Sec. 223.011.  PROVIDING HOSPITAL PROJECTS.  (a)  An issuer acting for itself or through a nonprofit organization may provide one or more hospital projects by acquisition, construction, or improvement.  An acquisition may occur by purchase, devise, gift, lease, or a combination of those methods.
(b)  A hospital project must be located in this state and within or partially within the issuer's boundaries, except that a hospital project of a municipality may be located:
(1)  outside the municipality's limits if it is within the municipality's extraterritorial jurisdiction;  or
(2)  in another municipality if the governing body of the other municipality consents to the former municipality's provision of the project.
(c)  An issuer may only acquire a hospital project from a nonprofit organization that has been in existence and has operated the hospital project for at least three years before the date of acquisition by the issuer.
(d)  An issuer must affirmatively find that the cost of an acquired hospital project is not more than:
(1)  the actual audited cost of the hospital project to the date of acquisition;  or
(2)  the fair market value of the hospital project at the date of acquisition as determined by an appraisal obtained by the issuer.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.