80C117(3) YDB

 

CHAPTER 1052.  LOCKNEY GENERAL HOSPITAL DISTRICT

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 1052.001.  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 Lockney General Hospital District.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 1 (part); New.)

Source Law

Sec. 1.  … the Lockney General Hospital District, hereinafter referred to as district, … .

Revisor's Note

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

Revised Law

Sec. 1052.002.  AUTHORITY FOR CREATION.  The Lockney General Hospital District is created under the authority of Section 9, Article IX, Texas Constitution.  The district has the rights, powers, and duties conferred by this chapter and general laws relating to hospital districts.  (Acts 63rd Leg., R.S., Ch. 58, Secs. 1 (part), 2 (part).)

Source Law

Sec. 1.  Pursuant to the authority granted by the provisions of Article IX, Section 9, of the Texas Constitution, [the Lockney General Hospital District] … is hereby authorized to be created and established … .

Sec. 2.  The district herein authorized to be created shall have the rights, powers, and duties, as are conferred by this Act or general laws relating to all hospital districts, … .

Revisor's Note

Section 1, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that Section 9, Article IX, Texas Constitution, authorizes the district to be "created and established."  The revised law omits "established" because, in this context, the meaning of that term is included in the meaning of "created."

Revised Law

Sec. 1052.003.  ESSENTIAL PUBLIC FUNCTION.  The district performs an essential public function in carrying out the purposes of this chapter.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 22 (part).)

Source Law

Sec. 22.  In carrying out the purposes of this Act, the district will be performing an essential public function and … .

Revised Law

Sec. 1052.004.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of County Commissioners Precinct No. 2 of Floyd County as those boundaries existed on January 1, 1973.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 1 (part).)

Source Law

Sec. 1.  … [the Lockney General Hospital District … is hereby authorized to be created and established] so as to be composed of all the territory and property included within Commissioners Precinct No. 2 of Floyd County, Texas, as it was constituted on January 1, 1973, … .

Revisor's Note

Section 1, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, refers to territory that was not in the district at the time of its creation.  The revised law omits the reference as executed.  The omitted law reads:

Sec. 1.  … being all that territory situated in Floyd County, Texas, which is not within the Caprock Hospital District created pursuant to Chapter 238, Acts of the 58th Legislature, Regular Session, 1963 (Article 4494q-14, note, Vernon's Texas Civil Statutes).

Revised Law

Sec. 1052.005.  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 63rd Leg., R.S., Ch. 58, Sec. 24 (part).)

Source Law

Sec. 24.  … [federal or state constitutions] … Where any procedure hereunder may be held by any court to be violative of either of such constitutions, the district shall have the power by resolution to provide an alternative procedure conformable with such constitutions… .

Revisor's Note

Section 24, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that the act does not violate the federal or state constitution and requires that action under the act comply with the constitutions.  The revised law omits the reference 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:

Sec. 24.  Nothing in this Act shall be construed to violate any provision of the federal or state constitutions, and all acts done under this Act shall be in such manner as will conform thereto, whether expressly provided or not… .

Revised Law

Sec. 1052.006.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION.  The support and maintenance of the district may not become a charge against or obligation of this state.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 21 (part).)

Source Law

Sec. 21.  The support and maintenance of the hospital district shall never become a charge against or obligation of the State of Texas… .

Revisor's Note

(End of Subchapter)

(1)  Section 2, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that if there is a conflict between the act and general laws related to hospital districts, the act controls.  The revised law omits that provision because, under general rules of statutory construction, a statute automatically has the effect of repealing prior conflicting  enactments and is ineffective to repeal subsequent legislation.  Furthermore, Section 311.026, Government Code (Code Construction Act), provides that if there is a conflict between a general provision of law and a special provision, the special provision prevails unless the general provision is the later enactment and the manifest intent is that the general provision prevail.  The omitted law reads:

Sec. 2.  [The district … shall have the rights, powers, and duties, as are conferred by … general laws relating to all hospital districts,] but in case of conflict, the provisions of this Act shall control… .

(2)  Section 3, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides procedures for holding an election on 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 those provisions as executed.  The omitted law reads:

Sec. 3.  The district shall not be created nor shall any tax therein be authorized unless and until such creation and such tax are approved by a majority of the qualified electors of the area of the proposed district voting at an election called for such purpose.  Such election shall be called by a majority of the temporary directors of the district and shall be held not less than 35 days from the time such election is ordered.  The election order may provide that the entire district shall constitute one election precinct or county election precincts may be combined for the election.  The order calling the election shall specify the time and places of holding same, the form of ballot, and the presiding judge for each voting place.  Notice of election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in the area of the proposed district, once a week for two consecutive weeks, the first publication to appear at least 14 days prior to the date set for the election.  The failure of any such election shall not operate to prohibit the calling and holding of subsequent elections for the same purpose.  At said election, there shall be submitted to the qualified electors of said proposed district the proposition of whether the district shall be created with authority to levy annual taxes … for the purpose of meeting the requirements of the district's indebtedness and its maintenance and operating expenses.  A majority of the qualified electors of the district voting at said election in favor of the proposition shall be sufficient for its adoption and the creation of the district.

[Sections 1052.007-1052.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1052.051.  BOARD ELECTION; TERM.  (a)  The board consists of five 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)  the terms of three directors expire in odd-numbered years and the terms of two directors expire in even-numbered years.

(c)  The election order must state the time, place, and purpose of the election.

(d)  A director may not serve more than three successive terms.  (Acts 63rd Leg., R.S., Ch. 58, Secs. 4(a) (part), (b) (part).)

Source Law

(a)  … The terms of office of the first three directors named by the court shall expire on the first Tuesday in April, 1975, and the terms of the last two directors named by the court shall expire on the first Tuesday in April, 1974.  A regular election for directors shall be held … in each succeeding year.  The regular election for directors shall be ordered by the board and such order shall state the time, place, and purpose of the election… .

(b)  … no director may serve more than three successive terms… .

Revisor's Note

(1)  Sections 4(a) and (c), Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, prescribe the procedures for the appointment of temporary directors and for the election of successor directors.  The revised law omits those provisions as executed but codifies the establishment of a board consisting of five directors elected from the district at large.  Section 4(a) also establishes staggered two-year terms for the initial appointed directors that expire on the first Tuesday in April of 1974 or 1975.  The revised law codifies the provision specifying staggered terms and specifies the manner in which directors' terms expire, but omits the provision relating to the date on which the initial terms expire as executed.

(2)  Sections 4(a) and (c), Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, prescribe the procedure for the appointment of temporary directors and for the election of successor directors.  The revised law omits the provisions as executed.  The omitted law reads:

Sec. 4.  (a)  Upon the effective date of this Act, the Commissioners Court of Floyd County shall appoint five temporary directors for the district.  Each of the directors shall subscribe to the constitutional oath of office.  Should any of the directors named by the court refuse to act or for any reason fail to qualify as herein required or should a vacancy in office occur, the commissioners court shall fill such vacancy… .

(c)  The directors initially named and their successors in office shall hold office as temporary directors until such time as the creation of the district has been approved at an election as herein provided or for a period of two years, whichever period is shorter.  At such time as the creation of the district is so approved and the returns of the election officially canvassed, the persons acting as temporary directors shall become permanent directors whose terms shall expire as hereinabove provided… .

(3)  Section 4(a), Chapter 58, Acts of the 63rd  Legislature, Regular Session, 1973, provides that directors serve two-year terms.  Section 285.081, Health and Safety Code, applicable to this hospital district, provides a mechanism by which the governing board of a hospital district, on its own motion, may order that the members are to be elected in even-numbered years to serve staggered four-year terms.  The revised law is drafted accordingly and adds a reference to Section 285.081 for the convenience of the reader.

(4)  Section 4(a), Chapter 58, Acts of the 63rd  Legislature, Regular Session, 1973, provides that directors' elections are held on the first Tuesday in April of each year.  The revised law omits that provision as impliedly repealed by Section 41.001, Election Code.  Section 41.001, Election Code, prescribes uniform election dates that all political subdivisions are required to follow.  The first Tuesday in April is not a uniform election date and was not a uniform election date when the Election Code was enacted in 1985.  As enacted in 1985, Section 41.005, Election Code, provided that if a law outside the Election Code required the general election for officers of a political subdivision to be held on a date other than a uniform election date, the governing body was required to set future election dates to comply with the Election Code.  The omitted law reads:

(a)  … [A regular election for directors shall be held] on the first Tuesday in April in each year beginning in 1974, and directors shall be elected at that time and … .

(5)  Section 4(a), Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides for appointing a presiding judge, assistant judge, and clerks.  The revised law omits the provision as superseded by the 1985 enactment of the Election Code, applicable to the district under Section 1.002, Election Code.  Chapter 32, Election Code, governs the selection of judges and clerks.  The omitted law reads:

(a)  … The board shall appoint the presiding judge who shall appoint an assistant judge and such clerks as may be required… .

(6)  Section 4(a), Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that the board shall order the election of directors and shall issue the order at least 15 days before the date of the election.  The revised law omits the provision requiring the board to order the election because it duplicates Section 3.004, Election Code, applicable to the district under Section 1.002, Election Code.  Section 3.004 requires the governing body of a political subdivision that has elective officers to order the general election for those officers.  The revised law also omits the provision stating that the board shall issue the order at least 15 days before the election date as superseded by Section 3.005, Election Code, also 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.  The omitted law reads:

(a)  … The election shall be ordered at least 15 days prior to the date on which the election is to be held… .

Revised Law

Sec. 1052.052.  NOTICE OF ELECTION.  At least five 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 the area of the district.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 4(a) (part).)

Source Law

(a)  … Notice of the election shall be published one time in a newspaper of general circulation in the area of the district at least five days before the election… .

Revised Law

Sec. 1052.053.  BALLOT PETITION.  A person who wants to have the person's name printed on the ballot as a candidate for director must file with the board secretary a petition requesting that action.  The petition must be:

(1)  signed by at least 10 registered voters; and

(2)  filed at least 25 days before the date of the election.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 4(a) (part).)

Source Law

(a)  … Any person desiring his name to be printed on the ballot as a candidate for director shall file a petition, signed by not less than 10 qualified voters, asking that such name be printed on the ballot, with the secretary of the board of directors of the district.  Such petition shall be filed with the secretary at least 25 days prior to the date of election… .

Revisor's Note

Section 4(a), Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, refers to "qualified voters."  The revised law substitutes "registered voters" for the quoted language because in the context of eligibility to sign a petition, Section 277.0021, Election Code, provides that "qualified voter" means a "registered voter."

Revised Law

Sec. 1052.054.  QUALIFICATIONS FOR OFFICE.  To be eligible to hold office as a director, a person must be a resident property-owning taxpaying voter of the district.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 4(b) (part).)

Source Law

(b)  … Any person who is a resident property-owning taxpaying voter of the district shall be eligible to hold office as director of the district but … .

Revisor's Note

Section 4(c), Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, requires each director to take the constitutional oath of office.  The revised law omits that provision because Section 1, Article XVI, Texas Constitution, requires all officers in this state to take the oath (or affirmation) before assuming office.  The omitted law reads:

(c)  … Each permanent director, and his successors in office, shall qualify by executing the constitutional oath of office.

Revised Law

Sec. 1052.055.  BOARD VACANCY.  If a vacancy occurs in the office of director, the remaining directors by majority vote shall appoint a director for the unexpired term.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 4(a) (part).)

Source Law

(a)  … All vacancies in office, … shall be filled by a majority vote of the remaining directors and such appointees shall hold office for the unexpired term for which they were appointed.

Revisor's Note

Section 4(a), Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides a procedure for the appointment of a director to fill a vacancy other than for the original directors' failure to qualify.  The revised law omits the provision as executed.  The omitted law reads:

(a)  … other than for the failure of four or more of the original directors herein appointed to qualify, … .

Revised Law

Sec. 1052.056.  OFFICERS.  (a)  The board shall elect from among its members a president, vice president, secretary, and other officers as in the judgment of the board are necessary.

(b)  The president is the chief executive officer of the district and has the same right to vote as any other director.

(c)  If the president is absent or fails and declines to act, the vice president shall perform the president's duties and exercise the president's powers under this chapter.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 4(b) (part).)

Source Law

(b)  … The board of directors shall elect from its number a president, vice-president, secretary, and such other officers as in the judgment of the board are necessary.  The president shall be the chief executive officer of the district and shall have the same right to vote as any other director.  The vice-president shall perform all duties and exercise all powers conferred by this Act upon the president when the president is absent or fails and declines to act.

Revised Law

Sec. 1052.057.  COMPENSATION; EXPENSES.  A director serves without compensation but may receive actual expenses incurred in attending to district business on approval of the expenses by the remainder of the board.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 4(b) (part).)

Source Law

(b)  No director shall be entitled to compensation, but shall be entitled to receive his actual expenses incurred in attending to the district's business, provided such expenses are approved by the remainder of the board… .

Revised Law

Sec. 1052.058.  DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR.  (a)  The board shall appoint a qualified person as district administrator.

(b)  The board may appoint an assistant administrator.

(c)  The district administrator and any assistant administrator serve at the will of the board and are entitled to the compensation determined by the board.

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

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

(2)  contains other conditions the board may require.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 5 (part).)

Source Law

Sec. 5.  … The board of directors shall appoint a qualified person to be known as the administrator or manager of the hospital district and may in its discretion appoint an assistant to the administrator or manager.  The administrator or manager and assistant administrator or manager, if any, shall serve at the will of the board and shall receive such compensation as may be fixed by the board.  The administrator or manager shall, upon assuming his duties, execute a bond payable to the hospital district in an amount to be set by the board of directors, in no event less than $5,000, conditioned that he shall perform the duties required of him, and containing such other conditions as the board may require… .

Revisor's Note

Section 5, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that the board shall appoint a person as the "administrator or manager" of the district and may appoint an "assistant administrator or manager." Throughout this chapter, the revised law omits "manager" because, in context, "manager" is included within the meaning of "administrator" and "administrator" is the term used by the district.

Revised Law

Sec. 1052.059.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.  Subject to the limitations prescribed by the board, the district administrator shall:

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

(2)  direct the affairs of the district.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 5 (part).)

Source Law

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

Revised Law

Sec. 1052.060.  APPOINTMENT OF STAFF AND EMPLOYEES.  (a)  The board may appoint to the staff any doctors the board considers necessary for the efficient operation of the district and may make temporary appointments as necessary.

(b)  The board shall determine the type, number, and location of district employees required to maintain an adequate hospital system.  The board may employ fiscal agents, accountants, architects, attorneys, and other employees the board considers proper.

(c)  The board may delegate to the district administrator the authority to hire district employees, including technicians and nurses.  (Acts 63rd Leg., R.S., Ch. 58, Secs. 5 (part), 10(a) (part), 17.)

Source Law

Sec. 5.  … The board of directors shall have the authority to appoint to the staff such doctors as it may be deemed necessary for the efficient operation of the district, and may provide for temporary appointments to the staff if warranted by circumstances.  The board may delegate to the administrator or manager the authority to employ technicians, nurses, and employees of the district… .

Sec. 10.  (a)  The board of directors is hereby given complete discretion as to the type of employees and … both as to number and location, … required to … maintain an adequate hospital system… .

Sec. 17.  The board of directors may employ fiscal agents, accountants, architects, and attorneys as it may consider proper.

[Sections 1052.061-1052.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1052.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for providing hospital care for the district's indigent residents.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 20 (part).)

Source Law

Sec. 20.  … The hospital district shall assume full responsibility for providing hospital care for the indigents residing within the district… .

Revisor's Note

Section 20, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that the district "shall assume" full responsibility for providing hospital care for the district's indigent residents.  The revised law substitutes "has" for the quoted language because the duty to assume the responsibility is executed.

Revised Law

Sec. 1052.102.  RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT.  A political subdivision located within the district may not impose a tax or issue bonds or other obligations for hospital purposes for the area of the district or to provide medical care for district inhabitants.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 20 (part).)

Source Law

Sec. 20.  After creation of the hospital district, no municipality or political subdivision within the boundaries of the district shall have the power to levy taxes or issue bonds or other obligations for hospital purposes for the area of the district or for providing medical care of the district's inhabitants… .

Revisor's Note

(1)  Section 20, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that "[a]fter creation of the hospital district," certain political subdivisions may not levy taxes or issue bonds.  The revised law omits the quoted language 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)  Section 20, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, refers to a "municipality or political subdivision."  The revised law omits the reference to "municipality" because "municipality" is included in the meaning of "political subdivision."

Revised Law

Sec. 1052.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  (a)  The board shall manage, control, and administer the hospital system and the district's money and resources.

(b)  Unless specifically stated otherwise in this chapter, the board has the power to do anything which, in their opinion, is necessary for the good maintenance, operation, and welfare of the district and the district's employees, patients, and property.  (Acts 63rd Leg., R.S., Ch. 58, Secs. 5 (part), 21 (part).)

Source Law

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

Sec. 21.  … Unless specifically stated otherwise in this Act, the board of directors shall have any and all power and authority to do any and all things which, in their opinion, are necessary for the good maintenance, operation, and welfare of the hospital district, its employees, patients, and property.

Revised Law

Sec. 1052.104.  HOSPITAL SYSTEM.  (a)  The district shall provide for the establishment of a hospital system by:

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

(2)  equipping the buildings; and

(3)  administering the buildings and equipment for hospital purposes.

(b)  The hospital system may include:

(1)  facilities for domiciliary care of the sick, injured, or geriatric;

(2)  facilities for outpatient clinics;

(3)  dispensaries;

(4)  convalescent home facilities;

(5)  necessary nurses' domiciliaries and training centers;

(6)  blood banks;

(7)  research centers or laboratories; and

(8)  ambulances and other facilities or services the board considers necessary for hospital care.  (Acts 63rd Leg., R.S., Ch. 58, Secs. 2 (part), 10(a) (part).)

Source Law

Sec. 2.  … The district shall provide for the establishment of a hospital system by the purchase, construction, acquisition, repair, or renovation of buildings and equipment, and equipping same, and the administration thereof for hospital purposes… .

Sec. 10.  (a)  … The hospital system may include facilities for domiciliary care of the sick, wounded, and injured, facilities for outpatient clinic or clinics, dispensaries, facilities for geriatric domiciliary care, convalescent home facilities, necessary nurses' domiciliaries and training centers, blood banks, and research centers or laboratories as well as ambulance and other facilities or services deemed necessary for hospital care by the directors.

Revisor's Note

Section 10(a), Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, refers to the care of the "sick, wounded, and injured."  The revised law omits the reference to "wounded" because the meaning of "wounded" is included in the meaning of "injured."

Revised Law

Sec. 1052.105.  RULES.  The board may adopt rules governing the operation of the hospital, the hospital system, and the district's staff and employees.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 5 (part).)

Source Law

Sec. 5.  … The district, through its board of directors shall have the power and authority … to promulgate rules and regulations governing the operation of the hospital, hospital system, its staff, and its employees… .

Revisor's Note

Section 5, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that the board may "promulgate rules and regulations" to govern 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. 1052.106.  PURCHASING AND ACCOUNTING PROCEDURES.  The board may prescribe:

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

(2)  all accounting and control procedures. (Acts 63rd Leg., R.S., Ch. 58, Sec. 11 (part).)

Source Law

Sec. 11.  The board of directors of the district shall have the power to prescribe the method and manner of making purchases and expenditures by and for the district, and shall also be authorized to prescribe all accounting and control procedures… .

Revised Law

Sec. 1052.107.  DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.  (a)  The board shall determine the type of equipment and the type, number, and location of buildings required to maintain an adequate hospital system.

(b)  The board may lease all or part of the district's buildings and other facilities on terms considered to be in the best interest of the district's inhabitants.  The term of the lease may not exceed 25 years.

(c)  The district may acquire equipment for use in the district's hospital system and mortgage or pledge the property as security for the payment of the purchase price. A contract entered into under this subsection must provide that the entire obligation be retired not later than the fifth anniversary of the date of the contract.

(d)  The district may sell or otherwise dispose of any property, including equipment, on terms the board finds are in the best interest of the district's inhabitants.  The board may not sell or dispose of any real property unless the board affirmatively finds that the real property is not needed for the operation of the hospital system.  (Acts 63rd Leg., R.S., Ch. 58, Secs. 10(a) (part), (b) (part), 11 (part).)

Source Law

Sec. 10.  (a)  The board of directors is hereby given complete discretion as to the type of … buildings, both as to number and location, and equipment required to establish and maintain an adequate hospital system… .

(b)  The district, through its board of directors, … may lease all or part of the buildings and facilities upon terms and conditions considered to be to the best interest of its inhabitants, provided that in no event shall any lease be for a period in excess of 25 years from the date entered.  The district shall be empowered to sell or otherwise dispose of any property or equipment of any nature upon terms and conditions found by the board to be in the best interest of its inhabitants; provided, however, that in no event shall the board be authorized to sell or dispose of any real property unless the board affirmatively finds that the same is not needed for the operation of the hospital system.

Sec. 11.  … The district may acquire equipment for use in its hospital system and mortgage or pledge the property so acquired as security for the payment of the purchase price, but any such contract shall provide for the entire obligation of the district to be retired within five years from the date of the contract… .

Revisor's Note

(1)  Section 10(a), Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, requires the board to determine the buildings and equipment required to "establish and maintain" an adequate hospital system.  The revised law omits the reference to establishing the hospital system as executed.

(2)  Section 10(b), Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, refers to "terms and conditions."  The revised law omits the reference to "conditions" because "conditions" is included in the meaning of "terms."

Revised Law

Sec. 1052.108.  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 located in district territory if the interest is necessary for the district to exercise a power, right, or privilege conferred by this chapter.

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

(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 63rd Leg., R.S., Ch. 58, Sec. 15.)

Source Law

Sec. 15.  The district shall have the right and power of eminent domain for the purpose of acquiring by condemnation any and all property of any kind and character in fee simple, or any lesser interest therein, within the boundaries of the district necessary to the powers, rights, and privileges conferred by this Act, in the manner provided by the general law with respect to condemnation by counties, provided that the district shall not be required to make deposits in the registry of the trial court of the sum required by Paragraph 2 of Article 3268, Revised Civil Statutes of Texas, 1925, or to make bond as therein provided.  In condemnation proceedings being prosecuted by the district, the district shall not be required to pay in advance or give bond or other security for costs in the trial court, nor to give any bond otherwise required for the issuance of a temporary restraining order or a temporary injunction or to give bond for costs or for supersedeas or any appeal or writ of error.

Revisor's Note

(1)  Section 15, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, 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 15, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that the district must exercise the power of eminent domain in the manner provided by "the general law with respect to condemnation by counties."  The revised law substitutes for the quoted language a reference to Chapter 21, Property Code, because that is the general law governing eminent domain for governmental entities, including counties.

(3)  Section 15, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, refers to "Paragraph 2 of Article 3268, Revised Civil Statutes of Texas, 1925."  That statute was codified in 1983 as Section 21.021(a), Property Code, and the revised law is drafted accordingly.

(4)  Section 15, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that the district is not required "to give bond for costs or for supersedeas or any appeal or writ of error."  The revised law substitutes "on an appeal" for "or any appeal" because it is clear from the context that "or" is a typographical error and that the legislature intended to use the phrase "on an appeal."

Revised Law

Sec. 1052.109.  GIFTS AND ENDOWMENTS.  The board may accept for the district a gift or endowment for hospital purposes 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 63rd Leg., R.S., Ch. 58, Sec. 19.)

Source Law

Sec. 19.  The board of directors of the district is authorized on behalf of the district to accept donations, gifts, and endowments for hospital purposes, to be held in trust and administered by the board of directors for such purposes and under such directions, limitations, and provisions as may be prescribed in writing by the donor not inconsistent with proper management and objective of the hospital district.

Revisor's Note

Section 19, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, 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. 1052.110.  CONSTRUCTION CONTRACTS.  A construction contract that involves the expenditure of more than $2,000 may be made only after advertising in the manner provided by Chapter 252 and Subchapter C, Chapter 262,  Local Government Code.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 11 (part).)

Source Law

Sec. 11.  … All contracts for construction involving the expenditure of more than $2,000 may be made only after advertising in the manner provided by Chapter 163, Acts of the 42nd Legislature, Regular Session, 1931, as amended (Article 2368a, Vernon's Texas Civil Statutes)… .

Revisor's Note

(1)  Section 11, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, permits construction contracts involving more than $2,000 only after advertising in the manner provided by "Chapter 163, Acts of the 42nd Legislature, Regular Session, 1931, as amended (Article 2368a, Vernon's Texas Civil Statutes)." Article 2368a was amended by Chapter 641, Acts of the 69th Legislature, Regular Session, 1985, which transferred provisions relating to advertising for bids by counties to the County Purchasing Act (V.A.C.S. Article 2368a.5).  The County Purchasing Act was codified in 1987 as Subchapter C, Chapter 262, Local Government Code.  The provisions of Article 2368a relating to advertising for bids by municipalities were codified in 1987 as Chapter 252, Local Government Code, and the revised law is drafted accordingly.  In addition, throughout this chapter, the revised law omits the references to "as amended" because under Section 311.027, Government Code (Code Construction Act), a reference to a statute applies to all reenactments, revisions, or amendments of that statute unless expressly provided otherwise.

(2)  Section 11, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that the provisions of Article 5160, Revised Civil Statutes of Texas, 1925, apply to the district's construction contracts in relation to performance and payment bonds.  The revised law omits this reference because Article 5160 was codified as Chapter 2253, Government Code, and that chapter applies to hospital districts on its own terms.  The omitted law reads:

Sec. 11.  … The provisions of Article 5160, Revised Civil Statutes of Texas, 1925, relating to performance and payment bonds shall apply to construction contracts let by the district… .

Revised Law

Sec. 1052.111.  OPERATING AND MANAGEMENT CONTRACTS.  The board may enter into an operating or management contract relating to a district facility.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 10(b) (part).)

Source Law

(b)  The district, through its board of directors, is authorized to enter into an operating or management contract with respect to the hospital facilities of the district or a part thereof, or … .

Revised Law

Sec. 1052.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT.  (a)  The board may contract with a county or municipality located outside the district's boundaries for the care and treatment of a sick or injured person of that county or municipality.

(b)  The board may contract with this state or a federal agency for the treatment of a sick or injured person.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 5 (part).)

Source Law

Sec. 5.  … The board … shall be authorized to contract with any county or incorporated municipality located outside its boundaries for the care and treatment of the sick, diseased, or injured persons of any such county or municipality, and shall have the authority to contract with the State of Texas or agencies of the federal government for the treatment of the sick, diseased, or injured persons.

Revisor's Note

(1)  Section 5, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, refers to an "incorporated" municipality.  The revised law omits the reference to "incorporated" because under the Local Government Code all municipalities must be incorporated.

(2)  Section 5, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, refers to the treatment of "sick, diseased, or injured persons."  The revised law omits the reference to "diseased" because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1052.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR INVESTIGATORY OR OTHER SERVICES.  The board may contract with a political subdivision or governmental agency for the district to provide investigatory or other services for the medical, hospital, or welfare needs of district inhabitants.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 5 (part).)

Source Law

Sec. 5.  … The board shall be authorized to contract with any other political subdivision or governmental agency whereby the district will provide investigatory or other services as to the medical, hospital, or welfare needs of the inhabitants of the district and … .

Revised Law

Sec. 1052.114.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient who resides in the district is admitted to a district facility, the district administrator may have an inquiry made into the circumstances of:

(1)  the patient; and

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

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

(d)  The 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 board shall hold a hearing and, after calling witnesses, shall:

(1)  resolve the dispute or doubt; and

(2)  issue any appropriate orders.

(f)  The final order of the board may be appealed to the district court. The substantial evidence rule applies to the appeal.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 18.)

Source Law

Sec. 18.  Whenever a patient residing within the district has been admitted to the facilities thereof, the administrator or manager may cause inquiry to be made as to his circumstances and those of the relatives of the patient legally liable for his support.  If he finds that the patient or his relatives are able to pay for his care and treatment in whole or in part, an order shall be made directing the patient or his relatives to pay the hospital district for the care and support of the patient a specified sum per week in proportion to their financial ability.  The administrator or manager shall have power and authority to collect such sums from the estate of the patient or his relatives legally liable for his support in the manner provided by law for collection of expenses in the last illness of a deceased person.  If the administrator or manager finds that the patient or his relatives are not able to pay either in whole or in part for his care and treatment in the hospital, same shall become a charge upon the hospital district as to the amount of the inability to pay.  Should there be any dispute as to the ability to pay or doubt in the mind of the administrator or manager, the board of directors shall hear and determine same after calling witnesses, and shall make such order or orders as may be proper.  Appeals from the final order of the board shall lie to the district court.  The substantial evidence rule shall apply.

Revised Law

Sec. 1052.115.  AUTHORITY TO SUE AND BE SUED.  The district, through the board, may sue and be sued. (Acts 63rd Leg., R.S., Ch. 58, Sec. 5 (part).)

Source Law

Sec. 5.  … The district, through its board of directors shall have the power and authority to sue and be sued, … .

[Sections 1052.116-1052.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1052.151.  BUDGET.  (a)  The district administrator shall prepare an annual budget for approval by the board.

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

(1)  the outstanding obligations of the district;

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

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

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

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

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

(7)  the estimated tax rate required; and

(8)  the proposed expenditures and disbursements and the estimated receipts and collections for the following fiscal year.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 6(a) (part).)

Source Law

(a)  … The administrator or manager shall prepare an annual budget for approval by the board of directors.  The budget shall also contain a complete financial statement of the district showing all outstanding obligations of the district, the cash on hand to the credit of each and every fund of the district, the funds received from all sources during the previous year, the funds available from all sources during the ensuing year, with balances expected at year end of the year in which the budget is being prepared, and estimated revenues and balances available to cover the proposed budget, and the estimated tax rate which will be required, and the proposed expenditures and disbursements and the estimated receipts and collections for the following fiscal year… .

Revised Law

Sec. 1052.152.  NOTICE; HEARING; ADOPTION OF BUDGET.  (a)  The board shall hold a public hearing on the proposed annual budget.

(b)  At least 10 days before the date of the hearing, notice of the hearing shall be published one time in a newspaper or newspapers that individually or collectively have general circulation in the district.

(c)  Any district resident is entitled to be present and participate at the hearing.

(d)  At the conclusion of the hearing, the board shall adopt a final budget by acting on the budget proposed by the district administrator.  The board may make any changes in the proposed budget that the board judges to be in the interests of the  taxpayers and that the law warrants.  (Acts 63rd Leg., R.S., Ch. 58, Secs. 6(a) (part), (b) (part).)

Source Law

(a)  … A public hearing on the annual budget shall be held by the board of directors after notice of the hearing has been published one time at least 10 days before the date set therefor.  Notice of the budget hearing shall be published in a newspaper or newspapers which individually or collectively provide general circulation in the hospital district.  Any resident of the district shall have the right to be present and participate in the hearing.  At the conclusion of the hearing, the budget, as proposed by the administrator, shall be acted upon by the board of directors, and as modified or approved, such budget shall become final.

(b)  The board of directors shall have authority to make changes in the budget as in their judgment the law warrants and the interest of the taxpayer demands. … the budget and … shall be approved by the board of directors… .

Revised Law

Sec. 1052.153.  AMENDMENTS TO BUDGET.  The budget may be amended as required by circumstances.  The board must approve all amendments.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 6(b) (part).)

Source Law

(b)  … The annual budget may be amended as the circumstances require, but … amendments shall be approved by the board of directors… .

Revised Law

Sec. 1052.154.  FISCAL YEAR.  (a)  The district operates according to a  fiscal year established by the board.

(b)  The fiscal year may not be changed more than once in a 24-month period.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 6(a) (part).)

Source Law

Sec. 6.  (a)  The district shall be operated on the basis of a fiscal year as established from time to time by the board of directors of the district, provided the fiscal year shall not be changed more often than once in any 24-month period… .

Revisor's Note

Section 6(a), Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, states that the board may establish the fiscal year "from time to time."  The revised law omits the quoted language because the authority to take an action implies the authority to do so at any time.

Revised Law

Sec. 1052.155.  AUDIT.  (a)  The board shall have an independent audit made of the district's financial condition for the fiscal year.

(b)  As soon as the audit is completed, the audit shall be filed at the district's principal office.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 6(a) (part).)

Source Law

(a)  … The board shall cause an independent audit to be made of the financial condition of the district, … the audit to be made covering such fiscal year, and the same shall be filed at the office of the district as soon as it is completed.  …

Revised Law

Sec. 1052.156.  INSPECTION OF AUDIT AND DISTRICT RECORDS.  The audit and other district records shall be open to inspection at the district's principal office.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 6(a) (part).)

Source Law

(a)  … [an independent audit] … which, together with other records of the district, shall be open to inspection at the principal office of the district, … .

Revised Law

Sec. 1052.157.  FINANCIAL REPORT.  As soon as practicable after the close of each fiscal year, the district administrator shall prepare for the board:

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

(2)  a complete account of the disbursements of that money.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 6(b) (part).)

Source Law

(b)  … As soon as practicable after the close of each fiscal year, the administrator or manager shall prepare for the board a full sworn statement of all moneys belonging to the district and a full account of the disbursement of same.

Revised Law

Sec. 1052.158.  DEPOSITORY.  (a)  The board shall select one or more banks inside or outside the district to serve as a depository for district money.

(b)  District money, other than money invested as provided by Section 1052.159, and money transmitted to a bank for payment of bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and shall remain on deposit.

(c)  This chapter, including Subsection (b), does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 12.)

Source Law

Sec. 12.  The board of directors of the district shall name one or more banks within or without its boundaries to serve as depository for the funds of the district.  All funds of the district, except those invested as provided in Section 5 of this Act, and those transmitted to a bank or banks of payment for bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and shall remain on deposit, provided that nothing herein shall limit the power of the board to place a portion of such funds on time deposit or purchase certificates of deposit.

Revised Law

Sec. 1052.159.  SPENDING AND INVESTMENT RESTRICTIONS.  (a)  Except as otherwise provided by Section 1052.107(c) and by Subchapter E, the district may not incur an obligation payable from district revenue other than the revenue on hand or to be on hand in the current and following district fiscal years.

(b)  The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code.  (Acts 63rd Leg., R.S., Ch. 58, Secs. 5 (part), 11 (part).)

Source Law

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

Sec. 11.  … Except as permitted in the preceding sentence and as permitted by Sections 7 and 8 of this Act, the board may not incur any obligation payable from any revenues of the district, taxes or otherwise, except from funds on hand or to be on hand within the then current and following fiscal year of the district.

Revisor's Note

(1)  Section 5, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, refers to "Article 836 or 837, Revised Civil Statutes of Texas, 1925, as amended."  Those articles were impliedly repealed by the enactment of the Public Funds Investment Act of 1987 (Article 842a-2, Vernon's Texas Civil Statutes), which was revised in 1993 as Chapter 2256, Government Code.  Chapter 2256 defines "local government" to include hospital districts and applies to the district by its own terms.  The revised law therefore substitutes a reference to Chapter 2256, Government Code, for the references to Articles 836 and 837.

(2)  Section 11, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, states that "[e]xcept as permitted in the preceding sentence and as permitted by Sections 7 and 8 of this Act," the district may not incur certain obligations.  The "preceding sentence" in Section 11 is codified in Section 1052.107(c).  Sections 7 and 8 are codified in Subchapter E.  The revised law is drafted accordingly.

[Sections 1052.160-1052.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Revised Law

Sec. 1052.201.  GENERAL OBLIGATION BONDS.  The board may issue and sell general obligation bonds in the name and on the faith and credit of the district for any purpose relating to:

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

(2)  equipping buildings or improvements for hospital purposes.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 7 (part).)

Source Law

Sec. 7.  The board of directors shall have the power and authority to issue and sell bonds in the name and upon the faith and credit of the district for the purchase, construction, acquisition, repair, or renovation of buildings and improvements and equipping the same for hospital purposes, and for any or all of such purposes… .

Revisor's Note

Section 7, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, 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 7 are known as "general obligation bonds," the revised law is drafted accordingly.

Revised Law

Sec. 1052.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  At the time general obligation bonds are issued by the district under Section 1052.201, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature.

(b)  The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed the tax rate approved by the voters at the election authorizing the imposition of the tax.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 7 (part).)

Source Law

Sec. 7.  … At the time of the issuance of any bonds, … a tax shall be levied by the board sufficient to create an interest and sinking fund to pay the interest on and principal of said bonds, as same mature, providing such tax together with any other taxes levied for said district shall not exceed the rate of tax voted under the provisions of Section 3 of this Act… .

Revisor's Note

(1)  Section 7, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, requires the district to levy a tax to pay the principal of and interest on bonds.  The revised law specifies that the tax is an "ad valorem" tax because it is clear from the source law that the tax is a property tax and "ad valorem" is the term most commonly used to refer to a property tax.

(2)  Section 7, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that the tax rate may not exceed "the rate of tax voted under the provisions of Section 3 of this Act."  Section 3 sets out procedures for the district's creation election and requires voter approval of the district's authority to impose taxes.  Because the revised law omits Section 3 for the reason stated in Revisor's Note (2) at the end of Subchapter A, the revised law substitutes "the tax rate approved by the voters at the election authorizing the imposition of the tax" for the quoted language.

Revised Law

Sec. 1052.203.  GENERAL OBLIGATION BOND ELECTION.  (a)  The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters.

(b)  The order calling the election must specify:

(1)  the date of the election;

(2)  the location of the polling places;

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

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

(5)  the maximum maturity of the bonds;

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

(7)  the clerks as in county elections.

(c)  Notice of a bond election shall be given as provided by Section 1251.003, Government Code.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 7 (part).)

Source Law

Sec. 7.  … no bonds shall be issued by or on behalf of the hospital district until authorized by a majority of the qualified electors of the district.  The order for the bond election shall specify the date of the election, the amount of bonds to be authorized, the maximum maturity thereof, the maximum rate of interest they are to bear, the place or places where the election shall be held, the presiding judge and alternate judge for each voting place, and the clerks as in county elections.  Notice of any bond election shall be published as provided in Article 704, Revised Civil Statutes of Texas, 1925, as amended, and shall be conducted in accordance with the general laws of Texas pertaining to general elections, except as modified by the provisions of this Act, … .

Revisor's Note

(1)  Section 7, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, refers to a majority of the qualified electors.  The revised law omits "qualified" as unnecessary in this context because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "qualified" voters who are residents of the territory covered by the election to vote in an election.  The revised law substitutes "voter" for "elector" because the former is the term used in the Election Code.

(2)  Section 7, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, refers to Article 704, Revised Statutes, which specifies certain notice requirements for a bond election.  That provision was codified in 1999 as Section 1251.003, Government Code.  The revised law is drafted accordingly.

(3)  Section 7, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that an election under Section 7 "shall be conducted in accordance with the general laws of Texas pertaining to general elections, except as modified by the provisions of this Act."  The revised law omits the quoted language because Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state.  An exception to the application of the Election Code would apply by its own terms.

(4)  Section 7, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that notice of a bond election under Section 7 may be given as provided by Section 3.  As explained in Revisor's Note (2) at the end of Subchapter A, the relevant provisions of Section 3, Chapter 58, are executed.  The revised law therefore omits the provision.  The omitted law reads:

Sec. 7.  … provided, however, an election to authorize the issuance of bonds may be held at the same time as the election for which provision is made in Section 3 of this Act, and in such event notice of a bond election may be given in the manner provided in Section 3 of this Act.

Revised Law

Sec. 1052.204.  REVENUE BONDS.  (a)  The board may, without an election, issue revenue bonds to:

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

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

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

(c)  The bonds may be additionally secured by a mortgage or deed of trust lien on all or part of district property.

(d)  The bonds must be issued in the manner and in accordance with the procedures and requirements prescribed by Sections 264.042, 264.043, and 264.046-264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority.  (Acts 63rd Leg., R.S., Ch. 58, Secs. 7 (part), 8(b) (part).)

Source Law

Sec. 7.  … [At the time of the issuance of any bonds,] except revenue bonds issued under Section 8(b) hereof, [a tax shall be levied by the board] … .  Except as provided in Section 8, [no bonds shall be issued by or on behalf of the hospital district until authorized by a majority of the qualified electors of the district.] …

[Sec. 8]

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

Revisor's Note

Section 8(b), Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, refers to Sections 8, 10, 11, 12, and 13 of Chapter 122, Acts of the 58th Legislature, 1963 (Article 4494r, Vernon's Texas Civil Statutes).  Those provisions were codified in 1989 as Sections 264.042, 264.043, and 264.046-264.049, Health and Safety Code.  The revised law is drafted accordingly.

Revised Law

Sec. 1052.205.  REFUNDING BONDS.  (a)  The board may, without an election, issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.

(b)  A refunding bond may be:

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

(2)  exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness.  (Acts 63rd Leg., R.S., Ch. 58, Secs. 7 (part), 8(a) (part), (b) (part).)

Source Law

Sec. 7.  … Except as provided in Section 8, [no bonds shall be issued by or on behalf of the hospital district until authorized by a majority of the qualified electors of the district.] …

Sec. 8.  (a)  Refunding bonds may be issued by the board of directors for the purpose of refunding and paying off any outstanding indebtedness it has issued or assumed.  Such refunding bonds may be sold and the proceeds thereof applied to the payment of outstanding indebtedness, or may be exchanged in whole or in part for not less than a like principal amount of such outstanding indebtedness… .

(b)  … the board is further authorized … to refund any previously issued [revenue bonds] … .

Revisor's Note

(1)  Section 8(a), Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that refunding bonds sold to pay outstanding indebtedness must be issued and payments made in the manner specified by Chapter 503, Acts of the 54th Legislature, 1955, as amended (Article 717k, Vernon's Texas Civil Statutes).  Article 717k was codified in 1999 as Chapter 1207, Government Code.  The revised law omits the provision because Chapter 1207, Government Code, applies to the district by its own terms under Section 1207.001, Government Code.  The omitted law reads:

(a)  … If such refunding bonds are to be sold and the proceeds thereof applied to the payment of any such outstanding indebtedness, same shall be issued and payments made in the manner specified by Chapter 503, Acts of the 54th Legislature, 1955, as amended (Article 717k, Vernon's Texas Civil Statutes)… .

(2)  Section 8(a), Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that refunding bonds may not bear interest at a rate that exceeds the rate permitted by Chapter 784, Acts of the 61st Legislature, Regular Session, 1969, as amended (Article 717k-3, Vernon's Texas Civil Statutes).  The revised law omits the provision because it has been superseded by the enactment of the maximum interest rate provision found in Section 1204.006, Government Code.  That section reflects the 1981 amendment of Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes, now Chapter 1204, Government Code), by Section 1, Chapter 61, Acts of the 67th Legislature, Regular Session, 1981, and permits a public agency, including a hospital district, to issue public securities at any net effective interest rate of 15 percent or less.  Section 1204.006, Government Code, applies to district bonds by application of Section 1204.001, Government Code.  The omitted law reads:

(a)  …  Refunding bonds shall not bear interest in excess of the rate permitted by Chapter 784, Acts of the 61st Legislature, Regular Session, 1969, as amended (Article 717k-3, Vernon's Texas Civil Statutes).

Revised Law

Sec. 1052.206.  MATURITY OF BONDS.  District bonds must mature not later than 40 years after the date of issuance.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 9 (part).)

Source Law

Sec. 9.  Bonds of the district shall mature within 40 years of their date and … .

Revised Law

Sec. 1052.207.  EXECUTION OF BONDS.  (a)  The board president shall execute the district's bonds in the district's name.

(b)  The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 9 (part).)

Source Law

Sec. 9.  … Bonds shall be executed in the name of the hospital district and in its behalf by the president of the board and countersigned by the secretary of the board in the manner provided by Chapter 204, Acts of the 57th Legislature, Regular Session, 1961, as amended (Article 717j-1, Vernon's Texas Civil Statutes), and … .

Revisor's Note

(1)  Section 9, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, refers to Chapter 204, Acts of the 57th Legislature, Regular Session, 1961, as amended (Article 717j-1, Vernon's Texas Civil Statutes).  That statute was codified in 1999 as Chapter 618, Government Code, and the revised law is drafted accordingly.

(2)  Section 9, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that district bonds may 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 maximum interest rate noted in Chapter 3 was revised in 1999 as Section 1204.006, Government Code.  Section 1204.006 permits a public agency, including a hospital district, to issue public securities at any net effective interest rate of 15 percent or less and applies to district bonds by application of Section 1204.001, Government Code.  The revised law omits the reference because it duplicates Section 1204.006.  The omitted law reads:

Sec. 9.  [Bonds of the district] … may bear interest at a rate or rates not to exceed that prescribed by Chapter 3, Acts of the 61st Legislature, Regular Session, 1969, as amended (Article 717k-2, Vernon's Texas Civil Statutes)… .

(3)  Section 9, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that district bonds are subject to the law governing counties that relates to bond approval by the attorney general and registration of the bonds by the comptroller.  Section 9 also provides that after approval and registration the bonds are "incontestable for any cause."  The revised law omits those provisions as superseded by Chapter 1202, Government Code (enacted as Article 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987).  Section 1202.003(a), Government Code, requires bonds to be submitted to the attorney general.  Section 1202.003(b), Government Code, provides for approval of the bonds by the attorney general and requires the attorney general to submit the approved bonds to the comptroller for registration.  Section 1202.005, Government Code, requires registration of the bonds by the comptroller. Section 1202.006, Government Code, provides that after approval and registration the bonds are incontestable and binding obligations.  Chapter 1202, Government Code, applies to district bonds by application of Section 1202.001, Government Code.  The omitted law reads:

Sec. 9.  [Bonds of the district] … shall be subject to the same requirements in the matter of approval by the Attorney General of Texas and registration by the Comptroller of Public Accounts of the State of Texas as are by law provided for approval and registration of bonds issued by counties.  Upon the approval of such bonds by the attorney general and registration by the comptroller, the same shall be incontestable for any cause.

Revised Law

Sec. 1052.208.  BONDS EXEMPT FROM TAXATION.  The following are exempt from taxation by this state or a political subdivision of this state:

(1)  bonds issued by the district;

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

(3)  profits made in the sale of the bonds.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 22 (part).)

Source Law

Sec. 22.  … any bonds issued by it and their transfer and the issuance therefrom, including any profits made in the sale thereof, shall at all times be free from taxation by the state or any municipality or political subdivision thereof.

Revisor's Note

Section 22, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, refers to a "municipality or political subdivision."  The revised law omits the reference to "municipality" because "municipality" is included in the meaning of "political subdivision."

Revisor's Note

(End of Subchapter)

(1)  Section 14, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, 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 14 has been superseded and impliedly repealed.  Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)).  Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings and loan associations are regulated by Sections 63.002 and 64.001, Finance Code.  As to the remaining entities listed, Section 14 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:

Sec. 14.  All bonds issued hereunder and indebtedness assumed by the district shall be and are hereby declared to be legal and authorized investments of banks, savings banks, trust companies, buildings and loan associations, savings and loan associations, insurance companies, trustees, and sinking funds of cities, towns, villages, counties, school districts, or other political subdivisions of the State of Texas, and for all public funds of the State of Texas or its agencies including the state permanent school fund… .

(2)  Section 14, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, effectively provides that district bonds may secure deposits of public funds of this state or political subdivisions of this state.  The revised law omits the provisions as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions.  The omitted law reads:

Sec. 14.  … Such bonds and indebtedness shall be eligible to secure deposit of public funds of the State of Texas and public funds of cities, towns, villages, counties, school districts, or other political subdivisions or corporations of the State of Texas, and shall be lawful and sufficient security for said deposits to the extent of their value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1052.209-1052.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Revised Law

Sec. 1052.251.  IMPOSITION OF AD VALOREM TAX.  (a)  The board shall impose a tax on all property in the district subject to district taxation.

(b)  The board shall impose the tax to:

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

(2)  provide for the operation and maintenance of the district and hospital system, based on the final budget;

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

(4)  acquire necessary sites for the hospital system by purchase, lease, or condemnation.  (Acts 63rd Leg., R.S., Ch. 58, Secs. 3 (part), 13(a) (part).)

Source Law

Sec. 3.  … [levy annual taxes] … on … all taxable property within such district … .

Sec. 13.  (a)  The board of directors shall annually levy a tax … 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, based upon the final budget; and

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

Revised Law

Sec. 1052.252.  TAX RATE.  (a)  The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district.

(b)  In setting the tax rate, the board shall consider the income of the district from sources other than taxation.  (Acts 63rd Leg., R.S., Ch. 58, Secs. 3 (part), 13(a) (part), (b) (part).)

Source Law

Sec. 3.  … [the 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 … .

Sec. 13.  (a)  [The board of directors shall annually levy a tax] of not to exceed the amount hereinabove permitted … .

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

Revisor's Note

Section 13(b), Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, requires the board to levy the tax and to certify the tax rate to the tax assessor-collector.  The revised law omits that provision because Section 26.05(a), Tax Code, requires the governing body of a taxing unit to adopt a tax rate for the current tax year and to notify the tax assessor of that rate.  The omitted law reads:

(b)  … Upon determination of the amount of tax required to be levied, the board shall make such levy and certify the same to the tax assessor-collector of said district.

Revised Law

Sec. 1052.253.  TAX ASSESSOR-COLLECTOR.  (a)  The board shall appoint a tax assessor-collector to assess and collect taxes imposed by the district.

(b)  The district tax assessor-collector is not required to reside in the district.

(c)  The board shall set for the district tax assessor-collector:

(1)  the term of employment; and

(2)  compensation.  (Acts 63rd Leg., R.S., Ch. 58, Sec. 16 (part).)

Source Law

Sec. 16.  … All taxes of the district shall be assessed and collected by the assessor-collector appointed by the directors, who shall also fix the terms of his employment, compensation, and … .  The tax assessor and collector need not be a resident of the district… .

Revisor's Note

(1)  Section 16, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, requires the board to set a bond amount of not less than $5,000 as security for the district tax assessor-collector.  The revised law omits the provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979, which repealed all "general, local, and special laws" that conflicted with that act.  The 1979 act enacted the Property Tax Code (Title 1, Tax Code), a comprehensive, substantive codification of property tax law.  Section 6.29(a), Tax Code, authorizes the governing body of a taxing unit, including a hospital district, to require the unit's tax assessor-collector to post bond without limiting the amount.  The omitted law reads:

Sec. 16.  … [directors, who shall also fix the] … requirement for bond to assure the faithful performance of his duties, but in no event shall such bond be for less than $5,000… .

(2)  Section 16, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, states that the board shall appoint a board of equalization and establishes the duties of that board and the tax assessor-collector.  The revised law omits the reference to a board of equalization because boards of equalization were abolished and their functions and duties transferred to appraisal review boards by the 1979 enactment of the Property Tax Code, Title 1, Tax Code (Section 1, Chapter 841, Acts of the 66th Legislature, Regular Session, 1979).  The provisions relating to the duties of the tax assessor-collector are omitted because the Tax Code specifies the duties of a tax assessor-collector.  The omitted law reads:

Sec. 16.  … The directors shall also annually appoint five persons to serve as a board of equalization and shall fix their compensation… .  Each member of the board shall be a resident of the district.  Members of the board and tax assessor and collector shall have the same duties, including the obligation to execute the oath of office, as required by county officials exercising such powers and duties… .

(3)  Section 16, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, refers to the applicability of Title 122 of the Revised Statutes (Taxation).  Before its repeal and recodification, Title 122 was composed of V.A.C.S. Articles 7041-7359a.  The relevant parts of those provisions were revised in 1979 as the Property Tax Code, Title 1, Tax Code (Section 1, Chapter 841, Acts of the 66th Legislature, Regular Session, 1979).  The revised law omits the provision because Title 1 applies to the district on its own terms.  The omitted law reads:

Sec. 16.  … Except as in this law provided to the contrary, all the provisions of Title 122, Revised Civil Statutes of Texas, 1925, as amended, shall apply to the district.

Revisor's Note

(End of Subchapter)

Section 16, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that the district may impose taxes for the entire year in which the district is established.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 16.  The directors shall have the authority to levy taxes for the entire year in which the district is established as the result of the election herein provided… .

Revisor's Note

(End of Chapter)

(1)  Sections 2 and 20, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provide for the transfer of certain land, buildings, improvements, equipment, funds, and taxes to the district after the district is created and provide for the assumption of debt by the district on creation.  The revised law omits the provisions as executed.  The omitted law reads:

Sec. 2.  … The district shall assume all outstanding indebtedness theretofore incurred for hospital purposes by any city or town located wholly within its boundaries and shall take over, and there shall be transferred to it, any land, buildings, improvements, and equipment constituting a hospital owned by any such city.

Sec. 20.  … As required by the constitution, when the district is created and established, any towns and cities located therein shall convey and transfer to the district title to all lands, buildings, improvements, and equipment in anywise pertaining to a hospital or hospital system which may be jointly or separately owned by any city or town within the district.  Operating funds and reserves for operating expenses which are on hand and funds which have been budgeted for hospital purposes by any county, city, or town therein for the remainder of the fiscal year in which the district is established shall likewise be transferred to the district, as shall taxes theretofore levied for hospital purposes for the current year and all sinking funds established for payment of indebtedness assumed by the district.

(2)  Section 23, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides legislative intent regarding the creation of the district and the determination of qualified electors.  The revised law omits that section as executed.  The omitted law reads:

Sec. 23.  The legislature hereby recognizes there is some confusion as to the proper qualification of electors in the light of recent court decisions.  It is the intention of this Act to provide a procedure for the creation of the said hospital district and to allow such district, when created, to issue bonds payable from taxation, but that in each instance the authority shall be predicated upon the expression of the will of the majority of those who cast valid ballots at an election called for the purpose.  Should the person or body calling an election determine that all qualified electors, including those who own taxable property which has been duly rendered for taxation, should be permitted to vote at an election by reason of the aforesaid court decisions, nothing herein shall be construed as a limitation upon the power to call and hold an election, provided provision is made for the voting, tabulating, and counting of the ballots of the resident qualified property taxpaying electors who own taxable property which has been duly rendered for taxation separately from those who are qualified electors, and in any election so called a majority vote of the resident qualified property taxpaying voters who own taxable property which has been duly rendered for taxation and a majority vote of the qualified electors, including those who own taxable property which has been duly rendered for taxation, shall be required to sustain the proposition.

(3)  Section 24, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, provides that the act is severable.  The revised law omits this 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:

Sec. 24.  … 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 provision or provisions of this Act notwithstanding the invalidity of any other provisions hereof.

(4)  Section 25, Chapter 58, Acts of the 63rd Legislature, Regular Session, 1973, 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. 25.  Proof of publication of the notice required in the enactment hereof under the provisions of Article IX, Section 9, of the Texas Constitution, has been made in the manner and form provided by law pertaining to the enactment of local and special laws, and such notice is hereby found and declared proper and sufficient to satisfy such requirement.