is governed by a board of nine directors elected from the district at large.(b)  Unless four-year terms are established under Section 285.081, Health and Safety Code:(1)  directors serve staggered two-year terms; and(2)  an election shall be held on the uniform election date in May of each year to elect the appropriate number of directors.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.052.  NOTICE OF ELECTION. Notice of an election of directors shall be published in accordance with Section 4.003, Election Code, in a newspaper with general circulation in the district.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.Amended by: Acts 2013, 83rd Leg., R.S., Ch. 291 (H.B. 1237), Sec. 1, eff. June 14, 2013.

    Sec. 1023.053.  QUALIFICATIONS FOR OFFICE.  To be eligible to be a candidate for or to serve as a director, a person must be:(1)  a district resident; and(2)  a qualified voter.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.054.  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 at least five director positions become vacant, the remaining directors may call a special election to fill the vacancies for the unexpired terms.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.Amended by: Acts 2023, 88th Leg., R.S., Ch. 848 (H.B. 3191), Sec. 15, eff. September 1, 2023.

    Sec. 1023.055.  OFFICERS.  (a)  The board shall elect a president and a vice president from among its members.(b)  The board shall appoint a secretary.(c)  Each officer of the board serves for a term of one year.(d)  The board shall fill a vacancy in a board office for the unexpired term.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.056.  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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.057.  VOTING REQUIREMENT.  A concurrence of a majority of the directors voting is necessary in any matter relating to district business.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.058.  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 determined by the board.(c)  Before assuming the duties of district administrator, the board may require the administrator to 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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.059.  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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.060.  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 attorney for the district serve at the will of the board and are entitled to the compensation determined by the board.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.061.  EMPLOYEES; APPOINTMENT AND RECRUITMENT OF STAFF.  (a)  The district may employ technicians, nurses, fiscal agents, accountants, architects, additional attorneys, and other necessary employees.(b)  The board may appoint to the staff any doctors the board considers necessary for the efficient operation of the district and may make temporary appointments as necessary.(c)  The board may delegate to the district administrator the authority to employ persons for the district.(d)  The board may recruit physicians and other health care professionals or persons.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.062.  PERSONNEL CONTRACTS.  (a)  The board may contract to provide administrative or other personnel for the operation of the hospital facilities.(b)  The term of the contract may not exceed 25 years.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.063.  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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    SUBCHAPTER C.  POWERS AND DUTIES
    Sec. 1023.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for:(1)  operating hospital facilities; and (2)  providing medical and hospital care for the district's needy inhabitants.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.102.  RESTRICTION ON COUNTY TAXATION AND DEBT.  Eastland County may not impose a tax or issue bonds or other obligations to provide hospital or medical care for district residents.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  The board shall manage, control, and administer the hospital system and the district's money and resources.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.104.  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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.105.  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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.106.  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 to individuals, corporations, or other legal entities.(d)  The board may sell or otherwise dispose of property, including facilities or equipment, for the district.  The board shall give notice of intent to sell land or buildings by publishing a notice of intent in a newspaper with general circulation in Eastland County not later than the 30th day before the date of sale.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.107.  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 for the district to exercise a right or authority conferred by this chapter.(b)  The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, except 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 writ of error.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.108.  COST OF RELOCATING OR ALTERING PROPERTY.  In exercising the power of eminent domain, if the board requires relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of any railroad, highway, pipeline, or electric transmission and electric distribution, telegraph, or telephone line, conduit, pole, or facility, the district shall pay the actual cost of relocating, raising, lowering, rerouting, changing the grade of, or altering the construction to provide comparable replacement, without enhancement of facilities, after deducting the net salvage value derived from the old facility.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.109.  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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.110.  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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.111.  OPERATING AND MANAGEMENT CONTRACTS.  The board may enter into an operating or management contract relating to a hospital facility for the district.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR SERVICES.  The board may contract with a political subdivision of the state or 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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.113.  PROVISION OF CERTAIN HEALTH SERVICES.  The district may:(1)  operate or provide for the operation of a mobile emergency medical service; and(2)  establish and operate a home health service.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.114.  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; and(2)  a relative of the patient who is legally responsible for the patient's support.(b)  The district without charge shall provide to a patient who resides in the district the care and treatment that the patient or a relative of the patient who is legally responsible for the patient's support cannot pay.(c)  On determining that the patient or a relative legally responsible for the patient's support can pay for all or part of the care and treatment provided by the district, the district administrator shall report that determination to the board, and the board shall issue an order directing the patient or the relative to pay the district a specified amount each week.  The amount must be based on the individual's ability to pay.(d)  The district administrator may collect money owed to the district from the patient's estate or from that of a relative who was legally responsible for the patient's support in the manner provided by law for the collection of expenses in the last illness of a deceased person.(e)  If there is a dispute relating to an individual's ability to pay or if the district administrator has any doubt concerning an individual's ability to pay, the board shall:(1)  call witnesses;(2)  hear and resolve the question; and(3)  issue a final order.(f)  A final order of the board may be appealed to a district court in Eastland County.  The substantial evidence rule applies to the appeal.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.115.  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 hospital, as provided by Chapter 61, Health and Safety Code.(b)  The board shall require the sheriff of Eastland County or the police chief of the City of Eastland to reimburse the district for the district's care and treatment of a person who is confined in a jail facility of Eastland County or the City of Eastland and is not a district resident.(c)  On behalf of the district, the board may contract with the state or federal government for that government to reimburse the district for treatment of a sick or injured person.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.116.  AUTHORITY TO SUE AND BE SUED.  The board may sue and be sued on behalf of the district.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
    Sec. 1023.151.  BUDGET.  (a)  The district administrator shall prepare a proposed annual budget for the district.(b)  The proposed budget must contain a complete financial statement, including a statement of:(1)  the outstanding obligations of the district;(2)  the amount of cash on hand in each district fund;(3)  the amount of money received by the district from all sources during the previous year;(4)  the amount of money available to the district from all sources during the ensuing year;(5)  the amount of the balances expected at the end of the year in which the budget is being prepared;(6)  the estimated amount of revenue and balances available to cover the proposed budget; and(7)  the estimated tax rate required.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.152.  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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.153.  AMENDMENTS TO BUDGET.  After adoption, the annual budget may be amended on the board's approval.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.154.  RESTRICTION ON EXPENDITURES.  Money may be spent only for an expense included in the budget or an amendment to the budget.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.155.  FISCAL YEAR.  (a)  The district operates on the fiscal year established by the board.(b)  The fiscal year may not be changed:(1)  when revenue bonds of the district are outstanding; or(2)  more than once in a 24-month period.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.156.  ANNUAL AUDIT.  The board annually shall have an audit made of the district's financial condition.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.157.  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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.158.  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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.159.  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 1023.160(b) and money transmitted to a bank for payment of bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and shall remain on deposit.  This subsection does not limit the power of the board to place a portion of district money on time deposit or to purchase certificates of deposit.(c)  The district may not deposit money with a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation unless the bank first executes a bond or other security in an amount sufficient to secure from loss the district money that exceeds the amount secured by the Federal Deposit Insurance Corporation.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.160.  SPENDING AND INVESTMENT RESTRICTIONS.  (a)  Except as provided by Sections 1023.110, 1023.161, 1023.162, 1023.201, 1023.204, and 1023.205, the district may not incur a debt payable from district revenue other than 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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.161.  GENERAL AUTHORITY TO BORROW MONEY; SECURITY.  (a)  The board may borrow money at a rate of interest 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 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 tax revenue or bonds are pledged must mature not later than the first 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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.162.  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 lawful 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)  tax revenue to be collected 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 tax revenue or bonds are pledged must mature not later than the first 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 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 tax revenue or bonds are pledged to pay the loan, the purpose for which the pledged taxes were imposed or the pledged bonds were authorized.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    SUBCHAPTER E.  BONDS
    Sec. 1023.201.  GENERAL OBLIGATION BONDS.  The board may issue and sell general obligation bonds authorized by an election in the name and on the faith and credit of the district to:(1)  purchase, construct, acquire, repair, or renovate buildings or improvements; or(2)  equip buildings or improvements for hospital purposes.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  At the time general obligation bonds are issued by the district under Section 1023.201, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature.(b)  The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed the limit approved by the voters at the election authorizing the imposition of the tax.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.203.  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 amounts of the bonds to be authorized; and(5)  the maximum maturity of the bonds.(d)  Notice of a bond election must be given as provided by Section 1251.003, Government Code.(e)  The board shall declare the results of the election.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.204.  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, and 264.046-264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.205.  REFUNDING BONDS.  (a)  The board may issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.(b)  A refunding bond may be:(1)  sold, with the proceeds of the refunding bond applied to the payment of the outstanding indebtedness; or(2)  exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.206.  MATURITY OF BONDS.  District bonds must mature not later than 50 years after the date of issuance.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.207.  EXECUTION OF BONDS.  (a)  The board president shall execute the district's bonds in the district's name.(b)  The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.208.  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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    SUBCHAPTER F.  TAXES
    Sec. 1023.251.  IMPOSITION OF AD VALOREM TAX.  (a)  The board may impose a tax on all property in the district subject to district taxation.(b)  The tax may be used to pay:(1)  indebtedness issued or assumed by the district; and(2)  the maintenance and operating expenses of the district.(c)  The district may not impose a tax to pay the principal of or interest on revenue bonds issued under this chapter.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.252.  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 a tax.(b)  The tax rate for all purposes may not exceed 37.5 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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.253.  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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    SUBCHAPTER G.  DISSOLUTION
    Sec. 1023.301.  DISSOLUTION; ELECTION.  (a)  The district may be dissolved and the district's assets and liabilities sold or transferred to another person only on approval of a majority of the district voters voting at an election held for that purpose.(b)  A majority of the directors may order an election to dissolve the district and transfer its assets and liabilities.(c)  The board shall order an election if the board receives a petition requesting an election that is signed by at least 15 percent of the registered voters in the district, according to the most recent official list of registered voters.(c-1)  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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.Amended by: Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 21.003, eff. September 1, 2009.

    Sec. 1023.302.  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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.303.  BALLOT.  The ballot for an election under this subchapter must be printed to permit voting for or against the proposition:  "The dissolution of the Eastland Memorial Hospital District and the transfer of its assets and liabilities in the following manner:  __________ (insert provisions for transfer)."
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.304.  ELECTION RESULTS.  (a)  If the board finds the election results favor the proposition to dissolve the district, the board shall:(1)  issue an order declaring the district dissolved; and(2)  proceed with the sale or transfer of the district's assets and liabilities according to the plan proposed on the ballot.(b)  If the board finds the election results do not favor the proposition to dissolve the district, another dissolution election may not be held before the first anniversary of the date of the election in which voters disapproved the proposition.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.305.  TRANSFER OR ADMINISTRATION OF ASSETS.  (a)  If a majority of the votes in an election under this subchapter favor dissolution, the board shall:(1)  transfer the district's assets to Eastland County or another governmental entity in Eastland County; or(2)  administer the district's assets and debts until all assets have been disposed of and all district debts have been paid or settled.(b)  If the board makes the transfer under Subsection (a)(1), Eastland County or the governmental entity assumes all debts and obligations of the district at the time of the transfer, and the district is dissolved.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.306.  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:(1)  contravene a trust indenture or bond resolution relating to the outstanding bonds of the district; or(2)  diminish or impair the rights of the holders of any outstanding bonds, warrants, or other obligations 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 citizens in the district, including the citizens' 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 embracing the district; and(2)  the transferred assets are used for the benefit of the citizens formerly in the district.(e)  A grant from federal funds is an obligation to be repaid in satisfaction.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.307.  IMPOSITION OF TAX AND RETURN OF SURPLUS TAXES.  (a)  If a majority of the votes in an election to dissolve the district favor dissolution, the board shall:(1)  determine the debt owed by the district; and(2)  impose a tax on the taxable property in the district at a rate that will raise sufficient revenue to pay the debt owed by the district.(b)  On the payment of all outstanding debts and obligations of the district, the board shall order the secretary to return to each district taxpayer the taxpayer's pro rata share of all unused tax money.(c)  A taxpayer may request that the taxpayer's share of surplus tax money be credited to the taxpayer's county taxes.  If a taxpayer requests the credit, the board shall direct the secretary to transmit the funds to the county tax assessor-collector.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    Sec. 1023.308.  REPORT; DISSOLUTION ORDER.  (a)  After the district has paid all district debts and has disposed of all district assets as prescribed by this subchapter, the board shall file a written report with the Commissioners Court of Eastland County summarizing the board's actions in dissolving the district.(b)  Not later than the 10th day after the date the Commissioners Court of Eastland 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.
    Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

    SUBCHAPTER H. EXPANSION OF DISTRICT TERRITORY
    Sec. 1023.401.  EXPANSION OF DISTRICT TERRITORY.  (a) The district may expand its territory in the manner provided by Section 286.101, Health and Safety Code, for the expansion of the territory of a hospital district created under Chapter 286, Health and Safety Code.(b)  The board shall hold an election under this section on the first uniform election date that allows the board sufficient time to comply with applicable requirements of law.
    Added by Acts 2013, 83rd Leg., R.S., Ch. 291 (H.B. 1237), Sec. 2, eff. June 14, 2013.