TLC: Special District Local Laws Code Proposed Chapters

80C2(3) JMM

CHAPTER 1007. BIG BEND REGIONAL HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 1007.001. 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 Big Bend Regional 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. 1007.002. AUTHORITY FOR CREATION. The Big Bend Regional Hospital District is created under Section 9, Article IX, Texas Constitution. (Acts 59th Leg., R.S., Ch. 643, Sec. 1.)

Source Law

Sec. 1. By authority of Section 9, Article IX, Constitution of the State of Texas, this Act authorizes the creation of Presidio County Hospital District of Presidio County, Texas.

Revisor's Note

Section 1, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, refers to the "Presidio County Hospital District of Presidio County, Texas." The revised law substitutes "Big Bend Regional Hospital District" or "district" for the quoted language in this section and throughout this chapter because under Section 2D, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, added by Section 2, Chapter 706, Acts of the 72nd Legislature, Regular Session, 1991, the name of the Presidio County Hospital District was changed to the Big Bend Regional Hospital District when the district expanded to include territory in Brewster County.

Revised Law

Sec. 1007.003. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of:

(1) Presidio County, including all "cut over" or "banco" land on the north side of the Rio Grande; and

(2) Brewster County. (Acts 59th Leg., R.S., Ch. 643, Secs. 2(a), 2A(h) (part).)

Source Law

Sec. 2. (a) Except as provided in Subsection (b) of this section, the boundaries of this District are coterminous with the boundaries of Presidio County, including all "cut over" or "banco" land lying along the north side of the Rio Grande.

[Sec. 2A]

(h) The District is expanded to include the territory within the boundaries of Brewster County and … .

Revisor's Note

(1) Sections 2(b) and 2A(a), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provide that the boundaries of the district may be expanded under Section 2A of that act. The revised law omits these provisions as executed for the reason stated in Revisor's Note (1) at the end of this subchapter. The omitted law reads:

[Sec. 2]

(b) The boundaries of the District may be expanded under Section 2A of this Act.

Sec. 2A. (a) The District may be expanded to include the territory within the boundaries of Brewster County as provided by this section.

(2) Section 2D(a), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, as added by Section 2, Chapter 706, Acts of the 72nd Legislature, Regular Session, 1991, provides for the change of the name of the Presidio County Hospital District to the Big Bend Regional Hospital District. This provision is omitted for the reason stated in the revisor's note to Section 1007.002. Section 2D(b) provides that a reference to the Presidio County Hospital District in that act or in any other law means the Big Bend Regional Hospital District. This provision is omitted because all references in the revised law to the district mean the Big Bend Regional Hospital District and there are no other references in law to the former Presidio County Hospital District. The omitted law reads:

Sec. 2D. (a) If the District is expanded under Section 2A of this Act, the name of the District is changed to the Big Bend Regional Hospital District.

(b) If the name of the District is changed under Subsection (a) of this section, a reference in this Act or in any other law to the Presidio County Hospital District means the Big Bend Regional Hospital District.

Revised Law

Sec. 1007.004. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. The support and maintenance of the district's hospital system and any indebtedness incurred by the district under this chapter may not become a charge against or obligation of this state. (Acts 59th Leg., R.S., Ch. 643, Sec. 18 (part).)

Source Law

Sec. 18. The support and maintenance of the hospital system of the District and any indebtedness incurred by the District under this Act shall never become a charge against nor an obligation of the State of Texas, … .

Revised Law

Sec. 1007.005. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 59th Leg., R.S., Ch. 643, Sec. 18 (part).)

Source Law

Sec. 18. … nor shall any direct appropriation be made by the Legislature of the State of Texas for the construction, maintenance or improvement of any of the facilities of the District.

Revisor's Note

(End of Subchapter)

(1) Sections 2A(b)-(i), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, as added by Section 2, Chapter 706, Acts of the 72nd Legislature, Regular Session, 1991, provide for the expansion of the district to include the territory of Brewster County and for the assumption of the assets and obligations of the Brewster County Hospital District. Because the voters approved the district's expansion at the election, the revised law omits the relevant law as executed. The omitted law reads:

(b) The Board of Directors may order an election on the question of expanding the District and assuming the assets and obligations of the Brewster County Hospital District. The Board shall order an election if:

(1) a separate dissolution and expansion election is ordered by the Board of Directors of the Brewster County Hospital District under Article 8A, Chapter 375, Acts of the 69th Legislature, Regular Session, 1985; or

(2) the Board receives a petition requesting an expansion election signed by 50 registered voters in the District.

(c) If the Board of Directors orders an election under this section, it shall promptly notify the Board of Directors of the Brewster County Hospital District of the election order.

(d) Except as provided by Subsection (f) of this section, the election shall be held in accordance with the applicable provisions of the Election Code.

(e) The Board of Directors may not order another election on the question of expansion before the first anniversary of the date of the most recent election at which voters of either District disapproved the proposition on which they voted.

(f) The election shall be held not less than 45 or more than 60 days after the date on which the election is ordered and shall be held on the same date that the separate election in the Brewster County Hospital District is held. The Board of Directors shall cooperate with the Board of Directors of the Brewster County Hospital District in setting the date of the elections. Section 41.001(a), Election Code, does not apply to an election ordered under this section.

(g) The ballot for the election shall be printed to permit voting for or against the proposition: "The expansion of the Presidio County Hospital District to include the territory within the boundaries of Brewster County and the assumption of the assets and obligations of the Brewster County Hospital District."

(h) [The District is expanded to include the territory within the boundaries of Brewster County and] a temporary Board shall be appointed under Section 2B of this Act if:

(1) a majority of the voters in the District voting in the election held under this section favor the proposition; and

(2) a majority of the voters in the Brewster County Hospital District voting in an election held on the same date under Article 8A, Chapter 375, Acts of the 69th Legislature, Regular Session, 1985, favor the dissolution of the Brewster County Hospital District, addition of the territory within Brewster County to the Presidio County Hospital District, transfer of the existing Brewster County Hospital District's assets and obligations to the Presidio County Hospital District, and assumption of a proportionate share of the outstanding obligations of the Presidio County Hospital District by the territory within the boundaries of Brewster County.

(i) The District is not expanded if a majority of the voters in either District do not favor the proposition on which they voted.

(2) Section 2B, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, as added by Section 2, Chapter 706, Acts of the 72nd Legislature, Regular Session, 1991, provides for the appointment of a temporary board of directors for the district after expansion of the district under Section 2A of the act. The revised law omits this provision as executed. The omitted law reads:

Sec. 2B. (a) If the District is expanded under Section 2A of this Act, the commissioners court of Presidio County shall appoint three persons to serve as temporary Directors and the Board of Directors of the Brewster County Hospital District, as it existed on the date of the dissolution election held under Section 2A of this Act, shall appoint three persons to serve as temporary Directors of the expanded District. The terms of the Directors serving preceding the appointment expire when the temporary Directors qualify for office.

(b) A vacancy on the temporary Board of Directors shall be filled in the same manner as the original appointment.

(1) establish five single-member voting subdistricts from which permanent Directors are elected; and]

(2) serve as the Directors of the District until elected Directors take office.

(3) Section 2E(a), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, as added by Section 2, Chapter 706, Acts of the 72nd Legislature, Regular Session, 1991, describes the powers and duties of the temporary board of directors under Section 2B of the act and the initial board of directors under Section 2C of the act. The revised law omits this provision as executed. The omitted law reads:

Sec. 2E. (a) Following expansion of the District under Section 2A of this Act, [the management and control of the District is vested] in the temporary Board of Directors appointed under Section 2B of this Act and, following their election, [in the Board of Directors elected under Section 2C of this Act.] The temporary or elected Board, as appropriate, shall exercise all the powers and is subject to all the duties of the Board of Directors appointed under Section 7 of this Act.

(4) Sections 4(a), (b), and (e), 5, and 6, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provide procedures for holding an election for the creation of the former Presidio County Hospital District and for the imposition of taxes in the district. Because the creation of the former hospital district and the imposition of the tax were approved by the described election, the revised law omits those provisions as executed. The omitted law reads:

Sec. 4. (a) The District authorized to be created by this Act is created by the approval of a majority of the qualified electors who own taxable property within the District and who have duly rendered that property for taxation and who vote at an election called for this purpose.

(b) Upon receiving the petition of ten per cent of the qualified electors residing in the District, the commissioners court of the county in which this District is located shall order an election for the purpose of creating the District, not less than 20 days nor more than 30 days after the date of the order.

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

Sec. 5. (a) At the time of the election to create the District, the commissioners court shall order an election to determine whether the District may levy taxes within the District. This tax may not exceed seventy-five cents (75¢) on the One Hundred Dollar valuation of all taxable property within the District.

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

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

Sec. 6. (a) The Ballot for the election required in Sections 4 and 5 of this Act must be substantially as follows:

"FOR the creation of Presidio County Hospital District of Presidio County, Texas; providing for the levy of a tax not to exceed seventy-five cents (75¢) on the One Hundred Dollar valuation on all property subject to taxation within the District using Presidio County values and tax rolls.

"AGAINST the creation of Presidio County Hospital District of Presidio County, Texas; providing for the levy of a tax not to exceed seventy-five cents (75¢) on the One Hundred Dollar valuation on all property subject to taxation within the District using Presidio County values and tax rolls."

(b) If a majority of the persons voting at the election vote against the creation of the District and the levy of the tax this does not prevent holding other elections for the same purpose. However, this Act expires on September 1, 1967, if the District has not been created by a majority of those persons voting at an election for that purpose before that date.

[Sections 1007.006-1007.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Revised Law

Sec. 1007.051. BOARD ELECTION; TERM. (a) The board consists of five directors elected from single-member voting subdistricts established by the board.

(b) The board shall revise each single-member subdistrict after each federal decennial census to reflect population changes. At the first election after the subdistricts are revised, a new director shall be elected from each subdistrict. The directors shall draw lots to determine which two directors shall serve two-year terms and which three directors shall serve four-year terms.

(d) An election shall be held on the uniform election date in May of each even-numbered year to elect the appropriate number of directors. (Acts 59th Leg., R.S., Ch. 643, Secs. 2B(c) (part), 2C(c), (g), 7(b) (part).)

Source Law

[Sec. 2B]

[Sec. 2C]

(g) The Board of Directors shall revise each single-member subdistrict after each federal decennial census to reflect population changes. At the first election after the subdistricts are revised, a new Director shall be elected from each subdistrict. The Directors shall draw lots to determine which two Directors shall serve one-year terms and which three Directors shall serve two-year terms.

[Sec. 7]

(b) An election shall be held on the first Saturday in May each year and the appropriate number of directors shall be elected for four-year terms. …

Revisor's Note

(1) Sections 2B(c) and 2C(a), (b), (d), and (e), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, prescribe the establishment of five single-member voting subdistricts, procedures for electing the initial board of directors, and the terms of the initial directors. The revised law omits those provisions as executed. The omitted law reads:

[Sec. 2B]

(1) establish [five single-member voting subdistricts from which permanent Directors are elected]; and … .

Sec. 2C. (a) If the District is expanded under Section 2A of this Act, Directors shall be elected at an election to be held on May 1, 1993.

(b) The temporary Directors may postpone the election date for one year or until a subsequent uniform election date if the temporary Directors determine that there is not sufficient time to draw the subdistricts or to comply with the requirements of law.

(d) At the initial election of Directors following expansion of the District, the candidate receiving the highest number of votes from each single-member subdistrict is the Director for that subdistrict.

(e) The Directors elected at the initial election of Directors following expansion of the District shall draw lots to determine which two Directors shall serve one-year terms and which three Directors shall serve two-year terms.

(2) Section 2C(f), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provides that directors serve staggered two-year terms. The revised law omits those provisions as superseded by Chapter 386, Acts of the 76th Legislature, Regular Session, 1999, which changed the directors' terms from two years to four years. The omitted law reads:

(f) After the initial election of Directors following expansion, an election shall be held each year on the first Saturday in May or on the uniform election date prescribed by the temporary Directors and the appropriate number of successor Directors shall be elected for two-year terms.

(3) Section 2C(g), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, refers to the drawing of lots to establish staggered two-year terms after subdistricts are revised and a new election occurs. Because the district now has four-year terms, the revised law changes the terms for which new members draw lots from one- and two-year terms, to two- and four-year terms.

(4) Section 7(b), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, was amended in 1991 to require board elections 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 1991 amendment to Section 7(b) that the election be held on the first Saturday in May, which was at that time the uniform election date in May.

(5) Section 7(b), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provides that the directors serve until their successors are elected and qualified. The revised law omits this 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. The omitted law reads:

(b) … In every case the Directors shall serve until the Successors have been elected and qualified for the office.

(6) Section 3(a), Chapter 386, Acts of the 76th Legislature, Regular Session, 1999, provides for the staggering of the terms of board members elected in 2000 and 2001 to accomplish the change of the members' terms from two years to four years. Section 3(b), Chapter 386, Acts of the 76th Legislature, Regular Session, 1999, provides that changes in the qualifications for board members apply only to members appointed or elected after 1999. The revised law codifies the establishment of staggered terms but omits these provisions as executed. The omitted law reads:

Sec. 3. (a) The change in law made by this Act to Section 7(b), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, does not apply to the term of a member of the Board of Directors of the Big Bend Regional Hospital District elected in an election held in 2000 or 2001. A director elected in an election held in 2000 shall serve a two-year term, and a director elected in an election held in 2001 shall serve a three-year term. Successor directors shall serve four-year terms.

(b) The changes in law made by this Act to Section 7B, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, do not apply to a member of the Board of Directors of the Big Bend Regional Hospital District serving on the board immediately before September 1, 1999, for the remainder of that member's term. The changes in law apply only to a member appointed or elected on or after September 1, 1999.

Revised Law

Sec. 1007.052. NOTICE OF ELECTION. At least 35 days before the date of an election of directors, notice of the election must be published one time in a newspaper with general circulation in the district. (Acts 59th Leg., R.S., Ch. 643, Sec. 7(c), as added by Acts 72nd Leg., R.S., Ch. 89.)

Source Law

(c) At least 35 days before the date of an election of directors, notice of the election shall be published one time in a newspaper with general circulation in the district.

Revisor's Note

Section 7(c), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, which provides for the publication of notice of election for the board, was added by Chapter 89, Acts of the 72nd Legislature, Regular Session, 1991. This amendment was part of a revision of Section 7, the main purpose of which was to change the board of directors of the former Presidio County Hospital District from an appointed board to an elected board. Section 7 was also amended during the same session by Chapter 706, Acts of the 72nd Legislature, Regular Session, 1991, the main purpose of which was to create the Big Bend Regional Hospital District by expanding the former Presidio County Hospital District to include Brewster County and to provide for elected directors on expansion. Chapter 706 amended Section 7 to change the qualifications for appointment to the board of the former Presidio County Hospital District and provided that Section 7 did not apply if the district was expanded. However, it is clear that the intent of that amendment was to change the qualifications for appointment to the board if the district was not expanded and that the intent of the limitation was to clarify that those provisions would not apply if the district was expanded and the board was subsequently elected. Section 311.025(b), Government Code (Code Construction Act), provides that "if amendments to the same statute are enacted at the same session of the legislature, one amendment without reference to another, the amendments shall be harmonized, if possible, so that effect may be given to each." Since it is clear that the provision limiting the application of Section 7 was intended to apply only to an appointed board, the revised law codifies the provisions of Section 7 that relate to an elected board.

Revised Law

Sec. 1007.053. QUALIFICATIONS FOR OFFICE. (a) A person may not be a candidate for or serve as a director unless the person is:

(1) a resident of the district; and

(2) a qualified voter.

(b) A person is not eligible to serve as a director if the person is:

(1) a district employee;

(2) a party to a contract with the district to perform services for compensation; or

(3) a physician who has staff privileges at a district facility.

(c) A person who is elected from a single-member subdistrict or who is appointed to fill a vacancy for a single-member subdistrict must reside in that subdistrict. (Acts 59th Leg., R.S., Ch. 643, Secs. 2C(h) (part), 7B(a), (c).)

Source Law

[Sec. 2C]

(h) A person who is elected from a single-member subdistrict or who is appointed to fill a vacancy for a single-member subdistrict must be a resident of that subdistrict. …

Sec. 7B. (a) To be eligible to be a candidate for or to serve as a director, a person must be:

(1) a resident of the district; and

(2) a qualified voter.

(1) district employee;

(2) party to a contract with the district to perform services for compensation; or

(3) physician who has staff privileges at a district facility.

Revisor's Note

Sections 7A(c) and 7B(b), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, refer to the election or appointment of directors from commissioner precincts. The revised law omits this provision as impliedly repealed by the enactment of Section 2C, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, as added by Section 2, Chapter 706, Acts of the 72nd Legislature, Regular Session, 1991, which provides for the election of board members in the expanded district from subdistricts. The omitted law reads:

[Sec. 7A]

(c) The application must specify the commissioner precinct the candidate wishes to represent or specify that the candidate wishes to represent the district at large.

[Sec. 7B]

(b) In addition to the qualifications required by Subsection (a) of this section, a person who is elected from a commissioner precinct or who is appointed to fill a vacancy for a commissioner precinct must be a resident of that commissioner precinct.

Revised Law

Sec. 1007.054. BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF OFFICE. (a) Each director shall qualify for office by executing a good and sufficient commercial bond for $1,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the director's duties.

(b) The district shall pay for the directors' bonds.

(c) Each director's bond and constitutional oath or affirmation of office shall be deposited in the district depository for safekeeping. (Acts 59th Leg., R.S., Ch. 643, Sec. 8(a).)

Source Law

Sec. 8. (a) When a person is appointed or elected to the Board of Directors he shall qualify for office by executing the Constitutional Oath of office and a good and sufficient commercial bond for $1,000 payable to the District, conditioned upon the faithful performance of his duties. The oath and bond are to be deposited with the District depository for safekeeping. The cost of the bond is an expense of the District.

Revisor's Note

Section 8(a), Chapter 643, 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. Additionally, the revised law provides for the deposit of the constitutional affirmation as well as the constitutional oath because Section 1, Article XVI, Texas Constitution, permits an officer in this state to take either the oath or the affirmation.

Revised Law

Sec. 1007.055. OFFICERS. The board shall elect from among its members a president, secretary, and treasurer at the first meeting of the board after each directors' election. (Acts 59th Leg., R.S., Ch. 643, Sec. 8(b).)

Source Law

(b) The Directors shall, at the first meeting after the election, elect a president, a secretary, and a treasurer from their number.

Revised Law

Sec. 1007.056. COMPENSATION; EXPENSES. A director serves without compensation but is entitled to reimbursement for necessary expenses incurred in the performance of official duties. (Acts 59th Leg., R.S., Ch. 643, Sec. 8(c).)

Source Law

(c) A member of the Board of Directors is not entitled to compensation for his services. However, each member is entitled to reimbursement for any necessary expense incurred by him in the performance of the duties of his office.

Revised Law

Sec. 1007.057. DISTRICT ADMINISTRATOR. (a) The board may employ a district administrator to manage the operations of the hospital system.

(b) The district administrator may employ necessary personnel to perform the services provided by the system. (Acts 59th Leg., R.S., Ch. 643, Sec. 12(e) (part).)

Source Law

(e) The Board may …

(3) employ an administrator to manage the operations of the hospital system, who may hire necessary personnel to perform the services provided by the system.

Revised Law

Sec. 1007.058. EMPLOYEES. The board may employ an attorney, general manager, bookkeeper, architect, and other employees necessary for the efficient operation of the district. (Acts 59th Leg., R.S., Ch. 643, Sec. 12(e) (part).)

Source Law

(e) The Board may …

(2) employ an attorney, general manager, bookkeeper, architect, and other employees necessary for the efficient operation of the District; …

Revised Law

Sec. 1007.059. RETIREMENT BENEFITS. The board may enter into any contract or agreement with this state or the federal government that is required to establish or continue a retirement program for the benefit of the district's employees. (Acts 59th Leg., R.S., Ch. 643, Sec. 12(h).)

Source Law

(h) The Board may enter into any contract or agreement with the State of Texas or the Federal Government which is required in order to establish or continue a retirement program for the benefit of the District's employees.

Revised Law

Sec. 1007.060. MAINTENANCE OF RECORDS; PUBLIC INSPECTION. The board shall:

(1) maintain all district records, including books, accounts, notices, minutes, and other matters of the district and its operation, at the district office; and

(2) make those records available for public inspection at reasonable times. (Acts 59th Leg., R.S., Ch. 643, Sec. 12(b).)

Source Law

(b) The Board shall keep all books, records, accounts, notices, minutes, and other matters of the District and its operation at the office of the District. The Board shall make these items available for public inspection at reasonable times.

Revisor's Note

(End of Subchapter)

(1) Section 2C(h), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, requires a person to indicate on the application for a place on the ballot the subdistrict that the person seeks to represent. The revised law omits that provision because it duplicates Section 141.031(4), Election Code, which requires a candidate to state on a ballot application the office sought by the candidate, including any place number or other distinguishing number. The omitted law reads:

(h) … A candidate must specify the subdistrict the candidate wishes to represent.

(2) Section 7, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provides for the creation and election of a board of directors for the hospital district. To the extent the section provides for the appointment of the original board of directors, the revised law omits this section as executed. To the extent the section provides for the manner of electing directors and the terms of the directors, the revised law omits this section as impliedly repealed by the enactment of Section 2C, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, as added by Section 2, Chapter 706, Acts of the 72nd Legislature, Regular Session, 1991. The omitted law reads:

Sec. 7. (a) [as amended Acts 72nd Leg., R.S., Ch. 89] The management and control of the District is vested in a Board of Directors which consists of five members. One director shall be elected from each commissioner precinct and one director shall be elected from the district at large. A person who is a member of the commissioners court is not eligible for election to the Board of Directors.

(a) [as amended Acts 72nd Leg., R.S., Ch. 706] The management and control of the District is vested in a Board of Directors which consists of five members. Within 10 days after the creation of the District, the commissioners court of Presidio County shall appoint five persons who are qualified voters in the District. A person who is a member of the commissioners court is not eligible for appointment to the Board of Directors.

(c) [as added Acts 72nd Leg., R.S., Ch. 706] This section does not apply to directors appointed or elected after expansion of the District under Section 2A of this Act.

(3) Sections 7A(a) and (b), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, state 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:

Sec. 7A. (a) A person who wishes to have the person's name printed on the ballot as a candidate for director must file an application with the secretary of the board of directors.

(b) The application must be filed with the secretary not later than the 31st day before the date of the election.

[Sections 1007.061-1007.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Revised Law

Sec. 1007.101. DISTRICT RESPONSIBILITY. The district shall provide all necessary hospital and medical care for the district's needy inhabitants. (Acts 59th Leg., R.S., Ch. 643, Sec. 3 (part).)

Source Law

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

Revised Law

Sec. 1007.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision of this state, other than the district, may not impose a tax or issue bonds or other obligations to provide hospital service or medical care in the district. (Acts 59th Leg., R.S., Ch. 643, Sec. 3 (part).)

Source Law

Sec. 3. … After this District is created as provided in Section 4 of this Act, no other municipality or political subdivision of this State may levy taxes or issue bonds or other obligations of indebtedness for the purpose of providing hospital service or medical care within the District. …

Revisor's Note

(1) Section 3, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provides that "[a]fter this District is created as provided in Section 4 of this Act," 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 3, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, refers to a "municipality or political subdivision." Throughout this chapter, the revised law omits the reference to "municipality" because "municipality" is included in the meaning of "political subdivision."

Revised Law

Sec. 1007.103. MEDICAL SERVICES FOR PRESIDIO COUNTY. (a) The board shall periodically review the feasibility and desirability of operating a hospital in Presidio County.

(b) The district shall operate a facility that provides medical services in Presidio County. At a minimum, the facility must provide outpatient medical services to the district's residents.

(c) The board may contract or otherwise cooperate with another entity to provide the services required by Subsection (b). (Acts 59th Leg., R.S., Ch. 643, Secs. 2E(b) (part), 2F(a) (part), (b).)

Source Law

[Sec. 2E]

(b) … the Board of Directors shall periodically conduct a review of the feasibility and desirability of operating a hospital within the boundaries of Presidio County.

Sec. 2F. (a) … the District shall operate a facility that provides medical services within the boundaries of Presidio County. The facility shall provide, at minimum, outpatient medical services to the residents of the District.

(b) The Board of Directors may contract or otherwise cooperate with another entity to provide the services required under this section.

Revisor's Note

Sections 2E(b) and 2F(a), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, impose certain duties after the expansion of the district. The revised law omits those references to the expansion of the district as executed. The omitted law reads:

[Sec. 2E]

(b) Following expansion of the District under Section 2A of this Act, … .

Sec. 2F. (a) If the District is expanded under Section 2A of this Act, … .

Revised Law

Sec. 1007.104. MANAGEMENT AND CONTROL OF DISTRICT. The management and control of the district is vested in the board, and the board has full power to manage and control the district. (Acts 59th Leg., R.S., Ch. 643, Secs. 2E(a) (part), 12(a) (part).)

Source Law

Sec. 2E. (a) … the management and control of the District is vested … in the Board of Directors elected under Section 2(c) of this Act… .

Sec. 12. (a) The Board of Directors has full power to manage and control the District… .

Revised Law

Sec. 1007.105. HOSPITAL SYSTEM. The district has the responsibility to establish a hospital or hospital system within its boundaries to provide hospital and medical care to the district's residents. (Acts 59th Leg., R.S., Ch. 643, Sec. 3 (part).)

Source Law

Sec. 3. The District authorized to be created by this Act is charged with the responsibility of establishing a hospital or a hospital system within its boundaries to furnish hospital and medical care to the residents of the District… .

Revised Law

Sec. 1007.106. RULES. (a) The board shall adopt rules for the efficient operation of the district, including district facilities.

(b) The board shall:

(1) publish the rules in book form; and

(2) provide copies to interested persons on request at district expense. (Acts 59th Leg., R.S., Ch. 643, Sec. 12(c).)

Source Law

(c) The Board shall adopt rules for the efficient operation of the District and its facilities which are not inconsistent with this Act. The Board shall publish these rules and regulations in book form and furnish copies to interested persons upon request and at the expense of the District.

Revisor's Note

(1) Section 12(c), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provides that the board shall adopt rules that are "not inconsistent with 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.

(2) Section 12(c), Chapter 643, 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.

Revised Law

Sec. 1007.107. PURCHASING AND ACCOUNTING PROCEDURES. The board may prescribe the method of making purchases and expenditures and the manner of accounting and control used by the district. (Acts 59th Leg., R.S., Ch. 643, Sec. 12(e) (part).)

Source Law

(e) The Board may

(1) prescribe the method of making purchases and expenditures and the manner of accounting and control used by the District; …

Revised Law

Sec. 1007.108. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. The board may sell, lease, or otherwise dispose of property, including facilities or equipment, for the district. The sale or other disposal must be at a public sale and at a price and on terms the board determines are most advantageous to the district. (Acts 59th Leg., R.S., Ch. 643, Sec. 12(i).)

Source Law

(i) The Board may sell, lease, or otherwise dispose of property, facilities, or equipment on behalf of the District. Sale or other disposal of the property, facilities, or equipment must be at a public sale and at a price and on the terms the Board determines are most advantageous to the District.

Revised Law

Sec. 1007.109. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in any real, personal, or mixed property located in district territory if the interest is necessary or convenient for the district to exercise a power or duty 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.

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

(2) provide a bond for costs or a supersedeas bond on an appeal or writ of error. (Acts 59th Leg., R.S., Ch. 643, Sec. 15.)

Source Law

Sec. 15. (a) The District has the power of eminent domain for the purpose of acquiring by condemnation any interest, including fee simple absolute, in any real, personal, or mixed property within the boundaries of the District that is necessary or convenient to the exercise of the powers and duties conferred upon it by this Act.

(b) The Board shall exercise this power of eminent domain in the same manner as provided by General Law. However, the District is not required to make deposits in the registry of the trial court or to post bond as required by Paragraph 2, Article 3268, Revised Civil Statutes of Texas, 1925, as amended.

(c) The District is not required to pay in advance or to give any bond or other security for costs in the trial court otherwise required for the issuance relating to a condemnation proceeding, nor is it required to give a bond for costs or for supersedeas on an appeal or writ of error proceeding to a Court of Civil Appeals or to the Supreme Court.

Revisor's Note

(1) Section 15(b), Chapter 643, 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." 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.

(2) Section 15(b), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, refers to "Paragraph 2, Article 3268, Revised Civil Statutes of Texas, 1925, as amended." That statute was codified in 1983 as Section 21.021(a), Property Code. 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.

(3) Section 15(c), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, refers to an "appeal or writ of error proceeding to a 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. 1007.110. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management of the district. (Acts 59th Leg., R.S., Ch. 643, Sec. 12(f).)

Source Law

(f) The Board may accept donations, gifts, and endowments for the District. The Board shall hold all donations, gifts, and endowments in trust and shall administer them under any direction, limitation, or provisions as may be prescribed in writing by the donor, as long as it is not inconsistent with the proper management of the District.

Revisor's Note

Section 12(f), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, refers to "donations" and "gifts." The revised law omits the reference to "donations" because "donations" is included in the meaning of "gifts."

Revised Law

Sec. 1007.111. CONTRACTS WITH POLITICAL SUBDIVISIONS FOR HOSPITAL AND MEDICAL CARE. The board may contract with another political subdivision to provide hospital and medical care for needy persons who reside outside the district. (Acts 59th Leg., R.S., Ch. 643, Sec. 12(g).)

Source Law

(g) The Board may enter any contract with a municipality or other political subdivision to provide hospital and medical care for needy persons who reside outside the District.

Revised Law

Sec. 1007.112. PAYMENT FOR TREATMENT; PROCEDURE. (a) A person who resides in the district is entitled to receive necessary medical and hospital care regardless of whether the person has the ability to pay for the care.

(b) The board by rule shall adopt a procedure for determining:

(1) the ability of a patient to pay for the patient's medical and hospital care; and

(2) the amount each patient is required to pay. (Acts 59th Leg., R.S., Ch. 643, Sec. 14.)

Source Law

Sec. 14. A person who resides within the District is entitled to receive necessary medical and hospital care whether he has the ability to pay for the care or not. The Board shall by rule or regulation adopt a procedure for determining the ability of a patient to pay for his medical and hospital care and for determining the amount each patient shall be required to pay.

Revisor's Note

Section 14, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, refers to a "rule or regulation." The revised law omits "regulation" for the reason stated in Revisor's Note (2) to Section 1007.106.

Revisor's Note

(End of Subchapter)

(1) Section 12(a), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, states that a provision of the act that provides a specific power or duty does not limit the district's general authority to carry out the purposes of the act. The revised law omits this provision because it is a generally accepted principle of statutory interpretation that all of a statute is intended to be given effect and that specific grants of power do not limit more general grants of power. Additionally, Section 311.021(2), Government Code (Code Construction Act), provides that an entire statute is intended to be effective. The omitted law reads:

(a) … Any provision of this Act which provides a specific power or duty does not limit the general authority of the District to carry out the purposes of this Act.

(2) Section 12(j), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provides that the board may donate certain surplus property to another governmental entity or a charitable organization. The revised law omits the provision as superseded by Section 285.901, Health and Safety Code, enacted in 2003. The omitted law reads:

(j) The Board may donate to another governmental entity or to a charitable organization any surplus personal property or equipment if the donation serves a public purpose and is accompanied by adequate consideration.

(3) Section 17, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provides authority for the "State Board of Health, the State Board of Public Welfare, or any other State agency created for a similar purpose" to inspect hospital district facilities and records. The revised law omits Section 17 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. 17. (a) The District is subject to inspection at any time by an authorized representative of the State Board of Health, the State Board of Public Welfare, or any other State agency created for a similar purpose.

(b) The administrator of the hospital shall admit a representative into the facilities of the District and make accessible on demand all District records, reports, books, papers, and accounts.

[Sections 1007.113-1007.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1007.151. BUDGET. The board shall prepare a budget that includes:

(1) proposed expenditures and disbursements;

(2) estimated receipts and collections for the next fiscal year; and

(3) the amount of taxes required to be imposed to meet the proposed budget. (Acts 59th Leg., R.S., Ch. 643, Sec. 13(b).)

Source Law

(b) The Board shall prepare a budget showing

(1) the proposed expenditures and disbursements;

(2) the estimated receipts and collections for the next fiscal year;

(3) the amount of taxes required to be levied and collected during the next fiscal year to meet the proposed budget.

Revisor's Note

Section 13(b), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, refers to taxes "levied and collected." The revised law substitutes "imposed" for the quoted language because "impose" is the term generally used in Title 1, Tax Code, and includes the levying and collection of an ad valorem tax.

Revised Law

Sec. 1007.152. 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 the district not later than the 10th day before the date of the hearing.

(1) appear at the hearing; and

(2) be heard regarding any item in the proposed budget. (Acts 59th Leg., R.S., Ch. 643, Secs. 13(c), (d).)

Source Law

(c) The Board shall hold a public hearing on the proposed budget after publication of notice in a newspaper of general circulation in the District. The notice must be given at least once not less than ten days prior to the hearing.

(d) Any person who owns taxable property within the District and has duly rendered that property for taxation is entitled to appear at the hearing and be heard with reference to any item in the proposed budget.

Revised Law

Sec. 1007.153. FISCAL YEAR. The district's fiscal year is from October 1 to September 30. (Acts 59th Leg., R.S., Ch. 643, Sec. 13(a).)

Source Law

Sec. 13. (a) The fiscal year of the hospital district is from October 1 of each year to September 30 of the following year.

Revised Law

Sec. 1007.154. ANNUAL AUDIT. (a) The board annually shall require an independent audit of the district's books and records.

(b) Not later than December 1 each year, the board shall file a copy of the audit with:

(1) the comptroller; and

(2) the district. (Acts 59th Leg., R.S., Ch. 643, Sec. 12(d).)

Source Law

(d) The Board shall require an annual independent audit of the books and records of the District and shall file a copy of the audit with the Comptroller of Public Accounts and a copy with the District not later than December 1 of each year.

Revisor's Note

Section 12(d), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, refers to "the Comptroller of Public Accounts." The revised law substitutes "comptroller" for the quoted language because Section 403.001, Government Code, defines "comptroller" in any state statute to mean the comptroller of public accounts of the State of Texas.

Revised Law

Sec. 1007.155. DEPOSITORY. (a) The board by resolution shall designate a bank in Brewster or Presidio County as the district's depository. The designated bank serves for two years and until a successor is designated.

(b) All district money shall be deposited in the depository and secured in the manner provided for securing county funds. (Acts 59th Leg., R.S., Ch. 643, Sec. 16.)

Source Law

Sec. 16. Within 30 days after the qualification of the Board of Directors, the Board shall by resolution designate a bank within the county in which the District is located to be the depository of the District. All funds of the District shall be deposited in the depository and shall be secured in the manner now provided for the security of county funds. The depository shall serve for a period of two years and until a successor has been named in accordance with this Section.

Revisor's Note

(1) Section 16, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, requires the board to select a depository "[w]ithin 30 days after the qualification of the Board of Directors." The revised law omits the quoted language as executed.

(2) Section 16, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, requires designation of a bank "within the county in which the District is located." Throughout this chapter, the revised law substitutes "Brewster or Presidio County" for the quoted language because Brewster County and Presidio County are the counties in which the district is located.

[Sections 1007.156-1007.200 reserved for expansion]

SUBCHAPTER E. BONDS

Revised Law

Sec. 1007.201. BONDS. The district may issue bonds to:

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

(2) equip buildings for hospital purposes. (Acts 59th Leg., R.S., Ch. 643, Secs. 10(a) (part), 11(a) (part).)

Source Law

Sec. 10. (a) … the District may issue bonds for the purchase, construction, acquisition, repair, or renovation of buildings and improvements, and for equipping the buildings for hospital purposes. …

Sec. 11. (a) After a majority of those persons voting at the election vote for the levy of a tax, the Board may issue bonds, … .

Revisor's Note

(1) Section 10(a), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, authorized the commissioners court of Presidio County to order a bond election at the election to create the district. The revised law omits that provision because the creation election has been conducted. The omitted law reads:

Sec. 10. (a) At the time of the election to create the District the commissioners court may order an election to determine whether [the District may issue bonds]… . If the commissioners court does not include this election in the order for the election to create the District, … .

(2) Section 11(a), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provides that the board may issue bonds "[a]fter a majority of those persons voting at the election vote for the levy of a tax." The revised law omits the quoted language as executed.

Revised Law

Sec. 1007.202. TAX TO PAY BONDS. The board may issue bonds under Section 1007.201 only if the board imposes 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. (Acts 59th Leg., R.S., Ch. 643, Sec. 11(c).)

Source Law

(c) The Board may not issue any bonds unless a sufficient tax is levied to create an interest and sinking fund to pay the interest and principal as it matures.

Revisor's Note

Section 11(c), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, 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. 1007.203. BOND ELECTION. (a) The board may issue bonds under Section 1007.201 only if the bonds are authorized by a majority of the district voters voting in an election held for that purpose. The total face value of the bonds may not exceed the amount specified in the election order.

(b) The board may order a bond election at any time.

(1) the time of the election;

(2) the location of the polling places;

(3) the form of the ballots;

(4) the presiding judge for each polling place;

(5) the purpose of the bond issuance;

(6) the amount of the proposed bond issuance;

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

(8) the maximum maturity of the bonds.

(d) A substantial copy of the election order shall be published in a newspaper of general circulation in the district once a week for two consecutive weeks before the date of the election. The first notice must be published not later than the 14th day immediately preceding the day of the election.

(e) A copy of the election results must be filed with the county clerk and become a public record. (Acts 59th Leg., R.S., Ch. 643, Secs. 4(c), (d), (e) (part), 10(a) (part), (b), (d), 11(a) (part).)

Source Law

[Sec. 4]

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

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

(e) … A copy of the results are to be filed with the county clerk and become of public record… .

Sec. 10. (a) … [If the commissioners court does not include this election in the order for the election to create the District,] the Board of Directors may order this election at any time.

(b) The order and notice of election and the certification and declaration of the results to the county clerk are governed by Section 4 of this Act. In addition to the provisions of that Section, the order of this election must include:

(1) the purpose for which the bonds are to be issued;

(2) the amount of the proposed bond issue;

(3) the maximum interest rate;

(4) the maximum maturity date of the bonds.

(d) The Board of Directors shall not issue any bonds until a majority of the qualified electors who own taxable property within the District and who have duly rendered that property for taxation, voting in an election for this purpose, vote for the issuance of these bonds.

Sec. 11. (a) … the Board may issue bonds, the total of the face value not to exceed the amount specified in the order of the election.

Revisor's Note

(1) Section 4(e), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provides that the presiding judge of each voting place shall count the votes and certify the results to the commissioners court within 10 days. The revised law omits those requirements as superseded by Sections 67.002, 67.003, and 67.004, Election Code (enacted as Section 1, Chapter 211, Acts of the 69th Legislature, Regular Session, 1985), which require the governing body of a political subdivision that orders an election to canvass the returns and provides the time frame and procedures for the canvass. The omitted law reads:

(e) The presiding judge of each voting place shall supervise the counting of all votes cast and shall certify the results to the commissioners court within 10 days after the election. …

(2) Section 10(d), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, refers to a majority vote of the "qualified electors who own taxable property within the District and who have duly rendered that property for taxation." The revised law omits the reference to "qualified electors" as unnecessary in this context because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "qualified" voters who are residents of the territory covered by the election to vote in an election. The revised law substitutes "voter" for "elector" because the former is the term used in the Election Code. In addition, the revised law omits the reference to voters "who own taxable property within the District and who have duly rendered that property 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.

Revised Law

Sec. 1007.204. MATURITY OF BONDS. District bonds must mature not later than 40 years after the date of issuance. (Acts 59th Leg., R.S., Ch. 643, Sec. 10(c) (part).)

Source Law

Revisor's Note

Section 10(c), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provides that the interest rate for district bonds may not exceed six percent. The revised law omits the provision because it has been superseded by the enactment of the maximum interest rate provision found in Section 1204.006, Government Code. That section reflects the 1981 amendment of Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes, now Chapter 1204, Government Code), by Section 1, Chapter 61, Acts of the 67th Legislature, Regular Session, 1981, and permits a public agency, including a hospital district, to issue public securities at any net effective interest rate of 15 percent or less. Section 1204.006, Government Code, applies to district bonds by application of Section 1204.001, Government Code. The omitted law reads:

Revised Law

Sec. 1007.205. EXECUTION OF BONDS. (a) The board president shall execute the bonds in the district's name.

(b) The board secretary shall countersign the bonds. (Acts 59th Leg., R.S., Ch. 643, Sec. 11(b) (part).)

Source Law

(b) The president of the Board shall execute the bonds in the name of and on behalf of the hospital district. The secretary of the Board of Directors shall countersign the bonds. …

Revisor's Note

Section 11(b), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds are subject to the law governing counties that relates to bond approval by the attorney general and registration of the bonds by the comptroller. Section 11(b) also provides that after approval and registration the bonds are "incontestable for any reason." 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:

(b) … The Attorney General of the State of Texas shall approve the bonds if they meet the same requirements as provided by law for bonds issued by a county. The bonds are to be registered by the Comptroller of Public Accounts of the State of Texas in the same manner as provided by law for the registration of bonds issued by a county. After approval and registration, the bonds are incontestable for any reason.

Revisor's Note

(End of Subchapter)

(1) Section 11(d), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds may be optional for redemption before maturity. The revised law omits this 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:

(d) All bonds issued by the District may be made optional for redemption prior to their maturity date in the discretion of the Board.

(2) Section 11(e), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, authorizes the district to issue refunding bonds for bonds issued by the district. The revised law omits this provision because Chapter 1207, Government Code, provides general authority for an issuer, including a hospital district, to issue refunding securities. Section 11(e) also provides that refunding bonds 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 this provision for the reason stated in the revisor's note to Section 1007.204. The omitted law reads:

(e) The Board may elect to refund and pay off any validly issued and outstanding bonds issued by the District. However, the refund bonds issued must bear interest at the same or a lower rate than the bonds being refunded unless it is shown mathematically that a savings will result in the total interest to be paid.

[Sections 1007.206-1007.250 reserved for expansion]

SUBCHAPTER F. TAXES

Revised Law

Sec. 1007.251. IMPOSITION OF AD VALOREM TAX. (a) The board shall impose a tax on all property in the district subject to district taxation.

(b) The tax may be used only to:

(1) pay the interest on and create a sinking fund for bonds issued under this chapter;

(2) provide for the operation and maintenance of the district and hospital system;

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

(4) acquire sites for additions to the hospital system. (Acts 59th Leg., R.S., Ch. 643, Secs. 9(a) (part), (c).)

Source Law

(a) … the Board of Directors shall levy a tax … on all property subject to taxation within the District.

(1) paying the interest on and creating a sinking fund for bonds issued under the provisions of this Act;

(2) providing for the operation and maintenance of the hospital district and the hospital system;

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

(4) acquiring sites for additions to the hospital system.

Revisor's Note

(1) Section 9(a), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provides that the board shall impose a tax after a vote. The revised law omits this provision as executed. The omitted law reads:

Sec. 9. (a) After a majority of those persons voting at the election vote for the levy of a tax, … .

(2) Section 9(d), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, states that October 1 is the date by which the board shall impose taxes. The revised law omits the quoted language because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979, which repealed all "general, local, and special laws" that conflicted with that act. The 1979 act enacted the Property Tax Code (Title 1, Tax Code), a comprehensive, substantive codification of property tax law. Section 26.05, Tax Code, provides dates the board must comply with in imposing property taxes. The omitted law reads:

(d) On or before October 1 of each year, the Board shall levy the tax and … .

Revised Law

Sec. 1007.252. 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. 643, Sec. 9(a) (part).)

Source Law

(a) … [the Board of Directors shall levy a tax] not to exceed seventy-five cents (75¢) on the One Hundred Dollar valuation on all property subject to taxation within the District.

Revised Law

Sec. 1007.253. TAX ASSESSOR-COLLECTOR. The tax assessor-collector for Brewster or Presidio County shall collect taxes for the district. (Acts 59th Leg., R.S., Ch. 643, Sec. 9(d) (part).)

Source Law

(d) … [the tax assessor and collector of the county in which the District is located] … The tax assessor and collector of that county shall collect the taxes for the District… .

Revisor's Note

(End of Subchapter)

(1) Sections 9(b) and (d), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provide procedures for the imposition of a property tax. The revised law omits these provisions because they were repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979. See Revisor's Note (2) to Section 1007.251. The omitted law reads:

(b) The Board shall use the same valuation used by the commissioners court in taxing the property for county purposes which appears on the county tax rolls.

(d) … [the Board shall] … immediately certify the tax rate to the tax assessor and collector of the county in which the District is located. … The taxes of the District are subject to the same conditions as the taxes of the county.

(2) Section 9(e), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provides that the county tax assessor-collector is entitled to a fee as compensation for services. 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 1007.251. Section 6.27(b), Tax Code, provides for the compensation of a county tax assessor-collector assessing and collecting taxes for another taxing entity. The omitted law reads:

(e) The assessor and collector of taxes is entitled to a fee as compensation for his services of not more than one per cent of the total tax collected, but not to exceed $5,000 in any one fiscal year. The Board shall fix the exact amount of compensation. The tax assessor and collector shall deduct this fee from the payments made to the District of the taxes collected, and deposit that amount in the general fund of the county as a fee of office of the tax assessor and collector.

(3) Section 9(f), Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provides that the district may impose taxes for the entire year in which the district is created. The revised law omits that provision as executed. The omitted law reads:

(f) The Board may levy this tax for the entire year in which the District is established to secure funds necessary to initiate the operation of the hospital district.

Revisor's Note

(End of Chapter)

(1) Section 19, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, provides that proper notice of enactment of the statute was provided in a manner that satisfies the requirements of the Texas Constitution. The revised law omits the provision as executed. The omitted law reads:

Sec. 19. The Legislature has found that proper notice has been given in the District affected by this Act in accordance with the requirement of Section 9, Article IX, Constitution of the State of Texas.

(2) Section 4, Chapter 89, Acts of the 72nd Legislature, Regular Session, 1991, provides for the election of directors to the hospital district on May 2, 1992, following an amendment to Section 7, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965. The revised law omits this provision as superseded by Chapter 706, Acts of the 72nd Legislature, Regular Session, 1991, which provided for the expansion of the district and the election of directors from subdistricts. The omitted law reads:

Sec. 4. (a) The first election under Section 7, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, as amended by this Act, shall be held on May 2, 1992.

(b) At the first election of directors, the candidate receiving the highest number of votes from a commissioner precinct is the director for that precinct, and the candidate receiving the highest number of votes from the district at large is the director for the district at large.

(c) The candidates elected from odd-numbered precincts at the first election serve for a term of one year, and the candidates elected from the even-numbered precincts at that election serve for a term of two years. The candidate elected as the director from the district at large at the first election serves for a term of two years.

(d) The terms of all appointed directors expire when the elected directors take office.

(3) Chapter 375, Acts of the 69th Legislature, Regular Session, 1985, provides for the creation and operation of the Brewster County Hospital District and a mechanism for the dissolution of the district in the event of the expansion of the Presidio County Hospital District. The revised law omits Chapter 375 because the Brewster County Hospital District was dissolved by the expansion of the Presidio County Hospital District and the creation of the Big Bend Regional Hospital District. The omitted law reads:

Sec. 1.01. In this Act:

(1) "District" means the Brewster County Hospital District.

(2) "Board" means the board of directors of the district.

(3) "Director" means a member of the board.

Sec. 1.02. The Brewster County Hospital District may be created and established and, if created, must be maintained, operated, and financed in the manner provided by Article IX, Section 9, of the Texas Constitution and by this Act.

Sec. 1.03. The boundaries of the district are coextensive with the boundaries of Brewster County.

Sec. 2.01. On the effective date of this Act, the Commissioners Court of Brewster County shall appoint five persons to serve as temporary directors of the district.

Sec. 2.02. A vacancy in the office of temporary director shall be filled by appointment made by the Commissioners Court of Brewster County.

Sec. 3.01. The district may be created and a tax may be authorized only if the creation and the tax are approved by a majority of the qualified voters of the territory of the proposed district voting at an election called and held for that purpose.

Sec. 3.02. The temporary directors of the district shall order a creation election to be held.

Sec. 3.03. 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.

Sec. 3.04. The temporary directors shall give notice of the election by publishing a substantial copy of the election order in a newspaper with general circulation in the proposed district once a week for two consecutive weeks. The first publication must appear at least 35 days before the date set for the election.

Sec. 3.05. (a) The election shall be held not less than 35 days nor more than 60 days after the date on which the election is ordered.

(b) A general law requiring elections to be held on uniform or specified election dates does not apply to an election ordered under this article.

Sec. 3.06. The ballot for an election at which the issuance of bonds is not proposed shall be printed to permit voting for or against the proposition: "The creation of the Brewster County Hospital District and the levy of annual taxes for hospital purposes at a rate not to exceed 20 cents on each $100 valuation of all taxable property in the district."

Sec. 3.07. (a) Not later than the 10th day after the date of the election, the temporary directors of the district shall meet and canvass the returns of the election.

(b) If the temporary directors find that the election results are favorable to the proposition to create the district, they shall issue an order declaring the district created.

(c) If the temporary directors find that the election results are not favorable to the proposition to create the district, another creation election may not be held within 12 months after the date of the election at which voters disapproved the proposition.

Sec. 3.08. If the creation of the district is not approved at an election held within 60 months after the effective date of this Act, this Act expires.

Sec. 4.01. (a) The district is governed by a board of five directors.

(b) From the time the creation of the district is approved until the elected directors take office, the temporary directors serve as directors of the district.

Sec. 4.02. Directors shall be elected at an election to be held on the first Saturday in April following the creation of the district.

Sec. 4.03. (a) One director shall be elected from each commissioner precinct and one director shall be elected from the district at large.

(b) At the initial election of directors, the candidate receiving the highest number of votes from a commissioner precinct is director for that precinct, and the candidate receiving the highest number of votes from the district at large is the director for the district at large.

(c) The candidates elected from odd-numbered precincts at the initial election serve for a term of two years, and the candidates elected from the even-numbered precincts at that election serve for a term of one year. The candidate elected as the director from the district at large at the initial election serves for a term of two years.

(d) After the initial election of directors, an election shall be held on the first Saturday in April each year and the appropriate number of successor directors shall be elected for two-year terms.

Sec. 4.04. At least 35 days before the date of an election of directors, notice of the election shall be published one time in a newspaper with general circulation in the district.

Sec. 4.05. (a) A person who wishes to have his name printed on the ballot as a candidate for director must file an application with the secretary of the board of directors not later than the 31st day before the date of the election.

(b) The application must specify the commissioner precinct the candidate wishes to represent or specify that the candidate wishes to represent the district at large.

Sec. 4.06. (a) To be eligible to be a candidate for or to serve as a director, a person must be:

(1) a resident of the district; and

(2) a qualified voter.

Sec. 4.07. (a) Before assuming the duties of the office, each director must execute a bond for $5,000 payable to the district, conditioned on the faithful performance of the person's duties as director.

(b) The bond shall be kept in the permanent records of the district.

Sec. 4.08. A vacancy in the office of director shall be filled for the unexpired term by appointment by the remaining directors.

Sec. 4.09. The board shall elect from among its members a president and a vice-president. The board shall also appoint a secretary. The secretary need not be a director.

Sec. 4.10. (a) Each officer of the board serves for a term of one year.

(b) A vacancy in a board office shall be filled for the unexpired term by the board.

Sec. 4.11. Directors and officers serve without compensation but may be reimbursed for actual expenses incurred in the performance of official duties. Those expenses must be reported in the district's minute book or other district records and must be approved by the board.

Sec. 4.12. A concurrence of a majority of the members of the board voting is necessary in matters relating to the business of the district.

Sec. 4.13. (a) The board may appoint qualified persons as administrator of the district, assistant to the administrator, and attorney for the district.

(b) The administrator, assistant administrator, and attorney serve at the will of the board.

(d) Before assuming his duties, the administrator shall execute a bond payable to the hospital district in the amount of not less than $5,000 as determined by the board, conditioned on the faithful performance of his duties under this Act. The board may pay for the bond with district funds.

Sec. 4.14. The board may appoint to the staff any doctors it considers necessary for the efficient operation of the district and may make temporary appointments as considered necessary.

Sec. 4.15. (a) The district may employ technicians, nurses, fiscal agents, accountants, architects, additional attorneys, and other necessary employees.

(b) The board may delegate to the administrator the authority to employ persons for the district.

Sec. 4.16. The administrator shall supervise the work and activities of the district and shall direct the general affairs of the district, subject to the limitations prescribed by the board.

Sec. 4.17. The board may provide retirement benefits for employees of the district by establishing or administering a retirement program or by electing to participate in the Texas County and District Retirement System or in any other statewide retirement system in which the district is eligible to participate.

Sec. 5.01. (a) On creation of the district, Brewster County shall convey or transfer to the district:

(1) title to land, buildings, improvements, and equipment related to the hospital system owned by Brewster County;

(2) operating funds and reserves for operating expenses and funds that have been budgeted by Brewster County to provide medical care for residents of the district for the remainder of the fiscal year in which the district is established;

(3) taxes levied by Brewster County for hospital purposes for the current year; and

(4) funds established for payment of indebtedness assumed by the district.

(b) On or after creation of the district, Brewster County may not levy taxes or issue bonds or other obligations for hospital purposes or for providing medical care for the residents of the district.

Sec. 5.02. On creation of the district, the district:

(1) assumes full responsibility for operating hospital facilities and for furnishing medical and hospital care for the district's needy inhabitants;

(2) assumes any outstanding indebtedness incurred by Brewster County in providing hospital care for residents of the territory of the district before the district's creation; and

(3) may operate or provide for the operation of a mobile emergency medical service.

Sec. 5.03. The board shall manage, control, and administer the hospital system and the funds and resources of the district.

Sec. 5.04. The board may adopt rules governing the operation of the hospital and hospital system and the duties, functions, and responsibilities of district staff and employees.

Sec. 5.05. (a) The board may prescribe the method of making purchases and expenditures by and for the district.

(b) The board may prescribe accounting and control procedures for the district.

Sec. 5.06. (a) The board shall determine the type, number, and location of buildings required to establish and maintain an adequate hospital system and the type of equipment necessary for hospital care.

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

(d) The board may sell or otherwise dispose of property, facilities, or equipment on behalf of the district.

Sec. 5.07. (a) The board may enter into construction contracts on behalf of the district; however, the board may enter into construction contracts that involve spending more than $10,000 only after competitive bidding as provided by Chapter 770, Acts of the 66th Legislature, Regular Session, 1979 (Article 2368a.3, Vernon's Texas Civil Statutes).

(b) Article 5160, Revised Statutes, as it relates to performance and payment bonds, applies to construction contracts let by the district.

Sec. 5.08. The board may enter into operating or management contracts relating to hospital facilities on behalf of the district.

Sec. 5.09. (a) The district may exercise the power of eminent domain to acquire by condemnation a fee simple or other interest in property located in the territory of the district if the property interest is necessary to the exercise of the rights or authority conferred by this Act.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, but the district is not required to deposit in the trial court money or execute a bond as provided by Section 21.021(a)(2) or (3), Property Code.

(c) In a condemnation proceeding brought by the district, the district is not required to pay in advance or give bond or other security for costs in the trial court, to give bond for the issuance of a temporary restraining order or a temporary injunction, or to give bond for costs or supersedeas on an appeal or writ of error.

Sec. 5.10. In exercising the power of eminent domain, if the board requires relocating, raising, lowering, rerouting, changing the grade, or altering the construction of any railroad, highway, pipeline, or electric transmission, telegraph, or telephone lines, conduits, poles, or facilities, the district must bear the actual cost of relocating, raising, lowering, rerouting, changing the grade, or altering the construction to provide comparable replacement without enhancement of facilities, after deducting the net salvage value derived from the old facility.

Sec. 5.11. (a) If an individual residing in the district is admitted as a patient to a facility of the district, the administrator may have an inquiry made as to the patient's financial circumstances and as to financial circumstances of a relative of the patient who is legally responsible for the patient's support.

(b) On finding that the patient or a relative of the patient legally responsible for the patient's support can pay for all or any part of the care and treatment provided by the district, the administrator shall report that finding to the board, and the board shall issue an order directing the patient or the relative to pay the district a specified sum each week based on the individual's ability to pay.

(c) The administrator may collect money owed to the district from the estate of the patient or from that of a relative who was 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.

(d) To the extent that a patient or a relative of the patient legally responsible for the patient's support cannot pay for care and treatment provided by the district, the district shall supply that care and treatment without charging the patient or the patient's relative.

(e) If there is a dispute relating to an individual's ability to pay or if the administrator has any doubt concerning an individual's ability to pay, the board shall call witnesses, hear and resolve the question, and issue a final order. An appeal from a final order of the board must be made to a district court in the county in which the district is located and the substantial evidence rule applies.

Sec. 5.12. (a) The board shall require reimbursement from a county or a city located outside the boundaries of the district for the district's care and treatment of a sick, diseased, or injured person of that county or city.

(b) The board shall require reimbursement from the sheriff of Brewster County for the district's care and treatment of a person confined in a jail facility of Brewster County who is not a resident of the district.

(c) On behalf of the district, the board may contract with the state or federal government for the state or federal government to reimburse the district for treatment of a sick, diseased, or injured person.

Sec. 5.13. The board may contract with a city, county, special district, or other political subdivision of the state or with a state or federal agency for the district to furnish a mobile emergency medical service or to provide for the investigatory or welfare needs of inhabitants of the district.

Sec. 5.14. On behalf of the district, the board may accept donations, gifts, and endowments to be held in trust for any purpose and under any direction, limitation, or provision prescribed in writing by the donor that is consistent with the proper management of the district.

Sec. 5.15. The board may sue and be sued on behalf of the district.

Sec. 6.01. (a) The district is operated on the basis of a fiscal year established by the board.

(b) The fiscal year may not be changed during a period that revenue bonds of the district are outstanding or more than once in a 24-month period.

Sec. 6.02. Annually, the board shall have an audit made of the financial condition of the district.

Sec. 6.03. The annual audit and other district records shall be open to inspection during regular business hours at the principal office of the district.

Sec. 6.04. (a) The administrator of the district shall prepare a proposed annual budget for the district.

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

(1) the outstanding obligations of the district;

(2) the amount of cash on hand to the credit of each fund of the district;

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

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

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

(6) the estimated amount of revenues and balances available to cover the proposed budget; and

(7) the estimated tax rate that will be required.

Sec. 6.05. (a) The board shall hold a public hearing on the proposed annual budget.

(b) The board shall publish notice of the hearing in a newspaper of general circulation in the district not later than the 10th day before the date of the hearing.

(d) At the conclusion of the hearing, the board shall adopt a budget by acting on the budget proposed by the administrator. The board may make any changes in the proposed budget that in its judgment the interests of the taxpayers demand.

(e) The budget is effective only after adoption by the board.

Sec. 6.06. After adoption, the annual budget may be amended on the board's approval.

Sec. 6.07. Money may not be spent for an expense not included in the annual budget or an amendment to it.

Sec. 6.08. As soon as practicable after the close of the fiscal year, the administrator shall prepare for the board a sworn statement of the amount of money that belongs to the district and an account of the disbursements of that money.

Sec. 6.09. (a) Except as provided by Sections 5.07(a), 7.01, 7.04, and 7.05 of this Act, the district may not incur a debt payable from revenues of the district other than the revenues on hand or to be on hand in the current and immediately following fiscal year of the district.

(b) The board may not invest operating, depreciation, or building reserves in funds or securities other than those specified by Article 836 or 837, Revised Statutes.

Sec. 6.10. (a) The board shall name at least one bank to serve as depository for district funds.

(b) District funds, other than those invested as provided by Section 6.09(b) of this Act and those transmitted to a bank of payment for bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and must remain on deposit. This subsection does not limit the power of the board to place a portion of district's funds on time deposit or to purchase certificates of deposit.

(c) Before the district deposits funds in a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation, the bank must execute a bond or other security in an amount sufficient to secure from loss the district funds that exceed the amount secured by the Federal Deposit Insurance Corporation.

Sec. 7.01. If authorized by an election, the board may issue and sell bonds in the name and on the faith and credit of the hospital 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 service.

Sec. 7.02. (a) At the time the bonds are issued by the district, the board shall levy a tax.

(b) 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.

(c) 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.

Sec. 7.03. (a) The district may not issue general obligation bonds until the bonds are authorized by a majority of the qualified voters of the district.

(b) The board may order a bond election. The order calling the election must state the nature and date of the election, the hours during which the polls will be open, the location of the polling places, the amount of bonds to be authorized, and the maximum maturity of the bonds.

(d) The board shall canvass the returns and declare the results of the election.

Sec. 7.04. (a) The board may issue revenue bonds to:

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

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

(3) acquire and operate a mobile emergency medical 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 8, 10, 11, 12, and 13, Chapter 122, Acts of the 58th Legislature, Regular Session, 1963 (Article 4494r, Vernon's Texas Civil Statutes), for issuance of revenue bonds by county hospital authorities.

Sec. 7.05. (a) Refunding bonds of the district may be issued to refund and pay off an outstanding indebtedness the district has issued or assumed.

(b) The bonds must be issued in the manner provided by Chapter 784, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil Statutes).

(c) The refunding bonds may be sold and the proceeds applied to the payment of outstanding indebtedness or may be exchanged in whole or in part for not less than a similar principal amount of outstanding indebtedness. If the refunding bonds are to be sold and the proceeds applied to the payment of outstanding indebtedness, the refunding bonds must be issued and payments made in the manner provided by Chapter 503, Acts of the 54th Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas Civil Statutes).

Sec. 7.06. District bonds must mature not more than 50 years after the date of their issuance and must bear interest at a rate not to exceed that provided by Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes).

Sec. 7.07. The president of the board shall execute the bonds in the name of the district, and the secretary of the board shall countersign the bonds in the manner provided by Chapter 204, Acts of the 57th Legislature, Regular Session, 1961 (Article 717j-1, Vernon's Texas Civil Statutes).

Sec. 7.08. (a) District bonds are subject to the same requirements with regard to approval by the attorney general and registration by the comptroller of public accounts as the law provides for approval and registration of bonds issued by counties.

(b) On approval by the attorney general and registration by the comptroller of public accounts, the bonds are incontestable for any cause.

Sec. 7.09. District bonds and indebtedness assumed by the district are legal and authorized investments for:

(1) banks;

(2) savings banks;

(3) trust companies;

(4) savings and loan associations;

(5) insurance companies;

(6) fiduciaries;

(7) trustees;

(8) guardians; and

(9) sinking funds of cities, counties, school districts, and other political subdivisions of the state and other public funds of the state and its agencies, including the permanent school fund.

Sec. 7.10. District bonds are eligible to secure deposits of public funds of the state and of cities, counties, school districts, and other political subdivisions of the state. The bonds are lawful and sufficient security for deposits to the extent of their value if accompanied by all unmatured coupons.

Sec. 7.11. Since the district created under this Act is a public entity performing an essential public function, bonds issued by the district, any transaction relating to the bonds, and profits made in the sale of the bonds are free from taxation by the state or by any city, county, special district, or other political subdivision of the state.

Sec. 8.01. (a) The board may annually levy taxes in an amount not to exceed the limit approved by the voters at the election authorizing the levy of taxes.

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

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

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

(d) The district may not levy taxes to pay the principal of or interest on revenue bonds issued under this Act.

Sec. 8.02. (a) The board may levy taxes for the entire year in which the district is created.

(b) The board shall levy taxes on all property in the district subject to hospital district taxation.

Sec. 8.03. In setting the tax rate, the board shall take into consideration the income of the district from sources other than taxation. On determination of the amount of tax required to be levied, the board shall make the levy and certify it to the tax assessor-collector.

Sec. 8.04. (a) The Tax Code governs the appraisal, assessment, and collection of district taxes.

(b) The board shall contract for the assessment and collection of taxes as provided by the Tax Code.

Sec. 8A.01. (a) The district may be dissolved as provided by this section.

(b) The board may order an election on the question of the dissolution of the district, addition of the territory within Brewster County to the Presidio County Hospital District, transfer of the district's assets and obligations to the Presidio County Hospital District, and assumption by the territory within the district of a proportionate share of Presidio County Hospital District's outstanding debts. The board shall order an election if:

(1) the board of directors of the Presidio County Hospital District orders a separate expansion election under Section 2A, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965; or

(2) the board receives a petition requesting a dissolution and expansion election that is signed by at least 50 registered voters in the district.

(c) If the board orders an election under this section, it shall promptly notify the board of directors of the Presidio County Hospital District of the election order.

(d) Except as provided by Section 8A.02 of this article, the election shall be held in accordance with the applicable provisions of the Election Code.

Sec. 8A.02. The election shall be held not less than 45 or more than 60 days after the date on which the election is ordered and shall be held on the same date that the separate election in the Presidio County Hospital District is held. The board shall cooperate with the board of directors of the Presidio County Hospital District in setting the date of the elections. Section 41.001(a), Election Code, does not apply to an election ordered under this section.

Sec. 8A.03. The ballot for the election shall be printed to permit voting for or against the proposition: "The dissolution of the Brewster County Hospital District, addition of the territory within the boundaries of Brewster County to the Presidio County Hospital District, transfer of the existing Brewster County Hospital District's assets and obligations to the Presidio County Hospital District, and assumption by the territory within the boundaries of Brewster County of a proportionate share of Presidio County Hospital District's outstanding obligations."

Sec. 8A.04. (a) The district is dissolved if:

(1) a majority of the voters in the district voting in the election held under this article favor the proposition; and

(2) a majority of the voters in the Presidio County Hospital District voting in an election held on the same date under Section 2A, Chapter 643, Acts of the 59th Legislature, Regular Session, 1965, favor the expansion of the Presidio County Hospital District to include the territory within Brewster County and the assumption of the assets and obligations of the Brewster County Hospital District.

(b) The district is not dissolved and the board shall continue to administer the district if a majority of the voters in either district do not favor the proposition on which they voted.

Sec. 8A.05. If the district is dissolved under this section, the board shall transfer the land, buildings, improvements, and other assets and obligations of the district, including the hospital, to the Presidio County Hospital District.

Sec. 8A.06. The board may not order another election on the question of dissolution before the first anniversary of the date of the most recent election at which voters of either district disapproved the proposition on which they voted.

Sec. 9.01. The state may not become obligated for the support or maintenance of a hospital district created under this Act, nor may the legislature make a direct appropriation for the construction, maintenance, or improvement of a facility of the district.


Home \| Return to Proposed Chapters main page \| Top
This web page is published by the Texas Legislative Council and was last updated November 18, 2006.