80C116(3) MTB

 

CHAPTER 1053. LUBBOCK COUNTY HOSPITAL DISTRICT OF LUBBOCK COUNTY, TEXAS

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 1053.001.  DEFINITIONS.  In this chapter:

(1)  "Board" means the board of hospital managers of the district.

(2)  "Commissioners court" means the Commissioners Court of Lubbock County.

(3)  "District" means the Lubbock County Hospital District of Lubbock County, Texas.

(4)  "Manager" means a member of the board.  (New.)

Revisor's Note

The definitions of "board," "commissioners court," "district," and "manager" are added to the revised law for drafting convenience and to eliminate frequent, unnecessary repetition of the substance of the definitions.

Revised Law

Sec. 1053.002.  AUTHORITY FOR OPERATION.  The Lubbock County Hospital District of Lubbock County, Texas, operates under the authority of Section 9, Article IX, Texas Constitution.  (Acts 60th Leg., R.S., Ch. 484, Sec. 1 (part).)

Source Law

Sec. 1.  By authority of Section 9, Article IX, Constitution of the State of Texas, this Act  authorizes the creation of Lubbock County Hospital District of Lubbock County, Texas, for the creation, establishment, maintenance, and operation of a hospital district … .

Revisor's Note

Section 1, Chapter 484, 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, that term is included in the meaning of "operation."

Revised Law

Sec. 1053.003.  DISTRICT TERRITORY.  (a) The boundaries of the district are coextensive with the boundaries of Lubbock County, Texas, as the boundaries of Lubbock County appear of record according to the field notes and plats on file in the county clerk's office.

(b)  The boundaries of the district described by Subsection (a) form a closure.  An error in copying the description does not affect the validity of the district.  (Acts 60th Leg., R.S., Ch. 484, Secs. 1 (part), 2.)

Source Law

Sec. 1.  … [Lubbock County Hospital District] … composed of the area described in Section 2 … .

Sec. 2.  (a)  The boundaries of this district are coterminous with the boundaries of Lubbock County, Texas, as the same appear of record according to the field notes and plats on file in the office of the County Clerk of Lubbock County, Texas.

(b)  The Legislature finds that the boundary of the district set forth in Subsection (a) of this section forms a closure and any error in copying the description contained in that subsection does not affect the validity of the district.

Revised Law

Sec. 1053.004.  DISTRICT SUPPORT, MAINTENANCE, AND DEBT NOT STATE OBLIGATION.  The support and maintenance of the district's hospital system, including medical or other health facilities, and any indebtedness incurred by the district under this chapter may not become a charge against or obligation of this state.  (Acts 60th Leg., R.S., Ch. 484, Sec. 21 (part).)

Source Law

Sec. 21.  The support and maintenance of the hospital system, including medical facilities or other health facilities, of the district and any indebtedness incurred by the district under this Act shall never become a charge against nor an obligation of the State of Texas, … .

Revised Law

Sec. 1053.005.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.  The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility.  (Acts 60th Leg., R.S., Ch. 484, Sec. 21 (part).)

Source Law

Sec. 21.  … nor shall any direct appropriation be made by the Legislature of the State of Texas for the construction, maintenance or improvement of any of the facilities of the district.

Revisor's Note

(End of Subchapter)

Sections 1, 4, and 5, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, provide procedures for holding an election on the creation of the district and the imposition of an ad valorem tax.  Because the creation of the district and the imposition of the tax were approved at the election, the revised law omits the relevant law as executed.  The omitted law reads:

Sec. 1.  . . . providing that such district shall not be created or such tax authorized unless approved by a majority of the qualified property taxpaying electors thereof voting at an election called for the purpose.

Sec. 4.  (a)  On receiving the petition of 100 people who are qualified property taxpaying electors of a proposed hospital district, or by its own order, recorded in the minutes, the Commissioners Court of Lubbock County in which this proposed hospital district is located shall order an election to be held to approve the creation of the proposed hospital district.  The election must be held during the period beginning on the 20th day and ending with the 30th day after the date of the order.

(b)  The order calling the election must contain the time and place, or places, of holding the election, the form of the ballots, and the presiding judge for each voting place.

(c)  The commissioners court shall publish a substantial copy of the election order in a newspaper of general circulation in the district once a week for two consecutive weeks before the date of the election.  The first notice must be published at least 14 days before the date of the election.

(d)  The presiding judge of each voting place shall supervise the counting of all votes cast and shall certify the results to the commissioners court within ten days after the election.  A copy of the results are to be filed with the county clerk and become of public record.

(e)  At the election, the qualified property taxpaying electors shall vote whether or not the proposed hospital district is to be created.  A majority of the qualified property taxpaying electors must approve the creation of the district.

(f)  The ballot for the creation of the district must be substantially as follows:

"FOR the creation of Lubbock County Hospital District of Lubbock County, Texas."

"AGAINST the creation of Lubbock County Hospital District of Lubbock County, Texas."

(g)  If a majority of the persons voting in the election vote for the creation of the district, the commissioners court shall, within ten days after the results are filed, declare the results and order the district created.  A copy of this order shall be placed in the minutes of the court.

(h)  If the proposition to create the Lubbock County Hospital District of Lubbock County, Texas, 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.

(i)  At the time of the election to create the district, the commissioners court may order an election to determine whether the district may levy taxes within the district.  This tax may not exceed 75 cents on the $100 va1uation of all taxable property within the district.  If the commissioners court does not include this election in the order for the election to create the district, the board of hospital managers may order this election at any time.

(j)  Prior to this election, notice must be given by the appropriate governmental unit, either the commissioners court or the board of managers in the same manner provided in Section 4 of this Act.  The presiding judge of each voting place shall certify the results to the appropriate governmental unit which shall declare the results.  The results are to be of public record.

(k)  The ballot for this election must contain substantially the following:

"FOR the levy of a tax not to exceed 75 cents on the $100 valuation on all property subject to taxation within the district."

"AGAINST the levy of a tax not to exceed 75 cents on the $100 valuation on all property subject to taxation within the district."

(l)  The board of managers shall not levy any tax within the district until a majority of the qualified electors who own taxable property within the district and who have duly rendered that property for taxation voting in an election for this purpose vote for the levy of this tax.

Sec. 5.  After a majority of those persons voting to create such hospital district and to levy a tax therefor have voted, … .

[Sections 1053.006-1053.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1053.051.  BOARD APPOINTMENT; TERM.  (a)  The board consists of not fewer than five and not more than seven managers appointed as follows:

(1)  one ex officio manager appointed by the Texas Tech University Board of Regents; and

(2)  the remaining managers appointed by the commissioners court.

(b)  Managers serve two-year terms.  The terms may overlap. (Acts 60th Leg., R.S., Ch. 484, Sec. 8(a) (part).)

Source Law

Sec. 8.  (a)  The commissioners court and the Texas Tech University board of regents shall appoint a board of hospital managers, consisting of not less than five nor more than seven members, who shall serve for a term of two years, with overlapping terms if desired, and … .  The Texas Tech University board of regents shall appoint one ex officio member and the commissioners court shall appoint the remaining members. …

Revisor's Note

Section 8(a), Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, refers to the initial appointments to the board. The revised law omits the provision as executed.  The omitted law reads:

(a)  . . . with initial appointments to terms of office arranged accordingly, … .

Revised Law

Sec. 1053.052.  EX OFFICIO MANAGER.  (a)  The ex officio manager has all powers of another manager, except the ex officio manager may not vote.

(b)  The ex officio manager shall:

(1)  attend executive sessions of the board; and

(2)  have access to all documents reviewed or considered by the board or its staff.  (Acts 60th Leg., R.S., Ch. 484, Sec. 8(a) (part).)

Source Law

(a)  …  The ex officio member appointed by the Texas Tech University board of regents shall have all powers of a member of the board, except that the member may not vote.  The ex officio member shall attend executive sessions of the board, shall have access to all documents reviewed or considered by the board or its staff, and shall have any and all other powers of a member of the board with the exception of voting… .

Revised Law

Sec. 1053.053.  OFFICERS.  (a)  The board shall select from among the managers a presiding officer, who shall preside over the board.

(b)  A presiding officer pro tem shall preside in the absence of the presiding officer.

(c)  The district administrator or any manager may be appointed secretary.  (Acts 60th Leg., R.S., Ch. 484, Sec. 8(e) (part).)

Source Law

(e)  . . .  From among its members, the board shall choose a chairman, who shall preside; or in his absence a chairman pro tem shall preside; and the administrator or any member of the board may be appointed secretary… .

Revisor's Note

Section 8(e), Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, refers to a "chairman" and a "chairman pro tem."  Throughout this chapter, the revised law substitutes "presiding officer" and "presiding officer pro tem" for those terms because, in context, the terms have the same meaning and "presiding officer" is more commonly used and is gender-neutral.

Revised Law

Sec. 1053.054.  COMPENSATION.  A manager serves without pay.  (Acts 60th Leg., R.S., Ch. 484, Sec. 8(a) (part).)

Source Law

(a)  … [members, who shall serve] … without pay, and … .

Revised Law

Sec. 1053.055.  RECORDS OF PROCEEDINGS.  (a)  The secretary shall keep suitable records of all proceedings of each board meeting.

(b)  After each meeting:

(1)  the manager presiding at the meeting shall read and sign the record; and

(2)  the secretary shall attest the record.   (Acts 60th Leg., R.S., Ch. 484, Sec. 8(e) (part).)

Source Law

(e)  . . .  The board shall require the secretary to keep suitable records of all proceedings of each meeting of the board.  Such record shall be read and signed after each meeting by the chairman or the member presiding, and attested by the secretary… .

Revised Law

Sec. 1053.056.  DISTRICT ADMINISTRATOR.  (a)  The board shall appoint a general manager qualified by training and experience as the district administrator.

(b)  The district administrator serves for a term not to exceed two years and is entitled to receive the compensation determined by the board.

(c)  The board may remove the district administrator at any time.

(d)  Before assuming the duties of district administrator, the administrator must execute a bond payable to the district in an amount of not less than $10,000 that:

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

(2)  contains other conditions the board may require.  (Acts 60th Leg., R.S., Ch. 484, Sec. 8(b) (part).)

Source Law

(b)  The board shall appoint a general manager, to be known as the administrator of the hospital district.  The administrator shall hold office for a term not to exceed two years, and shall receive such compensation as may be fixed by the board.  The administrator shall be subject to removal at any time by the board.  The administrator shall, before entering into the discharge of his duties, execute a bond payable to the district, in the amount of not less than $10,000, conditioned that he shall well and faithfully perform the duties required of him, and containing such other conditions as the board may require… .  He shall be a person qualified by training and experience for the position of administrator.

Revised Law

Sec. 1053.057.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.  Subject to the limitations prescribed by the board, the district administrator shall:

(1)  perform the duties required by the board;

(2)  supervise the work and activities of the district; and

(3)  direct the affairs of the district.  (Acts 60th Leg., R.S., Ch. 484, Sec. 8(b) (part).)

Source Law

(b)  …  The administrator shall perform all duties which may be required of him by the board, and shall supervise all of the work and activities of the district and have general direction of the affairs of the district, within such limitations as may be prescribed by the board… .

Revised Law

Sec. 1053.058.  ASSISTANT ADMINISTRATOR.  (a)  The board may designate an assistant administrator to discharge a duty or function of the district administrator in the event of the administrator's incapacity, absence, or inability to discharge the duty or function.

(b)  The assistant administrator shall post the bond required by board order.

(c)  The assistant administrator is subject to the limitations prescribed by board order. (Acts 60th Leg., R.S., Ch. 484, Sec. 12.)

Source Law

Sec. 12.  In the event of incapacity, absence or inability of the administrator to discharge any of the duties required of him, the board may designate an assistant to the administrator to discharge any duties or functions required of the administrator.  Such assistant or other persons shall give such bond and have such limitations upon his authority as may be fixed by the order of the board.

Revised Law

Sec. 1053.059.  LEGAL COUNSEL.  (a)  The appropriate county, district, or criminal district attorney charged with representing Lubbock County in civil matters shall represent the district in all legal matters.

(b)  The district shall contribute sufficient money to the Lubbock County general fund for the account designated for the appropriate attorney described in Subsection (a) to pay all additional salaries and expenses incurred by the attorney in performing the duties required by the district.

(c)  The board may employ additional legal counsel the board considers advisable.  (Acts 60th Leg., R.S., Ch. 484, Sec. 17.)

Source Law

Sec. 17.  It shall be the duty of the county attorney, district attorney, or criminal district attorney, as the case may be, charged with the duty of representing the county in civil matters, to represent the hospital district in all legal matters; provided, however, that the board of hospital managers shall be authorized at its discretion to employ additional legal counsel when the board deems advisable.

The hospital district shall contribute sufficient funds to the general fund of the county for the account of the budget of the county attorney, district attorney or criminal district attorney, as the case may be, to pay all additional salaries and expenses incurred by such officer in performing the duties required of him by such district.

Revisor's Note

Section 17, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, refers to "the county." Throughout this chapter, the revised law substitutes "Lubbock County" for the quoted language because Lubbock County is the county in which the district is located.

Revised Law

Sec. 1053.060.  APPOINTMENT OF STAFF AND EMPLOYEES.  (a)  The board may appoint to the staff any doctors and employ any technicians, nurses, and other employees considered advisable for the efficient operation of the hospital or hospital system, including medical or other health facilities.

(b)  A contract or term of employment under Subsection (a) may not exceed two years.  (Acts 60th Leg., R.S., Ch. 484, Sec. 8(c).)

Source Law

(c)  The board of managers shall have the authority to appoint to the staff such doctors, and employ such technicians, nurses and other employees of every kind and character as may be deemed advisable for the efficient operation of the hospital or hospital system, including medical facilities or other health facilities; provided that no contract or term of employment shall exceed the period of two years.

Revised Law

Sec. 1053.061.  RETIREMENT PROGRAM.  (a)  With the approval of the commissioners court, the board may contract with this state or the federal government as necessary to establish or continue a retirement program for the benefit of district employees.

(b)  The board may establish other retirement programs for the benefit of district employees as it considers necessary and advisable. (Acts 60th Leg., R.S., Ch. 484, Secs. 8(d) (part), 9.)

Source Law

[Sec. 8]

(d)  [The board of managers, with the approval of the commissioners court] … .  Further, under the same conditions, the board of managers may enter into such contracts with the state and federal government as may be necessary to establish or continue a retirement program for the benefit of its employees.

Sec. 9.  The board of managers, may in addition to retirement programs authorized by this Act establish such other retirement program for the benefit of its employees as it deems necessary and advisable.

Revised Law

Sec. 1053.062.  SEAL.  The board shall have a seal engraved with the district's name to authenticate the acts of the board.  The secretary of the board shall keep the seal.  (Acts 60th Leg., R.S., Ch. 484, Sec. 8(e) (part).)

Source Law

(e)  …  The board shall have a seal, on which shall be engraved the name of the hospital district; and said seal shall be kept by the secretary and used in authentication of all acts of the board.

Revisor's Note

(End of Subchapter)

Section 8(e), Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, provides that a majority of the board constitutes a quorum for the transaction of business.  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 revised law also omits "for the transaction of any business" because "quorum" means the number of persons or votes necessary for a body to act.  The omitted law reads:

(e)  A majority of the board of hospital managers shall constitute a quorum for the transaction of any business… .

[Sections 1053.063-1053.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1053.101.  DISTRICT RESPONSIBILITY.  (a)  The district has full responsibility for providing medical and hospital care for the district's needy and indigent residents.

(b)  The district shall provide all necessary medical and hospital care for the district's needy inhabitants.

(c)  The district has full responsibility for providing medical and hospital care for the district's residents and needy inhabitants.  (Acts 60th Leg., R.S., Ch. 484, Secs. 1 (part), 3 (part), 18 (part).)

Source Law

Sec. 1.  … providing that such district so created shall assume full responsibility for providing medical and hospital care for the residents of the district and for its needy inhabitants and … .

Sec. 3.  …  This district shall provide all necessary medical and hospital care for the needy inhabitants of the district… .

Sec. 18.  … such hospital district shall be deemed to have assumed 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 1 and 18, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, provide that the district "shall assume" or "shall be deemed to have assumed" full responsibility for providing medical and hospital care for the district's residents and needy inhabitants, and Section 18 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" and "shall be deemed to have assumed" 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. 1053.102.  RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT.  A political subdivision, other than the district, may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care in the district.  (Acts 60th Leg., R.S., Ch. 484, Secs. 1 (part), 3 (part), 18 (part).)

Source Law

Sec. 1.  … providing that after creation of such district no other municipality or political subdivision shall have the power to levy taxes or issue bonds or other obligations for hospital purposes or for providing medical care within the boundaries described below; … .

Sec. 3.  …  After this district is created as provided in Section 4 of this Act, no other municipality or political subdivision shall have the power to levy taxes or issue bonds or other obligations for hospital purposes or for providing medical care within the boundaries of the district… .

Sec. 18.  Neither Lubbock County nor any city therein, shall, after the creation of such hospital district, levy any tax for hospital purposes; and … .

Revisor's Note

(1)  Sections 1, 3, and 18, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, provide that after creation of the district, certain political subdivisions may not levy taxes or issue bonds.  The revised law omits the references to the creation of the district as executed.  In addition, throughout this chapter, the revised law substitutes "impose" for "levy" because, in this context, the terms are synonymous and the former is more commonly used.

(2)  Sections 1, 3, and 18, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, refer to a "municipality or political subdivision" and "Lubbock County nor any city."  The revised law omits the references to "municipality," "Lubbock County," and "city" because those terms are included in the meaning of "political subdivision."

Revised Law

Sec. 1053.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  The board shall manage, control, and administer the hospital or hospital system, including medical or other health facilities of the district.  (Acts 60th Leg., R.S., Ch. 484, Sec. 8(a) (part).)

Source Law

(a)  … [a board of managers] … whose duties shall be to manage, control and administer the hospital or hospital system, including medical facilities or other health facilities, of the hospital district… .

Revised Law

Sec. 1053.104.  HOSPITAL SYSTEM.  (a)  The district has the responsibility to establish a hospital or hospital system, including medical or other health facilities within its boundaries to provide hospital and medical care to the district's residents.

(b)  Subject to approval of the commissioners court, the district may provide primary care, emergency services, preventive medicine services, and other health-related services outside the district, provided the activities fulfill the purposes of the district under Subsection (a) and Section 1053.101(b).  (Acts 60th Leg., R.S., Ch. 484, Sec. 3 (part).)

Source Law

Sec. 3.  The district authorized to be created by this Act is charged with the responsibility of establishing a hospital or hospital system, including medical facilities or other health facilities, within its boundaries to furnish hospital and medical care to the residents of the district… .  The district, subject to the approval of the Lubbock County Commissioners Court, may render primary care, emergency services, preventive medicine services, and other health-related services outside the district, provided that these activities meet the purpose of the district as established by this section.

Revised Law

Sec. 1053.105.  RULES.  The board may adopt rules for the operation of the hospital or  hospital system, including medical or other health facilities.  (Acts 60th Leg., R.S., Ch. 484, Sec. 8(a) (part).)

Source Law

(a)  …  The board of managers shall have the power and authority … to promulgate rules and regulations for the operation of the hospital or hospital system, including medical facilities or other health facilities.

Revisor's Note

Section 8(a), Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, provides that the board may "promulgate rules and regulations" for the district.  The revised law substitutes "adopt" for "promulgate" because the terms are synonymous and the former is more commonly used.  The revised law omits "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

Revised Law

Sec. 1053.106.  PURCHASING AND ACCOUNTING PROCEDURES.  (a)  The commissioners court may prescribe:

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

(2)  all accounting and control procedures.

(b)  The commissioners court by resolution or order may delegate to the board a power described by Subsection (a).

(c)  The district shall pay the salaries and expenses necessarily incurred by Lubbock County or by an officer or agent of the county in performing a duty prescribed or required by this section.

(d)  An officer, employee, or agent of Lubbock County shall perform any function or service prescribed by the commissioners court under this section.  (Acts 60th Leg., R.S., Ch. 484, Sec. 11.)

Source Law

Sec. 11.  The Commissioners Court of Lubbock County shall have the power to prescribe the method and manner of making purchases and expenditures by and for such hospital district, and also shall be authorized to prescribe all accounting and control procedures, or may delegate any or all such powers to the board of managers of such district by the adoption of an appropriate resolution or order to that effect. The hospital district shall pay all salaries and expenses necessarily incurred by the county or any of its officers and agents in performing any duties which may be prescribed or required under this section.  It shall be the duty of any officer, employee or agent of such county to perform and carry out any function or service prescribed by the commissioners court hereunder.

Revised Law

Sec. 1053.107.  DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.  (a)  Subject to Subchapter D and to approval by the commissioners court, the board may:

(1)  construct, condemn, purchase, acquire, lease, add to, maintain, operate, develop, regulate, sell, exchange, and convey any land, property, property rights, equipment, hospital facilities and systems for the maintenance of hospitals, buildings, structures, and any other facility or service the district requires or has available to sell, lease, or exchange;

(2)  cooperate and contract with any of the following to effect a power described by Subdivision (1):

(A)  the United States government;

(B)  this state;

(C)  a municipality;

(D)  a hospital district;

(E)  a department of a governing body described by Subparagraphs (A)-(D); or

(F)  a privately owned or operated hospital, corporate or otherwise, in the district; and

(3)  provide office space, equipment, supplies, and services for the use of the Lubbock County medical examiner's office for medical, hospital, or other purposes unrelated to a criminal investigation.

(b)  A contract under Subsection (a)(2) must, in the opinion of the board and the commissioners court, be expedient and advantageous to the district under existing circumstances, and for fair and reasonable compensation and on terms and for a length of time that furthers and assists the district in performing its duty to provide medical and hospital care to needy inhabitants of Lubbock County.  (Acts 60th Leg., R.S., Ch. 484, Sec. 10.)

Source Law

Sec. 10.  Subject to Section 10A of this Act, the board of managers, with the approval of the commissioners court, shall have the power:

(a)  To construct, condemn and purchase, purchase and acquire, lease, add to, maintain, operate, develop and regulate, sell, exchange and convey any and all lands, property, property rights, equipment, hospital facilities and systems for the maintenance of hospitals, buildings, structures, and any and all other facilities and services the hospital district may require or may have available to sell, lease or exchange;

(b)  To further effectuate such powers, the board of managers, with the approval of the commissioners court, may cooperate and contract with the United States government, the State of Texas, any municipality or other hospital district, or any department of those governing bodies, or with any privately owned or operated hospital, corporate or otherwise, which privately owned or operated hospital is situated in the hospital district; provided, in the opinion of the board of managers and of the commissioners court, such a contract is deemed expedient and advantageous to the hospital district under existing circumstances, and be for such fair and reasonable compensation and on such other terms and for such length of time as may be deemed to further and assist the hospital district in performing its duty to provide medical and hospital care to needy inhabitants of the county;

(c)  To provide office space, equipment, supplies, and services for the use of the county medical examiner's office for medical, hospital, and other non-criminal-investigation-related purposes.

Revised Law

Sec. 1053.108.  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. 484, Sec. 14.)

Source Law

Sec. 14.  A hospital district organized in pursuance of this Act 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, powers, 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 numbered 2 in Article 3268, Vernon's Texas Civil Statutes, 1925, 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 14, Chapter 484, 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 14, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, provides that the district must exercise the power of eminent domain in the manner provided by "[g]eneral [l]aw 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 14, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, refers to "Paragraph numbered 2 in Article 3268, Vernon's Texas Civil Statutes, 1925."  That statute was codified in 1983 as Section 21.021(a), Property Code.  The revised law is drafted accordingly.

(4)  Section 14, Chapter 484, 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. 1053.109.  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. 484, Sec. 20.)

Source Law

Sec. 20.  Said board of managers 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 managers for such purposes and under such directions, limitations, and provisions as may be prescribed in writing by donor, not inconsistent with proper management and objects of hospital district.

Revisor's Note

Section 20, Chapter 484, 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."

Revised Law

Sec. 1053.110.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT.  The board, with the approval of the commissioners court, may contract with:

(1)  a county for the care and treatment of a sick or injured person of that county; and

(2)  this state or a federal agency for the care and treatment of a sick or injured person for whom the state or agency is responsible.  (Acts 60th Leg., R.S., Ch. 484, Sec. 8(d) (part).)

Source Law

(d)  The board of managers, with the approval of the commissioners court shall be authorized to contract with any county for care and treatment of such county's sick, diseased and injured persons, and with the state and agencies of the federal government for the care and treatment of such persons for whom the state and such agencies of the federal government are responsible… .

Revisor's Note

Section 8(d), Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, refers to the treatment of a "sick, diseased, and injured person."  The revised law omits the reference to "diseased" because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1053.111.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient is admitted to a district facility, the district administrator 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 the district administrator determines that the patient or those relatives cannot pay all or part of the costs of the care and treatment in the hospital, the amount of the costs that cannot be paid becomes a charge against the district.

(c)  If the district administrator determines that the patient or those relatives are liable 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 administrator may collect the amount from the patient's estate, or from any relative who is legally liable for the patient's support, in the manner provided by law for the collection of expenses of the last illness of a deceased person.

(e)  If there is a dispute as to the ability to pay, or doubt in the mind of the district administrator, the county court 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. 484, Sec. 19.)

Source Law

Sec. 19.  Whenever a patient has been admitted to the facilities of the hospital district, the administrator shall cause inquiry to be made as to his circumstances, and of the relatives of such patient legally liable for his support.  If he finds 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 administrator 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 administrator 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 administrator, the county court 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. 1053.112.  AUTHORITY TO SUE AND BE SUED.  The board may sue and be sued.  (Acts 60th Leg., R.S., Ch. 484, Sec. 8(a) (part).)

Source Law

(a)  …  [The board of managers shall have the power and authority] to sue and be sued and … .

Revisor's Note

(End of Subchapter)

Section 16, Chapter 484, 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 16 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. 16.  The hospital district established or maintained under 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 of the commissioners court of the county, and resident officers 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 1053.113-1053.150 reserved for expansion]

SUBCHAPTER D.  SALE OR LEASE OF CERTAIN FACILITY

Revised Law

Sec. 1053.151.  DEFINITION.  In this subchapter, "hospital official" means the following officers or employees, or their equivalent, of the teaching hospital described by Section 1053.152(a):

(1)  the executive director;

(2)  the president;

(3)  the chief executive officer;

(4)  the chief operating officer;

(5)  the chief financial officer;

(6)  any vice president; and

(7)  any other officer.  (Acts 60th Leg., R.S., Ch. 484, Sec. 10A(a)(1).)

Source Law

Sec. 10A.  (a)  In this section:

(1)  "Hospital official" means the following officers or employees, or their equivalent, of the teaching hospital described by Subsection (b) of this section:

(A)  the executive director;

(B)  the president;

(C)  the chief executive officer;

(D)  the chief operating officer;

(E)  the chief financial officer;

(F)  any vice president; and

(G)  any other officer.

Revised Law

Sec. 1053.152.  RESOLUTION; SALE OR LEASE OF FACILITY.  (a)  Subject to Subsection (c) and the approval of the commissioners court, the board by resolution may order the sale or lease of a facility that is:

(1)  owned and operated by the district as a teaching hospital; and

(2)  located on the campus of Texas Tech University.

(b)  The resolution must include a finding by the board that the sale or lease:

(1)  is in the best interests of district residents; and

(2)  will not financially benefit a hospital official, other than from the continuation of a compensation package existing before the date of the sale or lease.

(c)  The board may sell or lease the facility only if:

(1)  no hospital official has made a disclosure under Sections 1053.156 and 1053.157 at any time before the date of the sale or lease; and

(2)  a majority of the votes cast at an election held under this subchapter approves the sale or lease.  (Acts 60th Leg., R.S., Ch. 484, Secs. 10A(b) (part), (j).)

Source Law

(b)  The board of managers by resolution, and with the approval of the commissioners court, may order the sale or lease of a facility owned and operated by the hospital district as a teaching hospital that is located on the campus of Texas Tech University, contingent on certain disclosure requirements under this section and voter approval at an election called and held for that purpose.  The resolution must include a finding by the board of managers that the sale or lease is in the best interests of the residents of the hospital district and that no hospital official will benefit financially from the sale or lease, other than from the continuation of a compensation package existing before the date of the sale or lease… .

(j)  The board of managers may sell or lease the facility only if:

(1)  a hospital official has not made a disclosure under Subsections (f) and (g) of this section at any time before the date of the sale or lease; and

(2)  a majority of the votes cast at an election held under this section approves the sale or lease.

Revisor's Note

Section 10A(b), Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, refers to an election "called and held."  Throughout this chapter, the revised law omits references 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.

Revised Law

Sec. 1053.153.  ELECTION.  (a)  As soon as possible after the board adopts a resolution under Section 1053.152, the commissioners court shall order an election on the question of selling or leasing the facility.

(b)  The election shall be held on the first authorized uniform election date prescribed by Subchapter A, Chapter 41, Election Code, that complies with Section 3.005, Election Code.  (Acts 60th Leg., R.S., Ch. 484, Secs. 10A(b) (part), (c).)

Source Law

(b)  …  As soon as possible after the board of managers adopts the resolution, the Commissioners Court of Lubbock County shall order an election on the question of selling or leasing the facility.

(c)  An election ordered under Subsection (b) of this section shall be held on the first authorized uniform election date prescribed by Subchapter A, Chapter 41, Election Code, that occurs after the 45th day after the date the election is ordered.

Revisor's Note

Section 10A(c), Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, requires an election to be held on the first uniform election date "after the 45th day after the date the election is ordered."  The revised law omits the quoted language as superseded by Section 3.005, Election Code, applicable to the district under Section 1.002, Election Code.  Section 3.005, as amended by Chapter 925, Acts of the 78th Legislature, Regular Session, 2003, requires an election order issued by the authority of a political subdivision to be issued not later than the 62nd day before election day and provides that Section 3.005 supersedes a law outside the Election Code to the extent of any conflict.

Revised Law

Sec. 1053.154.  BALLOT.  The ballot for an election under this subchapter shall be printed to permit voting for or against the proposition: "Approving the ________ (sale or lease, as appropriate) of __________ (name of facility)."  (Acts 60th Leg., R.S., Ch. 484, Sec. 10A(d).)

Source Law

(d)  The ballot for the election shall be printed to permit voting for or against the proposition: "Approving the ________ (sale or lease, as appropriate) of __________ (insert the name of the facility)."

Revised Law

Sec. 1053.155.  DISCLOSURE OF SALE OR LEASE TERMS.  The presiding officer of the board shall disclose the terms of the proposed sale or lease of a facility described by Section 1053.152 not later than the 30th day before the date of an election held under this subchapter.  The disclosure must include both oral and written agreements relating to the sale or lease.  (Acts 60th Leg., R.S., Ch. 484, Sec. 10A(e).)

Source Law

(e)  The chairman of the board of managers shall disclose, not later than the 30th day before the date of an election held under this section, the terms of the proposed sale or lease of a facility described by Subsection (b) of this section.  The disclosure must include both oral and written agreements relating to the sale or lease.

Revised Law

Sec. 1053.156.  DISCLOSURE OF FINANCIAL INTEREST.  (a)  In this section, "substantial interest" has the meaning assigned by Section 171˙.002, Local Government Code.

(b)  A manager or hospital official shall disclose any financial interest the person has in the sale or lease of a facility described by Section 1053.152 not later than the 30th day before the date of an election held under this subchapter.

(c)  For purposes of this section, a person has a financial interest in the sale or lease if the person:

(1)  has a substantial interest in a business entity involved in the sale or lease;

(2)  is related within the second degree by consanguinity or affinity, as determined under Chapter 573, Government Code, to a person who has a substantial interest in a business entity involved in the sale or lease; or

(3)  is a hospital official who will benefit financially from the sale or lease, other than from the continuation of a compensation package existing before the date of the sale or lease.  (Acts 60th Leg., R.S., Ch. 484, Secs. 10A(a)(2), (f).)

Source Law

Sec. 10A.  (a)  In this section:

(2)  "Substantial interest" has the meaning assigned by Section 171.002, Local Government Code.

(f)  A member of the board of managers or a hospital official shall disclose, not later than the 30th day before the date of an election held under this section, any financial interest that the person has in the sale or lease of a facility described by Subsection (b) of this section.  For purposes of this subsection, a person has a financial interest in the sale or lease if the person:

(1)  has a substantial interest in a business entity involved in the sale or lease;

(2)  is related within the second degree by consanguinity or affinity, as determined under Chapter 573, Government Code, to a person who has a substantial interest in a business entity involved in the sale or lease; or

(3)  is a hospital official who will benefit financially from the sale or lease, other than from the continuation of a compensation package existing before the date of the sale or lease.

Revised Law

Sec. 1053.157.  DISCLOSURE; PUBLIC RECORD.  (a)  A person shall make a disclosure required under Section 1053.155 or 1053.156 by filing the disclosure with the commissioners court and the board.

(b)  The filed disclosure is a public record.  (Acts 60th Leg., R.S., Ch. 484, Sec. 10A(g).)

Source Law

(g)  A person shall make a disclosure required under Subsection (e) or (f) of this section by filing the disclosure with the Commissioners Court of Lubbock County and the board of managers.  A disclosure of information filed under this section is a public record.

Revised Law

Sec. 1053.158.  ELECTION CANCELLATION.  The commissioners court shall cancel an election ordered under this subchapter if a hospital official makes a disclosure under Sections 1053.156 and 1053.157 at any time before the date of the election.  (Acts 60th Leg., R.S., Ch. 484, Sec. 10A(i).)

Source Law

(i)  The Commissioners Court of Lubbock County shall cancel an election ordered under this section if a hospital official makes a disclosure of a financial interest in the sale or lease of a facility under Subsections (f) and (g) of this section at any time before the date of the election.

Revised Law

Sec. 1053.159.  SUBSEQUENT ELECTIONS.  If a majority of the votes cast at an election under this subchapter do not approve the sale or lease of a facility under this subchapter, another election to approve the sale or lease, as appropriate, may not be held before the first anniversary of the most recent election on the proposition. (Acts 60th Leg., R.S., Ch. 484, Sec. 10A(l).)

Source Law

(l)  If a majority of the votes cast at the election do not approve the sale or lease of the facility, another election to approve the sale or lease, as appropriate, may not be held before the first anniversary of the most recent election on the proposition.

Revised Law

Sec. 1053.160.  SALE OR LEASE NOT INVALID.  A disclosure under this subchapter that is made after the date on which the sale or lease of the facility occurs does not invalidate the sale or lease.  (Acts 60th Leg., R.S., Ch. 484, Sec. 10A(k).)

Source Law

(k)  A disclosure under this section that is made after the date on which the sale or lease of the facility occurs does not invalidate the sale or lease.

Revised Law

Sec. 1053.161.  CRIMINAL PENALTY.  (a)  A person required to make a disclosure under Section 1053.156 commits an offense if the person knowingly fails to make the disclosure within the period prescribed by that section.

(b)  An offense under this section is a Class A misdemeanor.  (Acts 60th Leg., R.S., Ch. 484, Sec. 10A(h).)

Source Law

(h)  A person required to make a disclosure under Subsection (f) of this section commits an offense if the person knowingly fails to make the disclosure within the period prescribed by that subsection.  An offense under this subsection is a Class A misdemeanor.

[Sections 1053.162-1053.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1053.201.  BUDGET.  (a)  The district administrator, under the direction of the board, shall prepare an annual budget.

(b)  The budget must be approved by the board and presented to the commissioners court for final approval.  In like manner, all budget revisions shall be subject to approval by the commissioners court.  (Acts 60th Leg., R.S., Ch. 484, Sec. 13 (part).)

Source Law

Sec. 13.  …  Under the direction of the board of managers, he [the district administrator] shall prepare an annual budget which shall be approved by the board of managers and shall then be presented to the commissioners court for final approval. In like manner all budget revisions shall be subject to approval by the commissioners court.

Revised Law

Sec. 1053.202.  FINANCIAL REPORT.  (a)  As soon as practicable after the close of each fiscal year, the district administrator shall prepare a report that includes:

(1)  a complete sworn statement of:

(A)  all money and choses in action received by the administrator; and

(B)  how the money and choses in action were disbursed or otherwise disposed; and

(2)  the details of district operation during the preceding fiscal year.

(b)  The district administrator shall make the report to:

(1)  the board;

(2)  the commissioners court;

(3)  the Department of State Health Services; and

(4)  the comptroller.  (Acts 60th Leg., R.S., Ch. 484, Sec. 13 (part).)

Source Law

Sec. 13.  Once each year, as soon as practicable after the close of the fiscal year, the administrator of the hospital district shall report to the board of managers, the commissioners court, the State Board of Health and the State Comptroller a full sworn statement of all moneys and choses in action received by such administrator and how disbursed or otherwise disposed of.  Such report shall show in detail the operations of the district for the term… .

Revisor's Note

(1)  Section 13, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, refers to the "State Board of Health."  In 1977, the name of that agency was changed to the "Texas Board of Health."  Section 1.26(a)(5), Chapter 198, Acts of the 78th Legislature, Regular Session, 2003, abolished the Texas Department of Health and the governing body of the department, the Texas Board of Health.  The powers and duties of the department were transferred to the newly created Department of State Health Services.  Accordingly, the revised law substitutes "Department of State Health Services" for "State Board of Health."

(2)  Section 13, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, refers to the "State Comptroller."  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. 1053.203.  DEPOSITORY.  (a)  The board shall select a depository for the district in the manner provided by law for selection of a county depository.  The depository serves for two years and until a successor is selected and qualified.

(b)  All income received by the district shall be deposited with the district depository.  (Acts 60th Leg., R.S., Ch. 484, Secs. 5 (part), 15 (part).)

Source Law

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

Sec. 15.  Within 30 days after the appointment of the board of hospital managers of any district created under this Act, the said board shall select a depository for such district in the manner provided by law for the selection of county depositories; and such depository shall be the depository of such district for a period of two years thereafter, until its successor is selected and qualified… .

Revisor's Note

(1)  Section 15, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, requires the board to select a depository "[w]ithin 30 days after the appointment of the board of hospital managers of any district created under this Act."  The revised law omits the quoted language as executed.

(2)  Section 15, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, states that as an alternative to selecting the initial depository, the board could choose to use the depository selected by the county before creation of the district.  The revised law omits this provision as executed. The omitted law reads:

Sec. 15.  …  In the alternative, the board may elect to use the depository theretofore selected by the county.

Revised Law

Sec. 1053.204.  WARRANTS.  A warrant against district money does not require the signature of the county clerk of Lubbock County.  (Acts 60th Leg., R.S., Ch. 484, Sec. 5 (part).)

Source Law

Sec. 5.  …  Warrants against hospital district funds shall not require the signature of the county clerk… .

[Sections 1053.205-1053.250 reserved for expansion]

SUBCHAPTER F.  BONDS

Revised Law

Sec. 1053.251.  GENERAL OBLIGATION BONDS.  The commissioners court may issue and sell general obligation bonds in the name and on the faith and credit of the district to:

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

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

(3)  purchase, construct, acquire, equip, or enlarge the hospital or hospital system, including medical or other health facilities for any purpose related to that activity.  (Acts 60th Leg., R.S., Ch. 484, Secs. 1 (part), 7 (part).)

Source Law

Sec. 1.  … with power to issue bonds for the purchase, construction, acquisition, repair, or renovation of buildings and improvements and equipping same, for hospital purposes; … .

Sec. 7.  The commissioners court shall have the power and authority to issue and sell as the obligations of such hospital district, and in the name and upon the faith and credit of such hospital district, bonds for the acquisition, purchase, construction, equipment and enlargement of the hospital or hospital system, including medical facilities and other health facilities, and for any or all of such purposes; … .

Revisor's Note

Section 7, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, provides that the commissioners court has the power and authority to issue and sell bonds in the name and on the faith and credit of the district.  Because the types of bonds described by Section 7 are known as "general obligation bonds," the revised law is drafted accordingly.

Revised Law

Sec. 1053.252.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  An ad valorem tax shall be imposed on all property in the district subject to district taxation at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on general obligation bonds issued under Section 1053.251 as the bonds mature.

(b)  The tax required by this section together with any other ad valorem tax imposed for the district 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. 484, Sec. 7 (part).)

Source Law

Sec. 7.  … provided, that a sufficient tax shall be levied upon all taxable property situated within said district subject to hospital district taxation to create an interest and sinking fund to pay the interest and principal as same matures provided said tax together with any other taxes levied for said district shall not exceed 75 cents per $100 valuation in any one year… .

Revisor's Note

Section 7, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, requires the levy of 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. 1053.253.  GENERAL OBLIGATION BOND ELECTION.  (a)  The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held in accordance with the provisions of Chapter 1251, Government Code, relating to county bonds.

(b)  The commissioners court:

(1)  may call the election on its own motion; or

(2)  shall call the election at the request of the board.

(c)  The person charged with conducting and arranging countywide elections is responsible for conducting the bond election.

(d)  The district must provide for the payment of the bond election costs before the commissioners court is required to order an election.  (Acts 60th Leg., R.S., Ch. 484, Sec. 7 (part).)

Source Law

Sec. 7.  …  No bonds shall be issued by such hospital district … until authorized by a majority vote of the legally qualified property taxpaying voters, residing in such hospital district, voting at an election called and held in accordance with the provisions of Chapter 1 of Title 22 of the Revised Civil Statutes of the State of Texas (1925), as amended, relating to county bonds.  Such election may be called by the commissioners court of its own motion, or shall be called by it after request therefor by the board of hospital managers; and the same persons shall be responsible for the conduct of such election and the arrangement of all details thereof as the persons charged therewith in connection with other county-wide elections.  The cost of any such election shall be a charge upon the hospital district and its funds; and the hospital district shall make provision for the payment thereof before the commissioners court shall be required to order such an election… .

Revisor's Note

(1)  Section 7, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, refers to the "legally qualified" voters of the district.  The revised law omits the quoted language as unnecessary in this context because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "legally qualified" voters who are residents of the territory covered by the election to vote in an election.

(2)  Section 7, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, refers to "property taxpaying" voters.  The revised law omits the quoted language 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 7, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, refers to an election held as provided by "Chapter 1 of Title 22 of the Revised Civil Statutes of the State of Texas (1925), as amended." The election provisions of Chapter 1, Title 22, Revised Statutes, are revised as Chapter 1251, Government Code, and the revised law is drafted accordingly. The revised law omits the reference to "as amended" because under Section 311.027, Government Code (Code Construction Act), a reference to a statute applies to all reenactments, revisions, or amendments of that statute unless expressly provided otherwise.

Revised Law

Sec. 1053.254.  EXECUTION OF GENERAL OBLIGATION BONDS.  (a)  The county judge of Lubbock County shall execute the general obligation bonds in the district's name.

(b)  The county clerk of Lubbock County shall countersign the bonds.  (Acts 60th Leg., R.S., Ch. 484, Sec. 7 (part).)

Source Law

Sec. 7.  …  Such bonds shall be executed in the name of the hospital district and on its behalf by the County Judge of Lubbock County, the county within which the hospital district is created, and countersigned by the county clerk, and … .

Revisor's Note

Section 7, Chapter 484, 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.  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. Chapter 1202, Government Code, applies to district bonds by application of Section 1202.001, Government Code.  The omitted law reads:

Sec. 7.  …  [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 such county; and the approval of such bonds by the attorney general shall have the same force and effect as is by law given to his approval of bonds of such county… .

Revised Law

Sec. 1053.255.  REFUNDING BONDS.  (a)  Refunding bonds may be issued without an election and in the manner provided by this subchapter to refund outstanding bonds issued or assumed by the district.

(b)  A refunding bond may be:

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

(2)  exchanged wholly or partly for not less than a similar amount of outstanding bonds and the matured but unpaid interest on the bonds.  (Acts 60th Leg., R.S., Ch. 484, Sec. 7 (part).)

Source Law

Sec. 7.  …  [No bonds shall be issued by such hospital district] (except refunding bonds) … .

In the manner hereinabove provided, the bonds of such hospital district may, without the necessity of any election therefor, be issued for the purpose of refunding and paying off any bonded indebtedness theretofore assumed by such hospital district and any bonds theretofore issued by such hospital district; such refunding bonds may be sold and the proceeds thereof applied to the payment of any such outstanding bonds or may be exchanged in whole or in part for not less than a like amount of said outstanding bonds and interest matured thereon, but unpaid; … .

Revisor's Note

Section 7, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, provides that refunding bonds may not bear interest at a rate that, when calculated in accordance with recognized standard bond interest cost tables, exceeds the average annual interest cost of the bonds to be refunded unless the total interest cost on the refunding bonds is less than the total interest cost on the bonds to be refunded.  Section 7 also provides that any premium required to be paid on the bonds to be refunded before the bonds' maturity date is to be used in computing the total interest cost of the refunding bonds.  The revised law omits that provision as impliedly repealed by Section 2(a), Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), which was revised in 1999 as Section 1204.006(a), Government Code.  Section 1204.006(a), Government Code, permits a public agency to issue bonds at a net effective interest rate not to exceed 15 percent.  Section 1204.006(a) applies to district bonds by application of Section 1204.001, Government Code.  The omitted law reads:

Sec. 7.  … provided the average interest cost per annum on the refunding bonds, computed in accordance with recognized standard bond interest cost tables, shall not exceed the average interest cost per annum so computed upon the bonds to be discharged out of the proceeds of the refunding bonds, unless the total interest cost on the refunding bonds, computed to their respective maturity dates, is less than the total interest cost so computed on the bonds to be discharged out of such proceeds.  In the foregoing computations, any premium or premiums required to be paid upon the bonds to be refunded as a condition to payment in advance of their stated maturity dates shall be taken into account as an addition to the net interest cost to the hospital district of the refunding bonds.

Revisor's Note

(End of Subchapter)

(1)  Section 23, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, provides that district bonds are authorized investments for certain entities.  The revised law omits the provision as unnecessary.  As to several of the entities listed, Section 23 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 23 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. 23.  All bonds issued under this Act shall be and are hereby declared to be legal and authorized investments for banks, savings banks, trust companies, building and loan associations, insurance companies, fiduciaries, and trustees, and for any sinking funds of cities, towns, villages, counties, school districts and other political corporations or subdivisions of the State of Texas, and … .

(2)  Section 23, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, provides that district bonds may secure certain deposits.  Although Section 23 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:

Sec. 23.  … such bonds shall be lawful and sufficient security for said deposits at their face value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1053.256-1053.300 reserved for expansion]

SUBCHAPTER G.  TAXES

Revised Law

Sec. 1053.301.  IMPOSITION OF AD VALOREM TAX.  (a)  The commissioners court shall impose a tax for the benefit of the district on all property in the district subject to district taxation.

(b)  The commissioners court shall impose the tax to:

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

(2)  pay for indebtedness assumed by the district;

(3)  provide for the operation and maintenance of the hospital or hospital system, including medical or other health facilities; and

(4)  when requested by the board and approved by the commissioners court, make improvements and additions to the hospital system, including medical and other health facilities, and acquire necessary sites by purchase, lease, or condemnation.  (Acts 60th Leg., R.S., Ch. 484, Secs. 1 (part), 5 (part).)

Source Law

Sec. 1.  … with authority for the levy of annual taxes … for the purpose of meeting the requirements of the district's bonds, the indebtedness assumed by it and its maintenance and operating expenses, … .

Sec. 5.  … the Commissioners Court of Lubbock County shall have the power and the authority, and it shall be its 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 which may have been assumed or which may be issued by the hospital district for hospital purposes, as herein provided; (2) providing for the operation and maintenance of the hospital or hospital system, including medical facilities or other health facilities; and (3) when requested by the board of hospital managers and approved by the commissioners court, for the purpose of making further improvements and additions to the hospital system, including medical facilities or other health facilities, and for the acquisition of necessary sites therefor, by purchase, lease or condemnation… .

Revised Law

Sec. 1053.302.  TAX RATE.  The commissioners court shall impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district. (Acts 60th Leg., R.S., Ch. 484, Secs. 1 (part), 5 (part).)

Source Law

Sec. 1.  … [for the creation … of a hospital district … with authority for the levy of annual taxes] at a rate not to exceed 75 cents on the $100 valuation of all taxable property within such district … .

Sec. 5.  … [the Commissioners Court of Lubbock County shall have the power and the authority, and it shall be its duty, to levy … a tax] of not to exceed 75 cents on the $100 valuation … .

Revised Law

Sec. 1053.303.  COUNTY TAX ASSESSOR-COLLECTOR.  The tax assessor-collector of Lubbock County shall collect the taxes imposed on all property subject to district taxation.  (Acts 60th Leg., R.S., Ch. 484, Sec. 5 (part).)

Source Law

Sec. 5.  …  The tax so levied shall be collected on all property subject to hospital district taxation by the assessor and collector of taxes for the county … .

Revisor's Note

(1)  Section 5, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, refers to the levy of district taxes on county values at the time and under the conditions that county taxes are levied.  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:

Sec. 5.  … [the Commissioners Court of Lubbock County shall … levy on all property subject to hospital district taxation] … at the same time taxes are levied for county purposes, using the county values and the county tax roll, [a tax] … .

[The tax … 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 484, Acts of the 60th Legislature, Regular Session, 1967, provides that the county tax assessor-collector may charge a fee for the assessment and collection of district taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (1).  Section 6.27(b), Tax Code, provides for the compensation of a county tax assessor-collector assessing and collecting taxes for another taxing unit.  The omitted law reads:

Sec. 5.  …  The assessor and collector of taxes shall charge and deduct from payments to the hospital district the fees for assessing and collecting the tax at the rate of not exceeding one and one half percent of the amounts collected as may be determined by the commissioners court.  Such fees shall be deposited in the county's general fund, and shall be reported as fees of office of the tax assessor and collector… .

(3)  Section 5, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, provides that interest and penalties on district taxes and discounts are the same as for county taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (1). Chapter 33, Tax Code, provides for the assessment of penalties and interest on delinquent taxes, and Section 31.05, Tax Code, provides for discounts on the early payment of taxes.  The omitted law reads:

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

(4)  Section 5, Chapter 484, 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.  …  The residue of tax collections, after deduction of discounts and fees for assessing and collecting, shall be deposited in the district depository; and such funds shall be withdrawn only as provided herein… .

Revisor's Note

(End of Subchapter)

(1)  Section 5, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, provides that the commissioners court may impose taxes for the entire year in which the district is established.  The revised law omits the provision as executed.  The omitted law reads:

Sec. 5.  …  The commissioners court shall have the authority to levy the tax aforesaid for the entire year in which the said hospital district is established, for the purpose of securing funds to initiate the operation of the hospital district, and to pay assumed bonds.

(2)  Section 6, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, provides that the commissioners court may order that district property be assessed at a greater percentage for taxation than the percentage used for state or county taxes if approved by district voters.  The revised law omits the provisions because they have been superseded by Section 26.02, Tax Code.  See Revisor's Note (1) to Section 1053.303.  Section 26.02 prohibits the appraisal of property at a percentage of its appraised value and requires all property subject to taxation to be assessed at 100 percent of its appraised value.  Section 6 also requires the county tax assessor-collector to charge and deduct fees.  That provision is omitted for the reason stated in Revisor's Note (2) to Section 1053.303.  The omitted law reads:

Sec. 6.  The property assessed for said hospital district, upon the order of the Commissioners Court of Lubbock County, shall be assessed at such percentage of its fair cash market value as the commissioners court orders, which may be a greater percentage than that used in assessing the property for state and county purposes.

Further, the Assessor and Collector of Taxes of said county shall charge and deduct from payments to the hospital district the fees for assessing and collecting the tax at the rate of not exceeding one and one-half percent of the amounts assessed as approved by the Board of Equalization and one and one-half percent of the amounts collected, as may be determined by the commissioners court.

Provided, however, that the property within said hospital district shall not be assessed at a greater percentage of its fair cash market value than the percentage at which it is assessed for county and state purposes, nor shall the assessor and collector of taxes of such county charge a fee for assessing and collecting the tax at a rate different from that authorized in Section 5 unless and until an election is duly held in said hospital district for the purpose of approving such procedure.  Said election may be initiated by the commissioners court upon its own motion or upon petition of 100 resident qualified property taxpaying voters, to be held not less than 30 days from the time said election is ordered by the commissioners court.  At said election there shall be submitted to the qualified property taxpaying voters the proposition of whether the property within said hospital district, upon the order of the commissioners court to the assessor and collector of taxes of the county, shall be assessed at a greater percentage of its fair cash market value than that percentage assessed for county and state purposes, as may be determined by the commissioners court, and a majority of the qualified property taxpaying voters participating in said election shall determine the result of the election.  The ballots shall have printed thereon:

"FOR authorizing the county assessor and collector of taxes, upon the order of the commissioners court, to assess the property within the hospital district at a greater percentage of its fair cash market value than that assessed for state and county purposes."

"AGAINST authorizing the county assessor and collector of taxes, upon the order of the commissioners court, to assess the property within the hospital district at a greater percentage of its fair cash market value than that assessed for state and county purposes."

Revisor's Note

(End of Chapter)

(1)  Section 1, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, provides for the transfer of certain land, buildings, improvements, and equipment to the district after the district is created and provides for the assumption of debt by the district on creation.  The revised law omits the provisions as executed.  The omitted law reads:

Sec. 1.  … providing for the transfer to the hospital district of the title to any land, buildings, improvements and equipment located wholly within such district which may be jointly or separately owned by any city, town or county in said district, … assume the outstanding indebtedness incurred by cities, towns and counties for hospital purposes prior to the creation of the district; … .

(2)  Section 22, Chapter 484, 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.  The Legislature has found that proper notice has been given in the district affected by this Act in accordance with the requirements of Section 9, Article IX, Constitution of the State of Texas.

(3)  Section 2(b), Chapter 1451, Acts of the 76th Legislature, Regular Session, 1999, provides that amendments to the board's composition do not affect the members currently serving on the board and that those members may continue serving until their terms expire.  Section 2(b) also provides that the Texas Tech board of regents shall appoint a board member on the first vacancy occurring after the effective date of the act.  The revised law omits the provision as executed.  The omitted law reads:

(b)  The change in law made by this Act relating to the composition of the board of hospital managers of the Lubbock County Hospital District does not affect the eligibility of a member serving immediately before the effective date of this Act to continue to serve on the board for the term to which the member was appointed.  The Texas Tech University board of regents shall appoint a member to the board of hospital managers in accordance with Section 8, Chapter 484, Acts of the 60th Legislature, Regular Session, 1967, as amended by this Act, to fill the next vacancy that occurs after the effective date of this Act.