80C105(3) RMB

 

CHAPTER 1050.  KNOX COUNTY HOSPITAL DISTRICT

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 1050.001.  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 Knox 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. 1050.002.  AUTHORITY FOR OPERATION.  The Knox County Hospital District operates in accordance with Section 9, Article IX, Texas Constitution.  (Acts 60th Leg., R.S., Ch. 241, 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 Knox County Hospital District … .

Revisor's Note

Section 1, Chapter 241, 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. 1050.003.  POLITICAL SUBDIVISION.  The district is a political subdivision of this state.  (Acts 60th Leg., R.S., Ch. 241, Sec. 17 (part).)

Source Law

Sec. 17.  The hospital district authorized to be 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. 1050.004.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of Knox County, Texas. (Acts 60th Leg., R.S., Ch. 241, Sec. 1 (part).)

Source Law

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

Revised Law

Sec. 1050.005.  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. 241, Sec. 18 (part).)

Source Law

Sec. 18.  …  [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 18, Chapter 241, 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. 18.  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. 1050.006.  PUBLIC PURPOSE; TAX EXEMPTION.  All property owned by the district:

(1)  shall be held for public purposes; and

(2)  is exempt from taxation of every character.  (Acts 60th Leg., R.S., Ch. 241, Sec. 17 (part).)

Source Law

Sec. 17.  …  In addition, all property owned by said district shall be held for public purposes and shall be exempt from taxation of every character.

Revisor's Note

(End of Subchapter)

Sections 2 and 3, Chapter 241, 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 those provisions as executed.  The omitted law reads:

Sec. 2. … provided, however, that said hospital district shall not be created unless and until an election is duly held in the district for such purpose, which said election shall be initiated by order of the Commissioners Court upon its own motion or upon receipt by it of a petition of one hundred (100) resident qualified property taxpaying electors.  Said petition may contain an additional request that the Commissioners Court at the same election held for the creation of said district submit an additional proposition authorizing the district to issue bonds for any of the purposes set forth in Section 6 of this Act in the maximum amount, and with the maximum rate of interest (not to exceed 6%) and the maximum maturity date (not to exceed 40 years from their date of issuance) stated in the petition.  If such request is made, the Commissioners Court shall submit such bond proposition.  It is provided, however, that neither the submission, passage nor defeat of any such bond proposition shall affect the authority of the Board of Directors of such district to exercise the power to call bond elections or issue bonds as provided in Section 6 of this Act.

The order calling the election shall specify the time and place or places of holding the same, the form of ballot and the presiding judge for each voting place.  At such election there shall be submitted to the qualified property taxpaying electors, in addition to the bond proposition, if any, requested in any petition submitted pursuant hereto, as permitted above, the proposition of whether or not Knox County Hospital District shall be created with authority to levy annual taxes at a rate not to exceed thirty-five cents (35’) on the One Hundred Dollar ($100) valuation of all taxable property within said district for the purpose of meeting the requirements of the district's bonds, its maintenance and operating expenses, and the requirements of the bonds that were issued by Knox County for hospital purposes which have been assumed by the district, and a majority of the qualified property taxpaying electors of the district voting in said election in favor of the proposition shall be sufficient for its adoption.  The ballots, in addition to any such bond proposition, shall have printed thereon the following:

"FOR the creation of the Knox County Hospital District, and providing for the levy of annual taxes not to exceed thirty-five cents (35’) on the One Hundred Dollar ($100) valuation of all taxable property within such district and providing for the assumption by said district of all bonds heretofore issued by Knox County for Hospital purposes."

"AGAINST the creation of the Knox County Hospital District, and providing for the levy of annual taxes not to exceed thirty-five cents (35’) on the One Hundred Dollar ($100) valuation of all taxable property within such district and providing for the assumption by said district of all bonds heretofore issued by Knox County for Hospital purposes."

Notice of election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in Knox County Hospital District once a week for two (2) consecutive weeks, the first publication to appear at least fourteen (14) days prior to the date established for the election.  If the proposition to create the Knox 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.

Sec. 3.  Within ten (10) days after such election is held the Commissioners Court shall convene and canvass the returns of the election, and if a majority of the qualified property taxpaying electors voting at said election voted in favor of the proposition, they shall so find and declare the hospital district established and created, and if a bond proposition was submitted and likewise favorably voted by a majority of the property taxpaying electors voting at said election, the Commissioners Court shall so declare and said bonds may be issued by the Board of Directors the same as if voted pursuant to an election called by it under Section 6 of this Act.

[Sections 1050.007-1050.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1050.051.  BOARD ELECTION AND APPOINTMENT; TERM.  (a)  The district is governed by a board of seven directors as follows:

(1)  four directors appointed by the Commissioners Court of Knox County to board positions 1 through 4, with one director appointed from each of the four county commissioner precincts as the precincts existed on May 22, 1967; and

(2)  three directors elected from the district at large to board positions 5 through 7.

(b)  Directors serve staggered two-year terms.

(c)  The Commissioners Court of Knox County shall appoint two successor directors on or before the first Saturday in April of each year.  (Acts 60th Leg., R.S., Ch. 241, Sec. 4 (part).)

Source Law

Sec. 4.  If so established and created, said district shall be governed, managed and controlled by a board of directors composed of seven (7) members, … .  The board of directors shall be divided into seven (7) positions, which positions shall be numbered one (1) through seven (7).  Board positions numbered one (1) through four (4) shall for the purposes of this Act be referred to as "appointive positions" on the board of directors, and the persons occupying appointive positions shall be referred to as "appointive directors."  Board positions numbered five (5) through seven (7) shall for the purposes of this Act be referred to as the "elective positions" on the board of directors, and the persons occupying elective positions shall be referred to as "elective directors."

On or prior to the first Saturday in April following the establishment and creation of the District, the Commissioners Court shall appoint one person from each of four (4) Commissioners Court Precincts of Knox County, as the same are defined and described on the effective date of this Act, to the board of directors of the district.  The four (4) persons thus appointed shall occupy the appointive positions on the board and said persons shall by lot determine the numbered appointive positions respectively to be occupied by said persons.  …  The Commissioners Court for Knox County on or prior to the first Saturday in April in each year thereafter shall appoint successor appointive directors to the appointive positions becoming vacant in each year and the succeeding appointive directors shall each serve for a term of two (2) years.  …

…  [On the first Saturday in each year thereafter a regular election for the election of persons to fill the elective positions becoming vacant in each year shall be held and] the succeeding elective directors thus elected shall each be elected to serve for a term of two (2) years.

…

Revisor's Note

(1)  Section 4, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, provides that the district shall be "governed, managed and controlled" by seven directors.  The revised law omits "managed" and "controlled" because, in this context, the terms are included in the meaning of "governed."

(2)  Section 4, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, prescribes the procedures for appointing and electing the initial board and the terms of the initial directors.  The revised law omits those provisions as executed but codifies the establishment of a board consisting of seven directors.  Section 4 also establishes staggered two-year terms for the initial directors that expire in the first or second year after the appointment or election. The revised law codifies the provision specifying staggered terms but omits the provision relating to the terms of the initial directors as executed.

(3)  Section 4, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, prescribes additional details regarding the appointment and election of the initial directors.  The revised law omits those provisions as executed.  The omitted law reads:

Sec. 4.  …  The initial members of the board of directors shall be appointed by the Commissioners Court.  Said initial members shall serve as such directors of the district until the first Saturday in April following the establishment and creation of the district.  …  The initial appointive directors occupying appointive positions numbered one (1) and two (2) shall serve for a period of two (2) years, and the initial appointive directors occupying appointive positions numbered three (3) and four (4) shall serve for a period of one (1) year.  …

On the first Saturday in April following the establishment and creation of the district, the board of directors of the district shall call and hold the first regular election for the purpose of electing three (3) persons to occupy the elective positions on the board of directors.  The persons thus elected as elective directors shall determine by lot the numbered elective positions to be occupied by said persons.  The initial elective directors thus determined to occupy elective positions numbered five (5) and six (6) shall serve for a period of two (2) years, and the elective director thus determined to occupy elective position number seven (7) shall serve for a period of one (1) year.  …

(4)  Section 4, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, provides for four directors appointed from each of the four county commissioner precincts "as the same are defined and described on the effective date of this Act."  The revised law substitutes "as the precincts existed on May 22, 1967," for the quoted language because that is the effective date of the act.

(5)  Section 4, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, 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 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:

Sec. 4.  …  On the first Saturday in each year thereafter a regular election for the election of persons to fill the elective positions becoming vacant in each year shall be held and … .

(6)  Section 4, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, provides that the directors serve until their successors are elected or appointed and qualify.  The revised law omits that provision because it duplicates Section 17, Article XVI, Texas Constitution, which provides that an officer in this state is to continue to perform the officer's official duties until a successor has qualified.  The omitted law reads:

Sec. 4.  …  All members of the board of directors of the district, whether initially named herein or subsequently elected or appointed, shall serve as directors until their respective successors shall be elected or appointed, as required by this Act, and shall qualify.

…

Revised Law

Sec. 1050.052.  NOTICE OF ELECTION.  At least 10 days before the date of an election of directors, notice of the election shall be published one time in a newspaper of general circulation in Knox County.  (Acts 60th Leg., R.S., Ch. 241, Sec. 4 (part).)

Source Law

Sec. 4.  …

Notice of each election to fill elective positions on the board shall be published in a newspaper of general circulation in the county one (1) time at least ten (10) days prior to the date of election.  …

Revisor's Note

Section 4, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, requires notice of a directors' election to be published in "the county."  Throughout this chapter, the revised law substitutes "Knox County" for the quoted language because Knox County is the county in which the district is located.

Revised Law

Sec. 1050.053.  BALLOT PETITION.  A person who wants to have the person's name printed on the ballot as a candidate for elected director must file with the board secretary a petition requesting that action.  The petition must:

(1)  be signed by at least 25 registered district voters; and

(2)  be filed at least 25 days before the date of the election.  (Acts 60th Leg., R.S., Ch. 241, Sec. 4 (part).)

Source Law

Sec. 4.  . . . Any person desiring his name to be printed on the ballot as a candidate for elective director shall file a petition with the secretary of the district asking that such name be printed on the ballot and signed by not less than twenty-five (25) qualified voters of the district. Such petition shall be filed with the secretary at least twenty-five (25) days prior to the date of election.

…

Revisor's Note

Section 4, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, refers to "qualified voters" of the district.  The revised law substitutes "registered voters" for the quoted language because in  the context of eligibility to sign a petition, Section 277.0021, Election Code, provides that "qualified voter" means "registered voter."

Revised Law

Sec. 1050.054.  QUALIFICATIONS FOR OFFICE.  (a)  A person is not qualified for appointment or election as a director unless the person:

(1)  is a resident of the district;

(2)  owns land subject to taxation by the district; and

(3)  is at least 18 years of age at the time of the appointment or election.

(b)  A person may not be appointed as a director for a commissioners precinct unless at the time of appointment the person is a resident of that commissioners precinct.  (Acts 60th Leg., R.S., Ch. 241, Sec. 4 (part).)

Source Law

Sec. 4.  …  No person shall be appointed as a successor appointive director unless at the time of appointment he is a resident of the Commissioners Court Precinct of Knox County in which his predecessor resided at the time of said prior member's appointment, so that on each appointment date each Commissioners Court Precinct of Knox County, as defined on the effective date of this Act, shall have a representative on the board of directors of said district.

…

No person shall be qualified for appointment by the Commissioners Court to the appointive positions on the board of directors unless he is a resident of the proper Commissioners Court Precinct, as aforesaid, and unless he owns land subject to taxation by the district and at the time of his appointment he is over twenty-one (21) years of age; and no person shall be qualified for election or appointment to the elective positions on the board of directors unless he is a resident of the district and unless he owns land subject to taxation therein and at the time of such election or appointment he is over twenty-one (21) years of age.  …

Revisor's Note

Section 4, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, provides that a person must be "over twenty-one (21) years of age" to qualify for appointment or election as a director.  The revised law substitutes "18" for "21" 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 4 was enacted in 1967 and has not been amended.

Revised Law

Sec. 1050.055.  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. 241, Sec. 4 (part).)

Source Law

Sec. 4.  …

Each member of the board of directors … shall execute a good and sufficient bond for One Thousand Dollars ($1,000) 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 4, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, requires each director to take the constitutional oath of office.  The revised law omits this 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.  The omitted law reads:

Sec. 4.  …

[Each member of the board of directors] shall qualify by executing the constitutional oath of office and … .

Revised Law

Sec. 1050.056.  BOARD VACANCY.  (a)  If a vacancy occurs in the office of an elected director, the remaining directors shall appoint a director for the unexpired term.

(b)  If a vacancy occurs in the office of an appointed director, the Commissioners Court of Knox County shall appoint a director for the unexpired term.  (Acts 60th Leg., R.S., Ch. 241, Sec. 4 (part).)

Source Law

Sec. 4.  …  All vacancies in the elective positions on the board of directors shall be filled for the unexpired term by appointment made by the remainder of the board of directors.  All vacancies in the appointive positions on the board of directors shall be filled for the unexpired term by the Commissioners Court of Knox County.

…

Revised Law

Sec. 1050.057.  DIRECTOR RIGHTS, PRIVILEGES, AND DUTIES.  The directors have identical rights, privileges, and duties in all matters concerning the board's business.  (Acts 60th Leg., R.S., Ch. 241, Sec. 4 (part).)

Source Law

Sec. 4.  … [board of directors] … all of whom shall have identical rights, privileges and duties with respect to all matters concerning the business of the board.  …

Revised Law

Sec. 1050.058.  OFFICERS.  The board shall elect from among its members a president and a secretary.  (Acts 60th Leg., R.S., Ch. 241, Sec. 4 (part).)

Source Law

Sec. 4.  …

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

Revised Law

Sec. 1050.059.  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 board.  (Acts 60th Leg., R.S., Ch. 241, Sec. 4 (part).)

Source Law

Sec. 4.  …

All members of the board of directors 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.

Revised Law

Sec. 1050.060.  VOTING REQUIREMENT.  A concurrence of four  directors is sufficient in any matter relating to district business.  (Acts 60th Leg., R.S., Ch. 241, Sec. 4 (part).)

Source Law

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

Revisor's Note

Section 4, Chapter 241, 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. 4.  …  Any four (4) members of the board of directors shall constitute a quorum and … .

Revised Law

Sec. 1050.061.  EMPLOYEES.  The board may employ a general manager, attorneys, bookkeepers, architects, or any other employees considered necessary for the efficient operation of the district.  (Acts 60th Leg., R.S., Ch. 241, Sec. 8 (part).)

Source Law

Sec. 8.  The board of directors of such district … may employ a general manager, attorneys, bookkeepers, architects, and any other employees deemed necessary for the efficient operation of the hospital district.

…

Revised Law

Sec. 1050.062.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION. Except as provided by Section 1050.055, 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. 241, Sec. 8 (part).)

Source Law

Sec. 8.  …

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 8, Chapter 241, 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 1050.055, which is the only exception provided in Chapter 241.

Revised Law

Sec. 1050.063.  SEAL.  The board may adopt a seal for the district. (Acts 60th Leg., R.S., Ch. 241, Sec. 8 (part).)

Source Law

Sec. 8.  The board of directors of such district …  shall have the power to adopt a seal for such district; and … .

[Sections 1050.064-1050.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Revised Law

Sec. 1050.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for providing medical and hospital care for the district's needy and indigent residents.  (Acts 60th Leg., R.S., Ch. 241, Secs. 2 (part), 13 (part).)

Source Law

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

Sec. 13.  . . . such hospital district shall assume 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 13, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, provide that the district "shall assume" full responsibility for providing medical and hospital care for the district's needy residents, and Section 13 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. 1050.102.  RESTRICTION ON COUNTY OR MUNICIPALITY TAXATION AND DEBT.  Knox County or a municipality in Knox County may not impose a tax on property in the district for hospital purposes.  (Acts 60th Leg., R.S., Ch. 241, Sec. 13 (part).)

Source Law

Sec. 13.  Except as herein provided, neither Knox County, nor any city or town within Knox County, shall levy any tax against any property within the hospital district for hospital purposes; and … .

Revisor's Note

(1)  Section 13, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, states that "[e]xcept as herein provided," certain political subdivisions may not levy a tax for hospital purposes.  The revised law omits the quoted language because the act does not provide an exception.  In addition, throughout this chapter, the revised law substitutes "impose" for "levy" because, in context, the terms are synonymous and "impose" is more commonly used.

(2)  Section 13, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, refers to a "city or town."  The revised law substitutes "municipality" for "city or town" to conform to the terminology of the Local Government Code.

Revised Law

Sec. 1050.103.  RULES.  (a)  The board may adopt rules governing the operation of the district, including district facilities.

(b)  On approval of 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. 241, Sec. 8 (part).)

Source Law

Sec. 8.  …

The board of directors is specifically empowered to adopt rules and regulations governing the operation of such 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 8, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, refers to "rules and regulations."  The revised law omits "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

(2)  Section 8, Chapter 241, 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 8, Chapter 241, 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. 1050.104.  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. 241, Sec. 8 (part).)

Source Law

Sec. 8.  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 also shall prescribe all accounting and control procedures, and the method of purchasing necessary supplies, materials and equipment; and … .

Revised Law

Sec. 1050.105.  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 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 60th Leg., R.S., Ch. 241, Sec. 10.)

Source Law

Sec. 10.  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 or character, real, personal or mixed, or any interest therein, including outright ownership of such property in fee simple absolute, within the boundaries of the said district, necessary or convenient to the exercise of the rights, power, 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 No. 2 in Article 3268, Vernon's Texas Civil Statutes, nor 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 10, Chapter 241, 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 10, Chapter 241, 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 10, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, refers to "Paragraph No. 2 in Article 3268, Vernon's Texas Civil Statutes."  That statute was codified in 1983 as Section 21.021(a), Property Code, and the revised law is drafted accordingly.

(4)  Section 10, Chapter 241, 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 proceeding 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. 1050.106.  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. 241, Sec. 15.)

Source Law

Sec. 15.  The 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 direction, limitations, and provisions as may be prescribed in writing by the donor, not inconsistent with proper management and objects of the hospital district.

Revisor's Note

Section 15, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, refers to "donations" and "gifts."  The revised law omits "donations" because "donations" is included in the meaning of "gifts."

Revised Law

Sec. 1050.107.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient who resides in the district 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 the board determines that the patient or those relatives are liable to pay 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 the person's 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 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'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. 241, Sec. 14.)

Source Law

Sec. 14.  Whenever a patient residing in the hospital district 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 they find 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. 1050.108.  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. 241, Sec. 17 (part).)

Source Law

Sec. 17.  The hospital district … as a governmental agency may sue and be sued in any and all courts of this state in the name of such district… .

Revisor's Note

(End of Subchapter)

Section 12, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, provides authority for the "State Board of Health or any state board of charities (or public welfare)" to inspect hospital district facilities and records.  The revised law omits Section 12 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. 12.  The district established and 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 (or public welfare) that may hereafter be created, and the officers and employees of the district 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 1050.109-1050.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1050.151.  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. 241, Sec. 9 (part).)

Source Law

Sec. 9.  …

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 9, Chapter 241, 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 levying and collection of an ad valorem tax.

Revised Law

Sec. 1050.152.  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 Knox 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. 241, Sec. 9 (part).)

Source Law

Sec. 9.  …

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. …

Revised Law

Sec. 1050.153.  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. 241, Sec. 9 (part).)

Source Law

Sec. 9.  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 the 30th day of September of the following year. …

Revised Law

Sec. 1050.154.  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. 241, Sec. 9 (part).)

Source Law

Sec. 9.  … 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 9, Chapter 241, 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. 1050.155.  DEPOSITORY OR TREASURER.  (a)  The board by resolution shall designate a bank in Knox County as the district's depository or treasurer.  A designated bank serves for two years 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. 241, Secs. 5 (part), 11.)

Source Law

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

…

Sec. 11.  Within thirty (30) days after organization and qualification of the board of directors of the hospital district, the said directors shall by resolution designate a bank within the county in which the district is located 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 until a successor has been named.

Revisor's Note

Section 11, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, requires the board to select a depository "[w]ithin thirty (30) days after organization and qualification of the board of directors of the hospital district."  The revised law omits the quoted language as executed.

Revised Law

Sec. 1050.156.  AUTHORITY TO BORROW MONEY; SECURITY.  (a)  The board may borrow money at a rate of interest the board determines is appropriate.

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

(1)  district revenue that is not pledged to pay the district's bonded indebtedness; or

(2)  property acquired with the loan proceeds that is not pledged to pay the district's bonded indebtedness.

(c)  A loan authorized by this section must mature not later than the fifth anniversary of the date the loan is made.  (Acts 60th Leg., R.S., Ch. 241, Sec. 6A.)

Source Law

Sec. 6A.  (a)  The board of directors may borrow money at a rate of interest determined to be appropriate by the board of directors.

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

(1)  the revenues of the district that are not pledged to pay the bonded indebtedness of the district; or

(2)  property acquired with the loan proceeds that is not pledged to pay the bonded indebtedness of the district.

(c)  A loan authorized by this section shall mature not later than the fifth anniversary of the date on which the loan was made.

[Sections 1050.157-1050.200 reserved for expansion]

SUBCHAPTER E. BONDS

Revised Law

Sec. 1050.201.  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 60th Leg., R.S., Ch. 241, Sec. 6 (part).)

Source Law

Sec. 6.  The board of directors, in addition to any bonds initially authorized at the election authorizing the creation of said district, shall have the power and authority to issue and sell, from time to time, as the obligations of such hospital district, and in the name and upon the faith and credit of such 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

(1)  Section 6, Chapter 241, 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 6 are known as "general obligation bonds," the revised law is drafted accordingly.

(2)  Section 6, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, states that the board may issue and sell general obligation bonds "from time to time."  The revised law omits the quoted language because the authority to take an action implies the authority to do so at any time.

Revised Law

Sec. 1050.202.  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 1050.201 as the bonds mature.

(b)  Except as provided by Section 1050.253, the tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed 35 cents on each $100 valuation of all taxable property in the district.  (Acts 60th Leg., R.S., Ch. 241, Sec. 6 (part).)

Source Law

Sec. 6.  . . . provided, that a sufficient tax shall be levied to create an interest and sinking fund to pay the interest and principal as same matures, providing said tax together with any other taxes levied for said district shall not exceed thirty-five cents (35’) on the One Hundred Dollars ($100) valuation in any one (1) year. …

Revisor's Note

(1)  Section 6, Chapter 241, 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.

(2)  Section 6, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, provides that the ad valorem taxes imposed by the district may not exceed 35 cents on each $100 valuation of taxable property in the district.  Because Section 5 of Chapter 241 (revised in this chapter as Section 1050.253) provides a procedure for increasing the ad valorem tax rate of the district, the revised law adds a reference to that section.

Revised Law

Sec. 1050.203.  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 date of the election;

(2)  the location of the polling places;

(3)  the presiding election officers;

(4)  the purpose of the bond issuance;

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

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

(7)  the maximum maturity 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 Knox 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. 241, Sec. 6 (part).)

Source Law

Sec. 6.  …  No bonds shall be issued by such hospital district (except refunding bonds) until authorized by a majority vote of the resident qualified electors who own taxable property within the district and have duly rendered the same for taxation, voting at an election called and held for such purpose.  Such election, except for any bonds to be voted at the election held creating the district, may be called by the board of directors on its own motion, and the order calling said election shall specify the date of the election, 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 Knox 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 6, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, provides that "[n]o bonds … (except refunding bonds)" may be issued without an election.  The revised law omits the exception for refunding bonds because Chapter 1207, Government Code, provides general authority for an issuer, including a hospital district, to issue refunding securities, and Section 1207.003, Government Code, authorizes an issuer to issue refunding bonds without an election.

(2)  Section 6, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, refers to a majority vote of the "qualified electors who own taxable property within the district and have duly rendered the same for taxation."  The revised law omits the reference to "qualified" electors 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.  In addition, the revised law omits the reference to voters "who own taxable property within the district and have duly rendered the same for taxation" 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, Chapter 241, 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 6, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, authorizes the board to call an election for the issuance of bonds "except for any bonds to be voted at the election held creating the district."  The revised law omits the quoted language as executed.

(5)  Section 6, Chapter 241, 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.

(6)  Section 6, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, requires the district to pay the costs of elections other than the costs of the election creating the district.  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 revised law omits the reference to the election creating the district as executed.  The omitted law reads:

Sec. 6.  …  The cost of such election, other than the election creating the district, shall be paid by the hospital district.

…

Revised Law

Sec. 1050.204.  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. 241, Sec. 6 (part).)

Source Law

Sec. 6.  … [the order calling said election shall specify] … the maximum maturity date of such bonds (not to exceed forty (40) years from their date of issuance). …

Revised Law

Sec. 1050.205.  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. 241, Sec. 6 (part).)

Source Law

Sec. 6.  … Such bonds shall be executed in the name of the hospital 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

(1)  Section 6, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, 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 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 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. 6.  … 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 the 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 counties of this state.  Upon the approval of such bonds by the Attorney General of Texas and registration by the Comptroller the same shall be incontestable for any cause. …

(2)  Section 6, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, provides that district bonds may be made optional for redemption before maturity.  The revised law omits this provision because Section 1201.021, Government Code, provides that a public security may be issued as redeemable before maturity at one or more specified times.  Section 1201.021, Government Code, applies to district bonds by application of Section 1201.002, Government Code.  The omitted law reads:

Sec. 6.  …

The bonds of the district may be made optional for redemption prior to their maturity date at the discretion of the board of directors.

…

(3)  Section 6, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, authorizes the district to issue refunding bonds for bonds issued under that section.  The revised law omits this provision for the reason stated in Revisor's Note (1) to Section 1050.203.  Section 6 also provides that refunding bonds issued under Section 6 must bear interest at the same or lower rate than the bonds being refunded unless the refunding will result in a lower total amount of interest paid.  The revised law omits this provision for the reason stated in Revisor's Note (5) to Section 1050.203.  The omitted law reads:

Sec. 6.  …

The district may without an election issue bonds of the district to refund and pay off any validly issued and outstanding bonds heretofore or hereafter issued by the district, and any bonds or other obligations assumed by it hereunder, provided any such refunding bonds shall bear interest at the same rate or at a lesser rate than the bonds being refunded unless it be shown mathematically that a savings will result in the total amount of interest to be paid.

(4)  Section 16, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, 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 16 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 building and loan associations (now called savings and loan associations) are regulated by Sections 63.002 and 64.001, Finance Code.  As to the remaining entities listed, Section 16 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. 16.  All bonds issued by or assumed by the districts 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, savings banks, trust companies, building and loan associations, insurance companies, fiduciaries, trustees, and for the sinking funds of cities, towns, villages, counties, school districts, or other political corporations or subdivisions of the State of Texas; and … .

(5)  Section 16, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, provides that district bonds may secure certain deposits. Although Section 16 does not specifically mention the deposits the bonds are eligible to secure, the only deposits they could secure would be deposits of public funds of this state or political subdivisions of this state.  As such, 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. 16.  … such bonds shall be lawful and sufficient security for deposits to the extent of their face value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1050.206-1050.250 reserved for expansion]

SUBCHAPTER F. TAXES

Revised Law

Sec. 1050.251.  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 or 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 60th Leg., R.S., Ch. 241, Secs. 5 (part), 9 (part).)

Source Law

Sec. 5.  The board of directors of said hospital district shall have the power and authority and it shall be their duty to levy on all property subject to hospital district taxation for the benefit of the district a tax … [of all taxable property] within the hospital district, 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… .

…  The taxes of the district [shall be assessed and collected] on all property subject to taxation, … .

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

Sec. 9.  … 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 241, Acts of the 60th Legislature, Regular Session, 1967, provides that county tax rolls constitute tax rolls of the district until district tax rolls are prepared.  This provision is omitted as executed.  The omitted law reads:

Sec. 5.  …

The Knox County tax rolls shall constitute the tax rolls of the district until tax rolls shall be prepared by or for the district. …

(2)  Section 5, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, states that October 1 is the date by which the board shall impose taxes.  The revised law omits this language 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.  Section 26.05, Tax Code, provides dates by which the board must comply with imposing of property taxes.  The omitted law reads:

Sec. 5.  …

Not later than October 1 of each year, … .

Revised Law

Sec. 1050.252.  TAX RATE.  The board may impose the tax at a rate not to exceed 35 cents on each $100 valuation of taxable property in the district, unless the tax rate is increased as provided by Section 1050.253.  (Acts 60th Leg., R.S., Ch. 241, Sec. 5 (part).)

Source Law

Sec. 5.  [The board … shall … levy] … a tax of not to exceed thirty-five cents (35’) on the One Hundred Dollar ($100) valuation of all taxable property within the hospital district, … subsequent elections may be ordered for the purpose of increasing such tax … .

Revised Law

Sec. 1050.253.  ELECTION TO INCREASE MAXIMUM TAX RATE. (a)  The board may order an election to increase the district's maximum tax rate to a rate not to exceed 75 cents on each $100 valuation of taxable property in the district.

(b)  The maximum tax rate may not be increased unless the increase is approved by a majority of the district voters voting in an election held for that purpose.

(c)  The board may order the election on its own motion.

(d)  The election order must specify:

(1)  the date of the election;

(2)  the location of the polling places;

(3)  the presiding election officers; and

(4)  the purpose of the election.

(e)  Notice of the election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in Knox County once a 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. 241, Sec. 5 (part).)

Source Law

Sec. 5.  … After the creation of the district, subsequent elections may be ordered for the purpose of increasing such tax to an amount not to exceed seventy-five cents (75’) on the One Hundred Dollar ($100) valuation.  No increase may be made in the tax above thirty-five cents (35’) on the One Hundred Dollar ($100) valuation until authorized by a majority of the qualified property taxpaying electors voting at an election called and held for such purpose.  Such election may be called by the board of directors on its own motion, and the order calling said election shall specify the date of the election, the place or places where the election shall be held, the presiding officers thereof, and the purpose of the election.  Notice of election shall be given by publishing a substantial copy of the order calling the election in a newspaper of general circulation in Knox 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 5, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, refers to a majority vote of the "qualified property taxpaying electors" voting at an election. The revised law substitutes a reference to "voters" for the reasons stated in Revisor's Note (2) to Section 1050.203.

(2)  Section 5, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, refers to an election "called and held." The revised law omits the reference to "calling" an election for the reasons stated in Revisor's Note (3) to Section 1050.203.

(3)  Section 5, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, requires the district to pay the costs of an election.  The revised law omits that provision for the reasons stated in Revisor's Note (6) to Section 1050.203. The omitted law reads:

Sec. 5.  … The cost of the election shall be paid by the hospital district.

…

Revised Law

Sec. 1050.254.  TAX ASSESSOR-COLLECTOR.  The tax assessor-collector of Knox County shall assess and collect taxes imposed by the district. (Acts 60th Leg., R.S., Ch. 241, Secs. 5 (part), 9 (part).)

Source Law

Sec. 5.  …

[The taxes of the district] shall be assessed and collected, … by the assessor and collector of taxes for the county… .

Sec. 9.  … [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

(End of Subchapter)

(1)  Section 5, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, states that the board shall appoint a board of equalization and establishes the duties of that board.  The revised law omits the references to a board of equalization and the board's duties 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 omitted law reads:

Sec. 5.  … Prior to the levy of any taxes, the board of directors shall appoint a board of equalization composed of five resident property owners of the district and cause taxes to be assessed, valuations to be equalized, and tax rolls to be prepared. … [Such taxes shall be] … equalized … .

(2)  Sections 5 and 9, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, provide procedures for the imposition of a property tax.  The revised law omits those provisions because they were repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (2) to Section 1050.251. The omitted law reads:

Sec. 5.  … Such taxes shall be assessed, … and collected in the same manner and under the same conditions as county taxes, except as herein provided. …

[Not later than October 1st of each year, the board of directors shall levy the tax on all taxable property within the district which is subject to taxation and] shall immediately certify such tax rate to the tax assessor and collector of Knox County, provided that the taxes initially assessed, equalized and levied may be assessed, equalized and levied at any time and shall be levied for the entire year in which such taxes are levied.

Sec. 9.  … [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 … .

(3)  Section 5, Chapter 241, 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 1050.251.  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 fees for assessing and collecting the tax at the rate of not exceeding one percent (1%) of the amounts collected as may be determined by the board of directors but in no event in excess of Five Thousand Dollars ($5,000) for any one (1) fiscal year.  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. …

(4)  Section 5, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, provides that interest and penalties on district taxes 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 1050.251. Chapter 33, Tax Code, provides for the assessment of penalties and interest on delinquent taxes.  The omitted law reads:

Sec. 5.  … Interest and penalties on taxes paid to the hospital district shall be the same as for county taxes. …

(5)  Section 5, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, provides that tax revenue shall be deposited in the district's depository and 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 Chapter)

(1)  Section 7, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, provides for the transfer of land, buildings, equipment, and money to the district, for the management and control of the hospital system's property and affairs until the district's board of managers is appointed, and for the assumption of debt by the district on creation.  The revised law omits the provisions as executed.  The omitted law reads:

Sec. 7.  Any lands, buildings or equipment that may be owned by Knox 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; and any funds of said county, which are the proceeds of any bonds assumed by the hospital district, as hereinafter 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 funds of the hospital district the unspent portions of any funds theretofore set up or appropriated by budget or otherwise by said 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 said 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 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 managers of such system until the organization of the board of directors of the hospital district, at which time the board of managers 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.

Any outstanding bonded indebtedness incurred by said 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 the county for hospital purposes, and the proceeds of which are in whole or in part, still unspent, shall be assumed by the hospital district and become the obligation of the hospital district; and said county that issued such bonds, 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 said county, as the case may be, in the event of default in the payment of the principal or interest on any of such bonds in accordance with their respective terms.

The Commissioners Court, where the county 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 fact 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 or any of the same purposes as, and for no other purposes than, the purposes for which said county transferring such funds could lawfully have used the same had it remained the property and funds of said county.

(2)  Section 18, Chapter 241, 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. 18.  … 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 19, Chapter 241, Acts of the 60th Legislature, Regular Session, 1967, 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. 19.  Proof of publication of the constitutional notice required in the enactment hereof under the provisions of Section 9 of Article IX and all other applicable provisions 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 is hereby found and declared to be proper and sufficient to satisfy such requirement.