80C42(2) KEG

 

 

CHAPTER 1012.  CHILDRESS COUNTY HOSPITAL DISTRICT

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 1012.001.  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 Childress County Hospital District.  (New.)

Revisor's Note

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

Revised Law

Sec. 1012.002.  AUTHORITY FOR CREATION.  The Childress County Hospital District is created under the authority of Section 9, Article IX, Texas Constitution.  (Acts 59th Leg., R.S., Ch. 647, Sec. 1 (part).)

Source Law

Sec. 1.  Pursuant to authority granted by the provisions of Section 9 of Article IX of the Constitution of the State of Texas, Childress County Hospital District is hereby authorized to be created and … .

Revised Law

Sec. 1012.003.  ESSENTIAL PUBLIC FUNCTION.  The district performs an essential public function in carrying out the purposes of this chapter. (Acts 59th Leg., R.S., Ch. 647, Sec. 10 (part).)

Source Law

Sec. 10.  In carrying out the purposes of this Act, the District will be performing an essential public function and … .

Revised Law

Sec. 1012.004.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of Childress County, Texas.  (Acts 59th Leg., R.S., Ch. 647, Sec. 1 (part).)

Source Law

Sec. 1.   … [Childress County Hospital District] … as created shall have boundaries coextensive with the boundaries of Childress County, Texas, and … .

Revised Law

Sec. 1012.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION.  The support and maintenance of the district may not become a charge against or obligation of this state.  (Acts 59th Leg., R.S., Ch. 647, Sec. 21 (part).)

Source Law

Sec. 21.  The support and maintenance of the Childress County Hospital District shall never become a charge against or obligation of the State of Texas, … .

Revised Law

Sec. 1012.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.  The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 59th Leg., R.S., Ch. 647, Sec. 21 (part).)

Source Law

Sec. 21.  … nor shall any direct appropriation be made by the Legislature for the construction, maintenance or improvement of any of the facilities of such District.

Revisor's Note

(End of Subchapter)

(1)  Section 1, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, provides that the district has "such rights, powers and duties as are hereinafter prescribed."  The revised law omits that provision because the chapter states the district's rights, powers, and duties.  The omitted law reads:

Sec. 1.  … [Childress County Hospital District … shall] … possess such rights, powers and duties as are hereinafter prescribed.

(2)  Sections 3 and 8, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, provide procedures for holding an election on creation of the district and the imposition of an ad valorem tax.  Because the creation of the district and the imposition of the tax were approved at the election, the revised law omits the relevant law as executed.  The omitted law reads:

Sec. 3.  The District shall not be created, nor shall any tax therein be authorized unless and until such creation and such tax are approved by a majority of the qualified property taxpaying electors of the District voting at an election called for such purpose.  Such election may be initiated by the Commissioners Court of Childress County upon its own motion, or shall be called by said Commissioners Court upon presentation of a petition therefor signed by at least one hundred (100) qualified property taxpaying electors of the District.  Such election shall be held not less than thirty (30) nor more than sixty (60) days from the time such election is ordered by the Commissioners Court.  The order calling the election shall specify the time and places of holding same, the form of ballot, and the presiding judge for each voting place.  Notice of election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in the County once a week for two consecutive weeks, the first publication to appear at least thirty (30) days prior to the date established for the election.  The failure of such election shall not operate to prohibit the calling and holding of subsequent elections for the same purpose.

At said election there shall be submitted to the qualified property taxpaying electors of the District the proposition of whether or not the hospital district shall be created with authority to levy annual taxes at a rate not to exceed seventy-five cents (75¢) on the one hundred dollar valuation of taxable property within such District for the purpose of meeting the requirements of the District's bonds, indebtedness assumed by it, and its maintenance and operating expenses, and a majority of the qualified property taxpaying electors of the District voting at said election in favor of the proposition shall be sufficient for its adoption.

The ballots for such creation election shall have printed thereon the following:

"FOR the creation of Childress County Hospital District providing for the levy of a tax not to exceed seventy-five cents (75¢) on the one hundred dollar valuation using Childress County values and Childress County tax rolls, and providing for the assumption by such District of all outstanding bonds and indebtedness heretofore issued by Childress County and by any city or town within said County for hospital purposes.

"AGAINST the creation of Childress County Hospital District, providing for the levy of a tax not to exceed seventy-five cents (75¢) on the one hundred dollar valuation using Childress County values and Childress County tax rolls, and providing for the assumption by such District of all outstanding bonds and indebtedness heretofore issued by Childress County and by any city or town within said County for hospital purposes."

Sec. 8.  A petition for an election to create the hospital district (as provided in Section 3) presented to the Commissioners Court may incorporate a request that a separate proposition be submitted at such election as to whether or not the Board of Directors of the District (in the event same is created) shall be authorized to issue bonds for the purposes specified in Section 7.  Such petition shall specify the maximum amount of bonds to be issued, their maximum maturity and maximum interest rate, and the same shall be included as a proposition submitted at the election.

[Sections 1012.007-1012.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1012.051.  BOARD ELECTION; TERM.  (a)  The district is governed by a board of seven 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, with three directors elected in even-numbered years and four directors elected in odd-numbered years; and

(2)  a director's election shall be held each year on the May uniform election date prescribed by Section 41.001, Election Code.  (Acts 59th Leg., R.S., Ch. 647, Secs. 4(a), (b) (part).)

Source Law

Sec. 4.  (a)  The District is governed by a Board of Directors composed of seven (7) members elected as provided by this Act. The Directors serve staggered terms of two years.  Three Directors shall be elected in even-numbered years and four Directors shall be elected in odd-numbered years. Directors are elected at large.

(b)  A regular election for Directors shall be held on the May uniform election date under Section 41.001, Election Code, each year… .

Revisor's Note

Section 4(a), Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, provides that directors serve two-year terms.  Section 285.081, Health and Safety Code, applicable to this hospital district, provides a mechanism by which the governing board of a hospital district, on its own motion, may order that the members are to be elected in even-numbered years to serve staggered four-year terms.  The revised law is drafted accordingly and adds a reference to Section 285.081, Health and Safety Code, for the convenience of the reader.

Revised Law

Sec. 1012.052.  QUALIFICATIONS FOR OFFICE.  (a)  To be eligible to serve as a director, a person must be:

(1)  a resident of the district; and

(2)  a qualified voter.

(b)  An employee of the district may not serve as a director.  (Acts 59th Leg., R.S., Ch. 647, Sec. 4(d).)

Source Law

(d)  Any person who is a resident of the District and a qualified voter shall be eligible to hold office as Director of the District, except that an employee of the District may not serve as a Director.

Revised Law

Sec. 1012.053.  BOARD VACANCY.  If a vacancy occurs in the office of director, the remaining directors shall, by majority vote, appoint a director for the unexpired term.  (Acts 59th Leg., R.S., Ch. 647, Sec. 4(b) (part).)

Source Law

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

Revised Law

Sec. 1012.054.  OFFICERS.  (a)  The board shall elect a president and vice president from among its members.

(b)  The board shall appoint a secretary, who need not be a director.

(c)  The president has the same right to vote as any other director.

(d)  If the president is absent or fails and declines to act, the vice president shall perform the president's duties and exercise the president's powers under this chapter.  (Acts 59th Leg., R.S., Ch. 647, Sec. 4(e).)

Source Law

(e)  The Board of Directors shall elect from its number a president and vice president and shall appoint a secretary who is not required to be a Director.  The president has the same right to vote as any other Director.  The vice president shall perform all duties and exercise all powers conferred by this Act upon the president when the president is absent or fails and declines to act.

Revised Law

Sec. 1012.055.  COMPENSATION; EXPENSES.  A director serves without compensation but may be reimbursed for actual expenses incurred in attending to district business.  The expenses must be:

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

(2)  approved by the remainder of the board.  (Acts 59th Leg., R.S., Ch. 647, Sec. 4(c).)

Source Law

(c)  A Director is not entitled to compensation, but is entitled to reimbursement for actual expenses incurred in attending to the District's business, provided that the expenses are reported in the District's minute book or other District records and approved by the remainder of the Board.

Revisor's Note

Section 4(c), Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, requires that approved expenses be reported in the "District's minute book or other District records."  The revised law omits the reference to the "District's minute book" because the minute book is a district record.

Revised Law

Sec. 1012.056.  VOTING REQUIREMENT.  A concurrence of four directors is sufficient in any matter relating to district business.  (Acts 59th Leg., R.S., Ch. 647, Sec. 4(f) (part).)

Source Law

(f)  … [the Board] … the concurrence of four Directors shall be sufficient in all matters pertaining to the business of the District… .

Revisor's Note

Section 4(f), Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, provides that four directors constitute a quorum.  The revised law omits that provision because it duplicates Section 311.013, Government Code (Code Construction Act), which provides that a majority of a board or commission constitutes a quorum.  The omitted law reads:

(f)  Any four members of the Board shall constitute a quorum and … .

Revised Law

Sec. 1012.057.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.  (a)  The board shall:

(1)  keep an account of all board meetings and proceedings; and

(2)  maintain at the district's principal office all district records and accounts, including all contracts, notices, duplicate vouchers, and duplicate receipts.

(b)  The information described by Subsection (a) shall be open to public inspection at the district's principal office at all reasonable times. (Acts 59th Leg., R.S., Ch. 647, Sec. 4(f) (part).)

Source Law

(f)  … The Board shall require the keeping of a true account of all its meetings and proceedings and shall preserve all contracts, records, notices, duplicate vouchers, duplicate receipts, and all accounts and records of the District at its principal office, where same shall be open to public inspection at all reasonable times.

Revisor's Note

Section 4(f), Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, requires the board to keep a "true" account of all board meetings and proceedings.  The revised law omits the reference to "true" because the requirement that an account be kept presumes the requirement that the account be true.  In addition, under Section 37.10, Penal Code, a person who knowingly makes a false entry in a governmental record commits the offense of tampering with a governmental record.

Revised Law

Sec. 1012.058.  INDIVIDUAL LIABILITY OF DIRECTORS.  A director is individually liable only for the director's individual misapplication of public money.  (Acts 59th Leg., R.S., Ch. 647, Sec. 5(a) (part).)

Source Law

(a)  … The members of the Board of Directors shall be individually liable only for their individual misapplication of public funds.

Revised Law

Sec. 1012.059.  CHIEF EXECUTIVE OFFICER; ASSISTANT CHIEF EXECUTIVE OFFICER.  (a)  The board shall appoint a qualified person to be known as the chief executive officer of the district.

(b)  The chief executive officer may appoint an assistant to the chief executive officer.

(c)  The chief executive officer is entitled to the compensation determined by the board.

(d)  The board may execute an employment contract with the chief executive officer for a term of not more than three years.  The employment contract may be renewed or extended annually.  (Acts 59th Leg., R.S., Ch. 647, Sec. 5(b).)

Source Law

(b)  The Board of Directors shall appoint a qualified person to be known as the chief executive officer of the hospital district, who may in the person's own discretion appoint an assistant to the chief executive officer.  The chief executive officer shall receive compensation as may be fixed by the Board, and the Board may execute an employment contract with the chief executive officer.  In no event may the contract be for more than three (3) years, but the contract may be renewed or extended annually.

Revised Law

Sec. 1012.060.  GENERAL DUTIES OF CHIEF EXECUTIVE OFFICER.  The chief executive officer shall:

(1)  stay informed on the latest methods of hospital administration and the care of hospital patients; and

(2)  subject to the limitations prescribed by the board:

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

(B)  direct the affairs of the district. (Acts 59th Leg., R.S., Ch. 647, Sec. 5(c) (part).)

Source Law

(c)  … The chief executive officer shall keep abreast of and be informed on the latest methods of hospital administration and the care of hospital patients, and shall supervise all the work and activities of the District and shall have general direction of the affairs of the District, subject to such limitations as may be prescribed by the Board.

Revised Law

Sec. 1012.061.  EMPLOYEES.  The board shall authorize the chief executive officer to employ nurses, technicians, and other employees for the efficient operation of the district.  (Acts 59th Leg., R.S., Ch. 647, Sec. 5(d).)

Source Law

(d)  The Board of Directors shall authorize the chief executive officer to employ, for the efficient operation of the District, nurses, technicians, and other employees of the District.

Revised Law

Sec. 1012.062.  LEGAL COUNSEL; OTHER PROFESSIONAL SERVICES.  The board may employ legal counsel or contract for other professional services as the board considers advisable. (Acts 59th Leg., R.S., Ch. 647, Sec. 17.)

Source Law

Sec. 17.  The Board of Directors, at its discretion, shall be authorized to employ legal counsel or contract for other professional services, when it deems advisable.

Revised Law

Sec. 1012.063.  RECRUITMENT OF MEDICAL PERSONNEL.  (a)  The board may spend district money to recruit physicians, nurses, and other trained medical personnel.

(b)  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 59th Leg., R.S., Ch. 647, Sec. 5(h).)

Source Law

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

Revised Law

Sec. 1012.064.  PERSONNEL CONTRACTS.  (a)  The board may contract to provide administrative and other personnel for the operation of the hospital facilities.

(b)  The term of the contract may not exceed 25 years.  (Acts 59th Leg., R.S., Ch. 647, Sec. 5(g) (part).)

Source Law

(g)  The Board of Directors may enter into a contract or contracts to provide administrative and other personnel for the operation of the hospital facilities.  The term of the contract may not exceed 25 years… .

Revised Law

Sec. 1012.065.  EDUCATIONAL PROGRAMS; COURSES. The board may provide or contract for the provision of educational programs or courses for district employees and medical staff. (Acts 59th Leg., R.S., Ch. 647, Sec. 5(j).)

Source Law

(j)  The Board of Directors may provide or contract for the provision of educational programs or courses for employees and medical staff of the District.

Revised Law

Sec. 1012.066.  RETIREMENT BENEFITS.  The board may provide retirement benefits for district employees by:

(1)  establishing or administering a retirement program; or

(2)  electing to participate in:

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

(B)  another statewide retirement system in which the district is eligible to participate.  (Acts 59th Leg., R.S., Ch. 647, Sec. 5(l).)

Source Law

(l)  The Board of Directors may provide retirement benefits for employees of the District by:

(1)  establishing or administering a retirement program; or

(2)  electing to participate in the Texas County and District Retirement System or in any other statewide retirement system in which the District is eligible to participate.

[Sections 1012.067-1012.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1012.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for:

(1)  operating all hospital facilities for providing medical and hospital care to indigent persons in the district; and

(2)  providing medical and hospital care for the district's needy inhabitants.  (Acts 59th Leg., R.S., Ch. 647, Secs. 2 (part), 20 (part).)

Source Law

Sec. 2.  … Such District shall assume full responsibility for providing medical and hospital care for its needy inhabitants and … .

Sec. 20.  … The said hospital district shall assume full responsibility for the operation of all hospital facilities for the furnishing of medical and hospital care of indigent persons within its boundaries.

Revisor's Note

Sections 2 and 20, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, provide that the district "shall assume" full responsibility for providing medical and hospital care for the district's needy inhabitants and for the operation of hospital facilities for the indigent.  The revised law substitutes "has" for the quoted language because the duty to assume the responsibility is executed.

Revised Law

Sec. 1012.102.  RESTRICTION ON COUNTY OR MUNICIPALITY TAXATION AND DEBT.  Childress County or a municipality in Childress County may not impose a tax or issue bonds or other obligations for hospital purposes or for medical treatment of indigent persons in the district.  (Acts 59th Leg., R.S., Ch. 647, Sec. 20 (part).)

Source Law

Sec. 20.  After creation of the hospital district, neither Childress County, Texas, nor any city or town therein shall thereafter issue bonds or other evidences of indebtedness for hospital purposes or for medical treatment of indigent persons within such boundaries, nor shall such political subdivisions levy taxes for either of such purposes… .

Revisor's Note

(1)  Section 20, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, provides that "[a]fter creation of the hospital district," the county or any city or town in the county may not issue bonds or levy certain taxes.  The revised law omits the quoted language as executed.

(2)  Section 20, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, refers to a "city or town."  The revised law substitutes "municipality" for "city or town" to conform to the terminology of the Local Government Code.

(3)  Section 20, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, provides that any city or town in Childress County may not issue certain bonds or other "evidences of indebtedness."  The revised law substitutes "obligations" for "evidences of indebtedness" because, in context, the terms are synonymous and "obligations" is more commonly used.  Section 20 also states that a city or town may not "levy" taxes for hospital purposes.  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.

Revised Law

Sec. 1012.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  (a)  The board shall manage, control, and administer the district's hospitals and hospital system.

(b)  The board may delegate to the chief executive officer the authority to manage, control, and administer the hospital, the hospital system, and the district's business, money, and resources under the board's oversight.  (Acts 59th Leg., R.S., Ch. 647, Secs. 5(a) (part), (c) (part).)

Source Law

Sec. 5.  (a)  The Board of Directors shall manage, control and administer the hospitals and hospital system of the District… .

(c)  The Board of Directors may delegate to the chief executive officer the authority to manage, control, and administer the hospital, the hospital system, and the business, funds, and resources of the District under the oversight of the Board… .

Revised Law

Sec. 1012.104.  HOSPITAL SYSTEM.  The district shall provide for the establishment of a hospital system by:

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

(2)  equipping the buildings; and

(3)  administering the buildings and equipment for hospital purposes.  (Acts 59th Leg., R.S., Ch. 647, Sec. 2 (part).)

Source Law

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

Revised Law

Sec. 1012.105.  RULES.  The board may adopt rules for the operation of the district and as required to administer this chapter.  (Acts 59th Leg., R.S., Ch. 647, Secs. 5(a) (part), 11 (part).)

Source Law

Sec. 5.  (a)  … The District through its Board of Directors shall have the power and authority … to promulgate rules and regulations for the operation of the District… .

Sec. 11.  The Board of Directors of such District shall have the power … to make such rules and regulations as may be required to carry out the provisions of this Act… .

Revisor's Note

Sections 5(a) and 11, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, provide that the board may "promulgate rules and regulations" to govern the district and "make such rules and regulations" to carry out the act.  The revised law substitutes "adopt" for "promulgate" and "make" because the terms are synonymous and the former is more commonly used.  The revised law also 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. 1012.106.  PURCHASING AND ACCOUNTING PROCEDURES.  The board may prescribe:

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

(2)  all accounting and control procedures.  (Acts 59th Leg., R.S., Ch. 647, Sec. 11 (part).)

Source Law

Sec. 11.  [The Board of Directors of such District shall have the power] to prescribe the method and manner of making purchases and expenditures by and for such hospital district, and also shall be authorized to prescribe all accounting and control procedures and … .

Revised Law

Sec. 1012.107.  DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.  (a)  The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system.

(b)  The board may:

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

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

(c)  The board may lease district hospital facilities to individuals, corporations, or other legal entities.

(d)  The board may sell or otherwise dispose of the district's property, including facilities or equipment.  (Acts 59th Leg., R.S., Ch. 647, Secs. 5(f), (g) (part), 9.)

Source Law

[Sec. 5]

(f)  The Board of Directors may purchase or lease property, facilities, and equipment for the District to use in the hospital system and may mortgage or pledge the property, facilities, or equipment as security for the payment of the purchase price.

(g)  … The Board may also lease District hospital facilities to individuals, corporations, or other legal entities and may sell or otherwise dispose of the District's property, facilities, or equipment.

Sec. 9.  The Board of Directors is hereby given complete discretion as to the type of buildings (both as to number and location) required to establish and maintain an adequate hospital system.

Revisor's Note

Section 9, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, requires the board to determine the buildings required to "establish and maintain" an adequate hospital system. The revised law omits the reference to establishing the hospital system as executed.

Revised Law

Sec. 1012.108.  EMINENT DOMAIN.  (a)  The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property located in district territory if the interest is necessary or convenient for the district to exercise a right, power, or privilege conferred by this chapter.

(b)  The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code.  (Acts 59th Leg., R.S., Ch. 647, Sec. 15.)

Source Law

Sec. 15.  The District shall have the right and power of eminent domain for the purpose of acquiring by condemnation any and all property of any kind and character in fee simple, or any lesser interest therein, within the boundaries of the District necessary or convenient to the powers, rights and privileges conferred by this Act, in the manner provided by the General Law with respect to condemnation by counties.

Revisor's Note

(1)  Section 15, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, provides that the district has the "right and power of eminent domain for the purpose of acquiring [property] by condemnation."  The revised law substitutes for the quoted language "may exercise the power of eminent domain to acquire [property]" because the phrases have the same meaning and the latter phrase is consistent with modern usage in laws relating to eminent domain.

(2)  Section 15, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, provides that the district must exercise the power of eminent domain in the manner provided by "General Law with respect to condemnation by counties."  The revised law substitutes for the quoted phrase a reference to Chapter 21, Property Code, because that is the general law governing eminent domain for governmental entities, including counties.

Revised Law

Sec. 1012.109.  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 59th Leg., R.S., Ch. 647, Sec. 19.)

Source Law

Sec. 19.  The Board of Directors of the hospital district is authorized on behalf of such District to accept donations, gifts and endowments to be held in trust and administered by the Board of Directors for such purposes and under such directions, limitations and provisions as may be prescribed in writing by the donor not inconsistent with proper management and object of the hospital district.

Revisor's Note

Section 19, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, 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. 1012.110.  CONSTRUCTION CONTRACTS.  A construction contract that requires the expenditure of more than the amount provided by Section 271.024, Local Government Code, may be made only after competitive bidding as provided by Subchapter B, Chapter 271, Local Government Code.  (Acts 59th Leg., R.S., Ch. 647, Sec. 11 (part).)

Source Law

Sec. 11.  … A contract for construction that requires expenditures in excess of the amount prescribed by Section 271.024, Local Government Code, may be made only after competitive bidding as provided by Subchapter B, Chapter 271, Local Government Code.

Revised Law

Sec. 1012.111.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT.  (a)  The board may contract with a county or municipality located outside the district's boundaries for the care and treatment of a sick or injured person of that county or municipality.

(b)  The board may contract with this state or a federal agency for the treatment of a sick or injured person for whom this state or the agency is responsible.  (Acts 59th Leg., R.S., Ch. 647, Sec. 5(e).)

Source Law

(e)  The Board of Directors shall be authorized to contract with any county or incorporated municipality located outside its boundaries for the care and treatment of the sick, diseased or injured persons of any such county or municipality, and shall have the authority to contract with the State of Texas and agencies of the Federal Government for the treatment of sick, diseased or injured persons for whom the State of Texas or the Federal Government is responsible.

Revisor's Note

(1)  Section 5(e), Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, refers to an "incorporated municipality." The revised law omits the reference to "incorporated" because under the Local Government Code all municipalities must be incorporated.

(2)  Section 5(e), Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, refers to the treatment of a "sick, diseased or injured" person.  The revised law omits the reference to "diseased" because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1012.112.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient who resides in the district is admitted to a district facility, the chief executive officer 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 the chief executive officer determines that the patient or those relatives cannot pay all or part of the costs of the care and treatment in the hospital, the amount of the costs that cannot be paid becomes a charge against the district.

(c)  If the chief executive officer determines that the patient or those relatives can pay for all or part of the costs of the patient's care and treatment, the chief executive officer shall issue an order directing the patient or those relatives to pay the district 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 chief executive officer may collect the amount from the patient's estate, or from a 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)  The board may institute a suit to collect an amount owed to the district by a patient who has not been determined under this section to be unable to pay.

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

(1)  resolve the dispute or doubt; and

(2)  issue any appropriate orders.

(g)  A final order of the board may be appealed to the district court.  The substantial evidence rule applies to the appeal.  (Acts 59th Leg., R.S., Ch. 647, Secs. 5(k), 18.)

Source Law

[Sec. 5]

(k)  The Board of Directors may institute a suit to collect amounts owed to the District by patients who have not been determined to be unable to pay under Section 18.

Sec. 18.  (a)  Whenever a patient residing within the District has been admitted to a district facility, the chief executive officer shall have an inquiry made as to the patient's circumstances and the circumstances of the relatives of the patient legally liable for the patient's support.

(b)  If the chief executive officer finds that the patient or the patient's relatives are able to pay for the patient's care and treatment wholly or partly, the chief executive officer shall issue an order directing the patient or the patient's relatives to pay to the hospital district for the support of the patient a specified sum per week in proportion to the financial ability of the patient or the patient's relatives.  A patient or the patient's relative may not be required to pay an amount greater than the actual per capita cost of maintenance.

(c)  The chief executive officer may collect money owed to the District from the estate of the patient or from the patient's relatives legally liable for the patient's support in the manner provided by law for collection of expenses in the last illness of a deceased person.

(d)  If the chief executive officer finds that the patient or the patient's relatives are not able to pay either wholly or partly for the patient's care and treatment in the hospital, the cost of the patient's care shall become a charge on the hospital district as to the amount of the inability to pay.

(e)  If there is any dispute as to the ability to pay or doubt in the mind of the chief executive officer, the Board of Directors shall hear and determine same after calling witnesses, and shall make such order or orders as may be proper.  Appeals from a final order of the Board must be made to the District Court.  The substantial evidence rule shall apply.

Revised Law

Sec. 1012.113.  AUTHORITY TO SUE AND BE SUED.  The district, through the board, may sue and be sued.  (Acts 59th Leg., R.S., Ch. 647, Sec. 5(a) (part).)

Source Law

(a)  … [The District through its Board of Directors shall have the power and authority] to sue and be sued and … .

[Sections 1012.114-1012.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1012.151.  BUDGET.  The chief executive officer shall prepare an annual budget for approval by the board.  (Acts 59th Leg., R.S., Ch. 647, Sec. 6 (part).)

Source Law

Sec. 6.  … In addition, the chief executive officer shall prepare an annual budget for approval by the Board of Directors of said District… .

Revised Law

Sec. 1012.152.  NOTICE; HEARING; ADOPTION OF BUDGET.  (a)  The board shall hold a public hearing on the proposed annual budget.

(b)  The board shall publish notice of the hearing in accordance with Chapter 551, Government Code.

(c)  The board must approve the budget.  (Acts 59th Leg., R.S., Ch. 647, Sec. 6 (part).)

Source Law

Sec. 6.  … A public hearing on the annual budget shall be held by the Board of Directors after notice of the hearing has been published in accordance with Chapter 551, Government Code. … the annual budget … shall be approved by the Board of Directors… .

Revised Law

Sec. 1012.153.  AMENDMENT OF BUDGET.  The budget may be amended as required by circumstances.  The board must approve all amendments.  (Acts 59th Leg., R.S., Ch. 647, Sec. 6 (part).)

Source Law

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

Revisor's Note

Section 6, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, states that the board of directors may amend the budget "from time to time."  The revised law omits the quoted language because the authority to take an action implies the authority to do so at any time.

Revised Law

Sec. 1012.154.  RESTRICTION ON EXPENDITURES.  Money may be spent only for an expense included in the budget or an amendment to the budget.  (Acts 59th Leg., R.S., Ch. 647, Sec. 6 (part).)

Source Law

Sec. 6.  … No expenditure may be made for any expense not included in the original annual budget or an amendment to the budget… .

Revised Law

Sec. 1012.155.  FISCAL YEAR.  (a)  The district operates according to a fiscal year established by the board.

(b)  The fiscal year may not be changed:

(1)  during a period that revenue bonds of the district are outstanding; or

(2)  more than once in a 24-month period.  (Acts 59th Leg., R.S., Ch. 647, Sec. 6 (part).)

Source Law

Sec. 6.  The District shall be operated on a fiscal year to be established by the Board of Directors.  The fiscal year may not be changed when revenue bonds are outstanding or more than one time in a 24-month period… .

Revised Law

Sec. 1012.156.  ANNUAL AUDIT.  (a)  The board annually shall have an audit made of the district's financial condition.

(b)  The audit shall be open to inspection at all times at the district's principal office.  (Acts 59th Leg., R.S., Ch. 647, Sec. 6 (part).)

Source Law

Sec. 6.  … The Board shall cause an annual audit to be made of the financial condition of said District, which shall at all times be open to inspection at the principal office of the District… .

Revised Law

Sec. 1012.157.  FINANCIAL REPORT.  As soon as practicable after the close of each fiscal year, the chief executive officer shall prepare for the board:

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

(2)  a complete account of the disbursement of that money.  (Acts 59th Leg., R.S., Ch. 647, Sec. 6 (part).)

Source Law

Sec. 6.  … As soon as practicable after the close of each fiscal year, the chief executive officer shall prepare for the Board a full sworn statement of all moneys belonging to the District and a full account of the disbursements of same.

Revised Law

Sec. 1012.158.  DEPOSITORY.  (a)  The board shall select one or more banks to serve as a depository for district money.

(b)  District money shall be immediately deposited on receipt with a depository bank, except that sufficient money must be remitted to the appropriate bank to pay the principal of and interest on the district's outstanding bonds or other obligations on or before the maturity date of the principal and interest.

(c)  To the extent that money in a depository bank is not insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by law for the security of county funds.

(d)  Membership on the district's board of an officer or director of a bank disqualifies the bank from being selected as a depository bank.  (Acts 59th Leg., R.S., Ch. 647, Sec. 12.)

Source Law

Sec. 12.  The Board of Directors of the District shall name one or more banks to serve as depository for the funds of the District.  All such funds shall, as derived and collected, be immediately deposited with such depository bank or banks, except that sufficient funds shall be remitted to the bank or banks for the payment of principal of and interest on the outstanding bonds of the District or other obligations assumed by it and in time that such money may be received by said bank or banks for payment on or prior to the date of maturity of such principal and interest so to be paid.  To the extent that funds in the depository bank or banks are not insured by the Federal Deposit Insurance Corporation, they shall be secured in the manner provided by law for security of county funds.  Membership on the Board of Directors of an officer or director of a bank disqualifies the bank from being designated as depository for the District's funds.

Revisor's Note

Section 12, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, refers to money "derived and collected."  The revised law substitutes "on receipt" for the quoted language because the terms are synonymous and the former is more commonly used.

Revised Law

Sec. 1012.159.  GENERAL 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 in the next 12-month period 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 59th Leg., R.S., Ch. 647, Sec 20B.)

Source Law

Sec. 20B.  (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 revenues that are not pledged to pay bonded indebtedness of the District;

(2)  District taxes to be imposed in the next 12-month period 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 District 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 revenues are pledged must mature not later than the fifth anniversary of the date the loan is made.

Revised Law

Sec. 1012.160.  AUTHORITY TO BORROW MONEY IN EMERGENCY; SECURITY.  (a)  The board may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time the loan is made if the board declares that:

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

(2)  an emergency exists.

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

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

(2)  a district tax to be imposed by the district in the next 12-month period 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.

(d)  The board may not spend money obtained from a loan under this section for any purpose other than:

(1)  the purpose for which the board declared an emergency; and

(2)  if district taxes or bonds are pledged to pay the loan, the purpose for which the pledged taxes were imposed or the pledged bonds were authorized.  (Acts 59th Leg., R.S., Ch. 647, Sec. 20A.)

Source Law

Sec. 20A.  (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 the loan is made if the Board declares that:

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

(2)  an emergency exists.

(b)  To secure a loan, the Board of Directors may pledge:

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

(2)  District taxes to be imposed in the next 12-month period 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 District 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 revenues are pledged must mature not later than the fifth anniversary of the date the loan is made.

(d)  The Board of Directors may not spend money obtained from a loan under this section for any purpose other than:

(1)  the purpose for which the Board declared an emergency; and

(2)  if District taxes or bonds are pledged to pay the loan, the purpose for which the pledged taxes were imposed or the pledged bonds were authorized.

[Sections 1012.161-1012.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Revised Law

Sec. 1012.201.  GENERAL OBLIGATION BONDS.  The board may issue and sell general obligation bonds in the name and on the faith and credit of the district, for hospital or hospital system purposes, to:

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

(2)  equip buildings or improvements; or

(3)  acquire and operate a mobile emergency medical or air ambulance service. (Acts 59th Leg., R.S., Ch. 647, Sec. 7(a) (part).)

Source Law

Sec. 7.  (a)  The Board of Directors of the hospital district may issue and sell general obligation bonds … in the name and upon the faith and credit of such hospital district, for hospital or hospital system purposes, to:

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

(2)  equip buildings or improvements; or

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

Revised Law

Sec. 1012.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  At the time general obligation bonds are issued under Section 1012.201, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund and to pay the principal of and interest on the bonds as the bonds mature.

(b)  The tax required by this section together with any other ad valorem tax the district imposes may not exceed the limit approved by the voters at the election authorizing the imposition of the tax.  (Acts 59th Leg., R.S., Ch. 647, Sec. 7(b) (part).)

Source Law

(b)  At the time of the issuance of any general obligation bonds a tax shall be levied by the Board sufficient to create an interest and sinking fund and to pay the interest on and principal of said bonds as same mature, providing such tax together with any other taxes levied for said District shall not exceed the limit approved by the voters at the election authorizing the levy of taxes… .

Revisor's Note

Section 7(b), Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, 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. 1012.203.  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)  Section 41.001(a), Election Code, does not apply to a bond election ordered by the board.

(c)  Except as otherwise provided by this chapter, the election shall be conducted in accordance with Chapter 1251, Government Code.  (Acts  59th Leg., R.S., Ch. 647, Secs. 7(a) (part), (b) (part).)

Source Law

(a)  [The Board] … [may issue and sell general obligation bonds] authorized by an election … .

(b)  … The District may issue general obligation bonds only if the bonds are authorized by a majority of the voters of the District voting in an election held for that purpose.  Section 41.001(a), Election Code, does not apply to a bond election ordered by the Board.  A bond election shall be conducted in accordance with Chapter 1251, Government Code, except as otherwise provided in this Act.

Revised Law

Sec. 1012.204.  EXECUTION OF GENERAL OBLIGATION BONDS.  (a)  The board president shall execute the general obligation bonds in the district's name.

(b)  The board secretary shall attest the bonds as provided by Chapter 618, Government Code.  (Acts 59th Leg., R.S., Ch. 647, Sec. 7(c) (part).)

Source Law

(c)  Such bonds shall be executed in the name of the hospital district and in its behalf by the president of the Board and attested by the secretary, as provided by Chapter 618, Government Code, and … .

Revised Law

Sec. 1012.205.  REVENUE BONDS.  (a)  The board may issue and sell revenue bonds in the name and on the faith and credit of the district to:

(1)  purchase, construct, acquire, repair, renovate, or equip buildings or improvements for hospitals and the hospital system; or

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

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

(c)  The bonds may be additionally secured by a mortgage or deed of trust on all or part of the district's 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 59th Leg., R.S., Ch. 647, Sec. 7(f).)

Source Law

(f)  The Board of Directors may issue and sell revenue bonds in the name and on the faith and credit of the District to purchase, construct, acquire, repair, renovate, or equip buildings or improvements for hospitals and the hospital system and to acquire sites to be used for hospital purposes.  The bonds shall be payable from and secured by a pledge of all or part of the revenues derived from the operation of the District's hospital 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.

Revised Law

Sec. 1012.206.  MATURITY OF BONDS.  District bonds must mature not later than 40 years after the date of issuance.  (Acts 59th Leg., R.S., Ch. 647, Sec. 7(d) (part).)

Source Law

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

Revisor's Note

Section 7(d), Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, provides in part that district bonds must bear interest at a rate that does not 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:

(d)  [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. 1012.207.  BONDS EXEMPT FROM TAXATION.  The following are exempt from taxation by this state or a political subdivision of this state:

(1)  bonds issued by the district;

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

(3)  profits made in the sale of the bonds.  (Acts 59th Leg., R.S., Ch. 647, Sec. 10 (part).)

Source Law

Sec. 10.  … any bonds issued by it and their transfer, and the issuance therefrom, including any profits made in the sale thereof, shall at all times be free from taxation by the State or any municipality or political subdivision thereof.

Revisor's Note

Section 10, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, refers to "any municipality or political subdivision."  The revised law omits the reference to "municipality" because that term is included within the meaning of "political subdivision."

Revisor's Note

(End of Subchapter)

(1)  Section 7(c), Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, provides that general obligation 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.  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. Chapter 1202, Government Code, applies to bonds issued under this chapter by application of Section 1202.001, Government Code.  The omitted law reads:

(c)  [Such bonds] … shall be subject to the same requirements in the matter of approval by the Attorney General of Texas and registration by the Comptroller of Public Accounts of the State of Texas as are by law provided for approval and registration of bonds issued by counties.

(2)  Section 7(e), Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, authorizes the district to issue refunding bonds for bonds issued or assumed by the district.  The revised law omits that provision because Chapter 1207, Government Code, provides general authority for an issuer, including a hospital district, to issue refunding securities and prescribes procedures applicable to the securities.  The omitted law reads:

(e)  The bonds of the District may be issued for the purpose of refunding and paying off any bonds issued or assumed by such District.  Refunding bonds shall be issued in accordance with Chapter 1207, Government Code.

(3)  Section 14, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, provides that bonds issued under that act are authorized investments for certain entities.  The revised law omits that provision as unnecessary.  As to several of the entities listed, the relevant provision of Section 14 has been superseded and impliedly repealed.  Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)).  Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings and loan associations are regulated by Section 63.002, Finance Code, and by Section 64.001, Finance Code.  As to the remaining entities listed, Section 14 is superseded by Section 1201.041, Government Code, enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes).  Section 1201.041, Government Code, applies to bonds issued under this chapter by application of Section 1201.002, Government Code.  The revised law omits the reference to sinking funds of this state because it has been superseded by Section 404.024, Government Code (enacted in 1985 as Section 2.014, Treasury Act (Article 4393-1, Vernon's Texas Civil Statutes)), which governs the investment of state funds.  Section 404.024(b)(10), Government Code, authorizes the investment of state funds in obligations of political subdivisions, including hospital districts.  The omitted law reads:

Sec. 14.  All bonds of the District shall be and are hereby declared to be legal and authorized investments of banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, fiduciaries, trustees, guardians, and sinking funds of cities, towns, villages, counties, school districts, or other political subdivisions of the State of Texas, and for all public funds of the State of Texas or its agencies including the State Permanent School Fund. …

(4)  Section 14, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, effectively provides that bonds issued under that act may secure deposits of public funds of this state or political subdivisions of this state.  The revised law omits that provision as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions.  The omitted law reads:

Sec. 14.  … Such bonds shall be eligible to secure deposit of public funds of the State of Texas and public funds of cities, towns, villages, counties, school districts or other political subdivisions or corporations of the State of Texas, and such bonds shall be lawful and sufficient security for said deposits to the extent of their value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1012.208-1012.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Revised Law

Sec. 1012.251.  IMPOSITION OF AD VALOREM TAXES.  (a)  The board may impose a tax on all property in the district subject to district taxation.

(b)  The tax may be used to pay:

(1)  indebtedness issued or assumed by the district; and

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

(c)  The district may not impose a tax to pay the principal of or interest on revenue bonds.  (Acts 59th Leg., R.S., Ch. 647, Secs. 3 (part), 13 (part), 16(a) (part).)

Source Law

Sec. 3.  … annual taxes … of taxable property within such District … .

Sec. 13.  The Board of Directors shall levy annually a tax … for the purpose of paying (1) the indebtedness assumed or issued by the District, and (2) the maintenance and operating expenses of the District. …

Sec. 16.  (a)  The Board of Directors may annually impose property taxes … .  The taxes may be used to pay for indebtedness issued or assumed by the District and for the maintenance and operating expenses of the District.  The District may not impose taxes to pay the principal of or interest on revenue bonds.

Revised Law

Sec. 1012.252.  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 taxable property in the district.

(c)  In setting the tax rate, the board shall consider the income of the district from sources other than taxation.  (Acts 59th Leg., R.S., Ch. 647, Secs. 13 (part), 16(a) (part).)

Source Law

Sec. 13.  [The Board of Directors shall levy annually a tax] of not to exceed the amount hereinabove permitted … .  In setting such tax rate the Board shall take into consideration the income of the District from sources other than taxation. …

Sec. 16.  (a) [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 imposition 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. 1012.253.  TAX ASSESSOR-COLLECTOR.  The board may provide for the appointment of a tax assessor-collector for the district or may contract for the assessment and collection of taxes as provided by the Tax Code. (Acts 59th Leg., R.S., Ch. 647, Sec. 16(b) (part).)

Source Law

(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.

Revisor's Note

(End of Subchapter)

(1)  Section 5(i), Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, 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:

(i)  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 13, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, requires the board to levy the tax and to certify the tax rate to the tax assessor-collector.  The revised law omits that provision because Section 26.05(a), Tax Code, requires the governing body of a taxing unit to adopt a tax rate for the current tax year and to notify the tax assessor of that rate.  The omitted law reads:

Sec. 13.  … Upon determination of the amount of tax required to be levied, the Board shall make such levy and certify the same to the Tax Assessor-Collector of Childress County, Texas.

(3)  Section 16(b), Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, provides that the Tax Code governs the appraisal, assessment, and collection of district taxes.  The revised law omits that provision because Section 1.02, Tax Code, requires all taxing units of government to administer the assessment and collection of an ad valorem tax in conformity with Title 1, Tax Code.  The omitted law reads:

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

[Sections 1012.254-1012.300 reserved for expansion]

SUBCHAPTER G.  DISSOLUTION

Revised Law

Sec. 1012.301.  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 a number of residents of the district equal to at least 15 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 59th Leg., R.S., Ch. 647, Secs. 21A(a), (b), (c).)

Source Law

Sec. 21A.  (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 shall order an election if the Board receives a petition requesting an election that is signed by a number of residents of the District equal to at least 15 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 21A(a), Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, provides for dissolution of the district if approved by a majority 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 21A(a), Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, 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 because, in this context, "calling" an election is included in the meaning of "holding" an election.  Under Chapter 3, Election Code, all elections must be ordered (called) before they may be held.

Revised Law

Sec. 1012.302.  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 59th Leg., R.S., Ch. 647, Sec. 21A(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 with general circulation in the District once a week for two consecutive weeks.  The first publication must appear not less than 35 days before the date set for the election.  …

Revised Law

Sec. 1012.303.  BALLOT.  The ballot for an election under this subchapter must be printed to permit voting for or against the proposition:  "The dissolution of the Childress County Hospital District."  (Acts 59th Leg., R.S., Ch. 647, Sec. 21A(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 Childress County Hospital District."

Revised Law

Sec. 1012.304.  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 59th Leg., R.S., Ch. 647, Sec. 21A(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 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. 1012.305.  TRANSFER, SALE, OR ADMINISTRATION OF ASSETS.  (a)  If a majority of the votes in the election under this subchapter favor dissolution, the board shall:

(1)  transfer the land, buildings, improvements, equipment, and other assets that belong to the district to Childress County or another governmental entity in Childress 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 under Subsection (a)(3), the district is dissolved when all money is disposed of and all district debts have been paid or settled.  (Acts 59th Leg., R.S., Ch. 647, Secs. 21A(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 a county or another governmental entity in the county in which the District is located;

(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 a county or other governmental entity, 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 a county or other governmental entity, or sell those assets and the liabilities to another person, 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

(1)  Section 21A(f), Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, refers to a "county in which the District is located."  Because the district is wholly located in Childress County, the revised law substitutes "Childress County" for the quoted language.

(2)  Section 21A(f), Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, 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. 1012.306.  SALE OR TRANSFER OF ASSETS AND LIABILITIES.  (a)  The dissolution of the district and the sale or transfer of the district's assets or 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 59th Leg., R.S., Ch. 647, Secs. 21A(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 21A(m), Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, 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. 1012.307.  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 59th Leg., R.S., Ch. 647, Secs. 21A(h), (i), (j).)

Source Law

(h)  After the Board of Directors 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.

(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. 1012.308.  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 Childress County summarizing the board's actions in dissolving the district.

(b)  Not later than the 10th day after the date the Commissioners Court of Childress 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 59th Leg., R.S., Ch. 647, Secs. 21A(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 Childress County setting forth a summary of the Board's 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 Childress County shall enter an order dissolving the District and releasing the Board of Directors of the District from any further duty or obligation.

Revisor's Note

(End of Chapter)

(1)  Section 2, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, provides for the transfer of certain land, buildings, improvements, and equipment to the district after the district is created and provides for the assumption of debt by the district on creation.  The revised law omits those provisions as executed.  The omitted law reads:

Sec. 2.  The District herein authorized to be created shall take over and there shall be transferred to it title to all lands, buildings, improvements and equipment in anywise pertaining to the hospitals or hospital system owned by Childress County and any city or town within such County, and thereafter … . [Such District] … shall assume the outstanding indebtedness which shall have been incurred by any city or town or by Childress County for hospital purposes prior to the creation of said District.

(2)  Section 22, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, 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. 22.  If any of the provisions of this Act, or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and to this end the provisions of this Act are declared to be severable.

(3)  Section 23, Chapter 647, Acts of the 59th Legislature, Regular Session, 1965, 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. 23.  Proof of publication of the notice required in the enactment hereof under the provisions of Section 9 of Article IX of the Texas Constitution has been made in the manner and form provided by law pertaining to the enactment of local and special laws, and such notice is hereby found and declared proper and sufficient to satisfy such requirement.