80C20(4) YDB

 

CHAPTER 1025.  ELECTRA HOSPITAL DISTRICT

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 1025.001.  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 Electra Hospital District.  (New.)

Revisor's Note

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

Revised Law

Sec. 1025.002.  AUTHORITY FOR OPERATION.  The Electra Hospital District operates and is administered and financed in accordance with Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties provided by this chapter.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 1 (part).)

Source Law

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

Revisor's Note

Section 1, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, authorizes the "creation, establishment, administration, maintenance, operation, and financing" of the district.  The revised law omits "creation" and "establishment" as executed.  The revised law omits "maintenance" because, in this context, the meaning of that term is included in the meaning of "operation."

Revised Law

Sec. 1025.003.  ESSENTIAL PUBLIC FUNCTION.  The district performs an essential public function in carrying out the purposes of this chapter.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 21 (part).)

Source Law

Sec. 21.  In carrying out the purposes of this Act, the district will be performing an essential public function and … .

Revised Law

Sec. 1025.004.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of Justice of the Peace Precinct No. 4 of Wichita County, Texas, as those boundaries existed on June 14, 1973.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 1 (part).)

Source Law

Sec. 1.  … with boundaries coextensive with the boundaries of Justice of the Peace Precinct No. 4 of Wichita County, Texas, … .

Revisor's Note

Section 1, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that the boundaries of the district are coextensive with the boundaries of Justice of the Peace Precinct No. 4.  Under Section 18(a), Article V, Texas Constitution, the commissioners court may set the justice of the peace precinct boundaries.

It is unlikely that the legislature intended for the district boundaries to change when the justice of the peace precinct boundaries change.  A rule of statutory construction that applies here is that the delineation of a political subdivision's boundary by reference to that of another political subdivision refers to the boundary as it existed at the time of the delineation.  See Op. Tex. Att'y Gen. No. DM-186 (1992) (Hamilton County Hospital District boundaries do not change after commissioners precinct boundaries changed).  Changing the district boundaries based on changes in the justice of the peace precinct boundaries would cause some territory to be included in the district and subject to an ad valorem tax for which an election was not held under Section 9, Article IX, Texas Constitution, and cause some territory subject to the tax to be removed from the district, possibly resulting in an unconstitutional impairment of the contract under which district bonds issued were supported by an ad valorem tax imposed on district property.

Had the legislature intended this result, it could have provided in the statute a method by which the changes in district boundaries could have been made to avoid these constitutional issues.  See Op. Tex. Att'y Gen. No. DM-186 (1992).  In addition, this conclusion conforms to the actual practice of the district, which has the same boundaries as provided by the 1973 act.  Accordingly, the revised law defines the district boundaries as of the effective date of the 1973 act that made the boundaries coextensive with the justice of the peace precinct.

Revised Law

Sec. 1025.005.  CORRECTION OF INVALID PROCEDURES.  If a court holds that any procedure under this chapter violates the constitution of this state or of the United States, the district by resolution may provide an alternative procedure that conforms with the constitution.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 23 (part).)

Source Law

Sec. 23.  …  [federal or state constitution] … .  Where any procedure hereunder may be held by any court to be violative of either of such constitutions, the district shall have the power by resolution to provide an alternative procedure conformable with such constitutions… .

Revisor's Note

Section 23, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that the act does not violate the federal or state constitution and requires that action under the act comply with the constitutions.  The revised law omits the reference to the federal constitution because, under the Supremacy Clause of the United States Constitution (Clause 2, Article VI), federal law always takes precedence over a state statute.  The revised law also omits the reference to the Texas Constitution because the state cannot modify constitutional requirements by statute.  The omitted law reads:

Sec. 23.  Nothing in this Act shall be construed to violate any provision of the federal or state constitution, and all acts done under this Act shall be in such manner as will conform thereto, whether expressly provided or not… .

Revised Law

Sec. 1025.006.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION.  The support and maintenance of the district may not become a charge against or obligation of this state.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 20 (part).)

Source Law

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

Revised Law

Sec. 1025.007.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.  The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 20 (part).)

Source Law

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

Revisor's Note

(End of Subchapter)

(1)  Section 2, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, states that the district shall take over and receive title to all property pertaining to the hospitals or hospital system located in the district.  The revised law omits this provision as executed.  The omitted law reads:

Sec. 2.  The district herein authorized to be created shall take over and there shall be transferred to it title to all land, buildings, improvements, and equipment pertaining to the hospitals or hospital system that may be located wholly within the district and owned by Wichita County or any city or town within the district, and thereafter … .

(2)  Sections 3 and 8, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provide procedures for holding an election on the creation of the district and the imposition of an ad valorem tax.  Because the creation of the district and the imposition of the tax were approved at the election, the revised law omits the relevant law as executed.  The omitted law reads:

Sec. 3.  (a)  The district shall not be created, nor shall any tax therein be authorized unless and until the creation and such tax are approved by a majority of the electors of the area of the proposed district voting at an election called for that purpose.  The election may be called by a majority of the temporary directors or shall be called by the temporary directors on presentation of a petition therefor signed by at least 50 electors of the area of the proposed district.  The election shall be held not less than 35 nor more than 60 days from the date the election is ordered.  The order calling the election shall specify the date, place or places of holding the election, the form of ballot, the presiding judge and alternate judge for each voting place, and provide for clerks as in county elections.  Notice of election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in the county once a week for two consecutive weeks, the first publication to appear at least 30 days prior to the date established for the election.  The failure of the election shall not operate to prohibit the calling and holding of subsequent elections for the same purpose; provided no district confirmation election shall be held within 12 months of any preceding election for the same purpose.  If the district is not confirmed at an election held within 60 months from the effective date of this Act, this Act is repealed.

(b)  At the election there shall be submitted to the electors of the area of the proposed district the proposition of whether the hospital district shall be created with authority to levy annual taxes … for the purpose of meeting the requirements of the district's bonds, indebtedness assumed by it, and its maintenance and operating expenses, and a majority of the electors of the area of the proposed district voting at the election in favor of the proposition shall be sufficient for its adoption.

(c)  The form of ballot used at the election on the creation of the district shall be in conformity with Chapter 452, Acts of the 60th Legislature, Regular Session, 1967, so that ballots may be cast "FOR" or "AGAINST" the following proposition: "The creation of Electra Hospital District, providing for the levy of a tax not to exceed 75 cents on each $100 valuation, upon all taxable property situated within the hospital district, subject to hospital district taxation, and providing for the assumption by the district of all outstanding bonds and indebtedness heretofore issued for hospital purposes by Electra Hospital District and any city or town therein."

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

Sec. 8.  A petition for an election to create the hospital district, as provided in Section 3, may incorporate a request that a separate proposition be submitted at such election as to whether the board of directors of the district, in the event same is created, shall be authorized to issue bonds for the purposes specified in Section 7.  Such petition shall specify the maximum amount of bonds to be issued, their maximum maturity, and the same shall be included in the proposition submitted at the election.  The temporary board, on its own motion, may submit a proposition on whether bonds will be issued for the purposes specified in Section 7 irrespective of whether a petition so requests and irrespective of whether a petition is presented.

[Sections 1025.008-1025.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1025.051.  BOARD ELECTION; TERM.  (a)  The board consists of seven directors elected from the district at large.

(b)  Directors serve staggered two-year terms unless four-year terms are established under Section 285.081, Health and Safety Code.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 4(c) (part).)

Source Law

(c)  … permanent directors of the district, shall execute the constitutional oath of office as such, and shall divide themselves into two classes: Class One, three persons, to serve until the first Saturday in April next following; Class Two, four persons to serve until the first Saturday in April of the following year.  Successors shall be elected by vote of the electors of the entire district for two-year terms. …

Revisor's Note

(1)  Section 4(c), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, requires each director to take the constitutional oath of office.  The revised law omits that provision because Section 1, Article XVI, Texas Constitution, requires all officers to take the oath (or affirmation) before assuming office.

(2)  Section 4, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, prescribes the procedures for the appointment of temporary directors and for electing the initial board of directors ("Class One" and "Class Two").  The revised law omits those provisions as executed but codifies the establishment of a board consisting of seven directors elected from the district at large.  Section 4 also establishes staggered two-year terms for the initial elected directors that expire on the first Saturday in April in the first or second year after the election ("Class One" and "Class Two").  The revised law codifies the provision specifying staggered terms but omits the provision relating to the date on which the initial terms expire as executed.

(3)  Sections 4(a), (b), and (c), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, prescribe the procedure for the appointment and the terms of service of the temporary directors on the effective date of the act.  Throughout this chapter, the revised law omits references to "temporary" directors as executed.  The omitted law reads:

Sec. 4.  (a)  On the effective date of this Act, the Commissioners Court of Wichita County shall appoint seven persons to serve as temporary directors.  Each temporary director shall subscribe the constitutional oath of office within 90 days of the effective date of this Act.

(b)  Temporary directors shall serve for a period of two years or until the creation of the district is confirmed at an election, whichever date shall first occur.  Any vacancy in the office of temporary director, whether by reason of failure to qualify or the occurring of a vacancy prior to the confirmation of the district at the election provided, shall be filled by appointment made by the county judge of Wichita County.

(c)  At such time as the creation of the district is approved and the returns of the election officially canvassed, the persons then serving as temporary directors shall become … .

(4)  Section 4(c), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that directors serve two-year terms. Section 285.081, Health and Safety Code, applicable to this hospital district, provides a mechanism by which the governing board of a hospital district, on its own motion, may order that the members are to be elected in even-numbered years to serve staggered four-year terms.  The revised law is drafted accordingly and adds a reference to Section 285.081, Health and Safety Code, for the convenience of the reader.

Revised Law

Sec. 1025.052.  NOTICE OF ELECTION.  At least 30 days before the date of an election of directors, notice of the election shall be published one time in a newspaper or newspapers that individually or collectively have general circulation in the district. (Acts 63rd Leg., R.S., Ch. 513, Sec. 4(c) (part).)

Source Law

(c)  … Notice of each election shall be published in a newspaper or newspapers which individually or collectively provide general circulation in the district one time at least 30 days prior to the date of the election.

Revised Law

Sec. 1025.053.  BALLOT PETITION.  A person who wants to have the person's name printed on the ballot as a candidate for director must file with the board secretary a petition requesting that action.  The petition must be:

(1)  signed by at least 10 voters; and

(2)  filed at least 30 days before the date of the election. (Acts 63rd Leg., R.S., Ch. 513, Sec. 4(c) (part).)

Source Law

(c)  … Any person desiring to have his name printed on the ballot as a candidate for director shall file a petition signed by at least 10 electors asking that such name be printed on the ballot with the secretary of the board of directors.  The petition shall be filed with the secretary at least 30 days prior to the date of the election.

Revisor's Note

Section 4(c), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, refers to a petition signed by 10 "electors."  Throughout this chapter, the revised law substitutes "voters" for "electors" because the former is the term used in the Election Code.

Revised Law

Sec. 1025.054.  QUALIFICATIONS FOR OFFICE.  (a)  A person may not be elected or appointed as a director unless the person is:

(1)  a resident of the district;

(2)  a qualified voter; and

(3)  a freeholder.

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

(1)  the district administrator; or

(2)  a district employee.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 4(d).)

Source Law

(d)  No person shall be appointed or elected as a member of the temporary or permanent board of directors unless he is a resident of the district, a freeholder, and a qualified voter.  Neither the administrator, nor any other employee of the district, shall be eligible to serve as a director.

Revised Law

Sec. 1025.055.  BOARD VACANCY.  If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term. (Acts 63rd Leg., R.S., Ch. 513, Sec. 4(c) (part).)

Source Law

(c)  … Vacancies in office shall be filled for the unexpired term by the remainder of the board of directors.

Revised Law

Sec. 1025.056.  OFFICERS.  (a)  The board shall elect:

(1)  a president and a vice president from among its members; and

(2)  a secretary, who need not be a director.

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

(c)  The board shall fill a vacancy in a board office for the unexpired term.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 4(e) (part).)

Source Law

(e)  The board of directors, temporary and permanent, shall organize by electing one of their number as president and one of their number as vice-president.  A secretary, who need not be a director, shall also be elected.  Officers shall be elected for a term of one year and vacancies shall be filled for the unexpired term by the board of directors, temporary or permanent. …

Revised Law

Sec. 1025.057.  COMPENSATION; EXPENSES.  A director or officer serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties.  The expenses must be:

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

(2)  approved by the board.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 4(e) (part).)

Source Law

(e)  … All members of the board of directors and officers shall serve without compensation, but may be reimbursed for actual expenses incurred in the performance of their official duties on the approval of such expenses by the board of directors and so reported in the minute book of the district or other records of the district.

Revisor's Note

Section 4(e), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, requires that approved expenses be reported in the "minute book of the district or other records of the district."  The revised law omits the reference to the "minute book of the district" because the minute book is a district record.

Revised Law

Sec. 1025.058.  QUORUM.  Any five directors constitute a quorum.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 4(e) (part).)

Source Law

(e)  … Any five members of the board of directors shall constitute a quorum and … .

Revised Law

Sec. 1025.059.  VOTING REQUIREMENT.  A concurrence of five directors is sufficient in any matter relating to district business. (Acts 63rd Leg., R.S., Ch. 513, Sec. 4(e) (part).)

Source Law

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

Revised Law

Sec. 1025.060.  DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR.  (a)  The board shall appoint a qualified person as district administrator.

(b)  The board may appoint an assistant administrator.

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

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

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

(2)  contains other conditions the board may require.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 5 (part).)

Source Law

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

Revisor's Note

Section 5, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that the board shall appoint a person as the "administrator or manager" of the district and may appoint an "assistant administrator or manager."  Throughout this chapter, the revised law omits "manager" because, in context, "manager" is included in the meaning of "administrator" and "administrator" is the term used by the district.

Revised Law

Sec. 1025.061.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.  Subject to the limitations prescribed by the board, the district administrator shall:

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

(2)  direct the affairs of the district.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 5 (part).)

Source Law

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

Revised Law

Sec. 1025.062.  APPOINTMENT OF STAFF AND EMPLOYEES.  (a)  The board may appoint to the staff any doctors the board considers necessary for the efficient operation of the district and may make temporary appointments as necessary.

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

(c)  The board may delegate to the district administrator the authority to hire district employees, including technicians and nurses.  (Acts 63rd Leg., R.S., Ch. 513, Secs. 5 (part), 16.)

Source Law

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

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

[Sections 1025.063-1025.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1025.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for operating all hospital facilities for providing medical and hospital care for the district's needy inhabitants.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 19 (part).)

Source Law

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

Revisor's Note

Section 19, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that the district "shall assume" full responsibility for operating hospital facilities for providing medical and hospital care for the district's needy inhabitants.  The revised law substitutes "has" for the quoted language because the duty to assume the responsibility is executed.

Revised Law

Sec. 1025.102.  RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT.  A political subdivision located wholly or partly within the district may not impose a tax on district residents or issue bonds or other obligations for hospital purposes or to provide medical care for district residents.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 19 (part).)

Source Law

Sec. 19.  After creation of the hospital district, no county, municipality, or political subdivision wholly or partly within the boundaries of the district shall have the power to levy taxes on the residents of the district or issue bonds or other obligations for hospital purposes or for providing medical care for the residents of the district. …

Revisor's Note

(1)  Section 19, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that "[a]fter creation of the hospital district," certain political subdivisions may not levy taxes or issue bonds.  The revised law omits the quoted language as executed.  In addition, throughout this chapter, the revised law substitutes "impose" for "levy" because, in this context, the terms are synonymous and the former is more commonly used.

(2)  Section 19, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, refers to a "county, municipality, or political subdivision."  The revised law omits the references to "municipality" and "county" because "municipality" and "county" are included in the meaning of "political subdivision."

Revised Law

Sec. 1025.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  The board shall manage, control, and administer the hospital system and the district's money and resources.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 5 (part).)

Source Law

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

Revised Law

Sec. 1025.104.  HOSPITAL SYSTEM.  (a)  The district shall provide for the establishment of a hospital system by:

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

(2)  equipping the buildings; and

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

(b)  The hospital system may include:

(1)  domiciliary care and treatment of the sick, injured, or geriatric;

(2)  outpatient clinics;

(3)  dispensaries;

(4)  convalescent home facilities;

(5)  necessary nurses;

(6)  domiciliaries and training centers;

(7)  blood banks;

(8)  community mental health centers;

(9)  research centers or laboratories; and

(10)  any other facilities the board considers necessary for hospital care.  (Acts 63rd Leg., R.S., Ch. 513, Secs. 2 (part), 10(a) (part).)

Source Law

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

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

Revisor's Note

Section 10, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, refers to the care and treatment of the "sick, wounded, and injured."  The revised law omits the reference to "wounded" because the meaning of "wounded" is included in the meaning of "injured."

Revised Law

Sec. 1025.105.  RULES.  The board may adopt rules governing the operation of the hospital, the hospital system, and the district's staff and employees.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 5 (part).)

Source Law

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

Revisor's Note

Section 5, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that the board may "promulgate rules and regulations" to govern the district.  The revised law substitutes "adopt" for "promulgate" because the terms are synonymous and the former is more commonly used.  The revised law omits "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

Revised Law

Sec. 1025.106.  PURCHASING AND ACCOUNTING PROCEDURES.  The board may prescribe:

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

(2)  all accounting and control procedures.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 10(b) (part).)

Source Law

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

Revised Law

Sec. 1025.107.  DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.  (a)  The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system.

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

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

(d)  The district may sell or otherwise dispose of any property, including equipment, on terms the board finds are in the best interest of the district's inhabitants.  (Acts 63rd Leg., R.S., Ch. 513, Secs. 10(a) (part), (b) (part).)

Source Law

Sec. 10.  (a)  The board of directors is hereby given complete discretion as to the type of buildings, both as to number and location, required to establish and maintain an adequate hospital system.  …  The district, through its board of directors, … may lease all or part of its buildings and facilities on terms and conditions considered to be to the best interest of its inhabitants, provided that in no event shall any lease be for a period in excess of 25 years from the date entered.  The district shall be empowered to sell or otherwise dispose of any property, real or personal, or equipment of any nature on terms and conditions found by the board to be in the best interest of its inhabitants.

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

Revisor's Note

(1)  Section 10(a), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, requires the board to determine the buildings required to "establish and maintain" an adequate hospital system.  The revised law omits the reference to establishing the hospital system as executed.

(2)  Section 10(a), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, refers to "terms and conditions."  The revised law omits the reference to "conditions" because "conditions" is included in the meaning of "terms."

(3)  Section 10(a), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, refers to "any property, real or personal."  The revised law omits the reference to "real or personal" property because under Section 311.005, Government Code (Code Construction Act), "property" means "real and personal property."

Revised Law

Sec. 1025.108.  EMINENT DOMAIN.  (a)  The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property located in district territory if the interest is necessary or convenient for the district to exercise a power, right, or privilege conferred by this chapter.

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

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

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

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

(3)  provide a bond for costs or a supersedeas bond on an appeal or writ of error.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 14.)

Source Law

Sec. 14.  The district shall have the right and power of eminent domain for the purpose of acquiring by condemnation any and all property of any kind and character in fee simple, or any lesser interest therein, within the boundaries of the district necessary or convenient to the powers, rights, and privileges conferred by this Act, in the manner provided by the general law with respect to condemnation by counties, provided that the district shall not be required to make deposits in the registry of the trial court of the sum required by Paragraph 2 of Article 3268, Revised Civil Statutes of Texas, 1925, as amended, or to make bond as therein provided.  In condemnation proceedings being prosecuted by the district, the district shall not be required to pay in advance or give bond or other security for costs in the trial court, nor to give any bond otherwise required for the issuance of a temporary restraining order or a temporary injunction nor to give bond for costs or for supersedeas on any appeal or writ of error.

Revisor's Note

(1)  Section 14, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that the district has the "right and power of eminent domain for the purpose of acquiring [property] by condemnation."  The revised law substitutes for the quoted language "may exercise the power of eminent domain to acquire [property]" because the phrases have the same meaning, and the latter phrase is consistent with modern usage in laws relating to eminent domain.

(2)  Section 14, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that the district must exercise the power of eminent domain in the manner provided by "the general law with respect to condemnation by counties."  The revised law substitutes for the quoted language a reference to Chapter 21, Property Code, because that is the general law governing eminent domain for governmental entities, including counties.

(3)  Section 14, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, refers to "Paragraph 2 of Article 3268, Revised Civil Statutes of Texas, 1925, as amended."  That statute was codified in 1983 as Section 21.021(a), Property Code, and the revised law is drafted accordingly.  In addition, throughout this chapter, the revised law omits the references to "as amended" because under Section 311.027, Government Code (Code Construction Act), a reference to a statute applies to all reenactments, revisions, or amendments of that statute unless expressly provided otherwise.

Revised Law

Sec. 1025.109.  GIFTS AND ENDOWMENTS.  The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 18.)

Source Law

Sec. 18.  The board of directors of the hospital district is authorized on behalf of the district to accept donations, gifts, and endowments to be held in trust and administered by the board of directors for such purposes and under such directions, limitations, and provisions as may be prescribed in writing by the donor not inconsistent with proper management and object of the hospital district.

Revisor's Note

Section 18, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, refers to "donations" and "gifts."  The revised law omits the reference to "donations" because "donations" is included in the meaning of "gifts."

Revised Law

Sec. 1025.110.  CONSTRUCTION CONTRACTS.  A construction contract that involves the expenditure of more than $10,000 may be made only after advertising in the manner provided by Chapter 252 and Subchapter C, Chapter 262, Local Government Code.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 10(b) (part).)

Source Law

(b)  … All contracts for construction involving the expenditure of more than $10,000 may be made only after advertising in the manner provided by Chapter 163, Acts of the 42nd Legislature, Regular Session, 1931, as amended (Article 2368a, Vernon's Texas Civil Statutes).  …

Revisor's Note

(1)  Section 10(b), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, permits construction contracts involving more than $10,000 only after advertising in the manner provided by "Chapter 163, Acts of the 42nd Legislature, Regular Session, 1931, as amended (Article 2368a, Vernon's Texas Civil Statutes)."  Article 2368a was amended by Chapter 641, Acts of the 69th Legislature, Regular Session, 1985, which transferred provisions relating to advertising for bids by counties to the County Purchasing Act (V.A.C.S. Article 2368a.5).  The County Purchasing Act was codified in 1987 as Subchapter C, Chapter 262, Local Government Code.  The provisions of Article 2368a relating to advertising for bids by municipalities were codified in 1987 as Chapter 252, Local Government Code.  The revised law is drafted accordingly.

(2)  Section 10(b), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that the provisions of Article 5160, Revised Civil Statutes of Texas, 1925, apply to the district's construction contracts in relation to performance and payment bonds.  The revised law omits this reference because Article 5160 was codified as Chapter 2253, Government Code, and that chapter applies to hospital districts on its own terms.  The omitted law reads:

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

Revised Law

Sec. 1025.111.  OPERATING AND MANAGEMENT CONTRACTS.  The board may enter into an operating or management contract relating to a district facility.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 10(a) (part).)

Source Law

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

Revised Law

Sec. 1025.112.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT.  (a)  The board may contract with a county or municipality located outside the district's boundaries for the care and treatment of a sick or injured person of that county or municipality.

(b)  The board may contract with this state or a federal agency for the treatment of a sick or injured person.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 5 (part).)

Source Law

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

Revisor's Note

(1)  Section 5, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, refers to an "incorporated" municipality.  The revised law omits the reference to "incorporated" because under the Local Government Code all municipalities must be incorporated.

(2)  Section 5, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, refers to the treatment of a "sick, diseased, or injured person."  The revised law omits the reference to "diseased" because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1025.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR INVESTIGATORY OR OTHER SERVICES.  The board may contract with a political subdivision or governmental agency for the district to provide investigatory or other services for the medical, hospital, or welfare needs of district inhabitants.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 5 (part).)

Source Law

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

Revised Law

Sec. 1025.114.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient who resides in the district is admitted to a district facility, the district administrator may have an inquiry made into the circumstances of:

(1)  the patient; and

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

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

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

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

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

(1)  resolve the dispute or doubt; and

(2)  issue any appropriate orders.

(f)  A final order of the board may be appealed to the district court.  The substantial evidence rule applies to the appeal.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 17.)

Source Law

Sec. 17.  Whenever a patient residing within the district has been admitted to the facilities thereof, the administrator or manager may cause inquiry to be made as to his circumstances and those of the relatives of the patient legally liable for his support.  If he finds that the patient or his relatives are able to pay for his care and treatment in whole or in part, an order shall be made directing the patient or his relatives to pay to the hospital district for the care and support of such patient a specified sum per week in proportion to their financial ability.  The administrator or manager shall have the power and authority to collect such sums from the estate of the patient or his relatives legally liable for his support in the manner provided by law for collection of expenses in the last illness of a deceased person.  If the administrator or manager finds that the patient or his relatives are not able to pay either in whole or in part for his care and treatment in the hospital, same shall become a charge on the hospital district as to the amount of the inability to pay.  Should there be any dispute as to the ability to pay or doubt in the mind of the administrator or manager, the board of directors shall hear and determine same after calling witnesses, and shall make such order or orders as may be proper.  Appeals from a final order of the board shall lie to the district court.  The substantial evidence rule shall apply.

Revised Law

Sec. 1025.115.  AUTHORITY TO SUE AND BE SUED.  The district, through the board, may sue and be sued.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 5 (part).)

Source Law

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

[Sections 1025.116-1025.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1025.151.  BUDGET.  (a)  The district administrator shall prepare an annual budget for approval by the board.

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

(1)  the outstanding obligations of the district;

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

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

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

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

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

(7)  the estimated tax rate required.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 6 (part).)

Source Law

Sec. 6.  … The administrator or manager shall prepare an annual budget for approval by the board of directors.  The budget shall also contain a complete financial statement of the district showing all outstanding obligations of the district, the cash on hand to the credit of each and every fund of the district, the funds received from all sources during the previous year, the funds available from all sources during the ensuing year, with balances expected at year end of the year in which the budget is being prepared, and estimated revenues and balances available to cover the proposed budget and the estimated tax rate which will be required. …

Revised Law

Sec. 1025.152.  NOTICE; HEARING; ADOPTION OF BUDGET.  (a)  The board shall hold a public hearing on the proposed annual budget.

(b)  Notice of the hearing must be published one time at least 10 days before the date of the hearing.

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

(d)  At the conclusion of the hearing, the board shall adopt a budget by acting on the budget proposed by the district administrator.  The board may make any changes in the proposed budget that the board judges to be in the interests of the taxpayers and that the law warrants.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 6 (part).)

Source Law

Sec. 6.  … A public hearing on the annual budget shall be held by the board of directors after notice of such hearing has been published one time at least 10 days before the date set therefor.  Any person residing in the district shall have the right to be present and participate in the hearing.  At the conclusion of the hearing, the budget, as proposed by the administrator, shall be acted on by the board of directors.  The board of directors shall have authority to make such changes in the budget as in their judgment the law warrants and the interest of the taxpayers demands. … the annual budget, and … shall be approved by the board of directors. …

Revised Law

Sec. 1025.153.  AMENDMENTS TO BUDGET.  The budget may be amended as required by circumstances.  The board must approve all amendments.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 6 (part).)

Source Law

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

Revisor's Note

Section 6, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, states that the board may amend the budget "from time to time."  Throughout this chapter, the revised law omits the quoted language because the authority to take an action implies the authority to do so at any time.

Revised Law

Sec. 1025.154.  RESTRICTION ON EXPENDITURES.  Money may be spent only for an expense included in the budget or an amendment to the budget.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 6 (part).)

Source Law

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

Revised Law

Sec. 1025.155.  FISCAL YEAR.  (a)  The district operates according to a fiscal year established by the board.

(b)  The fiscal year may not be changed:

(1)  during a period that revenue bonds of the district are outstanding; or

(2)  more than once in a 24-month period.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 6 (part).)

Source Law

Sec. 6.  The district shall be operated on the basis of a fiscal year as established from time to time by the board of directors, provided such fiscal year may not be changed during the time revenue bonds of the district are outstanding or more than once in any 24-month period. …

Revised Law

Sec. 1025.156.  AUDIT.  The board shall have an audit made of the district's financial condition.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 6 (part).)

Source Law

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

Revised Law

Sec. 1025.157.  INSPECTION OF AUDIT AND DISTRICT RECORDS.  The audit and other district records shall be open to inspection at the district's principal office.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 6 (part).)

Source Law

Sec. 6.  … [The board shall cause] an audit [to be made of the financial condition of the district,] which together with other records of the district shall be open to inspection at the principal office of the district. …

Revised Law

Sec. 1025.158.  FINANCIAL REPORT.  As soon as practicable after the close of each fiscal year, the district administrator shall prepare for the board:

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

(2)  a complete account of the disbursements of that money.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 6 (part).)

Source Law

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

Revised Law

Sec. 1025.159.  DEPOSITORY.  (a)  The board shall select one or more banks in the district to serve as a depository for district money.

(b)  District money, other than money invested as provided by Section 1025.160, and money transmitted to a bank for payment of bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and shall remain on deposit.

(c)  This chapter, including Subsection (b), does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit.

(d)  The district may not deposit money with a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation unless the bank first executes a bond or other security in an amount sufficient to secure from loss the district money that exceeds the amount secured by the Federal Deposit Insurance Corporation.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 11.)

Source Law

Sec. 11.  (a)  The board of directors of the district shall name one or more banks within its boundaries to serve as depository for the funds of the district.  All funds of the district, except those invested as provided in Section 5, and those transmitted to a bank or banks of payment for bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and shall remain on deposit, provided that nothing herein shall limit the power of the board to place a portion of such funds on time deposit or purchase certificates of deposit.

(b)  Before the district deposits in any bank funds of the district in an amount which exceeds the maximum amount secured by the Federal Deposit Insurance Corporation, the bank shall be required to execute a bond or other security in an amount sufficient to secure from loss the district funds which exceed the amount secured by the Federal Deposit Insurance Corporation.

Revised Law

Sec. 1025.160.  SPENDING AND INVESTMENT RESTRICTIONS.  (a)  Except as otherwise provided by Section 1025.107(c) and by Subchapter E, the district may not incur an obligation payable from district revenue other than the revenue on hand or to be on hand in the current and following district fiscal years.

(b)  The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code.  (Acts 63rd Leg., R.S., Ch. 513, Secs. 5 (part), 10(b) (part).)

Source Law

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

[Sec. 10]

(b)  …  Except as permitted in the preceding sentence and as permitted by Sections 7, 8, and 9, the district may incur no obligation payable from any revenues of the district, tax or otherwise, except those on hand or to be on hand within the then current and following fiscal year of the district.

Revisor's Note

(1)  Section 5, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, refers to "Article 836 or 837, Revised Civil Statutes of Texas, 1925, as amended."  Those articles were impliedly repealed by the enactment of the Public Funds Investment Act of 1987 (Article 842a-2, Vernon's Texas Civil Statutes), which was revised in 1993 as Chapter 2256, Government Code.  Chapter 2256 defines "local government" to include hospital districts and applies to the district by its own terms.  The revised law therefore substitutes a reference to Chapter 2256, Government Code, for the references to Articles 836 and 837.

(2)  Section 10(b), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, states that "[e]xcept as permitted in the preceding sentence and as permitted by Sections 7, 8, and 9," the district may not incur certain obligations.  The "preceding sentence" in Section 10(b) is codified in Section 1025.107(c).  As explained in Revisor's Note (2) at the end of Subchapter A, Section 8 is omitted from the revised law as executed.  Sections 7 and 9 are codified in Subchapter E.  The revised law is drafted accordingly.

[Sections 1025.161-1025.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Revised Law

Sec. 1025.201.  GENERAL OBLIGATION BONDS.  The board may issue and sell general obligation bonds in the name and on the faith and credit of the district for any purpose relating to:

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

(2)  equipping buildings or improvements for hospital purposes.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 7(a) (part).)

Source Law

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

Revisor's Note

Section 7(a), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that the board has the power and authority to issue and sell bonds in the name and on the faith and credit of the district.  Because the type of bonds described by Section 7(a) are known as "general obligation bonds," the revised law is drafted accordingly.

Revised Law

Sec. 1025.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  At the time general obligation bonds are issued by the district under Section 1025.201, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature.

(b)  The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed 75 cents on each $100 valuation of all taxable property in the district.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 7(a) (part).)

Source Law

(a)  … At the time of the issuance of any bonds by the district a tax shall be levied by the board sufficient to create an interest and sinking fund to pay the interest on and principal of said bonds as same mature, providing the tax together with any other taxes levied for the district shall not exceed 75 cents on each $100 valuation of all taxable property situated in the district subject to hospital district taxation in any one year. …

Revisor's Note

Section 7(a), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, requires the district to levy a tax to pay the principal of and interest on bonds.  The revised law specifies that the tax is an "ad valorem" tax because it is clear from the source law that the tax is a property tax and "ad valorem" is the term most commonly used to refer to a property tax.

Revised Law

Sec. 1025.203.  GENERAL OBLIGATION BOND ELECTION.  (a)  The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters.

(b)  The order calling the election shall provide for clerks as in county elections and must specify:

(1)  the date of the election;

(2)  the location of the polling places;

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

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

(5)  the maximum maturity of the bonds.

(c)  Notice of a bond election shall be given as provided by Section 1251.003, Government Code.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 7(a) (part).)

Source Law

(a)  … No bonds shall be issued by such hospital district … until authorized by a majority of the electors of the district.  The order for bond election shall specify the date of the election, the amount of bonds to be authorized, the maximum maturity thereof, the place or places where the election shall be held, the presiding judge and alternate judge for each voting place, and provide for clerks as in county elections.  Notice of any bond election … shall be given as provided in Article 704, Revised Civil Statutes of Texas, 1925, as amended, and shall be conducted in accordance with the Texas Election Code, as amended, except as modified by the provisions of this Act.

Revisor's Note

(1)  Section 7(a), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that notice of a bond election under Section 8 must be given as provided under Section 3.  As explained in Revisor's Note (3) to the end of Subchapter A, Sections 3 and 8, Chapter 513, are executed.  The revised law therefore omits the provision.  The omitted law reads:

Sec. 7.  (a)  … [Notice of any bond election] except one held under the provisions of Section 8, in which instance notice shall be given as provided in Section 3, … .

(2)  Section 7(a), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, refers to Article 704, Revised Statutes, which specifies certain notice requirements for a bond election.  That provision was codified in 1999 as Section 1251.003, Government Code.  The revised law is drafted accordingly.

(3)  Section 7(a), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that an election under Section 7 "shall be conducted in accordance with the Texas Election Code, as amended, except as modified by the provisions of this act."  The revised law omits the quoted language because Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state.  An exception to the application of the Election Code would apply by its own terms.

Revised Law

Sec. 1025.204.  MATURITY OF GENERAL OBLIGATION BONDS.  District general obligation bonds must mature not later than 40 years after the date of issuance.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 7(c) (part).)

Source Law

(c)  Bonds of the district shall mature within 40 years of their date, … .

Revised Law

Sec. 1025.205.  EXECUTION OF GENERAL OBLIGATION BONDS.  (a)  The board president shall execute the general obligation bonds in the district's name.

(b)  The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 7(c) (part).)

Source Law

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

Revisor's Note

(1)  Section 7(c), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, refers to Chapter 204, Acts of the 57th Legislature, Regular Session, 1961, as amended (Article 717j-1, Vernon's Texas Civil Statutes).  That statute was codified in 1999 as Chapter 618, Government Code, and the revised law is drafted accordingly.

(2)  Section 7(c), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that general obligation bonds issued under Chapter 513 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).  The maximum interest rate noted in Chapter 3 was revised in 1999 as Section 1204.006, Government Code.  Section 1204.006, Government Code, permits a public agency, including a hospital district, to issue public securities at any net effective interest rate of 15 percent or less and applies to the district under Section 1204.001, Government Code.  The revised law omits the reference because it duplicates Section 1204.006, Government Code.  The omitted law reads:

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

(3)  Section 7(c), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that the general obligation 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 7(c) also provides that after approval and registration the bonds are "incontestable for any cause."  The revised law omits those provisions as superseded by Chapter 1202, Government Code (enacted as Article 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987).  Section 1202.003(a), Government Code, requires bonds to be submitted to the attorney general.  Section 1202.003(b), Government Code, provides for approval of the bonds by the attorney general and requires the attorney general to submit the approved bonds to the comptroller for registration.  Section 1202.005, Government Code, requires registration of the bonds by the comptroller. Section 1202.006, Government Code, provides that after approval and registration the bonds are incontestable and binding obligations.  Chapter 1202, Government Code, applies to bonds issued under this chapter by application of Section 1202.001, Government Code.  The omitted law reads:

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

Revised Law

Sec. 1025.206.  REVENUE BONDS.  (a)  The board may issue revenue bonds to:

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

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

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

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

(d)  The bonds must be issued in the manner and in accordance with the procedures and requirements prescribed by Sections 264.042, 264.043, and 264.046-264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 9 (part).)

Source Law

Sec. 9.  In addition to the power to issue bonds payable from taxes levied by the district, as contemplated by the preceding section, the board of directors is further authorized to issue, and … revenue bonds for purchasing, constructing, acquiring, repairing, equipping, or renovating buildings and improvements for hospital purposes, and for acquiring sites therefor, such bonds to be payable from and secured by a pledge of all or any part of the revenues of the district to be derived from the operation of its hospital or hospitals, and such bonds may be additionally secured by a mortgage or deed of trust lien on any part or all of its properties.  The bonds shall be issued in the manner and in accordance with the procedures and requirements specified for the issuance of revenue bonds by County Hospital Authorities in Sections 8 and 10 through 13 of Chapter 122, Acts of the 58th Legislature, 1963 (Article 4494r, Vernon's Texas Civil Statutes).

Revisor's Note

Section 9, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, refers to Sections 8, 10, 11, 12, and 13 of Chapter 122, Acts of the 58th Legislature, 1963 (Article 4494r, Vernon's Texas Civil Statutes).  Those provisions were codified in 1989 as Sections 264.042, 264.043, and 264.046-264.049, Health and Safety Code.  The revised law is drafted accordingly.

Revised Law

Sec. 1025.207.  REFUNDING BONDS.  (a)  The board may, without an election, issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.

(b)  A refunding bond may be:

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

(2)  exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness.  (Acts 63rd Leg., R.S., Ch. 513, Secs. 7(a) (part), 7(b) (part), 9 (part).)

Source Law

Sec. 7.  (a)  …  [No bonds shall be issued by such hospital district] except refunding bonds [until authorized by a majority of the electors of the district.]

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

Sec. 9.  … the board of directors is further authorized … to refund any previously issued [revenue bonds] … .

Revisor's Note

Section 7(b), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that refunding bonds sold to pay outstanding indebtedness must be issued and payments made in the manner specified by Chapter 503, Acts of the 54th Legislature, 1955, as amended (Article 717k, Vernon's Texas Civil Statutes).  In addition, the section provides that refunding bonds must be issued in conformity with Chapter 784, Acts of the 61st Legislature, Regular Session, 1969, as amended (Article 717k-3, Vernon's Texas Civil Statutes).  Articles 717k and 717k-3 were codified in 1999 as Chapter 1207, Government Code.  The revised law omits the provisions because Chapter 1207, Government Code, applies to the district by its own terms under Section 1207.001, Government Code.  The omitted law reads:

(b)  … If the refunding bonds are to be sold and the proceeds thereof applied to the payment of any such outstanding indebtedness, same shall be issued and payments made in the manner specified by Chapter 503, Acts of the 54th Legislature, 1955, as amended (Article 717k, Vernon's Texas Civil Statutes).  Refunding bonds shall be issued in conformity with Chapter 784, Acts of the 61st Legislature, Regular Session, 1969, as amended (Article 717k-3, Vernon's Texas Civil Statutes).

Revised Law

Sec. 1025.208.  BONDS EXEMPT FROM TAXATION.  The following are exempt from taxation by this state or a political subdivision of this state:

(1)  bonds issued by the district;

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

(3)  profits made in the sale of the bonds.  (Acts 63rd Leg., R.S., Ch. 513, Sec. 21 (part).)

Source Law

Sec. 21.  … any bonds issued by it and their transfer and the issuance therefrom, including any profits made in the sale thereof, shall at all times be free from taxation by the state or any municipality or political subdivision thereof.

Revisor's Note

Section 21, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, refers to "any municipality or political subdivision" of this state.  The revised law omits "municipality" because that term is included in the meaning of "political subdivision" of this state.

Revisor's Note

(End of Subchapter)

(1)  Section 13, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that bonds issued under that act are authorized investments for certain entities.  The revised law omits the provision as unnecessary.  As to several of the entities listed, Section 13 has been superseded and impliedly repealed.  Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)).  Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings and loan associations are regulated by Sections 63.002 and 64.001, Finance Code.  As to the remaining entities listed, Section 13 is superseded by Section 1201.041, Government Code, enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes).  Section 1201.041, Government Code, applies to bonds issued under this chapter by application of Section 1201.002, Government Code.  The revised law omits the reference to sinking funds of this state because it has been superseded by Section 404.024, Government Code (enacted in 1985 as Section 2.014, Treasury Act (Article 4393-1, Vernon's Texas Civil Statutes)), which governs the investment of state funds.  Section 404.024(b)(10), Government Code, authorizes the investment of state funds in obligations of political subdivisions, including hospital districts.  The omitted law reads:

Sec. 13.  All bonds issued and indebtedness assumed by the district shall be and are hereby declared to be legal and authorized investments of banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, fiduciaries, trustees, and sinking funds of cities, towns, villages, counties, school districts, or other political subdivisions of the State of Texas, and for all public funds of the State of Texas or its agencies including the State Permanent School Fund.  …

(2)  Section 13, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, effectively provides that bonds issued under that chapter may secure deposits of public funds of this state or political subdivisions of this state.  The revised law omits the provisions as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions.  The omitted law reads:

Sec. 13.  … Such bonds and indebtedness shall be eligible to secure deposit of public funds of the State of Texas and public funds of cities, towns, villages, counties, school districts, or other political subdivisions or corporations of the State of Texas, and shall be lawful and sufficient security for said deposits to the extent of their value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1025.209-1025.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Revised Law

Sec. 1025.251.  IMPOSITION OF AD VALOREM TAX.  (a)  The board shall impose a tax on all property in the district subject to district taxation.

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

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

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

(c)  The board may not impose a tax to pay the principal of or interest on revenue bonds issued under this chapter.  (Acts 63rd Leg., R.S., Ch. 513, Secs. 12 (part), 15(a) (part).)

Source Law

Sec. 12.  The board of directors shall annually levy a tax … for the purpose of paying:

(1)  the indebtedness assumed or issued by the district, but no tax shall be levied to pay principal of or interest on revenue bonds issued under the provisions of Section 9 hereof; and

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

Sec. 15.  (a)  … Hospital tax shall be levied upon all taxable property within the district subject to hospital district taxation.

Revised Law

Sec. 1025.252.  TAX RATE.  (a)  The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district.

(b)  In setting the tax rate, the board shall consider the income of the district from sources other than taxation.  (Acts 63rd Leg., R.S., Ch. 513, Secs. 3(b) (part), 12 (part).)

Source Law

[Sec. 3]

(b)  … [hospital district shall be created with authority to levy annual taxes] at a rate not to exceed 75 cents on the $100 valuation upon all taxable property situated within the hospital district, subject to hospital district taxation, … .

Sec. 12.  [The board of directors shall annually levy a tax] of not to exceed the amount hereinabove permitted … .

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

Revisor's Note

Section 12, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, requires the board to levy the tax and to certify the tax rate to the tax assessor-collector.  The revised law omits that provision because Section 26.05(a), Tax Code, requires the governing body of a taxing unit to adopt a tax rate for the current tax year and to notify the tax assessor of that rate.  The omitted law reads:

Sec. 12.  … On determination of the amount of tax required to be levied, the board shall make the levy and certify the same to the tax assessor-collector.

Revised Law

Sec. 1025.253.  ASSESSMENT AND COLLECTION BY COUNTY TAX ASSESSOR-COLLECTOR.  (a)  This section applies unless the board elects to have taxes assessed and collected under Section 1025.254.

(b)  The tax assessor-collector of Wichita County shall assess and collect taxes imposed by the district.  (Acts 63rd Leg., R.S., Ch. 513, Secs. 15(a) (part), (b) (part).)

Source Law

Sec. 15.  (a) … unless the directors, by majority vote, elect to have taxes assessed and collected by its own tax assessor-collector under Subsection (c) hereof. …

(b)  Under this subsection, … .  The tax assessor-collector of the county in which the district is situated shall be charged and required to accomplish the assessment and collection of all taxes levied by and on behalf of the district… .

Revisor's Note

(1)  Sections 15(a) and (b), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, refer to the assessment and collection of district taxes on county tax values.  The revised law omits those provisions because they were repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979, which repealed all "general, local, and special laws" that conflicted with that act.  The 1979 Act enacted the Property Tax Code (Title 1, Tax Code), a comprehensive, substantive codification of property tax law.  Title 1, Tax Code, provides the exclusive procedures for the appraisal of property for taxation by a taxing unit, including a hospital district.  The omitted law reads:

Sec. 15.  (a)  …  All taxes of the district shall be assessed and collected on county tax values as provided in Subsection (b) hereof … .

(b)  … district taxes shall be assessed and collected on county tax values in the same manner as provided by law with relation to county taxes… .

(2)  Section 15(b), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, refers to the tax assessor-collector "of the county in which the district is situated."  The revised law substitutes "Wichita County" for the quoted language because that is the county in which the district is located.

(3)  Section 15(b), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that the county tax assessor-collector may charge a fee for the assessment and collection of district taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (1).  Section 6.27(b), Tax Code,  provides for the compensation of a county tax assessor-collector assessing and collecting taxes for another taxing unit.  The omitted law reads:

(b)  … The assessor-collector of taxes shall charge and deduct from payments to the hospital district an amount as fees for assessing and collecting the taxes at a rate of one percent of the taxes assessed and one percent of the taxes collected, but in no event shall the amount paid exceed $5,000 in any one calendar year.  Such fees shall be deposited in the officers salary fund of the county and reported as fees of office of the county tax assessor-collector… .

(4)  Section 15(b), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that interest and penalties on district taxes and discounts are the same as for county taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (1). Chapter 33, Tax Code, provides for the assessment of penalties and interest on delinquent taxes, and Section 31.05, Tax Code, provides for discounts on the early payment of taxes.  The omitted law reads:

(b)  … Interest and penalties on taxes paid to the hospital district shall be the same as in the case of county taxes.  Discounts shall be the same as allowed by the county… .

(5)  Section 15(b), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that tax revenue shall be deposited in the district's depository.  The revised law omits the provision because Section 31.10, Tax Code, requires the tax assessor-collector of a taxing unit to deposit taxes collected in the unit's depository.  The omitted law reads:

(b)  … The residue of tax collections after deduction of discounts and fees for assessing and collecting shall be deposited in the district's depository… .

(6)  Section 15(b), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that the bond of the county tax assessor-collector is security for the performance of district duties unless the board determines that an additional bond is necessary.  The revised law omits that provision because it duplicates Section 6.29(b), Tax Code, which authorizes a taxing unit for which the county tax assessor-collector collects a tax to require that collector to post an additional bond.  The omitted law reads:

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

(7)  Section 15(b), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, states that the tax assessor-collector may act in accordance with state law relating to the assessment, collection, and enforcement of state and county taxes.  The revised law omits that provision as unnecessary.  The state law relating to the assessment, collection, and enforcement of all ad valorem taxes is Title 1, Tax Code.  Section 1.02, Tax Code, requires all taxing units of government to administer the assessment, collection, and enforcement of taxes in conformity with that title.  The omitted law reads:

(b)  … In all matters pertaining to the assessment, collection, and enforcement of taxes for the district, the county tax assessor-collector shall be authorized to act in all respects according to the laws of the State of Texas relating to state and county taxes.

Revised Law

Sec. 1025.254.  ASSESSMENT AND COLLECTION BY DISTRICT TAX ASSESSOR-COLLECTOR.  (a)  The board may elect to have district taxes assessed and collected by a tax assessor-collector appointed by the board.  An election under this subsection must be made by December 1 and governs the manner in which taxes are assessed and collected, until changed by a similar resolution.

(b)  The district tax assessor-collector must:

(1)  reside in the district; and

(2)  own real property subject to district taxation.

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

(1)  the term of employment; and

(2)  compensation.  (Acts 63rd Leg., R.S., Ch. 513, Secs. 15(a) (part), (c) (part).)

Source Law

Sec. 15.  (a)  … [directors … elect to have taxes assessed and collected by its own tax assessor-collector … .]  Any such election may be made prior to December 1 annually and shall govern the manner in which taxes are thereafter assessed and collected, until changed by a similar resolution. …

(c)  Under this subsection, taxes shall be assessed and collected by a tax assessor-collector appointed by the directors, who shall also fix the term of his employment, compensation, and …  the tax assessor and collector shall be residents of the district and own real property subject to hospital district taxation, and … .

Revisor's Note

(1)  Section 15(c), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, requires the board to set a bond amount of not less than $5,000 as security for the district tax assessor-collector.  The revised law omits the provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (1) to Section 1025.253.   Section 6.29(a), Tax Code,  authorizes the governing body of a taxing unit, including a hospital district, to require the unit's tax assessor-collector to post bond without limiting the amount. The omitted law reads:

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

(2)  Section 15(c), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, states that the board shall appoint a board of equalization and establishes the duties of that board and the tax assessor-collector.  The revised law omits the reference to a board of equalization because boards of equalization were abolished and their functions and duties transferred to appraisal review boards by the 1979 enactment of the Property Tax Code, Title 1, Tax Code (Section 1, Chapter 841, Acts of the 66th Legislature, Regular Session, 1979).  The provisions relating to the duties of the tax assessor-collector are omitted because the Tax Code specifies the duties of a tax assessor-collector.  The omitted law reads:

(c)  … The directors shall also annually appoint five persons to serve as a board of equalization and shall fix their compensation.  Each member of the board and … [shall be residents of the district and own real property subject to hospital district taxation, and] each shall have the same duties, including the obligation to execute the oath of office, as required by county officials exercising such powers and duties, … .

(3)  Section 15(c), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, refers to the applicability of Title 122 of the Revised Statutes (Taxation).  Before its repeal and recodification, Title 122 was composed of V.A.C.S. Articles 7041-7359a.  The relevant parts of those provisions were revised in 1979 as the Property Tax Code, Title 1, Tax Code (Section 1, Chapter 841, Acts of the 66th Legislature, Regular Session, 1979).  The revised law omits the provision because Title 1 applies to the district on its own terms.  The omitted law reads:

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

Revisor's Note

(End of Subchapter)

Section 15(a), Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that the district may impose taxes for the entire year in which the district is established.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 15.  (a)  The directors shall have the authority to levy taxes for the entire year in which the district is established as the result of the election herein provided… .

Revisor's Note

(End of Chapter)

(1)  Sections 2 and 19, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provide for the transfer of certain land, buildings, improvements, equipment, funds, and taxes to the district after the district is created and provide for the assumption of debt by the district on creation.  The revised law omits the provisions as executed.  The omitted law reads:

Sec. 2.  … The district shall assume the outstanding indebtedness incurred by Wichita County or any city or town within the district to provide medical care for residents of the district prior to the creation of said district.

Sec. 19.  … When the district is created and established, the county and all towns and cities located wholly or partly therein shall convey and transfer to the district title to all land, buildings, improvements, and equipment in anywise pertaining to a hospital or hospital system located wholly within the district which may be jointly or separately owned by the county or any city or town within the district.  Operating funds and reserves for operating expenses which are on hand and funds which have been budgeted to provide medical care for residents of the district by the county or any city or town therein for the remainder of the fiscal year in which the district is established shall likewise be transferred to the district, as shall taxes theretofore levied for hospital purposes for the current year, and all sinking funds established for payment of indebtedness assumed by the district.

(2)  Section 22, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides legislative intent regarding the creation of the district and the determination of qualified electors.  The revised law omits that section as executed.  The omitted law reads:

Sec. 22.  The legislature hereby recognizes there is some confusion as to the proper qualification of electors in the light of recent court decisions.  It is the intention of this Act to provide a procedure for the creation of the hospital district and to allow the district, when created, to issue bonds payable from taxation, but that in each instance the authority shall be predicated upon the expression of the will of the majority of those who cast valid ballots at an election called for the purpose.  Should the body calling an election determine that all qualified electors, including those who own taxable property which has been duly rendered for taxation, should be permitted to vote at an election, by reason of the aforesaid court decisions, nothing herein shall be construed as a limitation upon the power to call and hold an election, provided provision is made for the voting, tabulating, and counting of the ballots of the resident qualified property taxpaying electors separately from those who are qualified electors, and in any election so called a majority vote of the resident qualified property taxpaying voters and a majority vote of the qualified electors, including those who own taxable property which has been duly rendered for taxation, shall be required to sustain the proposition.

(3)  Section 23, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that the act is severable.  The revised law omits this provision because it duplicates Section 311.032, Government Code (Code Construction Act), which provides that a provision of a statute is severable from each other provision of the statute that can be given effect.  The omitted law reads:

Sec. 23.  …  If any provision of this Act should be invalid, such fact shall not affect the authorization for the creation of the district or the validity of any other provisions of this Act, and the legislature hereby declares that it would have created the district and enacted the valid provisions of this Act notwithstanding the invalidity of any other provision or provisions hereof.

(4)  Section 24, Chapter 513, Acts of the 63rd Legislature, Regular Session, 1973, provides that public notice of enactment of the statute was provided in a manner that satisfies the requirements of the Texas Constitution.  The revised law omits that section as executed.  The omitted law reads:

Sec. 24.  Proof of publication of the notice required in the enactment hereof under the provisions of Article IX, Section 9, of the Texas Constitution, has been made in the manner and form provided by law pertaining to the enactment of local and special laws, and such notice is hereby found and declared proper and sufficient to satisfy such requirement.