80C45(3) YDB

 

CHAPTER 1010. BURLESON COUNTY HOSPITAL DISTRICT

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 1010.001.  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 Burleson County Hospital District.  (Acts 65th Leg., R.S., Ch. 726, Secs. 1 (part), 5(a) (part); New.)

Source Law

Sec. 1.  …  the Burleson County Hospital District (hereinafter called the "district") … .

Sec. 5.  (a)  … [the board of directors] (hereinafter called the "board") [of the district] … .

Revisor's Note

The definition of "director" is added to the revised law for drafting convenience and to eliminate frequent, unnecessary repetition of the substance of the definition.

Revised Law

Sec. 1010.002.  AUTHORITY FOR OPERATION.  The Burleson County Hospital District operates under and has the rights, powers, and duties provided by Section 9, Article IX, Texas Constitution, and this chapter.  (Acts 65th Leg., R.S., Ch. 726, Secs. 1 (part), 3.)

Source Law

Sec. 1.  The creation, establishment, maintenance, and operation of the Burleson County Hospital District … is hereby authorized pursuant to the provisions of Article IX, Section 9, of the Texas Constitution, and of this Act.

Sec. 3.  The district shall possess such rights and powers, and shall assume and discharge such duties, as are provided in Article IX, Section 9, of the Texas Constitution, and in this Act.

Revisor's Note

(1)  Section 1, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, 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."

(2)  Section 3, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, states that the district "shall possess" such certain rights and powers and "shall assume and discharge" such certain duties.  The revised law substitutes "has" for "shall possess" and "shall assume" because the duty to possess the rights and powers and the duty to assume the duties are executed.  The revised law omits "discharge" because, in this context, the meaning of "discharge" is included in the meaning of "has."

Revised Law

Sec. 1010.003.  ESSENTIAL PUBLIC FUNCTION.  The district is a governmental agency performing an essential public function in carrying out the purposes of this chapter.  (Acts 65th Leg., R.S., Ch. 726, Secs. 13 (part), 30 (part).)

Source Law

Sec. 13.  The district shall be a governmental agency and body politic and corporate and … .

Sec. 30.  In carrying out the purposes of this Act, the district will be performing an essential public function, and … .

Revisor's Note

Section 13, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, states that the district is "a governmental agency and body politic and corporate."  The revised law omits "body politic and corporate" because the meaning of that term is included in the meaning of "governmental agency."

Revised Law

Sec. 1010.004.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of Burleson County.  (Acts 65th Leg., R.S., Ch. 726, Sec. 2.)

Source Law

Sec. 2.  The boundaries of the district shall be coextensive with the boundaries of Burleson County.

Revised Law

Sec. 1010.005.  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 board by resolution or order may provide an alternative procedure that conforms with the constitution.  (Acts 65th Leg., R.S., Ch. 726, Sec. 31 (part).)

Source Law

Sec. 31.  … [federal or state constitutions] …  If any procedure in this Act is finally held by a court of competent jurisdiction to violate either constitution, the board has the power by resolution or order to provide an alternative procedure conforming to the requirements of such constitutions… .

Revisor's Note

(1)  Section 31, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, refers to a "court of competent jurisdiction."  The revised law omits the quoted language because a suit may only be brought in a court, and the general laws of civil jurisdiction determine which courts have jurisdiction over a matter.  For example, see Sections 24.007-24.011, Government Code, for the general jurisdiction of a district court.

(2)  Section 31, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, 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 omits the reference to the Texas Constitution because the state cannot modify constitutional requirements by statute.  The omitted law reads:

Sec. 31.  Nothing in this Act shall be construed to violate any provision of the federal or state constitutions, and all acts performed pursuant to this Act shall be performed in such manner as will conform to such constitutions, whether expressly here provided or not… .

Revisor's Note

(End of Subchapter)

Sections 6 and 7, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provide that the district may not be created unless authorized by an election and 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 hospital district and the imposition of the tax were approved at the election, the revised law omits those provisions as executed.  The omitted law reads:

Sec. 6.  The district shall not be created, … .

Sec. 7.  At the first district election, which may be held on any date chosen by the board notwithstanding any other provision of law, especially Article 9b of the Texas Election Code, as amended (Article 2.01b, Vernon's Texas Election Code), the following proposition shall be submitted:

"Shall the Burleson County Hospital District of Burleson County, Texas, be created with authority to levy annual taxes … for the purpose of meeting the requirements of the district's bonds and its maintenance and operating expenses, as authorized by Article IX, Section 9, of the Texas Constitution; provided that after the creation of such district no other municipality or political subdivision shall have the power to levy taxes or issue bonds or other obligations for hospital purposes or for providing medical care within the boundaries of such district?"  Such proposition may also be submitted at any other district election, and if at any district election a majority of the qualified voters of the district, voting at said election, votes in favor of such proposition, the board shall so find and shall declare the district established and created.  [At any district election] including, but not limited to, the first district election, [a proposition, or propositions, to authorize the issuance of bonds of the district may also be submitted].

[Sections 1010.006-1010.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1010.051.  BOARD ELECTION; TERM.  (a)  The district is governed by a board of 11 elected directors.

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

(1)  directors serve two-year terms; and

(2)  the terms of the five directors elected to even-numbered places expire in even-numbered years and the terms of the six directors elected to odd-numbered places expire in odd-numbered years.  (Acts 65th Leg., R.S., Ch. 726, Sec. 8 (part).)

Source Law

Sec. 8.  The district shall be governed by a board of 11 directors… .  In even-numbered years the five directors who shall occupy the even-numbered places shall be elected to serve two years.  In odd-numbered years the six directors who shall occupy the odd-numbered places shall be elected to serve two years… .

Revisor's Note

(1)  Section 5(a), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, describes the composition of the initial board of directors for the district. The revised law omits the provision as executed.  The omitted law reads:

Sec. 5.  (a)    Upon the effective date of this Act each of the following named 11 persons is hereby named as a temporary director for the place shown following the name of such person; collectively they shall constitute the board of directors … of the district:

	Marion Malazzo	Place No. 1
	Jimmy Boedeker	Place No. 2
	Mike Rhodes	Place No. 3
	Joe Rychlik	Place No. 4
	Johnny P. Smith	Place No. 5
	Ervin Moore	Place No. 6
	Elton Hubanek	Place No. 7
	Joe E. Skrivanek, III	Place No. 8
	Adolph Hajovsky, Jr.	Place No. 9
	D. L. Alford, Jr.	Place No. 10
	Ben Novosad	Place No. 11;

and each such temporary director shall qualify, as provided in Section 12 hereof, within 30 days after the effective date of this Act.

(2)  Section 8, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, prescribes the procedures for electing the original board of directors.  The revised law omits those provisions as executed.  The omitted law reads:

Sec. 8.  …  After approval by the qualified voters of the district of the proposition set forth in Section 7 of this Act, in the manner therein provided, an election shall be held in the district for the election of directors… .  Except for the temporary directors herein appointed, … .

(3)  Section 8, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, 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.

(4)  Section 8, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that elections must be held in sequence under Chapter 41, Election Code.  The revised law omits the provision because Section 1.002, Election Code, states that the Election Code applies to all elections held in this state.  The omitted law reads:

Sec. 8.  …  Thereafter, in each following year such elections shall be held in continuing sequence in accordance with Chapter 41, Election Code.

Revised Law

Sec. 1010.052.  QUALIFICATIONS FOR OFFICE.  To serve as a director, a person must be:

(1)  at least 21 years of age; and

(2)  a qualified voter of the district.  (Acts 65th Leg., R.S., Ch. 726, Sec. 8 (part).)

Source Law

Sec. 8.  …  To be qualified to serve as a director a person shall be not less than 21 years old and a qualified voter within the district.  …

Revised Law

Sec. 1010.053.  BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF OFFICE.  (a)  As soon as practicable after a director is elected or appointed, the director shall execute a bond for $5,000 that is:

(1)  approved by the board;

(2)  payable to the district; and

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

(b)  Each director's bond and constitutional oath or affirmation of office shall be filed with the district and retained in the district's records.  (Acts 65th Leg., R.S., Ch. 726, Secs. 12(h), (i), (k).)

Source Law

(h)  As soon as practicable after a director is elected or appointed he shall execute a bond for $5,000 payable to the district and conditioned on the faithful performance of his duties.

(i)  All bonds of the directors, including the bonds of the temporary directors, shall be approved by the board.

(k)  The bond and oath of each director shall be filed with the district and retained in its records.

Revisor's Note

(1)  Section 12(i), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, states that the bonds of directors, "including the bonds of the temporary directors," shall be approved by the board.  The revised law omits the quoted language as executed.

(2)  Section 12(j), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, requires each director to take the constitutional oath of office.  The revised law omits that provision because Section 1, Article XVI, Texas Constitution, requires all officers to take the oath (or affirmation) before assuming office.  In addition, the revised law provides for the filing 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 constitutional oath or affirmation.  The omitted law reads:

(j)  Each director shall take the oath of office prescribed by the Texas Constitution for public officers.

Revised Law

Sec. 1010.054.  BOARD VACANCY.  If a vacancy occurs in the office of director, the board shall promptly appoint a director for the unexpired term.  (Acts 65th Leg., R.S., Ch. 726, Sec. 8 (part).)

Source Law

Sec. 8.  …  A vacancy in the office of director or … shall be promptly filled by appointment of the board for the unexpired term.

Revised Law

Sec. 1010.055.  OFFICERS.  (a)  The board shall elect from its membership a president, vice president, secretary, and treasurer, respectively, and any other officers the board considers necessary.  The district's depository bank may be designated as district treasurer.

(b)  The president is the district's chief executive officer and shall preside at all board meetings.  The vice president shall act as president if the president is absent or disabled.

(c)  The secretary shall:

(1)  act as president if both the president and vice president are absent or disabled;

(2)  act as secretary of the board; and

(3)  see that all district records and books are properly kept.

(d)  The board may appoint an assistant or deputy secretary to assist the secretary.  The assistant or deputy secretary may certify the authenticity of any district record, including any proceeding related to district contracts or bonds or other indebtedness.

(e)  The board may require an officer to execute a bond that is:

(1)  payable to the district; and

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

(f)  If a vacancy occurs in an office, the board shall appoint a replacement for the unexpired term.  (Acts 65th Leg., R.S., Ch. 726, Secs. 5(b), 8 (part), 9(b), (c), (d), 12(d) (part).)

Source Law

[Sec. 5]

(b)  The board shall organize by electing from its membership a president, vice-president, secretary, and treasurer, respectively, and any other officers considered necessary by the board.  The depository bank of the district may be designated as treasurer of the district.

Sec. 8.  …  A vacancy in … any office on the board shall be promptly filled by appointment of the board for the unexpired term.

[Sec. 9]

(b)  The president shall preside at all meetings of the board and shall be the chief executive officer of the district.  The vice-president shall act as president in case of the absence or disability of the president.

(c)  The secretary shall act as president if both the president and vice-president are absent or disabled.  The secretary shall act as secretary of the board and shall be charged with the duty of seeing that all records and books of the district are properly kept.

(d)  The board may appoint an assistant or deputy secretary to assist the secretary and any such person shall be entitled to certify as to the authenticity of any record of the district, including all proceedings related to bonds, contracts, or indebtedness of the district.

[Sec. 12]

(d)  The board may require a bond of any officer or … payable to the district and conditioned on the faithful performance of his duties.

Revised Law

Sec. 1010.056.  COMPENSATION; EXPENSES.  A director serves without compensation but may be reimbursed for travel or other expenses incurred on the district's behalf if:

(1)  the director presents a verified statement; and

(2)  the board approves the expenses.  (Acts 65th Leg., R.S., Ch. 726, Sec. 12(g).)

Source Law

(g)  No director shall receive compensation for his services as director but, upon approval by the board, a director may be reimbursed for travel or other expenses incurred on behalf of the district upon presentation of a verified statement.

Revised Law

Sec. 1010.057.  VOTING REQUIREMENT.  A concurrence of six directors is sufficient in any matter relating to district business.  (Acts 65th Leg., R.S., Ch. 726, Sec. 9(a) (part).)

Source Law

(a)  … a concurrence of six directors shall be sufficient in all matters pertaining to the business of the district.

Revisor's Note

Section 9(a), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that six 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:

Sec. 9.  (a)  Six directors shall constitute a quorum and … .

Revised Law

Sec. 1010.058.  MEETINGS.  (a)  The board:

(1)  shall hold the board's meetings at the board's designated meeting place;

(2)  may establish a schedule of regular meetings to conduct district business; and

(3)  may hold special meetings at other times as district business requires.

(b)  Except as provided by this section, Chapter 551, Government Code, applies to board meetings.

(c)  If there is an emergency or urgent public necessity, posting of notice of a board meeting is not required.

(d)  Failure to post notice does not affect the validity of an action taken at a regular board meeting.  Failure to post notice may affect the validity of an action taken at a special meeting unless the board declares, by an action taken at the special meeting, that an emergency exists.

(e)  Any interested person may attend a board meeting.  (Acts 65th Leg., R.S., Ch. 726, Sec. 11 (part).)

Source Law

Sec. 11.  The board shall hold its meetings at its designated meeting place, may establish a schedule of regular meetings to conduct district business and may hold special meetings at other times as the business of the district may require.  [Notice of the … meeting of the board … .  Such notice of a meeting shall be so posted] … unless there is an emergency or urgent public necessity, in which case no posting of notice shall be required.  Failure to post notice shall not affect the validity of any action taken at a regular meeting of the board, but may affect the validity of action taken at a special meeting unless the board declares, in action taken at such special meeting, that an emergency existed.  Except as herein provided, the provisions of Chapter 271, Acts of the 60th Legislature, Regular Session, 1967, as amended (Article 6252-17, Vernon's Texas Civil Statutes), shall be applicable to meetings of the board.  Any interested person may attend any meeting of the board.

Revisor's Note

(1)  Section 11, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, requires the board to provide notice of a meeting by posting notice in a public place and by providing notice to the county clerk for posting in the county courthouse.  The revised law omits that requirement because it duplicates Sections 551.041, 551.043, and 551.054, Government Code, which require the board to provide notice and establish the procedures for providing that notice.  The omitted law reads:

Sec. 11.  …  Notice of the time, place, and purpose of any meeting of the board shall be given by posting at a place convenient to the public within the district.  A copy of the notice shall be furnished to the County Clerk of Burleson County who shall post it on a bulletin board in the county courthouse used for such purpose.  Such notice of a meeting shall be so posted for at least three days before a meeting, … .

(2)  Section 11, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, refers to "Chapter 271, Acts of the 60th Legislature, Regular Session, 1967, as amended (Article 6252-17, Vernon's Texas Civil Statutes)."  That statute was codified in 1993 as Chapter 551, Government Code.  The revised law is drafted accordingly.  In addition, throughout this chapter, the revised law omits the references to "as amended" because under Section 311.027, Government Code (Code Construction Act), a reference to a statute applies to all reenactments, revisions, or amendments of that statute unless expressly provided otherwise.

Revised Law

Sec. 1010.059.  PERSONNEL.  (a)  The board shall employ or contract with all persons the board considers necessary or advisable to conduct district affairs, including doctors, nurses, medical technicians, engineers, architects, attorneys, financial advisors, a hospital administrator, bookkeepers, auditors, and secretaries.

(b)  The board shall determine the powers, duties, terms of office, and compensation of all employees and consultants by contract or by resolution or order of the board.  The board may delegate to any district employee any power that the board considers advisable.

(c)  The board may remove any employee.

(d)  The board may require an employee to execute a bond payable to the district and conditioned on the faithful performance of the employee's duties.  (Acts 65th Leg., R.S., Ch. 726, Secs. 12(a) (part), (b), (c), (d) (part).)

Source Law

Sec. 12.  (a)  The board … shall employ or contract as may be permitted by existing law, with all persons, firms, partnerships, or corporations deemed necessary or advisable by the board for the conduct of the affairs of the district, including, but not limited to, doctors, nurses, medical technicians, engineers, architects, attorneys, financial advisors, a hospital administrator, bookkeepers, auditors, and secretaries.

(b)  The board shall determine the powers, authority, duties, term of office, and compensation of all employees and consultants by contracts or by resolution or order of the board, and the board may delegate to any or all employees of the district such powers as the board may deem advisable.

(c)  All employees may be removed by the board.

(d)  The board may require a bond of any … employee payable to the district and conditioned on the faithful performance of his duties.

Revisor's Note

(1)  Section 12(a), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, states the board shall employ or contract "as may be permitted by existing law."  The revised law omits the quoted language because the absence of the language does not authorize illegal actions.

(2)  Section 12(a), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, refers to all "persons, firms, partnerships, or corporations."  The revised law omits the reference to "firms, partnerships, or corporations" because under Section 311.005(2), Government Code (Code Construction Act), "person" is defined to include a corporation or other legal entity.

(3)  Section 12(a), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, refers to "including, but not limited to."  The revised law omits "but not limited to" in this section and throughout this chapter because Section 311.005(13), Government Code (Code Construction Act), provides that "includes" and "including" are terms of enlargement and not of limitation and do not create a presumption that components not expressed are excluded.

(4)  Section 12(b), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, refers to the "powers [and] authority" of employees and consultants of the district.  Throughout this chapter, the revised law omits references to "authority" when used with "power" because "authority" is included in the meaning of "power."

Revised Law

Sec. 1010.060.  DUTIES OF MANAGER.  The district may delegate to the manager the power to:

(1)  manage and operate the district hospital or hospital system or a portion of the district hospital or hospital system; and

(2)  employ and discharge employees or appoint and remove doctors from the staff.  (Acts 65th Leg., R.S., Ch. 726, Sec. 15(b) (part).)

Source Law

(b)  [The district, through its board,] … it may delegate to the manager the power to manage and operate such hospital, or hospitals, and hospital system, or portion thereof, and to employ and discharge employees or appoint and remove doctors from the staff.

Revised Law

Sec. 1010.061.  RETIREMENT, DISABILITY, AND DEATH COMPENSATION FUND.  (a)  The board may:

(1) provide for and administer a retirement, disability, and death compensation fund for district officers and employees; and

(2)  adopt a plan to effectuate the purpose of this section, including the forms of insurance and annuities that the board considers advisable.

(b)  The board may change a plan or rule after notice to the employees and a hearing.

(c)  As the board considers advisable, the board may invest money provided:

(1)  from the compensation of officers and employees participating in the fund and plan authorized by this section; and

(2)  by the district for the retirement, disability, and death compensation fund after the money has been received by the district.

(d)  The board may invest the money in:

(1)  bonds of the United States, this state, or any political subdivision of this state;

(2)  bonds issued by any agency of the United States if the payment of the principal and interest is guaranteed by the United States; and

(3)  life insurance policies, endowment or annuity contracts, or interest-bearing certificates of legal reserve life insurance companies authorized to write the contracts in this state.

(e)  A sufficient amount of money shall be kept on hand to meet the immediate payment of amounts likely to become due each year out of the fund as determined by the board.

(f)  The recipients or beneficiaries of the fund are not eligible for any other pension, retirement fund, or direct aid from this state unless the fund created under this chapter is released to the state as a condition precedent to receiving the other pension or aid or the joining of any other system.

(g)  The board may:

(1)  include hospitalization and medical benefits to district officers and employees as part of the compensation currently paid to the officers and employees;

(2)  adopt a plan or rule in connection with the benefits provided under Subdivision (1); or

(3)  amend or change a plan or rule adopted under Subdivision (2) as the board determines.

(h)  The board may contract with the state and federal governments as necessary to establish and continue a retirement program for the benefit of the district's employees.  (Acts 65th Leg., R.S., Ch. 726, Secs. 16(a), (b), (c), (d), (e), (g).)

Source Law

Sec. 16.  (a)    The board may provide for and administer a retirement, disability, and death compensation fund for the officers and employees of the district, and may adopt a plan or plans to effectuate the purpose of this section, including the forms of insurance and annuities which are considered advisable by the board.  The board, after notice to the employees and a hearing, may change any plan, rule, or regulation.

(b)  All money provided from the compensation of the officers and employees participating in the fund and plan authorized by this section and by the district for the retirement, disability, and death compensation fund after the money has been received by the district shall be invested as the board from time to time considers advisable.  The money may be invested in the following manner:

(1)  in bonds of the United States, the State of Texas, any county, city, or other political subdivision of this state, or in bonds issued by any agency of the United States, the payment of the principal of and interest on which is guaranteed by the United States; and

(2)  in life insurance policies, endowment or annuity contracts, or interest-bearing certificates of legal reserve life insurance companies authorized to write the contracts in the State of Texas.

(c)  A sufficient amount of the money shall be kept on hand to meet the immediate payment of amounts likely to become due each year out of the fund as determined by the board.

(d)  The recipients or beneficiaries from the fund shall not be eligible for any other pension, retirement fund, or direct aid from the State of Texas, unless the fund created under this chapter is released to the State of Texas as a condition precedent to receiving the other pension, aid, or the joining of any other system.

(e)  The board may include hospitalization and medical benefits to district officers and employees as part of the compensation currently paid to the officers and employees and may adopt any plan, rule, or regulation in connection with it and amend or change the plan, rule, or regulation as it may determine.

(g)  The board may also enter into such contracts with the state and federal governments as may be necessary to establish and continue a retirement program for the benefit of its employees.

Revisor's Note

(1)  Section 16, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, contains several references to "plans, rules, or regulations."  Throughout this chapter, the revised law omits "regulations" when used in such a context because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

(2)  Section 16(b), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that the board may invest money in "any county, city, or other political subdivision of this state."  Throughout this chapter, the revised law omits references to "county" and "city" in such a context because the terms are included in the meaning of "political subdivision."

(3)  Section 16(b), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, states that the board shall invest from "time to time."  Throughout this chapter, the revised law omits the quoted language because the authority to take an action implies the authority to do so at any time.

(4)  Section 16(f), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that the board may subscribe to the Texas Workmen's Compensation Act.  The revised law omits that provision as superseded by Section 504.011, Labor Code (enacted in 1991 by Chapter 762, Acts of the 72nd Legislature, Regular Session), which requires a political subdivision, including a hospital district, to extend workers' compensation benefits to its employees.  The omitted law reads:

(f)  The board may also become a subscriber under the Texas Workmen's Compensation Act with any old line legal reserve insurance company authorized to write the policies in the State of Texas.

Revised Law

Sec. 1010.062.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.  (a)  The district shall maintain records and accounts in which full and proper entries are made of:

(1)  all dealings, transactions, and business matters that in any way affect or relate to the district; and

(2)  the allocation and application of all revenue relating to the dealings, transactions, and business matters.

(b)  The district records, including the audit report, shall be available for public inspection at reasonable hours and under reasonable circumstances. (Acts 65th Leg., R.S., Ch. 726, Sec. 17 (part).)

Source Law

Sec. 17. … The district shall maintain books of records and accounts in which full, true, and proper entries shall be made of all dealings, transactions, and business matters which in any way affect or pertain to the district and the allocation and application of all of the revenues thereof.  Such books and records of the district shall be available for inspection by the public at reasonable hours and under reasonable circumstances. … The audit report … shall be available in like manner for public inspection.

Revisor's Note

(1)  Section 17, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, refers to "books of records and accounts" and to "books and records" of the district.  For consistency, the revised law refers to "records" because the "books of records" and "books" are district "records."

(2)  Section 17, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, requires the board to keep "full, true, and proper" entries in its records and accounts.  The revised law omits the reference to "true" because the requirement that an entry be kept presumes the requirement that the entry 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. 1010.063.  SEAL.  The board shall adopt a seal for the district.  (Acts 65th Leg., R.S., Ch. 726, Sec. 12(f).)

Source Law

(f)  The board shall adopt a seal for the district.

Revisor's Note

(End of Subchapter)

Section 8, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, 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 requirement that the application be signed by the candidate or 10 qualified voters because the requirement is superseded by Section 141.031, Election Code, which outlines the general application requirements.  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:

Sec. 8.  …  any candidate for the office of director shall file with the secretary of the board, or any agent who may be designated by the board, his application to have his name printed on the ballot.  Such application shall be signed by a candidate, or by 10 qualified voters of the district, and must be filed not later than 5 p.m. of the 45th day before election day… .

[Sections 1010.064-1010.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1010.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for providing medical and hospital care for the district's needy inhabitants.  (Acts 65th Leg., R.S., Ch. 726, Sec. 4 (part).)

Source Law

Sec. 4.  … the district shall assume full responsibility for providing medical and hospital care for its needy inhabitants.

Revisor's Note

Section 4, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that the district "shall assume" full responsibility for providing medical and hospital care for the district's needy inhabitants.  The revised law substitutes "has" for the quoted language because the duty to assume the responsibility is executed.

Revised Law

Sec. 1010.102.  RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT.  A political subdivision other than the district may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care in the district.  (Acts 65th Leg., R.S., Ch. 726, Sec. 4 (part).)

Source Law

Sec. 4.  … no other municipality or political subdivision shall have the power to levy taxes or issue bonds or other obligations for hospital purposes, or for providing medical care, within the boundaries of the district; and … .

Revisor's Note

Section 4, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that a "municipality or political subdivision" other than the district may not "levy" taxes or issue bonds or other obligations for hospital purposes.  Throughout this chapter, the revised law omits "municipality" because it is included in the meaning of "political subdivision."  In addition, throughout this chapter, the revised law substitutes "impose" for "levy" because, in this context, the terms are synonymous and the former is more commonly used.

Revised Law

Sec. 1010.103.  MANAGEMENT AND CONTROL.  The board shall manage and control all district affairs.  (Acts 65th Leg., R.S., Ch. 726, Sec. 12(a) (part).)

Source Law

Sec. 12.  (a)  The board shall have control over and management of all of the affairs of the district and … .

Revised Law

Sec. 1010.104.  HOSPITAL SYSTEM.  (a)  The district shall provide for the establishment of a hospital or hospital system in the district by:

(1)  purchasing, constructing, acquiring, repairing, or renovating buildings and improvements for hospital and medical care purposes; and

(2)  equipping the buildings and improvements for those purposes.

(b)  The district shall provide for the administration, maintenance, and operation of the hospital or hospital system to furnish hospital and medical care in the district.

(c)  The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system.

(d)  The hospital system may include:

(1)  domiciliary hospital care of the sick or injured;

(2)  outpatient clinics;

(3)  dispensaries;

(4)  geriatric domiciliary care;

(5)  convalescent home facilities;

(6)  necessary nurses;

(7)  domiciliaries and training centers;

(8)  blood banks;

(9)  community health centers;

(10)  research centers or laboratories; and

(11)  any other facilities that the board considers necessary for hospital care.  (Acts 65th Leg., R.S., Ch. 726, Secs. 4 (part), 15 (part).)

Source Law

Sec. 4.  After the creation of the district is confirmed at a district election as provided in Section 7 of this Act, the district shall establish a hospital or hospital system, or both, within its boundaries by the purchase, construction, acquisition, repair or renovation of buildings and improvements, and equipping same, for hospital and medical care purposes, and shall provide for its administration, maintenance, and operation so as to furnish hospital and medical care within the district, and … .

Sec. 15.  In addition to all other powers and authority, and notwithstanding any of the other provisions of this Act, the district and its board shall have the following powers and authority:

(a)  The board is hereby given complete discretion as to the types, number, and locations of buildings required to establish and maintain an adequate hospital system.  The hospital system may include domiciliary hospital care of the sick, wounded, and injured, out-patient clinic or clinics, dispensaries, geriatric domiciliary care, convalescent home facilities, necessary nurses, domiciliaries and training centers, blood banks, community health centers, and research centers or laboratories, and any other facilities deemed necessary for hospital care by the board.

…

Revisor's Note

(1)  Section 4, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that "[a]fter the creation of the district is confirmed at a district election as provided in Section 7 of this Act," the district shall establish a hospital or hospital system.  The revised law omits the quoted language as executed.

(2)  Section 15, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, states that the district and its board have certain powers "[i]n addition to all other powers and authority."  Throughout this subchapter, the revised law omits the quoted language because an accepted general principle of statutory construction requires that a statute be given cumulative effect with other statutes unless the statute provides otherwise or unless the statute conflicts with another statute.  This general principle applies to the revised law.

(3)  Section 15, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, states that Section 15(a) applies "notwithstanding any of the other provisions of this Act."  Throughout this chapter, the revised law omits the quoted language as unnecessary regarding Section 15(a) because no provision of this chapter provides otherwise and because under accepted general principles of statutory construction, a specific provision governs over a general provision.

(4)  Section 15(a), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that the board may determine the types, number, and locations of buildings to "establish and maintain" an adequate hospital system.  The revised law omits the reference to establishing an adequate hospital system as executed.

(5)  Section 15(a), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, refers to the care of the "sick, wounded, and injured."  The revised law omits the reference to "wounded" because "wounded" is included in the meaning of "injured."

Revised Law

Sec. 1010.105.  DISTRICT ELECTIONS.  (a)  Each district election shall be called by resolution or order of the board.  The order or resolution must specify:

(1)  the date of the election;

(2)  the proposition to be submitted and voted on;

(3)  the polling place; and

(4)  any other matter considered necessary or advisable by the board.

(b)  Notice of each district election shall be given by publishing one time a substantial copy of the election resolution or order in a newspaper of general circulation in the district at least 20 days before the date set for the election.

(c)  The board shall declare the results of a district election.  (Acts 65th Leg., R.S., Ch. 726, Sec. 6 (part).)

Source Law

Sec. 6.  …  Every district election shall be called by resolution or order of the board which shall set forth the date of the election, the proposition or propositions to be submitted and voted on, the polling place or places, and any other matters deemed necessary or advisable by the board.  Notice of each district election shall be given by publishing a substantial copy of the election resolution or order one time, at least 20 days prior to the date set for the election, in a newspaper of general circulation in the district, and each such election shall be called and conducted in accordance with the Texas Election Code, except as provided in this Act.  The board shall canvass the returns and declare the results of district elections.

Revisor's Note

(1)  Section 6, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, states that "each such election shall be called and conducted in accordance with the Texas Election Code, except as provided in this Act."  The revised law omits the quoted language because Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state.  An exception to the application of the Election Code would apply by its own terms.

(2)  Section 6, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that the board shall "canvass the returns" of an election.  The revised law omits that requirement because it duplicates Section 67.002, Election Code, which requires the governing body of a political subdivision that orders an election to canvass the returns.

Revised Law

Sec. 1010.106.  BYLAWS.  The board may adopt bylaws to govern:

(1)  the time, place, and manner of conducting board meetings;

(2)  the powers, duties, and responsibilities of the board's officers and employees;

(3)  the disbursement of money by check, draft, or warrant;

(4)  the appointment and authority of board committees;

(5)  the keeping of records and accounts; and

(6)  other matters the board considers appropriate.  (Acts 65th Leg., R.S., Ch. 726, Sec. 10.)

Source Law

Sec. 10.  The board is empowered to adopt bylaws to govern:

(a)  the time, place, and manner of conducting its meetings;

(b)  the powers, duties, and responsibilities of its officers and employees;

(c)  the disbursement of funds by checks, drafts, or warrants;

(d)  the appointment and authority of committees of the board;

(e)  the keeping of records and accounts; and

(f)  other matters as the board may consider appropriate.

Revised Law

Sec. 1010.107.  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, except the district is not required to deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code.

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

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

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

(3)  provide a bond for costs or a supersedeas bond on an appeal or writ of error.  (Acts 65th Leg., R.S., Ch. 726, Sec. 26(a).)

Source Law

Sec. 26.  (a)  The district has the right and the power of eminent domain for the purpose of acquiring by condemnation property of any kind and character in fee simple, or any lesser interest, within the boundaries of the district necessary or convenient to the powers, rights, and privileges conferred by this Act, in the manner provided by the general law with respect to condemnation by counties; provided that the district shall not be required to make bond or deposits in the registry of the trial court as required by Subdivision 2 of Article 3268, Revised Civil Statutes of Texas, 1925, as amended.  In condemnation proceedings being prosecuted by the district, the district shall not be required to pay in advance or give bond or other security for costs in the trial court, nor to give any bond otherwise required for the issuance of a temporary restraining order or a temporary injunction, nor to give bond for costs or for supersedeas on any appeal or writ of error.

Revisor's Note

(1)  Section 26(a), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that the district has the "right and the power of eminent domain for the purpose of acquiring [property] by condemnation."  The revised law substitutes for the quoted language "may exercise the power of eminent domain to acquire [property]" because the phrases have the same meaning and the latter phrase is consistent with modern usage in laws relating to eminent domain.

(2)  Section 26(a), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that the district must exercise the power of eminent domain in the manner provided by "the general law with respect to condemnation by counties."  The revised law substitutes for the quoted language a reference to Chapter 21, Property Code, because that is the general law governing eminent domain for governmental entities, including counties.

(3)  Section 26(a), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, refers to Subdivision 2, V.A.C.S. Article 3268.  That statute was codified in 1983 as Section 21.021(a), Property Code, and the revised law is drafted accordingly.

Revised Law

Sec. 1010.108.  COST OF RELOCATING OR ALTERING PROPERTY.  In exercising the power of eminent domain, if the board requires relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of any railroad, electric transmission, telegraph or telephone lines, conduits, poles, or facilities, or pipeline, the district must bear the actual cost of relocating, raising, lowering, rerouting, changing the grade, or altering the construction to provide comparable replacement without enhancement of facilities, after deducting the net salvage value derived from the old facility.  (Acts 65th Leg., R.S., Ch. 726, Sec. 26(b).)

Source Law

(b)    If the board requires the relocation, raising, lowering, rerouting or change in grade or alteration in the construction of any railroad, electric transmission, telegraph or telephone lines, conduits, poles, or facilities, or pipelines in the exercise of the power of eminent domain, all of the relocation, raising, lowering, rerouting, or changes in grade or alteration of construction due to the exercise of the power of eminent domain shall be the sole expense of the district.  The term "sole expense" means the actual cost of relocation, raising, lowering, rerouting, or change in grade or alteration of construction to provide comparable replacement without enhancement of facilities, after deducting the net salvage value derived from the old facility.

Revised Law

Sec. 1010.109.  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, in the board's opinion, with the proper management and objectives of the district.  (Acts 65th Leg., R.S., Ch. 726, Sec. 29.)

Source Law

Sec. 29.  The board is authorized on behalf of the district to accept donations, gifts, and endowments to be held in trust and administered by the board for purposes and under directions, limitations, and provisions prescribed in writing by the donor which are not inconsistent, in the opinion of the board, with proper management and objectives of the district.

Revisor's Note

Section 29, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, 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. 1010.110.  OPERATING AND MANAGEMENT CONTRACTS.  The district may enter into an operating or management contract with any person regarding any district hospital or any part of the district hospital system.  (Acts 65th Leg., R.S., Ch. 726, Sec. 15(b) (part).)

Source Law

(b)  The district, through its board, may enter into an operating or management contract with any person regarding all or any of its hospitals and all or any part of its hospital system, and … .

Revised Law

Sec. 1010.111.  CONTRACT IN NAME OF DISTRICT.  The district shall contract in the name of the district.  (Acts 65th Leg., R.S., Ch. 726, Sec. 13 (part).)

Source Law

Sec. 13.  …  The district shall contract and be contracted with in the name of the district.

Revised Law

Sec. 1010.112.  CONTRACTS FOR CARE AND TRAINING.  (a)  The district may contract with this state, including agencies of this state, or the United States for:

(1)  the rendition of hospital or medical care; and

(2)  the training of doctors, nurses, and other health care disciplines.

(b)  The board may contract with any lessee of the district's hospitals or any other person to provide hospital care to needy district inhabitants for payments and terms and under conditions that the board considers to be in the district's best interests.  (Acts 65th Leg., R.S., Ch. 726, Sec. 14 (part).)

Source Law

Sec. 14.  … the district shall also have the authority to contract with the State of Texas or the United States government, or agencies of either, for the rendition of hospital or medical care, and for the training of doctors, nurses, and other health care disciplines.  In addition, the board shall be authorized to contract with any lessee of its hospitals or any other person for the provision of hospital care to the needy inhabitants of the district for such payments and terms and under such conditions as the board may deem to be in the best interests of the district.

Revisor's Note

Section 16(b)(1), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, refers to contracts with the United States government or an agency of the United States.  The revised law omits the reference to an agency of the United States because under Section 311.005, Government Code (Code Construction Act), "United States" includes a department, bureau, or other agency of the United States of America.

Revised Law

Sec. 1010.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR INVESTIGATORY OR OTHER SERVICES.  The board may contract with any political subdivision or governmental agency for investigatory or other services related to:

(1)  the hospital or medical needs of district inhabitants; or

(2)  the hospital or medical care of the inhabitants of the other political subdivision or governmental agency.  (Acts 65th Leg., R.S., Ch. 726, Sec. 14 (part).)

Source Law

Sec. 14.  The board shall be authorized to contract with any other political subdivision or governmental agency for investigatory or other services as to the hospital or medical needs of the inhabitants of the district or the hospital or medical care of the inhabitants of such other political subdivision or governmental agency; … .

Revised Law

Sec. 1010.114.  MISCELLANEOUS CONTRACT REQUIREMENTS.  (a)  The board may not enter into a contract calling for or requiring the expenditure, payment, or creation or imposition of an obligation or liability of any nature on the district in excess of $5,000, unless the proposed contract is first submitted to competitive bids.

(b)  Notice of the time and place the contract will be awarded must be published once a week for two consecutive weeks in a newspaper of general circulation in the district.  The first notice must be published not later than the 14th day before the date set for the receipt of bids.  The notice must specify that the plans and specifications for the proposed project, or the specifications for the machinery, supplies, equipment, or materials to be purchased, are on file with a designated district representative for examination without charge.

(c)  A contract for construction or the purchase of materials, equipment, supplies, or machinery awarded under this chapter shall be awarded to the lowest responsible bidder and may be awarded on a lump-sum basis or on a unit price basis, as the board shall determine.

(d)  After performance of a construction contract has started, the board may approve change orders necessary to:

(1)  change the plans or specifications; or

(2)  decrease or increase:

(A)  the quantity of work to be performed; or

(B)  the materials, equipment, or supplies to be furnished.

(e)  The board may not increase the total contract price by a change order under Subsection (d) unless the board provides for the payment of the added cost by appropriating current or bond funds for that purpose, but the original contract price may not be increased by more than 25 percent.

(f)  The original contract price may not be decreased by more than 25 percent without the consent of the contractor.

(g)  The board may reject any bid.  If a contract is for the construction of public works and requires the expenditure of $5,000 or more, a successful bidder is required to give a good and sufficient payment bond and performance bond.  Each bond must:

(1)  be in the full amount of the contract price; and

(2)  be executed by a surety company authorized to do business in this state under Chapter 2253, Government Code.

(h)  This section does not apply to:

(1)  Section 1010.104(b), 1010.110, 1010.115, or 1010.117;

(2)  a contract for personal or professional services; or

(3)  the purchase of land, buildings, or rights-of-way.  (Acts 65th Leg., R.S., Ch. 726, Sec. 22.)

Source Law

Sec. 22.  (a)  Except as herein provided, the board shall make no contract calling for or requiring the expenditure or payment or creating or imposing an obligation or liability of any nature upon the district in excess of $5,000 unless such proposed contract is first submitted to competitive bids.

(b)  Notice of the time and place, when and where such contract shall be let shall be given by publication of such notice once a week for two consecutive weeks in a newspaper of general circulation in the district, the date of the first such publication to be not less than 14 days prior to the date set for the receipt of bids, and such notice shall specify that plans and specifications for the proposed project, or specifications for the machinery, supplies, equipment, or materials to be purchased, are on file with a designated representative of the district where they may be examined without charge.  All contracts for construction, the purchase of materials, equipment, supplies, or machinery let under the provisions of this Act shall be let to the lowest responsible bidder and may be let on a lump-sum basis or on a unit price basis, as the board shall determine.

(c)  After performance of a construction contract has been commenced, if it becomes necessary to (i) make changes in the plans or specifications, or (ii) decrease or increase the quantity of work to be performed or materials, equipment, or supplies to be furnished, the board shall be authorized to approve change orders effecting such changes but the total contract price shall not be increased thereby unless due provision has been made to provide for the payment of such added cost either by appropriating current or bond funds for such purpose, but the original contract price may not be increased by more than 25 percent or decreased more than 25 percent without the consent of the contractor to such decrease.

(d)  The board shall have the right to reject any or all bids, and if the contract is for the construction of public works and requires the expenditure of $5,000 or more, then each successful bidder shall be required to give a good and sufficient payment and performance bond, respectively, each in the full amount of the contract price, executed by a surety company authorized to do business in this state in accordance with the provisions of Article 5160, Revised Civil Statutes of Texas, 1925, as amended.

(e)  The foregoing provisions of this section shall not apply to any of the provisions of Section 15 of this Act, to contracts for personal or professional services, or for the purchase of land, buildings, or rights-of-way.

Revisor's Note

Section 22(d), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, refers to Article 5160, Revised Civil Statutes of Texas, 1925.  That article was codified in 1993 as Chapter 2253, Government Code.  The revised law is drafted accordingly.

Revised Law

Sec. 1010.115.  LEASES.  (a)  The district through the board may lease all or part of the buildings and facilities comprising the hospital system to any person on terms the board considers to be in the district's best interest.  The term of a lease may not exceed 40 years.

(b)  When leasing a building or other facility, the board may delegate as it considers appropriate the board's power to manage, control, and administer the leased buildings and facilities to furnish hospital care.

(c)  For each leased building or other facility, the board shall provide that the lessee charges sufficient rates for services rendered or goods provided at the leased premise that together with other sources of the lessee's revenue produce an amount sufficient to enable the lessee to pay the expenses of operating and maintaining the leased premise as the lessee is required to pay under the lease.  The rates also must enable the lessee to pay lease rentals to the district that will be sufficient, when taken with any other source of the district's estimated revenue that are pledged for the same purpose, to:

(1)  pay the interest on any revenue or special obligation bonds that are payable wholly or partly from the lease rentals;

(2)  create and maintain a sinking fund to pay the principal of and premium, if any, on the bonds as they become due;

(3)  create and maintain a bond reserve fund and other fund as required by the bond resolution or trust indenture authorizing the issuance of the bonds; and

(4)  pay all other charges, fees, costs, and expenses that the lessee is required to pay under the resolution or indenture.

(d)  The lease, management agreement, bond resolution, or trust indenture may prescribe systems, methods, routines, procedures, and policies for the operation of the buildings and other facilities owned by the district.  If all or part of the district's buildings or other facilities are leased, the district may delegate to the lessee the duty to establish the systems, methods, routines, procedures, and policies needed for the operation of the leased premise.  (Acts 65th Leg., R.S., Ch. 726, Sec. 15(c) (part).)

Source Law

(c)  The district, through its board, may lease all or part of the buildings and facilities comprising the hospital system to any person, upon terms and conditions considered to be to its best interest.  In connection with such lease, the board may delegate as it deems appropriate such of its powers to manage, control, and administer the leased buildings and facilities to furnish hospital care; … provided, that in no event shall any lease be for a period in excess of 40 years from the date thereof.  In the event that all or part of the district's buildings and facilities are leased, it shall be the duty of the board to provide that the lessee shall charge sufficient rates for services rendered or goods provided at such leased premises which, together with other sources of the lessee's revenues, will produce revenues sufficient to enable the lessee to pay such expenses of operation and maintenance of the leased premises as the lessee is required to pay under the lease and to pay lease rentals to the district which will be sufficient, when taken with any other sources of the district's estimated revenues which are pledged for the same purposes, to pay the interest on any revenue or special obligation bonds which are payable in whole or in part from such lease rentals, to create and maintain a sinking fund to pay the principal of and premium, if any, on such bonds as they become due, to create and maintain a bond reserve fund and such other fund or funds as are provided for in the bond resolution or trust indenture authorizing the issuance of the bonds, and to pay all other charges, fees, costs, and expenses as are required to be paid by such lessee in accordance with said resolution or indenture.  The lease, management agreement, bond resolution, or trust indenture may prescribe systems, methods, routines, procedures, and policies under or in accordance with which the buildings and facilities owned by the district shall be operated, and, in the event that all or part of the district's buildings and facilities are leased, the district may delegate to the lessee the duty to establish the systems, methods, routines, procedures, and policies under or in accordance with which the leased premises shall be operated.

Revisor's Note

(1)  Section 15(c), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, refers to "terms or conditions."  The reference to "conditions" is omitted from the revised law because, in this context, "conditions" is included in the meaning of "terms."

(2)  Section 15(c), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that the district is subject to applicable laws and rules adopted by the "Texas Department of Health Resources" and the "Texas Health Facilities Commission" and to inspection by those agencies.  The revised law omits that provision because any applicable laws and rules apply on their own terms.  In addition, various state laws, including Chapters 222 and 241, Health and Safety Code, provide the necessary regulatory and inspection authority to appropriate state agencies.  The omitted law reads:

(c)  … provided, that the provision of hospital care at any leased buildings and facilities shall be subject to all applicable laws and all rules and regulations promulgated by the Texas Department of Health Resources, the Texas Health Facilities Commission, or any other agency having jurisdiction, and shall be subject to inspection by any duly authorized representative of such agencies; and, … .

Revised Law

Sec. 1010.116.  PURCHASING.  The board may purchase any material, supply, equipment, or vehicle needed by the district.  (Acts 65th Leg., R.S., Ch. 726, Sec. 12(e).)

Source Law

(e)  The board shall have the authority to purchase all materials, supplies, equipment, and vehicles needed by the district.

Revised Law

Sec. 1010.117.  DISPOSITION OF PROPERTY.  The district may sell or otherwise dispose of any type of property, including equipment, on terms the board finds are in the best interest of the district.  (Acts 65th Leg., R.S., Ch. 726, Sec. 15(d).)

Source Law

(d)  The district shall be empowered to sell or otherwise dispose of any property (real or personal) or equipment of any nature upon terms and conditions found by the board to be in the best interest of the district.

Revisor's Note

Section 15(d), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, refers to "property (real or personal)."  The revised law omits "real or personal" because under Section 311.005, Government Code (Code Construction Act), "property" means "real and personal property."

Revised Law

Sec. 1010.118.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient who resides in the district is admitted to a district facility, the board or a board representative may have an inquiry made into the financial circumstances of:

(1)  the patient; and

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

(b)  If the board or the board's authorized representative determines that the patient or those relatives cannot pay all or part of the costs of the patient's care and treatment, the amount of the costs that cannot be paid becomes a charge against the district.

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

(d)  The district 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, the board shall hear and determine the issue, after calling witnesses.

(f)  The final order of the board may be appealed to the district court.  The substantial evidence rule applies to the appeal.  (Acts 65th Leg., R.S., Ch. 726, Sec. 28 (part).)

Source Law

Sec. 28.  When a patient residing within the district has been admitted to the district's facilities, the board, or a representative of the board, may cause inquiry to be made as to the financial circumstances of the patient and of the relatives of the patient legally liable for support of the patient.  If such inquiry discloses that the patient or such relatives are able to pay for the care and treatment of such patient, in whole or in part, an order shall be made by the board directing the patient or such relatives to pay to the district for the care and support of the patient a specified sum each week in proportion to their financial ability.  The district shall have power and authority to collect such sums from the estate of the patient or such relatives legally liable for his support in the manner provided by law for collection of expenses in the last illness of a deceased person.  If the board, or its duly authorized representative, finds that the patient or such relatives are not able to pay, either in whole or in part, for care and treatment of the patient, the expense thereof shall become a charge on the district to the extent of such inability to pay.  In the event of any dispute as to such inability to pay, the board shall hear and determine the issue after calling witnesses.  Appeals from the final order of the board shall lie to the district court.  The substantial evidence rule shall apply… .

Revised Law

Sec. 1010.119.  REIMBURSEMENT FOR SERVICES TO NONRESIDENTS.  If a welfare patient, who is not a district resident, is admitted to a district facility, the district may:

(1)  seek reimbursement from the patient's county of residence; and

(2)  sue for reimbursement.  (Acts 65th Leg., R.S., Ch. 726, Sec. 28 (part).)

Source Law

Sec. 28.  … If a welfare patient is admitted to the district's facilities who is not a resident of the district, the district may seek reimbursement from the county of residence of the patient and may sue for reimbursement.

Revised Law

Sec. 1010.120.  AUTHORITY TO SUE AND BE SUED; SERVICE OF PROCESS.  (a)  The district, through its directors, may sue and be sued in the district's own name in any court of this state.

(b)  Service of process in any suit may be made by serving any two directors.  (Acts of the 65th Leg., R.S., Ch. 726, Sec. 13 (part).)

Source Law

Sec. 13.  The district … may, through its directors, sue and be sued in any and all courts of this state in the name of the district.  Service of process in any suit may be had by serving any two directors… .

[Sections 1010.121-1010.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1010.151.  BUDGET.  An annual budget for each fiscal year shall be prepared as directed by, and for approval of, the board.  (Acts 65th Leg., R.S., Ch. 726, Sec. 17 (part).)

Source Law

Sec. 17.  An annual budget for each fiscal year of the district shall be prepared as directed by, and for approval of, the board, and … .

Revised Law

Sec. 1010.152.  AMENDMENTS TO BUDGET.  The board may amend the budget as the board considers necessary.  (Acts 65th Leg., R.S., Ch. 726, Sec. 17 (part).)

Source Law

Sec. 17.  [An annual budget] … may be amended from time to time as the board may deem necessary… .

Revised Law

Sec. 1010.153.  FISCAL YEAR.  The district's fiscal year ends on the last day of April.  The board may change the fiscal year.  (Acts 65th Leg., R.S., Ch. 726, Sec. 17 (part).)

Source Law

Sec. 17.  …  The fiscal year of the district shall end on the last day of April of each year; such fiscal year may be changed from time to time by the board… .

Revised Law

Sec. 1010.154.  ANNUAL AUDIT.  (a)  The board shall have an independent certified public accountant audit all transactions relating to the district for each fiscal year.

(b)  The accountant's audit report shall be submitted to the board not later than the 90th day after the date the fiscal year ends.  (Acts 65th Leg., R.S., Ch. 726, Sec. 17 (part).)

Source Law

Sec. 17.  …  The board shall have an audit of all transactions relating to the district made by an independent certified public accountant for each fiscal year.  The audit report of such accountant shall be submitted to the board within 90 days following the end of each such fiscal year and … .

Revised Law

Sec. 1010.155.  DEPOSITORY.  (a)  The board shall select one or more banks to serve as the district's depository.

(b)  District money shall be deposited as received with the district's depository bank.

(c)  All deposits shall be secured in the manner provided for securing county funds.  Deposits may be placed on time deposit or used to purchase certificates of deposit.  (Acts 65th Leg., R.S., Ch. 726, Sec. 23 (part).)

Source Law

Sec. 23.  The board shall name one or more banks to serve as a depository, or depositories, for the district and all funds of the district, as received, shall be deposited therein. Such deposits shall be secured as provided by law for the funds of counties of this state and may be placed on time deposit or used to purchase certificates of deposit, all to be secured in like manner… .

Revised Law

Sec. 1010.156.  INVESTMENT OF DISTRICT MONEY.  The board may invest district money in:

(1)  bonds of the United States, this state, or any political subdivision of this state; or

(2)  bonds issued by any agency of the United States if the payment of the principal and interest is guaranteed by the United States.  (Acts 65th Leg., R.S., Ch. 726, Sec. 23 (part).)

Source Law

Sec. 23.  …  The board may also cause funds of the district to be invested in bonds of the United States, the State of Texas, any county, city, or other political subdivision of this state, or in bonds issued by any agency of the United States the payment of the principal of and interest on which is guaranteed by the United States.

[Sections 1010.157-1010.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Revised Law

Sec. 1010.201.  GENERAL OBLIGATION BONDS.  The board may issue and sell general obligation bonds in the name and on the faith and credit of the district for any purpose relating to:

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

(2)  equipping buildings or improvements for those purposes.  (Acts 65th Leg., R.S., Ch. 726, Sec. 18 (part).)

Source Law

Sec. 18.  The board shall have the power and authority to issue and sell bonds in the name and upon the faith and credit of the district for the purchase, construction, acquisition, repair, or renovation of buildings and improvements and equipping same, for hospital purposes, and for any or all of such purposes… .

Revisor's Note

Section 18, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that the board has the power to issue and sell bonds in the name and on the faith and credit of the district.  Because the type of bonds described by Section 18 are known as "general obligation bonds," the revised law is drafted accordingly.

Revised Law

Sec. 1010.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  At the time general obligation bonds are issued under Section 1010.201, the board shall impose an ad valorem tax on all property in the district subject to district taxation at a rate sufficient to:

(1)  pay the interest on the bonds as the interest comes due; and

(2)  provide and maintain a sinking fund adequate to pay the principal on the bonds as the principal matures.

(b)  The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed 75 cents on each $100 valuation of taxable property in the district.  (Acts 65th Leg., R.S., Ch. 726, Sec. 18 (part).)

Source Law

Sec. 18. …  At the time of issuance of such bonds the board shall levy an ad valorem tax on all of the taxable property in the district sufficient to pay the interest on the bonds as such interest comes due and to provide and maintain a sinking fund adequate to pay the principal of such bonds as such principal matures, provided that said tax, together with any other taxes levied by said district, shall not exceed 75 cents on the $100 valuation of taxable property in the district in any one year. …

Revisor's Note

Section 18, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, 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. 1010.203.  REVENUE AND SPECIAL OBLIGATION BONDS.  (a)  The district may issue revenue or special obligation bonds as authorized by the laws of this state relating to the issuance of revenue or special obligation bonds, including Sections 264.042-264.049 and 284.031, Health and Safety Code.

(b)  Bonds issued under this section may be payable from and secured by revenue, encumbrances, and mortgages as authorized by law.  Any maintenance and operating expense of the system that is charged against the revenue of the system may include only items set forth and defined in the proceedings authorizing the bond issuance.  (Acts 65th Leg., R.S., Ch. 726, Sec. 19.)

Source Law

Sec. 19.  The district may issue its revenue or special obligation bonds and may also issue its refunding bonds to refund and/or pay off any validly issued and outstanding district bonds, all in the manner and to the extent as is now or may hereafter be authorized and permitted by the laws of this state relating to the issuance of revenue or special obligation bonds and/or refunding bonds, respectively, including, but not by way of limitation, Sections 8 through 13 of Chapter 122, Acts of the 58th Legislature, 1963, as amended, and Chapter 285, Acts of the 60th Legislature, 1967, and Chapter 784, Acts of the 61st Legislature, 1969, as amended (Sections 8 through 13 of Article 4494r, and Articles 4494r-1 and 717k-3, Vernon's Texas Civil Statutes), and such revenue and special obligation bonds may be payable from and secured by such revenues, encumbrances, and mortgages as authorized by law.  As to such revenue or special obligation bonds, any maintenance and operating expenses of the system which shall be charged against the revenues of the system shall include only such items as are set forth and defined in the proceedings authorizing the issuance of the bonds.

Revisor's Note

(1)  Section 19, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, authorizes the district to refund bonds as provided by the laws of this state, including Chapter 784, Acts of the 61st Legislature, 1969 (Article 717k-3, Vernon's Texas Civil Statutes).  Article 717k-3 was codified in 1999 in relevant part as Chapter 1207, Government Code.  The revised law omits that language because Chapter 1207, Government Code, provides general authority for an issuer, including a hospital district, to issue refunding securities.

(2)  Section 19, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, refers to Sections 8-13, Chapter 122, Acts of the 58th Legislature, 1963 (Sections 8-13, Article 4494r, Vernon's Texas Civil Statutes), and Chapter 285, Acts of the 60th Legislature, Regular Session, 1967 (Article 4494r-1, Vernon's Texas Civil Statutes).  Sections 8-13 of Article 4494r were codified in 1989 as Section 264.042-264.049, Health and Safety Code, and Article 4494r-1 was codified in 1989 as Section 284.031, Health and Safety Code.  The revised law is drafted accordingly.

Revised Law

Sec. 1010.204.  BOND ELECTION.  (a)  The district may not issue bonds unless the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

(b)  A proposition to authorize the issuance of district bonds may be submitted at any district election.  (Acts 65th Leg., R.S., Ch. 726, Secs. 6 (part), 7 (part), 18 (part).)

Source Law

Sec. 6.  … no bonds shall be issued, … unless authorized by a majority of the qualified voters of the district voting at an election held for such purpose.

Sec. 7.  …  At any district election … a proposition, or propositions, to authorize the issuance of bonds of the district may also be submitted.

Sec. 18.  … No bonds shall be issued by the district unless authorized by a majority of the qualified voters of the district voting at an election called for such purpose.

Revisor's Note

(1)  Section 6, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, refers to a majority vote of the "qualified" voters of the district.  The revised law omits "qualified" because Chapter 11, Election Code, governs eligibility to vote in an election and allows only "qualified" voters who are residents of the territory covered by the election to vote in an election.

(2)  Sections 6 and 18, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, refer to an election "held" and an election "called."  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. 1010.205.  MATURITY OF BONDS.  District bonds, including revenue bonds, must mature not later than 40 years after the date of issuance.  (Acts 65th Leg., R.S., Ch. 726, Sec. 20 (part).)

Source Law

Sec. 20.  Bonds of the district, including but not limited to revenue bonds of the district, … shall mature … not more than 40 years from their date, and … .

Revisor's Note

(1)  Section 20, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that bonds may be issued in various series or issues and shall mature serially or otherwise.  The revised law omits the provision because it duplicates Section 1201.022(a)(1), Government Code.  That section applies to the district by application of Section 1201.002, Government Code.  The omitted law reads:

Sec. 20.  [Bonds of the district] … may be issued in various series or issues, [shall mature] serially or otherwise … .

(2)  Section 20, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that bonds must bear interest at a rate determined by the board.  The revised law omits that provision because Section 1204.006, Government Code, permits a public agency to issue public securities at any net effective interest rate of 15 percent or less.  Section 1204.006, Government Code, applies to district bonds by application of Section 1204.001, Government Code.  The omitted law reads:

Sec. 20.  [Bonds of the district] … shall bear interest at such rate or rates as shall be lawfully determined within the discretion of the board… .

(3)  Section 20, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that the bonds and the interest coupons are negotiable instruments and may be made redeemable before maturity.  The revised law omits the reference to "negotiable instruments" because it duplicates Section 1201.041, Government Code, which provides that all public securities are negotiable instruments.  The revised law omits the reference to "interest coupons" because the coupons are issued as part of the bonds.  The revised law omits the provision providing that bonds "may be made redeemable prior to maturity" because Section 1201.021, Government Code, provides that a public security may be redeemed before maturity.  Those sections apply to district bonds by application of Section 1201.002, Government Code.  The omitted law reads:

Sec. 20.  [Bonds of the district] …  Said bonds, and the interest coupons appertaining thereto, shall be negotiable instruments, and they may be made redeemable prior to maturity, and … .

Revised Law

Sec. 1010.206.  EXECUTION OF BONDS.  Bonds shall be signed and executed as provided by the board in the resolution or order authorizing the issuance of bonds.  (Acts 65th Leg., R.S., Ch. 726, Sec. 20 (part).)

Source Law

Sec. 20.  [Bonds of the district] … shall be signed and executed, as provided by the board in the resolution or order authorizing the issuance of said bonds. …

Revisor's Note

Section 20, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that bonds may be issued in the form, denominations, manner, and terms provided by the board.  The revised law omits that provision because it duplicates or is superseded by provisions of general law.  Sections 1201.005 and 1201.024, Government Code, provide that an issuer, including a hospital district, may specify the form of a bond it issues.  Section 1201.021, Government Code, provides that the governing body of an issuer may issue bonds in any denomination.  Sections 1201.005 and 1201.022, Government Code, provide that a governmental entity may specify the terms under which a bond is issued.  Those sections apply to district bonds by application of Section 1201.002, Government Code.  The omitted law reads:

Sec. 20.  [Bonds of the district] … may be issued in such form, denominations, and manner, and under such terms, conditions, and details, and … .

Revised Law

Sec. 1010.207.  BONDS EXEMPT FROM TAXATION.  The following are exempt from taxation by this state or a political subdivision of this state:

(1)  bonds issued or assumed by the district;

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

(3)  profits made in the sale of the bonds.  (Acts 65th Leg., R.S., Ch. 726, Sec. 30 (part).)

Source Law

Sec. 30.  … [the district] … any bonds issued or assumed by it, their transfer and issuance, and any profits made in the sale of such bonds shall be at all times free from taxation by the state or any political subdivision thereof.

Revised Law

Sec. 1010.208.  REFUNDING OR FUNDING AND RETIRING CERTAIN OLDER BONDS.  (a)  This section applies only to bonds approved in an election held before May 31, 1991.

(b)  Except as provided by Subsection (c) and notwithstanding any legal defect in the incurrence, issuance, or assumption of the obligation or indebtedness, the board may issue and sell bonds in the name and on the faith and credit of the district to refund or fund and retire any outstanding obligation or other indebtedness the district has incurred, issued, or assumed.

(c)  The board may not use the power granted by this section to convert Farmers Home Administration bonds to tax bonds.  (Acts 65th Leg., R.S., Ch. 726, Sec. 18A.)

Source Law

Sec. 18A.  (a)  Except as provided in Subsection (b) of this  section, the board shall have the power and authority to issue and sell bonds in the name and upon the faith and credit of the district to refund or fund and retire any outstanding obligation or other indebtedness the district has incurred, issued, or assumed, notwithstanding any legal defect in the incurrence, issuance, or assumption of the obligation or indebtedness.

(b)  The power and authority granted in Subsection (a) of this section may not be used to convert Farmer's Home Administration bonds to tax bonds.

(c)  This section applies only to bonds approved in an election held prior to May 31, 1991.

Revisor's Note

(End of Subchapter)

(1)  Section 20, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that district bonds must be sold on the best terms and for the best price.  The revised law omits that provision because it is superseded by Sections 1201.022(a)(3)(B) and 1204.006(b), Government Code.  Section 1201.022(a)(3)(B) was originally enacted in 1981 and provides the terms under which bonds may be issued.  Section 1204.006(b) provides that a public agency may sell public securities at any price.  The relevant portion of Section 1204.006(b) was originally enacted in 1969 and was substantially reenacted in 1977 by Section 3, Chapter 776, Acts of the 65th Legislature, Regular Session.  The last legislative vote for Chapter 726, the act authorizing the creation of the Burleson County Hospital District, occurred May 27, 1977.  The last legislative vote for Chapter 776 occurred May 28, 1977.  Under Section 311.025, Government Code (Code Construction Act), a later enacted statute controls over a previously enacted conflicting statute.  Sections 1201.022(a)(3)(B) and 1204.006(b), Government Code, apply to bonds issued under Section 20 by application of Sections 1201.002 and 1204.001, Government Code.  The omitted law reads:

Sec. 20.  … All bonds of the district, except refunding bonds, shall be sold by the board on the best terms and for the best possible price.

(2)  Section 21, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, 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 21(c) 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:

Sec. 21.  (a)  All bonds issued by the district shall be submitted to the Attorney General of the State of Texas for examination.

(b)  If he finds that the bonds have been authorized in accordance with law, he shall approve them, and they shall be registered by the Comptroller of Public Accounts of the State of Texas.

(c)  After approval by the attorney general and registration of bonds by the comptroller they shall be incontestable in any court or other forum, for any reason, and shall be valid and binding obligations in accordance with their terms for all purposes.

(3)  Section 25, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that bonds issued under that act are authorized investments for certain entities.  The revised law omits the provision as unnecessary.  As to several of the entities listed, Section 25 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 25 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. 25.  All bonds issued by the district are legal and authorized investments of banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, trustees, and sinking funds of cities, towns, counties, school districts, or other political subdivisions of the state, and for all public funds of the state or its agencies including the state permanent school fund… .

(4)  Section 25, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, effectively provides that bonds issued under that chapter 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. 25.  …  Such bonds are eligible to secure deposits of public funds of the state, cities, towns, counties, school districts, or other political subdivisions or corporations of the state, and are lawful and sufficient security for deposits to the extent of their value when accompanied by all unmatured coupons.

[Sections 1010.209-1010.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Revised Law

Sec. 1010.251.  TAX ELECTION.  The district may impose a tax only if authorized by a majority of the district voters voting in an election held for that purpose.  (Acts 65th Leg., R.S., Ch. 726, Sec. 6 (part).)

Source Law

Sec. 6.  …  no tax shall be levied unless authorized by a majority of the qualified voters of the district voting at an election held for such purpose… .

Revisor's Note

Section 6, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, refers to voting by "qualified" voters.  The revised law omits "qualified" for the reason stated in Revisor's Note (1) to Section 1010.204.

Revised Law

Sec. 1010.252.  IMPOSITION OF AD VALOREM TAX.  (a)  The board shall impose a tax on all property in the district subject to district taxation.

(b)  The tax shall be imposed for and may be pledged to:

(1)  meet the requirements of district bonds;

(2)  provide for the district's maintenance and operating expenses, including the cost of contract payments for hospital care for needy district inhabitants;

(3)  make improvements and additions to the district's hospitals or hospital system; and

(4)  acquire necessary sites for hospitals or the hospital system by gift, purchase, lease, or condemnation.  (Acts 65th Leg., R.S., Ch. 726, Secs. 7 (part), 24(a) (part).)

Source Law

Sec. 7.  …  [Burleson County Hospital District … created with authority to levy annual taxes … of all taxable property] within such district … .

Sec. 24.  (a)  … the board shall annually levy a tax … which tax shall be levied for, and may be pledged to, any or all of the following purposes:

(1)  meeting the requirements of the bonds of the district;

(2)  providing for the maintenance and operating expenses of the district, including, but not limited to, the cost of contract payments for hospital care for the needy inhabitants of the district; and

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

Revisor's Note

Section 24(a), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that the board shall levy an annual tax if the initial election approved the proposition.  The revised law omits the language as executed.  The omitted law reads:

(a)  If the qualified voters of the district shall approve the proposition set forth in Section 7 of this Act, in the manner therein provided, … .

Revised Law

Sec. 1010.253.  TAX RATE.  (a)  The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district.

(b)  In setting the tax rate, the board shall consider all district income, including income from sources other than taxation that are available for the purposes described by Section 1010.252(b).  (Acts 65th Leg., R.S., Ch. 726, Secs. 7 (part), 24(a) (part), (b) (part).)

Source Law

Sec. 7.  … [Burleson County Hospital District … created with authority to levy annual taxes] at a rate not to exceed 75 cents on the $100 valuation of all taxable property within such district … .

Sec. 24.  (a)  [If the qualified voters of the district shall approve the proposition set forth in Section 7 of this Act, … the board shall annually levy a tax] of not to exceed the amount authorized in such proposition, … .

(b)  In setting such tax rate, the board shall consider all income of the district, including, but not limited to, income derived from sources other than taxation, available for the above-stated purposes. …

Revisor's Note

Section 24(b), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, 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 shall determine and certify to the tax assessor-collector the amount of tax to be levied and collected.

Revised Law

Sec. 1010.254.  ASSESSMENT AND COLLECTION BY COUNTY TAX ASSESSOR-COLLECTOR.  (a)  This section applies unless the board elects to have taxes assessed and collected under Section 1010.255 or 1010.256.

(b)  The tax assessor-collector of Burleson County shall assess and collect taxes imposed by the district.  (Acts 65th Leg., R.S., Ch. 726, Secs. 27(a) (part), (b) (part).)

Source Law

(a)  … unless the board elects to have taxes assessed and collected by the district's own tax assessor-collector under Subsection (c) of this section, or by any city, taxing district, or other governmental subdivision under Subsection (d) of this section… .

(b)  Under this subsection, … .  The tax assessor-collector of Burleson County is required to accomplish the assessment and collection of all taxes levied by and on behalf of the district… .

Revisor's Note

(1)  Sections 27(a) and (b), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, refer to the assessment and collection of district taxes on county tax values.  The revised law omits those provisions because they were repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979, which repealed all "general, local, and special laws" that conflicted with that act.  The 1979 act enacted the Property Tax Code (Title 1, Tax Code), a comprehensive, substantive codification of property tax law.  Title 1, Tax Code, provides the exclusive procedures for the appraisal of property for taxation by a taxing unit, including a hospital district.  The omitted law reads:

Sec. 27.  (a)  …                   All taxes of the district shall be assessed and collected in accordance with Burleson County tax values as provided in Subsection (b) of this section … .

(b)  … the district's taxes shall be assessed and collected in accordance with Burleson County tax values in the same manner as provided by law with relation to county taxes… .

(2)  Section 27(b), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that the county tax assessor-collector may charge a fee for the assessment and collection of district taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (1).  Section 6.27(b), Tax Code,  provides for the compensation of a county tax assessor-collector assessing and collecting taxes for another taxing unit.  The omitted law reads:

(b)  …  The assessor-collector of taxes shall charge and deduct from payments to the district an amount as fees for assessing and collecting the taxes, which amount shall be agreed upon between the board and the Commissioners Court of Burleson County.  The fees shall be deposited as collected in the officers salary fund of the county and reported as fees of office of the county tax assessor-collector… .

(3)  Section 27(b), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that interest and penalties on district taxes and discounts are the same as for county taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (1). Chapter 33, Tax Code, provides for the assessment of penalties and interest on delinquent taxes, and Section 31.05, Tax Code, provides for discounts on the early payment of taxes.  The omitted law reads:

(b)  …  Interest and penalties on taxes paid to the district shall be the same as in the case of county taxes.  Discounts shall be the same as allowed by the county… .

(4)  Section 27(b), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that tax revenue shall be deposited in the district's depository.  The revised law omits the provision because Section 31.10, Tax Code, requires the tax assessor-collector of a taxing unit to deposit taxes collected in the unit's depository.  The omitted law reads:

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

(5)  Section 27(b), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that the bond of the county tax assessor-collector is security for the performance of district duties unless the board determines that an additional bond is necessary.  The revised law omits that provision because it duplicates Section 6.29(b), Tax Code, which authorizes a taxing unit for which the county tax assessor-collector collects a tax to require that collector to post an additional bond.  The omitted law reads:

(b)  …  The bond of the county tax assessor-collector shall stand as security for the proper performance of his duties as assessor-collector of the district, or, if deemed advisable by the board, additional bond payable to the district may be required… .

(6)  Section 27(b), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, states that the tax assessor-collector may act in accordance with state law relating to the assessment, collection, and enforcement of state and county taxes.  The revised law omits that provision as unnecessary.  The state law relating to the assessment, collection, and enforcement of all ad valorem taxes is Title 1, Tax Code.  Section 1.02, Tax Code, requires all taxing units of government to administer the assessment, collection, and enforcement of taxes in conformity with that title.  The omitted law reads:

(b)  … In all matters pertaining to the assessment, collection, and enforcement of collection of taxes for the district, the county tax assessor-collector is authorized to act in all respects according to the laws of the state relating to state and county taxes.

Revised Law

Sec. 1010.255.  ASSESSMENT AND COLLECTION BY DISTRICT TAX ASSESSOR-COLLECTOR.  (a)  The board may elect to have district taxes assessed and collected by a tax assessor-collector appointed by the board.  An election under this subsection must be made by December 1 and governs the manner in which taxes are assessed and collected, until changed by the board.

(b)  The district tax assessor-collector must:

(1)  reside in the district; and

(2)  own real property subject to district taxation.

(c)  The board shall set for the district tax assessor-collector:

(1)  the term of employment; and

(2)  compensation.  (Acts 65th Leg., R.S., Ch. 726, Secs. 27(a) (part), (c) (part).)

Source Law

Sec. 27.  (a)  … [board … elects to have taxes assessed and collected by the district's own tax assessor-collector … .]  Any such selection by the board may be made prior to December 1 annually and shall govern the manner in which taxes are assessed and collected until changed by the board.

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

Revisor's Note

(1)  Section 27(c), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, requires the board to set a bond amount of not less than $5,000 as security for the district tax assessor-collector.  The revised law omits the provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (1) to Section 1010.254.  Section 6.29(a), Tax Code,  authorizes the governing body of a taxing unit, including a hospital district, to require the unit's tax assessor-collector to post bond without limiting the amount. The omitted law reads:

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

(2)  Section 27(c), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, states that the board shall appoint a board of equalization and establishes the duties of that board and the tax assessor-collector.  The revised law omits the reference to a board of equalization because boards of equalization were abolished and their functions and duties transferred to appraisal review boards by the 1979 enactment of the Property Tax Code, Title 1, Tax Code (Section 1, Chapter 841, Acts of the 66th Legislature, Regular Session, 1979).  The provisions relating to the duties of the tax assessor-collector are omitted because the Tax Code specifies the duties of a tax assessor-collector.  The omitted law reads:

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

(3)  Section 27(c), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, refers to the applicability of Title 122 of the Revised Statutes (Taxation).  Before its repeal and recodification, Title 122 was composed of V.A.C.S. Articles 7041-7359a.  The relevant parts of those provisions were revised in 1979 as the Property Tax Code, Title 1, Tax Code (Section 1, Chapter 841, Acts of the 66th Legislature, Regular Session, 1979).  The revised law omits the provision because Title 1 applies to the district on its own terms.  The omitted law reads:

(c)  … Except as provided in this Act to the contrary, Title 122, Revised Civil Statutes of Texas, 1925, as amended, applies to the district.

Revised Law

Sec. 1010.256.  ASSESSMENT AND COLLECTION BY TAX ASSESSOR-COLLECTOR OF ANOTHER POLITICAL SUBDIVISION.  (a)  The board may elect to have all or part of the district's taxes assessed and collected by a political subdivision in which any part of the district is located.  An election under this subsection must be made by December 1 and governs the manner in which taxes are assessed and collected, until changed by the board.

(b)  The tax assessor or collector of the political subdivision shall assess or collect the appropriate district taxes in accordance with the board's election under Subsection (a) and for the compensation agreed on by the board and the governing body of the political subdivision.  (Acts 65th Leg., R.S., Ch. 726, Secs. 27(a) (part), (d) (part).)

Source Law

(a)  …  [All taxes of the district shall be assessed and collected in accordance with Burleson County tax values as provided in Subsection (b) of this section] unless the board elects to have taxes assessed and collected [by the district's own tax assessor-collector under Subsection (c) of this section,] or by any city, taxing district, or other governmental subdivision under Subsection (d) of this section.  Any such selection by the board may be made prior to December 1 annually and shall govern the manner in which taxes are assessed and collected until changed by the board.

(d)  Under this subsection, district taxes shall be assessed, equalized, and/or collected, in whole or in part, by the tax assessors, board of equalization, and/or tax collectors, respectively, of any city, taxing district, or other governmental subdivision in which all or any part of the district is located; and … for such compensation as shall be agreed upon between the board and the governing body of such governmental subdivision, and … .

Revisor's Note

(1)  Section 27(d), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that the district may elect to have taxes assessed and collected by any "city, taxing district, or other governmental subdivision."  The revised law substitutes for the quoted language "political subdivision" because every city or taxing district is a governmental subdivision, and "political subdivision" is the term more commonly used to refer to a governmental subdivision.

(2)  Section 27(d), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, prescribes the manner in which property is appraised, property values are equalized, and district taxes are assessed and collected by a governmental subdivision the district elects to have perform those duties.  The revised law omits those provisions because they were repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (1) to Section 1010.254 and Revisor's Note (2) to Section 1010.255.  The omitted law reads:

(d)  … such property may be assessed and the value thereof equalized on the same basis or a different basis than that used by any such governmental subdivision.  Such property shall be assessed, the values thereof equalized, and such taxes collected, in the manner, and … [agreed upon] … . The ad valorem tax law applicable to each such governmental subdivision shall apply to its officials in carrying out such functions for the district.

(3)  Section 27(d), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that the duties assumed by the officials of a political subdivision related to the collection and assessment of district taxes are additional duties.  The revised law omits the provision because it is superseded by Section 6.23(b), Tax Code, which provides the duties of a tax assessor or collector assessing or collecting taxes for another taxing unit.  The omitted law reads:

(d)  … the function thus assumed by the officials of any such governmental subdivision shall be additional duties pertaining to their offices, respectively. …

Revisor's Note

(End of Subchapter)

Section 27(a), Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that the board may levy taxes for the entire year in which the district is established.  The revised law omits the provision as executed.  The omitted law reads:

Sec. 27.  (a)  The board shall have the authority to levy taxes for the entire year in which the district is established… .

Revisor's Note

(End of Chapter)

(1)  Section 31, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, 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. 31.  …  If any provision of this Act is finally held by a court of competent jurisdiction to be invalid, such holding shall not affect the authorization for the creation of the district or the validity of any other provisions of this Act, and the legislature hereby declares that it would have created the district and enacted the valid provisions of this Act notwithstanding the invalidity of any other provision, and it is intended that this Act shall be severable and shall be construed and applied as if any such invalid or unconstitutional section, provision, clause, or award had not been included herein.

(2)  Section 32, Chapter 726, Acts of the 65th Legislature, Regular Session, 1977, provides that public notice of enactment of the statutes was provided in a manner that satisfies the requirements of the Texas Constitution.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 32.  Proof of publication of the notice required in the enactment of this Act under the provisions of Article IX, Section 9, of the Texas Constitution, has been made in the manner and form required by such constitutional provision and provided by law pertaining to the enactment of local and special laws, and such notice is hereby found sufficient to satisfy such requirements.