Skip to main content.
site logo and link to Texas Legislative Council home page
Texas Legislative Council
Special District Local Laws Code
Proposed Chapters
80C43(3) BDH

80C43(3) BDH

 

CHAPTER 1040.  HASKELL COUNTY HOSPITAL DISTRICT

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 1040.001.  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 Haskell 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 definition.

Revised Law

Sec. 1040.002.  AUTHORITY FOR OPERATION.  The Haskell County Hospital District operates in accordance with and has the powers and responsibilities provided by Section 9, Article IX, Texas Constitution.  (Acts 60th Leg., R.S., Ch. 528, Sec. 1 (part).)

Source Law

Sec. 1.  In accordance with the provisions of Article II, 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 Haskell County Hospital District, … said district shall have the powers and responsibilities provided by the aforesaid constitutional provision.

Revisor's Note

Section 1, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, 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. 1040.003.  POLITICAL SUBDIVISION.  The district is a political subdivision of this state.  (Acts 60th Leg., R.S., Ch. 528, Sec. 18 (part).)

Source Law

Sec. 18.  The hospital district created under the provisions of this Act shall be and is declared to be a political subdivision of the State of Texas, and … .

Revised Law

Sec. 1040.004.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of Haskell County, except the district does not include any territory located in the Stamford Hospital District as the Stamford Hospital District existed on June 14, 1967.  (Acts 60th Leg., R.S., Ch. 528, Sec. 1 (part).)

Source Law

Sec. 1.  …  such district to embrace all of Haskell County, except that portion of said County now embraced within the Stamford Hospital District; and … .

Revisor's Note

Section 1, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, provides that the district does not include any territory "now embraced" within the Stamford Hospital District.  The revised law substitutes "June 14, 1967," for the quoted language because that was the effective date of Chapter 528.

Revised Law

Sec. 1040.005.  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 60th Leg., R.S., Ch. 528, Sec. 19 (part).)

Source Law

Sec. 19.  …  [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 19, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, 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. 19.  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… .

Revisor's Note

(End of Subchapter)

Sections 2 and 3, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, 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 the relevant law as executed.  The omitted law reads:

Sec. 2.  …  provided, however, that such hospital district shall not be created unless and until an election is duly held in the county for such purpose, which said election shall be called by the Commissioners Court of the county upon presentation of a petition of one hundred (100) resident legally qualified property taxpaying electors, to be held not less than thirty (30) days from the time said election is ordered by the Commissioners Court.  At said election there shall be submitted to the legally qualified property taxpaying electors the proposition of whether or not a hospital district shall be created in the county; and a majority of the legally qualified property taxpaying electors participating in said election voting in favor of the proposition shall be necessary.  The ballots shall have printed thereon:

"FOR the creation of a hospital district; providing for the levy of a tax not to exceed seventy-five cents (75¢) on the One Hundred Dollars ($100) valuation; and providing for the assumption by such District of all outstanding bonds heretofore issued by Haskell County for hospital purposes not heretofore assumed by the Stamford Hospital District."

"AGAINST the creation of a hospital district; providing for the levy of a tax not to exceed seventy-five cents (75¢) on the One Hundred Dollars ($100) valuation; and providing for the assumption by said District of all outstanding bonds heretofore issued by Haskell County for hospital purposes not heretofore assumed by the Stamford Hospital District."

Sec. 3.  Within ten (10) days after such election is held, the Commissioners Court of Haskell County shall convene and canvass the returns of the election, and if a majority of the legally qualified property taxpaying electors voting at said election voted in favor of the proposition, the court shall so find and declare the hospital district established and created and … .

If the proposition to create the Haskell County Hospital District fails to carry at the election, no other election for the same purpose may be held within one year after the result of the election is announced officially.

[Sections 1040.006-1040.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1040.051.  BOARD; TERM. (a) The board consists of six directors appointed by the Commissioners Court of Haskell County.

(b)  Directors serve staggered two-year terms.  (Acts 60th Leg., R.S., Ch. 528, Sec. 3 (part).)

Source Law

Sec. 3.  … [the Commissioners Court of Haskell County shall] … appoint six (6) persons as directors of the hospital district, the first three named directors to serve until the first Saturday in April, 1968, and the other three named directors to serve until the first Saturday in April, 1969, and thereafter three directors shall be appointed by the Commissioners Court each year to serve for two (2) years… .

Revisor's Note

Section 3, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, prescribes the procedures for appointing the initial board.  The revised law omits the provision as executed but codifies the establishment of a board consisting of six directors appointed by the Commissioners Court of Haskell County.  Section 3 also establishes staggered two-year terms for the initial directors that expire on the first Saturday in April in the first or second year after the district is created.  The revised law codifies the provision specifying staggered terms but omits the provision relating to the date on which the initial terms expire as executed.

Revised Law

Sec. 1040.052.  QUALIFICATIONS FOR OFFICE. A person may not be appointed as a director unless the person:

(1)  is a resident of the district; and

(2)  owns land in the district subject to taxation.  (Acts 60th Leg., R.S., Ch. 528, Sec. 3 (part).)

Source Law

Sec. 3.  …  No person shall be appointed as a member of the board of directors of said hospital district unless he is a resident thereof and owns land subject to taxation therein and unless at the time of such appointment he shall be more than twenty-one (21) years of age… .

Revisor's Note

Section 3, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, states that a person may not be appointed to the board unless the person is "more than twenty-one (21) years of age."  The revised law omits that provision because Chapter 129, Civil Practice and Remedies Code, establishes 18 years as the age of majority in this state.  Section 129.002, Civil Practice and Remedies Code, provides that a law adopted before August 27, 1973, that extends a right, privilege, or obligation to an individual on the basis of a minimum age of 19, 20, or 21 years shall be interpreted as prescribing a minimum age of 18 years.  Section 3 was enacted in 1967 and has not been amended.

Revised Law

Sec. 1040.053.  BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF OFFICE.  (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)  Each director's bond and constitutional oath or affirmation of office shall be deposited with the district's depository bank for safekeeping.  (Acts 60th Leg., R.S., Ch. 528, Sec. 3 (part).)

Source Law

Sec. 3.  … Each member of the board of directors shall qualify by executing the constitutional oath of office and shall execute a good and sufficient bond for One Thousand Dollars ($1,000.00) payable to said district conditioned upon the faithful performance of his duties, and such oaths and bonds shall be deposited with the depository bank of the district for safekeeping… .

Revisor's Note

Section 3, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, requires each director to take the constitutional oath of office.  The revised law omits that provision because Section 1, Article XVI, Texas Constitution, requires all officers to take the oath (or affirmation) before assuming office.  Additionally, the revised law provides for the deposit of the constitutional affirmation, as well as the constitutional oath, because Section 1, Article XVI, Texas Constitution, permits an officer in this state to take either the constitutional oath or affirmation.

Revised Law

Sec. 1040.054.  OFFICERS.  The board shall elect from among its members a president, a vice president, and a secretary.  (Acts 60th Leg., R.S., Ch. 528, Sec. 3 (part).)

Source Law

Sec. 3.  …  The board of directors shall organize by electing one (1) of their number as president, one (1) of their number as vice-president and one (1) of their number as secretary… .

Revised Law

Sec. 1040.055.  COMPENSATION; EXPENSES.  A director serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties on approval of the expenses by the entire board.  (Acts 60th Leg., R.S., Ch. 528, Sec. 4 (part).)

Source Law

Sec. 4.  … [the board of directors of the district] who 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 entire board of directors.

Revised Law

Sec. 1040.056.  VOTING REQUIREMENT.  A concurrence of four directors is sufficient in any matter relating to district business.  (Acts 60th Leg., R.S., Ch. 528, Sec. 3 (part).)

Source Law

Sec. 3.  … [members of the board] … a concurrence of four (4) shall be sufficient in all matters pertaining to the business of the district… .

Revisor's Note

Section 3, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, 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:

Sec. 3.  … Any four (4) members of the board of directors shall constitute a quorum and … .

Revised Law

Sec. 1040.057.  EMPLOYEES.  The board may employ a general manager and other necessary professional and clerical personnel.  (Acts 60th Leg., R.S., Ch. 528, Sec. 9 (part).)

Source Law

Sec. 9.  The board of directors of the district … may employ a general manager, and such professional and clerical assistance as may be necessary… .

Revised Law

Sec. 1040.058.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.  Except as provided by Section 1040.053, all district records, including books, accounts, notices, minutes, and all other matters of the district and the operation of its facilities, shall be:

(1)  maintained at the district office; and

(2)  open to public inspection at the district office at all reasonable hours.  (Acts 60th Leg., R.S., Ch. 528, Sec. 9 (part).)

Source Law

Sec. 9.  …  All books, records, accounts, notices and minutes and all other matters of the district and the operation of its facilities shall, except as herein provided, be maintained at the office of the district and there be open to public inspection at all reasonable hours… .

Revisor's Note

Section 9, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, states that records shall be maintained at the district office "except as herein provided."  For the convenience of the reader, the revised law substitutes a reference to Section 1040.053, which is the only exception provided in Chapter 528.

Revised Law

Sec. 1040.059.  SEAL.  The board may adopt a seal for the district.  (Acts 60th Leg., R.S., Ch. 528, Sec. 9 (part).)

Source Law

Sec. 9.  [The board of directors] … shall have the power to adopt a seal for such district; and … .

[Sections 1040.060-1040.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1040.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for providing medical, hospital, and health care for the district's needy and indigent residents.  (Acts 60th Leg., R.S., Ch. 528, Secs. 2 (part), 14 (part).)

Source Law

Sec. 2.  That said district hereby provided for shall assume full responsibility for providing medical and hospital care for the needy persons residing within the district; … .

Sec. 14.  … such hospital district shall be deemed to have assumed full responsibility for the furnishing of medical and hospital care for the needy and indigent persons residing in said hospital district from the date that taxes are collected for the hospital district.

Revisor's Note

Sections 2 and 14, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, provide that the district "shall assume" full responsibility for providing medical, hospital, and health care for the district's needy and indigent residents, and Section 14 provides that the district shall assume that responsibility "from the date that taxes are collected for the hospital district."  The revised law substitutes "has" for "shall assume" because the duty to assume the responsibility is executed.  The revised law omits "from the date that taxes are collected for the hospital district" as executed.

Revised Law

Sec. 1040.102.  RESTRICTION ON COUNTY OR MUNICIPALITY TAXATION.  Haskell County or a municipality in Haskell County may not impose a tax for hospital purposes.  (Acts 60th Leg., R.S., Ch. 528, Sec. 14 (part).)

Source Law

Sec. 14.  After the hospital district has been organized pursuant to this Act, neither Haskell County nor any city therein shall levy any tax for hospital purposes; and … .

Revisor's Note

(1)  Section 14, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, provides that "[a]fter the hospital district has been organized pursuant to this Act," certain political subdivisions may not levy taxes for hospital purposes.  The revised law omits the quoted language as executed.  In addition, the revised law substitutes "impose" for "levy" because, in context, the terms are synonymous and "impose" is more commonly used.

(2)  Section 14, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, refers to a "city."  The revised law substitutes "municipality" for "city" because that is the term used in the Local Government Code.

Revised Law

Sec. 1040.103.  MANAGEMENT AND CONTROL.  The management and control of the district is vested in the board.  (Acts 60th Leg., R.S., Ch. 528, Sec. 4 (part).)

Source Law

Sec. 4.  The management and control of such hospital district created pursuant to the provisions of this Act is hereby vested in the board of directors of the district … .

Revised Law

Sec. 1040.104.  RULES.  (a)  The board may adopt rules governing the operation of the district, including district facilities.

(b)  On approval by the board, the rules may be published in booklet form at district expense and made available to any taxpayer on request.  (Acts 60th Leg., R.S., Ch. 528, Sec. 9 (part).)

Source Law

Sec. 9.  …  The board of directors is specifically empowered to adopt rules and regulations governing the operation of the district and its facilities which rules and regulations shall supplement but shall not contravene any of the provisions of this Act.  Such rules and regulations may, upon approval of the board of directors, be published in booklet or pamphlet form at the expense of the district and may be made available to any taxpayer upon request.

Revisor's Note

(1)  Section 9, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, refers to "rules and regulations."  The revised law omits the references to "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

(2)  Section 9, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, provides that the board may adopt rules that "shall supplement but shall not contravene any of the provisions of this Act."  The revised law omits the quoted language because, under established principles of law, the board is not authorized to take any action contrary to the laws of this state.

(3)  Section 9, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, refers to publishing rules in "booklet or pamphlet form."  The revised law omits "pamphlet" because, in context, the meaning of "pamphlet" is included in the meaning of "booklet."

Revised Law

Sec. 1040.105.  PURCHASING AND ACCOUNTING PROCEDURES.  (a)  The board may prescribe the method and manner of making purchases and expenditures by and for the district.

(b)  The board shall prescribe:

(1)  all accounting and control procedures; and

(2)  the method of purchasing necessary supplies, materials, and equipment.  (Acts 60th Leg., R.S., Ch. 528, Sec. 9 (part).)

Source Law

Sec. 9.  The board of directors of the district shall have the power to prescribe the method and manner of making purchases and expenditures by and for the hospital district, and also shall prescribe all accounting and control procedures; the method of purchasing necessary supplies, materials and equipment; and … .

Revised Law

Sec. 1040.106.  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, real, personal, or mixed, located in district territory, if the interest is necessary or convenient for the district to exercise a right, power, privilege, or function conferred on the district 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 bond or other security for costs in the trial court;

(2)  provide 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 60th Leg., R.S., Ch. 528, Sec. 11.)

Source Law

Sec. 11.  The hospital district organized in pursuance of this Act shall have the right and power of eminent domain for the purpose of acquiring by condemnation any and all property of any kind or character, real, personal or mixed, or any interest therein, including outright ownership of such property in fee simple absolute, within the boundaries of said district, necessary or convenient to the exercise of the rights, powers, privileges and functions conferred upon it by this Act, in the manner provided by General Law with respect to condemnation by counties; provided that the said district shall not be required to make deposits in the registry of the trial court of the sum required by paragraph Number 2 in Article 3268, Vernon's Texas Civil Statutes, 1925, or to make the bond required therein.  In condemnation proceedings being prosecuted by the said district, the district shall not be required to pay in advance or to 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 relating to a condemnation proceeding, nor to give bond for costs or for supersedeas on any appeal or writ of error proceeding to any court of civil appeals or to the Supreme Court.

Revisor's Note

(1)  Section 11, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, 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 11, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, provides that the district must exercise the power of eminent domain in the manner provided by "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 11, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, refers to "paragraph Number 2 in Article 3268, Vernon's Texas Civil Statutes, 1925."  That statute was codified in 1983 as Section 21.021(a), Property Code, and the revised law is drafted accordingly.

(4)  Section 11, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, provides that the district is not required to provide bond on any appeal or writ of error proceedings to "any court of civil appeals or to the Supreme Court."  The revised law omits the references to the courts because those are the only courts to which the district may appeal or apply for a writ of error.

Revised Law

Sec. 1040.107.  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 60th Leg., R.S., Ch. 528, Sec. 16.)

Source Law

Sec. 16.  Said board of directors of the hospital district is authorized on behalf of said hospital district to accept donations, gifts and endowments for the hospital district 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 donor, not inconsistent with proper management and objects of hospital district.

Revisor's Note

Section 16, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, 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. 1040.108.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient is admitted to a district facility, the board shall 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 an agent designated by the district to handle the inquiry 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 it is determined that the patient or those relatives are liable to 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 to the district's treasurer a specified amount each week for the patient's support.  The amount ordered must be proportionate to financial ability and may not exceed the actual per capita cost of maintenance.

(d)  The district may collect the amount from the patient's estate, or from a 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's designated agent, the board shall hold a hearing and, after calling witnesses, shall:

(1)  resolve the dispute or doubt; and

(2)  issue an appropriate order.

(f)  Either party to the dispute may appeal the order to the district court.  (Acts 60th Leg., R.S., Ch. 528, Sec. 15.)

Source Law

Sec. 15.  Whenever a patient has been admitted to the facilities of the hospital district, the directors shall cause inquiry to be made as to his circumstances, and of the relatives of such patient legally liable for his support.  If it is found that such patient or said relatives are liable 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 treasurer of the hospital district for the support of such patient a specified sum per week, in proportion to their financial ability, but such sum shall not exceed the actual per capita cost of maintenance.  The district shall have power and authority to collect such sum from the estate of the patient, or his relatives legally liable for his support, in the manner provided by law for the collection of expenses of the last illness of a deceased person.  If the agent designated by the district to handle such affairs 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, the same shall become a charge upon the hospital district.  Should there be a dispute as to the ability to pay, or doubt in the mind of the person designated as aforesaid, the district's directors shall hear and determine same, after calling witnesses, and shall make such order as may be proper, from which appeal shall lie to the district court by either party to the dispute.

Revised Law

Sec. 1040.109.  AUTHORITY TO SUE AND BE SUED.  As a governmental agency, the district may sue and be sued in its own name in any court in this state.  (Acts 60th Leg., R.S., Ch. 528, Sec. 18 (part).)

Source Law

Sec. 18.  The hospital district … as a governmental agency may sue and be sued in any and all courts in this State in the name of such district.

Revisor's Note

(End of Subchapter)

Section 13, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, provides authority for the "State Board of Health or any State Board of Charities (of Public Welfare)" to inspect district facilities and records.  The revised law omits Section 13 because various state laws, including Chapters 222 and 241, Health and Safety Code, provide the necessary inspection authority to appropriate state agencies.  The omitted law reads:

Sec. 13.  The hospital district established or maintained under the provisions of this Act shall be subject to inspection by any duly authorized representative of the State Board of Health or any State Board of Charities (of Public Welfare) that now exists or that may be hereafter created, and any resident officers shall admit such representatives into all hospital district facilities and give them access on demand to all records, reports, books, papers, and accounts pertaining to the hospital district.

[Sections 1040.110-1040.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1040.151.  BUDGET.  The board annually shall require a budget to be prepared for the next fiscal year that includes:

(1)  proposed expenditures and disbursements;

(2)  estimated receipts and collections; and

(3)  the amount of taxes required to be imposed for the year.  (Acts 60th Leg., R.S., Ch. 528, Sec. 10 (part).)

Source Law

Sec. 10.  … The board of directors shall each year cause a budget to be prepared showing the proposed expenditures and disbursements and the estimated receipts and collections for the following fiscal year and … . The proposed budget shall also show the amount of taxes required to be levied and collected during such fiscal year and … .

Revisor's Note

Section 10, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, refers to taxes "levied and collected."  The revised law substitutes "impose" for the quoted language because "impose" is the term generally used in Title 1, Tax Code, and includes the levy and collection of an ad valorem tax.

Revised Law

Sec. 1040.152.  PROPOSED BUDGET: NOTICE AND HEARING.  (a)  The board shall hold a public hearing on the proposed budget.

(b)  Notice of the hearing must be published at least once in a newspaper of general circulation in Haskell County not later than the 10th day before the date of the hearing.

(c)  Any district taxpayer is entitled to:

(1)  appear at the time and place designated in the notice; and

(2)  be heard regarding any item included in the proposed budget.  (Acts 60th Leg., R.S., Ch. 528, Sec. 10 (part).)

Source Law

Sec. 10.  … [The board of directors] … shall hold a public hearing on the proposed budget after publication of a notice of hearing in a newspaper of general circulation in the county at least once not less than ten (10) days prior to the date set for the hearing.  Any person who is a taxpayer of the district shall have the right to appear at the time and place designated in the notice and be heard with reference to any item shown in the proposed budget… .

Revisor's Note

Section 10, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, refers to "the county."  Throughout this chapter, the revised law substitutes Haskell County for the quoted language because that is the county in which the district is located.

Revised Law

Sec. 1040.153.  FISCAL YEAR.  The district operates on a fiscal year that begins on October 1 and ends on September 30.  (Acts 60th Leg., R.S., Ch. 528, Sec. 10 (part).)

Source Law

Sec. 10.  The fiscal year of the hospital district authorized to be established by the provisions hereof shall commence on October 1st of each year and end on September 30th of the following year. …

Revised Law

Sec. 1040.154.  ANNUAL AUDIT.  (a)  The board annually shall have an independent audit made of the district's books and records for the fiscal year.

(b)  Not later than December 31 each year, the audit shall be filed:

(1)  with the comptroller; and

(2)  at the district office.  (Acts 60th Leg., R.S., Ch. 528, Sec. 10 (part).)

Source Law

Sec. 10.  … The district directors shall cause an annual independent audit to be made of the books and records of the district, such audit to be made covering such fiscal year, and the same shall be filed with the Comptroller of Public Accounts of the State of Texas and at the office of the district not later than December 31st of each year. …

Revisor's Note

Section 10, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, refers to "the Comptroller of Public Accounts of the State of Texas."  The revised law substitutes "comptroller" for the quoted language because Section 403.001, Government Code, defines "comptroller" in any state statute to mean the comptroller of public accounts of the State of Texas.

Revised Law

Sec. 1040.155.  DEPOSITORY OR TREASURER.  (a)  The board by resolution shall designate a bank or banks in Haskell County as the district's depository or treasurer.  A designated bank serves for two years and until a successor is designated.

(b)  All income received by the district shall be deposited with the district depository.

(c)  All district money shall be secured in the manner provided for securing county funds.  (Acts 60th Leg., R.S., Ch. 528, Secs. 5 (part), 12.)

Source Law

Sec. 5.  … [shall be deposited in the district depository and] … . All other income of the hospital district shall be deposited in like manner with the district depository… .

Sec. 12.  Within thirty (30) days after appointment and qualification of the board of directors of the hospital district, the said directors shall by resolution designate a bank or banks within Haskell County as the district's depository or treasurer and all funds of the district shall be secured in the manner now provided for the security of county funds.  The depository shall serve for a period of two (2) years and until a successor has been named.

Revisor's Note

Section 12, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, requires the board to select a depository or treasurer "[w]ithin thirty (30) days after appointment and qualification of the board of directors of the hospital district."  The revised law omits the quoted language as executed.

[Sections 1040.156-1040.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Revised Law

Sec. 1040.201.  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 and improvements for hospital purposes.  (Acts 60th Leg., R.S., Ch. 528, Sec. 8 (part).)

Source Law

Sec. 8.  The board of directors shall have the power and authority to issue and sell as the obligations of the hospital district, and in the name and upon the faith and credit of the hospital district, bonds 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 8, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, 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 8 are known as "general obligation bonds," the revised law is drafted accordingly.

Revised Law

Sec. 1040.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  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 general obligation bonds issued by the district under Section 1040.201 as the bonds mature.

(b)  The tax required by this section together with any maintenance and operation tax the district imposes may not in any year exceed 75 cents on each $100 valuation of all taxable property in the district.  (Acts 60th Leg., R.S., Ch. 528, Sec. 8 (part).)

Source Law

Sec. 8.  … provided, that a sufficient tax shall be levied to create an interest and sinking fund to pay the interest and principal as same matures, provided that the maintenance and operation tax, together with the bond tax, shall not exceed seventy-five cents (75¢) in any one (1) year. …

Revisor's Note

Section 8, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, requires the district to impose 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.

Revised Law

Sec. 1040.203.  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 board may order the election on its own motion.

(c)  The order calling the election must specify:

(1)  the location of the polling places;

(2)  the presiding election officers;

(3)  the purpose of the bond issuance;

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

(5)  the maximum interest rate of the bonds; and

(6)  the maximum maturity date of the bonds.

(d)  Notice of a bond election shall be given by publishing a substantial copy of the order calling the election in a newspaper of general circulation in Haskell County once each week for two consecutive weeks before the date of the election.  The first publication must occur at least 14 days before the date of the election.  (Acts 60th Leg., R.S., Ch. 528, Sec. 8 (part).)

Source Law

Sec. 8.  … No bonds shall be issued by the hospital district … until authorized by a majority vote of the legally qualified property taxpaying electors, residing in the hospital district, voting at an election called and held for such purpose.  Such election may be called by the board of directors on its own motion, shall specify the place or places where the election shall be held, the presiding officers thereof, the purpose for which the bonds are to be issued, the amount thereof, the maximum interest rate (not to exceed six percent (6%) per annum) and the maximum maturity date of such bonds … . Notice of election shall be given by publishing a substantial copy of the order calling the election in a newspaper of general circulation in such county once a week for two (2) consecutive weeks prior to the date of election, the date of the first publication being at least fourteen (14) full days prior to the date set for the election. …

Revisor's Note

(1)  Section 8, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, refers to the "legally qualified … electors" of the district.  The revised law omits the quoted language because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "[legally] qualified" voters who are residents of the territory covered by the election to vote in an election.  The revised law omits "legally" because Section 11.001, Election Code, provides that, to be eligible to vote, a person must satisfy all requirements for voting required by law for the particular election.  Finally, the revised law substitutes "voter" for "elector" because that is the term used in the Election Code.

(2)  Section 8, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, refers to "property taxpaying" voters.  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 8, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, provides that the district may not issue general obligation bonds until authorized by an election "called and held" for that purpose.  The revised law omits the reference to "calling" an election because, in this context, "calling" an election is included in the meaning of "holding" an election.  Under Chapter 3, Election Code, all elections must be ordered (called) before they may be held.

(4)  Section 8, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, requires the district to pay the costs of elections.  The revised law omits the provision because it duplicates Section 1.014, Election Code, applicable to the district under Section 1.002 of that code.  The omitted law reads:

Sec. 8.  … The costs of such election shall be paid by the hospital district. …

(5)  Section 8, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, provides that the ballot proposition must include the maximum interest rate "(not to exceed six percent (6%) per annum)."  The revised law omits the quoted language 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.

Revised Law

Sec. 1040.204.  MATURITY OF GENERAL OBLIGATION BONDS.  District general obligation bonds must mature not later than 40 years after the date of issuance.  (Acts 60th Leg., R.S., Ch. 528, Sec. 8 (part).)

Source Law

Sec. 8.  … [and the maximum maturity date of such bonds] (not to exceed forty (40) years from their date of issuance)… .

Revised Law

Sec. 1040.205.  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.  (Acts 60th Leg., R.S., Ch. 528, Sec. 8 (part).)

Source Law

Sec. 8.  … Such bonds shall be executed in the name of the district and on its behalf by the president of the board of directors, and countersigned by the secretary of the board of directors, and … .

Revisor's Note

Section 8, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, provides that the general obligation 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 8 also provides that after approval 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 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:

Sec. 8.  [Such bonds] … shall be subject to the same requirements in the matter of approval thereof by the Attorney General of the State of Texas and registration thereof by the Comptroller of Public Accounts of the State of Texas as are by law provided for such approval and registration of bonds of such county.  Upon the approval of such bonds by the Attorney General of Texas the same shall be incontestable for any cause. …

Revised Law

Sec. 1040.206.  REFUNDING BONDS.  (a) The board may, without an election, issue refunding bonds in the manner provided by this subchapter to refund outstanding bonds issued by the district.

(b)  A refunding bond may be:

(1)  sold, with the proceeds of the refunding bond applied to the payment of the bonds to be refunded; or

(2)  exchanged wholly or partly for not less than a similar amount of the outstanding bonds and the unpaid matured interest on those bonds.  (Acts 60th Leg., R.S., Ch. 528, Sec. 8 (part).)

Source Law

Sec. 8.  … [No bonds shall be issued by the hospital district] (except refunding bonds) [until authorized by a majority vote of … electors] … .  In the manner hereinabove provided, the bonds of such hospital district may, without the necessity of any election therefor, be issued for the purpose of refunding and paying off any bonded indebtedness theretofore issued by such hospital district; such refunding bonds may be sold and the proceeds thereof applied to the payment of any such outstanding bonds or may be exchanged in whole or in part for not less than a like amount of said outstanding bonds and interest matured thereon, but unpaid; … .

Revisor's Note

Section 8, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, provides that refunding bonds may not bear interest at a rate that, when calculated in accordance with recognized standard bond interest cost tables, exceeds the average annual interest cost of the bonds to be refunded unless the total interest cost on the refunding bonds is less than the total interest cost on the bonds to be refunded.  Section 8 also provides that any premium required to be paid on the bonds to be refunded before the bonds' maturity date is to be used in computing the total interest cost of the refunding bonds.  The revised law omits that provision as impliedly repealed by Section 2(a), Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), which was revised in 1999 as Section 1204.006(a), Government Code.  Section 1204.006(a), Government Code, permits a public agency to issue bonds at a net effective interest rate not to exceed 15 percent.  Section 1204.006(a) applies to district bonds by application of Section 1204.001, Government Code.  The omitted law reads:

Sec. 8.  … provided the average cost per annum on the refunding bonds, computed in accordance with recognized standard bond interest cost tables, shall not exceed the average interest cost per annum so computed, upon the bonds to be discharged out of the proceeds of the refunding bonds, unless the total interest cost on the refunding bonds, computed to their respective maturity dates, is less than the total interest cost so computed on the bonds to be discharged out of such proceeds.  In the foregoing computations, any premium or premiums required to be paid upon the bonds to be refunded as a condition to payment in advance of their stated maturity date shall be taken into account as an addition to the net interest cost to the hospital district of the refunding bonds.

Revisor's Note

(End of Subchapter)

(1)  Section 17, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, provides that district bonds are authorized investments for certain entities.  The revised law omits the provision as unnecessary.  As to several of the entities listed, Section 17 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 17 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. 17.  All bonds issued by the district authorized to be established and created under the provisions of this Act shall be and are declared to be legal and authorized investments for banks, trust companies, building and loan associations, savings and loan associations, insurance companies, fiduciaries, 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 17, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, effectively provides that district bonds may secure deposits of public funds of this state or political subdivisions of this state.  The revised law omits the provisions 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. 17.  … Such bonds 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 such bond shall be lawful and sufficient security for said deposits to the extent of their face value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1040.207-1040.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Revised Law

Sec. 1040.251.  IMPOSITION OF AD VALOREM TAX.  (a)  On final approval of the annual budget, 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 issued or assumed by the district for hospital purposes;

(2)  provide for the operation and maintenance of the hospital or 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 60th Leg., R.S., Ch. 528, Secs. 5 (part), 10 (part).)

Source Law

Sec. 5.  Upon the creation of such hospital district, the board of directors shall have the power and authority and it shall be their duty to levy a tax on all property subject to hospital district taxation for the benefit of the district … a tax … for the purpose of:  (1) paying the interest on and creating a sinking fund for bonds assumed or issued by the hospital district for hospital purposes as herein provided; (2) providing for the operation and maintenance of the hospital or 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. …

… the board of directors shall levy the tax on all taxable property within the district which is subject to taxation and … .

Sec. 10.  … upon final approval of the budget, the board of directors shall levy such tax as may be required and … .

Revisor's Note

(1)  Section 5, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, refers to the creation of the district.  The revised law omits the reference to the district's creation as executed.

(2)  Section 5, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, requires the board to impose taxes at a certain time and in a certain manner.  The revised law omits those provisions because they were 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 imposition and collection of property taxes by a taxing unit, including a hospital district.  The omitted law reads:

Sec. 5.  … [the board of directors shall have the power and authority and it shall be their duty to levy a tax on all property subject to hospital district taxation for the benefit of the district] at the same time taxes are levied for county purposes, using the county values and the county tax rolls, [a tax] … .

Not later than October 1st of each year, [the board of directors shall levy the tax] … .  [The tax so levied shall be collected] … on the county tax values, and in the same manner and under the same conditions as county taxes… .

(3)  Sections 5 and 10, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, require the board to levy the tax and to certify the tax rate to the tax assessor-collector.  The revised law omits those provisions 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. 5.  …  [the board of directors] … shall immediately certify such tax  rate to the tax assessor and collector of Haskell County… .

Sec. 10.  … [the board of directors shall] … certify the tax rate for such year to the county tax assessor and collector as provided in Section 5 hereof, and … .

Revised Law

Sec. 1040.252.  TAX RATE.  The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of all taxable property in the district.  (Acts 60th Leg., R.S., Ch. 528, Sec. 5 (part).)

Source Law

Sec. 5.  … [a tax] of not to exceed seventy-five cents (75¢) on the One Hundred Dollars ($100) valuation of all taxable property within the hospital district … .

Revised Law

Sec. 1040.253.  TAX ASSESSOR-COLLECTOR.  The tax assessor-collector of Haskell County shall assess and collect taxes imposed by the district.  (Acts 60th Leg., R.S., Ch. 528, Secs. 5 (part), 10 (part).)

Source Law

Sec. 5.  … The tax so levied shall be collected on all property subject to hospital district taxation by the assessor and collector of taxes for the county … .

Sec. 10.  … [the county tax assessor and collector as provided in Section 5 hereof, and] it shall be the duty of the said tax assessor and collector to assess and collect such tax.

Revisor's Note

(1)  Section 5, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, 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 (2) to Section 1040.251.  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:

Sec. 5.  … The assessor and collector of taxes shall charge and deduct from payments to the hospital district the dues for assessing and collecting the taxes at a rate of not to exceed one percent (1%) for assessing and one percent (1%) for collecting, each based upon the amount collected. Such fees shall be deposited in the county's general fund, and shall be reported as fees of office of the tax assessor and collector… .

(2)  Section 5, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, 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 (2) to Section 1040.251. 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:

Sec. 5.  …  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 for county taxes… .

(3)  Section 5, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, provides that tax revenue shall be deposited in the district's depository and may be withdrawn only as provided by the act.  The revised law omits the provision regarding the deposit of tax revenue 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 revised law omits the provision regarding withdrawal of tax revenue because the provisions of this chapter regarding the expenditure of district money apply according to their own terms.  The omitted law reads:

Sec. 5.  … The residue of tax collections, after deduction of discounts and fees for assessing and collecting, shall be deposited in the district depository and such funds shall be withdrawn only as provided herein… .

Revisor's Note

(End of Subchapter)

Section 5, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, provides that the board may impose taxes for the entire year in which the district is established.  The revised law omits the provision as executed.  The omitted law reads:

Sec. 5.  … The board of directors shall have the authority to levy the tax aforesaid for the entire year in which the said hospital district is established for the purpose of securing funds to initiate the operation of the hospital district.

Revisor's Note

(End of Chapter)

(1)  Section 6, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, provides for the transfer of certain land, buildings, improvements, equipment, funds, and taxes 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. 6.  Any lands, buildings or equipment that may be owned by Haskell County, and by which medical services or hospital care, including geriatric care, are furnished to the indigent or needy persons residing within said district, shall become the property of the hospital district; and title thereto shall vest in the hospital district; and any funds of the County which are proceeds of any bonds assumed by the hospital district, as hereby provided, shall become the funds of the hospital district; and title thereto shall vest in the hospital district; and there shall vest in the hospital district and become the funds of the hospital district the unspent portions of any funds theretofore set up or appropriated by budget or otherwise by the County for the support and maintenance of the hospital facilities for the year within which the hospital district comes into existence, 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 the County 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 it without prejudice to the rights of third parties, provided that the management and control of the property and affairs of the present hospital facilities shall continue in the board of managers of the present hospital facilities until appointment and organization of the said board of directors of the hospital district, at which time the board of managers of the present hospital facilities shall turn over all records, property and affairs of said hospital system to the board of directors of the hospital district.

Any outstanding bonded indebtedness incurred by Haskell County in the acquisition of such lands, buildings and equipment, or in the construction and equipping of such hospital facilities, together with any other outstanding bonds issued by said County for hospital purposes, and the proceeds of which are in whole or in part still unspent, and which have not been heretofore assumed by the Stamford Hospital District, shall be assumed by the Haskell County Hospital District and become the obligation of said hospital district; and the County shall be by the hospital district relieved of any further liability for the payment thereof, or for providing interest and sinking fund requirements thereon; provided that nothing herein contained shall limit or affect any of the rights of any of the holders of such bonds against the payment of the principal or interest on any of such bonds in accordance with their respective terms.

The Commissioners Court, as soon as the hospital district is created and authorized at the election hereinabove provided for, and there have been appointed and qualified the board of directors hereinabove provided for, 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 of directors to the fact that a depository for the district's funds has been selected and qualified; and which funds shall, in the hands of the hospital district and of its board of directors, be used for all or any of the same purposes as, and for no other purposes than, the purposes for which the County could lawfully have used the same had they remained the property and funds of such county.

(2)  Section 7, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, provides that the agreement between Stamford Hospital District and Haskell County relating to certain debt payments by Stamford Hospital District on behalf of Haskell County is validated.  The revised law omits this provision as executed.  The omitted law reads:

Sec. 7.  That certain agreement by and between the Stamford Hospital District and Haskell County relating to the payment by said Stamford Hospital District of its pro rata share of the hospital indebtedness of Haskell County and the resolutions authorizing the execution of such agreement adopted by the Commissioners Court of Haskell County and the Board of Directors of the Stamford Hospital District be, and the same are in all respects validated.

(3)  Section 19, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, provides that the act is severable.  The revised law omits this 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. 19.  … If any of the provisions 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 provision of this Act, and the Legislature here declares that it would have created the district and enacted the valid provisions of this Act notwithstanding the invalidity of any of the provision or provisions hereof.

(4)  Section 20, Chapter 528, Acts of the 60th Legislature, Regular Session, 1967, provides that public notice of the enactment of the statute was provided in a manner that satisfies the requirements of the Texas Constitution.  The revised law omits this provision as executed.  The omitted law reads:

Sec. 20.  The Legislature finds affirmatively that thirty (30) days' public notice was duly given in accordance with the provisions of Article IX, Section 9, of the Constitution of the State of Texas, of the intention to apply to this Legislature to enact a law providing for the creation, establishment, maintenance and operation of the Haskell County Hospital District.

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.