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81C10(4) MCK

81C10(4) MCK

 

CHAPTER 1083. NORTH WHEELER COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1083.001.  DEFINITIONS ...............................  3

Sec. 1083.002.  AUTHORITY FOR CREATION ....................  3

Sec. 1083.003.  ESSENTIAL PUBLIC FUNCTION .................  3

Sec. 1083.004.  DISTRICT TERRITORY ........................  4

Sec. 1083.005.  DISTRICT SUPPORT AND MAINTENANCE NOT

                  STATE OBLIGATION ........................  4

Sec. 1083.006.  RESTRICTION ON STATE FINANCIAL

                  ASSISTANCE ..............................  4

[Sections 1083.007-1083.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Sec. 1083.051.  BOARD ELECTION; TERM ......................  6

Sec. 1083.052.  NOTICE OF ELECTION ........................  8

Sec. 1083.053.  BALLOT PETITION ...........................  9

Sec. 1083.054.  QUALIFICATIONS FOR OFFICE .................  9

Sec. 1083.055.  BOND; RECORD OF BOND AND OATH OR

                  AFFIRMATION OF OFFICE ................... 11

Sec. 1083.056.  BOARD VACANCY ............................. 12

Sec. 1083.057.  OFFICERS .................................. 12

Sec. 1083.058.  COMPENSATION .............................. 12

Sec. 1083.059.  VOTING REQUIREMENT ........................ 13

Sec. 1083.060.  DISTRICT ADMINISTRATOR; ASSISTANT

                  ADMINISTRATOR ........................... 13

Sec. 1083.061.  GENERAL DUTIES OF DISTRICT

                  ADMINISTRATOR ........................... 14

Sec. 1083.062.  EMPLOYEES ................................. 14

Sec. 1083.063.  RETIREMENT PROGRAM ........................ 15

[Sections 1083.064-1083.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1083.101.  DISTRICT RESPONSIBILITY ................... 15

Sec. 1083.102.  RESTRICTION ON POLITICAL SUBDIVISION

                  TAXATION AND DEBT ....................... 16

Sec. 1083.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION ... 17

Sec. 1083.104.  HOSPITAL SYSTEM ........................... 17

Sec. 1083.105.  RULES ..................................... 18

Sec. 1083.106.  PURCHASING AND ACCOUNTING PROCEDURES ...... 18

Sec. 1083.107.  EMINENT DOMAIN ............................ 19

Sec. 1083.108.  GIFTS AND ENDOWMENTS ...................... 20

Sec. 1083.109.  CONTRACTS WITH GOVERNMENTAL ENTITIES

                  FOR CARE AND TREATMENT .................. 20

Sec. 1083.110.  PAYMENT FOR TREATMENT; PROCEDURES ......... 21

Sec. 1083.111.  AUTHORITY TO SUE AND BE SUED .............. 22

[Sections 1083.112-1083.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1083.151.  BUDGET .................................... 23

Sec. 1083.152.  FISCAL YEAR ............................... 23

Sec. 1083.153.  AUDIT ..................................... 23

Sec. 1083.154.  FINANCIAL REPORT .......................... 24

Sec. 1083.155.  DEPOSITORY ................................ 24

[Sections 1083.156-1083.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1083.201.  GENERAL OBLIGATION BONDS .................. 25

Sec. 1083.202.  TAX TO PAY GENERAL OBLIGATION BONDS ....... 26

Sec. 1083.203.  GENERAL OBLIGATION BOND ELECTION .......... 27

Sec. 1083.204.  EXECUTION OF GENERAL OBLIGATION BONDS ..... 29

Sec. 1083.205.  REFUNDING BONDS ........................... 30

Sec. 1083.206.  BONDS EXEMPT FROM TAXATION ................ 30

[Sections 1083.207-1083.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Sec. 1083.251.  IMPOSITION OF AD VALOREM TAX .............. 34

Sec. 1083.252.  TAX RATE .................................. 35

Sec. 1083.253.  TAX ASSESSOR-COLLECTOR .................... 35

CHAPTER 1083. NORTH WHEELER COUNTY HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 1083.001.  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 North Wheeler 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. 1083.002.  AUTHORITY FOR CREATION.  The North Wheeler 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 58th Leg., R.S., Ch. 260, Sec. 1 (part).)

Source Law

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

Revised Law

Sec. 1083.003.  ESSENTIAL PUBLIC FUNCTION.  The district performs an essential public function in carrying out the purposes of this chapter.  (Acts 58th Leg., R.S., Ch. 260, Sec. 8 (part).)

Source Law

Sec. 8.  In carrying out the purposes of this Act the District will be performing an essential public function and … .

Revised Law

Sec. 1083.004.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of County Commissioners Precincts 1 and 2 of Wheeler County, Texas, as those boundaries existed on January 1, 1963.  (Acts 58th Leg., R.S., Ch. 260, Sec. 1 (part).)

Source Law

Sec. 1.  … [North Wheeler County Hospital District] … as created shall have boundaries coextensive with the boundaries of Commissioners' Precincts 1 and 2 of Wheeler County, as constituted on January 1, 1963, and … .

Revised Law

Sec. 1083.005.  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 58th Leg., R.S., Ch. 260, Sec. 18 (part).)

Source Law

Sec. 18.  The support and maintenance of the North Wheeler County Hospital District shall never become a charge against or obligation of the State of Texas, … .

Revised Law

Sec. 1083.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.  The legislature may not make a  direct appropriation for the construction, maintenance, or improvement of a district facility.  (Acts 58th Leg., R.S., Ch. 260, Sec. 18 (part).)

Source Law

Sec. 18.  … nor shall any direct appropriation be made by the Legislature for the construction, maintenance or improvement of any of the facilities of such District.

Revisor's Note

(End of Subchapter)

Sections 3 and 4, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, 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.  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 Wheeler County upon its own motion and shall be called by said Commissioners Court upon presentation of a petition therefor signed by at least fifty (50) qualified property taxpaying electors of the District. Such election shall be held not less than thirty (30) nor more than sixty (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 said District, once a week for two (2) consecutive weeks, the first publication to appear at least fourteen (14) days prior to the date established for the election. The failure of any such election shall not operate to prohibit the calling and holding of subsequent elections for the same purpose. At said election there shall be submitted to the qualified property taxpaying electors of said District the proposition of whether or not North Wheeler County Hospital District shall be created … 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. The ballots shall have printed thereon the following:

"FOR the creation of a hospital district; providing for the levy of a tax not to exceed seventy-five cents (75¢) on the One Hundred Dollars ($100) valuation, and using Wheeler County, Texas, values and the Wheeler County, Texas, tax roll.", and

"AGAINST the creation of a hospital district; providing for the levy of a tax not to exceed seventy-five cents (75¢) on the One Hundred Dollars ($100) valuation, and using Wheeler County, Texas, values and the Wheeler County, Texas, tax roll."

Sec. 4.  Within ten (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, … .

[Sections 1083.007-1083.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1083.051.  BOARD ELECTION; TERM.  (a)  The district is governed by a board of five directors elected from single-member voting precincts.

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

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

(2)  a directors' election shall be held each year on the date that the election of public school trustees is held.  (Acts 58th Leg., R.S., Ch. 260, Sec. 4 (part).)

Source Law

Sec. 4.  … such District shall be governed by a Board of Directors to consist of five (5) members, … . For purposes of electing Directors, the Hospital District shall be divided into five (5) voting precincts … .  Each voting precinct of the Hospital District shall be represented by one (1) Director … . The regular term of each Director shall be for two (2) years but after the first called election, the Directors by lot shall select three (3) Directors for two (2) year terms, and two (2) Directors for one (1) year terms. …

A regular election of Directors shall be held on the same day that the election of trustees of public schools is held each year and … .

Revisor's Note

(1)  Section  4, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, prescribes the terms of the initial board of 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 the initial directors as executed but revises the establishment of a board consisting of five directors serving staggered two-year terms.

(2)  Section 4, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, establishes that directors serve staggered 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 for the convenience of the reader.

(3)  Section 4, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, prescribes the procedures for dividing the hospital district into five voting precincts and electing the initial directors.  The revised law omits the provision as executed.  The omitted law reads:

Sec. 4.  …  Not less than fifteen (15) nor more than twenty-five (25) days after the District is declared established and created the Commissioners Court shall call an election for the five (5) Directors who will serve as the District's first Board of Directors, this election to be held on a date not more than thirty (30) days after the day of the passage of the Commissioners Court order calling same but on such date as will permit publication of an election notice in a newspaper of general circulation in Wheeler County one (1) time not less than ten (10) days prior to such election date. Any candidate desiring to be voted upon as a first Director shall, no later that three (3) days prior to the day of passage of the Commissioners Court order calling the election, present a petition to that Court signed by such candidate and not less than five (5) qualified voters residing in the candidate's voting precinct, requesting that his name be placed upon the official ballot… . [For the purpose of electing Directors, the Hospital District shall be divided into five (5) voting precincts] which shall be made up of the parts of the following school districts which lie within the Hospital District, using school district boundaries as of January 1, 1963, as follows: Allison, Kelton, Briscoe, Wheeler plus any part of Sections 14 and 15 of Block 27, H & G.N. Survey that are within the boundaries of the Hospital District, and Mobeetie plus any part of Sections 69 and 70 of Block 24 of H and G.N. Survey that are within the boundaries of the Hospital District. Any territory within the Hospital District, but not within one of the five (5) school districts, shall be added to the nearest Hospital District voting precinct by the action of the Board of Directors of the Hospital District… . The first year terms shall be ended on the date of the first annual election as hereinafter provided… .

(4)  Section 4, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, provides for the eligibility of voters to vote in an election for a director.  The revised law omits that provision 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 omitted law reads:

Sec. 4.  …  All qualified electors residing within the District shall be eligible to vote for Directors; provided, however, that such eligible elector can vote only to select a Director from the Hospital District voting precinct of the residence of such elector.

Revised Law

Sec. 1083.052.  NOTICE OF ELECTION.  At least 10 days before the date of a directors' election, notice of the election shall be published one time in a newspaper of general circulation in Wheeler County.  (Acts 58th Leg., R.S., Ch. 260,  Sec. 4 (part).)

Source Law

Sec. 4.  … notice of such election shall be published in a newspaper of general circulation in the County one (1) time at least ten (10) days prior to the date of election… .

Revisor's Note

Section 4, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, requires notice of a directors' election to be published in "the County."  Throughout this chapter, the revised law substitutes "Wheeler County" for the quoted language because Wheeler County is the county in which the district is located.

Revised Law

Sec. 1083.053.  BALLOT PETITION.  A person seeking 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 not fewer than five registered voters who reside in the voting precinct the candidate seeks to represent; and

(2)  filed at least 25 days before the date of the election.  (Acts 58th Leg., R.S., Ch. 260, Sec. 4 (part).)

Source Law

Sec. 4.  …  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 five (5) qualified voters residing in the candidate's voting precinct 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 such secretary at least twenty-five (25) days prior to the date of election… .

Revisor's Note

Section 4, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, 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 "registered voter."

Revised Law

Sec. 1083.054.  QUALIFICATIONS FOR OFFICE.  A person may not be elected or appointed as a director unless the person:

(1)  is a resident of the voting precinct the person is elected or appointed to represent;

(2)  owns property in the district subject to taxation; and

(3)  is more than 18 years of age at the time of election or appointment.  (Acts 58th Leg., R.S., Ch. 260, Sec. 4 (part).)

Source Law

Sec. 4.  …  [Each voting precinct of the Hospital District shall be represented by one (1) Director] who must reside within the voting precinct… . No person shall be appointed or elected as a member of the Board of Directors of said Hospital District unless he is a resident of the voting precinct thereof and owns property subject to taxation therein and unless at the time of such election or appointment he shall be more than twenty-one (21) years of age… .

Revisor's Note

(1)  Section 4, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, provides that "such" director must meet certain qualifications at the time of election or appointment "hereunder."  It is clear from the context of that provision that those qualifications were meant to apply only to an initial director. Therefore, the revised law omits the provision as executed. The omitted law reads:

Sec. 4.  … Each such Director must at the time of his election or appointment hereunder, be a resident of the District, own property subject to taxation therein and be more than twenty-one (21) years of age… .

(2)  Section 4, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, states that a person must be "more than twenty-one (21) years of age" at the time of election or appointment to qualify for election or appointment as a director.  The revised law substitutes "more than 18 years of age" for the quoted language because Chapter 129, Civil Practice and Remedies Code, establishes 18 years as the age of majority in this state.  Section 129.002, Civil Practice and Remedies Code, provides that a law adopted before August 27, 1973, that extends a right, privilege, or obligation to an individual on the basis of a minimum age of 19, 20, or 21 years shall be interpreted as prescribing a minimum age of 18 years.  Section 4 was enacted in 1963 and has not been amended.

Revised Law

Sec. 1083.055.  BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF OFFICE.  (a)  Each director shall execute a good and sufficient commercial bond for $1,000 that is:

(1)  payable to the district; and

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

(b)  The district shall pay for a director's bond.

(c)  Each director's bond and constitutional oath or affirmation of office shall be deposited with the district's depository bank for safekeeping.  (Acts 58th Leg., R.S., Ch. 260, Sec. 4 (part).)

Source Law

Sec. 4.  …  Each member of the Board of Directors shall qualify by executing the constitutional oath of office and shall execute a good and sufficient commercial bond for One Thousand Dollars ($1,000) payable to said District conditioned upon the faithful performance of his duties, and such oaths and bonds shall be deposited with the depository bank of the District for safekeeping. The cost of this bond shall be an expense of the Hospital District.

Revisor's Note

Section 4, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, requires each director to take the constitutional oath of office.  The revised law omits that provision because Section 1, Article XVI, Texas Constitution, requires all officers in this state to take the oath (or affirmation) before assuming office.  Additionally, the revised law provides for the deposit of the constitutional affirmation, as well as the constitutional oath, because Section 1, Article XVI, Texas Constitution, permits an officer in this state to take either the constitutional oath or affirmation.

Revised Law

Sec. 1083.056.  BOARD VACANCY.  (a)  If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term.

(b)  If the number of directors is reduced to fewer than three for any reason, the remaining directors shall immediately call a special election to fill the vacancies.  If the remaining directors do not call the election, a district court, on application of a district voter or taxpayer, may order the directors to hold the election.  (Acts 58th Leg., R.S., Ch. 260, Sec. 4 (part).)

Source Law

Sec. 4.  … All vacancies in the office of Director shall be filled for the unexpired term by appointment of the remainder of the Board of Directors.  In the event the number of Directors shall be reduced to less than three (3) for any reason, the remaining Directors shall immediately call a special election to fill said vacancies, and upon failure to do so a District Court may, upon application of any voter or taxpayer of the District, issue a mandate requiring that such election be ordered by the remaining Directors.

Revised Law

Sec. 1083.057.  OFFICERS.  The board shall elect from among its members a president, a vice president, and a secretary.  (Acts 58th Leg., R.S., Ch. 260, Sec. 4 (part).)

Source Law

Sec. 4.  …

The Board of Directors shall organize by electing one (1) of their number as president, and one (1) as vice president and one (1) as secretary… .

Revised Law

Sec. 1083.058.  COMPENSATION.  A director serves without compensation.  (Acts 58th Leg., R.S., Ch. 260, Sec. 4 (part).)

Source Law

Sec. 4.  … Board of Directors … who shall serve without pay… .

Revised Law

Sec. 1083.059.  VOTING REQUIREMENT. A concurrence of three directors is sufficient in any matter relating to district business. (Acts 58th Leg., R.S., Ch. 260, Sec. 4 (part).)

Source Law

Sec. 4.  … [Board of Directors] … a concurrence of three (3) shall be sufficient in all matters pertaining to the business of the District… .

Revisor's Note

Section 4, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, provides that three directors constitute a quorum. The revised law omits that provision because it duplicates Section 311.013, Government Code (Code Construction Act), which provides that a quorum of a public body is a majority of the number of members fixed by statute. The omitted law reads:

Sec. 4.  … Any three (3) members of the Board of Directors shall constitute a quorum and … .

Revised Law

Sec. 1083.060.  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 serve at the will of the board and are entitled to the compensation determined by the board.

(d)  On assuming the duties of district administrator, the administrator shall execute a bond payable to the district in an amount set by the board of not less than $10,000 that:

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

(2)  contains other conditions the board may require. (Acts 58th Leg., R.S., Ch. 260, Sec. 5 (part).)

Source Law

Sec. 5.  … 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 serve at the will of the Board and shall receive such compensation as may be fixed by the Board.  The Administrator or Manager shall, upon assuming his duties, execute a bond payable to the Hospital District in an amount to be set by the Board of Directors, in no event less than Ten Thousand Dollars ($10,000), 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, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, provides that the board shall appoint a person as the "Administrator or Manager" of the district and may appoint an "Assistant to the Administrator or Manager." Throughout this chapter, the revised law omits "manager" because, in context, "manager" is included in the meaning of "administrator" and "administrator" is the term used by the district.

Revised Law

Sec. 1083.061.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.  Subject to the limitations prescribed by the board, the district administrator shall:

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

(2)  direct the affairs of the district.  (Acts 58th Leg., R.S., Ch. 260, Sec. 5 (part).)

Source Law

Sec. 5.  … The Administrator or Manager shall supervise all the work and activities of the District and shall have general direction of the affairs of the District subject to such limitations as may be prescribed by the Board… .

Revised Law

Sec. 1083.062.  EMPLOYEES. The board may employ any doctors, technicians, nurses, and other employees as considered necessary for the efficient operation of the district or may provide that the district administrator has the authority to employ those persons. (Acts 58th Leg., R.S., Ch. 260, Sec. 5 (part).)

Source Law

Sec. 5.  … The Board of Directors shall have the authority to employ such doctors, technicians, nurses and other employees of every kind and character as may be deemed necessary for the efficient operation of the District or may provide that the Administrator or Manager shall have the authority to employ such persons… .

Revised Law

Sec. 1083.063.  RETIREMENT PROGRAM. The board may enter into any contract or agreement with this state or the federal government that is required to establish or continue a retirement program for the benefit of the district's employees. (Acts 58th Leg., R.S., Ch. 260, Sec. 5 (part).)

Source Law

Sec. 5.  … 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 1083.064-1083.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Revised Law

Sec. 1083.101.  DISTRICT RESPONSIBILITY. The district has full responsibility for:

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

(2)  providing medical and hospital care for the district's needy inhabitants.  (Acts 58th Leg., R.S., Ch. 260, Secs. 2 (part), 17 (part).)

Source Law

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

Sec. 17.  … the said North Wheeler County Hospital District shall assume full responsibility for the operation of all hospital facilities for the furnishing of medical and hospital care of indigent persons.

Revisor's Note

Sections 2 and 17, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, 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. 1083.102.  RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT.  Wheeler County or another political subdivision, other than the district, may not impose a tax or issue bonds or other obligations for hospital purposes for medical treatment of indigent persons in the district.  (Acts 58th Leg., R.S., Ch. 260, Sec. 17 (part).)

Source Law

Sec. 17.  After creation of North Wheeler County Hospital District, neither Wheeler County or no other municipality or political subdivision shall thereafter issue bonds or other evidences of indebtedness or levy taxes for hospital purposes for medical treatment of indigent persons within said District and … .

Revisor's Note

(1)  Section 17, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, provides that "[a]fter creation of North Wheeler County Hospital District," certain political subdivisions may not levy taxes or issue bonds. The revised law omits the quoted language as executed. In addition, throughout this chapter, the revised law substitutes "impose" for "levy" because, in this context, the terms are synonymous and the former is more commonly used.

(2)  Section 17, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, refers to a "municipality or political subdivision." Throughout this chapter, the revised law omits references to "municipality" in this context because "municipality" is included in the meaning of "political subdivision."

(3)  Section 17, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, provides that Wheeler County or any other political subdivision 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.

Revised Law

Sec. 1083.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the district's hospitals and hospital system.  (Acts 58th Leg., R.S., Ch. 260, Sec. 5 (part).)

Source Law

Sec. 5.  The Board of Directors shall manage, control and administer the hospitals and hospital system of the District. …

Revised Law

Sec. 1083.104.  HOSPITAL SYSTEM. The district shall provide for:

(1)  the establishment of a hospital or hospital system in the district by:

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

(B)  equipping the buildings and improvements; and

(2)  the administration of the hospital system for hospital purposes.  (Acts 58th Leg., R.S., Ch. 260, Sec. 2 (part).)

Source Law

Sec. 2.  The District herein authorized to be created shall provide for the establishment of a hospital or hospital system within said District by the purchase, construction, acquisition, repair or renovation of buildings and improvements and the equipping of same and the administration thereof for hospital purposes… .

Revised Law

Sec. 1083.105.  RULES. The board may adopt rules for the operation of the district and as required to administer this chapter.  (Acts 58th Leg., R.S., Ch. 260, Secs. 5 (part), 9 (part).)

Source Law

Sec. 5.  … 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. 9.  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 and 9, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, provide that the board may "promulgate rules and regulations" to govern the district and "make such rules and regulations" as required 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. 1083.106.  PURCHASING AND ACCOUNTING PROCEDURES. The board may prescribe:

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

(2)  all accounting and control procedures.  (Acts 58th Leg., R.S., Ch. 260, Sec. 9 (part).)

Source Law

Sec. 9.  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 … .

Revised Law

Sec. 1083.107.  EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property located in district territory if the interest is necessary or convenient for the district to exercise a 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 58th Leg., R.S., Ch. 260, Sec. 12.)

Source Law

Sec. 12.  North Wheeler County Hospital District created hereunder 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 General Law with respect to condemnation.

Revisor's Note

(1)  Section 12, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, 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 phrase "may exercise the power of eminent domain to acquire [property]" because the phrases have the same meaning and the latter phrase is consistent with modern usage in laws relating to eminent domain.

(2)  Section 12, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, 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 the quoted language a reference to Chapter 21, Property Code, because that is the general law governing eminent domain for governmental entities.

Revised Law

Sec. 1083.108.  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 58th Leg., R.S., Ch. 260, Sec. 15.)

Source Law

Sec. 15.  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 15, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, 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. 1083.109.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT. (a) The board may contract with a county or municipality located outside Wheeler County 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 federal government is responsible.  (Acts 58th Leg., R.S., Ch. 260, Sec. 5 (part).)

Source Law

Sec. 5.  … Such Board shall be authorized to contract with any county or incorporated municipality located outside Wheeler County 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 treatment of sick, diseased or injured persons for whom the State of Texas or the Federal Government are responsible. …

Revisor's Note

(1)  Section 5, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, 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, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, refers to the treatment of a "sick, diseased or injured" person. The revised law omits the references to "diseased" because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1083.110.  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 estate of the patient, 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.  (Acts 58th Leg., R.S., Ch. 260, Sec. 14.)

Source Law

Sec. 14.  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 the 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 the 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.

Revised Law

Sec. 1083.111.  AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued.  (Acts 58th Leg., R.S., Ch. 260, Sec. 5 (part).)

Source Law

Sec. 5.  …  The District through its Board of Directors shall have the power and authority to sue and be sued and … .

[Sections 1083.112-1083.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1083.151.  BUDGET.  (a)  The district administrator shall prepare an annual budget for approval by the board. The budget must be for the fiscal year prescribed by Section 1083.152.

(b)  Not later than August 31 of each year, the board shall publish notice of a public hearing on the proposed budget. The notice must be published in a newspaper of general circulation in Wheeler County at least 10 days before the date of the hearing.  (Acts 58th Leg., R.S., Ch. 260, Secs. 6 (part), 16.)

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… .

Sec. 16.  The Board of Directors of said Hospital District shall cause to be prepared an annual budget based upon the fiscal year of the Hospital District in accordance with the provisions of Section 6 hereof and prior to September 1st of each year shall give notice of the public hearing on the proposed budget. Such notice shall be published in a newspaper of general circulation in the County at least ten (10) days prior to the date set for the hearing.

Revised Law

Sec. 1083.152.  FISCAL YEAR. The district operates on a fiscal year that begins on October 1 and ends on September 30.  (Acts 58th Leg., R.S., Ch. 260, Sec. 6 (part).)

Source Law

Sec. 6.  The District shall be operated on a fiscal year commencing on October 1st of each year and ending on September 30th of the succeeding year and … .

Revised Law

Sec. 1083.153.  AUDIT. (a) The district 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 58th Leg., R.S., Ch. 260, 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. 1083.154.  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 58th Leg., R.S., Ch. 260, Sec. 6 (part).)

Source Law

Sec. 6.  …  As soon as practical 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. 1083.155.  DEPOSITORY. (a) The board shall select one or more banks in Wheeler County 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 58th Leg., R.S., Ch. 260, Sec. 10.)

Source Law

Sec. 10.  The Board of Directors of the District shall name one or more banks within Wheeler County 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 of 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. 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 10, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, 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 1083.156-1083.200 reserved for expansion]

SUBCHAPTER E. BONDS

Revised Law

Sec. 1083.201.  GENERAL OBLIGATION BONDS.  (a)  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 buildings or improvements, and equipping buildings or improvements for a hospital and the hospital system, as determined by the board.

(b)  The board shall issue the bonds in compliance with the applicable provisions of Subtitles A and C, Title 9, Government Code.  (Acts 58th Leg., R.S., Ch. 260, Sec. 7 (part).)

Source Law

Sec. 7.  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 or renovation of buildings and improvements and equipping the same for hospitals and the hospital system, as determined by the Board, and for any or all of such purposes… . Such bonds shall be issued under the provisions of Chapter 1, Title 22 of the Revised Civil Statutes of Texas, as amended, but … .

Revisor's Note

(1)  Section 7, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, 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 are known as "general obligation bonds," the revised law is drafted accordingly.

(2)  Section 7, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, provides that bonds issued under that section "shall be issued under the provisions of Chapter 1, Title 22 of the Revised Civil Statutes of Texas, as amended." Chapter 1, Title 22, Revised Statutes, was composed of V.A.C.S. Articles 701-717w. The relevant parts of those provisions were revised in 1999 as Subtitles A and C of Title 9, Government Code, and 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. 1083.202.  TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1083.201, the board shall impose an ad valorem tax 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 58th Leg., R.S., Ch. 260, Sec. 7 (part).)

Source Law

Sec. 7.  …  At the time of the issuance of any such bonds a tax shall be levied by the Board 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 seventy-five cents (75¢) on each One Hundred Dollar ($100) valuation of taxable property in any one year… .

Revisor's Note

Section 7, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, 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. 1083.203.  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 58th Leg., R.S., Ch. 260, Sec. 7 (part).)

Source Law

Sec. 7.  … No bond shall be issued by such Hospital District … until authorized 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. Such election shall be called by the Board of Directors and held in accordance with the provisions of Chapter 1, Title 22 of the Revised Civil Statutes of Texas, 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, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, refers to a majority vote of the qualified electors of the district.  The revised law omits "qualified" in this context for the reason stated in Revisor's Note (4) to Section 1083.051.  The revised law substitutes "voter" for "elector" because the former is the term used in the Election Code.

(2)  Section 7, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, 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, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, provides that an election must be "held in accordance with the provisions of Chapter 1, Title 22 of the Revised Civil Statutes of Texas, as amended, and except as therein otherwise provided, shall be conducted in accordance with the General Laws of Texas pertaining to elections."  The election provisions of Chapter 1, Title 22, Revised Statutes, are codified as Chapter 1251, Government Code, and the revised law is drafted accordingly.  The revised law omits the reference to "except as therein otherwise provided" because 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.  The revised law omits the reference to the "General Laws of Texas pertaining to elections" because Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state.

(4)  Section 7, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, 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:

Sec. 7.  …  The District shall make provisions for defraying the costs of all elections called and held under the provisions of this Act… .

Revised Law

Sec. 1083.204.  EXECUTION OF GENERAL OBLIGATION BONDS.  The board president shall execute the general obligation bonds in the district's name, and the board secretary shall attest the bonds as provided by Chapter 618, Government Code.  (Acts 58th Leg., R.S., Ch. 260, Sec. 7  (part).)

Source Law

Sec. 7.  …  [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 Article 717j--1, Vernon's Civil Statutes, and … .

Revisor's Note

Section 7, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, refers to Article 717j-1, Vernon's Civil Statutes.  That statute was codified in 1999 as Chapter 618, Government Code, and the revised law is drafted accordingly.

Revised Law

Sec. 1083.205.  REFUNDING BONDS.  (a)  The board may, without an election, issue refunding bonds to refund any bonds issued 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 58th Leg., R.S., Ch. 260, Sec. 7 (part).)

Source Law

Sec. 7.  …  [No bond shall be issued by such Hospital District] except refunding bonds, [until authorized by a majority of the qualified electors of the District] … .

The bonds of the District may be issued for the purpose of refunding and paying off any bonds theretofore issued 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

Section 7, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, provides that refunding bonds must be issued and payments made in the manner specified by Article 717k, Revised 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:

Sec. 7.  … 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 Article 717k, Revised Civil Statutes of Texas, as amended.

Revised Law

Sec. 1083.206.  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 58th Leg., R.S., Ch. 260, Sec. 8 (part).)

Source Law

Sec. 8.  … 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

(End of Subchapter)

(1)  Section 7, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, provides that the first bonds issued may not exceed a maximum interest rate of six percent and 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 those provisions 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 any net effective interest rate of 15 percent or less and applies to district bonds under Section 1204.001, Government Code.  The omitted law reads:

Sec. 7.  … The first issue of bonds of the District shall not exceed a maximum interest rate of six per cent (6%) per annum. … provided that if refunding bonds are to be exchanged for a like amount of said 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 said refunding bonds; and … .

(2)  Section 7, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, provides that district bonds are subject to the law governing counties that relates to bond approval by the attorney general and registration of the bonds by the comptroller.  Section 7 also provides that after approval and registration the bonds are "incontestable."  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. 7.  …  [Such bonds] … shall be subject to the same requirements in the matter of the approval by the Attorney General of Texas and registration by the Comptroller of Public Accounts of the State of Texas as are by law provided for approval and registration of bonds issued by counties. After approval of any such bonds by the Attorney General and registration by the Comptroller, said bonds shall be incontestable… .

(3)  Section 11, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, 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 11 has been superseded and impliedly repealed. Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)).  Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings and loan associations are regulated by Sections 63.002 and 64.001, Finance Code.  As to the remaining entities listed, Section 11 is superseded by Section 1201.041, Government Code (enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes)).  While Section 11 lists "guardians" and Section 1201.041 does not, Section 1201.041 includes a "fiduciary" and a guardian is a fiduciary.  Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code.  The revised law omits the reference to public funds of this state because it has been superseded by Section 404.024, Government Code (enacted in 1985 as Section 2.014, Treasury Act (Article 4393-1, Vernon's Texas Civil Statutes)), which governs the investment of state funds.  Section 404.024(b)(10), Government Code, authorizes the investment of state funds in obligations of political subdivisions, including hospital districts.  The omitted law reads:

Sec. 11.  All bonds 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, guardians, 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… .

(4)  Section 11, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, 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. 11.  …  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 1083.207-1083.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Revised Law

Sec. 1083.251.  IMPOSITION OF AD VALOREM TAX.  (a)  The district may impose a tax on all property in the district subject to district taxation.

(b)  The tax may be used:

(1)  to meet the requirements of district bonds; and

(2)  for the district's maintenance and operating expenses.  (Acts 58th Leg., R.S., Ch. 260, Sec. 3 (part).)

Source Law

Sec. 3.  … [North Wheeler County Hospital District shall be created] with authority to levy annual taxes … [on] … all taxable property within such District for the purpose of meeting the requirements of the District's bonds, and its maintenance and operating expenses, and … .

Revised Law

Sec. 1083.252.  TAX RATE.  The district may impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district.  (Acts 58th Leg., R.S., Ch. 260, Sec. 3 (part).)

Source Law

Sec. 3.  … [North Wheeler County Hospital District shall be created with authority to levy annual taxes] at a rate not to exceed seventy-five cents (75¢) on the One Hundred Dollar ($100) valuation of [all taxable property within such District] … .

Revised Law

Sec. 1083.253.  TAX ASSESSOR-COLLECTOR.  The tax assessor-collector of Wheeler County shall assess and collect taxes imposed by the district.  (Acts 58th Leg., R.S., Ch. 260, Sec. 13 (part).)

Source Law

Sec. 13.  …  The Tax Assessor and/or Collector of Wheeler County shall be charged and required to accomplish the assessment and collection of all taxes levied by and on behalf of the District and … .

Revisor's Note

(1)  Section 13, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, provides that tax revenue shall be deposited in the district's depository.  The revised law omits the provision because Section 31.10, Tax Code, requires the tax assessor-collector of a taxing unit to deposit taxes collected in the unit's depository.  The omitted law reads:

Sec. 13.  …  [The Tax Assessor and/or Collector of Wheeler County shall be charged and required] … to promptly pay over the same to the District Depository… .

(2)  Section 13, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, provides for compensating the county tax assessor-collector 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, 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 all property tax law.  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. 13.  …  For his services the County Tax Assessor-Collector shall be allowed such compensation as may be provided for by contract with the District but not to exceed the amount allowed for assessment and collection of County taxes. Provided further that the amount allowed for collection shall not exceed one per cent (1%) of the amounts collected as may be determined by the Board of Directors but in no event in excess of Two Thousand, Five Hundred Dollars ($2,500) for any one (1) fiscal year… .

(3)  Section 13, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, provides that the bond of the county tax assessor-collector is security for the performance of district duties unless the board determines that an additional bond is necessary.  The revised law omits that provision because it duplicates Section 6.29(b), Tax Code, which authorizes a taxing unit for which the county tax assessor-collector collects a tax to require that collector to post an additional bond.  The omitted law reads:

Sec. 13.  …  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 District Board of Directors, it is necessary that additional bond payable to the District may be required… .

(4)  Section 13, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, 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 government to administer the assessment, collection, and enforcement of taxes in conformity with that title.  The omitted law reads:

Sec. 13.  …  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 13, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, requires the district to impose taxes 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. See Revisor's Note (2) to Section 1083.253.  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. 13.  The District shall use Wheeler County, Texas, tax values and Wheeler County, Texas, tax rolls. District taxes shall be assessed and collected in the same manner as provided by law with relation to County taxes… .

Revisor's Note

(End of Chapter)

(1)  Section 2, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, provides that Wheeler County or a municipality in the county does not own any hospital facilities before the district's creation and that the district does not assume any debt or take over any properties on creation.  The revised law omits those provisions as executed.  The omitted law reads:

Sec. 2.  …  There being no hospital, hospital system or hospital facilities of any nature presently owned by Wheeler County or any city or town therein no provisions are made herein for the transfer of properties or equipment or the assumption of any outstanding indebtedness incurred by them for hospital purposes such as is permitted by the aforementioned constitutional provision in the case of existing county, city or town hospitals, hospital systems or hospital facilities.

(2)  Section 19, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, 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 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 end the provisions of this Act are declared to be severable.

(3)  Section 20, Chapter 260, Acts of the 58th Legislature, Regular Session, 1963, provides that public notice of enactment of the statute was provided in a manner that satisfies the requirements of the Texas Constitution.  The revised law omits that section as executed.   The omitted law reads:

Sec. 20.  Proof of Publication of the notice required in the enactment hereof under the provisions of Section 9 of 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 requirement.

TLC: Special District Local Laws Code Proposed Chapters

This web page is published by the Texas Legislative Council and was last updated January 6, 2009.