80C220(3) MCK

 

CHAPTER 1070.  HANSFORD COUNTY HOSPITAL DISTRICT

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 1070.001.  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 Hansford County Hospital District.  (New.)

Revisor's Note

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

Revised Law

Sec. 1070.002.  AUTHORITY FOR OPERATION.  The Hansford County Hospital District operates in accordance with Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties provided by this chapter.  (Acts 62nd Leg., R.S., Ch. 872, 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, maintenance, and operation of a hospital district within this state … to be known as "Hansford County Hospital District," with such rights, powers, and duties as provided in this Act.

Revisor's Note

Section 1, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, authorizes the "creation, establishment, maintenance, and operation" of the district.  The revised law omits "creation" and "establishment" as executed.  The revised law omits "maintenance" because, in this context, the meaning of that term is included in the meaning of "operation."

Revised Law

Sec. 1070.003.  ESSENTIAL PUBLIC FUNCTION.  The district performs an essential public function in carrying out the purposes of this chapter.  (Acts 62nd Leg., R.S., Ch. 872, 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. 1070.004.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of Hansford County, Texas, unless the boundaries are expanded under Subchapter D.  (Acts 62nd Leg., R.S., Ch. 872, Secs. 1 (part), 1A(a) (part).)

Source Law

Sec. 1.  …  with boundaries coextensive with the boundaries of Hansford County, Texas, … .

Sec. 1A.  (a) … territory … may be annexed or added to the area included in the boundaries of the proposed district set forth in Section 1.

Revised Law

Sec. 1070.005.  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 62nd Leg., R.S., Ch. 872, Sec. 23 (part).)

Source Law

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

Revisor's Note

Section 23, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, 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 constitutions, and all acts done under this Act shall be in such manner as will conform thereto, whether expressly provided or not… .

Revised Law

Sec. 1070.006.  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 62nd Leg., R.S., Ch. 872, 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. 1070.007.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.  The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 20 (part).)

Source Law

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

Revisor's Note

(End of Subchapter)

Sections 3(a), (b), and (c) and 4(a), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, 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 such 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.  Such election may be called by the county judge of Hansford County or shall be called by the county judge upon presentation of a petition therefor signed by at least 100 electors of the area of the proposed district. … further provided, if this district is not confirmed within five years of the effective date of this Act, this Act is hereby 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 voting at said 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 Sections 61, 62, and 63, Texas Election Code, as amended (Articles 6.05, 6.06, 6.07, Vernon's Texas Election Code), so that ballots must be printed to allow for voting for or against the proposition:  "The creation of Hansford County Hospital District, providing for the levy of a tax not to exceed 50 cents on each $100 valuation upon all taxable property situated within said district subject to hospital district taxation, and providing for the assumption by such district of all outstanding bonds and indebtedness heretofore issued for hospital purposes by Hansford County and by any city or town within said county."

Sec. 4.  (a)  Within 10 days after such election is held, or as soon thereafter as possible, the commissioners court in such county 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 commissioners court shall so find and declare the hospital district established and created and … .

[Sections 1070.008-1070.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1070.051.  BOARD; TERM.  (a)  The board consists of six directors appointed by the Commissioners Court of Hansford County unless the method for selecting directors is changed under Section 1070.052.

(b)  Directors serve staggered two-year terms.  (Acts 62nd Leg., R.S., Ch. 872, Secs. 4(a) (part), (b) (part).)

Source Law

Sec. 4.  (a)  … [the commissioners court in such county] … at which time six directors shall be appointed by the said commissioners court, who shall also designate the length of term for each appointee.  Three of the directors then appointed shall serve for two years; the other three directors shall serve for one year.   Thereafter, each director shall serve for a period of two years and until his successor has been duly appointed and has qualified. .  . .

(b)  … the method for thereafter selecting directors may be changed … .

Revisor's Note

(1)  Section 4(a), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, prescribes the procedures for appointing the initial board of directors and the terms of the initial directors.  The revised law omits those provisions as executed but codifies the establishment of a board consisting of six directors appointed by the Commissioners Court of Hansford County. Section 4(a) also establishes staggered two-year terms for the second appointed directors.  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.

(2)  Section 4(a), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, prescribes the procedure for the appointment of temporary directors.  The revised law omits the provisions as executed.  The omitted law reads:

(a)  … [commissioners court shall] … appoint six persons as directors of the hospital district to serve until the first Saturday in April following the creation and establishment of the district, … .

(3)  Section 4(a), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, provides that a director serves "until his successor has been duly appointed and has qualified."  The revised law omits that provision because it duplicates Section 17, Article XVI, Texas Constitution, which provides that an officer in this state is to continue to perform the officer's official duties until a successor has qualified.

Revised Law

Sec. 1070.052.  PETITION TO CHANGE METHOD FOR SELECTING DIRECTORS; ELECTION.  (a)  The Commissioners Court of Hansford County shall order an election on the question of electing directors if the court receives a petition requesting that action signed by at least 250 registered district voters who own taxable property in the district as of the date the petition is presented to the court.  The election shall be held within 90 days of the date the petition is presented and notice of the election is given as provided by Section 1251.003, Government Code.

(b)  The order calling the election must:

(1)  specify the date of the election, the location of the polling places, and the presiding judge and alternate judge for each voting place; and

(2)  provide for clerks as in a county election.

(c)  The ballot shall be prepared to allow voting for or against the proposition:  "Providing the office of director of the Hansford County Hospital District shall hereafter be an elective office."

(d)  If a majority of the district voters voting in the election favor the proposition:

(1)  directors in office at the time of the election shall serve the terms for which the directors were appointed; and

(2)  successor directors shall be elected as provided by Section 1070.053.

(e)  Another election on the question of electing directors may not be held before the third anniversary of the date of the most recent election on electing directors. (Acts 62nd Leg., R.S., Ch. 872, Sec. 4(b) (part).)

Source Law

(b)  [After the district has been established (as the result of the election for which provision is made in Section 3) and the initial directors have been duly appointed and have qualified,] the method for thereafter selecting directors may be changed by following the provisions of this subsection.  A petition asking that directors of the district thereafter be elected may be presented to the Commissioners Court of Hansford County.  If such petition is executed by at least 250 qualified electors of the district who own taxable property therein which has been duly rendered for taxation on the tax rolls of the district as of the date of the presentation to the court of such petition, it shall be the duty of the Commissioners Court of Hansford County to order an election on the question of whether the directors of the district shall thereafter be elected.  Such election shall be called within 90 days after the presentation of a proper petition and notice thereof, given as provided in Article 704, Revised Statutes, and such election shall be conducted in accordance with the general laws of Texas pertaining to general elections, except as modified by the provisions of this Act.  The order calling the election shall specify the date, place or places of holding the election, the presiding judge and alternate judge for each voting place, and shall provide for clerks as in a county election.  The ballots shall be prepared to allow voting for or against the proposition:  "Providing the office of director of the Hansford County Hospital District shall hereafter be an elective office."  If a majority of the voters participating in the election shall vote in favor of such proposition, each director then in office shall continue to serve the term for which appointed, but successors in office shall be elected … .  No more than one such election for the purpose of voting on the aforesaid proposition shall be held within any three-year period… .

Revisor's Note

(1)  Section 4(b), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, refers to changing the method of selecting the directors of the district after the district is established and the initial directors are appointed.  The revised law omits the reference as executed.  The omitted law reads:

(b)  After the district has been established (as the result of the election for which provision is made in Section 3) and the initial directors have been duly appointed and have qualified, … .

(2)  Section 4(b), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, refers to "qualified electors" in the district.  The revised law substitutes "voters" for "electors" because "voter" is the term used in the Election Code.  In addition, the revised law substitutes "registered" for "qualified" because in the context of eligibility to sign a petition, Section 277.0021, Election Code, provides that "qualified voter" means a "registered voter."

(3)  Section 4(b), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, refers to property "which has been duly rendered for taxation on the tax rolls of the district."  The revised law omits the quoted language because the Tax Code does not require that real property be rendered for taxation.

(4)  Section 4(b), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, refers to Article 704, Revised Statutes, which specifies certain notice requirements.  That provision was codified in 1999 as Section 1251.003, Government Code.  The revised law is drafted accordingly.

(5)  Section 4(b), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, states that the "election shall be conducted in accordance with the general laws of Texas pertaining to general elections, except as modified by the provisions of this Act."  The general law on elections in Texas is the Election Code.  The revised law omits the quoted language because it duplicates Section 1.002, Election Code, which 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. 1070.053.  DIRECTORS' ELECTION.  (a)  If a majority of the votes in an election under Section 1070.052 favor electing the directors, an election shall be held on the uniform election date in May of each year.

(b)  The order calling a directors' election must specify the time, place, and purpose of the election.

(c)  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 50 registered voters; and

(2)  filed at least 25 days before the date of the election.

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

(e)  Unless four-year terms are established under Section 285.081, Health and Safety Code, elected directors serve staggered two-year terms.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 4(b) (part).)

Source Law

(b)  …  [but successors in office shall be elected] for terms of two years… .

If such proposition is sustained by a majority vote, a regular election for directors shall be held on the first Saturday in May of each year and shall be ordered by the board.  Such order shall state the time, place, and purpose of the election, and … .  Any person desiring his name to be printed on the ballot as a candidate for director shall file a petition signed by not less than 50 qualified voters, asking that such name be printed on the ballot, with the secretary of the board of directors of the district.  Such petition shall be filed with the secretary at least 25 days prior to the date of election.  Notice of such election shall be published one time in a newspaper of general circulation in the area of the district at least five days before the election.  The term of office of each elected director shall be two years… .

Revisor's Note

(1)  Section 4(b), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, was amended in 1997 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 1997 amendment to Section 4(b) that the election be held on the first Saturday in May, which was at that time the uniform election date in May.

(2)  Section 4(b), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, requires the board to appoint a presiding judge, who must appoint an assistant judge and clerks.  The revised law omits the provision as superseded by the 1985 enactment of the Election Code, applicable to the district under Section 1.002, Election Code.  Sections 32.005 and 32.033, Election Code, govern the selection of election judges and clerks.  The omitted law reads:

(b)  … the board shall appoint the presiding judge, who shall appoint an assistant judge and such clerks as may be required, and … .

(3)  Section 4(b), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, provides that the board shall issue the order for the election of directors at least 15 days before the date of the election.  The revised law omits the provision requiring the board to order the election because it duplicates Section 3.004, Election Code, applicable to the district under Section 1.002, Election Code.  Section 3.004 requires the governing body of a political subdivision that has elective officers to order the general election for those officers.  The revised law also omits the provision stating that the board shall issue the order at least 15 days before the election date as superseded by Section 3.005, Election Code, also applicable to the district under Section 1.002, Election Code.  Section 3.005, as amended by Chapter 925, Acts of the 78th Legislature, Regular Session, 2003, requires an election order issued by the authority of a political subdivision to be issued not later than the 62nd day before election day and provides that Section 3.005 supersedes a law outside the Election Code to the extent of any conflict.  The omitted law reads:

(b)  …   such election shall be ordered at least 15 days prior to the date on which it is to be held… .

(4)  Section 4(b), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, refers to "qualified voters."  The revised law substitutes "registered" for "qualified" for the reason stated in Revisor's Note (2) to Section 1070.052.

(5)  Section 4(b), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, 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.

(6)  Section 4(e), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, provides that Subchapter C, Chapter 2, Election Code, applies to elections for unopposed director candidates.  The revised law omits the provision because Section 285.131, Health and Safety Code (requiring write-in candidates to file a declaration of candidacy), makes Subchapter C, Chapter 2, apply to the district.  The omitted law reads:

(e)  Subchapter C, Chapter 2, Election Code, applies to the election of unopposed candidates for the board of directors.

(7)  Section 4A, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, provides procedures regarding write-in voting for director elections.  The revised law omits the provision because it mostly duplicates Section 285.131, Health and Safety Code, which, according to its terms, applies to all hospital districts created under general or special law.  The portion of the provision regarding the deadline for filing a declaration of write-in candidacy is superseded by amendments made to Section 285.131, Health and Safety Code, by Section 11, Chapter 925, Acts of the 78th Legislature, Regular Session, 2003, and by Section 34, Chapter 1109, Acts of the 79th Legislature, Regular Session, 2005.  The omitted law reads:

Sec. 4A.  (a)  In a general or special election of directors, a write-in vote may not be counted unless the name written in appears on the list of write-in candidates.

(b)  To be entitled to a place on the list of write-in candidates, a candidate must make a declaration of write-in candidacy.

(c)  A declaration of write-in candidacy must be filed with the secretary of the board of directors not later than 5 p.m. of the 20th day before election day.  However, if a candidate whose name is to appear on the ballot dies or is declared ineligible after the 23rd day before election day, a declaration of write-in candidacy for the office sought by the deceased or ineligible candidate may be filed not later than 5 p.m. of the 18th day before election day.

(d)  Subchapter B, Chapter 146, Election Code, applies to write-in voting in an election of directors except to the extent of a conflict with this section.

Revised Law

Sec. 1070.054.  QUALIFICATIONS FOR OFFICE.  (a)  A person may not 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)  the district administrator; or

(2)  a district employee.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 4(c) (part).)

Source Law

(c)  No person shall serve as a member of the board of directors unless the person is a resident of the district and a qualified voter.  Neither the administrator nor employee of the district shall be eligible to serve as a director. …

Revised Law

Sec. 1070.055.  BOARD VACANCY.  (a)  If a vacancy occurs in the office of an appointed director, the commissioners court shall appoint a director for the unexpired term.

(b)  If a vacancy occurs in the office of an elected director, the remaining directors by majority vote shall appoint a director for the unexpired term.  (Acts 62nd Leg., R.S., Ch. 872, Secs. 4(a) (part), (b) (part).)

Source Law

(a)  … Vacancies in office shall be filled for the unexpired term by the commissioners court.

(b)  …  All vacancies in the office of director shall thereafter be filled by a majority vote of the remaining directors, and such appointees shall hold office for the unexpired term for which they were appointed.

Revised Law

Sec. 1070.056.  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 62nd Leg., R.S., Ch. 872, Sec. 4(d) (part).)

Source Law

(d)  The board of directors shall organize by electing one of their number as president and one of their number as vice president.  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… .

Revised Law

Sec. 1070.057.  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 62nd Leg., R.S., Ch. 872, Sec. 4(d) (part).)

Source Law

(d)  …  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 upon the approval of such expenses by the board of directors so reported in the minute book of the district or other records of the district.

Revisor's Note

Section 4(d), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, 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. 1070.058.  VOTING REQUIREMENT.  A concurrence of four directors is sufficient in any matter relating to district business. (Acts 62nd Leg., R.S., Ch. 872, Sec. 4(d) (part).)

Source Law

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

Revisor's Note

Section 4(d), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, provides that four directors constitute a quorum.  The revised law omits that provision because it duplicates Section 311.013, Government Code (Code Construction Act), which provides that a quorum of a public body is a majority of the number of members fixed by statute.  The omitted law reads:

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

Revised Law

Sec. 1070.059.  ADMINISTRATORS; ASSISTANT ADMINISTRATORS.  (a)  The board shall appoint qualified persons as administrators of the district or the ancillary health care facilities.

(b)  The board may appoint assistant administrators.

(c)  The administrators and any assistant administrators 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 62nd Leg., R.S., Ch. 872, Sec. 5(a) (part).)

Source Law

(a)  … The board of directors shall appoint qualified persons to be known as the administrators or managers of the hospital district or of the ancillary health care facilities and may in its discretion appoint assistants to the administrators or managers.  Such administrators or managers and assistant administrators or managers, if any, shall serve at the will of the board and shall receive such compensation as may be fixed by the board.  The district administrator or manager shall, upon 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(a), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, provides that the board shall appoint persons as "administrators or managers" of the district and may appoint "assistant administrators or managers."  Throughout this chapter, the revised law omits "manager" because, in context, "manager" is included in the meaning of "administrator."

Revised Law

Sec. 1070.060.  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;

(2)  direct the affairs of the district; and

(3)  have overall management responsibility for ancillary health care facilities.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 5(a) (part).)

Source Law

(a)  … The district administrator or manager shall supervise all the work and activities of the district and shall have general direction of the affairs of the district, including overall management responsibility for the ancillary health care facilities, subject to the limitations as may be prescribed by the board. …

Revised Law

Sec. 1070.061.  APPOINTMENT OF STAFF AND EMPLOYEES.  (a)  The board may appoint to the staff any doctors and allied health personnel 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 62nd Leg., R.S., Ch. 872, Secs. 5(a) (part), 16.)

Source Law

Sec. 5.  (a) …  The board of directors shall have the authority to appoint to the staff such doctors and allied health personnel 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 district 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.

Revised Law

Sec. 1070.062.  RECRUITMENT OF STAFF AND EMPLOYEES.  The board may spend district money, enter into agreements, and take other necessary action to recruit physicians, ancillary and allied health professionals, and other persons to serve on the district's medical staff or to be employed by the district, including:

(1)  advertising and marketing;

(2)  paying travel, recruitment, and relocation expenses;

(3)  providing a loan or scholarship to a physician or other person who:

(A)  is enrolled in health care education courses at an institution of higher education; and

(B)  contractually agrees to become a district employee or medical staff member; and

(4)  providing on a rent-free basis or subsidizing the cost of office space or other facilities for a health care professional, including a physician.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 10A(a).)

Source Law

Sec. 10A.  (a)  The board of directors may spend district funds, enter into agreements, and take other necessary action to recruit physicians, ancillary and allied health professionals, and other persons to serve on the district's medical staff or for employment with the district, including:

(1)  advertising and marketing;

(2)  paying travel, recruitment, and relocation expenses;

(3)  providing a loan or scholarship to a physician or other person enrolled in health care education courses at an institution of higher education who contractually agrees to become a district employee or medical staff member; and

(4)  providing office space without the payment of rent for the space or subsidizing office space or other facilities for a health care professional, including a physician.

Revised Law

Sec. 1070.063.  HEALTH CARE AND PROFESSIONAL EDUCATIONAL PROGRAMS.  The board may spend district money, enter into agreements, and take other necessary action to conduct, participate in, or otherwise assist in providing health care and professional educational, development, or retraining programs for current or prospective medical staff members or district employees.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 10A(b).)

Source Law

(b)  The board of directors may spend district funds, enter into agreements, and take other necessary action to conduct, participate in, or otherwise assist in providing health care and professional educational, development, or retraining programs for medical staff members or employees of the district or prospective medical staff members or employees.

Revised Law

Sec. 1070.064.  DAY-CARE SERVICES.  (a)  The board may take any action to provide day-care services for the district's medical staff members, allied health professionals, officers, directors, and employees, including:

(1)  spending district money;

(2)  entering into agreements; and

(3)  acquiring by lease, purchase, or lease to purchase facilities, supplies, and equipment.

(b)  The district may provide day-care services to district residents as space permits.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 10A(c).)

Source Law

(c)  The board of directors may spend district funds, enter into agreements, acquire by lease, purchase, or lease to purchase facilities, supplies, and equipment, and take any other action to provide day-care services for the medical staff members, allied health professionals, officers, directors, and employees of the district.  As space permits, the district may also provide day-care services to residents of the district.

Revised Law

Sec. 1070.065.  SENIORITY; RETIREMENT BENEFITS.  The board may:

(1)  adopt rules related to the seniority of district employees, including rules for a retirement plan based on seniority; and

(2)  give effect to previous years of service for a district employee continuously employed in the operation or management of hospital or ancillary health care facilities:

(A)  constructed by the district; or

(B)  acquired by the district, including facilities acquired when the district was created.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 5(a) (part).)

Source Law

(a)  …  The board is given full authority to establish rules and regulations relating to seniority of employees of the district, including a retirement plan based thereon, and may give effect to previous years of service for those employees who have been continuously employed in the operation or management of the hospital or ancillary health care facilities acquired, including those acquired upon the creation thereof by reason of Section 2 of this Act, or constructed by the district. …

Revisor's Note

(1)  Section 5(a), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, refers to "rules and regulations" established by the board.  Throughout this chapter, the revised law omits references to "regulations" because under Section 311.005, Government Code (Code Construction Act), a rule is defined to include a regulation.

(2)  Section 5(a), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, refers to facilities acquired on creation "by reason of Section 2 of this Act."  The revised law omits the quoted language because the relevant portions of Section 2 were omitted for the reason stated in End of Chapter Revisor's Note (1).

Revised Law

Sec. 1070.066.  LIABILITY INSURANCE; INDEMNIFICATION.  (a)  The board may defend or indemnify an officer, director, board appointee, medical staff member, or district employee against or from a claim, expense, or liability arising from duties performed in that capacity, including a duty performed at a district facility.

(b)  The board may purchase and maintain liability insurance coverage or establish a self-insurance program to fund an indemnity obligation under this section.  (Acts 62nd Leg., R.S., Ch.  872, Sec. 5(b).)

Source Law

(b)  The board of directors may defend or indemnify an officer, director, board appointee, medical staff member, or district employee against or for liability, claims, or expenses that arise from the performance of a duty in the person's respective capacity as an officer, director, board appointee, medical staff member, or employee of the district, including the performance of a duty at a district facility.  The board of directors may purchase and maintain liability insurance coverage or establish a self-insurance program to fund indemnification under this section.

Revisor's Note

(End of Subchapter)

Section 4(c), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, requires each director to execute the constitutional oath of office.  The revised law omits that provision because Section 1, Article XVI, Texas Constitution, requires all officers in this state to take the oath (or affirmation) before assuming office.  The omitted law reads:

(c)  …  Each member of the board of directors shall execute the constitutional oath of office.

[Sections 1070.067-1070.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1070.101.  DISTRICT RESPONSIBILITY.  (a)  The district has full responsibility for providing hospital services for the district's indigent residents.

(b)  The district may assume full responsibility for providing ancillary health care services for the district's indigent residents.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 19 (part).)

Source Law

Sec. 19.  … The said hospital district shall assume full responsibility for providing hospital services for the indigents residing within the district.  The hospital district may assume full responsibility for providing ancillary health care services for the indigent residents of the district and … .

Revisor's Note

Section 19, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, provides that the district "shall assume" full responsibility for providing hospital services for the district's indigent residents.  The revised law substitutes "has" for the quoted language because the duty to assume the responsibility is executed.

Revised Law

Sec. 1070.102.  RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT.  A political subdivision located within the district may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 19 (part).)

Source Law

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

Revisor's Note

(1)  Section 19, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, 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 872, Acts of the 62nd Legislature, Regular Session, 1971, refers to a "municipality or political subdivision."  The revised law omits the reference to "municipality" because "municipality" is included in the meaning of "political subdivision."

Revised Law

Sec. 1070.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  The board shall manage, control, and administer the hospital system and the district's money and resources.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 5(a) (part).)

Source Law

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

Revised Law

Sec. 1070.104.  HOSPITAL SYSTEM; ANCILLARY HEALTH CARE SERVICES 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 and ancillary health care services systems may include:

(1)  facilities and equipment to provide domiciliary care and treatment of the sick or injured;

(2)  outpatient clinics;

(3)  dispensaries;

(4)  geriatric domiciliary care;

(5)  convalescent home facilities;

(6)  physicians' offices;

(7)  home health services;

(8)  durable medical equipment;

(9)  long-term care;

(10)  skilled nursing care;

(11)  intermediate nursing care;

(12)  hospice care;

(13)  ambulatory surgery centers;

(14)  urgent care facilities;

(15)  rural health clinics;

(16)  operation of a mobile emergency medical service;

(17)  necessary nurses' domiciliaries and training centers;

(18)  blood banks;

(19)  research centers or laboratories; and

(20)  any other facilities or equipment the board considers necessary to provide hospital and ancillary health care services.  (Acts 62nd Leg., R.S., Ch. 872, Secs. 2 (part), 9 (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. 9.  … The hospital and ancillary health care services systems may include facilities and equipment to provide for domiciliary care and treatment of the sick, wounded, and injured, outpatient clinics, dispensaries, geriatric domiciliary care, convalescent home facilities, physicians' offices, home health services, durable medical equipment, long-term care, skilled nursing care, intermediate nursing care, hospice care, ambulatory surgery centers, urgent care facilities, rural health clinics, operation of a mobile emergency medical service, necessary nurses' domiciliaries and training centers, blood banks, and research centers or laboratories, and any other facilities or equipment deemed necessary for the provision of hospital and ancillary health care services by the directors. …

Revisor's Note

Section 9, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, 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. 1070.105.  RULES.  The board may adopt rules governing:

(1)  the operation of the hospital, ancillary health care facilities, hospital system, and ancillary health care system; and

(2)  the duties, functions, and responsibilities of district staff, employees, contractors, or agents.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 5(a) (part).)

Source Law

(a)  … The district, through its board of directors, shall have the power and authority … to promulgate rules and regulations governing the operation of the hospital, ancillary health care facilities, hospital system, and ancillary health care system, and the duties, functions, and responsibilities of the staff, employees, contractors, or agents of the district. …

Revisor's Note

Section 5(a), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, provides that the board may "promulgate" rules to govern the district.  The revised law substitutes "adopt" for "promulgate" because the terms are synonymous and the former is more commonly used.

Revised Law

Sec. 1070.106.  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 62nd Leg., R.S., Ch. 872, Sec. 10 (part).)

Source Law

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

Revised Law

Sec. 1070.107.  MOBILE EMERGENCY MEDICAL SERVICE.  The district may operate or provide for the operation of a mobile emergency medical service.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 19 (part).)

Source Law

Sec. 19.  …  [The hospital district] … may operate or provide for the operation of a mobile emergency medical service … .

Revised Law

Sec. 1070.108.  DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.  (a)  The board shall determine the type, number, and location, either inside or outside the district, of buildings required to maintain an adequate hospital system and ancillary health care services system.

(b)  The board may lease all or part of the district's buildings, facilities, or equipment 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, by purchase, lease, or lease to purchase, equipment for use in the district's hospital system and mortgage or pledge the property as security for the payment of the purchase or lease 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, lease, or otherwise dispose of any property, including equipment, on terms the board finds are in the best interest of the district's inhabitants.  The board may not sell or otherwise dispose of any real property unless the board affirmatively finds that the sale, lease, or disposition is in the best interest of the district's inhabitants.  (Acts 62nd Leg., R.S., Ch. 872, Secs. 9 (part), 10 (part).)

Source Law

Sec. 9.  The board of directors is hereby given complete discretion as to the type of buildings, both as to number and location, either inside or outside the district, required to establish and maintain an adequate hospital system and ancillary health care services system… .  The board may lease all or part of its buildings, facilities, or equipment upon terms and conditions considered to be in 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 on which the lease is made.  The district shall be empowered to sell, lease, or otherwise dispose of any real or personal property or equipment of any nature upon terms and conditions found by the board to be in the best interest of the district's inhabitants, provided, however, that in no event shall the board be authorized to sell or dispose of any real property unless the board affirmatively finds that the sale, lease, or disposition of the property is in the best interests of the district's inhabitants.

Sec. 10.  …  The district may acquire by purchase, lease, or lease to purchase equipment for use in its hospital system and mortgage or pledge the property so acquired as security for the payment of the purchase or lease 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 9, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, 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 9, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, refers to "terms and conditions."  The revised law omits the reference to "conditions" because "conditions" is included in the meaning of "terms."

(3)  Section 9, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, refers to "any real or personal property."  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. 1070.109.  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 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, 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 62nd Leg., R.S., Ch. 872, 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 to the powers, rights, and privileges conferred by this Act, in the manner provided by the general law with respect to condemnation by counties, provided that the district shall not be required to make deposits in the registry of the trial court of the sum required by Section 21.021, Property Code, or to make bond as therein provided.  In condemnation proceedings being prosecuted by the district, the district shall not be required to pay in advance or give bond or other security for costs in the trial court, nor to give any bond otherwise required for the issuance of a temporary restraining order or a temporary injunction nor to give bond for costs or for supersedeas on any appeal or writ of error.

Revisor's Note

(1)  Section 14, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, 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 872, Acts of the 62nd Legislature, Regular Session, 1971, provides that the district must exercise the power of eminent domain in the manner provided by "the general law with respect to condemnation by counties."  The revised law substitutes for the quoted language a reference to Chapter 21, Property Code, because that is the general law governing eminent domain for governmental entities, including counties.

Revised Law

Sec. 1070.110.  GIFTS AND ENDOWMENTS.  The board may accept for the district a gift or endowment to be held in trust and administered by the board 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 62nd Leg., R.S., Ch. 872, 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 objective of the hospital district.

Revisor's Note

(1)  Section 18, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, refers to "donations" and "gifts."  The revised law omits the reference to "donations" because "donations" is included in the meaning of "gifts."

(2)  Section 18, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, refers to previous gifts or endowments made to Hansford County.  The revised law omits the provision as executed.  The omitted law reads:

Sec. 18.  … in addition to those heretofore made to Hansford County for hospital and ancillary health care purposes, … .

Revised Law

Sec. 1070.111.  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, Local Government Code, Subchapter B, Chapter 271, Local Government Code, or Section 286.078, Health and Safety Code.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 10 (part).)

Source Law

Sec. 10.  …  All contracts for construction involving the expenditure of more than $10,000 may be made only after advertising in the manner provided by Chapter 252, Local Government Code, Section 286.078, Health and Safety Code, or Subchapter B, Chapter 271, Local Government Code… .

Revisor's Note

Section 10, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, provides that the provisions of Chapter 2253, Government Code, apply to the district's construction contracts in relation to performance and payment bonds.  The revised law omits the reference to Chapter 2253, Government Code, because that chapter applies to the district on its own terms.  The omitted law reads:

Sec. 10.  . . . The provisions of Chapter 2253, Government Code, relating to performance and payment bonds, shall apply to construction contracts let by the district. . . .

Revised Law

Sec. 1070.112.  OPERATING AND MANAGEMENT CONTRACTS.  The board may enter into an operating or management contract with a public or private entity relating to the district's facilities, equipment, or services.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 9 (part).)

Source Law

Sec. 9.  …  The district, through its board of directors, is further authorized to enter into an operating or management contract with a public or private entity with regard to any part or all of its facilities, equipment, or services… .

Revised Law

Sec. 1070.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR TREATMENT.  The board may contract with this state, another state, a political subdivision of this or another state, or a federal agency for the treatment of a sick or injured person.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 5(a) (part).)

Source Law

(a)  …  Such board  … shall have the authority to contract with the State of Texas, another state, or a political subdivision of this or another state, or agencies of the federal government for the treatment of sick, diseased, or injured persons.

Revisor's Note

Section 5, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, refers to the treatment of "sick, diseased, or injured persons."  Throughout this chapter, the revised law omits the reference to "diseased" because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1070.114.  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 hospital, ancillary health care, or welfare needs of district inhabitants.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 5(a) (part).)

Source Law

(a)  …  Such 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 hospital, ancillary health care, or welfare needs of the inhabitants of the district and … .

Revised Law

Sec. 1070.115.  PROVISION OF SERVICES OUTSIDE DISTRICT.  The board may provide health care services outside the district for the care and treatment of the sick or injured persons of any jurisdiction.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 5(a) (part).)

Source Law

(a)  …  Such board  … shall be authorized to provide health care services outside its boundaries for the care and treatment of the sick, diseased, or injured persons of any jurisdiction, and … .

Revised Law

Sec. 1070.116.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient 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 provided to the patient by the district and that payment is not available from any other source, 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)  determine the patient's ability to pay; and

(2)  issue any appropriate orders.

(f)  The final order may be appealed to the district court.  The substantial evidence rule applies to the appeal.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 17.)

Source Law

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

Revised Law

Sec. 1070.117.  AUTHORITY TO SUE AND BE SUED.  (a)  The district, through the board, may sue and be sued.

(b)  The district is entitled to all causes of action and defenses to which similar authorities performing only governmental functions are entitled.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 5(a) (part).)

Source Law

(a)  …  The district, through its board of directors, shall have the power and authority to sue and be sued, and shall be entitled to all causes of action and defenses enjoyed by similar authorities who perform only governmental functions, … .

[Sections 1070.118-1070.150 reserved for expansion]

SUBCHAPTER D.  CHANGE IN BOUNDARIES

Revised Law

Sec. 1070.151.  TERRITORY THAT MAY BE ANNEXED.  (a)   The district may annex territory that is not located in:

(1)  Hansford County;

(2)  the boundaries of another hospital district; or

(3)  the proposed boundaries of another hospital district authorized by the legislature under Section 9, Article IX, Texas Constitution.

(b)  Territory may be annexed in one or more tracts.  Each tract must be contiguous to:

(1)  the district; or

(2)  territory proposed to be annexed to the district.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 1A(a).)

Source Law

Sec. 1A.  (a)  Under the provisions of this section, territory which is not then (i) within Hansford County, or (ii) within the boundaries of any other hospital district, or (iii) within the proposed boundaries of any hospital district which the Legislature has authorized to be included within the area of a hospital district under Article IX, Section 9, of the Texas Constitution, may be annexed or added to the area included in the boundaries of the proposed district set forth in Section 1.  Territory which is proposed to be annexed or added may be in one or more tracts, each of which shall be either contiguous (adjacent) to the area of the district as described in Section 1, or contiguous (adjacent) to territory which has been or is proposed to be annexed to the district.

Revised Law

Sec. 1070.152.  PETITION TO ANNEX TERRITORY.  (a)  A petition requesting that territory be annexed to the district may be presented to the board.  The petition must:

(1)  describe the tract or tracts of land to be annexed; and

(2)  be signed by 100 or a majority of the registered voters who:

(A)  reside in the territory to be annexed; and

(B)  own property that will be subject to district taxation if the territory is annexed.

(b)  This chapter does not prohibit simultaneous action on several petitions for annexation.  Each ballot proposition must be submitted for each different territory proposed to be annexed, and an election held in each territory represented by a petition.

(c)  If the board receives two or more petitions for annexation that include all or part of the same territory to be annexed to the district, the petition filed first with the board shall be considered and another petition that includes any of the same territory has no effect.

(d)  The board may consider all petitions for annexation presented to it and may approve or reject each petition.  The board may not partly approve or partly reject any petition.  (Acts 62nd Leg., R.S., Ch. 872, Secs. 1A(b) (part), (f).)

Source Law

(b)  A petition asking that territory be annexed to the district may be presented to the board of directors of the district, and such petition must describe the tract or tracts proposed to be annexed and be executed by 100 or a majority of the resident qualified electors of the area proposed to be annexed and who own property duly rendered for taxation on the county tax rolls of the particular county which will be subject to hospital district taxation if the annexation is completed and accomplished. …

(f)  Nothing herein shall be construed as prohibiting simultaneous action on several petitions, but in such event, propositions shall be submitted separately in the different areas proposed to be annexed, it being the intent hereof to allow an election to be held within each area or territory represented by a petition for annexation.  In the event two or more petitions are presented for annexation which include all or part of the same territory to be annexed to the hospital district, the petition first filed with the board of directors shall be considered and no other petition which includes any of the same territory shall be of any effect for any purpose.  The board of directors of the district may consider all petitions presented to it and approve or reject the same, it being specifically provided that such a petition, if presented, may not be approved in part or rejected in part.

Revisor's Note

(1)  Section 1A(b), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, refers to the resident "qualified electors" of the territory to be annexed who own property "duly rendered for taxation on the county tax rolls of the particular county."  The revised law substitutes "registered voter" for "qualified elector" for the reasons stated in Revisor's Note (2) to Section 1070.052.  The revised law omits the quoted language relating to rendering property for taxation for the reason stated in Revisor's Note (3) to Section 1070.052.

(2)  Section 1A(b), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, states that the section applies to any petition presented to the board after the district has been established.  The revised law omits that provision as executed.  The omitted law reads:

(b)  … The provisions of this paragraph shall be applicable to any petition or petitions presented to the board of directors of the district after the district has been established as the result of an election held under the provisions of Section 3 hereof.

Revised Law

Sec. 1070.153.  ELECTION ORDER.  (a)  If, on receipt of a petition, the board finds that annexing the territory is in the district's best interest, the board shall within 90 days of the board's finding:

(1)  approve the annexation of the territory described in the petition; and

(2)  order an election on the question of annexing the territory to the district.

(b)  The election order shall provide for a separate election:

(1)  in the territory proposed to be annexed; and

(2)  in the district.

(c)  The election shall be held not earlier than the 35th day and not later than the 60th day after the date the election is ordered.

(d)  The election order 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 form of ballot; and

(4)  the presiding judge and alternate judge for each polling place.

(e)  The election order may provide that:

(1)  the entire district is one election precinct; or

(2)  the county election precincts be combined for the election.  (Acts 62nd Leg., R.S., Ch. 872, Secs. 1A(b) (part), (d) (part), 3(a) (part).)

Source Law

[Sec. 1A]

(b)  …  The board of directors, upon the receipt of the petition, if it finds that it would be in the best interest of the district, shall, within 90 days after such finding, approve the same and order an election to determine if such property shall be annexed or added to the district.  The election order shall provide for a separate election within the territory proposed to be annexed and in the area of the existing district, and … .

(d)  The provisions of Section 3, with respect to the qualifications of voters in the election therein provided, as well as the provisions thereof with respect to the time, manner, and holding of elections and … shall apply to all elections held under the provisions of this section.

Sec. 3.  (a)  …  Such election shall be held not less than 35 nor more than 60 days from the date the election is ordered.  The order calling the election shall specify the date, place or places of holding the election, the form of ballot, the presiding judge and alternate judge for each voting place, and provide for clerks as in county elections.  The election order may provide that the entire district shall constitute one election precinct or the county election precincts may be combined for elections… .

Revised Law

Sec. 1070.154.  BALLOT.  The ballot for the election shall be printed to permit voting  for or against the proposition:  "The establishment of the Hansford County Hospital District with extended boundaries and establishment of a hospital district tax at a rate not to exceed 50 cents on the $100 valuation on all taxable property in the extended boundaries of the hospital district that is subject to hospital district taxation for hospital purposes."  (Acts 62nd Leg., R.S., Ch. 872, Sec. 1A(b) (part).)

Source Law

(b)  …  the proposition submitted in both areas shall be for or against the following ballot proposition:  "The establishment of the Hansford County Hospital District with extended boundaries and establishment of a hospital district tax of not to exceed 50 cents on the $100 valuation upon all taxable property situated within the extended boundaries of said hospital district, subject to hospital district taxation, for hospital purposes." …

Revised Law

Sec. 1070.155.  NOTICE OF ELECTION.  (a)  Notice of the election shall be given by publishing once a week for two consecutive weeks a substantial copy of the election order in a newspaper or newspapers that individually or collectively have general circulation in the county or district.

(b)  The first publication must appear at least 30 days before the date of the election.  (Acts 62nd Leg., R.S., Ch. 872, Secs. 1A(d) (part), 3(a) (part).)

Source Law

[Sec. 1A]

(d)  The provisions of Section 3, with respect to … giving notice thereof, shall apply to all elections held under the provisions of this section.

Sec. 3.  (a)  …  Notice of election shall be given by publishing a substantial copy of the election order in a newspaper or newspapers which individually or collectively provide general circulation in the county or district once a week for two consecutive weeks, the first publication to appear at least 30 days prior to the date established for the election.  …

Revised Law

Sec. 1070.156.  ELECTION RESULTS.  (a)  Territory may not be annexed to the district unless:

(1)  an election is held in accordance with this subchapter; and

(2)  the annexation is approved by a majority of the voters voting in the election in:

(A)  the district; and

(B)  the territory proposed to be annexed.

(b)  If the territory is annexed to the district, a certified copy of the order canvassing the returns of the election shall be filed and recorded in the deed records of each county in which the district is located following the annexation election.

 (c)  An election may not be held under this subchapter within six months of an election previously held under this subchapter.  (Acts 62nd Leg., R.S., Ch. 872, Secs. 1A(c), (d) (part), (e), 3(a) (part).)

Source Law

[Sec. 1A]

(c)  No territory shall be annexed or added to the district unless (i) an election is held under the provisions of this section, and (ii) a majority of the electorate participating in the election within the area of the district as then established or the area of the proposed district as set forth in Section 1, as well as a majority of the electorate participating in the election within the territory proposed to be annexed, shall sustain the propositions submitted.

(d)  The provisions of Section 3, with respect to … the time … of elections … shall apply to all elections held under the provisions of this section.

(e)  In the event territory is annexed to the district under the provisions hereof, a certified copy of the order canvassing the returns of the election shall be filed and recorded in the deed records of each county in which the district is located following such annexation.

Sec. 3.  (a) … The failure of such election shall not operate to prohibit the calling and holding of subsequent elections for the same purpose; provided, however, that no district election for confirmation can be held within six months of any preceding district election for confirmation, and, … .

Revisor's Note

Section 3(a), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, refers to the "calling and holding" of an election.  The revised law omits references to "calling" an election because, in this context, "calling" an election is included in the meaning of "holding" an election.  Under Chapter 3, Election Code, all elections must be ordered (called) before they may be held.

Revised Law

Sec. 1070.157.  EFFECT OF ANNEXATION.  (a)  Territory annexed to the district is part of the district for all purposes.

(b)  The annexation of territory to the district does not change the manner in which the board or district officers are selected.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 1A(g).)

Source Law

(g)  …  In the event territory is annexed to the district, it shall thereafter be a part thereof for all purposes, but the annexation thereof shall not change or vary the manner in which the board of directors or officers of the district is or are selected.

[Sections 1070.158-1070.200 reserved for expansion]

SUBCHAPTER E.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1070.201.  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;

(7)  the estimated tax rate required; and

(8)  the proposed expenditures and disbursements and the estimated receipts and collections for the following fiscal year.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 6 (part).)

Source Law

Sec. 6.  … The district 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, and the proposed expenditures and disbursements and the estimated receipts and collections for the following fiscal year… .

Revised Law

Sec. 1070.202.  NOTICE; HEARING; ADOPTION OF BUDGET.  (a)  The board shall hold a public hearing on the proposed annual budget.

(b)  At least 10 days before the date of the hearing, notice of the hearing shall be published one time in a newspaper or newspapers that individually or collectively have general circulation in the district.

(c)  Any property taxpayer of the district is entitled to be present and participate at the hearing in accordance with the rules of decorum and procedures prescribed by the board.

(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 62nd Leg., R.S., Ch. 872, 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.  Notice of the budget hearing shall be published in a newspaper or newspapers which individually or collectively provide general circulation in the hospital district.  Any property taxpayer of the district shall have the right to be present and participate in said hearing within such rules of decorum and procedures as may be prescribed by the board.  At the conclusion of the hearing, the budget, as proposed by the district administrator or manager, shall be acted upon 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. 1070.203.  AMENDMENTS TO BUDGET.  The budget may be amended as required by circumstances.  The board must approve all amendments.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 6 (part).)

Source Law

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

Revisor's Note

Section 6, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, 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. 1070.204.  RESTRICTION ON EXPENDITURES.  Money may be spent only for an expense included in the budget or an amendment to the budget.  (Acts 62nd Leg., R.S., Ch. 872, 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. 1070.205.  FISCAL YEAR.  (a)  The district operates according to a fiscal year established by the board.

(b)  The fiscal year may not be changed  more than once in a 24-month period.  (Acts 62nd Leg., R.S., Ch. 872, 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 of the district, provided such fiscal year shall not be changed more often than once in any 24-month period… .

Revised Law

Sec. 1070.206.  AUDIT.  (a)  The board shall have an independent audit made of the district's financial condition for the fiscal year.

(b)  As soon as the audit is completed, the audit shall be filed at the district's office.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 6 (part).)

Source Law

Sec. 6.  … The board shall cause an independent audit to be made of the financial condition of the district, … such audit to be made covering such fiscal year, and the same shall be filed at the office of the district as soon as it is completed… .

Revised Law

Sec. 1070.207.  INSPECTION OF AUDIT AND DISTRICT RECORDS.  The audit and other district records shall be open to inspection at the district's principal office.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 6 (part).)

Source Law

Sec. 6.  … [The board shall cause an independent 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. 1070.208.  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 62nd Leg., R.S., Ch. 872, Sec. 6 (part).)

Source Law

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

Revised Law

Sec. 1070.209.  DEPOSITORY.  (a)  The board shall select one or more banks inside or outside the district to serve as a depository for district money.

(b)  District money, other than money invested as provided by Section 1070.210, 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:

(1)  place a part of district money on time deposit;

(2)  purchase certificates of deposit; or

(3)  make other investments authorized by Chapter 2256, Government Code.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 11.)

Source Law

Sec. 11.  The board of directors of the district shall name one or more banks within, without (either or both), its boundaries to serve as a depository for the funds of the district.  All funds of the district, except those invested as provided in Section 5 of this Act, 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 or make other investments as authorized by Chapter 2256, Government Code.

Revised Law

Sec. 1070.210.  SPENDING AND INVESTMENT RESTRICTIONS.  (a)  Except as otherwise provided by Sections 1070.062, 1070.063, 1070.064, 1070.108(c), and 1070.211 and by Subchapter F, 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 money only in funds or securities specified by Chapter 2256, Government Code.  (Acts 62nd Leg., R.S., Ch. 872, Secs. 5(a) (part), 10 (part).)

Source Law

Sec. 5.  (a)  … in no event shall any operating, depreciation, or building funds be invested in any funds or securities other than those specified in Articles 836 and 837, Revised Statutes, or Chapter 2256, Government Code… .

Sec. 10.  … Except as permitted in the preceding sentence and as permitted by Sections 7, 8, 10A, and 15(d) of this Act, the district may incur no obligation payable from any revenues of the district, taxes or otherwise, except those on hand or to be on hand within the then current and following fiscal year of the district.

Revisor's Note

(1)  Section 5(a), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, refers to investments specified by "Articles 836 and 837, Revised Statutes, or Chapter 2256, Government Code."  Articles 836 and 837 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.  The revised law therefore omits the reference to Articles 836 and 837.

(2)  Section 10, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, states that "[e]xcept as permitted in the preceding sentence and as permitted by Sections 7, 8, 10A, and 15(d) of this Act," the district may not incur certain obligations.  The "preceding sentence" in Section 10 is codified in Section 1070.108(c).  Sections 7 and 8 are codified in Subchapter F.  Section 10A is codified in Sections 1070.062, 1070.063, and 1070.064.  Section 15(d) is codified in Section 1070.211.  The revised law is drafted accordingly.

Revised Law

Sec. 1070.211.  AUTHORITY TO BORROW MONEY; SECURITY.  (a)  The district may borrow money for district operating expenses in an amount not to exceed the amount of tax or other revenue the district expects to receive during the fiscal year in which the money is borrowed.

(b)  To repay the debt, the board may pledge all or part of the tax or other revenue received during the fiscal year in which the board borrows money under this section.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 15(d).)

Source Law

(d)  The district may borrow money to pay the district's operating expenses in an amount not to exceed the amount of taxes or other revenues the district expects to receive during the fiscal year in which the money is borrowed.  The district may pledge all or part of the taxes or other revenues received during that fiscal year to repay the indebtedness.

[Sections 1070.212-1070.250 reserved for expansion]

SUBCHAPTER F.  BONDS

Revised Law

Sec. 1070.251.  OBLIGATIONS AND CREDIT AGREEMENTS.  The district may issue, sell, and deliver obligations and execute corresponding credit agreements in the manner provided by Chapters 1201 and 1371, Government Code.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 8A.)

Source Law

Sec. 8A.  The district may issue, sell, and deliver obligations of the district and execute corresponding credit agreements in the manner provided by Chapter 656, Acts of the 68th Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas Civil Statutes), and the Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes).

Revisor's Note

Section 8A, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, refers to Chapter 656, Acts of the 68th Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas Civil Statutes), and the Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes). Article 717k-6 was codified in 1999 as Chapter 1201, Government Code, and Article 717q was codified in 1999 as Chapter 1371, Government Code.  The revised law is drafted accordingly.

Revised Law

Sec. 1070.252.  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 and ancillary health care purposes.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 7 (part).)

Source Law

Sec. 7.  The board of directors shall have the power and authority to issue and sell its bonds in the name and upon 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 and ancillary health care purposes, and for any or all of such purposes… .

Revisor's Note

Section 7, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, 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 are known as "general obligation bonds," the revised law is drafted accordingly.

Revised Law

Sec. 1070.253.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  At the time general obligation bonds are issued under Section 1070.252, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature.

(b)  The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed the tax rate approved by the voters at the election authorizing the imposition of the tax.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 7 (part).)

Source Law

Sec. 7.  … 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 such tax together with any other taxes levied for said district shall not exceed the rate of tax voted under the provisions of Section 3 of this Act… .

Revisor's Note

(1)  Section 7, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, 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.

(2)  Section 7, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, provides that the tax rate may not exceed "the rate of tax voted under the provisions of Section 3 of this Act."  Section 3 sets out procedures for the district's creation election and requires voter approval of the district's authority to impose taxes. Because the revised law omits Section 3 for the reason stated in the revisor's note at the end of Subchapter A, the revised law substitutes "the tax rate approved by the voters at the election authorizing the imposition of the tax" for the quoted language.

Revised Law

Sec. 1070.254.  GENERAL OBLIGATION BOND ELECTION.  (a)  The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

(b)  The 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;

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

(6)  the maximum maturity of the bonds.

(c)  Notice of a bond election shall be given as provided by Section 1251.003, Government Code.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 7 (part).)

Source Law

Sec. 7.  … Except as provided in Section 8, no bonds shall be issued by such hospital district until authorized by a majority of the electors of the district voting at an election called for such purpose.  The order for bond election shall specify the date of the election, the amount of bonds to be authorized, the maximum maturity thereof, the maximum rate of interest they are to bear, 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 Statutes, and shall be conducted in accordance with the general laws of Texas pertaining to general elections, except as modified by the provisions of this Act.

Revisor's Note

(1)  Section 7, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, states that "[e]xcept as provided in Section 8," the district may not issue bonds without an election.  Section 8, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, authorizes the district to issue refunding bonds and revenue bonds.  Unless it is specifically stated otherwise, refunding bonds and revenue bonds may be issued without holding an election.  Therefore, the revised law specifies that the election requirement applies only to general obligation bonds.

(2)  Section 7, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, 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, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, states that the election "shall be conducted in accordance with the general laws of Texas pertaining to general elections, 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. 1070.255.  REVENUE BONDS.  (a)  The board may issue revenue bonds to:

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

(2)  acquire sites to be used for hospital or ancillary health care 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 or ancillary health care facilities.

(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 62nd Leg., R.S., Ch. 872, Sec. 8(b) (part).)

Source Law

(b)  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 or ancillary health care 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, hospitals, or ancillary health care facilities, and such bonds may be additionally secured by a mortgage or deed of trust lien on any part or all of its properties.  Such 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 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code.

Revised Law

Sec. 1070.256.  REFUNDING BONDS.  (a)  The board may 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 bond applied to the payment of outstanding indebtedness; or

(2)  exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness.  (Acts 62nd Leg., R.S., Ch. 872, Secs. 8(a) (part), (b) (part).)

Source Law

Sec. 8.  (a)  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, … .

(b)  … the board of directors is further authorized … to refund any previously issued revenue bonds … .

Revisor's Note

(1)  Section 8(a), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, provides that refunding bonds must bear interest at the same or a lower rate than the debt refunded unless a savings is shown.  The revised law omits this provision because it has been superseded by the enactment of the maximum interest 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(a) applies to district bonds by application of Section 1204.001, Government Code.  The omitted law reads:

(a)  … provided that if refunding bonds are to be exchanged for a like amount of said outstanding indebtedness, such refunding bonds shall bear interest at the same or lower rate than borne by the debt refunded, unless it is shown mathematically that a saving will result in the total amount of interest to be paid on said refunding bonds, and … .

(2)  Section 8(a), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, 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).  Article 717k was codified in 1999 as part of Chapter 1207, Government Code.  The revised law omits the provision because Chapter 1207, Government Code, applies to the district by its own terms under Section 1207.001, Government Code.  The omitted law reads:

(a)  … provided further that if such 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).

Revised Law

Sec. 1070.257.  MATURITY OF BONDS.  District bonds must mature not later than 40 years after the date of issuance.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 8(c) (part).)

Source Law

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

Revised Law

Sec. 1070.258.  EXECUTION OF BONDS.  (a)  The board president shall execute district bonds in the district's name.

(b)  The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 8(c) (part).)

Source Law

(c)  . . .  Bonds 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), and … .

Revisor's Note

(1)  Section 8(c), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, 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 8(c), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, provides that district bonds must bear interest at a rate not to exceed that provided by Section 2, Chapter 3, Acts of the 61st Legislature, Regular Session, 1969, as amended (Article 717k-2, Vernon's Texas Civil Statutes).  The revised law omits the provision for the reason stated in Revisor's Note (1) to Section 1070.256.  The omitted law reads:

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

(3)  Section 8(c), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, 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 8(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 district bonds by application of Section 1202.001, Government Code.  The omitted law reads:

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

Revised Law

Sec. 1070.259.  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; and

(3)  profits made in the sale of the bonds.  (Acts 62nd Leg., R.S., Ch. 872, 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 872, Acts of the 62nd Legislature, Regular Session, 1971, refers to "any municipality or political subdivision" of this state.  The revised law omits "municipality" for the reason stated in Revisor's Note (2) to Section 1070.102.

Revisor's Note

(End of Subchapter)

(1)  Section 13, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, provides that district bonds are authorized investments for certain entities.  The revised law omits the provision as unnecessary.  As to several of the entities listed, Section 13 has been superseded and impliedly repealed.  Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)).  Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings and loan associations are regulated by Sections 63.002 and 64.001, Finance Code.  As to the remaining entities listed, Section 13 is superseded by Section 1201.041, Government Code, enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes).  Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code.  The revised law omits the reference to sinking funds of this state because it has been superseded by Section 404.024, Government Code (enacted in 1985 as Section 2.014, Treasury Act (Article 4393-1, Vernon's Texas Civil Statutes)), which governs the investment of state funds.  Section 404.024(b)(10), Government Code, authorizes the investment of state funds in obligations of political subdivisions, including hospital districts.  The omitted law reads:

Sec. 13.  All bonds issued hereunder 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, 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 872, Acts of the 62nd Legislature, Regular Session, 1971, provides that district bonds may secure deposits of public funds of this state or political subdivisions of this state.  The revised law omits the provisions as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions.  The omitted law reads:

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

[Sections 1070.260-1070.300 reserved for expansion]

SUBCHAPTER  G. TAXES

Revised Law

Sec. 1070.301.  IMPOSITION OF AD VALOREM TAX.  (a)  The board shall impose a tax on all property in the district subject to district taxation.

(b)  The board shall impose the tax to:

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

(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 necessary sites for the hospital system by purchase, lease, or condemnation.  (Acts 62nd Leg., R.S., Ch. 872, Secs. 12 (part), 15(a) (part).)

Source Law

Sec. 12.  The board of directors shall annually levy a tax … for the purpose of (1) paying the interest on and creating a sinking fund for bonds and other obligations which may be issued or assumed by the hospital district for hospital purposes as herein provided; (2) providing for the operation and maintenance of the hospital district and hospital system; and (3) making further improvements and additions to the hospital system, and the acquisition of necessary sites therefor by purchase, lease or condemnation… .

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

Revised Law

Sec. 1070.302.  TAX RATE.  (a)  The board may impose the tax at a rate not to exceed 50 cents on each $100 valuation of taxable property in the district unless the maximum tax rate is increased as provided by Section 1070.303.

(b)  In setting the tax rate, the board shall consider the income of the district from sources other than taxation.  (Acts 62nd Leg., R.S., Ch. 872, 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 50 cents on the $100 valuation of taxable property situated within the 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 872, Acts of the 62nd Legislature, Regular Session, 1971, requires the board to levy the tax and to certify the tax rate to the tax assessor-collector.  The revised law omits that provision because Section 26.05(a), Tax Code, requires the governing body of a taxing unit to adopt a tax rate for the current tax year and to notify the tax assessor of that rate.  The omitted law reads:

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

Revised Law

Sec. 1070.303.  ELECTION TO INCREASE MAXIMUM TAX RATE.  (a)  The board may order an election to increase the district's maximum tax rate to a rate not to exceed 75 cents on each $100 valuation of taxable property in the district.

(b)  The maximum tax rate may not be increased unless the increase is approved by a majority of the district voters voting in an election held for that purpose.

(c)  An election held under this section must be ordered and notice must be given in the manner provided for a bond election under Subchapter F.

(d)  The election order must state:

(1)  the ballot proposition;

(2)  the proposed maximum tax rate;

(3)  the time of the election;

(4)  the location of the polling places; and

(5)  the presiding judge for each polling place.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 3(d).)

Source Law

(d)  In the event the said district is created, the board of directors shall have authority to call a subsequent election or elections for the purpose of determining whether the maximum rate of tax which may be levied for hospital district purposes shall be increased, but in no event shall the district ever be authorized to levy a tax in excess of 75 cents on the $100 valuation.  Any election to increase the maximum tax shall be called and notice thereof given in the manner provided for the calling of bond elections in Section 7 of this Act, and a majority vote of those participating in the election shall be required to authorize such higher rate of taxation.  The board of directors shall specify the ballot proposition in the election order and shall also specify the proposed maximum rate of tax, the time and place, or places for holding the same, and the presiding judge at each polling place.

Revised Law

Sec. 1070.304.  TAX ASSESSOR-COLLECTOR.  The board may provide for the appointment of a tax assessor-collector for the district or may contract for the assessment and collection of taxes as provided by the Tax Code.  (Acts 62nd Leg., R.S., Ch. 872, Sec. 15(c).)

Source Law

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

Revisor's Note

(End of Subchapter)

(1)  Section 15(a), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, provides that the directors may impose taxes for the entire year in which the district is established.  The revised law omits this 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… .

(2)  Section 15(b), Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, provides that the Tax Code governs the appraisal, assessment, and collection of district taxes.  The revised law omits this provision because Section 1.02, Tax Code, requires all taxing units of government to administer the assessment and collection of an ad valorem tax in conformity with Title 1, Tax Code.  The omitted law reads:

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

Revisor's Note

(End of Chapter)

(1)  Sections 2 and 19, Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971, 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 herein authorized to be created shall take over, and there shall be transferred to it, title to all lands, buildings, improvements, equipment, and choses in action in anywise pertaining to the hospitals or hospital system owned by Hansford County, and any city or town within such county, and thereafter, … . Such district shall assume all outstanding obligations and indebtedness incurred by any city or town within said county or by Hansford County for hospital purposes prior to the creation of said district.

Sec. 19.  … When the district is created and established, the county and all towns and cities located therein shall convey and transfer to the district title to all lands, buildings, improvements and equipment in anywise pertaining to a hospital or hospital system which may be jointly or separately owned by the county or any city or town within said district.  Operating funds and reserves for operating expenses which are on hand and funds which have been budgeted for hospital purposes by 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 said 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 872, Acts of the 62nd Legislature, Regular Session, 1971, 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 said hospital district and to allow such 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 person or 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 who own taxable property which has been duly rendered for taxation separately from those who are qualified electors, and in any election so called a majority vote of the resident qualified property taxpaying voters who own taxable property which has been duly rendered for taxation 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 872, Acts of the 62nd Legislature, Regular Session, 1971, 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 872, Acts of the 62nd Legislature, Regular Session, 1971, 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.

(5)  Chapter 103, Acts of the 57th Legislature, Regular Session, 1961, authorized the creation of hospital districts in Castro, Ochiltree, and Hansford Counties.  Many of the powers and duties set out in Chapter 103 applied to all three of the hospital districts created under that chapter.  In 1999, the legislature enacted Chapter 135, Acts of the 76th Legislature, Regular Session, which amended Chapter 103 to give additional powers and duties to the Castro County Hospital District.  In order to clarify that the new powers and duties only applied to the Castro County Hospital District, the legislature specifically stated that the new powers and duties applied only to that district. The legislature also added references to Ochiltree County Hospital District and Hansford County Hospital District in the existing law to further clarify that the new powers and duties would not apply to those districts.

The Hansford County Hospital District, however, was not created under authority granted by Chapter 103.  That district was created in 1973 under authority granted by Chapter 872, Acts of the 62nd Legislature, Regular Session, 1971.  Since Hansford County Hospital District was created under authority granted by Chapter 872, not Chapter 103, the provisions of Chapter 103 have never applied to the existing Hansford County Hospital District.

Since Chapter 103 (for the Hansford County Hospital District) never applied to the existing district and since the context of the language in the 1999 amendments to Chapter 103 indicates that the legislature did not intend to change the law relating to the Hansford County Hospital District, this chapter does not revise the references to the Hansford County Hospital District contained in the 1999 amendments.