80C33(3) PEP

 

CHAPTER 1027. FISHER COUNTY HOSPITAL DISTRICT

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 1027.001.  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 Fisher County Hospital District.  (New.)

Revisor's Note

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

Revised Law

Sec. 1027.002.  AUTHORITY FOR OPERATION.  The Fisher County Hospital District operates in accordance with Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties provided by this chapter.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 1 (part).)

Source Law

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

Revisor's Note

Section 1, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, 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, "maintenance" is included in the meaning of "operation."

Revised Law

Sec. 1027.003.  ESSENTIAL PUBLIC FUNCTION.  The district performs an essential public function in carrying out the purposes of this chapter.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 22 (part).)

Source Law

Sec. 22.  In carrying out the purposes of this Act, the district will be performing an essential public function and … .

Revised Law

Sec. 1027.004.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of Fisher County, Texas.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 1 (part).)

Source Law

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

Revised Law

Sec. 1027.005.  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 to the constitution.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 24 (part).)

Source Law

Sec. 24.  … [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 24, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides that the act does not violate the federal or state constitution and requires that action under the act comply with the constitutions.  The revised law omits the reference to the federal constitution because under the Supremacy Clause of the United States Constitution (Clause 2, Article VI), federal law always takes precedence over a state statute.  The revised law also omits the reference to the Texas Constitution because the state cannot modify constitutional requirements by statute.  The omitted law reads:

Sec. 24.  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. 1027.006.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION.  The support or maintenance of the district may not become a charge against or obligation of this state.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 21 (part).)

Source Law

Sec. 21.  The support and maintenance of the hospital district shall never become a charge against or obligation of the State of Texas… .

Revisor's Note

(End of Subchapter)

Sections 3 and 7, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provide procedures for holding an election on the creation of the district and the imposition of an ad valorem tax.  Because the creation of the district and the imposition of the tax were approved at the election, the revised law omits the relevant provisions as executed.  The omitted law reads:

Sec. 3.  (a)  The district shall not be created, nor shall any tax therein be authorized, unless and until such creation and such tax are approved by a majority of the qualified taxpaying electors of the area of the proposed district voting at an election called for that purpose.  Such election shall be called by the County Judge of Fisher County upon presentation of a petition therefor signed by at least 50 qualified taxpaying electors of the area of the proposed district within 60 days of the presentation of said petition to him, or may be called without such petition.  Such election shall be held not less than 35 nor more than 60 days from the date the election is ordered.  The order calling the election shall specify the date, place or places of holding the election, the form of ballot, the presiding judge and alternate judge for each voting place, and provide for clerks as in county elections.  The election order may provide that the entire district shall constitute one election precinct or the county election precincts may be combined for elections.  Notice of election shall be given by publishing a substantial copy of the election order in a newspaper or newspapers which individually or collectively provide general circulation in the county or district once a week for two consecutive weeks, the first publication to appear at least 30 days prior to the date established for the election.  The failure of such election shall not operate to prohibit the calling and holding of subsequent elections for the same purpose; provided, however, that no district election for confirmation can be held within six months of any preceding district election for confirmation, and further provided, if this district is not confirmed within five years after the county judge shall have called the first election, this Act is hereby repealed.

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

(c)  The form of ballot used at the election on the creation of the district shall be in conformity with Sections 61, 62, and 63, Texas Election Code, as amended (Articles 6.05, 6.06, 6.07, Vernon's Texas Election Code), so that ballots must be printed to allow for voting for or against the proposition:

"The creation of Fisher County Hospital District, providing for the levy of a tax not to exceed 75 cents on each $100 valuation upon all taxable property situated within said district subject to hospital district taxation, and providing for the assumption by such district of any and all outstanding bonds and indebtedness heretofore issued for hospital purposes by Fisher County and by any city or town within said county."

Sec. 7.  … provided, however, an election to authorize the issuance of bonds may be held at the same time as the election for which provision is made in Section 3, and in such event notice of a bond election may be given in the manner provided in said Section 3.

[Sections 1027.007-1027.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1027.051.  BOARD ELECTION; TERM.  (a)  The board consists of five directors elected from the district at large unless the board changes the method for electing directors under Section 1027.052.

(b)  Unless four-year terms are established under Section 285.081, Health and Safety Code:

(1)  directors serve staggered two-year terms; and

(2)  three directors are elected in one year and two directors are elected the following year.

(c)  An election shall be held on the uniform election date in May of each year to elect the appropriate number of directors.

(d)  The board shall announce the election results.  (Acts 63rd Leg., R.S., Ch. 448, Secs. 4(a) (part), (c) (part), (f), (i) (part); Acts 64th Leg., R.S., Ch. 313, Sec. 2.)

Source Law

[Acts 63rd Leg., R.S., Ch. 448]

Sec. 4.  (a)  The board shall be composed of five directors, and each director shall serve for a period of two years and until his successor has been duly elected and has qualified… .

(c)  An election of directors shall be held on the first Saturday in May of each year to elect the appropriate number of directors… .

(f)  Except as provided by Section 4A of this Act, all directors shall be elected at-large.

(i)  … the board shall announce the results of the election.

[Acts 64th Leg., R.S., Ch. 313]

Sec. 2.  After the effective date of this Act, the directors of the Fisher County Hospital District shall continue to be elected for staggered terms in the same order as determined after the initial election of directors of the district, with three directors being elected in one year and two directors being elected in the following year.

Revisor's Note

(1)  Section 4(a), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides that directors serve for 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 may, on its own motion, 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.

(2)  Section 4(a), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides that a director serves until the director's successor "has been duly elected and has qualified."  The revised law omits that provision because it duplicates Section 17, Article XVI, Texas Constitution, which provides that an officer in this state is to continue to perform the officer's official duties until a successor has qualified.

(3)  Section 4(c), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, was amended in 1997 to require board elections on the "first Saturday in May."  From 1986 to 2003, Section 41.001, Election Code, provided for a uniform election date for all political subdivisions on the first Saturday in May.  In Chapter 1315, Acts of the 78th Legislature, Regular Session, 2003, the legislature amended Section 41.001 by moving the uniform election date in May to the third Saturday.  In Chapter 1, Acts of the 78th Legislature, 3rd Called Session, 2003, the legislature amended Section 41.001 by moving the uniform election date in May back to the first Saturday.  In Chapter 471, Acts of the 79th Legislature, Regular Session, 2005, the legislature amended Section 41.001 by moving the uniform election date in May to the second Saturday.  The revised law substitutes "uniform election date in May" for "first Saturday in May" to reflect these changes while preserving as closely as possible the legislative intent expressed in the 1997 amendment to Section 4(c) that the election be held on the first Saturday in May, which was at that time the uniform election date in May.

(4)  Sections 4(d) and (i), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, authorize or require the board to take certain actions for a directors' election, including to provide for voting places and to designate their geographical boundaries, to appoint presiding judges and clerks for each voting place, to take actions necessary to combine the election for directors with other local elections, and to canvass the returns of the elections.  Sections 4(d) and (i) were added to Chapter 448 by Section 1, Chapter 313, Acts of the 64th Legislature, Regular Session, 1975.  The revised law omits those provisions as superseded and impliedly repealed by the Election Code (enacted as Chapter 211, Acts of the 69th Legislature, Regular Session, 1985), which includes comprehensive provisions for polling places (Chapter 43), election judges and clerks (Chapter 32), joint elections (Chapter 271), and canvassing elections (Chapter 67).  Section 9, Chapter 211, Acts of the 69th Legislature, Regular Session, 1985, repeals certain specific statutes and "all other general, local, and special laws in conflict with this Act, to the extent of the conflict."  The omitted law reads:

(d)  The board may provide for one or more voting places, and at least 45 days before each election, the board shall designate the geographical boundaries to be served by each voting place.  The board shall appoint presiding judges, assistant presiding judges, and clerks for each voting place, and may take any actions necessary to combine the election for directors with other local elections.

(i)  No later than the first regular meeting of the board following an election for directors, the board shall open the election returns and canvass the result, recording the results from each election place separately in a book kept for that purpose.  After the canvass of the election returns has been made, … .

(5)  Sections 4(e) and (g), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, contain certain statements regarding the applicability of the Election Code.  The revised law omits those statements 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:

(e)  Provisions for absentee voting shall be made in accordance with Article 37, Texas Election Code (Article 5.05, Vernon's Texas Election Code).

(g)  … Except for provisions for the conduct of the election and the returns of the election provided in this Act, the Texas Election Code shall apply to elections for directors.

Revised Law

Sec. 1027.052.  CHANGE IN ELECTION FORMAT.  (a)  On its own initiative or on receipt of a petition signed by a number of district residents equal to at least 10 percent of the district's registered voters, the board by order shall seek input from district residents to determine whether to change the method of electing directors under this chapter to one of the following methods:

(1)  four single-member districts and one at-large member;

(2)  five single-member districts;

(3)  four single-member districts, with each district coextensive with a county commissioner's precinct, and one at-large member; or

(4)  cumulative voting.

(b)  Not later than the 30th day after the date the board enters the order, the board shall establish an advisory committee composed of district residents to advise and assist the board in making the determination required by Subsection (a).  Committee members must represent all segments of the district's population.

(c)  Not later than the 60th day after the date the advisory committee is established, the committee shall hold a public hearing regarding the proposed change in the election format.  Not later than the 30th day after the date the public hearing is held, the committee shall submit a recommendation to the board that includes comments and concerns raised by district residents regarding any proposed change in the election format.

(d)  After reviewing the advisory committee recommendation, the board may adopt an order changing the method by which directors are elected.

(e)  A change in the election format adopted by the board under this section shall be implemented at the next general directors' election for which the change can be implemented consistently with the Election Code and federal law.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 4A.)

Source Law

Sec. 4A.  (a)  On its own initiative or on receipt of a petition that is signed by a number of residents of the district equal to at least 10 percent of the registered voters in the district, the board of directors by order shall seek input from the residents of the district to determine whether to modify the method of electing the board of directors under this Act so that the directors are elected by one of the following election methods:

(1)  four single-member districts and one at-large member;

(2)  five single-member districts;

(3)  four single-member districts, with each district coextensive with a county commissioner's precinct, and one at-large member; or

(4)  cumulative voting.

(b)  Not later than the 30th day after the date on which the board of directors enters an order under Subsection (a) of this section, the board shall establish an advisory committee composed of residents of the district to advise and assist the board in making the determination required by Subsection (a) of this section.  The members of the advisory committee must represent all segments of the population of the district.

(c)  The advisory committee shall hold a public hearing regarding the proposed change in the election format not later than the 60th day after the date on which it is established.  Not later than the 30th day after the date on which the public hearing is held, the advisory committee shall submit a recommendation to the board of directors that includes comments and concerns raised by the residents of the district regarding any proposed change in the election format.

(d)  After reviewing the recommendations of the advisory committee under Subsection (c) of this section, the board of directors may adopt an order changing the method by which the board of directors is elected.

(e)  A modified election format adopted by the board of directors under this section shall be implemented at the next general election for the directors of the district for which the change can be implemented consistently with the Election Code and federal law.

Revisor's Note

Section 4A(a), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, authorizes the board to "modify" the method by which directors are elected under this chapter.  The revised law substitutes "change" for "modify" because the terms are synonymous and the use of "change" results in consistency of the terminology used in this section.

Revised Law

Sec. 1027.053.  NOTICE OF ELECTION.  (a)  At least 35 days before the date of an election of directors, notice of the election shall be published one time in a newspaper of general circulation in the district.

(b)  The election notice shall state:

(1)  the purpose of the election;

(2)  the date of the election; and

(3)  the location of the polling places.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 4(c) (part).)

Source Law

(c)  … Notice of the election shall be published one time in a newspaper of general circulation in the district at least 35 days before the date of an election of directors.  The notice shall state the purpose for which the election is being called and the date of the election and voting places for the election.

Revised Law

Sec. 1027.054.  QUALIFICATIONS FOR OFFICE.  (a)  A person may not serve as a director unless the person is:

(1)  a resident of the district; and

(2)  a qualified voter.

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

(1)  the district administrator; or

(2)  a district employee.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 4(b) (part).)

Source Law

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

Revisor's Note

Section 4(b), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, requires each director to take the constitutional oath of office.  The revised law omits that provision because Section 1, Article XVI, Texas Constitution, requires all officers to take the oath (or affirmation) before assuming office.  The omitted law reads:

(b)  … Each member of the board of directors shall subscribe the constitutional oath of office.

Revised Law

Sec. 1027.055.  BOARD VACANCY.  If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 4(a) (part).)

Source Law

(a)  … Vacancies in office shall be filled for the unexpired term by the remaining members of the board.

Revised Law

Sec. 1027.056.  OFFICERS.  (a)  The board shall elect:

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

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

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

(c)  The board shall fill a vacancy in a board office for the unexpired term.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 4(j) (part).)

Source Law

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

Revised Law

Sec. 1027.057.  COMPENSATION; EXPENSES.  A director or officer serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties.  The expenses must be:

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

(2)  approved by the board.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 4(j) (part).)

Source Law

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

Revisor's Note

Section 4(j), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, requires that approved expenses be reported in the "minute book of the district or other records of the district."  The revised law omits the reference to the "minute book of the district" because the minute book is a district record.

Revised Law

Sec. 1027.058.  VOTING REQUIREMENT.  A concurrence of three directors is sufficient in any matter relating to district business.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 4(j) (part).)

Source Law

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

Revisor's Note

Section 4(j), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides that three directors constitute a quorum.  The revised law omits that provision because it duplicates Section 311.013, Government Code (Code Construction Act), which provides that a quorum of a public body is a majority of the number of members fixed by statute. The omitted law reads:

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

Revised Law

Sec. 1027.059.  DISTRICT ADMINISTRATOR.  (a) The board shall appoint a qualified person as district administrator.

(b)  The district administrator serves at the will of the board and is entitled to the compensation determined by the board.

(c)  On assuming the duties of district administrator, the administrator shall execute a bond payable to the district in an amount set by the board that:

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

(2)  contains other conditions the board may require.

(d)  The cost of the bond is the responsibility of the district.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 5(b) (part).)

Source Law

(b)  The board of directors shall appoint a qualified person to be known as the administrator or manager of the hospital district.  Such administrator or manager 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, conditioned that he shall perform the duties required of him, and containing such other conditions as the board may require.  The cost of the bond is the responsibility of the district… .

Revisor's Note

Section 5(b), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides that the board shall appoint a person as the "administrator or manager" of the district.  Throughout this chapter, the revised law omits the reference to "manager" because that term is included in the meaning of "administrator" and "administrator" is the term used by the district.

Revised Law

Sec. 1027.060.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.  Subject to the limitations prescribed by the board, the district administrator shall:

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

(2)  direct the affairs of the district.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 5(b) (part).)

Source Law

(b)  …  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. 1027.061.  APPOINTMENT AND RECRUITMENT 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 board shall determine the type, number, and location of district employees required to maintain an adequate hospital system.  The board may employ fiscal agents, accountants, architects, attorneys, and other employees the board considers proper.

(c)  The board may delegate to the district administrator the authority to:

(1)  hire district employees, including medical practitioners, technicians, and nurses; and

(2)  incur reasonable and necessary expenses relating to the search, recruitment, and hiring of medical practitioners and district employees, including contracting with a private entity such as a professional recruiting service.  (Acts 63rd Leg., R.S., Ch. 448, Secs. 5(c), 10(a) (part), 17.)

Source Law

[Sec. 5]

(c)  The board of directors shall have the authority to appoint to the staff such doctors as it may deem 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 medical practitioners, technicians, nurses, and employees of the district and to incur reasonable and necessary expenses relating to the search, recruitment, and hiring of medical practitioners and employees for the district, including contracting with a private entity such as a professional recruiting service.

Sec. 10.  (a)  The board of directors is hereby given complete discretion as to the type of employees and … both as to number and location, … required to … maintain an adequate hospital system.

Sec. 17.  The board of directors may employ fiscal agents, accountants, architects, and attorneys as it may consider proper.

Revisor's Note

(End of Subchapter)

(1)  Section 4(g), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, states that a person must file a ballot application with the board president or secretary to be a candidate for director and prescribes a deadline for filing the application.  The revised law omits the requirement to file the application with the board secretary because it duplicates Sections 144.003 and 144.004, Election Code.  The revised law omits the filing deadline because it is superseded by Section 144.005, Election Code.  Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state.  The omitted law reads:

(g)  Any person desiring his name to be printed on the ballot as a candidate for director shall file an application with the president or secretary of the board at least 30 days prior to the election… .

(2)  Section 4(h), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, requires candidates for election to the board to file with the board president a statement of campaign contributions and all expenditures made by or for the candidate not later than 21 days after the date of the election. Section 4(h) was added to Chapter 448 by Section 1, Chapter 313, Acts of the 64th Legislature, Regular Session, 1975.  The revised law omits that provision as superseded and impliedly repealed by Chapter 251, Election Code, as enacted by Chapter 211, Acts of the 69th Legislature, Regular Session, 1985.  The relevant provisions of Chapter 251 were moved to Chapter 254, Election Code, by Chapter 899, Acts of the 70th Legislature, Regular Session, 1987.  Chapter 254, Election Code, requires candidates for public office to maintain certain records of reportable activity, including campaign contributions and political expenditures, establishes certain filing deadlines for reports of contributions and expenditures, and prescribes the officer with whom those reports must be filed.  Section 1.002, Election Code, provides that the Election Code supersedes a conflicting statute outside that code unless otherwise expressly provided.  Section 4(h) also states that a candidate is not required to appoint a campaign manager.  The revised law omits that provision because the statutes do not contain any provision that would otherwise require a candidate to appoint a campaign manager.  The omitted law reads:

(h)  Candidates for election to the board shall be required to file only one statement of campaign contributions received and all expenditures made by or on behalf of such candidate not later than 21 days after the date of the election.  The statement shall be filed with the president of the board.  No candidate is required to appoint a campaign manager.

[Sections 1027.062-1027.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1027.101.  DISTRICT RESPONSIBILITY AND AUTHORITY.  The district has full responsibility for:

(1)  operating hospital facilities and furnishing medical and hospital care for the district's needy residents; and

(2)  providing hospital care for the district's indigent residents.  (Acts 63rd Leg., R.S., Ch. 448, Secs. 2 (part), 20 (part).)

Source Law

Sec. 2.  … The district has full responsibility for operating hospital facilities and for furnishing medical care and hospital care for the district's needy residents… .

Sec. 20.  … The said hospital district shall assume full responsibility for providing hospital care for the indigents residing within the district… .

Revisor's Note

Section 20, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, states that the district "shall assume" full responsibility for operating hospital facilities and providing care for the district's indigent residents.  The revised law substitutes "has" for "shall assume" because the duty to assume the responsibility is executed. 

Revised Law

Sec. 1027.102.  RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT.  A political subdivision located within the district may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 20 (part).)

Source Law

Sec. 20.  After creation of the hospital district, no municipality or political subdivision within the boundaries of the district shall have the power to levy taxes or issue bonds or other obligations for hospital purposes or for providing medical care… .

Revisor's Note

(1)  Section 20, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides that "[a]fter creation of the hospital district," certain political subdivisions may not levy taxes or issue bonds.  The revised law omits the quoted language as executed.  In addition, the revised law substitutes "impose" for "levy" because, in this context, the terms are synonymous and the former is more commonly used.

(2)  Section 20, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, 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. 1027.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  (a)  The board shall manage, control, and administer the hospital system and the district's money and resources.

(b)  Unless specifically stated otherwise in this chapter, the board has the power to do anything which, in their opinion, is necessary for the good maintenance, operation, and welfare of the district and the district's employees, patients, and property.  (Acts 63rd Leg., R.S., Ch. 448, Secs. 5(a) (part), 21 (part).)

Source Law

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

Sec. 21.  … Unless specifically stated otherwise in this Act, the board of directors shall have any and all power and authority to do any and all things which, in their opinion, are necessary for the good maintenance, operation, and welfare of the hospital district, its employees, patients, and property.

Revised Law

Sec. 1027.104.  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)  facilities for domiciliary care of the sick, injured, or geriatric;

(2)  facilities for outpatient clinics;

(3)  dispensaries;

(4)  convalescent home facilities;

(5)  necessary nurses' domiciliaries and training centers;

(6)  blood banks;

(7)  research centers and laboratories; and

(8)  ambulance and other facilities or services the board considers necessary for hospital care.  (Acts 63rd Leg., R.S., Ch. 448, Secs. 2 (part), 10(a) (part).)

Source Law

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

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

Revisor's Note

Section 10, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, refers to the care of the "sick, wounded, and injured."  The revised law omits the reference to "wounded" because that term is included in the meaning of "injured."

Revised Law

Sec. 1027.105.  RULES.  The board may adopt rules governing the operation of the hospital, the hospital system, and the district's staff and employees.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 5(a) (part).)

Source Law

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

Revisor's Note

Section 5(a), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides that the board may "promulgate rules and regulations" to govern the district.  The revised law substitutes "adopt" for "promulgate" because the terms are synonymous and the former is more commonly used.  The revised law omits "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

Revised Law

Sec. 1027.106.  PURCHASING AND ACCOUNTING PROCEDURES.  The board may prescribe:

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

(2)  all accounting and control procedures.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 11 (part).)

Source Law

Sec. 11.  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. 1027.107.  PROVISION OF CERTAIN HEALTH SERVICES.  In the geographic service area designated by the board, the district may operate or provide for:

(1)  the operation of a mobile emergency medical service; and

(2)  home health services, long-term care services, skilled nursing care services, intermediate nursing care services, assisted living services, hospice care, or other health-related services.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 2 (part).)

Source Law

Sec. 2.  … In the geographic service area designated by the board of directors, the district may operate or provide for:

(1)  the operation of a mobile emergency medical service; and

(2)  home health services, long-term care services, skilled nursing care services, intermediate nursing care services, assisted living services, hospice care, or other health-related services.

Revised Law

Sec. 1027.108.  DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.  (a)  The board shall determine the type of equipment and the type, number, and location of buildings required to maintain an adequate hospital system.

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

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

(d)  The district may sell or otherwise dispose of any property, including equipment, on terms the board finds are in the best interest of the district's inhabitants.  The board may not sell or dispose of any real property unless the board affirmatively finds that the real property is not needed for the operation of the hospital system.  (Acts 63rd Leg., R.S., Ch. 448, Secs. 10(a) (part), (b) (part), 11 (part).)

Source Law

Sec. 10.  (a)  The board of directors is hereby given complete discretion as to the type of … buildings, both as to number and location, and equipment required to establish and maintain an adequate hospital system… .

(b)  The district, through its board of directors, … may lease all or part of the 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 or equipment of any nature upon terms and conditions found by the board to be in the best interest of its inhabitants; provided, however, that in no event shall the board be authorized to sell or dispose of any real property unless the board affirmatively finds that the same is not needed for the operation of the hospital system.

Sec. 11.  … The district may acquire equipment for use in its hospital system and mortgage or pledge the property so acquired as security for the payment of the purchase price, but any such contract shall provide for the entire obligation of the district to be retired within five years from the date of the contract… .

Revisor's Note

(1)  Section 10(a), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, requires the board to determine the buildings and equipment 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(b), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, refers to "terms and conditions."  The revised law omits the reference to "conditions" because "conditions" is included in the meaning of "terms."

Revised Law

Sec. 1027.109.  EMINENT DOMAIN.  (a)  The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property located in district territory if the interest is necessary for the district to exercise a power, right, or privilege conferred by this chapter.

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

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

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

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

(3)  provide a bond for costs or a supersedeas bond on an appeal or writ of error.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 15.)

Source Law

Sec. 15.  The district shall have the right and power of eminent domain for the purpose of acquiring by condemnation any and all property of any kind and character in fee simple, or any lesser interest therein, within the boundaries of the district necessary to the powers, rights, and privileges conferred by this Act, in the manner provided by Chapter 21, Property Code, but the district is not required to deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code.  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

Section 15, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides that the district has the "right and power of eminent domain for the purpose of acquiring [property] by condemnation."  The revised law substitutes for the quoted language "may exercise the power of eminent domain to acquire [property]" because the phrases have the same meaning, and the latter phrase is consistent with modern usage in laws relating to eminent domain.

Revised Law

Sec. 1027.110.  GIFTS AND ENDOWMENTS.  The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objective of the district.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 19.)

Source Law

Sec. 19.  The board of directors of the hospital district is authorized on behalf of such district to accept donations, gifts, and endowments, in addition to any heretofore made to Fisher County for hospital purposes, to be held in trust and administered by the board of directors for such purposes and under such directions, limitations, and provisions as may be prescribed in writing by the donor not inconsistent with proper management and objective of the hospital district.

Revisor's Note

(1)  Section 19, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, refers to "donations" and "gifts."  The revised law omits the reference to "donations" because "donations" is included in the meaning of "gifts."

(2)  Section 19, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, authorizes the board to accept gifts and endowments "in addition to any heretofore made to Fisher County for hospital purposes."  The revised law omits the quoted language as executed.

Revised Law

Sec. 1027.111.  CONSTRUCTION CONTRACTS.  A construction contract that involves the expenditure of more than $10,000 may be made only after advertising in the manner provided by Chapter 252, Local Government Code.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 11 (part).)

Source Law

Sec. 11.  …  All contracts for construction involving the expenditure of more than $10,000 may be made only after advertising in the manner provided by Chapter 252, Local Government Code… .

Revisor's Note

Section 11, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides that Chapter 2253, Government Code, applies to the district's construction contracts in relation to performance and payment bonds.  The revised law omits the reference to Chapter 2253, Government Code, because that chapter applies to the district on its own terms.  The omitted law reads:

Sec. 11.  …  The provisions of Chapter 2253, Government Code, relating to performance and payment bonds, shall apply to construction contracts let by the district… .

Revised Law

Sec. 1027.112.  OPERATING AND MANAGEMENT CONTRACTS.  The board may enter into an operating or management contract relating to a district facility.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 10(b) (part).)

Source Law

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

Revised Law

Sec. 1027.113.  CONTRACTS FOR CARE AND TREATMENT.  (a)  The board may contract with a political subdivision of this state or a public or private hospital, private corporation, partnership, or cooperative, located inside or outside the district, for the care and treatment of a sick or injured person of the political subdivision.

(b)  The board may contract with this state or a federal agency for the treatment of a sick or injured person.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 5(d) (part).)

Source Law

(d)  Such board … shall be authorized to contract with any municipality, county, special district, or other political subdivision of the state, or a public or private hospital, private corporation, partnership, or cooperative, located inside or outside its boundaries for the care and treatment of the sick, diseased, or injured persons of any such county, municipality, special district, or political subdivision, and shall have the authority to contract with the State of Texas or agencies of the federal government for the treatment of the sick, diseased, or injured persons.

Revisor's Note

(1)  Section 5(d), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, refers to a "municipality, county, special district, or other political subdivision of the state."  The revised law omits the references to "municipality," "county," and "special district" because in this context those terms are included in the meaning of "political subdivision of the state."

(2)  Section 5(d), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, refers to the treatment of "sick, diseased, or injured" persons.  The revised law omits the references to "diseased" because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1027.114.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR INVESTIGATORY OR OTHER SERVICES.  The board may contract with a political subdivision or governmental agency for the district to provide investigatory or other services for the medical, hospital, or welfare needs of district inhabitants.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 5(d) (part).)

Source Law

(d)  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. 1027.115.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient who resides in the district is admitted to a district facility, the district administrator may have an inquiry made into the circumstances of:

(1)  the patient; and

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

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

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

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

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

(1)  resolve the dispute or doubt; and

(2)  issue any appropriate orders.

(f)  The final order of the board may be appealed to the district court. The substantial evidence rule applies to the appeal.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 18.)

Source Law

Sec. 18.  Whenever a patient residing within the district has been admitted to the facilities thereof, the administrator or manager may cause inquiry to be made as to his circumstances and those of the relatives of 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 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 power and authority to collect such sums from the estate of the patient or his relatives legally liable for his support in the manner provided by law for collection of expenses in the last illness of a deceased person.  If the administrator or manager finds that 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 the final order of the board shall lie to the district court.  The substantial evidence rule shall apply.

Revised Law

Sec. 1027.116.  AUTHORITY TO SUE AND BE SUED.  The district, through the board, may sue and be sued.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 5(a) (part).)

Source Law

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

Revised Law

Sec. 1027.117.  AUTHORITY TO PROVIDE HEALTH CARE SERVICES.  (a)  In this section, "health care services" includes:

(1)  home health care services;

(2)  respiratory or physical therapy services;

(3)  mobile emergency medical services; and

(4)  clinic services.

(b)  This chapter does not limit the district in providing health care services to any ill or injured person, regardless of whether the person is a district resident.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 5(e).)

Source Law

(e)  This Act does not limit or prohibit the district from providing health care services to any ill or injured person, regardless of whether the person is a resident of the district.  For purposes of this subsection, "health care service" includes home health care services, respiratory or physical therapy services, mobile emergency medical services, and clinic services.

Revisor's Note

Section 5(e), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, states that the act does not "limit or prohibit" the district from providing certain health care services.  The revised law omits the reference to "prohibit" because that term is included in the meaning of "limit."

[Sections 1027.118-1027.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1027.151.  BUDGET.  (a)  The district administrator shall prepare an annual budget for approval by the board.

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

(1)  the outstanding obligations of the district;

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

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

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

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

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

(7)  the estimated tax rate required.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 6(a) (part).)

Source Law

(a)  … The administrator or manager shall prepare an annual budget for approval by the board of directors.  The proposed budget must contain a complete financial statement of the district that includes:

(1)  the outstanding obligations of the district;

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

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

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

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

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

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

Revised Law

Sec. 1027.152.  NOTICE; HEARING; ADOPTION OF BUDGET.  (a)  The board shall hold a public hearing on the proposed annual budget.

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

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

(d)  At the conclusion of the hearing, the board shall adopt a final budget by acting on the budget proposed by the district administrator.  The board may make any changes in the proposed budget that the board judges to be in the interests of the taxpayers and that the law warrants.  (Acts 63rd Leg., R.S., Ch. 448, Secs. 6(b), (c) (part).)

Source Law

(b)  A public hearing on the annual budget shall be held by the board of directors after notice of such hearing has been published one time at least 10 days before the date set therefor.  Notice of the budget hearing shall be published in a newspaper or newspapers which individually or collectively provide general circulation in the hospital district.  Any property taxpayer of the district shall have the right to be present and participate in said hearing within such rules of decorum and procedures as may be prescribed by the board.  At the conclusion of the hearing, the budget, as proposed by the administrator, shall be acted upon by the board of directors, and as modified or approved, such budget shall become final.

(c)  The board of directors shall have authority to make changes in the budget as in their judgment the law warrants and the interest of the taxpayer demands… . the budget and … shall be approved by the board of directors… .

Revised Law

Sec. 1027.153.  AMENDMENTS TO BUDGET.  The budget may be amended as required by circumstances.  The board must approve all amendments.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 6(c) (part).)

Source Law

(c)  … The annual budget may be amended as the circumstances require but … amendments shall be approved by the board of directors… .

Revised Law

Sec. 1027.154.  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 63rd Leg., R.S., Ch. 448, Sec. 6(a) (part).)

Source Law

Sec. 6.  (a)  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… .

Revisor's Note

Section 6(a), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, states that the district operates on the fiscal year established by the board "from time to time."  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. 1027.155.  AUDIT.  (a)  The board shall have an independent audit made of the district's financial condition for the fiscal year.

(b)  As soon as it is completed, the audit shall be filed at the district's office.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 6(a) (part).)

Source Law

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

Revised Law

Sec. 1027.156.  INSPECTION OF AUDIT AND DISTRICT RECORDS.  The audit and other district records shall be open to inspection at the district's principal office.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 6(a) (part).)

Source Law

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

Revised Law

Sec. 1027.157.  FINANCIAL REPORT.  As soon as practicable after the close of each fiscal year, the district administrator shall prepare for the board:

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

(2)  a complete account of the disbursements of that money.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 6(c) (part).)

Source Law

(c)  … 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 disbursement of same.

Revised Law

Sec. 1027.158.  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 1027.159(b), and money transmitted to a bank for payment of bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and shall remain on deposit.

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

(d)  The district may not deposit money with a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation unless the bank first executes a bond or other security in an amount sufficient to secure from loss the district money that exceeds the amount secured by the Federal Deposit Insurance Corporation.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 12.)

Source Law

Sec. 12.  The board of directors of the district shall name one or more banks within or without, either or both, 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 or assumed by the district, shall be deposited as received with the depository bank and shall remain on deposit, provided that nothing herein shall limit the power of the board to place a portion of such funds on time deposit or purchase certificates of deposit.  Before the district deposits the district's funds in a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation, the bank must execute a bond or other security in an amount sufficient to secure from loss the district funds that exceed the amount secured by the Federal Deposit Insurance Corporation.

Revised Law

Sec. 1027.159.  SPENDING AND INVESTMENT RESTRICTIONS.  (a)  Except as otherwise provided by Section 1027.108(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 fund reserves only in funds or securities specified by Chapter 2256, Government Code.  (Acts 63rd Leg., R.S., Ch. 448, Secs. 5(a) (part), 11 (part).)

Source Law

Sec. 5.  (a)  … 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. 11.  … Except as permitted in the preceding sentence and as permitted by Sections 7 and 8 of this Act, the board may not incur any obligation payable from any revenues of the district, taxes or otherwise, except from funds on hand or to be on hand within the then current and following fiscal year of the district.

Revisor's Note

(1)  Section 5(a), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, refers to "Articles 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.  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.

(2)  Section 11, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, states that "[e]xcept as permitted in the preceding sentence and as permitted by Sections 7 and 8 of this Act," the board may not incur certain obligations.  The "preceding sentence" in Section 11 is codified in Section 1027.108(c).  Sections 7 and 8 are codified in Subchapter E.  The revised law is drafted accordingly.

Revised Law

Sec. 1027.160.  AUTHORITY TO BORROW MONEY IN EMERGENCY; SECURITY.  (a)  The board may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time the loan is made if the board declares that:

(1)  money is not available to meet authorized obligations of the district; and

(2)  an emergency exists.

(b)  To secure a loan, the board may pledge:

(1)  district revenue that is not pledged to pay the district's bonded indebtedness;

(2)  district taxes to be imposed by the district during the 12-month period following the date of the pledge that are not pledged to pay the principal of or interest on district bonds; or

(3)  district bonds that have been authorized but not sold.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 17A.)

Source Law

Sec. 17A.  (a)  If the board of directors of the district declares that funds are not available to meet lawfully authorized obligations of the district and that an emergency exists, the board may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time the loan is made.

(b)  To secure a loan, the board of directors may pledge:

(1)  revenues of the district that are not pledged to pay bonded indebtedness of the district;

(2)  district taxes to be imposed by the district during the 12-month period following the date of the pledge that are not pledged to pay the principal of or interest on district bonds; or

(3)  district bonds that have been authorized but not sold.

Revisor's Note

Section 17A(a), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, refers to "lawfully authorized obligations."  The revised law omits "lawfully" because a "lawful" obligation is included in the meaning of an "authorized" obligation.

[Sections 1027.161-1027.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Revised Law

Sec. 1027.201.  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 designed to provide, improve, or expand the district's health care services, including:

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

(2)  equipping buildings or improvements for hospital purposes; and

(3)  the acquisition and operation of a mobile emergency medical service.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 7 (part).)

Source Law

Sec. 7.  The board of directors shall have the power and authority to issue and sell 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, the acquisition and operation of a mobile emergency medical service, and for any or all purposes designed to provide, improve, or expand the health care services of the district… .

Revisor's Note

Section 7, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides that the board has the power and authority to issue and sell bonds in the name and on the faith and credit of the district.  Because the bonds described by Section 7 are known as "general obligation bonds," the revised law is drafted accordingly.

Revised Law

Sec. 1027.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  At the time general obligation bonds are issued by the district under Section 1027.201, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature.

(b)  The tax required by this section together with any other tax the district imposes may not in any year exceed the tax rate approved by the voters at the election authorizing the imposition of the tax.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 7 (part).)

Source Law

Sec. 7.  …  At the time of the issuance of any bonds, except those for which provision is made in Section 8, a tax shall be levied by the board sufficient to create an interest and sinking fund to pay the interest on and principal thereon as same mature, providing such tax together with any other taxes levied for said district shall not exceed the rate of tax voted under the provisions of Section 3 of this Act… .

Revisor's Note

(1)  Section 7, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, requires the district to levy a tax to pay the principal of and interest on bonds.  The revised law specifies that the tax is an "ad valorem" tax because it is clear from the source law that the tax is a property tax and "ad valorem" is the term most commonly used to refer to a property tax.

(2)  Section 7, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, refers to the issuance of "any bonds, except those for which provision is made in Section 8."  Section 8, revised in Sections 1027.204 and 1027.205, provides for revenue bonds and refunding bonds.  The only remaining bonds issued by the district are general obligation bonds.  For clarity and simplicity, the revised law substitutes for the quoted language a reference to "general obligation bonds."  See also the revisor's note to Section 1027.201.

(3)  Section 7, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides that the tax rate may not exceed "the rate of tax voted under the provisions of Section 3 of this Act."  Section 3 sets out procedures for the district's creation election and requires voter approval of the district's authority to impose taxes.  Because the revised law omits Section 3 for the reason stated in the revisor's note at the end of Subchapter A, the revised law substitutes "the tax rate approved by the voters at the election authorizing the imposition of the tax" for the quoted language.

Revised Law

Sec. 1027.203.  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 judges for each polling place;

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

(5)  the maximum maturity of the bonds; and

(6)  the maximum interest rate of the bonds.

(c)  Notice of a bond election shall be given as provided by Section 1251.003, Government Code.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 7 (part).)

Source Law

Sec. 7.  … Except as provided in Section 8, no bonds shall be issued by or on behalf of 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 maximum rate of interest they are to bear, the place or places where the election shall be held, the presiding judge and alternate judge for each voting place, and provide for clerks as in county elections.  Notice of any bond election shall be given as provided in Article 704, Revised Civil Statutes of Texas, 1925, as amended, and shall be conducted in accordance with the Election Code, except as modified by the provisions of this Act; … .

Revisor's Note

(1)  Section 7, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, states that "[e]xcept as provided in Section 8," the district may not issue bonds without an election.  Section 8, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, authorizes the district to issue refunding bonds and revenue bonds.  Unless it is specifically stated otherwise, refunding bonds and revenue bonds may be issued without holding an election.  Therefore, the revised law specifies that the election requirement applies only to general obligation bonds.

(2)  Section 7, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, refers to a majority of the "qualified electors."  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.  The revised law substitutes "voter" for "elector" because the former is the term used in the Election Code.

(3)  Section 7, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, 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.

(4)  Section 7, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, refers to Article 704, Revised Statutes, which specifies certain notice requirements for a bond election.  That provision was codified in 1999 as Section 1251.003, Government Code.  The revised law is drafted accordingly.

(5)  Section 7, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, states that an election under Section 7 "shall be conducted in accordance with the Election Code, except as modified by the provisions of this Act."  The revised law omits the quoted language for the reason stated in Revisor's Note (5) to Section 1027.051.

Revised Law

Sec. 1027.204.  REVENUE BONDS.  (a)  The board may issue revenue bonds to:

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

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

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

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

(d)  The bonds must be issued in the manner and in accordance with the procedures and requirements prescribed by Sections 264.042, 264.043, and 264.046-264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 8(b) (part).)

Source Law

(b)  In addition to the power to issue bonds payable from taxes levied by the district, as contemplated by the preceding section, said board is further authorized to issue … revenue bonds for purchasing, constructing, acquiring, repairing, equipping, or renovating buildings and improvements for hospital purposes, and for acquiring sites therefor, such bonds to be payable from and secured by a pledge of all or any part of the revenues of the district to be derived from the operation of its hospital or hospitals, and such bonds may be additionally secured by a mortgage or deed of trust lien on any part or all of its properties.  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, 10, 11, 12, and 13, Chapter 122, Acts of the 58th Legislature, 1963 (Article 4494r, Vernon's Texas Civil Statutes).

Revisor's Note

Section 8(b), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, refers to Sections 8, 10, 11, 12, and 13, Chapter 122, Acts of the 58th Legislature, 1963 (Article 4494r, Vernon's Texas Civil Statutes).  Those provisions were codified in 1989 as Sections 264.042, 264.043, and 264.046-264.049, Health and Safety Code.  The revised law is drafted accordingly.

Revised Law

Sec. 1027.205.  REFUNDING BONDS. (a)  The board may issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.

(b)  A refunding bond may be:

(1)  sold, with the proceeds of the refunding bonds 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 63rd Leg., R.S., Ch. 448, Secs. 8(a) (part), (b) (part).)

Source Law

Sec. 8.  (a)  Refunding bonds may be issued by the board of directors for the purpose of refunding and paying off any outstanding indebtedness it has issued or assumed.  Such refunding bonds may be sold and the proceeds thereof applied to the payment of outstanding indebtedness, or may be exchanged in whole or in part for not less than a like principal amount of such outstanding indebtedness… .

(b)  … said board is further authorized to issue and to refund any previously issued revenue bonds … .

Revisor's Note

(1)  Section 8(a), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides that refunding bonds sold to pay outstanding indebtedness must be issued and payments made in the manner specified by Chapter 503, Acts of the 54th Legislature, 1955, as amended (Article 717k, Vernon's Texas Civil Statutes).  Article 717k was codified in 1999 as part of Chapter 1207, Government Code.  The revised law omits the provision because Chapter 1207, Government Code, applies to the district by its own terms under Section 1207.001, Government Code.  The omitted law reads:

(a)  …  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)… .

(2)  Section 8(a), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, 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:

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

Revised Law

Sec. 1027.206.  MATURITY OF BONDS.  District bonds must mature not later than 40 years after the date of issuance.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 9 (part).)

Source Law

Sec. 9.  Bonds of the district shall mature within 40 years of their date and … .

Revised Law

Sec. 1027.207.  EXECUTION OF BONDS.  (a)  The board president shall execute district bonds in the district's name.

(b)  The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 9 (part).)

Source Law

Sec. 9.  … 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 of the board in the manner provided by Chapter 204, Acts of the 57th Legislature, Regular Session, 1961, as amended (Article 717j-1, Vernon's Texas Civil Statutes), and … .

Revisor's Note

(1)  Section 9, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, refers to Chapter 204, Acts of the 57th Legislature, Regular Session, 1961, (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 9, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides that district bonds may bear interest at a rate not to exceed that provided by Section 2, 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. 9.  [Bonds of the district …] may bear interest at a rate or rates not to exceed that prescribed by Section 2, Chapter 3, Acts of the 61st Legislature, Regular Session, 1969, as amended (Article 717k-2, Vernon's Texas Civil Statutes). …

(3)  Section 9, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, 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 9 also provides that on 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. 9.  [Bonds] … shall be subject to the same requirements in the matter of approval by the Attorney General of Texas and registration by the Comptroller of Public Accounts of the State of Texas as are by law provided for approval and registration of bonds issued by counties.  Upon the approval of such bonds by the attorney general and registration by the comptroller, the same shall be incontestable for any cause.

Revised Law

Sec. 1027.208.  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 63rd Leg., R.S., Ch. 448, Sec. 22 (part).)

Source Law

Sec. 22.  … 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 22, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, refers to "any municipality or political subdivision" of this state.  The revised law omits "municipality" because "municipality" is included in the meaning of "political subdivision"  of this state.

Revisor's Note

(End of Subchapter)

(1)  Section 14, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, 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 14 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 14 is superseded by Section 1201.041, Government Code, enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes).  Section 1201.041, Government Code, applies to bonds issued under this chapter by application of Section 1201.002, Government Code.  The revised law omits the reference to sinking funds of this state because it has been superseded by Section 404.024, Government Code (enacted in 1985 as Section 2.014, Treasury Act (Article 4393-1, Vernon's Texas Civil Statutes)), which governs the investment of state funds. Section 404.024(b)(10), Government Code, authorizes the investment of state funds in obligations of political subdivisions, including hospital districts. The omitted law reads:

Sec. 14.  All bonds issued hereunder and indebtedness assumed by the district shall be and are hereby declared to be legal and authorized investments of banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, trustees, and sinking funds of cities, towns, villages, counties, school districts, or other political subdivisions of the State of Texas, and for all public funds of the State of Texas or its agencies including the state permanent school fund … .

(2)  Section 14, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, 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. 14.  … Such bonds and indebtedness shall be eligible to secure deposit of public funds of the State of Texas and public funds of cities, towns, villages, counties, school districts, or other political subdivisions or corporations of the State of Texas, and shall be lawful and sufficient security for said deposits to the extent of their value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1027.209-1027.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Revised Law

Sec. 1027.251.  IMPOSITION OF AD VALOREM TAX.  (a)  The board annually shall impose a tax on all property in the district subject to district taxation.

(b)  The board shall impose the tax to:

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

(2)  provide for the operation and maintenance of the district and hospital system, based on the final budget;

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

(4)  acquire necessary sites for the hospital system by purchase, lease, or condemnation.  (Acts 63rd Leg., R.S., Ch. 448, Secs. 3(b) (part), 13(a) (part).)

Source Law

[Sec. 3]

(b)  … [levy annual taxes] … on … taxable property situated within the district subject to hospital district taxation … .

Sec. 13.  (a)  The board of directors shall annually levy a tax of … for the purpose of:

(1)  paying the interest on and creating a sinking fund for bonds and other obligations which may be issued or assumed by the hospital district for hospital purposes as herein provided;

(2)  providing for the operation and maintenance of the hospital district and hospital system, based upon the final budget; and

(3)  making further improvements and additions to the hospital system, and the acquisition of necessary sites therefor by purchase, lease, or condemnation.

Revised Law

Sec. 1027.252.  TAX RATE.  (a)  The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district.

(b)  In setting the tax rate, the board shall consider the income of the district from sources other than taxation.  (Acts 63rd Leg., R.S., Ch. 448, Secs. 3(b) (part), 13(a) (part), (b) (part).)

Source Law

[Sec. 3]

(b)  [At the election there shall be submitted to the qualified taxpaying electors of the area of the proposed district the proposition of whether the hospital district shall be created with authority to levy annual taxes] at a rate not to exceed 75 cents on the $100 valuation of taxable property situated within the district subject to hospital district taxation … .

Sec. 13.  (a)  [The board of directors shall annually levy a tax …] not to exceed the amount hereinabove permitted … . 

(b)  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 13(b), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, requires the board to levy the tax and to certify the tax rate to the tax assessor-collector.  The revised law omits that provision because Section 26.05(a), Tax Code, requires the governing body of a taxing unit to adopt a tax rate for the current tax year and to notify the tax assessor of that rate.  The omitted law reads:

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

Revised Law

Sec. 1027.253.  TAX ASSESSOR-COLLECTOR.  The board may provide for the appointment of a tax assessor-collector for the district or may contract for the assessment and collection of taxes as provided by the Tax Code.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 16(c).)

Source Law

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

Revisor's Note

(End of Subchapter)

(1)  Section 16(a), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides that the district may impose taxes for the entire year in which the district is created.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 16.  (a)  The directors shall have the authority to levy taxes for the entire year in which the district is established as the result of the election herein provided.

(2)  Section 16(b), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides that the Tax Code governs the appraisal, assessment, and collection of district taxes.  The revised law omits that provision because Section 1.02, Tax Code, requires all taxing units of government to administer the assessment and collection of an ad valorem tax in conformity with Title 1, Tax Code.  The omitted law reads:

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

[Sections 1027.254-1027.300 reserved for expansion]

SUBCHAPTER G.  DISSOLUTION

Revised Law

Sec. 1027.301.  DISSOLUTION; ELECTION.  (a)  The district may be dissolved and its assets and obligations sold or transferred to another person only on approval of a majority of the district voters voting in an election held for that purpose.

(b)  The board may order an election on the question of dissolving the district and disposing of the district's assets and obligations.

(c)  The board shall order an election if the board receives a petition requesting an election that is signed by at least 300 registered district voters according to the most recent official list of registered voters.

(d)  The election shall be called not later than the 60th day after the date the petition is presented to the district.

(e)  The order calling the election must state:

(1)  the nature of the election, including the proposition to appear on the ballot;

(2)  the date of the election;

(3)  the hours during which the polls will be open; and

(4)  the location of the polling places.

(f)  Section 41.001(a), Election Code, does not apply to an election ordered under this section.  (Acts 63rd Leg., R.S., Ch. 448, Secs. 23A(a), (b), (c), (d), (f) (part).)

Source Law

Sec. 23A.  (a)  The district may be dissolved and its assets and liabilities sold or transferred to another entity or person only if the dissolution and sale or transfer are approved by a majority of the qualified voters of the district voting in an election called and held for that purpose.

(b)  The board of directors may order an election on the question of dissolving the district and disposing of the district's assets and liabilities.

(c)  The board of directors shall order an election on the question of dissolving the district and disposing of the district's assets and liabilities if the board receives a petition requesting an election on the issue that is signed by at least 300 of the registered voters of the district, according to the most recent official list of registered voters.  The election shall be called not later than the 60th day after the date the petition is presented to the district.

(d)  The order calling the election must state:

(1)  the nature of the election, including the proposition that is to appear on the ballot;

(2)  the date of the election;

(3)  the hours during which the polls will be open; and

(4)  the location of the polling places.

(f)  … Section 41.001(a), Election Code, does not apply to an election ordered under this Act.

Revisor's Note

(1)  Section 23A(a), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, refers to "another entity or person."  Throughout this chapter, the revised law omits "entity" because "entity" is included in the meaning of "person" under Section 311.005(2), Government Code (Code Construction Act).

(2)  Section 23A(a), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides for dissolution of the district if approved by a majority of the "qualified" voters of the district.  The revised law omits "qualified" for the reason stated in Revisor's Note (2) to Section 1027.203.

(3)  Section 23A(a), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides that the district may be dissolved if authorized at an election "called and held" for that purpose.  The revised law omits references to "calling" an election because calling an election is included in the meaning of "holding" an election.  Under Chapter 3, Election Code, all elections must be ordered (called) before they may be held.

(4)  Section 23A(f), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, states that the election must be held not less than 45 days or more than 60 days after the date the election is ordered.  The revised law omits the provision as superseded by Section 3.005, Election Code, applicable to the district under Section 1.002, Election Code.  Section 3.005, as amended by Chapter 925, Acts of the 78th Legislature, Regular Session, 2003, requires an election order issued by the authority of a political subdivision to be issued not later than the 62nd day before election day and provides that Section 3.005 supersedes a law outside the Election Code to the extent of any conflict.  The omitted law reads:

(f)  The election shall be held not less than 45 days nor more than 60 days after the date on which the election is ordered… .

Revised Law

Sec. 1027.302.  NOTICE OF ELECTION.  (a)  The board shall give notice of an election under this subchapter by publishing once a week for two consecutive weeks a substantial copy of the election order in a newspaper with general circulation in the district.

(b)  The first publication of the notice must appear at least 35 days before the date set for the election.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 23A(e).)

Source Law

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

Revised Law

Sec. 1027.303.  BALLOT.  The ballot for an election under this subchapter must be printed to permit voting for or against the proposition:  "The dissolution of the Fisher County Hospital District and the _________ (transfer or sale, as appropriate) of its assets and liabilities in the following manner:  _________."  (Acts 63rd Leg., R.S., Ch. 448, Sec. 23A(g).)

Source Law

(g)  The ballot for the election shall be printed to permit voting for or against the proposition:  "The dissolution of the Fisher County Hospital District and the _________ (transfer or sale, as appropriate) of its assets and liabilities in the following manner:  _________."

Revised Law

Sec. 1027.304.  ELECTION RESULTS.  (a)  If the board finds the election results favor the proposition to dissolve the district, the board shall:

(1)  issue an order declaring the district dissolved; and

(2)  proceed with the sale or transfer of the district's assets and liabilities according to the plan proposed on the ballot.

(b)  If the board finds the election results do not favor the proposition to dissolve the district, the board shall continue to administer the district and another dissolution election may not be held before the first anniversary of the date of the election in which voters disapproved the proposition.  (Acts 63rd Leg., R.S., Ch. 448, Sec. 23A(h) (part).)

Source Law

(h)  …  If the board finds that the election results are favorable to the proposition to dissolve the district and transfer or sell its assets and liabilities, the board shall issue an order declaring the district dissolved and shall proceed with the sale or transfer of its assets and liabilities according to the plan proposed on the ballot.  If the board finds that the election results are not favorable to the proposition to dissolve the district, the board shall continue to administer the district and another dissolution election may not be held before the first anniversary of the date of the most recent election at which voters disapproved the proposition.

Revisor's Note

Section 23A(h), Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, requires the board to canvass the election returns.  The revised law omits that requirement because it duplicates Section 67.002, Election Code, which requires the governing body of a political subdivision that orders an election to canvass the returns.  The omitted law reads:

(h)  the board of directors shall canvass the results of the election… .

Revised Law

Sec. 1027.305.  SALE OR TRANSFER OF ASSETS AND LIABILITIES.  (a)  Notwithstanding any other provision of this chapter, the district may not be dissolved unless the board provides for the sale or transfer of the district's assets and liabilities to another person.

(b)  The dissolution of the district and the sale or transfer of the district's assets or liabilities may not:

(1)  contravene a trust indenture or bond resolution relating to the district's outstanding bonds; or

(2)  diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district.

(c)  The sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of district residents, including the residents' collective property rights in the district's assets.

(d)  The district may transfer or sell the district's assets only for due compensation, unless the transfer or sale is made to another governmental agency serving the district and using the transferred or purchased assets for the benefit of the residents formerly in the district.

(e)  A grant from federal funds is an obligation to be repaid in full.   (Acts 63rd Leg., R.S., Ch. 448, Secs. 23A(i), (j), (k).)

Source Law

(i)  Notwithstanding any other provision of this Act, the district may not be dissolved unless the board provides for the sale or transfer of the district's assets and liabilities to another entity or person.

(j)  The dissolution of the district and the sale or transfer of the district's assets and liabilities may not:

(1)  contravene a trust indenture or bond resolution relating to the outstanding bonds of the district; or

(2)  diminish or impair the rights of a holder of any outstanding bond, warrant, or other obligation of the district.

(k)  The sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of the residents of the district, including the residents' collective property rights in the district's assets.  A grant from federal funds is an obligation that must be repaid in full.  The district may transfer or sell the district's assets only for due compensation, unless the transfer or sale is made to another governmental agency serving the district and using the transferred or purchased assets for the benefit of the residents formerly in the district.

Revisor's Note

(End of Chapter)

(1)  Sections 2 and 20, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provide for the transfer of certain land, buildings, improvements, equipment, funds, and taxes to the district after the district is created and provide for the assumption of debt by the district on creation.  The revised law omits the provisions as executed.  The omitted law reads:

Sec. 2.  The district herein authorized to be created shall take over, and there shall be transferred to it, title to any and all lands, buildings, improvements, equipment, cash, moneys, accounts receivable, negotiable bonds, and choses in action in anywise pertaining to the hospital or hospital system that may be owned by Fisher County, or any city or town within such county at the time of the election for the creation of the district; and thereafter, [the district shall] have full title to all such properties (real, personal, mixed, concrete, or abstract) and … .  Such district shall assume all outstanding obligations and indebtedness incurred by any city or town within said county or by Fisher County for hospital purposes prior to the creation of any district.

Sec. 20.  …  When the district is created and established, the county and all towns and cities located therein shall convey and transfer to the district title to all lands, buildings, improvements, and equipment in anywise pertaining to a hospital or hospital system which may be jointly or separately owned by the county or any city or town within said district.  Operating funds and reserves for operating expenses which are on hand and funds which have been budgeted for hospital purposes by the county or any city or town therein for the remainder of the fiscal year in which the district is established shall likewise be transferred to said district, as shall taxes theretofore levied for hospital purposes for the current year and all sinking funds established for payment of indebtedness assumed by the district.

(2)  Section 23, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides legislative intent regarding the creation of the district and the determination of qualified electors.  The revised law omits that section as executed.  The omitted law reads:

Sec. 23.  The legislature hereby recognizes there is some confusion as to the proper qualification of electors in the light of recent court decisions.  It is the intention of this Act to provide a procedure for the creation of the said hospital district and to allow such district, when created, to issue bonds payable from taxation, but that in each instance the authority shall be predicated upon the expression of the will of the majority of those who cast valid ballots at an election called for the purpose.  Should the person or body calling an election determine that all qualified electors, including those who own taxable property which has been duly rendered for taxation, should be permitted to vote at an election, by reason of the aforesaid court decisions, nothing herein shall be construed as a limitation upon the power to call and hold an election, provided provision is made for the voting, tabulating, and counting of the ballots of the resident qualified property taxpaying electors who own taxable property which has been duly rendered for taxation separately from those who are qualified electors, and in any election so called a majority vote of the resident qualified property taxpaying voters who own taxable property which has been duly rendered for taxation and a majority vote of the qualified electors, including those who own taxable property which has been duly rendered for taxation, shall be required to sustain the proposition.

(3)  Section 24, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides that the act is severable and that an invalid provision of the act does not affect the creation of the district.  The revised law omits the provision regarding severability 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 revised law omits the provision regarding creation of the district as executed.  The omitted law reads:

Sec. 24.  … If any provision of this Act should be invalid, such fact shall not affect the authorization for the creation of the district or the validity of any other provisions of this Act, and the legislature hereby declares that it would have created the district and enacted the valid provisions of this Act notwithstanding the invalidity of any other provision or provisions hereof.

(4)  Section 25, Chapter 448, Acts of the 63rd Legislature, Regular Session, 1973, provides that public notice of enactment of the statute was provided in a manner that satisfies the requirements of the Texas Constitution.  The revised law omits that section as executed.  The omitted law reads:

Sec. 25.  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.