CHAPTER 1017. CULBERSON COUNTY HOSPITAL DISTRICT

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 3. HEALTH

SUBTITLE A. HOSPITAL DISTRICTS

CHAPTER 1017. CULBERSON COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1017.001. 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 Culberson County Hospital District.

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

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

Sec. 1017.002. 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1017.003. ESSENTIAL PUBLIC FUNCTION. The district is a

public entity performing an essential public function.

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

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

Sec. 1017.004. DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of Culberson County,

Texas.

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

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

Sec. 1017.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION.The state may not become obligated for the support or

maintenance of the district.

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

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

Sec. 1017.006. 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. 1017.051. BOARD ELECTION; TERM. (a) The district is

governed by a board of five directors elected from the district

at large.

(b) Directors serve staggered two-year terms unless four-year

terms are established under Section 285.081, Health and Safety

Code.

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

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

Sec. 1017.052. NOTICE OF ELECTION. At least 35 days before the

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

published one time in a newspaper with general circulation in the

district.

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

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

Sec. 1017.053. 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 one registered voter of the district as

determined by the most recent official list of registered voters;

and

(2) filed not later than 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. 1017.054. 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. 1017.055. 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) The bond shall be kept in the permanent records of the

district.

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

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

Sec. 1017.056. BOARD VACANCY. If a vacancy occurs in the office

of director, the remaining directors shall appoint a director for

the unexpired term.

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

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

Sec. 1017.057. OFFICERS. (a) The board shall elect a president

and a vice president from among its members.

(b) The board shall appoint a secretary, who need not be a

director.

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

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

unexpired term.

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

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

Sec. 1017.058. 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.

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

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

Sec. 1017.059. 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1017.060. 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 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 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1017.061. 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.

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

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

Sec. 1017.062. 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

the compensation determined by the board.

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

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

Sec. 1017.063. APPOINTMENTS 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 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 money to recruit physicians, nurses, or

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

other costs or expenses of a full-time medical student 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.

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

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

Sec. 1017.064. 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.

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

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

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1017.101. 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1017.102. RESTRICTION ON CULBERSON COUNTY TAXATION AND

DEBT. Culberson County may not impose a tax or issue bonds or

other obligations for hospital purposes or to provide medical

care for district residents.

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

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

Sec. 1017.103. 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1017.104. 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1017.105. 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1017.106. MOBILE EMERGENCY MEDICAL SERVICE. The district

may operate or provide for the operation of a mobile emergency

medical service.

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

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

Sec. 1017.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.

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

buildings required to maintain an adequate hospital system and

the type of equipment necessary for hospital care. The hospital

system may include facilities and equipment to provide for

domiciliary care and treatment of geriatric patients.

(b) The board may:

(1) lease or acquire property, including facilities and

equipment, for the use of the district; and

(2) mortgage or pledge the property as security for the payment

of the purchase price.

(c) The board may sell, lease, or otherwise dispose of property,

including facilities or equipment, for the district. Sale or

other disposal under this subsection must be at a public sale and

at a price and on the terms the board determines are most

advantageous to the district.

(d) The board may donate to another governmental entity or to a

charitable organization any surplus personal property or

equipment if the donation serves a public purpose and is

accompanied by adequate consideration.

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

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

Sec. 1017.108. 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

property 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 money in the trial court or

execute a bond as provided by Section 21.021(a)(2) or (3),

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. 1017.109. COST OF RELOCATING OR ALTERING PROPERTY. In

exercising the power of eminent domain, if the board requires

relocating, raising, lowering, rerouting, changing the grade of,

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.

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

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

Sec. 1017.110. 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.

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

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

Sec. 1017.111. 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.

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

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

Sec. 1017.112. 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1017.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR

SERVICES. The board may contract with a political subdivision of

the 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.

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

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

Sec. 1017.114. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a

person 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 who is legally responsible for the

patient's support.

(b) To the extent that a 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 any 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 person's ability to pay.

(d) The district administrator may collect the amount 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 collection of expenses in the last

illness of a deceased person.

(e) If there is a dispute relating to a person's ability to pay

or if the district administrator has any doubt concerning a

person'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 Culberson County. 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. 1017.115. REIMBURSEMENT FOR SERVICE. (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 Culberson County to

reimburse the district for the district's care and treatment of a

person who is confined in a jail facility of Culberson County 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1017.116. 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, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER D. GENERAL FINANCE PROVISIONS

Sec. 1017.151. 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1017.152. 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 determines 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1017.153. 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1017.154. 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. 1017.155. FISCAL YEAR. (a) The district operates on 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.

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

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

Sec. 1017.156. 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1017.157. 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.

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

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

Sec. 1017.158. 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1017.159. 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 1017.160(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 part 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1017.160. SPENDING AND INVESTMENT RESTRICTIONS. (a)

Except as provided by this section and Sections 1017.063(d),

1017.111, 1017.201, 1017.204, and 1017.205, 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.

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

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

Sec. 1017.161. AUTHORITY TO BORROW MONEY; SECURITY. (a) The

board may borrow money at a rate of not more than 10 percent a

year on district notes to pay the obligations if the board

declares that money is not available to meet authorized district

obligations, which creates an emergency.

(b) To secure a loan, the board may pledge:

(1) district revenue that is not pledged to pay the district's

bonded indebtedness;

(2) a district tax to be imposed by the district in the next

12-month period that is not pledged to pay the principal of or

interest on district bonds; or

(3) district bonds that have been authorized but not sold.

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

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

loan for which district revenue is pledged must mature not later

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

(d) Money obtained from a loan under this section may be spent

only for:

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

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

purposes for which the taxes were imposed or the bonds were

authorized.

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

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

SUBCHAPTER E. BONDS

Sec. 1017.201. 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.

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

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

Sec. 1017.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the

time general obligation bonds are issued by the district under

Section 1017.201, 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 a tax.

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

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

Sec. 1017.203. 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.

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

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

Sec. 1017.204. 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, 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. 1017.205. 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1017.206. 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1017.207. EXECUTION OF BONDS. (a) The board president

shall execute district bonds in the district's name.

(b) The board secretary shall countersign the bonds in the

manner provided by Chapter 618, Government Code.

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

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

Sec. 1017.208. 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.

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

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

SUBCHAPTER F. AD VALOREM TAX

Sec. 1017.251. 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, Sec. 1.02, eff. April 1, 2009.

Sec. 1017.252. 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. 1017.253. 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.