80C9(3) MTB

 

CHAPTER 1019.  DARROUZETT HOSPITAL DISTRICT

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 1019.001.  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 Darrouzett 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. 1019.002.  AUTHORITY FOR OPERATION.  The Darrouzett Hospital District operates in accordance with Section 9, Article IX, Texas Constitution.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 1 (part).)

Source Law

Sec. 1.  Pursuant to the provisions of Article IX, Section 9, of the Texas Constitution, this Act shall be operative so as to authorize the creation, establishment, maintenance, and operation of the Darrouzett Hospital District of Lipscomb County, Texas, … .

Revisor's Note

(1)  Section 1, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, authorizes the "creation, establishment, maintenance, and operation" of the district.  The revised law omits "creation" and "establishment" as executed.  The revised law omits "maintenance" because, in this context, the meaning of that term is included in the meaning of "operation."

(2)  Section 2, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that the district may be created as a hospital district after an election.  The revised law omits that provision as executed because the election has been held and the district is created.  The omitted law reads:

Sec. 2.  The area described in Section 1 of this Act shall be constituted a hospital district as hereinafter set out and … provided, however, that such hospital district shall not be created unless and until an election for such purpose is held within the district.

Revised Law

Sec. 1019.003.  POLITICAL SUBDIVISION.  The district is a political subdivision of this state. (Acts 63rd Leg., R.S., Ch. 539, Sec. 16 (part).)

Source Law

Sec. 16.  The district is declared to be a political subdivision of the State of Texas, and … .

Revised Law

Sec. 1019.004.  DISTRICT TERRITORY.  The district is composed of:

(1)  the territory described by Section 1, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973; and

(2)  all territory in the Darrouzett Independent School District as that territory existed on June 14, 1973, except the territory in the Booker Hospital District on that date.  (New; Acts 63rd Leg., R.S., Ch. 539, Sec. 1 (part).)

Source Law

Sec. 1.  … 

The Darrouzett Hospital District shall include all of the present territory of the Darrouzett Independent School District except for that part of the school district which is already in the Booker Hospital District.

Revisor's Note

(1)  The revision of the law governing the Darrouzett Hospital District does not revise the statutory language describing the territory of the district to avoid the lengthy recitation of the description.  For the reader's convenience, the revised law includes a reference to the statutory description of the district's territory.

(2)  Section 1, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that the district includes a part of the "present territory" of the Darrouzett Independent School District and refers to territory that "is already in" the Booker Hospital District.  The "present territory" of, and territory that "is already in," a district means the territory in the district on the effective date of Chapter 539. Chapter 539 took effect June 14, 1973.  The revised law is drafted accordingly.

Revised Law

Sec. 1019.005.  CORRECTION OF INVALID PROCEDURES.  If a court holds that any procedure under this chapter violates the constitution of this state or of the United States, the district by resolution may provide an alternative procedure that conforms with the constitution.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 19 (part).)

Source Law

Sec. 19.  … [federal or state constitutions] … .  Where any procedure hereunder may be held by any court to be violative of either of such constitutions, the district shall have the power by resolution to provide an alternative procedure conformable with such constitutions.  …

Revisor's Note

Section 19, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that the act does not violate the federal or state constitution and requires that action under the act comply with the constitutions.  The revised law omits the reference to the federal constitution because, under the Supremacy Clause of the United States Constitution (Clause 2, Article VI), federal law always takes precedence over a state statute.  The revised law also omits the reference to the Texas Constitution because the state cannot modify constitutional requirements by statute.  The omitted law reads:

Sec. 19.  Nothing in this Act shall be construed to violate any provision of the federal or state constitutions, and all acts done under this Act shall be in such manner as will conform thereto, whether expressly provided or not.  …

Revisor's Note

(End of Subchapter)

Sections 3(a), (c), and (d), Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provide procedures for holding an election on the creation of the district and the imposition of an ad valorem tax.  Because the creation of the district and the imposition of the tax were approved at the election, the revised law omits the relevant law as executed.  The omitted law reads:

Sec. 3.  (a)  Upon the petition of 50 voters residing within the described area, the Commissioners Court of Lipscomb County shall order an election to be held within the proposed district to approve the creation of the proposed district and … .  The commissioners court shall order the election within 10 days of the receipt of the petition and the election shall be held within 30 days after it is ordered.

(c)  At the election there thall be submitted to the voters of the district the proposition of whether or not the district shall be created with the above boundaries; and a majority of the persons voting at the election voting in favor of the proposition shall be necessary to create the district.

The ballots shall be printed to provide for voting for or against the following proposition:  "The creation of the Darrouzett Hospital District and the levy of a tax not to exceed 75 cents on the $100 valuation."

…

Notice of the election stating the time and places of election, and the proposition and matters to be voted on shall be published in a newspaper in general circulation in Lipscomb County, Texas, once a week for three consecutive weeks, the first notice not being published more than 30 days prior to the date of election.

(d)  The results of the election shall be filed in the county clerk's office of Lipscomb County, Texas, within 10 days thereafter. If the majority of the persons voting at the election vote for the creation of the district, then within 10 days of the filing of the results, the commissioners court shall order the district created and … .  If the district is not confirmed at an election held within 60 months from the effective date of this Act, this Act is repealed.

[Sections 1019.006-1019.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1019.051.  BOARD ELECTION; TERM.  (a)  The board consists of six directors elected from the district at large.

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

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

(2)  an election shall be held on the uniform election date in May of each year to elect the appropriate number of directors.  (Acts 63rd Leg., R.S., Ch. 539, Secs. 3(c) (part), 3A(a).)

Source Law

[Sec. 3]

(c)  …  Each voter shall vote for six persons.  The six persons receiving the highest number of votes shall constitute the first board of directors of the district. The three receiving the highest number of votes shall serve until the first Saturday of April of the second year after the election. The three receiving the next highest number of votes shall serve until the first Saturday of April of the first year after the election. Thereafter, all directors shall serve for two-year terms.

Sec. 3A.  (a)  A director's election shall be held on the first Saturday in May in each year for the election of the appropriate number of successor directors.

Revisor's Note

(1)  Section 3, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, prescribes the procedures for electing 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 six directors elected from the district at large.  Section 3 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.  The revised law codifies the provision specifying staggered terms but omits the provision relating to the date on which the terms of the initial directors expire as executed.

(2)  Sections 3(a), (b), (c), and (d), Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, prescribe the procedure for electing the initial board of directors.  The revised law omits the provisions as executed.  The omitted law reads:

(a)  …  [the Commissioners Court … shall order an election] … to elect the first board of directors thereof.  …

(b)  Upon and after the ordering of the election, any resident of the district 21 years of age or over and who is otherwise qualified may file an application with the Commissioners Court of Lipscomb County, Texas, to have his or her name placed on the ballot for election to the board of directors of the district.  Such applications shall be received by the court until 10 days preceding the date of the election.

(c)  …  There shall also be submitted to the voters at the election a separate ballot containing the names of all of the qualified persons who have filed applications to have their names placed on the ballot for election to the board of directors… .

(d)  …  [the commissioners court] … shall at such time declare those persons elected as directors to be the board of directors of the district to manage and operate the business of the district and to serve as directors until their respective successors are elected and qualified… .

(3)  Section 3(c), Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that directors serve two-year terms.  Section 285.081, Health and Safety Code, applicable to this hospital district, provides a mechanism by which the governing board of a hospital district, on its own motion, may order that the members are to be elected in even-numbered years to serve staggered four-year terms.  The revised law is drafted accordingly and adds a reference to Section 285.081, Health and Safety Code, for the convenience of the reader.

(4)  Section 3A, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, was added in 1993 to require board elections on the "first Saturday in May."  From 1986 to 2003, Section 41.001, Election Code, provided for a uniform election date for all political subdivisions on the first Saturday in May.  In Chapter 1315, Acts of the 78th Legislature, Regular Session, 2003, the legislature amended Section 41.001 by moving the uniform election date in May to the third Saturday.  In Chapter 1, Acts of the 78th Legislature, 3rd Called Session, 2003, the legislature amended Section 41.001 by moving the uniform election date in May back to the first Saturday.  In Chapter 471, Acts of the 79th Legislature, Regular Session, 2005, the legislature amended Section 41.001 by moving the uniform election date in May to the second Saturday.  The revised law substitutes "uniform election date in May" for "first Saturday in May" to reflect these changes while preserving as closely as possible the legislative intent expressed in the 1993 amendment to Chapter 539 that the election be held on the first Saturday in May, which was at that time the uniform election date in May.

Revised Law

Sec. 1019.052.  BOARD VACANCY.  If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 3A(b).)

Source Law

(b)  A vacancy in the office of director shall be filled for the unexpired term by appointment by the remaining directors.

Revised Law

Sec. 1019.053.  OFFICERS.  (a)  The board shall elect a president, vice president, and secretary-treasurer from among its members.

(b)  Each officer of the board serves until the next directors' election.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 4 (part).)

Source Law

Sec. 4.  The board of directors of the district shall elect a president, vice-president, and secretary-treasurer from the members to serve until the next succeeding directors' election;  … .

Revised Law

Sec. 1019.054.  COMPENSATION; EXPENSES.  A director serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties on approval of the expenses by the entire board.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 4 (part).)

Source Law

Sec. 4.  …

The board of directors shall serve without compensation but may be reimbursed for actual expenses incurred in the performance of their official duties upon the approval of such expenses by the entire board of directors.

Revised Law

Sec. 1019.055.  EMPLOYEES.  The board may employ a general manager, attorneys, financial advisors, bookkeepers, and architects as the board considers necessary.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 7 (part).)

Source Law

Sec. 7.  …  The board of directors may employ a general manager, attorneys, financial advisors, bookkeepers, and architects as they consider necessary.

…

Revised Law

Sec. 1019.056.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.  All district records, including books, accounts, notices, minutes, and all other matters of the district and the operation of its facilities, shall be:

(1)  maintained at the district office; and

(2)  open to public inspection at reasonable hours.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 7 (part).)

Source Law

Sec. 7.  …

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

…

Revisor's Note

Section 7, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, states that records shall be maintained at the district office "except as herein provided."  The revised law omits the quoted language because the act does not provide an exception.

Revised Law

Sec. 1019.057.  SEAL.  The board may adopt a seal for the district.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 7 (part).)

Source Law

Sec. 7.  The board of directors … shall have the power to adopt a seal for such district… .

[Sections 1019.058-1019.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1019.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for:

(1)  operating all hospital facilities; and

(2)  providing hospital care for the district's needy inhabitants.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 12 (part).)

Source Law

Sec. 12.  … The hospital district shall assume full responsibility for the operation of all hospital facilities and for the furnishing of hospital care for its needy inhabitants.

…

Revisor's Note

Section 12, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that the district "shall assume" full responsibility for operating hospital facilities and providing 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. 1019.102.  RESTRICTION ON TAXATION AND DEBT BY OTHER ENTITY.  (a)  A political subdivision within the district, other than the district, may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care for district inhabitants.

(b)  A governmental or other entity inside or outside the district may not impose a tax or issue bonds or other obligations on property in the district for hospital purposes or to provide medical care for district inhabitants.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 12 (part).)

Source Law

Sec. 12.  No municipality or political subdivision within the boundaries of the district shall have the power to levy taxes or issue bonds or other obligations for hospital purposes or for providing medical care for inhabitants of the district.  So long as this Act is in effect and whether or not the Darrouzett Hospital District has been created pursuant to Section 3 herein, no governmental or any other type of entity, whether situated within or without the boundaries of this district, shall have the power to levy taxes or issue bonds or other obligations upon any property in the district for hospital purposes or for providing medical care for inhabitants of the district… .

Revisor's Note

(1)  Section 12, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that a "municipality or political subdivision" may not levy taxes or issue bonds.  The revised law omits the reference to "municipality" because "municipality" is included in the meaning of "political subdivision."  In addition, throughout this chapter the revised law substitutes "impose" for "levy" because, in this context, the terms are synonymous and the former is more commonly used.

(2)  Section 12, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that a governmental or other entity may not levy taxes or issue bonds "whether or not the Darrouzett Hospital District has been created pursuant to Section 3 herein."  Because the district has been created, the revised law omits the quoted language as executed.

Revised Law

Sec. 1019.103.  MANAGEMENT AND CONTROL.  The board has full management and control of all district business, including the power to:

(1)  negotiate and contract with any person;

(2)  purchase or lease land;

(3)  construct and equip a hospital system; and

(4)  operate and maintain the hospital.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 4 (part).)

Source Law

Sec. 4.  … the board of directors shall have the full management and control of all business of the district, including but not limited to the power and authority to negotiate and contract with any person or body, public or private, to purchase or lease land, to construct and equip a hospital system, and to operate and maintain the hospital, and to negotiate and contract with other political subdivisions of the state, private individuals, associations, or corporations for such purposes.

…

Revisor's Note

(1)  Section 4, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, refers to "including but not limited to."  The revised law omits "but not limited to" because Section 311.005(13), Government Code (Code Construction Act), provides that "includes" and "including" are terms of enlargement and not of limitation and do not create a presumption that components not expressed are excluded.

(2)  Section 4, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that the board has the "power and authority" to "operate and maintain" a hospital and to contract with "any person or body, public or private" or  with "other political subdivisions of the state, private individuals, associations, or corporations."  The revised law omits the reference to "authority" because, in this context, "authority" is included in the meaning of "power."  The revised law omits the references to "body, public or private" and to "other political subdivisions of the state, private individuals, associations, or corporations" because under Section 311.005(2), Government Code (Code Construction Act), "person" is defined to include any legal entity.

Revised Law

Sec. 1019.104.  HOSPITAL SYSTEM.  The district shall provide for the establishment of a hospital system to provide medical and hospital care to the district's residents.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 2 (part).)

Source Law

Sec. 2.  … shall provide for the establishment of a hospital system to furnish medical and hospital care to persons residing in the district; … .

Revised Law

Sec. 1019.105.  RULES.  (a)  The board may adopt rules governing the operation of the district, including district facilities.

(b)  On approval by the board, the rules may be published in booklet form at district expense and made available to any resident on request.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 7 (part).)

Source Law

Sec. 7.  …

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

Revisor's Note

(1)  Section 7, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, refers to "rules and regulations."  The revised law omits the references to "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

(2)  Section 7, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that the board may adopt rules that "shall supplement but shall not contravene any of the provisions of this Act."  The revised law omits the quoted language because, under established principles of law, the board is not authorized to take any action contrary to the laws of this state.

(3)  Section 7, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, refers to publishing rules in "booklet or pamphlet form." The revised law omits "pamphlet" because, in context, the meaning of "pamphlet" is included in the meaning of "booklet."

Revised Law

Sec. 1019.106.  PURCHASING AND ACCOUNTING PROCEDURES.  (a)  The board may prescribe the method and manner of making purchases and expenditures by and for the district.

(b)  The board shall prescribe:

(1)  all accounting and control procedures; and

(2)  the method of purchasing necessary supplies, materials, and equipment.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 7 (part).)

Source Law

Sec. 7.  The board of directors of the district shall have the power to prescribe the method and manner of making purchases and expenditures by and for the district, and shall prescribe all accounting and control procedures, the method of purchasing necessary supplies, materials, and equipment, and … .

Revised Law

Sec. 1019.107.  EMINENT DOMAIN.  (a)  The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property, real, personal, or mixed, located in district territory, if the interest is necessary or convenient for the district to exercise a right, power, privilege, or function conferred on the district 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 63rd Leg., R.S., Ch. 539, Sec. 9.)

Source Law

Sec. 9.  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 or character, real, personal, or mixed, or any interest therein, including outright ownership of such property in fee simple absolute, within the boundaries of the district, necessary or convenient to the exercise of the rights, power, privileges, and functions conferred upon it by this Act, in the manner provided by general law with respect to condemnation; provided that 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 the bond required therein. In condemnation proceedings being prosecuted by the district, the district shall not be required to pay in advance or to give bond or other security for costs in the trial court, nor to give any bond otherwise required for the issuance of a temporary restraining order or a temporary injunction relating to a condemnation proceeding, nor to give bond for costs or for supersedeas on any appeal or writ of error.

Revisor's Note

(1)  Section 9, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, 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 law relating to eminent domain.

(2)  Section 9, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that the district must exercise the power of eminent domain in the manner provided by "general law with respect to condemnation."  The revised law substitutes for "general law" a reference to Chapter 21, Property Code, because that is the general law governing eminent domain.

(3)  Section 9, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, 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. 1019.108.  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 63rd Leg., R.S., Ch. 539, Sec. 14.)

Source Law

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

Revisor's Note

Section 14, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, 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. 1019.109.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient from Lipscomb County is admitted to a district facility, the board shall have an inquiry made into the circumstances of:

(1)  the patient; and

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

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

(c)  If an agent designated by the district determines that the patient or those relatives are liable to pay for all or part of the costs of the patient's care and treatment, the patient or those relatives shall be ordered to pay the district's treasurer a specified amount each week for the patient's support.  The amount ordered must be proportionate to the person's financial ability and may not exceed the actual per capita cost of maintenance.

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

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

(1)  resolve the dispute or doubt; and

(2)  issue an appropriate order.

(f)  Either party to the dispute may appeal the district's determination to the district court.   (Acts 63rd Leg., R.S., Ch. 539, Sec. 13.)

Source Law

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

Revisor's Note

(1)  Section 13, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, refers to "the county in which the district is situated."  Throughout this chapter the revised law substitutes "Lipscomb County" for the quoted language because that is the county in which the district is situated.

(2)  Section 13, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, requires the board to have an inquiry made into a patient's circumstances and provides different consequences depending on the findings of the inquiry. Section 13 provides that the first set of consequences apply if "he" makes certain findings, but provides no antecedent reference to who "he" may be.  The section subsequently provides that the second set of consequences apply if "the agent designated by the district to handle such affairs" makes certain findings.  From the context the necessary conclusion is that the section anticipates that the designated agent will also make the previously mentioned findings.  The revised law is drafted accordingly.

Revised Law

Sec. 1019.110.  AUTHORITY TO SUE AND BE SUED.  As a governmental agency, the district may sue and be sued in its own name in any court of this state.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 16 (part).)

Source Law

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

Revisor's Note

(End of Subchapter)

Section 11, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides authority for a representative of the "State Board of Health or any state board of charities or public welfare" to inspect district facilities and records.  The revised law omits Section 11 because various state laws, including Chapters 222 and 241, Health and Safety Code, provide the necessary inspection authority to appropriate state agencies.  The omitted law reads:

Sec. 11.  Any hospital district established or maintained under the provisions of this Act shall be subject to inspection by any duly authorized representative of the State Board of Health or any state board of charities or public welfare that may hereafter be created, and resident officers shall admit such representatives into all hospital district facilities and give them access on demand to all records, reports, books, papers, and accounts pertaining to the hospital district.

[Sections 1019.111-1019.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1019.151.  BUDGET.  The board annually shall require a budget to be prepared for the next fiscal year that includes:

(1)  proposed expenditures and disbursements;

(2)  estimated receipts and collections; and

(3)  the amount of taxes required to be imposed for the year. (Acts 63rd Leg., R.S., Ch. 539, Sec. 8 (part).)

Source Law

Sec. 8.  …

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

Revisor's Note

Section 8, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, refers to taxes required to be "levied and collected."  The revised law substitutes "imposed" for the quoted language because "impose" is the term generally used in Title 1, Tax Code, and includes the levy and collection of an ad valorem tax.

Revised Law

Sec. 1019.152.  PROPOSED BUDGET: NOTICE AND HEARING. (a) The board shall hold a public hearing on the proposed annual budget.

(b)  Notice of the hearing must be published at least once in a newspaper of general circulation in the district not later than the 10th day before the date of the hearing.

(c)  Any district resident is entitled to:

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

(2)  be heard regarding any item included in the proposed budget.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 8 (part).)

Source Law

Sec. 8.  …

The board of directors … shall hold a public hearing on the proposed budget after publication of a notice of hearing in a newspaper of general circulation in the district at least once not less than 10 days prior to the date set for the hearing. Any resident of the district shall have the right to appear at the time and place designated in the notice and be heard with reference to any item shown in the proposed budget. …

Revised Law

Sec. 1019.153.  FISCAL YEAR.  The district operates on a fiscal year that begins on October 1 and ends on September 30.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 8 (part).)

Source Law

Sec. 8.  The fiscal year of the district shall commence on October 1 of each year and end on September 30 of the following year… .

Revised Law

Sec. 1019.154.  ANNUAL AUDIT.  (a)  The board annually shall have an independent audit made of the district's books and records for the fiscal year.

(b)  Not later than December 31 each year, the audit shall be filed:

(1)  with the comptroller; and

(2)  at the district office.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 8 (part).)

Source Law

Sec. 8.  . . . The district directors shall cause an annual independent audit to be made of the books and records of the district, such audit to be made covering the fiscal year, and the same shall be filed with the Comptroller of Public Accounts of the State of Texas and at the office of the district not later than December 31 of each year.

…

Revisor's Note

Section 8, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, refers to "the Comptroller of Public Accounts of the State of Texas."  The revised law substitutes "comptroller" for the quoted language because Section 403.001, Government Code, defines "comptroller" in any state statute to mean the comptroller of public accounts of the State of Texas.

Revised Law

Sec. 1019.155.  DEPOSITORY OR TREASURER.  (a)  The board by resolution shall designate a bank or banks in the district as the district's depository or treasurer.  A designated bank serves for two years and until a successor is designated.

(b)  All income received by the district shall be deposited with the district depository.

(c)  All district money shall be secured in the manner provided for securing county funds.  (Acts 63rd Leg., R.S., Ch. 539, Secs. 5 (part), 10.)

Source Law

Sec. 5.  … [shall be deposited in the district depository;] … . All other income of the hospital district shall be deposited in like manner with the district depository.

…

Sec. 10.  Within 30 days after appointment and qualification of the board of directors of the district, the directors shall by resolution designate a bank or banks located within the district as the district's depository or treasurer and all funds of the district shall be secured in the manner now provided for the security of county funds. The depository shall serve for a period of two years and until a successor has been named.

Revisor's Note

Section 10, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, requires the board to select a depository or treasurer "[w]ithin 30 days after appointment and qualification of the board of directors of the district."  The revised law omits the quoted language as executed.

[Sections 1019.156-1019.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Revised Law

Sec. 1019.201.  GENERAL OBLIGATION BONDS.  The board may issue and sell general obligation bonds in the name and on the faith and credit of the district for any purpose relating to:

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

(2)  equipping buildings or improvements for hospital purposes.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 6 (part).)

Source Law

Sec. 6.  The board of directors shall have the power and authority to issue and sell as an obligation of the district, and in the name and upon the faith and credit of the district, bonds for the purchase, construction, acquisition, repair, or renovation of buildings and improvements and equipping the same for hospital purposes and for any or all of such purposes; … .

Revisor's Note

Section 6, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that the board has the power and authority to issue and sell bonds in the name and on the faith and credit of the district.  Because the type of bonds described by Section 6 are known as "general obligation bonds," the revised law is drafted accordingly.

Revised Law

Sec. 1019.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a) 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 general obligation bonds issued by the district under Section 1019.201 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 63rd Leg., R.S., Ch. 539, Sec. 6 (part).)

Source Law

Sec. 6.  … provided, that a sufficient tax shall be levied to create an interest and sinking fund to pay the interest and principal as same matures provided said tax together with any other taxes levied for said district shall not exceed 75 cents on the $100 valuation in any one year. …

Revisor's Note

Section 6, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, requires the district to impose 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. 1019.203.  GENERAL OBLIGATION BOND ELECTION.  (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

(b)  The board may order the election on its own motion.

(c)  The order calling the election must specify:

(1)  the location of the polling places;

(2)  the presiding election officers;

(3)  the purpose of the bond issuance;

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

(5)  the maximum interest rate provided by law.

(d)  Notice of a bond election shall be given by publishing a substantial copy of the order calling the election in a newspaper of general circulation in the district once each week for two consecutive weeks before the date of the election.  The first publication must occur at least 20 days before the date of the election.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 6 (part).)

Source Law

Sec. 6.  … No bonds shall be issued by such hospital district … until authorized by a majority vote of the voters, residing in such hospital district, voting at an election called and held for such purpose. Such election may be called by the board of directors of its own motion, which shall specify the place or places where the election shall be held, the presiding officers thereof, the purpose for which the bonds are to be issued, the amount thereof, the maximum interest rate, not to exceed eight percent per annum, or any other limitation provided for at law, and … . Notice of the election shall be given by publishing a substantial copy of the order calling the election in a newspaper of general circulation in the district once a week for two consecutive weeks prior to the date of election, the date of the first publication being at least 20 days prior to the date set for the election. …

Revisor's Note

(1)  Section 6, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, refers to a majority vote of the voters "residing" in the district.  The revised law omits "residing" as unnecessary in this context because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only voters who are residents of the territory covered by the election to vote in an election.

(2)  Section 6, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, refers to an election "called and held."  The revised law omits the reference to "calling" an election because, in this context, "calling" an election is included in the meaning of "holding" an election.  Under Chapter 3, Election Code, all elections must be ordered (called) before they may be held.

(3)  Section 6, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that the election order must include the maximum interest rate "not to exceed eight percent per annum, or any other limitation provided for at law."  The revised law omits the quoted language because it has been superseded by the enactment of the maximum interest rate provision found in Section 1204.006, Government Code.  That section reflects the 1981 amendment of Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes, now Chapter 1204, Government Code), by Section 1, Chapter 61, Acts of the 67th Legislature, Regular Session, 1981, and permits a public agency, including a hospital district, to issue public securities at any net effective interest rate of 15 percent or less.  Section 1204.006, Government Code, applies to district bonds by application of Section 1204.001, Government Code.

(4)  Section 6, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, requires the district to pay the costs of a bond election.  The revised law omits the provision because it duplicates Section 1.014, Election Code, applicable to the district under Section 1.002 of that code.  The omitted law reads:

Sec. 6.  …  The costs of the election shall be paid by the hospital district.

…

Revised Law

Sec. 1019.204.  MATURITY OF GENERAL OBLIGATION BONDS.  District general obligation bonds must mature not later than 40 years after the date of issuance.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 6 (part).)

Source Law

Sec. 6.  … the maximum maturity date of such bonds, not to exceed 40 years from their date of issuance. …

Revised Law

Sec. 1019.205.  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.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 6 (part).)

Source Law

Sec. 6.  . . . Such bonds shall be executed in the name of the hospital district and on its behalf by the president of the board of directors, and countersigned by the secretary of the board of directors, and … .

Revisor's Note

Section 6, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that district general obligation bonds are subject to the law requiring bond approval by the attorney general and registration of the bonds by the comptroller.  Section 6 also provides that after approval 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:

Sec. 6.  … shall be subject to the same requirements in the manner of approval thereof by the Attorney General of the State of Texas and the registration thereof by the Comptroller of Public Accounts of the State of Texas as are by law provided.  Upon the approval of such bonds by the attorney general the same shall be incontestable for any cause. …

Revised Law

Sec. 1019.206.  REFUNDING BONDS.  (a)  The board may, without an election, issue refunding bonds in the manner provided by this subchapter to refund outstanding bonds 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 bonds to be refunded; or

(2)  exchanged wholly or partly for not less than a similar amount of outstanding bonds and the unpaid matured interest on the bonds.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 6 (part).)

Source Law

Sec. 6.  …  [No bonds shall be issued by such hospital district] except refunding bonds [until authorized by a majority vote of the voters … voting at an election] … .

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

Revisor's Note

Section 6, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, limits the interest rate for refunding bonds and other bonds issued by the district.  The revised law omits the part of Section 6 that relates to interest rates as impliedly repealed by Section 2(a), Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), which was revised in 1999 as Section 1204.006(a), Government Code.  Section 1204.006(a) permits a public agency, including a hospital district, to issue  bonds at a net effective interest rate not to exceed 15 percent and applies to district bonds by application of Section 1204.001, Government Code.  The revised law omits the part of Section 6 that refers to interest rates because it duplicates Section 1204.006.  The omitted law reads:

Sec. 6.  … provided the average interest cost per annum on the refunding bonds, computed in accordance with recognized standard bond interest cost tables, shall not exceed the average interest cost per annum so computed, upon the bonds to be discharged out of the proceeds of the refunding bonds, unless the total interest cost on the refunding bonds, computed to their respective maturity dates, is less than the total interest cost so computed on the bonds to be discharged out of such proceeds.  In the foregoing computations, any premium or premiums required to be paid upon the bonds to be refunded as a condition to payment in advance of their stated maturity dates shall be taken into account as an addition to the net interest cost to the hospital district of the refunding bonds.

Revisor's Note

(End of Subchapter)

(1)  Section 5, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that Chapter 285, Acts of the 60th Legislature, Regular Session, 1967 (Article 4494r-1, Vernon's Texas Civil Statutes), applies to the district.  The revised law omits that reference because Article 4494r-1 was codified in 1989 as Section 284.031, Health and Safety Code, and that section applies to hospital districts on its own terms.  The omitted law reads:

Sec. 5.  …  The provisions of Chapter 285, Acts of the 60th Legislature, Regular Session, 1967 (Article 4494r-1, Vernon's Texas Civil Statutes), shall apply to the district, and revenue bonds may be issued as therein provided.

(2)  Section 15, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that district bonds are authorized investments for certain entities.  The revised law omits the provision as unnecessary.  As to several of the entities listed, Section 15 has been superseded and impliedly repealed.  Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)).  Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by building and loan associations (now called savings and loan associations) are regulated by Sections 63.002 and 64.001, Finance Code.  As to the remaining entities listed, Section 15 is superseded by Section 1201.041, Government Code, enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes).  Section 1201.041, Government Code, applies to 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. 15.  All bonds issued by the district authorized to be established and created under the provisions of this Act shall be and are declared to be legal and authorized investments for banks, savings banks, trust companies, building and loan associations, insurance companies, trustees, guardians, and for the sinking funds of cities, towns, villages, counties, school districts, or other political corporations or subdivisions of the State of Texas, and … .

(3)  Section 15, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that district bonds may secure certain deposits.  Although Section 15 does not specifically mention the deposits the bonds are eligible to secure, the only deposits they could secure would be deposits of public funds of this state or political subdivisions of this state.  As such, 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. 15.  … such bonds shall be lawful and sufficient security for deposits to the extent of their face value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1019.207-1019.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Revised Law

Sec. 1019.251.  IMPOSITION OF AD VALOREM TAX.  (a)  On final approval of the annual budget, the board shall impose a tax on all property in the district subject to district taxation.

(b)  The board shall impose the tax to:

(1)  pay the interest on and create a sinking fund for bonds issued or assumed by the district for hospital purposes;

(2)  provide for operation and maintenance of the hospital or hospital system;

(3)  make improvements and additions to the hospital system; and

(4)  acquire necessary sites for the hospital system by purchase, lease, or condemnation.  (Acts 63rd Leg., R.S., Ch. 539, Secs. 5 (part), 8 (part).)

Source Law

Sec. 5.  Upon the creation of the district, the board of directors shall have the power and authority and it shall be their duty to levy on all property subject to hospital district taxation for the benefit of the district … a tax …  for the purpose of:

(1)  paying the interest on and creating a sinking fund for bonds which may have been assumed or which may be issued by the hospital district for hospital purposes as herein provided;

(2)  providing for the operation and maintenance of the hospital or hospital system; and

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

… the board of directors shall levy the tax on all property within the district which is subject to taxation and  … .  The tax so levied shall be collected on all property subject to hospital district taxation  … .

Sec. 8.  … upon final approval of the budget, the board of directors shall levy such tax as may be required and … .

Revisor's Note

(1)  Section 5, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that "[u]pon the creation of the district," the board shall impose taxes.  The revised law omits the quoted language as executed.

(2)  Section 5, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, requires the board to impose taxes at a certain time and in a certain manner.  The revised law omits that provision because it was 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 imposition and collection of property taxes by a taxing unit, including a hospital district.  The omitted law reads:

Sec. 5.  … [the board of directors shall have the power and authority and it shall be their duty to levy on all property subject to hospital district taxation for the benefit of the district] at the same time taxes are levied for county purposes, using county values and county tax rolls, … .

Not later than October 1 of each year, [the board of directors shall levy the tax … .  The tax so levied shall be collected] … on the county tax values, and in the same manner and under the same conditions as county taxes.  …

Revised Law

Sec. 1019.252.  TAX RATE.  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.  (Acts 63rd Leg., R.S., Ch. 539, Sec. 5 (part).)

Source Law

Sec. 5.  … [the board of directors shall … levy] … a tax of not to exceed 75 cents on the $100 valuation of all taxable property within the hospital district, … .

Revisor's Note

Sections 5 and 8, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, require the board to levy the tax and to certify the tax rate to the tax assessor-collector.  The revised law omits those provisions because Section 26.05(a), Tax Code, requires the governing body of a taxing unit to adopt a tax rate for the current tax year and to notify the tax assessor of that rate.  The omitted law reads:

Sec. 5.  … [the board of directors] … shall immediately certify such tax rate to the tax assessor and collector of the county in which the district is located… .

Sec. 8.  … [the board of directors shall] … certify the tax rate for such year to the county tax assessor and collector of Lipscomb County as provided in Section 5 hereof, and … .

Revised Law

Sec. 1019.253.  TAX ASSESSOR-COLLECTOR.  (a) Except as provided by Subsection (b), the tax assessor-collector of Lipscomb County shall assess and collect taxes imposed by the district.

(b)  By majority vote the board may appoint a district tax assessor-collector under Section 285.041, Health and Safety Code.  (Acts 63rd Leg., R.S., Ch. 539, Secs. 5 (part), 8 (part).)

Source Law

Sec. 5.  …  [The tax so levied shall be collected] … by the assessor and collector of taxes for the county … .  The directors, by majority vote may adopt the provisions of Chapter 595, Acts of the 62nd Legislature, Regular Session, 1971 (Article 4494r-4, Vernon's Texas Civil Statutes), so that taxes are thereafter levied, assessed, equalized, and collected as therein provided… .

Sec. 8.  … it shall be the duty of the tax assessor and collector to assess and collect such tax.

Revisor's Note

(1)  Section 5, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, 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 (2) to Section 1019.251.  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:

Sec. 5.  …  The assessor and collector of taxes shall charge and deduct from payments to the hospital district the fees for assessing and collecting the tax at the rate of not exceeding one percent of the amounts collected as may be determined by the board of directors but in no event in excess of $5,000 for any one fiscal year.  Such fees shall be deposited in the county's general fund, and shall be reported as fees of office of the tax assessor and collector… .

(2)  Section 5, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, 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 (2) to Section 1019.251. 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:

Sec. 5.  …  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 for county taxes… .

(3)  Section 5, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that tax revenue shall be deposited in the district's depository and may be withdrawn only as provided by the act.  The revised law omits the provision regarding the deposit of tax revenue 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 revised law omits the provision regarding withdrawal of tax revenue because the provisions of this chapter regarding the expenditure of district money apply according to their own terms. The omitted law reads:

Sec. 5.  …  The residue of tax collections, after deduction of discounts and fees for assessing and collecting, shall be deposited in the district depository; and such funds shall be withdrawn only as provided herein. …

(4)  Section 5, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, authorizes the board to "adopt the provisions of Chapter 595, Acts of the 62nd Legislature, Regular Session, 1971 (Article 4494r-4, Vernon's Texas Civil Statutes), so that taxes are thereafter levied, assessed, equalized, and collected as therein provided."  Article 4494r-4 was codified in 1989 as Section 285.041, Health and Safety Code, and the revised law is drafted accordingly.  The revised law omits the provisions relating to levying, assessing, equalizing, and collecting the taxes under Article 4494r-4 because those provisions were repealed by Section 4(c), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  The 1979 act also enacted the Property Tax Code (Title 1, Tax Code).

Revisor's Note

(End of Subchapter)

Section 5, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, 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. 5.  …  The board of directors shall have the authority to levy taxes for the entire year in which the district is established, for the purpose of securing funds to initiate the operation of the hospital district, and to pay assumed bonds… .

Revisor's Note

(End of Chapter)

(1)  Section 12, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides for the transfer of certain land, buildings, improvements, equipment, funds, and taxes to the district after the district is created and provides for the assumption of debt by the district on creation.  The revised law omits the provision as executed.  The omitted law reads:

Sec. 12.  …  When the district is created and established, the county and all towns and cities located wholly or partly therein shall convey and transfer to the district title to all land, buildings, improvements, and equipment in anywise pertaining to a hospital or hospital system located wholly within the district which may be jointly or separately owned by the county or any city or town within the district. Operating funds and reserves for operating expenses which are on hand and funds which have been budgeted to provide medical care for residents of the district by the county or any city or town therein for the remainder of the fiscal year in which the district is established shall likewise be transferred to the district, as shall taxes theretofore levied for hospital purposes for the current year, and all sinking funds established for payment of indebtedness assumed by the district. The district shall assume the outstanding indebtedness incurred by the 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.

(2)  Section 17, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, 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. 17.  Proof of publication of the notice required in the enactment hereof 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, and such notice is hereby found and declared proper and sufficient to satisfy such requirement.

(3)  Section 18, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides legislative intent regarding the creation of the district and the determination of qualified electors.  The revised law omits that section as executed.  The omitted law reads:

Sec. 18.  The legislature hereby recognizes there is some confusion as to the proper qualification of electors in the light of recent court decisions. It is the intention of this Act to provide a procedure for the creation of each hospital district and to allow such district, when created, to issue bonds payable from taxation, but that in each instance the authority shall be predicated upon the expression of the will of the majority of those who cast valid ballots at an election called for the purpose. Should the person or body calling an election determine that all qualified electors, including those who own taxable property which has been duly rendered for taxation, should be permitted to vote at such an election, by reason of the aforesaid court decisions, nothing herein shall be construed as a limitation upon the power to call and hold an election, provided provision is made for the voting, tabulating, and counting of the ballots of the resident qualified property taxpaying electors who own taxable property which has been duly rendered for taxation separately from those who are qualified electors, and in any election so called a majority vote of the resident qualified property taxpaying voters who own taxable property which has been duly rendered for taxation and a majority vote of the qualified electors, including those who own taxable property which has been duly rendered for taxation, shall be required to sustain the proposition.

(4)  Section 19, Chapter 539, Acts of the 63rd Legislature, Regular Session, 1973, provides that the act is severable.  The revised law omits that provision because it duplicates Section 311.032, Government Code (Code Construction Act), which provides that a provision of a statute is severable from each other provision of the statute that can be given effect.  The omitted law reads:

Sec. 19.  …  If any provision of this Act should be invalid, such fact shall not affect the authorization for the creation of the districts or the validity of any other provision of this Act, and the legislature here declares that it would have created the district and enacted the valid provisions of this Act notwithstanding the invalidity of any other provision or provisions hereof.