TLC: Special District Local Laws Code Proposed Chapters

80C7(3) DLF

CHAPTER 1018. DALLAM-HARTLEY COUNTIES HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 1018.001. 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 Dallam-Hartley Counties Hospital District. (New.)

Revisor's Note

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

Revised Law

Sec. 1018.002. AUTHORITY FOR OPERATION. The Dallam-Hartley Counties 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. 128, Sec. 1 (part).)

Source Law

Sec. 1. In accordance with the provisions of 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, … . The district shall be known as the Dallam-Hartley Counties Hospital District with the rights, powers, and duties provided in this Act.

Revisor's Note

Section 1, Chapter 128, 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. 1018.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 66th Leg., R.S., Ch. 128, Sec. 19 (part).)

Source Law

Sec. 19. In carrying out the purposes of this Act, a district created under this Act will be performing an essential public function, and … .

Revised Law

Sec. 1018.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Dallam and Hartley Counties, Texas, except that the district does not include land located in another hospital district on the date the Dallam-Hartley Counties Hospital District was created. (Acts 66th Leg., R.S., Ch. 128, Sec. 1 (part).)

Source Law

Sec. 1. … the boundaries of which shall include all of the land in Dallam and Hartley Counties, Texas, that is not, at the time of the district's creation, included in the boundaries of another hospital district… .

Revised Law

Sec. 1018.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. The support or maintenance of the district may not become a charge against or obligation of this state. (Acts 66th Leg., R.S., Ch. 128, Sec. 18 (part).)

Source Law

Sec. 18. The support and maintenance of a hospital district created under this Act shall never become a charge against or obligation of the State of Texas … .

Revised Law

Sec. 1018.006. 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. 128, Sec. 18 (part).)

Source Law

Sec. 18. … 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)-(d), Chapter 128, 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. An election may be ordered by the commissioners courts of Dallam and Hartley counties, provided that the election is to be held at the same time and on the same date in each county. The commissioners courts shall order the election within 10 days after copies of petitions signed by 100 or more qualified electors residing within the boundaries of each county in the proposed district are filed with both commissioners courts. The commissioners courts may choose a date for the election that is not less than 35 nor more than 60 days from the date the election is ordered. Section 9b, Texas Election Code, as amended (Article 2.01b, Vernon's Texas Election Code), does not apply to an election held under this Act. 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. Each commissioners court shall state in its minutes at the time the election order is issued whether any part of Dallam County or Hartley County is included in another hospital district and therefore not to be included in the boundaries of the Dallam-Hartley Counties Hospital District if it is created. Notice of election shall be given by the commissioners courts by publishing a substantial copy of each election order in a newspaper or newspapers of general circulation in the proposed district 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 prohibit the calling and holding of subsequent elections for the same purpose; provided 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 electors of the area of the proposed district the proposition of whether the hospital district shall be created … for the purpose of meeting the requirements of the district's bonds, indebtedness assumed by it, and its maintenance and operating expenses. A majority of the electors 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 ballot used at the election for 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 Dallam-Hartley Counties Hospital District of Dallam and Hartley Counties, Texas; providing for the levy of annual taxes for hospital purposes at a rate not to exceed 75 cents on the $100 valuation of all taxable property within the district."

(d) Within 20 days after the election is held, the commissioners courts shall convene and canvass the returns of the election and, if the election results are favorable to the proposition specified in Subsection (c) of this section, the commissioners courts shall so find and declare the hospital district created.

[Sections 1018.007-1018.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Revised Law

Sec. 1018.051. BOARD; TERM. (a) The board consists of seven directors appointed as follows:

(1) three directors appointed by the Commissioners Court of Dallam County;

(2) three directors appointed by the Commissioners Court of Hartley County; and

(3) one director jointly appointed by the six directors appointed under Subdivisions (1) and (2).

(b) The directors shall make an appointment under Subsection (a)(3) not later than the 20th day after the date the last director is appointed under Subsection (a)(1) or (2).

(d) Directors serve staggered two-year terms. (Acts 66th Leg., R.S., Ch. 128, Sec. 3(e) (part).)

Source Law

(e) Within 10 days after both commissioners courts have declared the election results, each commissioners court shall appoint three persons to serve as directors of the district. Two of the three persons appointed by the commissioners court of Dallam County shall serve for one year and the other appointee shall serve for two years. Two of the three persons appointed by the commissioners court of Hartley County shall serve for two years and the other appointee shall serve for one year. Within 20 days after both commissioners courts have made these appointments, the six directors shall appoint a seventh director to serve for two years. Successors to the initial directors shall serve two-year terms. Successors to the initial board, … shall be appointed in the same manner as the initial directors.

Revisor's Note

Section 3(e), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, prescribes the procedures for appointing the initial board of directors and the terms of the initial directors. The revised law omits those provisions as executed but codifies the establishment of a board consisting of seven directors. Section 3(e) also establishes staggered two-year terms for the directors that expire in the first or second year after the appointment. The revised law codifies the provision specifying staggered terms but omits the provision relating to the specific terms of the initial directors as executed.

Revised Law

Sec. 1018.052. QUALIFICATIONS FOR OFFICE. (a) A person may not be 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;

(2) the attorney for the district; or

(3) a district employee. (Acts 66th Leg., R.S., Ch. 128, Sec. 3(g).)

Source Law

(g) No person shall be appointed as a member of the board unless he or she is a resident of the district and a qualified elector. Neither the administrator, the attorney, nor any employee of the district shall be eligible to serve as a director.

Revisor's Note

Section 3(g), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, provides that a director must be a qualified "elector." Throughout this chapter, the revised law substitutes "voter" for "elector" because the former is the term used in the Election Code.

Revised Law

Sec. 1018.053. BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF OFFICE. (a) Each director shall execute a good and sufficient bond for $5,000 that is:

(1) approved by the commissioners courts of Dallam and Hartley Counties;

(2) payable to the district; and

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

(b) The district may provide for a director's bond with district money.

(c) Each director's bond and constitutional oath or affirmation of office shall be kept in the district's permanent records. (Acts 66th Leg., R.S., Ch. 128, Sec. 3(f).)

Source Law

(f) Each member of the board shall qualify by executing the constitutional oath of office and by executing good and sufficient bond, to be approved by both commissioners courts, for $5,000 payable to the district, conditioned upon the faithful performance of that director's duties as director. The oath and bond shall be kept in the permanent records of the district. The district may provide for directors' bonds with district funds.

Revisor's Note

Section 3(f), Chapter 128, 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. Additionally, the revised law provides for the deposit of the constitutional affirmation as well as the constitutional oath because Section 1, Article XVI, Texas Constitution, permits an officer in this state to take either the oath or the affirmation.

Revised Law

Sec. 1018.054. BOARD VACANCY. A vacancy in the office of director shall be filled for the unexpired term by appointment in the same manner as the office was previously filled under Section 1018.051. (Acts 66th Leg., R.S., Ch. 128, Sec. 3(e) (part).)

Source Law

(e) . . . [Successors to the initial board,] including those filling a vacancy occurring during an unexpired term, shall be appointed in the same manner as the initial directors.

Revised Law

Sec. 1018.055. 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. 128, Sec. 3(h) (part).)

Source Law

(h) The board shall organize by electing one of its number as president and one of its number as vice-president. A secretary, who need not be a director, also shall be elected. Officers shall be elected for a term of one year and a vacancy shall be filled for the unexpired term by the board… .

Revised Law

Sec. 1018.056. 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. 128, Sec. 3(h) (part).)

Source Law

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

Revisor's Note

Section 3(h), Chapter 128, 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. 1018.057. VOTING REQUIREMENT. A concurrence of four directors is sufficient in any matter relating to district business. (Acts 66th Leg., R.S., Ch. 128, Sec. 3(h) (part).)

Source Law

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

Revisor's Note

Section 3(h), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, provides that four directors constitute a quorum. The revised law omits that provision because it duplicates Section 311.013, Government Code (Code Construction Act), which provides that a quorum of a public body is a majority of the number of members fixed by statute. The omitted law reads:

(h) … Any four members of the board shall constitute a quorum, and … .

Revised Law

Sec. 1018.058. DISTRICT ADMINISTRATOR. (a) The board may appoint a qualified person as district administrator.

(b) The district administrator serves at the will of the board and is entitled to the compensation determined by the board.

(c) 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. 128, Sec. 4(a) (part).)

Source Law

(a) … The board may appoint qualified persons as administrator of the hospital district . . . . The administrator … shall serve at the will of the board and shall receive the compensation determined by the board. The administrator shall, on assuming his or her duties, execute a bond payable to the hospital district in an amount to be set by the board, in no event less than $5,000, conditioned that he or she shall perform the duties required of him or her, and containing such other conditions as the board may require… .

Revised Law

Sec. 1018.059. 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. 128, Sec. 4(a) (part).)

Source Law

(a) … The administrator 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 as may be prescribed by the board… .

Revised Law

Sec. 1018.060. ATTORNEY; ASSISTANT DISTRICT ADMINISTRATOR. (a) The board may appoint qualified persons as:

(1) the attorney for the district; and

(2) the assistant district administrator.

(b) The attorney for the district and the assistant district administrator serve at the will of the board and are entitled to the compensation determined by the board. (Acts 66th Leg., R.S., Ch. 128, Sec. 4(a) (part).)

Source Law

(a) … The board may appoint qualified persons as … attorney for the district, and assistant to the administrator. … the attorney, and the assistant administrator, if any, shall serve at the will of the board and shall receive the compensation determined by the board… .

Revised Law

Sec. 1018.061. 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 district and may make temporary appointments as necessary.

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

(c) The board may delegate to the district administrator the authority to hire district employees, including technicians and nurses. (Acts 66th Leg., R.S., Ch. 128, Secs. 4(a) (part), 14.)

Source Law

(a) … The board may appoint to the staff doctors it may deem necessary for the efficient operation of the district, and may provide for temporary appointments to the staff if warranted by circumstances. The board may delegate to the administrator the authority to employ technicians, nurses, and employees of the district … .

Sec. 14. The district may employ fiscal agents, accountants, architects, and additional attorneys as the board may consider proper.

Revised Law

Sec. 1018.062. RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES. The board may spend district money, enter into agreements, and take other necessary action to recruit physicians and other persons for appointment to the district's medical staff or for employment with the district, including:

(1) advertising and marketing;

(2) paying travel, recruiting, and relocation expenses;

(3) providing a loan or scholarship to a physician or other person who:

(A) is currently enrolled in health care education courses at an institution of higher education; and

(B) contractually agrees to become a district employee; and

(4) providing on a rent-free basis or subsidizing the cost of office space or other facilities for a health care professional, including a physician. (Acts 66th Leg., R.S., Ch. 128, Sec. 4B(a).)

Source Law

Sec. 4B. (a) The board may spend district funds, enter into agreements, and take other necessary actions to recruit physicians and other persons for appointment to the district's medical staff or for employment with the district, including:

(1) advertising and marketing;

(2) paying travel, recruiting, and relocation expenses;

(3) providing a loan or scholarship if the physician or other person is currently enrolled in health care education courses at an institution of higher education and contractually agrees to become a district employee; and

(4) providing on a rent free basis or subsidizing the cost of office space or other facilities for a health care professional, including a physician.

Revised Law

Sec. 1018.063. HEALTH CARE EDUCATIONAL PROGRAMS. The board may spend district money, enter into agreements, or take other necessary action to conduct, participate in, or assist in providing health care educational programs for current or prospective staff members or employees. (Acts 66th Leg., R.S., Ch. 128, Sec. 4B(b).)

Source Law

(b) The board may spend district funds, enter into agreements, and take other necessary actions to conduct, participate in, or otherwise assist in the provision of health care educational programs for current or prospective staff members or employees.

Revised Law

Sec. 1018.064. LIABILITY INSURANCE; INDEMNIFICATION. (a) For an officer, director, board appointee, member of the medical staff, or district employee, the board may:

(1) purchase and maintain liability insurance to protect the person from any liability that arises from performing a duty for the district or at a district facility; and

(2) enter into and perform an agreement to defend or indemnify the person with regard to a claim, cost, expense, or liability resulting from duties performed for the district or at a district facility.

(b) The board may establish a self-insurance program to fund an indemnity obligation. (Acts 66th Leg., R.S., Ch. 128, Secs. 4(b), (c).)

Source Law

(b) The board may purchase and maintain liability insurance for an officer, director, board appointee, member of the medical staff, or district employee to protect the person from any liability that arises from performing duties for the district or at a district facility.

(c) The board may enter into and perform an agreement to defend or indemnify an officer, director, board appointee, member of the medical staff, or district employee in relation to a claim, cost, expense, or liability incurred as a result of performing duties for the district or at a district facility. The board may establish a self-insurance program to fund an indemnity obligation.

[Sections 1018.065-1018.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Revised Law

Sec. 1018.101. DISTRICT RESPONSIBILITY. The district has full responsibility for:

(1) operating all hospital facilities; and

(2) providing medical and hospital care for the district's needy inhabitants. (Acts 66th Leg., R.S., Ch. 128, Sec. 17 (part).)

Source Law

Sec. 17. … The hospital district shall assume full responsibility for the operation of all hospital facilities and for the furnishing of medical and hospital care for its needy inhabitants… .

Revisor's Note

Section 17, Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, provides that the district "shall assume" full responsibility for operating hospital facilities and 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. 1018.102. 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. 128, Sec. 17 (part).)

Source Law

Sec. 17. 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 17, Chapter 128, 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 17, Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, refers to a "county, municipality, or political subdivision." The revised law omits the references to "county" and "municipality" because "county" and "municipality" are included in the meaning of "political subdivision."

Revised Law

Sec. 1018.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the hospital system and the district's money and resources. (Acts 66th Leg., R.S., Ch. 128, Sec. 4(a) (part).)

Source Law

Sec. 4. (a) The board shall manage, control, and administer the hospital system and all funds and resources of the district, but … .

Revised Law

Sec. 1018.104. HOSPITAL SYSTEM. (a) The district may:

(1) provide for the establishment of a hospital system by:

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

(B) equipping the buildings; and

(2) provide hospital services by lease or contract.

(b) The hospital system may include any facilities the board considers necessary for hospital care. (Acts 66th Leg., R.S., Ch. 128, Secs. 2 (part), 8(a) (part).)

Source Law

Sec. 2. . . . The district may 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, or may provide hospital services by lease or contract… .

[Sec. 8]

(a) . . . The hospital system may include facilities deemed necessary for hospital care by the board… .

Revised Law

Sec. 1018.105. RULES. The board may adopt rules governing the operation of the hospital, the hospital system, and the district's staff and employees. (Acts 66th Leg., R.S., Ch. 128, Sec. 4(a) (part).)

Source Law

(a) . . . The district, through its board, . . . may promulgate rules governing the operation of the hospital, hospital system, its staff, and its employees… .

Revisor's Note

Section 4(a), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, provides that the board may "promulgate rules" to govern the district. The revised law substitutes "adopt" for "promulgate" because the terms are synonymous and the former is more commonly used.

Revised Law

Sec. 1018.106. PURCHASING AND ACCOUNTING PROCEDURES. The board may prescribe:

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

(2) all accounting and control procedures. (Acts 66th Leg., R.S., Ch. 128, Sec. 8(b) (part).)

Source Law

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

Revised Law

Sec. 1018.107. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system.

(b) The board may lease all or part of the district's facilities on terms considered to be in the best interest of the district's inhabitants.

(1) acquire by lease, purchase, lease to purchase, or option to purchase property, including facilities, supplies, or equipment, for the district; and

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

(d) The district may sell, lease, or otherwise dispose of any of the district's property, including equipment, on terms the board finds are in the best interest of the district's inhabitants. (Acts 66th Leg., R.S., Ch. 128, Secs. 8(a) (part), (b) (part).)

Source Law

Sec. 8. (a) The board is given complete discretion as to the type, number, and location of buildings required to establish and maintain an adequate hospital system. … The district, through the board, … may lease all or part of its facilities on terms and conditions considered to be to the best interest of its inhabitants. The district may sell, lease, or otherwise dispose of any real or personal property or equipment of any nature, on terms and conditions found by the board to be in the best interest of its inhabitants… .

(b) … The board may acquire by lease, purchase, option to purchase, or lease to purchase property, facilities, supplies, or equipment. The board may mortgage or pledge the property, facilities, supplies, or equipment and may pledge the revenues from the property, facilities, supplies, or equipment as security for the payment of the purchase price… .

Revisor's Note

(1) Section 8(a), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, requires the board to determine the buildings required to "establish and maintain" an adequate hospital system. The revised law omits the reference to establishing the hospital system as executed.

(2) Section 8(a), Chapter 128, 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."

(3) Section 8(a), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, refers to "any real or personal property or equipment." The revised law omits the reference to "real or personal" property because under Section 311.005, Government Code (Code Construction Act), "property" means "real and personal property."

Revised Law

Sec. 1018.108. ASSISTED LIVING FACILITY. The board may construct and maintain an assisted living facility and a related facility that is necessary to operate and maintain an assisted living facility. (Acts 66th Leg., R.S., Ch. 128, Sec. 8(a) (part).)

Source Law

(a) … The board may construct and maintain an assisted living facility and a related facility that is necessary to operate and maintain an assisted living facility… .

Revised Law

Sec. 1018.109. 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 power, right, 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.

(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. 128, Sec. 12(a).)

Source Law

Sec. 12. (a) The district shall have the right and power of eminent domain for the purpose of acquiring by condemnation any and all property of any kind and character in fee simple, or any lesser interest 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 shall 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 shall 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 12(a), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, provides that the district has the "right and power of eminent domain for the purpose of acquiring [property] by condemnation." The revised law substitutes for the quoted language "may exercise the power of eminent domain to acquire [property]" because the phrases have the same meaning, and the latter phrase is consistent with modern usage in laws relating to eminent domain.

(2) Section 12(a), Chapter 128, 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.

(3) Section 12(a), Chapter 128, 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 that statute unless expressly provided otherwise.

Revised Law

Sec. 1018.110. 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 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. 128, Sec. 12(b).)

Source Law

(b) If the board requires the relocating, 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 relocating, 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 relocating, 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. 1018.111. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are consistent with the proper management and objectives of the district. (Acts 66th Leg., R.S., Ch. 128, Sec. 16.)

Source Law

Sec. 16. The board may accept on behalf of the district donations, gifts, and endowments to be held in trust for such purposes and under such directions, limitations, and provisions as may be prescribed in writing by the donor consistent with proper management and object of the hospital district.

Revisor's Note

Section 16, Chapter 128, 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. 1018.112. CONSTRUCTION CONTRACTS. A construction contract that involves the expenditure of the amount specified by Section 271.024, Local Government Code, may be made only after advertising in the manner provided by Subchapter B, Chapter 271, Local Government Code. (Acts 66th Leg., R.S., Ch. 128, Sec. 8(b) (part).)

Source Law

(b) . . . Contracts for construction involving the expenditure of the amount specified by Section 271.024, Local Government Code, may be made only after advertising in the manner provided by Subchapter B, Chapter 271, Local Government Code. …

Revisor's Note

Section 8(b), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, provides that Chapter 2253, Government Code, applies to the district's construction contracts in relation to performance and payment bonds. The revised law omits the provision because Chapter 2253 applies to hospital districts on its own terms. The omitted law reads:

(b) … The provisions of Chapter 2253, Government Code, relating to performance and payment bonds apply to construction contracts let by the district… .

Revised Law

Sec. 1018.113. OPERATING AND MANAGEMENT CONTRACTS. The board may enter into an operating or management contract relating to a district facility. (Acts 66th Leg., R.S., Ch. 128, Sec. 8(a) (part).)

Source Law

(a) … The district, through the board, is further authorized to enter into an operating or management contract with regard to all or part of its facilities, or … .

Revised Law

Sec. 1018.114. CONTRACTS FOR MEDICAL AND HOSPITAL CARE. The district may contract with public or private institutions and physicians to provide medical and hospital care for the district's indigent and needy residents. (Acts 66th Leg., R.S., Ch. 128, Sec. 8(a) (part).)

Source Law

(a) … [The district] … It may contract with public or private institutions and physicians to provide medical and hospital care for its indigent and needy.

Revised Law

Sec. 1018.115. CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT. (a) The board may contract with a county or municipality located outside the district's boundaries to reimburse the district for the care and treatment of a sick or injured person of that county or municipality.

(b) The district may contract with this state or a federal agency for reimbursement for the treatment of a sick or injured person. (Acts 66th Leg., R.S., Ch. 128, Sec. 4(a) (part).)

Source Law

(a) . . . The board … may contract with any county or incorporated municipality located outside its boundaries for reimbursement for the care and treatment of the sick, diseased, or injured persons of that county or municipality. The district may also contract with the state or agencies of the federal or state government for the reimbursement for the treatment of sick, diseased, or injured persons.

Revisor's Note

(1) Section 4(a), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, refers to an "incorporated" municipality. The revised law omits the reference to "incorporated" because under the Local Government Code all municipalities must be incorporated.

(2) Section 4(a), Chapter 128, 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. 1018.116. 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 facilities for the medical care, hospital, or welfare needs of district inhabitants. (Acts 66th Leg., R.S., Ch. 128, Sec. 4(a) (part).)

Source Law

(a) . . . The board may contract with other political subdivisions or governmental agencies whereby the district will provide investigatory or other services as to facilities for the medical care, hospital, or welfare needs of the inhabitants of the district, and … .

Revised Law

Sec. 1018.117. JOINT ADMINISTRATION OR DELIVERY OF HEALTH CARE SERVICES. (a) To provide joint administration or delivery of health care services, the district may contract with, affiliate with, have an ownership interest in, or enter into another arrangement with:

(1) a managed care system;

(2) a preferred provider organization;

(3) a health maintenance organization;

(4) a medical services organization;

(5) another provider of alternative health care or delivery system; or

(6) a private hospital.

(b) The district may spend district money to establish, maintain, and have an ownership interest in a partnership, corporation, or other entity involved in the delivery of health care services. (Acts 66th Leg., R.S., Ch. 128, Sec. 4(d).)

Source Law

(d) The district may contract with, affiliate with, have an ownership interest in, or enter into another arrangement with a managed care system, a preferred provider organization, a health maintenance organization, a medical services organization, another provider of alternative health care or delivery system, or a private hospital to jointly administer or deliver health care services. The district may spend district funds to establish, maintain, and have an ownership interest in partnerships, corporations, or other entities involved in the delivery of health care services.

Revised Law

Sec. 1018.118. 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. 128, Sec. 15.)

Source Law

Sec. 15. Whenever a patient residing within the district is admitted to the facilities of the district, the administrator may have an inquiry made as to his or her circumstances and those of the relatives of the patient legally liable for his or her support. If the administrator finds that the patient or his or her relatives are able to pay for his or her care and treatment in whole or in part, an order shall be made directing the patient or his or her 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. The administrator may collect these sums from the estate of the patient or his or her relatives legally liable for support in the manner provided by law for collection of expenses in the last illness of a deceased person. If the administrator finds that the patient or his or her relatives are not able to pay either in whole or in part for care and treatment in the hospital, they shall become a charge on the hospital district as to the amount of the inability to pay. Should there be a dispute as to the ability to pay or doubt in the mind of the administrator, the board shall hear and resolve the dispute and issue its final order after calling witnesses. Appeals from a final order of the board shall lie to the district court. The substantial evidence rule shall apply.

Revised Law

Sec. 1018.119. NONPROFIT CORPORATION. (a) The district may create, sponsor, and have a membership interest in a nonprofit corporation under the Business Organizations Code and may contribute money to or solicit money for the corporation.

(a-1) On or before December 31, 2009, the district may create, sponsor, and have a membership interest in a nonprofit corporation under the Texas Non-Profit Corporation Act (Article 1396-1.01, et seq., Vernon's Texas Civil Statutes) or the Business Organizations Code, as applicable, and may contribute money to or solicit money for the corporation.

(b) The corporation created may use money, other than money the corporation pays to the district, only to provide health care or other services the district is authorized to provide under this chapter.

(c) The corporation may invest the corporation's money in any manner in which the district may invest the district's money, including investing money as authorized by Chapter 2256, Government Code.

(d) The board shall establish controls to ensure that the corporation uses its money as required by this section.

(e) This subsection and Subsection (a-1) expire December 31, 2009. (Acts 66th Leg., R.S., Ch. 128, Sec. 4(e).)

Source Law

(e) The district may sponsor, create, and have a membership interest in a nonstock corporation under the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) and may contribute funds to or solicit funds for the corporation. The corporation may use funds, other than funds paid by the corporation to the district, only to provide health care or other services the district may provide under this Act. The board of directors of the hospital district shall establish adequate controls to ensure that the corporation uses its funds as required by this subsection. The corporation may invest corporation funds in any manner in which the district may invest funds, including investing funds as authorized by Chapter 2256, Government Code.

Revisor's Note

Section 4(e), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, refers to a "nonstock corporation" under the Texas Non-Profit Corporation Act. The only type of nonstock corporation that may be formed under that act is a nonprofit corporation, and the revised law is drafted accordingly. In addition, the Texas Non-Profit Corporation Act was codified in various chapters of the Business Organizations Code by Chapter 182, Acts of the 78th Legislature, Regular Session, 2003. The Business Organizations Code took effect January 1, 2006, and applies only to domestic business entities formed on or after that date, to domestic business entities formed before that date that elect to have that code govern their operations, and to certain foreign business entities. On January 1, 2010, the Texas Non-Profit Corporation Act expires, and the Business Organizations Code will apply to all business entities without regard to date of formation or whether an entity is a foreign or domestic business entity. The revised law is drafted to reflect the applicability of these statutes in accordance with their effective dates or on election by a business entity.

Revised Law

Sec. 1018.120. AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued. (Acts 66th Leg., R.S., Ch. 128, Sec. 4(a) (part).)

Source Law

(a) . . . The district, through its board, may sue and be sued and … .

[Sections 1018.121-1018.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1018.151. BUDGET. (a) The district administrator shall prepare an annual budget for approval by the board.

(b) The proposed 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. 128, Sec. 5 (part).)

Source Law

Sec. 5. . . . The administrator shall prepare an annual budget for approval by the board. The budget shall also contain a complete financial statement of the district showing all outstanding obligations of the district, the cash on hand to the credit of each fund of the district, the funds received from all sources during the previous year, the funds available from all sources during the ensuing year, the balances expected at year-end of the year in which the budget is being prepared and estimated revenues and balances available to cover the proposed budget, and the estimated tax rate that will be required… .

Revised Law

Sec. 1018.152. 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 with general circulation in the district at least 10 days before the date of 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. 128, Sec. 5 (part).)

Source Law

Sec. 5. . . . A public hearing on the annual budget shall be held by the board after notice of a hearing has been published in a newspaper with general circulation in the district one time at least 10 days before the date set for the hearing. Any person residing in the district is entitled to be present and participate in the hearing. At the conclusion of the hearing, the budget, as proposed by the administrator, shall be acted on by the board. The board shall have authority to make changes in the budget that in its judgment the law warrants and the interest of the taxpayers demands. … the annual budget and … shall be approved by the board… .

Revised Law

Sec. 1018.153. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. (Acts 66th Leg., R.S., Ch. 128, Sec. 5 (part).)

Source Law

Sec. 5. . . . The annual budget may be amended from time to time as the circumstances may require, but . . . all amendments to it shall be approved by the board… .

Revisor's Note

Section 5, Chapter 128, 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. 1018.154. 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. 128, Sec. 5 (part).)

Source Law

Sec. 5. . . . No expenditure may be made for any expense not included in the annual budget or an amendment to it… .

Revised Law

Sec. 1018.155. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

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

(2) more than once in a 24-month period. (Acts 66th Leg., R.S., Ch. 128, Sec. 5 (part).)

Source Law

Sec. 5. The district shall be operated on the basis of a fiscal year established by the board, provided the fiscal year may not be changed during the time revenue bonds of the district are outstanding or more than once in any 24-month period… .

Revised Law

Sec. 1018.156. ANNUAL AUDIT. The board annually shall have an audit made of the district's financial condition. (Acts 66th Leg., R.S., Ch. 128, Sec. 5 (part).)

Source Law

Sec. 5. . . . The board shall have an annual audit made of the financial condition of the district, … .

Revised Law

Sec. 1018.157. 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. 128, Sec. 5 (part).)

Source Law

Sec. 5. . . . [The board shall have an annual audit made of the financial condition 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. 1018.158. FINANCIAL REPORT. As soon as practicable after the close of each fiscal year, the district administrator shall prepare for the board:

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

(2) a complete account of the disbursements of that money. (Acts 66th Leg., R.S., Ch. 128, Sec. 5 (part).)

Source Law

Sec. 5. . . . As soon as practicable after the close of each fiscal year, the administrator shall prepare for the board a full sworn statement of all money belonging to the district and a full account of the disbursements of same.

Revised Law

Sec. 1018.159. 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 1018.160(b) 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.

(d) The district may not deposit money with a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation unless the bank first executes a bond or other security in an amount sufficient to secure from loss the district money that exceeds the amount secured by the Federal Deposit Insurance Corporation. (Acts 66th Leg., R.S., Ch. 128, Sec. 9.)

Source Law

Sec. 9. (a) The board shall name one or more banks 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 4 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.

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

Revised Law

Sec. 1018.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as otherwise provided by Sections 1018.107(c) and 1018.161 and 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 Chapter 2256, Government Code. (Acts 66th Leg., R.S., Ch. 128, Secs. 4(a) (part), 8(b) (part).)

Source Law

Sec. 4. (a) … in no event shall any operating, depreciation, or building reserves be invested in any funds or securities other than those specified in Article 836 or 837, Revised Civil Statutes of Texas, 1925, as amended. …

[Sec. 8]

(b) … Except as permitted in this subsection and Sections 4A, 6, and 7 of this Act, the district may incur no obligation payable from revenues of the district, tax or otherwise, except those on hand or to be on hand within the then current and following fiscal years of the district.

Revisor's Note

(1) Section 4(a), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, refers to "Article 836 or 837, Revised Civil Statutes of Texas, 1925, as amended." Those articles were impliedly repealed by the enactment of the Public Funds Investment Act of 1987 (Article 842a-2, Vernon's Texas Civil Statutes), which was revised in 1993 as Chapter 2256, Government Code. Chapter 2256 defines "local government" to include hospital districts and applies to the district by its own terms. The revised law therefore substitutes a reference to Chapter 2256, Government Code, for the references to Articles 836 and 837.

(2) Section 8(b), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, states that "[e]xcept as permitted in this subsection and Sections 4A, 6, and 7 of this Act," the district may not incur certain obligations. These provisions are codified in Sections 1018.107(c) and 1018.161 and in Subchapter E. The revised law is drafted accordingly.

Revised Law

Sec. 1018.161. AUTHORITY TO BORROW MONEY; SECURITY. (a) The board may borrow money for district operating expenses in an amount not to exceed the amount of tax or other revenue the district expects to receive during the fiscal year in which the money is borrowed.

(b) To repay the debt, the district may pledge all or part of the tax or other revenue received during the fiscal year in which the board borrows money under this section. (Acts 66th Leg., R.S., Ch. 128, Sec. 4A.)

Source Law

Sec. 4A. The board may borrow money to pay the district's operating expenses in an amount not to exceed the amount of tax or other revenue the district expects to receive during the fiscal year in which the money is borrowed. The district may pledge all or part of the tax or other revenue received during that fiscal year to repay the indebtedness.

[Sections 1018.162-1018.200 reserved for expansion]

SUBCHAPTER E. BONDS

Revised Law

Sec. 1018.201. GENERAL OBLIGATION BONDS. The board may issue and sell general obligations 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 or improvements; and

(2) equipping buildings or improvements for hospital purposes. (Acts 66th Leg., R.S., Ch. 128, Sec. 6(a) (part).)

Source Law

Sec. 6. (a) The board may issue and sell its bonds in the name and on the faith and credit of the hospital district for any purpose related to the purchase, construction, acquisition, repair, and renovation of buildings and improvements, and equipping the same for hospital purposes… .

Revisor's Note

Section 6(a), Chapter 128, 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 6(a) are known as "general obligation bonds," the revised law is drafted accordingly.

Revised Law

Sec. 1018.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1018.201, 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. 128, Sec. 6(a) (part).)

Source Law

(a) … At the time of the issuance of any bonds by the district, a tax shall be levied by the board sufficient to create an interest and sinking fund to pay the interest on and principal of the bonds as they mature, providing that the tax together with any other taxes levied for the district shall 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 6(a), Chapter 128, 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. 1018.203. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters.

(b) The board, in ordering the election, shall provide for clerks as in county elections and 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.

(d) Chapter 41, Election Code, does not apply to an election held under this section.

(e) The board shall declare the results of the election. (Acts 66th Leg., R.S., Ch. 128, Sec. 6(a) (part).)

Source Law

(a) … No bonds may be issued by the hospital district … until authorized by a majority of the qualified electors of the district. The board, in ordering 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. Section 9b, Texas Election Code, as amended (Article 2.01b, Vernon's Texas Election Code), does not apply to a bond election. Notice of any bond election shall be given as provided in Article 704, Revised Civil Statutes of Texas, 1925, as amended, and the election shall be conducted in accordance with the Texas Election Code, as amended, except as modified by the provisions of this Act. The board shall canvass the returns and declare the results.

Revisor's Note

(1) Section 6(a), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, refers to Article 704, Revised Statutes, which specifies certain notice requirements for a bond election. That provision was codified in 1999 as Section 1251.003, Government Code. The revised law is drafted accordingly.

(2) Section 6(a), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, refers to "Section 9b, Texas Election Code, as amended (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.

(3) Section 6(a), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, provides that an election under Section 6 "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.

(4) Section 6(a), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, provides that "[t]he board shall canvass the returns" of a bond election. The revised law omits this requirement because it duplicates Section 67.002, Election Code, which requires the governing body of a political subdivision that orders an election to canvass the returns.

Revised Law

Sec. 1018.204. MATURITY OF GENERAL OBLIGATION BONDS. District general obligation bonds must mature not later than 40 years after the date of issuance. (Acts 66th Leg., R.S., Ch. 128, Sec. 6(c) (part).)

Source Law

Revised Law

Sec. 1018.205. EXECUTION OF GENERAL OBLIGATION BONDS. (a) The board president shall execute the general obligation bonds in the district's name.

(b) The board secretary shall countersign the bonds in the manner provided by Chapter 618, Government Code. (Acts 66th Leg., R.S., Ch. 128, Sec. 6(c) (part).)

Source Law

(c) [Bonds of the district] . . . shall be executed in the name of the hospital district and in its behalf by the president of the board, shall be countersigned by the secretary in the manner provided by Chapter 204, Acts of the 57th Legislature, Regular Session, 1961, as amended (Article 717j-1, Vernon's Texas Civil Statutes), … .

Revisor's Note

(1) Section 6(c), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, refers to Chapter 204, Acts of the 57th Legislature, Regular Session, 1961, as amended (Article 717j-1, Vernon's Texas Civil Statutes). That statute was codified in 1999 as Chapter 618, Government Code, and the revised law is drafted accordingly.

(2) Section 6(c), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, provides that district general obligation bonds must bear interest at a rate not to exceed that provided by Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes). The revised law omits the provision because the maximum interest rate noted in Chapter 3 was revised in 1999 as Section 1204.006, Government Code, and Section 1204.006 applies to hospital districts by application of Section 1204.001, Government Code. The omitted law reads:

(c) … shall bear interest at a rate not to exceed that prescribed by Chapter 3, Acts of the 61st Legislature, Regular Session, 1969, as amended (Article 717k-2, Vernon's Texas Civil Statues), and …

(3) Section 6(c), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, provides that the general obligation bonds are subject to the law governing counties that relates to bond approval by the attorney general and registration of the bonds by the comptroller. Section 6(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 district bonds by application of Section 1202.001, Government Code. The omitted law reads:

(c) . . . shall be subject to the same requirements in the manner of approval by the attorney general and registration by the comptroller of public accounts as are by law provided for approval and registration of bonds issued by counties. On the approval of the bonds by the attorney general and registration by the comptroller, the bonds shall be incontestable for any cause.

Revised Law

Sec. 1018.206. REVENUE BONDS. (a) The board may issue revenue bonds to:

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

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

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

(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. 128, Sec. 7 (part).)

Source Law

Sec. 7. In addition to the power to issue bonds payable from taxes levied by the district as contemplated by Section 6 of this Act, the board may issue revenue bonds for purchasing, constructing, acquiring, repairing, equipping, or renovating buildings and improvements for hospital purposes, and for acquiring sites for hospital purposes. … The bonds shall be payable from and secured by a pledge of all or any part of the revenues of the district to be derived from the operation of its hospital or hospitals, 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 8, 10, 11, 12, and 13 of Chapter 122, Acts of the 58th Legislature, 1963, as amended (Article 4494r, Vernon's Texas Civil Statutes).

Revisor's Note

Section 7, Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, refers to Sections 8, 10, 11, 12, and 13, County Hospital Authority Act (Article 4494r, Vernon's Texas Civil Statutes). Those provisions were codified in 1989 as Sections 264.042, 264.043, and 264.046-264.049, Health and Safety Code. The revised law is drafted accordingly.

Revised Law

Sec. 1018.207. REFUNDING BONDS. (a) The board may, without an election, issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bond applied to the payment of the outstanding indebtedness; or

(2) exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness. (Acts 66th Leg., R.S., Ch. 128, Secs. 6(a) (part), (b) (part), 7 (part).)

Source Law

Sec. 6. (a) … [No bonds may be issued by the hospital district] except refunding bonds [until authorized by a majority of the qualified electors of the district.] …

(b) Refunding bonds of the district may be issued for the purpose of refunding and paying off any outstanding indebtedness it has issued 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 a similar principal amount of outstanding indebtedness… .

Sec. 7. . . . It may also issue bonds to refund any previously issued revenue bonds for the same purpose . …

Revisor's Note

Section 6(b), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, provides that refunding bonds sold to pay outstanding indebtedness "shall be issued and payments made in the manner specified by Chapter 503, Acts of the 54th Legislature, 1955, as amended (Article 717k, Vernon's Texas Civil Statutes)." In addition, the section provides that refunding bonds shall be issued "in conformity with Chapter 784, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil Statutes)." Articles 717k and 717k-3 were codified in 1999 as Chapter 1207, Government Code. The revised law omits the provisions because Chapter 1207, Government Code, applies to the district by its own terms under Section 1207.001, Government Code. The omitted law reads:

(b) … If the refunding bonds are to be sold and the proceeds applied to the payment of any outstanding indebtedness, the refunding bonds shall be issued and payments made in the manner specified by Chapter 503, Acts of the 54th Legislature, 1955, as amended (Article 717k, Vernon's Texas Civil Statutes). Refunding bonds shall be issued in conformity with Chapter 784, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil Statutes).

Revised Law

Sec. 1018.208. 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; and

(3) profits made in the sale of the bonds. (Acts 66th Leg., R.S., Ch. 128, Sec. 19 (part).)

Source Law

Sec. 19. . . . 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 19, Chapter 128, 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 11, Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, provides that district bonds are authorized investments for certain entities. The revised law omits the provision as unnecessary. As to several of the entities listed, Section 11 has been superseded and impliedly repealed. Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)). Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)). Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)). Investments in securities by savings and loan associations are regulated by Sections 63.002 and 64.001, Finance Code. As to the remaining entities listed, Section 11 is superseded by Section 1201.041, Government Code, enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes). Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code. The revised law omits the reference to sinking funds of this state because it has been superseded by Section 404.024, Government Code (enacted in 1985 as Section 2.014, Treasury Act (Article 4393-1, Vernon's Texas Civil Statutes)), which governs the investment of state funds. Section 404.024(b)(10), Government Code, authorizes the investment of state funds in obligations of political subdivisions, including hospital districts. The omitted law reads:

Sec. 11. All bonds issued and indebtedness assumed by the district shall be and are hereby declared to be legal and authorized investments of banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, trustees, and sinking funds of cities, towns, villages, counties, school districts, or other political subdivisions or corporations of the State of Texas, and 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 … .

(2) Section 11, Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, effectively provides that district bonds may secure certain deposits. Although Section 11 does not specifically mention the deposits the bonds are eligible to secure, the only deposits the bonds could secure are deposits of public funds of this state or political subdivisions of this state. Therefore, the revised law omits the provision as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions. The omitted law reads:

Sec. 11. … shall be lawful and sufficient security for those deposits to the extent of their value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1018.209-1018.250 reserved for expansion]

SUBCHAPTER F. TAXES

Revised Law

Sec. 1018.251. IMPOSITION OF AD VALOREM TAX. (a) The board may impose a tax on all property in the district subject to district taxation.

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

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

(2) the construction, maintenance, equipment, 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. 128, Secs. 10(a) (part), 13(a) (part).)

Source Law

Sec. 10. (a) The board may 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 7 of this Act; and

(2) the construction, maintenance, equipment, and operating expenses of the district.

Sec. 13. (a) . . . Hospital tax shall be levied on all taxable property within the district subject to hospital district taxation.

Revised Law

Sec. 1018.252. TAX RATE. (a) The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of all taxable property in the district.

(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. 128, Secs. 3(b) (part), 10(a) (part), (b) (part).)

Source Law

[Sec. 3]

(b) [At the election, there shall be submitted to the electors of the area of the proposed district the proposition of whether the hospital district shall 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, [for the purpose of meeting the requirements of the district's bonds, indebtedness assumed by it, and its maintenance and operating expenses.] …

Sec. 10. (a) [The board may 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 10(b), Chapter 128, 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 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. 1018.253. ASSESSMENT AND COLLECTION BY COUNTY TAX ASSESSOR-COLLECTOR. (a) This section applies unless the board elects to have taxes assessed and collected under Section 1018.254.

(b) The tax assessors-collectors of Dallam and Hartley Counties shall assess and collect taxes imposed by the district in their respective counties. (Acts 66th Leg., R.S., Ch. 128, Secs. 13(a) (part), (b) (part).)

Source Law

(a) … unless the board, by majority vote, elects to have taxes assessed and collected by its own tax assessor-collector under Subsection (c) of this section… .

(b) Under this subsection, … . The tax assessors-collectors of the counties in which the district is located shall be charged and required to accomplish the assessment and collection of all taxes levied by and on behalf of the district in their respective counties… .

Revisor's Note

(1) Sections 13(a) and (b), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, 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. 13. (a) All taxes of the district shall be assessed and collected on county tax values as provided in Subsection (b) of this section … .

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

(2) Section 13(b), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, refers to the tax assessors-collectors "of the counties in which the district is located." The revised law substitutes "Dallam and Hartley Counties" for the quoted language because those are the counties in which the district is located.

(3) Section 13(b), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, 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 assessors-collectors of taxes shall charge and deduct from payments to the hospital district an amount as fees for assessing and collecting the taxes at a rate of one percent of the taxes assessed and one percent of the taxes collected in their respective counties. These fees shall be deposited in the funds of the respective counties in the same manner as other fees of the office of assessor-collector and reported as fees of office of the county tax assessors-collectors… .

(4) Section 13(b), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, 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 hospital district shall be the same as in the case of county taxes. Discounts shall be the same as allowed by either county as determined by the board… .

(5) Section 13(b), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, 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) … The residue of tax collections after deductions of discounts and fees for assessing and collecting shall be deposited in the district's depository… .

(6) Section 13(b), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, 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 bonds of the county tax assessors-collectors shall stand as security for the proper performance of their duties as assessors-collectors of the district; or, if in the judgment of the board it is necessary, additional bonds payable to the district may be required… .

(7) Section 13(b), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, 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 taxes for the district, the county tax assessors-collectors may act in all respects according to the laws of the State of Texas relating to state and county taxes.

Revised Law

Sec. 1018.254. ASSESSMENT AND COLLECTION BY DISTRICT ASSESSOR-COLLECTOR. (a) The board, by majority vote, 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 a similar resolution.

(b) The district tax assessor-collector must reside in the district.

(1) the term of employment; and

(2) compensation. (Acts 66th Leg., R.S., Ch. 128, Secs. 13(a) (part), (c) (part).)

Source Law

Sec. 13. (a) [All taxes of the district shall be assessed and collected on county tax values as provided in Subsection (b) of this section unless] the board, by majority vote, elects to have taxes assessed and collected by its own tax assessor-collector [under Subsection (c) of this section]. The board may adopt a resolution annually before December 1 to govern the manner in which taxes are subsequently assessed and collected until changed by a similar resolution… .

(c) Under this subsection, taxes shall be assessed and collected by a tax assessor-collector appointed by the board, who shall also fix the term of his or her employment, compensation, and … . the tax assessor-collector shall be residents of the district, and … .

Revisor's Note

(1) Section 13(c), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, 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 1018.253. 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) … [the board, who shall also fix the] … requirement for bond to assure the faithful performance of his or her duties, but in no event shall the bond be for less than $5,000… .

(2) Section 13(c), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, 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 directors shall appoint two residents of Dallam County, two residents of Hartley County, and one resident of the city of Dalhart to serve as a board of equalization for two-year terms and shall fix their compensation. Each of the five members of the board of equalization and … [shall be residents of the district, 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 13(c), Chapter 128, Acts of the 66th Legislature, Regular Session, 1979, 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 law to the contrary, all the provisions of Title 122, Revised Civil Statutes of Texas, 1925, as amended, shall apply to the district.

Revisor's Note

(End of Chapter)

(1) Sections 2 and 17, Chapter 128, 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 which may be located wholly within the district and owned by Dallam County, Hartley County, or any city or town within the district. … The district shall assume the outstanding indebtedness incurred by Dallam County, Hartley 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. 17. … When the district is created and established, Dallam and Hartley counties 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 counties or any city or town within 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 counties or any city or town in the district for the remainder of the fiscal year in which the district is established shall also be transferred to the district, as shall taxes previously levied for hospital purposes for the current year and all sinking funds established for payment of indebtedness assumed by the district.

(2) Section 20, Chapter 128, 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. 20. 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.


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