TLC: Special District Local Laws Code Proposed Chapters

80C176(3) PEP

CHAPTER 1062. MITCHELL COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 1062.001. 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 Mitchell County Hospital District. (Acts 60th Leg., R.S., Ch. 466, Sec. 1a(a) (part); New.)

Source Law

Sec. 1a. (a) … The district, … shall hereafter be known as the "Mitchell County Hospital 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. 1062.002. AUTHORITY FOR OPERATION. The Mitchell County Hospital District operates in accordance with Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties provided by this chapter. (Acts 60th Leg., R.S., Ch. 466, Sec. 1 (part).)

Source Law

Sec. 1. In accordance with the provisions of Article IX, Section 9, of the Constitution of the State of Texas, this Act shall be operative so as to authorize the creation, establishment, maintenance, and operation of a hospital district within this state … to be known as "Colorado City Hospital District" with such rights, powers and duties as provided in this Act.

Revisor's Note

(1) Section 1, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, authorizes the "creation, establishment, maintenance, and operation" of the district. The revised law omits "creation" and "establishment" as executed. The revised law omits "maintenance" because, in this context, the meaning of that term is included in the meaning of "operation."

(2) Section 1, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, refers to the "Colorado City Hospital District." Section 1a, as added by Chapter 371, Acts of the 63rd Legislature, Regular Session, 1973, provides that following expansion of the district by annexation of Commissioners Precinct No. 4, the name of the district changed to the "Mitchell County Hospital District." The revised law therefore omits the reference to the "Colorado City Hospital District."

Revised Law

Sec. 1062.003. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of:

(1) Commissioners Precincts Nos. 1, 2, and 3 of Mitchell County, Texas, as those boundaries existed on January 1, 1967; and

(2) Commissioners Precinct No. 4 of Mitchell County, Texas, as those boundaries existed on January 1, 1973. (Acts 60th Leg., R.S., Ch. 466, Secs. 1 (part), 1a(a) (part).)

Source Law

Sec. 1. … with boundaries coextensive with the boundaries of Commissioners Precincts Nos. 1, 2 and 3 of Mitchell County, Texas, as such precincts were constituted on January 1, 1967, … .

Sec. 1a. (a) The territory lying within the boundaries of Commissioners Precinct No. 4 of Mitchell County, Texas, as it was constituted on January 1, 1973, may be added to the district upon petition for annexation, … .

Revisor's Note

Section 1a, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, provides procedures for the annexation of certain territory to the district by petition for an election and includes language providing for the annexed territory to bear its pro rata share of the district's indebtedness. Because the annexation of the territory was approved at an election held under Section 1a, the revised law omits the relevant law as executed. The omitted law reads:

Sec. 1a. (a) [The territory lying within the boundaries of Commissioners Precinct No. 4 of Mitchell County, Texas, as it was constituted on January 1, 1973, may be added to the district upon petition for annexation,] which petition shall be signed by not less than 20 qualified voters residing in the territory to be annexed or in the district. The petition shall be filed with the secretary of the board of directors of the district, and the board shall pass an order fixing a time and place at which the petition shall be heard. The secretary shall issue notice of the time and place of hearing, and the notice shall describe the territory proposed to be annexed. Notice of the hearing shall be given by publication of a copy of the notice in a newspaper of general circulation in Mitchell County, Texas, at least one time, the date of the publication to be at least 10 days prior to the hearing. If, on the hearing of the petition by the board of directors, the board finds that the proposed annexation of territory is to the advantage of the district and to the territory to be annexed, then the board may order annexation of the territory to the district. [The district,] as expanded by the annexation of Commissioners Precinct No. 4, [shall hereafter be known as the "Mitchell County Hospital District."] The annexed territory shall bear its pro rata share of all indebtedness that may be owed, contracted, or authorized by the district; provided, however, annexation of the territory shall not become final until ratified by a majority vote of the qualified voters of the district and by a majority vote of the qualified voters of the territory to be annexed at two separate but simultaneous elections.

(b) The elections shall be called by the board of directors on its own motion. The order calling the elections shall include the time and places for holding the elections, the form of the ballot, and the officers of the elections. The votes cast at each of the separate elections shall be recorded, returned, and canvassed separately. Notice of the elections shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in Mitchell County once a week for two consecutive weeks, the first publication to appear at least 30 days prior to the day of the elections.

(c) The ballots for the elections shall be printed to provide for voting for or against the proposition: "The annexation of Commissioners Precinct No. 4 to the Colorado City Hospital District, the assumption by the annexed territory of its pro rata share of all indebtedness that may be owed, contracted, or authorized by the district, and the change of the name of the district, as expanded, to the Mitchell County Hospital District."

Revised Law

Sec. 1062.004. 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 60th Leg., R.S., Ch. 466, Sec. 20 (part).)

Source Law

Sec. 20. The support and maintenance of the hospital district shall never become a charge against or obligation of the State of Texas, … .

Revised Law

Sec. 1062.005. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 60th Leg., R.S., Ch. 466, Sec. 20 (part).)

Source Law

Sec. 20. … nor shall any direct appropriation be made by the Legislature for the construction, maintenance, or improvement of any of the facilities of such district.

Revisor's Note

(End of Subchapter)

(1) Section 2, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, states that the district shall take over and receive title to all property pertaining to the hospitals or hospital system located in the district. The revised law omits this provision as executed. The omitted law reads:

Sec. 2. The district herein authorized to be created shall take over and there shall be transferred to it title to all lands, buildings, improvements, and equipment in anywise pertaining to the hospitals or hospital system in any city or town within the district and thereafter … .

(2) Sections 3 and 8, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, provide procedures for holding an election on the creation of the district and the imposition of an ad valorem tax. Because the creation of the district and the imposition of the tax were approved at the election, the revised law omits the relevant law as executed. The omitted law reads:

Sec. 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 property taxpaying electors of the area of the proposed district voting at an election called for such purpose. Such election may be called by a majority of the temporary or provisional directors or shall be called by said provisional directors upon presentation of a petition therefor signed by at least 100 qualified property taxpaying electors of the area of the proposed district. Such election shall be held not less than 35 nor more than 60 days from the date the election is ordered. The order calling the election shall specify the date, place or places of holding the election, the form of ballot, the presiding judge and alternate judge for each voting place and provide for clerks as in county elections. Notice of election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in the county once a week for two consecutive weeks, the first publication to appear at least 30 days prior to the date established for the election. If the proposition to create the Colorado City Hospital District fails to carry at the election, no other election for the same purpose may be held within one year after the result of the election is announced officially.

At said election there shall be submitted to the qualified property taxpaying electors of the area of the proposed district the proposition of whether the hospital district shall be created with authority to levy annual taxes at a rate not to exceed 75 cents on each $100 valuation of taxable property within such district for the purpose of meeting the requirements of the district's bonds, indebtedness assumed by it, and its maintenance and operating expenses.

The ballots for such creation election shall have printed thereon the following:

"FOR the creation of Colorado City Hospital District, providing for the levy of a tax not to exceed 75 cents on each $100 valuation using Mitchell County values and Mitchell County tax rolls, and providing for the assumption by such district of all outstanding bonds and indebtedness heretofore issued by any city or town within said district for hospital purposes."

"AGAINST the creation of Colorado City Hospital District, providing for the levy of a tax not to exceed 75 cents on each $100 valuation using Mitchell County values and Mitchell County tax rolls, and providing for the assumption by such district of all outstanding bonds and indebtedness heretofore issued by any city or town within said district for hospital purposes."

Within 10 days after such election is held, the provisional directors of the district shall convene and canvass the returns of the election and, in the event such election results favorably to the proposition specified in Section 3, the board shall so find and declare the hospital district established and created.

Sec. 8. A petition for an election to create the hospital district (as provided in Section 3) presented to the provisional directors may incorporate a request that a separate proposition be submitted at such election as to whether the board of directors of the district (in the event same is created) shall be authorized to issue bonds for the purposes specified in the first paragraph of Section 7. Such petition shall specify the maximum amount of bonds to be issued, their maximum maturity and maximum interest rate; and the same shall be included in the proposition submitted at the election.

[Sections 1062.006-1062.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Revised Law

Sec. 1062.051. BOARD ELECTION; TERM. (a) The board consists of seven directors elected from the district at large.

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

(1) directors serve staggered two-year terms; and

(2) an election shall be held on the uniform election date in May of each year to elect the appropriate number of directors.

(c) The election order must state the time, place, and purpose of the election. (Acts 60th Leg., R.S., Ch. 466, Secs. 4(a) (part), (b) (part), (e) (part).)

Source Law

Sec. 4. (a) … The terms of office of the first, third, fifth and seventh named directors shall expire on the first Saturday in April of the second year following the election for the creation of the district, and the terms of the second, fourth, and sixth named directors shall expire on the first Saturday in April of the year following the election for the creation of the district. Successors shall be elected by a vote of the electors of the entire district for two-year terms.

(b) … [permanent directors] whose terms shall expire as hereinabove provided… .

(e) The board of directors shall order a regular election of directors to be held on the first Saturday in May of each year. The board of directors shall issue the order at least 45 days before the date of the election. The order must state the time, place, and purpose of the election… .

Revisor's Note

(1) Section 4, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, prescribes the procedures for the appointment of temporary directors and for electing the initial board of directors. The revised law omits those provisions as executed but codifies the establishment of a board consisting of seven directors elected from the district at large. Section 4 also establishes staggered two-year terms for the initial elected directors that expire in the first or second year after the election. The revised law codifies the provision specifying staggered terms but omits the provision relating to the year on which the initial terms expire as executed.

(2) Section 4(a), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, provides that directors serve two-year terms. Section 285.081, Health and Safety Code, applicable to this district, provides a mechanism by which the governing board of a hospital district, on its own motion, may order that the members are to be elected in even-numbered years to serve staggered four-year terms. The revised law is drafted accordingly and adds a reference to Section 285.081, Health and Safety Code, for the convenience of the reader.

(3) Sections 4(a) and (b), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, prescribe the procedure for the appointment of temporary directors and for electing the initial board of permanent directors and provide that the permanent board may exercise the powers hereafter conferred. The revised law omits the provisions related to the temporary and initial board as executed. The revised law omits the provision related to powers because any grant of power to the board would apply by its own terms. The omitted law reads:

Sec. 4. (a) Upon the effective date of this Act, the following named seven persons shall be and constitute the temporary or provisional directors of the said district: (1) Mrs. Dee Bassham, (2) Murrell Blassingame, (3) Rex McKinney, (4) T. C. Moore, (5) J. W. Randle, (6) Bob Reily, and (7) Wayne Shawn; and each of said directors shall subscribe to the Constitutional oath of office within 60 days of the effective date of this Act. Should any of the named directors refuse to act or for any reason fail to qualify as herein required, the County Judge of Mitchell County shall fill such vacancy… .

(b) The directors named herein and their successors in office shall hold office as provisional or temporary directors until such time as the creation of the district has been approved at an election as herein provided. At such time as the creation of the district is so approved and the returns of the election officially canvassed, the persons acting as provisional or temporary directors shall become permanent directors… . such permanent directors, acting as a board, shall have and exercise the powers hereafter conferred on such board.

(4) Section 4(b), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, requires each director to execute 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:

(b) … Each permanent director and his successor in office shall qualify by executing the Constitutional oath of office, and … .

(5) Section 4(e), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, was amended in 2001 to require board elections to be held on the "first Saturday in May." From 1986 to 2003, Section 41.001, Election Code, provided for a uniform election date for all political subdivisions on the first Saturday in May. In Chapter 1315, Acts of the 78th Legislature, Regular Session, 2003, the legislature amended Section 41.001 by moving the uniform election date in May to the third Saturday. In Chapter 1, Acts of the 78th Legislature, 3rd Called Session, 2003, the legislature amended Section 41.001 by moving the uniform election date in May back to the first Saturday. In Chapter 471, Acts of the 79th Legislature, Regular Session, 2005, the legislature amended Section 41.001 by moving the uniform election date in May to the second Saturday. The revised law substitutes "uniform election date in May" for "first Saturday in May" to reflect these changes while preserving as closely as possible the legislative intent expressed in the 2001 amendment to Section 4(e) that the election be held on the first Saturday in May, which was at that time the uniform election date in May.

(6) Section 4(e), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, provides that the board shall order the election of directors and shall issue the order at least 45 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 45 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.

(7) Section 4(e), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, provides that the board shall appoint the presiding judge, who appoints election clerks as required. The revised law omits the provision because it duplicates Sections 32.005 and 32.031, Election Code, applicable to the district under Section 1.002, Election Code. The omitted law reads:

(e) … The board of directors shall appoint the presiding judge, who shall appoint election clerks as required… .

Revised Law

Sec. 1062.052. NOTICE OF ELECTION. At least 10 days before the date of an election of directors, notice of the election shall be published one time in a newspaper of general circulation in the district. (Acts 60th Leg., R.S., Ch. 466, Sec. 4(e) (part).)

Source Law

(e) … [a regular election of directors] … Notice of such election shall be published in a newspaper of general circulation in the district one time at least 10 days prior to the date of election… .

Revised Law

Sec. 1062.053. QUALIFICATIONS FOR OFFICE. (a) To be qualified for election to the board, a person must be:

(1) a resident of the district; and

(2) a qualified voter.

(b) A district employee may not serve as a director. (Acts 60th Leg., R.S., Ch. 466, Sec. 4(c) (part).)

Source Law

(c) To be qualified for election to the board of directors, a person must be a qualified voter and a resident of the district. An employee of the district may not serve as a director… .

Revised Law

Sec. 1062.054. BOARD VACANCY. (a) If a vacancy occurs in the office of director, the remaining directors by majority vote shall elect a director to hold office for the remainder of the unexpired term.

(b) If the number of directors is reduced to fewer than four for any reason, the remaining directors shall immediately call a special election to fill the vacancies. If the remaining directors do not call the election, a district court, on application of a qualified voter or taxpayer of the district, may order the directors to hold the election. (Acts 60th Leg., R.S., Ch. 466, Sec. 4(d) (part).)

Source Law

(d) … All vacancies in the office of director shall be filled for the unexpired term by a majority vote of the remainder of the board of directors, and the person elected to fill the vacancy shall hold office for the remainder of the unexpired term. In the event the number of directors shall be reduced to less than four for any reason, the remaining directors shall immediately call a special election to fill said vacancies, and upon failure to do so, a district court, upon application of any qualified voter or taxpayer of the district, may issue a mandate requiring that such election be ordered by the remaining directors.

Revised Law

Sec. 1062.055. OFFICERS. (a) The board shall elect a president and a vice president from among its members.

(b) The board shall elect a person, who is not required to be a director, to serve as secretary and treasurer.

Source Law

(d) The board of directors shall organize by electing one of their number as president and one of their number as vice president. The board of directors shall also elect one person who is not required to be a director to serve as secretary and treasurer. Each officer serves a one-year term… .

Revised Law

Sec. 1062.056. COMPENSATION; EXPENSES. A director is not entitled to compensation but is entitled to reimbursement for actual expenses incurred in attending to district business. The expenses must be:

(1) reported in the district's records; and

(2) approved by the remainder of the board. (Acts 60th Leg., R.S., Ch. 466, Sec. 4(c) (part).)

Source Law

(c) … A director is not entitled to compensation but is entitled to receive reimbursement for actual expenses incurred in attending to the district's business, provided the expenses are reported in the district's minute book or other district records and approved by the remainder of the board of directors.

Revisor's Note

Section 4(c), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, requires that expenses be reported in the "district's minute book or other district records." The revised law omits the reference to the "district's minute book" because the minute book is a district record.

Revised Law

Sec. 1062.057. VOTING REQUIREMENT. A concurrence of four directors is sufficient in any matter relating to district business. (Acts 60th Leg., R.S., Ch. 466, Sec. 4(d) (part).)

Source Law

(d) … [board of directors] … a concurrence of four shall be sufficient in all matters pertaining to the business of the district… .

Revisor's Note

Section 4(d), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, provides that four directors constitute a quorum. The revised law omits that provision because it duplicates Section 311.013, Government Code (Code Construction Act), which provides that a quorum of a public body is a majority of the number of members fixed by statute. The omitted law reads:

(d) … Any four members of the board of directors shall constitute a quorum and … .

Revised Law

Sec. 1062.058. 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) The board may require the district administrator, on assuming the administrator's duties, to 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.

(e) The board may pay for the bond with district money. (Acts 60th Leg., R.S., Ch. 466, Sec. 5(a) (part).)

Source Law

Sec. 5. (a) … The board of directors shall appoint a qualified person to be known as the administrator of the hospital district and may in its discretion appoint an assistant to the administrator. Such administrator and assistant administrator, if any, shall serve at the will of the board and shall receive such compensation as may be fixed by the board. The board may require the administrator, upon assuming the administrator's duties, to 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 the administrator shall perform the duties required, and containing such other conditions as the board may require. The board may pay for the bond with district funds… .

Revised Law

Sec. 1062.059. 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 60th Leg., R.S., Ch. 466, Sec. 5(a) (part).)

Source Law

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

Revised Law

Sec. 1062.060. APPOINTMENT AND RECRUITMENT OF STAFF AND EMPLOYEES. (a) The board may appoint to the staff or may employ any doctors, technicians, nurses, and other employees the board considers necessary for the efficient operation of the district.

(b) The district may employ fiscal agents, accountants, architects, and attorneys the board considers proper.

(c) The board may provide that the district administrator has the authority to hire district employees, including technicians and nurses.

(d) The board may spend district money to recruit physicians, nurses, and other trained medical personnel. (Acts 60th Leg., R.S., Ch. 466, Secs. 5(a) (part), (d), 16.)

Source Law

Sec. 5. (a) … The board of directors shall have the authority to employ or appoint to the staff such doctors, technicians, nurses and other employees of every kind and character as may be deemed necessary for the efficient operation of the district. The board may provide that the administrator shall have the authority to employ technicians, nurses and employees of the district.

(d) The board of directors may spend district funds to recruit physicians, nurses, and other trained medical personnel.

Sec. 16. The district may employ fiscal agents, accountants, architects, and attorneys as the board may consider proper.

Revised Law

Sec. 1062.061. PERSONNEL CONTRACTS. (a) The board may contract to provide administrative and other personnel for the operation of the hospital facilities.

(b) The term of the contract may not exceed 25 years from the date the contract is entered. (Acts 60th Leg., R.S., Ch. 466, Sec. 9(c) (part).)

Source Law

(c) The board of directors may enter into a contract or contracts to provide administrative and other personnel for the operation of the hospital facilities, but in no event may a contract be for a period that exceeds 25 years from the date the contract is entered… .

Revised Law

Sec. 1062.062. EDUCATIONAL PROGRAMS; COURSES. The board may provide or contract to provide educational programs or courses for district employees and medical staff. (Acts 60th Leg., R.S., Ch. 466, Sec. 5(f).)

Source Law

(f) The board of directors may provide or contract to provide educational programs or courses for employees and medical staff of the district.

Revised Law

Sec. 1062.063. RETIREMENT BENEFITS. The board may provide retirement benefits for district employees by:

(1) establishing or administering a retirement program; or

(2) participating in a statewide retirement system. (Acts 60th Leg., R.S., Ch. 466, Sec. 5(c).)

Source Law

(c) The board of directors may provide retirement benefits for the employees of the district by establishing or administering a retirement program or electing to participate in a statewide retirement system.

Revisor's Note

(End of Subchapter)

Section 4(e), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, states that a person must file a ballot application with the board secretary to be a candidate for director and prescribes a deadline for filing the application. The revised law omits the requirement to file the application with the board secretary because it duplicates Sections 144.003 and 144.004, Election Code. The revised law omits the filing deadline because it is superseded by Section 144.005, Election Code. Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state. The omitted law reads:

(e) … Any person desiring that person's name to be printed on the ballot as a candidate for director shall file an application with the secretary of the board of directors of the district at least 31 days prior to the date of election.

[Sections 1062.064-1062.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Revised Law

Sec. 1062.101. DISTRICT RESPONSIBILITY. The district has full responsibility for operating all hospital facilities for providing medical and hospital care for the district's needy inhabitants. (Acts 60th Leg., R.S., Ch. 466, Sec. 19 (part).)

Source Law

Sec. 19. … The said hospital district shall assume full responsibility for the operation of all hospital facilities for the furnishing of medical and hospital care for its needy inhabitants… .

Revisor's Note

Section 19, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, provides that the district "shall assume" full responsibility for operating hospital facilities 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. 1062.102. 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 or to provide medical care. (Acts 60th Leg., R.S., Ch. 466, Sec. 19 (part).)

Source Law

Sec. 19. 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 or for providing medical care… .

Revisor's Note

(1) Section 19, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, 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 19, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, 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. 1062.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the district's hospitals and hospital system. (Acts 60th Leg., R.S., Ch. 466, Sec. 5(a) (part).)

Source Law

Sec. 5. (a) The board of directors shall manage, control and administer the hospitals and hospital system of the district… .

Revised Law

Sec. 1062.104. HOSPITAL SYSTEM. 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. (Acts 60th Leg., R.S., Ch. 466, Sec. 2 (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… .

Revised Law

Sec. 1062.105. RULES. The board may adopt rules for the operation of the district. (Acts 60th Leg., R.S., Ch. 466, Sec. 5(a) (part).)

Source Law

Sec. 5. (a) … The district through its board of directors shall have the power and authority … to promulgate rules and regulations for the operation of the district… .

Revisor's Note

Section 5(a), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, 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. 1062.106. 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 60th Leg., R.S., Ch. 466, Sec. 10 (part).)

Source Law

Sec. 10. The board of directors of such district shall have the power to prescribe the method and manner of making purchases and expenditures by and for such hospital district, and also shall be authorized to prescribe all accounting and control procedures… .

Revised Law

Sec. 1062.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system. Nothing here prohibits the establishing and equipping of a clinic as a part of the hospital system.

(b) The board may:

(1) purchase or lease property, including facilities or equipment, for the district to use in the hospital system; and

(2) mortgage or pledge the property as security for the payment of the purchase price.

(d) The board may sell or otherwise dispose of the district's property, including facilities and equipment.

(e) 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. (Acts 60th Leg., R.S., Ch. 466, Secs. 9(a), (b), (c) (part), 10 (part).)

Source Law

Sec. 9. (a) The board of directors is hereby given complete discretion as to the type of buildings (both as to number and location) required to establish and maintain an adequate hospital system. Nothing herein shall prohibit the establishing and equipping of a clinic as a part of the hospital system.

(b) The board of directors may purchase or lease property, facilities, and equipment for the district to use in the hospital system and may mortgage or pledge the property, facilities, or equipment as security for the payment of the purchase price.

(c) … The board may transfer district hospital facilities by lease to individuals, corporations, or other legal entities and may sell or otherwise dispose of the district's property, facilities, and equipment.

Sec. 10. … 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

Section 9(a), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, requires the board to determine the buildings required to "establish and maintain" an adequate hospital system. The revised law omits the reference to establishing the hospital system as executed.

Revised Law

Sec. 1062.108. 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 or convenient 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.

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

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

(3) provide a bond for costs or a supersedeas bond on an appeal or writ of error. (Acts 60th Leg., R.S., Ch. 466, Sec. 14.)

Source Law

Sec. 14. 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 or convenient 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 Section 21.021(a), Property Code, 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 nor to give bond for costs or for supersedeas on any appeal or writ of error.

Revisor's Note

(1) Section 14, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, provides that the district has the "right and power of eminent domain for the purpose of acquiring [property] by condemnation." The revised law substitutes for the quoted language "may exercise the power of eminent domain to acquire [property]" because the phrases have the same meaning, and the latter phrase is consistent with modern usage in laws relating to eminent domain.

(2) Section 14, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, 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.

Revised Law

Sec. 1062.109. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district. (Acts 60th Leg., R.S., Ch. 466, Sec. 18.)

Source Law

Sec. 18. The board of directors of the hospital district is authorized on behalf of such district to accept donations, gifts, and endowments 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 object of the hospital district.

Revisor's Note

Section 18, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, refers to "donations" and "gifts." The revised law omits the reference to "donations" because "donations" is included in the meaning of "gifts."

Revised Law

Sec. 1062.110. CONSTRUCTION CONTRACTS. The board may contract for construction only after competitive bidding as provided by Subchapter B, Chapter 271, Local Government Code. (Acts 60th Leg., R.S., Ch. 466, Sec. 10 (part).)

Source Law

Sec. 10. … The board may contract for construction only after competitive bidding as provided by Subchapter B, Chapter 271, Local Government Code… .

Revised Law

Sec. 1062.111. 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 60th Leg., R.S., Ch. 466, Sec. 5(b).)

Source Law

(b) The board of directors 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 sick, diseased, or injured persons.

Revisor's Note

(1) Section 5(b), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, 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(b), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, refers to the treatment of a "sick, diseased, or injured person." The revised law omits the reference to "diseased" because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1062.112. 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 financial circumstances of:

(1) the patient; and

(2) a relative of the patient who is legally responsible for the patient's support.

(b) If the district administrator determines that the patient or relative cannot pay all or part of the costs of the patient's care and treatment in the hospital, the amount of the costs that cannot be paid becomes a charge against the district.

(c) If the district administrator determines that the patient or relative can pay for all or part of the costs of the care and treatment provided to the patient by the district, the patient or relative 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 responsible 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) The board may institute a suit to collect an amount owed to the district by a patient who is not able to pay under this section.

(f) If there is a dispute as to the ability to pay, or doubt in the mind of the district administrator concerning the ability to pay, the board shall hold a hearing and, after calling witnesses, shall:

(1) resolve the dispute or doubt; and

(2) issue any appropriate orders.

(g) A final order of the board may be appealed to the district court. (Acts 60th Leg., R.S., Ch. 466, Secs. 5(g), 17.)

Source Law

[Sec. 5]

(g) The board of directors may institute a suit to collect amounts owed to the district by patients who are not able to pay under Section 17 of this Act.

Sec. 17. Whenever a patient residing within the district has been admitted to the facilities thereof, the administrator may cause inquiry to be made as to the person's financial circumstances and the financial circumstances of a relative of the patient who is legally liable for the patient's support. On the administrator's finding that the patient or a relative who is legally responsible for the patient's support is able to pay for all or any part of the patient's care and treatment provided to the patient by the district, an order shall be made directing the patient or the relative to pay to the hospital district for the care and support of such patient a specified sum per week in proportion to financial ability. The administrator shall have power and authority to collect such sums from the estate of the patient or the relative who is legally responsible for the patient's support in the manner provided by law for collection of expenses in the last illness of a deceased person. If the administrator finds that the patient or the relative is not able to pay either in whole or in part for the patient's 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 concerning ability to pay, 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 a final order of the board shall lie to the district court.

Revised Law

Sec. 1062.113. NONPROFIT CORPORATION. (a) The district may create and sponsor a nonprofit corporation under the Business Organizations Code and may contribute money to or solicit money for the corporation.

(a-1) On or before December 31, 2009, the district may create and sponsor a nonprofit corporation under the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) or the Business Organizations Code, as applicable, and may contribute money to or solicit money for the corporation.

(b) The corporation may use district money only to provide health care or other services the district is authorized to provide under this chapter.

(c) The corporation may invest the corporation's money in any manner in which the district may invest the district's money, including investing money as authorized by Chapter 2256, Government Code.

(d) The board shall establish controls to ensure that the corporation uses its money as required by this section.

(e) This subsection and Subsection (a-1) expire December 31, 2009. (Acts 60th Leg., R.S., Ch. 466, Sec. 5(h).)

Source Law

(h) The district may sponsor and create a nonprofit corporation under the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) and may contribute funds to or solicit funds for the corporation. The corporation may use district funds only to provide health care or other services the district is authorized to provide under this Act. The board of directors shall establish adequate controls to ensure the corporation uses funds as required by this subsection. The corporation may invest corporation funds in any manner in which the district may invest funds, including investing funds as authorized by Chapter 2256, Government Code.

Revisor's Note

Section 5(h), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, refers to the Texas Non-Profit Corporation Act. That act was codified in various chapters of the Business Organizations Code by Chapter 182, Acts of the 78th Legislature, Regular Session, 2003. The Business Organizations Code took effect January 1, 2006, and applies only to domestic business entities formed on or after that date, to domestic business entities formed before that date that elect to have that code govern their operations, and to certain foreign business entities. On January 1, 2010, the Texas Non-Profit Corporation Act expires, and the Business Organizations Code will apply to all business entities without regard to date of formation or whether an entity is a foreign or domestic business entity. The revised law is drafted to reflect the applicability of those statutes in accordance with their effective dates or on election by a business entity.

Revised Law

Sec. 1062.114. AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued. (Acts 60th Leg., R.S., Ch. 466, Sec. 5(a) (part).)

Source Law

(a) … The district through its board of directors shall have the power and authority to sue and be sued and … .

[Sections 1062.115-1062.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1062.151. BUDGET. The district administrator shall prepare an annual budget for approval by the board. (Acts 60th Leg., R.S., Ch. 466, Sec. 6 (part).)

Source Law

Sec. 6. … The administrator shall prepare an annual budget for approval by the board of directors… .

Revised Law

Sec. 1062.152. NOTICE; HEARING; APPROVAL 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 must be published one time in a newspaper of general circulation in the district.

Source Law

Sec. 6. … A public hearing on the annual budget shall be held by the board of directors after notice of such hearing has been published in a newspaper of general circulation in the district one time at least 10 days before the date set for the hearing… . the annual budget, and … shall be approved by the board of directors… .

Revised Law

Sec. 1062.153. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. (Acts 60th Leg., R.S., Ch. 466, Sec. 6 (part).)

Source Law

Sec. 6. … The annual budget may be amended from time to time as the circumstances may require, but … all amendments thereto, shall be approved by the board of directors… .

Revisor's Note

Section 6, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, states that the board may amend the budget "from time to time." Throughout this chapter, 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. 1062.154. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the budget or an amendment to the budget. (Acts 60th Leg., R.S., Ch. 466, Sec. 6 (part).)

Source Law

Sec. 6. … No expenditure may be made for any expense not included in the annual budget or an amendment thereto… .

Revised Law

Sec. 1062.155. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

(1) if revenue bonds of the district are outstanding; or

(2) more than once in a 24-month period. (Acts 60th Leg., R.S., Ch. 466, Sec. 6 (part).)

Source Law

Sec. 6. The district operates on the fiscal year established by the board of directors. The fiscal year may not be changed if revenue bonds of the district are outstanding or more than once in a 24-month period… .

Revised Law

Sec. 1062.156. ANNUAL AUDIT. The board annually shall have an audit made of the district's financial condition. (Acts 60th Leg., R.S., Ch. 466, Sec. 6 (part).)

Source Law

Sec. 6. … The board of directors shall cause an annual audit to be made of the financial condition of the district, … .

Revised Law

Sec. 1062.157. INSPECTION OF ANNUAL AUDIT AND DISTRICT RECORDS. The annual audit and other district records shall be open to inspection at the district's principal office. (Acts 60th Leg., R.S., Ch. 466, Sec. 6 (part).)

Source Law

Sec. 6. … [an annual audit] … which together with other records of the district shall be open to inspection at the principal office of the district… .

Revised Law

Sec. 1062.158. 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 60th Leg., R.S., Ch. 466, Sec. 6 (part).)

Source Law

Sec. 6. … As soon as practicable after the close of each fiscal year, the administrator shall prepare for the board a full sworn statement of all moneys belonging to the district and a full account of the disbursements of same.

Revised Law

Sec. 1062.159. DEPOSITORY. (a) The board shall select one or more banks to serve as a depository for district money.

(b) District money shall be immediately deposited on receipt with a depository bank, except that sufficient money must be remitted to the place or places designated as agent for the payment of principal of and interest on the district's outstanding bonds or other obligations in time for the agent to make that payment on or before the maturity date of the principal and interest.

(c) To the extent that money in a depository bank is not insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by law for the security of county funds.

(d) Membership on the district's board of an officer or director of a bank does not disqualify the bank from being designated as a depository bank. (Acts 60th Leg., R.S., Ch. 466, Sec. 11.)

Source Law

Sec. 11. The board of directors of the district shall name one or more banks to serve as depository for the funds of the district. All such funds shall, as derived and collected, be immediately deposited with such depository bank or banks, except that sufficient funds shall be remitted to the place or places designated as agent for the payment of principal of and interest on the outstanding bonds of the district or other obligations assumed by it and in time that such money may be received by said agent or agents for payment on or prior to the date of maturity of such principal and interest so to be paid. To the extent that funds in the depository bank or banks are not insured by the Federal Deposit Insurance Corporation, they shall be secured in the manner provided by law for security of county funds. Membership on the board of directors of an officer or director of a bank shall not disqualify such bank from being designated as depository.

Revisor's Note

Section 11, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, refers to money "derived and collected." The revised law substitutes "on receipt" for the quoted language because the terms are synonymous, and the former is more commonly used.

Revised Law

Sec. 1062.160. SPENDING AND INVESTMENT RESTRICTIONS. Except as otherwise provided by Section 1062.107(e) 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 district fiscal year. (Acts 60th Leg., R.S., Ch. 466, Sec. 10 (part).)

Source Law

Sec. 10. … Except as permitted in the preceding sentence and as permitted by Sections 7, 7A, 7B, 7C, and 8, the district may incur no obligation payable from any revenues of the district (taxes or otherwise) except those on hand or to be on hand within the then current fiscal year of the district.

Revisor's Note

Section 10, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, states that "[e]xcept as permitted in the preceding sentence and as permitted by Sections 7, 7A, 7B, 7C, and 8," the district may not incur certain obligations. The "preceding sentence" in Section 10 is codified in Section 1062.107(e). As explained in Revisor's Note (2) at the end of Subchapter A, Section 8 is omitted from the revised law as executed. Sections 7, 7A, 7B, and 7C are codified in Subchapter E. The revised law is drafted accordingly.

Revised Law

Sec. 1062.161. GENERAL AUTHORITY TO BORROW MONEY; SECURITY. (a) The board may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time the loan is made.

(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; or

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

(c) A loan for which tax revenue or bonds are pledged must mature not later than the first anniversary of the date the loan is made. A loan for which other district revenue is pledged must mature not later than the fifth anniversary of the date the loan is made. (Acts 60th Leg., R.S., Ch. 466, Sec. 20B.)

Source Law

Sec. 20B. (a) The board of directors may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time of the loan.

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

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

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

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

(c) A loan for which tax revenue or bonds are pledged must mature not later than the first anniversary of the date on which the loan was made. A loan for which other district revenues are pledged must mature not later than the fifth anniversary of the date on which the loan was made.

Revised Law

Sec. 1062.162. AUTHORITY TO BORROW MONEY IN EMERGENCY; SECURITY. (a) The board may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time the loan is made if the board determines that:

(1) money is not available to meet authorized obligations of the district; and

(2) an emergency exists.

(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; or

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

(d) The board may not spend money obtained from a loan under this section for any purpose other than:

(1) the purpose for which the board declared an emergency; and

(2) if district tax revenue or bonds are pledged to pay the loan, the purpose for which the pledged taxes were imposed or the pledged bonds were authorized. (Acts 60th Leg., R.S., Ch. 466, Sec. 20A.)

Source Law

Sec. 20A. (a) If the board of directors determines that funds are not available to meet lawfully authorized obligations of the district and that an emergency exists, the board of directors may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time the loan is made.

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

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

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

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

(d) The board of directors may not spend loan proceeds under this section for any purpose other than the purpose for which the board declared an emergency existed. If tax revenues or bonds are pledged to pay the loan, the board of directors may not use the loan proceeds for a purpose other than for the purpose for which the taxes were imposed or the bonds were authorized.

Revisor's Note

Section 20A(a), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, refers to "lawfully authorized obligations." The revised law omits "lawfully" because, in context, a "lawful" obligation is included in the meaning of an "authorized" obligation.

[Sections 1062.163-1062.200 reserved for expansion]

SUBCHAPTER E. BONDS

Revised Law

Sec. 1062.201. GENERAL OBLIGATION BONDS. The board may issue and sell general obligation bonds authorized by an election in the name and on the faith and credit of the district to:

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

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

(3) acquire and operate a mobile emergency medical or air ambulance service. (Acts 60th Leg., R.S., Ch. 466, Sec. 7(a).)

Source Law

Sec. 7. (a) The board of directors may issue and sell bonds authorized by an election in the name and on the faith and credit of the hospital district to purchase, construct, acquire, repair, or renovate buildings or improvements, equip buildings or improvements for hospital purposes, or acquire and operate a mobile emergency medical or air ambulance service.

Revisor's Note

Section 7(a), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, provides that the board has the power and authority to issue and sell bonds in the name and on the faith and credit of the district. Because the type of bonds described by Section 7(a) are known as "general obligation bonds," the revised law is drafted accordingly.

Revised Law

Sec. 1062.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1062.201, 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 limit approved by the voters at the election authorizing the imposition of the tax. (Acts 60th Leg., R.S., Ch. 466, Sec. 7(b).)

Source Law

(b) At the time the bonds are issued by the district, the board of directors shall levy a tax. The tax must be sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as they mature. In any year, the tax together with any other tax the district levies may not exceed the limit approved by the voters at the election authorizing the levy of taxes.

Revisor's Note

Section 7(b), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, 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.

Revised Law

Sec. 1062.203. 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 at an election held for that purpose.

(b) The board may order a bond election.

(c) The election shall be conducted as provided by Chapter 1251, Government Code. (Acts 60th Leg., R.S., Ch. 466, Secs. 7(c), (d).)

Source Law

(c) The district may issue general obligation bonds only if the bonds are authorized by a majority of the qualified voters of the district voting at an election called and held for that purpose. The board of directors may order a bond election.

(d) The bond election shall be conducted as provided by Chapter 1251, Government Code.

Revisor's Note

(1) Section 7(c), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, refers to a majority vote of the "qualified" voters of the district. 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.

(2) Section 7(c), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, refers to an election "called and held." The revised law omits the reference to "calling" an election because calling an election is included in the meaning of "holding" an election. Under Chapter 3, Election Code, all elections must be ordered (called) before they may be held.

Revised Law

Sec. 1062.204. REVENUE BONDS. (a) The board may issue revenue bonds to:

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

(2) acquire sites to be used for hospital purposes; or

(3) acquire and operate a mobile emergency medical or air ambulance service to assist the district in carrying out its 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.

(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. (Acts 60th Leg., R.S., Ch. 466, Sec. 7A.)

Source Law

Sec. 7A. (a) The board of directors may issue revenue bonds to purchase, construct, acquire, repair, equip, or renovate buildings or improvements for hospital purposes, acquire sites to be used for hospital purposes, or acquire and operate a mobile emergency medical or air ambulance service to assist the district in carrying out its 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 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for issuance of revenue bonds by county hospital authorities.

Revised Law

Sec. 1062.205. MATURITY OF BONDS. District bonds must mature not later than 40 years after the date of issuance. (Acts 60th Leg., R.S., Ch. 466, Sec. 7C (part).)

Source Law

Sec. 7C. Bonds of the district … shall mature within 40 years of their date, … .

Revised Law

Sec. 1062.206. 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 60th Leg., R.S., Ch. 466, Sec. 7C (part).)

Source Law

Sec. 7C. Bonds of the district … 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 in the manner provided by Chapter 618, Government Code, and … .

Revisor's Note

(1) Section 7C, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, provides that district bonds must bear interest at a rate not to exceed that provided by Chapter 1204, Government Code. The revised law omits the provision because it duplicates Section 1204.006, Government Code, which 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 applies to district bonds by application of Section 1204.001, Government Code. The omitted law reads:

Sec. 7C. Bonds of the district shall bear interest at a rate not to exceed the rate provided by Chapter 1204, Government Code, … .

(2) Section 7C, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, provides that the 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 7C 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. 7C. 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.

Revisor's Note

(End of Subchapter)

(1) Section 7B, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, authorizes the district to issue refunding bonds for indebtedness issued or assumed by the district. The revised law omits that provision because Chapter 1207, Government Code, provides general authority for an issuer, including a hospital district, to issue refunding securities and prescribes procedures applicable to the securities. The omitted law reads:

Sec. 7B. Refunding bonds of the district may be issued for the purpose of refunding and paying off any outstanding indebtedness it has issued or assumed. The refunding bonds shall be issued in accordance with Chapter 1207, Government Code.

(2) Section 13, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, provides that district bonds are authorized investments for certain entities. The revised law omits the provision as unnecessary. As to several of the entities listed, Section 13 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 13 is superseded by Section 1201.041, Government Code, enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes). Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code. The revised law omits the reference to sinking funds of this state because it has been superseded by Section 404.024, Government Code (enacted in 1985 as Section 2.014, Treasury Act (Article 4393-1, Vernon's Texas Civil Statutes)), which governs the investment of state funds. Section 404.024(b)(10), Government Code, authorizes the investment of state funds in obligations of political subdivisions, including hospital districts. The omitted law reads:

Sec. 13. All bonds issued and indebtedness assumed by the district shall be and are hereby declared to be legal and authorized investments of banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, fiduciaries, 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… .

(3) Section 13, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, effectively provides that district bonds may secure deposits of public funds of this state or political subdivisions of this state. 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. 13. … 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 1062.207-1062.250 reserved for expansion]

SUBCHAPTER F. TAXES

Revised Law

Sec. 1062.251. IMPOSITION OF AD VALOREM TAX. (a) The board may impose a tax on all property in the district subject to district taxation.

(b) The board shall impose the tax to pay:

(1) indebtedness issued or assumed by the district; and

(2) the maintenance and operating expenses of the district.

(c) The board may not impose a tax to pay the principal of or interest on revenue bonds. (Acts 60th Leg., R.S., Ch. 466, Secs. 12 (part), 15 (part).)

Source Law

Sec. 12. The board of directors shall annually levy a tax … for the purpose of paying (1) the indebtedness assumed or issued by the district and (2) the maintenance and operating expenses of the district… .

Sec. 15. The board of directors may annually impose property taxes … of all taxable property in the district. The taxes may be used to pay for indebtedness issued or assumed by the district and for the maintenance and operating expenses of the district. The district may not impose taxes to pay the principal of or interest on revenue bonds… .

Revised Law

Sec. 1062.252. TAX RATE. (a) The board may impose the tax at a rate not to exceed the limit approved by the voters at the election authorizing the imposition of the tax.

(b) The tax rate for all purposes may not exceed 75 cents on each $100 valuation of taxable property in the district.

(c) In setting the tax rate, the board shall consider the income of the district from sources other than taxation. (Acts 60th Leg., R.S., Ch. 466, Secs. 12 (part), 15 (part).)

Source Law

Sec. 12. [The board of directors shall annually levy a tax] of not to exceed the amount hereinabove permitted … . In setting such tax rate the board shall take into consideration the income of the district from sources other than taxation… .

Sec. 15. [The board of directors may annually impose property taxes] in an amount not to exceed the limit approved by the voters at an election authorizing the levy of taxes. The tax rate for all district purposes may not exceed 75 cents on each $100 valuation of all taxable property in the district… .

Revisor's Note

Section 12, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, 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:

Sec. 12. … 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 county.

Revised Law

Sec. 1062.253. TAX ASSESSOR-COLLECTOR. The board may provide for the appointment of a tax assessor-collector for the district or may contract for the assessment and collection of taxes as provided by the Tax Code. (Acts 60th Leg., R.S., Ch. 466, Sec. 15 (part).)

Source Law

Sec. 15. … The board may provide for the appointment of a tax assessor-collector for the district or may contract for the assessment and collection of taxes as provided by the Tax Code.

Revisor's Note

(End of Subchapter)

(1) Section 5(e), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, authorizes the board to institute a suit to enforce the payment of taxes and to foreclose liens to secure that payment. The revised law omits that provision because it duplicates Chapter 33, Tax Code, which authorizes a taxing unit of government to file suit to enforce the payment of taxes and to foreclose a lien to secure that payment. The omitted law reads:

(e) The board of directors may institute a suit to enforce the payment of taxes and to foreclose liens to secure the payment of taxes due to the district.

(2) Section 15, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, provides that the Tax Code governs the appraisal, assessment, and collection of district taxes. The revised law omits this provision because Section 1.02, Tax Code, requires all taxing units of government to administer the assessment and collection of an ad valorem tax in conformity with Title 1, Tax Code. The omitted law reads:

Sec. 15. … The Tax Code governs the appraisal, assessment, and collection of district taxes… .

[Sections 1062.254-1062.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Revised Law

Sec. 1062.301. DISSOLUTION; ELECTION. (a) The district may be dissolved only on approval of a majority of the district voters voting in an election held for that purpose.

(b) The board may order an election on the question of dissolving the district and disposing of the district's assets and obligations.

(c) The board shall order an election if the board receives a petition requesting an election that is signed by at least 15 percent of the registered voters of the district.

(d) The election shall be held not later than the 60th day after the date the election is ordered.

(e) The order calling the election must state:

(1) the nature of the election, including the proposition to appear on the ballot;

(2) the date of the election;

(3) the hours during which the polls will be open; and

(4) the location of the polling places.

(f) Section 41.001(a), Election Code, does not apply to an election ordered under this section. (Acts 60th Leg., R.S., Ch. 466, Secs. 20C(a), (b), (c).)

Source Law

Sec. 20C. (a) The district may be dissolved only if the dissolution is approved by a majority of the qualified voters of the district voting in an election called and held for that purpose.

(b) The board of directors may order an election on the question of dissolving the district and disposing of the district's assets and obligations. The board of directors shall order an election to be held on the question of dissolution of the district if the board of directors receives a petition requesting an election that is signed by at least 15 percent of the registered voters of the district.

(c) The election shall be held not later than the 60th day after the date the election is ordered. Section 41.001(a), Election Code, does not apply to an election ordered under this section. The order calling the election must state:

(1) the nature of the election, including the proposition that is to appear on the ballot;

(2) the date of the election;

(3) the hours during which the polls will be open; and

(4) the location of the polling places.

Revisor's Note

(1) Section 20C(a), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, provides for dissolution of the district if approved by a majority of the "qualified" voters. The revised law omits "qualified" for the reason stated in Revisor's Note (1) to Section 1062.203.

(2) Section 20C(a), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, provides that the district may be dissolved if authorized at an election "called and held" for that purpose. The revised law omits the reference to "calling" an election for the reason stated in Revisor's Note (2) to Section 1062.203.

Revised Law

Sec. 1062.302. NOTICE OF ELECTION. (a) The board shall give notice of an election under this subchapter by publishing once a week for two consecutive weeks a copy of the election order in a newspaper with general circulation in the district.

(b) The first publication of the notice must appear on or before the 35th day before the date set for the election. (Acts 60th Leg., R.S., Ch. 466, Sec. 20C(d) (part).)

Source Law

(d) The board of directors shall give notice of the election by publishing a copy of the election order in a newspaper with general circulation in the district once a week for two consecutive weeks. The first publication must appear on or before the 35th day before the date set for the election… .

Revised Law

Sec. 1062.303. BALLOT. The ballot for an election under this subchapter must be printed to permit voting for or against the proposition: "The dissolution of the Mitchell County Hospital District." (Acts 60th Leg., R.S., Ch. 466, Sec. 20C(d) (part).)

Source Law

(d) … The ballot for an election at which the dissolution of the district is proposed shall be printed to permit voting for or against the proposition: "The dissolution of the Mitchell County Hospital District."

Revised Law

Sec. 1062.304. ELECTION RESULTS. (a) If a majority of the votes in an election under this subchapter favor dissolution, the board shall find that the district is dissolved.

(b) If a majority of the votes in the election do not favor dissolution, the board shall continue to administer the district and another election on the question of dissolution may not be held before the first anniversary of the date of the most recent election to dissolve the district. (Acts 60th Leg., R.S., Ch. 466, Sec. 20C(e).)

Source Law

(e) If a majority of the votes in the election favor dissolution, the board of directors shall find that the district is dissolved. If a majority of the votes in the election do not favor dissolution, the board of directors shall continue to administer the district, and another election on the question of dissolution may not be held before the first anniversary of the most recent election to dissolve the district.

Revised Law

Sec. 1062.305. TRANSFER, SALE, OR ADMINISTRATION OF ASSETS. (a) If a majority of the votes in the election held under this subchapter favor dissolution, the board shall:

(1) transfer the land, buildings, improvements, equipment, and other assets that belong to the district to a county or to another governmental entity in Mitchell County;

(2) sell the assets and liabilities to another person; or

(3) administer the property, assets, and debts until all money has been disposed of and all district debts have been paid or settled.

(b) If the board makes the transfer under Subsection (a)(1), the county or entity assumes all debts and obligations of the district at the time of the transfer, and the district is dissolved.

(c) If Subsections (a)(1) and (2) do not apply and the board administers the property, assets, and debts of the district under Subsection (a)(3), the district is dissolved when all money has been disposed of and all district debts have been paid or settled. (Acts 60th Leg., R.S., Ch. 466, Secs. 20C(f), (g), (m) (part).)

Source Law

(f) If a majority of the votes in the election favor dissolution, the board of directors shall:

(1) transfer the land, buildings, improvements, equipment, and other assets that belong to the district to a county or to another governmental entity in Mitchell County;

(2) sell the assets and liabilities to another person or entity; or

(3) administer the property, assets, and debts until all funds have been disposed of and all district debts have been paid or settled.

(g) If the district transfers the land, buildings, improvements, equipment, and other assets to a county or other governmental entity, the county or entity assumes all debts and obligations of the district at the time of the transfer, at which time the district is dissolved. If the district does not transfer the land, buildings, improvements, equipment, and other assets to a county or other governmental entity, or sell those assets and the liabilities to another person, the board of directors shall administer the property, assets, and debts of the district until all funds have been disposed of and all district debts have been paid or settled, at which time the district is dissolved.

(m) The district may provide for the sale or transfer of the district's assets and liabilities to another person or entity and the district's subsequent dissolution… .

Revisor's Note

Sections 20C(f) and (m), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, refer to "another person or entity." The revised law omits "entity" because "entity" is included in the meaning of "person" under Section 311.005(2), Government Code (Code Construction Act).

Revised Law

Sec. 1062.306. SALE OR TRANSFER OF ASSETS AND LIABILITIES. (a) The dissolution of the district and the sale or transfer of the district's assets and liabilities to another person may not contravene a trust indenture or bond resolution relating to the district's outstanding bonds. The dissolution and sale or transfer does not diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district.

(b) The sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of district residents, including the residents' collective property rights in the district's assets.

(1) the transfer is made to another governmental entity that serves the district; and

(2) the transferred assets are to be used for the benefit of the district's residents.

(d) A grant from federal funds is an obligation to be repaid in satisfaction. (Acts 60th Leg., R.S., Ch. 466, Secs. 20C(m) (part), (n).)

Source Law

(m) … The dissolution of the district and the sale or transfer of the district's assets and liabilities to another person or entity may not contravene a trust indenture or bond resolution relating to the outstanding bonds of the district. The dissolution and sale or transfer does not diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district.

(n) The sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of the residents of the district, including the residents' collective property rights in the district's assets. A grant from federal funds is an obligation to be repaid in satisfaction. The district may not transfer or dispose of the district's assets except for due compensation unless the transfer is made to another governmental entity that serves the district and the transferred assets are to be used for the benefit of the residents of the district.

Revisor's Note

Section 20C(m), Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, refers to "another person or entity." The revised law omits "entity" for the reason stated in the revisor's note to Section 1062.305.

Revised Law

Sec. 1062.307. IMPOSITION OF TAX AND RETURN OF SURPLUS TAXES. (a) After the board finds that the district is dissolved, the board shall:

(1) determine the debt owed by the district; and

(2) impose on the property included in the district's tax rolls a tax that is in proportion of the debt to the property value.

(b) On the payment of all outstanding debts and obligations of the district, the board shall order the person serving as secretary and treasurer to return to each district taxpayer the taxpayer's pro rata share of all unused tax money.

(c) A taxpayer may request that the taxpayer's share of surplus tax money be credited to the taxpayer's county taxes. If a taxpayer requests the credit, the board shall direct the person serving as secretary and treasurer to transmit the money to the county tax assessor-collector. (Acts 60th Leg., R.S., Ch. 466, Secs. 20C(h), (i), (j).)

Source Law

(h) After the board of directors finds that the district is dissolved, the board of directors shall:

(1) determine the debt owed by the district; and

(2) impose on the property included in the district's tax rolls a tax that is in proportion of the debt to the property value.

(i) When all outstanding debts and obligations of the district are paid, the board of directors shall order the person serving as secretary and treasurer to return the pro rata share of all unused tax money to each district taxpayer.

(j) A taxpayer may request that the taxpayer's share of surplus tax money be credited to the taxpayer's county taxes. If a taxpayer requests the credit, the board of directors shall direct the person serving as secretary and treasurer to transmit the funds to the county tax assessor-collector.

Revised Law

Sec. 1062.308. REPORT; DISSOLUTION ORDER. (a) After the district has paid all district debts and has disposed of all district money and other assets as prescribed by this subchapter, the board shall file a written report with the Commissioners Court of Mitchell County summarizing the board's actions in dissolving the district.

(b) Not later than the 10th day after the date the Commissioners Court of Mitchell County receives the report and determines that the requirements of this subchapter have been fulfilled, the commissioners court shall enter an order dissolving the district and releasing the board from any further duty or obligation. (Acts 60th Leg., R.S., Ch. 466, Secs. 20C(k), (l).)

Source Law

(k) After the district has paid all its debts and has disposed of all its assets and funds as prescribed by this section, the board of directors shall file a written report with the Commissioners Court of Mitchell County setting forth a summary of the board of directors' actions in dissolving the district.

(l) Not later than the 10th day after the date it receives the report and determines that the requirements of this section have been fulfilled, the Commissioners Court of Mitchell County shall enter an order dissolving the district and releasing the board of directors of the district from any further duty or obligation.

Revisor's Note

(End of Chapter)

(1) Sections 2 and 19, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, 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. … Such district shall assume the outstanding indebtedness incurred by any city or town within the district for hospital purposes prior to the creation of said district.

Sec. 19. … When the district is created and established, the county and all 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 owned by any city or town within said district. Operating funds and reserves for operating expenses which are on hand and funds which have been budgeted for hospital purposes by any city or town therein for the remainder of the fiscal year in which the district is established shall likewise be transferred to said district, as shall taxes theretofore levied for hospital purposes.

(2) Section 21, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, 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. 21. If any of the provisions of this Act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and to this end the provisions of this Act are declared to be severable.

(3) Section 22, Chapter 466, Acts of the 60th Legislature, Regular Session, 1967, provides that public notice of enactment of the statute was provided in a manner that satisfies the requirements of the Texas Constitution. The revised law omits that section as executed. The omitted law reads:

Sec. 22. Proof of publication of the 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 such notice is hereby found and declared proper and sufficient to satisfy such requirement.


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