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81C32(2) YDB
CHAPTER 1061. MIDLAND COUNTY HOSPITAL DISTRICT OF
MIDLAND COUNTY, TEXAS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1061.001. DEFINITIONS ............................... 4
Sec. 1061.002. AUTHORITY FOR CREATION .................... 4
Sec. 1061.003. ESSENTIAL PUBLIC FUNCTION ................. 4
Sec. 1061.004. DISTRICT TERRITORY ........................ 5
Sec. 1061.005. CORRECTION OF INVALID PROCEDURES .......... 5
Sec. 1061.006. DISTRICT SUPPORT AND MAINTENANCE NOT
STATE OBLIGATION ........................ 6
Sec. 1061.007. RESTRICTION ON STATE FINANCIAL
ASSISTANCE .............................. 6
[Sections 1061.008-1061.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 1061.051. BOARD ELECTION; TERM ...................... 8
Sec. 1061.052. ALTERNATIVE DIRECTOR ELECTION ............. 10
Sec. 1061.053. NOTICE OF ELECTION ........................ 13
Sec. 1061.054. QUALIFICATIONS FOR OFFICE ................. 13
Sec. 1061.055. BOARD VACANCY ............................. 14
Sec. 1061.056. OFFICERS .................................. 15
Sec. 1061.057. COMPENSATION; EXPENSES .................... 15
Sec. 1061.058. VOTING REQUIREMENT ........................ 16
Sec. 1061.059. DISTRICT ADMINISTRATOR; ASSISTANT
ADMINISTRATOR ........................... 16
Sec. 1061.060. GENERAL DUTIES OF DISTRICT
ADMINISTRATOR ........................... 17
Sec. 1061.061. APPOINTMENT AND DISMISSAL OF STAFF AND
EMPLOYEES; CONTRACTS .................... 17
Sec. 1061.062. RECRUITMENT OF MEDICAL STAFF AND
EMPLOYEES ............................... 18
Sec. 1061.063. SENIORITY; RETIREMENT BENEFITS ............ 18
[Sections 1061.064-1061.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 1061.101. DISTRICT RESPONSIBILITY ................... 21
Sec. 1061.102. RESTRICTION ON POLITICAL SUBDIVISION
TAXATION AND DEBT ....................... 21
Sec. 1061.103. MANAGEMENT, CONTROL, AND
ADMINISTRATION; GENERAL BOARD POWER ..... 22
Sec. 1061.104. HOSPITAL SYSTEM ........................... 23
Sec. 1061.105. RULES ..................................... 24
Sec. 1061.106. PURCHASING AND ACCOUNTING PROCEDURES ...... 25
Sec. 1061.107. AMBULANCE OR MOBILE EMERGENCY SERVICE ..... 26
Sec. 1061.108. DISTRICT PROPERTY, FACILITIES, AND
EQUIPMENT ............................... 26
Sec. 1061.109. EMINENT DOMAIN ............................ 28
Sec. 1061.110. COST OF RELOCATING OR ALTERING PROPERTY ... 30
Sec. 1061.111. GIFTS AND ENDOWMENTS ...................... 30
Sec. 1061.112. CONSTRUCTION OR PURCHASE CONTRACTS ........ 31
Sec. 1061.113. MANAGEMENT AGREEMENT; LIABILITY ........... 32
Sec. 1061.114. CONTRACTS FOR HOSPITALIZATION,
TREATMENT, AND TRAINING ................. 32
Sec. 1061.115. CONTRACT FOR INVESTIGATORY OR OTHER
SERVICES ................................ 33
Sec. 1061.116. CONTRACT FOR FACILITIES TO SUPPORT
SURGICAL RESIDENCY PROGRAM .............. 34
Sec. 1061.117. PROVISION OF SERVICES OUTSIDE DISTRICT .... 34
Sec. 1061.118. PAYMENT FOR TREATMENT; PROCEDURES ......... 34
Sec. 1061.119. REIMBURSEMENT FOR SERVICES TO
NONRESIDENTS ............................ 36
Sec. 1061.120. AUTHORITY TO SUE AND BE SUED .............. 36
[Sections 1061.121-1061.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 1061.151. BUDGET .................................... 36
Sec. 1061.152. NOTICE; HEARING; ADOPTION OF BUDGET ....... 38
Sec. 1061.153. AMENDMENTS TO BUDGET ...................... 38
Sec. 1061.154. RESTRICTION ON EXPENDITURES ............... 39
Sec. 1061.155. FISCAL YEAR ............................... 39
Sec. 1061.156. AUDIT ..................................... 39
Sec. 1061.157. INSPECTION OF AUDIT AND DISTRICT
RECORDS ................................. 40
Sec. 1061.158. FINANCIAL REPORT .......................... 40
Sec. 1061.159. DEPOSITORY ................................ 40
Sec. 1061.160. SPENDING AND INVESTMENT RESTRICTIONS ...... 41
[Sections 1061.161-1061.200 reserved for expansion]
SUBCHAPTER E. BONDS
Sec. 1061.201. GENERAL OBLIGATION BONDS .................. 43
Sec. 1061.202. TAX TO PAY GENERAL OBLIGATION BONDS ....... 43
Sec. 1061.203. BOND ELECTION ............................. 44
Sec. 1061.204. REVENUE BONDS ............................. 46
Sec. 1061.205. PAYMENT OF REVENUE BONDS; SECURITY ........ 47
Sec. 1061.206. USE OF REVENUE BOND PROCEEDS .............. 48
Sec. 1061.207. CHARGE FOR OCCUPANCY OR USE OF HOSPITAL
FACILITY ................................ 51
Sec. 1061.208. REFUNDING BONDS ........................... 51
Sec. 1061.209. BONDS EXEMPT FROM TAXATION ................ 54
[Sections 1061.210-1061.250 reserved for expansion]
SUBCHAPTER F. TAXES
Sec. 1061.251. IMPOSITION OF AD VALOREM TAX .............. 57
Sec. 1061.252. TAX RATE .................................. 58
Sec. 1061.253. USE OF AD VALOREM TAXES FOR OPERATION
AND MAINTENANCE EXPENSES ................ 59
Sec. 1061.254. ASSESSMENT AND COLLECTION BY COUNTY TAX
ASSESSOR-COLLECTOR ...................... 60
Sec. 1061.255. ASSESSMENT AND COLLECTION BY DISTRICT
TAX ASSESSOR-COLLECTOR .................. 64
Sec. 1061.256. ASSESSMENT AND COLLECTION BY TAX
ASSESSOR-COLLECTOR OF ANOTHER
POLITICAL SUBDIVISION ................... 66
CHAPTER 1061. MIDLAND COUNTY HOSPITAL DISTRICT OF
MIDLAND COUNTY, TEXAS
SUBCHAPTER A. GENERAL PROVISIONS
Revised Law
Sec. 1061.001. 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 Midland County Hospital District of Midland County, Texas. (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. 1061.002. AUTHORITY FOR CREATION. The Midland County Hospital District of Midland County, Texas, is created under the authority of Section 9, Article IX, Texas Constitution. (Acts 65th Leg., R.S., Ch. 112, Sec. 1.)
Source Law
Sec. 1. By authority of Article IX, Section 9 of the Texas Constitution, this Act authorizes the creation of the Midland County Hospital District of Midland County, Texas.
Revised Law
Sec. 1061.003. ESSENTIAL PUBLIC FUNCTION. The district performs an essential public function in carrying out the purposes of this chapter. (Acts 65th Leg., R.S., Ch. 112, Sec. 23 (part).)
Source Law
Sec. 23. In carrying out the purposes of this Act, the district will be performing an essential public function, and … .
Revised Law
Sec. 1061.004. DISTRICT TERRITORY. The boundaries of the district are coextensive with the boundaries of Midland County, Texas, as the boundaries existed on May 4, 1977. (Acts 65th Leg., R.S., Ch. 112, Sec. 2.)
Source Law
Sec. 2. The boundaries of this district are coterminous with the boundaries of Midland County, Texas, as those boundaries are fixed on the effective date of this Act.
Revisor's Note
Section 2, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, refers to the boundaries of Midland County "as those boundaries are fixed on the effective date of this Act." The act took effect on May 4, 1977, and the revised law is drafted accordingly.
Revised Law
Sec. 1061.005. CORRECTION OF INVALID PROCEDURES. If a court holds that any procedure under this chapter violates the constitution of this state or of the United States, the district by resolution may provide an alternative procedure that conforms with the constitution. (Acts 65th Leg., R.S., Ch. 112, Sec. 24 (part).)
Source Law
Sec. 24. … [federal or state constitutions] … . If any procedure in this Act is held by a court to violate either constitution, the district has the power by resolution to provide an alternative procedure conformable with the constitutions. …
Revisor's Note
Section 24, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that the act does not violate the federal or state constitution and requires that action under the act comply with the constitutions. The revised law omits the reference to the federal constitution because, under the Supremacy Clause of the United States Constitution (Clause 2, Article VI), federal law always takes precedence over a state statute. The revised law also omits the reference to the Texas Constitution because the state cannot modify constitutional requirements by statute. The omitted law reads:
Sec. 24. Nothing in this Act may be construed to violate any provision of the federal or state constitutions, and all acts done under this Act shall be in such manner as will conform to them, whether expressly provided or not. …
Revised Law
Sec. 1061.006. 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 65th Leg., R.S., Ch. 112, Sec. 22 (part).)
Source Law
Sec. 22. The support and maintenance of the hospital district shall never become a charge against or obligation of the state … .
Revised Law
Sec. 1061.007. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The legislature may not make a direct appropriation for the construction, maintenance, or improvement of a district facility. (Acts 65th Leg., R.S., Ch. 112, Sec. 22 (part).)
Source Law
Sec. 22. … nor shall any direct appropriation be made by the legislature for the construction, maintenance, or improvement of any of the facilities of the district.
Revisor's Note
(End of Subchapter)
Section 4, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides procedures for holding an election on the creation of the district, the imposition of an ad valorem tax, and the transfer of certain existing property and facilities. Section 9(b), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides for the election to include a proposition authorizing the district to issue bonds. Because the election to create the district has already occurred, the revised law omits the relevant law as executed. The omitted law reads:
Sec. 4. (a) The district shall not be created nor shall any property be transferred to it nor shall any tax by it be authorized until the creation and the tax are approved by a majority of the qualified electors of the area of the proposed district voting at an election called for that purpose. The election may be called by a majority of the temporary directors or shall be called by the temporary directors upon presentation of a resolution by the governing board of Midland Memorial Foundation requesting the calling of such election, to be held on any date chosen by the temporary directors, notwithstanding the provisions of the Texas Election Code, and in particular, Section 9b (Article 2.01b, Vernon's Texas Election Code), thereof. The election shall be held not less than 14 nor more than 60 days from the date the election is ordered. The order calling the election shall specify the date, place or places of holding the election, the form of ballot, the presiding judge and alternate presiding judge for each voting place, and provide for clerks as in county elections. The election order may provide that the entire district shall constitute one election precinct, or the county election precincts within the district may be combined for elections. Notice of election shall be given by publishing a substantial copy of the election order in a newspaper or newspapers which individually or collectively provide general circulation in the district once a week for two consecutive weeks, the first publication to appear at least 14 days before the date established for the election. The failure of the election does not operate to prohibit the calling and holding of subsequent elections for the same purpose; provided, no district confirmation election may be held within three months of any preceding election for confirmation. If this district is not confirmed within 60 months from the effective date of this Act, this Act is repealed.
(b) At the election there shall be submitted to the electors of the area of the proposed district the proposition of whether the hospital district shall be created with authority to have transferred to it the existing hospital property, equipment, and facilities of Midland Memorial Hospital which are owned by Midland Memorial Foundation and to levy annual taxes … for the purpose of meeting the requirements of the district's bonds and its maintenance and operating expenses. A majority of the qualified electors voting at the election in favor of the proposition is sufficient for its adoption.
(c) The form of ballot used at the election on the creation of the district shall be in conformity with Section 61, Texas Election Code, as amended (Article 6.05, Vernon's Texas Election Code), so that ballots may be cast for or against the following ballot proposition: "The creation of the Midland County Hospital District of Midland County, Texas, and transfer to the district of the Midland Memorial Hospital, and providing for the levy of a tax not to exceed 75¢ on each $100 valuation upon all taxable property situated within the district."
(d) Within 10 days after the election is held, the temporary directors of the district shall convene and canvass the returns of the election, and if a majority of the qualified electors voting at the election are in favor of the proposition, the directors shall find and declare the hospital district created.
[Sec. 9]
(b) A separate proposition on the request of the temporary directors may be submitted at the election for the confirmation of the district as to whether the board of directors, in the event the district is created, shall be authorized to issue bonds for the purposes specified in this section. The proposition, if submitted, shall specify the purpose for which the bonds are to be issued, the maximum amount of bonds then proposed to be issued, and the maximum maturity date.
[Sections 1061.008-1061.050 reserved for expansion]
SUBCHAPTER B. DISTRICT ADMINISTRATION
Revised Law
Sec. 1061.051. BOARD ELECTION; TERM. (a) The board is governed by a board of seven directors elected from single-member districts.
(b) Directors serve staggered four-year terms.
(c) An election of directors shall be held in each even-numbered year on the November uniform election date under Section 41.001, Election Code. (Acts 65th Leg., R.S., Ch. 112, Secs. 5(a) (part), (g) as added Acts 72nd Leg., 3rd C.S., Ch. 4.)
Source Law
Sec. 5. (a) The district is governed by a seven-member board of directors elected from the district at large. However, the board, on its own motion, may order that the directors are to be elected from single-member districts or … .
(g) The board may, on its own motion, order that board members are to be elected in even-numbered years to serve staggered four-year terms. Members shall be elected on the November uniform election date under Section 41.001, Election Code, of each even-numbered year and the members shall serve four-year terms.
Revisor's Note
(1) Section 5(a), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that the directors are elected from the district at large. Section 5(a) also provides that the board of directors, on its own motion, may order that the directors be elected from single-member districts. On December 17, 1987, the board adopted a resolution and order providing that directors be elected from seven single-member districts instead of from the district at large, starting with the directors' election in 1989. The revised law is drafted accordingly.
(2) Section 5(f), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that directors' elections are held on the first Saturday in May of each year except as provided by Subsection (g). Subsection (g) was amended by Section 1, Chapter 128, Acts of the 80th Legislature, Regular Session, 2007, to require elections to be held on the uniform election date in November of each even-numbered year to elect directors to serve staggered four-year terms. Therefore, the revised law omits that part of Subsection (f) as superseded by the 2007 amendment of Subsection (g). The omitted law reads:
(f) Except as provided by Subsection (g) of this section, a regular election of directors shall be held on the first Saturday in May of each year, and … .
(3) Section 2, Chapter 911, Acts of the 70th Legislature, Regular Session, 1987, provides transition language for the terms of directors in office on the effective date of the act (September 1, 1987) and for directors elected in 1988. The revised law omits the section as executed. The omitted law reads:
Sec. 2. (a) This Act does not affect the term of office for which a member of the board of directors of the Midland County Hospital District who is serving on the effective date of this Act was elected.
(b) On the effective date of this Act, the board of directors shall appoint two additional persons to serve on the board until the directors elected on May 21, 1988, qualify for office.
(c) The appropriate number of directors shall be elected at the regular directors' election held on May 21, 1988, so that the Midland County Hospital District will have an elected seven-member board of directors. Before the election, the board shall determine which of the two additional directors will serve a one-year term and which will serve a two-year term, so that three directors are elected one year and four directors are elected the next year. However, the board may elect to have the additional directors draw lots after the election to determine each director's term.
(4) Section 5, Chapter 128, Acts of the 80th Legislature, Regular Session, 2007, provides transition language for the terms of directors in office on the effective date of the act (September 1, 2007). The revised law omits the section as executed. The omitted law reads:
Sec. 5. The members of the board of directors of the Midland County Hospital District shall adjust the terms of office of directors to conform to the change of the election date made under Subsection (g), Section 5, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, as amended by this Act.
Revised Law
Sec. 1061.052. ALTERNATIVE DIRECTOR ELECTION. (a) The board on its own motion may order that not fewer than 50 percent of the directors be elected from single-member districts with the remaining directors elected from the district at large.
(b) Before entering an order under Subsection (a), the board must:
(1) hold a public hearing at which registered district voters may comment on whether they favor electing directors in the manner proposed by the board; and
(2) publish notice of the hearing in a newspaper with general circulation in the district not later than the seventh day before the date of the hearing.
(c) An order adopted under Subsection (a) must be entered not later than the 120th day before the date of the first election at which directors are elected in the manner provided by the order. Not later than the 90th day before the date of the first election at which directors are elected in the manner provided by the order, the board shall:
(1) divide the district into the appropriate number of single-member districts, based on the number of directors to be elected from the single-member districts and number each single-member district; and
(2) determine by lot the order in which the positions will be filled.
(d) The single-member districts must be:
(1) compact and contiguous; and
(2) as nearly as practicable of equal population according to the most recent federal census.
(e) If the data from the most recent federal census indicates that the population of the most populous single-member district exceeds the population of the least populous single-member district by more than 10 percent, the board shall redivide the hospital district into the appropriate number of single-member districts not later than the 90th day before the date of the first regular election at which directors may officially recognize and act on the census. Redivision of the district must be in the manner provided for division of the district under this section.
(f) If the district adopts a redistricting plan under this section, the board may provide in the plan for the directors in office to serve at large for the remainder of their terms. The single-member district and at-large positions provided by the district's plan shall be filled as the staggered terms of incumbent directors expire. (Acts 65th Leg., R.S., Ch. 112, Secs. 5(a) (part), (b) (part).)
Source Law
(a) … However, the board, on its own motion, may order … that not fewer than 50 percent of the directors are to be elected from single-member districts with the remaining directors to be elected from the district at large. Before entering the order, the board must:
(1) hold a public hearing at which registered voters of the district are given an opportunity to comment on whether or not they favor the election of directors in the manner proposed by the board; and
(2) publish notice of the hearing in a newspaper that has general circulation in the district, not later than the seventh day before the day of the hearing.
(b) An order of the board adopted under Subsection (a) of this section must be entered not later than the 120th day before the day of the first election at which all or some of the directors are elected from single-member districts. If the board orders that all or some of the directors shall be elected from single-member districts, the board shall divide the hospital district into the appropriate number of single-member districts, based on the number of directors that are to be elected from the districts, and shall number each district. The single-member districts must be compact and contiguous and must be as nearly as practicable of equal population according to the most recent federal census. Districts must be drawn not later than the 90th day before the day of the first election of directors from single-member districts. Residents of each single-member district are entitled to elect one director to the board. … Not later than the 90th day before the day of the first regular election at which directors may officially recognize and act on the most recent federal census, the board shall redivide the district into the appropriate number of single-member districts if the census data indicates that the population of the most populous single-member district exceeds the population of the least populous district by more than 10 percent. Redivision of the district shall be in the manner provided for division of the district under this subsection. If the hospital district adopts a redistricting plan under this subsection, the board may provide in the plan for the directors then in office to serve at large for the remainder of their terms. The single-member district and at-large positions provided by the district's plan shall be filled as the staggered terms of incumbent directors expire. Not later than the 90th day before the first election from single-member districts, the board shall determine by lot the order in which the positions will be filled.
Revisor's Note
Section 5(b), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that "[r]esidents of each single-member district are entitled to elect one director to the board." The revised law omits the quoted language 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 an election to vote in the election.
Revised Law
Sec. 1061.053. 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 Midland County. (Acts 65th Leg., R.S., Ch. 112, Sec. 5(f) (part).)
Source Law
(f) … notice of the election shall be published in a newspaper of general circulation in the county one time at least 10 days prior to the date of election. …
Revisor's Note
Section 5(f), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, requires notice of a director's election to be published in "the county." Throughout this chapter, the revised law substitutes "Midland County" for the quoted language because Midland County is the county in which the district is located.
Revised Law
Sec. 1061.054. QUALIFICATIONS FOR OFFICE. (a) A person may not be elected or appointed as a director unless the person is:
(1) a resident of the district; and
(2) more than 18 years of age when elected or appointed.
(b) A person who is elected from a single-member district or is appointed to fill a vacancy for a single-member district must reside in that single-member district. (Acts 65th Leg., R.S., Ch. 112, Secs. 5(b) (part), (d).)
Source Law
(b) … A director elected to represent a single-member district at the first election of directors must be a resident of the district he represents. …
(d) No person may be appointed or elected as a member of the board of directors of the hospital district unless he is a resident thereof and unless at the time of such election or appointment he shall be more than 18 years of age. In addition, a person who is elected from a single-member district or who is appointed to fill a vacancy from a single-member district must be a resident of that district.
Revised Law
Sec. 1061.055. 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, 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, shall order the election. (Acts 65th Leg., R.S., Ch. 112, Sec. 5(e) (part).)
Source Law
(e) … All vacancies in the office of director shall be filled for the unexpired term by appointment by the remainder of the board of directors. If the number of directors is reduced to less than four, the remaining directors shall immediately call a special election to fill the vacancies, and upon their failure to do so, the district court, on application of any elector or taxpayer of the district, shall order the election.
Revisor's Note
Section 5(e), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, refers to any "elector" of the district. Throughout this chapter, the revised law substitutes "voter" for "elector" because the former is the term used in the Election Code.
Revised Law
Sec. 1061.056. OFFICERS. (a) The board shall elect:
(1) a president and a vice president from among its members; and
(2) a secretary, who need not be a director.
(b) Each officer of the board serves for a term of one year.
(c) The board by vote shall fill a vacancy in a board office for the unexpired term. (Acts 65th Leg., R.S., Ch. 112, Sec. 5(e) (part).)
Source Law
(e) The board of directors shall organize by electing one of their number as president, one of their number as vice-president, and a secretary who need not be a director. Officers are elected for a term of one year, and vacancies shall be filled for the unexpired term by vote of the board. …
Revised Law
Sec. 1061.057. COMPENSATION; EXPENSES. A director or officer serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties. The expenses must be:
(1) reported in the district's records; and
(2) approved by the board. (Acts 65th Leg., R.S., Ch. 112, Sec. 5(g).)
Source Law
(g) Members of the board of directors and officers shall serve without compensation but may be reimbursed for actual expenses incurred in the performance of their official duties on the approval of those expenses by the board of directors and reported in the minute book of the district or other records of the district.
Revisor's Note
Section 5(g), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, requires that approved expenses be reported in the "minute book of the district or other records of the district." The revised law omits the reference to the "minute book of the district" because the minute book is a district record.
Revised Law
Sec. 1061.058. VOTING REQUIREMENT. A concurrence of four directors is sufficient in any matter relating to district business. (Acts 65th Leg., R.S., Ch. 112, Sec. 5(e) (part).)
Source Law
(e) … Members of the board of directors] … a concurrence of four is sufficient in all matters pertaining to the business of the district. …
Revisor's Note
Section 5(e), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that four directors constitute a quorum. The revised law omits this 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:
(e) … Any four members of the board of directors constitute a quorum, and … .
Revised Law
Sec. 1061.059. DISTRICT ADMINISTRATOR; ASSISTANT ADMINISTRATOR. (a) The board may appoint a qualified person as district administrator.
(b) The board may appoint assistant administrators.
(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 65th Leg., R.S., Ch. 112, Sec. 6 (part).)
Source Law
Sec. 6. … The board of directors may appoint a qualified person as the administrator of the hospital district and may in its discretion appoint assistants to the administrator. The administrator and assistant administrator, if any, serve at the will of the board and receive compensation fixed by the board. The administrator shall on assuming his duties execute a bond payable to the hospital district in an amount set by the board of directors, not less than $10,000, conditioned on performance of the duties required of him and containing other conditions as the board may require. …
Revised Law
Sec. 1061.060. 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 65th Leg., R.S., Ch. 112, Sec. 6 (part).)
Source Law
Sec. 6. … The administrator shall supervise all the work and activities of the district and shall have general direction of the affairs of the district, subject to the limitations prescribed by the board. …
Revised Law
Sec. 1061.061. APPOINTMENT AND DISMISSAL OF STAFF AND EMPLOYEES; CONTRACTS. (a) The board may appoint to or dismiss from the staff any doctors the board considers necessary for the efficient operation of the district and may make temporary appointments as necessary.
(b) The district may employ fiscal agents, accountants, architects, and attorneys the board considers proper.
(c) The board may delegate to the district administrator the authority to hire or contract with technicians, nurses, and other persons or district employees as the administrator considers advisable. (Acts 65th Leg., R.S., Ch. 112, Secs. 6 (part), 18.)
Source Law
Sec. 6. … The board of directors shall have authority to appoint and dismiss from the staff such doctors as it deems necessary for the efficient operation of the district and may provide for temporary appointment to the staff if warranted by circumstances. The board may delegate to the administrator the authority to employ or contract with technicians, nurses, and other persons or employees of the district as deemed advisable by the administrator… .
Sec. 18. The district may employ fiscal agents, accountants, architects, and attorneys as the board considers proper.
Revised Law
Sec. 1061.062. RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES. The board may spend district money, enter into agreements, and take other necessary action to recruit or otherwise obtain physicians and other personnel for the district's medical staff or for employment with the hospital or hospital system, including medical facilities or other health facilities owned or operated by the district. The actions may include:
(1) advertising and marketing;
(2) paying recruitment expenses;
(3) paying travel and relocation expenses; and
(4) providing a subsidy or scholarship. (Acts 65th Leg., R.S., Ch. 112, Sec. 6 (part).)
Source Law
Sec. 6. … The board may enter into agreements, spend district funds, and take other necessary action to recruit or otherwise obtain physicians and other personnel for the district's medical staff or for employment with the hospital or hospital system, including medical facilities or other health facilities owned or operated by the district. The actions may include advertising and marketing, paying recruitment expenses, paying travel and relocation expenses, and providing subsidies and scholarships… .
Revised Law
Sec. 1061.063. SENIORITY; RETIREMENT BENEFITS. (a) The board may:
(1) adopt rules relating to the seniority of district employees; and
(2) establish or administer a retirement program or elect to participate in any statewide retirement program in which the district is eligible to participate.
(b) The district may give effect to previous years of service for district employees continuously employed in the operation or management of the hospital facilities acquired from Midland Memorial Foundation when the district was created. (Acts 65th Leg., R.S., Ch. 112, Sec. 6 (part).)
Source Law
Sec. 6. … The board is given full authority to establish rules relating to seniority of employees of the district and may establish or administer a retirement program or elect to participate in any statewide retirement program in which the district is eligible to participate. The district may give effect to previous years of service for those employees who have been continuously employed in the operation or management of the hospital facilities acquired from Midland Memorial Foundation on the creation of the district… .
Revisor's Note
(End of Subchapter)
(1) Section 5(c), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, requires each director to take the constitutional oath of office. The revised law omits that provision because Section 1, Article XVI, Texas Constitution, requires all officers to take the oath (or affirmation) before assuming office. The omitted law reads:
(c) Each director and his successor in office shall qualify by executing the constitutional oath of office.
(2) Section 5(f), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, states that a person must file a ballot application with the board secretary to be a candidate for director and prescribes a deadline for filing the application. The revised law omits the requirement to file the application with the board secretary because it duplicates Sections 144.003 and 144.004, Election Code. The revised law omits the filing deadline because it is superseded by Section 144.005, Election Code. Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state. The omitted law reads:
(f) . . . Any person desiring his name to be printed on the ballot as a candidate for director shall file an application with the secretary of the board requesting that his name be printed on the ballot. The application must be filed not later than 5 p.m. of the 45th day before the date of the election.
(3) Section 5A, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides procedures regarding write-in voting for director elections. The revised law omits the provision because it mostly duplicates Section 285.131, Health and Safety Code, which, according to its terms, applies to all hospital districts created under general or special law. The portion of the provision regarding the deadline for filing a declaration of write-in candidacy is superseded by amendments made to Section 285.131, Health and Safety Code, by Section 11, Chapter 925, Acts of the 78th Legislature, Regular Session, 2003, and by Section 34, Chapter 1109, Acts of the 79th Legislature, Regular Session, 2005. The omitted law reads:
Sec. 5A. (a) In a general or special election of directors, a write-in vote may not be counted unless the name written in appears on the list of write-in candidates.
(b) To be entitled to a place on the list of write-in candidates, a candidate must make a declaration of write-in candidacy.
(c) A declaration of write-in candidacy must be filed with the secretary of the board of directors not later than 5 p.m. of the fifth day after the date an application for a place on the ballot is required to be filed in the election. However, if a candidate whose name is to appear on the ballot dies or is declared ineligible after the 43rd day before election day, a declaration of write-in candidacy for the office sought by the deceased or ineligible candidate may be filed not later than 5 p.m. of the 37th day before election day.
(d) Subchapter B, Chapter 146, Election Code, applies to write-in voting in an election of directors except to the extent of a conflict with this section.
[Sections 1061.064-1061.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Revised Law
Sec. 1061.101. DISTRICT RESPONSIBILITY. (a) The district has full responsibility for providing hospital care for the district's indigent residents.
(b) The district shall provide all necessary hospital and medical care for the district's needy inhabitants. (Acts 65th Leg., R.S., Ch. 112, Secs. 3(a) (part), 21 (part).)
Source Law
Sec. 3. (a) … This district shall provide all necessary medical and hospital care for the needy inhabitants of the district… .
Sec. 21. … The hospital district shall assume full responsibility for providing hospital care for the indigents residing within the district… .
Revisor's Note
Section 21, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that the district "shall assume" full responsibility for providing hospital care for indigents residing in the district. The revised law substitutes "has" for the quoted language because the duty to assume the responsibility is executed.
Revised Law
Sec. 1061.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision of this state, other than the district, may not impose a tax or issue bonds or other obligations for hospital purposes or to provide medical care in the district. (Acts 65th Leg., R.S., Ch. 112, Secs. 3(a) (part), 21 (part).)
Source Law
Sec. 3. (a) … After this district is created as provided in Section 4 of this Act, no other municipality or political subdivision has the authority to levy taxes or issue bonds or other obligations for hospital purposes or for providing medical care within the boundaries of the district… .
Sec. 21. After creation of the hospital district, no municipality or political subdivision within the boundaries of the district has the power to levy taxes or issue bonds or other obligations for hospital purposes or for providing medical care… .
Revisor's Note
(1) Sections 3(a) and 21, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provide that after creation of the district, certain political subdivisions may not levy taxes or issue bonds for hospital purposes or for providing medical care in the district. The revised law omits the references to the creation of the district as executed. In addition, throughout this chapter, the revised law substitutes "impose" for "levy" because, in this context, the terms are synonymous and the former is more commonly used.
(2) Sections 3(a) and 21, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, refer to a "municipality or political subdivision." The revised law omits the references to "municipality" because "municipality" is included in the meaning of "political subdivision."
Revised Law
Sec. 1061.103. MANAGEMENT, CONTROL, AND ADMINISTRATION; GENERAL BOARD POWER. (a) The board shall manage, control, and administer the district's hospital or hospital system and the district's money and resources.
(b) The board may exercise any power provided by this chapter unless the board enters into a management contract under Section 1061.113 that provides the power is exercised in accordance with the contract. (Acts 65th Leg., R.S., Ch. 112, Sec. 6 (part).)
Source Law
Sec. 6. The board of directors shall manage, control, and administer the hospital or hospital system of the district and all funds and resources of the district, but … . The board of directors may exercise all of the powers of this section and all other sections of this Act, unless an operating or management agreement is entered into with the board of directors, in accordance with Section 7 hereof, by which either all or a part of such powers shall be exercised pursuant to the operating or management agreement.
Revised Law
Sec. 1061.104. HOSPITAL SYSTEM. (a) The district has the responsibility to establish a hospital or hospital system, including medical facilities and other health facilities, within its boundaries to provide hospital and medical care to the district's residents.
(b) 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 buildings and equipment for hospital and medical care purposes.
(c) The hospital system may include:
(1) facilities for domiciliary care of the sick, injured, or geriatric;
(2) outpatient clinics;
(3) dispensaries;
(4) convalescent home facilities;
(5) necessary nurses' domiciliaries;
(6) training centers;
(7) training facilities for doctors and nurses and for other health care disciplines;
(8) blood banks;
(9) community mental health centers;
(10) research centers or laboratories;
(11) parking; and
(12) any other facilities the board considers necessary for a hospital or hospital system and a medical facility or other health facility included in the hospital or hospital system. (Acts 65th Leg., R.S., Ch. 112, Secs. 3(a) (part), (b) (part), 11(a) (part).)
Source Law
Sec. 3. (a) The district authorized to be created by this Act is charged with the responsibility of establishing a hospital or a hospital system, including medical facilities and other health facilities, within its boundaries to furnish hospital and medical care to the residents of the district… .
(b) … The district shall provide for the establishment of a hospital system by the purchase, construction, acquisition, repair, and renovation of buildings and equipment, and equipping same, and its administration for hospital and medical care purposes… .
Sec. 11. (a) … The hospital system may include facilities for domiciliary care of the sick, wounded, and injured, outpatient clinics, dispensaries, facilities for geriatric domiciliary care, convalescent home facilities, necessary nurses' domiciliaries, and training centers, training facilities for doctors, nurses, and other health care disciplines, blood banks, community mental health centers, research centers or laboratories, parking, and any other facilities deemed necessary by the board of directors for a hospital or hospital system and a medical facility or other health facility included in the hospital or hospital system… .
Revisor's Note
Section 11(a), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, refers to the care of the "sick, wounded, and injured." The revised law omits the reference to "wounded" because "wounded" is included in the meaning of "injured."
Revised Law
Sec. 1061.105. RULES. The board may adopt rules governing the operation of the hospital, the hospital system, and the district's staff and employees. (Acts 65th Leg., R.S., Ch. 112, Sec. 6 (part).)
Source Law
Sec. 6. … The district, through its board of directors, shall have the power and authority … to promulgate rules governing the operation of the hospital, hospital system, its staff, and its employees… .
Revisor's Note
Section 6, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that the board may "promulgate rules" to govern the district. The revised law substitutes "adopt" for "promulgate" because the terms are synonymous and the former is more commonly used.
Revised Law
Sec. 1061.106. PURCHASING AND ACCOUNTING PROCEDURES. (a) The board may prescribe:
(1) the method and manner of making purchases and expenditures by and for the district; and
(2) all accounting and control procedures.
(b) The board by resolution may delegate a power described by Subsection (a) to:
(1) the Midland Memorial Foundation or its successors; or
(2) a person who enters into an operating or management agreement with the district to exercise the power. (Acts 65th Leg., R.S., Ch. 112, Sec. 12 (part).)
Source Law
Sec. 12. The board of directors has the power to prescribe the method and manner of making purchases and expenditures by and for the hospital district and shall also be authorized to prescribe all accounting and control procedures or may delegate all or any of those powers, by the adoption of an appropriate resolution to that effect, to the Midland Memorial Foundation or its successors, or to an individual, corporation, agency, political subdivision, or other entity that enters into an operating or management agreement with the district to exercise all or any of those powers… .
Revisor's Note
Section 12, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, refers to an "individual, corporation, agency, political subdivision, or other entity." Throughout this chapter, the revised law substitutes "person" for the quoted language or similar language because under Section 311.005(2), Government Code (Code Construction Act), "person" is defined to include any legal entity.
Revised Law
Sec. 1061.107. AMBULANCE OR MOBILE EMERGENCY SERVICE. The district may operate or provide for the operation of an ambulance or mobile emergency service. (Acts 65th Leg., R.S., Ch. 112, Sec. 6 (part).)
Source Law
Sec. 6. … The district may operate or provide for the operation of an ambulance or mobile emergency service… .
Revised Law
Sec. 1061.108. DISTRICT PROPERTY, FACILITIES, AND EQUIPMENT. (a) The board shall determine the type, number, and location of buildings and property required to maintain an adequate hospital system.
(b) The board may lease property, including facilities and equipment, and may enter into a lease of all or part of the district's buildings or other facilities with any person on terms considered to be in the best interest of the district. The term of the lease may not exceed 40 years.
(c) The district may acquire equipment for use in the district's hospital system, including medical and health facilities, and mortgage or pledge the property as security for the payment of the purchase price. A contract entered into under this subsection must provide that the entire obligation be retired not later than the fifth anniversary of the date of the contract.
(d) The board on behalf of the district may hold, construct, condemn, purchase, acquire, lease, add to, maintain, operate, regulate, sell, convey, or otherwise dispose of any type of property, including land or equipment, or a property right, hospital facility, or hospital system on terms the board finds are in the best interest of the district's inhabitants.
(e) The board may donate to another governmental entity or to a charitable organization any surplus personal property or equipment if the donation serves a public purpose and is accompanied by adequate consideration. (Acts 65th Leg., R.S., Ch. 112, Secs. 11(a) (part), (b), 12 (part).)
Source Law
Sec. 11. (a) The board of directors is given complete discretion as to the type, number, and location of buildings and property required to establish and maintain an adequate hospital system… . The district, through its board of directors, is authorized to lease property, facilities, or equipment and to enter into leases of all or a part of its buildings and facilities with any person, corporation, political subdivision, agency, or branch of the state or United States, with such terms and conditions as considered to be in the best interest of the district; provided that no lease may be for a period in excess of 40 years from the date entered. On the district's behalf, the board of directors may hold, construct, condemn, purchase, acquire, lease, add to, maintain, operate, regulate, sell, convey, or otherwise dispose of land, equipment, or property of any nature, or a property right, hospital facility, or hospital system on terms and conditions found by the board to be in the best interest of the district's inhabitants.
(b) The board of directors may donate to another governmental entity or to a charitable organization any surplus personal property or equipment if the donation serves a public purpose and is accompanied by adequate consideration.
Sec. 12. … The district may acquire equipment for use in its hospital system, including medical facilities and health facilities, and mortgage or pledge the property so acquired as security for the payment of the purchase price, but any such contract shall provide for the entire obligation of the district to be retired within five years from the date of the contract… .
Revisor's Note
(1) Section 11(a), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, requires the board to determine the buildings and property required to "establish and maintain" an adequate hospital system. The revised law omits the reference to establishing the hospital system as executed.
(2) Section 11(a), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, refers to "terms and conditions." Throughout this chapter, the revised law omits the references to "conditions" because "conditions" is included in the meaning of "terms."
Revised Law
Sec. 1061.109. 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, except the district is not required to deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code.
(c) In a condemnation proceeding brought by the district, the district is not required to:
(1) pay in advance or provide a bond or other security for costs in the trial court;
(2) provide a bond for the issuance of a temporary restraining order or a temporary injunction; or
(3) provide a bond for costs or a supersedeas bond on an appeal or petition for review. (Acts 65th Leg., R.S., Ch. 112, Sec. 16(a).)
Source Law
Sec. 16. (a) The district has the right and power of eminent domain for the purpose of acquiring by condemnation property of any kind and character in fee simple, or any lesser interest, 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; provided that the district shall not be required to make bond or deposits in the registry of the trial court as required by Paragraph 2 of Article 3268, Revised Civil Statutes of Texas, 1925, as amended. In condemnation proceedings being prosecuted by the district, the district shall not be required to pay in advance or give bond or other security for costs in the trial court nor to give any bond otherwise required for the issuance of a temporary restraining order or a temporary injunction nor to give bond for costs or for supersedeas on any appeal or writ of error.
Revisor's Note
(1) Section 16(a), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that the district has the "right and power of eminent domain for the purpose of acquiring [property] by condemnation." The revised law substitutes for the quoted language "may exercise the power of eminent domain to acquire [property]" because the phrases have the same meaning, and the latter phrase is consistent with modern usage in laws relating to eminent domain.
(2) Section 16(a), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that the district must exercise the power of eminent domain in the manner provided by "the general law with respect to condemnation by counties." The revised law substitutes for the quoted language a reference to Chapter 21, Property Code, because that is the general law governing eminent domain for governmental entities, including counties.
(3) Section 16(a), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, refers to "Paragraph 2 of Article 3268, Revised Civil Statutes of Texas, 1925, as amended." That statute was codified in 1983 as Section 21.021(a), Property Code, and the revised law is drafted accordingly. In addition, throughout this chapter, the revised law omits the 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.
(4) Section 16(a), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, refers to a "writ of error." The revised law substitutes "petition for review" for "writ of error" because, effective September 1, 1997, the Texas Supreme Court replaced the writ of error procedure with the petition for review procedure. See Rule 53.1, Texas Rules of Appellate Procedure.
Revised Law
Sec. 1061.110. COST OF RELOCATING OR ALTERING PROPERTY. In exercising the power of eminent domain, if the board requires relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of any railroad, electric transmission, telegraph or telephone line, conduit, pole, or facility, or pipeline, the district must bear the actual cost of relocating, raising, lowering, rerouting, changing the grade, or altering the construction to provide comparable replacement, without enhancement of facilities, after deducting the net salvage value derived from the old facility. (Acts 65th Leg., R.S., Ch. 112, Sec. 16(b).)
Source Law
(b) If the board requires the relocation, raising, lowering, rerouting, or change in grade or alteration in the construction of any railroad, electric transmission, telegraph or telephone lines, conduits, poles, or facilities, or pipelines in the exercise of the power of eminent domain, all of the relocation, raising, lowering, rerouting, or changes in grade or alteration of construction due to the exercise of the power of eminent domain shall be the sole expense of the board. The term "sole expense" means the actual cost of relocation, raising, lowering, rerouting, or change in grade or alteration of construction to provide comparable replacement without enhancement of facilities after deducting the net salvage value derived from the old facility.
Revised Law
Sec. 1061.111. 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 65th Leg., R.S., Ch. 112, Sec. 20.)
Source Law
Sec. 20. The board of directors of the hospital district is authorized on behalf of the district to accept donations, gifts, and endowments to be held in trust and administered by the board of directors for purposes and under directions, limitations, and provisions prescribed in writing by the donor which are not inconsistent with proper management and objectives of the hospital district.
Revisor's Note
Section 20, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, 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. 1061.112. CONSTRUCTION OR PURCHASE CONTRACTS. A construction or purchase contract that involves the expenditure of more than $25,000 may be made only after advertising in the manner provided by Chapter 252, Local Government Code. (Acts 65th Leg., R.S., Ch. 112, Sec. 12 (part).)
Source Law
Sec. 12. … All contracts by the district for construction or purchases involving the expenditure of more than $25,000 may be made only after advertising in the manner provided by Chapter 252, Local Government Code… .
Revisor's Note
Section 12, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that Chapter 2253, Government Code, applies to the district's construction contracts in relation to performance and payment bonds. The revised law omits the provision because Chapter 2253, Government Code, applies to hospital districts on its own terms. The omitted law reads:
Sec. 12. … The provisions of Chapter 2253, Government Code, apply to construction contracts let by the district… .
Revised Law
Sec. 1061.113. MANAGEMENT AGREEMENT; LIABILITY. (a) The board may enter into a management agreement with any person, including the Midland Memorial Foundation or its successors, for the management and operation of any hospital or part of a hospital owned by the district, under terms satisfactory to the board and the person.
(b) An agreement under Subsection (a) may be for a term not to exceed 10 years, with renewal options as considered advisable.
(c) A nonprofit corporation that manages a hospital or provides services under a contract with the district under this chapter and any corporation employee are district employees for purposes of Chapters 101 and 102, Civil Practice and Remedies Code, while performing services under the contract for the benefit of the district. (Acts 65th Leg., R.S., Ch. 112, Sec. 7.)
Source Law
Sec. 7. The board of directors, in addition to any other powers which it may now or hereafter have, is hereby authorized to enter into a management agreement with the Midland Memorial Foundation or its successors or any other individual, corporation, agency, or governmental subdivision or entity for the management and operation of any hospital or part thereof owned by the district, under such terms and conditions as may be satisfactory to the board of directors and the Midland Memorial Foundation or any other individual, corporation, agency, or governmental subdivision or entity. Such agreement may be for a term of up to 10 years with such options of renewal as deemed advisable. A nonprofit corporation that manages a hospital or provides services under a contract with the district under this Act and any employee of the corporation are, while performing services under the contract for the benefit of the district, employees of the district for the purposes of Chapters 101 and 102, Civil Practice and Remedies Code.
Revised Law
Sec. 1061.114. CONTRACTS FOR HOSPITALIZATION, TREATMENT, AND TRAINING. (a) The board may contract with any person located inside or outside the district's boundaries for the hospitalization and treatment of a sick or injured person.
(b) The district may contract with any person located inside or outside the district's boundaries for services provided by the district, including:
(1) the promotion of health;
(2) hospital treatment of a sick or injured person; and
(3) the training of doctors and nurses and the provision of training in health care disciplines. (Acts 65th Leg., R.S., Ch. 112, Sec. 6 (part).)
Source Law
Sec. 6. … The board shall be authorized to contract with any person, firm, corporation, hospital or hospital authority, hospital district, emergency services district, county, incorporated municipality, or any political subdivision of this state, located inside or outside its boundaries, for the hospitalization and treatment of sick, diseased, or injured persons. … The district may contract with the state or its agencies, the federal government or its agencies, or a person, firm, corporation, hospital, hospital authority, emergency services district, county, incorporated municipality, or another political subdivision of this state, located inside or outside its boundaries, for services provided by the district, including the promotion of health, hospital treatment of sick, diseased, or injured persons, and the training of doctors, nurses, and other health care disciplines. …
Revisor's Note
Section 6, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, 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. 1061.115. CONTRACT FOR INVESTIGATORY OR OTHER SERVICES. The board may contract with any person for the district to provide investigatory or other services for the medical, hospital, or welfare needs of district inhabitants. (Acts 65th Leg., R.S., Ch. 112, Sec. 6 (part).)
Source Law
Sec. 6. … The board shall be authorized to contract with any person, firm, corporation, political subdivision, or governmental agency whereby the district will provide investigatory or other services as to the medical, hospital, or welfare needs of the inhabitants of the district. …
Revised Law
Sec. 1061.116. CONTRACT FOR FACILITIES TO SUPPORT SURGICAL RESIDENCY PROGRAM. (a) The board may contract with a state agency or public medical school, including the Texas Tech University Health Sciences Center, for the improvement and equipping of hospital facilities as necessary to support a surgical residency program.
(b) Notwithstanding other law, the state agency or medical school may enter into an agreement described by Subsection (a) and spend appropriated funds for that purpose. (Acts 65th Leg., R.S., Ch. 112, Sec. 6A.)
Source Law
Sec. 6A. The board may contract with a state agency or public medical school, including the Texas Tech University Health Sciences Center, for the improvement and equipping of hospital facilities as necessary to support a surgical residency program. Notwithstanding other law, the state agency or medical school may enter into such an agreement and expend appropriated funds for that purpose.
Revised Law
Sec. 1061.117. PROVISION OF SERVICES OUTSIDE DISTRICT. The district may provide primary care, emergency services, preventive medical services, and other health-related services outside the district, provided that the services serve the purpose of the district as established by this chapter. (Acts 65th Leg., R.S., Ch. 112, Sec. 3(a) (part).)
Source Law
(a) … The district may provide primary care, emergency services, preventive medical services, and other health-related services outside the boundaries of the district, provided that the services serve the purpose of the district as established by this Act.
Revised Law
Sec. 1061.118. PAYMENT FOR TREATMENT; PROCEDURES. (a) When a patient who resides in the district is admitted to a district facility, the district administrator may have an inquiry made into the financial 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 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 care and support. The amount ordered must be proportionate to the person's financial ability.
(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 hear and determine the issue, after calling witnesses.
(f) The final order of the board may be appealed to the district court. The substantial evidence rule applies to the appeal. (Acts 65th Leg., R.S., Ch. 112, Sec. 19 (part).)
Source Law
Sec. 19. When a patient residing within the district has been admitted to the district's facilities, the administrator may cause inquiry to be made as to his financial circumstances and those of the relatives of the patient legally liable for his support. If he finds that the patient or his relatives are able to pay for his care and treatment in whole or in part, an order shall be made directing the patient or his relatives to pay to the hospital district for the care and support of the patient a specified sum each week in proportion to their financial ability. The administrator shall have power and authority to collect the 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 finds that the patient or his relatives are not able to pay, either in whole or in part, for his care and treatment in the hospital, it shall become a charge on 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 the issue after calling witnesses. Appeals from the final order of the board lie to the district court. The substantial evidence rule applies. …
Revisor's Note
Section 19, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, refers to the district "administrator or manager." 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. 1061.119. REIMBURSEMENT FOR SERVICES TO NONRESIDENTS. If a welfare patient, who is not a district resident, is admitted to a district facility, the district may:
(1) seek reimbursement from the patient's county of residence; and
(2) sue for reimbursement. (Acts 65th Leg., R.S., Ch. 112, Sec. 19 (part).)
Source Law
Sec. 19. … If a welfare patient is admitted to the district's facilities and is not a resident of the district, the district may seek reimbursement from the county of the residency of the patient and may sue for reimbursement.
Revised Law
Sec. 1061.120. AUTHORITY TO SUE AND BE SUED. The district, through the board, may sue and be sued. (Acts 65th Leg., R.S., Ch. 112, Sec. 6 (part).)
Source Law
Sec. 6. … The district, through its board of directors, shall have the power and authority to sue and be sued and … .
[Sections 1061.121-1061.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Revised Law
Sec. 1061.151. BUDGET. (a) Unless otherwise provided in a management agreement, the district administrator shall prepare an annual budget for approval by the board.
(b) The proposed budget must contain a complete financial statement of:
(1) the outstanding obligations of the district;
(2) the cash on hand in each district fund;
(3) the money received by the district from all sources during the previous year;
(4) the money available to the district from all sources during the ensuing year;
(5) the balances expected at the end of the year in which the budget is being prepared;
(6) the estimated revenue and balances available to cover the proposed budget;
(7) the estimated tax rate required; and
(8) the proposed expenditures and disbursements and the estimated receipts and collections for the following fiscal year.
(c) The board shall provide in each annual budget for the payment of all operation and maintenance expenses of the district.
(d) In preparing the budget, the board may consider the estimated excess revenue and income from hospital facilities available for paying the operation and maintenance expenses after providing for the payment of revenue bonds issued by the district. (Acts 65th Leg., R.S., Ch. 112, Secs. 8 (part), 10 (part).)
Source Law
Sec. 8. … Unless otherwise provided for in a management agreement, the administrator shall prepare an annual budget for approval by the board of directors. The budget shall also contain a complete financial statement of the district showing all outstanding obligations of the district, the cash on hand to the credit of each fund of the district, the funds received from all sources during the previous year, the funds available from all sources during the ensuing year, with balances expected at year-end of the year in which the budget is being prepared, estimated revenues and balances available to cover the proposed budget, the estimated tax rate which will be required, and the proposed expenditures, disbursements, and estimated receipts and collections for the following fiscal year. …
Sec. 10. [The board of directors of the district is authorized to issue revenue bonds] … . The board of directors of the district shall make provision in each annual hospital district budget for the payment of all operation and maintenance expenses of the hospital district. In preparing the budget, the board of directors may take into consideration the estimated excess revenues and income from hospital facilities that will be available for paying operation and maintenance expenses after providing with said bonds. …
Revised Law
Sec. 1061.152. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The board shall hold a public hearing on the proposed annual budget.
(b) At least 10 days before the date of the hearing, notice of the hearing shall be published one time in a newspaper or newspapers that individually or collectively have general circulation in the district.
(c) Any property taxpayer of the district is entitled to be present and participate at the hearing.
(d) At the conclusion of the hearing, the board shall adopt a budget by acting on the budget proposed by the district administrator. The board may make any changes in the proposed budget that the board judges to be in the interest of the taxpayers and that the law warrants. (Acts 65th Leg., R.S., Ch. 112, Sec. 8 (part).)
Source Law
Sec. 8. … A public hearing on the annual budget shall be held by the board of directors after notice of the hearing has been published one time at least 10 days before the date set for the hearing in a newspaper or newspapers which individually or collectively provide general circulation in the hospital district. Any property taxpayer of the district shall have the right to be present and participate in the hearing. At the conclusion of the hearing, the budget as proposed shall be acted on by the board of directors. The board of directors shall have authority to make such changes in the budget as in their judgment the law warrants and the interest of the taxpayers demands. … the annual budget and … shall be approved by the board of directors. …
Revised Law
Sec. 1061.153. AMENDMENTS TO BUDGET. The budget may be amended as required by circumstances. The board must approve all amendments. (Acts 65th Leg., R.S., Ch. 112, Sec. 8 (part).)
Source Law
Sec. 8. … The annual budget may be amended from time to time as the circumstances may require, but … all amendments shall be approved by the board of directors. …
Revisor's Note
Section 8, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, states that the board may amend the budget "from time to time." The revised law omits the quoted language because the authority to amend the budget implies the authority to do so at any time.
Revised Law
Sec. 1061.154. RESTRICTION ON EXPENDITURES. Money may be spent only for an expense included in the budget or an amendment to the budget. (Acts 65th Leg., R.S., Ch. 112, Sec. 8 (part).)
Source Law
Sec. 8. … No expenditures may be made for any expense not included in the annual budget or an amendment to it. …
Revised Law
Sec. 1061.155. FISCAL YEAR. The district operates according to a fiscal year that begins on October 1 and ends on September 30. The board may change the fiscal year. (Acts 65th Leg., R.S., Ch. 112, Sec. 8 (part).)
Source Law
Sec. 8. The district shall be operated on the basis of a fiscal year originally established to commence on October 1 of each year and end on September 30 of the following year; such fiscal year may be changed by the board of directors. …
Revised Law
Sec. 1061.156. AUDIT. The board shall have an independent audit made of the district's financial condition for each fiscal year. (Acts 65th Leg., R.S., Ch. 112, Sec. 8 (part).)
Source Law
Sec. 8. … The board of directors shall cause for every fiscal year an independent audit to be made of the financial condition of the district, … .
Revised Law
Sec. 1061.157. INSPECTION OF AUDIT AND DISTRICT RECORDS. The audit and other district records shall be open to inspection at the district's principal office. (Acts 65th Leg., R.S., Ch. 112, Sec. 8 (part).)
Source Law
Sec. 8. … [The board of directors shall cause for every fiscal year an independent audit to be made of the financial condition of the district,] which, together with other records of the district, shall be open to inspection at the principal office of the district. …
Revised Law
Sec. 1061.158. FINANCIAL REPORT. As soon as practicable after the close of each fiscal year, the district administrator or the managing entity of the hospital 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 65th Leg., R.S., Ch. 112, Sec. 8 (part).)
Source Law
Sec. 8. … As soon as practicable after the close of each fiscal year, the administrator or the managing entity of the hospital shall prepare for the board a full sworn statement of all money belonging to the district and a full account of disbursements.
Revised Law
Sec. 1061.159. DEPOSITORY. (a) The board shall select one or more banks in the district to serve as a depository for district money. A selected bank serves for four years. Bids shall be received for a depository contract after notice is published one time in a newspaper of general circulation in the district 20 days before the date to open the bids. The district shall award the depository contract to the bank or banks offering the most favorable terms for handling the district's money.
(b) District money, other than money invested as provided by Section 1061.160(b) and money transmitted to a bank for payment of bonds or obligations issued by the district, shall be deposited as received with the depository bank and shall remain on deposit.
(c) This chapter, including Subsection (b), does not limit the power of the board to place a part of district money on time deposit or to purchase certificates of deposit.
(d) The district may not deposit money with a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation unless the bank first executes a bond or other security or pledges security as required for county depositories in an amount sufficient to secure from loss the district money that exceeds the amount secured by the Federal Deposit Insurance Corporation. (Acts 65th Leg., R.S., Ch. 112, Sec. 13.)
Source Law
Sec. 13. (a) The board of directors of the district shall name one or more banks within its boundaries to serve as depository for the funds of the district for a period of four years. Bids shall be received for a depository contract after a notice is published once, 20 days before the date to open such bids, in a newspaper of general circulation in the district. The depository contract shall be awarded to the bank or banks offering the most favorable terms and conditions for handling the district's money. All funds of the district, except those invested as provided in Section 6 of this Act and those transmitted to a bank or banks as payment for bonds or obligations issued by the district, shall be deposited as received with the depository bank and shall remain on deposit; provided that nothing in this Act shall limit the power of the board to place a portion of such funds on time deposit or purchase certificates of deposit.
(b) Before the district deposits in a bank funds of the district in an amount which exceeds the maximum amount secured by the Federal Deposit Insurance Corporation, the bank shall be required to execute a bond or other security or pledged securities as required for county depositories in an amount sufficient to secure from loss the district funds which exceed the amount secured by the Federal Deposit Insurance Corporation.
Revised Law
Sec. 1061.160. SPENDING AND INVESTMENT RESTRICTIONS. (a) Except as otherwise provided by Section 1061.108(c) and by Subchapter E, the district may not incur an obligation payable from district revenue other than the revenue on hand or to be on hand in the current and following district fiscal years.
(b) The board may invest operating, depreciation, or building reserves only in funds or securities specified by Chapter 2256, Government Code. (Acts 65th Leg., R.S., Ch. 112, Secs. 6 (part), 12 (part).)
Source Law
Sec. 6. … operating, depreciation, or building fund reserves may not be invested in any funds or securities other than those specified in Articles 836 and 837, Revised Civil Statutes of Texas, 1925, as amended. …
Sec. 12. … Except as permitted in the preceding sentence and as permitted by Sections 9 and 10 of this Act, the district may incur no obligation payable from any revenues of the district, taxes or otherwise, except those on hand or to be on hand within the current and following fiscal year of the district.
Revisor's Note
(1) Section 6, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, refers to "Articles 836 and 837, Revised Civil Statutes of Texas, 1925, as amended." Those articles were impliedly repealed by the enactment of the Public Funds Investment Act of 1987 (Article 842a-2, Vernon's Texas Civil Statutes), which was revised in 1993 as Chapter 2256, Government Code. Chapter 2256 defines "local government" to include hospital districts and applies to the district by its own terms. The revised law therefore substitutes a reference to Chapter 2256, Government Code, for the references to Articles 836 and 837.
(2) Section 12, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, states that "[e]xcept as permitted in the preceding sentence and as permitted by Sections 9 and 10 of this Act," the district may not incur certain obligations. The "preceding sentence" in Section 12 is codified in Section 1061.108(c). Sections 9 and 10 are codified in Subchapter E. The revised law is drafted accordingly.
[Sections 1061.161-1061.200 reserved for expansion]
SUBCHAPTER E. BONDS
Revised Law
Sec. 1061.201. GENERAL OBLIGATION BONDS. The board may issue and sell general obligation bonds in the name and on the full faith and credit of the district for:
(1) the purchase, construction, acquisition, repair, or renovation of buildings or improvements; and
(2) equipping buildings or improvements for hospital purposes. (Acts 65th Leg., R.S., Ch. 112, Sec. 9(a) (part).)
Source Law
Sec. 9. (a) The board of directors shall have the power to issue and sell its bonds in the name and on the full faith and credit of the hospital district for the purchase, construction, acquisition, repair, or renovation of buildings and improvements and equipping same for hospital purposes. …
Revisor's Note
Section 9(a), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that the board may issue and sell bonds in the name and on the full faith and credit of the district. Because the type of bonds described by Section 9(a) are known as "general obligation bonds," the revised law is drafted accordingly.
Revised Law
Sec. 1061.202. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued by the district under Section 1061.201, the board shall impose an ad valorem tax at a rate sufficient to create an interest and sinking fund to pay the principal of and interest on the bonds as the bonds mature.
(b) The tax required by this section together with any other ad valorem tax the district imposes may not in any year exceed the tax rate approved by the voters at the election authorizing the imposition of the tax. (Acts 65th Leg., R.S., Ch. 112, Sec. 9(a) (part).)
Source Law
(a) … At the time of the issuance of any bonds by the district, a tax shall be levied by the board sufficient to create an interest and sinking fund to pay the interest on and principal of the bonds as same mature, providing the tax, together with any other taxes levied for the district, shall not exceed the rate of tax approved under Section 4 of this Act. …
Revisor's Note
(1) Section 9(a), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, 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 9(a), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that the tax rate may not exceed "the rate of tax approved under Section 4 of this Act." Section 4 sets out procedures for the district's creation election and requires voter approval of the district's authority to impose taxes. Because the revised law omits Section 4 for the reason stated in the revisor's note at the end of Subchapter A, the revised law substitutes "the tax rate approved by the voters at the election authorizing the imposition of the tax" for the quoted language.
Revised Law
Sec. 1061.203. BOND ELECTION. (a) The district may issue tax bonds only if the bonds are authorized by a majority of the district voters voting at an election held for that purpose.
(b) The order calling the election shall provide for clerks as in county elections and must specify:
(1) the date of the election;
(2) the location of the polling places;
(3) the presiding and alternate presiding judges for each polling place;
(4) the amount of the bonds to be authorized; and
(5) the maximum maturity date of the bonds.
(c) Notice of a bond election shall be given as provided by Section 1251.003, Government Code. (Acts 65th Leg., R.S., Ch. 112, Sec. 9(a) (part).)
Source Law
(a) … No tax bonds shall be issued by the hospital district … until authorized by a majority of the electors of the district voting at an election called for that purpose. The order for a bond election shall specify the date of the election, the amount of bonds to be authorized, and the maximum maturity date, the place or places where the election shall be held, the presiding judge and alternate presiding judge for each voting place, and provide for clerks as in county elections. … notice of any bond election shall be given as provided in Article 704, Revised Civil Statutes of Texas, 1925, as amended, and shall be conducted in accordance with the Texas Election Code, as amended, except as modified by the provisions of this Act.
Revisor's Note
(1) Section 9(a), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that notice of a bond election under Section 9(b) must be given as provided by Section 4. As explained in the revisor's note to the end of Subchapter A, Sections 4 and 9(b), Chapter 112, are executed. The revised law therefore omits the provision. The omitted law reads:
(a) … Except for a bond election held under Subsection (b) of this section in which case notice shall be given as provided in Section 4 of this Act, … .
(2) Section 9(a), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, refers to Article 704, Revised Statutes, which specifies certain notice requirements for a bond election. That provision was codified in 1999 as Section 1251.003, Government Code. The revised law is drafted accordingly.
(3) Section 9(a), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that an election under Section 9 "shall be conducted in accordance with the Texas Election Code, as amended, except as modified by the provisions of this Act." The revised law omits the quoted language because Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state. An exception to the application of the Election Code would apply by its own terms.
Revised Law
Sec. 1061.204. REVENUE BONDS. (a) The board may issue revenue bonds to:
(1) purchase, construct, acquire, repair, or renovate buildings or improvements;
(2) equip any hospital facilities, including facilities for parking;
(3) train doctors and nurses and provide training in health care disciplines; and
(4) acquire real or personal property for use in connection with the hospital facilities.
(b) A revenue bond issued under this section must mature not later than 40 years after the date of issuance.
(c) The board may provide for the subsequent issuance of additional parity bonds, subordinate lien bonds, or other types of bonds under terms prescribed in the order authorizing the issuance of revenue bonds. (Acts 65th Leg., R.S., Ch. 112, Sec. 10 (part).)
Source Law
Sec. 10. The board of directors is authorized to issue revenue bonds for the purchase, construction, acquisition, and repair or renovation of buildings and improvements, and equipping any hospital facilities, including facilities for parking, and the training of doctors, nurses, and health care disciplines, and to acquire any real or personal property in connection therewith, … . Said bonds may be issued to mature serially or otherwise not to exceed 40 years from their date. In the authorization of any such bonds, the board of directors may provide for the subsequent issuance of additional parity bonds or subordinate lien bonds or other types of bonds, under such terms or conditions as may be set forth in the order authorizing the issuance of said bonds, all within the discretion of the board of directors. …
Revisor's Note
Section 10, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that bonds issued under that law may "mature serially or otherwise." The revised law omits the quoted language because it duplicates Section 1201.022(a)(1), Government Code. That section applies to the district by application of Section 1201.002, Government Code.
Revised Law
Sec. 1061.205. PAYMENT OF REVENUE BONDS; SECURITY. (a) Revenue bonds issued under Section 1061.204 must be payable from and secured by liens on and pledges of all or any part of the revenue and income, other than ad valorem taxes, derived by the district from the operation and ownership of district facilities. The board may pledge to the payment of revenue bonds all or any part of a grant, donation, or income received or to be received from the United States or any other public or private source under an agreement or otherwise.
(b) The bonds may be additionally secured by a mortgage or deed of trust on any real property on which a district hospital facility is or will be located and any real or personal property incident or appurtenant to the facility. The board may authorize the execution and delivery of a trust indenture, mortgage, deed of trust, or other form of encumbrance to evidence the security interest. (Acts 65th Leg., R.S., Ch. 112, Sec. 10 (part).)
Source Law
Sec. 10. The board of directors is authorized to issue revenue bonds … to be payable from and secured by liens on and pledges of all or any part of the revenues and income of every nature derived by the hospital district from the operation and/or ownership of its facilities (exclusive of ad valorem taxes). The board of directors shall be authorized to pledge to the payment of said bonds all or any part of any grant, donation, or income received or to be received from the United States Government or any other public or private source, whether pursuant to an agreement or otherwise. Said bonds may be additionally secured by mortgages and deeds of trust on any real property on which any hospital facilities of the hospital district are or will be located and any real or personal property incident or appurtenant to said facilities, and the board of directors may authorize the execution and delivery of trust indentures, mortgages, deeds of trust, or other forms of encumbrances to evidence same. …
Revised Law
Sec. 1061.206. USE OF REVENUE BOND PROCEEDS. (a) If permitted in the bond order, any required part of the proceeds from the sale of the revenue bonds may be used to:
(1) pay interest on the bonds during the period of the construction of a hospital facility to be provided through the issuance of the bonds;
(2) pay operation and maintenance expenses of the facility to the extent and for the time specified in the bond order; and
(3) create reserves for the payment of the principal of and interest on the bonds.
(b) The bond proceeds may be invested until needed to the extent and in the manner provided by the bond order. (Acts 65th Leg., R.S., Ch. 112, Sec. 10 (part).)
Source Law
Sec. 10. … If so permitted in the bond order, any required part of the proceeds from the sale of the bonds may be used for paying interest thereon during the period of the construction of any hospital facilities to be provided through the issuance of said bonds and for the payment of operation and maintenance expenses of said facilities to the extent and for the period of time specified in said bond order and also for the creation of reserves for the payment of the principal of and interest on the bonds; such money may be invested, until needed, to the extent and in the manner provided in said bond order. …
Revisor's Note
(1) Section 10, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that the bonds and interest coupons are negotiable instruments that shall be executed. The revised law omits the reference to "negotiable instruments" because it duplicates Section 1201.041, Government Code, which provides that all public securities are negotiable instruments. Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code. The revised law omits the reference to "interest coupons" because the coupons are issued as part of the bonds. The reference to the requirement that the bonds be "executed" is omitted because bonds issued are executed. The omitted law reads:
Sec. 10. … Said bonds and any interest coupons appertaining thereto shall be negotiable instruments … and shall be executed and … .
(2) Section 10, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that district bonds may be issued registrable as to principal or both principal and interest. The revised law omits the provision because it duplicates Section 1201.024, Government Code. That section applies to district bonds by application of Section 1201.002, Government Code. The omitted law reads:
Sec. 10. … (provided that such bonds may be issued registrable as to principal alone or as to both principal and interest) … .
(3) Sections 9(d) and 10, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provide that district bonds may be redeemable before maturity. Section 9(d) also provides that the bonds "shall be executed." The revised law omits the requirement that the bonds be "executed" for the reason stated in Revisor's Note (1). The revised law omits the provisions stating that the bonds may be redeemable before maturity because Section 1201.021, Government Code, provides that a public security may be redeemed before maturity. That section applies to district bonds by the application of Section 1201.002, Government Code. The omitted law reads:
[Sec. 9]
(d) Bonds of the district shall be executed and may be made redeemable prior to maturity and … .
Sec. 10. … [Said bonds] … may be made redeemable prior to maturity and … .
(4) Sections 9(d) and 10, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provide the manner and form in which and terms under which district bonds may be issued and sold as provided by the board in the orders authorizing the bond issuance. The revised law omits the provisions because the provisions duplicate or are superseded by provisions of general law. Sections 1201.005 and 1201.024, Government Code, provide that an issuer, including a hospital district, may specify the form of a bond it issues. Section 1201.021, Government Code, provides that the governing body of an issuer may issue bonds in any denomination. Sections 1201.005 and 1201.022, Government Code, provide that a governmental entity may specify the terms under which a bond is issued. "Conditions" and "details" are included in the meaning of "terms." Section 1204.006(b), Government Code, provides that an issuer, including a hospital district, may sell public securities at any price and bearing interest at any rate or rates. The omitted law reads:
[Sec. 9]
(d) [Bonds of the district] … may be issued in such form, denomination, and manner and may be sold at such price and under such terms and with such interest rates as shall be determined and provided by the board of directors in the order authorizing the issuance of such bonds. …
Sec. 10. … [Said bonds] … may be issued in such form, denominations, and manner and under such terms, conditions, and details, and may be sold in such manner, at such price, and under such terms, and said bonds shall bear interest at any rate or rates, all as shall be determined and provided by the board of directors in the order authorizing the issuance of said bonds… .
Revised Law
Sec. 1061.207. CHARGE FOR OCCUPANCY OR USE OF HOSPITAL FACILITY. The board may establish and collect charges for the occupancy or use of a hospital facility and for related services in the amounts and manner determined by the board. The charges shall be set and collected in amounts at least sufficient with any other pledged resources to pay:
(1) the principal of, interest on, and any other amounts required in relation to bonds issued by the district; and
(2) to the extent required by the bond order, all or any part of the operation, maintenance, and other expenses of the hospital facility. (Acts 65th Leg., R.S., Ch. 112, Sec. 10 (part).)
Source Law
Sec. 10. … The board of directors of the district shall be authorized to fix and collect charges for the occupancy or use of any of said hospital facilities and the services thereof in such amounts and in such manner as may be determined by such board of directors, and such charges shall be fixed and collected in such amounts as will be at least sufficient, together with any other pledged resources, to provide for all payments of principal, interest, and any other amounts required in connection with said bonds, and, to the extent required by the bond order, to provide for payment of all or any part of the operation, maintenance, and other expenses of the hospital facilities. …
Revised Law
Sec. 1061.208. REFUNDING BONDS. (a) The board may, without an election, issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.
(b) Refunding bonds may be:
(1) sold, with the proceeds of the refunding bonds applied to the payment of the outstanding indebtedness; or
(2) exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness. (Acts 65th Leg., R.S., Ch. 112, Secs. 9(a) (part), (c) (part), 10 (part).)
Source Law
(a) … [No tax bonds shall be issued by the hospital district] except refunding bonds [until authorized by a majority of the electors of the district voting at an election called for that purpose.] …
(c) The board may issue refunding bonds of the district for the purpose of refunding and paying off any outstanding indebtedness issued or assumed. The refunding bonds may be sold and the proceeds applied to the payment of outstanding indebtedness or may be exchanged in whole or in part for not less than a like principal amount of outstanding indebtedness; … .
Sec. 10. … Any revenue bonds issued by the board of directors under this Act and any revenue bonds issued by any such board of directors under any other statute and payable from revenues from any hospital facilities may be refunded or otherwise refinanced by such board of directors, and in such case all pertinent and appropriate provisions of this Act shall be fully applicable to such refunding bonds.
Revisor's Note
(1) Section 9(c), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides in part that refunding bonds must bear interest at the same or a lower rate than the rate of the debt refunded unless a savings is shown. The revised law omits that provision because it has been superseded by the enactment of the maximum interest rate provision found in Section 1204.006, Government Code. That section reflects the 1981 amendment of Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes, now Chapter 1204, Government Code), by Section 1, Chapter 61, Acts of the 67th Legislature, Regular Session, 1981, and permits a public agency, including a hospital district, to issue public securities at any net effective interest rate of 15 percent or less. Section 1204.006, Government Code, applies to district bonds by application of Section 1204.001, Government Code. The omitted law reads:
(c) … provided that, if refunding bonds are to be exchanged for a like amount of the outstanding indebtedness, the refunding bonds shall bear interest at the same or lower rate than borne by the debt refunded, unless it is shown mathematically that a saving will result in the total amount of interest to be paid on the refunding bonds. …
(2) Section 9(c), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that refunding bonds sold to pay outstanding indebtedness shall be issued and sold "under such terms and conditions as deemed advisable by the board of directors." The revised law omits the provision because it duplicates Section 1207.024, Government Code, which provides that a governmental entity may specify the terms under which a refunding bond is issued. "Conditions" are included in the meaning of "terms." The omitted law reads:
(c) … If refunding bonds are to be sold and the proceeds thereof applied to the payment of any such outstanding indebtedness, they shall be issued and sold under such terms and conditions as deemed advisable by the board of directors.
(3) Section 10, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides procedures applicable to issuing refunding bonds for revenue bonds. The revised law omits the provision because it duplicates Section 1207.004, Government Code. Section 1207.004, Government Code, applies to district refunding bonds by application of Section 1207.001, Government Code. The omitted law reads:
Sec. 10. … In refunding or otherwise refinancing any such bonds, the board of directors may in the same authorization proceedings refund or refinance bonds issued pursuant to this Act and bonds issued pursuant to any other such Texas statute and may combine all said refunding bonds and any other additional new bonds to be issued pursuant thereto into one or more issues or series of bonds, and may provide for the subsequent issuance of additional parity bonds, or subordinate lien bonds, or other types of bonds. All refunding bonds shall be issued and delivered under such terms and conditions as may be set forth in the authorizing proceedings. …
Revised Law
Sec. 1061.209. BONDS EXEMPT FROM TAXATION. The following are exempt from taxation by this state or a political subdivision:
(1) bonds issued or assumed by the district;
(2) the transfer and issuance of the bonds; and
(3) profits made in the sale of the bonds. (Acts 65th Leg., R.S., Ch. 112, Sec. 23 (part).)
Source Law
Sec. 23. … [the district] … any bonds issued or assumed by it, their transfer and issuance, and any profits made in the sale of them are at all times free from taxation by the state or any municipality or political subdivision.
Revisor's Note
Section 23, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, refers to a "municipality or political subdivision." The revised law omits "municipality" for the reason stated in Revisor's Note (2) to Section 1061.102.
Revisor's Note
(End of Subchapter)
(1) Sections 9(d) and 10, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provide that district bonds must be submitted to and approved by the attorney general and provide for registration of the bonds by the comptroller. Sections 9(d) and 10 also provide that after approval and registration the bonds are "incontestable." The revised law omits those provisions as superseded by Chapter 1202, Government Code (enacted as Article 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987). Section 1202.003(a), Government Code, requires bonds to be submitted to the attorney general. Section 1202.003(b), Government Code, provides for approval of the bonds by the attorney general and requires the attorney general to submit the approved bonds to the comptroller for registration. Section 1202.005, Government Code, requires registration of the bonds by the comptroller. Section 1202.006, Government Code, provides that after approval and registration the bonds are incontestable and binding obligations. Chapter 1202, Government Code, applies to district bonds by application of Section 1202.001, Government Code. The omitted law reads:
[Sec. 9]
(d) … The bonds and the appropriate proceedings authorizing their issuance shall be submitted to the Attorney General of the State of Texas for examination. If he finds that such bonds have been authorized in accordance with law, he shall approve them, and thereupon they shall be registered by the Comptroller of Public Accounts of the State of Texas, and after such approval and registration such bond shall be incontestable in any court or other forum for any reason and shall be valid and binding obligations in accordance with their terms for all purposes.
Sec. 10. … The revenue bonds and the appropriate proceedings authorizing their issuance shall be submitted to the Attorney General of the State of Texas for examination. If he finds that such bonds have been authorized in accordance with law, he shall approve them and thereupon shall be registered by the Comptroller of Public Accounts of the State of Texas, and after such approval and registration such bonds shall be incontestable in any court or other forum, and for any reason, and shall be valid and binding obligations in accordance with their terms for all purposes.
(2) Section 15, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that district bonds are legal and authorized investments for certain entities. The revised law omits the provision as unnecessary. As to several of the entities listed, Section 15 has been superseded and impliedly repealed. Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)). Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)). Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)). Investments in securities by savings and loan associations are regulated by Sections 63.002 and 64.001, Finance Code. As to the remaining entities listed, Section 15 is superseded by Section 1201.041, Government Code (enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes)). Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code. The revised law omits the reference to sinking funds of this state because it has been superseded by Section 404.024, Government Code (enacted in 1985 as Section 2.014, Treasury Act (Article 4393-1, Vernon's Texas Civil Statutes)), which governs the investment of state funds. Section 404.024(b)(10), Government Code, authorizes the investment of state funds in obligations of political subdivisions, including hospital districts. The omitted law reads:
Sec. 15. All bonds issued and assumed by the district are legal and authorized investments of banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, trustees, and sinking funds of cities, towns, villages, counties, school districts, or other political subdivisions of the state, and for all public funds of the state or its agencies including the state Permanent School Fund. …
(3) Section 15, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, 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. 15. … Such bonds and indebtedness are eligible to secure deposit of public funds of the state, cities, towns, villages, counties, school districts, or other political subdivisions or corporations of the state and are lawful and sufficient security for deposits to the extent of their value when accompanied by all their unmatured coupons.
[Sections 1061.210-1061.250 reserved for expansion]
SUBCHAPTER F. TAXES
Revised Law
Sec. 1061.251. IMPOSITION OF AD VALOREM TAX. (a) The board shall impose a tax on all property in the district subject to district taxation.
(b) The board shall impose the tax to:
(1) pay the indebtedness issued or assumed by the district;
(2) provide for the operation and maintenance of the district and hospital system;
(3) make improvements and additions to the hospital system; and
(4) acquire necessary sites for the improvements and additions by purchase, lease, or condemnation.
(c) The board may not impose a tax to pay the principal of or interest on revenue bonds. (Acts 65th Leg., R.S., Ch. 112, Secs. 4(b) (part), 10 (part), 14(a) (part).)
Source Law
[Sec. 4]
(b) … [annual taxes] … on all taxable property situated within the district, subject to hospital district taxation, … .
Sec. 10. … To the extent that such excess revenues and income are not available at any time to make payment of all operation and maintenance expenses of the district, ad valorem taxes of the district shall be used to make such payment, and … .
Sec. 14. (a) The board of directors shall annually levy a tax … for the purpose of:
(1) paying the indebtedness issued or assumed by the hospital district, but no tax may be levied to pay principal or interest on revenue bonds;
(2) providing for the operation and maintenance of the hospital district and hospital system; and
(3) making further improvements and additions to the hospital system and acquiring necessary sites for them by purchase, lease, or condemnation.
Revised Law
Sec. 1061.252. TAX RATE. (a) The board may impose the tax at a rate not to exceed 75 cents on each $100 valuation of taxable property in the district.
(b) In setting the tax rate, the board shall consider the income of the district from sources other than taxation. (Acts 65th Leg., R.S., Ch. 112, Secs. 4(b) (part), 14(a) (part), (b) (part).)
Source Law
[Sec. 4]
(b) [At the election there shall be submitted to the electors of the area of the proposed district the proposition of whether the hospital district shall be created with authority to have transferred to it the existing hospital property, equipment, and facilities of Midland Memorial Hospital which are owned by Midland Memorial Foundation and to levy annual taxes] at a rate not to exceed 75¢ on the $100 valuation on all taxable property situated within the district, subject to hospital district taxation, … .
Sec. 14. (a) [The board of directors shall annually levy a tax] not to exceed the amount permitted by this Act … .
(b) In setting the tax rate, the board shall take into consideration the income of the district from sources other than taxation. …
Revisor's Note
Section 14(b), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, requires the board to levy the tax and to certify the tax rate to the 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:
(b) … On determination of the amount of tax required to be levied, the board shall make the levy and certify it to the tax assessor-collector.
Revised Law
Sec. 1061.253. USE OF AD VALOREM TAXES FOR OPERATION AND MAINTENANCE EXPENSES. (a) If the board issues revenue bonds under Section 1061.204, the board:
(1) shall use ad valorem taxes to pay the district's operation and maintenance expenses to the extent that the revenue and income from the district's hospital facilities are not sufficient after providing for the payment of those bonds; and
(2) may pledge the proceeds of the ad valorem tax for the payment of the district's operation and maintenance expenses in the order authorizing the issuance of the bonds.
(b) If the ad valorem tax is pledged, the board shall, during each year during which the revenue bonds are outstanding, compute a tax rate sufficient to pay the operation and maintenance expenses described by Subsection (a)(1).
(c) The ad valorem tax shall be imposed on all taxable property in the district for each year the revenue bonds are outstanding. The tax shall be assessed and collected each year and used for the purpose prescribed by this section to the extent required. (Acts 65th Leg., R.S., Ch. 112, Sec. 10 (part).)
Source Law
Sec. 10. [The board of directors is authorized to issue revenue bonds … . In preparing the budget, the board of directors may take into consideration the estimated excess revenues and income from hospital facilities that will be available for paying operation and maintenance expenses after providing with said bonds. To the extent that such excess revenues and income are not available at any time to make payment of all operation and maintenance expenses of the district, ad valorem taxes of the district shall be used to make such payment, and] the proceeds of an annual ad valorem tax may be pledged for such payment in the order authorizing the issuance of said bonds. If such annual ad valorem tax is thus pledged, it shall be the duty of the board of directors during each year while any of said bonds are outstanding to compute and ascertain a rate and amount of ad valorem tax which will be sufficient to raise and produce the money required to make the aforesaid payment of operation and maintenance expenses to the extent required; … . Said rate and amount of ad valorem tax shall be levied and ordered to be levied against all taxable property in the district, for each year while any of said bonds are outstanding; said tax shall be assessed and collected each such year and used for such purpose to the extent so required. Said rate and amount of ad valorem tax shall be levied and ordered to be levied against all taxable property within the district subject to district taxation for each year while any of said bonds are outstanding; said tax shall be assessed and collected each such year and used for such purposes to the extent so required. …
Revisor's Note
Section 10, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, prescribes the method for computing the tax rate. The revised law omits the 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. Chapter 26, Tax Code, provides the exclusive procedure for setting the ad valorem tax rate by a taxing unit, including a hospital district. The omitted law reads:
Sec. 10. … [ad valorem tax] … said tax shall be based on the latest approved tax rolls of the district, with full allowance being made for tax delinquencies and the cost of tax collection… .
Revised Law
Sec. 1061.254. ASSESSMENT AND COLLECTION BY COUNTY TAX ASSESSOR-COLLECTOR. (a) This section applies unless the board by majority vote elects to have taxes assessed and collected under Section 1061.255 or 1061.256.
(b) The tax assessor-collector of Midland County shall assess and collect taxes imposed by the district. (Acts 65th Leg., R.S., Ch. 112, Secs. 17(a) (part), (b) (part).)
Source Law
(a) … [All taxes of the district shall be assessed and collected … as provided in Subsection (b) of this section] unless the directors, by majority vote, elect to have taxes assessed and collected by the district's own tax assessor-collector under Subsection (c) of this section, or by any city, taxing district, or other governmental subdivision under Subsection (d) of this section. …
(b) Under this subsection, … . The tax assessor-collector of the county in which the district is situated is required to accomplish the assessment and collection of all taxes levied by and on behalf of the district. …
Revisor's Note
(1) Sections 17(a) and (b), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, refer to the assessment and collection of district taxes on county tax values. The revised law omits those provisions because they were repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979. See the revisor's note to Section 1061.253. Title 1, Tax Code, provides the exclusive procedures for the appraisal of property for taxation by a taxing unit, including a hospital district. The omitted law reads:
(a) … All taxes of the district shall be assessed and collected on county tax values as provided in Subsection (b) of this section … .
(b) … the district's 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 17(b), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, 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 the revisor's note to Section 1061.253. 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:
(b) … The assessor-collector of taxes shall charge and deduct from payments to the hospital district an amount as fees for assessing and collecting the taxes, which shall be agreed upon between the parties. The fees shall be deposited in the officers' salary fund of the county and reported as fees of office of the county tax assessor-collector. …
(3) Section 17(b), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, 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 the revisor's note to Section 1061.253. 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:
(b) … 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 17(b), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, 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:
(b) … 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 17(b), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, 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:
(b) … The bond of the county tax assessor-collector shall stand as security for the proper performance of his duties as assessor-collector of the district, or, if in the judgment of the board of directors it is necessary, additional bond payable to the district may be required. …
(6) Section 17(b), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, 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:
(b) … In all matters pertaining to the assessment, collection, and enforcement of taxes for the district, the county tax assessor-collector is authorized to act in all respects according to the laws of the state relating to state and county taxes.
Revised Law
Sec. 1061.255. ASSESSMENT AND COLLECTION BY DISTRICT TAX ASSESSOR-COLLECTOR. (a) The board may elect to have district taxes assessed and collected by a tax assessor-collector appointed by the board. An election under this subsection must be made by December 1 and governs the manner in which taxes are assessed and collected, until changed by a similar resolution.
(b) The district tax assessor-collector must:
(1) reside in the district; and
(2) own real property subject to district taxation.
(c) The board shall set for the district tax assessor-collector:
(1) the term of employment; and
(2) compensation. (Acts 65th Leg., R.S., Ch. 112, Secs. 17(a) (part), (c) (part).)
Source Law
(a) … [All taxes of the district shall be assessed and collected … as provided in Subsection (b) of this section] unless the directors … elect to have taxes assessed and collected by the district's own tax assessor-collector … . Any such selection may be made prior to December 1 annually and shall govern the manner in which taxes are assessed and collected until changed by a similar resolution.
(c) Under this subsection, taxes shall be assessed and collected by a tax assessor-collector appointed by the directors, who shall also fix the terms of his employment, compensation, and … . the tax assessor-collector shall be residents of the district and own real property subject to hospital district taxation, and … .
Revisor's Note
(1) Section 17(c), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, requires the directors to set a bond amount of not less than $5,000 as security for the district tax assessor-collector. The revised law omits the provision because it was repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979. See the revisor's note to Section 1061.253. Section 6.29(a), Tax Code, authorizes the governing body of a taxing unit, including a hospital district, to require the unit's tax assessor-collector to post bond without limiting the amount. The omitted law reads:
(c) … [directors, who shall also fix the] … requirement for bond to assure the faithful performance of his duties, but in no event may the bond be for less than $5,000… .
(2) Section 17(c), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, states that the directors shall appoint a board of equalization and establishes the duties of that board and the tax assessor-collector. The revised law omits the reference to a board of equalization because boards of equalization were abolished and their functions and duties transferred to appraisal review boards by the 1979 enactment of the Property Tax Code, Title 1, Tax Code (Section 1, Chapter 841, Acts of the 66th Legislature, Regular Session, 1979). The provisions relating to the duties of the tax assessor-collector are omitted because the Tax Code specifies the duties of a tax assessor-collector. The omitted law reads:
(c) … The directors shall also annually appoint five persons to serve as a board of equalization and shall fix their compensation. Each member of the board and … [shall be residents of the district and own real property subject to hospital district taxation, and] each shall have the same duties, including the obligation to execute the oath of office, as required of county officials exercising those powers and duties… .
(3) Section 17(c), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, refers to the applicability of Title 122 of the Revised Statutes (Taxation). Before its repeal and recodification, Title 122 was composed of V.A.C.S. Articles 7041-7359a. The relevant parts of those provisions were revised in 1979 as the Property Tax Code, Title 1, Tax Code (Section 1, Chapter 841, Acts of the 66th Legislature, Regular Session, 1979). The revised law omits the provision because Title 1 applies to the district on its own terms. The omitted law reads:
(c) … Except as provided in this Act to the contrary, Title 122, Revised Civil Statutes of Texas, 1925, as amended, applies to the district.
Revised Law
Sec. 1061.256. ASSESSMENT AND COLLECTION BY TAX ASSESSOR-COLLECTOR OF ANOTHER POLITICAL SUBDIVISION. (a) The board may elect to have all or part of the district's taxes assessed and collected by a political subdivision in which any part of the district is located. An election under this subsection must be made by December 1 and governs the manner in which taxes are assessed and collected, until changed by a similar resolution.
(b) The tax assessor or collector of the political subdivision shall assess or collect the appropriate district taxes in accordance with the board's election under Subsection (a) and for the compensation agreed on by the appropriate parties. (Acts 65th Leg., R.S., Ch. 112, Secs. 17(a) (part), (d) (part).)
Source Law
(a) … [All taxes of the district shall be assessed and collected on county tax values as provided in Subsection (b) of this section] unless the directors, … elect to have taxes assessed and collected [by the district's own tax assessor-collector under Subsection (c) of this section, or] by any city, taxing district, or other governmental subdivision under Subsection (d) of this section. Any such selection may be made prior to December 1 annually and shall govern the manner in which taxes are assessed and collected until changed by a similar resolution.
(d) Under this subsection, taxes shall be assessed, equalized, and/or its taxes collected, in whole or in part, by the tax assessors, board of equalization, and/or tax collectors, respectively, of any city, taxing district, or other governmental subdivision in which all or any part of the district is located; … for such compensation as shall be agreed upon between the appropriate parties, and … .
Revisor's Note
(1) Section 17(d), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that the district may elect to have taxes assessed and collected by any "city, taxing district, or other governmental subdivision." The revised law substitutes for the quoted language "political subdivision" because every city or taxing district is a governmental subdivision, and "political subdivision" is the term more commonly used to refer to a governmental subdivision.
(2) Section 17(d), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, prescribes the manner in which property is appraised, property values are equalized, and district taxes are assessed and collected by a governmental subdivision the district elects to have perform those duties. The revised law omits those provisions because they were repealed by Section 6(b), Chapter 841, Acts of the 66th Legislature, Regular Session, 1979. See the revisor's note to Section 1061.253 and Revisor's Note (2) to Section 1061.255. The omitted law reads:
(d) … such property may be assessed and the value thereof equalized on the same basis or a different basis than that used by any such governmental subdivision. Such property shall be assessed, the values thereof equalized, and such taxes collected in the manner and … [agreed upon] … . The ad valorem tax law applicable to each such governmental subdivision shall apply to its officials in carrying out such functions for the district.
(3) Section 17(d), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that the duties assumed by the officials of a political subdivision related to the collection and assessment of district taxes are additional duties. The revised law omits the provision because it is superseded by Section 6.23(b), Tax Code, which provides the duties of a tax assessor or collector assessing or collecting taxes for another taxing unit. The omitted law reads:
(d) … the functions thus assumed by the officials of any such governmental subdivision shall be additional duties pertaining to their offices, respectively… .
Revisor's Note
(End of Subchapter)
Section 17(a), Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, 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. 17. (a) The directors shall have the authority to levy taxes for the entire year in which the district is established. …
Revisor's Note
(End of Chapter)
(1) Sections 3(b) and 21, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provide for the transfer of certain land, buildings, improvements, equipment, funds, and taxes to the district after the district is created. The revised law omits the provisions as executed. The omitted law reads:
[Sec. 3]
(b) The district authorized to be created shall, on approval of the qualified electors, have transferred to it the title to all land, buildings, improvements, equipment, and other property in any way pertaining to the hospital facilities and system owned by Midland Memorial Foundation. … Upon the transfer under this section, the district shall pay a purchase price to the Midland Memorial Foundation which would permit the retirement of any outstanding indebtedness of the Midland Memorial Foundation which is secured by a lien against the hospital.
Sec. 21. … When the district is established, the county and all towns and cities located in the district shall convey and transfer to the district title to all lands, buildings, improvements, and equipment pertaining to a hospital or hospital system jointly or separately owned by the county or any city or town within the district. Operating funds and reserves for operating expenses which are on hand and funds which have been budgeted for hospital purposes by the county or any city or town in the district for the remainder of the fiscal year in which the district is established shall likewise be transferred to the district, as shall taxes levied for hospital purposes for the current year, and all sinking funds established for payment of indebtedness assumed by the district.
(2) Section 24, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, 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. 24. … If any provision of this Act is invalid, this fact shall not affect the authorization for the creation of the district or the validity of any other provisions of this Act, and the legislature hereby declares that it would have created the district and enacted the valid provisions of this Act notwithstanding the invalidity of any other provision, and it is intended that this Act shall be severable and shall be construed and applied as if any such invalid or unconstitutional section, provision, clause, or word had not been included herein.
(3) Section 25, Chapter 112, Acts of the 65th Legislature, Regular Session, 1977, provides that public notice of enactment of the statutes was provided in a manner that satisfies the requirements of the Texas Constitution. The revised law omits that provision as executed. The omitted law reads:
Sec. 25. Proof of publication of the notice required in the enactment of this Act under the provisions of Article IX, Section 9 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 the notice is found sufficient to satisfy this requirement.
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