80C164(3) CBH

 

CHAPTER 1057.  MATAGORDA COUNTY HOSPITAL DISTRICT OF MATAGORDA COUNTY, TEXAS

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 1057.001.  DEFINITIONS.  In this chapter:

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

(2)  "District" means the Matagorda County Hospital District of Matagorda County, Texas.

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

Revisor's Note

The definitions of "board," "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. 1057.002.  AUTHORITY FOR CREATION.  The Matagorda County Hospital District of Matagorda County, Texas, is created under the authority of Section 9, Article IX, Texas Constitution.  (Acts 59th Leg., R.S., Ch. 41, Sec. 1 (part).)

Source Law

Sec. 1.  Pursuant to authority granted by the provisions of Section 9, Article IX, Constitution of the State of Texas, Matagorda County Hospital District of Matagorda County, Texas, is hereby authorized to be created and … .

Revised Law

Sec. 1057.003.  POLITICAL SUBDIVISION.  The district is a political subdivision of this state.  (Acts 59th Leg., R.S., Ch. 41, Sec. 13 (part).)

Source Law

Sec. 13.  The hospital district created under this Act shall be and is declared to be a political subdivision of the State of Texas, and … .

Revised Law

Sec. 1057.004.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of Matagorda County, Texas.  (Acts 59th Leg., R.S., Ch. 41, Sec. 1 (part).)

Source Law

Sec. 1.  … [Matagorda County Hospital District] … as created shall have boundaries coextensive with the boundaries of Matagorda County, Texas.

Revised Law

Sec. 1057.005.  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 59th Leg., R.S., Ch. 41, Sec. 15 (part).)

Source Law

Sec. 15.  … [Federal or State Constitution] … Where any procedure hereunder may be held by any court to be violative of either of such constitutions, the District shall have the power by resolution to provide an alternative procedure conformable with such constitutions.  …

Revisor's Note

Section 15, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, 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 omits the reference to the Texas Constitution because the state cannot modify constitutional requirements by statute.  The omitted law reads:

Sec. 15.  Nothing in this Act shall be construed to violate any provision of the Federal or State Constitution, and all things done under this Act shall be in such manner as will conform thereto, whether expressly so provided or not.  …

Revised Law

Sec. 1057.006.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION.  The support and maintenance of the district's hospital system may not become a charge against or obligation of this state.  (Acts 59th Leg., R.S., Ch. 41, Sec. 6 (part).)

Source Law

Sec. 6.  … It is provided specifically that the support and maintenance of the District's hospital system shall never become a charge against or obligation of the State of Texas.

Revisor's Note

(End of Subchapter)

Section 3, and parts of Sections 4 and 5, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, 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. 3.  Such 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 property taxpaying electors of the District voting at an election called for such purpose.  Such election shall be initiated by a petition to the Matagorda County Commissioners Court signed by at least fifty (50) qualified property taxpaying electors residing within the boundaries of the proposed District.  Within ten (10) days after the presentation of said petition to the Commissioners Court of Matagorda County, Texas, said Court shall order an election to be held within said District not less than thirty (30) days from the date said election is ordered.  The order calling such election shall specify the date and place or places of holding same, the form of ballot and the presiding judge for each voting place.  At such election there shall be submitted to the qualified property taxpaying electors of said proposed District the proposition of whether or not Matagorda County Hospital District of Matagorda County, Texas, shall be created with authority to levy annual taxes at a rate not to exceed Seventy-Five Cents (75’) on the One Hundred Dollars ($100) valuation of all taxable property within such District for the purpose of meeting the requirements of the District's bonds, the indebtedness assumed by it and its maintenance and operating expenses, and a majority of the qualified property taxpaying electors of the District voting in said election in favor of the proposition shall be sufficient for its adoption.  The ballots of said election shall conform to the requirements of the Texas Election Code, as amended, and shall have printed thereon the following:

"FOR the creation of Matagorda County Hospital District of Matagorda County, Texas; providing for the levy of annual taxes at a rate not to exceed Seventy-Five Cents (75’) on the One Hundred Dollars ($100) valuation of all taxable property within such District; and the assumption by said Hospital District of the outstanding indebtedness previously incurred for hospital purposes by Matagorda County and cities and towns in said District;

"AGAINST the creation of Matagorda County Hospital District of Matagorda County, Texas; providing for the levy of annual taxes at a rate not to exceed Seventy-Five Cents (75’) on the One Hundred Dollars ($100) valuation of all taxable property within such District; and the assumption by said Hospital District of the outstanding indebtedness previously incurred for hospital purposes by Matagorda County and cities and towns in said District."

Notice of said 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 fourteen (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.

Sec. 4.  After such creation and tax levy election is held, the officials conducting same shall make due returns to the Matagorda County Commissioners Court which shall canvass the returns thereof.  If a majority of the qualified property taxpaying electors voting at said election voted in favor of the proposition to create said District and levy said tax, said Court shall so find and declare said District established and created.  …

Sec. 5.  A bond election may also be held on the same day as said creation and tax levy election, and said petition mentioned in Section 3 hereof may also include a proposition on the issuance of bonds of said District.  Such bond election may be called by a separate election order, or as a part of the order calling such election provided for in said Section 3.  The provisions of Section 10 hereof shall apply to such bond election, except that such election shall be called by said Matagorda County Commissioners Court and the returns canvassed by said Court.  If the bonds are authorized at said election, they shall then be issued by the board of managers, assuming that the proposition specified in Section 3 is favored by a majority vote.  With the exception of bonds authorized by this Section 5, … .

[Sections 1057.007-1057.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1057.051.  BOARD APPOINTMENT; TERM.  (a)  The board consists of not fewer than five and not more than seven managers appointed by the Matagorda County Commissioners Court.

(b)  Managers serve two-year terms.  The terms may overlap.  (Acts 59th Leg., R.S., Ch. 41, Sec. 4 (part).)

Source Law

Sec. 4.  … the Commissioners Court of Matagorda County shall appoint a Board of Hospital Managers, consisting of not less than five (5) nor more than seven (7) members, who shall serve for a term of two (2) years, with overlapping terms if desired, and … .

Revisor's Note

Section 4, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, refers to the initial appointments to the board.  The revised law omits the provision as executed.  The omitted law reads:

Sec. 4.  … [the … Court shall … declare said District established and created.] As soon as possible thereafter, … with initial appointment to terms of office arranged accordingly, … .

Revised Law

Sec. 1057.052.  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 59th Leg., R.S., Ch. 41, Sec. 4 (part).)

Source Law

Sec. 4.  … 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 4, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, 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 gender neutral.

Revised Law

Sec. 1057.053.  COMPENSATION.  A manager serves without pay.  (Acts 59th Leg., R.S., Ch. 41, Sec. 4 (part).)

Source Law

Sec. 4.  … Board of Hospital Managers … who shall serve … without pay, and … .

Revised Law

Sec. 1057.054.  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 59th Leg., R.S., Ch. 41, Sec. 4 (part).)

Source Law

Sec. 4.  … The board shall require the Secretary to keep suitable records of all proceedings of each meeting of the board.  Such records shall be read and signed after each meeting by the Chairman or the member presiding, and attested by the Secretary.  …

Revised Law

Sec. 1057.055.  DISTRICT ADMINISTRATOR.  (a)  The board shall appoint a general manager 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 59th Leg., R.S., Ch. 41, Sec. 4 (part).)

Source Law

Sec. 4.  … The board shall appoint a general manager, to be known as the Administrator of the District.  The Administrator shall hold office for a term not exceeding two (2) 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 Ten Thousand Dollars ($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. …

Revised Law

Sec. 1057.056.  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 59th Leg., R.S., Ch. 41, Sec. 4 (part).)

Source Law

Sec. 4.  … 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. 1057.057.  EMPLOYEES.  (a)  The board may employ doctors, technicians, nurses, and other employees considered advisable for the efficient operation of the hospital or hospital system.

(b)  A contract or term of employment under Subsection (a) may not exceed two years.  (Acts 59th Leg., R.S., Ch. 41, Sec. 4 (part).)

Source Law

Sec. 4.  … The Board of Managers shall have the authority to employ such doctors, 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; provided that no contract or term of employment shall exceed the period of two (2) years.  …

Revised Law

Sec. 1057.058.  RETIREMENT PROGRAM.  With the approval of the Matagorda County 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.  (Acts 59th Leg., R.S., Ch. 41, Sec. 4 (part).)

Source Law

Sec. 4.  … [The Board of Managers, with the approval of the Matagorda County 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.  …

Revised Law

Sec. 1057.059.  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 59th Leg., R.S., Ch. 41, Sec. 4 (part).)

Source Law

Sec. 4.  … 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 4, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, 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:

Sec. 4.  … A majority of the Board of Hospital Managers will constitute a quorum for the transaction of any business. …

[Sections 1057.060-1057.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1057.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for providing medical and hospital care for the district's needy inhabitants.  (Acts 59th Leg., R.S., Ch. 41, Sec. 2 (part).)

Source Law

Sec. 2.  … Such District shall assume full responsibility for providing medical and hospital care for its needy inhabitants. …

Revisor's Note

Section 2, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, provides that the district "shall assume" full responsibility for providing medical and hospital care for the district's needy inhabitants.  The revised law substitutes "has" for the quoted language because the duty to assume the responsibility is executed.

Revised Law

Sec. 1057.102.  RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT.  A political subdivision in Matagorda County, 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 59th Leg., R.S., Ch. 41, Sec. 2 (part).)

Source Law

Sec. 2.  … After establishment of such District, no other municipality or political subdivision in Matagorda County 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.

Revisor's Note

(1)  Section 2, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, provides that "[a]fter establishment of such 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 2, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, 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. 1057.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  The board shall manage, control, and administer the district's hospital or hospital system.  (Acts 59th Leg., R.S., Ch. 41, Sec. 4 (part).)

Source Law

Sec. 4.  … [Board of Hospital Managers] … whose duties shall be to manage, control and administer the hospital or hospital system of the District… .

Revised Law

Sec. 1057.104.  HOSPITAL SYSTEM.  The district shall provide for the establishment of a hospital or hospital system in the district to furnish medical and hospital care to district residents by:

(1)  purchasing, constructing, acquiring, repairing, or renovating buildings and improvements for hospital purposes;

(2)  equipping the buildings and improvements for those purposes; and

(3)  administering the buildings and improvements for those purposes.  (Acts 59th Leg., R.S., Ch. 41, Sec. 2 (part).)

Source Law

Sec. 2.  The District hereby authorized to be created shall provide for the establishment of a hospital or hospital system within its boundaries to furnish medical and hospital care to persons residing in said District by the purchase, construction, acquisition, repair or renovation of buildings and improvements and the equipping of same and the administration thereof for hospital purposes.  …

Revised Law

Sec. 1057.105.  RULES.  The board may adopt rules for the operation of the hospital or hospital system.  (Acts 59th Leg., R.S., Ch. 41, Sec. 4 (part).)

Source Law

Sec. 4.  … The board of managers shall have the power and authority to promulgate rules and regulations for the operation of the hospital or hospital system.  …

Revisor's Note

Section 4, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, 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. 1057.106.  LEASES.  (a)  The board may lease district property, including facilities or equipment, to individuals, companies, corporations, or other legal entities on terms the board determines further the district's purposes.

(b)  The term of a lease under this section may not exceed 25 years. (Acts 59th Leg., R.S., Ch. 41, Sec. 4A.)

Source Law

Sec. 4A.  The Board of Managers may transfer by lease to individuals, companies, corporations, or other legal entities District property, facilities, or equipment on terms determined by the board to further the purposes of the District.  The term of a lease entered into under this section may not exceed 25 years from the date the lease is entered into.

Revised Law

Sec. 1057.107.  EMINENT DOMAIN.  (a)  The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property, 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 59th Leg., R.S., Ch. 41, Sec. 9.)

Source Law

Sec. 9.  Said District shall have the right and power of eminent domain for the purpose of acquiring by condemnation any and all property of any kind or character, real, personal or mixed, or any interest therein, including outright ownership of such property in fee simple absolute, within the boundaries of 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; provided that said District shall not be required to make deposits in the registry of the trial court of the sum required by Paragraph 2 in Article 3268, Revised Civil Statutes of Texas, 1925, as amended, or to make the bond required therein.  In condemnation proceedings being prosecuted by said District, said 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 supercedeas on any appeal or writ of error proceeding to any Court of Civil Appeals, or to the Supreme Court.

Revisor's Note

(1)  Section 9, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, provides that the district has the "right and power of eminent domain for the purpose of acquiring [property] by condemnation."  The revised law substitutes for the quoted language "may exercise the power of eminent domain to acquire [property]" because the phrases have the same meaning and the latter phrase is consistent with modern usage in laws relating to eminent domain.

(2)  Section 9, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, provides that the district must exercise the power of eminent domain in the manner provided by "General Law with respect to condemnation." The revised law substitutes for the quoted language a reference to Chapter 21, Property Code, because that is the general law governing eminent domain.

(3)  Section 9, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, refers to "Paragraph 2 in Article 3268, Revised Civil Statutes of Texas, 1925, as amended."  That statute was codified in 1983 as Section 21.021(a), Property Code, and the revised law is drafted accordingly.  In addition, 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.

(4)  Section 9, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, 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. 1057.108.  GIFTS AND ENDOWMENTS.  The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district.  (Acts 59th Leg., R.S., Ch. 41, Sec. 14.)

Source Law

Sec. 14.  Not by way of limitation, the Board of Managers of said District is authorized in its behalf to accept donations, gifts and endowments for the District to be held in trust and administered by the Board of Managers for such purposes and under such direction, limitations and provisions as may be prescribed in writing by donor, not inconsistent with proper management and objects of the District.

Revisor's Note

(1)  Section 14, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, provides that, "[n]ot by way of limitation," the board has certain specified powers.  The revised law omits the quoted language because it is an accepted general principle of statutory construction that a grant of a power does not act as a limitation.  The general principle applies to this revision.

(2)  Section 14, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, 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. 1057.109.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT.  The board, with the approval of the Matagorda County 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 59th Leg., R.S., Ch. 41, Sec. 4 (part).)

Source Law

Sec. 4.  … The Board of Managers, with the approval of the Matagorda County 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 Federal government are responsible.  …

Revisor's Note

Section 4, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, 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. 1057.110.  AUTHORITY TO SUE AND BE SUED.  As a governmental agency, the district may sue and be sued in its own name in any court of this state.  (Acts 59th Leg., R.S., Ch. 41, Sec. 13 (part).)

Source Law

Sec. 13.  The hospital district … as a governmental agency may sue and be sued in any and all courts of this state in the name of such District.

Revisor's Note

(End of Subchapter)

Section 11, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, provides authority for the "State Board of Health, the State Department of Public Welfare or other state agency created for a similar purpose" to inspect hospital district facilities and records.  The revised law omits Section 11 because various state laws, including Chapters 222 and 241, Health and Safety Code, provide the necessary inspection authority to appropriate state agencies.  The omitted law reads:

Sec. 11.  After the creation and establishment of said District, it shall be subject to inspection by any duly authorized representative of the State Board of Health, the State Department of Public Welfare or other state agency created for a similar purpose that may hereafter be created, and resident officers shall admit such representatives into all District facilities and give them access on demand to all records, reports, books, papers and accounts pertaining to said District.

[Sections 1057.111-1057.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1057.151.  AUDITOR.  (a)  The Matagorda County auditor is the auditor for the district.

(b)  The auditor shall make any report and perform any accounting service reasonably incident or necessary to the proper conduct of the district's business.

(c)  The auditor shall receive the compensation determined by the board after considering the amount and value of the services performed for the district.  (Acts 59th Leg., R.S., Ch. 41, Sec. 16.)

Source Law

Sec. 16.  The Matagorda County Auditor shall be the auditor for said District, and he shall make such reports and perform such accounting services as may be reasonably incident or necessary to the proper conduct of the business of said District.  The compensation of said auditor shall be as determined by said District's Board of Hospital Managers, taking into consideration the amount and value of such services performed by said auditor for said District.

Revised Law

Sec. 1057.152.  DEPOSITORY.  (a)  The board by resolution shall designate a bank in the county as the district's depository.  A designated bank serves for two years and until a successor is designated.

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

(c)  The net revenue from the tax imposed under Section 1057.201 may be withdrawn as directed by the board.

(d)  All district money shall be secured in the manner provided for securing county funds.  (Acts 59th Leg., R.S., Ch. 41, Secs. 7 (part), 8.)

Source Law

Sec. 7.  … The remainder of tax collections, … may be withdrawn as directed by said District's Board of Managers.  All other income of such District shall be deposited in said depository. …

Sec. 8.  As soon as practicable after the election and qualification of the first Board of Managers of said District, said board shall by resolution designate a bank within the County as the District's depository, and all funds of said District shall be secured in the manner now provided for the security of County funds.  Such depository shall serve for a period of two (2) years and until a successor has been selected.

Revisor's Note

(1)  Section 7, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, 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. 7.  … [The remainder of tax collections,] after deduction of discounts and fees for assessing and collecting, shall be deposited in the District's depository and … .

(2)  Section 8, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, requires the board to select a depository "[a]s soon as practicable after the election and qualification of the first Board of Managers."  The revised law omits the quoted language as executed.

Revised Law

Sec. 1057.153.  AUTHORITY TO BORROW MONEY; SECURITY.  (a)  The board may borrow money at a rate the board determines is reasonable.

(b)  To secure a loan, the board may pledge:

(1)  district revenue that is not pledged to pay the district's bonded indebtedness;

(2)  tax revenue to be collected by the district in the next 12-month period that is not pledged to pay the principal of or interest on district bonds;

(3)  district bonds that have been authorized but not sold; and

(4)  any other unencumbered district assets.

(c)  The board may use the proceeds of a loan made under this section only for the district's operational and capital requirements.  (Acts 59th Leg., R.S., Ch. 41, Sec. 10B.)

Source Law

Sec. 10B.  (a)  The Board of Managers may borrow money at a rate of interest determined to be reasonable by the board.

(b)  To secure a loan, the Board of Managers may pledge:

(1)  the revenues of the District that are not pledged to pay the bonded indebtedness of the District;

(2)  tax revenue to be collected by the District during the 12-month period following the date of the pledge that has not been pledged to pay the principal of or interest on District bonds;

(3)  District bonds that have been authorized but have not been sold; or

(4)  any other unencumbered assets of the District.

(c)  The Board of Managers may not use loan proceeds obtained under this section for any purpose other than the operational and capital requirements of the District.

[Sections 1057.154-1057.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Revised Law

Sec. 1057.201.  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 59th Leg., R.S., Ch. 41, Sec. 10 (part).)

Source Law

Sec. 10.  The Board of Managers shall have the power and authority to issue and sell, as the obligations of such District, and in the name and upon the faith and credit of such District, general obligation bonds for the purchase, construction, acquisition, repair or renovation of buildings and improvements and equipping the same for hospital purposes and for any or all of such purposes. …

Revised Law

Sec. 1057.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  An ad valorem tax shall be imposed 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 1057.201 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 59th Leg., R.S., Ch. 41, Sec. 10 (part).)

Source Law

Sec. 10.  …  A sufficient annual tax shall be levied to create an interest and sinking fund to pay the interest on and principal of said bonds as same mature, providing said tax together with any other taxes levied for said District shall not exceed a rate of Seventy-Five Cents (75’) on the One Hundred Dollars ($100) valuation of all taxable property within said District in any one year.  …

Revisor's Note

Section 10, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, 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. 1057.203.  GENERAL OBLIGATION BOND ELECTION.  (a)  The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting in an election held for that purpose.

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

(c)  The order calling the election must specify:

(1)  the date of the election;

(2)  the location of the polling places;

(3)  the presiding election officers;

(4)  the purpose of the bond issuance;

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

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

(7)  the maximum maturity of the bonds.

(d)  Notice of a bond election shall be given by publishing a substantial copy of the order calling the election in a newspaper of general circulation in the district once each week for two consecutive weeks before the date of the election.  The first publication must occur at least 14 days before the date of the election.  (Acts 59th Leg., R.S., Ch. 41, Secs. 5 (part), 10 (part).)

Source Law

Sec. 5.  … all bond elections shall be ordered and the returns thereof shall be canvassed by said Board of Managers.

Sec. 10.  … No general obligation bonds (except refunding bonds) shall be issued by such District until authorized by a majority vote of the duly qualified resident electors of said District, voting in an election called and held for such purpose.  Such election shall be called (except as provided in Section 5) by the Board of Managers on its own motion, and the order calling said election shall specify the date of same, the place or places where the election shall be held, the presiding officers thereof, the purpose for which the bonds are to be issued, the amount thereof, maximum interest (not to exceed the maximum interest rate prescribed by Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717K-2, Vernon's Texas Civil Statutes)), and the maximum maturity date of such bonds … .  Notice of said election shall be given by publishing a substantial copy of the order calling the election in a newspaper of general circulation within the area of such District once a week for two consecutive weeks, the date of the first publication to be at least fourteen (14) days prior to the date set for said election.  …

Revisor's Note

(1)  Section 10, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, refers to an election held under Section 5.  The revised law omits the reference because the relevant portions of Section 5 were omitted for the reason stated in the revisor's note at the end of Subchapter A.

(2)  Section 5, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, provides that the election returns shall be canvassed by the board.  The revised law omits that requirement because it duplicates Section 67.002, Election Code, which requires the governing body of a political subdivision that orders an election to canvass the returns.

(3)  Section 10, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, provides that "[n]o general obligation bonds (except refunding bonds)" may be issued without an election.  The revised law omits the exception for refunding bonds because Chapter 1207, Government Code, provides general authority for an issuer, including a hospital district, to issue refunding securities, and Section 1207.003, Government Code, authorizes an issuer to issue refunding bonds without an election.

(4)  Section 10, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, refers to the "duly qualified resident electors" of the district.  The revised law omits "duly qualified resident" as unnecessary in this context because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "duly 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.

(5)  Section 10, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, refers to an election "called and held."  The revised law omits the reference to "calling" an election because, in this context, "calling" an election is included in the meaning of "holding" an election.  Under Chapter 3, Election Code, all elections must be ordered (called) before they may be held.

(6)  Section 10, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, provides that the election order must include the maximum interest rate "not to exceed the maximum interest rate prescribed by Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes)."  The revised law omits the quoted language because the maximum interest rate noted in Chapter 3 was revised in 1999 as Section 1204.006, Government Code, and Section 1204.006 applies to the district by application of Section 1204.001, Government Code.

Revised Law

Sec. 1057.204.  MATURITY OF GENERAL OBLIGATION BONDS.  District general obligation bonds must mature not later than 40 years after the date of issuance.  (Acts 59th Leg., R.S., Ch. 41, Sec. 10 (part).)

Source Law

Sec. 10.  … [the order calling said election shall specify] … the maximum maturity date of such bonds (not to exceed forty (40) years from their date or dates of issuance).  …

Revised Law

Sec. 1057.205.  EXECUTION OF GENERAL OBLIGATION BONDS.  (a)  The board's presiding officer shall execute the general obligation bonds in the district's name.

(b)  The board secretary shall countersign the bonds.  (Acts 59th Leg., R.S., Ch. 41, Sec. 10 (part).)

Source Law

Sec. 10.  … Such bonds shall be executed in the name of the District and on its behalf by the Chairman of the Board of Managers, countersigned by the Secretary of said board, and … .

Revised Law

Sec. 1057.206.  INVESTMENT OF GENERAL OBLIGATION BOND PROCEEDS.  Until the proceeds from the sale of general obligation bonds are needed to carry out the bond purpose, the proceeds may be:

(1)  invested in direct obligations of the United States; or

(2)  placed on time deposit.  (Acts 59th Leg., R.S., Ch. 41, Sec. 10 (part).)

Source Law

Sec. 10.  … Until such time as the bond proceeds are needed to carry out the bond purpose, such proceeds may be invested in direct obligations of the United States of America or may be placed on time deposit (either or both).  …

Revised Law

Sec. 1057.207.  REVENUE BONDS.  (a)  The board may 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 revenue derived from the operation of the district's hospital system.

(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 provided by Sections 264.042, 264.043, and 264.046-264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority.

(e)  An election is not required to authorize the issuance of revenue bonds. (Acts 59th Leg., R.S., Ch. 41, Sec. 10A.)

Source Law

Sec. 10A.  (a)  The Board of Managers may issue revenue bonds to:

(1)  purchase, construct, acquire, repair, equip, or renovate 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 hospital system.  The bonds may be additionally secured by a mortgage or deed of trust lien on all or part of District property.

(c)  The bonds must be issued in the manner provided by Sections 8, 10, 11, 12, and 13, Chapter 122, Acts of the 58th Legislature, Regular Session, 1963 (Article 4494r, Vernon's Texas Civil Statutes), for issuance of revenue bonds by county hospital authorities.

(d)  An election is not required to authorize issuance of revenue bonds.

Revisor's Note

Section 10A(c), Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, refers to Sections 8, 10, 11, 12, and 13, Chapter 122, Acts of the 58th Legislature, Regular Session, 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.

Revisor's Note

(End of Subchapter)

(1)  Section 10, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds shall be sold at the time, in the manner, at the price, and on the terms provided by the board.  The revised law omits that provision because it duplicates or is superseded by provisions of general law.  Sections 1201.005 and 1201.024, Government Code, provide that an issuer, including a hospital district, may specify the form of a bond it issues.  Section 1201.021, Government Code, provides that the governing body of an issuer may issue bonds in any denomination.  Sections 1201.005 and 1201.022, Government Code, provide that a governmental entity may specify the terms under which a bond is issued.  Those sections apply to district bonds by application of Section 1201.002, Government Code.  The omitted law reads:

Sec. 10.  … Said bonds shall be sold at such time or times, in such manner, at such price and on such terms as may be determined by said board.  …

(2)  Section 10, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, 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 10 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. 10.  … [Such bonds] … shall be subject to the same requirements in the manner of approval thereof by the Attorney General of the State of Texas and the registration thereof by the Comptroller of Public Accounts of the State of Texas as are by law provided for such approval and registration of bonds of counties of this state.  Upon the approval of such bonds by the Attorney General of Texas and registration by the Comptroller, the same shall be incontestable for any cause.  …

(3)  Section 10, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds may be made optional for redemption before maturity.  The revised law omits that provision because Section 1201.021, Government Code, provides that a public security may be issued as redeemable before maturity at one or more specified times.  Section 1201.021, Government Code, applies to district bonds by application of Section 1201.002, Government Code.  The omitted law reads:

Sec. 10.  … Said bonds may be made optional for redemption prior to their maturity date at the discretion of the Board of Managers.  …

(4)  Section 10, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, authorizes the district to issue refunding bonds for bonds issued under that section.  The revised law omits that provision for the reason stated in Revisor's Note (3) to Section 1057.203.  Section 10 also provides that refunding bonds issued under Section 10 must bear interest at the same or lower rate than the bonds being refunded unless the refunding will result in a lower total amount of interest paid.  The revised law omits that provision 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. 10.  … The District may, without election, issue bonds to refund and/or pay off any validly issued and outstanding District bonds, provided that such refunding bonds shall bear interest at the same rate or at a lesser rate than the bonds being refunded, unless it be shown mathematically that a savings will result in the total amount of interest to be paid.

(5)  Section 12, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds are legal and authorized investments for certain entities.  The revised law omits the provision as unnecessary.  As to several of the entities listed, Section 12 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 12 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).  While Section 12 lists "guardians" and Section 1201.041 does not, the latter statute includes "fiduciaries" and a guardian is a fiduciary.  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. 12.  All bonds issued by said District shall be and are hereby declared to be legal and authorized investments for banks, savings banks, trust companies, building and loan association, insurance companies, fiduciaries, trustees, guardians, and for the sinking funds of cities, towns, villages, counties, school districts or other political corporations or subdivisions of the State of Texas; and … .

(6)  Section 12, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds may secure certain deposits.  Although Section 12 does not specifically mention the deposits the bonds are eligible to secure, the only deposits they could secure would be deposits of public funds of this state or political subdivisions of this state.  As such, the revised law omits the provision as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions.  The omitted law reads:

Sec. 12.  … such bonds shall be lawful and sufficient security for deposits to the extent of their face value when accompanied by all unmatured coupons pertinent thereto.

[Sections 1057.208-1057.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Revised Law

Sec. 1057.251.  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)  meet the requirements of district bonds and indebtedness assumed by the district;

(2)  provide for the district's maintenance and operation expenses;

(3)  make improvements and additions to the district's hospitals or hospital system; and

(4)  acquire necessary sites by gift, purchase, lease, or condemnation. (Acts 59th Leg., R.S., Ch. 41, Secs. 6 (part), 7 (part).)

Source Law

Sec. 6.  Upon the creation of such District, the Board of Managers shall have the power and authority, and it shall be their duty, to levy on all property subject to District taxation for the benefit of the District, a tax … for the purposes of:  (1) meeting the requirements of the District's bonds and the indebtedness assumed by it; (2) providing for the District's maintenance and operating expenses; and (3) making improvements and additions to its hospitals or hospital system, and for the acquisition of the necessary sites therefor, by gift, purchase, lease or condemnation. …

Sec. 7.  … the Board of Managers shall levy the tax on all property within the District which is subject to taxation and … .  The tax so levied shall be collected, on all property subject to District taxation, … .

Revisor's Note

(1)  Section 6, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, provides that "[u]pon the creation of such District" the board shall impose taxes.  The revised law omits the quoted language as executed.

(2)  Section 7, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, requires the board to impose taxes at a certain time and in a certain manner.  The revised law omits those provisions because they were repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979, which repealed all "general, local, and special laws" that conflicted with that act.  The 1979 act enacted the Property Tax Code (Title 1, Tax Code), a comprehensive, substantive codification of property tax law.  Title 1, Tax Code, provides the exclusive procedures for the imposition and collection of property taxes by a taxing unit, including a hospital district.  The omitted law reads:

Sec. 7.  Not later than October 1 of each year [the Board of Managers shall levy the tax … .  The tax so levied shall be collected,] … on said Matagorda County tax values, and in the same manner and under the same conditions as said county taxes.  The amount of said annual District tax may be included on the annual county tax statements mailed or sent out by said Matagorda County assessor and collector.  …

Revised Law

Sec. 1057.252.  TAX RATE.  The board shall impose the tax at a rate not to exceed 75 cents on each $100 valuation of all taxable property in the district.  (Acts 59th Leg., R.S., Ch. 41, Sec. 6 (part).)

Source Law

Sec. 6.  … [the Board of Managers shall … levy … a tax] at a rate not to exceed Seventy-Five Cents (75’) on the One Hundred Dollars ($100) valuation of all taxable property within such District, … .

Revised Law

Sec. 1057.253.  TAX ASSESSOR-COLLECTOR.  The tax assessor-collector of Matagorda County shall collect taxes imposed by the district.  (Acts 59th Leg., R.S., Ch. 41, Sec. 7 (part).)

Source Law

Sec. 7.  … [the Board] … shall immediately certify such rate to the tax assessor and collector of Matagorda County. The tax so levied shall be collected … by said assessor and collector … .

Revisor's Note

(1)  Section 7, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, requires the board to certify the tax rate to the tax assessor-collector.  The revised law omits that provision because Section 26.05(a), Tax Code, requires the governing body of a taxing unit to adopt a tax rate for the current tax year and to notify the tax assessor of that rate.

(2)  Section 7, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, provides that the county tax assessor-collector may charge a fee for the assessment and collection of district taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (2) to Section 1057.251.  Section 6.27(b), Tax Code,  provides for the compensation of a county tax assessor-collector assessing and collecting taxes for another taxing unit.  The omitted law reads:

Sec. 7.  … Said assessor and collector shall charge and deduct from payments to such District the fees for assessing and collecting the tax at the rate of not exceeding one per cent (1%) of the amounts collected as may be determined by the District's Board of Managers but in no event in excess of Five Thousand Dollars ($5,000) for any one fiscal year.  …

(3)  Section 7, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, provides that interest and penalties on district taxes are the same as for county taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (2) to Section 1057.251. Chapter 33, Tax Code, provides for the assessment of penalties and interest on delinquent taxes.  The omitted law reads:

Sec. 7.  … Interest and penalties on taxes paid such District shall be the same as for said county taxes.  …

Revisor's Note

(End of Subchapter)

Section 7, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, provides that the board 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. 7.  … Said board shall have authority to levy said tax for the entire year in which said District is established to obtain funds to initiate the operation of the District.

Revisor's Note

(End of Chapter)

(1)  Section 2, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, 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. 2.  … Any and all lands, buildings, improvements and equipment in said District jointly or separately owned by Matagorda County and all cities or towns in said District which incurred outstanding indebtedness for hospital purposes prior to the creation of said District shall become the property of the District if the proposition set out in Section 3 hereof carries, and title to said lands, buildings, improvements and equipment shall vest in the District.  All obligations under contract legally incurred by said County and said cities or towns, or any of them, for the building of, or the support and maintenance of, hospital facilities in said District, prior to the creation of said District but outstanding at the time of the creation of said District, shall be assumed and discharged by it without prejudice to the rights of third parties.  Any outstanding bonded indebtedness incurred by said County and said cities or towns, or any of them, in the acquisition of such lands, buildings, improvements and equipment, or in the construction and equipping of such hospital facilities, shall be assumed by the District and become the obligation of the District.  Said Matagorda County and said cities or towns, or any of them, which issued such bonds shall be by the District relieved of any further liability for the payment thereof, or for providing interest and sinking fund requirements thereon; provided that nothing herein contained shall limit or affect any of the rights of any of the holders of such bonds against said County or said city or town, as the case may be, in the event of default in the payment of the principal of or interest on any of such bonds in accordance with their respective terms.  As soon as practicable after the District is created and authorized at the election provided for in Section 3 hereof and there shall have been appointed and qualified the Board of Hospital Managers hereinafter provided for, the Matagorda County Commissioners Court and the governing body of each of said cities or towns, as the case may be, shall execute and deliver to said District an instrument in writing conveying to said District all the hospital property heretofore mentioned, including said lands, buildings, improvements and equipment.  …

(2)  Section 15, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, provides that the act is severable.  The revised law omits that provision because it duplicates Section 311.032, Government Code (Code Construction Act), which provides that a provision of a statute is severable from each other provision of the statute that can be given effect.  The omitted law reads:

Sec. 15.  … If any provision of this Act should be invalid, such fact shall not affect the authorization for the creation of the District or the validity of any other provisions of this Act, and the Legislature hereby declares that it would have created the District and enacted the valid provisions of this Act notwithstanding the invalidity of any other provision or provisions hereof.

(3)  Section 17, Chapter 41, Acts of the 59th Legislature, Regular Session, 1965, 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. 17.  Proof of publication of the Constitutional Notice required in the enactment hereof under the provisions of Section 9 of Article IX of the Texas Constitution has been made in the manner and form provided by law pertaining to the enactment of Local and Special Laws and is hereby found and declared to be proper and sufficient to satisfy such requirement.