TLC: Special District Local Laws Code Proposed Chapters

80C108(3) JRJ

CHAPTER 1046. JACKSON COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 1046.001. 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 Jackson 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. 1046.002. AUTHORITY FOR OPERATION. The Jackson County Hospital District operates and is administered and financed in accordance with Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties provided by this chapter. (Acts 66th Leg., R.S., Ch. 275, Sec. 1 (part).)

Source Law

Sec. 1. In accordance with the provisions of Article IX, Section 9, of the Texas Constitution, this Act authorizes … the creation, establishment, administration, maintenance, operation, and financing of a hospital district within this state, … . The new district shall be known as the Jackson County Hospital District with the rights, powers, and duties provided in this Act.

Revisor's Note

Section 1, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, authorizes the "creation, establishment, administration, maintenance, operation, and financing" of the Jackson County Hospital 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 "operation."

Revised Law

Sec. 1046.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 66th Leg., R.S., Ch. 275, Sec. 23 (part).)

Source Law

Sec. 23. In carrying out the purposes of this Act, a district created under this Act will be performing an essential public function, and … .

Revised Law

Sec. 1046.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Jackson County. (Acts 66th Leg., R.S., Ch. 275, Sec. 1 (part).)

Source Law

Sec. 1. … the boundaries of which shall be coextensive with those of Jackson County… .

Revised Law

Sec. 1046.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. The support and maintenance of the district may not become a charge against or obligation of this state. (Acts 66th Leg., R.S., Ch. 275, Sec. 22 (part).)

Source Law

Sec. 22. The support and maintenance of a hospital district created under this Act shall never become a charge against or obligation of the State of Texas … .

Revised Law

Sec. 1046.006. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 66th Leg., R.S., Ch. 275, Sec. 22 (part).)

Source Law

Sec. 22. … nor shall any direct appropriation be made by the legislature for the construction, maintenance, or improvement of any of the facilities of the district.

Revised Law

Sec. 1046.007. ELECTION DATE. Section 41.001(a), Election Code, does not apply to an election held under this chapter. (Acts 66th Leg., R.S., Ch. 275, Secs. 3(a) (part), 7(a) (part).)

Source Law

Sec. 3. (a) … Section 9b, Texas Election Code, as amended (Article 2.01b, Vernon's Texas Election Code), does not apply to an election held under this Act… .

Sec. 7. (a) … Section 9b, Texas Election Code, as amended (Article 2.01b, Vernon's Texas Election Code), does not apply to a bond election… .

Revisor's Note

(1) Sections 3(a) and 7(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refer to "Section 9b, Texas Election Code, as amended (Article 2.01b, Vernon's Texas Election Code)." In 1985, Section 9b was codified as Section 41.001(a), Election Code, and the revised law is drafted accordingly. In addition, throughout this chapter, the revised law omits the references to "as amended" because under Section 311.027, Government Code (Code Construction Act), a reference to a statute applies to all reenactments, revisions, or amendments of that statute unless expressly provided otherwise.

(2) Sections 1 and 3(a)-(f), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provide procedures for holding an election on the creation of the district, the imposition of an ad valorem tax, and the dissolution of the Edna Hospital District. Because the creation of the district, the imposition of the tax, and the dissolution of the former district were approved at the election, the revised law omits the relevant law as executed. The omitted law reads:

Sec. 1. [In accordance with the provisions of Article IX, Section 9, of the Texas Constitution, this Act authorizes] the dissolution of the Edna Hospital District and … .

Sec. 3. (a) The district shall not be created nor shall any tax be authorized unless and until the creation and the tax are approved by a majority of the qualified electors of the area of the proposed district voting at an election called and held for that purpose and unless and until the dissolution of the Edna Hospital District is approved by a majority of the qualified electors of the Edna Hospital District voting at that election. An election shall be held on July 28, 1979, by order of the temporary directors of the proposed district. If the propositions to create the district and authorize the tax and to dissolve the Edna Hospital District are not approved at that election, a subsequent election shall be held on those propositions each time a petition requesting an election signed by 100 or more qualified electors residing in the proposed district is filed with the temporary board. Within 10 days after a petition is filed, the temporary directors shall order the election. The temporary directors may choose a date for an election that is not less than 35 or more than 60 days from the date the election is ordered. … The orders calling the election shall specify the date, the place or places of holding the election, the form of ballot, and the presiding judge and alternate judge for each voting place and shall provide for clerks as in county elections. Notice of the election shall be given by the temporary directors by publishing a substantial copy of the election order in a newspaper or newspapers of general circulation in the proposed district once a week for two consecutive weeks, the first publication to appear at least 30 days before the date set for the election.

(b) At the election, the qualified voters shall vote whether or not to approve the creation of the proposed hospital district, to assume the outstanding indebtedness incurred for hospital purposes by the Edna Hospital District, Jackson County, or any city or town in the proposed district, to accept transfer of existing hospital facilities and all assets of the Edna Hospital District, to accept existing hospital facilities and assets related to hospital purposes of Jackson County or any city or town in the proposed district, and to levy annual taxes … . At the same election, the qualified voters of the Edna Hospital District shall vote to dissolve that district, the dissolution conditioned on sufficient votes being cast to create the proposed district. The Edna Hospital District is not dissolved until a majority of the qualified voters in the proposed district voting at an election votes to create the proposed district and a majority of the qualified voters in the Edna Hospital District votes to dissolve the Edna Hospital District. The ballots cast in the Edna Hospital District on the proposition to create the proposed district shall be counted separately from the ballots cast on that proposition in the portion of the county outside the Edna Hospital District.

(c) The ballot used at the election shall be worded so that votes may be cast for or against the following proposition: "The creation of the Jackson County Hospital District, providing for …, providing for the transfer to the district of the outstanding indebtedness, existing hospital facilities, and all assets of the Edna Hospital District, and providing for the transfer of existing hospital facilities and the assets and indebtedness related to hospital purposes of Jackson County and any city or town within the Jackson County Hospital District."

(d) A separate ballot for the dissolution of the Edna Hospital District shall be given qualified voters in that district. It shall be worded so that votes may be cast for or against the following proposition: "The dissolution of the Edna Hospital District if the Jackson County Hospital District is created, providing for the transfer to the Jackson County Hospital District of all the outstanding indebtedness, existing hospital facilities, and all assets of the Edna Hospital District."

(e) If a majority of the qualified voters voting at the election in the proposed district votes against the creation of the Jackson County Hospital District or if a majority of the qualified voters in the Edna Hospital District voting in the election do not vote for dissolution of that district, the Mauritz Memorial Hospital and the Edna Hospital District shall share equally the cost of conducting the election; and other elections may be held on the same propositions.

(f) Within 20 days after the election is held, the temporary directors shall convene and canvass the returns of the election, and if the election results are favorable to the propositions specified in Subsections (c) and (d) of this section, the temporary directors shall so find and declare the Jackson County Hospital District created and the Edna Hospital District dissolved.

[Sections 1046.008-1046.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Revised Law

Sec. 1046.051. BOARD ELECTION; TERM. (a) The board consists of nine directors elected from the district by position as follows:

(1) two directors from each commissioners precinct; and

(2) one director from the district at large.

(b) To be elected, a candidate must receive a majority of the votes cast in the election for that position.

(d) Unless different terms are established under Section 1046.054, directors serve staggered two-year terms as follows:

(1) directors elected to even-numbered positions are elected in even-numbered years; and

(2) directors elected to odd-numbered positions and the director elected at large are elected in odd-numbered years. (Acts 66th Leg., R.S., Ch. 275, Secs. 4(d) (part), (e) (part).)

Source Law

(d) … Successors to the board shall be chosen by the election of two directors from each commissioners precinct and one director elected at large. In even-numbered years, the successors to directors elected from the even-numbered positions are elected. In odd-numbered years, the successors to directors elected from odd-numbered positions and the director elected at large are elected. Successors shall be elected for two-year terms. Candidates for director shall run for office from positions. Candidates for director from a precinct shall run for one of the two positions for that precinct and candidates for the director at large shall run for the at-large position. If no candidate for director from a particular position receives a majority of the votes of the qualified voters voting for that position in the election, [the board shall order a runoff election] … .

(e) … The board shall canvass the returns and declare the results… .

Revisor's Note

(1) Sections 4(a)-(d), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, describe the composition and duties of the initial directors and provide for those directors to continue to serve after the creation of the district. The revised law omits those provisions as executed but retains the concept of a nine-member board. In addition, throughout this chapter, the revised law omits references to "temporary" directors as executed. The omitted law reads:

Sec. 4. (a) On the effective date of this Act, each of the following persons is named as a temporary director to serve as a member of the board of directors of the district:

1. representing the district at large, J. L. Tipton;

2. representing precinct one, Itasca Stafford;

3. representing precinct one, Roland Espinosa;

4. representing precinct two, Jack Willeford;

5. representing precinct two, Dr. Walter Ray Konzen;

6. representing precinct three, W. C. "Bill" Hollingsworth;

7. representing precinct three, Tim Garcia;

8. representing precinct four, Carroll Roome; and

9. representing precinct four, A. W. McBride.

(b) Each temporary director shall take the constitutional oath of office within 15 days after the effective date of this Act. Until the district is created, the only duties of the temporary board are to order elections, canvass the returns, and declare the results as provided in Section 3 of this Act.

(c) Any vacancy in the office of temporary director, whether by reason of failure to qualify or vacancy prior to the confirmation of the district at an election, shall be filled by appointment by majority vote of the remaining directors.

(d) At the time the creation of the district and the dissolution of the Edna Hospital District are approved and the returns of the election officially canvassed, the persons then serving as temporary directors shall become permanent directors of the district to serve until the first Saturday in April of the year following the creation election. …

(2) Section 4(d), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that directors serve two-year terms. Section 4A of that act, which was added in 1997, authorizes the board to establish staggered three-year or four-year terms. Section 4A is codified as Section 1046.054. For the convenience of the reader, the revised law adds a cross-reference to that section.

(3) Section 4(d), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides for board elections to be held on the "first Saturday in April." The revised law omits that provision as impliedly repealed by a 1986 amendment to Section 41.001, Election Code. Chapter 14, Acts of the 69th Legislature, 3rd Called Session, 1986, amended Section 41.001, Election Code, to prescribe certain uniform election dates. Section 37 of that act required a political subdivision that had held its general election of officers on the first Saturday in April to hold that election on a uniform election date in May or to choose a different uniform election date on which to hold the election. The omitted law reads:

(d) … the election on the first Saturday in April, … .

(4) Section 4(d), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides for a runoff election between the two candidates receiving the highest number of votes for director of the district if a candidate does not receive a majority of the votes cast for a position at the election. The revised law omits that provision because Section 2.023, Election Code, which applies to the revised law, governs which candidates for office will participate in a runoff election. The omitted law reads:

(d) … [If no candidate for director from a particular position receives a majority of the votes of the qualified voters voting for that position in the election,] the board shall order a runoff election between the two candidates for the position receiving the highest number of votes at the original election, and … . If either candidate dies or files a written request with the secretary of the board to have his or her name omitted from the ballot at the runoff election, the ballot shall be printed to provide for voting for either of the two candidates who received the highest number of votes at [the election on the first Saturday in April,] without regard to votes cast for the candidate who died or filed the request to be omitted from the ballot… .

(5) Section 4(d), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, establishes the first Saturday in May as the date of any runoff election for director of the district. However, under Section 2.025(a), Election Code, a runoff election must be held not earlier than the 20th or later than the 45th day after the date the final canvass of the main election is completed. Section 2.025(c), Election Code, provides that Section 2.025 supersedes a law outside Subchapter B, Chapter 2, Election Code, to the extent of a conflict. Therefore, that provision is omitted. The omitted law reads:

(d) … the runoff election shall be held on the next first Saturday in May… .

(6) Section 4(e), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that "[t]he board shall canvass the returns" of an election of directors. Throughout this chapter, the revised law omits that requirement because it duplicates Section 67.002, Election Code, which requires the governing body of a political subdivision that orders an election to canvass the returns. Although Section 4(e) does not state that the board orders the election, Section 3.004, Election Code, requires the governing body of a political subdivision that has elective offices to order the general election for those officers.

Revised Law

Sec. 1046.052. NOTICE OF ELECTION. (a) Except as provided by Subsection (b), at least 30 days before the date of an election of directors, the board shall publish notice of the election one time in a newspaper or newspapers that individually or collectively have general circulation in the district.

(b) At least seven days before the date of a runoff election of directors, the board shall publish notice of the election one time in a newspaper or newspapers that individually or collectively have general circulation in the area of the runoff election. (Acts 66th Leg., R.S., Ch. 275, Secs. 4(d) (part), (e) (part).)

Source Law

(d) … The board shall publish notice of the runoff election in a newspaper or newspapers that individually or collectively provide general circulation in the area of the runoff election one time at least seven days before the date of the runoff election. …

(e) Except in the case of runoff elections, the board shall publish notice of each election of directors in a newspaper or newspapers that individually or collectively provide general circulation in the district one time at least 30 days before the date of the election… .

Revised Law

Sec. 1046.053. FORM OF BALLOT AT RUNOFF ELECTION. Of the names printed on the ballot at a runoff election, the name of the candidate who received the higher number of votes at the general election of directors must be printed first on the ballot. (Acts 66th Leg., R.S., Ch. 275, Sec. 4(d) (part).)

Source Law

(d) … Of the names printed on the ballot at the runoff election, the name of the candidate who received the higher number of votes at the election on the first Saturday in April shall be printed first on the ballot.

Revisor's Note

Section 4(d), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to "the election on the first Saturday in April." The revised law substitutes "the general election of directors" for the reason stated in Revisor's Note (3) to Section 1046.051.

Revised Law

Sec. 1046.054. MODIFICATION OF TERM. (a) Notwithstanding Section 1046.051, the board, on its own motion, may order that directors serve staggered three-year or four-year terms. After an initial change under this section from staggered two-year terms, the board may not change the terms again.

(b) If the board orders four-year terms, the directors are to be elected in accordance with Section 285.081, Health and Safety Code.

(1) if the first election that occurs at least 120 days after the date the order is entered is an election in an even-numbered year:

(A) the four directors elected at that election shall draw lots to determine the three directors that serve three-year terms and the director that serves a two-year term;

(B) the at-large director elected at the first odd-numbered year election after the order is entered serves a three-year term; and

(C) the four other directors elected at the first odd-numbered year election after the order is entered shall draw lots to determine which two directors serve three-year terms and which two directors serve one-year terms; and

(2) if the first election that occurs at least 120 days after the date the order is entered is an election in an odd-numbered year:

(A) the at-large director elected at that election serves a three-year term;

(B) the four other directors elected at that election shall draw lots to determine the two directors that serve three-year terms and the two directors that serve two-year terms; and

(C) the four directors elected at the first even-numbered year election after the order is entered shall draw lots to determine which three directors serve three-year terms and which director serves a one-year term. (Acts 66th Leg., R.S., Ch. 275, Sec. 4A.)

Source Law

Sec. 4A. (a) Notwithstanding Section 4 of this Act, the board, on its own motion, may order that the members of the board serve staggered three-year or four-year terms.

(b) If the board orders staggered three-year terms, the members of the board are to be elected as follows:

(1) if the first election that occurs at least 120 days after the date on which an order under Subsection (a) of this section is entered is an election in an even-numbered year:

(A) the four directors elected at that first even-numbered year election shall draw lots to determine the three directors that serve three-year terms and the director that serves a two-year term;

(B) the at-large director elected at the first odd-numbered year election after the order to change the terms shall serve a three-year term; and

(C) the four other directors elected at the first odd-numbered year election after the order to change the terms shall draw lots to determine which two directors serve three-year terms and which two directors serve one-year terms;

(2) if the first election that occurs at least 120 days after the date on which an order under Subsection (a) of this section is entered is an election in an odd-numbered year:

(A) the at-large director elected at that first odd-numbered year election serves a three-year term;

(B) the four other directors elected at that first odd-numbered year election shall draw lots to determine the two directors that serve three-year terms and the two directors that serve two-year terms; and

(C) the four directors elected at the first even-numbered year election after the order to change the terms shall draw lots to determine which three directors serve three-year terms and which director serves a one-year term.

(c) If the board orders four-year terms, the members of the board are to be elected in accordance with Section 285.081, Health and Safety Code.

(d) After an initial change under this section from staggered two-year terms, the board may not change the terms again.

Revised Law

Sec. 1046.055. QUALIFICATIONS FOR OFFICE. (a) A person may not be elected or appointed as a director unless the person is:

(1) a resident of the district; and

(2) a qualified voter.

(b) A director elected or appointed to represent a commissioners precinct must be a resident of that commissioners precinct. Failure of the director to maintain residence in the commissioners precinct is a ground for removal from office in the manner provided by law for removal of county officers.

(1) an administrator for the district or a district hospital;

(2) the attorney for the district; or

(3) a district employee. (Acts 66th Leg., R.S., Ch. 275, Sec. 4(f).)

Source Law

(f) No person shall be elected or appointed as a member of the board unless he or she is a resident of the district and a qualified elector. A director elected or appointed to represent the area of a commissioners precinct must be a resident of that area, and failure of the director to maintain residence there is a ground for removal from office in the manner provided by law for removal of county officers. Neither an administrator, the attorney, nor any employee of the district shall be eligible to serve as a director.

Revisor's Note

(1) Section 4(f), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that a director must be a qualified "elector." Throughout this chapter, the revised law substitutes "voter" for "elector" because the former is the term used in the Election Code.

(2) Section 4(f), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to "an administrator." Throughout this chapter, the revised law adds language as needed to clarify the board's authority to appoint or employ an administrator for the district or for each district hospital.

Revised Law

Sec. 1046.056. BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF OFFICE. (a) As soon as practicable after a director is elected or appointed, the director shall execute a bond for $5,000 that is:

(1) approved by the board;

(2) payable to the district; and

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

(b) The district may pay for a director's bond with district money.

(c) Each director's bond and constitutional oath or affirmation of office shall be filed with the board and retained in the board's records. (Acts 66th Leg., R.S., Ch. 275, Secs. 19(i), (j), (l).)

Source Law

(i) As soon as practicable after a director is elected or appointed, he or she shall execute a bond for $5,000, payable to the district and conditioned on the faithful performance of his or her duties.

(j) The board shall approve all bonds of the directors, including the bonds of the temporary directors. The expense of the bonds may be paid from funds of the district.

(l) Each director shall file the bond and oath with the board to be retained in its records.

Revisor's Note

Section 19(k), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, 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, Section 19(l) 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 oath or the affirmation. The omitted law reads:

(k) Each director shall take the oath of office prescribed by the Texas Constitution for public officers.

Revised Law

Sec. 1046.057. BOARD VACANCY. If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term. (Acts 66th Leg., R.S., Ch. 275, Sec. 4(e) (part).)

Source Law

(e) … A vacancy in office shall be filled for the unexpired term by appointment by the remainder of the board of directors.

Revised Law

Sec. 1046.058. OFFICERS. (a) The board shall elect a president, vice president, and secretary from among its members.

(b) Each officer of the board serves for a term of one year.

(c) The board may require an officer to execute a bond that is payable to the district and conditioned on the faithful performance of the officer's duties. The board may pay for the bond with district money.

(d) The board shall fill a vacancy in a board office for the unexpired term. (Acts 66th Leg., R.S., Ch. 275, Secs. 4(g) (part), 19(d) (part).)

Source Law

[Sec. 4]

(g) The board shall organize by electing from its number a president, a vice-president, and a secretary. Officers who are elected by the board serve in that capacity for a term of one year and a vacancy shall be filled for the unexpired term by the board… .

[Sec. 19]

(d) The board may require a bond of any officer or … payable to the district and conditioned on the faithful performance of his or her duties. The expense of any bond required of an officer or … may be paid from district funds.

Revised Law

Sec. 1046.059. COMPENSATION; EXPENSES. A director serves without compensation but may be reimbursed for travel or other expenses incurred on the district's behalf if:

(1) the director presents a verified statement; and

(2) the board approves the expenses. (Acts 66th Leg., R.S., Ch. 275, Sec. 19(h).)

Source Law

(h) No director may receive compensation for his or her services as director, but on approval by the board a director may be reimbursed for travel or other expenses incurred on behalf of the district on presentation of a verified statement.

Revised Law

Sec. 1046.060. VOTING REQUIREMENT. Except as provided by Sections 1046.119 and 1046.122, a concurrence of five directors is required in any matter relating to district business. (Acts 66th Leg., R.S., Ch. 275, Sec. 4(g) (part).)

Source Law

(g) … [members of the board] … a concurrence of five shall be required in all matters pertaining to the business of the district [except that a concurrence of seven is required to order an election on the sale or closing of a hospital transferred to the district by the county or the Edna Hospital District or to recommend to the legislature legislation to amend this Act].

Revisor's Note

Section 4(g), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that five 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:

(g) … Any five members of the board shall constitute a quorum, and … .

Revised Law

Sec. 1046.061. ADMINISTRATOR FOR EACH DISTRICT HOSPITAL. (a) The board may appoint a qualified administrator for each district hospital.

(b) An administrator serves at the will of the board and is entitled to the compensation determined by the board.

(c) On assuming the duties of an administrator, the administrator shall execute a bond payable to the district in an amount set by the board of not less than $5,000 that:

(1) is conditioned on the administrator performing the administrator's duties; and

(2) contains other conditions the board may require.

(d) The board may pay for the bond with district money. (Acts 66th Leg., R.S., Ch. 275, Sec. 5 (part).)

Source Law

Sec. 5. … The board may appoint a qualified administrator or … for each hospital of the district and … . The administrators, … if any, shall serve at the will of the board and shall receive the compensation determined by the board. An administrator shall, on assuming his or her duties, execute a bond payable to the hospital district in an amount to be set by the board, in no event less than $5,000, conditioned that he or she shall perform the duties required of him or her, and containing such other conditions as the board may require. The expense of the bond may be paid from funds of the district. …

Revised Law

Sec. 1046.062. APPOINTMENT AND REMOVAL OF STAFF AND EMPLOYEES. (a) The board may appoint to the staff any doctors the board considers necessary for the efficient operation of the district and may make temporary appointments as necessary.

(b) The board shall employ or contract with persons the board considers necessary or advisable to conduct district affairs, including a hospital administrator for the district or for each facility and nurses, medical technicians, engineers, architects, attorneys, financial advisors, accountants, fiscal agents, bookkeepers, auditors, and secretaries.

(c) The board shall determine the powers, duties, term of employment, and compensation of all employees and consultants by contract or by resolution or order of the board. The board may terminate the employment of any district employee.

(d) The board may delegate to an administrator the authority to hire and discharge district or hospital employees, including doctors, nurses, and technicians, or to appoint and remove staff doctors under bylaws and rules.

(e) The board may require any employee to execute a bond payable to the district and conditioned on the faithful performance of the employee's duties. The board may pay for the bond with district money. (Acts 66th Leg., R.S., Ch. 275, Secs. 5 (part), 18(c) (part), 19(a) (part), (b), (c), (d) (part).)

Source Law

Sec. 5. … The board may appoint to the staff doctors it may deem necessary for the efficient operation of the district and may provide for temporary appointments to the staff if warranted by circumstances. The board may delegate to an administrator the authority to employ doctors, technicians, nurses, and employees of the district or of his or her hospital… .

[Sec. 18]

(c) [The district through its board … may delegate to the administrator or administrators of the respective hospitals the power] … to employ and discharge employees or appoint and remove staff doctors pursuant to valid bylaws, rules, and regulations.

Sec. 19. (a) The board … shall employ or contract with persons, firms, partnerships, or corporations as deemed necessary or advisable by the board for the conduct of the affairs of the district, including but not limited to nurses, medical technicians, engineers, architects, attorneys, financial advisors, accountants, fiscal agents, a hospital administrator for the district or for each facility, bookkeepers, auditors, and secretaries… .

(b) The board shall determine the powers, authority, duties, term of employment, and compensation of all employees and consultants by contracts or by resolution or order of the board.

(d) The board may require a bond of any … employee payable to the district and conditioned on the faithful performance of his or her duties. The expense of any bond required of an … employee may be paid from district funds.

Revisor's Note

(1) Section 18(c), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to "valid bylaws, rules, and regulations." The revised law omits the reference to "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation. The revised law omits the reference to "valid" because, to have any legal effect, a bylaw or rule must be valid.

(2) Section 19(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to "persons, firms, partnerships, or corporations." The revised law omits the reference to "firms, partnerships, or corporations" because under Section 311.005(2), Government Code (Code Construction Act), "person" is defined to include a corporation or other legal entity.

(3) Section 19(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to "including but not limited to." The revised law omits "but not limited to" because Section 311.005(13), Government Code (Code Construction Act), provides that "includes" and "including" are terms of enlargement and not of limitation and do not create a presumption that components not expressed are excluded.

(4) Section 19(b), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to the "powers [and] authority" of district employees and consultants. The revised law omits the reference to "authority" because "authority" is included in the meaning of "power."

Revised Law

Sec. 1046.063. ATTORNEY; ASSISTANT HOSPITAL ADMINISTRATOR. (a) The board may appoint:

(1) an attorney for the district; and

(2) a qualified assistant administrator for each district hospital.

(b) The attorney for the district and an assistant hospital administrator serve at the will of the board and shall receive the compensation determined by the board. (Acts 66th Leg., R.S., Ch. 275, Sec. 5 (part).)

Source Law

Sec. 5. … [The board may appoint a qualified] … assistant administrator [for each hospital of the district and] an attorney may be appointed for the district. … the attorney, and the assistant administrators, if any, shall serve at the will of the board and shall receive the compensation determined by the board… .

Revised Law

Sec. 1046.064. GENERAL DUTIES OF ADMINISTRATOR. (a) The board may delegate to the administrator for the district or the administrators for each district hospital the power to manage and operate all or any part of the hospital system.

(b) Subject to the limitations prescribed by the board, the administrator for each district hospital shall:

(1) supervise the work and activities of the hospital; and

(2) direct the affairs of the hospital. (Acts 66th Leg., R.S., Ch. 275, Secs. 5 (part), 18(c) (part).)

Source Law

Sec. 5. … The administrator shall supervise all the work and activities of his or her hospital and shall have general direction of the affairs of his or her hospital, subject to the limitations as may be prescribed by the board… .

[Sec. 18]

(c) [The district through its board] … it may delegate to the administrator or the administrators of the respective hospitals the power to manage and operate all or any part of the hospital system and … .

Revised Law

Sec. 1046.065. RETIREMENT BENEFITS. The district may provide retirement benefits for district employees by:

(1) creating and administering a public retirement system for the district;

(2) participating in the Texas County and District Retirement System; or

(3) purchasing annuity contracts from an insurer or annuity company authorized to engage in business in this state. (Acts 66th Leg., R.S., Ch. 275, Sec. 15 (part).)

Source Law

Sec. 15. The district may provide retirement benefits for district employees by electing to become a participating subdivision in the Texas County and District Retirement System, by creating and administering a public retirement system for the district, or by purchasing annuity contracts from an insurance or annuity company qualified and admitted to do business in this state… .

Revisor's Note

Section 15, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that the district may contract with appropriate agencies for unemployment compensation and workers' compensation and specifies the manner in which contributions for unemployment compensation are to be paid. The revised law omits the reference to contracting for unemployment compensation because a political subdivision is defined as an employer for purposes of unemployment compensation by Section 201.026, Labor Code. A political subdivision may pay contributions for unemployment compensation under Chapter 204, Labor Code, or may elect to be a reimbursing employer under Chapter 205, Labor Code. The revised law omits language specifying the manner in which contributions for unemployment compensation are to be paid as superseded by Chapter 204, Labor Code.

The revised law omits the reference to contracting for workers' compensation as superseded by Section 504.011, Labor Code (enacted in 1991 by Chapter 762, Acts of the 72nd Legislature, Regular Session), which requires a political subdivision, including a hospital district, to extend workers' compensation benefits to its employees. The omitted law reads:

Sec. 15. … The district also may contract with the appropriate agencies for programs of unemployment compensation and workers' compensation. If the board elects to pay contributions for unemployment compensation, the board shall pay contributions to the Texas Employment Commission in accordance with the Texas Unemployment Compensation Act, as amended (Article 5221b-1 et seq., Vernon's Texas Civil Statutes).

Revised Law

Sec. 1046.066. SEAL. The board shall adopt a seal for the district. (Acts 66th Leg., R.S., Ch. 275, Sec. 19(g).)

Source Law

(g) The board shall adopt a seal for the district.

Revisor's Note

(End of Subchapter)

(1) Section 4(e), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, states that a person must file a ballot application with the board secretary to be a candidate for director and prescribes a deadline for filing the application. The revised law omits the requirement to file the application with the board secretary because it duplicates Sections 144.003 and 144.004, Election Code. The revised law omits the requirement that the person indicate their desired position because it duplicates Section 141.031(4)(C), Election Code, which requires a candidate to state on the ballot application the office sought by the candidate, including any place number or other distinguishing number. The revised law also omits the filing deadline because it is superseded by Section 144.005, Election Code. Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state. The omitted law reads:

(e) … A candidate for director shall file with the secretary of the board of directors at least 45 days before the election a request to have his or her name printed on the ballot for the position for which he or she desires to be a candidate. …

(2) Section 4B, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides procedures regarding write-in voting for director elections. The revised law omits the provision because it mostly duplicates Section 285.131, Health and Safety Code, which, according to its terms, applies to all hospital districts created under general or special law. The portion of the provision regarding the deadline for filing a declaration of write-in candidacy is superseded by amendments made to Section 285.131, Health and Safety Code, by Section 11, Chapter 925, Acts of the 78th Legislature, Regular Session, 2003, and by Section 34, Chapter 1109, Acts of the 79th Legislature, Regular Session, 2005. In addition, this conclusion conforms to the actual practice of the district, which follows the guidelines established by the secretary of state. The omitted law reads:

Sec. 4B. (a) In a general or special election of directors, a write-in vote may not be counted unless the name written in appears on the list of write-in candidates.

(b) To be entitled to a place on the list of write-in candidates, a candidate must make a declaration of write-in candidacy.

(c) A declaration of write-in candidacy must be filed with the secretary of the board of directors not later than 5 p.m. of the 45th day before election day. However, if a candidate whose name is to appear on the ballot dies or is declared ineligible after the 48th day before election day, a declaration of write-in candidacy for the office sought by the deceased or ineligible candidate may be filed not later than 5 p.m. of the 42nd day before election day.

(d) Subchapter B, Chapter 146, Election Code, applies to write-in voting in an election of directors except to the extent of a conflict with this section.

(3) Section 4B(e), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that Subchapter C, Chapter 2, Election Code, applies to the election of unopposed director candidates. The revised law omits the provision because Section 285.131, Health and Safety Code (requiring write-in candidates to file a declaration of candidacy), makes Subchapter C, Chapter 2, apply to the district. The omitted law reads:

(e) Subchapter C, Chapter 2, Election Code, applies to the election of unopposed candidates for the board of directors.

[Sections 1046.067-1046.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Revised Law

Sec. 1046.101. DISTRICT RESPONSIBILITY. The district has full responsibility for providing medical and hospital care for the district's needy inhabitants. (Acts 66th Leg., R.S., Ch. 275, Sec. 20 (part).)

Source Law

Sec. 20. … The district shall assume full responsibility for providing medical and hospital care for its needy inhabitants… .

Revisor's Note

Section 20, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that the district "shall assume" full responsibility for providing medical and hospital care for the district's needy inhabitants. The revised law substitutes "has" for the quoted language because the duty to assume the responsibility is executed.

Revised Law

Sec. 1046.102. BOARD RESPONSIBILITY. The board shall provide for the administration, maintenance, and operation of a hospital transferred to the district to furnish adequate medical and hospital care in the district and to ensure that the hospital is provided with sufficient money, personnel, and equipment for district residents to have access to quality and competent health facilities. (Acts 66th Leg., R.S., Ch. 275, Sec. 20 (part).)

Source Law

Sec. 20. … The board shall provide for the administration, maintenance, and operation of both hospitals transferred to the district on its creation so as to furnish adequate hospital and medical care within the district and to ensure that each hospital is provided with sufficient funds, personnel, and equipment to the end that residents of the district have access to quality and competent health facilities; and … .

Revisor's Note

Section 20, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that the board shall provide for the operation of both hospitals transferred to the district "on its creation." The revised law omits the quoted language as executed. In addition, the revised law omits the reference to "both" hospitals transferred to the district for the reason stated in Revisor's Note (2) to Section 1046.105.

Revised Law

Sec. 1046.103. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision other than the district may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care in the district. (Acts 66th Leg., R.S., Ch. 275, Sec. 20 (part).)

Source Law

Sec. 20. … no other municipality or political subdivision may levy taxes or issue bonds or other obligations for hospital purposes or for providing medical care within the boundaries of the district. …

Revisor's Note

Section 20, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that a "municipality or political subdivision" other than the district may not "levy" taxes or issue bonds or other obligations for hospital purposes. Throughout this chapter, the revised law omits "municipality" because it is included in the meaning of "political subdivision." In addition, throughout this chapter, the revised law substitutes "impose" for "levy" because, in this context, the terms are synonymous and the former is more commonly used.

Revised Law

Sec. 1046.104. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall:

(1) manage and control all district affairs; and

(2) manage, control, and administer the hospital system and the district's money and resources. (Acts 66th Leg., R.S., Ch. 275, Secs. 5 (part), 19(a) (part).)

Source Law

Sec. 5. The board shall manage, control, and administer the hospital system and all funds and resources of the district, but … .

Sec. 19. (a) The board shall have control over and management of all of the affairs of the district and the existing hospitals located therein and … .

Revised Law

Sec. 1046.105. HOSPITAL SYSTEM. (a) The district shall provide for the establishment of a hospital system by:

(1) purchasing, constructing, acquiring, repairing, or renovating buildings and equipment;

(2) equipping for hospital and medical care purposes; and

(3) administering the system for hospital purposes.

(b) The hospital system may include:

(1) domiciliary care and treatment of the sick, injured, or geriatric;

(2) outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses;

(6) domiciliaries and training centers;

(7) blood banks;

(8) community health centers;

(9) research centers or laboratories; and

(10) any other facilities the board considers necessary for hospital and medical care. (Acts 66th Leg., R.S., Ch. 275, Secs. 2, 18(a) (part), 20 (part).)

Source Law

Sec. 2. The district shall provide for the establishment of a hospital system by the purchase, construction, acquisition, repair, or renovation of buildings and improvements, and equipping for hospital and medical care purposes, and the administration of the system for hospital purposes.

Sec. 18. (a) … The hospital system may include domiciliary hospital care of the sick, wounded, and injured, outpatient clinics, dispensaries, geriatric domiciliary care, convalescent home facilities, necessary nurses, domiciliaries and training centers, blood banks, community health centers, and research centers or laboratories and any other facilities deemed necessary for hospital and medical care by the board.

Sec. 20. … [the district] … shall establish a hospital system as provided by Section 2 of this Act… .

Revisor's Note

(1) Section 2, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to the care of the "sick, wounded, and injured." The revised law omits the reference to "wounded" because "wounded" is included in the meaning of "injured."

(2) Section 18(b), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to the Mauritz Memorial Hospital, transferred to the district by Jackson County. The revised law omits that provision because the hospital closed. The omitted law reads:

(b) The hospital transferred to the district by Jackson County shall be known as the "Mauritz Memorial Hospital."

Revised Law

Sec. 1046.106. RULES. (a) The board may adopt rules governing the operation of the hospital, the hospital system, and the district's staff and employees.

(b) The board shall adopt reasonable and necessary rules and bylaws to govern:

(1) the board's proceedings and activities; and

(2) the hospitals or the hospital or medical system. (Acts 66th Leg., R.S., Ch. 275, Secs. 5 (part), 19(e).)

Source Law

Sec. 5. … The district through its board … may promulgate rules governing the operation of the hospital, the hospital system, its staff, and its employees. …

[Sec. 19]

(e) The board shall adopt reasonable and necessary rules and bylaws to govern the proceedings and activities of the board and the hospitals or the hospital or medical system.

Revisor's Note

Section 5, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that the board may "promulgate rules" to govern the district. The revised law substitutes "adopt" for "promulgate" because the terms are synonymous and the former is more commonly used.

Revised Law

Sec. 1046.107. PURCHASING AND ACCOUNTING PROCEDURES. The board may prescribe:

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

(2) all accounting and control procedures. (Acts 66th Leg., R.S., Ch. 275, Sec. 9(b) (part).)

Source Law

(b) The board may prescribe the method and manner of making purchases and expenditures by and for the hospital district and may prescribe all accounting and control procedures. …

Revised Law

Sec. 1046.108. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system.

(b) The board may purchase all necessary materials, supplies, equipment, and vehicles.

(1) acquire equipment for use in the district's hospital system; and

(2) mortgage or pledge the property as security for the payment of the purchase price.

(d) Except as provided by Section 1046.119, the district may sell or otherwise dispose of any property, including equipment, on terms the board finds are in the best interest of the district's inhabitants. (Acts 66th Leg., R.S., Ch. 275, Secs. 9(a) (part), (b) (part), 18(a) (part), 19(f).)

Source Law

Sec. 9. (a) The district may sell or otherwise dispose of any real or personal property or equipment of any nature on terms and conditions found by the board to be in the best interests of its inhabitants, except that … .

(b) … The district may acquire equipment for use in its hospital system and mortgage or pledge the property acquired as security for the payment of the purchase price. …

Sec. 18. (a) Subject to other provisions of this Act, the board is given complete discretion as to the types, number, and locations of buildings required to establish and maintain an adequate hospital system. …

[Sec. 19]

(f) The board may purchase all materials, supplies, equipment, and vehicles needed by the district.

Revisor's Note

(1) Section 9(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to "any real or personal property." The revised law omits the reference to "real or personal" property because under Section 311.005, Government Code (Code Construction Act), "property" means "real and personal property."

(2) Section 9(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to "terms and conditions." Throughout this chapter, the revised law omits the reference to "conditions" in this context because "conditions" is included in the meaning of "terms."

(3) Section 18(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, requires the board to determine the buildings required to "establish and maintain" an adequate hospital system. The revised law omits the reference to establishing the hospital system as executed.

Revised Law

Sec. 1046.109. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property located in district territory if the interest is necessary or convenient for the district to exercise a power, right, or privilege conferred by this chapter.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, except the district is not required to deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code.

(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 66th Leg., R.S., Ch. 275, Sec. 13(a).)

Source Law

Sec. 13. (a) The district shall have the right and power of eminent domain for the purpose of acquiring by condemnation any and all property of any kind and character in fee simple or any lesser interest in property within the boundaries of the district necessary or convenient to the powers, rights, and privileges conferred by this Act, in the manner provided by the general law with respect to condemnation by counties. The district shall not be required to make deposits in the registry of the trial court of the sum required by Paragraph 2, Article 3268, Revised Civil Statutes of Texas, 1925, as amended, or to make bond as provided in that law. In condemnation proceedings being prosecuted by the district, the district shall not be required to pay in advance or give bond or other security for costs in the trial court or to give any bond otherwise required for the issuance of a temporary restraining order or a temporary injunction or to give bond for costs or for supersedeas on any appeal or writ of error.

Revisor's Note

(1) Section 13(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that the district has the "right and power of eminent domain for the purpose of acquiring [property] by condemnation." The revised law substitutes for the quoted language "may exercise the power of eminent domain to acquire [property]" because the phrases have the same meaning and the latter phrase is consistent with modern usage in laws relating to eminent domain.

(2) Section 13(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that the district must exercise the power of eminent domain in the manner provided by "the general law with respect to condemnation by counties." The revised law substitutes for the quoted language a reference to Chapter 21, Property Code, because that is the general law governing eminent domain for governmental entities, including counties.

(3) Section 13(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to "Paragraph 2, Article 3268, Revised Civil Statutes of Texas, 1925, as amended." That statute was codified in 1983 as Section 21.021(a), Property Code. The revised law is drafted accordingly.

Revised Law

Sec. 1046.110. COST OF RELOCATING OR ALTERING PROPERTY. In exercising the power of eminent domain, if the board requires relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of any railroad, electric transmission, telegraph or telephone line, conduit, pole, or facility, or pipeline, the district must bear the actual cost of relocating, raising, lowering, rerouting, changing the grade, or altering the construction to provide comparable replacement without enhancement of facilities, after deducting the net salvage value derived from the old facility. (Acts 66th Leg., R.S., Ch. 275, Sec. 13(b).)

Source Law

(b) If the board requires the relocation, raising, lowering, rerouting, or change in grade or alteration of the construction of any railroad, electric transmission, telegraph or telephone lines, conduits, poles, or facilities, or pipelines in the exercise of the power of eminent domain, all of the relocation, raising, lowering, rerouting, or change in grade or alteration of construction due to the exercise of the power of eminent domain shall be the sole expense of the board. The term "sole expense" means the actual cost of relocation, raising, lowering, rerouting, or change in grade or alteration of construction to provide comparable replacement without enhancement of facilities, after deducting the net salvage value derived from the old facility.

Revised Law

Sec. 1046.111. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are consistent with the proper management and objectives of the district. (Acts 66th Leg., R.S., Ch. 275, Sec. 17.)

Source Law

Sec. 17. The board may accept on behalf of the district donations, gifts, and endowments to be held in trust for such purposes and under such directions, limitations, and provisions as may be prescribed in writing by the donor consistent with proper management and object of the hospital district.

Revisor's Note

Section 17, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, 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. 1046.112. CONSTRUCTION CONTRACTS. A construction contract that involves the expenditure of more than $10,000 may be made only after advertising in the manner provided by Subchapter B, Chapter 271, Local Government Code. (Acts 66th Leg., R.S., Ch. 275, Sec. 9(b) (part).)

Source Law

(b) … Contracts for construction involving the expenditure of more than $10,000 may be made only after advertising in the manner provided by Subchapter B, Chapter 271, Local Government Code… .

Revisor's Note

Section 9(b), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that Chapter 2253, Government Code, applies to the district's construction contracts in relation to performance and payment bonds. The revised law omits that reference because Chapter 2253, Government Code, applies to hospital districts on its own terms. The omitted law reads:

(b) … The provisions of Chapter 2253, Government Code, relating to performance and payment bonds shall apply to construction contracts let by the district… .

Revised Law

Sec. 1046.113. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to a district hospital or the hospital system. (Acts 66th Leg., R.S., Ch. 275, Sec. 18(c) (part).)

Source Law

(c) The district through its board may enter into an operating or management contract with any person regarding all or any of its hospitals or hospital system, and … .

Revised Law

Sec. 1046.114. CONTRACT IN NAME OF DISTRICT. The district shall contract in the name of the district. (Acts 66th Leg., R.S., Ch. 275, Sec. 19(a) (part).)

Source Law

Sec. 19. (a) … The district shall contract in the name of the district.

Revised Law

Sec. 1046.115. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT. (a) The board may contract with a county or municipality located outside the district's boundaries to reimburse the district for the care and treatment of a sick or injured person of that county or municipality.

(b) The board may contract with this state or a federal agency for reimbursement for the treatment of a sick or injured person. (Acts 66th Leg., R.S., Ch. 275, Sec. 5 (part).)

Source Law

Sec. 5. … [The district through its board] … may contract with any county or incorporated municipality located outside its boundaries for reimbursement for the care and treatment of the sick, deceased, or injured persons of that county or municipality. The district may also contract with the state or agencies of the federal government for the reimbursement for the treatment of sick, diseased, or injured persons… .

Revisor's Note

(1) Section 5, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to an "incorporated" municipality. The revised law omits the reference to "incorporated" because under the Local Government Code all municipalities must be incorporated.

(2) Section 5, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to the treatment of a "sick, diseased, or injured person." The revised law omits the reference to "diseased" because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1046.116. PROVISION OF SERVICES OUTSIDE DISTRICT. The district may provide health care services outside the district's boundaries provided that the services serve the purposes of the district. (Acts 66th Leg., R.S., Ch. 275, Sec. 5 (part).)

Source Law

Sec. 5. … The district may provide health care services outside the geographic boundaries of the district provided that the services serve the purposes of the district.

Revised Law

Sec. 1046.117. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR INVESTIGATORY OR OTHER SERVICES. The board may contract with a political subdivision or governmental agency for the district to provide investigatory or other services as to facilities for the medical care, hospital, or welfare needs of district inhabitants. (Acts 66th Leg., R.S., Ch. 275, Sec. 5 (part).)

Source Law

Sec. 5. … The board may contract with other political subdivisions or governmental agencies whereby the district will provide investigatory or other services as to facilities for the medical care, hospital, or welfare needs of the inhabitants of the district and … .

Revised Law

Sec. 1046.118. LEASES. (a) The board may lease all or part of the facilities comprising the hospitals or hospital system on terms the board considers to be in the district's best interest.

(b) When leasing a facility, the board may delegate as it considers appropriate the board's power to manage, control, and administer the leased facilities to furnish hospital and medical care.

(c) For each leased facility, the lease must require the lessee to charge rates for services rendered or goods provided at the leased premises that, together with other sources of the lessee's revenue, produce an amount sufficient to enable the lessee to pay the expenses of operating and maintaining the leased premises required of the lessee under the lease. The lease must also require the lessee to pay lease rentals to the district that will be sufficient when taken with any other sources of the district's estimated revenue that are pledged for the same purposes to:

(1) pay the interest on any revenue or special obligation bonds that are payable wholly or partly from the lease rentals;

(2) create and maintain a sinking fund to pay the principal of and premium, if any, on the bonds as they become due;

(3) create and maintain a bond reserve fund and any other fund provided for in the bond order, resolution, or trust indenture authorizing the issuance of the bonds; and

(4) pay all other charges, fees, costs, and expenses the lessee is required to pay under the resolution or indenture.

(d) The lease, management agreement, bond resolution, or trust indenture may prescribe systems, methods, routines, procedures, and policies for the operation of the facilities owned by the district.

(e) A lease of a district hospital must require the lessee to operate the hospital in a manner that complies with the requirements of this chapter that would apply to the board if the board were operating the hospital. (Acts 66th Leg., R.S., Ch. 275, Sec. 18(d) (part).)

Source Law

(d) The board may lease all or part of the facilities comprising the hospitals and/or medical system on terms and conditions it considers to be in the district's best interest. In connection with the lease, the board may delegate as it deems appropriate any of its powers to manage, control, and administer the leased facilities to furnish hospital and medical care… . If all or part of the district's facilities are leased, the lease shall require that the lessee charge rates for services rendered or goods provided at the leased premises that, together with other sources of the lessee's revenues, will produce revenues sufficient to enable the lessee to pay the expenses of operation and maintenance of the leased premises required of the lessee under the lease. The lease shall also require the lessee to pay lease rentals to the district that will be sufficient when taken with any other sources of the district's estimated revenues which are pledged for the same purposes to pay the interest on any revenue or special obligation bonds that are payable in whole or part from the lease rentals, to create and maintain a sinking fund to pay the principal of and premium, if any, on the bonds as they become due, to create and maintain a bond reserve fund and any other fund provided for in the bond order, resolution, or trust indenture authorizing the issuance of the bonds, and to pay all other charges, fees, costs, and expenses required to be paid by the lessee in accordance with the resolution or indenture. The lease, management agreement, bond resolution, or trust indenture may prescribe systems, methods, routines, procedures, and policies under which the facilities owned by the district shall be operated. A lease of a district hospital shall require the lessee to operate the hospital in a manner that complies with the requirements in this Act that would be applicable to the board if the board were operating the hospital.

Revisor's Note

Section 18(d), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that the district is subject to applicable laws and rules adopted by the "Texas Department of Health" and the "Texas Health Facilities Commission" and to inspection by those agencies. The revised law omits that provision because any applicable laws and rules apply on their own terms. In addition, various state laws, including Chapters 222 and 241, Health and Safety Code, provide the necessary regulatory and inspection authority to appropriate state agencies. The omitted law reads:

(d) … The provision of hospital and medical care at any leased facilities is subject to all applicable laws and all rules of the Texas Department of Health, the Texas Health Facilities Commission, or any other state or federal agency having jurisdiction. The facilities are subject to inspection by any authorized representative of any of those agencies. …

Revised Law

Sec. 1046.119. AUTHORITY TO SELL OR CLOSE CERTAIN DISTRICT HOSPITALS. (a) The board may not sell or close a hospital transferred to the district by the Edna Hospital District unless the sale or closing is approved by a two-thirds majority vote of the district voters voting at an election held for that purpose. A concurrence of seven directors is required to call the election.

(b) The board may not call another election before the first anniversary of the date of a previous election held under this section. (Acts 66th Leg., R.S., Ch. 275, Secs. 4(g) (part), 9(a) (part).)

Source Law

[Sec. 4]

(g) … [members of the board … a concurrence of five shall be required in all matters pertaining to the business of the district] except that a concurrence of seven is required to order an election on the sale or closing of a hospital transferred to the district by the county or the Edna Hospital District or … .

Sec. 9. (a) … the board may not sell or close a hospital transferred to the district by Jackson County or the Edna Hospital District unless the sale or closing of the hospital is approved by a two-thirds majority of the qualified electors of the district voting at an election called and held for that purpose. The board may not call an election on the question of the sale or closing of one of those hospitals without the concurrence of seven directors and may not call an election for that purpose within 12 months of a preceding election for that purpose.

Revisor's Note

(1) Section 9(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to a two-thirds majority of the "qualified electors" of the district. The revised law omits "qualified" as unnecessary in this context because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "qualified" voters who are residents of the territory covered by the election to vote in an election.

(2) Section 9(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to an election "called and held." 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.

(3) Section 9(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to the "hospital transferred to the district by Jackson County." The revised law omits the quoted language for the reason stated in Revisor's Note (2) to Section 1046.105.

Revised Law

Sec. 1046.120. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a patient who resides in the district is admitted to a district facility, the administrator for the hospital to which the patient is admitted may have an inquiry made into the circumstances of:

(1) the patient; and

(2) the patient's relatives who are legally liable for the patient's support.

(b) If the administrator determines that the patient or those relatives cannot pay all or part of the costs of the care and treatment in the hospital, the amount of the costs that cannot be paid becomes a charge against the district.

(c) If the administrator determines that the patient or those relatives can pay for all or part of the costs of the patient's care and treatment, the patient or those relatives shall be ordered to pay the district a specified amount each week for the patient's care and support. The amount ordered must be proportionate to the person's financial ability.

(d) The administrator may collect the amount from the patient's estate, or from any relative who is legally liable for the patient's support, in the manner provided by law for the collection of expenses of the last illness of a deceased person.

(e) If there is a dispute as to the ability to pay, or doubt in the mind of the administrator, the board shall hold a hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue a final order.

(f) A final order of the board may be appealed to the district court. The substantial evidence rule applies to the appeal. (Acts 66th Leg., R.S., Ch. 275, Sec. 16.)

Source Law

Sec. 16. Whenever a patient residing within the district is admitted to the facilities of the district, the administrator for the hospital to which the patient is admitted may have an inquiry made as to his or her circumstances and those of the relatives of the patient legally liable for his or her support. If the administrator finds that the patient or his or her relatives are able to pay for his or her care and treatment in whole or in part, an order shall be made directing the patient or his or her relatives to pay to the hospital district for the care and support of the patient a specified sum per week in proportion to financial ability. The administrator may collect those sums from the estate of the patient or his or her relatives legally liable for support in the manner provided by law for collection of expenses in the last illness of a deceased person. If the administrator finds that the patient or his or her relatives are not able to pay either in whole or in part for care and treatment in the hospital, they shall become a charge on the hospital district as to the amount of the inability to pay. Should there be a dispute as to the ability to pay or doubt in the mind of the administrator, the board shall hear and resolve the dispute and issue its final order after calling witnesses. Appeals from a final order of the board shall lie in the district court. The substantial evidence rule shall apply.

Revised Law

Sec. 1046.121. AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued. (Acts 66th Leg., R.S., Ch. 275, Sec. 5 (part).)

Source Law

Sec. 5. … [The district through its board] may sue and be sued and … .

Revised Law

Sec. 1046.122. RECOMMENDATION OF LEGISLATION; NOTICE. (a) The board may not recommend to the legislature legislation to amend this chapter unless the recommendation is approved by a concurrence of seven directors.

(b) The board shall give notice of the date, hour, place, and subject of a meeting at which the recommendation of legislation will be discussed in accordance with the open meetings law, Chapter 551, Government Code, except that the board shall furnish to the county clerk the notice required by Section 551.054, Government Code, at least 30 days before the date of the meeting.

(c) The notice must be published in a newspaper of general circulation in the district once a week for four weeks. The first publication must occur at least 30 days before the date of the meeting. (Acts 66th Leg., R.S., Ch. 275, Secs. 4(g) (part), 21.)

Source Law

[Sec. 4]

(g) … [members of the board … a concurrence of five shall be required in all matters pertaining to the business of the district] except that a concurrence of seven is required … to recommend to the legislature legislation to amend this Act.

Sec. 21. (a) The board may not recommend to the legislature legislation to amend this Act unless recommendation of that legislation is approved by seven directors.

(b) The board shall give notice of the date, hour, place, and subject of a meeting at which recommendation of legislation will be discussed. Notice of the meeting shall comply with Chapter 271, Acts of the 60th Legislature, Regular Session, 1967, as amended (Article 6252-17, Vernon's Texas Civil Statutes), but the board shall furnish to the county clerk the notice required by Subsection (g) of Section 3A of that Act at least 30 days before the date of the meeting. The notice shall be published in a newspaper of general circulation in the district once a week for four weeks, the first publication to appear at least 30 days before the date of the meeting.

Revisor's Note

Section 21(b), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to "Chapter 271, Acts of the 60th Legislature, Regular Session, 1967, as amended (Article 6252-17, Vernon's Texas Civil Statutes)," and to "Subsection (g) of Section 3A of that Act." Chapter 271, Acts of the 60th Legislature, Regular Session, 1967 (Article 6252-17, Vernon's Texas Civil Statutes), was codified in 1993 as the open meetings law, Chapter 551, Government Code. Subsection (g) of Section 3A of that act was codified as Section 551.054 of that law. The revised law is drafted accordingly.

Revisor's Note

(End of Subchapter)

Section 9(c), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides for an allocation of money to the hospitals of the district for initial repairs and improvements during the three years following creation of the district. Because the three years following the creation of the hospital district have lapsed, the revised law omits this provision as executed. The omitted law reads:

(c) Subject to Chapter 104, Health and Safety Code, after providing for the interest and sinking funds requirement of the bonded indebtedness created by the Edna Hospital District and assumed by the Jackson County Hospital District and further providing for any tax revenue that may be required to support operations expense, together with annual maintenance requirements for each facility, the board shall allocate to the hospital transferred to the district by Jackson County an amount not to exceed the next $150,000 of tax income available for repairs and improvements required to maintain operations during each of the three years following creation of the district. A similar additional allocation may be made for the hospital located in Edna in the event the board determines that need therefor exists.

[Sections 1046.123-1046.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1046.151. BUDGET. (a) Each administrator shall prepare an annual budget for each hospital for which that person is the administrator. The board shall combine these budgets into a single budget for the district.

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

(1) the outstanding obligations of the district;

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

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

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

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

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

(7) the estimated tax rate required. (Acts 66th Leg., R.S., Ch. 275, Sec. 6 (part).)

Source Law

Sec. 6. … Each administrator shall prepare annually a separate budget for the hospital for which he or she is administrator, and the board shall combine those budgets into a single budget for the district. The budget shall also contain a complete financial statement of the district showing all outstanding obligations of the district, the cash on hand to the credit of each fund of the district, the funds received from all sources during the previous year, the funds available from all sources during the ensuing year, the balances expected at the end of the year in which the budget is being prepared, estimated revenues and balances available to cover the proposed budget, and the estimated tax rate that will be required… .

Revised Law

Sec. 1046.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The board shall hold a public hearing on the proposed annual budget.

(b) Notice of the hearing must be published in a newspaper of general circulation in the district one time at least 10 days before the date of the hearing.

(d) At the conclusion of the hearing, the board shall adopt a budget by acting on the budget proposed by the administrators. The board may make any changes in the proposed budget that the board judges to be in the interests of the taxpayers and that the law warrants. (Acts 66th Leg., R.S., Ch. 275, Sec. 6 (part).)

Source Law

Sec. 6. … A public hearing on the annual budget shall be held by the board after notice of a hearing has been published in a newspaper with general circulation in the district one time at least 10 days before the date set for the hearing. Any person who is residing in or a taxpayer of the district is entitled to be present and participate at the hearing. At the conclusion of the hearing, the budget as proposed by the administrators shall be acted on by the board. The board shall have authority to make changes in the budget that in its judgment the law warrants and the interest of the taxpayers demands. … the annual budget and … shall be approved by the board… .

Revised Law

Sec. 1046.153. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. (Acts 66th Leg., R.S., Ch. 275, Sec. 6 (part).)

Source Law

Sec. 6. … The annual budget may be amended from time to time as the circumstances may require, but [the annual budget and] all amendments to it shall be approved by the board… .

Revisor's Note

Section 6, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, states that the board may amend the budget "from time to time." The revised law omits the quoted language because the authority to amend the budget implies the authority to do so at any time.

Revised Law

Sec. 1046.154. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the budget or an amendment to the budget. (Acts 66th Leg., R.S., Ch. 275, Sec. 6 (part).)

Source Law

Sec. 6. … No expenditure may be made for any expense not included in the annual budget or an amendment to it… .

Revised Law

Sec. 1046.155. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) during a period that revenue bonds of the district are outstanding; or

(2) more than once in a 24-month period. (Acts 66th Leg., R.S., Ch. 275, Sec. 6 (part).)

Source Law

Sec. 6. The district shall be operated on the basis of a fiscal year established by the board, provided the fiscal year may not be changed during the time revenue bonds of the district are outstanding or more than once in any 24-month period… .

Revised Law

Sec. 1046.156. ANNUAL AUDIT. The board annually shall have an audit made of the district's financial condition. (Acts 66th Leg., R.S., Ch. 275, Sec. 6 (part).)

Source Law

Sec. 6. … The board shall have an annual audit made of the financial condition of the district, … .

Revised Law

Sec. 1046.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT RECORDS. The annual audit and other district records shall be open to inspection at the district's principal office. (Acts 66th Leg., R.S., Ch. 275, Sec. 6 (part).)

Source Law

Sec. 6. … [The board shall have an annual audit made of the financial condition of the district,] which together with other records of the district shall be open to inspection at the principal office of the district. …

Revised Law

Sec. 1046.158. FINANCIAL REPORT. As soon as practicable after the close of each fiscal year, the administrators shall prepare for the board:

(1) a complete sworn statement of all district money; and

(2) a complete account of the disbursements of that money. (Acts 66th Leg., R.S., Ch. 275, Sec. 6 (part).)

Source Law

Sec. 6. … As soon as practicable after the close of each fiscal year, the administrators shall prepare for the board a full sworn statement of all money belonging to the district and a full account of the disbursements of same.

Revised Law

Sec. 1046.159. DEPOSITORY. (a) After advertising in the manner provided by Chapter 252 and Subchapter C, Chapter 262, Local Government Code, the board shall choose by competitive bidding one or more banks inside or outside the district to serve as a depository for district money.

(b) District money, other than money invested as provided by Section 1046.160(b), and money transmitted to a bank for payment of bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and shall remain on deposit.

(c) This chapter, including Subsection (b), does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit.

(d) The district may not deposit money with a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation unless the bank first executes a bond or other security in an amount sufficient to secure from loss the district money that exceeds the amount secured by the Federal Deposit Insurance Corporation. (Acts 66th Leg., R.S., Ch. 275, Sec. 10.)

Source Law

Sec. 10. (a) After advertising in the manner provided by Chapter 163, General Laws, Acts of the 42nd Legislature, Regular Session, 1931, as amended (Article 2368a, Vernon's Texas Civil Statutes), the board shall choose by competitive bidding one or more banks within or without its boundaries to serve as depository for the funds of the district. All funds of the district, except those invested as provided by Section 5 of this Act and those transmitted to a bank or banks of payment for bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and shall remain on deposit. Nothing in this Act shall limit the power of the board to place a portion of the funds on time deposit or purchase certificates of deposit.

(b) Before the district deposits funds in any bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation, the bank shall be required to execute a bond or other security in an amount sufficient to secure from loss the district funds that exceed the amount secured by the Federal Deposit Insurance Corporation.

Revisor's Note

Section 10, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to "Chapter 163, General Laws, Acts of the 42nd Legislature, Regular Session, 1931, as amended (Article 2368a, Vernon's Texas Civil Statutes)." Article 2368a was amended by Chapter 641, Acts of the 69th Legislature, Regular Session, 1985, which transferred provisions relating to competitive bidding and advertising for bids by counties to the County Purchasing Act (V.A.C.S. Article 2368a.5). The County Purchasing Act was codified in 1987 as Subchapter C, Chapter 262, Local Government Code. The provisions of Article 2368a relating to competitive bidding and advertising for bids by municipalities were codified in 1987 as Chapter 252, Local Government Code. The revised law is drafted accordingly.

Revised Law

Sec. 1046.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as otherwise provided by Section 1046.108(c), Section 1046.161, and Subchapter E, the district may not incur an obligation payable from district revenue other than the revenue on hand or to be on hand in the current and following district fiscal years.

(b) The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code. (Acts 66th Leg., R.S., Ch. 275, Secs. 5 (part), 9(b) (part).)

Source Law

Sec. 5. … in no event shall any operating, depreciation, or building reserves be invested in any funds or securities other than those specified in Article 836 or 837, Revised Civil Statutes of Texas, 1925, as amended. …

[Sec. 9]

(b) … Except as permitted in the preceding sentence and Sections 7, 8, and 8A of this Act, the district may incur no obligation payable from revenues of the district, tax or otherwise, except those on hand or to be on hand within the then current and following fiscal years of the district.

Revisor's Note

(1) Section 5, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to "Article 836 or 837, Revised Civil Statutes of Texas, 1925, as amended." Those articles were impliedly repealed by the enactment of the Public Funds Investment Act of 1987 (Article 842a-2, Vernon's Texas Civil Statutes), which was revised in 1993 as Chapter 2256, Government Code. Chapter 2256 defines "local government" to include hospital districts and applies to the district by its own terms. The revised law therefore substitutes a reference to Chapter 2256, Government Code, for the references to Articles 836 and 837.

(2) Section 9(b), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, states that "[e]xcept as permitted in the preceding sentence and Sections 7, 8, and 8A of this Act," the district may not incur certain obligations. The "preceding sentence" in Section 9(b) is codified in Section 1046.108(c). Section 8A is codified in Section 1046.161. Sections 7 and 8 are codified in Subchapter E. The revised law is drafted accordingly.

Revised Law

Sec. 1046.161. AUTHORITY TO BORROW MONEY; SECURITY. (a) The district may incur a debt or borrow money on the credit of the district or secured by any source of revenue, including district taxes to be imposed in the next 12-month period, that is not pledged to pay the principal of or interest on district bonds.

(b) The district may incur a debt or borrow money in any amount at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time the loan is made and on other terms the district considers advisable. (Acts 66th Leg., R.S., Ch. 275, Sec. 8A.)

Source Law

Sec. 8A. The district may incur indebtedness or borrow money on the credit of the district or secured by any source of revenue, including district taxes to be levied by the district in the next 12-month period, that is not pledged to pay the principal or interest on district bonds. The district may incur indebtedness or borrow money in any amount, at an annual rate of interest that does not exceed the maximum annual percentage rate allowed by law for district obligations at the time the loan is made, and on other terms and conditions the district considers advisable.

[Sections 1046.162-1046.200 reserved for expansion]

SUBCHAPTER E. BONDS

Revised Law

Sec. 1046.201. GENERAL OBLIGATION BONDS. The board may issue and sell general obligations 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 66th Leg., R.S., Ch. 275, Sec. 7(a) (part).)

Source Law

Sec. 7. (a) The board may issue and sell its bonds in the name and on the faith and credit of the hospital district for any purpose related to the purchase, construction, acquisition, repair, and renovation of buildings and improvements, and equipping the same for hospital purposes. …

Revisor's Note

Section 7(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that the board may issue and sell bonds in the name and on the faith and credit of the district. Because the type of bonds described by Section 7(a) are known as "general obligation bonds," the revised law is drafted accordingly.

Revised Law

Sec. 1046.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1046.201, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature.

(b) The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed 75 cents on each $100 valuation of all taxable property in the district. (Acts 66th Leg., R.S., Ch. 275, Sec. 7(a) (part).)

Source Law

(a) … At the time of the issuance of any bonds by the district, a tax shall be levied by the board sufficient to create an interest and sinking fund to pay the interest on and principal of the bonds as they mature, providing that the tax together with any other taxes levied for the district shall not exceed 75 cents on each $100 valuation of all taxable property located in the district subject to hospital district taxation in any one year. …

Revisor's Note

Section 7(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, requires the district to levy a tax to pay the principal of and interest on bonds. The revised law specifies that the tax is an "ad valorem" tax because it is clear from the source law that the tax is a property tax and "ad valorem" is the term most commonly used to refer to a property tax.

Revised Law

Sec. 1046.203. 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.

(b) The board, in ordering a bond election, shall provide for clerks as in county elections and must specify:

(1) the date of the election;

(2) the location of the polling places;

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

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

(5) the maximum maturity of the bonds.

(d) The board shall declare the results of the election. (Acts 66th Leg., R.S., Ch. 275, Sec. 7(a) (part).)

Source Law

(a) … No general obligation bonds may be issued by the hospital district … until authorized by a majority of the qualified electors of the district. The board, in ordering a bond election, shall specify the date of the election, the amount of bonds to be authorized, the maximum maturity of the bonds, the place or places where the election will be held, and the presiding judge and alternate judge for each voting place and shall provide for clerks as in county elections… . Notice of any bond election shall be given as provided in Article 704, Revised Civil Statutes of Texas, 1925, as amended, and the election shall be conducted in accordance with the Texas Election Code, as amended, except as modified by the provisions of this Act. The board shall canvass the returns and declare the results.

Revisor's Note

(1) Section 7(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to a majority of the qualified electors. The revised law omits "qualified" for the reason stated in Revisor's Note (1) to Section 1046.119.

(2) Section 7(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to Article 704, Revised Statutes, which specifies certain notice requirements for a bond election. That provision was codified in 1999 as Section 1251.003, Government Code. The revised law is drafted accordingly.

(3) Section 7(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that an election under Section 7 "shall be conducted in accordance with the Texas Election Code, as amended, except as modified by the provisions of this Act." The revised law omits the quoted language because Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state. An exception to the application of the Election Code would apply by its own terms.

Revised Law

Sec. 1046.204. MATURITY OF GENERAL OBLIGATION BONDS. District general obligation bonds must mature not later than 40 years after the date of issuance. (Acts 66th Leg., R.S., Ch. 275, Sec. 7(c) (part).)

Source Law

Revised Law

Sec. 1046.205. EXECUTION OF GENERAL OBLIGATION BONDS. (a) The board president shall execute the general obligation bonds in the district's name.

(b) The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code. (Acts 66th Leg., R.S., Ch. 275, Sec. 7(c) (part).)

Source Law

(c) [Bonds of the district] … shall be executed in the name of the hospital district and in its behalf by the president of the board, shall be countersigned by the secretary in the manner provided by the Texas Uniform Facsimile Signature of Public Officials Act, as amended (Article 717j-1, Vernon's Texas Civil Statutes), … .

Revisor's Note

(1) Section 7(c), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to the Texas Uniform Facsimile Signature of Public Officials Act, as amended (Article 717j-1, Vernon's Texas Civil Statutes). That statute was codified in 1999 as Chapter 618, Government Code, and the revised law is drafted accordingly.

(2) Section 7(c), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that district bonds must bear interest at a rate not to exceed that provided by Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes). The revised law omits that provision because the maximum interest rate noted in Chapter 3 was revised in 1999 as Section 1204.006, Government Code, and Section 1204.006 applies to the district by its own terms by application of Section 1204.001, Government Code. The omitted law reads:

(c) [Bonds of the district] … shall bear interest at a rate not to exceed that prescribed by Chapter 3, Acts of the 61st Legislature, Regular Session, 1969, as amended (Article 717k-2, Vernon's Texas Civil Statutes), and … .

(3) Section 7(c), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, 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 7(c) 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:

(c) [Bonds of the district] … shall be subject to the same requirements in the manner of approval by the attorney general and registration by the comptroller of public accounts as are by law provided for approval and registration of bonds issued by counties. On the approval of the bonds by the attorney general and registration by the comptroller, the bonds shall be incontestable for any cause.

Revised Law

Sec. 1046.206. REVENUE BONDS. (a) The board may issue revenue bonds to:

(1) purchase, construct, acquire, repair, renovate, or equip buildings or improvements for hospital purposes; or

(2) acquire sites to be used for hospital purposes.

(b) The bonds must be payable from and secured by a pledge of all or part of the revenue derived from the operation of the district's hospitals.

(d) The bonds must be issued in the manner and in accordance with the procedures and requirements prescribed by Sections 264.042, 264.043, and 264.046-264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 66th Leg., R.S., Ch. 275, Sec. 8 (part).)

Source Law

Sec. 8. In addition to the power to issue bonds payable from taxes levied by the district as contemplated by Section 7 of this Act, the board may issue and … revenue bonds for purchasing, constructing, acquiring, repairing, equipping, or renovating buildings and improvements for hospital purposes and for acquiring sites for hospital purposes. The bonds shall be payable from and secured by a pledge of all or any part of the revenues of the district to be derived from the operation of its hospital or hospitals, and the bonds may be additionally secured by a mortgage or deed of trust lien on any part or all of its property. The bonds shall be issued in the manner and in accordance with the procedures and requirements specified for the issuance of revenue bonds by county hospital authorities in Sections 8, 10, 11, 12, and 13 of Chapter 122, Acts of the 58th Legislature, 1963, as amended (Article 4494r, Vernon's Texas Civil Statutes).

Revisor's Note

Section 8, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to Sections 8, 10, 11, 12, and 13, Chapter 122, Acts of the 58th Legislature, 1963 (Article 4494r, Vernon's Texas Civil Statutes). Those provisions were codified in 1989 as Sections 264.042, 264.043, and 264.046-264.049, Health and Safety Code. The revised law is drafted accordingly.

Revised Law

Sec. 1046.207. REFUNDING BONDS. (a) The board may, without an election, issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the bond applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness. (Acts 66th Leg., R.S., Ch. 275, Secs. 7(a) (part), (b) (part), 8 (part).)

Source Law

Sec. 7. (a) … [No general obligation bonds may be issued by the hospital district] except refunding bonds [until authorized by a majority of the qualified electors of the district.] …

(b) Refunding bonds of the district may be issued for the purpose of refunding and paying off any outstanding indebtedness it has issued or assumed. The refunding bonds may be sold and the proceeds applied to the payment of outstanding indebtedness or may be exchanged in whole or in part for not less than a similar principal amount of outstanding indebtedness. …

Sec. 8. … [the board may] … refund any previously issued [revenue bonds] … .

Revisor's Note

Section 7(b), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that refunding bonds sold to pay outstanding indebtedness must be issued and payments made in the manner specified by Chapter 503, Acts of the 54th Legislature, 1955, as amended (Article 717k, Vernon's Texas Civil Statutes). In addition, the section provides that refunding bonds must be issued in conformity with Chapter 784, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil Statutes). Articles 717k and 717k-3 were codified in 1999 as Chapter 1207, Government Code. The revised law omits the provisions because Chapter 1207, Government Code, applies to the district by its own terms under Section 1207.001, Government Code. The omitted law reads:

(b) … If the refunding bonds are to be sold and the proceeds applied to the payment of any outstanding indebtedness, the refunding bonds shall be issued and payments made in the manner specified by Chapter 503, Acts of the 54th Legislature, 1955, as amended (Article 717k, Vernon's Texas Civil Statutes). Refunding bonds shall be issued in conformity with Chapter 784, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil Statutes).

Revised Law

Sec. 1046.208. BONDS EXEMPT FROM TAXATION. The following are exempt from taxation by this state or a political subdivision of this state:

(1) bonds issued by the district;

(2) the transfer and issuance of the bonds; and

(3) profits made in the sale of the bonds. (Acts 66th Leg., R.S., Ch. 275, Sec. 23 (part).)

Source Law

Sec. 23. … any bonds issued by it and their transfer and issuance by the district, including any profits made in the sale of the bonds, shall at all times be free from taxation by the state or any municipality or political subdivision of the state.

Revisor's Note

(End of Subchapter)

(1) Section 12, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, 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 12 has been superseded and impliedly repealed. Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)). Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)). Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)). Investments in securities by savings and loan associations are regulated by Sections 63.002 and 64.001, Finance Code. As to the remaining entities listed, Section 12 is superseded by Section 1201.041, Government Code, enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes). Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code. The revised law omits the reference to sinking funds of this state because it has been superseded by Section 404.024, Government Code (enacted in 1985 as Section 2.014, Treasury Act (Article 4393-1, Vernon's Texas Civil Statutes)), which governs the investment of state funds. Section 404.024(b)(10), Government Code, authorizes the investment of state funds in obligations of political subdivisions, including hospital districts. The omitted law reads:

Sec. 12. All bonds issued and indebtedness assumed by the district shall be and are hereby declared to be legal and authorized investments of banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, trustees, and sinking funds of cities, towns, villages, counties, school districts, or other political subdivisions or corporations of the State of Texas, and public funds of the State of Texas, or cities, towns, villages, counties, school districts, or other political subdivisions or corporations of the State of Texas and … .

(2) Section 12, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, effectively provides that district bonds may secure certain deposits. Although Section 12 does not specifically mention the deposits the bonds are eligible to secure, the only deposits the bonds could secure are deposits of public funds of this state or political subdivisions of this state. Therefore, the revised law omits the provision as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions. The omitted law reads:

Sec. 12. … shall be lawful and sufficient security for those deposits to the extent of their value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1046.209-1046.250 reserved for expansion]

SUBCHAPTER F. TAXES

Revised Law

Sec. 1046.251. IMPOSITION OF AD VALOREM TAX. (a) The board may impose a tax on all property in the district subject to district taxation.

(b) The board may impose the tax to pay:

(1) indebtedness issued or assumed by the district; and

(2) the maintenance and operating expenses of the district, including improvements to district facilities.

(c) The district may not impose a tax to pay the principal of or interest on revenue bonds issued under this chapter. (Acts 66th Leg., R.S., Ch. 275, Secs. 11(a) (part), 14(a) (part).)

Source Law

Sec. 11. (a) The board may annually levy a tax … for the purpose of paying:

(1) the indebtedness assumed or issued by the district, but no tax may be levied to pay the principal of or interest on revenue bonds issued under the provisions of Section 8 of this Act; and

(2) the maintenance and operating expenses of the district, including improvements to facilities of the district.

Sec. 14. (a) … Hospital tax shall be levied on all taxable property within the district subject to hospital district taxation.

Revised Law

Sec. 1046.252. TAX RATE. (a) The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district.

(b) In setting the tax rate, the board shall consider the income of the district from sources other than taxation. (Acts 66th Leg., R.S., Ch. 275, Secs. 3(b) (part), (c) (part), 11(a) (part), (b) (part).)

Source Law

[Sec. 3]

(b) … [voters shall vote whether or not … to levy annual taxes] not to exceed 75 cents on the $100 valuation. …

(c) … [votes may be cast for or against …] the levy of a tax not to exceed 75 cents on each $100 valuation on all taxable property within the hospital district subject to hospital district taxation … .

Sec. 11. (a) [The board may annually levy a tax] not to exceed the amount permitted by this Act … .

(b) In setting the tax rate, the board shall take into consideration the income of the district from sources other than taxation. …

Revisor's Note

Section 11(b), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, requires the board to levy the tax and to certify the tax rate to the tax assessor-collector. The revised law omits that provision because Section 26.05(a), Tax Code, requires the governing body of a taxing unit to adopt a tax rate for the current tax year and to notify the tax assessor of that rate. The omitted law reads:

(b) … On determination of the amount of tax required to be levied, the board shall make the levy and certify it to the tax assessor-collector.

Revised Law

Sec. 1046.253. ASSESSMENT AND COLLECTION BY COUNTY TAX ASSESSOR-COLLECTOR. (a) This section applies unless the board elects to have taxes assessed and collected under Section 1046.254.

(b) The tax assessor-collector of Jackson County shall assess and collect taxes imposed by the district. (Acts 66th Leg., R.S., Ch. 275, Secs. 14(a) (part), (b) (part).)

Source Law

Sec. 14. (a) … unless the board by majority vote elects … to have taxes assessed and collected by its own tax assessor-collector under Subsection (c) of this section… .

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

Revisor's Note

(1) Sections 14(a) and (b), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refer to the assessment and collection of district taxes on county tax values or at a specified percentage of fair market value. 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. Chapter 841 enacted the Property Tax Code (Title 1, Tax Code), a comprehensive, substantive codification of property tax law. Title 1, Tax Code, provides the exclusive procedures for the appraisal of property for taxation by a taxing unit, including a hospital district. The omitted law reads:

(a) … all taxes of the district shall be assessed and collected on county tax values as provided by Subsection (b) of this section … .

(b) … district taxes shall be assessed and collected on county tax values in the same manner as provided by law with relation to county taxes… . With the approval of the commissioners court, the board may order the county tax assessor-collector to assess the property in the district at a specified percentage of fair market value that is different than that used for state and county purposes. The tax assessor-collector shall assess the property at that percentage until the board, with the approval of the commissioners court, orders a change in the percentage of fair market value used in assessing the property.

(2) Section 14(b), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to the tax assessor-collector of "the county in which the district is located." The revised law substitutes "Jackson County" for the quoted language because that is the county in which the district is located.

(3) Section 14(b), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that the county tax assessor-collector may charge a fee for the assessment and collection of district taxes. The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979. See Revisor's Note (1). Section 6.27(b), Tax Code, provides for the compensation of a county tax assessor-collector assessing and collecting taxes for another taxing unit. The omitted law reads:

(b) … The assessor-collector of taxes may charge and deduct from payments to the hospital district fees for assessing and collecting the taxes at a rate of not more than one percent of the taxes assessed. Those fees shall be deposited in the officers salary fund of the county and reported as fees of the office of the county tax assessor-collector… .

(4) Section 14(b), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that interest and penalties on district taxes and discounts are the same as for county taxes. The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979. See Revisor's Note (1). Chapter 33, Tax Code, provides for the assessment of penalties and interest on delinquent taxes, and Section 31.05, Tax Code, provides for discounts on the early payment of taxes. The omitted law reads:

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

(5) Section 14(b), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that tax revenue shall be deposited in the district's depository. The revised law omits the provision because Section 31.10, Tax Code, requires the tax assessor-collector of a taxing unit to deposit taxes collected in the unit's depository. The omitted law reads:

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

(6) Section 14(b), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that the bond of the county tax assessor-collector is security for the performance of district duties unless the board determines that an additional bond is necessary. The revised law omits that provision because it duplicates Section 6.29(b), Tax Code, which authorizes a taxing unit for which the county tax assessor-collector collects a tax to require that collector to post an additional bond. The omitted law reads:

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

(7) Section 14(b), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, states that the tax assessor-collector may act in accordance with state law relating to the assessment, collection, and enforcement of state and county taxes. The revised law omits that provision as unnecessary. The state law relating to the assessment, collection, and enforcement of all ad valorem taxes is Title 1, Tax Code. Section 1.02, Tax Code, requires all taxing units of government to administer the assessment, collection, and enforcement of taxes in conformity with that title. The omitted law reads:

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

Revised Law

Sec. 1046.254. ASSESSMENT AND COLLECTION BY DISTRICT TAX ASSESSOR-COLLECTOR. (a) The board may elect to have district taxes assessed and collected by a tax assessor-collector appointed by the board. An election under this subsection must be made by December 1 and governs the manner in which taxes are assessed and collected, until changed by a similar resolution.

(b) The district tax assessor-collector must:

(1) reside in the district; and

(2) own real property subject to district taxation.

(1) the term of employment; and

(2) compensation. (Acts 66th Leg., R.S., Ch. 275, Secs. 14(a) (part), (c) (part).)

Source Law

(a) … [the board by majority vote elects … to have taxes assessed and collected by its own tax assessor-collector] … . That determination may be made by the board before December 1 annually and shall govern the manner in which taxes are subsequently assessed and collected until changed by a similar resolution… .

(c) Under this subsection, taxes shall be assessed and collected by a tax assessor-collector appointed by the directors, who shall also fix the term of his or her employment, compensation, and … the tax assessor and collector shall be residents of the district, and … .

Revisor's Note

(1) Section 14(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that the commissioners court serves as the board of equalization for the district unless the board elects to appoint a board of equalization. Section 14(c) provides for the appointment of a board of equalization and establishes the duties of that board and the district tax assessor-collector. The revised law omits the references to the commissioners court acting as a board of equalization and to the appointed board of equalization because boards of equalization were abolished and their functions and duties transferred to appraisal review boards by the enactment of the Property Tax Code, Title 1, Tax Code (Section 1, Chapter 841, Acts of the 66th Legislature, Regular Session, 1979). The provisions relating to the duties of the tax assessor-collector are omitted because the Tax Code specifies the duties of a tax assessor-collector. The omitted law reads:

(a) … The commissioners court shall serve as the board of equalization for the district and … [unless the board … elects] to appoint a board of equalization and … .

(c) … The directors shall annually appoint five persons to serve as a board of equalization and shall fix their compensation. Each member of the board and [the tax assessor and collector shall be residents of the district, and] each shall have the same duties, including the obligation to execute the oath of office, as required of county officials exercising those powers and duties… .

(2) Section 14(c), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, requires the board to set a bond amount of not less than $5,000 as security for the district tax assessor-collector and authorizes the district to pay for the bond. The revised law omits the provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979. See Revisor's Note (1) to Section 1046.253. Section 6.29(a), Tax Code, authorizes the governing body of a taxing unit, including a hospital district, to require the unit's tax assessor-collector to post bond without limiting the amount. Section 6.29(c), Tax Code, requires the taxing unit to pay the premium on the bond. The omitted law reads:

(c) … [directors, who shall also fix the] … requirement for bond to assure the faithful performance of his or her duties, but in no event shall the bond be for less than $5,000. The expense of the bond may be paid from district funds… .

(3) Section 14(c), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, refers to the applicability of Title 122 of the Revised Statutes (Taxation). Before its repeal and recodification, Title 122 was composed of V.A.C.S. Articles 7041-7359a. The relevant parts of those provisions were revised in 1979 as the Property Tax Code, Title 1, Tax Code (Section 1, Chapter 841, Acts of the 66th Legislature, Regular Session, 1979). The revised law omits the provision because Title 1 applies to the district on its own terms. The omitted law reads:

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

Revisor's Note

(End of Subchapter)

Section 14(a), Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that the district may impose taxes for the entire year in which the district is established. The revised law omits that provision as executed. The omitted law reads:

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

Revisor's Note

(End of Chapter)

(1) Section 20, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides for transferring to the district certain hospitals as well as land, buildings, improvements, permits, licenses, and certificates relating to the hospitals after the creation of the district is confirmed by an election. The revised law omits the provisions as executed. The omitted law reads:

Sec. 20. After the creation of the district is confirmed at a district election as provided by Section 3 of this Act, the district shall assume the control of the hospitals transferred to it by Jackson County and the Edna Hospital District and … . After creation of the district is confirmed at a district election, the district shall take over and there shall be transferred to it title to all land, buildings, improvements, permits, licenses, and certificates pertaining to the hospitals or hospital system which may be located wholly within the district and owned by either Jackson County or the Edna Hospital District.

(2) Section 24, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides that, on the date the Jackson County Hospital District is established, the law creating the Edna Hospital District is repealed. The revised law omits that section as executed. The omitted law reads:

Sec. 24. On the date that the Jackson County Hospital District is created by this Act, Chapter 172, Acts of the 60th Legislature, Regular Session, 1967, is repealed.

(3) Section 25, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, provides a short title for that article. The revised law omits the short title because Chapter 275 is not a statute of wide application that is frequently referred to by its short title, and the heading to this chapter as codified is sufficient to describe the revised law to the reader. The omitted law reads:

Sec. 25. This Act may be cited as the Jackson County Hospital District Act.

(4) Section 26, Chapter 275, Acts of the 66th Legislature, Regular Session, 1979, 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. 26. The legislature finds publication of the notice required in the enactment of this Act under the provisions of Article IX, Section 9, of the Texas Constitution has been made in the manner and form provided by law pertaining to the enactment of local and special laws.


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