81C181(3) LJW

 

CHAPTER 1097.  SOUTH WHEELER COUNTY HOSPITAL DISTRICT

SUBCHAPTER A.  GENERAL PROVISIONS

Sec. 1097.001.  DEFINITIONS ...............................  3

Sec. 1097.002.  AUTHORITY FOR CREATION ....................  3

Sec. 1097.003.  ESSENTIAL PUBLIC FUNCTION .................  3

Sec. 1097.004.  DISTRICT TERRITORY ........................  4

Sec. 1097.005.  DISTRICT SUPPORT AND MAINTENANCE NOT

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

Sec. 1097.006.  RESTRICTION ON STATE FINANCIAL

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

[Sections 1097.007-1097.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Sec. 1097.051.  BOARD ELECTION; TERM ......................  6

Sec. 1097.052.  NOTICE OF ELECTION ........................  9

Sec. 1097.053.  BALLOT PETITION ...........................  9

Sec. 1097.054.  QUALIFICATIONS FOR OFFICE ................. 10

Sec. 1097.055.  BOND; RECORD OF BOND AND OATH OR

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

Sec. 1097.056.  BOARD VACANCY ............................. 12

Sec. 1097.057.  OFFICERS .................................. 12

Sec. 1097.058.  VOTING REQUIREMENT ........................ 12

Sec. 1097.059.  DISTRICT ADMINISTRATOR; ASSISTANT

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

Sec. 1097.060.  GENERAL DUTIES OF DISTRICT

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

Sec. 1097.061.  EMPLOYEES ................................. 14

Sec. 1097.062.  RETIREMENT PROGRAM ........................ 15

[Sections 1097.063-1097.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Sec. 1097.101.  DISTRICT RESPONSIBILITY ................... 15

Sec. 1097.102.  RESTRICTION ON POLITICAL SUBDIVISION

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

Sec. 1097.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION ... 17

Sec. 1097.104.  HOSPITAL SYSTEM ........................... 17

Sec. 1097.105.  RULES ..................................... 17

Sec. 1097.106.  PURCHASING AND ACCOUNTING PROCEDURES ...... 18

Sec. 1097.107.  EMINENT DOMAIN ............................ 19

Sec. 1097.108.  GIFTS AND ENDOWMENTS ...................... 20

Sec. 1097.109.  CONTRACTS WITH GOVERNMENTAL ENTITIES

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

Sec. 1097.110.  PAYMENT FOR TREATMENT; PROCEDURES ......... 21

Sec. 1097.111.  AUTHORITY TO SUE AND BE SUED .............. 22

[Sections 1097.112-1097.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Sec. 1097.151.  BUDGET .................................... 23

Sec. 1097.152.  FISCAL YEAR ............................... 23

Sec. 1097.153.  AUDIT ..................................... 23

Sec. 1097.154.  FINANCIAL REPORT .......................... 24

Sec. 1097.155.  DEPOSITORY ................................ 24

[Sections 1097.156-1097.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Sec. 1097.201.  GENERAL OBLIGATION BONDS .................. 25

Sec. 1097.202.  TAX TO PAY GENERAL OBLIGATION BONDS ....... 26

Sec. 1097.203.  GENERAL OBLIGATION BOND ELECTION .......... 27

Sec. 1097.204.  EXECUTION OF GENERAL OBLIGATION BONDS ..... 29

Sec. 1097.205.  REFUNDING BONDS ........................... 29

Sec. 1097.206.  BONDS EXEMPT FROM TAXATION ................ 31

[Sections 1097.207-1097.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Sec. 1097.251.  IMPOSITION OF AD VALOREM TAX .............. 34

Sec. 1097.252.  TAX RATE .................................. 35

Sec. 1097.253.  TAX ASSESSOR-COLLECTOR .................... 35

CHAPTER 1097.  SOUTH WHEELER COUNTY HOSPITAL DISTRICT

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 1097.001.  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 South Wheeler County Hospital District.  (New.)

Revisor's Note

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

Revised Law

Sec. 1097.002.  AUTHORITY FOR CREATION.  The South Wheeler County Hospital District is created under the authority of Section 9, Article IX, Texas Constitution, and has the rights, powers, and duties prescribed by this chapter. (Acts 58th Leg., R.S., Ch. 261, 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, South Wheeler County Hospital District is hereby authorized to be created and … possess such rights, powers and duties as are hereinafter prescribed.

Revised Law

Sec. 1097.003.  ESSENTIAL PUBLIC FUNCTION.  The district performs an essential public function in carrying out the purposes of this chapter.  (Acts 58th Leg., R.S., Ch. 261, 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. 1097.004.  DISTRICT TERRITORY.  The boundaries of the district are coextensive with the boundaries of County Commissioners Precincts 3 and 4 of Wheeler County, Texas, as those boundaries existed on January 1, 1963.  (Acts 58th Leg., R.S., Ch. 261, Sec. 1 (part).)

Source Law

Sec. 1.  … [South Wheeler County Hospital District] … as created shall have boundaries coextensive with the boundaries of Commissioners Precincts 3 and 4 of Wheeler County, as constituted on January 1, 1963, and … .

Revised Law

Sec. 1097.005.  DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION.  The support and maintenance of the district may not become a charge against or obligation of this state.  (Acts 58th Leg., R.S., Ch. 261, Sec. 20 (part).)

Source Law

Sec. 20.  The support and maintenance of the South Wheeler County Hospital District shall never become a charge against or obligation of the State of Texas, … .

Revised Law

Sec. 1097.006.  RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility.  (Acts 58th Leg., R.S., Ch. 261, Sec. 20 (part).)

Source Law

Sec. 20.  … nor shall any direct appropriation be made by the Legislature for the construction, maintenance or improvement of any of the facilities of such District.

Revisor's Note

(End of Subchapter)

Sections 3 and 4, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provide procedures for holding an election on the creation of the district and the imposition of an ad valorem tax.  Because the creation of the district and the imposition of the tax were approved at the election, the revised law omits the relevant law as executed.  The omitted law reads:

Sec. 3.  The District shall not be created nor shall any tax therein be authorized unless and until such creation and such tax are approved by a majority of the qualified property taxpaying electors of the District voting at an election called for such purpose.  Such election may be initiated by the Commissioners Court of Wheeler County upon its own motion and shall be called by said Commissioners Court upon presentation of a petition therefor signed by at least fifty (50) qualified property taxpaying electors of the District. Such election shall be held not less than twenty (20) nor more than thirty-five (35) days from the time such election is ordered by the Commissioners Court.  The order calling the election shall specify the time and places of holding same, the form of ballot and the presiding judge for each voting place.  Notice of election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in said District once a week for two (2) consecutive weeks, the first publication to appear at least fourteen (14) days prior to the date established for the election.  The failure of any such election shall not operate to prohibit the calling and holding of subsequent elections for the same purpose.  At said election there shall be submitted to the qualified property taxpaying electors of said District the proposition of whether or not South Wheeler County Hospital District shall be created … a majority of the qualified property taxpaying electors of the District voting at said election in favor of the proposition shall be sufficient for its adoption.  The ballots shall have printed thereon the following:

"FOR the creation of South Wheeler County Hospital District, the levy of a tax not to exceed Seventy-five Cents (75¢) on the One Hundred Dollars ($100) valuation and the assumption by such District of all outstanding bonds and indebtedness heretofore issued and incurred by any city or town in said District for hospital purposes"; and

"AGAINST the creation of South Wheeler County Hospital District, the levy of a tax not to exceed Seventy-five Cents (75¢)on the One Hundred Dollars ($100) valuation, and the assumption by such District of all outstanding bonds and indebtedness heretofore issued and incurred by any city or town in said District for hospital purposes."

Sec. 4.  Within ten (10) days after such election is held, the Commissioners Court in such county shall convene and canvass the returns thereof, and in the event such election results favorably to the proposition specified in Section 3 hereof, the Court shall so find and declare the Hospital District established and created, and … .

[Sections 1097.007-1097.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 1097.051.  BOARD ELECTION; TERM.  (a)  The board consists of seven directors elected as follows:

(1)  two directors elected from County Commissioners Precinct 3 by the voters of that precinct;

(2)  two directors elected from County Commissioners Precinct 4 by the voters of that precinct; and

(3)  three directors elected from the district at large by the voters of the entire district.

(b)  Directors serve staggered two-year terms unless four-year terms are established under Section 285.081, Health and Safety Code.  (Acts 58th Leg., R.S., Ch. 261, Sec. 4 (part).)

Source Law

Sec. 4.  … [directors of the Hospital District] … seven (7) directors shall be elected.  Two (2) directors [shall be residents of Commissioners Court Precinct 3] who shall be elected by the qualified voters of the Precinct; two (2) directors [shall be residents of Commissioners Court Precinct 4] who shall be elected by the qualified voters of the Precinct; three (3) directors [shall be residents of either Commissioners Court Precincts 3 or 4 and] shall be elected by the voters of both Precincts.  After the first election the directors representing each Precinct shall have a one (1) year term. The other three (3) directors representing both Precincts shall have two (2) year terms.  Thereafter, all directors shall serve for a period of two (2) years and until their successor has been duly elected or appointed and qualified… .

Revisor's Note

(1)  Section 4, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, prescribes the procedures for appointing the initial board.  The revised law omits the provision as executed.  The omitted law reads:

Sec. 4.  … [the Commissioners Court … shall] … appoint seven (7) persons as directors of the Hospital District to serve until the first Saturday in April following the creation and establishment of the District at which time … .

(2)  Section 4, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, refers to "qualified" voters of the precinct.  The revised law omits "qualified" in this context because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "qualified" voters who are residents of the territory covered by the election to vote in an election.

(3)  Section 4, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, refers to directors being elected from either County Commissioners Precinct 3 or 4 by the voters of both precincts.  The revised law provides that the directors are elected at large by the voters of the entire district because County Commissioners Precincts 3 and 4 of Wheeler County are the entire district.  See Section 1, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963 (revised in this chapter as Section 1097.004).

(4)  Section 4, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, prescribes the terms of the directors elected at the expiration of the terms of the initial directors and, in doing so, establishes staggered two-year terms for the directors. The revised law omits the specific provision relating to the terms of those directors as executed but codifies the establishment of staggered two-year terms.

(5)  Section 4, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that directors serve two-year terms.  Section 285.081, Health and Safety Code, applicable to this district, provides a mechanism by which the governing board of a hospital district, on its own motion, may order that directors are to be elected in even-numbered years to serve staggered four-year terms.  The revised law is drafted accordingly and adds a reference to Section 285.081, Health and Safety Code, for the convenience of the reader.

(6)  Section 4, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that the directors serve until their successors are "duly elected or appointed and qualified."  The revised law omits that provision because it duplicates Section 17, Article XVI, Texas Constitution, which provides that an officer of this state is to continue to perform the officer's duties until a successor has qualified.

(7)  Section 4, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that directors' elections are held on the first Saturday in April each year.  The revised law omits that provision as impliedly repealed by a 1986 amendment to Section 41.001, Election Code.  Chapter 14, Acts of the 69th Legislature, 3rd Called Session, 1986, amended Section 41.001, Election Code, to prescribe certain uniform election dates.  Section 37 of that act required a political subdivision that held its general election of officers on the first Saturday in April to hold that election on a uniform election date in May or to choose a different uniform election day on which to hold the election.  The omitted law reads:

Sec. 4.  … A regular election of directors shall be held on the first Saturday in April of each year and … .

Revised Law

Sec. 1097.052.  NOTICE OF ELECTION.  At least 10 days before the date of an election of directors, notice of the election shall be published one time in a newspaper of general circulation in Wheeler County.  (Acts 58th Leg., R.S., Ch. 261, Sec. 4 (part).)

Source Law

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

Revisor's Note

Section 4, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, requires notice of a directors' election to be published in "the county."  Throughout this chapter, the revised law substitutes "Wheeler County" for the quoted language because Wheeler County is the county in which the district is located.

Revised Law

Sec. 1097.053.  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 be:

(1)  signed by not fewer than 10 registered voters; and

(2)  filed at least 25 days before the date of the election.  (Acts 58th Leg., R.S., Ch. 261, Sec. 4 (part).)

Source Law

Sec. 4.  … Any person desiring his name to be printed on the ballot as a candidate for director shall file a petition, signed by not less than ten (10) qualified voters asking that such name be printed on the ballot, with the secretary of the board of directors of the District.  Such petition shall be filed with such secretary at least twenty-five (25) days prior to the date of election.

Revisor's Note

Section 4, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, refers to a petition signed by "qualified voters."  The revised law substitutes "registered voters" for the quoted language because in the context of eligibility to sign a petition, Section 277.0021, Election Code, provides that "qualified voter" means a "registered voter."

Revised Law

Sec. 1097.054.  QUALIFICATIONS FOR OFFICE. (a)  A person may not be elected or appointed as a director unless the person:

(1)  is a resident of the district;

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

(3)  is more than 18 years of age at the time of election or appointment.

(b)  A person may not be elected to represent a particular county commissioners precinct unless the person is a resident of that precinct.  (Acts 58th Leg., R.S., Ch. 281, Sec. 4 (part).)

Source Law

Sec. 4.  [Two (2) directors] shall be residents of Commissioners Court Precinct 3 [who shall be elected by the qualified voters of the Precinct; two (2) directors] shall be residents of Commissioners Court Precinct 4 [who shall be elected by the qualified voters of the Precinct; three (3) directors] shall be residents of either Commissioners Court Precincts 3 or 4 and [shall be elected by the voters of both Precincts].  … No person shall be appointed or elected as a member of the board of directors of said Hospital District unless he is a resident thereof and owns property subject to taxation therein and unless at the time of such election or appointment he shall be more than twenty-one (21) years of age… .

Revisor's Note

Section 4, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that a person must be "more than twenty-one (21) years of age" at the time of the election to qualify for election or appointment as a director.  The revised law substitutes "more than 18 years of age" for the quoted language because Chapter 129, Civil Practice and Remedies Code, establishes 18 years as the age of majority in this state.  Section 129.002, Civil Practice and Remedies Code, provides that a law adopted before August 27, 1973, that extends a right, privilege, or obligation to an individual on the basis of a minimum age of 19, 20, or 21 years, shall be interpreted as prescribing a minimum age of 18 years.  Section 4 was enacted in 1963 and has not been amended.

Revised Law

Sec. 1097.055.  BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF OFFICE.  (a)  Each director shall execute a good and sufficient bond for $1,000 that is:

(1)  payable to the district; and

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

(b)  Each director's bond and constitutional oath or affirmation of office shall be deposited with the district's depository bank for safekeeping. (Acts 58th Leg., R.S., Ch. 261, Sec. 4 (part).)

Source Law

Sec. 4.  … Each member of the board of directors shall qualify by executing the Constitutional Oath of Office and shall execute a good and sufficient bond for One Thousand Dollars ($1,000) payable to said District conditioned upon the faithful performance of his duties, and such oaths and bonds shall be deposited with the depository bank of the District for safekeeping… .

Revisor's Note

Section 4, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, requires each director to take the constitutional oath of office.  The revised law omits that provision because Section 1, Article XVI, Texas Constitution, requires all officers in this state to take the oath (or affirmation) before assuming office.  Additionally, the revised law provides for the deposit of the constitutional affirmation, as well as the constitutional oath, because Section 1, Article XVI, Texas Constitution, permits an officer in this state to take either the constitutional oath or affirmation.

Revised Law

Sec. 1097.056.  BOARD VACANCY.  (a)  If a vacancy occurs in the office of director, the remaining directors shall appoint a director for the unexpired term.

(b)  If the number of directors is reduced to fewer than four for any reason, the remaining directors shall immediately call a special election to fill the vacancies.  If the remaining directors do not call the election, a district court, on application of a district voter or taxpayer, may order the directors to hold the election.  (Acts 58th Leg., R.S., Ch. 261, Sec. 4 (part).)

Source Law

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

Revised Law

Sec. 1097.057.  OFFICERS.  The board shall elect from among its members a president, a vice president, and a secretary.  (Acts 58th Leg., R.S., Ch. 261, Sec. 4 (part).)

Source Law

Sec. 4.  … The board of directors shall organize by electing one (1) of their number as president and one (1) as vice president and one (1) as secretary… .

Revised Law

Sec. 1097.058.  VOTING REQUIREMENT.  A concurrence of four directors is sufficient in any matter relating to district business.  (Acts 58th Leg., R.S., Ch. 261, Sec. 4 (part).)

Source Law

Sec. 4.  … [board of directors] … a concurrence of four (4) shall be sufficient in all matters pertaining to the business of the District. …

Revisor's Note

Section 4, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that four directors constitute a quorum.  The revised law omits that provision because it duplicates Section 311.013, Government Code (Code Construction Act), which provides that a quorum of a public body is a majority of the number of members fixed by statute.  The omitted law reads:

Sec. 4.  … Any four (4) members of the board of directors shall constitute a quorum and … .

Revised Law

Sec. 1097.059.  DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR.  (a)  The board shall appoint a qualified person as district administrator.

(b)  The board may appoint an assistant administrator.

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

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

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

(2)  contains other conditions the board may require.  (Acts 58th Leg., R.S., Ch. 261, Sec. 5 (part).)

Source Law

Sec. 5.  … The board of directors shall appoint a qualified person to be known as the administrator or manager of the Hospital District and may in its discretion appoint an assistant to the administrator or manager.  Such administrator or manager, and assistant administrator or assistant manager, if any, shall serve at the will of the board and shall receive such compensation as may be fixed by the board.  The administrator or manager shall, upon assuming his duties, execute a bond payable to the Hospital District in an amount to be set by the board of directors, in no event less than Ten Thousand Dollars ($10,000), conditioned that he shall perform the duties required of him and containing such other conditions as the board may require… .

Revisor's Note

Section 5, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that the board shall appoint a person as the "administrator or manager" of the district and may appoint an "assistant to the administrator or manager."  Throughout this chapter, the revised law omits "manager" because, in context, "manager" is included in the meaning of "administrator" and "administrator" is the term used by the district.

Revised Law

Sec. 1097.060.  GENERAL DUTIES OF DISTRICT ADMINISTRATOR.  Subject to the limitations prescribed by the board, the district administrator shall:

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

(2)  direct the affairs of the district.  (Acts 58th Leg., R.S., Ch. 261, Sec. 5 (part).)

Source Law

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

Revised Law

Sec. 1097.061.  EMPLOYEES.  The board may employ any doctors, technicians, nurses, and other employees as considered necessary for the efficient operation of the district or may provide that the district administrator has the authority to employ those persons.  (Acts 58th Leg., R.S., Ch. 261, Sec. 5 (part).)

Source Law

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

Revised Law

Sec. 1097.062.  RETIREMENT PROGRAM.  The board may contract with this state or the federal government to establish or continue a retirement program for the benefit of the district's employees.  (Acts 58th Leg., R.S., Ch. 261, Sec. 5 (part).)

Source Law

Sec. 5.  … The board of directors is also authorized to enter into such contracts or agreements with the State of Texas or the Federal Government as may be required to establish or continue a retirement program for the benefit of the District's employees.

[Sections 1097.063-1097.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 1097.101.  DISTRICT RESPONSIBILITY.  The district has full responsibility for:

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

(2)  providing medical and hospital care for the district's needy inhabitants.  (Acts 58th Leg., R.S., Ch. 261, Secs. 2 (part), 19 (part).)

Source Law

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

Sec. 19.  … the said South Wheeler County Hospital District shall assume full responsibility for the operation of all hospital facilities for the furnishing of medical and hospital care of indigent persons.

Revisor's Note

Sections 2 and 19, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provide that the district "shall assume" full responsibility for providing medical and hospital care for the district's needy inhabitants and for the operation of  hospital facilities for the indigent.  The revised law substitutes "has" for the quoted language because the duty to assume the responsibility is executed.

Revised Law

Sec. 1097.102.  RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT.  A political subdivision located within the district may not impose a tax or issue bonds or other obligations for hospital purposes for medical treatment of indigent persons.  (Acts 58th Leg., R.S., Ch. 261, Sec. 19 (part).)

Source Law

Sec. 19.  After creation of South Wheeler County Hospital District, no other municipality or political subdivision therein shall thereafter issue bonds or other evidences of indebtedness or levy taxes for hospital purposes for medical treatment of indigent persons and … .

Revisor's Note

(1)  Section 19, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that "[a]fter creation of South Wheeler County 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 19, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, refers to a "municipality or political subdivision."  The revised law omits the reference to "municipality" because "municipality" is included in the meaning of "political subdivision."

(3)  Section 19, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that certain political subdivisions may not issue bonds or other "evidences of indebtedness."  The revised law substitutes "obligations" for "evidences of indebtedness" because in context the terms are synonymous, and "obligations" is more commonly used.

(4)  Section 9, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, prohibits a city or town located in the district from selling bonds that were authorized to provide hospital facilities but were not sold on the date the district was created.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 9.  … If any city or town therein has voted bonds to provide hospital facilities but such bonds have not been sold as of the date of the creation of the District, the authority for the issuance and sale of such bonds shall thereupon be cancelled and they shall not be issued or sold after the creation of the District.

Revised Law

Sec. 1097.103.  MANAGEMENT, CONTROL, AND ADMINISTRATION.  The board shall manage, control, and administer the district's hospitals and hospital system.  (Acts 58th Leg., R.S., Ch. 261, Sec. 5 (part).)

Source Law

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

Revised Law

Sec. 1097.104.  HOSPITAL SYSTEM.  The district shall provide for the establishment of a hospital system by:

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

(2)  equipping the buildings; and

(3)  administering the buildings and equipment for hospital purposes.  (Acts 58th Leg., R.S., Ch. 261, Sec. 2 (part).)

Source Law

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

Revised Law

Sec. 1097.105.  RULES.  The board may adopt rules for the operation of the district and as required to administer this chapter.  (Acts 58th Leg., R.S., Ch. 261, Secs. 5 (part), 11 (part).)

Source Law

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

Sec. 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

Sections 5 and 11, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provide that the board may "promulgate rules and regulations" to govern the district and "make such rules and regulations" to carry out the act.  The revised law substitutes "adopt" for "promulgate" and "make" because the terms are synonymous and the former is more commonly used.  The revised law also omits the reference to "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

Revised Law

Sec. 1097.106.  PURCHASING AND ACCOUNTING PROCEDURES.  The board may prescribe:

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

(2)  all accounting and control procedures.  (Acts 58th Leg., R.S., Ch. 261, 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. 1097.107.  EMINENT DOMAIN.  (a)  The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property located in district territory if the interest is necessary or convenient for the district to exercise a power, right, or privilege conferred by this chapter.

(b)  The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code.  (Acts 58th Leg., R.S., Ch. 261, Sec. 14.)

Source Law

Sec. 14.  South Wheeler County Hospital District created hereunder shall have the right and power of eminent domain for the purpose of acquiring by condemnation any and all property of any kind and character in fee simple, or any lesser interest therein, within the boundaries of the District, necessary or convenient to the powers, rights and privileges conferred by this Act, in the manner provided by General Law with respect to condemnation.

Revisor's Note

(1)  Section 14, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that the district has the "right and power of eminent domain for the purpose of acquiring [property] by condemnation."  The revised law substitutes for the quoted phrase "may exercise the power of eminent domain to acquire [property]" because the phrases have the same meaning and the latter phrase is consistent with modern usage in law relating to eminent domain.

(2)  Section 14, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that the district must exercise the power of eminent domain in the manner provided by "General Law with respect to condemnation."  The revised law substitutes for the quoted language a reference to Chapter 21, Property Code, because that is the general law governing eminent domain for governmental entities.

Revised Law

Sec. 1097.108.  GIFTS AND ENDOWMENTS.  The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district.  (Acts 58th Leg., R.S., Ch. 261, Sec. 17.)

Source Law

Sec. 17.  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 17, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, refers to "donations" and "gifts."  The revised law omits the reference to "donations" because "donations" is included in the meaning of "gifts."

Revised Law

Sec. 1097.109.  CONTRACTS WITH GOVERNMENTAL ENTITIES FOR CARE AND TREATMENT.  (a)  The board may contract with a county or municipality located outside the district for the care and treatment of a sick or injured person of that county or municipality.

(b)  The board may contract with this state or a federal agency for the treatment of a sick or injured person for whom this state or the federal government is responsible.  (Acts 58th Leg., R.S., Ch. 261, Sec. 5 (part).)

Source Law

Sec. 5.  … Such board shall be authorized to contract with any county or incorporated municipality located outside the District for the care and treatment of the sick, diseased or injured persons of any such county or municipality and shall have the authority to contract with the State of Texas and agencies of the Federal Government, for treatment of sick, diseased or injured persons for whom the State of Texas or the Federal Government are responsible… .

Revisor's Note

(1)  Section 5, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, refers to an "incorporated" municipality.  The revised law omits the reference to "incorporated" because under the Local Government Code all municipalities must be incorporated.

(2)  Section 5, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, refers to the treatment of a "sick, diseased or injured" person.  The revised law omits the references to "diseased" because "diseased" is included in the meaning of "sick."

Revised Law

Sec. 1097.110.  PAYMENT FOR TREATMENT; PROCEDURES.  (a)  When a patient who resides in the district is admitted to a district facility, the district administrator shall have an inquiry made into the circumstances of:

(1)  the patient; and

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

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

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

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

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

(1)  resolve the dispute or doubt; and

(2)  issue any appropriate orders.  (Acts 58th Leg., R.S., Ch. 261, Sec. 16.)

Source Law

Sec. 16.  Whenever a patient residing within the District has been admitted to the facilities thereof, the administrator or manager, shall cause inquiry to be made as to his circumstances and those of the relatives of such patient legally liable for his support.  If he finds that such patient or said relatives are able to pay for his care and treatment, in whole or in part, an order shall be made directing such patient, or said relatives, to pay to the Hospital District for the support of such patient a specified sum per week in proportion to their financial ability, but such sum shall not exceed the actual per capita cost of maintenance.  The administrator or manager shall have power and authority to collect such sums from the estate of the patient or his relatives legally liable for his support in the manner provided by law for the collection of expenses in the last illness of a deceased person. If the administrator or manager finds that such patient or said relatives are not able to pay, either in whole or in part, for his care and treatment in such hospital, same shall become a charge upon the Hospital District as to the amount of the inability to pay.  Should there be any dispute as to the ability to pay or doubt in the mind of the administrator or manager, the board of directors shall hear and determine same, after calling witnesses, and shall make such order or orders as may be proper.

Revised Law

Sec. 1097.111.  AUTHORITY TO SUE AND BE SUED.  The district, through the board, may sue and be sued.  (Acts 58th Leg., R.S., Ch. 261, Sec. 5 (part).)

Source Law

Sec. 5.  … [The District through its board of directors shall have the power and authority] to sue and be sued and … .

[Sections 1097.112-1097.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1097.151.  BUDGET.  (a)  The district administrator shall prepare an annual budget for approval by the board.  The budget must be for the fiscal year prescribed by Section 1097.152.

(b)  Not later than August 31 of each year, the board shall publish notice of a public hearing on the proposed budget.  The notice must be published in a newspaper of general circulation in the district at least 10 days before the date of the hearing.  (Acts 58th Leg., R.S., Ch. 261, Secs. 6 (part), 18.)

Source Law

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

Sec. 18.  The board of directors of said Hospital District shall cause to be prepared an annual budget based upon the fiscal year of the Hospital District in accordance with the provisions of Section 6 hereof and prior to September 1st of each year shall give notice of the public hearing on the proposed budget.  Such notice shall be published in a newspaper of general circulation in the county at least ten (10) days prior to the date set for the hearing.

Revised Law

Sec. 1097.152.  FISCAL YEAR.  The district operates on a fiscal year that begins on October 1 and ends on September 30.  (Acts 58th Leg., R.S., Ch. 261, Sec. 6 (part).)

Source Law

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

Revised Law

Sec. 1097.153.  AUDIT.  (a)  The district shall have an audit made of the district's financial condition.

(b)  The audit shall be open to inspection at all times at the district's principal office.  (Acts 58th Leg., R.S., Ch. 261, Sec. 6 (part).)

Source Law

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

Revised Law

Sec. 1097.154.  FINANCIAL REPORT.  As soon as practicable after the close of each fiscal year, the district administrator shall prepare for the board:

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

(2)  a complete account of the disbursements of that money.  (Acts 58th Leg., R.S., Ch. 261, Sec. 6 (part).)

Source Law

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

Revised Law

Sec. 1097.155.  DEPOSITORY.  (a)  The board shall select one or more banks in the district to serve as a depository for district money.

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

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

(d)  Membership on the district's board of an officer or director of a bank does not disqualify the bank from being selected as a depository bank.  (Acts 58th Leg., R.S., Ch. 261, Sec. 12.)

Source Law

Sec. 12.  The board of directors of the District shall name one (1) or more banks within the District to serve as depository for the funds of the District.  All such funds shall, as derived and collected, be immediately deposited with such depository bank or banks except that sufficient funds shall be remitted to the bank or banks for the payment of principal of and interest on the outstanding bonds of the District or other obligations assumed by it and in time that such money may be received by said bank or banks of payment on or prior to the date of maturity of such principal and interest so to be paid.  To the extent that funds in the depository bank or banks are not insured by the Federal Deposit Insurance Corporation, they shall be secured in the manner provided by law for security of county funds.  Membership on the board of directors of an officer or director of a bank shall not disqualify such bank from being designated as depository.

Revisor's Note

Section 12, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, refers to money "derived and collected."  The revised law substitutes "on receipt" for the quoted language because the terms are synonymous, and the former is more commonly used.

[Sections 1097.156-1097.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Revised Law

Sec. 1097.201.  GENERAL OBLIGATION BONDS.  (a)  The board may issue and sell general obligation bonds in the name and on the faith and credit of the district for any purpose related to the purchase, construction, acquisition, repair, or renovation of buildings or improvements, and equipping buildings or improvements for a hospital and the hospital system, as determined by the board.

(b)  The board shall issue the bonds in compliance with the applicable provisions of Subtitles A and C, Title 9, Government Code.  (Acts 58th Leg., R.S., Ch. 261, Sec. 9 (part).)

Source Law

Sec. 9.  The board of directors of the Hospital District shall have the power and authority to issue and sell its bonds in the name and upon the faith and credit of such Hospital District for the purchase, construction, acquisition, repair or renovation of buildings and improvements and equipping the same for hospitals and the hospital system, as determined by the board, and for any or all of such purposes. … Such bonds shall be issued under the provisions of Chapter 1, Title 22 of the Revised Civil Statutes of Texas, as amended, but … .

Revisor's Note

(1)  Section 9, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that the board has the power and authority to issue and sell bonds in the name and on the faith and credit of the district.  Because the type of bonds described by Section 9 are known as "general obligation bonds," the revised law is drafted accordingly.

(2)  Section 9, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that bonds issued under that section "shall be issued under the provisions of Chapter 1, Title 22 of the Revised Civil Statutes of Texas, as amended."  Chapter 1, Title 22, Revised Statutes, was composed of V.A.C.S. Articles 701-717w.  The relevant parts of those provisions were revised in 1999 as Subtitles A and C of Title 9, Government Code, and the revised law is drafted accordingly. In addition, throughout this chapter, the revised law omits references to "as amended" because under Section 311.027, Government Code (Code Construction Act), a reference to a statute applies to all reenactments, revisions, or amendments of that statute unless expressly provided otherwise.

Revised Law

Sec. 1097.202.  TAX TO PAY GENERAL OBLIGATION BONDS.  (a)  At the time general obligation bonds are issued under Section 1097.201, 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 tax the district imposes may not in any year exceed 75 cents on each $100 valuation of taxable property in the district.  (Acts 58th Leg., R.S., Ch. 261, Sec. 9 (part).)

Source Law

Sec. 9.  … At the time of the issuance of any such bonds a tax shall be levied by the board sufficient to create an interest and sinking fund and to pay the interest on and principal of said bonds as same mature, providing such tax together with any other taxes levied for said District shall not exceed Seventy-five Cents (75¢) on each One Hundred Dollars ($100) valuation of taxable property in any one (1) year… .

Revisor's Note

Section 9, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, requires the district to levy a tax sufficient to pay the principal of and interest on bonds.  The revised law specifies that the tax is an "ad valorem" tax because it is clear from the source law that the tax is a property tax, and "ad valorem" is the term most commonly used to refer to a property tax.

Revised Law

Sec. 1097.203.  GENERAL OBLIGATION BOND ELECTION.  (a)  The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.

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

(c)  The bond election order must specify:

(1)  the date of the election;

(2)  the location of the polling places;

(3)  the presiding election officers;

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

(5)  the maximum maturity of the bonds; and

(6)  the maximum interest rate of the bonds.  (Acts 58th Leg., R.S., Ch. 261, Sec. 9 (part).)

Source Law

Sec. 9.  …  No bonds shall be issued by such Hospital District … until authorized by a majority of the qualified property taxpaying electors of the District voting at an election called for such purpose.  Such election shall be called by the board of directors and held in accordance with the provisions of Chapter 1, Title 22 of the Revised Civil Statutes of Texas, as amended, and except as therein otherwise provided, shall be conducted in accordance with the General Laws of Texas pertaining to elections. … The 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 9, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, refers to a majority vote of the "qualified … electors of the District."  The revised law omits "qualified" in this context because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "qualified" voters who are residents of the territory covered by the election to vote in an election.  The revised law substitutes "voter" for "elector" because the former is the term used in the Election Code.

(2)  Section 9, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, refers to "property taxpaying" electors.  The revised law omits the quoted language because in Hill v. Stone, 421 U.S. 289, 95 S. Ct. 1637 (1975), the United States Supreme Court determined that property ownership as a qualification for voting is an unconstitutional denial of equal protection.

(3)  Section 9, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that an election must be "held in accordance with the provisions of Chapter 1, Title 22 of the Revised Civil Statutes of Texas, as amended, and except as therein otherwise provided, shall be conducted in accordance with the General Laws of Texas pertaining to elections."  The election provisions of Chapter 1, Title 22, Revised Statutes, are codified as Chapter 1251, Government Code, and the revised law is drafted accordingly.  The revised law omits the reference to "except as therein otherwise provided" because an exception to the application of the Election Code in Chapter 1251, Government Code (the revision of the election provisions of Chapter 1, Title 22, Revised Statutes), would apply by its own terms.  The revised law omits the reference to the "General Laws of Texas pertaining to elections" because Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state.

(4)  Section 9, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, 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. 9.  … The District shall make provisions for defraying the costs of all elections called and held under the provisions of this Act. …

Revised Law

Sec. 1097.204.  EXECUTION OF GENERAL OBLIGATION BONDS.  (a)  The board president shall execute the general obligation bonds in the district's name.

(b)  The board secretary shall attest the bonds.  (Acts 58th Leg., R.S., Ch. 261, Sec. 9 (part).)

Source Law

Sec. 9.  … [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 and … .

Revised Law

Sec. 1097.205.  REFUNDING BONDS.  (a)  The board may, without an election, issue refunding bonds to refund any bond or other refundable indebtedness issued or assumed by the district.

(b)  A refunding bond may be:

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

(2)  exchanged wholly or partly for not less than a similar principal amount of the outstanding bonds or other refundable indebtedness.  (Acts 58th Leg., R.S., Ch. 261, Sec. 9 (part).)

Source Law

Sec. 9.  [No bonds shall be issued by such Hospital District] except refunding bonds, [until authorized by a majority of the qualified property taxpaying electors of the District] … .

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

Revisor's Note

(1)  Section 9, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, 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 revised in 1999 as Section 1204.006(a), Government Code.  Section 1204.006(a) permits a public agency, including a hospital district, to issue bonds at a net effective interest rate not to exceed 15 percent and applies to district bonds by application of Section 1204.001, Government Code.  The omitted law reads:

Sec 9.  … provided that if such refunding bonds are to be exchanged for a like amount of said outstanding bonds or other refundable indebtedness the interest thereon computed in accordance with recognized standard bond interest cost tables, shall not exceed the average interest cost per annum so computed upon the bonds or other indebtedness to be refunded; … .

(2)  Section 9, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that refunding bonds sold to pay outstanding indebtedness "shall 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 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. 9… .  [Such refunding bonds may be sold] … and 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. 1097.206.  BONDS EXEMPT FROM TAXATION.  The following are exempt from taxation by this state or a political subdivision of this state:

(1)  bonds issued by the district;

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

(3)  profits made in the sale of the bonds.  (Acts 58th Leg., R.S., Ch. 261, Sec. 10 (part).)

Source Law

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

Revisor's Note

(End of Subchapter)

(1)  Section 9, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that district bonds are subject to the law governing counties that relates to bond approval by the attorney general and registration of the bonds by the comptroller.  Section 9 also provides that after approval and registration the bonds are "incontestable."  The revised law omits those provisions as superseded by Chapter 1202, Government Code (enacted as Article 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987). Section 1202.003(a), Government Code, requires that bonds be submitted to the attorney general. Section 1202.003(b), Government Code, provides for approval of the bonds by the attorney general and requires the attorney general to submit the approved bonds to the comptroller for registration. Section 1202.005, Government Code, requires registration of the bonds by the comptroller. Section 1202.006, Government Code, provides that after approval and registration the bonds are incontestable and binding obligations.  Chapter 1202, Government Code, applies to district bonds by application of Section 1202.001, Government Code.  The omitted law reads:

Sec. 9.  [Such bonds] … shall be subject to the same requirements in the matter of the approval by the Attorney General of Texas and registration by the Comptroller of Public Accounts of the State of Texas as are by law provided for approval and registration of bonds issued by counties.  After approval of any such bonds by the Attorney General and registration by the Comptroller, said bonds shall be incontestable… .

(2)  Section 13, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that district bonds are authorized investments for certain entities.  The revised law omits that provision as unnecessary.  As to several of the entities listed, Section 13 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 13 is superseded by Section 1201.041, Government Code (enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes)).  Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code.  The revised law omits the reference to 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. 13.  All bonds of the District shall be and are hereby declared to be legal and authorized investments of banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, fiduciaries, trustees, and sinking funds of cities, towns, villages, counties, school districts, or other political subdivisions of the State of Texas, and for all public funds of the State of Texas or its agencies, including the State Permanent School Fund… .

(3)  Section 13, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, effectively provides that district bonds may secure deposits of public funds of this state or political subdivisions of this state.  The revised law omits that 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. 13.  … 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 1097.207-1097.250 reserved for expansion]

SUBCHAPTER F.  TAXES

Revised Law

Sec. 1097.251.  IMPOSITION OF AD VALOREM TAX.  (a)  The district may impose a tax on all property in the district subject to district taxation.

(b)  The tax may be used to meet the requirements of:

(1)  district bonds;

(2)  indebtedness assumed by the district; and

(3)  district maintenance and operating expenses.  (Acts 58th Leg., R.S., Ch. 261, Sec. 3 (part).)

Source Law

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

Revised Law

Sec. 1097.252.  TAX RATE.  The district may impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district.  (Acts 58th Leg., R.S., Ch. 261, Sec. 3 (part).)

Source Law

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

Revised Law

Sec. 1097.253.  TAX ASSESSOR-COLLECTOR.  The tax assessor-collector of Wheeler County shall assess and collect taxes imposed by the district.  (Acts 58th Leg., R.S., Ch. 261, Sec. 15 (part).)

Source Law

Sec. 15.  … The Tax Assessor and/or Collector of Wheeler County shall be charged and required to accomplish the assessment and collection of all taxes levied by and on behalf of the District and … .

Revisor's Note

(1)  Section 15, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, requires district taxes to be assessed and collected in the same manner as 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 imposition and collection of property taxes.  The omitted law reads:

Sec. 15.  District taxes shall be assessed and collected in the same manner as provided by law with relation to county taxes. …

(2)  Section 15, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that tax revenue shall be deposited in the district's depository.  The revised law omits the provision because Section 31.10, Tax Code, requires the tax assessor-collector of a taxing unit to deposit taxes collected in the unit's depository.  The omitted law reads:

Sec. 15.  … [The Tax Assessor and/or Collector of Wheeler County shall be charged and required] … to promptly pay over the same to the District depository… .

(3)  Section 15, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides for compensating the county tax assessor-collector for the assessment and collection of district taxes.  The revised law omits that provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  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. 15.  … For his services the County Tax Assessor-Collector shall be allowed such compensation as may be provided for by contract with the District but not to exceed the amount allowed for assessment and collection of county taxes. …

(4)  Section 15, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that the bond of the county tax assessor-collector is security for the performance of district duties unless the board determines that an additional bond is necessary.  The revised law omits that provision because it duplicates Section 6.29(b), Tax Code, which authorizes a taxing unit for which the county tax assessor-collector collects a tax to require that collector to post an additional bond.  The omitted law reads:

Sec. 15.  … The bond of the County Tax Assessor-Collector shall stand as security for the proper performance of his duties as Assessor-Collector of the District, or, if in the judgment of the District board of directors, it is necessary that additional bond payable to the District may be required… .

(5)  Section 15, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that the county tax assessor-collector may act in accordance with state law relating to the assessment, collection, and enforcement of state and county taxes.  The revised law omits that provision as unnecessary.  The state law relating to the assessment, collection, and enforcement of all ad valorem taxes is Title 1, Tax Code.  Section 1.02, Tax Code, requires all taxing units of government to administer the assessment, collection, and enforcement of taxes in conformity with that title.  The omitted law reads:

Sec. 15.  … 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 Chapter)

(1)  Sections 2, 7, and 8, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provide for the transfer of certain land, buildings, improvements, equipment, funds, and taxes to the district after the district is created and provide 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 the title to all lands, buildings, improvements and equipment in anywise pertaining to hospitals owned by any city or town thereof and thereafter it … shall assume the outstanding indebtedness which shall have been incurred by any city or town therein for hospital purposes prior to the creation of the District.

Sec. 7.  All lands, buildings and equipment that at the time of the creation of the District are owned by any city or town therein and which were acquired by them for the purpose of providing hospital service or care for patients of such city shall become the property of South Wheeler County Hospital District and the governing body of any such city or town shall provide by order that all property so owned shall be conveyed to the South Wheeler County Hospital District in consideration of the Hospital District assuming all debts and obligations arising from the acquisition, construction and operation of such city or town hospital facilities.  The Hospital District through its board of directors shall by resolution, accept said properties and shall assume all the liabilities, and obligations, including bonds and warrants incurred by such city or town for such hospital purposes.

Sec. 8.  Any funds remaining in the hands of any city or town therein, as the proceeds of bonds assumed by the District, as herein provided, shall forthwith be transferred to and become the funds of the Hospital District and title thereto shall vest in such District.  There shall also vest in said District and become the funds thereof the unspent portion of any other funds theretofore set up or appropriated by budget or otherwise by any city or town thereof for the support and maintenance of hospital facilities for the year within which the Hospital District is created, thereby providing such Hospital District with funds with which to maintain and operate such facilities for the remainder of such year.  Any uncollected or delinquent taxes levied for hospital purposes by any city or town thereof, as collected, shall be paid to the District and applied by it to the purposes for which such taxes originally were levied.  Any and all obligations under contracts legally incurred by any city or town therein for the building or the support and maintenance of hospital facilities prior to the creation of said District but outstanding at the time of its creation shall be assumed and discharged by such District without prejudice to the rights of third parties.  It is provided that the management and control of the property and affairs of any hospital system or systems owned and operated by any city or town thereof shall continue in the existing board of managers until appointment and organization of the board of directors of the Hospital District, at which time the board of managers of the present hospital or hospital system shall turn over all records, property and affairs of said hospital system to the board of directors of the District and shall cease to exist as a board of managers of the existing hospital system.

The governing body of any city therein owning the hospital or hospital system, as the case may be, as soon as the Hospital District is created and authorized at the election hereinabove provided, and there have been appointed and qualified the board of hospital directors above provided for, shall execute and deliver to the Hospital District, to wit: to its board of directors an instrument in writing conveying to said Hospital District the hospital properties including management, buildings and equipment, and shall transfer to said Hospital District the funds hereinabove provided to be vested in the Hospital District. Such funds, in the hands of the Hospital District and its board of directors shall be used for all or any of the same purposes and for no other purposes than, the purposes for which the county or city transferring such funds could lawfully have used the same had they remained the property and funds of such county or city.

(2)  Section 21, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that the act is severable.  The revised law omits that provision because it duplicates Section 311.032, Government Code (Code Construction Act), which provides that a provision of a statute is severable from each other provision of the statute that can be given effect.  The omitted law reads:

Sec. 21.  If any of the provisions of this Act or the application thereof to any person or circumstance 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 22, Chapter 261, Acts of the 58th Legislature, Regular Session, 1963, provides that public notice of enactment of the statute was provided in a manner that satisfies the requirements of the Texas Constitution.  The revised law omits that section as executed.  The omitted law reads:

Sec. 22.  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.