80C66(3) YDB

 

CHAPTER 1039. HEMPHILL COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 1039.001.  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 Hemphill County Hospital District.  (New.)

Revisor's Note

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

Revised Law

Sec. 1039.002.  AUTHORITY FOR OPERATION.  The Hemphill County Hospital District operates and is administered and financed in accordance with Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties provided by this chapter.  (Acts 66th Leg., R.S., Ch. 424, Sec. 1 (part).)

Source Law

Sec. 1.  In accordance with Article IX, Section 9, of the Texas Constitution, this Act authorizes the creation, establishment, administration, maintenance, operation, and financing of a hospital district within this state, … to be known as Hemphill County Hospital District with the rights, powers, and duties as provided in this Act.

Revisor's Note

Section 1, Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, authorizes the "creation, establishment, administration, maintenance, operation, and financing" of the district.  The revised law omits "creation" and "establishment" as executed.  The revised law omits "maintenance" because, in this context, the meaning of that term is included in the meaning of "operation."

Revised Law

Sec. 1039.003.  ESSENTIAL PUBLIC FUNCTION.  The district performs an essential public function in carrying out the purposes of this chapter.  (Acts 66th Leg., R.S., Ch. 424, Sec. 22 (part).)

Source Law

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

Revised Law

Sec. 1039.004.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of Hemphill County, Texas. (Acts 66th Leg., R.S., Ch. 424, Sec. 1 (part).)

Source Law

Sec. 1.  … the boundaries of which shall include all of the land or territory in Hemphill County, Texas, … .

Revised Law

Sec. 1039.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION.  The support and maintenance of the district may not become a charge against or obligation of this state.  (Acts 66th Leg., R.S., Ch. 424, Sec. 21 (part).)

Source Law

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

Revised Law

Sec. 1039.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.  The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility.  (Acts 66th Leg., R.S., Ch. 424, Sec. 21 (part).)

Source Law

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

Revisor's Note

(End of Subchapter)

Sections 3(a), (b), (c), and (d), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, provide procedures for holding an election on the creation of the district and the imposition of an ad valorem tax.  Because the creation of the district and the imposition of the tax were approved at the election, the revised law omits those provisions as executed.  The omitted law reads:

Sec. 3.  (a)  The district shall not be created nor shall any tax be authorized unless and until the creation and the tax are approved by a majority of the qualified electors of the area of the proposed district voting at an election called and held for that purpose.  The election may be called by a majority of the temporary directors or shall be called by the temporary directors on presentation of a petition signed by at least 50 qualified voters of the area of the proposed district.  The election shall be held not less than 35 nor more than 60 days after the date the election is ordered.  The order calling the election shall specify the date, place or places of holding the election, the form of ballot, and the presiding judge and alternate judge for each voting place, and shall provide for clerks as in county elections.  Notice of the election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in the county once a week for two consecutive weeks, the first publication to appear at least 30 days before the date set for the election.  The failure of the election shall not operate to prohibit the calling and holding of subsequent elections for the same purpose, but no district confirmation election may be held within 12 months of any preceding election for the same purpose.  If the district is not confirmed at an election held within 60 months from the effective date of this Act, this Act is repealed.

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

(c)  The form of the ballot used at the election on the creation of the district shall be in conformity with Section 61, Texas Election Code, as amended (Article 6.05, Vernon's Texas Election Code), so that ballots may be cast for or against the following proposition:  "The creation of the Hemphill County Hospital District with the authority to levy a tax not to exceed 75 cents on the $100 valuation on all taxable property in the district subject to hospital district taxation."

(d)  Within 10 days after the election is held, the temporary directors of the district shall convene and canvass the returns of the election and, in the event the election results favorably to the proposition specified in Subsection (c) of this section, the board shall so find and declare the hospital district created.

[Sections 1039.007-1039.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1039.051.  BOARD ELECTION; TERM.  (a)  Except as provided by Section 1039.052, the board consists of five directors elected from the district at large.

(b)  Directors serve staggered two-year terms unless four-year terms are established under Section 285.081, Health and Safety Code.  (Acts 66th Leg., R.S., Ch. 424, Sec. 4(c) (part).)

Source Law

(c)  … permanent directors of the district, shall take the constitutional oath of office, and … shall divide themselves into two classes, namely:  class one, two persons to serve until the first Saturday in April following the election at which the creation of the district is approved, and class two, three persons to serve until the first Saturday in April of the next succeeding year.  Successors shall be elected by vote of the qualified voters of the entire district for two-year terms… .

Revisor's Note

(1)  Section 4, Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, prescribes the procedures for the appointment of temporary directors and for electing the initial board of directors ("class one" and "class two").  The revised law omits those provisions as executed but codifies the establishment of a board consisting of five directors elected from the district at large.  Section 4 also establishes staggered two-year terms for the initial elected directors that expire on the first Saturday in April in the first or second year after the election ("class one" and "class two").  The revised law codifies the provision specifying staggered terms but omits the provision relating to the date on which the initial terms expire as executed.

(2)  Sections 4(a), (b), and (c), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, prescribe the procedure for the appointment and the terms of service of the temporary directors on the effective date of the act.  The revised law omits those provisions as executed.  Throughout this chapter, the revised law omits references to "temporary" directors as executed.  The omitted law reads:

Sec. 4.  (a)  On the effective date of this Act or as soon after that time as is possible, the Commissioners Court of Hemphill County shall appoint five persons to serve as temporary directors.  Each temporary director shall take the constitutional oath of office.

(b)  Temporary directors shall serve for a period of two years or until the creation of the district is confirmed at an election, whichever date occurs first.  Any vacancy in the office of temporary director, whether by reason of failure to qualify or vacancy before the confirmation of the district at an election, shall be filled by appointment made by the county judge of Hemphill County.

(c)  At the time the creation of the district is approved and the returns of the election are officially canvassed, the persons then serving as temporary directors shall become … .

(3)  Section 4(c), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, 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.

(4)  Section 4(c), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, 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 for the convenience of the reader.

Revised Law

Sec. 1039.052.  ALTERNATIVE DIRECTOR ELECTION.  (a)  As an alternative to electing directors at large, the board may:

(1)  provide for all or some directors to be elected from single-member districts; and

(2)  devise and implement for the directors' election a plan of apportionment as determined to be in the best interest of the district and district inhabitants.

(b)  Before implementing the apportionment plan, the plan must be approved by a majority of the district voters voting at an election held for that purpose.

(c)  The election must be held in the same manner as an election required for the issuance of bonds.  (Acts 66th Leg., R.S., Ch. 424, Sec. 3(f).)

Source Law

(f)  In the alternative to the at-large provisions for the election of directors, the board of directors of the district may provide for all or part of the members of the board to be elected from single-member districts and devise and implement a plan of apportionment for the election of directors as shall be determined to be in the best interest of the district and the inhabitants of the district, provided, however, before the implementation of a plan of apportionment for the election of directors, the plan must be approved by a majority vote of the qualified voters of the district who voted at an election called and held for that purpose in the district, the election to be called, held, and conducted in the same manner as an election required for the issuance of bonds.

Revisor's Note

(1)  Section 3(f), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, refers to a majority vote of the "qualified" voters of the district.  The revised law omits "qualified" as unnecessary in this context because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "qualified" voters who are residents of the territory covered by the election to vote in an election.

(2)  Section 3(f), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, refers to an election "called and held" and an election "called, held, and conducted."  The revised law omits references 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.  The revised law omits the reference to "conducting" an election because it is included in the meaning of holding an election.

Revised Law

Sec. 1039.053.  NOTICE OF ELECTION.  At least 30 days before the date of an election of directors, notice of the election shall be published one time in a newspaper or newspapers that individually or collectively have general circulation in the district.  (Acts 66th Leg., R.S., Ch. 424, Sec. 4(c) (part).)

Source Law

(c)  … Notice of an election of directors shall be published one time at least 30 days before the date of the election in a newspaper or newspapers which individually or collectively have general circulation in the district. …

Revised Law

Sec. 1039.054.  QUALIFICATIONS FOR OFFICE.  (a)  A person may not be elected or appointed as a director unless the person is:

(1)  a resident of the district; and

(2)  a qualified voter.

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

(1)  the district administrator; or

(2)  a district employee.  (Acts 66th Leg., R.S., Ch. 424, Sec. 4(d).)

Source Law

(d)  No person shall be appointed or elected as a member of the temporary or permanent board of directors unless he or she is a resident of the district and a qualified voter.  The administrator and employees of the district are not eligible to serve as directors.

Revised Law

Sec. 1039.055.  BOARD VACANCY.  If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term.  (Acts 66th Leg., R.S., Ch. 424, Sec. 4(c) (part).)

Source Law

(c)  …  Vacancies in office shall be filled for the unexpired term by the remainder of the board of directors.

Revised Law

Sec. 1039.056.  OFFICERS.  (a)  The board shall elect:

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

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

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

(c)  The board shall fill a vacancy in a board office for the unexpired term.  (Acts 66th Leg., R.S., Ch. 424, Sec. 4(e) (part).)

Source Law

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

Revised Law

Sec. 1039.057.  COMPENSATION; EXPENSES.  A director or officer serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties.  The expenses must be:

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

(2)  approved by the board.  (Acts 66th Leg., R.S., Ch. 424, Sec. 4(e) (part).)

Source Law

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

Revisor's Note

Section 4(e), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, requires that approved expenses be reported in the "minute book of the district or other records of the district."  The revised law omits the reference to the "minute book of the district" because the minute book is a district record.

Revised Law

Sec. 1039.058.  VOTING REQUIREMENT.  A concurrence of three  directors is sufficient in any matter relating to district business.  (Acts 66th Leg., R.S., Ch. 424, Sec. 4(e) (part).)

Source Law

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

Revisor's Note

Section 4(e), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, provides that three directors constitute a quorum.  The revised law omits that provision because it duplicates Section 311.013, Government Code (Code Construction Act), which provides that a majority of a board or commission constitutes a quorum.  The omitted law reads:

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

Revised Law

Sec. 1039.059.  DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR.  (a)  The board shall appoint a qualified person to serve as district administrator of the hospital system and ancillary health care system.

(b)  The board may appoint an assistant administrator.

(c)  The district administrator and any assistant administrator serve at the will of the board and are entitled to the compensation determined by the board.

(d)  On assuming the duties of district administrator, the administrator shall execute a bond payable to the district in an amount set by the board of not less than $5,000 that:

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

(2)  contains other conditions the board may require.  (Acts 66th Leg., R.S., Ch. 424, Sec. 5(c) (part).)

Source Law

(c)  The board of directors shall appoint a qualified person to serve as administrator or manager of the hospital system and ancillary health care system and may, in its discretion, appoint an assistant to the administrator or manager.  The administrator or manager, and assistant administrator or manager, if any, shall serve at the will of the board and shall receive compensation fixed by the board.  The administrator or manager shall, on assuming the person's duties, execute a bond payable to the hospital district in an amount to be set by the board of directors, in no event less than $5,000, conditioned that the person shall perform the duties required of the person, and containing other conditions the board may require… .

Revisor's Note

Section 5(c), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, provides that the board shall appoint a person as the "administrator or manager" of the district and may appoint an "assistant to the administrator or manager."  Throughout this chapter, the revised law omits "manager" because, in context, "manager" is included in the meaning of "administrator" and "administrator" is the term used by the district.

Revised Law

Sec. 1039.060.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.  Subject to the limitations prescribed by the board, the district administrator shall:

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

(2)  direct the affairs of the district.  (Acts 66th Leg., R.S., Ch. 424, Sec. 5(c) (part).)

Source Law

(c)  …   The administrator or manager shall supervise all the work and activities of the district and shall have general direction of the affairs of the district, subject to the limitations prescribed by the board.

Revised Law

Sec. 1039.061.  EMERGENCY ACTION. (a)  In an emergency, the district administrator may take any lawful action necessary to preserve district assets or protect patient health and safety.

(b)  As soon as practicable after an emergency action is taken, the district administrator shall report the action to the board, and the board shall amend the annual budget to reflect any costs of the action.  (Acts 66th Leg., R.S., Ch. 424, Sec. 6A.)

Source Law

Sec. 6A.  (a)  In an emergency, the administrator or manager may take any lawful action necessary to preserve district assets or protect patient health and safety.

(b)  As soon as practicable after any action is taken, the administrator or manager shall report the emergency action to the board of directors, and the board shall amend the annual budget to reflect the costs of the action, if any.

Revised Law

Sec. 1039.062.  APPOINTMENT OF STAFF AND EMPLOYEES.  (a)  The board may appoint to the staff any doctors the board considers necessary for the efficient operation of the hospital system and the ancillary health care system and may make temporary appointments as necessary.

(b)  The district may employ fiscal agents, accountants, architects, and additional attorneys the board considers proper.

(c)  The board may delegate to the district administrator the authority to hire employees, including technicians and nurses, for the district, the hospital system, and the ancillary health care system.  (Acts 66th Leg., R.S., Ch. 424, Secs. 5(d), (e), 17.)

Source Law

[Sec. 5]

(d)  The board of directors may appoint to the staff doctors it considers necessary for the efficient operation of the hospital system and ancillary health care system and may provide for temporary appointments to the staff if warranted by circumstances.

(e)  The board of directors may delegate to the administrator or manager the authority to employ technicians, nurses, and other employees of the hospital system and ancillary health care system and the district.

Sec. 17.  The district may employ fiscal agents, accountants, architects, and additional attorneys as the board may consider proper.

Revisor's Note

(End of Subchapter)

(1)  Section 4(c), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, states that a person must file a ballot application with the board secretary to be a candidate for director and prescribes a deadline for filing the application.  The revised law omits the requirement to file the application with the board secretary because it duplicates Sections 144.003 and 144.004, Election Code.  The revised law omits the filing deadline because it is superseded by Section 144.005, Election Code.  Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state.  The omitted law reads:

(c)  …  A person who wishes to have the person's name printed on the ballot as a candidate for director must file an application with the secretary of the board of directors not later than the 45th day before the date of the election… .

(2)  Section 4(c), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, provides that Subchapter C, Chapter 2, Election Code, applies to the election of unopposed director candidates.  The revised law omits the provision because Section 285.131, Health and Safety Code (requiring write-in candidates to file a declaration of candidacy), makes Subchapter C, Chapter 2, apply to the district.   The omitted law reads:

(c)  … Subchapter C, Chapter 2, Election Code, applies to the election of unopposed candidates for the board of directors… .

[Sections 1039.063-1039.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1039.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for operating all hospital facilities for providing medical and hospital care for the district's needy inhabitants.  (Acts 66th Leg., R.S., Ch. 424, Sec. 20 (part).)

Source Law

Sec. 20.  …  The hospital district shall assume full responsibility for the operation of all hospital facilities for the furnishing of medical and hospital care for its needy inhabitants… .

Revisor's Note

Section 20, Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, provides that the district "shall assume" full responsibility for operating hospital facilities 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. 1039.102.  RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT.  A political subdivision located wholly or partly within the district may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care for district residents.  (Acts 66th Leg., R.S., Ch. 424, Sec. 20 (part).)

Source Law

Sec. 20.  After creation of the hospital district, no county, municipality, or political subdivision wholly or partly within the boundaries of the district may levy taxes or issue bonds or other obligations for hospital purposes or for providing medical care for the residents of the district… .

Revisor's Note

(1)  Section 20, Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, provides that "[a]fter creation of the hospital district," certain political subdivisions may not levy taxes or issue bonds.  The revised law omits the quoted language as executed.  In addition, throughout this chapter, the revised law substitutes "impose" for "levy" because, in this context, the terms are synonymous and the former is more commonly used.

(2)  Section 20, Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, refers to a "county, municipality, or political subdivision."  The revised law omits the references to "municipality" and "county" because "municipality" and "county" are included in the meaning of "political subdivision."

Revised Law

Sec. 1039.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  The board shall manage, control, and administer the hospital system and ancillary health care system and the district's money and resources.  (Acts 66th Leg., R.S., Ch. 424, Sec. 5(a) (part).)

Source Law

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

Revised Law

Sec. 1039.104.  HOSPITAL SYSTEM.  (a)  The district shall provide for the establishment of a hospital system by:

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

(2)  equipping the buildings; and

(3)  administering the system for hospital purposes.

(b)  The hospital system and ancillary health care system may include equipment, facilities, and services the board considers necessary for hospital care and ancillary health care, including:

(1)  domiciliary care and treatment of sick or injured patients;

(2)  geriatric services;

(3)  outpatient clinics;

(4)  rural health clinics;

(5)  convalescent home facilities;

(6)  physician's offices;

(7)  home health services;

(8)  long-term care;

(9)  skilled nursing care;

(10)  intermediate nursing care;

(11)  assisted living facilities;

(12)  hospice care;

(13)  ambulatory surgery centers;

(14)  urgent care facilities; and

(15)  operation of a mobile emergency medical service.  (Acts 66th Leg., R.S., Ch. 424, Secs. 2 (part), 11(a) (part).)

Source Law

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

Sec. 11.  (a) … The hospital system and ancillary health care system may include equipment, facilities, and services considered necessary for hospital care and ancillary health care by the directors, including domiciliary care and treatment of sick or injured patients, geriatric services, outpatient clinics, rural health clinics, convalescent home facilities, physician's offices, home health services, long-term care, skilled nursing care, intermediate nursing care, assisted living facilities, hospice care, ambulatory surgery centers, urgent care facilities, and operation of a mobile emergency medical service.

Revised Law

Sec. 1039.105.  RULES.  The board may adopt rules governing the operation of the district, the hospital system and ancillary health care system, and the district's staff and employees.  (Acts 66th Leg., R.S., Ch. 424, Sec. 5(b) (part).)

Source Law

(b)  The district, through its board of directors, … may adopt rules governing the operation of the district, the hospital system and ancillary health care system, its staff, and its employees.

Revised Law

Sec. 1039.106.  PURCHASING AND ACCOUNTING PROCEDURES.  The board may prescribe:

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

(2)  all accounting and control procedures.  (Acts 66th Leg., R.S., Ch. 424, Sec. 11(d) (part).)

Source Law

(d)  The board of directors of the district may prescribe the method of making purchases and expenditures by and for the hospital district and prescribe all accounting and control procedures. …

Revised Law

Sec. 1039.107.  DISTRICT PROPERTY, FACILITIES, EQUIPMENT, AND SERVICES.  (a)  The board shall determine the type, number, and location, either inside or outside the district, of facilities and services required to maintain an adequate hospital system and ancillary health care system.

(b)  The board may:

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

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

(c)  The board may lease, sell, or otherwise dispose of all or part of the district's property of any nature, including the district's hospital, ancillary health care or other facilities,  buildings, supplies, or equipment, to a public or private entity on terms the board finds are in the best interest of the district's inhabitants.  (Acts 66th Leg., R.S., Ch. 424, Secs. 11(a) (part), (c), (e) (part).)

Source Law

Sec. 11.  (a)  The board of directors has complete discretion to determine the type, number, and location, either inside or outside the district, of facilities and services required to establish and maintain an adequate hospital system and ancillary health care system. …

(c)  The board of directors, on behalf of the district, may lease or sell or otherwise dispose of all or part of the district's property of any nature, including the district's hospital, ancillary health care facilities or other facilities, buildings, supplies, or equipment, to a public or private entity on terms and conditions found by the board to be in the best interest of its inhabitants.

(e)  The board of directors, on behalf of the district, may acquire by lease, purchase, or lease to purchase property, facilities, supplies, and equipment for the district for use in the hospital system and ancillary health care system and may mortgage or pledge the property, facilities, supplies, or equipment acquired as security for the payment of the purchase price… .

Revisor's Note

(1)  Section 11(a), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, requires the board to determine the buildings required to "establish and maintain" an adequate hospital system and ancillary health care system.  The revised law omits the reference to establishing the hospital system as executed.

(2)  Section 11(c), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, refers to "terms and conditions."  The revised law omits the reference to "conditions" because "conditions" is included in the meaning of "terms."

Revised Law

Sec. 1039.108.  EMINENT DOMAIN.  (a)  The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property located in district territory if the interest is necessary or convenient for the district to exercise a right, power, or privilege conferred by this chapter.

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

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

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

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

(3)  provide a bond for costs or a supersedeas bond on an appeal or writ of error.  (Acts 66th Leg., R.S., Ch. 424, Sec. 15(a).)

Source Law

Sec. 15.  (a)  The district may exercise the power of eminent domain for the purpose of acquiring by condemnation any and all property of any kind and character in fee simple, or any lesser interest in property, 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.  The district may not be required to make deposits in the registry of the trial court of the sum required by Paragraph 2, Article 3268, Revised Civil Statutes of Texas, 1925, as amended, or to make bond as provided in that law.  In condemnation proceedings being prosecuted by the district, the district may not be required to pay in advance or give bond or other security for costs in the trial court, or to give any bond otherwise required for the issuance of a temporary restraining order or a temporary injunction or to give bond for costs or for supersedeas on any appeal or writ of error.

Revisor's Note

(1)  Section 15(a), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, 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.

(2)  Section 15(a), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, refers to "Paragraph 2, Article 3268, Revised Civil Statutes of Texas, 1925, as amended."  That statute was codified in 1983 as Section 21.021(a), Property Code, and 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 the statute unless expressly provided otherwise.

Revised Law

Sec. 1039.109.  COST OF RELOCATING OR ALTERING PROPERTY.  In exercising the power of eminent domain, if the board requires relocating, raising, lowering, rerouting, changing the grade, or altering the construction of any railroad, electric transmission, telegraph or telephone line, conduit, pole, or facility, 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 66th Leg., R.S., Ch. 424, Sec. 15(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 at 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. 1039.110.  GIFTS AND ENDOWMENTS.  The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district.  (Acts 66th Leg., R.S., Ch. 424, Sec. 19.)

Source Law

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

Revisor's Note

Section 19, Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, 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. 1039.111.  CONSTRUCTION CONTRACTS.  A construction contract must be made in the manner provided by Subchapter B, Chapter 271, Local Government Code.  (Acts 66th Leg., R.S., Ch. 424, Sec. 11(d) (part).)

Source Law

(d)  …  All contracts for construction shall be made in the manner provided by Subchapter B, Chapter 271, Local Government Code.

Revised Law

Sec. 1039.112.  OPERATING AND MANAGEMENT CONTRACTS.  The board may enter into an operating or management contract with one or more public or private entities relating to a district facility or service.  (Acts 66th Leg., R.S., Ch. 424, Sec. 11(b) (part).)

Source Law

(b)  The board of directors may enter into an operating or management contract with one or more public or private entities with regard to all or part of district facilities and services. …

Revised Law

Sec. 1039.113.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR TREATMENT.  The board may contract with a county, a municipality, this state, or a federal agency for the treatment of a sick or injured person.  (Acts 66th Leg., R.S., Ch. 424, Sec. 5(f) (part).)

Source Law

(f)  The board of directors … may contract with any county, incorporated city or town, the State of Texas, or agencies of the federal government for the treatment of sick, diseased, or injured persons.

Revisor's Note

(1)  Section 5(f), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, refers to an "incorporated city or town."  The revised law omits the reference to "incorporated" because under the Local Government Code all cities must be incorporated. The revised law substitutes "municipality" for "city or town" because the meaning of "municipality" includes both cities and towns and because that is the term used in the Local Government Code.

(2)  Section 5(f), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, refers to the treatment of "sick, diseased, or injured" persons.  The revised law omits the references to "diseased" because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1039.114.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR INVESTIGATORY OR OTHER SERVICES.  The board may contract with a political subdivision or governmental agency for the district to  provide investigatory or other services for the medical, hospital, or welfare needs of district inhabitants.  (Acts 66th Leg., R.S., Ch. 424, Sec. 5(f) (part).)

Source Law

(f)  The board of directors may contract with any other political subdivision or governmental agency whereby the district will provide investigatory or other services as to the medical, hospital, or welfare needs of the inhabitants of the district and … .

Revised Law

Sec. 1039.115.  JOINT OWNERSHIP ARRANGEMENT.  The board may enter into a joint ownership arrangement for the district with a public or private entity to provide management or operating services if the board determines that the joint ownership arrangement is in the district's best interest and does not violate Section 52, Article III, Texas Constitution.  (Acts 66th Leg., R.S., Ch. 424, Sec. 11(b) (part).)

Source Law

(b)  …  The board, on behalf of the district, may enter into a joint ownership arrangement with a public or private entity to provide management or operating services if the board determines that the joint ownership arrangement is in the district's best interests and does not violate Article III, Section 52, Texas Constitution.

Revised Law

Sec. 1039.116.  PAYMENT FOR TREATMENT; PROCEDURES.  (a) When a patient who resides in the district is admitted to a district facility, the district administrator may have an inquiry made into the circumstances of:

(1)  the patient; and

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

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

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

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

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

(1)  resolve the dispute or doubt; and

(2)  issue a final order.

(f)  A final order of the board may be appealed to the district court. The substantial evidence rule applies to the appeal.  (Acts 66th Leg., R.S., Ch. 424, Secs. 18(b), (c), (d), (e), (f).)

Source Law

(b)  Whenever a patient residing in the district has been admitted to the facilities of the district, the administrator or manager may have an inquiry made as to the patient's circumstances and those of the relatives of the patient legally liable for the patient's support.  If the administrator or manager finds that the patient or the patient's relatives are able to pay for the patient's care and treatment wholly or partly, an order shall be made directing the patient or the patient's relatives to pay to the hospital district for the care and support of the patient a specified sum per week in proportion to their financial ability.

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

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

(e)  If there is a dispute as to the ability to pay or doubt in the mind of the administrator or manager, the board of directors shall hear and resolve the dispute and issue its final order after calling witnesses.

(f)  Appeals from a final order of the board of directors must be made to the district court.  The substantial evidence rule shall apply.

Revisor's Note

Section 18(a), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, requires the district to adopt an application procedure for assistance eligibility.  The revised law omits that provision because it duplicates Sections 61.053(a) and (b), Health and Safety Code, which apply to the district and detail the application procedure.  The omitted law reads:

Sec. 18.  (a) Not later than the first day of each operating year, the district shall adopt an application procedure to determine eligibility for assistance, as provided by Section 61.053, Health and Safety Code.

Revised Law

Sec. 1039.117.  AUTHORITY TO SUE AND BE SUED.  The district, through the board, may sue and be sued.  (Acts 66th Leg., R.S., Ch. 424, Sec. 5(b) (part).)

Source Law

(b)  The district, through its board of directors, may sue and be sued and … .

Revised Law

Sec. 1039.118.  ELECTION DATE.  Notwithstanding Section 41.001(a), Election Code, the board may choose the date for an election held under this chapter.  (Acts 66th Leg., R.S., Ch. 424, Sec. 3(e).)

Source Law

(e)  Within the limitations imposed by this Act, the directors or temporary directors of the district may choose the date for any election held under this Act, notwithstanding Section 9b, Texas Election Code (Article 2.01b, Vernon's Texas Election Code).

Revisor's Note

(1)  Section 3(e), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, provides that "[w]ithin the limitations imposed by this Act," the board may choose a date for an election.  The revised law omits the quoted language because under Section 311.021(2), Government Code, it is presumed that all parts of a statute are intended to be effective.  Any applicable limitations apply by their own terms.

(2)  Section 3(e), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, refers to "Section 9b, Texas Election Code (Article 2.01b, Vernon's Texas Election Code)."  In 1985, Section 9b was codified as Section 41.001(a), Election Code, and the revised law is drafted accordingly.

[Sections 1039.119-1039.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1039.151.  BUDGET.  (a)  The district administrator shall prepare an annual budget for approval by the board.

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

(1)  the outstanding obligations of the district;

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

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

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

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

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

(7)  the estimated tax rate required.  (Acts 66th Leg., R.S., Ch. 424, Secs. 6(c), (d).)

Source Law

(c)  The administrator or manager shall prepare an annual budget for approval by the board of directors.

(d)  The budget shall also contain a complete financial statement of the district showing:

(1)  all outstanding obligations of the district;

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

(3)  the funds received from all sources during the previous year;

(4)  the funds available from all sources during the ensuing year;

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

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

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

Revised Law

Sec. 1039.152.  NOTICE; HEARING; ADOPTION OF BUDGET.  (a)  The board shall hold a public hearing on the proposed annual budget.

(b)  Notice of the hearing must be published one time in a newspaper of general circulation in the district at least 10 days before the date of the hearing.

(c)  Any district resident may be present and participate at the hearing.

(d)  At the conclusion of the hearing, the board shall adopt a budget by acting on the budget proposed by the district administrator.  The board may make any changes in the proposed budget that the board judges to be in the interests of the taxpayers and that the law warrants.  (Acts 66th Leg., R.S., Ch. 424, Secs. 6(e), (f) (part).)

Source Law

(e)  A public hearing on the annual budget shall be held by the board of directors after notice of a hearing has been published in a newspaper of general circulation in the district one time at least 10 days before the date set for the hearing.  Any person residing in the district may be present and participate in the hearing.  At the conclusion of the hearing, the budget, as proposed by the administrator or manager, shall be acted on by the board of directors.

(f)  The board of directors may make changes in the budget which in their judgment the law warrants and the interest of the taxpayers demands… . the annual budget and … shall be approved by the board of directors.

Revised Law

Sec. 1039.153.  AMENDMENTS TO BUDGET.  The budget may be amended as required by circumstances.  The board must approve all amendments.  (Acts 66th Leg., R.S., Ch. 424, Sec. 6(f) (part).)

Source Law

(f) … The annual budget may be amended from time to time as circumstances require, but … all amendments to it shall be approved by the board of directors.

Revisor's Note

Section 6(f), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, states that the board may amend the budget "from time to time."  The revised law omits the quoted language because the authority to amend the budget implies the authority to do so at any time.

Revised Law

Sec. 1039.154.  RESTRICTION ON EXPENDITURES.  Money may be spent only for an expense included in the budget or an amendment to the budget.  (Acts 66th Leg., R.S., Ch. 424, Sec. 6(f) (part).)

Source Law

(f)  … No expenditure may be made for any expense not included in the annual budget or an amendment to it… .

Revised Law

Sec. 1039.155.  FISCAL YEAR.  (a)  The district operates according to a fiscal year established by the board.

(b)  The fiscal year may not be changed more than once in a 24-month period.  (Acts 66th Leg., R.S., Ch. 424, Sec. 6(a).)

Source Law

Sec. 6.  (a)  The district shall be operated on the basis of a fiscal year established by the board of directors, provided the fiscal year may not be changed more than once in any 24-month period.

Revised Law

Sec. 1039.156.  ANNUAL AUDIT.  (a)  As soon as practicable after the end of each district fiscal year, the board shall have an audit made of the district's finances that contains a detailed accounting of disbursements.

(b)  The board shall select a qualified independent accounting firm to perform the audit. (Acts 66th Leg., R.S., Ch. 424, Sec. 6(b) (part).)

Source Law

(b)  As soon as practicable after the end of each district fiscal year, the board of directors shall have an annual audit made of the finances of the district … .  The board shall select a qualified independent accounting firm to perform the audit.  The audit must contain a detailed accounting of disbursements.

Revised Law

Sec. 1039.157.  INSPECTION OF ANNUAL AUDIT AND DISTRICT RECORDS.  The annual audit and other district records shall be open to inspection at the district's principal office.  (Acts 66th Leg., R.S., Ch. 424, Sec. 6(b) (part).)

Source Law

(b)  … [the board of directors shall have an annual audit made of the finances of the district] which, together with other records of the district, shall be open to inspection at the principal office of the district… .

Revised Law

Sec. 1039.158.  DEPOSITORY.  (a)  The board shall select one or more banks inside or outside the district to serve as a depository for district money.

(b)  District money, other than money invested as provided by Section 1039.159 and money transmitted to a bank for payment of bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and shall remain on deposit.

(c)  This chapter, including Subsection (b), does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit of a state or national bank that is a member of the Federal Deposit Insurance Corporation.

(d)  The district may not deposit money with a bank in an amount that exceeds the maximum amount insured by the Federal Deposit Insurance Corporation unless the bank first executes a bond or provides other security in an amount sufficient to secure from loss the district money that exceeds the amount insured by the Federal Deposit Insurance Corporation.  (Acts 66th Leg., R.S., Ch. 424, Sec. 12.)

Source Law

Sec. 12.  (a)  The board of directors of the district shall name one or more banks located within or without its boundaries to serve as depository for the funds of the district.  All funds of the district, except those invested as provided in Section 5 of this Act and those transmitted to a bank or banks of payment for bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and shall remain on deposit, provided that nothing in this Act shall limit the power of the board to place a portion of the funds on time deposit or purchase certificates of deposit of a state or national bank that is a member of the Federal Deposit Insurance Corporation.

(b)  Before the district deposits in any bank funds of the district in an amount that exceeds the maximum amount insured by the Federal Deposit Insurance Corporation, the bank shall execute a bond or supply other security in an amount sufficient to secure from loss the district funds that exceed the amount insured by the Federal Deposit Insurance Corporation.

Revised Law

Sec. 1039.159.  SPENDING AND INVESTMENT RESTRICTIONS.  (a)  Except as otherwise provided by Section 1039.107(c) and by Subchapter E, the district may not incur an obligation payable from district revenue other than the revenue on hand or to be on hand in the current and following district fiscal years.

(b)  The board may invest operating, depreciation, or building reserves only in funds or securities specified by Subchapter A, Chapter 2256, Government Code.  (Acts 66th Leg., R.S., Ch. 424, Secs. 5(a) (part), 11(e) (part).)

Source Law

Sec. 5.  (a)  … in no event shall any operating, depreciation, or building reserves be invested in any funds or securities other than those specified in Subchapter A, Chapter 2256, Government Code.

[Sec. 11]

(e)  …  Except as permitted in the preceding sentence and Sections 7, 8, and 9 of this Act, the district may incur no obligation payable from any revenues of the district, tax or otherwise, except those on hand or to be on hand within the current and following fiscal year of the district.

Revisor's Note

Section 11(e), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, states that "[e]xcept as permitted in the preceding sentence and Sections 7, 8, and 9 of this Act," the district may not incur certain obligations.  The "preceding sentence" in Section 11(e) is codified in Section 1039.107(c).  Sections 7, 8, and 9 are codified in Subchapter E.  The revised law is drafted accordingly.

Revised Law

Sec. 1039.160.  TAX EXEMPTION.  All property owned by the district is exempt from taxation by this state or a political subdivision of this state.  (Acts 66th Leg., R.S., Ch. 424, Sec. 22 (part).)

Source Law

Sec. 22.  … all properties owned by the district and … shall at all times be free from taxation by the state or any municipality or political subdivision of the state.

[Sections 1039.161-1039.200 reserved for expansion]

SUBCHAPTER E. BONDS

Revised Law

Sec. 1039.201.  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:

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

(2)  equipping buildings or improvements for hospital and ancillary health care purposes.  (Acts 66th Leg., R.S., Ch. 424, Sec. 7(a) (part).)

Source Law

Sec. 7.  (a)  The board of directors may issue and sell its bonds in the name and on the faith and credit of the hospital district for the purchase, construction, acquisition, repair, and renovation of buildings and improvements, and equipping them for hospital and ancillary health care purposes… .

Revisor's Note

Section 7(a), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, provides that the board may issue and sell bonds in the name and on the faith and credit of the district.  Because the type of bonds described by Section 7 are known as "general obligation bonds," the revised law is drafted accordingly.

Revised Law

Sec. 1039.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  At the time general obligation bonds are issued by the district under Section 1039.201, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature.

(b)  The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed 75 cents on each $100 valuation of all taxable property in the district.  (Acts 66th Leg., R.S., Ch. 424, Sec. 7(a) (part).)

Source Law

(a)  . . .  At the time of the issuance of any bonds by the district, the board shall levy a tax sufficient to create an interest and sinking fund to pay the interest on and principal of the bonds as they mature, providing the tax together with any other taxes levied for the district may not exceed 75 cents on each $100 valuation of all taxable property located in the district subject to hospital district taxation in any one year… .

Revisor's Note

Section 7(a), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, 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. 1039.203.  GENERAL OBLIGATION BOND ELECTION.  (a)  The district may issue bonds payable from taxes only if the bonds are authorized by a majority of the district voters.

(b)  The order calling the election shall provide for clerks as in county elections and must specify:

(1)  the date of the election;

(2)  the location of the polling places;

(3)  the presiding and alternate election judges for each polling place;

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

(5)  the maximum maturity of the bonds.

(c)  Notice of a bond election shall be given by publishing a copy of the election order in a newspaper of general circulation in the district once a week for two consecutive weeks.  The first publication must appear at least 30 days before the date of the election.  (Acts 66th Leg., R.S., Ch. 424, Sec. 7(a) (part).)

Source Law

(a)  …  No bonds payable from taxes may be issued by the hospital district … until authorized by a majority of the electors of the district.  The order for a bond election shall specify the date of the election, the amount of bonds to be authorized, the maximum maturity of the bonds, the place or places where the election will be held, and the presiding judge and alternate judge for each voting place, and shall provide for clerks as in county elections.  Notice of a bond election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in the district once a week for two consecutive weeks, the date of the first publication to appear at least 30 days before the date set for the election, and the bond election shall be conducted in accordance with the Texas Election Code, as amended, except as modified by the provisions of this Act.

Revisor's Note

(1)  Section 7(a), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, refers to "electors."  The revised law substitutes "voters" for "electors" because the former is the term used in the Election Code.

(2)  Section 7(a), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, provides that an election under Section 7(a) "shall be conducted in accordance with the Texas Election Code, as amended, except as modified by the provisions of 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.

Revised Law

Sec. 1039.204.  REVENUE BONDS.  (a)  The board may issue revenue bonds to:

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

(2)  acquire sites to be used for hospital and ancillary health care purposes.

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

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

(d)  The bonds must be issued in the manner and in accordance with the procedures and requirements prescribed by Sections 264.042, 264.043, and 264.046-264.049, Health and Safety Code, for issuance of revenue bonds by a county hospital authority.  (Acts 66th Leg., R.S., Ch. 424, Sec. 8 (part).)

Source Law

Sec. 8.  In addition to the power to issue bonds payable from taxes levied by the district, as contemplated by Section 7 of this Act, the board of directors may issue and … revenue bonds for purchasing, constructing, acquiring, repairing, equipping, or renovating buildings and improvements for hospital and ancillary health care purposes, and for acquiring sites for hospital and ancillary health care purposes, the bonds to be payable from and secured by a pledge of all or part of the revenues of the district to be derived from the operation of its hospital, hospital system, or ancillary health care system, and the bonds may be additionally secured by a mortgage or deed of trust lien on any part or all of its property.  The bonds shall be issued in the manner and in accordance with the procedures and requirements specified for the issuance of revenue bonds by county hospital authorities in Sections 264.042, 264.043, and 264.046-264.049, Health and Safety Code.

Revised Law

Sec. 1039.205.  REFUNDING BONDS.  (a)  The board may, without an election, issue refunding bonds payable from taxes or revenue to refund outstanding indebtedness issued, incurred, or assumed by the district.

(b)  A refunding bond may be:

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

(2)  exchanged wholly or partly for not less than the principal amount of outstanding indebtedness.  (Acts 66th Leg., R.S., Ch. 424, Secs. 7(a) (part), 8 (part), 9 (part).)

Source Law

Sec. 7.  (a)  …  [No bonds payable from taxes may be issued by the hospital district] except refunding bonds [until authorized by a majority of the electors of the district.] …

Sec. 8.  . . . the board of directors may … refund any previously issued revenue bonds … .

Sec. 9.  Without an election the board of directors may issue refunding bonds of the district payable from taxes or revenues for the purpose of refunding any outstanding legal indebtedness the district has issued, incurred, or assumed.  The refunding bonds may be sold and the proceeds applied to the payment of outstanding indebtedness or may be exchanged in whole or in part for not less than the principal amount of the outstanding indebtedness being refunded… .

Revisor's Note

Section 9, Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, provides that refunding bonds shall be issued in accordance with Chapter 1207, Government Code, and other general law applicable to refunding bonds and hospital districts.  The revised law omits the provision because those laws apply to hospital districts by their own terms.  The omitted law reads:

Sec. 9.  . . .  Refunding bonds shall be issued in conformity with Chapter 1207, Government Code, or any other general law of the state authorizing refunding bonds and applicable to hospital districts.

Revised Law

Sec. 1039.206.  MATURITY OF BONDS.  District bonds payable from taxes or revenue must mature not later than 40 years after the date of issuance.  (Acts 66th Leg., R.S., Ch. 424, Sec. 10 (part).)

Source Law

Sec. 10.  Bonds of the district payable from taxes or revenues must:

(1)  mature not later than the 40th anniversary of the date of issuance;

… .

Revised Law

Sec. 1039.207.  EXECUTION OF BONDS.  (a)  The board president shall execute, in the district's name, district bonds payable from taxes or revenue.

(b)  The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code.  (Acts 66th Leg., R.S., Ch. 424, Sec. 10 (part).)

Source Law

Sec. 10.  Bonds of the district payable from taxes or revenues must:

…

(2)  be executed in the name of the hospital district and on the district's behalf by the president of the board of directors, and countersigned by the secretary in the manner provided by Chapter 618, Government Code;

… .

Revisor's Note

(1)  Section 10, Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, provides that bonds issued under Chapter 424 must bear interest at a rate not to exceed that provided by Chapter 1204, Government Code.  Section 1204.006, Government Code, permits a public agency, including a hospital district, to issue public securities at any net effective interest rate of 15 percent or less and applies to the district under Section 1204.001, Government Code.  The revised law omits the reference because it duplicates Section 1204.006, Government Code.  The omitted law reads:

Sec. 10.  [Bonds of the district payable from taxes or revenues must:]

…

(3)  bear interest at a rate not to exceed that prescribed by Chapter 1204, Government Code; and

… .

(2)  Section 10, Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, provides that bonds are subject to the requirements of Chapter 1202, Government Code.  The revised law omits the provision because Chapter 1202, Government Code, applies to bonds issued under this chapter by application of Section 1202.001, Government Code.  The omitted law reads:

Sec. 10.  [Bonds of the district payable from taxes or revenues must:]

…

(4)  be subject to the requirements of Chapter 1202, Government Code.

Revised Law

Sec. 1039.208.  BONDS EXEMPT FROM TAXATION.  The following are exempt from taxation by this state or a political subdivision of this state:

(1)  bonds issued by the district;

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

(3)  profits made in the sale of the bonds.  (Acts 66th Leg., R.S., Ch. 424, Sec. 22 (part).)

Source Law

Sec. 22.  . . . any bonds issued by it and their transfer and issuance by the district, including any profits made in the sale of the bonds, shall at all times be free from taxation by the state or any municipality or political subdivision of the state.

Revisor's Note

Section 22, Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, refers to "any municipality or political subdivision of the state."  The revised law omits "municipality" because that term is included in the meaning of "political subdivision of the state."

Revisor's Note

(End of Subchapter)

(1)  Section 7(b), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, provides that the petition for the election to create the district may include a proposition authorizing the board to issue bonds payable from taxes and specifies the information to be included in that proposition.  The revised law omits that provision as executed.  The omitted law reads:

(b)  A petition for an election to confirm the creation of the hospital district, as provided in Section 3 of this Act, may incorporate a request that a separate proposition be submitted at the election as to whether the board of directors of the district, in the event it is created, may issue bonds payable from taxes.  The petition shall specify the amount of bonds to be issued and include the bond proposition to be submitted at the election.  The temporary board, on its own motion, may submit a proposition on whether bonds payable from taxes may be issued, whether a petition so requests or is presented.

(2)  Section 14, Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, 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 14 has been superseded and impliedly repealed.  Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)).  Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings and loan associations are regulated by Sections 63.002 and 64.001, Finance Code.  As to the remaining entities listed, Section 14 is superseded by Section 1201.041, Government Code, enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes).  Section 1201.041, Government Code, applies to bonds issued under this chapter by application of Section 1201.002, Government Code.  The revised law omits the reference to sinking funds of this state because it has been superseded by Section 404.024, Government Code (enacted in 1985 as Section 2.014, Treasury Act (Article 4393-1, Vernon's Texas Civil Statutes)), which governs the investment of state funds. Section 404.024(b)(10), Government Code, authorizes the investment of state funds in obligations of political subdivisions, including hospital districts. The omitted law reads:

Sec. 14.  All bonds issued and indebtedness assumed by the district shall be and are declared to be legal and authorized investments of banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, trustees, and sinking funds of cities, towns, villages, counties, school districts, or other political subdivisions or corporations of the State of Texas, and … .

(3)  Section 14, Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, 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. 14.  … public funds of the State of Texas, or cities, towns, villages, counties, school districts, or other political subdivisions or corporations of the State of Texas, and shall be lawful and sufficient security for those deposits to the extent of their value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1039.209-1039.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Revised Law

Sec. 1039.251.  IMPOSITION OF AD VALOREM TAX.  (a)  The board shall annually impose a tax on all property in the district subject to district taxation.

(b)  The board shall impose the tax to pay:

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

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

(c)  The district may not impose a tax to pay the principal of or interest on revenue bonds issued under this chapter.  (Acts 66th Leg., R.S., Ch. 424, Secs. 13(a) (part), 16(a) (part).)

Source Law

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

(1)  the indebtedness assumed or issued by the district, but no tax may be levied to pay principal of or interest on revenue bonds issued under the provisions of Section 8 of this Act; and

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

Sec. 16.  (a)  …  Hospital taxes shall be levied on all taxable property within the district subject to hospital district taxation.

Revised Law

Sec. 1039.252.  TAX RATE.  (a)  The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district.

(b)  In setting the tax rate, the board shall consider the income of the district from sources other than taxation.  (Acts 66th Leg., R.S., Ch. 424, Secs. 3(b) (part), 13(a) (part), (b) (part).)

Source Law

[Sec. 3]

(b)  … [hospital district will be created with authority to levy annual taxes] at a rate not to exceed 75 cents on each $100 of valuation on all taxable property located within the hospital district, subject to hospital district taxation, … .

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

(b)  In setting the tax rate the board shall take into consideration the income of the district from sources other than taxation… .

Revisor's Note

Section 13(b), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, requires the board to levy the tax and to certify the tax rate to the tax assessor-collector.  The revised law omits that provision because Section 26.05(a), Tax Code, requires the governing body of a taxing unit to adopt a tax rate for the current tax year and to notify the tax assessor of that rate.  The omitted law reads:

(b)  . . .  On determination of the amount of tax required to be levied, the board shall make the levy and certify it to the tax assessor-collector.

Revised Law

Sec. 1039.253.  TAX ASSESSOR-COLLECTOR.  The board may provide for the appointment of a tax assessor-collector for the district or may contract for the assessment and collection of taxes as provided by the Tax Code.  (Acts 66th Leg., R.S., Ch. 424, Sec. 16(c).)

Source Law

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

Revisor's Note

(End of Subchapter)

(1)  Section 16(a), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, provides that the district may impose taxes for the entire year in which the district is created.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 16.  (a)  The directors may levy taxes for the entire year in which the district is established as a result of the election provided in this Act… .

(2)  Section 16(b), Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, provides that the Tax Code governs the appraisal, assessment, and collection of district taxes.  The revised law omits that provision because Section 1.02, Tax Code, requires all taxing units of government to administer the assessment and collection of an ad valorem tax in conformity with Title 1, Tax Code.  The omitted law reads:

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

Revisor's Note

(End of Chapter)

(1)  Sections 2 and 20, Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, provide for the transfer of certain land, buildings, improvements, equipment, funds, and taxes to the district after the district is created and provide for the assumption of debt by the district on creation.  The revised law omits the provisions as executed.  The omitted law reads:

Sec. 2.  [The district] shall take over and there shall be transferred to it title to all land, buildings, improvements, and equipment pertaining to the hospitals or hospital system owned by Hemphill County or any city or town within the district, and … .  The district shall assume the outstanding indebtedness incurred by Hemphill County or any city or town within the district to provide medical care for residents of the district prior to the creation of the district.

Sec. 20.  . . .  When the district is created, the county and all towns and cities located wholly or partly in the district shall convey and transfer to the district title to all land, buildings, improvements, and equipment in any way pertaining to a hospital or hospital system located wholly within the district that may be jointly or separately owned by the county or any city or town in the district.  Operating funds and reserves for operating expenses that are on hand and funds that have been budgeted to provide medical care for residents of the district by the county or any city or town in the district for the remainder of the fiscal year in which the district is established shall likewise be transferred to the district.  Taxes previously levied for hospital purposes for the current year and all sinking funds established for payment of indebtedness assumed by the district shall also be transferred by the county or a city or town in the district.

(2)  Section 23, Chapter 424, Acts of the 66th Legislature, Regular Session, 1979, provides that public notice of enactment of the statute was provided in a manner that satisfies the requirements of the Texas Constitution.  The revised law omits that section as executed.  The omitted law reads:

Sec. 23.  The legislature finds publication of the notice required in the enactment of this law under the provisions of Article IX, Section 9, of the Texas Constitution, has been made in the manner and form provided by law pertaining to the enactment of local and special laws.