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80C14(4) YDB

80C14(4) YDB

 

CHAPTER 1021.  DONLEY COUNTY HOSPITAL DISTRICT

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 1021.001.  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 Donley County Hospital District.  (New.)

Revisor's Note

The definitions of "board," "director," and "district" are added to the revised law for drafting convenience and to eliminate frequent, unnecessary repetition of the substance of the definitions.

Revised Law

Sec. 1021.002.  AUTHORITY FOR OPERATION.  The Donley County Hospital District operates in accordance with Section 9, Article IX, Texas Constitution. (Acts 61st Leg., R.S., Ch. 699, Sec. 1 (part).)

Source Law

Sec. 1.  In accordance with the provisions of Article IX, Section 9, Constitution of the State of Texas, this Act shall be operative so as to authorize the creation, establishment, maintenance and operation of a hospital district within the State of Texas, to be known as the Donley County Hospital District, … .

Revisor's Note

Section 1, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, authorizes the "creation, establishment, maintenance and operation" of the district.  The revised law omits "creation" and "establishment" as executed.  The revised law omits "maintenance" because, in this context, the meaning of that term is included in the meaning of "operation."

Revised Law

Sec. 1021.003.  ESSENTIAL PUBLIC FUNCTION.  The district performs an essential public function in carrying out the purposes of this chapter.  (Acts 61st Leg., R.S., Ch. 699, Sec. 20 (part).)

Source Law

Sec. 20.  In carrying out the purposes of this Act, the district will be performing an essential public function and … .

Revised Law

Sec. 1021.004.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of Donley County, Texas. (Acts 61st Leg., R.S., Ch. 699, Sec. 1 (part).)

Source Law

Sec. 1.  … with boundaries coextensive with the boundaries of Donley County, Texas.

Revised Law

Sec. 1021.005.  CORRECTION OF INVALID PROCEDURES.  If a court holds that any procedure under this chapter violates the constitution of this state or of the United States, the district by resolution may provide an alternative procedure that conforms with the constitution.  (Acts 61st Leg., R.S., Ch. 699, Sec. 21 (part).)

Source Law

Sec. 21.  … [Federal or State Constitutions,]  Where any procedure hereunder may be held by any court to be violative of either of such constitutions, the District shall have the power by resolution to provide an alternative procedure conformable with such constitutions.  …

Revisor's Note

Section 21, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that the act does not violate the federal or state constitution and requires that action under the act comply with the constitutions.  The revised law omits the reference to the federal constitution because, under the Supremacy Clause of the United States Constitution (Clause 2, Article VI), federal law always takes precedence over a state statute.  The revised law also omits the reference to the Texas Constitution because the state cannot modify constitutional requirements by statute.  The omitted law reads:

Sec. 21.  Nothing in this Act shall be construed to violate any provision of the Federal or State Constitutions, and all acts done under this Act shall be in such manner as will conform thereto, whether expressly provided or not.  …

Revised Law

Sec. 1021.006.  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.  (Acts 61st Leg., R.S., Ch. 699, Sec. 19 (part).)

Source Law

Sec. 19.  The support and maintenance of the hospital district shall never become a charge against or obligation of the State of Texas, … .

Revised Law

Sec. 1021.007.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.  The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility.  (Acts 61st Leg., R.S., Ch. 699, Sec. 19 (part).)

Source Law

Sec. 19.  …  nor shall any direct appropriation be made by the Legislature for the construction, maintenance, or improvement of any of  the facilities of such district.

Revisor's Note

(End of Subchapter)

Sections 2 and 6(b), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provide procedures for holding an election on the creation of the district and the imposition of an ad valorem tax.  Because the creation of the district and the imposition of the tax were approved at the election, the revised law omits those provisions as executed.  The omitted law reads:

Sec. 2.  (a)  The district shall not be created, nor shall any tax therein be authorized unless and until such creation and such tax are approved by a majority of the qualified property taxpaying electors of the area of the proposed district voting at an election called for that purpose.  Such election may be called by a majority of the temporary or provisional directors or shall be called by said provisional directors upon presentation of a petition therefor signed by at least 100 qualified property taxpaying electors of the area of the proposed district.  Such election shall be held not less than 35 nor more than 60 days from the date the election is ordered.  The order calling the election shall specify the date, place or places of holding the election, the form of ballot, the presiding judge and alternate judge for each voting place, and provide for clerks as in county elections.  The election order may provide that the entire district shall constitute one election precinct or the county election precincts may be combined for elections.  Notice of election shall be given by publishing a substantial copy of the election order in a newspaper or newspapers which individually or collectively provide general circulation in the county or district once a week for two consecutive weeks, the first publication to appear at least 30 days prior to the date established for the election.  The failure of such election shall not operate to prohibit the calling and holding of subsequent elections for the same purpose; provided, however, that no district election for confirmation can be held within 12 months of any preceding district election for confirmation, and, further provided, if this district is not confirmed within 60 months from the effective date of this Act, this Act is hereby repealed.

(b)  At the election there shall be submitted to the qualified property taxpaying electors of the area of the proposed district the proposition of whether the hospital district shall be created with authority to levy annual taxes … for the purpose of meeting the requirements of the district's bonds, and its maintenance and operating expenses, and a majority of the qualified property taxpaying electors voting at said election in favor of the proposition shall be sufficient for its adoption.

(c)  The form of ballot used at the election on the creation of the district shall be in conformity with Sections 61 and 62, Texas Election Code, as amended (Articles 6.05-6.07, Vernon's Texas Election Code), so that ballots may be cast "FOR" or "AGAINST" the following ballot proposition:  "The creation of Donley County Hospital District, providing for the levy of a tax not to exceed 75 cents on each $100 valuation, upon all taxable property situated within said district, subject to hospital district taxation, for all hospital district purposes.

(d)  Within 10 days after such election is held, the Commissioners Court of Donley County shall convene and canvass the returns of the election, and if a majority of the qualified property taxpaying electors voting at said election vote in favor of the proposition, they shall so find and declare the hospital district established and created.

[Sec. 6]

(b)  A separate proposition may be submitted at the election for the creation or confirmation of the district as to whether the board of directors, in the event the district is created, shall be authorized to issue bonds for any one or more of the foregoing purposes.  The proposition, if submitted, shall specify the purpose for which the bonds are to be issued, the maximum amount of bonds then proposed to be issued, the maximum maturity, and the maximum interest rate.

[Sections 1021.008-1021.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1021.051.  BOARD ELECTION; TERM.  (a)  The board consists of seven directors elected from the district at large by position.  To be elected, a candidate must receive a majority of the votes cast in the election for that position.

(b)  The official ballot must indicate the position number of each office to be voted on at the election.

(c)  A candidate may run for only one position at each election.

(d)  Unless four-year terms are established under Section 285.081, Health and Safety Code:

(1)  directors serve staggered two-year terms; and

(2)  the terms of directors elected to positions 1 through 3 expire in odd-numbered years and the terms of directors elected to positions 4 through 7 expire in even-numbered years.  (Acts 61st Leg., R.S., Ch. 699, Sec. 3(c) (part).)

Source Law

(c)  … The first three positions shall be held by those directors whose present terms expire the first Saturday in April, 1973, and they shall serve until the first Saturday in April, 1973; the remaining four positions, to wit: Place Four, Place Five, Place Six, and Place Seven, shall be the subject of the regular election of directors to be held on the first Saturday in April, 1974. Directors shall be elected by vote of the qualified  electors of the entire Donley County Hospital District for two year terms. At each election candidates shall be voted upon and be elected separately for each position on  the board, and the name of each candidate shall be placed  on the official ballot according to the number of the position for which he or she is running and for which he or she has petitioned. A candidate receiving a majority of the votes cast for all candidates for a position shall  be declared elected. … A candidate shall be eligible  to run for only one position at each election… .

Revisor's Note

(1)  Sections 3(a) and (b), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, name the temporary directors of the district, require the directors to take the constitutional oath of office, prescribe the terms of those directors, and provide for filling a vacancy in the office of temporary director.  The revised law omits those provisions as executed.  In addition, throughout this chapter, the revised law omits references to "temporary" directors as executed.  The omitted law reads:

Sec. 3.  (a)  Upon the effective date of this Act, the following seven persons, M. M. McCully, Fred E. Chamberlain, Jr., Henry Moore, Jane Bownds, Charlotte M. Adams, J. R. Bartlett, and Rachael Swift, shall be and are hereby constituted the temporary or provisional directors of said district.  Each temporary or provisional director shall subscribe the constitutional oath of office within 90 days of the effective date of this Act.

(b)  Temporary directors shall serve for a period of two years or until the creation of the district is confirmed at an election, whichever date shall first occur.  Any vacancy in the office of temporary director, whether by reason of failure to qualify or the occurring of a vacancy prior to the confirmation of the district at the election provided, shall be filled by appointment made by the  Commissioners Court of Donley County.

(2)  Section 3(c), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, states that the board shall designate numbers for director positions at the time the amendment takes effect.  The revised law omits that provision as executed.  The omitted law reads:

(c)  At such time as this amendment shall take effect, the board shall designate a number for the position held by each member of the board.  …

(3)  Section 3(c), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, establishes staggered two-year terms for the directors that expire on the first Saturday in April of 1973 or 1974.  The revised law codifies the provision providing staggered terms but omits as executed the provision relating to the date on which the terms of the initial directors expire.

(4)  Section 3(c), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that directors serve two-year terms.  Section 285.081, Health and Safety Code, applicable to this district, provides a mechanism by which the governing board of a hospital district, on its own motion, may order that the members are to be elected in even-numbered years to serve staggered four-year terms.  The revised law is drafted accordingly and adds a reference to Section 285.081, Health and Safety Code, for the convenience of the reader.

(5)  Section 3(c), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides for a runoff election between the two candidates receiving the highest number of votes for director if a candidate does not receive a majority of the votes cast for a position at the election.  The revised law omits that provision because Section 2.023, Election Code, which applies to the revised law, governs which candidates for office will participate in a runoff election.  The omitted law reads:

(c)  … If no candidate receives such a majority, then the two candidates receiving the highest number of votes shall run against each other for the position. …

(6)  Section 3(c), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, establishes the last Saturday in April as the date of any runoff election for director.  The revised law omits that provision because Section 2.025(a), Election Code, requires a runoff election to be held not earlier than the 20th or later than the 45th day after the date the final canvass of the main election is completed.  Section 2.025(c), Election Code, provides that Section 2.025 supersedes a law outside Subchapter B, Chapter 2, Election Code, to the extent of a conflict.  The omitted law reads:

(c)  …  The run-off election for all positions shall be held on the last Saturday in April … .

(7)  Section 3(c), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that the board shall canvass the election returns.  The revised law omits the requirement concerning canvassing election returns because it duplicates Section 67.002, Election Code, which requires the governing body of a political subdivision that orders an election to canvass the returns.  Although Section 3(c) does not state that the board orders the election, Section 3.004, Election Code, requires the governing body of a political subdivision that has elective offices to order the general election for those officers.  The omitted law reads:

(c)  …  Said election returns shall be canvassed by the Donley County Hospital District Board… .

(8)  Section 3(c), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, requires directors' elections to conform to state election laws.  The revised law omits that provision because Section 1.002(a), Election Code, provides that the code applies to all elections held in this state.  The omitted law reads:

(c)  … The election shall conform to the general election laws of the State of Texas, and … .

(9)  Section 3(c), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that directors' elections are held on the first Saturday in April each year.  The revised law omits that provision as impliedly repealed by a 1986 amendment to Section 41.001, Election Code.  Chapter 14, Acts of the 69th Legislature, 3rd Called Session, 1986, amended Section 41.001, Election Code, to prescribe certain uniform election dates.  Section 37 of that act required a political subdivision that had held its general election of officers on the first Saturday in April to hold that election on a uniform election date in May or to choose a different uniform election date on which to hold the election.  The omitted law reads:

(c)  … [The election shall] … be held on the first Saturday of April of each year… .

Revised Law

Sec. 1021.052.  NOTICE OF RUNOFF ELECTION.  At least seven days before the date of a runoff election of directors, notice of the runoff election shall be published one time in a newspaper of general circulation in Donley County.  (Acts 61st Leg., R.S., Ch. 699, Sec. 3(c) (part).)

Source Law

(c)  … with the notice thereof to be published in a newspaper of general circulation in the county one time at least seven days prior to the date of the run-off election… .

Revisor's Note

Section 3(c), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, requires notice of a runoff election to be published "in the county."  The revised law substitutes "Donley County" for the quoted language because Donley County is the county in which the district is located.

Revised Law

Sec. 1021.053.  QUALIFICATIONS FOR OFFICE.  (a)  A person may not be elected or appointed as a director unless the person is:

(1)  a resident of the district;

(2)  a freeholder; and

(3)  a qualified voter.

(b)  A person is not eligible to serve as a director if the person is:

(1)  the district administrator;

(2)  a district employee; or

(3)  a hospital staff member.  (Acts 61st Leg., R.S., Ch. 699, Sec. 3(d).)

Source Law

(d)  No person shall be elected or appointed as a member of the Donley County Hospital District Board of Directors unless he or she is a resident of the district, a freeholder, and a qualified voter.  Neither the administrator, an employee of the district, nor a member of the staff of the hospital shall be eligible to serve as a director.

Revised Law

Sec. 1021.054.  BOND.  (a)  Each director shall execute a good and sufficient bond for $1,000 that is:

(1)  payable to the district; and

(2)  conditioned on the faithful performance of the director's duties.

(b)  The district shall pay for the directors' bonds.  (Acts 61st Leg., R.S., Ch. 699, Sec. 3(c) (part).)

Source Law

(c)  . . . Each member of the board of directors shall execute a good and sufficient bond in the amount of $1,000 payable to said district conditioned upon the faithful performance of his or her duties, and each bond shall be purchased at the expense of the district.

Revised Law

Sec. 1021.055.  BOARD VACANCY.  If a vacancy occurs in the office of director, the board shall appoint a director for the unexpired term.  (Acts 61st Leg., R.S., Ch. 699, Sec. 3(c) (part).)

Source Law

(c)  …  Vacancies in office shall be filled for the unexpired term by the Donley County Hospital District Board of Directors. …

Revised Law

Sec. 1021.056.  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.  (Acts 61st Leg., R.S., Ch. 699, Sec. 3(e) (part).)

Source Law

(e)  The board of directors, temporary and permanent, shall organize by electing one of their number as president and one of their number as vice-president. A secretary, who need not be a director, shall also be elected. Officers shall be elected for a term of one year and vacancies shall be filled for the unexpired term by the board of directors, temporary or permanent. …

Revised Law

Sec. 1021.057.  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.  (Acts 61st Leg., R.S.,  Ch. 699, Sec. 3(e) (part).)

Source Law

(e)  … All members of the board of directors and officers shall serve without compensation, but may be reimbursed for actual expenses incurred in the performance of their official duties upon the approval of such expenses by the board of directors and so reported in the minute book of the district or other records of such district.

Revisor's Note

Section 3(e), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, requires that approved expenses be reported in the "minute book of the district or other records of such district."  The revised law omits the reference to "minute book of the district" because the minute book is a district record.

Revised Law

Sec. 1021.058.  VOTING REQUIREMENT.  A concurrence of four directors is sufficient in any matter relating to district business.  (Acts 61st Leg., R.S., Ch. 699, Sec. 3(e) (part).)

Source Law

(e)  …  [members of the board of directors] … a concurrence of four shall be sufficient in all matters pertaining to the business of the district. …

Revisor's Note

Section 3(e), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that four directors constitute a quorum.  The revised law omits that provision because it duplicates Section 311.013, Government Code (Code Construction Act), which provides that a quorum of a public body is a majority of the number of members fixed by statute.  The omitted law reads:

(c)  … Any four members of the board of directors shall constitute a quorum and … .

Revised Law

Sec. 1021.059.  DISTRICT ADMINISTRATOR; ASSISTANT DISTRICT ADMINISTRATORS.  (a)  The board may appoint a qualified person as district administrator.

(b)  The board may appoint one or more assistant administrators.

(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.  (Acts 61st Leg., R.S., Ch. 699, Sec. 4 (part).)

Source Law

Sec. 4.  … The board of directors may appoint a qualified person to be known as the administrator or manager of the hospital district and may in its discretion appoint an assistant or assistants to the administrator or manager.  Such administrator or manager and assistant administrator or manager, if any, shall serve at the will of the board and shall receive such compensation as may be fixed by the board. The administrator or manager shall, upon assuming his duties, execute a bond payable to the hospital district in an amount to be set by the board of directors, in no event less than $5,000 conditioned that he shall perform the duties required of him, and containing such other conditions as the board may require. …

Revisor's Note

Section 4, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that the board may appoint a person as the "administrator or manager" of the district and may appoint an "assistant or assistants to the administrator or manager."  Throughout this chapter, the revised law omits "manager" because, in context, "manager" is included in the meaning of "administrator" and "administrator" is the term used by the district.

Revised Law

Sec. 1021.060.  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.  (Acts 61st Leg., R.S., Ch. 699, Sec. 4 (part).)

Source Law

Sec. 4.  … The administrator or manager shall supervise all the work and activities of the district and shall have general direction of the affairs of the district, subject to the limitations as may be prescribed by the board. …

Revised Law

Sec. 1021.061.  APPOINTMENT AND DISMISSAL OF STAFF AND EMPLOYEES.  (a)  The board may appoint to or dismiss from 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 fiscal agents, accountants, architects, and attorneys the board considers proper.

(c)  The board may delegate to the district administrator the authority to hire district employees, including technicians and nurses.  (Acts 61st Leg., R.S.,  Ch. 699, Secs. 4 (part), 15.)

Source Law

Sec. 4.  … The board of directors shall have the authority to appoint to or dismiss from the staff such doctors as it may be deemed necessary for the efficient operation of the district, and may provide for temporary appointments to the staff if warranted by circumstances. The board may delegate to the administrator or manager the authority to employ technicians, nurses, and employees of the district. …

Sec. 15.  The district may employ fiscal agents, accountants, architects, and attorneys as the board may consider proper.

Revised Law

Sec. 1021.062.  SENIORITY; RETIREMENT BENEFITS.  The board may:

(1)  adopt rules related to the seniority of district employees, including rules for a retirement plan based on seniority; and

(2)  give effect to previous years of service for district employees continuously employed in the operation or management of hospital facilities acquired or constructed by the district.  (Acts 61st Leg., R.S., Ch. 699, Sec. 4 (part).)

Source Law

Sec. 4.  …  The board is given full authority to establish rules and regulations relating to seniority of employees of the district (including a retirement plan based thereon) and may give effect to previous years of service for those employees who have been continuously employed in the operation or management of the hospital facilities acquired or constructed by the district. …

Revisor's Note

Section 4, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to "rules and regulations."  Throughout this chapter, the revised law omits  references to "regulations" because under Section 311.005(5),  Government Code (Code Construction Act), a rule is defined to include a regulation.

Revisor's Note

(End of Subchapter)

Section 3(c), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, states that a person must file with the board secretary to be a candidate for director and prescribes a deadline for the filing.  The revised law omits the requirement to file with the board secretary because it duplicates Sections 144.003 and 144.004, Election Code.  The revised law omits the filing deadline because it is superseded by Section 144.005, Election Code.  Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state.  The omitted law reads:

(c)  … Any person desiring to have his or her name placed on the ballot, as a candidate for director, shall file with the secretary of said board, prior to 21 days before election… .

[Sections 1021.063-1021.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1021.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for operating all hospital facilities for providing medical and hospital care for the district's needy inhabitants.  (Acts 61st Leg., R.S., Ch. 699, Sec. 18 (part).)

Source Law

Sec. 18.  … The said hospital district shall assume full responsibility for the operation of all hospital facilities for the furnishing of medical and hospital care for its needy inhabitants.

Revisor's Note

Section 18, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that the district "shall assume" full responsibility for operating hospital facilities for providing medical and hospital care for the district's needy inhabitants.  The revised law substitutes "has" for the quoted language because the duty to assume the responsibility is executed.

Revised Law

Sec. 1021.102.  RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT.  A political subdivision located within the district or that has the same boundaries as the district may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care.  (Acts 61st Leg., R.S., Ch. 699, Sec. 18 (part).)

Source Law

Sec. 18.  After creation of the hospital district, no municipality or political subdivision within or having the same boundaries of the district shall have the power to levy taxes or issue bonds or other obligations for hospital purposes or for providing medical care. …

Revisor's Note

(1)  Section 18, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that "[a]fter creation of the  hospital district," certain political subdivisions may not levy taxes or issue bonds.  The revised law omits the quoted language as executed.  In addition, throughout the chapter, the revised law substitutes "impose" for "levy" because, in this context, the terms are synonymous and the former is more commonly used.

(2)  Section 18, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to a "municipality or political subdivision."  The revised law omits the reference to "municipality" because "municipality" is included in the meaning of "political subdivision."

Revised Law

Sec. 1021.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  The board shall manage, control, and administer the hospital system and the district's money and resources.  (Acts 61st Leg., R.S., Ch. 699, Sec. 4 (part).)

Source Law

Sec. 4.  The board of directors shall manage, control, and administer the hospital system and all funds and resources of the district, but … .

Revised Law

Sec. 1021.104.  HOSPITAL SYSTEM.  The hospital system, as determined by the board, may include:

(1)  facilities for domiciliary care of the sick, injured, or geriatric;

(2)  facilities for outpatient clinics;

(3)  dispensaries;

(4)  convalescent home facilities;

(5)  necessary nurses centers;

(6)  research centers or laboratories;

(7)  nursing homes or similar facilities for the care of the elderly; and

(8)  any other facilities the board considers necessary for hospital care.  (Acts 61st Leg., R.S., Ch. 699, Sec. 8 (part).)

Source Law

Sec. 8.  … The hospital system, as determined by the board of directors, may include facilities for domiciliary care of the sick, wounded, and injured, facilities for outpatient clinic or clinics, dispensaries, facilities for geriatric domiciliary care, convalescent home facilities, necessary nurses centers, research centers or laboratories, nursing homes or similar facilities for the care of the elderly, and any other facilities deemed necessary for hospital care by the directors… .

Revisor's Note

Section 8, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to the care of the "sick, wounded, and injured."  The revised law omits the reference to "wounded" because "wounded" is included in the meaning of "injured."

Revised Law

Sec. 1021.105.  RULES.  The board may adopt rules governing the operation of the hospital, the hospital system, and the district's staff and employees.  (Acts 61st Leg., R.S.,  Ch. 699, Sec. 4 (part).)

Source Law

Sec. 4.  …  The district, through its board of directors, shall have the power and authority … to promulgate rules and regulations governing the operation of the hospital, hospital system, its staff and its employees… .

Revisor's Note

Section 4, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that the board may "promulgate" rules to govern the district.  The revised law substitutes "adopt" for "promulgate" because the terms are synonymous and the former is more commonly used.

Revised Law

Sec. 1021.106.  PURCHASING AND ACCOUNTING PROCEDURES.  The board may prescribe:

(1)  the method and manner of making purchases and expenditures by and for the district; and

(2)  all accounting and control procedures.  (Acts 61st Leg., R.S., Ch. 699, Sec. 9 (part).)

Source Law

Sec. 9.  The board of directors of such district shall have the power to prescribe the method and manner of making purchases and expenditures by and for such hospital district, and shall also be authorized to prescribe all accounting and control procedures… .

Revised Law

Sec. 1021.107.  DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.  (a)  The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system.

(b)  The board may contract with the Health and Human Services Commission to 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.  A contract entered into under this subsection must provide that the entire obligation be retired not later than the fifth anniversary of the date of the contract.

(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.  (Acts 61st Leg., R.S., Ch. 699, Secs. 8 (part), 9 (part).)

Source Law

Sec. 8.  The board of directors is hereby given complete discretion as to the type of buildings, both as to number and location, required to establish and maintain an adequate hospital system… .  The district, through its board of directors, … may lease or contract with the Texas Department of Human Services to lease all or part of its buildings and facilities upon terms and conditions considered to be the best interest of its inhabitants, provided that in no event shall any lease be for a period in excess of 25 years from the date entered.  The district shall be empowered to sell or otherwise dispose of any property, real or personal, or equipment of any nature upon terms and conditions found by the board to be in the best interest of its inhabitants.

Sec. 9.  …  The district may acquire equipment for use in its hospital system and mortgage or pledge the property so acquired as security for the payment of the purchase price, but any such contract shall provide for the entire obligation of the district to be retired within five years from the date of the contract… .

Revisor's Note

(1)  Section 8, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, requires the board to determine the buildings required to "establish and maintain" an adequate hospital system.  The revised law omits the reference to establishing the hospital system as executed.

(2)  Section 8, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, authorizes the board to lease a district facility to the "Texas Department of Human Services."  The Texas Department of Human Services was abolished under Section 1.26, Chapter 198, Acts of the 78th Legislature, Regular Session, 2003, and that act transferred the department's duties and functions to various other state agencies.  Section 1.18, Chapter 198, Acts of the 78th Legislature, Regular Session, 2003, transferred to the Health and Human Services Commission certain of those duties and functions, including purchasing, financial management, and contract management.  Accordingly, the revised law substitutes "Health and Human Services Commission" for "Texas Department of Human Services."

(3)  Section 8, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to "terms and conditions."  The revised law omits the reference to "conditions" because "conditions" is included in the meaning of "terms."

(4)  Section 8, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to "any property, real or personal."  The revised law omits the reference to "real or personal" property because under Section 311.005, Government Code (Code Construction Act), "property" means "real and personal property."

Revised Law

Sec. 1021.108.  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 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.  (Acts 61st Leg., R.S., Ch. 699, Sec. 13.)

Source Law

Sec. 13.  The district shall have the right and power of eminent domain for the purpose of acquiring by condemnation any and all property of any kind and character in fee simple, or any lesser interest therein, within the boundaries of the district necessary to the powers, rights and privileges conferred by this Act, in the manner provided by the general law with respect to condemnation by counties, provided that the district shall not be required to make deposits in the registry of the trial court of the sum required by Paragraph 2 of Article 3268, Revised Civil Statutes of Texas, 1925, as amended, or to make bond as therein provided.  In condemnation proceedings being prosecuted by the district, the district shall not be required to pay in advance or give bond or other security for costs in the trial court, nor to give any bond otherwise required for the issuance of a temporary restraining order or a temporary injunction nor to give bond for costs or for supersedeas on any appeal or writ of error.

Revisor's Note

(1)  Section 13, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that the district has the "right and power of eminent domain for the purpose of acquiring [property] by condemnation."  The revised law substitutes for the quoted language "may exercise the power of eminent domain to acquire [property]" because the phrases have the same meaning, and the latter phrase is consistent with modern usage in laws relating to eminent domain.

(2)  Section 13, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that the district must exercise the power of eminent domain in the manner provided by "the general law with respect to condemnation by counties."  The revised law substitutes for the quoted language a reference to Chapter 21, Property Code, because that is the general law governing eminent domain for governmental entities, including counties.

(3)  Section 13, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to "Paragraph 2 of Article 3268, Revised Civil Statutes of Texas, 1925, as amended."  That statute was codified in 1983 as Section 21.021(a), Property Code, and the revised law is drafted accordingly.  In addition, throughout this chapter, the revised law omits the references to "as amended" because under Section 311.027, Government Code (Code Construction Act), a reference to a statute applies to all reenactments, revisions, or amendments of that statute unless expressly provided otherwise.

Revised Law

Sec. 1021.109.  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.  (Acts 61st Leg., R.S., Ch. 699, Sec. 17.)

Source Law

Sec. 17.  The board of directors of the hospital district is authorized on behalf of such district to accept donations, gifts, and endowments to be held in trust and administered by the board of directors for such purposes and under such directions, limitations, and provisions as may be prescribed in writing by the donor not inconsistent with proper management and object of the hospital district.

Revisor's Note

Section 17, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to "donations" and "gifts."  The revised law omits the reference to "donations" because "donations" is included in the meaning of "gifts."

Revised Law

Sec. 1021.110.  CONSTRUCTION OR PURCHASE CONTRACTS.  A construction or purchase contract that involves the expenditure of more than $2,000 may be made only after advertising in the manner provided by Chapter 252 and Subchapter C, Chapter 262, Local Government Code.  (Acts 61st Leg., R.S., Ch. 699, Sec. 9 (part).)

Source Law

Sec. 9.  …  All contracts for construction or purchases involving the expenditure of more than $2,000 may be made only after advertising in the manner provided by Chapter 163, Acts of the 42nd Legislature, Regular Session, 1931, as amended (Article 2368a, Vernon's Texas Civil Statutes)… .

Revisor's Note

(1)  Section 9, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, permits construction or purchase contracts involving more than $2,000 only after advertising as provided by Chapter 163, Acts of the 42nd Legislature, Regular Session, 1931, as amended (Article 2368a, Vernon's Texas Civil Statutes).  Article 2368a was amended by Chapter 641, Acts of the 69th Legislature, Regular Session, 1985, which transferred provisions relating to advertising for bids by counties to the County Purchasing Act (V.A.C.S. Article 2368a.5).  The County Purchasing Act was codified in 1987 as Subchapter C, Chapter 262, Local Government Code.  Article 2368a, relating to advertising for bids by municipalities, was codified in 1987 as Chapter 252, Local Government Code.  The revised law is drafted accordingly.

(2)  Section 9, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that the provisions of Article 5160, Revised Civil Statutes of Texas, 1925, apply to the district's construction contracts in relation to performance and payment bonds.  The revised law omits that reference because Article 5160 was codified as Chapter 2253, Government Code, and that chapter applies to hospital districts on its own terms.  The omitted law reads:

Sec. 9.  … The provisions of Article 5160, Revised Civil Statutes of Texas, 1925, as amended relating to performance and payment bonds shall apply to construction contracts let by the district… .

Revised Law

Sec. 1021.111.  OPERATING AND MANAGEMENT CONTRACTS.  The board may enter into an operating or management contract relating to a district facility.  (Acts 61st Leg., R.S., Ch. 699, Sec. 8 (part).)

Source Law

Sec. 8.  … The district, through its board of directors, is further authorized to enter into an operating or management contract with regard to its facilities or a part thereof, or … .

Revised Law

Sec. 1021.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR HOSPITAL TREATMENT.  (a)  The board may contract with a county or municipality located outside the district's  boundaries for the hospitalization of a sick or injured person of that county or municipality.

(b)  The board may contract with this state or a federal agency for the hospital treatment of a sick or injured person.  (Acts 61st Leg., R.S., Ch. 699, Sec. 4 (part).)

Source Law

Sec. 4.  Such board … shall be authorized to contract with any county or incorporated municipality located outside its boundaries for the hospitalization of the sick, diseased, or injured persons of any such county or municipality, and shall have the authority to contract with the State of Texas or agencies of the federal government for the hospital treatment of sick, diseased or injured persons.

Revisor's Note

(1)  Section 4, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to an "incorporated" municipality.  The revised law omits the reference to "incorporated" because under the Local Government Code all municipalities must be incorporated.

(2)  Section 4, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to the hospitalization of a "sick, diseased, or injured" person.  The revised law omits the reference to "diseased" because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1021.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR INVESTIGATORY OR OTHER SERVICES.  The board may contract with a political subdivision or governmental agency for the district to provide investigatory or other services for the hospital or welfare needs of district inhabitants.  (Acts 61st Leg., R.S., Ch. 699, Sec. 4 (part).)

Source Law

Sec. 4.  …  Such board shall be authorized to contract with any other political subdivision or governmental agency whereby the district will provide investigatory or other services as to the hospital, or welfare needs of the inhabitants of the district and … .

Revised Law

Sec. 1021.114.  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)  The final order of the board may be appealed to the district court.  The substantial evidence rule applies to the appeal.  (Acts 61st Leg., R.S., Ch. 699, Sec. 16.)

Source Law

Sec. 16.  Whenever a patient residing within the district has been admitted to the facilities thereof, the administrator or manager may cause inquiry to be made as to his circumstances and those of the relatives of such patient legally liable for his support.  If he finds that such patient or said relatives are able to pay for his care and treatment in whole or in part, an order shall be made directing such patient or said relatives to pay to the hospital district for the care and support of such patient a specified sum per week in proportion to their financial ability.  The administrator or manager shall have power and authority to collect such sums from the estate of the patient or his relatives legally liable for his support in the manner provided by law for collection of expenses in the last illness of a deceased person.  If the administrator or manager finds that such patient or said relatives are not able to pay either in whole or in part for his care and treatment in such hospital, same shall become a charge upon the hospital district as to the amount of the inability to pay.  Should there be any dispute as to the ability to pay or doubt in the mind of the administrator or manager, the board of directors shall hear and determine same after calling witnesses, and shall make such order or orders as may be proper.  Appeals from the final order of the board shall lie to the district court.  The substantial evidence rule shall apply.

Revised Law

Sec. 1021.115.  AUTHORITY TO SUE AND BE SUED.  (a)  The district, through the board, may sue and be sued.

(b)  The district is entitled to all causes of action and defenses to which similar authorities are entitled.  (Acts 61st Leg., R.S., Ch. 699, Sec. 4 (part).)

Source Law

Sec. 4.  …  The district, through its board of directors, shall have the power and authority to sue and be sued, and shall be entitled to all causes of action and defenses enjoyed by similar authorities, … .

[Sections 1021.116-1021.150  reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1021.151.  BUDGET.  (a)  The district administrator shall prepare an annual budget for approval by the board.

(b)  The proposed budget must contain a complete financial statement of:

(1)  the outstanding obligations of the district;

(2)  the cash on hand in each district fund;

(3)  the money received by the district from all sources during the previous year;

(4)  the money available to the district from all sources during the ensuing year;

(5)  the balances expected at the end of the year in which the budget is being prepared;

(6)  the estimated revenue and balances available to cover the proposed budget;

(7)  the estimated tax rate required; and

(8)  the proposed expenditures and disbursements and the estimated receipts and collections for the following fiscal year.  (Acts 61st Leg., R.S., Ch. 699, Sec. 5 (part).)

Source Law

Sec. 5.  … The administrator or manager shall prepare an annual budget for approval by the board of directors.  The budget shall also contain a complete financial statement of the district showing all outstanding obligations of the district, the cash on hand to the credit of each and every fund of the district, the funds received from all sources during the previous year, the funds available from all sources during the ensuing year, with balances expected at end of the year in which the budget is being prepared, and estimated revenues and balances available to cover the proposed budget and the estimated tax rate which will be required, and the proposed expenditures and disbursements and the estimated receipts and collections for the following fiscal year. …

Revised Law

Sec. 1021.152.  NOTICE; HEARING; ADOPTION OF BUDGET.  (a)  The board shall hold a public hearing on the proposed annual budget.

(b)  At least 10 days before the date of the hearing, notice of the hearing shall be published one time in a newspaper or newspapers that individually or collectively have general circulation in the district.

(c)  Any property taxpayer of the district 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 interest of the taxpayers and that the law warrants.  (Acts 61st Leg., R.S., Ch. 699, Sec. 5 (part).)

Source Law

Sec. 5.  … A public hearing on the annual budget shall be held by the board of directors after notice of such hearing has been published one time at least 10 days before the date set therefor.  Notice of the budget hearing shall be published in a newspaper or newspapers which individually or collectively provide general circulation in the hospital district.  Any property taxpayer of the district shall have the right to be present and participate in said hearing.  At the conclusion of the hearing, the budget, as proposed by the administrator, shall be acted upon by the board of directors.  The board of directors shall have authority to make such changes in the budget as in their judgment the law warrants and the interest of the taxpayers demand… . the annual budget, and … shall be approved by the board of directors… .

Revised Law

Sec. 1021.153.  AMENDMENTS TO BUDGET.  The budget may be amended as required by circumstances.  The board must approve all amendments.  (Acts 61st Leg., R.S., Ch. 699, Sec. 5 (part).)

Source Law

Sec. 5.  …  The annual budget may be amended from time to time as the circumstances may require, but … all amendments thereto, shall be approved by the board of directors… .

Revisor's Note

Section 5, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, states that the board may amend the budget "from time to time."  The revised law omits the quoted language because the authority to amend the budget implies the authority to do so at any time.

Revised Law

Sec. 1021.154.  RESTRICTION ON EXPENDITURES.  Money may be spent only for an expense included in the budget or an amendment to the budget.  (Acts 61st Leg., R.S., Ch. 699, Sec. 5 (part).)

Source Law

Sec. 5.  … No expenditure may be made for any expense not included in the annual budget or an amendment thereto… .

Revised Law

Sec. 1021.155.  FISCAL YEAR.  The district operates according to a fiscal year that begins on July 1 and ends on June 30. (Acts 61st Leg., R.S., Ch. 699, Sec. 5 (part).)

Source Law

Sec. 5.  The district shall be operated on the basis of a fiscal year commencing on July 1 of each year and ending on June 30 of the following year, and … .

Revised Law

Sec. 1021.156.  AUDIT.  (a)  The district shall have an independent audit made of the district's financial condition for the fiscal year.

(b)  As soon as the audit is completed, the audit shall be filed at the district's office.  (Acts 61st Leg., R.S., Ch. 699, Sec. 5 (part).)

Source Law

Sec. 5.  [The district] … it shall cause an independent audit to be made of the financial condition of said district, . . . such audit to be made covering such fiscal year, and the same shall be filed at the office of the district as soon as it is completed… .

Revised Law

Sec. 1021.157.  INSPECTION OF AUDIT AND DISTRICT RECORDS.  The audit and other district records shall be open to inspection at the district's principal office.  (Acts 61st Leg., R.S., Ch. 699, Sec. 5 (part).)

Source Law

Sec. 5.  … [it shall cause an independent audit made of the financial condition of said district,] which, together with other records of the district, shall be open to inspection at the principal office of the district, … .

Revised Law

Sec. 1021.158.  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.  (Acts 61st Leg., R.S., Ch. 699, Sec. 5 (part).)

Source Law

Sec. 5.  … As soon as practicable after the close of each fiscal year, the administrator or manager shall prepare for the board a full sworn statement of all moneys belonging to the district and a full account of the disbursements of same.

Revised Law

Sec. 1021.159.  DEPOSITORY.  (a)  The board shall select one or more banks in the district to serve as a depository for district money.

(b)  District money, other than money invested as provided by Section 1021.160(b) and money transmitted to a bank for payment of bonds or obligations issued by the district, shall be deposited as received with the depository bank and shall remain on deposit.

(c)  This chapter, including Subsection (b), does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit.  (Acts 61st Leg., R.S., Ch. 699, Sec. 10.)

Source Law

Sec. 10.  The board of directors of the district shall name one or more banks within its boundaries to serve as depository for the funds of the district.  All funds of the district, except those invested as provided in Section 5, and those transmitted to a bank or banks as payment for bonds or obligations issued by the district, shall be deposited as received with the depository bank and shall remain on deposit, provided that nothing herein shall limit the power of the board to place a portion of such funds on time deposit or purchase certificates of deposit.

Revisor's Note

Section 10, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to "[a]ll funds of the district, except those invested as provided in Section 5."  Although Section 5, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, does not relate to the investment of funds, Section 4 of that act does.  For that reason, the revised law refers to Section 1021.160(b), which codifies the relevant part of Section 4.

Revised Law

Sec. 1021.160.  SPENDING AND INVESTMENT RESTRICTIONS.  (a)  Except as provided by Section 1021.107(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 following district fiscal years.

(b)  The board may invest operating, depreciation, or building fund reserves only in funds or securities specified by Chapter 2256, Government Code.  (Acts 61st Leg., R.S., Ch. 699, Secs. 4 (part), 9 (part).)

Source Law

Sec. 4.  … in no event shall any operating, depreciation or building fund reserves be invested in any funds or securities other than those specified in Articles 836 or 837, Revised Civil Statutes of Texas, 1925, as amended… .

Sec. 9.  … Except as permitted in the preceding sentence and as permitted by Sections 6 and 7, the district may incur no obligation payable from any revenues of the district, taxes or otherwise except those on hand or to be on hand within the then current and following fiscal year of the district.

Revisor's Note

(1)  Section 4, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to "Article 836 or 837, Revised Civil Statutes of Texas, 1925, as amended."  Those articles were impliedly repealed by the enactment of the Public Funds Investment Act of 1987 (Article 842a-2, Vernon's Texas Civil Statutes), which was revised in 1993 as Chapter 2256, Government Code.  Chapter 2256 defines "local government" to include hospital districts and applies to the district by its own terms.  The revised law therefore substitutes a reference to Chapter 2256, Government Code, for the references to Articles 836 and 837.

(2)  Section 9, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, states that "[e]xcept as permitted in the preceding sentence and as permitted by Sections 6 and 7," the district may not incur certain obligations.  The "preceding sentence" in Section 9 is codified in Section 1021.107(c).  Sections 6 and 7 are codified in Subchapter E.  The revised law is drafted accordingly.

[Sections 1021.161-1021.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Revised Law

Sec. 1021.201.  GENERAL OBLIGATION BONDS.  The board may issue and sell general obligation bonds in the name and on the faith and credit of the district for any purpose relating to:

(1)  the purchase, construction, acquisition, repair, or renovation of buildings or improvements; and

(2)  equipping buildings or improvements for hospital purposes.  (Acts 61st Leg., R.S., Ch. 699, Sec. 6(a) (part).)

Source Law

Sec. 6.  (a)  The board of directors shall have the power and authority to issue and sell its bonds in the name and upon the faith and credit of such hospital district for the purchase, construction, acquisition, repair, or renovation of buildings, and improvements and equipping the same for hospital purposes, and for any or all of such purposes… .

Revisor's Note

Section 6(a), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that the board has the power and authority to issue and sell bonds in the name and on the faith and credit of the district.  Because the type of bonds described by Section 6(a) are known as "general obligation bonds," the revised law is drafted accordingly.

Revised Law

Sec. 1021.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  At the time general obligation bonds are issued by the district under Section 1021.201, 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 tax rate approved by the voters at the election authorizing the imposition of the tax.  (Acts 61st Leg., R.S., Ch. 699, Sec. 6(a) (part).)

Source Law

(a)  … At the time of the issuances of any bonds by the district a tax shall be levied by the board sufficient to create an interest and sinking fund to pay the interest on and principal of said bonds as same mature, providing such tax, together with any other taxes levied for said district, shall not exceed the rate of tax voted under the provisions of Section 2 of this Act. …

Revisor's Note

(1)  Section 6(a), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, requires the district to levy a tax to pay the principal of and interest on bonds.  The revised law specifies that the tax is an "ad valorem" tax because it is clear from the source law that the tax is a property tax and "ad valorem" is the term most commonly used to refer to a property tax.

(2)  Section 6(a), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that the tax rate may not exceed "the rate of tax voted under the provisions of Section 2 of this Act."  Section 2 sets out procedures for the district's creation election and requires voter approval of the district's authority to impose taxes.  Because the revised law omits Section 2 for the reason stated in the revisor's note at the end of Subchapter A, the revised law substitutes "the tax rate approved by the voters at the election authorizing the imposition of the tax" for the quoted language.

Revised Law

Sec. 1021.203.  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 order calling the election shall provide for clerks as in county elections and must specify:

(1)  the date of the election;

(2)  the location of the polling places;

(3)  the presiding and alternate election judges for each polling place;

(4)  the amount of the bonds to be authorized; and

(5)  the maximum interest rate of the bonds.

(c)  Notice of a bond election shall be given as provided by Section 1251.003, Government Code.  (Acts 61st Leg., R.S., Ch. 699, Sec. 6(a) (part).)

Source Law

(a)  … No bonds shall be issued by such hospital district … until authorized by a majority of the qualified property taxpaying electors of the district voting at an election called for such purpose.  The order for bond election shall specify the date of the election, the amount of bonds to be authorized, the maximum rate of interest they are to bear, the place or places where the election shall be held, the presiding judge and alternate judge for each voting place, and provide for clerks as in county elections. … notice of any bond election shall be given as provided in Article 704, Revised Civil Statutes of Texas, 1925, as amended, and shall be conducted in accordance with the general laws of Texas pertaining to general elections, except as modified by the provisions of this Act.

Revisor's Note

(1)  Section 6(a), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to a majority of the "qualified electors."  The revised law omits "qualified" as unnecessary in this context because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "qualified" voters who are residents of the territory covered by the election to vote in an election.  The revised law substitutes "voter" for "elector" because the former is the term used in the Election Code.

(2)  Section 6(a), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to "property taxpaying" electors.  The revised law omits the quoted language because in Hill v. Stone, 421 U.S. 289, 95 S. Ct. 1637 (1975), the United States Supreme Court determined that property ownership as a qualification for voting is an unconstitutional denial of equal protection.

(3)  Section 6(a), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that notice of a bond election under Section 6(b) must be given as provided under Section 2.  As explained in the revisor's note at the end of Subchapter A, the relevant provisions of Sections 2 and 6(b), Chapter 699, are executed.  The revised law therefore omits the provision.  The omitted law reads:

(a)  … Except as to a bond election held pursuant to the provisions of Subsection (b) of this section, where notice shall be given as provided in Section 2, … .

(4)  Section 6(a), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to Article 704, Revised Statutes, which specifies certain notice requirements for a bond election.  That provision was codified in 1999 as Section 1251.003, Government Code.  The revised law is drafted accordingly.

(5)  Section 6(a), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that an election under Section 6(a) "shall be conducted in accordance with the general laws of Texas pertaining to general elections, except as modified by the provisions of this Act."  The general law on elections in Texas is the Election Code.  The revised law omits the quoted language because Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state.  An exception to the application of the Election Code would apply by its own terms.

Revised Law

Sec. 1021.204.  MATURITY OF GENERAL OBLIGATION BONDS.  District general obligation bonds must mature not later than 40 years after the date of issuance.  (Acts 61st Leg., R.S., Ch. 699, Sec. 6(d) (part).)

Source Law

(d)  Bonds of the district … shall mature within 40 years of their date, … .

Revised Law

Sec. 1021.205.  EXECUTION OF GENERAL OBLIGATION BONDS.  (a)  The board president shall execute the general obligation bonds in the district's name.

(b)  The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code.  (Acts 61st Leg., R.S., Ch. 699, Sec. 6(d) (part).)

Source Law

(d)  [Bonds of the district] … shall be executed in the name of the hospital district and in its behalf by the president of the board and countersigned by the secretary in the manner provided by Chapter 204, Acts of the 57th Legislature, Regular Session, 1961, as amended (Article 717j-1, Vernon's Texas Civil Statutes), and … .

Revisor's Note

(1)  Section 6(d), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to Chapter 204, Acts of the 57th Legislature, Regular Session, 1961, as amended (Article 717j-1, Vernon's Texas Civil Statues).  That statute was codified in 1999 as Chapter 618, Government Code, and the revised law is drafted accordingly.

(2)  Section 6(d), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that district bonds must bear interest at a rate not to exceed six and one-half percent a year.  The revised law omits the provision because it has been superseded by the enactment of the maximum interest rate provision found in Section 1204.006, Government Code.  That section reflects the 1981 amendment of Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes, now Chapter 1204, Government Code), by Section 1, Chapter 61, Acts of the 67th Legislature, Regular Session, 1981, and permits a public agency, including a hospital district, to issue public securities at any net effective interest rate of 15 percent or less.  Section 1204.006, Government Code, applies to district bonds by application of Section 1204.001, Government Code.  The omitted law reads:

(d)  [Bonds of the district] shall bear interest not to exceed six and one-half percent a year, … .

(3)  Section 6(d), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that district bonds are subject to the law governing counties that relates to bond approval by the attorney general and registration of the bonds by the comptroller.  Section 6(d) also provides that after approval and registration the bonds are "incontestable for any cause."  The revised law omits those provisions as superseded by Chapter 1202, Government Code (enacted as Article 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987).  Section 1202.003(a), Government Code, requires the bonds to be submitted to the attorney general.  Section 1202.003(b), Government Code, provides for approval of the bonds by the attorney general and requires the attorney general to submit the approved bonds to the comptroller for registration.  Section 1202.005, Government Code, requires registration of the bonds by the comptroller.  Section 1202.006, Government Code, provides that after approval and registration the bonds are incontestable and binding obligations.  Chapter 1202, Government Code, applies to district bonds by application of Section 1202.001, Government Code.  The omitted law reads:

(d)  [Bonds of the district] … shall be subject to the same requirements in the matter of approval by the Attorney General of Texas and registration by the Comptroller of Public Accounts of the State of Texas as are by law provided for approval and registration of bonds issued by counties.  Upon the approval of such bonds by the attorney general and registration by the comptroller, the same shall be incontestable for any cause.

Revised Law

Sec. 1021.206.  REVENUE BONDS.  (a)  The board may issue revenue bonds to:

(1)  purchase, construct, acquire, repair, renovate, or equip buildings or improvements for the district's hospital system facilities; or

(2)  acquire sites to be used for the district's hospital system facilities.

(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 hospitals.

(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 used in the manner and in accordance with the procedures and requirements prescribed 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.  (Acts 61st Leg., R.S., Ch. 699, Sec. 7 (part).)

Source Law

Sec. 7.  In addition to the power to issue bonds payable from taxes levied by the district, as contemplated by the preceding section, the board of directors is further authorized … to issue revenue bonds for the purpose of purchasing, constructing, acquiring, repairing, equipping, or renovating buildings and improvements for the district's facilities for the district's hospital system, and for acquiring sites therefor, such bonds to be payable from and secured by a pledge of all or any part of the revenues of the district to be derived from the operation of its hospital or hospitals, and such bonds may be additionally secured by a mortgage or deed of trust lien on any part or all of its properties.  Such bonds shall be issued in the manner and in accordance with the procedures and requirements specified for the issuance of revenue bonds by county hospital authorities in Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code.

Revised Law

Sec. 1021.207.  REFUNDING BONDS.  (a)  The board may, without an election, issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.

(b)  Refunding bonds may be:

(1)  sold, with the proceeds of the refunding bonds 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.  (Acts 61st Leg., R.S., Ch. 699, Secs. 6(a) (part), (c) (part), 7 (part).)

Source Law

Sec. 6.  (a)  … [No bonds shall be issued by such hospital district] except refunding bonds [until authorized by a majority of the qualified property taxpaying electors of the district voting at an election called for such purpose.] …

(c)  Refunding bonds of the district may be issued for the purpose of refunding and paying off any outstanding indebtedness issued or assumed.  Such refunding bonds may be sold and the proceeds therefrom applied to the payment of outstanding indebtedness, or may be exchanged in whole or in part for not less than a like principal amount of such outstanding indebtedness … .

Sec. 7.  … [the board of directors is further authorized] to issue revenue bonds for the purpose of refunding any previously issued revenue bonds and … .

Revisor's Note

(1)  Section 6(c), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that the refunding bonds must bear interest at the same or a lower rate than the rate of the debt refunded unless a savings is shown.  The revised law omits that provision for the reason stated in Revisor's Note (2) to Section 1021.205.  The omitted law reads:

(c)  … provided that, if refunding bonds are to be exchanged for a like amount of said outstanding indebtedness, such refunding bonds shall bear interest at the same or lower rate than borne by the debt refunded, unless it is shown mathematically that a saving will result in the total amount of interest to be paid on said refunding bonds, and … .

(2)  Section 6(c), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that refunding bonds sold to pay outstanding indebtedness must be issued and payments made in the manner specified by Chapter 503, Acts of the 54th Legislature, 1955, as amended (Article 717k, Vernon's Texas Civil Statutes).  Article 717k was codified in 1999 in Chapter 1207, Government Code.  The revised law omits the provision because Chapter 1207, Government Code, applies to the district by its own terms under Section 1207.001, Government Code.  The omitted law reads:

(c)  … provided further that if such refunding bonds are to be sold and the proceeds thereof applied to the payment of any such outstanding indebtedness, same shall be issued and payments made in the manner specified by Chapter 503, Acts of the 54th Legislature, Regular Session, 1955, as amended (Article 717k, Vernon's Texas Civil Statutes).

Revised Law

Sec. 1021.208.  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)  the transfer and issuance of the bonds; and

(3)  profits made in the sale of the bonds.  (Acts 61st Leg., R.S., Ch. 699, Sec. 20 (part).)

Source Law

Sec. 20.  … any bonds issued by it and their transfer and the issuance therefrom, including any profits made in the sale thereof, shall at all times be free from taxation by the state or any municipality or political subdivision thereof.

Revisor's Note

Section 20, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to "any municipality or political subdivision" of this state.  The revised law omits "municipality" because that term is included in the meaning of "political subdivision" of this state.

Revisor's Note

(End of Subchapter)

(1)  Section 12, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that district bonds are legal and authorized investments for certain entities.  The revised law omits the provision as unnecessary.  As to several of the entities listed, Section 12 has been superseded and impliedly repealed.  Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)).  Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings and loan associations are regulated by Sections 63.002 and 64.001, Finance Code.  As to the remaining entities listed, Section 12 is superseded by Section 1201.041, Government Code, enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes).  Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code.  The revised law omits the reference to sinking funds of this state because it has been superseded by Section 404.024, Government Code (enacted in 1985 as Section 2.014, Treasury Act (Article 4393-1, Vernon's Texas Civil Statutes)), which governs the investment of state funds. Section 404.024(b)(10), Government Code, authorizes the investment of state funds in obligations of political subdivisions, including hospital districts.  The omitted law reads:

Sec. 12.  All bonds issued hereunder by the district shall be and are hereby declared to be legal and authorized investments of banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, trustees, and sinking funds of cities, towns, villages, counties, school districts, or other political subdivisions of the State of Texas, and for all public funds of the State of Texas or its agencies including the state permanent school fund. …

(2)  Section 12, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that district bonds may secure deposits of public funds of this state or political subdivisions of this state.  The revised law omits the provision as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions.  The omitted law reads:

Sec. 12.  … Such bonds and indebtedness shall be eligible to secure deposit of public funds of the State of Texas and public funds of cities, towns, villages, counties, school districts, or other political subdivisions or corporations of the State of Texas, and shall be lawful and sufficient security for said deposits to the extent of their value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1021.209-1021.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Revised Law

Sec. 1021.251.  IMPOSITION OF AD VALOREM TAX.  (a)  The board shall impose a tax on all property in the district subject to district taxation.

(b)  The board shall impose the tax to:

(1)  pay the interest on and create a sinking fund for bonds and other obligations issued or assumed by the  district for hospital purposes;

(2)  provide for the operation and maintenance of the district and hospital system;

(3)  make improvements and additions to the hospital system; and

(4)  acquire necessary sites for the hospital system by purchase, lease, or condemnation.  (Acts 61st Leg., R.S.,  Ch. 699, Secs. 2(b) (part), 11 (part).)

Source Law

[Sec. 2]

(b)  … on … taxable property situated within the district subject to hospital district taxation … .

Sec. 11.  The board of directors shall annually levy a tax … for the purpose of (1) paying the interest on and creating a sinking fund for bonds and other obligations which may be issued or assumed by the hospital district for hospital purposes as herein provided; (2) providing for the operation and maintenance of the hospital district and hospital system; and (3) for the purpose of making further improvements and additions to the hospital system, and for the acquisition of necessary sites therefor by purchase, lease or condemnation. …

Revised Law

Sec. 1021.252.  TAX RATE.  (a)  The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district.

(b)  In setting the tax rate, the board shall consider the income of the district from sources other than taxation.  (Acts 61st Leg., R.S., Ch. 699, Secs. 2(b) (part), 11 (part).)

Source Law

[Sec. 2]

(b)  [At the election there shall be submitted to the qualified property taxpaying electors of the area of the proposed district the proposition of whether the hospital district shall be created with authority to levy annual taxes] at a rate not to exceed 75 cents on the $100 valuation of taxable property situated within the district subject to hospital district taxation … .

Sec. 11.  [The board of directors shall annually levy a tax] of not to exceed the amount hereinabove permitted … .  In setting such tax rate the board shall take into consideration the income of the district from sources other than taxation. …

Revisor's Note

Section 11, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, requires the board to levy the tax and to certify the tax rate to the tax assessor-collector.  The revised law omits that provision because Section 26.05(a), Tax Code, requires the governing body of a taxing unit to adopt a tax rate for the current tax year and to notify the tax assessor of that rate.  The omitted law reads:

Sec. 11.  … Upon determination of the amount of tax required to be levied, the board shall make such levy and certify the same to the tax assessor-collector of said district.

Revised Law

Sec. 1021.253.  ASSESSMENT AND COLLECTION BY COUNTY TAX ASSESSOR-COLLECTOR.  (a)  This section applies unless the board elects to have taxes assessed and collected under Section 1021.254.

(b)  The tax assessor-collector of Donley County shall assess and collect taxes imposed by the district.  (Acts 61st Leg., R.S.,  Ch. 699, Sec. 14 (part).)

Source Law

Sec. 14.  … unless the directors, by majority vote, elect to have taxes assessed and collected by its own tax assessor-collector under Subsection (2) hereof.  …

(1)  Under this subsection, … . The tax assessor-collector of the county in which said district is situated shall be charged and required to accomplish the assessment and collection of all taxes levied by and on behalf of the district.  …

Revisor's Note

(1)  Section 14, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to the assessment and collection of district taxes on county tax values.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979, which repealed all "general, local, and special laws" that conflicted with that act.  The 1979 act enacted the Property Tax Code (Title 1, Tax Code), a comprehensive, substantive codification of property tax law.  Title 1, Tax Code, provides the exclusive procedures for the appraisal of property for taxation by a taxing unit, including a hospital district.  The omitted law reads:

Sec. 14.  …  All taxes of the district shall be assessed and collected on county tax values as provided in Subsection (1) hereof . …

(1)  … district taxes shall be assessed and collected on county tax values in the same manner as provided by law with relation to county taxes. …

(2)  Section 14(1), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to the tax assessor-collector "of the county in which said district is situated."  The revised law substitutes "Donley County" for the quoted language because that is the county in which the district is located.

(3)  Section 14(1), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that the county tax assessor-collector may charge a fee for the assessment and collection of district taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (1).  Section 6.27(b), Tax Code,  provides for the compensation of a county tax assessor-collector assessing and collecting taxes for another taxing unit.  The omitted law reads:

(1)  … The assessor-collector of taxes shall charge and deduct from payments to the hospital district an amount as fees for assessing and collecting the taxes at a rate of not exceeding two percent of the amounts collected as may be determined by the board of directors, but in no event shall the amount paid exceed $5,000 in any one calendar year.  Such fees shall be deposited in the officers salary fund of the county and reported as fees of office of the county tax assessor-collector. …

(4)  Section 14(1), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that interest and penalties on district taxes and discounts are the same as for county taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (1). Chapter 33, Tax Code, provides for the assessment of penalties and interest on delinquent taxes, and Section 31.05, Tax Code, provides for discounts on the early payment of taxes.  The omitted law reads:

(1)  … Interest and penalties on taxes paid to the hospital district shall be the same as in the case of county taxes.  Discounts shall be the same as allowed by the county. …

(5)  Section 14(1), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that tax revenue shall be deposited in the district's depository.  The revised law omits the provision because Section 31.10, Tax Code, requires the tax assessor-collector of a taxing unit to deposit taxes collected in the unit's depository.  The omitted law reads:

(1)  … The residue of tax collections after deduction of discounts and fees for assessing and collecting shall be deposited in the district's depository. …

(6)  Section 14(1), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that the bond of the county tax assessor-collector is security for the performance of district duties unless the board determines that an additional bond is necessary.  The revised law omits that provision because it duplicates Section 6.29(b), Tax Code, which authorizes a taxing unit for which the county tax assessor-collector collects a tax to require that collector to post an additional bond.  The omitted law reads:

(1)  … The bond of the county tax assessor-collector shall stand as security for the proper performance of his duties as assessor-collector of the district; or, if in the judgment of the district board of directors it is necessary, additional bond payable to the district may be required.  …

(7)  Section 14(1), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, states that the tax assessor-collector may act in accordance with state law relating to the assessment, collection, and enforcement of state and county taxes.  The revised law omits that provision as unnecessary.  The state law relating to the assessment, collection, and enforcement of all ad valorem taxes is Title 1, Tax Code.  Section 1.02, Tax Code, requires all taxing units of government to administer the assessment, collection, and enforcement of taxes in conformity with that title.  The omitted law reads:

(1)  … In all matters pertaining to the assessment, collection and enforcement of taxes for the district, the county tax assessor-collector shall be authorized to act in all respects according to the laws of the State of Texas relating to state and county taxes.

Revised Law

Sec. 1021.254.  ASSESSMENT AND COLLECTION BY DISTRICT TAX ASSESSOR-COLLECTOR.  (a)  The board may elect to have district taxes assessed and collected by a tax assessor-collector appointed by the board.  An election under this subsection must be made by December 1 and governs the manner in which taxes are assessed and collected, until changed by a similar resolution.

(b)  The district tax assessor-collector must:

(1)  reside in the district; and

(2)  own real property subject to district taxation.

(c)  The board shall set for the district tax assessor-collector:

(1)  the terms of employment; and

(2)  compensation.  (Acts 61st Leg., R.S., Ch. 699, Sec. 14 (part).)

Source Law

Sec. 14.  … [unless the directors, by majority vote, elect to have taxes assessed and collected by its own tax assessor-collector under Subsection (2) hereof.]  Any such election may be made prior to December 1 annually and shall govern the manner in which taxes are thereafter assessed and collected, until changed by a similar resolution.

(2)  Under this subsection, taxes shall be assessed and collected by a tax-collector appointed by the directors, who shall also fix the terms of his employment, compensation, and … the tax assessor shall be residents of the district and own real property subject to hospital district taxation, and … .

Revisor's Note

(1)  Section 14(2), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, requires the board to set a bond amount of not less than $5,000 as security for the district tax assessor-collector.  The revised law omits the provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (1) to Section 1021.253.  Section 6.29(a), Tax Code,  authorizes the governing body of a taxing unit, including a hospital district, to require the unit's tax assessor-collector to post bond without limiting the amount. The omitted law reads:

(2)  … [directors, who shall also fix the] … requirement for bond to assure the faithful performance of his duties, but in no event shall such bond be for less than $5,000. …

(2)  Section 14(2), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, states that the board shall appoint a board of equalization and establishes the duties of that board and the tax assessor-collector.  The revised law omits the references to a board of equalization because boards of equalization were abolished and their functions and duties transferred to appraisal review boards by the 1979 enactment of the Property Tax Code, Title 1, Tax Code (Section 1, Chapter 841, Acts of the 66th Legislature, Regular Session, 1979).  The provisions relating to the duties of the tax assessor-collector are omitted because the Tax Code specifies the duties of a tax assessor-collector.  The omitted law reads:

(2)  … The directors shall also annually appoint five persons to serve as a board of equalization and shall fix their compensation.  Each member of the board and … [shall be residents of the district and own real property subject to hospital district taxation, and] each shall have the same duties, including the obligation to execute the oath of office, as required by county officials exercising such powers and duties. …

(3)  Section 14(2), Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, refers to the applicability of Title 122 of the Revised Statutes (Taxation).  Before its repeal and recodification, Title 122 was composed of V.A.C.S. Articles 7041-7359a.  The relevant parts of those provisions were revised in 1979 as the Property Tax Code, Title 1, Tax Code (Section 1, Chapter 841, Acts of the 66th Legislature, Regular Session, 1979).  The revised law omits the provision because Title 1 applies to the district on its own terms.  The omitted law reads:

(2)  … Except as in this law provided to the contrary, all the provisions of Title 122, Revised Civil Statutes of Texas, 1925, as amended, shall apply to the district.

Revisor's Note

(End of Subchapter)

Section 14, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that the district may impose taxes for the entire year in which the district is established.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 14.  The directors shall have the authority to levy taxes for the entire year in which the district is established as the result of the election herein provided.  …

Revisor's Note

(End of Chapter)

(1)  Section 1, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides for the transfer of certain land, buildings, equipment, and funds to the district after the district is created and provides for the assumption of debt by the district on creation.  The revised law omits the provisions as executed.  The omitted law reads:

Sec. 1.  … Any lands, buildings or equipment that may be owned by Donley County or by any city or town in Donley County, by which medical services or hospital care, including geriatric care, are furnished to needy persons of the county, shall become the property of the hospital district; and title thereto shall vest in the hospital district; and the unspent portion of any funds theretofore set up or appropriated by budget or otherwise by said county, or city or town in the county, for the support and maintenance of the hospital facilities, for the year within which the hospital district comes into existence, shall become the funds of the hospital district and title shall vest in the hospital district, thereby providing such hospital district with funds with which to maintain and operate such facilities for the remainder of such year.  All obligations under contract legally incurred by said county, city or town, for the building of, or the support and maintenance of, hospital facilities, prior to the creation of the said district but outstanding at the time of the creation of the district, shall be assumed and discharged by the hospital district without prejudice to the rights of third parties, provided that the management and control of the property and affairs of the present hospital system shall continue in the board of directors of such system until the organization of the board of directors of the hospital district, at which time the board of directors of the present hospital system or systems shall turn over all records, property and affairs of said hospital system to the board of directors of the hospital district and shall cease to exist.

The Commissioners Court, where the county owns the hospital or hospital system, or the city or town council where the city or town owns the hospital or hospital system, as the case may be, as soon as the hospital district is created and authorized at the election hereinabove provided, and there have been qualified the board of directors as hereinbefore provided, shall execute and deliver to the hospital district, to-wit:  to its said board of directors an instrument in writing conveying to said hospital district the hospital property, including lands, buildings and equipment; and shall transfer to said hospital district the funds hereinabove provided to become vested in the hospital district, upon being furnished the certificate of the president of the board to the effect that a depository for the district's funds has been selected and has qualified; which funds shall, in the hands of the hospital district and of its board of directors be used for all purposes of the same purposes as, and for no other purposes than, the purposes for which said county, or city or town, transferring such funds could lawfully have used the same had it remained the property and funds of said county, city or town.

(2)  Section 21, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that the act is severable.  The revised law omits that provision because it duplicates Section 311.032, Government Code (Code Construction Act), which provides that a provision of a statute is severable from each other provision of the statute that can be given effect.  The omitted law reads:

Sec. 21.  … If any provision of this Act should be invalid, such fact shall not affect the authorization for the creation of the District or the validity of any other provisions of this Act, and the Legislature hereby declares that it would have created the District and enacted the valid provisions of this Act notwithstanding the invalidity of any other provision or provisions hereof.

(3)  Section 22, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that public notice of enactment of the statute was provided in a manner that satisfies the requirements of the Texas Constitution.  The revised law omits that section as executed.  The omitted law reads:

Sec. 22.  Proof of publication of the notice required in the enactment hereof under the provisions of Article IX, Section 9, of the Texas Constitution has been made in the manner and form provided by law pertaining to the enactment of local and special laws, and such notice is hereby found and declared proper and sufficient to satisfy such requirement.

(4)  Section 24, Chapter 699, Acts of the 61st Legislature, Regular Session, 1969, provides that certain district actions or attempted actions in the issuance of notes and district proceedings authorizing the issuance, execution, or delivery of district obligations are validated.  The revised law omits the provision because it served its purpose on the day it took effect and is executed law.  Section 311.031(a)(2), Government Code (Code Construction Act), provides that the repeal of a statute does not affect any validation previously made under the statute.  The omitted law reads:

Sec. 24.  All proceedings, resolutions, orders, and other acts or attempted acts of the district in the issuance of notes and all proceedings of the district authorizing the issuance, execution, and delivery of notes and other obligations of the district are validated in all respects and are valid as though the notes had been originally and duly authorized, accomplished, validated, ratified, approved, and confirmed.

(5)  Section 2, Chapter 1325, Acts of the 77th Legislature, Regular Session, 2001, provides that  Chapter 1325 does not apply to certain matters being litigated on the effective date of Chapter 1325.  The revised law omits the provision as executed and because Sections 311.031(a)(1) and (2), Government Code (Code Construction Act), provide that the repeal of a statute does not affect the prior operation of a statute or any validation, cure, right, privilege, obligation, or liability acquired, accrued, accorded, or incurred under the statute.  The omitted law reads:

Sec. 2.  This Act does not apply to any matter involved in litigation on the effective date of this Act if the litigation ultimately results in the matter being held invalid in a final judgment of a court of competent jurisdiction.

TLC: Special District Local Laws Code Proposed Chapters
This web page is published by the Texas Legislative Council and was last updated November 18, 2006.