TLC: Special District Local Laws Code Proposed Chapters

81C11(4) MCK

CHAPTER 1084. PALO PINTO COUNTY

HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1084.001. DEFINITIONS ............................... 3

Sec. 1084.002. AUTHORITY FOR OPERATION ................... 4

Sec. 1084.003. POLITICAL SUBDIVISION ..................... 4

Sec. 1084.004. DISTRICT TERRITORY ........................ 5

Sec. 1084.005. CORRECTION OF INVALID PROCEDURES .......... 5

[Sections 1084.006-1084.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1084.051. BOARD ELECTION; TERM ...................... 7

Sec. 1084.052. NOTICE OF ELECTION ........................ 11

Sec. 1084.053. QUALIFICATIONS FOR OFFICE ................. 11

Sec. 1084.054. GROUNDS FOR REMOVAL ....................... 12

Sec. 1084.055. BOND; RECORD OF BOND AND OATH OR

AFFIRMATION ............................. 13

Sec. 1084.056. BOARD VACANCY ............................. 14

Sec. 1084.057. DIRECTOR RIGHTS AND RESPONSIBILITIES ...... 15

Sec. 1084.058. OFFICERS .................................. 15

Sec. 1084.059. COMPENSATION; EXPENSES .................... 15

Sec. 1084.060. VOTING REQUIREMENT ........................ 15

Sec. 1084.061. DISTRICT ADMINISTRATOR; ASSISTANT

ADMINISTRATOR ........................... 16

Sec. 1084.062. GENERAL DUTIES OF DISTRICT

ADMINISTRATOR ........................... 17

Sec. 1084.063. ELECTION OF CHIEF OF STAFF ................ 17

Sec. 1084.064. APPOINTMENT AND RECRUITMENT OF STAFF

AND EMPLOYEES ........................... 17

Sec. 1084.065. PERSONNEL CONTRACTS ....................... 19

Sec. 1084.066. EDUCATIONAL PROGRAMS; COURSES ............. 19

Sec. 1084.067. RETIREMENT BENEFITS ....................... 19

Sec. 1084.068. MAINTENANCE OF RECORDS; PUBLIC

INSPECTION .............................. 19

[Sections 1084.069-1084.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1084.101. DISTRICT RESPONSIBILITY ................... 21

Sec. 1084.102. RESTRICTION ON COUNTY OR MUNICIPALITY

TAXATION ................................ 22

Sec. 1084.103. MANAGEMENT, CONTROL, AND ADMINISTRATION ... 22

Sec. 1084.104. RULES ..................................... 23

Sec. 1084.105. DISTRICT PROPERTY, FACILITIES, AND

EQUIPMENT ............................... 24

Sec. 1084.106. EMINENT DOMAIN ............................ 24

Sec. 1084.107. GIFTS AND ENDOWMENTS ...................... 26

Sec. 1084.108. CONTRACTS WITH GOVERNMENTAL ENTITIES

FOR CARE AND TREATMENT .................. 27

Sec. 1084.109. PAYMENT FOR TREATMENT; PROCEDURES ......... 28

Sec. 1084.110. NONPROFIT CORPORATION ..................... 29

Sec. 1084.111. AUTHORITY TO SUE AND BE SUED .............. 30

Sec. 1084.112. INSPECTIONS ............................... 30

[Sections 1084.113-1084.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1084.151. BUDGET .................................... 31

Sec. 1084.152. NOTICE; HEARING; ADOPTION OF BUDGET ....... 31

Sec. 1084.153. AMENDMENTS TO BUDGET ...................... 32

Sec. 1084.154. FISCAL YEAR ............................... 32

Sec. 1084.155. ANNUAL AUDIT .............................. 32

Sec. 1084.156. INSPECTION OF ANNUAL AUDIT AND DISTRICT

RECORDS ................................. 32

Sec. 1084.157. DEPOSITORY OR TREASURER ................... 33

Sec. 1084.158. GENERAL AUTHORITY TO BORROW MONEY;

SECURITY ................................ 33

Sec. 1084.159. AUTHORITY TO BORROW MONEY IN EMERGENCY;

SECURITY ................................ 34

[Sections 1084.160-1084.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 1084.201. GENERAL OBLIGATION BONDS .................. 36

Sec. 1084.202. TAX TO PAY GENERAL OBLIGATION BONDS ....... 36

Sec. 1084.203. ELECTION FOR GENERAL OBLIGATION BONDS ..... 37

Sec. 1084.204. REVENUE BONDS ............................. 38

Sec. 1084.205. EXECUTION OF BONDS ........................ 38

[Sections 1084.206-1084.250 reserved for expansion]

SUBCHAPTER F. TAXES

Sec. 1084.251. IMPOSITION OF AD VALOREM TAX .............. 42

Sec. 1084.252. TAX RATE .................................. 43

Sec. 1084.253. TAX ASSESSOR-COLLECTOR .................... 43

[Sections 1084.254-1084.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 1084.301. DISSOLUTION; ELECTION ..................... 44

Sec. 1084.302. NOTICE OF ELECTION ........................ 46

Sec. 1084.303. BALLOT .................................... 46

Sec. 1084.304. ELECTION RESULTS .......................... 46

Sec. 1084.305. TRANSFER, SALE, OR ADMINISTRATION OF

ASSETS .................................. 47

Sec. 1084.306. SALE OR TRANSFER OF ASSETS AND

LIABILITIES ............................. 48

Sec. 1084.307. IMPOSITION OF TAX AND RETURN OF SURPLUS

TAXES ................................... 49

Sec. 1084.308. REPORT; DISSOLUTION ORDER ................. 50

CHAPTER 1084. PALO PINTO COUNTY

HOSPITAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 1084.001. 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 Palo Pinto 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. 1084.002. AUTHORITY FOR OPERATION. The Palo Pinto County Hospital District operates in accordance with Section 9, Article IX, Texas Constitution. (Acts 59th Leg., R.S., Ch. 84, Sec. 1 (part).)

Source Law

Sec. 1. In accordance with the provisions of Article IX, Section 9, Constitution of the State of Texas, this Act shall be operative so as to authorize the creation, establishment, maintenance and operation of a hospital district within the State of Texas, to be known as the Palo Pinto County Hospital District … .

Revisor's Note

Section 1, Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, authorizes the "creation, establishment, maintenance and operation" of the district. The revised law omits "creation" and "establishment" as executed. The revised law omits "maintenance" because, in this context, the meaning of that term is included in the meaning of "operation."

Revised Law

Sec. 1084.003. POLITICAL SUBDIVISION. The district is a political subdivision of this state. (Acts 59th Leg., R.S., Ch. 84, Sec. 16 (part).)

Source Law

Sec. 16. The hospital district created under the provisions of this Act shall be and is declared to be a political subdivision of the State of Texas, and … .

Revised Law

Sec. 1084.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Palo Pinto County, Texas. (Acts 59th Leg., R.S., Ch. 84, Sec. 1 (part).)

Source Law

Sec. 1. … with boundaries coextensive with the boundaries of Palo Pinto County, Texas.

Revised Law

Sec. 1084.005. CORRECTION OF INVALID PROCEDURES. If a court holds that any procedure under this chapter violates the constitution of this state or of the United States, the district by resolution may provide an alternative procedure that conforms with the constitution. (Acts 59th Leg., R.S., Ch. 84, Sec. 17 (part).)

Source Law

Sec. 17. … [Federal or State Constitutions] … . Where any procedure hereunder may be held by any court to be violative of either of such constitutions, the district shall have the power by resolution to provide an alternative procedure conformable with such constitutions… .

Revisor's Note

Section 17, Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides that the act may not be construed to violate the federal or state constitution and requires that action under the act comply with the constitutions. The revised law omits the reference to the federal constitution because, under the Supremacy Clause of the United States Constitution (Clause 2, Article VI), federal law always takes precedence over a state statute. The revised law also omits the reference to the Texas Constitution because the state cannot modify constitutional requirements by statute. The omitted law reads:

Sec. 17. Nothing in this Act shall be construed to violate any provision of the Federal or State Constitutions, and all acts done under this Act shall be in such manner as will conform thereto, whether expressly provided or not… .

Revisor's Note

(End of Subchapter)

Sections 2 and 3, Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, 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. 2. … provided, however, that said hospital district shall not be created unless and until an election is duly held in the district for such purpose, which said election shall be initiated by order of the Commissioners Court upon its own motion or upon receipt by it of a petition of fifty (50) resident qualified property taxpaying voters.

The order calling the election shall specify the time and place or places of holding same, the form of ballot and the presiding judge for each voting place. At such election there shall be submitted to the qualified property taxpaying electors the proposition of whether or not Palo Pinto 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 for the purpose of meeting the requirements of the district's bonds and its maintenance and operating expenses, and a majority of the qualified property taxpaying electors of the district voting in 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 the Palo Pinto County Hospital District, and providing for the levy of annual taxes not to exceed Seventy-Five Cents (75¢) on the One Hundred Dollar ($100) valuation of all taxable property within such District."

"AGAINST the creation of the Palo Pinto County Hospital District, and providing for the levy of annual taxes not to exceed Seventy-Five Cents (75¢) on the One Hundred Dollar ($100) valuation of all taxable property within such District."

Notice of election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in Palo Pinto County Hospital 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 by the Commissioners Court upon its own motion or upon receipt by it of a petition of fifty (50) resident qualified property taxpaying voters.

Sec. 3. Within ten (10) days after such election is held the Commissioners Court shall convene and canvass the returns of the election, and if a majority of the qualified property taxpaying electors voting at said election voted in favor of the proposition, they shall so find and declare the hospital district established and created.

[Sections 1084.006-1084.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Revised Law

Sec. 1084.051. BOARD ELECTION; TERM. (a) The district is governed by a board of seven directors as follows:

(1) six directors elected by place; and

(2) the chief of staff elected by the medical staff under Section 1084.063.

(b) Unless four-year terms are established under Section 285.081, Health and Safety Code, the directors elected to the board serve staggered two-year terms as follows:

(1) directors for places 1, 2, and 3 are elected on the uniform election date in May of each odd-numbered year; and

(2) directors for places 4, 5, and 6 are elected on the uniform election date in May of each even-numbered year. (Acts 59th Leg., R.S., Ch. 84, Secs. 4(a) (part), (d) (part).)

Source Law

Sec. 4. (a) The District shall be governed, managed and controlled by a Board of Directors composed of seven (7) members, … . [The Chief of Staff of the hospital system owned and operated by the District shall be elected by the medical staff thereof not less frequently than every two (2) years,] and one position on the Board of Directors of said District shall at all times be occupied by the Chief of Staff thus elected. The other six (6) members of the Board of Directors shall be elected by place. Directors for places 1, 2, and 3 are elected in odd-numbered years and directors for places 4, 5, and 6 are elected in even-numbered years… . Members elected to the Board of Directors shall serve for a period of two (2) years and until their successors have been duly elected or appointed and qualified… .

(d) A regular election for the election of the appropriate number of successor directors shall be held on the first Saturday in May of each year and … .

Revisor's Note

(1) Section 4(a), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides that the district shall be "governed, managed and controlled" by seven board members. The revised law omits "managed" and "controlled" because, in this context, the terms are included in the meaning of "governed."

(2) Section 4(a), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides that the directors elected to the board 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 members are to be elected in even-numbered years to serve staggered four-year terms. The revised law is drafted accordingly and adds a reference to Section 285.081, Health and Safety Code, for the convenience of the reader.

(3) Section 4(a), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides that the directors serve "until their successors have been duly elected or appointed and qualified." The revised law omits that provision because it duplicates Section 17, Article XVI, Texas Constitution, which provides that an officer in this state is to continue to perform the officer's official duties until a successor has qualified.

(4) Section 4(a), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides that the candidate receiving the highest number of votes for each position is elected. The revised law omits that provision because it duplicates Section 2.001, Election Code, which provides that, except as otherwise provided by law, to be elected to a public office, a candidate must receive more votes than any other candidate for the office. The omitted law reads:

(a) … The candidate for a place who receives the highest number of votes for election to a place is a director for the District… .

(5) Section 4(d), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, was amended in 2001 to require board elections on the "first Saturday in May." From 1987 to 2003, Section 41.001, Election Code, provided for a uniform election date for all political subdivisions on the first Saturday in May. In Chapter 1315, Acts of the 78th Legislature, Regular Session, 2003, the legislature amended Section 41.001 by moving the uniform election date in May to the third Saturday. In Chapter 1, Acts of the 78th Legislature, 3rd Called Session, 2003, the legislature amended Section 41.001 by moving the uniform election date in May back to the first Saturday. In Chapter 471, Acts of the 79th Legislature, Regular Session, 2005, the legislature amended Section 41.001 by moving the uniform election date in May to the second Saturday. The revised law substitutes "uniform election date in May" for "first Saturday in May" to reflect these changes while preserving as closely as possible the legislative intent expressed in the 2001 amendment to Section 4(d) that the election be held on the first Saturday in May, which was at that time the uniform election date in May.

(6) Section 4(d), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides that the board shall order the election of directors in accordance with Chapter 3, Election Code. The revised law omits that provision because Chapter 3 applies to the district by its own terms under Section 1.002, Election Code. The omitted law reads:

(d) [A regular election for the election of … directors …] shall be ordered by the Board of Directors in accordance with the applicable provisions of Chapter 3, Election Code… .

(7) Sections 4 and 5, Chapter 259, Acts of the 68th Legislature, Regular Session, 1983, provide for the election place designation of elected directors and for the continuation of their terms to accomplish the change in the manner in which directors are elected. The revised law omits those provisions as executed. The omitted law reads:

Sec. 4. After the 1983 election of directors, the board of directors of the Palo Pinto County Hospital District shall adopt an order designating one director elected at that election to serve from place 1, another director elected at that election to serve from place 2, and the third director elected at that election to serve from place 3 and designating one director elected at the 1982 election of directors to serve from place 4, another director elected at the 1982 election to serve from place 5, and the third director elected at the 1982 election to serve from place 6.

Sec. 5. (a) The provisions of Section 4, Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, that specify that six members of the board of directors shall be elected by place, that the candidate for a place receiving the highest number of votes for election to that place is a director for the district, and that the petition of a candidate for director must specify the place for which the applicant is to be a candidate take effect January 1, 1984.

(b) The provisions of Section 4, Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, that provide for the election of six directors at large apply to an election of directors held before January 1, 1984. For that purpose, those provisions are continued in effect as they existed before amendment by this Act.

Revised Law

Sec. 1084.052. NOTICE OF ELECTION. Notice of each directors' election shall be published in a newspaper of general circulation in Palo Pinto County in accordance with Chapter 4, Election Code. (Acts 59th Leg., R.S., Ch. 84, Sec. 4(d) (part).)

Source Law

(d) … Notice of each election of directors shall be published in a newspaper of general circulation in the county in accordance with Chapter 4, Election Code… .

Revisor's Note

Section 4(d), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, requires notice of a directors' election to be published in "the county." Throughout this chapter, the revised law substitutes "Palo Pinto County" for "the county" or "the county in which the district is located" because Palo Pinto County is the county in which the district is located.

Revised Law

Sec. 1084.053. QUALIFICATIONS FOR OFFICE. (a) A person may not be elected or appointed to an elected position on the board unless the person is:

(1) a resident of the district; and

(2) a qualified voter.

(b) In addition to the requirements prescribed by Subsection (a), a person is not eligible to serve as a director if the person:

(1) directly or indirectly has an ownership or investment interest in a health care facility located in Palo Pinto County; or

(2) directly or in conjunction with another person or entity has an ownership interest in another business or entity that:

(A) is related to health care; and

(B) provides a good or service to the area served by the district that is the same as or substantially similar to a good or service provided by the district.

(A) a health care facility;

(B) a business or entity described by Subsection (b); or

(2) a physician's ownership interest in the physician's own medical practice. (Acts 59th Leg., R.S., Ch. 84, Secs. 4(a) (part), (a-1), (a-2).)

Source Law

(a) … No person shall be appointed or elected to the elective positions on the Board of Directors of said Hospital District unless the person is a resident of the District and a qualified voter.

(a-1) In addition to the requirements prescribed by Subsection (a) of this section, a person is not eligible to serve on the Board of Directors if the person:

(1) has an ownership or investment interest, directly or indirectly, in a health care facility located in Palo Pinto County; or

(2) has an ownership interest, directly or in conjunction with another person or entity, in another business or entity related to health care that provides a good or service to the area served by the District that is the same as or substantially similar to a good or service provided by the District.

(a-2) Subsection (a-1) of this section does not apply to:

(1) an ownership or investment interest in publicly available shares of a registered investment company, such as a mutual fund, that owns publicly traded equity securities or debt obligations issued by a health care facility or another business or entity related to health care described by Subsection (a-1) of this section or by an entity that owns the health care facility, business, or entity; or

(2) a physician's ownership interest in the physician's own medical practice.

Revised Law

Sec. 1084.054. GROUNDS FOR REMOVAL. (a) It is a ground for removal from the board that a director violates a prohibition established by Section 1084.053(b). A director may be removed for the violation in accordance with the procedures provided by Subchapter B, Chapter 87, Local Government Code, for removing a county official.

(b) The validity of a board action is not affected by the fact that the action is taken when a ground for removal of a director exists. (Acts 59th Leg., R.S., Ch. 84, Secs. 4(a-3), (a-4), (a-5).)

Source Law

(a-3) It is a ground for removal from the Board of Directors that a member violates a prohibition established by Subsection (a-1) of this section.

(a-4) The validity of an action of the Board of Directors is not affected by the fact that the action is taken when a ground for removal of a member of the Board of Directors exists.

(a-5) A member of the Board of Directors may be removed for a ground provided by Subsection (a-3) of this section, using the procedures provided by Subchapter B, Chapter 87, Local Government Code, for removing a county official.

Revised Law

Sec. 1084.055. BOND; RECORD OF BOND AND OATH OR AFFIRMATION. (a) Each director shall execute a good and sufficient bond for $5,000 that is:

(1) payable to the district; and

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

(b) Each director's bond and the constitutional oath or affirmation of office shall be deposited with the district's depository bank for safekeeping. (Acts 59th Leg., R.S., Ch. 84, Sec. 4(b) (part).)

Source Law

(b) Each member of the Board of Directors … shall execute a good and sufficient bond for $5,000 payable to said District conditioned upon the faithful performance of the member's duties, and such oaths and bonds shall be deposited with the depository bank of the District for safekeeping.

Revisor's Note

Section 4(b), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, requires each director to take the constitutional oath of office. The revised law omits that provision because Section 1, Article XVI, Texas Constitution, requires all officers to take the oath (or affirmation) before assuming office. Additionally, the revised law provides for the deposit of the constitutional affirmation, as well as the constitutional oath, because Section 1, Article XVI, Texas Constitution, permits an officer in this state to take either the constitutional oath or affirmation. The omitted law reads:

(b) [Each member of the Board of Directors] shall qualify by executing the Constitutional Oath of Office and … .

Revised Law

Sec. 1084.056. BOARD VACANCY. (a) If a vacancy occurs in the office of elected director, the remaining directors by majority vote shall appoint a director for the unexpired term.

(b) If the number of directors is reduced to fewer than four for any reason, the remaining directors shall immediately call a special election to fill the vacancies of the elected positions. 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 59th Leg., R.S., Ch. 84, Sec. 4(c) (part).)

Source Law

(c) … All vacancies in the elective positions of directors shall be filled for the unexpired term by a majority vote of the remainder of the Board of Directors, and those appointees shall hold office for the unexpired terms for which they were appointed. In the event the number of directors shall be reduced to less than four (4) for any reason, the remaining directors shall immediately call a special election to fill the elective positions which are vacant, 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. 1084.057. DIRECTOR RIGHTS AND RESPONSIBILITIES. All directors have the same rights and responsibilities with regard to voting and other matters. (Acts 59th Leg., R.S., Ch. 84, Sec. 4(a) (part).)

Source Law

(a) … [Board of Directors …] all of whom shall have the same rights and responsibilities with respect to voting and all other matters… .

Revised Law

Sec. 1084.058. OFFICERS. (a) The board shall elect a president, vice president, and secretary from among its members.

(b) Each officer of the board serves for a term of one year and may serve successive terms. (Acts 59th Leg., R.S., Ch. 84, Sec. 4(c) (part).)

Source Law

(c) The Board of Directors shall organize by electing one of their number as president, one of their number as vice–president, and one of their number as secretary. Each officer shall serve for a term of one year and may serve successive terms… .

Revised Law

Sec. 1084.059. COMPENSATION; EXPENSES. A director serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties on approval of the expenses by the entire board as reported in the board minutes. (Acts 59th Leg., R.S., Ch. 84, Sec. 4(e).)

Source Law

(e) All members of the Board of Directors shall serve without compensation but may be reimbursed for actual expenses incurred in the performance of their official duties upon the approval of such expenses by the entire Board of Directors as reported in the minutes of the board.

Revised Law

Sec. 1084.060. VOTING REQUIREMENT. A concurrence of four directors is sufficient in any matter relating to district business. (Acts 59th Leg., R.S., Ch. 84, Sec. 4(c) (part).)

Source Law

(c) … [members of the Board of Directors] … a concurrence of four (4) members shall be sufficient in all matters pertaining to the business of the District… .

Revisor's Note

Section 4(c), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, 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:

Revised Law

Sec. 1084.061. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The board may 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 $5,000 that:

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

(2) contains other conditions the board may require.

(e) The board may pay for the bond with district money. (Acts 59th Leg., R.S., Ch. 84, Sec. 7(b) (part).)

Source Law

(b) The board of directors may appoint a qualified person to be known as the administrator of the hospital district and may in its discretion appoint an assistant to the administrator. The administrator and assistant administrator, if any, serve at the will of the board and receive compensation as may be fixed by the board. The administrator shall, on assuming the administrator's duties, execute a bond payable to the hospital district in an amount of not less than $5,000 as determined by the board, conditioned on the administrator performing the administrator's required duties and containing other conditions the board requires. The board may pay for the bond with district funds… .

Revised Law

Sec. 1084.062. GENERAL DUTIES OF DISTRICT ADMINISTRATOR. Subject to any 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 59th Leg., R.S., Ch. 84, Sec. 7(b) (part).)

Source Law

(b) … The administrator shall supervise all the work and activities of the district and shall have general direction of the affairs of the district, subject to any limitations the board may prescribe… .

Revised Law

Sec. 1084.063. ELECTION OF CHIEF OF STAFF. At least once every two years, the medical staff of the hospital system owned and operated by the district shall elect a chief of staff. (Acts 59th Leg., R.S., Ch. 84, Sec. 4(a) (part).)

Source Law

(a) … The Chief of Staff of the hospital system owned and operated by the District shall be elected by the medical staff thereof not less frequently than every two (2) years, … .

Revised Law

Sec. 1084.064. APPOINTMENT AND RECRUITMENT OF STAFF AND EMPLOYEES. (a) The board may provide that the district administrator has the authority to employ or appoint to the staff doctors, nurses, technicians, and any other employees as necessary for the efficient operation of the district.

(b) The board may spend district money, enter into agreements, and take other necessary action to recruit physicians and other persons to serve as medical staff members or district employees, including:

(1) advertising and marketing;

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

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

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

(B) contractually agrees to become a district employee or medical staff member; or

(4) paying the tuition or other expenses of a full-time medical student or other student in a health occupation who:

(A) is enrolled in and is in good standing at an accredited medical school, college, or university; and

(B) contractually agrees to become a district employee or independent contractor in return for that assistance. (Acts 59th Leg., R.S., Ch. 84, Secs. 7(b) (part), (g).)

Source Law

(b) … The board of directors may provide that the administrator shall have the authority to employ or appoint to the staff doctors, technicians, nurses, and other employees of every kind and character as necessary for the efficient operation of the district.

(g) The board of directors may spend district funds, enter into agreements, and take other necessary action to recruit physicians and other persons to serve as medical staff members or employees of the district, including:

(1) advertising and marketing;

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

(3) providing a loan or scholarship to a physician or a person currently enrolled in health care education courses at an institution of higher education who contractually agrees to become a district employee or medical staff member; or

(4) contracting with one or more full-time medical students or other students in a health occupation, each of whom shall be enrolled in and in good standing at an accredited medical school, college, or university, to pay the student's tuition or other expenses in consideration of the student's agreement to serve as an employee or independent contractor for the district.

Revised Law

Sec. 1084.065. PERSONNEL CONTRACTS. (a) The board may contract to provide administrative and other personnel for the operation of the hospital facilities.

(b) The term of a contract may not exceed 25 years. (Acts 59th Leg., R.S., Ch. 84, Sec. 7(e) (part).)

Source Law

(e) The board of directors may enter into a contract or contracts to provide administrative and other personnel for the operation of the hospital facilities. The term of the contract may not exceed 25 years… .

Revised Law

Sec. 1084.066. EDUCATIONAL PROGRAMS; COURSES. The board may provide or contract for the provision of educational programs or courses for district employees and medical staff. (Acts 59th Leg., R.S., Ch. 84, Sec. 7(i).)

Source Law

(i) The board of directors may provide or contract for the provision of educational programs or courses for employees and medical staff of the district.

Revised Law

Sec. 1084.067. RETIREMENT BENEFITS. The board may provide retirement benefits for district employees by:

(1) establishing or administering a retirement program; or

(2) participating in a statewide retirement system in which the district is eligible to participate. (Acts 59th Leg., R.S., Ch. 84, Sec. 7(f).)

Source Law

(f) The board of directors may provide retirement benefits for the employees of the district by establishing or administering a retirement program or electing to participate in any statewide retirement system in which the district is eligible to participate.

Revised Law

Sec. 1084.068. MAINTENANCE OF RECORDS; PUBLIC INSPECTION. Except as provided by Section 1084.055, all district records, including books, accounts, notices, minutes, and all other matters of the district and the operation of its facilities, shall be:

(1) maintained at the district office; and

(2) open to public inspection at the district office at all reasonable hours. (Acts 59th Leg., R.S., Ch. 84, Sec. 7(l).)

Source Law

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

Revisor's Note

Section 7(l), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides that the records shall be maintained at the district office "except as herein provided." For the convenience of the reader, the revised law substitutes a reference to Section 1084.055, which revises Section 4(b), Chapter 84, and is the only exception provided in Chapter 84.

Revisor's Note

(End of Subchapter)

Section 4(d), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides that a person must file a ballot application with the board secretary to be a candidate for director in accordance with Chapter 144, Election Code, and that the application must specify the place for which the applicant is to be a candidate. The revised law omits the reference to Chapter 144, Election Code, because that chapter applies to the district under Section 1.002, Election Code, which provides that the Election Code applies to all elections held in this state. The revised law omits the requirement that the person specify the place because it duplicates Section 141.031(a)(4)(C), Election Code, which requires a candidate to state on the ballot application the office sought by the candidate, including any place number or other distinguishing number. The omitted law reads:

(d) … Any person desiring the person's name to be printed on the ballot as a candidate for elective director shall file an application with the secretary of the Board of Directors of the District in accordance with Chapter 144, Election Code. The application must specify the place for which the applicant is to be a candidate.

[Sections 1084.069-1084.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Revised Law

Sec. 1084.101. DISTRICT RESPONSIBILITY. The district has full responsibility for providing medical and hospital care for the district's needy and indigent residents. (Acts 59th Leg., R.S., Ch. 84, Secs. 2 (part), 12 (part).)

Source Law

Sec. 2. That said district hereby provided for shall assume full responsibility for providing medical and hospital care for the needy residing within the district; … .

Sec. 12. … such hospital district shall assume full responsibility for the furnishing of medical and hospital care for the needy and indigent persons residing in said hospital district from the date that taxes are collected for the hospital district.

Revisor's Note

Sections 2 and 12, Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provide that the district "shall assume" full responsibility for providing medical and hospital care for the district's "needy" residents, and Section 12 provides that the district shall assume that responsibility "from the date that taxes are collected for the hospital district." The revised law substitutes "has" for "shall assume" because the duty to assume the responsibility is executed. The revised law omits "from the date that taxes are collected for the hospital district" as executed.

Revised Law

Sec. 1084.102. RESTRICTION ON COUNTY OR MUNICIPALITY TAXATION. Palo Pinto County or a municipality in the district may not impose a tax on property in the district for hospital purposes. (Acts 59th Leg., R.S., Ch. 84, Sec. 12 (part).)

Source Law

Sec. 12. Except as herein provided, neither Palo Pinto County, nor any city or town within the hospital district, shall levy any tax against any property within the hospital district for hospital purposes; and … .

Revisor's Note

(1) Section 12, Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, states that "[e]xcept as herein provided," certain political subdivisions may not levy a tax for hospital purposes. The revised law omits the quoted language because the act does not provide an exception. In addition, throughout this chapter, the revised law substitutes "impose" for "levy" because, in context, the terms are synonymous and "impose" is more commonly used.

(2) Section 12, Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, 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.

Revised Law

Sec. 1084.103. MANAGEMENT, CONTROL, AND ADMINISTRATION. The board shall manage, control, and administer the district's hospitals and hospital system. (Acts 59th Leg., R.S., Ch. 84, Sec. 7(a) (part).)

Source Law

Sec. 7. (a) The board of directors shall manage, control, and administer the hospitals and hospital system of the district… .

Revised Law

Sec. 1084.104. RULES. (a) The board may adopt rules governing the operation of the district, including district facilities.

(b) On approval by the board, the rules may be published in booklet form at district expense and made available to any taxpayer on request. (Acts 59th Leg., R.S., Ch. 84, Sec. 7(m).)

Source Law

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

Revisor's Note

(1) Section 7(m), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides that the board may adopt "rules and regulations" to govern the district. The revised law omits "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

(2) Section 7(m), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides that the board may adopt rules that "shall supplement but shall not contravene any of the provisions of this Act." The revised law omits the quoted language because, under established principles of law, the board is not authorized to take any action contrary to the laws of this state.

(3) Section 7(m), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, refers to publishing rules in "booklet or pamphlet form." The revised law omits "pamphlet" because, in context, the meaning of "pamphlet" is included in the meaning of "booklet."

Revised Law

Sec. 1084.105. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board may:

(1) purchase or lease property, including facilities or equipment, for the district to use in the hospital system; and

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

(b) The board may lease district hospital facilities to individuals, corporations, or other legal entities.

(c) The board may sell or otherwise dispose of the district's property, including facilities or equipment. (Acts 59th Leg., R.S., Ch. 84, Secs. 7(d), (e) (part).)

Source Law

(d) The board of directors may purchase or lease property, facilities, and equipment for the district to use in the hospital system and may mortgage or pledge the property, facilities, or equipment as security for the payment of the purchase price.

(e) … The board may transfer district hospital facilities by lease to individuals, corporations, or other legal entities and may sell or otherwise dispose of the district's property, facilities, and equipment.

Revised Law

Sec. 1084.106. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property, real, personal, or mixed, located in district territory, if the interest is necessary or convenient for the district to exercise a right, power, privilege, or function conferred on the district by this chapter.

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

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

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

(3) provide a bond for costs or a supersedeas bond on an appeal or petition for review. (Acts 59th Leg., R.S., Ch. 84, Sec. 9.)

Source Law

Sec. 9. The district shall have the right and power of eminent domain for the purpose of acquiring by condemnation any and all property of any kind or character, real, personal or mixed, or any interest therein, including outright ownership of such property in fee simple absolute, within the boundaries of the said district, necessary or convenient to the exercise of the rights, power, privileges and functions conferred upon it by this Act, in the manner provided by General Law with respect to condemnation; provided that the said district shall not be required to make deposits in the registry of the trial court of the sum required by Section 21.021, Property Code, or to make the bond required therein. In condemnation proceedings being prosecuted by the said district, the district shall not be required to pay in advance or to give bond or other security for costs in the trial court, nor to give any bond otherwise required for the issuance of a temporary restraining order or a temporary injunction relating to a condemnation proceeding, nor to give bond for costs or for supersedeas on any appeal or writ of error proceeding to any Court of Civil Appeals, or to the Supreme Court.

Revisor's Note

(1) Section 9, Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, 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 9, Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides that the district must exercise the power of eminent domain in the manner provided by "General Law with respect to condemnation." The revised law substitutes for "General Law" a reference to Chapter 21, Property Code, because that is the general law governing eminent domain.

(3) Section 9, Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides that the district is not required to provide bond on any appeal or "writ of error proceeding" to "any Court of Civil Appeals, or to the Supreme Court." The revised law substitutes "petition for review" for "writ of error" because, effective September 1, 1997, the Texas Supreme Court replaced the writ of error procedure with the petition for review procedure. See Rule 53.1, Texas Rules of Appellate Procedure. The revised law omits the references to the court of civil appeals (now the court of appeals) and the supreme court. The revised law omits the references because the court of appeals and the supreme court are the only courts to which the district may appeal or with which the district may file a petition for review.

Revised Law

Sec. 1084.107. 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 provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district. (Acts 59th Leg., R.S., Ch. 84, Sec. 14.)

Source Law

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

Revisor's Note

Section 14, Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, refers to "donations" and "gifts." The revised law omits "donations" because "donations" is included in the meaning of "gifts."

Revised Law

Sec. 1084.108. 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. (Acts 59th Leg., R.S., Ch. 84, Sec. 7(c).)

Source Law

(c) The board of directors may contract with any county or incorporated municipality located outside its boundaries for the care and treatment of the sick, diseased, or injured persons of the county or municipality and may contract with this state or agencies of the federal government for the treatment of sick, diseased, or injured persons.

Revisor's Note

(1) Section 7(c), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, 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 7(c), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, refers to the treatment of "sick, diseased, or injured persons." The revised law omits the reference to "diseased" because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1084.109. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a patient who resides in the district is admitted to a district facility, the district administrator may have an inquiry made into the circumstances of:

(1) the patient; and

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

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

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

(d) The district 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) The board may institute a suit to collect an amount owed to the district by a patient who has not been determined to be unable to pay under this section.

(f) 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 an appropriate order. (Acts 59th Leg., R.S., Ch. 84, Secs. 7(j), 13.)

Source Law

[Sec. 7]

(j) The board of directors may institute a suit to collect amounts owed to the district by patients who have not been determined to be unable to pay under Section 13 of this Act.

Sec. 13. Whenever a patient residing in the hospital district has been admitted to the facilities of the hospital district, the administrator may cause inquiry to be made as to the patient's circumstances, and of the relatives of such patient legally liable for the patient's support. If the administrator finds that such patient or said relatives are liable to pay for the patient's 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. The district shall have power and authority to collect such sum from the estate of the patient, or the patient's relatives 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. If the administrator finds that such patient or said relatives are not able to pay, either in whole or in part, for the patient's care and treatment in such hospital, the same shall become a charge upon the hospital district. Should there be a dispute as to the ability to pay, or doubt in the mind of the administrator, the board of directors shall hear and determine same, after calling witnesses, and shall make such order as may be proper.

Revised Law

Sec. 1084.110. NONPROFIT CORPORATION. (a) The district may create and sponsor a nonprofit corporation under the Business Organizations Code and may contribute money to or solicit money for the corporation.

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

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

(d) The board shall establish controls to ensure that the corporation uses its money as required by this section. (Acts 59th Leg., R.S., Ch. 84, Sec. 7(k).)

Source Law

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

Revisor's Note

Section 7(k), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, refers to the Texas Non-Profit Corporation Act. That act was codified in various chapters of the Business Organizations Code by Chapter 182, Acts of the 78th Legislature, Regular Session, 2003. On January 1, 2010, the Texas Non-Profit Corporation Act expires, and the Business Organizations Code will apply to all business entities without regard to date of formation or whether an entity is a foreign or domestic business entity. Because the revised law will not take effect until 2011, the revised law is drafted to reflect the applicability of only the Business Organizations Code.

Revised Law

Sec. 1084.111. AUTHORITY TO SUE AND BE SUED. As a governmental agency, the district, through the board, may sue and be sued in the district's own name in any court of this state. (Acts 59th Leg., R.S., Ch. 84, Secs. 7(a) (part), 16 (part).)

Source Law

Sec. 7. (a) … The district through its board of directors may sue and be sued.

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

Revised Law

Sec. 1084.112. INSPECTIONS. The district is subject to inspection by any authorized representative of this state. A district officer or employee shall:

(1) admit the representative into any district facility; and

(2) provide the representative with access on demand to any record, report, book, paper, or account relating to the district. (Acts 59th Leg., R.S., Ch. 84, Sec. 11.)

Source Law

Sec. 11. The district established or maintained under the provisions of this Act shall be subject to inspection by any duly authorized representative of the state, and the officers and employees of the district shall admit such representatives into all hospital district facilities and give them access on demand to all records, reports, books, papers and accounts pertaining to the hospital district.

[Sections 1084.113-1084.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1084.151. BUDGET. The district administrator shall prepare an annual budget for approval by the board. (Acts 59th Leg., R.S., Ch. 84, Sec. 8(b) (part).)

Source Law

(b) The administrator shall prepare an annual budget for approval by the board of directors… .

Revised Law

Sec. 1084.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The board shall hold a public hearing on the proposed budget.

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

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

(2) be heard regarding any item included in the proposed budget.

(d) The annual budget is effective only after adoption by the board. (Acts 59th Leg., R.S., Ch. 84, Sec. 8(b) (part).)

Source Law

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

Revised Law

Sec. 1084.153. AMENDMENTS TO BUDGET. After the annual budget is adopted, the budget may be amended on the board's approval. (Acts 59th Leg., R.S., Ch. 84, Sec. 8(b) (part).)

Source Law

(b) … After adoption, the annual budget may be amended on approval of the board of directors.

Revised Law

Sec. 1084.154. FISCAL YEAR. (a) The district operates according to a fiscal year established by the board.

(b) The fiscal year may not be changed:

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

(2) more than once in a 24-month period. (Acts 59th Leg., R.S., Ch. 84, Sec. 8(a) (part).)

Source Law

Sec. 8. (a) The district shall be operated on the basis of a fiscal year to be established by the board of directors. The fiscal year may not be changed when revenue bonds are outstanding or more than one time in a 24-month period… .

Revised Law

Sec. 1084.155. ANNUAL AUDIT. The board annually shall have an independent audit made of the district's books and records. (Acts 59th Leg., R.S., Ch. 84, Sec. 8(a) (part).)

Source Law

(a) … The board shall cause an annual independent audit to be made of the books and records of the district… .

Revised Law

Sec. 1084.156. INSPECTION OF ANNUAL AUDIT AND DISTRICT RECORDS. The annual audit and other district records are open to inspection at the district's office. (Acts 59th Leg., R.S., Ch. 84, Sec. 8(a) (part).)

Source Law

(a) … The audit and the records of the district are open to inspection at the office of the district.

Revised Law

Sec. 1084.157. DEPOSITORY OR TREASURER. (a) The board by resolution shall designate a bank to serve as the district's depository or treasurer.

(b) All district money shall be secured in the manner provided for securing county funds. (Acts 59th Leg., R.S., Ch. 84, Sec. 10.)

Source Law

Sec. 10. Within thirty (30) days after appointment and qualification of the board of directors of the hospital district, the said directors shall by resolution designate a bank as the district's depository or treasurer and all funds of the district shall be secured in the manner now provided for the security of county funds.

Revisor's Note

Section 10, Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, requires the board to select a depository "[w]ithin thirty (30) days after appointment and qualification of the board of directors of the hospital district." The revised law omits the quoted language as executed.

Revised Law

Sec. 1084.158. GENERAL AUTHORITY TO BORROW MONEY; SECURITY. (a) The board may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time the loan is made.

(b) To secure a loan, the board may pledge:

(1) district revenue that is not pledged to pay the district's bonded indebtedness;

(2) a district tax to be imposed by the district during the 12-month period following the date of the pledge that is not pledged to pay the principal of or interest on district bonds; or

(3) district bonds that have been authorized but not sold.

(c) A loan for which taxes or bonds are pledged must mature not later than the first anniversary of the date the loan is made. A loan for which district revenue is pledged must mature not later than the fifth anniversary of the date the loan is made. (Acts 59th Leg., R.S., Ch. 84, Sec. 6B.)

Source Law

Sec. 6B. (a) The board of directors may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time of the loan.

(b) To secure a loan, the board of directors may pledge:

(1) revenues of the district that are not pledged to pay the bonded indebtedness of the district;

(2) district taxes to be levied by the district during the 12-month period following the date of the pledge that are not pledged to pay the principal of or interest on district bonds; or

(3) district bonds that have been authorized but not sold.

(c) A loan for which taxes or bonds are pledged shall mature not later than the first anniversary of the date on which the loan is made. A loan for which district revenues are pledged shall mature not later than the fifth anniversary of the date on which the loan is made.

Revised Law

Sec. 1084.159. AUTHORITY TO BORROW MONEY IN EMERGENCY; SECURITY. (a) If money is not available to meet an authorized obligation of the district, the board shall adopt an order declaring an emergency. After the order is adopted, the board may borrow money on district notes at a rate not to exceed 12 percent a year to meet the obligation.

(b) To secure the loan, the board may pledge:

(1) district revenue that is not pledged to pay the district's bonded indebtedness;

(2) a district tax that is to be imposed not later than the first anniversary of the date of the loan and that is not pledged to pay the principal of or interest on district bonds; or

(3) district bonds that have been authorized but not sold.

(d) The board may spend money obtained from a loan under this section only to meet the obligation that made the loan necessary. The board may spend money obtained from any taxes or bonds used to secure the loan only for the purpose for which the taxes were imposed or the bonds were authorized. (Acts 59th Leg., R.S., Ch. 84, Sec. 6A.)

Source Law

Sec. 6A. (a) If money is not available to meet a lawfully authorized obligation of the district, the board shall adopt an order declaring an emergency. After the order is adopted, the board may borrow money on notes of the district at a rate of not more than twelve (12) percent a year to meet the obligation.

(b) To secure the loan, the board may pledge:

(1) revenues of the district that are not pledged to pay a bonded indebtedness of the district;

(2) taxes of the district that are to be levied not later than twelve (12) months after the date of the loan and that are not pledged to pay principal of or interest on bonds; or

(3) bonds of the district that have been authorized but not sold.

(c) If taxes or bonds are pledged to pay the loan, the loan must mature not later than twelve (12) months after the date on which the loan is made. If revenues of the district are pledged to pay the loan, the loan must mature not later than five (5) years after the date on which the loan is made.

(d) Money from the loan may be used only to meet the obligation that made the loan necessary. Money from any taxes or bonds used to secure the loan may be used only for the purpose for which the taxes were levied or the bonds were authorized.

Revisor's Note

Section 6A, Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, refers to a "lawfully authorized obligation." The revised law omits "lawfully" because, in context, a "lawful" obligation is included in the meaning of an "authorized" obligation.

[Sections 1084.160-1084.200 reserved for expansion]

SUBCHAPTER E. BONDS

Revised Law

Sec. 1084.201. GENERAL OBLIGATION BONDS. The board may issue and sell general obligation bonds authorized by an election in the name and on the faith and credit of the district, to:

(1) purchase, construct, acquire, repair, or renovate buildings or improvements;

(2) equip buildings or improvements for hospital purposes; and

(3) acquire sites to be used for district purposes. (Acts 59th Leg., R.S., Ch. 84, Sec. 6(a) (part).)

Source Law

Sec. 6. (a) The board of directors shall have the power and authority to issue and sell as the obligations of such hospital district, and in the name and upon the faith and credit of such hospital district, general obligation bonds authorized by an election for the purchase, construction, acquisition, repair, or renovation of buildings and improvements, equipping the same for hospital purposes, and acquisition of sites to be used for the district's purposes. …

Revised Law

Sec. 1084.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1084.201, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature.

(b) The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed 75 cents on each $100 valuation of all taxable property in the district. (Acts 59th Leg., R.S., Ch. 84, Sec. 6(a) (part).)

Source Law

(a) … At the time of issuance of any general obligation bonds, a sufficient tax shall be levied to create an interest and sinking fund to pay the interest and principal as same matures, providing said tax together with any other taxes levied for the district shall not exceed Seventy-Five Cents (75¢) on each $100 valuation in any one (1) year.

Revisor's Note

Section 6(a), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, 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. 1084.203. ELECTION FOR GENERAL OBLIGATION BONDS. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

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

(c) The election shall be conducted in accordance with Chapter 1251, Government Code. (Acts 59th Leg., R.S., Ch. 84, Sec. 6(c).)

Source Law

(c) No general obligation bonds shall be issued by such hospital district until authorized by a majority vote of the resident qualified voters voting at an election called and held for such purpose. Such election may be called by the board of directors on its own motion, and shall be conducted in accordance with Chapter 1251, Government Code.

Revisor's Note

(1) Section 6(c), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, refers to a majority vote of the "resident qualified voters." The revised law substitutes "district voters" for "resident qualified voters" because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "qualified" voters who are residents of the territory covered by the election to vote in an election.

(2) Section 6(c), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, refers to an election "called and held." The revised law omits the reference to "calling" an election because, in this context, "calling" an election is included in the meaning of "holding" an election. Under Chapter 3, Election Code, all elections must be ordered (called) before they may be held.

Revised Law

Sec. 1084.204. REVENUE BONDS. (a) The board may issue and sell revenue bonds in the name and on the faith and credit of the district to purchase, construct, acquire, repair, renovate, or equip buildings or improvements for district purposes.

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

(d) The bonds must be issued in the manner provided by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for the issuance of revenue bonds by a county hospital authority. (Acts 59th Leg., R.S., Ch. 84, Sec. 6(e).)

Source Law

(e) The board of directors may issue and sell revenue bonds in the name and on the faith and credit of the district to purchase, construct, acquire, repair, renovate, or equip buildings or improvements for district purposes. The bonds shall be payable from and secured by a pledge of all or part of the revenues derived from the operation of the district's hospital system. The bonds may be additionally secured by a mortgage or deed of trust on all or part of the district's property. The revenue bonds shall be issued in the manner provided by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for the issuance of revenue bonds by county hospital authorities.

Revised Law

Sec. 1084.205. EXECUTION OF BONDS. (a) The board president shall execute district bonds in the district's name.

(b) The board secretary shall countersign the bonds. (Acts 59th Leg., R.S., Ch. 84, Sec. 6(b) (part).)

Source Law

(b) District bonds shall be executed in the name of the hospital district and on its behalf by the president of the board of directors, and countersigned by the secretary of the board of directors, and … .

Revisor's Note

(End of Subchapter)

(1) Section 6(b), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, 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 6(b) also provides that after approval and registration the bonds are "incontestable for any cause." The revised law omits those provisions as superseded by Chapter 1202, Government Code (enacted as Article 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987). Section 1202.003(a), Government Code, requires bonds to be submitted to the attorney general. Section 1202.003(b), Government Code, provides for approval of the bonds by the attorney general and requires the attorney general to submit the approved bonds to the comptroller for registration. Section 1202.005, Government Code, requires registration of the bonds by the comptroller. Section 1202.006, Government Code, provides that after approval and registration the bonds are incontestable and binding obligations. Chapter 1202, Government Code, applies to district bonds by application of Section 1202.001, Government Code. The omitted law reads:

(b) [District bonds …] shall be subject to the same requirements in the matter of approval thereof by the Attorney General of the State of Texas and the registration thereof by the Comptroller of Public Accounts of the State of Texas as are by law provided for such approval and registration of bonds of counties of this state. Upon the approval of such bonds by the Attorney General of Texas and registration by the Comptroller the same shall be incontestable for any cause.

(2) Section 6(d), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides that the district may issue refunding bonds without an election and that the bonds shall be issued in accordance with Chapter 1207, Government Code. The revised law omits the provisions because Chapter 1207, which applies to the district by its own terms, provides general authority for an issuer, including a hospital district, to issue refunding securities, and Section 1207.003, Government Code, authorizes an issuer to issue refunding bonds without an election. The omitted law reads:

(d) The district may without an election issue refunding bonds of the district to refund and pay off any validly issued and outstanding bonds issued or assumed by the district. Refunding bonds shall be issued in accordance with Chapter 1207, Government Code.

(3) Section 15, Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds are legal and authorized investments for certain entities. The revised law omits the provision as unnecessary. As to several of the entities listed, Section 15 has been superseded and impliedly repealed. Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)). Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)). Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)). Investments in securities by building and loan associations (now called savings and loan associations) are regulated by Sections 63.002 and 64.001, Finance Code. As to the remaining entities listed, Section 15 is superseded by Section 1201.041, Government Code, enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes). Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code. While Section 15 lists "guardians" and Section 1201.041 does not, the latter statute includes "fiduciaries" and a guardian is a fiduciary. The omitted law reads:

Sec. 15. All bonds issued by or assumed by the districts authorized to be established and created under the provisions of this Act shall be and are declared to be legal and authorized investments for banks, savings banks, trust companies, building and loan associations, insurance companies, fiduciaries, trustees, guardians, and for the sinking funds of cities, towns, villages, counties, school districts, or other political corporations or subdivisions of the State of Texas; and … .

(4) Section 15, Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds may secure certain deposits. Although Section 15 does not specifically mention the deposits the bonds are eligible to secure, the only deposits they could secure would be deposits of public funds of this state or political subdivisions of this state. As such, the revised law omits the 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 lawful and sufficient security for deposits to the extent of their face value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1084.206-1084.250 reserved for expansion]

SUBCHAPTER F. TAXES

Revised Law

Sec. 1084.251. 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:

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

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

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

(4) acquire necessary sites for the hospital system by purchase, lease, or condemnation. (Acts 59th Leg., R.S., Ch. 84, Sec. 5(a) (part).)

Source Law

Sec. 5. (a) The board of directors of such hospital district shall have the power and authority, and it shall be their duty, to levy on all property subject to hospital district taxation for the benefit of the district a tax … [of all taxable property] within the hospital district, for the purpose of: (1) paying the interest on and creating a sinking fund for bonds and other obligations which may be issued or assumed by the hospital district for hospital purposes as herein provided; (2) providing for the operation and maintenance of the hospital district and hospital system; and (3) for the purpose of making further improvements and additions to the hospital system, and, for the acquisition of necessary sites therefor, by purchase, lease or condemnation.

Revised Law

Sec. 1084.252. TAX RATE. The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of all taxable property in the district. (Acts 59th Leg., R.S., Ch. 84, Sec. 5(a) (part).)

Source Law

(a) [The board of directors … shall … levy … a tax] of not to exceed Seventy-Five Cents (75¢) on the One Hundred Dollar ($100) valuation of all taxable property [within the hospital district,] … .

Revised Law

Sec. 1084.253. TAX ASSESSOR-COLLECTOR. The board may provide for the appointment of a tax assessor-collector for the district or may contract for the assessment and collection of taxes as provided by the Tax Code. (Acts 59th Leg., R.S., Ch. 84, Sec. 5(b) (part).)

Source Law

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

Revisor's Note

(End of Subchapter)

(1) Section 5(b), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides that the Tax Code governs the appraisal, assessment, and collection of district taxes. The revised law omits that provision because Section 1.02, Tax Code, requires all taxing units of government to administer the assessment and collection of an ad valorem tax in conformity with Title 1, Tax Code. The omitted law reads:

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

(2) Section 7(h), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, authorizes the board to institute a suit to enforce the payment of taxes and to foreclose liens to secure that payment. The revised law omits that provision because it duplicates Chapter 33, Tax Code, which authorizes a taxing unit of government to file suit to enforce the payment of taxes and to foreclose a lien to secure that payment. The omitted law reads:

(h) The board of directors may institute a suit to enforce the payment of taxes and to foreclose liens to secure the payment of taxes due to the district.

[Sections 1084.254-1084.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Revised Law

Sec. 1084.301. DISSOLUTION; ELECTION. (a) The district may be dissolved only on approval of a majority of the district voters voting in an election held for that purpose.

(b) The board may order an election on the question of dissolving the district and disposing of the district's assets and obligations.

(c) The board shall order an election if the board receives a petition requesting an election that is signed by at least 15 percent of the registered voters of the district.

(d) The order calling the election must state:

(1) the nature of the election, including the proposition to appear on the ballot;

(2) the date of the election;

(3) the hours during which the polls will be open; and

(4) the location of the polling places.

(e) Section 41.001(a), Election Code, does not apply to an election ordered under this section. (Acts 59th Leg., R.S., Ch. 84, Secs. 16A(a), (b), (c) (part).)

Source Law

Sec. 16A. (a) The district may be dissolved only if the dissolution is approved by a majority of the qualified voters of the district voting in an election called and held for that purpose.

(b) The board of directors may order an election on the question of dissolving the district and disposing of the district's assets and obligations. The board shall order an election if the board receives a petition requesting an election that is signed by a number of registered voters of the district equal to at least 15 percent of the registered voters in the district.

(c) … Section 41.001(a), Election Code, does not apply to an election ordered under this section. The order calling the election shall state:

(1) the nature of the election, including the proposition that is to appear on the ballot;

(2) the date of the election;

(3) the hours during which the polls will be open; and

(4) the location of the polling places.

Revisor's Note

(1) Section 16A(a), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides for dissolution of the district if approved by a majority of the "qualified" voters. The revised law omits "qualified" for the reason stated in Revisor's Note (1) to Section 1084.203.

(2) Section 16A(a), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides that the district may be dissolved if authorized at an election "called and held" for that purpose. The revised law omits the reference to "calling" an election for the reason stated in Revisor's Note (2) to Section 1084.203.

(3) Section 16A(c), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, provides that the election must be held not later than the 60th day after the date the election is ordered. The revised law omits the provision as superseded by Section 3.005, Election Code, 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:

Revised Law

Sec. 1084.302. NOTICE OF ELECTION. (a) The board shall give notice of an election under this subchapter by publishing once a week for two consecutive weeks a substantial copy of the election order in a newspaper with general circulation in the district.

(b) The first publication of the notice must appear not later than the 35th day before the date set for the election. (Acts 59th Leg., R.S., Ch. 84, Sec. 16A(d) (part).)

Source Law

(d) The board of directors shall give notice of the election by publishing a substantial copy of the election order in a newspaper with general circulation in the district once a week for two consecutive weeks. The first publication must appear not less than 35 days before the date set for the election. …

Revised Law

Sec. 1084.303. BALLOT. The ballot for an election under this subchapter must be printed to permit voting for or against the proposition: "The dissolution of the Palo Pinto County Hospital District." (Acts 59th Leg., R.S., Ch. 84, Sec. 16A(d) (part).)

Source Law

(d) … The ballot for the election shall be printed to permit voting for or against the proposition: "The dissolution of the Palo Pinto County Hospital District."

Revised Law

Sec. 1084.304. ELECTION RESULTS. (a) If a majority of the votes in an election under this subchapter favor dissolution, the board shall find that the district is dissolved.

(b) If a majority of the votes in the election do not favor dissolution, the board shall continue to administer the district and another election on the question of dissolution may not be held before the first anniversary of the date of the most recent election to dissolve the district. (Acts 59th Leg., R.S., Ch. 84, Sec. 16A(e).)

Source Law

(e) If a majority of the votes in the election favor dissolution, the board of directors shall find that the district is dissolved. If a majority of the votes in the election do not favor dissolution, the board shall continue to administer the district, and another election on the question of dissolution may not be held before the first anniversary of the most recent election to dissolve the district.

Revised Law

Sec. 1084.305. TRANSFER, SALE, OR ADMINISTRATION OF ASSETS. (a) If a majority of the votes in an election held under this subchapter favor dissolution, the board shall:

(1) transfer the land, buildings, improvements, equipment, and other assets that belong to the district to a county or to another governmental entity in Palo Pinto County;

(2) sell the assets and liabilities to another person; or

(3) administer the property, assets, and debts until all money has been disposed of and all district debts have been paid or settled.

(b) If the board makes the transfer under Subsection (a)(1), the county or entity assumes all debts and obligations of the district at the time of the transfer, and the district is dissolved.

(c) If Subsections (a)(1) and (2) do not apply and the board administers the property, assets, and debts of the district under Subsection (a)(3), the district is dissolved when all money has been disposed of and all district debts have been paid or settled. (Acts 59th Leg., R.S., Ch. 84, Secs. 16A(f), (g), (m) (part).)

Source Law

(f) If a majority of the votes in the election favor dissolution, the board of directors shall:

(1) transfer the land, buildings, improvements, equipment, and other assets that belong to the district to a county or to another governmental entity in the county in which the district is located;

(2) sell the assets and liabilities to another person or entity; or

(3) administer the property, assets, and debts until all funds have been disposed of and all district debts have been paid or settled.

(g) If the district transfers the land, buildings, improvements, equipment, and other assets to a county or other governmental entity, the county or entity assumes all debts and obligations of the district at the time of the transfer, at which time the district is dissolved. If the district does not transfer the land, buildings, improvements, equipment, and other assets to a county or other governmental entity, or sell those assets and the liabilities to another person, the board of directors shall administer the property, assets, and debts of the district until all funds have been disposed of and all district debts have been paid or settled, at which time the district is dissolved.

(m) The district may provide for the sale or transfer of the district's assets and liabilities to another person or entity and the district's subsequent dissolution. …

Revisor's Note

Sections 16A(f) and (m), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, refer to "another person or entity." The revised law omits "entity" because "entity" is included in the meaning of "person" under Section 311.005(2), Government Code (Code Construction Act).

Revised Law

Sec. 1084.306. SALE OR TRANSFER OF ASSETS AND LIABILITIES. (a) The dissolution of the district and the sale or transfer of the district's assets and liabilities to another person may not contravene a trust indenture or bond resolution relating to the district's outstanding bonds. The dissolution and sale or transfer does not diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district.

(b) The sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of district residents, including the residents' collective property rights in the district's assets.

(1) the transfer is made to another governmental entity that serves the district; and

(2) the transferred assets are to be used for the benefit of the district's residents.

(d) A grant from federal funds is an obligation to be repaid in satisfaction. (Acts 59th Leg., R.S., Ch. 84, Secs. 16A(m) (part), (n).)

Source Law

(m) … The dissolution of the district and the sale or transfer of the district's assets and liabilities to another person or entity may not contravene a trust indenture or bond resolution relating to the outstanding bonds of the district. The dissolution and sale or transfer does not diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district.

(n) The sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of the residents of the district, including the residents' collective property rights in the district's assets. A grant from federal funds is an obligation to be repaid in satisfaction. The district may not transfer or dispose of the district's assets except for due compensation unless the transfer is made to another governmental entity that serves the district and the transferred assets are to be used for the benefit of the residents of the district.

Revisor's Note

Section 16A(m), Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, refers to "another person or entity." The revised law omits "entity" for the reason stated in the revisor's note to Section 1084.305.

Revised Law

Sec. 1084.307. IMPOSITION OF TAX AND RETURN OF SURPLUS TAXES. (a) After the board finds that the district is dissolved, the board shall:

(1) determine the debt owed by the district; and

(2) impose on the property included on the district's tax rolls a tax that is in proportion of the debt to the property value.

(b) On the payment of all outstanding debts and obligations of the district, the board shall order the secretary to return to each district taxpayer the taxpayer's pro rata share of all unused tax money.

(c) A taxpayer may request that the taxpayer's share of surplus tax money be credited to the taxpayer's county taxes. If a taxpayer requests the credit, the board shall direct the secretary to transmit the money to the county tax assessor-collector. (Acts 59th Leg., R.S., Ch. 84, Secs. 16A(h), (i), (j).)

Source Law

(h) After the board of directors finds that the district is dissolved, the board shall:

(1) determine the debt owed by the district; and

(2) impose on the property included in the district's tax rolls a tax that is in proportion of the debt to the property value.

(i) When all outstanding debts and obligations of the district are paid, the board of directors shall order the secretary to return the pro rata share of all unused tax money to each district taxpayer.

(j) A taxpayer may request that the taxpayer's share of surplus tax money be credited to the taxpayer's county taxes. If a taxpayer requests the credit, the board of directors shall direct the secretary to transmit the funds to the county tax assessor-collector.

Revised Law

Sec. 1084.308. REPORT; DISSOLUTION ORDER. (a) After the district has paid all district debts and has disposed of all district money and other assets as prescribed by this subchapter, the board shall file a written report with the Commissioners Court of Palo Pinto County summarizing the board's actions in dissolving the district.

(b) Not later than the 10th day after the date the Commissioners Court of Palo Pinto County receives the report and determines that the requirements of this subchapter have been fulfilled, the commissioners court shall enter an order dissolving the district and releasing the board from any further duty or obligation. (Acts 59th Leg., R.S., Ch. 84, Secs. 16A(k), (l).)

Source Law

(k) After the district has paid all its debts and has disposed of all its assets and funds as prescribed by this section, the board of directors shall file a written report with the Commissioners Court of Palo Pinto County setting forth a summary of the board's actions in dissolving the district.

(l) Not later than the 10th day after the date it receives the report and determines that the requirements of this section have been fulfilled, the Commissioners Court of Palo Pinto County shall enter an order dissolving the district and releasing the board of directors of the district from any further duty or obligation.

Revisor's Note

(End of Chapter)

(1) Section 17, Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, 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. 17. … If any provision of this Act should be invalid, such fact shall not affect the authorization for the creation of the district or the validity of any other provisions of this Act, and the Legislature hereby declares that it would have created the district and enacted the valid provisions of this Act notwithstanding the invalidity of any other provision or provisions hereof.

(2) Section 18, Chapter 84, Acts of the 59th Legislature, Regular Session, 1965, 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 provision as executed. The omitted law reads:

Sec. 18. Proof of publication of the constitutional 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 is hereby found and declared to be proper and sufficient to satisfy such requirement.


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