80C91(2) E

 

CHAPTER 1014.  COLLINGSWORTH COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 1014.001.  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 Collingsworth County Hospital District.  (New.)

Revisor's Note

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

Revised Law

Sec. 1014.002.  AUTHORITY FOR CREATION.  The Collingsworth County Hospital District is created under the authority of Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties prescribed by this chapter.  (Acts 60th Leg., R.S., Ch. 262, Sec. 1 (part).)

Source Law

Sec. 1.  Pursuant to the authority granted by the provisions of Section 9 of Article IX of the Constitution of the State of Texas, Collingsworth County Hospital District is hereby authorized to be created and … possess such rights, powers, and duties as are hereinafter prescribed.

Revised Law

Sec. 1014.003.  ESSENTIAL PUBLIC FUNCTION.  The district performs an essential public function in carrying out the purposes of this chapter.  (Acts 60th Leg., R.S., Ch. 262, Sec. 11 (part).)

Source Law

Sec. 11.  In carrying out the purposes of this Act, the district will be performing an essential public function and … .

Revised Law

Sec. 1014.004.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of Collingsworth County, Texas.  (Acts 60th Leg., R.S., Ch. 262, Sec. 1 (part).)

Source Law

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

Revised Law

Sec. 1014.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION.  The support and maintenance of the district may not become a charge against or obligation of this state.  (Acts 60th Leg., R.S., Ch. 262, Sec. 22 (part).)

Source Law

Sec. 22.  The support and maintenance of the Collingsworth County Hospital District shall never become a charge against or obligation of the State of Texas, … .

Revised Law

Sec. 1014.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.  The legislature may not make a  direct appropriation for the construction, maintenance, or improvement of a district facility.  (Acts 60th Leg., R.S., Ch. 262, Sec. 22 (part).)

Source Law

Sec. 22.  … nor shall any direct appropriation be made by the Legislature for the construction, maintenance or improvement of any of the facilities of such District.

Revisor's Note

(End of Subchapter)

Sections 3, 4(a), and 9, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, 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)  The district shall not be created, nor shall any tax therein be authorized unless and until such creation and such tax are approved by a majority of the qualified property taxpaying electors of the district voting at an election called for such purpose. Such election may be initiated by the Commissioners Court of Collingsworth County upon its own motion, or shall be called by said commissioners court upon presentation of a petition therefor signed by at least 100 qualified property taxpaying electors of the district.  Such election shall be held not less than 30 nor more than 60 days from the time such election is ordered by the commissioners court.  The order calling the election shall specify the time and places of holding same, the form of ballot, and the presiding judge for each voting place.  Notice of election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in the county once a week for two consecutive weeks, the first publication to appear at least 30 days prior to the date established for the election.  If the proposition to create the Collingsworth County Hospital District fails to carry at the election, no other election for the same purpose may be held within one year after the result of the election is announced officially.

(b)  At said election there shall be submitted to the qualified property taxpaying electors of the district the proposition of whether or not the hospital district shall be created with authority to levy annual taxes … for the purpose of meeting the requirements of the district's bonds, indebtedness assumed by it, and its maintenance and operating expenses, and a majority of the qualified property taxpaying electors of the district voting at said election in favor of the proposition shall be sufficient for its adoption.

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

"FOR the creation of Collingsworth County Hospital District, providing for the levy of a tax not to exceed 75 cents on the $100 valuation using Collingsworth County values and Collingsworth County tax rolls, and providing for the assumption by such district of all outstanding bonds and indebtedness heretofore issued by Collingsworth County and by any city or town within said county for hospital purposes."

"AGAINST the creation of Collingsworth County Hospital District, providing for the levy of a tax not to exceed 75 cents on the $100 valuation using Collingsworth County values and Collingsworth County tax rolls, and providing for the assumption by such district of all outstanding bonds and indebtedness heretofore issued by Collingsworth County and by any city or town within said county for hospital purposes."

Sec. 4.  (a)  Within 10 days after such election is held, the commissioners court of said county shall convene and canvass the returns thereof, and in the event such election results favorably to the proposition specified in Section 3 hereof, … .

Sec. 9.  A petition for an election to create the hospital district (as provided in Section 3) presented to the commissioners court may incorporate a request that a separate proposition be submitted at such election as to whether or not the board of directors of the district (in the event the same is created) shall be authorized to issue bonds for the purposes specified in Sections 7 and 8.  Such petition shall specify the maximum amount of bonds to be issued, their maximum maturity and maximum interest rate, the same shall be included as a proposition at the election.

[Sections 1014.007-1014.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1014.051.  BOARD ELECTION; TERM.  (a)  The district is governed by a board of seven directors elected from the district at large.

(b)  Directors serve staggered two-year terms unless four-year terms are established under Section 285.081, Health and Safety Code.

(c)  The election order must state the time, place, and purpose of the election. (Acts 60th Leg., R.S., Ch. 262, Secs. 4(a) (part), (b) (part).)

Source Law

(a)  … such district shall be governed by a board of directors to consist of seven members… . seven directors shall be elected from the county at large.  The four directors receiving the highest number of votes shall serve for two years, the remaining three shall serve for one year.  Thereafter, the term of all directors shall be two years.

(b)  [A regular election for directors] … shall be ordered by the board.  Such order shall state the time, place and purpose of the election, and the board shall appoint the presiding judge, who shall appoint an assistant judge and such clerks as may be required, and … .

Revisor's Note

(1)  Section 4(a), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, prescribes the procedure for appointing the initial board of directors.  The revised law omits the provision as executed.  The omitted law reads:

(a)  …  Upon creation of the district as above provided, the commissioners court shall appoint seven persons as directors to serve until the first Saturday in April of the calendar year following the creation of the district, at which time … .

(2)  Section 4(a), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, refers to directors elected from "the county" at large.  The revised law substitutes "district" for "county" because the district territory is coextensive with the county and "district" is the correct term in this context.

(3)  Section 4(a), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, prescribes the terms of the directors elected at the expiration of the terms of the initial directors and, in doing so, establishes staggered two-year terms for the directors.  The revised law omits the specific provision relating to the terms of those directors as executed but codifies the establishment of staggered two-year terms.

(4)  Section 4(a), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, 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 directors 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.

(5)  Section 4(b), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, provides that directors' elections are held on the first Saturday in April of each year.  The revised law omits that provision as impliedly repealed by a 1986 amendment to Section 41.001, Election Code.  Chapter 14, Acts of the 69th Legislature, 3rd Called Session, 1986, amended Section 41.001, Election Code, to prescribe certain uniform election dates.  Section 37 of that act required a political subdivision that held its general election of officers on the first Saturday in April to hold that election on a uniform election date in May or to choose a different uniform election day on which to hold the election.  The omitted law reads:

(b)  A regular election for directors shall be held on the first Saturday in April of each year and … .

(6)  Section 4(b), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, provides that the board shall appoint the presiding judge, who appoints an assistant judge and clerks as required.  The revised law omits the provision because it duplicates Sections 32.005 and 32.031, Election Code, applicable to the district under Section 1.002, Election Code.

(7)  Section 4(b), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, provides that the board shall order the election of directors and shall issue the order at least 15 days before the date of the election.  The revised law omits the provision requiring the board to order the election because it duplicates Section 3.004, Election Code, applicable to the district under Section 1.002, Election Code.  Section 3.004 requires the governing body of a political subdivision that has elective officers to order the general election for those officers.  The revised law also omits the provision stating that the board shall issue the order at least 15 days before the election date as superseded by Section 3.005, Election Code, also applicable to the district under Section 1.002, Election Code.  Section 3.005, as amended by Chapter 925, Acts of the 78th Legislature, Regular Session, 2003, requires an election order issued by the authority of a political subdivision to be issued not later than the 62nd day before election day and provides that Section 3.005 supersedes a law outside the Election Code to the extent of any conflict.  The omitted law reads:

(b)  … such election shall be ordered at least 15 days prior to the date on which it is to be held… .

Revised Law

Sec. 1014.052.  BALLOT PETITION.  A person who wants to have the person's name printed on the ballot as a candidate for director must file with the board secretary a petition requesting that action.  The petition must be:

(1)  signed by at least 15 registered voters; and

(2)  filed at least 25 days before the date of the election.  (Acts 60th Leg., R.S., Ch. 262, Sec. 4(b) (part).)

Source Law

(b)  … Any person desiring his name to be printed on the ballot as a candidate for director shall file a petition signed by not less than 15 qualified voters asking that such name be printed on the ballot with the secretary of the board of directors of the district.  Such petition shall be filed with the secretary at least 25 days prior to the date of election.  …

Revisor's Note

Section 4(b), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, refers to a petition signed by "qualified voters."  The revised law substitutes "registered voters" for the quoted language because in the context of eligibility to sign a petition, Section 277.0021, Election Code, provides that "qualified voter" means a "registered voter."

Revised Law

Sec. 1014.053.  QUALIFICATIONS FOR OFFICE.  To be eligible to hold office as a director, a person must be a resident property-owning taxpaying voter of the district.  (Acts 60th Leg., R.S., Ch. 262, Sec. 4(c) (part).)

Source Law

(c)  … Any person who is a resident property owning taxpaying voter of the district shall be eligible to hold office as director of the district.  …

Revised Law

Sec. 1014.054.  BOARD VACANCY.  If a vacancy occurs in the office of director, the remaining directors by majority vote shall appoint a director for the unexpired term.  (Acts 60th Leg., R.S., Ch. 262, Sec. 4(b) (part).)

Source Law

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

Revisor's Note

Section 4(b), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, provides a procedure for the appointment of a director to fill a vacancy other than for the original director's failure to qualify.  The revised law omits the provision as executed.  The omitted law reads:

(b)  … (other than for the failure of an original director herein appointed to qualify) … .

Revised Law

Sec. 1014.055.  OFFICERS.  (a)  The board shall elect from among its members a president, vice president, secretary, and other officers as in the judgment of the board are necessary.

(b)  The president is the chief executive officer of the district and has the same right to vote as any other director.

(c)  If the president is absent or fails or declines to act, the vice president shall perform the president's duties and exercise the president's powers under this chapter. (Acts 60th Leg., R.S., Ch. 262, Sec. 4(c) (part).)

Source Law

(c)  … The board of directors shall elect from its number a president, vice president, secretary, and such other officers as in the judgment of the board are necessary.  The president shall be the chief executive officer of the district, and shall have the same right to vote as any other director.  The vice president shall perform all duties and exercise all powers conferred by this Act upon the president when the president is absent or fails and declines to act.

Revised Law

Sec. 1014.056.  COMPENSATION; EXPENSES.  A director serves without compensation but may receive actual expenses incurred in attending to district business on approval of the expenses by the remainder of the board.  (Acts 60th Leg., R.S., Ch. 262, Sec. 4(c) (part).)

Source Law

(c)  No director shall be entitled to compensation, but shall be entitled to receive his actual expenses incurred in attending to the district's business, provided such expenses are approved by the remainder of the board.  …

Revised Law

Sec. 1014.057.  VOTING REQUIREMENT.  A concurrence of four directors is sufficient in any matter relating to district business. (Acts 60th Leg., R.S., Ch. 262, Sec. 4(d) (part).)

Source Law

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

Revisor's Note

Section 4(d), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, 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:

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

Revised Law

Sec. 1014.058.  MAINTENANCE OF RECORDS; PUBLIC INSPECTION.  (a)  The board shall:

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

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

(b)  The information described by Subsection (a) shall be open to public inspection at the district's principal office at all reasonable times. (Acts 60th Leg., R.S., Ch. 262, Sec. 4(d) (part).)

Source Law

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

Revisor's Note

Section 4, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, requires the board to keep a "true" account of all board meetings and proceedings.  The revised law omits the reference to "true" because the requirement that an account be kept presumes the requirement that the account be true.  In addition, under Section 37.10, Penal Code, a person who knowingly makes a false entry in a governmental record commits the offense of tampering with a governmental record.

Revised Law

Sec. 1014.059.  INDIVIDUAL LIABILITY OF DIRECTORS.  A director is individually liable only for the director's individual misapplication of public money.  (Acts 60th Leg., R.S., Ch. 262, Sec. 5(a) (part).)

Source Law

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

Revised Law

Sec. 1014.060.  DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR.  (a)  The board shall appoint a qualified person as district administrator.

(b)  The board may appoint an assistant administrator.

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

(d)  The board may execute an employment contract with the district administrator or assistant administrator for a term of not more than three years.  The employment contract may be renewed or extended annually.

(e)  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 $25,000 that:

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

(2)  contains other conditions the board may require.  (Acts 60th Leg., R.S., Ch. 262, Sec. 5(a) (part).)

Source Law

(a)  … The board of directors shall appoint a qualified person to be known as the administrator or manager of the hospital district and may in its discretion appoint an assistant to the administrator or manager.  Such administrator or manager and assistant administrator or assistant manager, if any, shall receive such compensation as may be fixed by the board, and the board may execute an employment contract with such administrator or manager and assistant administrator or assistant manager, but in no event may any such contract be for more than three years, but the same may be renewed or extended annually.  The administrator, or manager, shall, upon assuming his duties, execute a bond payable to the hospital district in an amount set by the board of directors, but in no event less than $25,000, conditioned that he shall perform the duties required of him, and containing such other conditions as the board may require… .

Revisor's Note

Section 5(a), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, provides that the board shall appoint a person as the "administrator or manager" of the district.  Throughout this chapter, the revised law omits "manager" because, in context, "manager" is included in the meaning of "administrator."

Revised Law

Sec. 1014.061.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.  The district administrator shall:

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

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

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

(B)  direct the affairs of the district.  (Acts 60th Leg., R.S., Ch. 262, Sec. 5(a) (part).)

Source Law

(a)  … The administrator or manager shall keep abreast of and be informed of the latest methods of hospital administration and the care of hospital patients, and shall supervise all the work and activities of the district and shall have general direction of the affairs of the district, subject to such limitations as may be prescribed by the board.

Revised Law

Sec. 1014.062.  EMPLOYEES.  The board may employ nurses, technicians, and other employees for the efficient operation of the district or may provide that the district administrator has that authority.  (Acts 60th Leg., R.S., Ch. 262, Sec. 5(b) (part).)

Source Law

(b)  The board of directors shall have the authority to employ, or may provide that the administrator or manager shall have the authority to employ, for the efficient operation of the district, nurses, technicians, and employees of the district… .

Revised Law

Sec. 1014.063.  LEGAL COUNSEL; OTHER PROFESSIONAL SERVICES.  The board may employ legal counsel or contract for other professional services as the board considers advisable.  (Acts 60th Leg., R.S., Ch. 262, Sec. 18.)

Source Law

Sec. 18.  The board of directors, at its discretion, shall be authorized to employ legal counsel or contract for other professional services, when it deems advisable.

Revised Law

Sec. 1014.064.  RETIREMENT PROGRAM.  The board may contract with this state or the federal government to establish or continue a retirement program for the benefit of the district's employees.  (Acts 60th Leg., R.S., Ch. 262, Sec. 5(b) (part).)

Source Law

(b)  … The board of directors is also authorized to enter into such contracts or agreements with the State of Texas or the federal government as may be required to establish or continue a retirement program for the benefit of the district's employees.

[Sections 1014.065-1014.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1014.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for:

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

(2)  providing medical and hospital care for the district's needy inhabitants.  (Acts 60th Leg., R.S., Ch. 262, Secs. 2 (part), 21 (part).)

Source Law

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

Sec. 21.  … The said hospital district shall assume full responsibility for the operation of all hospital facilities for the furnishing of medical and hospital care of indigent persons within its boundaries.

Revisor's Note

Sections 2 and 21, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, provide that the district "shall assume" full responsibility for providing medical and hospital care for the district's needy inhabitants and for the operation of hospital facilities for the indigent.  The revised law substitutes "has" for the quoted language because the duty to assume the responsibility is executed.

Revised Law

Sec. 1014.102.  RESTRICTION ON COUNTY OR MUNICIPALITY TAXATION AND DEBT. Collingsworth County or a municipality in Collingsworth County may not impose a tax or issue bonds or other obligations for hospital purposes or for medical treatment of indigent persons in the district.  (Acts 60th Leg., R.S., Ch. 262, Sec. 21 (part).)

Source Law

Sec. 21.  After creation of the hospital district, neither Collingsworth County, Texas, nor any city or town therein shall thereafter issue bonds or other evidences of indebtedness for hospital purposes or for medical treatment of indigent persons within such boundaries, nor shall such political subdivisions levy taxes for either of such purposes… .

Revisor's Note

(1)  Section 21, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, provides that "[a]fter creation of the hospital district," the county or any city or town in the county may not issue bonds or levy certain taxes.  The revised law omits the reference to the "creation" of the hospital district as executed.

(2)  Section 21, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, refers to a "city or town."  The revised law substitutes "municipality" for "city or town" to conform to the terminology of the Local Government Code.

(3)  Section 21, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, provides that Collingsworth County or any city or town in Collingsworth County may not issue bonds or other "evidences of indebtedness."  The revised law substitutes "obligations" for "evidences of indebtedness" because, in context, the terms are synonymous, and "obligations" is more commonly used.  Section 21 also states that Collingsworth County or a city or town in that county may not "levy" taxes for hospital purposes.  Throughout this chapter, the revised law substitutes "impose" for "levy" because, in this context, the terms are synonymous and the former is more commonly used.

Revised Law

Sec. 1014.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  The board shall manage, control, and administer the district's hospitals and hospital system.  (Acts 60th Leg., R.S., Ch. 262, Sec. 5(a) (part).)

Source Law

Sec. 5.  (a)  The board of directors shall manage, control, and administer the hospitals and hospital system of the district… .

Revised Law

Sec. 1014.104.  HOSPITAL SYSTEM.  The district shall provide for the establishment of a hospital system by:

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

(2)  equipping the buildings; and

(3)  administering the buildings and equipment for hospital purposes.  (Acts 60th Leg., R.S., Ch. 262, Sec. 2 (part).)

Source Law

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

Revised Law

Sec. 1014.105.  RULES.  The board may adopt rules for the operation of the district and as required to administer this chapter.  (Acts 60th Leg., R.S., Ch. 262, Secs. 5(a) (part), 12 (part).)

Source Law

Sec. 5.  (a)  … The district through its board of directors shall have the power and authority … to promulgate rules and regulations for the operation of the district… . 

Sec. 12.  The board of directors of such district shall have the power … to make such rules and regulations as may be required to carry out the provisions of this Act… .

Revisor's Note

Sections 5(a) and 12, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, provide that the board may "promulgate rules and regulations" to govern the district and "make such rules and regulations" to carry out the act.  The revised law substitutes "adopt" for "promulgate" and "make" because the terms are synonymous and the former is more commonly used.  The revised law also omits the reference to "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

Revised Law

Sec. 1014.106.  PURCHASING AND ACCOUNTING PROCEDURES.  (a)  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.

(b)  A purchase that involves the expenditure of more than $2,000 may be made only after advertising in the manner provided by Chapter 252 and Subchapter C, Chapter 262, Local Government Code.  (Acts 60th Leg., R.S., Ch. 262, Sec. 12 (part).)

Source Law

Sec. 12.  The board of directors of such district shall have the power to prescribe the method and manner of making purchases and expenditures by and for such hospital district, and also shall be authorized to prescribe all accounting and control procedures and … .  All purchases involving the expenditure of more than $2,000 may be made only after advertising in the manner provided by Chapter 163, Acts of the 42nd Legislature, Regular Session, 1931, as amended (Article 2368a, Vernon's Texas Civil Statutes).

Revisor's Note

Section 12, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, permits purchases involving more than $2,000 only after advertising in the manner provided by "Chapter 163, Acts of the 42nd Legislature, Regular Session, 1931, as amended (Article 2368a, Vernon's Texas Civil Statutes)."  Article 2368a was amended by Chapter 641, Acts of the 69th Legislature, Regular Session, 1985, which transferred provisions relating to advertising for bids by counties to the County Purchasing Act (V.A.C.S. Article 2368a.5).  The County Purchasing Act was codified in 1987 as Subchapter C, Chapter 262, Local Government Code.  The provisions of Article 2368a relating to advertising for bids by municipalities were codified in 1987 as Chapter 252, Local Government Code.  The revised law is drafted accordingly.  In addition, throughout this chapter, the revised law omits 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. 1014.107.  BUILDINGS.  The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system.  (Acts 60th Leg., R.S., Ch. 262, Sec. 10.)

Source Law

Sec. 10.  The board of directors is hereby given complete discretion as to type of buildings (both as to number and location) required to establish and maintain an adequate hospital system.

Revisor's Note

Section 10, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, requires the board to determine the buildings required to "establish and maintain" an adequate hospital system.  The revised law omits the reference to establishing the hospital system as executed.

Revised Law

Sec. 1014.108.  EMINENT DOMAIN.  (a)  The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property located in district territory if the interest is necessary or convenient for the district to exercise a 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.  (Acts 60th Leg., R.S., Ch. 262, Sec. 16.)

Source Law

Sec. 16.  The district shall have the right and power of eminent domain for the purpose of acquiring by condemnation any and all property of any kind and character in fee simple, or any lesser interest therein, within the boundaries of the district necessary or convenient to the powers, rights, and privileges conferred by this Act, in the manner provided by the general law with respect to condemnation by counties.

Revisor's Note

(1)  Section 16, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, 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 16, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, 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.

Revised Law

Sec. 1014.109.  GIFTS AND ENDOWMENTS.  The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district.  (Acts 60th Leg., R.S., Ch. 262, Sec. 20.)

Source Law

Sec. 20.  The board of directors of the hospital district is authorized on behalf of such district to accept donations, gifts and endowments to be held in trust and administered by the board of directors for such purposes and under such directions, limitations and provisions as may be prescribed in writing by the donor not inconsistent with proper management and object of the hospital district.

Revisor's Note

Section 20, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, 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. 1014.110.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT.  (a)  The board may contract with a county or municipality located outside the district's boundaries for the care and treatment of a sick or injured person of that county or municipality.

(b)  The board may contract with this state or a federal agency for the treatment of a sick or injured person for whom this state or the agency is responsible.  (Acts 60th Leg., R.S., Ch. 262, Sec. 5(b) (part).)

Source Law

(b)  … The board of directors shall be authorized to contract with any county or incorporated municipality located outside its boundaries for the care and treatment of the sick, diseased or injured persons of any such county or municipality, and shall have the authority to contract with the State of Texas and agencies of the federal government for the treatment of sick, diseased or injured persons for whom the State of Texas or the federal government is responsible… .

Revisor's Note

(1)  Section 5(b), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, refers to an "incorporated municipality."  The revised law omits the reference to "incorporated" because under the Local Government Code all municipalities must be incorporated.

(2)  Section 5(b), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, refers to the treatment of a "sick, diseased or injured" person.  The revised law omits the reference to "diseased" because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1014.111.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient who resides in the district is admitted to a district facility, the district administrator shall have an inquiry made into the circumstances of:

(1)  the patient; and

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

(b)  If the 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 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 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 any appropriate orders.

(f)  A final order of the board may be appealed to the district court.  The substantial evidence rule applies to the appeal.  (Acts 60th Leg., R.S., Ch. 262, Sec. 19.)

Source Law

Sec. 19.  Whenever a patient residing within the district has been admitted to the facilities thereof, the administrator or manager shall cause inquiry to be made as to his circumstances and those of the relatives of such patient legally liable for his support.  If he finds that such patient or said relatives are able to pay for his care and treatment in whole or in part, an order shall be made directing such patient or said relatives to pay to the hospital district for the support of such 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 administrator or manager shall have power and authority to collect such sums from the estate of the patient or his relatives legally liable for his support in the manner provided by law for collection of expenses in the last illness of a deceased person.  If the administrator or manager finds that such patient or said relatives are not able to pay either in whole or in part for his care and treatment in such hospital, same shall become a charge upon the hospital district as to the amount of inability to pay.  Should there be any dispute as to the ability to pay or doubt in the mind of the administrator or manager, the board of directors shall hear and determine same after calling witnesses, and shall make such order or orders as may be proper.  Appeals from a final order of the board shall lie to the district court.  The substantial evidence rule shall apply.

Revised Law

Sec. 1014.112.  AUTHORITY TO SUE AND BE SUED.  The district, through the board, may sue and be sued.  (Acts 60th Leg., R.S., Ch. 262, Sec. 5(a) (part).)

Source Law

(a)  … The district through its board of directors shall have the power and authority to sue and be sued and … .

[Sections 1014.113-1014.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1014.151.  BUDGET.  The district administrator shall prepare an annual budget for approval by the board.  (Acts 60th Leg., R.S., Ch. 262, Sec. 6 (part).)

Source Law

Sec. 6.  … In addition, the administrator or manager shall prepare an annual budget for approval by the board of directors of said district. …

Revised Law

Sec. 1014.152.  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 at least 10 days before the date of the hearing.

(c)  The board must approve the budget.  (Acts 60th Leg., R.S., Ch. 262, Sec. 6 (part).)

Source Law

Sec. 6.  … A public hearing on the annual budget shall be held by the board of directors after notice of such hearing has been published one time at least 10 days before the date set therefor… .  the annual budget, and … shall be approved by the board of directors… .

Revised Law

Sec. 1014.153.  AMENDMENTS TO BUDGET.  The budget may be amended as required by circumstances.  The board must approve all amendments.  (Acts 60th Leg., R.S., Ch. 262, Sec. 6 (part).)

Source Law

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

Revisor's Note

Section 6, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, states that the board may amend the budget "from time to time."  The revised law omits the quoted language because the authority to take an action implies the authority to do so at any time.

Revised Law

Sec. 1014.154.  RESTRICTION ON EXPENDITURES.  Money may be spent only for an expense included in the budget or an amendment to the budget.  (Acts 60th Leg., R.S., Ch. 262, Sec. 6 (part).)

Source Law

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

Revised Law

Sec. 1014.155.  FISCAL YEAR.  The district operates on a fiscal year that begins on October 1 and ends on September 30.  (Acts 60th Leg., R.S., Ch. 262, Sec. 6 (part).)

Source Law

Sec. 6.  The district shall be operated on a fiscal year commencing on October 1 of each year and ending on September 30 of the following year, and … .

Revised Law

Sec. 1014.156.  ANNUAL AUDIT.  (a)  The district annually shall have an audit made of the district's financial condition.

(b)  The audit shall be open to inspection at all times at the district's principal office.  (Acts 60th Leg., R.S., Ch. 262, Sec. 6 (part).)

Source Law

Sec. 6.  [The district] … it shall cause an audit to be made of the financial condition of said district, which shall at all times, be open to inspection at the principal office of the district… .

Revised Law

Sec. 1014.157.  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 60th Leg., R.S., Ch. 262, Sec. 6 (part).)

Source Law

Sec. 6.  … As soon as practicable after the close of each fiscal year the administrator or manager shall prepare for the board a full sworn statement of all moneys belonging to the district and a full account of the disbursements of same.

Revised Law

Sec. 1014.158.  DEPOSITORY.  (a)  The board shall select one or more banks in the district to serve as a depository for district money.

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

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

(d)  Membership on the district's board of an officer or director of a bank does not disqualify the bank from being selected as a depository bank.  (Acts 60th Leg., R.S., Ch. 262, Sec. 13.)

Source Law

Sec. 13.  (a)  The board of directors of the district shall name one or more banks within its boundaries to serve as depository for the funds of the district.  All such funds shall, as derived and collected, be immediately deposited with such depository bank or banks, except that sufficient funds shall be remitted to the bank or banks for the payment of principal of and interest on the outstanding bonds of the district or other obligations assumed by it and in time that such money may be received by said bank or banks for payment on or prior to the date of maturity of such principal and interest so to be paid.  To the extent that funds in the depository bank or banks are not insured by the Federal Deposit Insurance Corporation, they shall be secured in the manner provided by law for security of county funds.

(b)  Membership on the board of directors of an officer or director of a bank shall not disqualify such bank from being designated as depository.

Revisor's Note

Section 13, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, refers to money "derived and collected."  The revised law substitutes "on receipt" for the quoted language because the terms are synonymous and the former is more commonly used.

[Sections 1014.159-1014.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Revised Law

Sec. 1014.201.  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 related to the purchase, construction, acquisition, repair, or renovation of improvements, and equipping the improvements for a hospital and the hospital system, as determined by the board.  (Acts 60th Leg., R.S., Ch. 262, Sec. 7(a) (part).)

Source Law

Sec. 7.  (a)  The board of directors of the hospital district shall have the power and authority to issue and sell its bonds in the name and upon the faith and credit of such hospital district for the purchase, construction, acquisition, repair and renovation of improvements, and equipping the same for hospitals and the hospital system, as determined by the board, and for any and all of such purposes… .

Revisor's Note

Section 7(a), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, 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 7(a) are known as "general obligation bonds," the revised law is drafted accordingly.

Revised Law

Sec. 1014.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  At the time general obligation bonds are issued by the district under Section 1014.201, the board shall impose an ad valorem tax on all property in the district subject to district taxation at a rate sufficient to create an interest and sinking fund and to pay the principal of and interest on the bonds as the bonds mature.

(b)  The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed 75 cents on each $100 valuation of taxable property in the district.  (Acts 60th Leg., R.S., Ch. 262, Sec. 7(a) (part).)

Source Law

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

Revisor's Note

Section 7(a), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, 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. 1014.203.  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 shall call the election.  The election must be held in accordance with Chapter 1251, Government Code.

(c)  The bond election order must specify:

(1)  the date of the election;

(2)  the location of the polling places;

(3)  the presiding election officers;

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

(5)  the maximum maturity of the bonds; and

(6)  the maximum interest rate of the bonds.  (Acts 60th Leg., R.S., Ch. 262, Sec. 7(a) (part).)

Source Law

(a)  … No bonds shall be issued by such hospital district … until authority by a majority of the qualified electors of the district who own taxable property therein and who have duly rendered the same for taxation voting at an election called for such purpose.  Except as provided in Section 9, such election shall be called by the board of directors and held in accordance with the provisions of Chapter 1, Title 22, Revised Civil Statutes of Texas, 1925, as amended, and, except as therein otherwise provided, shall be conducted in accordance with the general laws of Texas pertaining to elections. …  The bond election order shall specify the date of the election, the amount of bonds to be authorized, the maximum maturity thereof, the maximum rate of interest they are to bear, the place or places where the election shall be held, and the presiding officers thereof.

Revisor's Note

(1)  Section 7(a), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, refers to a majority vote of the qualified electors.  The revised law omits "qualified" as unnecessary in this context because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "qualified" voters who are residents of the territory covered by the election to vote in an election.  The revised law substitutes "voter" for "elector" because the former is the term used in the Election Code.

(2)  Section 7(a), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, refers to electors who "own taxable property therein and who have duly rendered the same for taxation." The revised law omits the quoted language because in Hill v. Stone, 421 U.S. 289, 95 S. Ct. 1637 (1975), the United States Supreme Court determined that property ownership as a qualification for voting is an unconstitutional denial of equal protection.

(3)  Section 7(a), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, refers to an election held as provided by "Chapter 1, Title 22, Revised Civil Statutes of Texas, 1925, as amended." The election provisions of Chapter 1, Title 22, Revised Statutes, are revised as Chapter 1251, Government Code, and the revised law is drafted accordingly.

(4)  Section 7(a), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, provides that "[e]xcept as provided in Section 9," the election shall be called by the board. As explained in the revisor's note at the end of Subchapter A, Section 9, Chapter 262, is executed.  The revised law therefore omits the reference.  Section 7(a) also provides that "except as therein otherwise provided, [an election under Section 7(a)] shall be conducted in accordance with the general laws of Texas pertaining to elections."  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 in Chapter 1251, Government Code (the revision of the election provisions of Chapter 1, Title 22, Revised Statutes), would apply by its own terms.

(5)  Section 7(a), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, requires the district to make provisions for defraying the costs of elections.  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:

(a)  … The district shall make provisions for defraying the costs of all elections called and held under the provisions of this Act… .

Revised Law

Sec. 1014.204.  EXECUTION OF GENERAL OBLIGATION BONDS.  (a)  The board president shall execute the general obligation bonds in the district's name.

(b)  The board secretary shall attest the bonds as provided by Chapter 618, Government Code.  (Acts 60th Leg., R.S., Ch. 262, Sec. 7(a)  (part).)

Source Law

(a)  … Such bonds shall be executed in the name of the hospital district and in its behalf by the president of the board and attested by the secretary, as provided by Chapter 204, Acts of the 57th Legislature, Regular Session, 1961 (Article 717j-1, Vernon's Texas Civil Statutes), and … .

Revisor's Note

Section 7(a), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, refers to Chapter 204, Acts of the 57th Legislature, Regular Session, 1961 (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.

Revised Law

Sec. 1014.205.  REVENUE OR SPECIAL OBLIGATION BONDS.  (a)  The board may issue and sell revenue or special obligation bonds for the purposes provided by Section 1014.201.

(b)  Special obligation bonds must be payable from the revenue of the district's entire hospital system, including that portion originally acquired and all past or future extensions, additions, or replacements, excluding taxes, after deducting the cost of maintaining and operating the system.  For purposes of this subsection, the cost of maintaining and operating the system:

(1)  may include only the items set forth and defined in the resolution authorizing the bond issuance; and

(2)  may not include the cost of providing medical or hospital care for the district's needy inhabitants.

(c)  A cost described by Subsection (b)(2) is a maintenance and operating expense for budget and tax purposes.

(d)  The district may issue revenue bonds without an election.

(e)  Revenue bonds may be additionally secured by:

(1)  a mortgage or deed of trust on real property;

(2)  a chattel mortgage on the district's personal property; or

(3)  both.

(f)  The board may issue bonds that are a junior lien on the district's net revenue or property and additional parity bonds under conditions specified in the bond resolution or trust indenture.

(g)  Money for the payment of not more than two years' interest on the bonds and an amount the board estimates will be required for maintenance and operating expenses during the first two years of operation may be set aside out of the proceeds from the sale of the bonds.

(h)  A revenue bond issued by the district must contain the following provision:  "The holder of the bond may not demand payment of this bond or appurtenant coupons out of money raised or to be raised by taxation."  (Acts 60th Leg., R.S., Ch. 262, Secs. 8(a), (b) (part), (c).)

Source Law

Sec. 8.  (a)  In addition to the power to issue bonds payable from ad valorem taxes, the board of directors shall have the power to issue and sell revenue or special obligation bonds of the district for the identical purpose or purposes provided in Section 7.  Such special obligation bonds shall be payable from the revenues (excluding taxes) of the entire hospital system of the district (including that portion originally acquired and all past or future extensions, additions or replacements thereof) after deduction of the cost of maintaining and operating the system.  The maintenance and operating expenses of the system which shall be charged against the revenues of the system shall include only such items as are set forth and defined in the resolution authorizing the issuance of the bonds.  The cost of providing medical or hospital care (either or both) for needy inhabitants of the district shall not be classed as a maintenance and operating expense for the purpose of this section, but shall be so classed for budget and tax purposes.

(b)  Revenue bonds of the district may be issued without the necessity of an election, and such bonds may be additionally secured by a mortgage or deed of trust on real property, or by a chattel mortgage on its personal property, or both.  Bonds constituting a junior lien on the net revenues or properties, as well as additional parity bonds, may be issued under conditions specified in the bond resolution or trust indenture.  Money for the payment of not more than two years' interest on the bonds and an amount estimated by the board to be required for maintenance and operating expenses during the first year of operation may be set aside for such purposes out of the proceeds from the sale of the bonds… .

(c)  Each revenue bond issued by the district shall contain the following provision:

"The holder hereof shall never have the right to demand payment of this bond or appurtenant coupons out of money raised or to be raised by taxation."

Revised Law

Sec. 1014.206.  CHARGES FOR SERVICES RENDERED.  If the board issues revenue bonds, the board shall charge and collect rates for services rendered by the hospital system that are sufficient to:

(1)  pay the maintenance and operating expenses described by Section 1014.205;

(2)  pay the principal and interest on the bonds as each becomes due; and

(3)  create and maintain a bond reserve fund and other funds as provided in the bond resolution or trust indenture.  (Acts 60th Leg., R.S., Ch. 262, Sec. 8(b) (part).)

Source Law

(b)  … If revenue bonds are issued, it shall be the duty of the board of directors to charge and collect sufficient rates for services rendered by the hospital system to pay the aforesaid maintenance and operating expenses, to pay the principal and interest on such bonds as they respectively become due, and to create and maintain a bond reserve fund and other funds as provided in the bond resolution or trust indenture.

Revised Law

Sec. 1014.207.  REFUNDING BONDS.  (a)  The board may, without an election, issue refunding bonds to refund any 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 outstanding bonds; or

(2)  exchanged wholly or partly for not less than a similar principal amount of the outstanding bonds.  (Acts 60th Leg., R.S., Ch. 262, Secs. 7(a) (part), (b) (part).)

Source Law

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

(b)  The bonds of the district may be issued for the purpose of refunding and paying off any bonds issued or assumed by such district.  Such refunding bonds may be sold and the proceeds thereof applied to the payment of outstanding bonds, or may be exchanged in whole or in part for not less than a like principal amount of such outstanding bonds, … .

Revisor's Note

(1)  Section 7(b), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, provides that refunding bonds must bear interest at the same or a lower rate than the bonds refunded unless a savings is shown.  The revised law omits the provision 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, Government Code.  Section 1204.006(a) permits a public agency, including a hospital district, to issue bonds at a net effective interest rate of 15 percent or less.  Section 1204.006(a) applies to district bonds by application of Section 1204.001, Government Code.  The omitted law reads:

(b)  … provided that, if refunding bonds are to be exchanged for a like amount of outstanding bonds, such refunding bonds shall bear interest at the same or lower rate than borne by the bonds refunded, unless it is shown mathematically that a saving will result in the total amount of interest to be paid on such refunding bonds, and … .

(2)  Section 7(b), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, provides that refunding bonds must be issued and payments made in the manner specified by Chapter 503, Acts of the 54th Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes).  Article 717k was codified in 1999 as Chapter 1207, Government Code.  The revised law omits the provision because Chapter 1207, Government Code, applies to the district by its own terms under Section 1207.001, Government Code.  The omitted law reads:

(b)  … provided further that if such refunding bonds are to be sold and the proceeds thereof applied to the payment of any such outstanding bonds or other refundable indebtedness, same shall be issued and payments made in the manner specified by Chapter 503, Acts of the 54th Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes).

Revised Law

Sec. 1014.208.  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 60th Leg., R.S., Ch. 262, Sec. 11 (part).)

Source Law

Sec. 11.  … any bonds issued by it and their transfer, and the issuance therefrom, including any profits made in the sale thereof, shall at all times be free from taxation by the state or any municipality or political subdivision thereof.

Revisor's Note

Section 11, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, refers to "any municipality or political subdivision."  The revised law omits the reference to "municipality" because that term is included in the meaning of "political subdivision" of this state.

Revisor's Note

(End of Subchapter)

(1)  Sections 7(a) and 8(d), Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, provide that district bonds are subject to the law governing counties that relates to bond approval by the attorney general and registration of the bonds by the comptroller.  The revised law omits the provision as superseded by Chapter 1202, Government Code (enacted as Article 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987).  Section 1202.003(a), Government Code, requires bonds to be submitted to the attorney general.  Section 1202.003(b), Government Code, provides for approval of the bonds by the attorney general and requires the attorney general to submit the approved bonds to the comptroller for registration.  Section 1202.005, Government Code, requires registration of the bonds by the comptroller. Chapter 1202, Government Code, applies to district bonds by application of Section 1202.001, Government Code.  The omitted law reads:

Sec. 7.  (a) … [Such bonds] … shall be subject to the same requirements in the matter of approval by the Attorney General of Texas and registration by the Comptroller of Public Accounts of Texas as are by law provided for approval and registration of bonds issued by counties… .

[Sec. 8]

(d)  Except as in this section provided, revenue bonds shall be executed, submitted to the attorney general for approval as to legality, and upon being so approved, be registered by the comptroller of public accounts in the manner and with like effect as provided in Section 7 relating to bonds payable from ad valorem taxes.

(2)  Section 15, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, provides that district bonds are authorized investments for certain entities.  The revised law omits that 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 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 of the district shall be and are hereby declared to be legal and authorized investments of banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, fiduciaries, trustees, and sinking funds of cities, towns, villages, counties, school districts, or other political subdivisions of the State of Texas, and for all public funds of the State of Texas or its agencies including the State Permanent School Fund… .

(3)  Section 15, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, effectively provides that district bonds may secure deposits of public funds of this state or political subdivisions of this state.  The revised law omits the provisions as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions.  The omitted law reads:

Sec. 15.  … Such bonds shall be eligible to secure deposit of public funds of the State of Texas and public funds of cities, towns, villages, counties, school districts or other political subdivisions, or corporations of the State of Texas, and such bonds shall be lawful and sufficient security for said deposits to the extent of their value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1014.209-1014.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Revised Law

Sec. 1014.251.  IMPOSITION OF AD VALOREM TAX.  (a)  The board shall impose a tax on all property in the district subject to district taxation.

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

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

(2)  the maintenance and operating expenses of the district.  (Acts 60th Leg., R.S., Ch. 262, Secs. 3(a) (part), 14 (part).)

Source Law

Sec. 3.  (a)  … [annual taxes] … of taxable property within such district … .

Sec. 14.  The board of directors shall levy annually a tax … for the purpose of paying (1) the indebtedness assumed or issued by the district; and (2) the maintenance and operating expenses of the district… .

Revised Law

Sec. 1014.252.  TAX RATE.  (a)  The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district.

(b)  In setting the tax rate, the board shall consider the income of the district from sources other than taxation.  (Acts 60th Leg., R.S., Ch. 262, Secs. 3(b) (part), 14 (part).)

Source Law

[Sec. 3]

(b)  … [hospital district shall be created with authority to levy annual taxes] at a rate not to exceed 75 cents on the $100 valuation of taxable property … .

Sec. 14.  [The board of directors shall levy annually a tax] of not to exceed the amount hereinabove permitted … .  In setting such tax rate the board shall take into consideration the income of the district from sources other than taxation… .

Revisor's Note

Section 14, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, requires the board to levy the tax and to certify the tax rate to the county assessor-collector.  The revised law omits that provision because Section 26.05(a), Tax Code, requires the governing body of a taxing unit to adopt a tax rate for the current tax year and notify the tax assessor of that rate.  The omitted law reads:

Sec. 14.  … Upon determination of the amount of tax required to be levied, the board shall make such levy and certify the same to the tax assessor-collector of Collingsworth County, Texas.

Revised Law

Sec. 1014.253.  TAX ASSESSOR-COLLECTOR.  The tax assessor-collector of Collingsworth County shall assess and collect taxes imposed by the district.  (Acts 60th Leg., R.S., Ch. 262, Sec. 17 (part).)

Source Law

Sec. 17.  … The tax assessor-collector of Collingsworth County shall be charged and required to accomplish the assessment and collection of all taxes levied by and on behalf of the district. …

Revisor's Note

(1)  Section 17, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, refers to the assessment and collection of district taxes on county tax values.  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 appraisal of property for taxation by a taxing unit, including a hospital district.  The omitted law reads:

Sec. 17.  The district taxes shall be assessed and collected on county tax values in the same manner as provided by law with relation to county taxes upon all taxable property within said district, subject to hospital district taxation. …

(2)  Section 17, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, 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 assessor-collector to post an additional bond.  The omitted law reads:

Sec. 17.  … The bond of the county tax assessor-collector shall stand as security for the proper performance of his duties as assessor-collector of the district, or if in the judgment of the board of directors it is necessary, additional bond payable to the district may be required… .

(3)  Section 17, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, 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:

Sec. 17.  …  The assessor-collector of taxes shall charge and deduct from payments to the hospital district the dues for assessing and collecting the taxes at a rate of not to exceed one percent for assessing, and one percent for collecting, each based on the amount collected, but in no event shall such fee to the tax assessor-collector exceed $5,000 in any one calendar year.  Such fees shall be deposited in the officers' salary fund of the county and reported as fees of the office of the county assessor-collector. …

(4)  Section 17, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, 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:

Sec. 17.  … 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 the county. …

(5)  Section 17, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, provides that tax revenue shall be deposited in the district's depository.  The revised law omits that 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:

Sec. 17.  …  The residue of tax collections, after deduction of discounts and fees for assessing and collecting, shall be deposited in the district's depository.

…

(6)  Section 17, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, provides that the county 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 the government to administer the assessment, collection, and enforcement of laws in conformity with that title.  The omitted law reads:

Sec. 17.  … In all matters pertaining to the assessment, collection, and enforcement of taxes for the district, the county tax assessor-collector shall be authorized to act in all respects according to the laws of the State of Texas relating to state and county taxes.

Revisor's Note

(End of Subchapter)

Section 17, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, provides that the board may impose taxes for the entire year in which the district is established.  The revised law omits the provision as executed.  The omitted law reads:

Sec. 17.  … The board of directors shall have the authority to levy the aforesaid tax for the entire year in which said district is established as the result of the election herein provided… .

Revisor's Note

(End of Chapter)

(1)  Section 2, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, requires the district to assume outstanding indebtedness incurred by a municipality or by Collingsworth County for hospital purposes.  The revised law omits the provision as executed.  The omitted law reads:

Sec. 2.  [Such district] …  shall assume the outstanding indebtedness which shall have been incurred by any city or town or by Collingsworth County for hospital purposes prior to the creation of said district.

(2)  Section 23, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, 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. 23.  If any of the provisions of this Act, or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and to this extent the provisions of this Act are declared to be severable.

(3)  Section 24, Chapter 262, Acts of the 60th Legislature, Regular Session, 1967, 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 the provision as executed.  The omitted law reads:

Sec. 24.  Proof of publication of the notice required in the enactment hereof under the provisions of Section 9, Article IX, of the Texas Constitution has been made in the manner and form provided by law pertaining to the enactment of local and special laws, and such notice is hereby found and declared proper and sufficient to satisfy such requirements.