80C38(3) YDB

 

CHAPTER 1033.  GRAPELAND HOSPITAL DISTRICT

OF HOUSTON COUNTY, TEXAS

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 1033.001.  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 Grapeland Hospital District of Houston County, Texas.  (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. 1033.002.  AUTHORITY FOR CREATION.  The Grapeland Hospital District of Houston County, Texas, is created under the authority of Section 9, Article IX, Texas Constitution.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 1.)

Source Law

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

Revised Law

Sec. 1033.003.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of the Grapeland Independent School District as those boundaries existed on May 26, 1971.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 2.)

Source Law

Sec. 2.  The boundaries of this district are coterminous with the boundaries of the Grapeland Independent School District.

Revisor's Note

Section 2, Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that the boundaries of the district are coextensive with the Grapeland Independent School District.  Under Chapter 13, Education Code, a school district's boundaries may be changed.

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

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

Revised Law

Sec. 1033.004.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION.  The support and maintenance of the district's hospital system and any indebtedness incurred by the district under this chapter may not become a charge against or obligation of this state.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 18 (part).) 

Source Law

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

Revised Law

Sec. 1033.005.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.  The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 62nd Leg., R.S., Ch. 455, Sec. 18 (part).)

Source Law

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

Revisor's Note

(End of Subchapter)

Sections 4(a) and (e)-(h) and Section 7, Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provide procedures for holding an election on the creation of the district and the imposition of an ad valorem tax.  Because the creation of the district and the imposition of the tax were approved at the election, the revised law omits those provisions as executed.  The omitted law reads:

Sec. 4.  (a)  On receiving the petition of 25 people who are electors of the proposed hospital district, or by its own order, recorded in the minutes, the commissioners court of the county in which this proposed hospital district is located shall order an election to be held to approve the creation of the proposed hospital district and to elect a board of directors.  The election must be held during the period beginning on the 20th day and ending with the 30th day after the date of the order.

(e)  At the election, the electors shall vote whether or not the proposed hospital district is to be created.  A majority of the electors must approve the creation of the district.

(f)  The ballot for the creation of the district shall be printed to provide for voting for or against the proposition:

"The creation of Grapeland Hospital District of Houston County, Texas."

(g)  If a majority of the persons voting in the election vote for the creation of the district, the commissioners court shall, within 10 days after the results are filed, declare the results and order the district created.  A copy of this order shall be placed in the minutes of the court.

(h)  If a majority of the persons voting at the election vote against the creation of the district, this does not prevent the holding of other elections for the same purpose.

Sec. 7.  (a)  At the time of the election to create the district and to elect directors, the commissioners court may order an election to determine whether the district may levy taxes within the district.  This tax may not exceed 75 cents on the $100 valuation of all taxable property within the district.  If the commissioners court does not include this election in the order for the election to create the district, the board of directors may order this election at any time.

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

(c)  The ballot for this election shall be printed to provide for voting for or against the proposition:  "The levy of a tax not to exceed 75 cents on the $100 valuation on all property subject to taxation within the district."

(d)  The board of directors shall not levy any tax within the district until a majority of the electors voting in the election vote for the levy of the tax.

[Sections 1033.006-1033.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1033.051.  BOARD ELECTION; TERM.  (a)  The board consists of seven directors elected from the district at large.

(b)  Directors serve staggered two-year terms unless four-year terms are established under Section 285.081, Health and Safety Code.  (Acts 62nd Leg., R.S., Ch. 455, Secs. 5(a), (d), (e), (g).)

Source Law

Sec. 5.  (a)  At the election to create the district, the electors of the proposed hospital district shall receive a separate ballot to elect seven directors to manage and control the district.

(d)  Each person entitled to vote for director may cast his vote for seven candidates.

(e)  The seven persons receiving the highest number of votes at the election shall constitute the first board of directors.  The four directors receiving the highest number of votes shall hold office until the second regular election of directors and until their successors are elected and have qualified.  The remaining directors hold office until the next regular election of directors and until their successors are elected and have qualified.

(g)  A director holds office for a term of two years and until his successor is elected and has qualified.

Revisor's Note

(1)  Sections 5(a), (d), and (e), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, prescribe the procedures for electing the initial board of directors and the terms of the initial directors.  The revised law omits those provisions as executed but codifies the establishment of a board consisting of seven directors elected from the district at large serving  staggered terms.

(2)  Section 5(f), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that directors' elections are held on the first Saturday in April each year.  The revised law omits that provision as impliedly repealed by a 1986 amendment to Section 41.001, Election Code. Chapter 14, Acts of the 69th Legislature, 3rd Called Session, 1986, amended Section 41.001, Election Code, to prescribe certain uniform election dates. Section 37 of that act required a political subdivision that had held its general election of officers on the first Saturday in April to hold that election on a uniform election date in May or to choose a different uniform election date on which to hold the election.  The omitted law reads:

(f)  Thereafter, each year on the first Saturday in April, an election is to be held for the purpose of electing the appropriate number of directors to the board.

(3)  Section 5(g), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that directors serve two-year terms.  Section 285.081, Health and Safety Code, applicable to this district, provides a mechanism by which the governing board of a hospital district, on its own motion, may order that the members are to be elected in even-numbered years to serve staggered four-year terms.  The revised law is drafted accordingly and adds a reference to Section 285.081, Health and Safety Code, for the convenience of the reader.

(4)  Section 5(g), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that a director serves until the successor is "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.

Revised Law

Sec. 1033.052.  QUALIFICATIONS FOR OFFICE.  To qualify for election to the board, a person must:

(1)  be at least 18 years of age;

(2)  have been a resident of the district for at least two years; and

(3)  be a qualified property taxpaying voter of the district.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 5(b).)

Source Law

(b)  To qualify for election to the board, a person must:

(1)  be at least 21 years of age;

(2)  have been a resident of the district for at least two years;

(3)  be a qualified property taxpaying elector of the district.

Revisor's Note

(1)  Section 5(b), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that a person must "be at least 21 years of age" to qualify for election as a director. The revised law substitutes "18" for "21" because Chapter 129, Civil Practice and Remedies Code, establishes 18 years as the age of majority in this state. Section 129.002, Civil Practice and Remedies Code, provides that a law adopted before August 27, 1973, that extends a right, privilege, or obligation to an individual on the basis of a minimum age of 19, 20, or 21 years shall be interpreted as prescribing a minimum age of 18 years. Section 5(b) was enacted in 1971 and has not been amended.

(2)  Section 5(b), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, refers to "electors." Throughout this chapter, the revised law substitutes "voter" for "elector" because the former is the term used in the Election Code.

Revised Law

Sec. 1033.053.  BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF OFFICE.  (a)  Each director shall execute a good and sufficient commercial bond for $1,000 that is:

(1)  payable to the district; and

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

(b)  The district shall pay for a director's bond.

(c)  Each director's bond and constitutional oath or affirmation of office shall be deposited with the district's depository for safekeeping.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 6(a).)

Source Law

Sec. 6.  (a)  When a person is elected to the board of directors he shall qualify for office by executing the constitutional oath of office and a good and sufficient commercial bond for $1,000 payable to the district, conditioned upon the faithful performance of his duties.  The oath and bond are to be deposited with the district depository for safekeeping.  The cost of the bond is an expense of the district.

Revisor's Note

Section 6(a), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, 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.  In addition, the revised law provides for the deposit of the constitutional affirmation, as well as the constitutional oath, because Section 1, Article XVI, Texas Constitution, permits an officer in this state to take either the oath or the affirmation.

Revised Law

Sec. 1033.054.  BOARD VACANCY.  If a vacancy occurs in the office of director, a majority of the directors shall appoint a director for the unexpired term.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 5(h).)

Source Law

(h)  A vacancy on the board of directors is filled by appointment by a majority of the directors for the unexpired term.

Revised Law

Sec. 1033.055.  OFFICERS.  The board shall elect from among its members a president, a secretary, and a treasurer at the first meeting after each directors' election.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 6(b).)

Source Law

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

Revised Law

Sec. 1033.056.  COMPENSATION; EXPENSES.  A director serves without compensation but is entitled to reimbursement for necessary expenses incurred in the performance of official duties.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 6(c).)

Source Law

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

Revised Law

Sec. 1033.057.  DISTRICT ADMINISTRATOR.  (a)  The board may employ a district administrator to manage the operations of the hospital system.

(b)  The district administrator may employ necessary personnel to perform the services provided by the hospital system. (Acts 62nd Leg., R.S., Ch. 455, Sec. 12(e) (part).)

Source Law

(e)  The board may:

…

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

Revised Law

Sec. 1033.058.  APPOINTMENT AND DISMISSAL OF STAFF AND EMPLOYEES.  (a) The board may appoint to or dismiss from the staff any doctors the board considers necessary for the efficient operation of the district and make temporary appointments as necessary.

(b)  The board may employ an attorney, general manager, bookkeeper, architect, and other employees necessary for the efficient operation of the district.  (Acts 62nd Leg., R.S., Ch. 455, Secs. 12(e) (part), (h).)

Source Law

(e)  The board may:

…

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

…

(h)  The board shall have the authority to appoint to or dismiss from the staff such doctors as may be deemed necessary for the efficient operation of the district, and may provide for temporary appointments to the staff if warranted by circumstances.

Revised Law

Sec. 1033.059.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.  The board shall:

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

(2)  make those records available for public inspection at reasonable times.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 12(b).)

Source Law

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

Revisor's Note

(End of Subchapter)

Section 5(c), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, states that a person must file the person's name with the commissioners court to be a candidate for director and prescribes a deadline for the filing.  The revised law omits the requirement for the person to file the person's name with the commissioners court because it is superseded by Section 144.004, Election Code, which provides that an application for a place on the ballot must be filed with the secretary of the political subdivision's governing body.  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:

(c)  Any person who is qualified to serve on the board of directors and who desires to serve shall file his name with the commissioners court at least two weeks before the date of the election.

[Sections 1033.060-1033.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1033.101.  DISTRICT RESPONSIBILITY.  The district shall provide all necessary medical and hospital care for the district's needy inhabitants.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 3 (part).)

Source Law

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

Revised Law

Sec. 1033.102.  RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT.  A political subdivision of this state, other than the district, may not impose a tax or issue bonds or other obligations to provide hospital service or medical care in the district.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 3 (part).)

Source Law

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

Revisor's Note

(1)  Section 3, Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that "[a]fter this district is created as provided in Section 4 of this Act," certain political subdivisions may not levy taxes or issue bonds.  The revised law omits the quoted language as executed.  In addition, throughout this chapter, the revised law substitutes "impose" for "levy" because, in this context, the terms are synonymous and the former is more commonly used.

(2)  Section 3, Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, refers to a "municipality or political subdivision."  Throughout this chapter, the revised law omits references to "municipality" because "municipality" is included in the meaning of "political subdivision."

Revised Law

Sec. 1033.103.  MANAGEMENT AND CONTROL OF DISTRICT.  The board has full power to manage and control the district.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 12(a) (part).)

Source Law

Sec. 12.  (a)  The board of directors has full power to manage and control the district… .

Revised Law

Sec. 1033.104.  HOSPITAL SYSTEM.  The district has the responsibility to establish a hospital or hospital system within its boundaries to provide hospital and medical care to the district's residents.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 3 (part).)

Source Law

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

Revised Law

Sec. 1033.105.  RULES.  (a)  The board shall adopt rules for the efficient operation of the district, including district facilities.

(b)  The board shall:

(1)  publish the rules in book form; and

(2)  provide copies to interested persons on request at district expense.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 12(c).)

Source Law

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

Revisor's Note

(1)  Section 12(c), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that the board shall adopt rules that "are not inconsistent with this Act."  The revised law omits the quoted language because, under established principles of law, the board is not authorized to take any action contrary to the laws of this state.

(2)  Section 12(c), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, refers to "rules and regulations."  The revised law omits the reference to "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

Revised Law

Sec. 1033.106.  PURCHASING AND ACCOUNTING PROCEDURES.  The board may prescribe the method of making purchases and expenditures and the manner of accounting and control used by the district.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 12(e) (part).)

Source Law

(e)  The board may:

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

…

Revised Law

Sec. 1033.107.  EMINENT DOMAIN.  (a)  The district may exercise the power of eminent domain to acquire a fee simple or other interest in real, personal, or mixed property located in district territory if the interest is necessary or convenient for the district to exercise a power or duty conferred on the district by this chapter.

(b)  The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, except that 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, the district is not required to:

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

(2)  provide a bond for costs or a supersedeas bond on an appeal or writ of error.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 15.)

Source Law

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

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

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

Revisor's Note

(1)  Section 15(a), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that the district "has the 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 law relating to eminent domain.

(2)  Section 15(b), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that the district must exercise the power of eminent domain in the manner provided by "general law."  The revised law substitutes for "general law" a reference to Chapter 21, Property Code, because that is the general law governing eminent domain.

(3)  Section 15(b), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, refers to Paragraph 2, Article 3268, Revised Civil Statutes of Texas, 1925, as amended.  That statute was codified in 1983 as Section 21.021(a), Property Code.  The revised law is drafted accordingly.  In addition, the revised law omits the reference to "as amended" because under Section 311.027, Government Code (Code Construction Act), a reference to a statute applies to all reenactments, revisions, or amendments of that statute unless expressly provided otherwise.

(4)  Section 15(c), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that the district is not required to provide a bond on an appeal or writ of error proceeding to "a court of civil appeals or to the supreme court."  The revised law omits the references to the courts because those are the only courts to which the district may appeal or apply for a writ of error.

Revised Law

Sec. 1033.108.  GIFTS AND ENDOWMENTS.  The board may accept for the district a gift or endowment to be held in trust and administered by the board under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management of the district.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 12(f).)

Source Law

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

Revisor's Note

Section 12(f), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, refers to "donations" and "gifts."  The revised law omits the reference to "donations" because "donations" is included in the meaning of "gifts."

Revised Law

Sec. 1033.109.  CONTRACTS WITH POLITICAL SUBDIVISIONS FOR HOSPITAL CARE.  The board may contract with a political subdivision to provide hospital care for needy persons who reside outside the district.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 12(g).)

Source Law

(g)  The board may enter into any contract with a municipality or other political subdivision to provide hospital care for needy persons who reside outside the district.

Revised Law

Sec. 1033.110.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  A person who resides in the district is entitled to receive necessary medical and hospital care from the district regardless of whether the person has the ability to pay for the care and may apply to receive this care without cost.

(b)  The board or the district administrator shall employ a person to investigate the ability of the patient and any relative who is liable for the patient's support to pay for the medical and hospital care received by the patient.

(c)  If the investigator determines that the patient or relative legally liable for the patient's support cannot pay all or part of the costs of the patient's care, the expense of the care becomes a charge against the district.

(d)  If the patient or a relative of the patient legally liable for the patient's support can pay for all or part of the costs of the patient's care, the board shall order the patient or relative to pay to the treasurer each week an amount specified in the order.  The amount must be proportionate to the person's ability to pay.

(e)  The district may collect the amount from the patient's estate, or from any relative who is 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.

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

(1)  determine the question; and

(2)  make the proper order based on the board's findings.

(g)  A party to the hearing who is not satisfied with the result of the order may appeal to the district court.  The appeal is de novo.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 14.)

Source Law

Sec. 14.  (a)  A person who resides within the district is entitled to receive necessary medical and hospital care whether he has the ability to pay for the care or not.  A person who resides within the district may make application to receive this care without cost.

(b)  The board or the administrator shall employ a person to investigate the ability of the patient and the ability of any relative who is liable for the support of the patient to pay for the medical and hospital care which the patient receives.

(c)  If the patient or a relative of the patient who is legally liable for his support is able to pay for this care in whole or in part, the board shall order the patient or his relatives to pay to the treasurer each week an amount specified in the order.  The amount must be in proportion to the ability to pay.

(d)  The district may collect this amount from the estate of the patient, or from his relatives who are liable for this support, in the manner provided by law for the collection of expenses of the last illness of a deceased person.

(e)  If the investigator finds that neither the patient, nor a relative who is legally liable for his support, is able to pay in whole or in part for this care the expense of this care becomes a charge on the district.

(f)  If there is a dispute as to the ability to pay, or a doubt in the mind of the investigator, the board shall hear and determine the question, after calling witnesses, and make the proper order based on its findings.

(g)  A party to the hearing who is not satisfied with the result of the order, may appeal to the district court.  The appeal is de novo.

Revisor's Note

(End of Subchapter)

(1)  Section 12(a), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, states that a provision of the act that provides a specific power or duty does not limit the district's general authority to carry out the purposes of the act.  The revised law omits this provision because it is a generally accepted principle of statutory interpretation that all of a statute is intended to be given effect and that specific grants of power do not limit more general grants of power.  Additionally, Section 311.021(2), Government Code (Code Construction Act), provides that an entire statute is intended to be effective.  The omitted law reads:

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

(2)  Section 17, Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides authority for the "State Department of Health, the State Department of Public Welfare, or any other state agency created for a similar purpose" to inspect hospital district facilities and records. The revised law omits Section 17 because various state laws, including Chapters 222 and 241, Health and Safety Code, provide the necessary inspection authority to appropriate state agencies.  The omitted law reads:

Sec. 17.  (a)  The district is subject to inspection at any time by an authorized representative of the State Department of Health, the State Department of Public Welfare, or any other state agency created for a similar purpose.

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

[Sections 1033.111-1033.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1033.151.  BUDGET.  The board shall prepare a budget that includes:

(1)  proposed expenditures and disbursements;

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

(3)  the amount of taxes required to be imposed to meet the proposed budget.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 13(b).)

Source Law

(b)  The board shall prepare a budget showing:

(1)  the proposed expenditures and disbursements;

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

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

Revisor's Note

Section 13(b), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, refers to taxes "levied and collected."  The revised law substitutes "imposed" for the quoted language because "impose" is the term generally used in Title 1, Tax Code, and includes the levying and collection of an ad valorem tax.

Revised Law

Sec. 1033.152.  PROPOSED BUDGET; NOTICE AND HEARING.  (a)  The board shall hold a public hearing on the proposed budget.

(b)  Notice of the hearing must be published at least once in a newspaper of general circulation in the district not later than the 11th day before the date of the hearing.

(c)  Any person is entitled to:

(1)  appear at the hearing: and

(2)  be heard regarding any item in the proposed budget.  (Acts 62nd Leg., R.S., Ch. 455, Secs. 13(c), (d).)

Source Law

(c)  The board shall hold a public hearing on the proposed budget after publication of notice in a newspaper of general circulation in the district.  The notice must be given at least one time before the 10-day period immediately preceding the day of the hearing.

(d)  Any person is entitled to appear at the hearing and be heard with reference to any item in the proposed budget.

Revised Law

Sec. 1033.153.  FISCAL YEAR.  The district's fiscal year is from October 1 to September 30.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 13(a).)

Source Law

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

Revised Law

Sec. 1033.154.  ANNUAL AUDIT.  (a)  The board annually shall require an independent audit of the district's books and records.

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

(1)  the comptroller; and

(2)  the district.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 12(d).)

Source Law

(d)  The board shall require an annual independent audit of the books and records of the district and shall file a copy of the audit with the comptroller of public accounts and a copy with the district not later than December 1 of each year.

Revisor's Note

Section 12(d), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, refers to "the comptroller of public accounts."  The revised law substitutes "comptroller" for the quoted language because Section 403.001, Government Code, defines "comptroller" in any state statute to mean the comptroller of public accounts of the State of Texas.

Revised Law

Sec. 1033.155.  DEPOSITORY.  (a)  The board by resolution shall designate a bank in Houston County as the district's depository.  A designated bank serves for two years and until a successor is designated.

(b)  All district money shall be deposited in the depository and secured in the manner provided for securing county funds.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 16.)

Source Law

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

Revisor's Note

(1)  Section 16, Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, requires the board to select a depository bank "[w]ithin 30 days after the qualification of the board of directors."  The revised law omits the quoted language as executed.

(2)  Section 16, Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, refers to "the county in which the district is located."  Throughout this chapter, the revised law substitutes "Houston County" for the quoted language because the district is wholly located in Houston County.

[Sections 1033.156-1033.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Revised Law

Sec. 1033.201.  BONDS.  The district may issue bonds to:

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

(2)  equip buildings for hospital purposes.  (Acts 62nd Leg., R.S., Ch. 455, Secs. 9(a) (part), 10(a) (part).)

Source Law

Sec. 9.  (a) … the district may issue bonds for the purchase, construction, acquisition, repair, or renovation of buildings and improvements, and for equipping the buildings for hospital purposes. … .

Sec. 10.  (a) After a majority of those persons voting at the election vote for the levy of a tax, the board may issue bond, … .

Revisor's Note

(1)  Section 9(a), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, authorized the commissioners court to order a bond election at the election to create the district.  The revised law omits that provision because the creation election has been conducted.  The omitted law reads:

Sec. 9.  (a)  At the time of the election to create the district the commissioners court may order an election to determine whether [the district may issue bonds] … .

(2)  Section 10(a), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that the board may issue bonds "[a]fter a majority of those persons voting at the election vote for the levy of a tax."  The revised law omits the quoted language as executed.

Revised Law

Sec. 1033.202.  TAX TO PAY BONDS.  The board may issue bonds under Section 1033.201 only if the board imposes an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 10(c).)

Source Law

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

Revisor's Note

Section 10(c), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, requires the district to levy a tax to pay the principal of and interest on bonds.  The revised law specifies that the tax is an "ad valorem" tax because it is clear from the source law that the tax is a property tax and "ad valorem" is the term most commonly used to refer to a property tax.

Revised Law

Sec. 1033.203.  BOND ELECTION.  (a)  The board may issue bonds under Section 1033.201 only if the bonds are authorized by a majority of district voters voting in an election held for that purpose.  The total face value of the bonds may not exceed the amount specified in the election order.

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

(c)  The order calling an election must include:

(1)  the time of the election;

(2)  the location of the polling places;

(3)  the form of the ballots;

(4)  the presiding judge for each polling place;

(5)  the purpose of the bond issuance;

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

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

(8)  the maximum maturity of the bonds.

(d)  A substantial copy of the election order shall be published in a newspaper of general circulation in the district once a week for two consecutive weeks before the date of the election.  The first notice must be published not later than the 15th day before the date of the election.

(e)  A copy of the election results must be filed with the county clerk and become a public record.  (Acts 62nd Leg., R.S., Ch. 455, Secs. 4(b), (c), (d) (part), 9(a) (part), (b), (d), 10(a) (part).)

Source Law

[Sec. 4]

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

(c)  The commissioners court shall publish a substantial copy of the election order in a newspaper of general circulation in the district once a week for two consecutive weeks before the date of the election.  The first notice must be published before the 14-day period immediately preceding the day of the election.

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

Sec. 9.  (a)  …  If the commissioners court does not include this election in the order for the election to create the district, the board of directors may order this election at any time.

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

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

(2)  the amount of the proposed bond issue;

(3)  the maximum interest rate; and

(4)  the maximum maturity date of the bonds.

(d)  The board of directors shall not issue any bonds until a majority of the electors voting in an election for this purpose vote for the issuance of these bonds.

Sec. 10.  (a)  … the board may issue bonds, the total of the face value not to exceed the amount specified in the order of the election.

Revisor's Note

Section 4(d), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that the presiding judge of each voting place shall count the votes and certify the results to the commissioners court within 10 days.  The revised law omits those requirements as superseded by Sections 67.002, 67.003, and 67.004, Election Code (enacted as Section 1, Chapter 211, Acts of the 69th Legislature, Regular Session, 1985), which require the governing body of a political subdivision that orders an election to canvass the returns and provides the time frame and procedures for the canvass.  The omitted law reads:

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

Revised Law

Sec. 1033.204.  MATURITY OF BONDS.  District bonds must mature not later than 40 years after the date of issuance.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 9(c).)

Source Law

(c)  The board of directors shall not issue any bond which matures more than 40 years from the date of issuance.

Revised Law

Sec. 1033.205.  EXECUTION OF BONDS.  (a)  The board president shall execute the district's bonds in the district's name.

(b)  The board secretary shall countersign the bonds.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 10(b) (part).)

Source Law

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

Revisor's Note

Section 10(b), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that the 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 10(b) also provides that after approval and registration the bonds are "incontestable for any reason."  The revised law omits those provisions as superseded by Chapter 1202, Government Code (enacted as Article 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987).  Section 1202.003(a), Government Code, requires bonds to be submitted to the attorney general.  Section 1202.003(b), Government Code, provides for approval of the bonds by the attorney general and requires the attorney general to submit the approved bonds to the comptroller for registration.  Section 1202.005, Government Code, requires registration of the bonds by the comptroller. Section 1202.006, Government Code, provides that after approval and registration the bonds are incontestable and binding obligations.  Chapter 1202, Government Code, applies to district bonds by application of Section 1202.001, Government Code.  The omitted law reads:

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

Revisor's Note

(End of Subchapter)

(1)  Section 10(d), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that district bonds may be made optional for redemption before maturity.  The revised law omits that provision because it duplicates Section 1201.021, Government Code, which provides that a public security may be issued as redeemable before maturity at one or more specified times. Section 1201.021, Government Code, applies to district bonds by application of Section 1201.002, Government Code. The omitted law reads:

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

(2)  Section 10(e), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, authorizes the district to issue refunding bonds for bonds issued under that section.  The revised law omits this provision because Chapter 1207, Government Code, provides general authority for an issuer, including a hospital district, to issue refunding securities.  Section 10(e) also provides that refunding bonds issued under Section 10 must bear interest at the same or lower rate than the bonds being refunded unless the refunding will result in a lower total amount of interest paid.  The revised law omits this provision 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:

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

(3)  Section 11, Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971,  provides that district bonds are legal and authorized investments for certain entities.  The revised law omits the provision as unnecessary.  As to several of the entities listed, Section 11 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 building and loan associations (now called savings and loan associations) are regulated by Sections 63.002 and 64.001, Finance Code.  As to the remaining entities listed, Section 11 is superseded by Section 1201.041, Government Code, enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes).  Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code.  The revised law omits the reference to sinking funds of this state because it has been superseded by Section 404.024, Government Code (enacted in 1985 as Section 2.014, Treasury Act (Article 4393-1, Vernon's Texas Civil Statutes)), which governs the investment of state funds. Section 404.024(b)(10), Government Code, authorizes the investment of state funds in obligations of political subdivisions, including hospital districts. The omitted law reads:

Sec. 11.  All bonds issued under this Act shall be legal and authorized investments for banks, savings banks, trust companies, building and loan associations, insurance companies, fiduciaries, trustees, and for any sinking funds of cities, towns, villages, counties, school districts, and other political corporations or subdivisions of the State of Texas… .

(4)  Section 11, Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that district bonds may secure deposits of public funds of this state or political subdivisions of this state.  The revised law omits the provisions as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions.  The omitted law reads:

Sec. 11.  …  The bonds shall be eligible to secure the deposit of any and all public funds of the State of Texas and any and all public funds of cities, towns, villages, counties, school districts, and other political corporations or subdivisions of the State of Texas, and the bonds shall be lawful and sufficient security for the deposits at their face value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1033.206-1033.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Revised Law

Sec. 1033.251.  IMPOSITION OF AD VALOREM TAX.  (a)  The board shall impose a tax on all property in the district subject to district taxation.

(b)  The tax may be used only to:

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

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

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

(4)  acquire sites for additions to the hospital system.  (Acts 62nd Leg., R.S., Ch. 455, Secs. 8(a) (part), (c).)

Source Law

Sec. 8.  (a)  … the board of directors shall levy a tax … on all property subject to taxation within the district.

(c)  The board may use the proceeds of this tax for the following purposes, only:

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

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

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

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

Revisor's Note

(1)  Section 8(a), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that the district may impose an ad valorem tax after a vote.  The revised law omits the quoted language as executed.  The omitted law reads:

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

(2)  Sections 8(b) and (d), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, requires the board to impose taxes at a certain time and in a certain manner.  The revised law omits these provisions because they were repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979, which repealed all "general, local, and special laws" that conflicted with that act.  The 1979 act enacted the Property Tax Code (Title 1, Tax Code), a comprehensive, substantive codification of property tax law and its administration.  Title 1, Tax Code, provides the exclusive procedures for the appraisal of property for taxation by a taxing unit, including a hospital district.  The omitted law reads:

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

(d)  On or before October 1 of each year, the board shall levy the tax and immediately certify the tax rate to the tax assessor and collector of the county in which the district is located… .  The taxes of the district are subject to the same conditions as the taxes of the county.

Revised Law

Sec. 1033.252.  TAX RATE.  The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of all taxable property in the district.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 8(a) (part).)

Source Law

(a)  … [the board of directors shall levy a tax] not to exceed 75 cents on the $100 valuation on all property subject to taxation within the district.

Revised Law

Sec. 1033.253.  TAX ASSESSOR AND COLLECTOR.  The tax assessor-collector of Houston County shall collect taxes for the district.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 8(d) (part).)

Source Law

(d)  …  The tax assessor and collector of that county shall collect the taxes for the district… .

Revisor's Note

(End of Subchapter)

(1)  Section 8(e), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that the county tax assessor-collector is entitled to a fee as compensation for services.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (2) to Section 1033.251.  Section 6.27(b), Tax Code,  provides for the compensation of a county tax assessor-collector assessing and collecting taxes for another taxing unit.  The omitted law reads:

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

(2)  Section 8(f), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that the district may impose taxes for the entire year in which the district is established.  The revised law omits that provision as executed.  The omitted law reads:

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

[Sections 1033.254-1033.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Revised Law

Sec. 1033.301.  DISSOLUTION; ELECTION.  (a)  The district may be dissolved as provided by this subchapter.

(b)  The board may order an election on the question of dissolving the district and transferring the district's assets and obligations to a governmental entity in Houston County as specified in the election order.

(c)  The board shall order an election if the board receives a petition requesting an election that is signed by at least 20 percent of the registered voters in the district.

(d)  The order calling the election must designate the governmental entity in Houston County to which the district's assets and obligations will be transferred.

(e)  Section 41.001(a), Election Code, does not apply to an election ordered under this section.  (Acts 62nd Leg., R.S., Ch. 455, Secs. 18A(a), (b), (c) (part).)

Source Law

Sec. 18A.  (a)  The district may be dissolved as provided by this section.

(b)  The board of directors may order an election on the question of dissolving the district and transferring the district's assets and obligations to a governmental entity in Houston County as specified in the election order.  The board shall order an election if the board receives a petition requesting an election that is signed by at least 20 percent of the registered voters in the district.  The election order must designate the governmental entity in Houston County to which the district's assets and obligations will be transferred.

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

Revisor's Note

(1)  Section 18A(c), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, states that the election must be held not 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:

(c)  The election shall be held not more than 60 days after the date on which the election is ordered… .

(2)  Section 18A(d), Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that the Election Code governs an election held under that section.  The revised law omits the provision as unnecessary because Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state.  The omitted law reads:

(d)  …  The election shall be held in accordance with the applicable provisions of the Election Code.

Revised Law

Sec. 1033.302.  BALLOT.  The ballot for an election under this subchapter must be printed to permit voting for or against the proposition: "The dissolution of the Grapeland Hospital District and the transfer of the existing district assets to and the assumption of debts and bond obligations by ________ (name of governmental entity as specified in the election order)."  (Acts 62nd Leg., R.S., Ch. 455, Sec. 18A(d) (part).)

Source Law

(d)  The ballot for the election shall be printed to permit voting for or against the proposition:  "The dissolution of the Grapeland Hospital District and the transfer of the existing district assets to and the assumption of debts and bond obligations by ________ (name of governmental entity as specified in the election order)." …

Revised Law

Sec. 1033.303.  ELECTION RESULTS.  (a)  If a majority of the votes in an election under this subchapter favor dissolution and transfer of the district's assets and obligations, the board shall:

(1)  declare that the district is dissolved; and

(2)  transfer the district's assets and obligations to a governmental entity as provided by Section 1033.304.

(b)  If a majority of the votes in the election do not favor dissolution and transfer of the district's assets and obligations, the board shall continue to administer the district and another election on the question of dissolution may not be held before the first anniversary of the date of the most recent election to dissolve the district and transfer the district's assets and obligations.  (Acts 62nd Leg., R.S., Ch. 455, Sec. 18A(e).)

Source Law

(e)  If a majority of the votes in the election favor dissolution and transfer of the district's assets and obligations, the board shall declare that the district is dissolved and shall transfer the district's assets and obligations to the governmental entity specified in the election order as prescribed by Subsection (f) of this section.  If a majority of the votes in the election do not favor dissolution and transfer of the district's assets and obligations, the board shall continue to administer the district and may not order an election on the question of dissolution for at least one year after the date of the most recent election to dissolve the district and to transfer the district's assets and obligations.

Revised Law

Sec. 1033.304.  TRANSFER OF DISTRICT ASSETS.  (a)  If a majority of the votes in the election favor dissolution and transfer of the district's assets and obligations, the board shall transfer to the governmental entity specified in the election order the land, buildings, improvements, equipment, and other assets that belong to the district.

(b)  The governmental entity assumes all debts and obligations of the district at the time of the transfer.  (Acts 62nd Leg., R.S., Ch. 455, Secs. 18A(f).)

Source Law

(f)  If a majority of the votes in the election favor dissolution and transfer of the district's assets and obligations, the board shall transfer to the governmental entity specified in the election order the land, buildings, improvements, equipment, and other assets that belong to the district.  At the time of the transfer the governmental entity specified in the election order assumes all debts and obligations of the district.

Revisor's Note

(End of Chapter)

Section 19, Chapter 455, Acts of the 62nd Legislature, Regular Session, 1971, provides that proper notice was provided in a manner that satisfies the requirements of the Texas Constitution.  The revised law omits the provision as executed.  The omitted law reads:

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