TLC: Special District Local Laws Code Proposed Chapters

80C114(1) EMT

CHAPTER 1055. MARION COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 1055.001. 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 Marion County Hospital District. (New.) [[[1025.001]]]

Revisor's Note

The definitions of "board," "director," and "district" are added to the revised law for drafting convenience and to avoid frequent, unnecessary repetition of the substance of the definitions. [[[1025.001 RN]]]

Revised Law

Sec. 1055.002. AUTHORITY FOR OPERATION. The Marion County Hospital District operates under the authority of Section 9, Article IX, Texas Constitution. (Acts 60th Leg., R.S., Ch. 184, Sec. 1 (part).) [[[1011.002]]]

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 Marion County Hospital District, … .

Revisor's Note

Section 1, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, authorizes the "creation, establishment, maintenance, and operation" of the Marion County Hospital District. The revised law omits "creation" and "establishment" as executed. The revised law omits "maintenance" because, in this context, the meaning of that term is included in the meaning of "operation." [[[1011.002 RN]]]

Revised Law

Sec. 1055.003. POLITICAL SUBDIVISION. The district is a political subdivision of this state. (Acts 60th Leg., R.S., Ch. 184, Sec. 16 (part).) [[[1011.003]]]

Source Law

Sec. 16. The hospital district created under the provisions of this Act shall be and is declared to be a political subdivision of the State of Texas, and … .

Revised Law

Sec. 1055.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Marion County, Texas. (Acts 60th Leg., R.S., Ch. 184, Sec. 1 (part).) [[[1021.004, 80C14(3)]]]

Source Law

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

Revised Law

Sec. 1055.005. 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. 184, Sec. 18 (part).) [[[1011.005]]]

Source Law

Sec. 18. … [Federal or State Constitution] … . Where any procedure hereunder may be held by any court to be violative of either of such constitutions, the district shall have the power by resolution to provide an alternative procedure conformable with such constitutions. …

Revisor's Note

Section 18, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, provides that the act does not violate the federal or state constitutions and requires that action under the act 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 reference to the Texas Constitution because the state cannot modify constitutional requirements by statute. The omitted law reads: [[[1011.005 RN]]]

Sec. 18. Nothing in this Act shall be construed to violate any provision of the Federal or State Constitutions, and all acts done under this Act shall be in such manner as will conform thereto, whether expressly provided or not. …

Revisor's Note

(End of Subchapter)

Sections 2 and 3, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, provide procedures for holding an election on the creation of the Marion County Hospital District and the imposition of an ad valorem tax. Because the creation of the hospital district and the imposition of the tax were approved at the election, the revised law omits the relevant law as executed. The omitted law reads: [[[80C90(1), End A RN]]]

Sec. 2. … provided, however, that said hospital district shall not be created unless and until an election is duly held in the district for such purpose, which said election shall be initiated by order of the commissioners court upon its own motion or upon receipt by it of a petition of 100 resident qualified property taxpaying voters.

The order calling the election shall specify the time and place or places of holding same, the form of the ballot, and the presiding judge for each voting place. At such election there shall be submitted to the qualified property taxpaying electors the proposition of whether or not Marion County Hospital District shall be created with authority to levy annual taxes at a rate not to exceed 75 cents on the $100 valuation of all taxable property within such district for the purpose of meeting the requirements of the district's bonds and its maintenance and operating expenses, and a majority of the qualified property taxpaying electors of the district voting in said election in favor of the proposition shall be sufficient for its adoption. The ballots shall have printed thereon the following:

"FOR the creation of the Marion County Hospital District, and providing for the levy of annual taxes not to exceed 75 cents on the $100 valuation of all taxable property within such district."

"AGAINST the creation of the Marion County Hospital District, and providing for the levy of annual taxes not to exceed 75 cents on the $100 valuation of all taxable property within such district."

Notice of election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in the proposed Marion County Hospital District once a week for two consecutive weeks, the first publication to appear at least 14 days prior to the date established for the election.

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

Sec. 3. Within 10 days after such election is held the commissioners court shall convene and canvass the returns of the election, and if a majority of the qualified property taxpaying electors voting at said election voted in favor of the proposition, they shall so find and declare the hospital district established and created.

[Sections 1055.006-1055.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Revised Law

Sec. 1055.051. BOARD ELECTION; TERM. (a) The district is governed by a board of seven 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; and

(2) a directors' election shall be held annually on a date authorized by Chapter 41, Election Code. (Acts 60th Leg., R.S., Ch. 184, Sec. 4 (part).) [[[similar to 1031.051; 1024.051]]]

Source Law

Sec. 4. The district shall be governed, managed, and controlled by a board of directors composed of seven members, … . The members are elected from the district at large. Directors serve staggered two-year terms. … A regular election for the election of directors to the elective positions on the board shall be held annually on an authorized election date as provided by Chapter 41, Election Code. …

Revisor's Note

(1) Section 4, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, provides that the district shall be "governed, managed, and controlled" by seven board members. The revised law omits "managed and controlled" because in context they have the same meaning as "governed." [[[New; similar to 367.056 RN, 76C69(2)]]]

(2) Section 4, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, provides that directors serve staggered two-year terms. Section 285.081, Health and Safety Code, applicable to this 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. [[[1031.051 RN(2)]]]

Revised Law

Sec. 1055.052. NOTICE OF ELECTION. At least 10 days before the date of an election of directors, notice of the election shall be published one time in a newspaper of general circulation in Marion County. (Acts 60th Leg., R.S., Ch. 184, Sec. 4 (part).) [[[1031.052]]]

Source Law

Sec. 4. … Notice of each such election shall be published in a newspaper of general circulation in the county one time not later than the 10th day before the date of the election. …

Revisor's Note

Section 4, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, requires notice of a directors' election to be published in "the county." Throughout this chapter, the revised law substitutes "Marion County" for the quoted language because Marion County is the county in which the district is located. [[[1031.052 RN]]]

Revised Law

Sec. 1055.053. QUALIFICATIONS FOR OFFICE. A person may not be elected or appointed as a director unless the person is a resident of the district. (Acts 60th Leg., R.S., Ch. 184, Sec. 4 (part).) [[[similar to 1011.054]]]

Source Law

Sec. 4. … No person shall be appointed or elected to the elective positions on the board of directors of said hospital district unless he is a resident thereof and … .

Revisor's Note

Section 4, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, provides that a person must be "more than 18 years of age" to qualify for appointment or election to the board. The revised law omits that provision because it duplicates Chapter 129, Civil Practice and Remedies Code, which establishes 18 years as the age of majority in this state. The omitted law reads: [[[New, similar to 1011.054 RN]]]

Sec. 4. … [No person shall be appointed or elected to the elective positions on the board of directors] … unless at the time of such election or appointment he shall be more than 18 years of age… .

Revised Law

Sec. 1055.054. BOND; RECORD OF BOND AND OATH OR AFFIRMATION. (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) The district shall pay for the director's bonds.

(c) Each director's bond and the constitutional oath or affirmation of office shall be deposited with the district's depository bank for safekeeping. (Acts 60th Leg., R.S., Ch. 184, Sec. 4 (part).) [[[1011.055; 1021.054, 80C14(3)]]]

Source Law

Sec. 4. … Each member of the board of directors … shall execute a good and sufficient bond for $1,000 payable to said district conditioned upon the faithful performance of his duties. Each such bond shall be purchased at the expense of the district. Such oaths and bonds shall be deposited with the depository bank of the district for safekeeping… .

Revisor's Note

Section 4, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, requires each director to take the constitutional oath of office. The revised law omits this provision because Section 1, Article XVI, Texas Constitution, requires all officers in this state to take the oath or affirmation before assuming office. Additionally, the revised law provides for the deposit of the constitutional affirmation as well as the constitutional oath because Section 1, Article XVI, Texas Constitution, permits an officer in this state to take either the constitutional oath or affirmation. The omitted law reads: [[[1031.054 RN]]]

Sec. 4. … [Each member of the board of directors] shall qualify by executing the constitutional oath of office and … .

Revised Law

Sec. 1055.055. BOARD VACANCY. (a) If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term.

(b) If the number of directors is reduced to fewer than four for any reason, the remaining directors shall immediately call a special election to fill the vacancies. If the remaining directors do not call the election, a district court on application of a district voter or taxpayer may order the directors to hold the election. (Acts 60th Leg., R.S., Ch. 184, Sec. 4 (part).) [[[1031.055]]]

Source Law

Sec. 4. … All vacancies in the elective positions of directors shall be filled for the unexpired term by appointment made by the remainder of the board of directors. In the event the number of directors shall be reduced to less than four for any reason, the remaining directors shall immediately call a special election to fill the elective positions which are vacant, and upon failure to do so a district court may, upon application of any voter or taxpayer of the district, issue a mandate requiring that such election be ordered by the remaining directors. …

Revised Law

Sec. 1055.056. DIRECTOR RIGHTS AND RESPONSIBILITIES. Each director has the same rights and responsibilities as another director with regard to voting and other matters. (Acts 60th Leg., R.S., Ch. 184, Sec. 4 (part).) [[[New.]]]

Source Law

Sec. 4. … [board of directors …] all of whom shall have the same rights and responsibilities with respect to voting and all other matters. …

Revised Law

Sec. 1055.057. OFFICERS. The board shall elect a president and a secretary from among its members. (Acts 60th Leg., R.S., Ch. 184, Sec. 4 (part).) [[[similar to 1025.056]]]

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. …

Revised Law

Sec. 1055.058. 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 a majority of the board. (Acts 60th Leg., R.S., Ch. 184, Sec. 4 (part).) [[[similar to 1031.057]]]

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 a majority of the board of directors.

Revised Law

Sec. 1055.059. VOTING REQUIREMENT. A concurrence of four directors is sufficient in any matter relating to district business. (Acts 60th Leg., R.S., Ch. 184, Sec. 4 (part).) [[[1031.058]]]

Source Law

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

Revisor's Note

Section 4, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, provides that four directors constitute a quorum. The revised law omits that provision because it duplicates Section 311.013, Government Code (Code Construction Act), which provides that a majority of a board or commission constitutes a quorum. The omitted law reads: [[[1031.058 RN]]]

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

Revised Law

Sec. 1055.060. EMPLOYEES. The board may employ a general manager, attorneys, bookkeepers, architects, or any other employees considered necessary for the efficient operation of the district. (Acts 60th Leg., R.S., Ch. 184, Sec. 7 (part).) [[[1011.060]]]

Source Law

Sec. 7. The board of directors of such district … may employ a general manager, attorneys, bookkeepers, architects, and any other employees deemed necessary for the efficient operation of the hospital district. …

Revised Law

Sec. 1055.061. MAINTENANCE OF RECORDS; PUBLIC INSPECTION. Except as provided by Section 1055.054, 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 inspection at the district office at all reasonable hours. (Acts 60th Leg., R.S., Ch. 184, Sec. 7 (part).) [[[1031.064]]]

Source Law

Sec. 7. … 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 7, Chapter 184, 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 1055.054, which is the only exception provided in Chapter 184.

Revised Law

Sec. 1055.062. SEAL. The board may adopt a seal for the district. (Acts 60th Leg., R.S., Ch. 184, Sec. 7 (part).) [[[1011.062]]]

Source Law

Sec. 7. The board of directors of such district … shall have the power to adopt a seal for such district; and … .

Revisor's Note

(End of Subchapter)

(1) Section 4, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, states that a person must file a ballot application with the board secretary to be a candidate for director and prescribes a deadline for filing the application. The revised law omits the requirement to file the application with the board secretary because it duplicates Sections 144.003 and 144.004, Election Code. The revised law omits the filing deadline because it is superseded by Section 144.005, Election Code. Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state. The omitted law reads: [[[80C41(3), End B RN]]]

Sec. 4. … Any person desiring his name to be printed on the ballot as a candidate for elective director shall file an application with the secretary of the board of directors of the district. Such application shall be filed with such secretary not later than the 45th day before the date of the election. …

(2) Section 3, Chapter 263, Acts of the 71st Legislature, Regular Session, 1989, prescribes the procedures for a directors' election on the first authorized election date that meets the criteria listed in that section. The revised law omits that provision as executed. The omitted law reads:

Sec. 3. (a) After the effective date of this Act, an election to elect the seven directors for the Marion County Hospital District shall be held on the first authorized election date that:

(1) occurs on the date that corresponds to the authorized election date on which subsequent elections will be held;

(2) allows sufficient time to comply with the requirements of law; and

(3) occurs after the 30th day after the date on which the board orders the election.

(b) The seven candidates receiving the highest number of votes at this election are directors for the district. The four directors receiving the highest number of votes at this election serve for terms of two years and the remaining directors serve for terms of one year.

(c) The terms of the persons serving as directors of the Marion County Hospital District on the date on which the election is held under this section expire when the directors elected under this section qualify for office. [[[New; similar to 79c191 Ch. 1003 End of Subch. B RN]]]

[Sections 1055.063-1055.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Revised Law

Sec. 1055.101. 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. 184, Secs. 2 (part), 12 (part).) [[[1011.101]]]

Source Law

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

Sec. 12. … 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 12, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, provide that the district "shall assume" full responsibility for providing medical and hospital care for the district's "needy" residents and Section 12 provides that the district assumes the 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. [[[1011.101 RN]]]

Revised Law

Sec. 1055.102. RESTRICTION ON COUNTY OR MUNICIPALITY TAXATION. Marion County or a municipality in the district may not impose a tax on property in the district for hospital purposes. (Acts 60th Leg., R.S., Ch. 184, Sec. 12 (part).) [[[1011.102]]]

Source Law

Sec. 12. Except as herein provided, neither Marion County, nor any city or town within the hospital district, shall levy any tax against any property within the hospital district for hospital purposes; and … .

Revisor's Note

(1) Section 12, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, states that "[e]xcept as herein provided," certain political subdivisions may not impose 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 12, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, refers to a "city or town." The revised law substitutes "municipality" for "city or town" to conform to the terminology of the Local Government Code. [[[1011.102 RN(2)]]]

Revised Law

Sec. 1055.103. 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 the expense of the district and made available to any taxpayer on request. (Acts 60th Leg., R.S., Ch. 184, Sec. 7 (part).) [[[1011.104]]]

Source Law

Sec. 7. … 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 7, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, provides that the board may "adopt rules and regulations" to govern the district. The revised law omits "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation. [[[1011.104 RN(1)]]]

(2) Section 7, Chapter 184, 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. [[[1011.104 RN(2)]]]

(3) Section 7, Chapter 184, 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." [[[1011.104 RN(3)]]]

Revised Law

Sec. 1055.104. PURCHASING AND ACCOUNTING PROCEDURES. (a) The board may prescribe the method and manner of making purchases and expenditures by and for the district.

(b) The board shall prescribe:

(1) all accounting and control procedures; and

(2) the method of purchasing necessary supplies, materials, and equipment. (Acts 60th Leg., R.S., Ch. 184, Sec. 7 (part).) [[[1011.105]]]

Source Law

Sec. 7. 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; the method of purchasing necessary supplies, materials and equipment; and … .

Revised Law

Sec. 1055.105. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property, real, personal, or mixed, located in district territory, if the interest is necessary or convenient for the district to exercise a right, power, privilege, or function conferred by this chapter.

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

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

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

(3) provide a bond for costs or a supersedeas bond on an appeal or writ of error. (Acts 60th Leg., R.S., Ch. 184, Sec. 9.) [[[1011.106]]]

Source Law

Sec. 9. 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 2 in Article 3268, Revised Civil Statutes of Texas, 1925, as amended, or to make the bond required therein. In condemnation proceedings being prosecuted by the said district, the district shall not be required to pay in advance or to give bond or other security for costs in the trial court, nor to give any bond otherwise required for the issuance of a temporary restraining order or a temporary injunction relating to a condemnation proceeding, nor to give bond for costs or for supersedeas on any appeal or writ of error proceeding to any Court of Civil Appeals, or to the Supreme Court.

Revisor's Note

(1) Section 9, Chapter 184, 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. [[[1011.106 RN(1)]]]

(2) Section 9, Chapter 184, 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 phrase a reference to Chapter 21, Property Code, because that is the general law governing eminent domain for governmental entities, including counties. [[[1025.108 RN(2)]]]

(3) Section 9, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, refers to "Paragraph 2 in 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. [[[1025.108 RN(3)]]]

(4) Section 9, Chapter 184, 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. [[[1011.106 RN(4)]]]

Revised Law

Sec. 1055.106. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or 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. 184, Sec. 14.) [[[1011.107]]]

Source Law

Sec. 14. 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 14, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, refers to "donations" and "gifts." The revised law omits the reference to "donations" because "donations" is included in the meaning of "gifts." [[[1011.107 RN]]]

Revised Law

Sec. 1055.107. AUTHORITY TO LEASE DISTRICT FACILITIES. (a) The district may lease district facilities acquired or constructed under this chapter to any person for consideration the board determines is reasonable and adequate.

(b) The terms of a lease entered under this section may include a provision that requires the lessee to:

(1) agree to maintain the district's hospital facilities; or

(2) care for and treat the indigent or needy patients of Marion County.

(1) spend money and make payments to the lessee for the care and treatment;

(2) impose ad valorem taxes; or

(3) pledge any of the county's money or resources to payments made under the contract. (Acts 60th Leg., R.S., Ch. 184, Sec. 17.) [[[New; see 1010.115, 1011.108]]]

Source Law

Sec. 17. The district in addition to all other powers herein conferred shall have full power and authority to lease its hospital facilities acquired or constructed in accordance with the provisions of this Act to any person, firm or corporation for a lease consideration that shall be determined by the board of directors to be reasonable and adequate. In the event the board of directors desires to lease its hospital facilities the terms of its lease may include a requirement that the lessee agree to maintain the hospital facilities of the district. The lease may contain a provision that the lessee care and treat the indigent or needy patients of the county, and the county is herein authorized to expend money and make payments to said lessee for such care and treatment and to levy ad valorem taxes and to pledge any of its funds or resources to the payments to be made under such contract.

Revisor's Note

Section 17, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, refers to any "person, firm or corporation." The revised law omits "firm or corporation" because Section 311.005, Government Code (Code Construction Act), defines "person" to include a corporation or other legal entity. [[[similar to 1031.305 RN]]]

Revised Law

Sec. 1055.108. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a patient who resides in the district is admitted to a district facility, the directors 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 patient's 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 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. 184, Sec. 13.) [[[1011.109]]]

Source Law

Sec. 13. 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. 1055.109. AUTHORITY TO SUE AND BE SUED. As a government agency, the district may sue and be sued in its own name in any court of this state. (Acts 60th Leg., R.S., Ch. 184, Sec. 16 (part).) [[[1011.110]]]

Source Law

Sec. 16. [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 11, Chapter 184, 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 11 as unnecessary 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: [[[80c90(1) End Sub C RN]]]

Sec. 11. The district established or maintained under the provisions of this Act shall be subject to inspection by any duly authorized representative of the State Board of Health or any state board of charities (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 1055.110-1055.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1055.151. 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. 184, Sec. 8 (part).) [[[1011.151]]]

Source Law

Sec. 8. … 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 8, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, refers to the levy and collection of a tax. The revised law substitutes "impose" for "levy" and "collect" because "impose" is the term generally used in Title 1, Tax Code, and includes the levying and collection of a tax. [[[1011.151 RN]]]

Revised Law

Sec. 1055.152. 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 Marion County not later than the 10th day before the date of the hearing.

(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. 184, Sec. 8 (part).) [[[1011.152]]]

Source Law

Sec. 8. … 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 10 days prior to the date set for the hearing. Any person who is a taxpayer of the district shall have the right to appear at the time and place designated in the notice and be heard with reference to any item shown in the proposed budget… .

Revised Law

Sec. 1055.153. 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. 184, Sec. 8 (part).) [[[1011.153]]]

Source Law

Sec. 8. 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. 1055.154. 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. 184, Sec. 8 (part).) [[[1011.154]]]

Source Law

Sec. 8. … 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 8, Chapter 184, 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. [[[1011.154 RN]]]

Revised Law

Sec. 1055.155. DEPOSITORY. (a) The board by resolution shall designate a bank in Marion County to serve as the district's depository or treasurer. A designated bank serves for two years until a successor is designated.

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

(c) All district money shall be secured in the manner provided for securing county funds. (Acts 60th Leg., R.S., Ch. 184, Secs. 5 (part), 10.) [[[1011.155]]]

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

Revisor's Note

Section 10, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, requires the board to select a depository "[w]ithin 30 days after appointment and qualification of the board of directors of the hospital district." The revised law omits the quoted language as executed. [[[1011.155 RN]]]

[Sections 1055.156-1055.200 reserved for expansion]

SUBCHAPTER E. BONDS AND OTHER FINANCIAL OBLIGATIONS [[[New]]]

Revised Law

Sec. 1055.201. GENERAL OBLIGATION BONDS AND OTHER FINANCIAL OBLIGATIONS. The board may issue and sell general obligation bonds, secure long-term loans, or make other financial arrangements as district obligations 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;

(2) equipping buildings or improvements for hospital purposes; and

(3) the use of the money as the district's operating funds. [[[New, similar to 1011.201]]] (Acts 60th Leg., R.S., Ch. 184, Sec. 6 (part).)

Source Law

Sec. 6. The board of directors shall have the power and authority to issue and sell bonds, secure long-term loans, or make other financial arrangements as the obligations of such hospital district, and in the name and upon the faith and credit of such hospital district. The money shall be used for the purchase, construction, acquisition, repair or renovation of buildings and improvements, equipping the same for hospital purposes, operating funds, and for any or all of such purposes; … .

Revisor's Note

Section 6, Chapter 184, 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. [[[1011.201 RN]]]

Revised Law

Sec. 1055.202. TAX TO PAY GENERAL OBLIGATION BONDS OR OTHER FINANCIAL OBLIGATIONS. (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 or other financial obligations incurred under Section 1055.201, as the bonds or other obligations 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. 184, Sec. 6 (part).) [[[New; similar to 1011.202]]]

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 75 cents in any one year… .

Revisor's Note

Section 6, Chapter 184, 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. [[[1011.202 RN]]]

Revised Law

Sec. 1055.203. ELECTION FOR GENERAL OBLIGATION BONDS OR OTHER FINANCIAL ARRANGEMENTS. (a) The district may issue general obligation bonds or secure other financial arrangements only if authorized by a majority of the district voters voting at an election held for that purpose.

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

(1) the date of the election;

(2) the location of the polling places;

(3) the presiding officers for each polling place;

(4) the purpose for which the bonds are to be issued or the financial arrangements made;

(5) the amount of the bonds or other financial arrangements to be authorized;

(6) the maximum interest rate for the bonds or other financial arrangements; and

(7) the maximum maturity of the bonds.

(d) Notice of an election under this section shall be given by publishing a substantial copy of the order calling the election in a newspaper of general circulation in Marion County once a week for two consecutive weeks. The first publication must occur at least 14 days before the date of the election. (Acts 60th Leg., R.S., Ch. 184, Sec. 6 (part).) [[[similar to 1011.203]]]

Source Law

Sec. 6. … No bonds shall be issued or other financial arrangements secured by tax money made by such hospital district … until authorized by a majority vote of the resident qualified electors voting at an election called and held for such purpose. Such election may be called by the board of directors on its own motion, and the order calling said election shall specify the date of the election, the place or places where the election shall be held, the presiding officers thereof, the purpose for which the bonds are to be issued or the financial arrangements made, the amount thereof, the maximum interest rate (for bonds, not to exceed that provided by Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes)) and the maximum maturity date of such bonds … . Notice of election shall be given by publishing a substantial copy of the order calling the election in a newspaper of general circulation in such county once a week for two consecutive weeks prior to the date of election, the date of the first publication being at least 14 full days prior to the date set for the election… .

Revisor's Note

(1) Section 6, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, refers to a majority vote of the "resident qualified electors." The revised law substitutes "district voter" for "resident qualified electors" 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. [[[similar to 1011.203 RN(2)]]]

(2) Section 6, Chapter 184, 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. [[[1011.203 RN3]]]

(3) Section 6, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, requires the district to pay the costs of elections. The revised law omits the provision because it duplicates Section 1.014, Election Code, applicable to the district under Section 1.002 of that code. The omitted law reads: [[[1011.203 RN4]]]

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

…

(4) Section 6, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, provides that the ballot proposition must include the maximum interest rate "not to exceed that provided by Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes)." Chapter 3 was revised in 1999 as Section 1204.006, Government Code, 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 bonds issued under this chapter by application of Section 1204.001, Government Code. [[[1011.203 RN(5) similar]]]

Revised Law

Sec. 1055.204. 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. 184, Sec. 6 (part).) [[[1011.205]]]

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 … .

Revised Law

Sec. 1055.205. REVENUE BONDS; OTHER FINANCIAL ARRANGEMENTS. (a) The board, without an election, may issue revenue bonds or make other financial arrangements to:

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

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

(b) The revenue bonds or other financial arrangements must be payable from and secured by a pledge of all or part of the revenues derived from the operation of the district's hospital system.

(c) The bonds must be issued in the manner provided by Sections 264.042, 264.043, and 264.046-264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority. (Acts 60th Leg., R.S., Ch. 184, Sec. 6 (part).) [[[similar to 1025.206, 1031.204]]]

Source Law

Sec. 6. … The board of directors without an election may issue revenue bonds or make other financial arrangements that are payable from and secured by a pledge of all or part of the revenues derived from the operation of the district's hospital system. The district may use the money to purchase, construct, acquire, repair, equip, or renovate buildings or improvements for hospital purposes or acquire sites to be used for hospital purposes. The revenue bonds must be issued in the manner provided by Sections 8, 10, 11, 12, and 13, County Hospital Authority Act (Article 4494r, Vernon's Texas Civil Statutes), for issuance of revenue bonds by county hospital authorities. The revenue bonds … must bear interest at a rate not to exceed that provided by Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes)… .

Revisor's Note

(1) Section 6, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, refers to Sections 8, 10, 11, 12, and 13 of the County Hospital Authority Act (Article 4494r, Vernon's Texas Civil Statutes). Those provisions were codified in 1989 as Sections 264.042, 264.043, and 264.046-264.049, Health and Safety Code. The revised law is drafted accordingly. [[[1025.206 RN]]]

(2) Section 6, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, provides that revenue bonds "must bear interest at a rate not to exceed that provided by Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes)." The revised law omits the quoted language for the reasons stated in Revisor's Note (4) to Section 1055.203.

Revised Law

Sec. 1055.206. REFUNDING BONDS. The board may, without an election, issue refunding bonds to refund outstanding bonds issued by the district. (Acts 60th Leg., R.S., Ch. 184, Sec. 6 (part).)

Source Law

Sec. 6. … [No bonds shall be issued …] (except refunding bonds) [until authorized by a majority vote of the resident qualified electors voting at an election called and held for such purpose.] … 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, … .

Revisor's Note

Section 6, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, provides that refunding bonds must bear interest at the same or a lower rate than the rate of the debt refunded. The revised law omits that provision for the reason stated in Revisor's Note (4) to Section 1055.203. The omitted law reads:

Sec. 6. … 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. …

Revised Law

Sec. 1055.207. MATURITY OF DISTRICT BONDS. General obligation bonds and revenue bonds must mature not later than the 40th anniversary of the date of issuance. (Acts 60th Leg., R.S., Ch. 184, Sec. 6 (part).) [[[1031.207]]]

Source Law

Sec. 6. … [the maximum maturity date of such bonds] (not to exceed 40 years from their date of issuance)… . The revenue bonds must mature not more than 40 years after the date of their issuance and … .

Revisor's Note

(End of Subchapter)

(1) Section 6, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, provides that the general obligation bonds are subject to the law governing counties that relates to bond approval by the attorney general and registration of the bonds by the comptroller. Section 6 also provides that after approval and registration the bonds are "incontestable for any cause." The revised law omits those provisions as superseded by Chapter 1202, Government Code (enacted as Article 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987). Section 1202.003(a), Government Code, requires bonds to be submitted to the attorney general. Section 1202.003(b), Government Code, provides for approval of the bonds by the attorney general and requires the attorney general to submit the approved bonds to the comptroller for registration. Section 1202.005, Government Code, requires registration of the bonds by the comptroller. Section 1202.006, Government Code, provides that after approval and registration the bonds are incontestable and binding obligations. Chapter 1202, Government Code, applies to bonds issued under this chapter by application of Section 1202.001, Government Code. The omitted law reads: [[[1011.205 RN(1)]]]

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 184, Acts of the 60th Legislature, Regular Session, 1967, provides that district bonds may be optional for redemption before maturity. The revised law omits this provision as unnecessary 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 bonds issued under this chapter by application of Section 1201.002, Government Code. The omitted law reads: [[[80c90(1) End Sub E RN(2)]]]

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 15, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, provides that bonds issued under that act are legal and 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 building and loan associations (now called savings and loan associations) are regulated by Section 63.002, Finance Code, and by Section 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 bonds issued under this chapter 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: [[[80c90(1)]]]

Sec. 15. All bonds issued by or assumed by the districts authorized to be established and created under the provisions of this Act shall be and are declared to be legal and authorized investments for banks, savings banks, trust companies, building and loan associations, insurance companies, fiduciaries, trustees, and for the sinking funds of cities, towns, villages, counties, school districts, or other political corporations or subdivisions of the State of Texas; and … .

(4) Section 15, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, provides that bonds issued under that chapter may secure certain deposits. Although Section 15 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 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: [[[80c90(1)]]]

Sec. 15. … such bonds shall be lawful and sufficient security for deposits to the extent of their face value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1055.208-1055.250 reserved for expansion]

SUBCHAPTER F. TAXES

Revised Law

Sec. 1055.251. IMPOSITION OF AD VALOREM TAX. (a) On final approval of the annual budget, the board shall impose a tax on all property in the district subject to district taxation.

(b) The board shall impose the tax to:

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

(2) provide for 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. 184, Secs. 5 (part), 8 (part).) [[[1011.251, 1031.251 similar]]]

Source Law

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

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

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

(3) for the purpose of making further improvements and additions to the hospital system, and, for the acquisition of necessary sites therefor, by purchase, lease, or condemnation… . [The tax so levied shall be collected] on all property subject to the hospital district taxation … .

Sec. 8. … 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 184, Acts of the 60th Legislature, Regular Session, 1967, refers to the assessment and collection of district taxes on county tax values at the same time county taxes are assessed and collected. 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 appraisal of property for taxation by a taxing unit, including a hospital district. The omitted law reads: [[[80c20(3)]]]

Sec. 5. [The board of directors of such 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] at the same time taxes are levied for county purposes, using county values and the county tax roll, … . Concurrently with the levy of county taxes by the commissioners court, the board of directors shall levy the tax on all taxable property within the district which is subject to taxation and … . [The tax so levied shall be collected] … on the county tax values, and in the same manner and under the same conditions as county taxes… .

(2) Section 5, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, refers to the initial levying of taxes for the district and provides that the taxes shall be levied for the entire year in which they are initially levied. The revised law omits the provision as executed. The omitted law reads: [[[New]]]

Sec. 5. … provided that the taxes initially levied can be levied at any time and shall be levied for the entire year in which such taxes are levied. …

Revised Law

Sec. 1055.252. TAX RATE. The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property. (Acts 60th Leg., R.S., Ch. 184, Sec. 5 (part).) [[[1011.252]]]

Source Law

Sec. 5. [The board of directors … shall … levy … a tax] of not to exceed 75 cents on the $100 valuation of all taxable property [within the hospital district,] … .

Revisor's Note

Section 5, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, requires the board to certify the tax rate to the tax assessor-collector. The revised law omits that provision because Section 26.05(a), Tax Code, requires the governing body of a taxing unit to adopt a tax rate for the current year and to notify the tax assessor of that rate. The omitted law reads: [[[1031.251 RN]]]

Sec. 5. … [board of directors] … shall immediately certify such tax rate to the tax collector of Marion County, …

Sec. 8. … [the board of directors shall] … certify the tax rate for such year to the county tax assessor and collector as provided in Section 5 hereof, and …

Revised Law

Sec. 1055.253. ASSESSMENT AND COLLECTION BY COUNTY TAX COLLECTOR. The collector of taxes for Marion County shall assess and collect taxes imposed by the district. (Acts 60th Leg., R.S., Ch. 184, Secs. 5 (part), 8 (part).) [[[1011.253]]]

Source Law

Sec. 5. … The tax so levied shall be collected on all property [subject to the hospital district taxation] by the collector of taxes for Marion County … .

Sec. 8. … [the tax assessor and collector as provided in Section 5 hereof, and] it shall be the duty of the said tax assessor and collector to assess and collect such tax.

Revisor's Note

(1) Section 5, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, provides that the county tax assessor-collector may charge a fee for the collection of district taxes. The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979. See Revisor's Note (1) to Section 1055.251. 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: [[[1025.253 RN(3)]]]

Sec. 5. … The district shall pay the collector of taxes a reasonable fee based on the actual cost of collecting the taxes. …

(2) Section 5, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, provides that tax collections 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: [[[1025.253 RN(5)]]]

Sec. 5. … The tax collections shall be deposited in the district depository; and such funds shall be withdrawn only as provided herein… .

Revisor's Note

(End of Chapter)

(1) Section 18, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, provides that the act is severable. The revised law omits that provision because it duplicates Section 311.032, Government Code (Code Construction Act), which provides that a provision of a statute is severable from each other provision of the statute that can be given effect. The omitted law reads: [[[80c20(3)]]]

Sec. 18. … If any provision of this Act should be invalid, such fact shall not affect the authorization for the creation of the district or the validity of any other provisions of this Act, and the Legislature hereby declares that it would have created the district and enacted the valid provisions of this Act notwithstanding the invalidity of any other provision or provisions hereof.

(2) Section 19, Chapter 184, Acts of the 60th Legislature, Regular Session, 1967, provides that public notice of enactment of the statute was provided in a manner that satisfies the requirements of the Texas Constitution. The revised law omits that section as executed. The omitted law reads:

Sec. 19. Proof of publication of the constitutional notice required in the enactment hereof under the provisions of Section 9 of Article IX 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.


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