Sec. 263.029.  SALE OR LEASE OF HOSPITAL.  (a)  A county may sell or lease all or part of a county hospital or medical or other health facility operated by the county, including real property, if the commissioners court of the county, by order entered in the minutes of the court, finds that the sale or lease is in the best interest of the county.
(b)  The commissioners court shall set a time and place for a hearing on the proposed sale or lease.  The date of the hearing may not be earlier than the 16th day or later than the 30th day from the date of the order.
(c)  The county clerk, immediately after the time and place of the hearing are set, shall give notice informing all qualified voters of the county and other persons interested in the issue of selling or leasing the hospital of the time and place of the hearing and their right to appear at the hearing and to speak for or against the proposed action.  The county clerk shall publish notice once a week for two consecutive weeks in a newspaper published in the county.  The first notice must be published not later than the 15th day before the date set for the hearing.  If no newspaper is published in the county, the county clerk shall post the notice at the courthouse door for 14 days before the date set for the hearing. 
(d)  Ten percent or more of the qualified voters in the county may petition the commissioners court in writing before the time set for the hearing for a referendum on whether the hospital shall be sold or leased or shall continue under county operation.  The commissioners court may not sell or lease the hospital unless the proposition to sell or lease the hospital is approved by a majority of the votes cast at the election.  The election shall be held under and governed by the election provisions of Section 263.021.
(e)  If no petition is filed with the county clerk, the commissioners court may conduct the hearing.  Any person interested may appear in person or by attorney.  The commissioners court may adjourn the hearing from day to day and from time to time as it considers necessary.  On completion of the hearing, the commissioners court may enter an order determining whether or not to sell or lease the hospital.  If the court finds that due notice was given, no petition was filed, and the proposed sale or lease is in the best interest of the county, the commissioners court may enter in its minutes an order that the hospital be sold or leased.
(f)  The commissioners court may submit the issue of the sale or lease to the voters and withhold its final determination pending the election even if no petition is filed.
(g)  The court may sell the hospital or may lease the hospital to be operated as a hospital by the lessee under terms satisfactory to the commissioners court and the lessee.  The commissioners court shall enter in its minutes an order of the sale or lease that contains a complete copy of the sales or lease contract.
(h)  If 50 qualified property taxpaying voters in a county with a population of 5,000 to 10,390 file a written petition with the commissioners court requesting a referendum on the issue of leasing all or part of the county hospital and if the proposition to lease all or part of the hospital is not approved by a majority of the votes cast at the election, the commissioners court may not lease all or part of the hospital for a period greater than five years.
(i)  The commissioners court may deposit all or part of the proceeds from the sale of a county hospital to the credit of a fund to be known as the county health care fund and shall deposit any of the remainder to the credit of the county general fund.  The county health care fund may be used only to finance items related to providing health care to county residents, including indigent residents.  The commissioners court may deposit to the credit of the county health care fund all or part of the interest from that fund and shall deposit any remainder to the credit of the county general fund.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.