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81C12(4) MCK

81C12(4) MCK

 

CHAPTER 1085.  PARKER COUNTY HOSPITAL DISTRICT

SUBCHAPTER A.  GENERAL PROVISIONS

Sec. 1085.001.  DEFINITIONS ...............................  3

Sec. 1085.002.  AUTHORITY FOR CREATION ....................  3

Sec. 1085.003.  ESSENTIAL PUBLIC FUNCTION .................  4

Sec. 1085.004.  DISTRICT TERRITORY ........................  4

Sec. 1085.005.  DISTRICT SUPPORT AND MAINTENANCE NOT

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

Sec. 1085.006.  RESTRICTION ON STATE FINANCIAL

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

[Sections 1085.007-1085.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Sec. 1085.051.  BOARD ELECTION; TERM ......................  6

Sec. 1085.052.  NOTICE OF ELECTION ........................  9

Sec. 1085.053.  BALLOT PETITION ........................... 10

Sec. 1085.054.  BOARD VACANCY ............................. 12

Sec. 1085.055.  OFFICERS .................................. 12

Sec. 1085.056.  DISTRICT ADMINISTRATOR; ASSISTANT

                  ADMINISTRATOR ........................... 12

Sec. 1085.057.  GENERAL DUTIES OF DISTRICT

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

Sec. 1085.058.  APPOINTMENT OF STAFF AND EMPLOYEES ........ 14

Sec. 1085.059.  RETIREMENT PROGRAM ........................ 14

Sec. 1085.060.  LEGAL COUNSEL ............................. 15

[Sections 1085.061-1085.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Sec. 1085.101.  DISTRICT RESPONSIBILITY ................... 17

Sec. 1085.102.  RESTRICTION ON POLITICAL SUBDIVISION

                  TAXATION AND DEBT ....................... 18

Sec. 1085.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION ... 19

Sec. 1085.104.  HOSPITAL SYSTEM ........................... 19

Sec. 1085.105.  RULES ..................................... 20

Sec. 1085.106.  PURCHASING AND ACCOUNTING PROCEDURES ...... 20

Sec. 1085.107.  DISTRICT PROPERTY, FACILITIES, AND

                  EQUIPMENT ............................... 21

Sec. 1085.108.  EMINENT DOMAIN ............................ 22

Sec. 1085.109.  GIFTS AND ENDOWMENTS ...................... 23

Sec. 1085.110.  CONTRACTS WITH GOVERNMENTAL ENTITIES

                  FOR CARE AND TREATMENT .................. 24

Sec. 1085.111.  PAYMENT FOR TREATMENT; PROCEDURES ......... 25

[Sections 1085.112-1085.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Sec. 1085.151.  BUDGET .................................... 26

Sec. 1085.152.  NOTICE; HEARING; APPROVAL OF BUDGET ....... 26

Sec. 1085.153.  AMENDMENTS TO BUDGET ...................... 27

Sec. 1085.154.  RESTRICTION ON EXPENDITURES ............... 27

Sec. 1085.155.  FISCAL YEAR ............................... 27

Sec. 1085.156.  AUDIT ..................................... 28

Sec. 1085.157.  FINANCIAL REPORT .......................... 28

Sec. 1085.158.  DEPOSITORY ................................ 28

Sec. 1085.159.  AUTHORITY TO BORROW MONEY ................. 29

[Sections 1085.160-1085.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Sec. 1085.201.  GENERAL OBLIGATION BONDS .................. 30

Sec. 1085.202.  TAX TO PAY GENERAL OBLIGATION BONDS ....... 30

Sec. 1085.203.  GENERAL OBLIGATION BOND ELECTION .......... 32

Sec. 1085.204.  EXECUTION OF GENERAL OBLIGATION BONDS ..... 34

Sec. 1085.205.  REFUNDING BONDS ........................... 34

Sec. 1085.206.  BONDS EXEMPT FROM TAXATION ................ 36

[Sections 1085.207-1085.250 reserved for expansion]

SUBCHAPTER F.  GENERAL TAX PROVISIONS

Sec. 1085.251.  IMPOSITION OF AD VALOREM TAX .............. 39

Sec. 1085.252.  TAX RATE .................................. 40

Sec. 1085.253.  ELECTION TO INCREASE MAXIMUM TAX RATE ..... 41

Sec. 1085.254.  TAX ASSESSOR-COLLECTOR .................... 41

[Sections 1085.255-1085.300 reserved for expansion]

SUBCHAPTER G.  SALES AND USE TAX

Sec. 1085.301.  DEFINITION: TAXABLE ITEM .................. 45

Sec. 1085.302.  SALES AND USE TAX AUTHORIZED .............. 46

Sec. 1085.303.  SALES TAX ................................. 46

Sec. 1085.304.  USE TAX ................................... 47

Sec. 1085.305.  CONSIDERATION OF TAX RATE ................. 47

Sec. 1085.306.  APPLICABILITY OF TAX CODE ................. 47

Sec. 1085.307.  REPEAL OF TAX ............................. 49

CHAPTER 1085.  PARKER COUNTY HOSPITAL DISTRICT

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 1085.001.  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 Parker 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. 1085.002.  AUTHORITY FOR CREATION.  The Parker County Hospital District is created under the authority of Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties prescribed by this chapter.  (Acts 59th Leg., R.S., Ch. 35, Sec. 1 (part).)

Source Law

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

Revised Law

Sec. 1085.003.  ESSENTIAL PUBLIC FUNCTION.  The district performs an essential public function in carrying out the purposes of this chapter.  (Acts 59th Leg., R.S., Ch. 35, Sec. 10 (part).)

Source Law

Sec. 10.  In carrying out the purposes of this Act, the District will be performing an essential public function and … .

Revised Law

Sec. 1085.004.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of Parker County, Texas.  (Acts 59th Leg., R.S., Ch. 35, Sec. 1 (part).)

Source Law

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

Revised Law

Sec. 1085.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION.  The support and maintenance of the district may not become a charge against or obligation of this state.  (Acts 59th Leg., R.S., Ch. 35, Sec. 21 (part).)

Source Law

Sec. 21.  The support and maintenance of the Parker County Hospital District shall never become a charge against or obligation of the State of Texas, … .

Revised Law

Sec. 1085.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE.  The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility.  (Acts 59th Leg., R.S., Ch. 35, Sec. 21 (part).)

Source Law

Sec. 21.  … nor shall any direct appropriation be made by the Legislature for the construction, maintenance or improvement of any of the facilities of such District.

Revisor's Note

(End of Subchapter)

Section 3, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides procedures for holding an election on the creation of the district, the imposition of an ad valorem tax, and the assumption of debt. Section 8, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides for the election to include a proposition authorizing the district to issue bonds.  Because the election creating the district was held, the revised law omits the relevant law as executed.  The omitted law reads:

Sec. 3.  The District shall not be created, nor shall any tax therein be authorized unless and until such creation and such tax are approved by a majority of the qualified property taxpaying electors of the District voting at an election called for such purpose.  Such election may be initiated by the Commissioners Court of Parker County upon its own motion, or shall be called by said Commissioners Court upon presentation of a petition therefor signed by at least fifty (50) qualified property taxpaying electors of the District.  Such election shall be held not less than thirty (30) nor more than sixty (60) days from the time such election is ordered by the Commissioners Court.  The order calling the election shall specify the time and places of holding same, the form of ballot, and the presiding judge for each voting place. Notice of election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in the county once a week for two (2) consecutive weeks, the first publication to appear at least thirty (30) days prior to the date established for the election.  The failure of such election shall not operate to prohibit the calling and holding of subsequent elections for the same purpose.

At said election there shall be submitted to the qualified property taxpaying electors of the District the proposition of whether or not the hospital district shall be created with authority to levy annual taxes … for the purpose of meeting the requirements of the District's bonds, indebtedness assumed by it, and its maintenance and operating expenses, and a majority of the qualified property taxpaying electors of the District voting at said election in favor of the proposition shall be sufficient for its adoption; provided, however, the Commissioners Court may in the election order provide that the tax to be levied by the hospital district, in the event the same is created, shall be less than Seventy-Five Cents (75’) on the One Hundred Dollars ($100) valuation, and in such event such lesser rate shall be inserted in the proposition to appear on the ballot, and … .

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

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

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

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

[Sections 1085.007-1085.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1085.051.  BOARD ELECTION; TERM.  (a)  The board consists of seven directors elected as follows:

(1)  one director elected from each commissioners precinct of Parker County; and

(2)  three directors elected from the district at large.

(b)  The board shall declare the results of the election.

(c)  Directors serve staggered two-year terms unless four-year terms are established under Section 285.081, Health and Safety Code.  (Acts 59th Leg., R.S., Ch. 35, Secs. 4A(a), (b) (part), 4B(b), (d).)

Source Law

Sec. 4A.  (a)  The Commissioners Court may order an election of Directors for the District to be held at the expense of the District. If an election is ordered, the Commissioners Court shall determine:

(1)  the number of Directors on the Board;

(2)  whether the Board members shall be elected by place, at large, from commissioner precincts, or from single-member Districts;

(3)  whether all of the Directors are to be elected at the initial election of Directors or whether only successors to the appointed Directors whose terms expire during the year of the initial election are to be elected with successors to the remaining appointed Directors to be elected at a subsequent election held in the year in which those appointed Directors' terms expire;

(4)  a method of deciding which members of the initial elected Board shall serve for one (1) year and which members shall serve for two (2) years if the entire Board is to be elected at the initial election of Directors; and

(5)  the date on which the initial election of Directors shall be held.

(b)  [If an election of Directors is ordered as provided by Subsection (a) of this section,] …  The Commissioners Court shall appoint election officers, canvass the returns of the election, and declare the results.

[Sec. 4B]

(b)  The duties imposed on the Commissioners Court by Section 4A(b) of this Act shall be assumed by the Board of Directors at subsequent elections.

(d)  After the initial election of Directors, the appropriate number of successor Directors shall be elected to serve for two-year terms and until their successors are elected and have qualified.

Revisor's Note

(1)  Section 4A(a), Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, added by Chapter 472, Acts of the 67th Legislature, Regular Session, 1981, authorized the Parker County Commissioners Court to determine whether the board should be elected, the number of members to be elected, and the manner in which the members are elected. The act also authorized the commissioners court to order the initial election of directors and prescribed the procedures for that election.  The number of directors and how they are elected was established by referendum ballot at a district election held in 1981, and the initial election of directors was held in the spring of 1982.  The election in 1981 established that the board consists of seven directors, including one director elected from each commissioners precinct and three directors elected from the district at large.  The revised law omits the provisions relating to the initial election as executed but codifies the manner of electing the board that resulted from the election.

(2)  Sections 4A(a) and 4B(d), Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provide for directors to 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 4A(b), Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, added by Chapter 472, Acts of the 67th Legislature, Regular Session, 1981, requires the Parker County Commissioners Court to appoint election officers for the initial election of directors, to canvass the returns of the election, and to declare the results.  Section 4B(b) of that act provides for the board to assume these duties at subsequent elections.  The revised law omits the language in Section 4A(b) pertaining to the initial election of directors as executed.  In addition, the revised law omits the requirement that the board appoint election officers as superseded by the 1985 enactment of the Election Code, applicable to the district under Section 1.002, Election Code. Chapters 31 and 32, Election Code, govern the appointment of election officers. Finally, the revised law omits the requirement that the board canvass the results of subsequent directors' elections because it duplicates Section 67.002, Election Code, which requires the governing body of a political subdivision that orders an election to canvass the returns.

(4)  Section 4B(d), Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides for certain procedures to occur "[a]fter the initial election of [d]irectors."  Throughout this chapter, the revised law omits the quoted language as executed.

(5)  Section 4B(d), Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that the directors serve "until their successors  are elected and have 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.

Revised Law

Sec. 1085.052.  NOTICE OF ELECTION.  At least 60 days before the date of an election of directors, the board shall publish notice of the election one time in a newspaper of general circulation in the district.  The notice must state the purpose of the election and the election date.  (Acts 59th Leg., R.S., Ch. 35, Secs. 4A(b) (part), 4B(b).)

Source Law

[Sec. 4A]

(b)  If an election of Directors is ordered as provided by Subsection (a) of this section, the Commissioners Court shall publish notice of the election one (1) time in a newspaper of general circulation in the District at least sixty (60) days before the election date. The notice shall state the purpose of the election and the election date.  …

[Sec. 4B]

(b)  The duties imposed on the Commissioners Court by Section 4A(b) of this Act shall be assumed by the Board of Directors at subsequent elections.

Revisor's Note

Section 4A(b), Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, requires the Parker County Commissioners Court to provide notice of the initial election of directors.  Section 4B(b) of that act provides for the board to assume this duty at subsequent elections.  The revised law omits the language in Section 4A(b) pertaining to the initial election of directors as executed.

Revised Law

Sec. 1085.053.  BALLOT PETITION.  A person who wants to have the person's name printed on the ballot as a candidate for director must file with the board secretary a petition requesting that action.  The petition must:

(1)  be signed by at least 10 registered voters who reside in the district;

(2)  be filed at least 31 days before the date of the election; and

(3)  specify the county commissioners precinct the candidate wants to represent or specify that the candidate wants to represent the district at large.  (Acts 59th Leg., R.S., Ch. 35, Secs. 4A(c) (part), 4B(c).)

Source Law

[Sec. 4A]

(c)  A person who desires to have his name printed on the ballot as a candidate for Director at the initial election of Directors shall file with the Commissioners Court at least thirty-one (31) days before the election date a petition signed by at least ten (10) qualified voters residing in the District asking that his name be printed on the ballot as a candidate.  …  If the Commissioners Court determines that some Board members shall be elected from commissioner precincts and some shall be elected from the District at large, the candidate shall ask that his name be printed on the ballot as a candidate to represent a specific precinct area or the District at large.  …

[Sec. 4B]

(c)  A person who desires to have his name printed on the ballot as a candidate for membership on the Board shall file a petition as provided by Section 4A(c) of this Act with the Secretary of the Board.

Revisor's Note

(1)  Section 4A(c), Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, states that a person must file a petition with the Parker County Commissioners Court to have the person's name included as a candidate for director at the initial election of directors.  Section 4B(c) of the act states that a person  must file the petition with the board secretary to have the person's name included as a candidate for director at subsequent elections.  Since the initial election of directors has been held, the revised law omits the reference in Section 4A(c) to the filing process for the initial election as executed.

(2)  Section 4A(c), Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, describes procedures to be followed if a different method for electing directors had been adopted.  Since the commissioners court determined that some board members are elected by precinct and some are elected from the district at large, the revised law omits those other provisions as inapplicable. The omitted law reads:

(c)  …  If the Commissioners Court determines that Board members shall be elected from commissioner precincts, the candidate shall ask that his name be printed on the ballot as a candidate to represent a specific commissioner precinct.  …  If the Commissioners Court determines that Board members shall be elected by place, the candidate shall designate in his application the place number for which he is to be a candidate.

(3)  Section 4A(c), Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, refers to a petition signed by at least 10 "qualified voters" residing in the district.  Throughout this chapter, the revised law substitutes "registered voters" for the quoted language because in the context of eligibility to sign a petition, Section 277.0021, Election Code, provides that "qualified voter" means "registered voter."

Revised Law

Sec. 1085.054.  BOARD VACANCY.  If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term.  (Acts 59th Leg., R.S., Ch. 35, Sec. 4A(h).)

Source Law

(h)  After the initial election of Directors, a vacancy in the membership of the Board shall be filled for the unexpired term by the remaining members of the Board.

Revised Law

Sec. 1085.055.  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.  (Acts 59th Leg., R.S., Ch. 35, Sec. 4A(g).)

Source Law

(g)  After the initial election of Directors, the Board of Directors shall organize by electing one (1) of their number as President, one (1) as Vice President, and one (1) as Secretary. Officers shall be elected for a term of one (1) year.

Revised Law

Sec. 1085.056.  DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR.  (a)  The board may appoint and employ a qualified person as district administrator.

(b)  The board may appoint and employ 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 any other condition the board may require.  (Acts 59th Leg., R.S., Ch. 35, Sec. 5 (part).)

Source Law

Sec. 5.  The board of directors … shall have the power:

…

(3)  to appoint and employ a qualified person to be the administrator or manager of the hospital district and may in its discretion appoint and employ an assistant to the administrator or manager. Such administrator or manager and assistant administrator or assistant manager, if any, shall serve at the will of the board and shall receive such compensation as may be fixed by the board.  The administrator or manager shall, upon assuming his duties, execute a bond payable to the hospital district in an amount to be set by the board of directors, in no event less than $5,000, conditioned that he shall perform the duties required of him, and containing such other conditions as the board may require.  …

Revisor's Note

Section 5, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that the board may appoint and employ a person as the "administrator or manager" of the district and may appoint and employ an "assistant administrator or assistant manager."  Throughout this chapter, the revised law omits "manager" because, in context, "manager" is included in the meaning of "administrator."

Revised Law

Sec. 1085.057.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.  Subject to the limitations prescribed by the board, the district administrator shall:

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

(2)  direct the affairs of the district.  (Acts 59th Leg., R.S., Ch. 35, Sec. 5 (part).)

Source Law

…

(3)  …  The administrator or manager shall supervise all the work and activities of the district and shall have general direction of the affairs of the district, subject to such limitations as may be prescribed by the board;

… .

Revised Law

Sec. 1085.058.  APPOINTMENT OF STAFF AND EMPLOYEES.  (a)  The board may appoint to the staff any physicians and employ any technicians, nurses, and other employees the board considers necessary for the efficient operation of the district.

(b)  The board may provide that the district administrator has the authority to hire district employees, including technicians and nurses.  (Acts 59th Leg., R.S., Ch. 35, Sec. 5 (part).)

Source Law

Sec. 5.  The board of directors … shall have the power:

…

(4)  to appoint to the staff such physicians and to employ such technicians, nurses, and other employees of every kind and character as may be deemed necessary for the efficient operation of the district.  The board may provide that the administrator or manager shall have the authority to employ technicians, nurses, and employees of the district;

… .

Revised Law

Sec. 1085.059.  RETIREMENT PROGRAM.  The board may enter into a contract or agreement with this state or the federal government as required to establish or continue a retirement program for the benefit of the district's employees.  (Acts 59th Leg., R.S., Ch. 35, Sec. 5 (part).)

Source Law

Sec. 5.  The board of directors … shall have the power:

…

(6)  to enter into such contracts or agreements with the State of Texas or the federal government as may be required to establish or continue a retirement program for the benefit of the district's employees.

Revised Law

Sec. 1085.060.  LEGAL COUNSEL.  (a)  The appropriate county, district, or criminal district attorney charged with representing Parker County in civil matters shall represent the district in all legal matters.

(b)  The district shall contribute sufficient money to the Parker County general fund for the account designated for the appropriate attorney described in Subsection (a) to pay all additional salaries and expenses incurred by the attorney in performing the duties required by the district.

(c)  The board may employ additional legal counsel the board considers advisable.  (Acts 59th Leg., R.S., Ch. 35, Sec. 17.)

Source Law

Sec. 17.  It shall be the duty of the County Attorney, District Attorney or Criminal District Attorney, as the case may be, charged with the duty of representing the county in civil matters, to represent the hospital district in all legal matters; provided, however, that the Board of Directors shall be authorized at its discretion to employ additional legal counsel when the Board deems advisable.

The hospital district shall contribute sufficient funds to the General Fund of the county for the account of the budget of the County Attorney, District Attorney or Criminal Attorney, as the case may be, to pay all additional salaries and expenses incurred by such officer in performing the duties required of him by the District.

Revisor's Note

Section 17, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, refers to "the county." The revised law substitutes "Parker County" for the quoted language because Parker County is the county in which the district is located.

Revisor's Note

(End of Subchapter)

(1)  Sections 2 and 3, Chapter 472, Acts of the 67th Legislature, Regular Session, 1981, provide for the repeal of that act or for the repeal of Section 4, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, depending on whether the Parker County Commissioners Court ordered an election of directors as provided by Section 4A(a), Chapter 35, Acts of the 59th Legislature, Regular Session, 1965.  As stated in Revisor's Note (1) to Section 1085.051, a referendum ballot was submitted to the voters of the district under Section 4A(a)  in 1981 and the initial election of directors was held in the spring of 1982.  The revised law omits Section 2 of the act because the Parker County Commissioners Court ordered an election of directors within the period prescribed by that section. The revised law omits Section 3 of that act as executed.  The omitted law reads:

Sec. 2.  This Act expires if the commissioners court does not order an election of directors as provided by Section 4A(a) of this Act within five years after the effective date of this Act.

Sec. 3.  If the commissioners court orders an election of directors as provided by Section 4A, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, as amended, Section 4 of that Act is repealed when the initial election of directors is held and those elected have qualified.

(2)  Section 4A(d), Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, establishes qualifications for election to the board at the initial election.  The revised law omits that provision as executed.  The omitted law reads:

(d)  To qualify for election to the Board at the initial election, a candidate for Director must be at least eighteen (18) years of age, must be a resident of the District, and if the Commissioners Court determines that members shall be elected from commissioner precincts, a candidate for Director for a precinct area must be a resident of that precinct.

(3)  Section 4A(e), Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides for the expiration of the terms of the directors in office when the initial election of directors occurred under Section 4A(a).  The revised law omits that provision as executed.  The omitted law reads:

(e)  The terms of the appointed members of the Board who are incumbent on the date of the initial election of Directors expire when their successors are elected and have qualified.

(4)  Section 4A(f), Chapter 35, 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 in this state to take the oath (or affirmation) before assuming office.  The omitted law reads:

(f)  Each Director shall take the constitutional oath of office.

(5)  Section 4B(a), Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that the Election Code governs elections of directors except as otherwise provided by that section.  The revised law omits that provision because Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state.  An exception to the application of the Election Code would apply by its own terms.  The omitted law reads:

(a)  Except as provided by this section, the Election Code governs elections of Directors.

[Sections 1085.061-1085.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1085.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for:

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

(2)  providing medical and hospital care for the district's needy inhabitants.  (Acts 59th Leg., R.S., Ch. 35, Secs. 2 (part), 20 (part).)

Source Law

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

Sec. 20.  … The said hospital district shall assume full responsibility for the operation of all hospital facilities for the furnishing of medical and hospital care of indigent persons within its boundaries.

Revisor's Note

Sections 2 and 20, Chapter 35, 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 inhabitants and for the operation of hospital facilities for indigent persons.  The revised law substitutes "has" for the quoted language because the duty to assume responsibility is executed.

Revised Law

Sec. 1085.102.  RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT.  Parker County or a municipality in Parker County may not impose a tax or issue bonds or other obligations for hospital purposes or for medical treatment of indigent persons in the district.  (Acts 59th Leg., R.S., Ch. 35, Sec. 20 (part).)

Source Law

Sec. 20.  After creation of the hospital district, neither Parker County, Texas, nor any city or town therein shall thereafter issue bonds or other evidences of indebtedness for hospital purposes or for medical treatment of indigent persons within such boundaries, nor shall such political subdivisions levy taxes for either of such purposes. …

Revisor's Note

(1)  Section 20, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that "[a]fter creation of the hospital district," certain political subdivisions may not issue bonds or levy taxes.  The revised law omits the quoted language as executed.  In addition, throughout this chapter, the revised law substitutes "impose" for "levy" because the terms are synonymous and the former is more commonly used.

(2)  Section 20, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, refers to a "city or town."  Throughout this chapter, the revised law substitutes "municipality" for the quoted language because the meaning of "municipality" includes both cities and towns and because that is the term used in the Local Government Code.

(3)  Section 20, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that Parker County or a municipality located in Parker County may not issue bonds or other "evidences of indebtedness" for hospital purposes or medical treatment.  The revised law substitutes "obligations" for "evidences of indebtedness" because, in context, the terms are synonymous and "obligations" is more commonly used.

Revised Law

Sec. 1085.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  The board shall manage, control, and administer the district's hospitals and hospital system.  (Acts 59th Leg., R.S., Ch. 35, Sec. 5 (part).)

Source Law

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

Revised Law

Sec. 1085.104.  HOSPITAL SYSTEM.  The district shall provide for:

(1)  the establishment of a hospital system by:

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

(B)  equipping the buildings; and

(2)  the administration of the hospital system for hospital purposes.  (Acts 59th Leg., R.S., Ch. 35, Sec. 2 (part).)

Source Law

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

Revised Law

Sec. 1085.105.  RULES.  The board may adopt rules as required to administer this chapter.  (Acts 59th Leg., R.S., Ch. 35, Sec. 11 (part).)

Source Law

Sec. 11.  The Board of Directors of such District shall have the power … to make such rules and regulations as may be required to carry out the provisions of this Act.

Revisor's Note

Section 11, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that the board may "make such rules and regulations" as required to carry out the act.  The revised law substitutes "adopt" for "make" because the terms are synonymous and the former is more commonly used.  The revised law also omits the reference to "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

Revised Law

Sec. 1085.106.  PURCHASING AND ACCOUNTING PROCEDURES.  The board may prescribe:

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

(2)  all accounting and control procedures.  (Acts 59th Leg., R.S., Ch. 35, Sec. 11 (part).)

Source Law

Sec. 11.  The Board of Directors of such District shall have the power to prescribe the method and manner of making purchases and expenditures by and for such hospital district, and also shall be authorized to prescribe all accounting and control procedures and … .

Revised Law

Sec. 1085.107.  DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT.  (a)  The board shall determine the type, number, and location of buildings required to maintain an adequate hospital system.

(b)  The board may construct, purchase, acquire, lease, add to, maintain, operate, develop, regulate, sell, and convey all land, property, property rights, equipment, hospital facilities, and systems for the maintenance of hospitals, buildings, clinics, structures, and any other facilities.  (Acts 59th Leg., R.S., Ch. 35, Secs. 5 (part), 9.)

Source Law

Sec. 5.  The board of directors … shall have the power:

(1)  to construct, … purchase and acquire, lease, add to, maintain, operate, develop and regulate, sell and convey all land, property, property rights, equipment, hospital facilities, and systems for the maintenance of hospitals, buildings, clinics, structures, and any and all other facilities, and … .

 … .

Sec. 9.  The Board of Directors is hereby given complete discretion as to the type of buildings (both as to number and location) required to establish and maintain an adequate hospital system.

Revisor's Note

Section 9, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, requires the board to determine the buildings required to "establish and maintain" an adequate hospital system.  The revised law omits the reference to establishing the hospital system as executed.

Revised Law

Sec. 1085.108.  EMINENT DOMAIN.  (a)  The district may:

(1)  condemn and purchase all land, property, property rights, equipment, hospital facilities, and systems for the maintenance of hospitals, buildings, clinics, structures, and any other facilities; and

(2)  exercise the power of eminent domain to effect a purpose described by Subdivision (1), or for acquiring or damaging any land or property, including any kind of property appurtenant to that land or property.

(b)  The board must institute and exercise the power of eminent domain under a resolution adopted by the board and in the manner and by the procedure provided by Chapter 21, Property Code.  (Acts 59th Leg., R.S., Ch. 35, Sec. 5 (part).)

Source Law

Sec. 5.  The board of directors … shall have the power:

(1)  to … condemn and purchase, … all land, property, property rights, equipment, hospital facilities, and systems for the maintenance of hospitals, buildings, clinics, structures, and any and all other facilities, and to exercise the right of eminent domain to effectuate the foregoing purposes or for the acquisition and damaging of the same or property of any kind appurtenant thereto, and such right of eminent domain shall be exercised and instituted pursuant to a resolution of the board of directors and constituted in the same manner and by the same procedure as is or may be provided by law for the exercise of the power of eminent domain by incorporated cities and towns of the State of Texas in the acquisition of property rights;

…

Revisor's Note

(1)  Section 5, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that the board must exercise the power of eminent domain in the same manner and by the same procedure as is "provided by law for the exercise of the power of eminent domain by incorporated cities and towns of the State of Texas."  The revised law substitutes for the quoted language a reference to Chapter 21, Property Code, because that is the law governing eminent domain for governmental entities in this state, including municipalities.

(2)  Section 15, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, authorizes the district to exercise the power of eminent domain to acquire property within the district's boundaries.  The revised law omits Section 15 as superseded by language added to Section 5 of the act under Chapter 444, Acts of the 64th Legislature, Regular Session, 1975.  That language is revised in this section.  The omitted law reads:

Sec. 15.  The District shall have the right and power of eminent domain for the purpose of acquiring by condemnation any and all property of any kind and character in fee simple, or any lesser interest therein, within the boundaries of the District necessary or convenient to the powers, rights and privileges conferred by this Act, in the manner provided by the General Law with respect to condemnation by counties.

Revised Law

Sec. 1085.109.  GIFTS AND ENDOWMENTS.  The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district.  (Acts 59th Leg., R.S., Ch. 35, Sec. 19.)

Source Law

Sec. 19.  The Board of Directors of the hospital district is authorized on behalf of such District to accept donations, gifts and endowments to be held in trust and administered by the Board of Directors for such purposes and under such directions, limitations and provisions as may be prescribed in writing by the donor not inconsistent with proper management and object of the hospital district.

Revisor's Note

Section 19, Chapter 35, 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. 1085.110.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT.  (a)  The board may contract with a county or a municipality located outside the district's boundaries for the care and treatment of a sick or injured person of that county or municipality.

(b)  The board may contract with this state or a federal agency for the treatment of a sick or injured person for whom this state or the federal government is responsible.  (Acts 59th Leg., R.S., Ch. 35, Sec. 5 (part).)

Source Law

Sec. 5.  The board of directors … shall have the power:

…

(5)  to contract with any county or incorporated municipality located outside its boundaries for the care and treatment of the sick, diseased, or injured persons of any such county or municipality, and shall have the authority to contract with the State of Texas and agencies of the federal government for the treatment of sick, diseased, or injured persons for whom the State of Texas or the federal government is responsible; and

…

Revisor's Note

(1)  Section 5, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, refers to an "incorporated municipality."  The revised law omits "incorporated" because under the Local Government Code all municipalities must be incorporated.

(2)  Section 5, Chapter 35, 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. 1085.111.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient who resides in the district is admitted to a district facility, the district administrator shall have an inquiry made into the circumstances of:

(1)  the patient; and

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

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

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

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

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

(1)  resolve the dispute or doubt; and

(2)  issue any appropriate orders.

(f)  A final order of the board may be appealed to the district court.  The substantial evidence rule applies to the appeal.  (Acts 59th Leg., R.S., Ch. 35, Sec. 18.)

Source Law

Sec. 18.  Whenever a patient residing within the District has been admitted to the facilities thereof, the Administrator or Manager shall cause inquiry to be made as to his circumstances and those of the relatives of such patient legally liable for his support.  If he finds that such patient or said relatives are able to pay for his care and treatment in whole or in part, an order shall be made directing such patient or said relatives to pay to the hospital district for the support of such patient a specified sum per week in proportion to their financial ability, but such sum shall not exceed the actual per capita cost of maintenance.  The Administrator or Manager shall have power and authority to collect such sums from the estate of the patient or his relatives legally liable for his support in the manner provided by law for collection of expenses in the last illness of a deceased person.  If the Administrator or Manager finds that such patient or said relatives are not able to pay either in whole or in part for his care and treatment in such hospital, same shall become a charge upon the hospital district as to the amount of the inability to pay.  Should there be any dispute as to the ability to pay or doubt in the mind of the Administrator or Manager, the Board of Directors shall hear and determine same after calling witnesses, and shall make such order or orders as may be proper.  Appeals from a final order of the Board shall lie to the District Court.  The substantial evidence rule shall apply.

[Sections 1085.112-1085.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1085.151.  BUDGET.  The district administrator shall prepare an annual budget for approval by the board.  (Acts 59th Leg., R.S., Ch. 35, Sec. 6 (part).)

Source Law

Sec. 6.  … In addition, the Administrator or Manager shall prepare an annual budget for approval by the Board of Directors of said District. …

Revised Law

Sec. 1085.152.  NOTICE; HEARING; APPROVAL OF BUDGET.  (a)  The board shall hold a public hearing on the proposed annual budget.

(b)  Notice of the hearing must be published one time at least 10 days before the date of the hearing.

(c)  The board must approve the annual budget.  (Acts 59th Leg., R.S., Ch. 35, Sec. 6 (part).)

Source Law

Sec. 6.  … A public hearing on the annual budget shall be held by the Board of Directors after notice of such hearing has been published one (1) time at least ten (10) days before the date set therefor. … the annual budget, and … shall be approved by the Board of Directors. …

Revised Law

Sec. 1085.153.  AMENDMENTS TO BUDGET.  The budget may be amended as required by circumstances.  The board must approve all amendments.  (Acts 59th Leg., R.S., Ch. 35, Sec. 6 (part).)

Source Law

Sec. 6.  … The annual budget may be amended from time to time as the circumstances may require, but [the annual budget, and] all amendments thereto, shall be approved by the Board of Directors. …

Revisor's Note

Section 6, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, states that the board may amend the budget "from time to time."  The revised law omits the quoted language because the authority to take an action implies the authority to do so at any time.

Revised Law

Sec. 1085.154.  RESTRICTION ON EXPENDITURES.  Money may be spent only for an expense included in the budget or an amendment to the budget.  (Acts 59th Leg., R.S., Ch. 35, Sec. 6 (part).)

Source Law

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

Revised Law

Sec. 1085.155.  FISCAL YEAR.  The district operates according to a fiscal year that begins on October 1 and ends on September 30.  (Acts 59th Leg., R.S., Ch. 35, Sec. 6 (part).)

Source Law

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

Revised Law

Sec. 1085.156.  AUDIT.  (a)  The district shall have an audit made of the district's financial condition.

(b)  The audit shall be open to inspection at all times at the district's principal office.  (Acts 59th Leg., R.S., Ch. 35, Sec. 6 (part).)

Source Law

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

Revised Law

Sec. 1085.157.  FINANCIAL REPORT.  As soon as practicable after the close of each fiscal year, the district administrator shall prepare for the board:

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

(2)  a complete account of the disbursements of that money.  (Acts 59th Leg., R.S., Ch. 35, Sec. 6 (part).)

Source Law

Sec. 6.  … As soon as practicable after the close of each fiscal year the Administrator or Manager shall prepare for the Board a full sworn statement of all moneys belonging to the District and a full account of the disbursements of same.

Revised Law

Sec. 1085.158.  DEPOSITORY.  (a)  The board shall select one or more financial institutions to serve as a depository for district money.

(b)  District money shall be immediately deposited on receipt with a depository institution, except that sufficient money must be remitted to the institution designated for the payment of principal of and interest on the district's outstanding bonds or other obligations assumed by the district in time for the institution to make that payment on or before the maturity date of the principal and interest.

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

(d)  Membership on the district's board of an officer or director of a financial institution does not disqualify the institution from being designated as a depository.  (Acts 59th Leg., R.S., Ch. 35, Sec. 12.)

Source Law

Sec. 12.  The Board of Directors of the District shall name one or more financial institutions to serve as depository for the funds of the District.  All such funds shall, as derived and collected, be immediately deposited with a depository institution, except that sufficient funds shall be remitted to the institution designated for the payment of principal of and interest on the outstanding bonds of the District or other obligations assumed by it and in time that such money may be received by that institution for payment on or prior to the date of maturity of such principal and interest so to be paid. To the extent that funds in a depository institution are not insured by the Federal Deposit Insurance Corporation, they shall be secured in the manner provided by law for security of county funds. Membership on the Board of Directors of an officer or director of a financial institution shall not disqualify such institution from being designated as depository.

Revisor's Note

Section 12, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, refers to money "derived and collected."  The revised law substitutes "on receipt" for the quoted language because the terms are synonymous, and the former is more commonly used.

Revised Law

Sec. 1085.159.  AUTHORITY TO BORROW MONEY.  The board may contract indebtedness or borrow money for district purposes on the credit of the district or secured by revenues of district hospitals and the hospital system.  (Acts 59th Leg., R.S., Ch. 35, Sec. 5 (part).)

Source Law

Sec. 5.  The board of directors … shall have the power:

…

(2)  to contract indebtedness or borrow money for corporate purposes on the credit of the corporation or the revenues of the said hospitals and hospital system, and … .

[Sections 1085.160-1085.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Revised Law

Sec. 1085.201.  GENERAL OBLIGATION BONDS.  The board may issue and sell general obligation bonds in the name and on the faith and credit of the district for any purpose related to the purchase, construction, acquisition, repair, or renovation of improvements and equipping improvements for hospitals and the hospital system, as determined by the board.  (Acts 59th Leg., R.S., Ch. 35, Secs. 5 (part), 7 (part).)

Source Law

Sec. 5.  The board of directors … shall have the power:

…

(2)  … to issue bonds as herein provided;

…

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

Revisor's Note

Section 7, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that the board has the power and authority to issue and sell bonds in the name and on the faith and credit of the district.  Because the type of bonds described by Section 7 are known as "general obligation bonds," the revised law is drafted accordingly.

Revised Law

Sec. 1085.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  At the time general obligation bonds are issued under Section 1085.201, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund and to pay the principal of and interest on the bonds as the bonds mature.

(b)  The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed the lesser of:

(1)  the maximum tax rate approved by district voters; or

(2)  75 cents on each $100 valuation of all taxable property in the district.  (Acts 59th Leg., R.S., Ch. 35, Sec. 7 (part).)

Source Law

Sec. 7.  …  At the time of the issuance of any such bonds a tax shall be levied by the Board sufficient to create an interest and sinking fund and to pay the interest on and principal of said bonds as same mature, providing such tax together with any other taxes levied for said District shall not exceed the maximum rate of tax approved by the resident qualified property taxpaying voters or Seventy-Five Cents (75’) on each One Hundred Dollars ($100) valuation of taxable property in any one (1) year, whichever amount is lesser. …

Revisor's Note

(1)  Section 7, Chapter 35, 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.

(2)  Section 7, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, refers to "the resident qualified property taxpaying voters" of the district.  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.  The revised law omits the reference to "property taxpaying" voters because in Hill v. Stone, 421 U.S. 289, 95 S.Ct. 1637 (1975), the United States Supreme Court determined that property ownership as a qualification for voting is an unconstitutional denial of equal protection.

Revised Law

Sec. 1085.203.  GENERAL OBLIGATION BOND ELECTION.  (a)  The board may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

(b)  The board shall call the election.  The election must be held in accordance with Chapter 1251, Government Code.

(c)  The bond election order must specify:

(1)  the date of the election;

(2)  the location of the polling places;

(3)  the presiding election officers;

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

(5)  the maximum interest rate of the bonds; and

(6)  the maximum maturity of the bonds.  (Acts 59th Leg., R.S., Ch. 35, Sec. 7 (part).)

Source Law

Sec. 7.  …  No bonds shall be issued by such hospital district … until authorized by a majority of the qualified electors of the District who own taxable property therein and who have duly rendered the same for taxation voting at an election called for such purpose.  Except as provided in Section 8, such election shall be called by the Board of Directors and held in accordance with the provisions of Chapter 1, Title 22 of the Revised Civil Statutes of Texas, as amended, and except as therein otherwise provided, shall be conducted in accordance with the General Laws of Texas pertaining to elections. … The bond election order shall specify the date of the election, the amount of bonds to be authorized, the maximum maturity thereof, the maximum rate of interest they are to bear, the place or places where the election shall be held and the presiding officers thereof. …

Revisor's Note

(1)  Section 7, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, refers to a majority vote of the "qualified electors of the District who own taxable property therein and who have duly rendered the same for taxation."  The revised law omits the references to "qualified" and to property ownership as a qualification for voting for the reasons stated in Revisor's Note (2) to Section 1085.202.  In addition, throughout this chapter, the revised law substitutes "voter" for "elector" because the former is the term used in the Election Code.

(2)  Section 7, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, states that "[e]xcept as provided in Section 8," the bond election shall be called by the board and held in accordance with certain election laws.  As explained in the revisor's note to the end of Subchapter A, Section 8 is omitted from the revised law as executed.  The revised law therefore omits the reference.

(3)  Section 7, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that an election must be "held in accordance with the provisions of Chapter 1, Title 22 of the Revised Civil Statutes of Texas, as amended, and except as therein otherwise provided, shall be conducted in accordance with the General Laws of Texas pertaining to elections."  The election provisions of Chapter 1, Title 22, Revised Statutes, are codified as Chapter 1251, Government Code, and the revised law is drafted accordingly.  The revised law omits the reference to "except as therein otherwise provided" because an exception to the application of the Election Code in Chapter 1251, Government Code, would apply by its own terms.  The revised law omits the reference to the "General Laws of Texas pertaining to elections" because Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state.

(4)  Section 7, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, requires the district to make provisions for defraying the costs of elections.  The revised law omits that provision because it duplicates Section 1.014, Election Code, applicable to the district under Section 1.002 of that code.  The omitted law reads:

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

Revised Law

Sec. 1085.204.  EXECUTION OF GENERAL OBLIGATION BONDS.  The board president shall execute the general obligation bonds in the district's name and the board secretary shall attest the bonds as provided by Chapter 618, Government Code.  (Acts 59th Leg., R.S., Ch. 35, Sec. 7 (part).)

Source Law

Sec. 7.  … Such bonds shall be executed in the name of the hospital district and in its behalf by the President of the Board and attested by the Secretary, as provided by Article 717j-1, V.C.S., and … .

Revisor's Note

Section 7, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, refers to Article 717j-1, Vernon's Texas Civil Statutes.  That statute was codified in 1999 as Chapter 618, Government Code, and the revised law is drafted accordingly.

Revised Law

Sec. 1085.205.  REFUNDING BONDS.  (a)  The board may, without an election, issue refunding bonds to refund any bonds issued or assumed by the district.

(b)  A refunding bond may be:

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

(2)  exchanged wholly or partly for not less than a similar principal amount of the outstanding bonds.  (Acts 59th Leg., R.S., Ch. 35, Sec. 7 (part).)

Source Law

Sec. 7.  …  [No bonds shall be issued by such hospital district] except refunding bonds [until authorized by a majority of the qualified electors … voting at an election … .]

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

Revisor's Note

(1)  Section 7, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, limits the interest rate for refunding bonds issued by the district.  The revised law omits that provision as impliedly repealed by Section 2(a), Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), which was codified in 1999 as Section 1204.006(a), Government Code.  Section 1204.006(a), Government Code, permits a public agency, including a hospital district, to issue bonds at a net effective interest rate not to exceed 15 percent and applies to district bonds by application of Section 1204.001, Government Code. The omitted law reads:

Sec. 7.  … provided that if refunding bonds are to be exchanged for a like amount of said outstanding bonds, such refunding bonds shall bear interest at the same or lower rate than borne by the bonds refunded, unless it is shown mathematically that a saving will result in the total amount of interest to be paid on said refunding bonds, and … .

(2)  Section 7, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that refunding bonds sold to pay outstanding bonds or other refundable indebtedness must be issued and payments made in the manner specified by "Article 717k, Revised Civil Statutes of Texas, as amended."  Article 717k was codified in 1999 as part of Chapter 1207, Government Code.  The revised law omits the provision because Chapter 1207, Government Code, applies to the district by its own terms under Section 1207.001, Government Code.  The omitted law reads:

Sec. 7.  … provided further, that if such refunding bonds are to be sold and the proceeds thereof applied to the payment of any such outstanding bonds or other refundable indebtedness, same shall be issued and payments made in the manner specified by Article 717k, Revised Civil Statutes of Texas, as amended.

Revised Law

Sec. 1085.206.  BONDS EXEMPT FROM TAXATION.  The following are exempt from taxation by this state or a political subdivision of this state:

(1)  bonds issued by the district;

(2)  the transfer and issuance of the bonds; and

(3)  profits made in the sale of the bonds.  (Acts 59th Leg., R.S., Ch. 35, Sec. 10 (part).)

Source Law

Sec. 10.  … any bonds issued by it [the district] and their transfer, and the issuance therefrom, including any profits made in the sale thereof, shall at all times be free from taxation by the state or any municipality or political subdivision thereof.

Revisor's Note

Section 10, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, refers to "any municipality or political subdivision" of this state.  The revised law omits "municipality" because that term is included in the meaning of "political subdivision."

Revisor's Note

(End of Subchapter)

(1)  Section 7, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that the district's general obligation bonds are subject to the law governing counties that relates to bond approval by the attorney general and registration of the bonds by the comptroller.  The revised law omits that provision as superseded by Chapter 1202, Government Code (enacted as Article 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987).  Section 1202.003(a), Government Code, requires bonds to be submitted to the attorney general.  Section 1202.003(b), Government Code, provides for approval of the bonds by the attorney general and requires the attorney general to submit the approved bonds to the comptroller for registration.  Section 1202.005, Government Code, requires registration of the bonds by the comptroller.  Chapter 1202, Government Code, applies to district bonds by application of Section 1202.001, Government Code.  The omitted law reads:

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

(2)  Section 14, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds are authorized investments for certain entities.  The revised law omits the provision as unnecessary.  As to several of the entities listed, Section 14 has been superseded and impliedly repealed.  Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)).  Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)).  Investments in securities by savings and loan associations are regulated by Sections 63.002 and 64.001, Finance Code.  As to the remaining entities listed, Section 14 is superseded by Section 1201.041, Government Code (enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes)).  While Section 14 lists "guardians" and Section 1201.041 does not, the latter statute includes "fiduciaries," and a guardian is a fiduciary.  Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code.  The revised law omits the reference to public funds of this state because it has been superseded by Section 404.024, Government Code (enacted in 1985 as Section 2.014, Treasury Act (Article 4393-1, Vernon's Texas Civil Statutes)), which governs the investment of state funds.  Section 404.024(b)(10), Government Code, authorizes the investment of state funds in obligations of political subdivisions, including hospital districts.  The omitted law reads:

Sec. 14.  All bonds of the District shall be and are hereby declared to be legal and authorized investments of banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, fiduciaries, trustees, guardians, and sinking funds of cities, towns, villages, counties, school districts, or other political subdivisions of the State of Texas, and for all public funds of the State of Texas or its agencies including the State Permanent School Fund. …

(3)  Section 14, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, effectively provides that district bonds may secure deposits of public funds of this state or political subdivisions of this state.  The revised law omits the provision as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions.  The omitted law reads:

Sec. 14.  …  Such bonds shall be eligible to secure deposit of public funds of the State of Texas and public funds of cities, towns, villages, counties, school districts or other political subdivisions or corporations of the State of Texas, and such bonds shall be lawful and sufficient security for said deposits to the extent of their value when accompanied by all unmatured coupons appurtenant thereto.

[Sections 1085.207-1085.250 reserved for expansion]

SUBCHAPTER F.  GENERAL TAX PROVISIONS

Revised Law

Sec. 1085.251.  IMPOSITION OF AD VALOREM TAX.  (a)  The board shall impose a tax on all property in the district subject to district taxation.

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

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

(2)  the maintenance and operating expenses of the district.  (Acts 59th Leg., R.S., Ch. 35, Secs. 13 (part), 16 (part).)

Source Law

Sec. 13.  The Board of Directors shall annually levy a tax … for the purpose of paying (1) the indebtedness assumed or issued by the District, and (2) the maintenance and operating expenses of the District… .

Sec. 16.  The District taxes shall be assessed and collected … upon all taxable property within said District, subject to hospital district taxation. …

Revised Law

Sec. 1085.252.  TAX RATE.  (a) The board may impose the tax at a rate not to exceed the lesser of:

(1)  the maximum tax rate approved by district voters; or

(2)  75 cents on each $100 valuation of all taxable property in the district.

(b)  In setting the tax rate, the board shall consider the income of the district from sources other than taxation.  (Acts 59th Leg., R.S., Ch. 35, Secs. 3 (part), 13 (part).)

Source Law

Sec. 3.  … [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 Dollars ($100) valuation of taxable property within such District … provided, however, the Commissioners Court may in the election order provide that the tax to be levied by the hospital district, … shall be less than Seventy-Five Cents (75’) on the One Hundred Dollars ($100) valuation, and in such event … such rate shall be the maximum tax which may be levied by the District for all of the purposes aforesaid. …

Sec. 13.  [The board of directors shall annually levy a tax] of not to exceed the amount hereinabove permitted … . In setting such tax rate the Board shall take into consideration the income of the District from sources other than taxation. …

Revisor's Note

Section 13, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, requires the board to levy the tax and to certify the tax rate to the county tax assessor-collector.  The revised law omits that provision because Section 26.05(a), Tax Code, requires the governing body of a taxing unit to adopt a tax rate for the current tax year and to notify the tax assessor of that rate.  The omitted law reads:

Sec. 13.  …  Upon determination of the amount of tax required to be levied, the Board shall make such levy and certify the same to the Tax Assessor-Collector of Parker County, Texas.

Revised Law

Sec. 1085.253.  ELECTION TO INCREASE MAXIMUM TAX RATE.  (a)  The board may order an election to increase the district's maximum tax rate to a rate not to exceed 75 cents on each $100 valuation of taxable property in the district.

(b)  The maximum tax rate may not be increased unless the increase is approved by a majority of the district voters voting in an election held for that purpose.

(c)  An election held under this section must be ordered and notice must be given in the manner provided for a bond election under Subchapter E.  (Acts 59th Leg., R.S., Ch. 35, Sec. 3 (part).)

Source Law

Sec. 3.  …  The Board of Directors of the District, in the event the same is created, shall have the authority to call a subsequent election or elections for the purpose of determining whether the maximum rate of tax shall be increased, but in no event shall the District ever be authorized to levy a tax in excess of Seventy-Five Cents (75’) on the One Hundred Dollars ($100) valuation.  The election to increase the maximum tax shall be called and notice thereof given in the manner provided in Section 7 of this Act with respect to the issuance of bonds by the District, and only resident qualified property taxpaying electors of the District shall be permitted to vote, a majority of those participating in the election being required to authorize such higher rate of taxation… .

Revisor's Note

Section 3, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, states that "only resident qualified property taxpaying electors of the District shall be permitted to vote" in an election to increase the tax rate.  The revised law omits the references to "qualified" and to property ownership as a qualification for voting for the reasons stated in Revisor's Note (2) to Section 1085.202.

Revised Law

Sec. 1085.254.  TAX ASSESSOR-COLLECTOR.  The tax assessor-collector of Parker County shall assess and collect taxes imposed by the district.  (Acts 59th Leg., R.S., Ch. 35, Sec. 16 (part).)

Source Law

Sec. 16.  …  The Tax Assessor-Collector of Parker County shall be charged and required to accomplish the assessment and collection of all taxes levied by and on behalf of the District. …

Revisor's Note

(1)  Section 16, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, requires district taxes to be assessed and collected on county tax values in the same manner as provided by law with relation to county taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979, which repealed all "general, local, and special laws" that conflicted with that act.  The 1979 Act enacted the Property Tax Code (Title 1, Tax Code), a comprehensive, substantive codification of property tax law.  Title 1, Tax Code, provides the exclusive procedures for the appraisal of property for taxation by a taxing unit, including a hospital district, and for the assessment and collection of those taxes.  The omitted law reads:

Sec. 16.  … The District taxes shall be assessed and collected on county tax values in the same manner as provided by law with relation to county taxes … .

(2)  Section 16, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that the county tax assessor-collector may charge a fee for the assessment and collection of district taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (1).  Section 6.27(b), Tax Code,  provides for the compensation of a county tax assessor-collector assessing and collecting taxes for another taxing unit.  The omitted law reads:

Sec. 16.  . . .  The Assessor-Collector of taxes shall charge and deduct from payments to the hospital district the dues for assessing and collecting the taxes at a rate of not to exceed one per cent (1%) for assessing, and one per cent (1%) for collecting, each based upon the amount collected.  Such fees shall be deposited in the officers' salary fund of the county and reported as fees of office of the County Assessor-Collector. …

(3)  Section 16, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that interest and penalties on district taxes and discounts are the same as for county taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  See Revisor's Note (1). Chapter 33, Tax Code, provides for the assessment of penalties and interest on delinquent taxes, and Section 31.05, Tax Code, provides for discounts on the early payment of taxes.  The omitted law reads:

Sec. 16.  … Interest and penalties on taxes paid to the hospital district shall be the same as in the case of county taxes.  Discounts shall be the same as allowed by the county. …

(4)  Section 16, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that tax revenue shall be deposited in the district's depository.  The revised law omits the provision because Section 31.10, Tax Code, requires the tax assessor-collector of a taxing unit to deposit taxes collected in the unit's depository.  The omitted law reads:

Sec. 16.  … The residue of tax collections, after deduction of discounts and fees for assessing and collecting, shall be deposited in the District's depository. …

(5)  Section 16, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that the bond of the county tax assessor-collector is security for the performance of district duties unless the board determines that an additional bond is necessary.  The revised law omits that provision because it duplicates Section 6.29(b), Tax Code, which authorizes a taxing unit for which the county tax assessor-collector collects a tax to require that collector to post an additional bond.  The omitted law reads:

Sec. 16.  … The bond of the County Tax Assessor-Collector shall stand as security for the proper performance of his duties as Assessor-Collector of the District, or if in the judgment of the District Board of Directors it is necessary, additional bond payable to the District may be required. …

(6)  Section 16, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, states that the tax assessor-collector may act in accordance with state law relating to the assessment, collection, and enforcement of state and county taxes.  The revised law omits that provision as unnecessary.  The state law relating to the assessment, collection, and enforcement of all ad valorem taxes is Title 1, Tax Code.  Section 1.02, Tax Code, requires all taxing units of government to administer the assessment, collection, and enforcement of taxes in conformity with that title.  The omitted law reads:

Sec. 16.  …  In all matters pertaining to the assessment, collection and enforcement of taxes for the District, the County Tax Assessor-Collector shall be authorized to act in all respects according to the laws of the State of Texas relating to state and county taxes.

Revisor's Note

(End of Subchapter)

Section 16, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that the district may impose taxes for the entire year in which the district is established.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 16.  …  The Board of Directors shall have the authority to levy the aforesaid tax for the entire year in which said District is established as the result of the election herein provided.

[Sections 1085.255-1085.300 reserved for expansion]

SUBCHAPTER G.  SALES AND USE TAX

Revised Law

Sec. 1085.301.  DEFINITION: TAXABLE ITEM.  (a)  In this subchapter, "taxable item" includes only an item that is subject to a sales and use tax that might also be imposed by Parker County in the district. The term does not include an item that is not subject to a sales and use tax imposed by Parker County in the district.

(b)  A change in the taxable status of an item for purposes of a sales and use tax imposed by Parker County results in the same change in the taxable status of the item for purposes of the tax imposed by the district.  (Acts 59th Leg., R.S., Ch. 35, Sec. 13A(b) (part).)

Source Law

(b)  …  For purposes of this section, the term "taxable items" shall include all items subject to any sales and use tax that might also be imposed by Parker County within the affected region. The term "taxable items" shall not include any items that are not subject to a sales and use tax imposed by Parker County within the affected region. Any change in the taxable status of an item for purposes of a sales and use tax imposed by Parker County shall effect the same change at the same time in taxable status of the item under the tax imposed under this Act… .

Revisor's Note

Section 13A(b), Acts of the 59th Legislature, Regular Session, 1965, refers to the "affected region."  It is clear from the source law that the "affected region" for purposes of this subchapter is the hospital district. Therefore, the revised law substitutes "district" for "affected region" throughout this subchapter.

Revised Law

Sec. 1085.302.  SALES AND USE TAX AUTHORIZED.  The district may adopt a sales and use tax for the benefit of the district if the tax is approved by a majority of the voters of the district voting at an election held for that purpose.  (Acts 59th Leg., R.S., Ch. 35, Sec. 13A(a) (part).)

Source Law

Sec. 13A.  (a)  The District may levy a sales and use tax for the benefit of the District if the tax is authorized by a majority of the qualified voters of the District voting at an election called and held for that purpose.  …

Revisor's Note

Section 13A(a), Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that the district may levy a sales and use tax if the tax is authorized at an election "called and held" for that purpose.  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. 1085.303.  SALES TAX.  (a)  If the district adopts the tax under Section 1085.302, a tax is imposed on the receipts from the sale at retail of taxable items in the district.

(b)  The rate of the tax imposed under Subsection (a) is  one-half of one percent.  (Acts 59th Leg., R.S., Ch. 35, Sec. 13A(b) (part).)

Source Law

(b)  If the District adopts the tax, there is imposed a tax on the receipts from the sale at retail of taxable items within the District at the rate of one-half of one percent.  …

Revised Law

Sec. 1085.304.  USE TAX.  (a)  If the district adopts the tax under Section 1085.302, an excise tax is imposed on the use, storage, or other consumption in the district of taxable items purchased, leased, or rented from a retailer during the period that the tax is effective in the district.

(b)  The rate of the excise tax is the same as the rate of the sales tax portion of the sales and use tax and is applied to the sales price of the taxable items.  (Acts 59th Leg., R.S., Ch. 35, Sec. 13A(b) (part).)

Source Law

(b)  …  There is also imposed an excise tax on the use, storage, or other consumption within the District of taxable items purchased, leased, or rented from a retailer during the period that the tax is effective within the District. The rate of the excise tax is the same as the rate of the sales tax portion of the tax and is applied to the sales price of the taxable items.

Revised Law

Sec. 1085.305.  CONSIDERATION OF TAX RATE.  The rate of the sales and use tax imposed by the district under this subchapter is not counted in determining the limitation prescribed by law on local sales and use taxes imposed by a municipality or county in the district.  (Acts 59th Leg., R.S., Ch. 35, Sec. 13A(a) (part).)

Source Law

(a)  …  Such sales and use tax, if adopted, shall not count toward the limitation already imposed by law upon sales and use taxes levied by a city or a county in the affected region.

Revised Law

Sec. 1085.306.  APPLICABILITY OF TAX CODE.  (a) Except as provided by Subsection (b) and Section 1085.307, Chapter 323, Tax Code, governs:

(1)  an election to approve the adoption of the sales and use tax under this subchapter; and

(2)  the imposition, computation, administration, governance, use, and repeal of the tax.

(b)  The following sections of the Tax Code do not apply to the sales and use tax under this subchapter:

(1)  Sections 323.101(d) and (e); and

(2)  Section 323.209.

(c)  In determining procedures under Chapter 323, Tax Code:

(1)  a reference in that chapter to "the county" means the district; and

(2)  a reference to the "commissioners court" means the board. (Acts 59th Leg., R.S., Ch. 35, Sec. 13A(c).)

Source Law

(c)  The County Sales and Use Tax Act (Chapter 323, Tax Code) governs an election to authorize the imposition of the sales and use tax and governs the imposition, computation, administration, governance, abolition, and use of the tax, except that Sections 323.101(d) and (e) and Section 323.209 do not apply. In determining procedures under the County Sales and Use Tax Act (Chapter 323, Tax Code), the District's name is substituted for "the county" and "Board of Directors" is substituted for "commissioners court."

Revisor's Note

(1)  Section 13A(c), Acts of the 59th Legislature, Regular Session, 1965, provides that Chapter 323, Tax Code, governs an election to "authorize the imposition" of the sales and use tax under Section 13A and governs the "abolition" of the tax.  For consistency with the terminology used in Chapter 323, Tax Code, the revised law substitutes "approve" for "authorize," "adoption" for authorizing the imposition, and "repeal" for "abolition" throughout this subchapter.

(2)  Section 13A(c), Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that Chapter 323, Tax Code, governs the repeal of the tax.  Section 13A(d), Chapter 35, Acts of the 59th Legislature, Regular Session, 1965,  codified as Section 1085.307, provides repeal procedures that differ in part from the procedures prescribed by Chapter 323, Tax Code, and the revised law is drafted accordingly.

Revised Law

Sec. 1085.307.  REPEAL OF TAX.  (a)  If the district adopts the tax under Section 1085.302, the county clerk of Parker County shall place on the ballot a proposition on the question of repealing the tax if the county clerk receives a petition requesting the repeal that is signed by a number of registered voters of the district equal to at least 10 percent of the total number of votes cast in the most recent election at which the adoption of the tax was approved.

(b)  The county clerk shall place the proposition on the ballot at the first November uniform election date that occurs at least 121 days after the date the county clerk receives the petition.

(c)  If a majority of the voters voting in the election to repeal the tax approve the repeal, the repeal of the tax takes effect on the January 1 following the election.  (Acts 59th Leg., R.S., Ch. 35, Sec. 13A(d).)

Source Law

(d)  The sales and use tax for the Parker County Hospital District, if approved, may subsequently be repealed in the following manner: A petition containing signatures from registered voters in quantity not less than ten per cent (10%) of the total number of all votes cast on the most recent successful proposition to establish such sales and use tax shall be submitted to the County Clerk who shall proceed to place such question of repeal on the official ballot for the consideration of all voters on the first Tuesday after the first Monday in November of any year; provided, however, that if a proper petition be presented to the County Clerk within one hundred twenty (120) days prior to the first Tuesday after the first Monday in November, then the County Clerk shall place such question on the ballot on such date the following year. If a majority of the votes be cast in favor of repealing the sales and use tax, then such tax shall cease to be levied on the following January 1.

Revisor's Note

Section 13A(d), Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, refers to an election held on "the first Tuesday after the first Monday in November." The revised law substitutes uniform election date in November because, under Section 41.001, Election Code, the first Tuesday after the first Monday in November is the uniform election date in November.

Revisor's Note

(End of Subchapter)

Section 5, Chapter 66, Acts of the 71st Legislature, Regular Session, 1989, states that the sales and use tax may not be imposed before January 1, 1991.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 5.  The tax adopted under Section 13A, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, as added by this Act, shall not be imposed prior to January 1, 1991.

Revisor's Note

(End of Chapter)

(1)  Section 2, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides for the transfer of certain land, buildings, improvements, and equipment to the district after the district is created and provides for the assumption of debt by the district on creation.  The revised law omits the provisions as executed.  The omitted law reads:

Sec. 2.  The District herein authorized to be created shall take over and there shall be transferred to it title to all lands, buildings, improvements and equipment in anywise pertaining to the hospitals or hospital system owned by Parker County and any city or town within such county and … .  [Such District] … shall assume the outstanding indebtedness which shall have been incurred by any city or town or by Parker County for hospital purposes prior to the creation of said District.

(2)  Section 22, Chapter 35, 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. 22.  If any of the provisions of this Act, or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and to this end the provisions of this Act are declared to be severable.

(3)  Section 23, Chapter 35, Acts of the 59th Legislature, Regular Session, 1965, provides that public notice of the enactment of the statute was provided in a manner that satisfies the requirements of the Texas Constitution.  The revised law omits that section as executed.  The omitted law reads:

Sec. 23.  Proof of publication of the notice required in the enactment hereof under the provisions of Section 9 of Article IX of the Texas Constitution has been made in the manner and form provided by law pertaining to the enactment of local and special laws, and such notice is hereby found and declared proper and sufficient to satisfy such requirement.

TLC: Special District Local Laws Code Proposed Chapters

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