80C183(3) RMB

 

CHAPTER 1065. MOTLEY COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 1065.001.  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 Motley County Hospital District.  (New.) 

Revisor's Note

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

Revised Law

Sec. 1065.002.  AUTHORITY FOR OPERATION.  The Motley County Hospital District operates in accordance with Section 9, Article IX, Texas Constitution. The district has the rights, powers, and duties provided by this chapter.  (Acts 59th Leg., R.S., Ch. 465, Sec. 1 (part).) 

Source Law

Sec. 1.  In accordance with the provisions of Article IX, Section 9, Constitution of the State of Texas, this Act shall be operative so as to authorize the creation, establishment, maintenance and operation of a hospital district within the State of Texas … to be known as Motley County Hospital District.  This District shall have the rights, powers and duties as are hereinafter prescribed. …

Revisor's Note

Section 1, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, 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."

Revised Law

Sec. 1065.003.  POLITICAL SUBDIVISION.  The district is a political subdivision of this state.  (Acts 59th Leg., R.S., Ch. 465, Sec. 18 (part).)

Source Law

Sec. 18.  The Hospital District created under the provisions of this Act shall be and is declared to be a political subdivision of the State of Texas, and … .

Revised Law

Sec. 1065.004.  DISTRICT TERRITORY.  The boundaries of the district are identical with the boundaries of Motley County, Texas.  (Acts 59th Leg., R.S., Ch. 465, Sec. 1 (part).)

Source Law

Sec. 1.  … with boundaries identical with those of Motley County, Texas, … .

Revised Law

Sec. 1065.005.  CORRECTION OF INVALID PROCEDURES.  If a court holds that any procedure under this chapter violates the constitution of this state or of the United States, the district by resolution may provide an alternative procedure that conforms with the constitution.  (Acts 59th Leg., R.S., Ch. 465, Sec. 19 (part).)

Source Law

Sec. 19.  …  [Federal or State Constitutions] …  Where any procedure hereunder may be held by any court to be violative of either of such Constitutions, the District shall have the power by resolution to provide an alternative procedure conformable with such Constitutions… .

Revisor's Note

Section 19, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that the act does not violate the federal or state constitution and requires that action under the act comply with the constitutions.  The revised law omits the reference to the federal constitution because, under the Supremacy Clause of the United States Constitution (Clause 2, Article VI), federal law always takes precedence over a state statute.  The revised law omits the reference to the Texas Constitution because the state cannot modify constitutional requirements by statute.  The omitted law reads:

Sec. 19.  Nothing in this Act shall be construed to violate any provisions of the Federal or State Constitutions, and all acts done under this Act shall be in such manner as will conform thereto, whether expressly provided or not… .

Revisor's Note

(End of Subchapter)

Sections 2 and 3, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provide procedures for holding an election on the creation of the district and the imposition of an ad valorem tax.  Because the creation of the district and the imposition of the tax were approved at the election, the revised law omits the provisions as executed.  The omitted law reads:

Sec. 2.  …  Such District shall not be created nor shall any tax therein be authorized unless and until such creation and such taxes are approved by a majority of the qualified property taxpaying electors of the District voting in an election called for such purpose.  Such election may be initiated by the Commissioners Court of Motley County upon its own motion or upon the petition of one hundred (100) resident qualified property taxpaying electors residing within the boundaries of the proposed Hospital District.  Such election when called shall be held not less than thirty (30) nor more than sixty (60) days from the day it is ordered.

The order calling the election shall specify the time and place or places of holding same, the form of ballot and the presiding judge for each voting place.  At such election there shall be submitted to the qualified property taxpaying electors the proposition of whether or not Motley County Hospital District shall be created with authority to levy annual taxes at a rate not to exceed seventy-five cents (75¢) on the one hundred dollar valuation of all taxable property within such District for the purpose of meeting the requirements of the District's bonds and its maintenance and operating expenses.  The ballots shall have printed thereon the following:

"FOR the creation of the Motley County Hospital District; providing for the levy of a tax not to exceed seventy-five cents (75¢) on the one hundred dollar valuation using Motley County, Texas, values and the Motley County, Texas, tax roll"; and

"AGAINST the creation of the Motley County Hospital District; providing for the levy of a tax not to exceed seventy-five cents (75¢) on the one hundred dollar valuation using Motley County, Texas, values and the Motley County, Texas, tax roll."

Notice of election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in the area of the proposed District once a week for two (2) consecutive weeks, the first publication to appear at least fourteen (14) days prior to the date established for the election.

The failure of any such election shall not operate to prohibit the calling and holding of subsequent elections for the same purpose.

Sec. 3.  Within ten (10) days after such election is held the Commissioners Court in such County shall convene and canvass the returns of the election, and if a majority of the qualified property taxpaying electors voting at said election vote in favor of the proposition, the Court shall so find and declare the Hospital District established and created and … .

[Sections 1065.006-1065.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Revised Law

Sec. 1065.051.  BOARD ELECTION; TERM.  (a)  The board consists of five directors elected from the district at large.

(b)  Directors serve staggered two-year terms unless four-year terms are established under Section 285.081, Health and Safety Code.  (Acts 59th Leg., R.S., Ch. 465, Sec. 3 (part).)

Source Law

Sec. 3.  …  five (5) directors shall be elected.  The three (3) directors receiving the highest vote at such first election shall serve for two (2) years, the other two (2) directors shall serve for one (1) year.  Thereafter all directors shall serve for a period of two (2) years and until their successors have been duly elected or appointed and qualified… .  All qualified voters of Motley County shall be entitled to vote for all directors… .

Revisor's Note

(1)  Section 3, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, prescribes the procedures for appointing the initial board.  The revised law omits the provision as executed.  The omitted law reads:

Sec. 3.  …  [the Commissioners Court in such County shall] … appoint five (5) persons as directors of the Hospital District to serve until the first Saturday in April following the creation and establishment of the District, at which time … .

(2)  Section 3, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, prescribes the terms of the directors elected at the expiration of the terms of the initial directors and, in doing so, establishes staggered two-year terms for the directors.  The revised law omits the specific provision relating to the terms of those directors as executed but codifies the establishment of staggered two-year terms.

(3)  Section 3, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, 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 directors 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.

(4)  Section 3, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that the directors serve "until their successors have been duly elected or appointed and qualified."  The revised law omits that provision because it duplicates Section 17, Article XVI, Texas Constitution, which provides that an officer in this state is to continue to perform the officer's official duties until a successor has qualified.

(5)  Section 3, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that directors' elections are held on the first Saturday in April each year.  The revised law omits that provision as impliedly repealed by a 1986 amendment to Section 41.001, Election Code.  Chapter 14, Acts of the 69th Legislature, 3rd Called Session, 1986, amended Section 41.001, Election Code, to prescribe certain uniform election dates.  Section 37 of that act required a political subdivision that held its general election of officers on the first Saturday in April to hold that election on a uniform election date in May or to choose a different uniform election day on which to hold the election.  The omitted law reads:

Sec. 3.  …  A regular election of directors shall be held on the first Saturday in April of each year, and … .

Revised Law

Sec. 1065.052.  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 Motley County. (Acts 59th Leg., R.S., Ch. 465,  Sec. 3 (part).)

Source Law

Sec. 3.  … notice of such election shall be published in a newspaper of general circulation in the county one (1) time at least ten (10) days prior to the date of election… .

Revisor's Note

Section 3, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, requires notice of a directors' election to be published in "the county."  Throughout this chapter, the revised law substitutes "Motley County" for the quoted language because Motley County is the county in which the district is located.

Revised Law

Sec. 1065.053.  BALLOT PETITION.  A person who wants to have the person's name printed on the ballot as a candidate for director must file with the board secretary a petition requesting that action.  The petition must be:

(1)  signed by not less than five registered voters; and

(2)  filed at least 25 days before the date of the election. (Acts 59th Leg., R.S., Ch. 465, Sec. 3 (part).)

Source Law

Sec. 3.  …  Any person desiring his name to be printed on the ballot as a candidate for director shall file a petition signed by not less than five (5) qualified voters asking that such name be printed on the ballot, with the secretary of the board of directors of the District.  Such petition shall be filed with such secretary at least twenty-five (25) days prior to the date of election.

Revisor's Note

Section 3, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, refers to a petition signed by "qualified voters."  The revised law substitutes "registered voters" for the quoted language because in the context of eligibility to sign a petition, Section 277.0021, Election Code, provides that "qualified voter" means a "registered voter."

Revised Law

Sec. 1065.054.  QUALIFICATIONS FOR OFFICE.  A director must:

(1)  be a resident of the district;

(2)  own land in the district subject to taxation; and

(3)  be at least 18 years of age when appointed or elected.  (Acts 59th Leg., R.S., Ch. 465, Sec. 3 (part).)

Source Law

Sec. 3.  …  Each director must be a resident of the District, own land subject to taxation within the District, and at the time of his election or appointment be at least twenty-one (21) years of age… .

Revisor's Note

Section 3, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, states that a person must be "at least twenty-one (21) years of age" to serve as a director.  The revised law substitutes "18" for "21" because Chapter 129, Civil Practice and Remedies Code, establishes 18 years as the age of majority in this state.  Section 129.002, Civil Practice and Remedies Code, provides that a law adopted before August 27, 1973, that extends a right, privilege, or obligation to an individual on the basis of a minimum age of 19, 20, or 21 years shall be interpreted as prescribing a minimum age of 18 years.  Section 3 was enacted in 1965 and has not been amended.

Revised Law

Sec. 1065.055.  BOND NOT REQUIRED.  A director is not required to post a public official's bond.  (Acts 59th Leg., R.S., Ch. 465,  Sec. 3 (part).)

Source Law

Sec. 3.  …  [Each member of the board of directors] … it shall not be necessary to execute a public official's bond.

…

Revised Law

Sec. 1065.056.  BOARD VACANCY.  (a)  If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term.

(b)  If the number of directors is reduced to fewer than three for any reason, the remaining directors shall immediately call a special election to fill the vacancies.  If the remaining directors do not call the election, a district court, on application of a district voter or taxpayer, may order the directors to hold the election.  (Acts 59th Leg., R.S., Ch. 465,  Sec. 3 (part).)

Source Law

Sec. 3.  …  All vacancies in the office of directors shall be filled for the unexpired term by appointment by the remainder of the board of directors.  In the event the number of directors shall be reduced to less than three (3) 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 may, upon application of any voter or taxpayer of the District, issue a mandate requiring that such election be ordered by the remaining directors.

…

Revised Law

Sec. 1065.057.  OFFICERS.  The board shall elect from among its members a president and a secretary.  (Acts 59th Leg., R.S., Ch. 465, Sec. 3 (part).)

Source Law

Sec. 3.  …

The board of directors shall organize by electing one of their number as president and one of their number as secretary… .

Revised Law

Sec. 1065.058.  COMPENSATION; EXPENSES.  A director serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties on approval of the expenses by the board.  (Acts 59th Leg., R.S., Ch. 465, Sec. 4 (part).)

Source Law

Sec. 4.  … the board of directors of the District, who shall serve without compensation but may be reimbursed for actual expenses incurred in the performance of their official duties upon the approval of such expenses by the board of directors.

Revised Law

Sec. 1065.059.  VOTING REQUIREMENT.  A concurrence of three directors is sufficient in any matter relating to district business.  (Acts 59th Leg., R.S., Ch. 465, Sec. 3 (part).)

Source Law

Sec. 3.  … [board of directors] … a concurrence of three (3) shall be sufficient in all matters pertaining to the business of the District. …

Revisor's Note

Section 3, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that three 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:

Sec. 3.  …  Any three (3) members of the board of directors shall constitute a quorum and … .

Revised Law

Sec. 1065.060.  EMPLOYEES.  The board may employ a general manager, attorney, bookkeeper, and architect and any other employees considered necessary for the efficient operation of the district.  (Acts 59th Leg., R.S., Ch. 465, Sec. 8 (part).)

Source Law

Sec. 8.  The board of directors of such District … may employ a general manager, attorney, bookkeeper, architect, and any other employees deemed necessary for the efficient operation of the Hospital District.

…

Revised Law

Sec. 1065.061.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.  All district records, including books, accounts, notices, minutes, and all other matters of the district and the operation of its facilities, shall be:

(1)  maintained at the district office; and

(2)  open to public inspection at the district office at all reasonable hours.  (Acts 59th Leg., R.S., Ch. 465, Sec. 8 (part).)

Source Law

Sec. 8.  …

All books, records, accounts, notices and minutes, and all other matters of the District and the operation of its facilities shall, except as herein provided, be maintained at the office of the District and there be open to public inspection at all reasonable hours.

…

Revisor's Note

Section 8, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, states that records shall be maintained at the district office "except as herein provided."  The revised law omits the quoted language because the act does not provide an exception.

Revised Law

Sec. 1065.062.  SEAL.  The board may adopt a seal for the district.  (Acts 59th Leg., R.S., Ch. 465, Sec. 8 (part).)

Source Law

Sec. 8.  The board of directors of such District … shall have the power to adopt a seal for such District; and … .

Revisor's Note

(End of Subchapter)

Section 3, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, requires each director to take the constitutional oath of office.  The revised law omits that provision because Section 1, Article XVI, Texas Constitution, requires all officers to take the oath (or affirmation) before assuming office.  The omitted law reads:

Sec. 3.  …  Each member of the board of directors shall qualify by executing the constitutional oath of office, but … .

[Sections 1065.063-1065.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1065.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for providing medical and hospital care for the district's needy inhabitants and for the district's needy and indigent residents.  (Acts 59th Leg., R.S., Ch. 465, Secs. 2 (part), 14 (part).)

Source Law

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

Sec. 14.  … such Hospital District shall assume full responsibility for the furnishing of medical and hospital care for the needy and indigent persons residing in said Hospital District from the date that taxes are collected for the Hospital District.

Revisor's Note

Sections 2 and 14, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provide that the district "shall assume" full responsibility for providing medical and hospital care for the district's needy inhabitants and needy and indigent residents, and Section 14 provides that the district shall assume that responsibility "from the date that taxes are collected for the Hospital District."  The revised law substitutes "has" for "shall assume" because the duty to assume the responsibility is executed.  The revised law omits "from the date that taxes are collected for the Hospital District" as executed.

Revised Law

Sec. 1065.102.  RESTRICTION ON COUNTY OR MUNICIPALITY TAXATION.  Motley County or a municipality in the district may not impose a tax on property in the district for hospital purposes.  (Acts 59th Leg., R.S., Ch. 465,  Sec. 14 (part).)

Source Law

Sec. 14.  Except as herein provided, Motley County, or any city or town within the Hospital District shall not levy any tax against any property within the Hospital District for hospital purposes; and … .

Revisor's Note

(1)  Section 14, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, states that "[e]xcept as herein provided," certain political subdivisions may not levy a tax for hospital purposes.  The revised law omits the quoted language because the act does not provide an exception.  In addition, throughout this chapter, the revised law substitutes "impose" for "levy" because, in this context, the terms are synonymous and "impose" is more commonly used.

(2)  Section 14, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, refers to a "city or town."  The revised law substitutes "municipality" for "city or town" to conform to the terminology of the Local Government Code.

Revised Law

Sec. 1065.103.  MANAGEMENT AND CONTROL.  The management and control of the district are vested in the board.  (Acts 59th Leg., R.S., Ch. 465,  Sec. 4 (part).)

Source Law

Sec. 4.  The management and control of the Hospital District created pursuant to the provisions of this Act are hereby vested in the board of directors of the District, … .

Revised Law

Sec. 1065.104.  HOSPITAL SYSTEM.  The district shall provide for the establishment of a hospital system to provide medical and hospital care to the district's residents by:

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

(2)  equipping the buildings and improvements; and

(3)  administering the buildings and improvements for hospital purposes.  (Acts 59th Leg., R.S., Ch. 465, Sec. 2 (part).)

Source Law

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

Revised Law

Sec. 1065.105.  RULES.  (a)  The board may adopt rules governing the operation of the district, including district facilities.

(b)  On approval by the board, the rules may be published in booklet form at district expense and made available to any taxpayer on request.  (Acts 59th Leg., R.S., Ch. 465, Sec. 8 (part).)

Source Law

Sec. 8.  …

The board of directors is specifically empowered to adopt rules and regulations governing the operation of such District and its facilities which rules and regulations shall supplement but shall not contravene any of the provisions of this Act.  Such rules and regulations may, upon approval of the board of directors, be published in booklet or pamphlet form at the expense of the District and may be made available to any taxpayer upon request.

Revisor's Note

(1)  Section 8, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, refers to "rules and regulations."  The revised law omits "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

(2)  Section 8, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that the board may adopt rules that "shall supplement but shall not contravene any of the provisions of this Act."  The revised law omits the quoted language because, under established principles of law, the board is not authorized to take any action contrary to the laws of this state.

(3)  Section 8, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, refers to publishing rules in "booklet or pamphlet form."  The revised law omits "pamphlet" because, in context, the meaning of "pamphlet" is included in the meaning of "booklet."

Revised Law

Sec. 1065.106.  PURCHASING AND ACCOUNTING PROCEDURES.  (a)  The board may prescribe the method and manner of making purchases and expenditures by and for the district.

(b)  The board shall prescribe:

(1)  all accounting and control procedures; and

(2)  the method of purchasing necessary supplies, materials, and equipment.  (Acts 59th Leg., R.S., Ch. 465, Sec. 8 (part).)

Source Law

Sec. 8.  The board of directors of such District shall have the power to prescribe the method and manner of making purchases and expenditures by and for such Hospital District, and also shall prescribe all accounting and control procedures; the method of purchasing necessary supplies, materials and equipment; and … .

Revised Law

Sec. 1065.107.  DISTRICT PROPERTY AND FACILITIES.  (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 part of the hospital system.

(b)  The board may lease all or part of the district's buildings and other facilities on terms considered to be in the best interest of the district's inhabitants.  The term of the lease may not exceed 25 years.  (Acts 59th Leg., R.S., Ch. 465, Sec. 7 (part).)

Source Law

Sec. 7.  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.  … the board may lease all or part of its buildings and facilities upon terms and conditions it considers to the best interest of the inhabitants, provided that in no event shall any lease be for a period in excess of twenty-five (25) years from the date the same is entered.

Revisor's Note

(1)  Section 7, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, 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.

(2)  Section 7, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, refers to "terms and conditions."  The revised law omits the reference to "conditions" because "conditions" is included in the meaning of "terms."

Revised Law

Sec. 1065.108.  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 property interest is necessary or convenient for the district to exercise a right, power, privilege, or function conferred on the district by this chapter.

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

(c)  In a condemnation proceeding brought by the district, the district is not required to:

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

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

(3)  provide a bond for costs or a supersedeas bond on an appeal or writ of error. (Acts 59th Leg., R.S., Ch. 465, Sec. 11.)

Source Law

Sec. 11.  A Hospital District organized in pursuance of this Act shall have the right and power of eminent domain for the purpose of acquiring by condemnation any and all property, or any interest therein, including outright ownership of such property in fee simple absolute, within the boundaries of the said District, necessary or convenient to the exercise of the rights, powers, privileges and functions conferred upon it by this Act, in the manner provided by General Law with respect to condemnation, provided that the said District shall not be required to make deposits in the registry of the trial court of the sum required by paragraph No. 2 in Article 3268, Revised Civil Statutes of Texas, 1925, as amended, or to make the bond required therein.  In condemnation proceedings being prosecuted by the said District, the District shall not be required to pay in advance or to give bond or other security for costs in the trial court, nor to give any bond otherwise required for the issuance of a temporary restraining order or a temporary injunction relating to condemnation proceedings, nor to give bond for costs or for supersedeas on any appeal or writ of error proceeding to any Court of Civil Appeals or to the Supreme Court.

Revisor's Note

(1)  Section 11, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that the district has the "right and power of eminent domain for the purpose of acquiring [property] by condemnation."  The revised law substitutes for the quoted language "may exercise the power of eminent domain to acquire [property]" because the phrases have the same meaning and the latter phrase is consistent with modern usage in laws relating to eminent domain.

(2)  Section 11, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that the district must exercise the power of eminent domain in the manner provided by "General Law with respect to condemnation."  The revised law substitutes for the quoted language a reference to Chapter 21, Property Code, because that is the general law governing eminent domain.

(3)  Section 11, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, refers to "paragraph No. 2 in Article 3268, Revised Civil Statutes of Texas, 1925, as amended."  That statute was codified in 1983 as Section 21.021(a), Property Code, and the revised law is drafted accordingly.  In addition, the revised law omits the reference to "as amended" because under Section 311.027, Government Code (Code Construction Act), a reference to a statute applies to all reenactments, revisions, or amendments of that statute unless expressly provided otherwise.

(4)  Section 11, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that the district is not required to provide bond on any appeal or writ of error proceedings to "any Court of Civil Appeals or to the Supreme Court."  The revised law omits the references to the courts because those are the only courts to which the district may appeal or apply for a writ of error.

Revised Law

Sec. 1065.109.  GIFTS AND ENDOWMENTS.  The board may accept for the district a gift or endowment for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district.  (Acts 59th Leg., R.S., Ch. 465, Sec. 16.)

Source Law

Sec. 16.  The board of directors of the District is authorized to accept donations, gifts and endowments for the Hospital District for such purposes and under such directions, limitations and provisions as may be prescribed in writing by donor, not inconsistent with proper management and objects of Hospital District.

Revisor's Note

Section 16, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, refers to "donations" and "gifts."  The revised law omits "donations" because "donations" is included in the meaning of "gifts."

Revised Law

Sec. 1065.110.  OPERATING AND MANAGEMENT CONTRACTS.  The board may enter into an operating or management contract relating to a district facility. (Acts 59th Leg., R.S., Ch. 465, Sec. 7 (part).)

Source Law

Sec. 7.  …  The board of directors is further authorized to enter into an operating or management contract with regard to its facilities, or parts thereof, or … .

Revised Law

Sec. 1065.111.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient who resides in the district is admitted to a district facility, the board shall have an inquiry made into the circumstances of:

(1)  the patient; and

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

(b)  If an agent designated by the district to handle the inquiry determines that the patient or those relatives cannot pay all or part of the costs of the care and treatment in the hospital, the amount of the costs that cannot be paid becomes a charge against the district.

(c)  If the board determines that the patient or those relatives are liable to pay for all or part of the costs of the patient's care and treatment, the patient or those relatives shall be ordered to pay to the district's treasurer a specified amount each week for the patient's support.  The amount ordered must be proportionate to the person's financial ability and may not exceed the actual per capita cost of maintenance.

(d)  The district may collect the amount from the patient's estate, or from any relative who is legally liable for the patient's support, in the manner provided by law for the collection of expenses of the last illness of a deceased person.

(e)  If there is a dispute as to the ability to pay, or doubt in the mind of the district's designated agent, the board shall hold a hearing and, after calling witnesses, shall:

(1)  resolve the dispute or doubt; and

(2)  issue an appropriate order.

(f)  The order may be appealed to the district court.  (Acts 59th Leg., R.S., Ch. 465, Sec. 15.)

Source Law

Sec. 15.  Whenever a patient residing in the Hospital District has been admitted to the facilities of the Hospital District, the directors shall cause inquiry to be made as to his circumstances, and of the relatives of such patient legally liable for his support.  If they find that such patient or said relatives are liable to pay for his care and treatment in whole or in part, an order shall be made directing such patient, or said relatives, to pay to the treasurer of the Hospital District for the support of such patient a specified sum per week, in proportion to their financial ability, but such sum shall not exceed the actual per capita cost of maintenance.  The District shall have power and authority to collect such sum from the estate of the patient, or his relatives legally liable for his support, in the manner provided by law for the collection of expenses of the last illness of a deceased person.  If the agent designated by the District to handle such affairs finds that such patient or said relatives are not able to pay, either in whole or in part, for his care and treatment in such hospital, the same shall become a charge upon the Hospital District.  Should there be a dispute as to the ability to pay, or doubt in the mind of the person designated as aforesaid, the District's directors shall hear and determine same, after calling witnesses, and shall make such order as may be proper, from which appeal shall lie to the District Court.

Revised Law

Sec. 1065.112.  AUTHORITY TO SUE AND BE SUED.  As a governmental agency, the district may sue and be sued in its own name in any court of this state.  (Acts 59th Leg., R.S., Ch. 465,  Sec. 18 (part).)

Source Law

Sec. 18.  The Hospital District … as a governmental agency may sue and be sued in any and all courts of this State in the name of such District.

Revisor's Note

(End of Subchapter)

Section 13, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides authority for "the State Board of Health or any State Board of Charities (or Public Welfare)" to inspect hospital district facilities and records.  The revised law omits Section 13 because various state laws, including Chapters 222 and 241, Health and Safety Code, provide the necessary inspection authority to appropriate state agencies.  The omitted law reads:

Sec. 13.  The Hospital District established or maintained under provisions of this Act shall be subject to inspection by any duly authorized representative of the State Board of Health or any State Board of Charities (or Public Welfare) that may hereafter be created, and resident officers shall admit such representatives into all Hospital District facilities and give them access on demand to all records, reports, books, papers and accounts pertaining to the Hospital District.

[Sections 1065.113-1065.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1065.151.  BUDGET.  The board annually shall require a budget to be prepared for the next fiscal year that includes:

(1)  proposed expenditures and disbursements;

(2)  estimated receipts and collections; and

(3)  the amount of taxes required to be imposed for the year.  (Acts 59th Leg., R.S., Ch. 465, Sec. 9 (part).)

Source Law

Sec. 9.  …

The board of directors shall each year cause a budget to be prepared showing the proposed expenditures and disbursements and the estimated receipts and collections for the following fiscal year and … .  The proposed budget shall also show the amount of taxes required to be levied and collected during such fiscal year and … .

Revisor's Note

Section 9, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, refers to taxes "levied and collected."  The revised law substitutes "impose" for the quoted language because "impose" is the term generally used in Title 1, Tax Code, and includes the levy and collection of an ad valorem tax.

Revised Law

Sec. 1065.152.  PROPOSED BUDGET:  NOTICE AND HEARING.  (a)  The board shall hold a public hearing on the proposed budget.

(b)  Notice of the hearing must be published at least once in a newspaper of general circulation in Motley County not later than the 10th day before the date of the hearing.

(c)  Any district taxpayer is entitled to:

(1)  appear at the time and place designated in the notice; and

(2)  be heard regarding any item included in the proposed budget.  (Acts 59th Leg., R.S., Ch. 465, Sec. 9 (part).)

Source Law

Sec. 9.  …

The board of directors … shall hold a public hearing on the proposed budget after publication of a notice of hearing in a newspaper of general circulation in the county at least once not less than ten (10) days prior to the date set for the hearing.  Any person who is a taxpayer of the District shall have the right to appear at the time and place designated in the notice and be heard with reference to any item shown in the proposed budget… .

Revised Law

Sec. 1065.153.  FISCAL YEAR.  The district operates on a fiscal year that begins on October 1 and ends on September 30.  (Acts 59th Leg., R.S., Ch. 465, Sec. 9 (part).)

Source Law

Sec. 9.  The fiscal year of the Hospital District authorized to be established by the provisions hereof shall commence on October 1 of each year and end on the 30th day of September of the following year… .

Revised Law

Sec. 1065.154.  ANNUAL AUDIT.  The board annually shall have an independent audit made of the district's books and records.  (Acts 59th Leg., R.S., Ch. 465, Sec. 9 (part).)

Source Law

Sec. 9.  …  The District directors shall cause an annual independent audit to be made of the books and records of the District.

…

Revised Law

Sec. 1065.155.  DEPOSITORY OR TREASURER.  (a)  The board by resolution shall designate a bank or banks in Motley County as the district's depository or treasurer.  A designated bank serves for two years and until a successor is designated.

(b)  All district money shall be secured in the manner provided for securing county funds.  (Acts 59th Leg., R.S., Ch. 465,  Sec. 12.)

Source Law

Sec. 12.  Within thirty (30) days after appointment and qualification of the board of directors of the Hospital District, the said directors shall by resolution designate a bank or banks within the county in which the District is located as the District's depository or treasurer, and all funds of the District shall be secured in the manner now provided for the security of county funds.  The depository shall serve for a period of two (2) years and until a successor has been named.

Revisor's Note

Section 12, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, requires the board to select a depository or treasurer "[w]ithin thirty (30) days after appointment and qualification of the board of directors of the Hospital District."  The revised law omits the quoted language as executed.

[Sections 1065.156-1065.200 reserved for expansion]

SUBCHAPTER E. BONDS

Revised Law

Sec. 1065.201.  GENERAL OBLIGATION BONDS.  The board may issue and sell general obligation bonds in the name and on the faith of the district for any purpose relating to:

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

(2)  equipping buildings or improvements for hospital purposes.  (Acts 59th Leg., R.S., Ch. 465, Sec. 6 (part).)

Source Law

Sec. 6.  The board of directors shall have the power and authority to issue and sell as the obligations of such Hospital District and in the name and upon the faith of such Hospital District, bonds for the purchase, construction, acquisition, repair or renovation of buildings and improvements and equipping the same for hospital purposes and for any and all of such purposes, … .

Revisor's Note

Section 6, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that the board has the power and authority to issue and sell bonds in the name and on the faith of the district.  Because the type of bonds described by Section 6 are known as "general obligation bonds," the revised law is drafted accordingly.

Revised Law

Sec. 1065.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  The board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on general obligation bonds issued under Section 1065.201 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 75 cents on each $100 valuation of taxable property in the district.  (Acts 59th Leg., R.S., Ch. 465, Sec. 6 (part).)

Source Law

Sec. 6.  … provided that a sufficient tax shall be levied to create an interest and sinking fund to pay the interest and principal as the same matures providing said tax together with any other taxes levied for said District shall not exceed seventy-five cents (75¢) on the one hundred dollar valuation in any one (1) year… .

Revisor's Note

Section 6, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, requires the district to impose a tax to pay the principal of and interest on bonds.  The revised law specifies that the tax is an "ad valorem" tax because it is clear from the source law that the tax is a property tax, and "ad valorem" is the term most commonly used to refer to a property tax.

Revised Law

Sec. 1065.203.  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.

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

(c)  The order calling the election must specify:

(1)  the date of the election;

(2)  the location of the polling places;

(3)  the presiding election officers;

(4)  the purpose of the bond issuance;

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

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

(7)  the maximum maturity of the bonds.

(d)  Notice of a bond election shall be given by publishing a substantial copy of the order calling the election in a newspaper of general circulation in Motley County once each week for two consecutive weeks before the date of the election.  The first publication must occur at least 14 days before the date of the election.  (Acts 59th Leg., R.S., Ch. 465,  Sec. 6 (part).)

Source Law

Sec. 6.  …  No bonds shall be issued by such Hospital District (except refunding bonds) until authorized by a majority of the participating legally qualified property taxpaying electors of the District who own taxable property therein which has been duly rendered for taxation.  Such election may be called by the board of directors on its own motion, and the order calling said election shall specify the date of the election, the place or places where the election shall be held, the presiding officers thereof, the purpose for which the bonds are to be issued, the amount thereof, maximum interest rate (not to exceed six per cent (6%) per annum) and the maximum maturity date of such bonds … .  Notice of election shall be given by publishing a substantial copy of the order calling the election in a newspaper of general circulation in such county once a week for two (2) consecutive weeks prior to the date of election, the date of the first publication being at least fourteen (14) days prior to the date set for the election… .

Revisor's Note

(1)  Section 6, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that "[n]o bonds … (except refunding bonds)" may be issued without an election.  The revised law omits the exception for refunding bonds because Chapter 1207, Government Code, provides general authority for an issuer, including a hospital district, to issue refunding securities, and Section 1207.003, Government Code, authorizes an issuer to issue refunding bonds without an election.

(2)  Section 6, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, refers to the "legally qualified property taxpaying electors of the District who own taxable property therein which has been duly rendered for taxation."  The revised law omits the reference to "legally qualified" because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "legally qualified voters" who are residents of the territory covered by the election to vote in an election. The revised law substitutes "voter" for "elector" because the former is the term used in the Election Code. In addition, the revised law omits the references to "property taxpaying" voters and  voters "who own taxable property therein which has been duly rendered for taxation" because in Hill v. Stone, 421 U.S. 289, 95 S. Ct. 1637 (1975), the United States Supreme Court determined that property ownership as a qualification for voting is an unconstitutional denial of equal protection.

(3)  Section 6, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that the ballot proposition must include the maximum interest rate "(not to exceed six per cent (6%) per annum)."  The revised law omits the quoted language because it has been superseded by the enactment of the maximum interest rate provision found in Section 1204.006, Government Code.  That section reflects the 1981 amendment of Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes, now Chapter 1204, Government Code), by Section 1, Chapter 61, Acts of the 67th Legislature, Regular Session, 1981, and permits a public agency, including a hospital district, to issue public securities at any net effective interest rate of 15 percent or less.  Section 1204.006, Government Code, applies to district bonds by application of Section 1204.001, Government Code.

(4)  Section 6, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, requires the district to pay the costs of elections.  The revised law omits the provision because it duplicates Section 1.014, Election Code, applicable to the district under Section 1.002 of that code.  The omitted law reads:

Sec. 6.  …  The cost of such election shall be paid by the Hospital District.

…

Revised Law

Sec. 1065.204.  MATURITY OF GENERAL OBLIGATION BONDS.  District general obligation bonds must mature not later than 40 years after the date of issuance.  (Acts 59th Leg., R.S., Ch. 465,  Sec. 6 (part).)

Source Law

Sec. 6.  … [the order calling said election shall specify … the maximum maturity date of such bonds] (not to exceed forty (40) years from the date of issuance)… .

Revised Law

Sec. 1065.205.  EXECUTION OF GENERAL OBLIGATION BONDS.  (a)  The board president shall execute the general obligation bonds in the district's name.

(b)  The board secretary shall countersign the bonds.  (Acts 59th Leg., R.S., Ch. 465, Sec. 6 (part).)

Source Law

Sec. 6.  …  Such bonds shall be executed in the name of the Hospital District and on its behalf by the president of the board of directors and countersigned by the secretary of the board of directors, and … .

Revised Law

Sec. 1065.206.  REVENUE OR SPECIAL OBLIGATION BONDS.  (a)  The board may issue and sell revenue or special obligation bonds for the purposes provided by Section 1065.201.

(b)  Special obligation bonds must be payable from the revenue of the district's entire hospital system, including that portion originally acquired and all past or future extensions, additions, or replacements, excluding taxes, after deducting the cost of maintaining and operating the system.  For purposes of this subsection, the cost of maintaining and operating the system:

(1)  may include only the items set forth and defined in the resolution authorizing the bond issuance; and

(2)  may not include the cost of providing medical or hospital care for the district's needy inhabitants.

(c)  A cost described by Subsection (b)(2) is a maintenance and operating expense for budget and tax purposes.

(d)  The district may issue revenue bonds without an election.

(e)  Revenue bonds may be additionally secured by:

(1)  a mortgage or deed of trust on real property;

(2)  a chattel mortgage on the district's personal property; or

(3)  both.

(f)  The board may issue bonds that are a junior lien on the district's net revenue or property and additional parity bonds under conditions specified in the bond resolution or trust indenture.

(g)  Money for the payment of not more than two years' interest on the bonds and an amount the board estimates will be required for maintenance and operating expenses during the first two years of operation may be set aside out of the proceeds from the sale of the bonds.

(h)  A revenue bond issued by the district must contain the provision:  "The holder of the bond may not demand payment of this bond or appurtenant coupons out of money raised or to be raised by taxation."  (Acts 59th Leg., R.S., Ch. 465,  Sec. 6(a) (part).)

Source Law

Sec. 6(a).  In addition to the power to issue bonds payable from ad valorem taxes (as provided in Section 6), the board of directors shall have the power to issue and sell revenue or special obligation bonds of the district for the identical purpose or purposes provided in Section 6.  Such special obligation bonds shall be payable from the revenues (excluding taxes) of the entire hospital system of the district (including that portion originally acquired and all past or future extensions, additions or replacements thereof) after deduction of the cost of maintaining and operating the system.  The maintenance and operating expenses of the system which shall be a charge against the revenues of the system shall include only such items as are set forth and defined in the resolution authorizing the issuance of the bonds.  The cost of providing medical or hospital care (either or both) for needy inhabitants of the district shall not be classed as a maintenance and operating expense for the purpose of this Section, but shall be so classed for budget and tax purposes (Sections 5 and 9).

Revenue bonds of the district may be issued without the necessity of an election and such bonds may be additionally secured by a mortgage or deed of trust on real property, or by a chattel mortgage on its personal property, or both.  Bonds constituting a junior lien on the net revenues or properties, as well as additional parity bonds, may be issued under conditions specified in the Bond Resolution or Trust Indenture.  Money for the payment of not more than two (2) years interest on the bonds and an amount estimated by the Board to be required for maintenance and operating expenses during the first two years of operation may be set aside for such purposes out of the proceeds from the sale of the bonds… .

Each revenue bond issued by the district shall contain the following provision:  "The holder hereof shall never have the right to demand payment of this bond or appurtenant coupons out of money raised or to be raised by taxation."  …

Revised Law

Sec. 1065.207.  CHARGES FOR SERVICES RENDERED.  If the board issues revenue bonds, the board shall charge and collect rates for services rendered by the hospital system that are sufficient to:

(1)  pay the maintenance and operating expenses described by Section 1065.206;

(2)  pay the principal of and interest on the bonds as each becomes due; and

(3)  create and maintain a bond reserve fund and other funds as provided in the bond resolution or trust indenture.  (Acts 59th Leg., R.S., Ch. 465, Sec. 6(a) (part).)

Source Law

Sec. 6(a).  …  If revenue bonds are issued, it shall be the duty of the board of directors to charge and collect sufficient rates for services rendered by the Hospital System to pay the aforesaid maintenance and operating expenses, to pay the principal and interest on such bonds as they respectively become due, and to create and maintain a bond reserve fund and other funds as provided in the Bond Resolution or Trust Indenture.

…

Revisor's Note

(End of Subchapter)

(1)  Sections 6 and 6(a), Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provide that district bonds are subject to the law requiring bond approval by the attorney general and registration of the bonds by the comptroller.  Section 6 also provides that after approval 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. 6.  …  shall be subject to the same requirements in the matter of approval thereof by the Attorney General of the State of Texas and the registration thereof by the Comptroller of Public Accounts of the State of Texas as are by law provided for such approval and registration of bonds of counties of this State.  Upon the approval of such bonds by the Attorney General of Texas and registration by the Comptroller the same shall be incontestable for any cause… .

Sec. 6(a).  …  Except as in this Section provided, revenue bonds shall be executed, submitted to the Attorney General of Texas for approval as to legality and upon being so approved be registered by the Comptroller of Public Accounts in the manner and with like effect as provided in Section 6 relating to bonds payable from ad valorem taxes.

(2)  Section 6, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds may be made optional for redemption before maturity.  The revised law omits that provision because Section 1201.021, Government Code, provides that a public security may be issued as redeemable before maturity at one or more specified times. Section 1201.021, Government Code, applies to district bonds by application of Section 1201.002, Government Code. The omitted law reads:

Sec. 6.  …

The bonds of the District may be optional for redemption prior to their maturity date at the discretion of the board of directors.

…

(3)  Section 6, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, authorizes the district to issue refunding bonds for bonds issued under that section.  The revised law omits that provision for the reason stated in Revisor's Note (1) to Section 1065.203.  Section 6 also provides that refunding bonds issued under Section 6 must bear interest at the same or lower rate than the bonds being refunded unless the refunding will result in a lower total amount of interest paid.  The revised law omits that provision for the reason stated in Revisor's Note (3) to Section 1065.203.  The omitted law reads:

Sec. 6.  …

The District may without an election issue bonds to refund and pay off any validly issued and outstanding bonds theretofore issued by the District, providing any such refunding bonds shall bear interest at the same rate or at a lesser rate than the bonds being refunded unless it be shown mathematically that a savings will result in the total amount of interest to be paid.

(4)  Section 17, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds are legal and authorized investments for certain entities.  The revised law omits the provision as unnecessary.  As to several of the entities listed, Section 17 has been superseded and impliedly repealed.  Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)).  Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by building and loan associations (now called savings and loan associations) are regulated by Sections 63.002 and 64.001, Finance Code.  As to the remaining entities listed, Section 17 is superseded by Section 1201.041, Government Code, enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes).  While Section 17 lists "guardians" and Section 1201.041 does not, the latter statute includes "fiduciaries" and a guardian is a fiduciary.  Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code.  The revised law omits the reference to sinking funds of this state because it has been superseded by Section 404.024, Government Code (enacted in 1985 as Section 2.014, Treasury Act (Article 4393-1, Vernon's Texas Civil Statutes)), which governs the investment of state funds. Section 404.024(b)(10), Government Code, authorizes the investment of state funds in obligations of political subdivisions, including hospital districts.  The omitted law reads:

Sec. 17.  All bonds issued by the District authorized to be established and created under the provisions of this Act shall be and are declared to be legal and authorized investments for banks, savings banks, trust companies, building and loan associations, insurance companies, fiduciaries, trustees, guardians, and for the sinking funds of cities, towns, villages, counties, school districts, or other political corporations or subdivisions of the State of Texas; and … .

(5)  Section 17, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds may secure certain deposits.  Although Section 17 does not specifically mention the deposits the bonds are eligible to secure, the only deposits they could secure would be deposits of public funds of this state or political subdivisions of this state.  As such, the revised law omits the provisions as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions.  The omitted law reads:

Sec. 17.  … such bonds shall be lawful and sufficient security for deposits to the extent of their face value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1065.208-1065.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Revised Law

Sec. 1065.251.  IMPOSITION OF AD VALOREM TAX.  (a)  On final approval of the annual budget, the board shall impose a tax on all property in the district subject to district taxation.

(b)  The board shall impose the tax to:

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

(2)  provide for the maintenance and operation of the district and hospital system.  (Acts 59th Leg., R.S., Ch. 465, Secs. 5 (part), 9 (part).)

Source Law

Sec. 5.  Upon the creation of such Hospital District, the board of directors shall have the power and authority and it shall be its duty to levy on all property subject to hospital district taxation for the benefit of the District … a tax … [of all taxable property] within the Hospital District for the purpose of (1) paying the interest on and creating a sinking fund for bonds which may be issued by the Hospital District for hospital purposes as herein provided; and (2) providing for the operation and maintenance of the Hospital District and hospital system.

…

Sec. 9.  …  upon final approval of the budget the board of directors shall levy such tax as may be required and … .

Revisor's Note

(1)  Section 5, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that "[u]pon the creation of such Hospital District," the board shall impose taxes.  The revised law omits the quoted language as executed.

(2)  Sections 5 and 10, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, require the board to impose taxes at a certain time and in a certain manner.  The revised law omits those provisions because they were repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979, which repealed all "general, local, and special laws" that conflicted with that act.  The 1979 act enacted the Property Tax Code (Title 1, Tax Code), a comprehensive, substantive codification of all property tax law.  Title 1, Tax Code, provides the exclusive procedures for the imposition and collection of property taxes by a taxing unit, including a hospital district.  The omitted law reads:

Sec. 5.  … [the board of directors shall have the power and authority and it shall be its duty to levy on all property subject to hospital district taxation for the benefit of the District] at the same time taxes are levied for county purposes using the county values and the county tax roll, … .

Sec. 10.  District taxes shall be assessed and collected in the same manner as provided by law with relation to county taxes. …

(3)  Section 9, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, requires the board to certify the tax rate to the tax assessor-collector.  The revised law omits that provision because Section 26.05(a), Tax Code, requires the governing body of a taxing unit to adopt a tax rate for the current year and to notify the tax assessor of that rate.  The omitted law reads:

Sec. 9.  …  [the board of directors shall] … certify the tax rate for such year to the county tax assessor and collector.

Revised Law

Sec. 1065.252.  TAX RATE.  The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of all taxable property in the district.  (Acts 59th Leg., R.S., Ch. 465, Sec. 5 (part).)

Source Law

Sec. 5.  … a tax not to exceed seventy-five cents (75¢) on the one hundred dollar valuation of all taxable property within the Hospital District … .

Revised Law

Sec. 1065.253.  TAX ASSESSOR-COLLECTOR.  The tax assessor-collector of Motley County shall assess and collect taxes imposed by the district.  (Acts 59th Leg., R.S., Ch. 465, Sec. 10 (part).)

Source Law

Sec. 10.  …  The tax assessor and/or collector of Motley County shall be charged and required to accomplish the assessment and collection of all taxes levied by and on behalf of the District and … .

Revisor's Note

(1)  Section 10, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that the county tax assessor-collector may charge a fee for the assessment and collection of district taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (2) to Section 1065.251.  Section 6.27(b), Tax Code,  provides for the compensation of a county tax assessor-collector assessing and collecting taxes for another taxing unit.  The omitted law reads:

Sec. 10… .  [The tax assessor and/or collector of Motley County] … shall charge such compensation therefor as may be provided for by contract with the District but not to exceed the amount allowed for assessment and collection of county taxes.  All such fees shall be deposited in the county's general fund and shall be reported as fees of office of the tax assessor-collector… .

(2)  Section 10, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that tax revenue shall be deposited in the district's depository.  The revised law omits the provision because Section 31.10, Tax Code, requires the tax assessor-collector of a taxing unit to deposit taxes collected in the unit's depository.  The omitted law reads:

Sec. 10… .  [The tax assessor and/or collector of Motley County shall be charged and required] … to promptly pay over the same to the District depository, and … .

(3)  Section 10, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that the bond of the county tax assessor-collector is security for the performance of district duties unless the board determines that an additional bond is necessary.  The revised law omits that provision because it duplicates Section 6.29(b), Tax Code, which authorizes a taxing unit for which the county tax assessor-collector collects a tax to require that collector to post an additional bond.  The omitted law reads:

Sec. 10.  …  The bond of the county tax assessor-collector shall stand as security for the proper performance of his duties as assessor-collector of the District, or if in the judgment of the District board of directors it is necessary additional bond payable to the District may be required.

Revisor's Note

(End of Subchapter)

Section 5, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that the district may impose taxes for the entire year in which the district is established.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 5.  …

The board of directors shall have the authority to levy the tax aforesaid for the entire year in which the said Hospital District is established for the purpose of securing funds to initiate the operation of the Hospital District.

Revisor's Note

(End of Chapter)

(1)  Section 1, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that Motley County or a municipality in the county has not acquired or operated any hospital facilities before the district's creation and that the district does not assume any debt or take over any properties on creation.  The revised law omits those provisions as executed.  The omitted law reads:

Sec. 1.  …  It is hereby found and determined that neither Motley County nor any city therein has acquired or operates any hospital facilities and therefore the District if created shall have no indebtedness to assume, nor shall it have any properties to take over under the provisions of the aforementioned constitutional provision.

(2)  Section 19, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that the act is severable.  The revised law omits that provision because it duplicates Section 311.032, Government Code (Code Construction Act), which provides that a provision of a statute is severable from each other provision of the statute that can be given effect.  The omitted law reads:

Sec. 19.  …  If any provision of this Act should be invalid, such fact shall not affect the authorization for the creation of the District or the validity of any other provisions of this Act, and the Legislature hereby declares that it would have created the District and enacted the valid provisions of this Act notwithstanding the invalidity of any other provision or provisions hereof.

(3)  Section 20, Chapter 465, Acts of the 59th Legislature, Regular Session, 1965, provides that public notice of enactment of the statute was provided in a manner that satisfies the requirements of the Texas Constitution.  The revised law omits that section as executed.  The omitted law reads:

Sec. 20.  Proof of publication of the constitutional notice required in the enactment hereof under the provisions of Section 9 of Article IX of the Texas Constitution has been made in the manner and form provided by law pertaining to the enactment of Local and Special Laws and is hereby found and declared to be proper and sufficient to satisfy such requirement.