80C41(4) MTB

 

CHAPTER 1031. GARZA COUNTY HEALTH CARE DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 1031.001.  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 Garza County Health Care District.  (New.)

Revisor's Note

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

Revised Law

Sec. 1031.002.  AUTHORITY FOR OPERATION.  The Garza County Health Care District operates in accordance with and has the powers and responsibilities provided by Section 9, Article IX, Texas Constitution.  (Acts 60th Leg., R.S., Ch. 502, Sec. 1 (part).)

Source Law

Sec. 1.  In accordance with the provisions of Article IX, Section 9, Constitution of the State of Texas, this Act shall be operative so as to authorize the creation, establishment, maintenance and operation of a hospital district within the State of Texas, to be known as the Garza County Health Care District, … said district shall have the powers and responsibilities provided by the aforesaid constitutional provision.

Revisor's Note

Section 1, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, authorizes the "creation, establishment, maintenance and operation" of the district.  The revised law omits "creation" and "establishment" as executed.  The revised law omits "maintenance" because in this context, the meaning of that term is included in the meaning of "operation."

Revised Law

Sec. 1031.003.  POLITICAL SUBDIVISION.  The district is a political subdivision of this state.  (Acts 60th Leg., R.S., Ch. 502, Sec. 16 (part).)

Source Law

Sec. 16.  The district authorized to be created under the provisions of this Act shall be and is declared to be political subdivision of the State of Texas, and … .

Revised Law

Sec. 1031.004.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of Garza County.  (Acts 60th Leg., R.S., Ch. 502, Sec. 1 (part).)

Source Law

Sec. 1.  … [Garza County Health Care District,] such district to have boundaries coextensive with the boundaries of Garza County, and … .

Revised Law

Sec. 1031.005.  CORRECTION OF INVALID PROCEDURES.  If a court holds that any procedure under this chapter violates the constitution of this state or of the United States, the district by resolution may provide an alternative procedure that conforms with the constitution.  (Acts 60th Leg., R.S., Ch. 502, Sec. 17 (part).)

Source Law

Sec. 17.  … [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 17, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, 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. 17.  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. 1031.006.  PUBLIC PURPOSE; TAX EXEMPTION.  All property owned by the district:

(1)  shall be held for public purposes; and

(2)  is exempt from taxation of every character.  (Acts 60th Leg., R.S., Ch. 502, Sec. 16 (part).)

Source Law

Sec. 16.  …  In addition, all property owned by said district shall be held for public purposes and shall be exempt from taxation of every character.

Revisor's Note

(End of Subchapter)

Sections 2 and 3(a), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, provide procedures for holding an election on the creation of the district and the imposition of an ad valorem tax.  Because the creation of the district and the imposition of the tax were approved at the election, the revised law omits the relevant law as executed.  The omitted law reads:

Sec. 2.  … provided, however, that such hospital district shall not be created unless and until an election is duly held in the county for such purpose, which said election may be initiated by the commissioners court of the county upon its own motion or upon a petition of 100 resident legally qualified property taxpaying electors, to be held not less than 30 days from the time said election is ordered by the commissioners court.  At said election there shall be submitted to the legally qualified property taxpaying electors the proposition of whether or not a hospital district shall be created in the county; and a majority of the legally qualified property taxpaying electors participating in said election voting in favor of the proposition shall be necessary to create the district.

The ballots shall have printed thereon:

"FOR the creation of Garza Hospital District providing for the levy of a tax not to exceed 25 cents on the $100 valuation using Garza County values and Garza County tax rolls, and providing for the assumption by such district of all outstanding bonds and indebtedness heretofore issued by Garza County and by any city or town within said county for hospital purposes."

"AGAINST the creation of Garza Hospital District providing for the levy of a tax not to exceed 25 cents on the $100 valuation using Garza County values and Garza County tax rolls, and providing for the assumption by such district of all outstanding bonds and indebtedness heretofore issued by Garza County and by any city or town within said county for hospital purposes."

Sec. 3.  (a)  Within 10 days after such election is held, the Commissioners Court of Garza County shall convene and canvass the returns of the election, and if a majority of the legally qualified property taxpaying electors voting at said election voted in favor of the proposition, the court shall so find and declare the hospital district established and created and … .

If the proposition to create the Garza Hospital District fails to carry at the election, no other election for the same purpose may be held within one year after the result of the election is announced officially.

[Sections 1031.007-1031.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Revised Law

Sec. 1031.051.  BOARD ELECTION; TERM.  (a)  The board consists of five directors elected from the district at large.

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

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

(2)  an election shall be held on the uniform election date in May of each year to elect the appropriate number of directors.  (Acts 60th Leg., R.S., Ch. 502, Secs. 3(a) (part), (d) (part).)

Source Law

Sec. 3.  (a)  … [the Commissioners Court of Garza County shall] … appoint five persons as directors of the hospital district to serve until the first Saturday in April, at which time five directors shall be elected.  The three directors receiving the highest vote at such first election shall serve for two years, the other two directors shall serve for one year.  Thereafter, all directors shall serve for a period of two years and until their successor has been duly elected or appointed and qualified… .

(d)  A regular election of directors shall be held on the first Saturday in May of each year.  The election shall be held in accordance with the Election Code… .

Revisor's Note

(1)  Section 3(a), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, prescribes the procedures for appointing the initial board of directors and the terms of the initial directors which expired on the first Saturday in April after the election.  The revised law omits those provisions as executed but codifies the establishment of a board consisting of five directors elected from the district at large.  Section 3(a) also establishes staggered two-year terms for the initial elected directors that expire in the first or second year after the election.  The revised law codifies the provision specifying staggered terms but omits the provision relating to which year the terms of the initial directors expire as executed.

(2)  Section 3(a), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, 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.

(3)  Section 3(a), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, provides that the directors serve until their successors are "duly elected or appointed and 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.

(4)  Section 3(d), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, was amended in 2001 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 2001 amendment to Section 3(d) that the election be held on the first Saturday in May, which was at that time the uniform election date in May.

(5)  Section 3(d), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, states that "[t]he election shall be held in accordance with the Election Code."  The revised law omits the quoted language because it duplicates Section 1.002, Election Code, which provides that the Election Code applies to all elections held in this state.

Revised Law

Sec. 1031.052.  NOTICE OF ELECTION.  At least 10 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 Garza County.  (Acts 60th Leg., R.S., Ch. 502, Sec. 3(d) (part).)

Source Law

(d)  … Notice of such election shall be published in a newspaper of general circulation in the county one time at least 10 days prior to the date of the election… .

Revisor's Note

Section 3(d), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, requires notice of a director's election to be published in "the county."  Throughout this chapter, the revised law substitutes "Garza County" for the quoted language because Garza County is the county in which the district is located.

Revised Law

Sec. 1031.053.  QUALIFICATIONS FOR OFFICE.  To be eligible to serve as a director, a person must:

(1)  be a resident of the district; and

(2)  have resided in the district for at least six months immediately preceding the date on which the person:

(A)  files for election; or

(B)  is appointed or elected as provided by Section 1031.055, if filling a vacancy in the office of director.  (Acts 60th Leg., R.S., Ch. 502, Sec. 3(a) (part).)

Source Law

(a)  …  To be eligible to serve as a member of the board of directors of said district, a person must be at least 21 years of age and a resident of the district and must have resided in the district for at least six months immediately preceding the date on which the person files for election or is appointed or elected to fill a vacancy in the office of director, as appropriate… .

Revisor's Note

(1)  Section 3(a), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, states that a person "must be at least 21 years of age" to qualify for election as a director.  The revised law omits that provision 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 3(a) was enacted in 1967.  In addition, Section 141.001(a), Election Code, establishes eligibility requirements for a public officeholder and requires a candidate for public office to be 18 years of age or older.

(2)  Section 3(a), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, specifies certain residency requirements for appointment or election to fill a vacancy in the office of a director "as appropriate."  The revised law substitutes for the quoted language a reference to Section 1031.055 because that section prescribes the procedure for filling a vacancy on the board of directors.

Revised Law

Sec. 1031.054.  BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF OFFICE.  (a)  Each director may be required to execute a good and sufficient 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 board may pay for a director's bond with district money.

(c)  Each director's bond and constitutional oath or affirmation of office shall be deposited with the district's depository bank for safekeeping.  (Acts 60th Leg., R.S., Ch. 502, Sec. 3(a) (part).)

Source Law

(a)  …  Each member of the board of directors shall qualify by executing the constitutional oath of office and may be required to execute a good and sufficient bond for $1,000 payable to said district conditioned upon the faithful performance of his duties, and such oaths and bonds shall be deposited with the depository bank of the district for safekeeping.  The board of directors may pay for the bonds if required of the directors with district funds.

…

Revisor's Note

Section 3(a), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, 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.  Additionally, 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. 1031.055.  BOARD VACANCY.  (a)  If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term.

(b)  If the number of directors is reduced to fewer than three for any reason, the remaining directors shall immediately call a special election to fill the vacancies.  If the remaining directors do not call the election, a district court, on application of a district voter or taxpayer, may order the directors to hold the election.  (Acts 60th Leg., R.S., Ch. 502, Sec. 3(c) (part).)

Source Law

(c)  …  All vacancies in the office of director shall be filled for the unexpired term by appointment of the remainder of the board of directors.  In the event the number of directors shall be reduced to less than three for any reason the remaining directors shall immediately call a special election to fill said vacancies, and upon failure to do so a district court may, upon application of any voter or taxpayer of the district, issue a mandate requiring that such election be ordered by the remaining directors.

Revised Law

Sec. 1031.056.  OFFICERS.  The board shall:

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

(2)  appoint a secretary from among its members.  (Acts 60th Leg., R.S., Ch. 502, Sec. 3(c) (part).)

Source Law

(c)  The board of directors shall organize by electing one of their number as president and by appointing one of their number as secretary… .

Revised Law

Sec. 1031.057.  COMPENSATION; EXPENSES.  A director serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties on approval of the expenses by the board.  (Acts 60th Leg., R.S., Ch. 502, Sec. 4 (part).)

Source Law

Sec. 4.  … [the board of directors of the district] who 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.

Revised Law

Sec. 1031.058.  VOTING REQUIREMENT.  A concurrence of three directors is sufficient in any matter relating to district business.  (Acts 60th Leg., R.S., Ch. 502, Sec. 3(c) (part).)

Source Law

(c)  …  [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 3(c), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, 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 majority of a board or commission constitutes a quorum.  The omitted law reads:

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

Revised Law

Sec. 1031.059.  MEETINGS.  (a)  A board meeting may be called by the president or any three directors.

(b)  Notice of the time and place of a board meeting must be given to each director at least 72 hours before the time of the meeting.

(c)  This section does not prevent the board by resolution from establishing a regular time and place for meetings for which special notice is not required.  (Acts 60th Leg., R.S., Ch. 502, Sec. 3(c) (part).)

Source Law

(c)  …  A meeting of the board of directors may be called by the president or any three directors.  Notice of the time and place of any meeting must be given to all the directors at least 72 hours before the time of the meeting.  Nothing herein shall prevent the board of directors from establishing by resolution a regular time and place for meetings, for which no special notice need be given… .

Revised Law

Sec. 1031.060.  DISTRICT ADMINISTRATOR.  (a)  The board shall appoint a district administrator.

(b)  The district administrator may not receive an employment contract for a specified term and may be terminated at any time by the board.

(c)  The district administrator may be required to execute a good and sufficient bond for $10,000 that is:

(1)  payable to the district; and

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

(d)  The district administrator's bond shall be deposited with the district's depository bank for safekeeping.

(e)  The board may pay for the bond with district money.  (Acts 60th Leg., R.S., Ch. 502, Sec. 3(b).)

Source Law

(b)  The board of directors shall appoint an administrator, who may be required to execute a good and sufficient bond for $10,000 payable to said district conditioned upon the faithful performance of the person's duties, and such oath and bond shall be deposited with the depository bank for safekeeping.  The board of directors may pay for the bond of the administrator with district funds.  The administrator shall not receive a contract for a specified term and may be terminated at any time by the board of directors.

Revisor's Note

Section 3(b), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, requires that the district administrator's bond and oath be deposited with the district's depository bank for safekeeping. The revised law omits the reference to "oath" because the district administrator is not required to take an oath.

Revised Law

Sec. 1031.061.  EMPLOYMENT AND RECRUITMENT OF STAFF AND EMPLOYEES.  (a) The board may employ a general manager and other necessary professional and clerical personnel.

(b)  The board may spend district money to recruit physicians, nurses, and other trained medical personnel. The board may pay the tuition or other expenses of a full-time medical student or other student in a health occupation who:

(1)  is enrolled in and is in good standing at an accredited medical school, college, or university; and

(2)  contractually agrees to become a district employee or independent contractor in return for that assistance.  (Acts 60th Leg., R.S., Ch. 502, Secs. 8(a) (part), (i).)

Source Law

(a)  [The board of directors of the district] … may employ a general manager, and such professional and clerical assistance as may be necessary.

(i)  The board of directors may spend district funds to recruit physicians, nurses, and other trained medical personnel.  The board of directors may contract with one or more full-time medical students or other students in a health occupation, each of whom is enrolled in good standing in an accredited medical school, college, or university, to pay the student's tuition or other expenses in consideration of the student's contractual agreement to serve as an employee or independent contractor for the district under terms prescribed by the contract.

Revisor's Note

Section 8(i), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, provides that a student who receives assistance from the district must become a district employee or independent contractor "under terms prescribed by the contract."  The revised law omits the quoted language because the provisions of a contract between the board and a student apply by their own terms.

Revised Law

Sec. 1031.062.  PERSONNEL CONTRACTS.  (a)  The board may contract to provide administrative and other personnel for the operation of the health care facilities.

(b)  The term of the contract may not exceed five years.  (Acts 60th Leg., R.S., Ch. 502, Sec. 8(e).)

Source Law

(e)  The board of directors may enter into one or more contracts to provide administrative and other personnel for the operation of the health care facilities for a term not to exceed five years.

Revised Law

Sec. 1031.063.  RETIREMENT BENEFITS.  The board may provide retirement benefits for district employees by:

(1)  establishing or administering a retirement program; or

(2)  participating in:

(A)  the Texas County and District Retirement System; or

(B)  another statewide retirement system in which the district is eligible to participate.  (Acts 60th Leg., R.S., Ch. 502, Sec. 8(h).)

Source Law

(h)  The board of directors may provide retirement benefits for the employees of the district by establishing or administering a retirement program or electing to participate in the Texas County and District Retirement System or any other statewide retirement system in which the district is eligible to participate.

Revised Law

Sec. 1031.064.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION. Except as provided by Sections 1031.054 and 1031.060, all district records, including books, accounts, notices, minutes, and all other matters of the district and the operation of its facilities, shall be:

(1)  maintained at the district office; and

(2)  open to public inspection at the district office at all reasonable hours.  (Acts 60th Leg., R.S., Ch. 502, Sec. 8(b).)

Source Law

(b)  All books, records, accounts, notices and minutes and all other matters of the district and the operation of its facilities shall, except as herein provided, be maintained at the office of the district and there be open to public inspection at all reasonable hours.

Revisor's Note

Section 8(b), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, states that records shall be maintained at the district office "except as herein provided."  For the convenience of the reader, the revised law substitutes references to Sections 1031.054 and 1031.060, which are the only exceptions provided in Chapter 502.

Revised Law

Sec. 1031.065.  SEAL.  The board may adopt a seal for the district. (Acts 60th Leg., R.S., Ch. 502, Sec. 8(a) (part).)

Source Law

(a)  [The board of directors] … shall have the power to adopt a seal for such district; and … .

Revisor's Note

(End of Subchapter)

Section 3(d), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, states that a person must file a ballot application with the board 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:

(d)  …  Any person desiring his name to be printed on the ballot as a candidate for director shall file an application with the secretary of the board of directors of the district at least 45 days before the date of election.

[Sections 1031.066-1031.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1031.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for providing medical, hospital, and health care for the district's needy and indigent residents.  (Acts 60th Leg., R.S., Ch. 502, Secs. 2 (part), 12 (part).)

Source Law

Sec. 2.  That said district hereby provided for shall assume full responsibility for providing medical and hospital care for the needy persons residing within the district; … .

Sec. 12.  … such district shall be deemed to have assumed full responsibility for the furnishing of medical and health care for the needy and indigent persons residing in said district from the date that taxes are collected for the district.

Revisor's Note

Sections 2 and 12, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, provide that the district "shall assume" full responsibility for providing medical, hospital, and health care for the district's needy residents, and Section 12 provides that the district shall assume that responsibility "from the date that taxes are collected for the district."  The revised law substitutes "has" for "shall assume" because the duty to assume the responsibility is executed.  The revised law omits "from the date that taxes are collected for the district" as executed.

Revised Law

Sec. 1031.102.  RESTRICTION ON COUNTY OR MUNICIPALITY TAXATION.  Garza County or a municipality in Garza County may not impose a tax for health care purposes.  (Acts 60th Leg., R.S., Ch. 502, Sec. 12 (part).)

Source Law

Sec. 12.  After the district has been organized pursuant to this Act, neither Garza County nor any city therein shall levy any tax for health care purposes; and … .

Revisor's Note

(1)  Section 12, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, provides that "[a]fter the district has been organized pursuant to this Act," certain political subdivisions may not levy a tax for health care purposes.  The revised law omits the quoted language as executed. In addition, throughout this chapter, the revised law substitutes "impose" for "levy" because, in context, the terms are synonymous and "impose" is more commonly used.

(2)  Section 12, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, refers to a "city."  The revised law substitutes "municipality" for "city" because that is the term used in the Local Government Code.

Revised Law

Sec. 1031.103.  MANAGEMENT AND CONTROL.  The management and control of the district is vested in the board.  (Acts 60th Leg., R.S., Ch. 502, Sec. 4 (part).)

Source Law

Sec. 4.  The management and control of such district created pursuant to the provisions of this Act is hereby vested in the board of directors of the district … .

Revised Law

Sec. 1031.104.  RULES.  (a)  The board may adopt rules governing the operation of the district, including district facilities.

(b)  On approval by the board, the rules may be published in booklet form at district expense and made available to any taxpayer on request.  (Acts 60th Leg., R.S., Ch. 502, Sec. 8(c).)

Source Law

(c)  The board of directors is specifically empowered to adopt rules and regulations governing the operation of the district and its facilities which rules and regulations shall supplement but shall not contravene any of the provisions of this Act.  Such rules and regulations may, upon approval of the board of directors, be published in booklet or pamphlet form at the expense of the district and may be made available to any taxpayer upon request.

Revisor's Note

(1)  Section 8(c), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, refers to "rules and regulations."  The revised law omits the references to "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

(2)  Section 8(c), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, provides that the board may adopt rules that "shall supplement but shall not contravene any of the provisions of 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.

(3)  Section 8(c), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, refers to publishing rules in "booklet or pamphlet form."  The revised law omits "pamphlet" because, in context, the meaning of "pamphlet" is included in the meaning of "booklet."

Revised Law

Sec. 1031.105.  PURCHASING AND ACCOUNTING PROCEDURES.  (a)  The board may prescribe the method and manner of making purchases and expenditures by and for the district.

(b)  The board shall prescribe:

(1)  all accounting and control procedures; and

(2)  the method of purchasing necessary supplies, materials, and equipment.  (Acts 60th Leg., R.S., Ch. 502, Sec. 8(a) (part).)

Source Law

Sec. 8.  (a)  The board of directors of the district shall have the power to prescribe the method and manner of making purchases and expenditures by and for the district, and also shall prescribe all accounting and control procedures; the method of purchasing necessary supplies, materials and equipment; and … .

Revised Law

Sec. 1031.106.  DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.  (a)  The board may:

(1)  purchase or lease property, including facilities or equipment, for the district to use in the health care system; and

(2)  mortgage or pledge the property as security for the payment of the purchase price.

(b)  The board may lease district health care facilities to individuals, corporations, or other legal entities for a term not to exceed 20 years.

(c)  The board may sell or otherwise dispose of the district's property, including facilities or equipment.  (Acts 60th Leg., R.S., Ch. 502, Secs. 8(d), (f), (g).)

Source Law

(d)  The board of directors may purchase or lease property, facilities, or equipment for the district to use in the health care system and may mortgage or pledge the property, facilities, or equipment as security for the payment of the purchase price.

(f)  The board of directors may transfer district health care facilities by lease to individuals, corporations, or other legal entities for a term not to exceed 20 years.

(g)  The board of directors may sell or otherwise dispose of the district's property, facilities, and equipment.

Revised Law

Sec. 1031.107.  COMPETITIVE BIDDING.  The district may not enter into a contract that requires the district to spend at least $15,000 and creates or imposes any type of obligation or liability on the district, unless the district first submits the contract to competitive bids.  (Acts 60th Leg., R.S., Ch. 502, Sec. 6(g).)

Source Law

(g)  The district shall not make any contract calling for or requiring the expenditure or payment of $15,000 or more out of any fund or funds of said district creating or imposing an obligation or liability of any nature or character upon such district, without first submitting such proposed contract to competitive bids.

Revised Law

Sec. 1031.108.  EMERGENCY MEDICAL SERVICES.  The board may spend district money to support emergency medical services in Garza County.  (Acts 60th Leg., R.S., Ch. 502, Sec. 8(k).)

Source Law

(k)  The board of directors may spend district funds to support emergency medical services in the county.

Revised Law

Sec. 1031.109.  GIFTS AND ENDOWMENTS.  The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district.  (Acts 60th Leg., R.S., Ch. 502, Sec. 14.)

Source Law

Sec. 14.  The board of directors of the district is authorized on behalf of said district to accept donations, gifts and endowments for the district to be held in trust and administered by the board of directors for such purposes and under such direction, limitations, and provisions as may be prescribed in writing by donor, not inconsistent with proper management and objects of the district.

Revisor's Note

Section 14, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, 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. 1031.110.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient who claims to be indigent is admitted to a district facility, the board shall 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 an agent designated by the district to handle the inquiry determines that the patient or those relatives cannot pay all or part of the costs of the care and treatment in the health care facility, the amount of the costs that cannot be paid becomes a charge against the district.

(c)  If it is determined that the patient or those relatives are liable to 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 to the district's depository or treasurer a specified amount each week for the patient's support.  The amount ordered must be proportionate to the person's financial ability and may not exceed the actual per capita cost of maintenance.

(d)  The district 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 designated district agent, the board shall hold a hearing and, after calling witnesses, shall:

(1)  resolve the dispute or doubt; and

(2)  issue an appropriate order.

(f)  The order may be appealed to the district court.  (Acts 60th Leg., R.S., Ch. 502, Sec. 13.)

Source Law

Sec. 13.  Whenever a patient claiming indigence has been admitted to the facilities of the district, the directors shall cause inquiry to be made as to the patient's circumstances, and of the relatives of such patients legally liable for the patient's support.  If it is found that such patient or said relatives are liable to pay for the patient's care and treatment in whole or in part, an order shall be made directing such patient, or said relatives, to pay to the treasurer of the district for the support of such patient a specified sum per week, in proportion to their financial ability, but such sum shall not exceed the actual per capita cost of maintenance.  The district shall have power and authority to collect such sum from the estate of the patient, or the patient's relatives legally liable for the patient's support, in the manner provided by law for the collection of expenses of the last illness of a deceased person.  If the agent designated by the district to handle such affairs finds that such patient or said relatives are not able to pay, either in whole or in part, for the patient's care and treatment in such health care facility, the same shall become a charge upon the district.  Should there be a dispute as to the ability to pay, or doubt in the mind of the person designated as aforesaid, the district's directors shall hear and determine same, after calling witnesses, and shall make such order as may be proper, from which appeal shall lie to the district court.

Revisor's Note

Section 13, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, states that a patient or relative found to be liable for the patient's care shall be ordered to pay the "treasurer of the district" a specified amount.  The revised law includes a reference to "depository" because Section 10 (revised as Section 1031.155) authorizes the district to designate a treasurer or depository.

Revised Law

Sec. 1031.111.  NONINDIGENT RESIDENTS.  The board may provide access to medical care to a nonindigent resident of Garza County if the nonindigent resident is charged the reasonable and customary cost of services.  (Acts 60th Leg., R.S., Ch. 502, Sec. 8(l).)

Source Law

(l)  The board of directors may provide access to medical care to nonindigent residents of Garza County if the nonindigent residents are charged the reasonable and customary cost of services.

Revised Law

Sec. 1031.112.  AUTHORITY TO SUE AND BE SUED. As a governmental agency, the district may sue and be sued in its own name in any court of this state.  (Acts 60th Leg., R.S., Ch. 502, Sec. 16 (part).)

Source Law

Sec. 16.  [The district] … as a governmental agency may sue and be sued in any and all courts of this state in the name of such district… .

Revisor's Note

(End of Subchapter)

Section 11, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, provides authority for the "Texas Department of Health" to inspect district facilities and records.  The revised law omits Section 11 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. 11.  The district established or maintained under the provisions of this Act shall be subject to inspection by any duly authorized representative of the Texas Department of Health, and any resident officers shall admit such representatives into all district facilities and give them access on demand to all records, reports, books, papers, and accounts pertaining to the district.

[Sections 1031.113-1031.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1031.151.  BUDGET.  The board annually shall require a budget to be prepared for the next fiscal year that includes:

(1)  proposed expenditures and disbursements;

(2)  estimated receipts and collections; and

(3)  the amount of taxes required to be imposed for the year.  (Acts 60th Leg., R.S., Ch. 502, Sec. 9(b) (part).)

Source Law

(b)  The board of directors shall each year cause a budget to be prepared showing the proposed expenditures and disbursements and the estimated receipts and collections for the following fiscal year and … .  The proposed budget shall also show the amount of taxes required to be levied and collected during such fiscal year and … .

Revisor's Note

Section 9(b), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, 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. 1031.152.  PROPOSED BUDGET:  NOTICE AND HEARING.  (a)  The board shall hold a public hearing on the proposed annual budget.

(b)  Notice of the hearing must be published in a newspaper of general circulation in Garza County in accordance with Chapter 551, Government Code.

(c)  Any district resident is entitled to:

(1)  appear at the time and place designated in the notice; and

(2)  be heard regarding any item included in the proposed budget.  (Acts 60th Leg., R.S., Ch. 502, Sec. 9(b) (part).)

Source Law

(b)  [The board of directors] … shall hold a public hearing on the proposed budget after publication of a notice of hearing in a newspaper of general circulation in the county in accordance with Chapter 551, Government Code.  Any person who is a resident of the district shall have the right to appear at the time and place designated in the notice and be heard with reference to any item shown in the proposed budget… .

Revised Law

Sec. 1031.153.  FISCAL YEAR.  The district operates on a fiscal year that begins on October 1 and ends on September 30.  (Acts 60th Leg., R.S., Ch. 502, Sec. 9(a) (part).)

Source Law

Sec. 9.  (a)  The fiscal year of the district authorized to be established by the provisions hereof shall commence on October 1st of each year and end on September 30th of the following year… .

Revised Law

Sec. 1031.154.  ANNUAL AUDIT.  The board annually shall have an independent audit made of the district's books and records for the fiscal year.  (Acts 60th Leg., R.S., Ch. 502, Sec. 9(a) (part).)

Source Law

(a)  …  The district directors shall cause an annual independent audit to be made of the books and records of the district, such audit to be made covering such fiscal year.

Revised Law

Sec. 1031.155.  DEPOSITORY OR TREASURER.  (a)  The board by resolution shall designate a bank or banks as the district's depository or treasurer.  A designated bank serves for two years and until a successor is designated.

(b)  All district money shall be secured in the manner provided for securing county funds.  (Acts 60th Leg., R.S., Ch. 502, Sec. 10.)

Source Law

Sec. 10.  Within 30 days after appointment and qualification of the board of directors of the district, the said directors shall by resolution designate a bank or banks as the district's depository or treasurer and all funds of the district 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.

Revisor's Note

Section 10, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, requires the board to select a depository or treasurer "[w]ithin 30 days after appointment and qualification of the board of directors of the district."  The revised law omits the quoted language as executed.

Revised Law

Sec. 1031.156.  AUTHORITY TO BORROW MONEY; 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.

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

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

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

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

(c)  A loan for which taxes or bonds are pledged must mature not later than the first anniversary of the date the loan is made.  A loan for which district revenue is pledged must mature not later than the fifth anniversary of the date the loan is made.  (Acts 60th Leg., R.S., Ch. 502, Sec. 16A.)

Source Law

Sec. 16A.  (a)  The board of directors may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time of the loan.

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

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

(2)  district taxes to be levied 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.

(c)  A loan for which taxes or bonds are pledged shall mature not later than the first anniversary of the date on which the loan is made.  A loan for which district revenues are pledged shall mature not later than the fifth anniversary of the date on which the loan is made.

[Sections 1031.157-1031.200 reserved for expansion]

SUBCHAPTER E. BONDS

Revised Law

Sec. 1031.201.  GENERAL OBLIGATION BONDS.  The board may issue general obligation bonds in the name and on the faith and credit of the district to:

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

(2)  equip buildings or improvements for health care purposes; or

(3)  acquire and operate a mobile emergency medical or air ambulance service.  (Acts 60th Leg., R.S., Ch. 502, Sec. 6(a).)

Source Law

Sec. 6.  (a)  The board of directors may issue general obligation bonds in the name and upon the faith and credit of the district to:

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

(2)  equip buildings or improvements for health care purposes; or

(3)  acquire and operate a mobile emergency medical or air ambulance service.

Revised Law

Sec. 1031.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  At the time general obligation bonds are issued by the district under Section 1031.201, 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 maintenance and operation tax the district imposes may not exceed the tax rate approved by the voters at the election authorizing the imposition of the tax.  (Acts 60th Leg., R.S., Ch. 502, Sec. 6(b) (part).)

Source Law

(b)  At the time of the issuances of any general obligation bonds by the district, a sufficient tax shall be levied to create an interest and sinking fund to pay the interest and principal as same matures, provided that the maintenance and operation tax, together with the bond tax, shall not exceed the rate of tax approved by the voters at the election authorizing the levy of taxes… .

Revisor's Note

Section 6(b), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, 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. 1031.203.  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 board may order a bond election. The election shall be conducted as provided by Chapter 1251, Government Code.

(c)  The board shall declare the results of the election.  (Acts 60th Leg., R.S., Ch. 502, Sec. 6(b) (part).)

Source Law

(b)  … The district may issue general obligation bonds only if the bonds are authorized by a majority of the qualified voters of the district voting at an election called and held for that purpose.  The board may order a bond election.  The bond election shall be conducted as provided by Chapter 1251, Government Code.  The board shall canvass the returns and declare the results of the election.

Revisor's Note

(1)  Section 6(b), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, refers to a majority vote of the "qualified" voters.  The revised law omits "qualified" as unnecessary in this context because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "qualified" voters who are residents of the territory covered by the election to vote in an election.

(2)  Section 6(b), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, refers to an election "called and held." The revised law omits the reference to "calling" an election because, in this context, "calling" an election is included in the meaning of "holding" an election.  Under Chapter 3, Election Code, all elections must be ordered (called) before they may be held.

(3)  Section 6(b), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, provides that "[t]he board shall canvass the returns" of a bond election.  The revised law omits this 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.

(4)  Section 6(d), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, requires the district to pay the costs of a bond election.  The revised law omits that provision because it duplicates Section 1.014, Election Code, applicable to the district under Section 1.002 of that code.  The omitted law reads:

(d)  … The costs of such election shall be paid by the district.

Revised Law

Sec. 1031.204.  REVENUE BONDS.  (a)  The district may issue revenue bonds for any health care purpose, including a purpose described by Section 1031.201, only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

(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 health care system.

(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 provided 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 60th Leg., R.S., Ch. 502, Sec. 6(c).)

Source Law

(c)  The district may issue revenue bonds for any health care purpose, including a purpose described by Subsection (a) of this section, only if the bonds are authorized by a majority of the qualified voters of the district voting at an election called and held for that purpose.  The bonds shall be payable from and secured by a pledge on all or part of the revenues derived from the operation of the district's health care system.  The bonds may be additionally secured by a mortgage or deed of trust on all or part of the district's property.  The revenue bonds shall be issued in the manner provided by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for the issuance of revenue bonds by county hospital authorities.

Revisor's Note

(1)  Section 6(c), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, refers to a majority vote of the "qualified" voters.  The revised law omits "qualified" for the reason stated in Revisor's Note (1) to Section 1031.203.

(2)  Section 6(c), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, refers to an election "called and held." The revised law omits the reference to "calling" an election for the reason stated in Revisor's Note (2) to Section 1031.203.

Revised Law

Sec. 1031.205.  REFUNDING BONDS.  (a)  The board may, without an election, issue refunding bonds in the manner provided by this subchapter to refund outstanding bonds issued by the district.

(b)  A refunding bond may be:

(1)  sold, with the proceeds of the refunding bond applied to the payment of the bonds to be refunded; or

(2)  exchanged wholly or partly for not less than a similar principal amount of the outstanding bonds and the unpaid matured interest on the bonds.  (Acts 60th Leg., R.S., Ch. 502, Sec. 6(f) (part).)

Source Law

(f)  In the manner hereinabove provided, the bonds of such district may, without the necessity of any election therefor, be issued for the purpose of refunding and paying off any bonded indebtedness theretofore issued by such district; such refunding bonds may be sold and the proceeds thereof applied to the payment of any such outstanding bonds or may be exchanged in whole or in part for not less than a like amount, of said outstanding bonds and interest matured thereon, but unpaid; … .

Revisor's Note

Section 6(f), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, provides that refunding bonds may not bear interest at a rate that, when calculated in accordance with recognized standard bond interest cost tables, exceeds the average annual interest cost of the bonds to be refunded unless the total interest cost on the refunding bonds is less than the total interest cost on the bonds to be refunded.  Section 6(f) also provides that any premium required to be paid on the bonds to be refunded before the bonds' maturity date is to be used in computing the total interest cost of the refunding bonds.  The revised law omits that provision as impliedly repealed by Section 2(a), Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), which was revised in 1999 as Section 1204.006(a), Government Code.  Section 1204.006(a), Government Code, permits a public agency to issue bonds at a net effective interest rate not to exceed 15 percent.  Section 1204.006(a) applies to bonds issued under this chapter by application of Section 1204.001, Government Code.  The omitted law reads:

(f)  … provided the average interest cost per annum on the refunding bonds, computed in accordance with recognized standard bond interest cost tables shall not exceed the average interest cost per annum so computed, upon the bonds to be discharged out of the proceeds of the refunding bonds, unless the total interest cost on the refunding bonds, computed to their respective maturity dates, is less than the total interest cost so computed on the bonds to be discharged out of such proceeds.  In the foregoing computations, any premium or premiums required to be paid upon the bonds to be refunded as a condition to payment in advance of their stated maturity dates shall be taken into account as an addition to the net interest cost to the district of the refunding bonds.

Revised Law

Sec. 1031.206.  MATURITY OF BONDS.  District bonds must mature not later than the 40th anniversary of the date of issuance.  (Acts 60th Leg., R.S., Ch. 502, Sec. 6(e) (part).)

Source Law

(e)  Bonds of the district must mature not later than the 40th anniversary of the date of issuance and … .

Revisor's Note

Section 6(e), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, provides that district bonds must bear interest at a rate not to exceed that provided by Chapter 1204, Government Code. Section 1204.006, Government Code, permits a public agency, including a hospital district, to issue public securities at any net effective interest rate of 15 percent or less and applies to the district under Section 1204.001, Government Code.  The revised law omits the reference because it duplicates Section 1204.006, Government Code.  The omitted law reads:

(e)  [Bonds of the district]… must bear a rate of interest that does not exceed the amount provided by Chapter 1204, Government Code.

Revised Law

Sec. 1031.207.  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 60th Leg., R.S., Ch. 502, Sec. 6(d) (part).)

Source Law

(d)  Bonds of the district shall be executed in the name of the district and on its behalf by the president of the board of directors, and countersigned by the secretary of the board of directors, and … .

Revisor's Note

Section 6(d), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, 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 6(d) also provides that after approval and registration the bonds are "incontestable for any cause."  The revised law omits those provisions as superseded by Chapter 1202, Government Code (enacted as Article 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987).  Section 1202.003(a), Government Code, requires bonds to be submitted to the attorney general.  Section 1202.003(b), Government Code, provides for approval of the bonds by the attorney general and requires the attorney general to submit the approved bonds to the comptroller for registration.  Section 1202.005, Government Code, requires registration of the bonds by the comptroller.  Section 1202.006, Government Code, provides that after approval and registration the bonds are incontestable and binding obligations.  Chapter 1202, Government Code, applies to bonds issued under this chapter by application of Section 1202.001, Government Code.  The omitted law reads:

(d)  [Bonds of the district] … shall be subject to the same requirements in the matter of approval thereof by the Attorney General of the State of Texas and registration thereof by the Comptroller of Public Accounts of the State of Texas as are by law provided for such approval and registration of bonds of such county.  Upon the approval of such bonds by the Attorney General of Texas the same shall be incontestable for any cause… .

Revisor's Note

(End of Subchapter)

(1)  Section 15, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, 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 15 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 15 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. 15.  All bonds and warrants issued by or assumed by the district authorized to be established and created under the provisions of this Act shall be and are declared to be legal and authorized investments for banks, savings banks, trust companies, building and loan associations, insurance companies, fiduciaries, trustees, and for the sinking funds of cities, towns, villages, counties, school districts, or other political corporations or subdivisions of the State of Texas… .

(2)  Section 15, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, effectively provides that district bonds may secure deposits of public funds of this state or political subdivisions of this state.  The revised law omits the provisions as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions.  The omitted law reads:

Sec. 15.  … Such 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 such bonds shall be lawful and sufficient security for said deposits at their face value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1031.208-1031.250 reserved for expansion]

SUBCHAPTER F. TAXES

Revised Law

Sec. 1031.251.  IMPOSITION OF AD VALOREM TAX.  (a)  On final approval of the annual budget, the board shall impose a tax on all property in the district subject to district taxation.

(b)  The tax may be used to:

(1)  pay the interest on and create a sinking fund for warrants issued by the district for health care purposes;

(2)  pay for the maintenance and operation expenses of the district and health care system;

(3)  pay for indebtedness issued or assumed by the district;

(4)  make improvements and additions to the health care system; and

(5)  acquire necessary sites for the health care system by purchase, lease, or condemnation.

(c)  The district may not impose a tax to pay the principal of or interest on revenue bonds issued under this chapter.  (Acts 60th Leg., R.S., Ch. 502, Secs. 5(a), (b) (part), (c), 9(b) (part).)

Source Law

Sec. 5.  (a)  The board of directors shall have the power and authority and it shall be their duty to levy a tax on all property subject to district taxation for the benefit of the district.  All taxes of the district shall be assessed and collected as provided by Subsections (b) and (c).

(b)  The board of directors may annually impose property taxes … .  The taxes may be used for the purposes provided by Subsection (c).  The district may not impose taxes to pay the principal of or interest on revenue bonds… .

(c)  The taxes may be used to:

(1)  pay the interest on and create a sinking fund for warrants that may be issued by the district for health care purposes;

(2)  pay for the maintenance and operating expenses of the district and health care system;

(3)  pay for indebtedness issued or assumed by the district;

(4)  make further improvements and additions to the health care system; and

(5)  acquire necessary sites for the health care system by purchase, lease, or condemnation.

[Sec. 9]

(b) … upon final approval of the budget, the board of directors shall levy such tax as may be required and … .

Revisor's Note

Section 9(b), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, requires the board 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)  … [the board of directors shall] … certify the tax rate for such year to the county tax assessor and collector as provided in Section 5 hereof, and … .

Revised Law

Sec. 1031.252.  TAX RATE.  (a)  The board may impose the tax at a rate not to exceed the limit approved by the voters at the election authorizing the imposition of the tax.

(b)  The tax rate for all purposes may not exceed 75 cents on each $100 valuation of all taxable property in the district.  (Acts 60th Leg., R.S., Ch. 502, Sec. 5(b) (part).)

Source Law

(b)  [The board of directors may annually impose property taxes] in an amount not to exceed the limit approved by the voters at the election authorizing the levy of taxes.  The tax rate for all purposes may not exceed 75 cents on each $100 valuation of all taxable property in the district… .

Revised Law

Sec. 1031.253.  ELECTION TO INCREASE MAXIMUM TAX RATE.  The board may call an election to increase the maximum tax rate of the district to a specified rate allowed by law on each $100 valuation of the taxable property in the district if the board determines that an increase is necessary to carry out the purposes for which the initial tax rate was authorized.  (Acts 60th Leg., R.S., Ch. 502, Sec. 7 (part).)

Source Law

Sec. 7.  The board of directors shall have the authority to call an election on the question of whether or not the tax hereinabove provided for shall be increased to a specified rate allowed by law on the $100 valuation of all taxable property within the district, if and when the board of directors determines that an increase in such tax rate is necessary to carry out the purposes for which the initial tax rate was authorized… .

Revisor's Note

Section 7, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, provides that the election to increase the maximum tax rate must be held in the same manner as the election for the levy of the initial tax.  The procedures for holding the election on the creation of the district and the imposition of the initial tax are omitted from the revised law for the reason stated in the revisor's note at the end of Subchapter A.  It is clear from the context of the omitted provisions that the specified procedures would not comply with applicable provisions prescribed by the Election Code in relation to an election to increase the maximum tax rate.  Because Section 1.002, Election Code, states that the Election Code applies to all elections held in this state, it is unnecessary to substitute a reference to the Election Code for the omitted law.  The omitted law reads:

Sec. 7.  … Said election shall be held in the same manner as the election for the levy of the initial tax as hereinabove provided.

Revised Law

Sec. 1031.254.  TAX ASSESSOR-COLLECTOR.  (a)  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.

(b)  The tax assessor-collector shall assess and collect taxes imposed by the district. (Acts 60th Leg., R.S., Ch. 502, Secs. 5(b) (part), 9(b) (part).)

Source Law

[Sec. 5]

(b) … 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.

[Sec. 9]

(b) … it shall be the duty of the said tax assessor and collector to assess and collect such tax.

Revisor's Note

(End of Subchapter)

(1)  Section 8(j), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, authorizes the board to institute a suit to enforce the payment of taxes and to foreclose liens to secure that payment.  The revised law omits that provision because it duplicates Chapter 33, Tax Code, which authorizes a taxing unit of government to file suit to enforce the payment of taxes and to foreclose a lien to secure that payment.  The omitted law reads:

(j)  The board of directors may institute a suit to enforce the payment of taxes and to foreclose liens to secure the payment of taxes due to the district.

(2)  Section 5(d), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, 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:

(d)  The board of directors shall have the authority to levy the tax aforesaid for the entire year in which the said district is established.

(3)  Section 5(b), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, provides that the Tax Code governs the appraisal, assessment, and collection of district taxes.  The revised law omits this provision because Section 1.02, Tax Code, requires all taxing units of government to administer the assessment and collection of an ad valorem tax in conformity with Title 1, Tax Code.  The omitted law reads:

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

[Sections 1031.255-1031.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Revised Law

Sec. 1031.301.  DISSOLUTION; ELECTION.  (a)  The district may be dissolved 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 10 percent of the registered voters in the district.

(d)  The election shall be held not later than the 60th day after the date the election is ordered.

(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 60th Leg., R.S., Ch. 502, Secs. 16B(a), (b), (c).)

Source Law

Sec. 16B.  (a)  The district may be dissolved only if the dissolution is 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 obligations.  The board of directors shall order an election if the board receives a petition requesting an election that is signed by a number of registered voters of the district equal to at least 10 percent of the registered voters in the district.

(c)  The election shall be held not later than the 60th day after the date the election is ordered.  Section 41.001(a), Election Code, does not apply to an election ordered under this section.  The order calling the election shall 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.

Revisor's Note

(1)  Section 16B(a), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, provides for dissolution of the district if approved by a majority of the "qualified" voters.  The revised law omits "qualified" for the reason stated in Revisor's Note (1) to Section 1031.203.

(2)  Section 16B(a), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, provides that the district may be dissolved if authorized at an election "called and held" for that purpose.  The revised law omits the reference to "calling" an election for the reason stated in Revisor's Note (2) to Section 1031.203.

Revised Law

Sec. 1031.302.  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 not later than the 35th day before the date set for the election.  (Acts 60th Leg., R.S., Ch. 502, Sec. 16B(d) (part).)

Source Law

(d)  The board of directors shall give notice of the election by publishing a substantial copy of the election order in a newspaper of general circulation in the district once a week for two consecutive weeks.  The first publication must appear not fewer than 35 days before the date set for the election… .

Revised Law

Sec. 1031.303.  BALLOT. The ballot for an election under this subchapter must be printed to permit voting for or against the proposition: "The dissolution of the Garza County Health Care District." (Acts 60th Leg., R.S., Ch. 502, Sec. 16B(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 Garza County Health Care District."

Revised Law

Sec. 1031.304.  ELECTION RESULTS.  (a)  If a majority of the votes in an election under this subchapter favor dissolution, the board shall find that the district is dissolved.

(b)  If a majority of the votes in the election do not favor dissolution, 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.  (Acts 60th Leg., R.S., Ch. 502, Sec. 16B(e).)

Source Law

(e)  If a majority of the votes in the election favor dissolution, the board of directors shall find that the district is dissolved.  If a majority of the votes in the election do not favor dissolution, the board of directors shall continue to administer the district, and another election on the question of dissolution may not be held before the first anniversary of the most recent election to dissolve the district.

Revised Law

Sec. 1031.305.  TRANSFER, SALE, OR ADMINISTRATION OF ASSETS.  (a)  If a majority of the votes in the election held under this subchapter favor dissolution, the board shall:

(1)  transfer the land, buildings, improvements, equipment, and other assets that belong to the district to Garza County or another governmental entity in Garza County;

(2)  sell the assets and liabilities to another person; or

(3)  administer the property, assets, and debts until all money has been disposed of and all district debts have been paid or settled.

(b)  If the board makes the transfer under Subsection (a)(1), the county or entity assumes all debts and obligations of the district at the time of the transfer, and the district is dissolved.

(c)  If Subsections (a)(1) and (2) do not apply and the board administers the property, assets, and debts of the district under Subsection (a)(3), the district is dissolved when all money has been disposed of and all district debts have been paid or settled.  (Acts 60th Leg., R.S., Ch. 502, Secs. 16B(f), (g), (m) (part).)

Source Law

(f)  If a majority of the votes in the election favor dissolution, the board of directors shall:

(1)  transfer the land, buildings, improvements, equipment, and other assets that belong to the district to Garza County or another governmental entity in Garza County;

(2)  sell the assets and liabilities to another person or entity; or

(3)  administer the property, assets, and debts until all funds have been disposed of and all district debts have been paid or settled.

(g)  If the district transfers the land, buildings, improvements, equipment, and other assets to Garza County or another governmental entity in Garza County, the county or entity assumes all debts and obligations of the district at the time of the transfer, at which time the district is dissolved.  If the district does not transfer the land, buildings, improvements, equipment, and other assets to Garza County or another governmental entity in Garza County, or sell those assets and the liabilities to another person or entity, the board of directors shall administer the property, assets, and debts of the district until all funds have been disposed of and all district debts have been paid or settled, at which time the district is dissolved.

(m)  The district may provide for the sale or transfer of the district's assets and liabilities to another person or entity and the district's subsequent dissolution. …

Revisor's Note

Sections 16B(f) and (m), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, refer to "another person or entity."  The revised law omits "entity" because "entity" is included in the meaning of "person" under Section 311.005(2), Government Code (Code Construction Act).

Revised Law

Sec. 1031.306.  SALE OR TRANSFER OF ASSETS AND LIABILITIES.  (a)  The dissolution of the district and the sale or transfer of the district's assets and liabilities to another person may not contravene a trust indenture or bond resolution relating to the district's outstanding bonds.  The dissolution and sale or transfer does not diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district.

(b)  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.

(c)  The district may not transfer or dispose of the district's assets except for due compensation unless:

(1)  the transfer is made to another governmental entity that serves the district; and

(2)  the transferred assets are to be used for the benefit of the district's residents.

(d)  A grant from federal funds is an obligation to be repaid in satisfaction.  (Acts 60th Leg., R.S., Ch. 502, Secs. 16B(m) (part), (n).)

Source Law

(m)  …  The dissolution of the district and the sale or transfer of the district's assets and liabilities to another person or entity may not contravene a trust indenture or bond resolution relating to the outstanding bonds of the district.  The dissolution and sale or transfer does not diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district.

(n)  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 to be repaid in satisfaction.  The district may not transfer or dispose of the district's assets except for due compensation unless the transfer is made to another governmental entity that serves the district and the transferred assets are to be used for the benefit of the residents of the district.

Revisor's Note

Section 16B(m), Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, refers to "another person or entity."  The revised law omits "entity" because "entity" is included in the meaning of "person" under Section 311.005(2), Government Code (Code Construction Act).

Revised Law

Sec. 1031.307.  IMPOSITION OF TAX AND RETURN OF SURPLUS TAXES.  (a)  After the board finds that the district is dissolved, the board shall:

(1)  determine the debt owed by the district; and

(2)  impose on the property included in the district's tax rolls a tax that is in proportion of the debt to the property value.

(b)  On the payment of all outstanding debts and obligations of the district, the board shall order the secretary to return to each district taxpayer the taxpayer's pro rata share of all unused tax money.

(c)  A taxpayer may request that the taxpayer's share of surplus tax money be credited to the taxpayer's county taxes.  If a taxpayer requests the credit, the board shall direct the secretary to transmit the money to the county tax assessor-collector.  (Acts 60th Leg., R.S., Ch. 502, Secs. 16B(h), (i), (j).)

Source Law

(h)  After the board of directors finds that the district is dissolved, the board of directors shall:

(1)  determine the debt owed by the district; and

(2)  impose on the property included in the district's tax rolls a tax that is in proportion of the debt to the property value.

(i)  When all outstanding debts and obligations of the district are paid, the board of directors shall order the secretary to return the pro rata share of all unused tax money to each district taxpayer.

(j)  A taxpayer may request that the taxpayer's share of surplus tax money be credited to the taxpayer's county taxes.  If a taxpayer requests the credit, the board of directors shall direct the secretary to transmit the funds to the county tax assessor-collector.

Revised Law

Sec. 1031.308.  REPORT; DISSOLUTION ORDER.  (a)  After the district has paid all district debts and has disposed of all district money and other assets as prescribed by this subchapter, the board shall file a written report with the Commissioners Court of Garza County summarizing the board's actions in dissolving the district.

(b)  Not later than the 10th day after the date the Commissioners Court of Garza County receives the report and determines that the requirements of this subchapter have been fulfilled, the commissioners court shall enter an order dissolving the district and releasing the board from any further duty or obligation. (Acts 60th Leg., R.S., Ch. 502, Secs. 16B(k), (l).)

Source Law

(k)  After the district has paid all its debts and has disposed of all its assets and funds as prescribed by this section, the board of directors shall file a written report with the Commissioners Court of Garza County setting forth a summary of the board of directors' actions in dissolving the district.

(l)  Not later than the 10th day after the date it receives the report and determines that the requirements of this section have been fulfilled, the Commissioners Court of Garza County shall enter an order dissolving the district and releasing the board of directors from any further duty or obligation.

Revisor's Note

(End of Chapter)

(1)  Section 17, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, provides that the act is severable.  The revised law omits that provision because it duplicates Section 311.032, Government Code (Code Construction Act), which provides that a provision of a statute is severable from each other provision of the statute that can be given effect.  The omitted law reads:

Sec. 17.  … 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 provisions or provisions hereof.

(2)  Section 18, Chapter 502, Acts of the 60th Legislature, Regular Session, 1967, 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. 18.  Proof of publication of the constitutional notice required in the enactment hereof under the provisions of Section 9 of Article IX and all other applicable provisions 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 is hereby found and declared to be proper and sufficient to satisfy such requirement.