TLC: Special District Local Laws Code Proposed Chapters

80C32(3) RMB

CHAPTER 1026. FARWELL HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 1026.001. 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 Farwell 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. 1026.002. AUTHORITY FOR OPERATION. The Farwell Hospital District operates in accordance with Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties provided by this chapter. (Acts 64th Leg., R.S., Ch. 73, Sec. 1 (part).)

Source Law

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

Revisor's Note

Section 1, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, 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. 1026.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 64th Leg., R.S., Ch. 73, 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. 1026.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of the Farwell Independent School District in Parmer County, Texas, as those boundaries existed on January 1, 1975. (Acts 64th Leg., R.S., Ch. 73, Sec. 1 (part).)

Source Law

Sec. 1. … with boundaries encompassing all territory in Parmer County, Texas, which is situated in the Farwell Independent School District, as the boundaries of said district existed on January 1, 1975, … .

Revised Law

Sec. 1026.005. 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 64th Leg., R.S., Ch. 73, 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 73, Acts of the 64th Legislature, Regular Session, 1975, 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. 1026.006. 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 64th Leg., R.S., Ch. 73, 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. 1026.007. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 64th Leg., R.S., Ch. 73, 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 and 8, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provide procedures for holding an election on the creation of the district and the imposition of an ad valorem tax. Because the creation of the district and the imposition of the tax were approved at the election, the revised law omits the relevant law as executed. The omitted law reads:

Sec. 3. The district shall not be created, nor shall any tax therein be authorized unless and until such creation and such tax are approved by a majority of the qualified taxpaying electors of the area of the proposed district voting at an election called for such purpose. Such election may be called by a majority of the temporary or provisional directors or shall be called by said provisional directors upon presentation of a petition therefor signed by at least 50 qualified taxpaying electors of the area of the proposed district. Such election shall be held not less than 35 nor more than 60 days from the date the election is ordered. The order calling the election shall specify the date, place or places of holding the election, the form of ballot, the presiding judge and alternate judge for each voting place and provide for clerks as in county elections. Notice of election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in the area of the proposed 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. The failure of such election shall not operate to prohibit the calling and holding of subsequent elections for the same purpose.

The form of ballot used at the election on the creation of the district shall be in conformity with Chapter 452, Acts of the 60th Legislature, Regular Session, 1967, so that ballots may be cast "FOR" or "AGAINST" the following proposition: "The creation of Farwell Hospital District, [providing for the levy of a tax not to exceed 75 cents on each $100 valuation] for all hospital district purposes."

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

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

[Sections 1026.008-1026.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Revised Law

Sec. 1026.051. BOARD ELECTION; TERMS. (a) The board consists of nine directors elected from the district at large.

(b) Directors serve staggered two-year terms unless four-year terms are established under Section 285.081, Health and Safety Code. (Acts 64th Leg., R.S., Ch. 73, Sec. 4(c) (part).)

Source Law

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

Revisor's Note

(1) Section 4(c), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, requires each director to take the constitutional oath of office. The revised law omits that provision because Section 1, Article XVI, Texas Constitution, requires all officers to take the oath (or affirmation) before assuming office.

(2) Section 4(c), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, prescribes the procedures for the appointment of temporary directors and for electing the subsequent directors ("Class One" and "Class Two") and establishes the terms of the directors. The revised law omits those provisions as executed but codifies the establishment of a board consisting of nine directors elected from the district at large. Section 4 also establishes staggered two-year terms for the initial elected directors that expire on the first Saturday in April in the first or second year after the election ("Class One" and "Class Two"). The revised law codifies the provision specifying staggered terms but omits the provision relating to the date on which the initial terms expire as executed.

(3) Sections 4(a), (b), and (c), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refer to the appointment and terms of temporary directors on the effective date of this Act. The revised law omits the provisions as executed. Throughout this chapter, the revised law omits references to "temporary" directors as executed. The omitted law reads:

Sec. 4. (a) Upon the effective date of this Act, the following nine persons

	Robert W. Anderson	Caroline L. Anderson
	Maxine Williams	W. T. Perry
	Don Williams	Claude H. Rose, Jr.
	Prentice Mills	Charles Aycock
	James Berry

shall be and are hereby constituted the temporary or provisional directors of said district. Each temporary or provisional director shall subscribe to the constitutional oath of office.

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

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

(4) Section 4(c), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that directors serve two-year terms. Section 285.081, Health and Safety Code, applicable to this hospital district, provides a mechanism by which the governing board of a hospital district, on its own motion, may order that the members are to be elected in even-numbered years to serve staggered four-year terms. The revised law is drafted accordingly and adds a reference to Section 285.081, Health and Safety Code, for the convenience of the reader.

Revised Law

Sec. 1026.052. NOTICE OF ELECTION. At least 30 days before the date of an election of directors, notice of the election shall be published one time in a newspaper or newspapers that individually or collectively have general circulation in the district. (Acts 64th Leg., R.S., Ch. 73, Sec. 4(c) (part).)

Source Law

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

Revised Law

Sec. 1026.053. BALLOT PETITION. A person who wants to have the person's name printed on the ballot as a candidate for director must file with the board secretary a petition requesting that action. The petition must be:

(1) signed by at least 10 qualified taxpaying voters; and

(2) filed at least 30 days before the date of the election. (Acts 64th Leg., R.S., Ch. 73, Sec. 4(c) (part).)

Source Law

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

Revisor's Note

Section 4(c), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refers to a petition signed by 10 "electors." Throughout this chapter, the revised law substitutes "voters" for "electors" because the former is the term used in the Election Code.

Revised Law

Sec. 1026.054. QUALIFICATIONS FOR OFFICE. (a) A person may not be appointed or elected 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;

(2) a district employee; or

(3) a member of the staff of the hospital. (Acts 64th Leg., R.S., Ch. 73, Sec. 4(d).)

Source Law

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

Revised Law

Sec. 1026.055. BOARD VACANCY. If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term. (Acts 64th Leg., R.S., Ch. 73, Sec. 4(c) (part).)

Source Law

Revised Law

Sec. 1026.056. 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 64th Leg., R.S., Ch. 73, Sec. 4(e) (part).)

Source Law

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

Revised Law

Sec. 1026.057. 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 64th Leg., R.S., Ch. 73, Sec. 4(e) (part).)

Source Law

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

Revisor's Note

Section 4(e), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, 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. 1026.058. PETITION TO CHANGE NUMBER OF DIRECTORS. (a) A petition to increase or decrease the number of directors by one or two directors may be presented to the board at any time.

(b) A petition to increase or decrease the number of directors must:

(1) be executed by at least 100 registered voters of the district; and

(2) suggest the number of directors the petitioners believe are required for the orderly administration of district affairs.

(c) Not later than the 90th day after the date a proper petition is presented to the board, the board shall order an election on the question of changing the number of directors to a number not to exceed the number suggested by the petition.

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

(1) the date of the election; and

(2) the location of the polling places.

(e) Notice of the election shall be published as provided by Section 1251.003, Government Code.

(f) The ballot for the election shall be printed to permit voting for or against the proposition: "Providing for an increase (decrease) in the number of directors of the Farwell Hospital District."

(g) If a proposition to increase the number of directors is approved by a majority of the voters participating in the election:

(1) each director in office shall continue to serve for the term for which the director was elected or appointed; and

(2) the board shall appoint any additional directors to serve until the next regular election of directors, at which time a successor shall be elected.

(h) If a proposition to decrease the number of directors is approved by a majority of the voters participating in the election:

(1) the reduction takes effect at the next regular election or election of directors; and

(2) not more than one position may be deleted at each election.

(i) Another election for the same purpose may not be held before the third anniversary of the date of an election under this section. (Acts 64th Leg., R.S., Ch. 73, Sec. 4(f) (part).)

Source Law

(f) A petition asking that the number of directors of the district be increased or decreased to a greater or smaller number may be presented to the directors of the district at any time after the district has been created and established as a result of the election for which provision is made in Section 3 of this Act. Each such petition shall be executed by at least 100 qualified electors of the district, and suggest the number of directors petitioners believe are required for the orderly administration of the affairs of the district. It shall be the duty of the board to order an election on the case of whether the number of directors of the district shall be changed to a number not to exceed the number suggested by the petition, but in no event to exceed a change of more than two directors as the result of any one election. Such election shall be called within 90 days after the presentation of a proper petition and notice thereof shall be published as provided in Article 704, Revised Civil Statutes of Texas, 1925, as amended, and … the order calling the election shall specify the date, place or places of holding the same and provide for election officials as in a county election. The ballots shall be prepared to allow voting for or against the proposition "Providing for an increase (decrease) in the number of directors of the Farwell Hospital District." If a majority of the voters participating in the election shall vote in favor of such proposition, then each director in office shall continue to serve for the term for which he was elected or appointed. The members of the board then existing shall appoint any director to serve until the next regular election for directors, at which time successor or successors in office shall be elected and if the membership of the board is decreased, such reduction shall be effective at the next regular election or election of directors, no more than one position being deleted at each election. 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(f), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refers to a petition signed by "qualified" voters in the district. 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.

(2) Section 4(f), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refers to Article 704, Revised Statutes, which specifies certain notice requirements for an election. That provision was codified in 1999 as Section 1251.003, Government Code. The revised law is drafted accordingly.

(3) Section 4(f), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that an election under that section be conducted in accordance with the general laws of Texas relating to elections except as modified by this Act. The revised law omits the provision 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. The omitted law reads:

(f) … such election shall be conducted in accordance with the general laws of Texas relating to general elections except as modified by the provisions of this Act, … .

Revised Law

Sec. 1026.059. VOTING REQUIREMENT. A concurrence of five directors is sufficient in any matter relating to district business. (Acts 64th Leg., R.S., Ch. 73, Sec. 4(e) (part).)

Source Law

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

Revisor's Note

Section 4(e), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that five 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:

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

Revised Law

Sec. 1026.060. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The board shall appoint a qualified person as district administrator.

(b) The board may appoint an assistant administrator.

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

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

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

(2) contains other conditions the board may require. (Acts 64th Leg., R.S., Ch. 73, Sec. 5 (part).)

Source Law

Sec. 5. … Prior to placing a hospital facility in operation, the board of directors shall appoint a qualified person to be known as the administrator or manager of the hospital district and may in its discretion appoint an assistant to the administrator or manager. Such administrator or manager and assistant administrator or manager, if any, shall serve at the will of the board and shall receive such compensation as may be fixed by the board. The administrator or manager shall, 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

(1) Section 5, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that "[p]rior to placing a hospital facility in operation," the board shall appoint a district administrator or manager. The revised law omits the quoted language as executed.

(2) Section 5, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that the board shall appoint a person as the "administrator or manager" of the district and may appoint an "assistant to the administrator or manager." Throughout this chapter, the revised law omits "manager" because, in context, "manager" is included in the meaning of "administrator."

Revised Law

Sec. 1026.061. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to the limitations prescribed by the board, the district administrator shall:

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

(2) direct the affairs of the district. (Acts 64th Leg., R.S., Ch. 73, Sec. 5 (part).)

Source Law

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

Revised Law

Sec. 1026.062. APPOINTMENT OF STAFF AND EMPLOYEES. (a) The board may appoint to the staff any doctors the board considers necessary for the efficient operation of the district and may make temporary appointments as necessary.

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

(c) The board may delegate to the district administrator the authority to hire district employees, including technicians and nurses. (Acts 64th Leg., R.S., Ch. 73, Secs. 5 (part), 16.)

Source Law

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

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

[Sections 1026.063-1026.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Revised Law

Sec. 1026.101. DISTRICT RESPONSIBILITY. The district has full responsibility for operating all hospital facilities for providing hospital care for the district's needy inhabitants. (Acts 64th Leg., R.S., Ch. 73, Sec. 19 (part).)

Source Law

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

Revisor's Note

Section 19, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that the district "shall assume" full responsibility for operating hospital facilities for providing hospital care for the district's needy inhabitants. The revised law substitutes "has" for the quoted language because the duty to assume the responsibility is executed.

Revised Law

Sec. 1026.102. 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 for district inhabitants. (Acts 64th Leg., R.S., Ch. 73, 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 for inhabitants of the district. …

Revisor's Note

(1) Section 19, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, 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 73, Acts of the 64th Legislature, Regular Session, 1975, 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. 1026.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the hospital system and the district's money and resources. (Acts 64th Leg., R.S., Ch. 73, Sec. 5 (part).)

Source Law

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

Revised Law

Sec. 1026.104. HOSPITAL SYSTEM. (a) The district shall provide for the establishment of a hospital system by:

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

(2) equipping the buildings; and

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

(b) The hospital system may include:

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

(2) outpatient clinics;

(3) dispensaries;

(4) convalescent home facilities;

(5) necessary nurses;

(6) domiciliaries and training centers;

(7) blood banks;

(8) community mental health centers;

(9) research centers or laboratories; and

(10) any other facilities the board considers necessary for hospital or extended medical care. (Acts 64th Leg., R.S., Ch. 73, Secs. 2 (part), 10 (part).)

Source Law

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

Sec. 10. … The hospital system may include domiciliary care and treatment of the sick, wounded, and injured, out-patient clinic or clinics, dispensaries, geriatric domiciliary care and treatment, convalescent home facilities, necessary nurses, domiciliaries, and training centers, blood banks, community mental health centers and research centers or laboratories, or any one or more of such facilities as well as any other facilities deemed necessary for hospital or extended medical care by the directors. …

Revisor's Note

(1) Section 2, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, states that there is no hospital or hospital system owned by Parmer County or any city or town in the district and that the district is not in any other hospital district. This is a transition provision clarifying circumstances relative to the creation of the district, and the revised law therefore omits the provision as executed. The omitted law reads:

Sec. 2. It is hereby found and determined that there is no hospital or hospital system owned by Parmer County or any city or town within the boundaries of the proposed district and … . The area of the proposed district is not included within the boundaries of any other hospital district heretofore established.

(2) Section 10, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, 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. 1026.105. RULES. The board may adopt rules governing the operation of the hospital, the hospital system, and the district's staff and employees. (Acts 64th Leg., R.S., Ch. 73, Sec. 5 (part).)

Source Law

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

Revisor's Note

Section 5, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that the board may "promulgate rules and regulations" to govern the district. The revised law substitutes "adopt" for "promulgate" because the terms are synonymous and the former is more commonly used. The revised law omits "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

Revised Law

Sec. 1026.106. 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 64th Leg., R.S., Ch. 73, 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. 1026.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system.

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

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

(d) The board may sell or otherwise dispose of any property, including equipment, on terms the board finds are in the best interest of the district's inhabitants. (Acts 64th Leg., R.S., Ch. 73, Sec. 10 (part).)

Source Law

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

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

Revisor's Note

(1) Section 10, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, requires the board to determine the buildings required to "establish and maintain" an adequate hospital system. The revised law omits the reference to establishing the hospital system as executed.

(2) Section 10, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refers to "terms and conditions." The revised law omits the reference to "conditions" because "conditions" is included in the meaning of "terms."

(3) Section 10, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refers to "any property, real or personal." The revised law omits the reference to "real or personal" property because under Section 311.005, Government Code (Code Construction Act), "property" means "real and personal property."

Revised Law

Sec. 1026.108. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property located in district territory if the interest is necessary or convenient for the district to exercise a power, right, or privilege conferred by this chapter.

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

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

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

(3) provide a bond for costs or a supersedeas bond on an appeal or writ of error. (Acts 64th Leg., R.S., Ch. 73, Sec. 14.)

Source Law

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

Revisor's Note

(1) Section 14, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, 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 73, Acts of the 64th Legislature, Regular Session, 1975, provides that the district must exercise the power of eminent domain in the manner provided by "the general law with respect to condemnation by counties." The revised law substitutes for the quoted language a reference to Chapter 21, Property Code, because that is the general law governing eminent domain for governmental entities, including counties.

(3) Section 14, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refers to "Paragraph 2 of Article 3268, Revised Civil Statutes of Texas, 1925, as amended." That statute was codified in 1983 as Section 21.021(a), Property Code, and the revised law is drafted accordingly. In addition, throughout this chapter, the revised law omits the references to "as amended" because under Section 311.027, Government Code (Code Construction Act), a reference to a statute applies to all reenactments, revisions, or amendments of that statute unless expressly provided otherwise.

Revised Law

Sec. 1026.109. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directors, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district. (Acts 64th Leg., R.S., Ch. 73, Sec. 18.)

Source Law

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

Revisor's Note

Section 18, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refers to "donations" and "gifts." The revised law omits the reference to "donations" because "donations" is included in the meaning of "gifts."

Revised Law

Sec. 1026.110. CONSTRUCTION CONTRACTS. A construction contract that involves the expenditure of more than $10,000 may be made only after advertising in the manner provided by Chapter 252 and Subchapter C, Chapter 262, Local Government Code. (Acts 64th Leg., R.S., Ch. 73, 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 the Bond and Warrant Law of 1931 (Article 2368a, Vernon's Texas Civil Statutes). …

Revisor's Note

(1) Section 10, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, permits construction contracts involving more than $10,000 only after advertising in the manner provided by the "Bond and Warrant Law of 1931 (Article 2368a, Vernon's Texas Civil Statutes)." Article 2368a was amended by Chapter 641, Acts of the 69th Legislature, Regular Session, 1985, which transferred provisions relating to advertising for bids by counties to the County Purchasing Act (V.A.C.S. Article 2368a.5). The County Purchasing Act was codified in 1987 as Subchapter C, Chapter 262, Local Government Code. The provisions of Article 2368a relating to advertising for bids by municipalities were codified in 1987 as Chapter 252, Local Government Code. The revised law is drafted accordingly.

(2) Section 10, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that the provisions of Article 5160, Revised Statutes, apply to the district's construction contracts in relation to performance and payment bonds. The revised law omits this reference because Article 5160 was codified as Chapter 2253, Government Code, and that chapter applies to hospital districts on its own terms. The omitted law reads:

Sec. 10. … The provisions of Article 5160, Revised Civil Statutes of Texas, 1925, as amended, relating to performance and payment bonds shall apply to construction contracts let by the district. …

Revised Law

Sec. 1026.111. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to a district facility. (Acts 64th Leg., R.S., Ch. 73, Sec. 10 (part).)

Source Law

Sec. 10. … The district, through its board of directors, is further authorized to enter into an operating or management contract with regard to its facilities or a part thereof, or … .

Revised Law

Sec. 1026.112. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT. (a) The board may contract with a county or municipality located outside the district's boundaries for the care and treatment of a sick or injured person of that county or municipality.

(b) The board may contract with this state or a federal agency for the treatment of a sick or injured person. (Acts 64th Leg., R.S., Ch. 73, Sec. 5 (part).)

Source Law

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

Revisor's Note

(1) Section 5, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refers to an "incorporated" municipality. The revised law omits the reference to "incorporated" as unnecessary because under the Local Government Code all municipalities must be incorporated.

(2) Section 5, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refers to the treatment of a "sick, diseased, or injured person." The revised law omits the references to "diseased" because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1026.113. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR INVESTIGATORY OR OTHER SERVICES. The board may contract with a political subdivision or governmental agency for the district to provide investigatory or other services for the medical, hospital, or welfare needs of district inhabitants. (Acts 64th Leg., R.S., Ch. 73, Sec. 5 (part).)

Source Law

Sec. 5. … 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 medical, hospital, or welfare needs of the inhabitants of the district and … .

Revised Law

Sec. 1026.114. 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) Except as otherwise provided by this chapter, if the district administrator determines that the patient or those relatives cannot pay all or part of the costs of the care and treatment in the hospital, the amount of the costs that cannot be paid becomes a charge against the district.

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

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

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

(1) resolve the dispute or doubt; and

(2) issue any appropriate orders.

(f) A final order of the board may be appealed to the district court. The substantial evidence rule applies to the appeal. (Acts 64th Leg., R.S., Ch. 73, Sec. 17.)

Source Law

Sec. 17. When a patient has been admitted to the facilities thereof, the administrator or manager may cause inquiry to be made as to his circumstances and those of the relatives of such patient legally liable for his support. If he finds that such patient or said relatives are able to pay for his care and treatment in whole or in part, an order shall be made directing such patient or said relatives to pay to the hospital district for the care and support of such patient a specified sum per week in proportion to their financial ability. The administrator or manager shall have the power and authority to collect such sums from the estate of the patient or his relatives legally liable for his support in the manner provided by law for collection of expenses in the last illness of a deceased person. Except as provided in Section 5 hereof, if the administrator or manager finds that such patient or said relatives are not able to pay either in whole or in part for his care and treatment in such hospital, same shall become a charge upon the hospital district as to the amount of the inability to pay. Should there be any dispute as to the ability to pay or doubt in the mind of the administrator or manager, the board of directors shall hear and determine same after calling witnesses, and shall make such order or orders as may be proper. Appeals from a final order of the board shall lie to the district court. The substantial evidence rule shall apply.

Revised Law

Sec. 1026.115. REIMBURSEMENT FOR SERVICES. If the district provides care or treatment for a sick or injured person who is not a district resident, the district may collect the reasonable value of the hospital care from a political subdivision responsible for that care. Venue in any court proceeding shall be in Parmer County. (Acts 64th Leg., R.S., Ch. 73, Sec. 5 (part).)

Source Law

Sec. 5. … Where care or treatment is provided by the district for sick, diseased, or injured persons who are not residents of the district the Farwell Hospital District may collect the reasonable value of such hospital care from the political subdivision responsible for such care and venue in any court proceedings shall be in Parmer County.

Revisor's Note

Section 5, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refers to the treatment of a "sick, diseased, or injured person." The revised law omits the references to "diseased" as unnecessary because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1026.116. AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued. (Acts 64th Leg., R.S., Ch. 73, Sec. 5 (part).)

Source Law

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

[Sections 1026.117-1026.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1026.151. BUDGET. (a) The district administrator or, if there is none, the president of the board shall prepare an annual budget for approval by the board.

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

(1) the outstanding obligations of the district;

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

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

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

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

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

(7) the estimated tax rate required. (Acts 64th Leg., R.S., Ch. 73, Sec. 6 (part).)

Source Law

Sec. 6. … The administrator or manager (or if there is none, the president of the board) shall prepare an annual budget for approval by the board of directors. The budget shall also contain a complete financial statement of the district showing all outstanding obligations of the district, the cash on hand to the credit of each and every fund of the district, the funds received from all sources during the previous year, the funds available from all sources during the ensuing year, with balances expected at year end of the year in which the budget is being prepared, and estimated revenues and balances available to cover the proposed budget and the estimated tax rate which will be required. …

Revised Law

Sec. 1026.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The board shall hold a public hearing on the proposed annual budget.

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

(d) At the conclusion of the hearing, the board shall adopt a budget by acting on the proposed budget. The board may make changes in the proposed budget that the board judges to be in the interest of the taxpayers and that the law warrants. (Acts 64th Leg., R.S., Ch. 73, Sec. 6 (part).)

Source Law

Sec. 6. … A public hearing on the annual budget shall be held by the board of directors after notice of such hearing has been published one time at least 10 days before the date set therefor. Any taxpayer of the district shall have the right to be present and participate in said hearing. At the conclusion of the hearing, the budget, as proposed, 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. 1026.153. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. (Acts 64th Leg., R.S., Ch. 73, Sec. 6 (part).)

Source Law

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

Revisor's Note

Section 6, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, states that the board may amend the budget "from time to time." Throughout this subchapter, 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. 1026.154. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the budget or an amendment to the budget. (Acts 64th Leg., R.S., Ch. 73, 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. 1026.155. 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 64th Leg., R.S., Ch. 73, 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. 1026.156. AUDIT. The board shall have an audit made of the district's financial condition. (Acts 64th Leg., R.S., Ch. 73, Sec. 6 (part).)

Source Law

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

Revised Law

Sec. 1026.157. INSPECTION OF AUDIT AND DISTRICT RECORDS. The audit and other district records shall be open to inspection at the district's principal office. (Acts 64th Leg., R.S., Ch. 73, Sec. 6 (part).)

Source Law

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

Revised Law

Sec. 1026.158. FINANCIAL REPORT. As soon as practicable after the close of each fiscal year, the district administrator shall prepare for the board:

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

(2) a complete account of the disbursements of that money. (Acts 64th Leg., R.S., Ch. 73, Sec. 6 (part).)

Source Law

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

Revised Law

Sec. 1026.159. 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 1026.160(b) and money transmitted to a bank for payment of bonds or obligations issued by the district, shall be deposited as received with the depository bank and shall remain on deposit.

(c) This chapter, including Subsection (b), does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit. (Acts 64th Leg., R.S., Ch. 73, Sec. 11.)

Source Law

Sec. 11. The board of directors of the district shall name one or more banks within or without its boundaries to serve as depository for the funds of the district. All funds of the district, except those invested as provided in Section 5 of this Act and those transmitted to a bank or banks of payment for bonds or obligations issued 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 certificate of deposit.

Revised Law

Sec. 1026.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as otherwise provided by Section 1026.107(c) and by Subchapter E, the district may not incur an obligation payable from district revenue other than the revenue on hand or to be on hand in the current and following district fiscal years.

(b) The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code. (Acts 64th Leg., R.S., Ch. 73, Secs. 5 (part), 10 (part).)

Source Law

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

Sec. 10. . . . Except as permitted in the preceding sentence and as permitted by Sections 7, 8, and 9 of this Act, the district may incur no obligation payable from any revenues of the district, tax or otherwise, except those on hand or to be on hand within the then current and following fiscal year of the district.

Revisor's Note

(1) Section 5, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refers to "Article 836 or 837, Revised Civil Statutes of Texas, 1925, as amended." Those articles were impliedly repealed by the enactment of the Public Funds Investment Act of 1987 (Article 842a-2, Vernon's Texas Civil Statutes), which was revised in 1993 as Chapter 2256, Government Code. Chapter 2256 defines "local government" to include hospital districts and applies to the district by its own terms. The revised law therefore substitutes a reference to Chapter 2256, Government Code, for the references to Articles 836 and 837.

(2) Section 10, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, states that "[e]xcept as permitted in the preceding sentence and Sections 7, 8, and 9 of this Act," the district may not incur certain obligations. The "preceding sentence" in Section 10 is codified in Section 1026.107(c). As explained in the revisor's note at the end of Subchapter A, Section 8 is omitted from the revised law as executed. Sections 7 and 9 are codified in Subchapter E. The revised law is drafted accordingly.

[Sections 1026.161-1026.200 reserved for expansion]

SUBCHAPTER E. BONDS

Revised Law

Sec. 1026.201. GENERAL OBLIGATION BONDS. The board may issue and sell general obligation bonds in the name and on the faith and credit of the district for any purpose relating to:

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

(2) equipping buildings or improvements for hospital purposes. (Acts 64th Leg., R.S., Ch. 73, 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 purposes, and for any or all of such purposes… .

Revisor's Note

Section 7, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, 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. 1026.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1026.201, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature.

(b) The tax required by this section may not in any year exceed 75 cents on each $100 valuation of all taxable property in the district. (Acts 64th Leg., R.S., Ch. 73, 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, … the board of directors shall levy an annual tax not to exceed 75 cents on the $100 valuation upon all taxable property situated within the hospital district subject to hospital district taxation… .

Revisor's Note

(1) Section 7, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, 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 73, Acts of the 64th Legislature, Regular Session, 1975, refers to an election on the levy of a tax. The revised law omits the reference as executed. The omitted law reads:

Sec. 7. … after a majority of those persons voting at the election vote for the levy of a tax, [the board of directors shall levy an annual tax] … .

Revised Law

Sec. 1026.203. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

(b) The 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 judge for each polling place;

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

(5) the maximum maturity of the bonds.

(c) Notice of a bond election shall be published in a newspaper as provided by Section 1251.003, Government Code. (Acts 64th Leg., R.S., Ch. 73, Sec. 7 (part).)

Source Law

Sec. 7. . . . No bonds payable from taxation shall be issued by such hospital district, … , until authorized by a majority of the qualified electors of the district who own taxable property therein and who have duly rendered the same for taxation 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 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 published in a newspaper as provided in Article 704, Revised Civil Statutes of Texas, 1925, as amended, and … .

Revisor's Note

(1) Section 7, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refers to a majority vote of the "qualified" voters of the district. The revised law omits "qualified" as unnecessary in this context because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "qualified" voters who are residents of the territory covered by the election to vote in an election.

(2) Section 7, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refers to electors "who own taxable property therein and who have duly rendered the same for taxation." The revised law omits the quoted language because in Hill v. Stone, 421 U.S. 289, 95 S. Ct. 1637 (1975), the United States Supreme Court determined that property ownership as a qualification for voting is an unconstitutional denial of equal protection.

(3) Section 7, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that notice of a bond election under Section 8 must be given as provided under Section 3. As explained in the revisor's note to the end of Subchapter A, Sections 3 and 8 are executed. The revised law therefore omits the provision. The omitted law reads:

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

(4) Section 7, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, 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.

(5) Section 7, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that an election under that section be conducted in accordance with the general laws of Texas pertaining to elections, except as modified by this Act. The revised law omits the provision for reasons stated in Revisor's Note (3) to Section 1026.058. The omitted law reads:

Sec. 7. … shall be conducted in accordance with the general laws of Texas pertaining to general elections, except as modified by the provisions of this Act.

Revised Law

Sec. 1026.204. MATURITY OF GENERAL OBLIGATION BONDS. District general obligation bonds must mature not later than 40 years after the date of issuance. (Acts 64th Leg., R.S., Ch. 73, Sec. 7 (part).)

Source Law

Sec. 7. . . . All bonds shall mature within 40 years of their date, … .

Revised Law

Sec. 1026.205. EXECUTION OF GENERAL OBLIGATION BONDS. (a) The board president shall execute the general obligation bonds in the district's name.

(b) The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code. (Acts 64th Leg., R.S., Ch. 73, Sec. 7 (part).)

Source Law

Sec. 7. … [All 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 503, Acts of the 54th Legislature, Regular Session, 1955 (Article 717j-1, Vernon's Texas Civil Statutes), and … .

Revisor's Note

(1) Section 7, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refers to Article 717j-1, Vernon's Texas Civil Statutes. That statute was codified in 1999 as Chapter 618, Government Code, and the revised law is drafted accordingly.

(2) Section 7, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that district bonds must bear interest at a rate not to exceed the rate permitted by Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes). The revised law omits that provision because the maximum interest rate noted in Chapter 3 was revised in 1999 as Section 1204.006, Government Code, and Section 1204.006 applies to the district on its own terms by application of Section 1204.001, Government Code. The omitted law reads:

Sec. 7. … Bonds of the district shall bear interest at a rate not to exceed the rate permitted by Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), … .

(3) Section 7, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, 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 7 also provides that after approval and registration the bonds are "incontestable for any cause." The revised law omits those provisions as superseded by Chapter 1202, Government Code (enacted as Article 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987). Section 1202.003(a), Government Code, requires bonds to be submitted to the attorney general. Section 1202.003(b), Government Code, provides for approval of the bonds by the attorney general and requires the attorney general to submit the approved bonds to the comptroller for registration. Section 1202.005, Government Code, requires registration of the bonds by the comptroller. Section 1202.006, Government Code, provides that after approval and registration the bonds are incontestable and binding obligations. Chapter 1202, Government Code, applies to district bonds by application of Section 1202.001, Government Code. The omitted law reads:

Sec. 7. … shall be subject to the same requirements in the manner of approval by the Attorney General of Texas and registration by the Comptroller of Public Accounts of the State of Texas as are by law provided for approval and registration of bonds issued by counties. 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. 1026.206. REVENUE BONDS. (a) The board may issue revenue bonds to:

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

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

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

(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 64th Leg., R.S., Ch. 73, Sec. 9 (part).)

Source Law

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

Revisor's Note

Section 9, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refers to Sections 8, 10, 11, 12, and 13 of Chapter 122, Acts of the 58th Legislature, Regular Session, 1963 (Article 4494r, Vernon's Texas Civil Statutes). Those provisions were codified in 1989 as Sections 264.042, 264.043, and 264.046-264.049, Health and Safety Code. The revised law is drafted accordingly.

Revised Law

Sec. 1026.207. REFUNDING BONDS. (a) The board may, without an election, issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding 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 64th Leg., R.S., Ch. 73, Secs. 7 (part), 9 (part).)

Source Law

Sec. 7. … [No bonds payable from taxation shall be issued by such hospital district,] except refunding bonds[, until authorized by a majority of the qualified electors of the district] … .

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

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

Revisor's Note

(1) Section 7, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that the comptroller shall register refunding bonds on cancellation of the bonds to be refunded. The revised law omits the provision as superseded by Section 1207.025(b), Government Code (enacted as Section 2(a), V.A.C.S. Article 717k, as amended by Chapter 783, Acts of the 61st Legislature, Regular Session, 1969). Section 1207.025(b), Government Code, requires the comptroller to register the refunding bonds without cancellation of the bonds to be refunded if the issuer complies with the applicable provisions of Chapter 1207. Chapter 1207, Government Code, applies to district bonds by application of Section 1207.001, Government Code. The omitted law reads:

Sec. 7. … provided that, if refunding bonds are to be exchanged for a like amount of said outstanding indebtedness, the comptroller of public accounts shall register the refunding bonds upon cancellation of the bonds refunded, and … .

(2) Section 7, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, 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 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:

Sec. 7. … 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)… .

(3) Section 7, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that refunding bonds may not bear interest at a rate that exceeds the rate permitted by Chapter 784, Acts of the 61st Legislature, Regular Session, 1969, as amended (Article 717k-3, Vernon's Texas Civil Statutes). The revised law omits the provision because it has been superseded by the enactment of the maximum interest rate provision found in Section 1204.006, Government Code. That section reflects the 1981 amendment of Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes, now Chapter 1204, Government Code), by Section 1, Chapter 61, Acts of the 67th Legislature, Regular Session, 1981, and permits a public agency, including a hospital district, to issue public securities at any net effective interest rate of 15 percent or less. Section 1204.006, Government Code, applies to district bonds by application of Section 1204.001, Government Code. The omitted law reads:

Sec. 7. … except that refunding bonds shall bear interest at a rate not in excess of that permitted by Chapter 784, Acts of the 61st Legislature, Regular Session, 1969 (Article 717-k-3, Vernon's Texas Civil Statutes)… .

Revised Law

Sec. 1026.208. BONDS EXEMPT FROM TAXATION. The following are exempt from taxation by this state or a political subdivision of this state:

(1) bonds issued by the district;

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

(3) profits made in the sale of the bonds. (Acts 64th Leg., R.S., Ch. 73, 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 73, Acts of the 64th Legislature, Regular Session, 1975, refers to "any municipality or political subdivision" of this state. The revised law omits "municipality" because that term is included in the meaning of "political subdivision" of this state.

Revisor's Note

(End of Subchapter)

(1) Section 13, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, 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). While Section 13 lists "guardians" and Section 1201.041 does not, the latter statute includes "fiduciaries" and a guardian is a fiduciary. Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code. The revised law omits the reference to sinking funds of this state because it has been superseded by Section 404.024, Government Code (enacted in 1985 as Section 2.014, Treasury Act (Article 4393-1, Vernon's Texas Civil Statutes)), which governs the investment of state funds. Section 404.024(b)(10), Government Code, authorizes the investment of state funds in obligations of political subdivisions, including hospital districts. The omitted law reads:

Sec. 13. All bonds issued by the district shall be and are hereby declared to be legal and authorized investments of banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, fiduciaries, trustees, guardians, 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 73, Acts of the 64th Legislature, Regular Session, 1975, effectively provides that district bonds may secure deposits of public funds of this state or political subdivisions of this state. The revised law omits the provisions as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions. The omitted law reads:

Sec. 13. … Such bonds 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 1026.209-1026.250 reserved for expansion]

SUBCHAPTER F. TAXES

Revised Law

Sec. 1026.251. IMPOSITION OF AD VALOREM TAX. (a) The board shall impose a tax on all property in the district subject to district taxation.

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

(1) indebtedness issued by the district; and

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

(c) The district may not impose a tax to pay the principal of or interest on revenue bonds issued under this chapter. (Acts 64th Leg., R.S., Ch. 73, Secs. 12 (part), 15(a) (part).)

Source Law

Sec. 12. The board of directors shall annually levy a tax … for the purpose of paying (1) the indebtedness issued by the district, but no tax shall be levied to pay principal or interest on revenue bonds issued under the provisions of Section 9 hereof, and (2) the maintenance and operating expenses of the district… .

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

Revised Law

Sec. 1026.252. TAX RATE. (a) The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district.

(b) In setting the tax rate, the board shall consider the income of the district from sources other than taxation. (Acts 64th Leg., R.S., Ch. 73, Secs. 3 (part), 12 (part).)

Source Law

Sec. 3. … providing for the levy of a tax not to exceed 75 cents on each $100 valuation … .

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 73, Acts of the 64th Legislature, Regular Session, 1975, 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 assessor-collector.

Revised Law

Sec. 1026.253. ASSESSMENT AND COLLECTION BY SCHOOL DISTRICT ASSESSOR-COLLECTOR. (a) This section applies unless the board elects to have taxes assessed and collected under Section 1026.254 or 1026.255.

(b) The tax assessor-collector of the Farwell Independent School District shall assess and collect taxes imposed by the district. (Acts 64th Leg., R.S., Ch. 73, Secs. 15(a) (part), (b) (part).)

Source Law

(b) Under this subsection, … The tax assessor-collector and the board of equalization of Farwell Independent School shall be charged and required to accomplish the equalization, assessment, and collection of all taxes levied by and on behalf of the district. …

Revisor's Note

(1) Sections 15(a) and (b), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refer to the assessment and collection of district taxes on tax values of the Farwell Independent School District. The revised law omits those provisions because they were repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979, which repealed all "general, local, and special laws" that conflicted with that act. The 1979 act enacted the Property Tax Code (Title 1, Tax Code), a comprehensive, substantive codification of property tax law. Title 1, Tax Code, provides the exclusive procedures for the appraisal of property for taxation and the imposition and collection of property taxes by a taxing unit, including a hospital district. The omitted law reads:

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

(b) … district taxes shall be assessed and collected on tax values of the Farwell Independent School within the area of the district in the same manner as provided by law with relation to independent school district taxes. If the independent school district uses 100 percent of the market value of the property as the valuation for tax purposes, the district shall be obligated to use the same percentage, but otherwise may establish its own percentage of true market value as the valuation for hospital district purposes… .

(2) Section 15(b), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refers to "equalization" and a "board of equalization." The revised law omits the quoted language because boards of equalization were abolished and their functions and duties were transferred to appraisal review boards by the 1979 enactment of the Property Tax Code, Title 1, Tax Code (Section 1, Chapter 841, Acts of the 66th Legislature, Regular Session, 1979).

(3) Section 15(b), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that the tax assessor-collector of the Farwell Independent School District may charge a fee for the assessment and collection of district taxes. The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979. See Revisor's Note (1). Section 6.27(c), Tax Code, provides for the compensation of a tax assessor-collector assessing and collecting taxes for another taxing unit. The omitted law reads:

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

(4) Section 15(b), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that interest and penalties on district taxes and discounts are the same as for independent school district taxes. The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979. See Revisor's Note (1). Chapter 33, Tax Code, provides for the assessment of penalties and interest on delinquent taxes, and Section 31.05, Tax Code, provides for discounts on the early payment of taxes. The omitted law reads:

(b) … Interest penalties and discounts on taxes paid to the hospital district shall be the same as in the case of independent school district taxes… .

(5) Section 15(b), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that tax revenue shall be deposited in the district's depository. The revised law omits the provision because Section 31.10, Tax Code, requires the tax assessor-collector of a taxing unit to deposit taxes collected in the unit's depository. The omitted law reads:

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

(6) Section 15(b), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that the bond of the independent school district tax assessor-collector is security for the proper performance of district duties unless the board determines an additional bond is necessary. The revised law omits that provision because it duplicates Section 6.29(b), Tax Code, which authorizes a taxing unit for which the tax assessor-collector for another taxing unit collects a tax to require the collector to post an additional bond. The omitted law reads:

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

(7) Section 15(b), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, states that the tax assessor-collector may act in accordance with state law relating to the assessment, collection, and enforcement of independent school district taxes. The revised law omits that provision as unnecessary. The state law relating to the assessment, collection, and enforcement of all ad valorem taxes is Title 1, Tax Code. Section 1.02, Tax Code, requires all taxing units of government to administer the assessment, collection, and enforcement of taxes in conformity with that title. The omitted law reads:

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

Revised Law

Sec. 1026.254. ASSESSMENT AND COLLECTION BY DISTRICT TAX ASSESSOR-COLLECTOR. (a) The board may elect to have district taxes assessed and collected by a tax assessor-collector appointed by the board. An election under this subsection must be made by December 1 and governs the manner in which taxes are assessed and collected, until changed by a similar resolution.

(b) The district tax assessor-collector must:

(1) reside in the district; and

(2) own real property subject to district taxation.

(1) the term of employment; and

(2) compensation. (Acts 64th Leg., R.S., Ch. 73, Secs. 15(a) (part), (c) (part).)

Source Law

Sec. 15. (a) … [All taxes of the district shall be assessed and collected … as provided in Subsection (b) hereof] unless the directors, by majority vote, elect to have taxes assessed and collected under Subsection (c) or … hereof. Any such election may be made prior to December 1 annually and shall govern the manner in which taxes are thereafter assessed and collected, until changed by a similar resolution. …

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

Revisor's Note

(1) Section 15(c), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, requires the board to set a bond amount of not less than $5,000 as security for the district tax assessor-collector. The revised law omits the provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979. See Revisor's Note (1) to Section 1026.253. Section 6.29(a), Tax Code, authorizes the governing body of a taxing unit, including a hospital district, to require the unit's tax assessor-collector to post bond without limiting the amount. The omitted law reads:

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

(2) Section 15(c), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, states that the board shall appoint a board of equalization and establishes the duties of that board and the tax assessor-collector. The revised law omits the reference to a board of equalization for the reasons stated in Revisor's Note (2) to Section 1026.253. The provisions relating to the duties of the tax assessor-collector are omitted because the Tax Code specifies the duties of a tax assessor-collector. The omitted law reads:

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

(3) Section 15(c), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, refers to the applicability of Title 122, Revised Statutes (Taxation). Before its repeal and recodification, Title 122 was composed of V.A.C.S. Articles 7041-7359a. The relevant parts of those provisions were revised in 1979 as the Property Tax Code, Title 1, Tax Code (Section 1, Chapter 841, Acts of the 66th Legislature, Regular Session, 1979). The revised law omits the provision because Title 1 applies to the district on its own terms. The omitted law reads:

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

Revised Law

Sec. 1026.255. ASSESSMENT AND COLLECTION BY TAX ASSESSOR-COLLECTOR OF ANOTHER POLITICAL SUBDIVISION. (a) The board may elect to have district taxes assessed and collected by the tax assessor-collector of a political subdivision located wholly or partly in the district. An election under this subsection must be made by December 1 and governs the manner in which taxes are assessed and collected, until changed by a similar resolution.

(b) The tax assessor-collector of the political subdivision shall assess and collect the appropriate district taxes in accordance with the board's election under Subsection (a). (Acts 64th Leg., R.S., Ch. 73, Secs. 15(a) (part), (d) (part).)

Source Law

Sec. 15. (a) … [All taxes of the district shall be assessed and collected … as provided in Subsection (b) hereof] unless the directors, by majority vote, elect to have taxes assessed and collected under Subsection … (d) hereof. Any such election may be made prior to December 1 annually and shall govern the manner in which taxes are thereafter assessed and collected, until changed by a similar resolution… .

(d) Under this subsection, taxes shall be assessed and collected by the tax assessor-collector of any political subdivision located wholly or partly within the boundaries of the district… .

Revisor's Note

(1) Section 15(d), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, states that the "tax assessor of a political subdivision and its board of equalization" shall equalize, assess, and collect taxes "in the same manner as taxes are equalized, levied, and assessed for such political subdivision." The revised law omits the reference to equalization and to a board of equalization for the reason stated in Revisor's Note (2) to Section 1026.253. The revised law omits the reference to the manner in which taxes are levied and assessed because those provisions were repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979. See Revisor's Note (1) to Section 1026.253. The omitted law reads:

(d) … The tax assessor of such political subdivision and its board of equalization shall be required to equalize, assess, and collect taxes levied for hospital district purposes in the same manner as taxes are equalized, levied, and assessed for such political subdivision.

(2) Section 15(d), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, states that "the provisions of Subsection (b)" are applicable. The revised law omits that provision because all relevant provisions in Subsection (b) are omitted as repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979, or they duplicate provisions currently in the Tax Code. See Revisor's Notes (1)-(7) to Section 1026.253. The omitted law reads:

(d) … Except as provided in this subsection, the provisions of Subsection (b) of this section shall also be applicable.

Revisor's Note

(End of Subchapter)

Section 15(a), Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides in part that the district may impose taxes for the entire year in which the district is created. The revised law omits that provision as executed. The omitted law reads:

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

Revisor's Note

(End of Chapter)

(1) Section 22, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, 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 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 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 of the qualified electors, including those who own taxable property which has been duly rendered for taxation, shall be required to sustain the proposition.

(2) Section 23, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that the act is severable. The revised law omits that provision because it duplicates Section 311.032, Government Code (Code Construction Act), which provides that a provision of a statute is severable from each other provision of the statute that can be given effect. The omitted law reads:

Sec. 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.

(3) Section 24, Chapter 73, Acts of the 64th Legislature, Regular Session, 1975, provides that public notice of the enactment of the statute was provided in a manner that satisfies the requirements of the Texas Constitution. The revised law omits that provision 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.


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