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CHAPTER 1041.  HIGGINS-LIPSCOMB HOSPITAL DISTRICT

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 1041.001.  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 Higgins-Lipscomb 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. 1041.002.  AUTHORITY FOR OPERATION.  The Higgins-Lipscomb Hospital District operates and is financed in accordance with Section 9, Article IX, Texas Constitution.  (Acts 64th Leg., R.S., Ch. 666,  Sec. 1 (part).)

Source Law

Sec. 1.  Pursuant to the provisions of Article IX, Section 9, of the Texas Constitution, this Act authorizes the creation, establishment, maintenance, operation, and financing of the Higgins Hospital District of Lipscomb County, … .

Revisor's Note

(1)  Section 1, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, authorizes the "creation, establishment, maintenance, operation, and financing" of the district.  The revised law omits "creation" and "establishment" as executed.  The revised law omits "maintenance" because, in this context, the meaning of that term is included in the meaning of "operation."

(2)  Section 1, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, refers to the "Higgins Hospital District of Lipscomb County."  The revised law substitutes "Higgins-Lipscomb Hospital District" or "district" for the quoted phrase in this section and throughout this chapter because under Section 1A, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, added by Section 3, Chapter 732, Acts of the 74th Legislature, Regular Session, 1995, the name of the Higgins Hospital District of Lipscomb County was changed to the Higgins-Lipscomb Hospital District when the district expanded to include territory in the boundaries of the Lipscomb Hospital District of Lipscomb County.

(3)  Section 2, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provides that the district may be created as a hospital district after an election.  The revised law omits this provision as executed because the election has been held and the district is created.  The omitted law reads:

Sec. 2.  The area described in Section 1 of this Act shall be constituted a hospital district and … provided, that the hospital district may not be created until an election is held within the proposed district to approve the creation.

Revised Law

Sec. 1041.003.  POLITICAL SUBDIVISION.  The district is a political subdivision of this state. (Acts 64th Leg., R.S., Ch. 666,  Sec. 16 (part).)

Source Law

Sec. 16.  The district is declared to be a political subdivision of the State of Texas and … .

Revised Law

Sec. 1041.004.  DISTRICT TERRITORY.  The district is composed of the territory described by:

(1)  Section 1, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975; and

(2)  Section 1, Chapter 667, Acts of the 64th Legislature, Regular Session, 1975.  (Acts 64th Leg., R.S., Ch. 666,  Secs. 1 (part), 4A(h) (part); New.)

Source Law

Sec. 1.  … the boundaries of which are described as follows, … .

[Sec. 4A]

(h)  The district is expanded to include the territory within the boundaries of the Lipscomb Hospital District of Lipscomb County and … .

Revisor's Note

(1)  The revision of the law governing the Higgins-Lipscomb Hospital District does not revise the statutory language describing the territory of the district to avoid the lengthy recitation of the description.  For the reader's convenience, the revised law includes references to the statutory description of the district's territory.

(2)  Sections 1 and 4A(a), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, refer to the possible expansion of the district's boundaries.  The revised law omits those provisions as executed for the reason stated in Revisor's Note (2) at the end of this subchapter.  The omitted law reads:

Sec. 1.  … unless expansion of the district is authorized under Sections 4A, 4B, and 4C of this Act: … .

Sec. 4A.  (a)  The district may be expanded to include the territory within the boundaries of the Lipscomb Hospital District of Lipscomb County as provided by this section.

(3)  Section 1A(a), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, as added by Section 3, Chapter 732, Acts of the 74th Legislature, Regular Session, 1995, provides for the change of the name of the Higgins Hospital District of Lipscomb County to the Higgins-Lipscomb Hospital District.  This provision is omitted for the reason stated in Revisor's Note (2) to Section 1041.002.  Section 1A(b) provides that a reference to the Higgins Hospital District of Lipscomb County in that act or in any other law means the Higgins-Lipscomb Hospital District.  This provision is omitted because all references in the revised law to the district mean the Higgins-Lipscomb Hospital District and there are no other references in law to the former Higgins Hospital District of Lipscomb County.  The omitted law reads:

Sec. 1A.  (a)  If the District is expanded under Section 4A of this Act, the name of the district is changed to the Higgins-Lipscomb Hospital District.

(b)  If the name of the district is changed under Subsection (a) of this section, a reference in this Act or in any law to the Higgins Hospital District of Lipscomb County means the Higgins-Lipscomb Hospital District.

Revisor's Note

(End of Subchapter)

(1)  Section 3, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provides procedures for holding an election on the creation of the former Higgins Hospital District of Lipscomb County and the imposition of an ad valorem tax.  Because the creation of the former hospital district and the imposition of the tax were approved at the election, the revised law omits the provision as executed.  The omitted law reads:

Sec. 3.  (a)  Upon the petition of 50 voters residing within the described area, the Commissioners Court of Lipscomb County shall order an election to be held within the proposed district to approve the creation of the proposed district and to elect the first board of directors.  The commissioners court shall order the election within 10 days of the receipt of the petition, and the election shall be held within 30 days after it is ordered.

(b)  At the election there shall be submitted to the voters of the district the proposition of whether or not the district shall be created, and a majority of the persons voting at the election voting in favor of the proposition shall be necessary to create the district.  The ballots shall be printed to provide for voting for or against the following proposition:

"The creation of the Higgins Hospital District and the levy of a tax not to exceed 75 cents on the $100 valuation."

(c)  After the election is ordered, any resident of the district 18 years of age or over who is otherwise qualified may file an application with the Commissioners Court of Lipscomb County to have his name placed on the ballot for election to the board of directors of the district.  The application shall be received by the court until 10 days preceding the date of the election.

(d)  There shall be submitted to the voters at the election a separate ballot containing the names of the qualified persons who have filed applications to have their names placed on the ballot for election to the board of directors.  Each voter shall vote for six persons.  The six persons receiving the highest number of votes shall constitute the first board of directors of the district.  The three receiving the highest number of votes shall serve until the first Saturday of April of the second year after the election.  The three receiving the next highest number of votes shall serve until the first Saturday of April of the first year after the election.  Thereafter, all directors shall serve for two-year terms.

(e)  Notice of the election stating the time and places of election and the proposition and matters to be voted on shall be published in a newspaper with general circulation in Lipscomb County once a week for three consecutive weeks, the first notice not being published more than 30 days prior to the date of the election.

(f)  The results of the election shall be filed in the county clerk's office of Lipscomb County within 10 days after the election.  If the majority of the persons voting at the election vote for the creation of the district, then within 10 days of the filing of the results the commissioners court shall order the district created and shall at such time declare those persons elected as directors to serve until their respective successors are elected and qualified.  If the district is not confirmed at an election held within 60 months from the effective date of this Act, this Act is repealed.

(2)  Sections 4A(b)-(i), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, as added by Section 4, Chapter 732, Acts of the 74th Legislature, Regular Session, 1995, provide for the expansion of the district to include territory in the Lipscomb Hospital District of Lipscomb County and for the assumption of the assets and obligations of the Lipscomb Hospital District of Lipscomb County.  Because the voters approved the district expansion at the election, the revised law omits the relevant law as executed.  The omitted law reads:

(b)  The board of directors may order an election on the question of expanding the district and assuming the assets and obligations of the Lipscomb Hospital District of Lipscomb County.  The board of directors shall order an election if:

(1)  a separate dissolution and expansion election is ordered by the board of directors of the Lipscomb Hospital District of Lipscomb County under Section 16A, Chapter 667, Acts of the 64th Legislature, 1975; or

(2)  the board of directors receives a petition requesting an expansion election signed by 25 registered voters in the district.

(c)  If the board of directors orders an election under this section, it shall promptly notify the board of directors of the Lipscomb Hospital District of Lipscomb County of the election order.

(d)  Except as provided by Subsection (f) of this section, the election shall be held in accordance with the applicable provisions of the Election Code.

(e)  The board of directors may not order another election on the question of expansion before the first anniversary of the date of the most recent election at which voters of either district disapproved the proposition on which they voted.

(f)  The election shall be held not less than 45 or more than 60 days after the date on which the election is ordered and shall be held on the same date that the separate election in the Lipscomb Hospital District of Lipscomb County is held.  The board of directors shall cooperate with the board of directors of the Lipscomb Hospital District of Lipscomb County in setting the date of the elections.  Section 41.001(a), Election Code, does not apply to an election ordered under this section.

(g)  The ballot for the election shall be printed to permit voting for or against the proposition: "The expansion of the Higgins Hospital District of Lipscomb County to include the territory within the boundaries of the Lipscomb Hospital District of Lipscomb County and the assumption of the assets and obligations of the Lipscomb Hospital District of Lipscomb County."

(h)  … a temporary board of directors shall be appointed under Section 4B of this Act if:

(1)  a majority of the voters in the district voting in the election held under this section favor the proposition; and

(2)  a majority of the voters in the Lipscomb Hospital District of Lipscomb County voting in an election held on the same date under Section 16A, Chapter 667, Acts of the 64th Legislature, 1975, favor the dissolution of the Lipscomb Hospital District of Lipscomb County, addition of the territory within the Lipscomb Hospital District of Lipscomb County to the Higgins Hospital District of Lipscomb County, transfer of the existing Lipscomb Hospital District of Lipscomb County's assets and obligations to the Higgins Hospital District of Lipscomb County, and assumption of a proportionate share of the outstanding obligations of the Higgins Hospital District of Lipscomb County by the territory within the boundaries of the Lipscomb Hospital District of Lipscomb County.

(i)  The district is not expanded if a majority of the voters in either district do not favor the proposition on which they voted.

[Sections 1041.005-1041.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1041.051.  BOARD ELECTION; TERM.  (a)  The board consists of six directors elected from the district at large.

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

(1)  directors serve staggered two-year terms with three directors elected each year; and

(2)  a directors' election shall be held on the uniform election date in May of each year.

(c)  If two or more persons tie for the third-highest vote in a directors' election, those persons shall draw lots to determine which person is elected.

(d)  A director's term begins on June 1 following the director's election.  (Acts 64th Leg., R.S., Ch. 666,  Secs. 3A(a), 4C(c) (part), (d), (e) (part), (f).)

Source Law

Sec. 3A.  (a)  A director's election shall be held on the first Saturday in May in each year for the election of the appropriate number of successor directors.

[Sec. 4C]

(c)  … members of the board of directors shall be elected at large on a single ballot, … .

(d)  The directors elected at the initial election of directors following expansion of the district shall draw lots to determine which three directors shall serve one-year terms and which three directors shall serve two-year terms.

(e)  … an election shall be held each year on the first Saturday in May or on the uniform election date prescribed by the temporary board of directors, and the appropriate number of successor directors shall be elected for two-year terms.  If two or more persons tie for the third-highest vote, those persons shall draw lots to determine which person is elected.

(f)  The term of a member of the board of directors begins on the first day of June following the member's election.

Revisor's Note

(1)  Sections 3A(a) and 4C, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, prescribe the procedures for electing the initial board and the terms of the initial directors.  The revised law omits those provisions as executed but codifies the establishment of a board consisting of six directors elected from the district at large.  Section 4C(d) also establishes staggered two-year terms for the initial elected directors that expire one or two years after the election.  The revised law codifies the provision specifying staggered terms and provides for electing three directors each year, but omits the provision relating to which year the terms of the initial directors expire as executed.

(2)  Sections 4B and 4C, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provide for the appointment of a temporary board for the district after expansion of the district under Section 4A of the act and for electing the next board.  The revised law omits the relevant law as executed.  The omitted law reads:

Sec. 4B.  (a)  If the district is expanded under Section 4A of this Act, the governing body of Lipscomb County shall appoint three persons to serve as temporary directors and the governing body of the municipality of Higgins shall appoint three persons to serve as temporary directors of the expanded district.  The terms of the directors serving preceding the appointment expire when the temporary directors qualify for office.

(b)  A vacancy on the temporary board of directors shall be filled in the same manner as the original appointment.

(c)  The temporary board of directors shall serve as the directors of the district until elected directors take office.

Sec. 4C.  (a)  If the district is expanded under Section 4A of this Act, directors shall be elected at an election to be held on May 1, 1997.

(b)  The temporary board of directors may postpone the election date for one year or until a subsequent uniform election date if the temporary board of directors determines that there is not sufficient time to comply with the requirements of law.

(c)  At the initial election of the board of directors following expansion of the district, [members of the board of directors shall be elected at large on a single ballot,] with the six candidates receiving the highest number of votes being elected as a director.  If two or more persons tie for the sixth-highest vote, those persons shall draw lots to determine which person is elected.

(e)  After the initial election of directors following expansion, … .

(3)  Section 4C(e), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provides that directors serve two-year terms.  Section 285.081, Health and Safety Code, applicable to this hospital district, provides a mechanism by which the governing board of a hospital district, on its own motion, may order that the members are to be elected in even-numbered years to serve staggered four-year terms.  The revised law is drafted accordingly and adds a reference to Section 285.081, Health and Safety Code, for the convenience of the reader.

(4)  Section 3A, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, was added in 1993 to require board elections on the "first Saturday in May."  Section 4C(e) of that chapter was added in 1995 to require board elections on "the first Saturday in May or on the uniform election date prescribed by the temporary board of directors."  From 1986 to 2003, Section 41.001, Election Code, provided for a uniform election date for all political subdivisions on the first Saturday in May.  In Chapter 1315, Acts of the 78th Legislature, Regular Session, 2003, the legislature amended Section 41.001 by moving the uniform election date in May to the third Saturday.  In Chapter 1, Acts of the 78th Legislature, 3rd Called Session, 2003, the legislature amended Section 41.001 by moving the uniform election date in May back to the first Saturday.  In Chapter 471, Acts of the 79th Legislature, Regular Session, 2005, the legislature amended Section 41.001 by moving the uniform election date in May to the second Saturday.  The revised law substitutes "uniform election date in May" for "first Saturday in May" to reflect these changes while preserving as closely as possible the legislative intent expressed in the 1993 and 1995 amendments to Chapter 666 that the election be held on the first Saturday in May (the "temporary" board did not prescribe a different date under the 1995 amendment), which was at that time the uniform election date in May.

Revised Law

Sec. 1041.052.  BOARD VACANCY.  If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term.  (Acts 64th Leg., R.S., Ch. 666, Sec. 3A(b).)

Source Law

(b)  A vacancy in the office of director shall be filled for the unexpired term by appointment by the remaining directors.

Revised Law

Sec. 1041.053.  OFFICERS.  (a)  The board shall elect a president, vice president, and secretary-treasurer from among its members.

(b)  Each officer of the board serves until the next directors' election.  (Acts 64th Leg., R.S., Ch. 666,  Sec. 4(a) (part).)

Source Law

Sec. 4.  (a)  The board of directors of the district shall elect a president, vice-president, and secretary-treasurer from its membership to serve until the next succeeding directors' election. …

Revised Law

Sec. 1041.054.  COMPENSATION; EXPENSES.  A director serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties on approval of the expenses by the entire board.  (Acts 64th Leg., R.S., Ch. 666,  Sec. 4(b).)

Source Law

(b)  The board of directors shall serve without compensation but may be reimbursed for actual expenses incurred in the performance of their official duties on the approval of expenses by the entire board of directors.

Revised Law

Sec. 1041.055.  EMPLOYEES.  The board may employ a general manager, attorneys, financial advisors, bookkeepers, and architects.  (Acts 64th Leg., R.S., Ch. 666,  Sec. 7(a) (part).)

Source Law

(a)  …  The board of directors may employ a general manager, attorneys, financial advisors, bookkeepers, and architects.

Revised Law

Sec. 1041.056.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.  All district records, including books, accounts, notices, minutes, and all other matters of the district and the operation of its facilities, shall be:

(1)  maintained at the district office; and

(2)  open to public inspection at reasonable hours.  (Acts 64th Leg., R.S., Ch. 666,  Sec. 7(b).)

Source Law

(b)  All books, records, accounts, notices, and minutes and all other matters of the district and the operation of its facilities shall be maintained at the office of the district and be open to public inspection at reasonable hours.

Revised Law

Sec. 1041.057.  SEAL.  The board may adopt a seal for the district.  (Acts 64th Leg., R.S., Ch. 666,  Sec. 7(a) (part).)

Source Law

Sec. 7.  (a)  The board of directors … may adopt a seal for such district… .

[Sections 1041.058-1041.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1041.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for:

(1)  operating all hospital facilities; and

(2)  providing hospital care for the district's needy inhabitants.  (Acts 64th Leg., R.S., Ch. 666, Sec. 12(a) (part).)

Source Law

(a)  …  The hospital district shall assume full responsibility for the operation of all hospital facilities and for the furnishing of hospital care for its needy inhabitants.

Revisor's Note

Section 12(a), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provides that the district "shall assume" full responsibility for operating hospital facilities and for providing 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. 1041.102.  RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT.  (a)  A political subdivision within the district, other than the district, may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care for district inhabitants.

(b)  A governmental entity other than the district may not impose a tax or issue bonds or other obligations on property in the district for hospital purposes or  to provide medical care for needy district inhabitants.  (Acts 64th Leg., R.S., Ch. 666,  Sec. 12(a) (part).)

Source Law

Sec. 12.  (a)  No municipality or political subdivision within the boundaries of the district may have the power to levy taxes or issue bonds or other obligations for hospital purposes or for providing medical care for inhabitants of the district.  If the Higgins Hospital District has been created pursuant to Section 3 of this Act, no other governmental entity may levy taxes or issue bonds or other obligations on any property in the district for hospital purposes or for providing medical care for needy inhabitants of the district.  …

Revisor's Note

(1)  Section 12(a), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provides that a "municipality or political subdivision" may not levy taxes or issue bonds.  The revised law omits the reference to "municipality" because "municipality" 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.

(2)  Section 12(a), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provides that governmental entities may not levy taxes or issue bonds "[i]f the Higgins Hospital District has been created pursuant to Section 3 of this Act."  The revised law omits the quoted language as executed.

Revised Law

Sec. 1041.103.  MANAGEMENT AND CONTROL.  The board has full management and control of all district business, including the power to:

(1)  negotiate and contract with any person;

(2)  purchase or lease land; and

(3)  construct, equip, operate, and maintain a hospital system.  (Acts 64th Leg., R.S., Ch. 666,  Sec. 4(a) (part).)

Source Law

(a)  …  The board of directors shall have the full management and control of all business of the district, including the power and authority to negotiate and contract with any person or legal entity, to purchase or lease land, to construct and equip a hospital system, and to operate and maintain the hospital system, and to negotiate and contract with the State of Texas, political subdivisions of the state, individuals, associations, or corporations.

Revisor's Note

Section 4(a), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provides that the board has the "power and authority" to "operate and maintain" a hospital system and to contract with "any person or legal entity" or  with "the State of Texas, political subdivisions of the state, individuals, associations, or corporations."  The revised law omits the reference to "authority" because, in this context, "authority" is included in the meaning of "power."  The revised law omits the references to "legal entity" and to "the State of Texas, political subdivisions of the state, individuals, associations, or corporations" because under Section 311.005(2), Government Code (Code Construction Act), "person" is defined to include any legal entity.

Revised Law

Sec. 1041.104.  HOSPITAL SYSTEM.  The district shall provide for the establishment of a hospital system to provide medical and hospital care to the district's residents.  (Acts 64th Leg., R.S., Ch. 666,  Sec. 2 (part).)

Source Law

Sec. 2.  The … district … shall provide for the establishment of a hospital system to furnish medical and hospital care to persons residing in the district; … .

Revised Law

Sec. 1041.105.  RULES.  (a)  The board may adopt rules governing the operation of the district, including district facilities.

(b)  On approval by the board, the rules may be published in booklet form at district expense and made available to any resident on request.  (Acts 64th Leg., R.S., Ch. 666,  Sec. 7(c).)

Source Law

(c)  The board of directors may adopt rules and regulations governing the operation of the district and its facilities.  The rules and regulations may, upon approval of the board of directors, be published in booklet form at the expense of the district and may be made available to any resident on request.

Revisor's Note

Section 7(c), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, refers to "rules and regulations."  The revised law omits the references to "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

Revised Law

Sec. 1041.106.  PURCHASING AND ACCOUNTING PROCEDURES.  (a)  The board may prescribe the method and manner of making purchases and expenditures for the district.

(b)  The board shall prescribe:

(1)  all accounting and control procedures; and

(2)  the method of purchasing necessary supplies, materials, and equipment.  (Acts 64th Leg., R.S., Ch. 666,  Sec. 7(a) (part).)

Source Law

Sec. 7.  (a)  The board of directors of the district may prescribe the method and manner of making purchases and expenditures for the district, and shall prescribe all accounting and control procedures and the method of purchasing necessary supplies, materials, and equipment, and … .

Revised Law

Sec. 1041.107.  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 right, power, privilege, or function conferred on the district by this chapter.

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

(c)  In a condemnation proceeding, the district is not required to:

(1)  pay in advance or provide a bond or other security for costs in the trial court;

(2)  provide a bond for the issuance of a temporary restraining order or a temporary injunction; or

(3)  provide a bond for costs or a supersedeas bond on an appeal or writ of error.  (Acts 64th Leg., R.S., Ch. 666, Sec. 9.)

Source Law

Sec. 9.  The district shall have the right and power of eminent domain for the purpose of acquiring by condemnation property of any kind or character, or any interest therein, including outright ownership of the property in fee simple absolute, within the boundaries of the district, necessary or convenient to the exercise of the rights, powers, privileges, and functions conferred on it by this Act, in the manner provided by general law with respect to condemnation.  The district may 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 provide the bond required by that article.  In condemnation proceedings, the district may not be required to pay in advance or to give bond or other security for costs in the trial court, nor to give any bond otherwise required for the issuance of a temporary restraining order or a temporary injunction relating to a condemnation proceeding, nor to give bond for costs or for supersedeas on any appeal or writ of error.

Revisor's Note

(1)  Section 9, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, 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 9, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provides that the district must exercise the power of eminent domain in the manner provided by "general law with respect to condemnation."  The revised law substitutes for the quoted language a reference to Chapter 21, Property Code, because that is the general law governing eminent domain.

(3)  Section 9, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, 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, and the revised law is drafted accordingly.  In addition, throughout this chapter, the revised law omits the references to "as amended" because under Section 311.027, Government Code (Code Construction Act), a reference to a statute applies to all reenactments, revisions, or amendments of that statute unless expressly provided otherwise.

Revised Law

Sec. 1041.108.  GIFTS AND ENDOWMENTS.  The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district.  (Acts 64th Leg., R.S., Ch. 666,  Sec. 14.)

Source Law

Sec. 14.  The board of directors may, on behalf of the district, accept donations, gifts, and endowments for the hospital district to be held in trust and administered by the board of directors for the purposes and under such directions, limitations, and provisions prescribed in writing by the donor, not inconsistent with proper management and objects of the district.

Revisor's Note

Section 14, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, 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. 1041.109.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient from Lipscomb County is admitted to a district facility, the board shall have an inquiry made into the circumstances of:

(1)  the patient; and

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

(b)  If an agent designated by the district determines that the patient or those relatives cannot pay all or part of the costs of the care and treatment in the hospital, the expense of that care becomes a charge against the district.

(c)  If an agent designated by the district determines that the patient or those relatives are liable to pay for all or part of the costs of the patient's care and treatment, the patient or those relatives shall be ordered to pay the district's treasurer a specified amount each week for the patient's support.  The amount ordered must be proportionate to the person's financial ability and may not exceed the actual per capita cost of maintenance.

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

(e)  If there is a dispute as to the ability to pay, the board shall hold a hearing and, after calling witnesses, shall resolve the dispute.

(f)  Either party to the dispute may appeal the district's determination to the district court.  (Acts 64th Leg., R.S., Ch. 666,  Sec. 13.)

Source Law

Sec. 13.  Whenever a patient has been admitted to the facilities of the hospital district from the county in which the district is located, the directors shall have an inquiry made as to his circumstances, and of the relatives of the patient legally liable for his support.  If he finds that the patient or his relatives are liable to pay for his care and treatment in whole or in part, an order shall be made directing the patient or his relatives to pay to the treasurer of the hospital district for the support of the patient a specified sum per week in proportion to their financial ability, but the sum may not exceed the actual per capita cost of maintenance.  The district shall have the power and authority to collect the sum from the estate of the patient, or his relatives legally liable for his support, in the manner provided by law for the collection of expenses of the last illness of a deceased person.  If the agent finds that the patient or his relatives are not able to pay, either in whole or in part, for his care and treatment in such hospital, the expense of his care shall become a charge on the hospital district.  If there is a dispute as to the ability to pay, the directors shall hear and determine the controversy after calling witnesses.  An appeal shall lie to the district court by either party to the dispute.

Revisor's Note

(1)  Section 13, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, refers to "the county in which the district is located."  Throughout this chapter the revised law substitutes "Lipscomb County" for the quoted language because that is the county in which the district is located.

(2)  Section 13, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, requires the board to have an inquiry made into a patient's circumstances and provides different consequences depending on the findings of the inquiry. Section 13 provides that the first set of consequences apply if "he" makes certain findings, but provides no antecedent reference to who "he" may be.  The section subsequently provides that the second set of consequences apply if "the agent" makes certain findings.  From the context the necessary conclusion is that the section anticipates that the board will designate an agent to make the findings.  The revised law is drafted accordingly.

Revised Law

Sec. 1041.110.  AUTHORITY TO SUE AND BE SUED. The district may sue and be sued in its own name in any court of this state. (Acts 64th Leg., R.S., Ch. 666,  Sec. 16 (part).)

Source Law

Sec. 16.  The district … may sue and be sued in any court of this state in the name of the district.

Revisor's Note

(End of Subchapter)

Section 11, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provides authority for a representative of the "State Board of Health" to inspect district facilities and records.  The revised law omits Section 11 because various state laws, including Chapters 222 and 241, Health and Safety Code, provide the necessary inspection authority to appropriate state agencies.  The omitted law reads:

Sec. 11.  Any hospital district established or maintained under the provisions of the Act shall be subject to inspection by any duly authorized representative of the State Board of Health.  Resident officers shall admit the representatives into all hospital district facilities and give them access on demand to all records, reports, books, papers, and accounts pertaining to the hospital district.

[Sections 1041.111-1041.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1041.151.  BUDGET.  The board annually shall have a budget prepared for the next fiscal year that includes:

(1)  proposed expenditures and disbursements;

(2)  estimated receipts and collections; and

(3)  the amount of taxes required to be imposed for the year. (Acts 64th Leg., R.S., Ch. 666,  Sec. 8(b) (part).)

Source Law

(b)  The board of directors shall each year have a budget prepared showing the proposed expenditures and disbursements and the estimated receipts and collections for the following fiscal year and … .  The proposed budget shall show the amount of taxes required to be levied and collected during the fiscal year, and … .

Revisor's Note

Section 8(b), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, refers to taxes required to be "levied and collected."  The revised law substitutes "imposed" for the quoted language because "impose" is the term generally used in Title 1, Tax Code, and includes the levying and collection of an ad valorem tax.

Revised Law

Sec. 1041.152.  PROPOSED BUDGET:  NOTICE AND HEARING.  (a)  The board shall hold a public hearing on the proposed budget.

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

(c)  Any district resident is entitled to:

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

(2)  be heard regarding any item included in the proposed budget.  (Acts 64th Leg., R.S., Ch. 666,  Sec. 8(b) (part).)

Source Law

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

Revised Law

Sec. 1041.153.  FISCAL YEAR.  The district operates on a fiscal year that begins on October 1 and ends on September 30.  (Acts 64th Leg., R.S., Ch. 666,  Sec. 8(a) (part).)

Source Law

Sec. 8.  (a)  The fiscal year of the district shall commence on October 1 of each year and end on September 30 of the following year… .

Revised Law

Sec. 1041.154.  ANNUAL AUDIT.  (a)  The board annually shall have an independent audit made of the district's books and records for the fiscal year.

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

(1)  with the comptroller; and

(2)  at the district office.  (Acts 64th Leg., R.S., Ch. 666, Sec. 8(a) (part).)

Source Law

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

Revisor's Note

Section 8(a), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, refers to the "Comptroller of Public Accounts of the State of Texas."  The revised law substitutes "comptroller" for the quoted language because Section 403.001, Government Code, defines "comptroller" in any state statute to mean the comptroller of public accounts of the State of Texas.

Revised Law

Sec. 1041.155.  DEPOSITORY OR TREASURER.  (a)  The board by resolution shall designate a bank or banks in the district as the district's depository or treasurer.  A designated bank serves for two years and until a successor is designated.

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

(c)  All district money shall be secured in the manner provided for securing county funds.  (Acts 64th Leg., R.S., Ch. 666,  Secs. 5(b) (part), 10.)

Source Law

[Sec. 5]

(b)  … [shall be deposited in the district depository] …  All other income of the hospital district shall be deposited in like manner with the district depository.

Sec. 10.  Within 30 days after appointment and qualification of the board of directors of the district, the directors shall by resolution designate a bank or banks located within the district as the district's depository or treasurer, and all funds of the district shall be secured in the manner now provided for the security of county funds.  The depository shall serve for a period of two years and until a successor has been named.

Revisor's Note

Section 10, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, requires the board to select a depository or treasurer "[w]ithin 30 days after appointment and qualification of the board of directors of the district."  The revised law omits the quoted language as executed.

[Sections 1041.156-1041.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Revised Law

Sec. 1041.201.  GENERAL OBLIGATION BONDS.  The board may issue and sell general obligation bonds in the name and on the faith and credit of the district for any purpose relating to:

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

(2)  equipping buildings or improvements for hospital purposes.  (Acts 64th Leg., R.S., Ch. 666,  Sec. 6(a) (part).)

Source Law

Sec. 6.  (a)  The board of directors may issue and sell as an obligation of the district, and in the name and upon the faith and credit of the district, bonds for the purchase, construction, acquisition, repair, or renovation of buildings and improvements and equipping the same for hospital purposes and for any or all of such purposes; … .

Revisor's Note

Section 6(a), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, 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 6(a) are known as "general obligation bonds," the revised law is drafted accordingly.

Revised Law

Sec. 1041.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  The board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on general obligation bonds issued under Section 1041.201.

(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 64th Leg., R.S., Ch. 666,  Sec. 6(a) (part).)

Source Law

(a)  … provided that a sufficient tax shall be levied to create an interest and sinking fund to pay the interest on and principal of the bonds.  The tax together with other taxes levied for the district shall not exceed 75 cents on the $100 valuation in any one year… .

Revisor's Note

Section 6(a), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, 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. 1041.203.  GENERAL OBLIGATION BOND ELECTION.  (a)  The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election.

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

(c)  The order calling the election must specify:

(1)  the location of the polling places;

(2)  the presiding election officers;

(3)  the purpose of the bond issuance;

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

(5)  the maximum interest rate provided by law.

(d)  Notice of a bond election shall be given by publishing a substantial copy of the order calling the election in a newspaper of general circulation in the district once each week for two consecutive weeks before the date of the election.  The first publication must occur at least 20 days before the date of the election.  (Acts 64th Leg., R.S., Ch. 666, Sec. 6(b) (part).)

Source Law

(b)  No bonds may be issued by the hospital district …  until authorized by a majority vote of the voters residing in the hospital district voting at an election.  The election may be called by the board of directors on its own motion, which shall specify the place or places where the election shall be held, the presiding officers, the purpose for which the bonds are to be issued, the amount of the bonds, and the maximum interest rate provided by law.  …  Notice of the election shall be given by publishing a substantial copy of the order calling the election in a newspaper of general circulation in the district once a week for two consecutive weeks prior to the date of election, the date of the first publication being at least 20 days prior to the date set for the election… . 

Revisor's Note

(1)  Section 6(b), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, refers to a majority vote of the voters "residing" in the district.  The revised law omits "residing" as unnecessary in this context because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only voters who are residents of the territory covered by the election to vote in an election.

(2)  Section 6(b), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, requires the district to pay the costs of elections.  The revised law omits the provision because it duplicates Section 1.014, Election Code, applicable to the district under Section 1.002 of that code.  The omitted law reads:

(b)  …  The costs of the election shall be paid by the hospital district.

Revised Law

Sec. 1041.204.  MATURITY OF GENERAL OBLIGATION BONDS.  District general obligation bonds must mature not later than 40 years after the date of issuance.  (Acts 64th Leg., R.S., Ch. 666, Sec. 6(b) (part).)

Source Law

(b)  …  The maximum maturity date of the bonds shall not exceed 40 years from their date of issuance… .

Revised Law

Sec. 1041.205.  EXECUTION OF GENERAL OBLIGATION BONDS.  (a)  The board president shall execute the general obligation bonds in the district's name.

(b)  The board secretary shall countersign the bonds.  (Acts 64th Leg., R.S., Ch. 666, Sec. 6(a) (part).)

Source Law

(a)  …  The bonds shall be executed in the name of the hospital district and on its behalf by the president of the board of directors and countersigned by the secretary of the board of directors, and … .

Revisor's Note

Section 6(a), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provides that district bonds are subject to the law requiring bond approval by the attorney general and registration of the bonds by the comptroller.  Section 6(a) also provides that after approval the bonds are "incontestable for any cause."  The revised law omits those provisions as superseded by Chapter 1202, Government Code (enacted as Article 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987).  Section 1202.003(a), Government Code, requires bonds to be submitted to the attorney general.  Section 1202.003(b), Government Code, provides for approval of the bonds by the attorney general and requires the attorney general to submit the approved bonds to the comptroller for registration.  Section 1202.005, Government Code, requires registration of the bonds by the comptroller.  Section 1202.006, Government Code, provides that after approval and registration the bonds are incontestable and binding obligations.  Chapter 1202, Government Code, applies to district bonds by application of Section 1202.001, Government Code.  The omitted law reads:

(a)  … [The bonds] … shall be subject to the same requirements in the manner of approval by the Attorney General of the State of Texas and the registration by the Comptroller of Public Accounts of the State of Texas provided by law.  On the approval of the bonds by the attorney general, the bonds shall be incontestable for any cause.

Revised Law

Sec. 1041.206.  REFUNDING BONDS.  (a)  The board may, without an election, issue refunding bonds to refund outstanding bonds issued or assumed by the district.

(b)  A refunding bond may be:

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

(2)  exchanged wholly or partly for not less than a similar amount of outstanding bonds and the unpaid matured interest on the bonds. (Acts 64th Leg., R.S., Ch. 666,  Secs. 6(b) (part), (c) (part).)

Source Law

(b)  [No bonds may be issued by the hospital district] except refunding bonds [until authorized by a majority vote of the voters residing in the hospital district voting at an election.] …

(c)  The bonds of the hospital district may, without the necessity of any election, be issued for the purpose of refunding and paying off any bonded indebtedness assumed by the hospital district and any bonds issued by the hospital district.  The refunding bonds may be sold and the proceeds applied to the payment of any such outstanding bonds or may be exchanged in whole or in part for not less than a like amount of outstanding bonds and interest matured on the bonds, but unpaid. …

Revisor's Note

Section 6(c), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, limits the interest rate for refunding bonds and other bonds issued by the district.  The revised law omits the part of Section 6 that relates to interest rates as impliedly repealed by Section 2(a), Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), which was revised in 1999 as Section 1204.006(a), Government Code.  Section 1204.006(a) permits a public agency, including a hospital district, to issue  bonds at a net effective interest rate not to exceed 15 percent and applies to district bonds by application of Section 1204.001, Government Code.  The revised law omits the part of Section 6 that refers to interest rates because it duplicates Section 1204.006.  The omitted law reads:

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

Revisor's Note

(End of Subchapter)

(1)  Section 5(c), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provides that Chapter 285, Acts of the 60th Legislature, Regular Session, 1967 (Article 4494r-1, Vernon's Texas Civil Statutes), applies to the district.  The revised law omits that reference because Article 4494r-1 was codified in 1989 as Section 284.031, Health and Safety Code, and that section applies to hospital districts on its own terms.  The omitted law reads:

(c)  …  The provisions of Chapter 285, Acts of the 60th Legislature, Regular Session, 1967 (Article 4494r-1, Vernon's Texas Civil Statutes), shall apply to the district, and revenue bonds may be issued as provided in that Act.

(2)  Section 15, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, 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 15 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 15 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. 15.  All bonds issued by the district are declared to be legal and authorized investments of banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, trustees, and sinking funds of cities, towns, villages, counties, school districts, or other political subdivisions of the State of Texas and for all public funds of the State of Texas or its agencies including the state permanent school fund.  …

(3)  Section 15, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, effectively provides that district bonds may secure deposits of public funds of this state or political subdivisions of this state.  The revised law omits the provisions as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions.  The omitted law reads:

Sec. 15.  … The bonds and indebtedness shall be eligible to secure deposit of public funds of the State of Texas and public funds of cities, towns, villages, counties, school districts, or other political subdivisions or corporations of the State of Texas, and shall be lawful and sufficient security for those deposits to the extent of their value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1041.207-1041.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Revised Law

Sec. 1041.251.  IMPOSITION OF AD VALOREM TAX.  (a)  On final approval of the annual budget, the board shall impose a tax on all property in the district subject to district taxation.

(b)  The board shall impose the tax to:

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

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

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

(4)  acquire necessary sites by purchase, lease, or condemnation.  (Acts 64th Leg., R.S., Ch. 666,  Secs. 5(a) (part), (b) (part), 8(b) (part).)

Source Law

Sec. 5.  (a)  On the creation of the district, the board of directors shall levy on all property subject to hospital district taxation, for the benefit of the district, … a tax … for the purpose of:

(1)  paying the interest on and creating a sinking fund for bonds which may have been assumed or which may be issued by the hospital district for hospital purposes as herein provided;

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

(3)  making further improvements and additions to the hospital system, and for the acquisition of necessary sites, by purchase, lease, or condemnation.

(b)  … the board of directors shall levy the tax on all property inside the district which is subject to taxation and … .  The tax levied shall be collected on all property subject to hospital district taxation … .

[Sec. 8]

(b)  … on final approval of the budget the board of directors shall levy the tax as may be required and … .

Revisor's Note

(1)  Section 5(a), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provides that "[o]n the creation of the district," the board shall impose taxes.  The revised law omits the quoted language as executed.

(2)  Sections 5(a) and (b), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, require the board to impose taxes at a certain time and in a certain manner.  The revised law omits those provisions because they were repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979, which repealed all "general, local, and special laws" that conflicted with that act.  The 1979 act enacted the Property Tax Code (Title 1, Tax Code), a comprehensive, substantive codification of property tax law.  Title 1, Tax Code, provides the exclusive procedures for the imposition and collection of property taxes by a taxing unit, including a hospital district.  The omitted law reads:

(a)  … [the board of directors shall levy on all property subject to hospital district taxation, for the benefit of the district,] at the same time taxes are levied for county purposes, using county values and county tax rolls, … .

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

Revised Law

Sec. 1041.252.  TAX RATE.  The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of all taxable property in the district. (Acts 64th Leg., R.S., Ch. 666,  Sec. 5(a) (part).)

Source Law

(a)  … [the board of directors shall levy] … a tax of not to exceed 75 cents on the $100 valuation of all taxable property inside the hospital district, … .

Revisor's Note

Sections 5(b) and 8(b), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, require the board to levy the tax and to certify the tax rate to the tax assessor-collector.  The revised law omits these provisions because Section 26.05(a), Tax Code, requires the governing body of a taxing unit to adopt a tax rate for the current tax year and to notify the tax assessor of that rate.  The omitted law reads:

[Sec. 5]

(b)  … [the board of directors] … shall immediately certify the tax rate to the tax assessor and collector of the county in which the district is located… .

[Sec. 8]

(b)  … [the board of directors shall] … certify the tax rate for the year to the county tax assessor and collector of Lipscomb County as provided in Section 5 of this Act… .

Revised Law

Sec. 1041.253.  TAX ASSESSOR-COLLECTOR.  (a)  Except as provided by Subsection (b), the tax assessor-collector of Lipscomb County shall assess and collect taxes imposed by the district.

(b)  By majority vote the board may appoint a district tax assessor-collector under Section 285.041, Health and Safety Code. (Acts 64th Leg., R.S., Ch. 666, Secs. 5(b) (part), (c) (part), 8(b) (part).)

Source Law

[Sec. 5]

(b)  … [The tax levied shall be collected] … by the assessor and collector of taxes for the county … .

(c)  … The directors, by majority vote, may adopt the provisions of Chapter 595, Acts of the 62nd Legislature, Regular Session, 1971 (Article 4494r-4, Vernon's Texas Civil Statutes)… .

[Sec. 8]

(b)  … The tax assessor and collector shall assess and collect the tax.

Revisor's Note

(1)  Section 5(b), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provides that the county tax assessor-collector may charge a fee for the assessment and collection of district taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (2) to Section 1041.251.  Section 6.27(b), Tax Code,  provides for the compensation of a county tax assessor-collector assessing and collecting taxes for another taxing unit.  The omitted law reads:

(b)  …  The assessor and collector of taxes shall charge and deduct from payments to the hospital district the fees for assessing and collecting the tax at the rate of not exceeding one percent of the amounts collected as may be determined by the board of directors but in no event in excess of $5,000 for one fiscal year.  The fees shall be deposited in the county's general fund and shall be reported as fees of office of the tax assessor and collector… .

(2)  Section 5(b), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provides that interest and penalties on district taxes and discounts are the same as for county taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (2) to Section 1041.251. Chapter 33, Tax Code, provides for the assessment of penalties and interest on delinquent taxes, and Section 31.05, Tax Code, provides for discounts on the early payment of taxes.  The omitted law reads:

(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 for county taxes… .

(3)  Section 5(b), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provides that tax revenue shall be deposited in the district's depository and may be withdrawn only as provided by the act.  The revised law omits the provision regarding the deposit of tax revenue because Section 31.10, Tax Code, requires the tax assessor-collector of a taxing unit to deposit taxes collected in the unit's depository. The revised law omits the provision regarding withdrawal of tax revenue because the provisions of this chapter regarding the expenditure of district money apply according to their own terms. The omitted law reads:

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

(4)  Section 5(c), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, refers to the adoption of "the provisions of Chapter 595, Acts of the 62nd Legislature, Regular Session, 1971 (Article 4494r-4, Vernon's Texas Civil Statutes)."  That article was codified in 1989 as Section 285.041, Health and Safety Code.  The revised law is drafted accordingly.

Revisor's Note

(End of Subchapter)

Section 5(c), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provides that the district may levy taxes for the entire year in which the district is created.  The revised law omits that provision as executed.  The omitted law reads:

(c)  The board of directors may levy taxes for the entire year in which the district is created for the purpose of securing funds to initiate the operation of the hospital district and to pay assumed bonds… .

Revisor's Note

(End of Chapter)

Section 12(b), Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provides for the transfer of certain land, buildings, improvements, equipment, funds, and taxes to the district after the district is created and provides for the assumption of debt by the district on creation.  Section 17, Chapter 666, Acts of the 64th Legislature, Regular Session, 1975, provides that if a hospital district has not been created under that act before January 1, 1980, the act will no longer be in effect.  The revised law omits the provisions as executed.  The omitted law reads:

(b)  When the district is created, the county and all towns and cities located wholly or partly in the district shall convey and transfer to the district title to all land, buildings, improvements, and equipment in anywise pertaining to a hospital or hospital system located wholly within the district which may be jointly or separately owned by the county or any city or town within the district.  Operating funds and reserves for operating expenses which are on hand and funds which have been budgeted to provide medical care for residents of the district by the county or any city or town for the remainder of the fiscal year in which the district is established shall be transferred to the district, as shall taxes levied for hospital purposes for the current year and all sinking funds established for payment of indebtedness assumed by the district.  The district shall assume the outstanding indebtedness incurred by the county or any city or town within the district to provide medical care for residents of the district prior to the creation of the district.

Sec. 17.  If no hospital district has been created under this Act by January 1, 1980, then the Act will no longer be in effect.