CHAPTER 1054. LYNN COUNTY HOSPITAL DISTRICT

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 3. HEALTH

SUBTITLE A. HOSPITAL DISTRICTS

CHAPTER 1054. LYNN COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1054.001. 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 Lynn County Hospital District.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.002. AUTHORITY FOR OPERATION. The district operates

in accordance with Section 9, Article IX, Texas Constitution, and

has the rights, powers, and duties provided by this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.003. ESSENTIAL PUBLIC FUNCTION. The district performs

an essential public function in carrying out the purposes of this

chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.004. DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Lynn County,

Texas.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.005. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.006. 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, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1054.051. BOARD ELECTION; TERM. (a) The board consists of

seven directors elected from the district at large.

(b) Directors serve staggered three-year terms.

(c) An election shall be held on the uniform election date in

May of each year to elect the appropriate number of directors.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.052. NOTICE OF ELECTION. At least 10 days before the

date of an election of directors, notice of the election shall be

published one time in a newspaper of general circulation in the

district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.053. 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 fewer than 25 registered voters; and

(2) filed before the 31st day before the date of the election.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.054. QUALIFICATIONS FOR OFFICE. (a) To be eligible

to be a candidate for or to serve as a director, a person must

be:

(1) a district resident; and

(2) a qualified voter.

(b) A district employee may not serve as a director.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.055. 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 a director's bond with district money.

(c) Each director's bond shall be kept in the district's

permanent records.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.056. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.0565. REMOVAL OF DIRECTOR. (a) It is a ground for

removal from the board that a director:

(1) is absent from more than half of the regularly scheduled

board meetings that the director is eligible to attend during a

calendar year without an excuse approved by a majority vote of

the board; or

(2) fails to timely pay a federal, state, or local tax,

including an ad valorem tax.

(b) The validity of an action of the board is not affected by

the fact that it is taken when a ground for removal of a director

exists.

(c) If the administrator or manager of the hospital district has

knowledge that a potential ground for removal exists, the

administrator or manager shall notify the president of the board

of the potential ground. The president shall then notify the

county attorney and district attorney that a potential ground for

removal exists and request that the county or district attorney

bring an action in the nature of quo warranto under Chapter 66,

Civil Practice and Remedies Code, as appropriate. If the

potential ground for removal involves the president, the

administrator or manager shall notify the vice president of the

board, who shall then notify the county attorney and district

attorney that a potential ground for removal exists and request

an action in the nature of quo warranto.

Added by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.019, eff. September 1, 2009.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

479, Sec. 2, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

591, Sec. 2, eff. September 1, 2009.

Sec. 1054.057. OFFICERS. (a) The board shall elect:

(1) a president and a vice president from among its members; and

(2) a secretary, who need not be a director.

(b) Each officer of the board serves for a term of one year.

(c) The board shall fill a vacancy in a board office for the

unexpired term.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.058. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.059. VOTING REQUIREMENT. A concurrence of four

directors is sufficient in any matter relating to district

business.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.060. 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 are entitled to the

compensation determined by the board.

(d) On assuming the duties of district administrator, the

administrator shall execute a bond payable to the district in an

amount set by the board of not less than $5,000 that:

(1) is conditioned on the administrator performing the

administrator's duties; and

(2) contains other conditions the board may require.

(e) The board may pay for the bond with district money.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.061. 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 affairs of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.062. EMPLOYEES; APPOINTMENT OF STAFF. (a) The board

may appoint to the staff any doctors and employ any technicians,

nurses, and other employees the board considers necessary for the

efficient operation of the district.

(b) The district may employ fiscal agents, accountants,

architects, and attorneys the board considers proper.

(c) The board may provide that the district administrator has

the authority to hire district employees, including technicians

and nurses.

(d) The board may define the duties, functions, and

responsibilities of district staff and employees.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.063. RECRUITMENT OF MEDICAL STAFF. The board may

spend district money to recruit physicians, nurses, and other

trained medical personnel. The board may pay the tuition or other

education-related costs or expenses of a person who:

(1) graduates from a medical school, nursing school, or an

institution of higher education; and

(2) contractually agrees to become a district employee.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.064. CONTINUING EDUCATION; RETRAINING. The board may

spend district money for continuing education and retraining of

district employees.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.065. RETIREMENT BENEFITS. The board may provide

retirement benefits for district employees by:

(1) establishing or administering a retirement program; or

(2) participating in:

(A) the Texas County and District Retirement System; or

(B) another statewide retirement system in which the district is

eligible to participate.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1054.101. DISTRICT RESPONSIBILITY. The district has full

responsibility for operating all hospital facilities for

providing medical and hospital care for the district's needy

inhabitants.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.102. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The

board shall manage, control, and administer the district's

hospitals and hospital system.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.104. HOSPITAL SYSTEM. The district shall provide for

the establishment of a hospital or hospital system in the

district by:

(1) purchasing, constructing, acquiring, repairing, or

renovating buildings and improvements;

(2) equipping the buildings and improvements; and

(3) administering the buildings and improvements for hospital

purposes.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.105. RULES. The board may adopt rules for the

operation of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.106. PURCHASING AND ACCOUNTING PROCEDURES. The board

may prescribe:

(1) the method and manner of making purchases and expenditures

by and for the district in a manner consistent with Subtitle C,

Title 8, Local Government Code; and

(2) all accounting and control procedures.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.

(a) The board shall determine the type, number, and location of

buildings required to maintain an adequate hospital system.

Nothing in this chapter prohibits the establishing and equipping

of a clinic as part of the hospital system.

(b) The board may lease all or part of the district's buildings

and other facilities on terms considered to be in the best

interest of the district's inhabitants. The term of the lease

may not exceed 25 years.

(c) The district may acquire equipment for use in the district's

hospital system and mortgage or pledge the property as security

for the payment of the purchase price.

(d) The district may sell or otherwise dispose of any property,

including equipment, on terms the board finds are in the best

interest of the district's inhabitants.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.108. EMINENT DOMAIN. (a) The district may exercise

the power of eminent domain to acquire a fee simple or other

interest in any type of property located in district territory if

the interest is necessary or convenient for the district to

exercise a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain in

the manner provided by Chapter 21, Property Code, 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 writ of error.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.109. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.110. 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 prescribed 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.111. OPERATING AND MANAGEMENT CONTRACTS. The board

may enter into an operating or management contract relating to a

district facility.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

SERVICES. (a) 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.

(b) The board may contract with this state or a federal agency

for the care and treatment of a sick or injured person.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.113. PROVISION OF CERTAIN HEALTH SERVICES. The board

may provide emergency services, home health care services,

long-term health care services, special care facility services,

or any other health care services the board determines are

necessary to meet the needs of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.114. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a

patient who resides in the district is admitted to a district

facility, the district administrator may have an inquiry made

into the circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for the

patient's support.

(b) If the district administrator determines that the patient or

those relatives cannot pay all or part of the costs of the care

and treatment in the hospital, the amount of the costs that

cannot be paid becomes a charge against the district.

(c) If the district administrator determines that the patient or

those relatives can pay for all or part of the costs of the

patient's care and treatment, the patient or those relatives

shall be ordered to pay the district a specified amount each week

for the patient's care and support. The amount ordered must be

proportionate to the person's financial ability.

(d) The district administrator may collect the amount from the

patient's estate, or from any relative who is legally liable for

the patient's support, in the manner provided by law for the

collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt in

the mind of the district administrator, the board shall hold a

hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue any appropriate orders.

(f) A final order of the board may be appealed to the district

court. The substantial evidence rule applies to the appeal.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.115. 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 who is confined in a

jail facility of the county or municipality and is not a resident

of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.116. AUTHORITY TO SUE AND BE SUED. The district,

through the board, may sue and be sued.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1054.151. BUDGET. The district administrator shall prepare

an annual budget for approval by the board.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.152. 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) The board must approve the annual budget.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.153. AMENDMENTS TO BUDGET. The budget may be amended

as required by circumstances. The board must approve all

amendments.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.154. 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.155. FISCAL YEAR. The district operates on a fiscal

year that begins on October 1 and ends on September 30.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.156. AUDIT. The board shall have an audit made of the

district's financial condition.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.157. INSPECTION OF AUDIT AND DISTRICT RECORDS. The

audit and other district records shall be open to inspection at

the district's principal office.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.158. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.159. DEPOSITORY. (a) The board shall select one or

more banks in the district to serve as a depository for district

money.

(b) District money 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 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 a

depository bank.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.160. SPENDING AND INVESTMENT RESTRICTIONS. Except as

otherwise provided by Section 1054.107(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 immediately following district fiscal years.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.161. 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 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) district bonds that have been authorized but not sold.

(c) A loan for which taxes or bonds are pledged must mature not

later than the first anniversary of the date the loan is made. A

loan for which district revenue is pledged must mature not later

than the fifth anniversary of the date the loan is made.

(d) The board may not spend money obtained from a loan under

this section for any purpose other than:

(1) the purpose for which the board declared an emergency; and

(2) if district taxes or bonds are pledged to pay the loan, the

purpose for which the pledged taxes were imposed or the pledged

bonds were authorized.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER E. BONDS

Sec. 1054.201. 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:

(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.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the

time general obligation bonds are issued by the district under

Section 1054.201, the board shall impose an ad valorem tax at a

rate sufficient to create an interest and sinking fund to pay the

principal of and interest on the bonds as the bonds mature.

(b) The tax required by this section together with any other ad

valorem tax the district imposes may not in any year exceed 75

cents on each $100 valuation of all taxable property in the

district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.203. 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, 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.204. REFUNDING BONDS. (a) The board may issue

refunding bonds to refund outstanding indebtedness.

(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, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.205. MATURITY OF BONDS. District bonds must mature

not later than the 50th anniversary of the date of issuance.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.206. 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.207. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER F. TAXES

Sec. 1054.251. 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) 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.252. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1054.253. 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, Sec. 1.02, eff. April 1, 2009.