80C112(3) CBH

 

CHAPTER 1044.  HUNT MEMORIAL HOSPITAL DISTRICT

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 1044.001.  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 Hunt Memorial 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. 1044.002.  AUTHORITY FOR OPERATION.  The Hunt Memorial Hospital District operates in accordance with Section 9, Article IX, Texas Constitution.  (Acts 60th Leg., R.S., Ch. 125, Sec. 1.)

Source Law

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

Revisor's Note

Section 1, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, authorizes the "creation, establishment, maintenance and operation" of the district.  The revised law omits "creation" and "establishment" as executed.  The revised law omits "maintenance" because, in this context, the meaning of that term is included in the meaning of "operation."

Revised Law

Sec. 1044.003.  POLITICAL SUBDIVISION.  The district is a political subdivision of this state.  (Acts 60th Leg., R.S., Ch. 125, Sec. 18 (part).)

Source Law

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

Revised Law

Sec. 1044.004.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of Hunt County.  (Acts 60th Leg., R.S., Ch. 125, Sec. 4A(f) (part).)

Source Law

(f)  … the boundaries of the district … include the entire area of Hunt County … .

Revisor's Note

Section 4A, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides procedures for expanding the originally created Greenville Hospital District to include additional territory and for electing the initial board for the expanded district.  Because the voters of Hunt County voted to expand the district countywide in 1981 and elected the initial directors at that time, the revised law omits those provisions as executed.  The omitted law reads:

Sec. 4A.  (a)  The Board of Directors of the district may order one (1) or more elections as follows:

(1)  in the entire area of Hunt County to determine whether the portion of that area not already included in the hospital district shall be included in the hospital district; or

(2)  in the entire area of the Greenville Independent School District to determine whether the portion of that area not already included in the hospital district shall be included in the hospital district.

(b)  If the Board orders an election as provided by Subsection (a)(1) of this section, the election shall be held, a Board shall be elected, and initial Board members of the expanded district serve as provided by this subsection.

(1)  The Board shall state in the order the date of the election, the place or places where the election will be held, the form of the ballot, and the presiding judge and alternate judge for each voting place.  The Board shall give notice of the election as provided by Section 2 of this Act and shall provide for clerks as in county elections.  The form of the ballot shall be in conformity with Section 61, Texas Election Code, as amended (Article 6.05, Vernon's Texas Election Code), so that ballots may be cast for or against the following proposition:  "The expansion of the boundaries of the Greenville Hospital District to include all of the area of Hunt County; providing for the levy in the added area of annual taxes at a rate not to exceed seventy-five cents (75¢) on the One Hundred Dollar ($100) valuation of all taxable property in the added area for hospital purposes and to pay that area's share of the hospital district's debt."

(2)  At the time of an election on the proposition of whether to expand the hospital district boundaries, a Board of Directors shall also be elected.  Two (2) directors shall be elected from each commissioner precinct in Hunt County, and one (1) director shall be elected from the district at large.  If the proposition to expand the district boundaries is approved, those persons who are elected shall serve as members of the Board of Directors of the Hunt Memorial Hospital District.  If the proposition is not approved, the election of directors has no effect and the members of the Greenville Hospital District Board of Directors who are incumbent on the date of the election on the proposition shall continue to serve for the remainder of their terms.

(3)  Except as provided by this subsection, all matters relating to the election of the initial Board of Directors of the Hunt Memorial Hospital District shall be carried out as provided by Section 4 of this Act.  A person desiring to have his name printed on the ballot as a candidate for director shall file with the secretary of the Board of the Greenville Hospital District, at least thirty-one (31) days before the election, a petition signed by at least twenty-five (25) qualified voters residing in Hunt County asking that his name be printed on the ballot as a candidate to represent a specific precinct area or the district at large.  A candidate for director must be a resident of Hunt County, and a candidate for director for a precinct must be a resident of that precinct.  If the proposition to expand the boundaries of the hospital district is approved, the two (2) candidates for director for each precinct who receive the highest number of votes from that precinct are the directors for that precinct, and the candidate who receives the highest number of votes from the district at large is the director for the district at large.

(4)  The terms of the directors of the Greenville Hospital District who hold office on the date of the election on the proposition of whether to expand the hospital district boundaries expire when their successors are elected and have qualified to serve as members of the Hunt Memorial Hospital District Board of Directors.  The terms of the initial members of the Board of Directors of the Hunt Memorial Hospital District from even-numbered precincts expire on the first Saturday in April of the first even-numbered year following their election.  The terms of the initial members of the Board from odd-numbered precincts and the term of the director from the district at large expire on the first Saturday in April of the first odd-numbered year following their election.

(c)  If the Board orders an election as provided by Subsection (a)(2) of this section, the election shall be held, a Board shall be elected, and initial Board members of the expanded district serve as provided by this subsection.

(1)  The Board shall state in the order the date of the election, the place or places where the election will be held, the form of the ballot, and the presiding judge and alternate judge for each voting place.  The Board shall give notice of the election as provided by Section 2 of this Act and shall provide for clerks as in county elections.  The form of the ballot shall be in conformity with Section 61, Texas Election Code, as amended (Article 6.05, Vernon's Texas Election Code), so that ballots may be cast for or against the following proposition:  "The expansion of the boundaries of the Greenville Hospital District to include all of the area of the Greenville Independent School District; providing for the levy in the added area of annual taxes at a rate not to exceed seventy-five cents (75¢) on the One Hundred Dollar ($100) valuation of all taxable property in the added area for hospital purposes and to pay that area's share of the hospital district's debt."

(2)  At the time of an election on the proposition of whether to expand the hospital district boundaries, a Board of Directors shall also be elected.  Members of the Board shall be elected in the manner provided by Section 4 of this Act.  If the proposition to expand the district boundaries is approved, those persons who are elected shall serve as members of the Board of Directors of the expanded Greenville Hospital District.  If the proposition is not approved, the election of directors has no effect and the members of the Greenville Hospital District Board of Directors who are incumbent on the date of the election on the proposition shall continue to serve for the remainder of their terms.

(3)  The terms of directors of the Greenville Hospital District who hold office on the date of the election on the proposition of whether to expand the hospital district boundaries expire when their successors are elected and have qualified to serve as members of the expanded hospital district.  The terms of initial members of the Board of the expanded district elected to positions numbered one (1) through five (5) serve for terms expiring the first Saturday in April of the second year after the year in which they are elected and until their successors are elected and have qualified.  The terms of directors of initial members of the Board of the expanded district elected to positions numbered six (6) through nine (9) serve for terms expiring the first Saturday in April of the first year after the year in which they are elected and until their successors are elected and have qualified.

(d)  An election under this section may not be held on the first Saturday in April.

(e)  Section 9b, Texas Election Code, as amended (Article 2.01b, Vernon's Texas Election Code), does not apply to an election held under this section.

(f)  The Board shall canvass the returns and declare the result of an election held under this section.  If a majority of the qualified voters voting on the question favor the proposition, [the boundaries of the district] are expanded to [include the entire area of Hunt County] or of the Greenville Independent School District as it exists on the effective date of this section, depending on the proposition submitted.

(g)  The Board may not hold an election under this section sooner than the first anniversary of another election under this section on the same proposition.

(h)  This section and Section 1A of this Act expire September 1, 1986, unless the boundaries of the district are expanded by an election held under this section before that date.

Revised Law

Sec. 1044.005.  CORRECTION OF INVALID PROCEDURES.  If a court holds that any procedure under this chapter violates the constitution of this state or of the United States, the district by resolution may provide an alternative procedure that conforms with the constitution.  (Acts 60th Leg., R.S., Ch. 125, Sec. 21 (part); Acts 61st Leg., R.S., Ch. 853, Sec. 2 (part).)

Source Law

[Acts 60th Leg., R.S., Ch. 125]

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

[Acts 61st Leg., R.S., Ch. 853]

Sec. 2… . [Federal or State Constitutions] … .  Where any procedure hereunder may be held by any court to be violative of either of such constitutions, the district shall have the power by resolution to provide an alternate procedure conformable with such constitutions… .

Revisor's Note

Section 21, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, and Section 2, Chapter 853, Acts of the 61st Legislature, Regular Session, 1969, provide that the acts do not violate the federal or state constitution and require that action under those acts comply with the constitutions.  The revised law omits the references to the federal constitution because, under the Supremacy Clause of the United States Constitution (Clause 2, Article VI), federal law always takes precedence over a state statute.  The revised law also omits the references to the Texas Constitution because the state cannot modify constitutional requirements by statute.  The omitted law reads:

[Acts 60th Leg., R.S., Ch. 125]

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

[Acts 61st Leg., R.S., Ch. 853]

Sec. 2.  Nothing in this Act shall be construed to violate any provision of the Federal or State Constitutions, and all acts done under this Act shall be in such manner as will conform thereto, whether expressly provided or not… .

Revised Law

Sec. 1044.006.  PUBLIC PURPOSE; TAX EXEMPTION.  All property owned by the district:

(1)  shall be held for public purposes; and

(2)  is exempt from taxation of every character.  (Acts 60th Leg., R.S., Chapter 125, Sec. 18 (part).)

Source Law

Sec. 18.  …  In addition, all property owned by said district shall be held for public purposes and shall be exempt from taxation of every character.

[Sections 1044.007-1044.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1044.051.  BOARD ELECTION; TERM.  (a)  The board consists of nine directors elected as follows:

(1)  two directors elected from each county commissioners precinct; and

(2)  one director elected from the district at large.

(b)  The two candidates from each county commissioners precinct receiving the highest number of votes from that precinct are elected as directors from that precinct.  The candidate from the district at large receiving the highest number of votes from the district at large is elected as the director from the district at large.

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

(1)  directors serve staggered two-year terms;

(2)  the terms of directors elected from each odd-numbered county commissioners precinct expire in odd-numbered years; and

(3)  the terms of directors elected from each even-numbered county commissioners precinct and from the district at large expire in even-numbered years.

(d)  The board shall provide for clerks as in county elections.

(e)  The board shall enter an order declaring the results of the election.  (Acts 60th Leg., R.S., Ch. 125, Secs. 3 (part), 4 (part).)

Source Law

Sec. 3.  The Board of Directors consists of nine members who serve staggered, two-year terms with two (2) directors elected from each commissioner precinct in Hunt County and one (1) director elected from the district at large.  Of the candidates running for director from a precinct, the two (2) receiving the highest number of votes from each precinct are the directors for that precinct, and the candidate receiving the highest number of votes from the district at large is the director for the district at large.  The terms of directors from odd-numbered precincts expire in odd-numbered years and the terms of directors from even-numbered precincts and the district at large expire in even-numbered years… .

Sec. 4.  The Board of Directors shall … provide for clerks as in county elections… .  the Board … shall enter an order declaring the winner in each race.

 …

Revisor's Note

(1)  Section 3, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that the 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 directors 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.

(2)  Section 3, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that directors' elections are 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 held its general election of officers on the first Saturday in April to hold that election on a uniform election date in May or to choose a different uniform election date on which to hold the election.  The omitted law reads:

Sec. 3.  …  All elections of directors shall be held on the first Saturday in April… .

(3)  Section 4, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, requires the board to order the directors' election.  The revised law omits that provision because it duplicates Section 3.004, Election Code, applicable to the district under Section 1.002, Election Code.  Section 3.004 requires the governing body of a political subdivision that has elective officers to order the general election for those officers.  The omitted law reads:

Sec. 4.  [The Board of Directors shall] order an election and … .

(4)  Section 4, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, requires the board to canvass the returns of a directors' election.  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.  The omitted law reads:

Sec. 4.  …  Within ten (10) days after each director election, [the Board] shall canvass the returns thereof and … .

(5)  Section 4, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that the directors serve until their successors are elected or appointed and qualify.  The revised law omits that provision because it duplicates Section 17, Article XVI, Texas Constitution, which provides that an officer in this state is to continue to perform the officer's official duties until a successor has qualified.  The omitted law reads:

Sec. 4.  …  All members of the Board of Directors of the district shall serve as directors until their respective successors shall be elected or appointed, as required by this Act, and shall qualify.

…

Revised Law

Sec. 1044.052.  NOTICE OF ELECTION.  At least 10 days before the date of an election of directors, notice of the election shall be published at least one time in a newspaper of general circulation in the district.  (Acts 60th Leg., R.S., Ch. 125, Sec. 4 (part).)

Source Law

Sec. 4.  … Notice of each director election shall be published in a newspaper of general circulation in the district at least one (1) time at least ten (10) days prior to the date of election… .

Revised Law

Sec. 1044.053.  BALLOT PETITION.  A person who wants to have the person's name printed on the ballot as a candidate for director must file with the board secretary a petition requesting that action.  The petition must:

(1)  be signed by at least 25 registered voters who reside in the district;

(2)  be filed at least 31 days before the date of the election; and

(3)  specify the county commissioners precinct the candidate wants to represent or specify that the candidate wants to represent the district at large.  (Acts 60th Leg., R.S., Ch. 125, Sec. 3 (part).)

Source Law

Sec. 3.  …  A person desiring to have his name printed on the ballot as a candidate for director shall file with the secretary of the Board at least thirty-one (31) days before the election a petition signed by at least twenty-five (25) qualified voters residing in the district asking that his name be printed on the ballot as a candidate to represent a specific precinct area or the district at large… .

Revisor's Note

Section 3, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, refers to "qualified voters" residing in the district.  The revised law substitutes "registered voters" for the quoted language because in  the context of eligibility to sign a petition, Section 277.0021, Election Code, provides that "qualified voter" means "registered voter."

Revised Law

Sec. 1044.054.  QUALIFICATIONS FOR CANDIDACY.  (a)  A person may not be a candidate for director from the district at large unless the person is a qualified voter of the district.

(b)  A person may not be a candidate for director for a county commissioners precinct unless the person is a qualified voter of that precinct.  (Acts 60th Leg., R.S., Ch. 125, Sec. 3 (part).)

Source Law

Sec. 3.  …  A candidate for director from the district at large must be a qualified voter of the district.  A candidate for director for a precinct must be a qualified voter of that precinct.

Revised Law

Sec. 1044.055.  BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF OFFICE.  (a)  Each director shall execute a good and sufficient bond for $1,000 that is:

(1)  payable to the district; and

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

(b)  Each director's bond and constitutional oath or affirmation of office shall be deposited with the district's depository bank for safekeeping.  (Acts 60th Leg., R.S., Ch. 125, Sec. 4 (part).)

Source Law

Sec. 4.  …  Each member of the Board of Directors shall qualify by executing the constitutional oath of office and shall execute a good and sufficient bond for One Thousand Dollars ($1,000) payable to said district conditioned upon the faithful performance of his duties, and such oaths and bonds shall be deposited with the depository bank of the district for safekeeping.

…

Revisor's Note

Section 4, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, requires each director to take the constitutional oath of office.  The revised law omits that provision because Section 1, Article XVI, Texas Constitution, requires all officers in this state to take the oath (or affirmation) before assuming office.  In addition, the revised law provides for the deposit of the constitutional affirmation, as well as the constitutional oath, because Section 1, Article XVI, Texas Constitution, permits an officer in this state to take either the constitutional oath or affirmation.

Revised Law

Sec. 1044.056.  BOARD VACANCY.  If a vacancy occurs on the board, the majority of the remaining directors shall appoint a director for the unexpired term.  (Acts 60th Leg., R.S., Ch. 125, Sec. 4 (part).)

Source Law

Sec. 4.  …  All vacancies on the Board of Directors shall be filled for the unexpired term of the place or places becoming vacant by a majority of the remaining members of the Board of Directors… .

Revisor's Note

Section 4, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides for filling a vacancy for the unexpired term "of the place or places becoming vacant."  The revised law omits the quoted language because, in context, it is clear that the reference to the unexpired term can refer only to the term of the vacant board office.

Revised Law

Sec. 1044.057.  OFFICERS.  The board shall elect:

(1)  a president and a secretary from among its members; and

(2)  any other officers the board requires. (Acts 60th Leg., R.S., Ch. 125, Sec. 4 (part).)

Source Law

Sec. 4.  …  The Board of Directors shall organize by electing one of their number as president and one of their number as secretary, together with such other officers as the Board shall require… .

Revised Law

Sec. 1044.058.  COMPENSATION; EXPENSES.  A director serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties on approval of the expenses by the board.  (Acts 60th Leg., R.S., Ch. 125, Sec. 4 (part).)

Source Law

Sec. 4.  …  All members of the Board of Directors shall serve without compensation but may be reimbursed for actual expenses incurred in the performance of their official duties upon the approval of such expenses by the Board of Directors.

Revised Law

Sec. 1044.059.  VOTING REQUIREMENT.  A concurrence of a majority of the directors present is sufficient in any matter relating to district business.  (Acts 60th Leg., R.S., Ch. 125, Sec. 4 (part).)

Source Law

Sec. 4.  … [Board of Directors] … a concurrence of a majority present shall be sufficient in all matters pertaining to the business of the district… .

Revisor's Note

Section 4, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that a majority of directors constitutes a quorum.  The revised law omits that provision because it duplicates Section 311.013, Government Code (Code Construction Act), which provides that a quorum of a public body is a majority of the number of members fixed by statute.  The omitted law reads:

Sec. 4.  …  A majority of the members of the Board of Directors shall constitute a quorum and … .

Revised Law

Sec. 1044.060.  EMPLOYEES.  The board may employ a general manager, attorneys, bookkeepers, architects, or any other employees or consultants considered necessary for the efficient financing, development, and operation of the district.  (Acts 60th Leg., R.S., Ch. 125, Sec. 9 (part).)

Source Law

Sec. 9.  The Board of Directors of such district … may employ a general manager, attorneys, bookkeepers, architects, and any other employees or consultants deemed necessary for the efficient financing, development and operation of the hospital district.

…

Revised Law

Sec. 1044.061.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.  Except as provided by Section 1044.055, all district records, including books, accounts, notices, minutes, and all other matters of the district and the operation of its facilities, shall be:

(1)  maintained at the district office; and

(2)  open to public inspection at the district office at all reasonable hours.  (Acts 60th Leg., R.S., Ch. 125, Sec. 9 (part).)

Source Law

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

…

Revisor's Note

Section 9, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, states that records shall be maintained at the district office "except as herein provided."  For the convenience of the reader, the revised law substitutes a reference to Section 1044.055, which is the only exception provided in Chapter 125.

Revised Law

Sec. 1044.062.  SEAL.  The board may adopt a seal for the district.  (Acts 60th Leg., R.S., Ch. 125, Sec. 9 (part).)

Source Law

Sec. 9.  The Board of Directors of such district … shall have the power to adopt a seal for such district; and … .

[Sections 1044.063-1044.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1044.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for providing medical and hospital care for the district's needy and indigent residents. (Acts 60th Leg., R.S., Ch. 125, Secs. 2, 14 (part).)

Source Law

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

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

Revisor's Note

Sections 2 and 14, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provide that the district "shall assume" full responsibility for providing medical and hospital care for the district's needy and indigent residents, and Section 14 provides that the district shall assume that responsibility "from the date that taxes are collected for the hospital district."  The revised law substitutes "has" for "shall assume" because the duty to assume the responsibility is executed.  The revised law omits "from the date that taxes are collected for the hospital district" as executed.

Revised Law

Sec. 1044.102.  RESTRICTION ON POLITICAL SUBDIVISION TAXATION.  Hunt County or a political subdivision with boundaries that overlap the district's boundaries may not impose a tax on property in the district for hospital purposes.  (Acts 60th Leg., R.S., Ch. 125, Sec. 14 (part).)

Source Law

Sec. 14.  Except as herein provided, neither Hunt County, nor any city or town or other political subdivision whose boundaries overlap those of the district, shall levy any tax against any property within the district authorized herein for hospital purposes; and … .

Revisor's Note

(1)  Section 14, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, states that "[e]xcept as herein provided," certain political subdivisions may not levy a tax for hospital purposes.  The revised law omits the quoted language because the act does not provide an exception.  In addition, throughout this chapter, the revised law substitutes "impose" for "levy" because, in context, the terms are synonymous and "impose" is more commonly used.

(2)  Section 14, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, refers to a "city or town or other political subdivision."  The revised law omits the references to "city" and "town" because "city" and "town" are included in the meaning of "political subdivision."

Revised Law

Sec. 1044.103.  MEDICAL FACILITIES; LEGISLATIVE INTENT.  It is the intent of the legislature that the people of Hunt County be provided with the best and most modern health care available.  To achieve that intent, the district may provide a medical facility in the city of Commerce and in other areas of Hunt County if the board finds that providing a facility is feasible and in the best interest of district residents.  (Acts 60th Leg., R.S., Ch. 125, Sec. 1A.)

Source Law

Sec. 1A.  It is the intention of the Legislature that the people of Hunt County be provided with the best and most modern health care available.  Toward that end, if the Greenville Hospital District becomes the Hunt Memorial Hospital District through the expansion of district boundaries, the Board of Directors of the district may provide a medical facility in the City of Commerce and in other areas of Hunt County if the Board finds that providing a facility is feasible and in the best interest of district residents.

Revisor's Note

Section 1A, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, authorizes the district to provide certain medical facilities if the Greenville Hospital District becomes the Hunt Memorial Hospital District through expansion of the district's boundaries.  The revised law omits the reference to this contingency for the reason stated in the revisor's note to Section 1044.004.

Revised Law

Sec. 1044.104.  RULES.  (a)  The board may adopt rules governing the operation of the district, including district facilities.

(b)  On approval by the board, the rules may be published in booklet form at district expense and made available to any taxpayer on request.  (Acts 60th Leg., R.S., Ch. 125, Sec. 9 (part).)

Source Law

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

Revisor's Note

(1)  Section 9, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, refers to "rules and regulations."  The revised law omits "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

(2)  Section 9, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that the board may adopt rules that "shall supplement but shall not contravene any of the provisions of this Act."  The revised law omits the quoted language because, under established principles of law, the board is not authorized to take any action contrary to the laws of this state.

(3)  Section 9, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, refers to publishing rules in "booklet or pamphlet form." The revised law omits "pamphlet" because, in context, the meaning of "pamphlet" is included in the meaning of "booklet."

Revised Law

Sec. 1044.105.  PURCHASING AND ACCOUNTING PROCEDURES.  (a)  The board may prescribe the method and manner of making purchases and expenditures by and for the district.

(b)  The board shall prescribe:

(1)  all accounting and control procedures; and

(2)  the method of purchasing necessary supplies, materials, and equipment.  (Acts 60th Leg., R.S., Ch. 125, Sec. 9 (part).)

Source Law

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

Revised Law

Sec. 1044.106.  EMINENT DOMAIN.  (a)  The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property, real, personal, or mixed, located in district territory, if the interest is necessary or convenient for the district to exercise a right, power, privilege, or function conferred on the district by this chapter.

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

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

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

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

(3)  provide a bond for costs or a supersedeas bond on an appeal or writ of error.  (Acts 60th Leg., R.S., Ch. 125, Sec. 11.)

Source Law

Sec. 11.  The district shall have the right and power of eminent domain for the purpose of acquiring by condemnation any and all property of any kind or character, real, personal or mixed, or any interest therein, including outright ownership of such property in fee simple absolute, within the boundaries of the said district, necessary or convenient to the exercise of the rights, power, privileges and functions conferred upon it by this Act, in the manner provided by General Law with respect to condemnation by counties; provided that the said district shall not be required to make deposits in the registry of the trial court of the sum required by paragraph No. 2 in Article 3268, Vernon's Texas Civil Statutes, nor to make the bond required therein.  In condemnation proceedings being prosecuted by the said district, the district shall not be required to pay in advance or to give bond or other security for costs in the trial court, nor to give any bond otherwise required for the issuance of a temporary restraining order or a temporary injunction relating to a condemnation proceeding, nor to give bond for costs or for supersedeas on any appeal or writ of error proceeding to any Court of Civil Appeals, or to the Supreme Court.

Revisor's Note

(1)  Section 11, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that the district has the "right and power of eminent domain for the purpose of acquiring [property] by condemnation." The revised law substitutes for the quoted language "may exercise the power of eminent domain to acquire [property]" because the phrases have the same meaning and the latter phrase is consistent with modern usage in laws relating to eminent domain.

(2)  Section 11, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that the district must exercise the power of eminent domain in the manner provided by "General Law with respect to condemnation by counties." The revised law substitutes for the quoted language a reference to Chapter 21, Property Code, because that is the general law governing eminent domain for governmental entities, including counties.

(3)  Section 11, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, refers to Paragraph 2, V.A.C.S. Article 3268. That statute was codified in 1983 as Section 21.021(a), Property Code, and the revised law is drafted accordingly.

(4)  Section 11, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that the district is not required to provide bond on any appeal or writ of error proceedings to "any Court of Civil Appeals, or to the Supreme Court." The revised law omits the references to the courts because those are the only courts to which the district may appeal or apply for a writ of error.

Revised Law

Sec. 1044.107.  GIFTS AND ENDOWMENTS.  The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district.  (Acts 60th Leg., R.S., Ch. 125, Sec. 16.)

Source Law

Sec. 16.  The Board of Directors of the hospital district is authorized on behalf of said hospital district to accept donations, gifts and endowments for the hospital district to be held in trust and administered by the Board of Directors for such purposes and under such direction, limitations, and provisions as may be prescribed in writing by donor, not inconsistent with proper management and objects of the hospital district.

Revisor's Note

Section 16, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, refers to "donations" and "gifts."  The revised law omits "donations" because "donations" is included in the meaning of "gifts."

Revised Law

Sec. 1044.108.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient who resides in the district is admitted to a district facility, the board shall have an inquiry made into the circumstances of:

(1)  the patient; and

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

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

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

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

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

(1)  resolve the dispute or doubt; and

(2)  issue an appropriate order.

(f)  Either party to the dispute may appeal the order to the district court.  (Acts 60th Leg., R.S., Ch. 125, Sec. 15.)

Source Law

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

Revised Law

Sec. 1044.109.  AUTHORITY TO SUE AND BE SUED.  As a governmental agency, the district may sue and be sued in its own name in any court of this state.  (Acts 60th Leg., R.S., Ch. 125, Sec. 18 (part).)

Source Law

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

Revisor's Note

(End of Subchapter)

Section 13, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides authority for the "State Board of Health or any state board of charities (or public welfare)" to inspect hospital district facilities and records.  The revised law omits Section 13 because various state laws, including Chapters 222 and 241, Health and Safety Code, provide the necessary inspection authority to appropriate state agencies.  The omitted law reads:

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

[Sections 1044.110-1044.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1044.151.  BUDGET.  The board annually shall require a budget to be prepared for the next fiscal year that includes:

(1)  proposed expenditures and disbursements;

(2)  estimated receipts and collections; and

(3)  the amount of taxes required to be imposed for the year.  (Acts 60th Leg., R.S., Ch. 125, Sec. 10 (part).)

Source Law

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

Revisor's Note

Section 10, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, refers to taxes "levied and collected."  The revised law substitutes "impose" for the quoted language because "impose" is the term generally used in Title 1, Tax Code, and includes the levying and collection of an ad valorem tax.

Revised Law

Sec. 1044.152.  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 Hunt County not later than the 10th day before the date of the hearing.

(c)  Any district taxpayer is entitled to:

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

(2)  be heard regarding any item included in the proposed budget.  (Acts 60th Leg., R.S., Ch. 125, Sec. 10 (part).)

Source Law

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

Revisor's Note

Section 10, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, requires notice of the budget hearing to be published in "the county."  Throughout this chapter, the revised law substitutes "Hunt County" for the quoted language because Hunt County is the county in which the district is located.

Revised Law

Sec. 1044.153.  FISCAL YEAR.  The district operates on a fiscal year that begins on October 1 and ends on September 30.  (Acts 60th Leg., R.S., Ch. 125, Sec. 10 (part).)

Source Law

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

Revised Law

Sec. 1044.154.  ANNUAL AUDIT.  (a)  The board annually shall have an independent audit made of the district's books and records for the fiscal year.

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

(1)  with the comptroller; and

(2)  at the district office.  (Acts 60th Leg., R.S., Ch. 125, Sec. 10 (part).)

Source Law

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

…

Revisor's Note

Section 10, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, refers to "the Comptroller of Public Accounts of the State of Texas."  The revised law substitutes "comptroller" for the quoted language because Section 403.001, Government Code, defines "comptroller" in any state statute to mean the comptroller of public accounts of the State of Texas.

Revised Law

Sec. 1044.155.  DEPOSITORY.  (a)  The board by resolution shall designate a bank in Hunt County as the district's depository.  A designated bank serves for five years until a successor is designated.

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

(c)  All district money shall be secured in the manner provided for securing county funds.  (Acts 60th Leg., R.S., Ch. 125, Secs. 5 (part), 12.)

Source Law

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

…

Sec. 12.  The directors of the district shall by resolution designate a bank within the county in which the district is located as the district's depository 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 five years until a successor has been named.

[Sections 1044.156-1044.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Revised Law

Sec. 1044.201.  GENERAL OBLIGATION BONDS.  The board may issue and sell general obligation bonds in the name and on the faith and credit of the district for any purpose relating to:

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

(2)  equipping buildings or improvements for hospital purposes.  (Acts 60th Leg., R.S., Ch. 125, Sec. 6 (part).)

Source Law

Sec. 6.  The Board of Directors, in addition to any bonds initially authorized at the election authorizing the creation of said district, shall have the power and authority to issue and sell, from time to time, as the obligations of such hospital district, and in the name and upon the faith and credit of such hospital district, bonds for the purchase, construction, acquisition, repair or renovation of buildings and improvements and equipping the same for hospital purposes, … for any or all of such purposes; … .

Revisor's Note

(1)  Section 6, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that the board has the power and authority to issue and sell bonds in the name and on the faith and credit of the district.  Because the type of bonds described by Section 6 are known as "general obligation bonds," the revised law is drafted accordingly.

(2)  Section 6, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, states that the board may issue and sell general obligation bonds "from time to time."  The revised law omits the quoted language because the authority to take an action implies the authority to do so at any time.

(3)  Section 6, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, refers to issuing general obligation bonds for certain hospital facilities.  The revised law omits that provision because the revised law authorizes the issuance of bonds generally for any hospital facility.  The omitted law reads:

Sec. 6.  …  including, but not limited to, purchasing, and from time to time improving, repairing, renovating and equipping, the hospital facilities contemplated under Section 8 of this Act, and … .

(4)  Section 6, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that the district may not issue general obligation bonds until the district has made provision for the repayment of certain bonds.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 6.  …  It is provided, however, that the district shall not deliver any of its tax-supported bonds until such time as the district shall have made provision for the payment or retirement of any outstanding revenue bonds of any City Hospital Authority organized under Article 4437e, Vernon's Texas Civil Statutes, and operating within the district.  Such provision may be made (a) by issuing district bonds for cash so as to purchase the facilities of such authority for such price as may be necessary to pay the authority's bonds and any premiums required by the bondholder to prepay the same prior to maturity or option date, and the payment thereof by the authority; or (b) by obtaining the consent of the holders of such bonds to a purchase of the authority's hospital facilities as authorized by Section 8 hereof and continuing the pledge of the revenues securing the authority's revenue bonds; or (c) by exchanging district bonds for such outstanding revenue bonds or refunding them with district bonds, and purchasing such authority's facilities in either such manner; or (d) by purchasing such facilities with the proceeds from the sale of district bonds and making firm banking arrangements for such revenue bonds by depositing into the interest and sinking fund from which such revenue bonds are payable an amount necessary, including interest and principal, and without accounting for investment, to pay and retire such revenue bonds as they come due or mature but not longer than the earliest option date; or (e) any combination of the foregoing … .

Revised Law

Sec. 1044.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  The board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on general obligation bonds issued by the district under Section 1044.201 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 60th Leg., R.S., Ch. 125, Sec. 6 (part).)

Source Law

Sec. 6.  …  provided, that a sufficient tax shall be levied to create an interest and sinking fund to pay the interest and principal as same matures, providing said tax together with any other taxes levied for said district shall not exceed seventy-five cents (75¢) on the One Hundred Dollar ($100) valuation in any one (1) year… .

Revisor's Note

Section 6, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, requires the district to impose a tax to pay the principal of and interest on bonds.  The revised law specifies that the tax is an "ad valorem" tax because it is clear from the source law that the tax is a property tax, and "ad valorem" is the term most commonly used to refer to a property tax.

Revised Law

Sec. 1044.203.  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 in an election held for that purpose.

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

(c)  The order calling the election must specify:

(1)  the date of the election;

(2)  the location of the polling places;

(3)  the presiding election officers;

(4)  the purpose of the bond issuance;

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

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

(7)  the maximum maturity of the bonds.

(d)  Notice of a bond election shall be given by publishing a substantial copy of the order calling the election in a newspaper of general circulation in the district once each week for two consecutive weeks before the date of the election.  The first publication must occur at least 14 days before the date of the election.  (Acts 60th Leg., R.S., Ch. 125, Sec. 6 (part).)

Source Law

Sec. 6.  …  In addition no bonds shall be issued by such hospital district (except refunding bonds refunding prior issued district bonds) until authorized by a majority vote of the resident qualified electors who own taxable property within the district and who have duly rendered the same for taxation voting at an election called and held for such purpose.  Such election, other than for any bonds to be voted at the election held creating the district, may be called by the Board of Directors on its own motion, and the order calling said election shall specify the date of the election, the place or places where the election shall be held, the presiding officers thereof, the purpose for which the bonds are to be issued, the amount thereof, the maximum interest rate (not to exceed six percent (6%) per annum) and the maximum maturity date of such bonds … .  Notice of election shall be given by publishing a substantial copy of the order calling the election in a newspaper of general circulation in the district once a week for two (2) consecutive weeks prior to the date of election, the date of the first publication being at least fourteen (14) full days prior to the date set for the election… .

Revisor's Note

(1)  Section 6, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that "no bonds … (except refunding bonds refunding prior issued district bonds)" may be issued without an election.  The revised law omits the exception for refunding bonds because Chapter 1207, Government Code, provides general authority for an issuer, including a hospital district, to issue refunding securities, and Section 1207.003, Government Code, authorizes an issuer to issue refunding bonds without an election.

(2)  Section 6, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, refers to a majority vote of the resident "qualified electors who own taxable property within the district and who have duly rendered the same for taxation."  The revised law omits the reference to "qualified electors" as unnecessary in this context because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "qualified" voters who are residents of the territory covered by the election to vote in an election.  The revised law substitutes "voter" for "elector" because the former is the term used in the Election Code.  In addition, the revised law omits the reference to voters "who own taxable property within the district and who have duly rendered the same for taxation" because in Hill v. Stone, 421 U.S. 289, 95 S. Ct. 1637 (1975), the United States Supreme Court determined that property ownership as a qualification for voting is an unconstitutional denial of equal protection.

(3)  Section 6, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that the district may not issue general obligation bonds until authorized by an election "called and held" for that purpose.  The revised law omits the reference to "calling" an election because, in this context, "calling" an election is included in the meaning of "holding" an election.  Under Chapter 3, Election Code, all elections must be ordered (called) before they may be held.

(4)  Section 6, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, authorizes the board to call an election for the issuance of bonds "other than for any bonds to be voted at the election held creating the district."  The revised law omits the quoted language as executed.

(5)  Section 6, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that the ballot proposition must include the maximum interest rate "not to exceed six percent (6%) per annum."  The revised law omits the quoted language because it has been superseded by the enactment of the maximum interest rate provision found in Section 1204.006, Government Code.  That section reflects the 1981 amendment of Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes, now Chapter 1204, Government Code), by Section 1, Chapter 61, Acts of the 67th Legislature, Regular Session, 1981, and permits a public agency, including a hospital district, to issue public securities at any net effective interest rate of 15 percent or less.  Section 1204.006, Government Code, applies to district bonds by application of Section 1204.001, Government Code.

(6)  Section 6, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, requires the district to pay the costs of elections other than the costs of the election creating the district.  The revised law omits the provision because it duplicates Section 1.014, Election Code, applicable to the district under Section 1.002 of that code.  The revised law omits the reference to the election creating the district as executed.  The omitted law reads:

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

…

Revised Law

Sec. 1044.204.  MATURITY OF GENERAL OBLIGATION BONDS.  District general obligation bonds must mature not later than 40 years after the date of issuance.  (Acts 60th Leg., R.S., Ch. 125, Sec. 6 (part).)

Source Law

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

Revised Law

Sec. 1044.205.  EXECUTION OF GENERAL OBLIGATION BONDS.  (a)  The board president shall execute the general obligation bonds in the district's name.

(b)  The board secretary shall countersign the bonds.  (Acts 60th Leg., R.S., Ch. 125, Sec. 6 (part).)

Source Law

Sec. 6.  …  Such bonds shall be executed in the name of the hospital district and on its behalf by the president of the Board of Directors and countersigned by the secretary of the Board of Directors, and … .

Revisor's Note

(End of Subchapter)

(1)  Section 6, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that district bonds are subject to the law governing counties that relates to bond approval by the attorney general and registration of the bonds by the comptroller. Section 6 also provides that after approval and registration the bonds are "incontestable for any cause." The revised law omits these provisions as superseded by Chapter 1202, Government Code (enacted as Article 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987).  Section 1202.003(a), Government Code, requires bonds to be submitted to the attorney general.  Section 1202.003(b), Government Code, provides for approval of the bonds by the attorney general and requires the attorney general to submit the approved bonds to the comptroller for registration. Section 1202.005, Government Code, requires registration of the bonds by the comptroller.  Section 1202.006, Government Code, provides that after approval and registration the bonds are incontestable and binding obligations.  Chapter 1202, Government Code, applies to district bonds by application of Section 1202.001, Government Code.  The omitted law reads:

Sec. 6.  …  [Such bonds] … shall be subject to the same requirements in the matter of approval thereof by the Attorney General of the State of Texas and the registration thereof by the Comptroller of Public Accounts of the State of Texas as are by law provided for such approval and registration of bonds of counties of this state.  Upon the approval of such bonds by the Attorney General of Texas and registration by the Comptroller the same shall be incontestable for any cause. …

(2)  Section 6, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that district bonds may be made optional for redemption before maturity.  The revised law omits that provision because Section 1201.021, Government Code, provides that a public security may be issued as redeemable before maturity at one or more specified times.  Section 1201.021, Government Code, applies to district bonds by application of Section 1201.002, Government Code.  The omitted law reads:

Sec. 6.  …  The bonds of the district may be made optional for redemption prior to their maturity date at the discretion of the Board of Directors.

…

(3)  Section 6, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, authorizes the district to issue refunding bonds for bonds issued under that act.  The revised law omits that provision for the reason stated in Revisor's Note (1) to Section 1044.203.  Section 6 also provides that refunding bonds issued under Section 6 must bear interest at the same rate or a lower rate than the bonds being refunded unless the refunding will result in a lower total amount of interest paid.  The revised law omits that provision for the reason stated in Revisor's Note (5) to Section 1044.203.  The omitted law reads:

Sec. 6.  …  The district may without an election issue bonds of the district to refund and pay off any validly issued and outstanding bonds heretofore or hereafter issued by the district, and any bonds or other obligations assumed by it hereunder, provided any such refunding bonds shall bear interest at the same rate or at a lesser rate than the bonds being refunded unless it be shown mathematically that a savings will result in the total amount of interest to be paid.  If the district assumes any revenue bonds, it may refund them with the same authority and in the same manner as is provided by law for the original issue of such bonds.

(4)  Section 17, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that district bonds are legal and authorized investments for certain entities.  The revised law omits the provision as unnecessary.  As to several of the entities listed, Section 17 has been superseded and impliedly repealed.  Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)).  Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by building and loan associations (now called savings and loan associations) are regulated by Sections 63.002 and 64.001, Finance Code.  As to the remaining entities listed, Section 17 is superseded by Section 1201.041, Government Code, enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes).  Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code.  The revised law omits the reference to sinking funds of this state because it has been superseded by Section 404.024, Government Code (enacted in 1985 as Section 2.014, Treasury Act (Article 4393-1, Vernon's Texas Civil Statutes)), which governs the investment of state funds. Section 404.024(b)(10), Government Code, authorizes the investment of state funds in obligations of political subdivisions, including hospital districts.  The omitted law reads:

Sec. 17.  All bonds issued by or assumed by the district authorized to be established and created under the provisions of this Act shall be and are declared to be legal and authorized investments for banks, savings banks, trust companies, building and loan associations, insurance companies, fiduciaries, trustees, and for the sinking funds of cities, towns, villages, counties, school districts, or other political corporations or subdivisions of the State of Texas; and … .

(5)  Section 17, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, effectively provides that district bonds may secure deposits of public funds of this state or political subdivisions of this state.  Although Section 17 does not specifically mention the deposits the bonds are eligible to secure, the only deposits they could secure would be deposits of public funds of this state or political subdivisions of this state.  As such, the revised law omits the provision as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions.  The omitted law reads:

Sec. 17.  …  such bonds shall be lawful and sufficient security for deposits of such agencies and of the State of Texas to the extent of their face value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1044.206-1044.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Revised Law

Sec. 1044.251.  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 and other obligations issued or assumed by the district for hospital purposes;

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

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

(4)  acquire necessary sites for the hospital system by purchase, lease, or condemnation.  (Acts 60th Leg., R.S., Ch. 125, Secs. 5 (part), 10 (part).)

Source Law

Sec. 5.  The Board of Directors of said hospital district shall have the power and authority and it shall be their duty to levy on all property subject to hospital district taxation for the benefit of the district a tax … [of all taxable property] within the hospital district, for the purpose of (1) paying the interest on and creating a sinking fund for bonds and other obligations which may be issued or assumed by the hospital district for the hospital purposes as herein provided; (2) providing for the operation and maintenance of the hospital district and hospital system; and (3) for the purpose of making further improvements and additions to the hospital system and for the acquisition of necessary sites therefor by purchase, lease or condemnation.

… the taxes of the district … on all property subject to taxation, … .

… the Board of Directors shall levy the tax on all taxable property within the district which is subject to hospital district taxation and … .

Sec. 10.  …  upon final approval of the budget the Board of Directors shall levy such tax as may be required and … .

Revisor's Note

(1)  Section 5, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that the City of Greenville's tax rolls constitute tax rolls of the district until district tax rolls are prepared.  That provision is omitted as executed.  The omitted law reads:

Sec. 5.  …  The tax rolls of the City of Greenville, Texas, shall constitute the tax rolls of the district until tax rolls shall be prepared by or for the district… .

(2)  Section 5, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, states that October 1 is the date by which the board shall impose taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979, which repealed all "general, local, and special laws" that conflicted with that act.  The 1979 act enacted the Property Tax Code (Title 1, Tax Code), a comprehensive, substantive codification of property tax law.  Section 26.05, Tax Code, provides dates the board must comply with in imposing property taxes.  The omitted law reads:

Sec. 5.  …  Not later than October 1st of each year, … .

Revised Law

Sec. 1044.252.  TAX RATE.  The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of all taxable property in the district.  (Acts 60th Leg., R.S., Ch. 125, Sec. 5 (part).)

Source Law

Sec. 5.  [The Board … shall … levy …] a tax of not to exceed seventy-five cents (75¢) on the One Hundred Dollar ($100.00) valuation of all taxable property within the hospital district … .

Revised Law

Sec. 1044.253.  TAX ASSESSOR-COLLECTOR.  The board may:

(1)  appoint a tax assessor-collector for the district; or

(2)  contract with the tax assessor-collector of Hunt County, the City of Greenville, or the Greenville Independent School District for the assessment or collection, or the assessment and collection, of taxes.  (Acts 60th Leg., R.S., Ch. 125, Secs. 5 (part), 10 (part).)

Source Law

Sec. 5.  … The district may appoint its own tax assessor and collector, or, alternatively, may contract to have the taxes of the district assessed and collected, or either, [on all property subject to taxation,] by the assessor and collector of taxes for Hunt County, for the City of Greenville or for Greenville Independent School District, as hereinafter provided.  …

When a majority of the Board of Directors of the district prefer to have the taxes of the district assessed and collected by the assessor and collector of taxes for Hunt County, by the assessor and collector of taxes for the City of Greenville, or by the assessor and collector of taxes of Greenville Independent School District, same may be assessed and collected, or collected only, as the case may be, by said county, city or school district officers, as may be determined by the Board of Directors of the district, and … .

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

Revisor's Note

(1)  Section 5, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, states that the board shall appoint a board of equalization and establishes the duties of that board.  The revised law omits the references to a board of equalization and the board's duties because boards of equalization were abolished and their functions and duties transferred to appraisal review boards by the 1979 enactment of the Property Tax Code, Title 1, Tax Code (Section 1, Chapter 841, Acts of the 66th Legislature, Regular Session).  The omitted law reads:

Sec. 5.  … Prior to the levy of any taxes, the Board of Directors shall appoint a board of equalization composed of three resident property owners of the district and cause taxes to be assessed, valuations to be equalized, and tax rolls to be prepared.  …

(2)  Sections 5 and 10, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provide procedures for the imposition of a property tax.  The revised law omits those provisions because they were repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (2) to Section 1044.251.  The omitted law reads:

Sec. 5.  … Such taxes shall be assessed, equalized and collected in the same manner and under the same conditions as county taxes, except as herein provided… .  The property of the district on which taxes are assessed and collected by the county, city or school district assessor and collector may be assessed at a greater value, or at a lesser value, than that assessed for city, county, state and school district purposes, and in such cases the county, city or school district tax assessor and collector may assess the taxes for the district on separate assessment blanks furnished by the district and shall prepare the rolls for the district in accordance with the assessment values which have been equalized by the board of equalization appointed by the Board of Directors of the district for that purpose, which may be the same persons as those appointed by the Commissioners Court of Hunt County, the City Council of the City of Greenville, or the Board of Trustees of Greenville Independent School District, whichever is collecting said taxes.  If said taxes are assessed by a special assessor of the district and are collected only by the county, city or school district, the county, city or school district tax collector in such case shall accept the rolls prepared by the special assessor and approved by the Board of Directors of the district as provided in this article. …

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

Sec. 10.  … [The proposed budget shall also show the amount of taxes required to be levied and collected during such fiscal year, and upon final approval of the budget the Board of Directors shall levy such tax as may be required and] certify the tax rate for such year to its tax assessor and collector as provided in Section 5 hereof, and … .

(3)  Section 5, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, 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:

Sec. 5.  …  [When a majority of the Board of Directors of the district prefer to have the taxes of the district assessed and collected by the assessor and collector of taxes for Hunt County, by the assessor and collector of taxes for the City of Greenville, or by the assessor and collector of taxes of Greenville Independent School District, same may be] … turned over to the district for deposit in the district depository.

…  The residue of tax collections, after deductions of discounts and payment of fees for assessing and collecting, shall be deposited in the district depository… .

(4)  Section 5, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides for a limitation on the amount the district may pay if the district contracts with the Commissioners Court of Hunt County, the City Council of the City of Greenville, or the Board of Trustees of the Greenville Independent School District for the assessment and collection of district taxes.  The revised law omits those provisions because they were repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (2) to Section 1044.251.  Section 6.27, Tax Code, provides for the compensation of a tax assessor-collector assessing and collecting taxes for a taxing unit.  The omitted law reads:

Sec. 5.  …  When the county assessor and collector is required to assess and collect the taxes of the district the Board of Directors of the district may contract with the Commissioners Court of Hunt County for payment of such services as they may see fit to allow, not to exceed the actual cost incurred in the assessing and collecting of said taxes; and when the Assessor and Collector of the City of Greenville, as hereinbefore provided, is required to assess and collect the taxes of the district, the Board of Directors of the district may contract with the City Council of the City of Greenville for payment for such services as they may see fit to allow, not to exceed the actual cost incurred in assessing and collecting said taxes; and when the Assessor and Collector of Greenville Independent School District is required to assess and collect the taxes of the district the Board of Directors of the district may contract with the Board of Trustees of Greenville Independent School District for payment for such services as they may see fit to allow, not to exceed the actual cost incurred in assessing and collecting said taxes.

…

(5)  Section 5, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that interest and penalties on district taxes are the same as for county taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (2) to Section 1044.251. Chapter 33, Tax Code, provides for the assessment of penalties and interest on delinquent taxes.  The omitted law reads:

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

Revisor's Note

(End of Chapter)

(1)  Sections 7 and 8, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provide for the sale or transfer of certain land, buildings, improvements, equipment, funds, and taxes to the district after the district is created and provide for the assumption of debt by the district on creation.  The revised law omits the provisions as executed.  The omitted law reads:

Sec. 7.  Any lands, buildings or equipment that may be jointly or separately owned by Hunt County and any city located within the boundaries of the district and by which medical services or hospital care, including geriatric care, are furnished to needy persons of the city or county, shall become the property of the hospital district; and title thereto shall vest in the hospital; and any funds of any such city and said county, or either, which are the proceeds of any bonds assumed by the hospital district, as hereinafter provided, shall become the funds of the hospital district; and title thereto shall vest in the hospital district; and there shall vest in the hospital district and become the funds of the hospital district the unspent portions of any funds theretofore set up or appropriated by budget or otherwise by such city or said county, or either of them, for the support and maintenance of the hospital facilities, for the year within which the hospital district comes into existence, thereby providing such hospital district with funds with which to maintain and operate such facilities for the remainder of such year.  All obligations under contract legally incurred by any city or said county, or either of them, for the building of, or the support and maintenance of, hospital facilities located within the district prior to the creation of the said district but outstanding at the time of the creation of the district, shall be assumed and discharged by the hospital district without prejudice to the rights of third parties.

Any outstanding bonded indebtedness incurred by any such city or said county, either or both of them, in the acquisition of such lands, buildings and equipment, or in the construction and equipping of such hospital facilities, together with any other outstanding bonds issued by either of them for hospital purposes, and the proceeds of which are in whole or in part, still unspent, shall be assumed by the hospital district and become the obligation of the hospital district; and such city or said county, either or both of them, that issued such bonds, shall be by the hospital district relieved of any further liability for the payment thereof, or for providing interest and sinking fund requirements thereon; provided that nothing herein contained shall limit or affect any of the rights of any of the holders of such bonds against such city or said county, as the case may be, in the event of default in the payment of the principal or interest on any of such bonds in accordance with their respective terms.

The Commissioners Court of Hunt County and any city, where a hospital or hospital system is jointly or separately operated within the district, or the Commissioners Court, where the county owns the hospital or hospital system located within the district, as the case may be, as soon as the hospital district is created and authorized at the election hereinabove provided, and there have been qualified the Board of Directors as hereinbefore provided, shall execute and deliver to the hospital district, to wit:  to its said Board of Directors, an instrument in writing conveying to said hospital district the hospital property located within the district, including lands, buildings and equipment; and shall transfer to said hospital district the funds hereinabove provided to become vested in the hospital district, upon being furnished the certificate of the chairman of the Board to the fact that a depository for the district's funds has been selected and has qualified; which funds shall, in the hands of the hospital district and of its Board of Directors be used for all or any of the same purposes as, and for no other purposes than, the purposes for which said county or the city transferring such funds could lawfully have used the same had they remained the property and funds of said county or such city.

Sec. 8.  The hospital district permitted to be created by this Act is authorized to purchase from any City Hospital Authority operating within the district, and each said authority is authorized to sell to said hospital district, any and all hospital facilities, including all lands, buildings, equipment and properties owned by them upon such terms and for such price or prices as they may mutually agree, and in that connection may in such contract make provisions for the payment of any of such authority's revenue bonds in one or more of the methods prescribed in Section 6 hereof.  If any such hospital authority sells its facilities to the district, that authority shall no longer be authorized to perform hospital services within the boundaries of the district nor issue bonds therefor.

(2)  Section 19,  Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, requires the board to prepare and file in the district's permanent records a map of the district's boundaries.  The revised law omits the provision as executed. The omitted law reads:

Sec. 19.  The Board of Directors of the district shall cause to be prepared and filed among the permanent records of the district a map showing clearly the boundaries of the district, together with a metes and bounds description thereof.

(3)  Section 20, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, repealed Chapter 344, Acts of the 59th Legislature, Regular Session.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 20.  It is hereby found by the Legislature that the boundaries of the district herein authorized to be created overlap the boundaries of the Hunt County Hospital District authorized to be created by Chapter 344, Acts of 59th Legislature, Regular Session (compiled as Article 4494q--23, Vernon's Texas Civil Statutes) and that no district has been created as authorized by said law. Accordingly, Chapter 344, Acts of 59th Legislature, Regular Session, is hereby expressly repealed and shall be hereafter without effect.

(4)  Section 21, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, and Section 2, Chapter 853, Acts of the 61st Legislature, Regular Session, 1969, provide that the acts are severable.  The revised law omits those provisions because they duplicate Section 311.032, Government Code (Code Construction Act), which provides that a provision of a statute is severable from each other provision of the statute that can be given effect.  The omitted law reads:

[60th Leg., R.S., Ch. 125]

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

[61st Leg., R.S., Ch. 853]

Sec. 2… .  If any provision of this Act should be invalid, such fact shall not affect the validity of any other provision of this Act, and the Legislature hereby declares that it would have enacted the valid provisions of this Act notwithstanding the invalidity of any other provision or provisions hereof.

(5)  Section 22, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, provides that public notice of enactment of the statute was provided in a manner that satisfies the requirements of the Texas Constitution.  The revised law omits that section as executed.  The omitted law reads:

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

(6)  Section 2, Chapter 718, Acts of the 79th Legislature, Regular Session, 2005, refers to the designation of a district depository.  The revised law omits the provision as executed.  The omitted law reads:

Sec. 2.  The change in law made by this Act to Section 12, Chapter 125, Acts of the 60th Legislature, Regular Session, 1967, applies only to the designation of a depository by the Hunt Memorial Hospital District on or after the effective date of this Act.  A designation of a depository before the effective date of this Act is governed by the law in effect on the date the designation was made, and that law is continued in effect for that purpose.