TLC: Special District Local Laws Code Proposed Chapters

81C33(2) MSE

CHAPTER 1035. DEWITT MEDICAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1035.001. DEFINITIONS ............................... 3

Sec. 1035.002. AUTHORITY FOR CREATION .................... 3

Sec. 1035.003. POLITICAL SUBDIVISION ..................... 4

Sec. 1035.004. DISTRICT TERRITORY ........................ 4

Sec. 1035.005. CORRECTION OF INVALID PROCEDURES .......... 6

Sec. 1035.006. DISTRICT SUPPORT AND MAINTENANCE NOT

STATE OBLIGATION ........................ 6

[Sections 1035.007-1035.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1035.051. BOARD ELECTION; TERM ...................... 8

Sec. 1035.052. NOTICE OF ELECTION ........................ 10

Sec. 1035.053. QUALIFICATIONS FOR OFFICE ................. 10

Sec. 1035.054. BOND; RECORD OF BOND AND OATH OR

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

Sec. 1035.055. BOARD VACANCY ............................. 12

Sec. 1035.056. OFFICERS .................................. 13

Sec. 1035.057. COMPENSATION; EXPENSES .................... 13

Sec. 1035.058. VOTING REQUIREMENT ........................ 13

Sec. 1035.059. DISTRICT ADMINISTRATOR .................... 14

Sec. 1035.060. GENERAL DUTIES OF DISTRICT

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

Sec. 1035.061. RECRUITMENT OF MEDICAL STAFF AND

EMPLOYEES ............................... 15

Sec. 1035.062. CONTINUING EDUCATION; RETRAINING .......... 15

Sec. 1035.063. DOCTORS AND OTHER EMPLOYEES ............... 16

[Sections 1035.064-1035.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1035.101. DISTRICT RESPONSIBILITY ................... 16

Sec. 1035.102. RESTRICTION ON POLITICAL SUBDIVISION

TAXATION AND DEBT ....................... 17

Sec. 1035.103. MANAGEMENT AND CONTROL .................... 18

Sec. 1035.104. HOSPITAL SYSTEM ........................... 19

Sec. 1035.105. PROVISION OF CERTAIN HEALTH SERVICES ...... 20

Sec. 1035.106. EMINENT DOMAIN ............................ 20

Sec. 1035.107. GIFTS AND ENDOWMENTS ...................... 23

Sec. 1035.108. CONTRACT WITH NIXON HOSPITAL DISTRICT ..... 23

Sec. 1035.109. PAYMENT FOR TREATMENT; PROCEDURES ......... 24

Sec. 1035.110. REIMBURSEMENT FOR SERVICES ................ 26

Sec. 1035.111. AUTHORITY TO SUE AND BE SUED .............. 27

[Sections 1035.112-1035.150 reserved for expansion]

SUBCHAPTER D. CHANGE IN BOUNDARIES

Sec. 1035.151. EXPANSION OF TERRITORY; BOARD ORDER ....... 28

Sec. 1035.152. ANNEXATION OF TERRITORY; PETITION ......... 29

Sec. 1035.153. APPROVAL OR DENIAL OF ANNEXATION

PETITION ................................ 30

Sec. 1035.154. ELECTION ORDER ............................ 30

Sec. 1035.155. ELECTION DATE ............................. 31

Sec. 1035.156. NOTICE OF ELECTION ........................ 32

Sec. 1035.157. BALLOT .................................... 33

Sec. 1035.158. ELECTION RESULTS .......................... 33

[Sections 1035.159-1035.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 1035.201. DEPOSITORY ................................ 34

Sec. 1035.202. AUTHORITY TO BORROW MONEY; SECURITY ....... 35

[Sections 1035.203-1035.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec. 1035.251. GENERAL OBLIGATION BONDS .................. 36

Sec. 1035.252. TAX TO PAY GENERAL OBLIGATION BONDS ....... 36

Sec. 1035.253. GENERAL OBLIGATION BOND ELECTION .......... 37

Sec. 1035.254. EXECUTION OF BONDS ........................ 38

Sec. 1035.255. INVESTMENT OF BOND PROCEEDS ............... 39

Sec. 1035.256. REVENUE BONDS ............................. 39

[Sections 1035.257-1035.300 reserved for expansion]

SUBCHAPTER G. TAXES

Sec. 1035.301. IMPOSITION OF AD VALOREM TAX .............. 42

Sec. 1035.302. TAX RATE .................................. 43

Sec. 1035.303. TAX ASSESSOR-COLLECTOR .................... 43

CHAPTER 1035. DEWITT MEDICAL DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 1035.001. 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 DeWitt Medical District. (New.)

Revisor's Note

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

Revised Law

Sec. 1035.002. AUTHORITY FOR CREATION. The DeWitt Medical District is created under the authority of Section 9, Article IX, Texas Constitution. (Acts 59th Leg., R.S., Ch. 310, Secs. 1 (part), 1A(a).)

Source Law

Sec. 1. Pursuant to authority granted by the provisions of Section 9 of Article IX of the Constitution of the State of Texas, Cuero Hospital District of DeWitt County, Texas, is hereby authorized to be created in DeWitt County, Texas, and … .

Sec. 1A. (a) The name of the Cuero Hospital District of DeWitt County, Texas, is changed to the DeWitt Medical District.

Revisor's Note

(1) Section 1, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, refers to the "Cuero Hospital District of DeWitt County, Texas." The revised law substitutes "DeWitt Medical District" for the quoted language because under Section 1A(a), as added by Section 1, Chapter 1260, Acts of the 71st Legislature, Regular Session, 1989, the name of the district was changed to the DeWitt Medical District.

(2) Section 1A(b), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that a reference to the Cuero Hospital District in the act or in any other law means the DeWitt Medical District. The revised law omits that provision because all references to the district in the revised law mean the DeWitt Medical District and there are no other references in law to the former Cuero Hospital District. The omitted law reads:

(b) A reference in this Act or in any other law to the Cuero Hospital District of DeWitt County, Texas, means the DeWitt Medical District.

Revised Law

Sec. 1035.003. POLITICAL SUBDIVISION. The district is a political subdivision of this state. (Acts 59th Leg., R.S., Ch. 310, Sec. 15 (part).)

Source Law

Sec. 15. The hospital district created under this Act shall be and is declared to be a political subdivision of the State of Texas, and … .

Revised Law

Sec. 1035.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 1, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965.

(b) The boundaries and field notes of the district form a closure. A mistake in copying the field notes in the legislative process does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue a bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district. (New; Acts 59th Leg., R.S., Ch. 310, Sec. 1 (part).)

Source Law

Sec. 1. …

The Legislature hereby finds that the foregoing boundaries and field notes of said District form a closure, and, if any mistake is made in copying the field notes in the legislative process, such mistake shall not affect the organization, existence or validity of the District or its right to issue bonds or refunding bonds, and the right to assess, levy and collect taxes, or in any other manner affect the legality or operation of the District.

Revisor's Note

(1) The revision of the law governing the district does not revise the statutory language describing the territory of the district to avoid the lengthy recitation of the description. For the reader's convenience, the revised law includes a reference to the statutory description of the district's territory.

(2) Section 1, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that a mistake in the description of the district boundaries does not affect the right of the district to issue "bonds or refunding bonds." The revised law omits the reference to "refunding bonds" because refunding bonds are included in the meaning of "bonds."

(3) Section 1, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, refers to the district's right to "assess, levy and collect" taxes. The revised law substitutes "impose" for "assess, levy and collect" because "impose" is the term generally used in Title 1, Tax Code, and includes the assessment, levy, and collection of a tax.

Revised Law

Sec. 1035.005. CORRECTION OF INVALID PROCEDURES. If a court holds that any procedure under this chapter violates the constitution of this state or of the United States, the district by resolution may provide an alternative procedure that conforms with the constitution. (Acts 59th Leg., R.S., Ch. 310, Sec. 17 (part).)

Source Law

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

Revisor's Note

Section 17, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, 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 omits the reference to the Texas Constitution because the state cannot modify constitutional requirements by statute. The omitted law reads:

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

Revised Law

Sec. 1035.006. DISTRICT SUPPORT AND MAINTENANCE NOT STATE OBLIGATION. The support and maintenance of the district's hospital system may not become a charge against or obligation of this state. (Acts 59th Leg., R.S., Ch. 310, Sec. 8 (part).)

Source Law

Sec. 8. … It is provided specifically that the support and maintenance of the District's hospital system shall never become a charge against or obligation of the State of Texas.

Revisor's Note

(End of Subchapter)

Section 3 and parts of Sections 5 and 6, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provide procedures for holding an election on the creation of the district, the imposition of an ad valorem tax, and the submission of a bond proposal. Because the election creating the district has been held, the revised law omits the relevant law as executed. The omitted law reads:

Sec. 3. Such District shall not be created nor shall any tax therein be authorized unless and until such creation and such tax are approved by a majority of the qualified property taxpaying electors of the District voting at an election called for such purpose. Such election shall be initiated by a petition to the DeWitt County Commissioners Court signed by at least fifty (50) qualified property taxpaying electors residing within the boundaries of the proposed District. Within ten (10) days after the presentation of said petition to the Commissioners Court of DeWitt County, Texas, said Court shall order an election to be held within said District not less than thirty (30) days from the date said election is ordered. The order calling such election shall specify the date and place or places of holding same, the form of ballot and the presiding judge for each voting place. At such election there shall be submitted to the qualified property taxpaying electors of said proposed District the proposition of whether or not Cuero Hospital District of DeWitt County, Texas, shall be created with authority to levy annual taxes at a rate not to exceed seventy-five cents (75¢) on the One Hundred Dollar valuation of all taxable property within such District for the purpose of meeting the requirements of the District's bonds and its maintenance and operating expenses, and a majority of the qualified property taxpaying electors of the District voting in said election in favor of the proposition shall be sufficient for its adoption. The ballots of said election shall conform to the requirements of the Texas Election Code, as amended, and shall have printed thereon the following:

"FOR the creation of Cuero Hospital District of DeWitt County, Texas; providing for the levy of annual taxes at a rate not to exceed seventy-five cents (75¢) on the One Hundred Dollar valuation of all taxable property within such District"; and

"AGAINST the creation of Cuero Hospital District of DeWitt County, Texas; providing for the levy of annual taxes at a rate not to exceed seventy-five cents (75¢) on the One Hundred Dollar valuation of all taxable property within such District."

Notice of said election shall be given by publishing a substantial copy of the election order in a newspaper of general circulation in the area of the proposed District, once a week for two consecutive weeks, the first publication to appear at least fourteen (14) days prior to the date set for the election. The failure of any such election shall not operate to prohibit the calling and holding of subsequent elections for the same purpose.

Sec. 5. After such creation, tax levy, and first directors' election is held, the officials conducting same shall make due returns to the DeWitt County Commissioners Court which shall canvass the returns thereof. If a majority of the qualified property taxpaying electors voting at said election voted in favor of the proposition to create said District and levy said tax, said Court shall so find and declare said District established and created… .

Sec. 6. A bond election may also be held on the same day as said creation, tax levy and directors' election, and said petition mentioned in Section 3 hereof may also include a proposition on the issuance of bonds of said District. Such bond election may be called by a separate election order, or as a part of the order calling such election provided for in said Section 3. The provisions of Section 12 hereof shall apply to such bond election, except that such election shall be called by said DeWitt County Commissioners Court and the returns canvassed by said Court. If the bonds are authorized at said election, they shall then be issued by the Board of Directors, assuming that the proposition specified in Section 3 is favored by a majority vote. With the exception of bonds authorized by this Section 6, … .

[Sections 1035.007-1035.050 reserved for expansion]

SUBCHAPTER B. DISTRICT ADMINISTRATION

Revised Law

Sec. 1035.051. BOARD ELECTION; TERM. (a) The district is governed by a board of five directors elected from the district at large.

(b) Directors serve staggered three-year terms.

(c) An election shall be held each year on the May uniform election date under Section 41.001, Election Code, to elect the appropriate number of directors. (Acts 59th Leg., R.S., Ch. 310, Secs. 4(a), (c) (part).)

Source Law

Sec. 4. (a) The District is governed by a Board of five directors elected at large for staggered three-year terms.

(c) A regular election shall be held each year on the May uniform election date under Section 41.001, Election Code, and the appropriate number of successor directors shall be elected for three-year terms. …

Revisor's Note

(1) Section 4(c), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that the board shall order the election in accordance with Chapter 3, Election Code, which establishes procedures for ordering an election in this state. The revised law omits the provision because Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state. The omitted law reads:

(2) Section 5, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, prescribes the procedures for electing the initial directors. The revised law omits the provision as executed. The omitted law reads:

Sec. 5. … Such Court shall also determine the five persons receiving the highest number of votes for directors and shall declare those persons elected… .

(3) Section 4, Chapter 249, Acts of the 72nd Legislature, Regular Session, 1991, provides transition procedures for the election and terms of directors after the establishment of three-year terms. The revised law omits those provisions as executed. The omitted law reads:

Sec. 4. (a) The election of the board of directors scheduled before the effective date of this Act to be held in January 1992 shall be held, and the directors elected at that election shall draw lots to determine which director shall serve a two-year term and which director shall serve a three-year term.

(b) The election of the board of directors scheduled before the effective date of this Act to be held in January 1993 shall be held, and the directors elected at that election shall draw lots to determine which director shall serve a one-year term, which director shall serve a two-year term, and which director shall serve a three-year term.

Revised Law

Sec. 1035.052. NOTICE OF ELECTION. Notice of a directors' election shall be published in a newspaper of general circulation in the district in accordance with Section 4.003, Election Code. (Acts 59th Leg., R.S., Ch. 310, Sec. 4(c) (part).)

Source Law

(c) … Notice of the election shall be published in a newspaper of general circulation in the District in accordance with Section 4.003, Election Code.

Revised Law

Sec. 1035.053. QUALIFICATIONS FOR OFFICE. (a) To be qualified to serve as a director, a person must:

(1) reside in the district; and

(2) be at least 21 years of age.

(b) A person may not serve as a director if the person:

(1) is a district employee; or

(2) was a district employee at any time during the two years preceding the date of the election. (Acts 59th Leg., R.S., Ch. 310, Sec. 4(b).)

Source Law

(b) To be qualified to serve as a director of the District a person must be a resident of the District and at least twenty-one years of age. An employee of the District or a person who was employed by the District at any time during the two years preceding the date of the election may not serve as a director.

Revised Law

Sec. 1035.054. BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF OFFICE. (a) Each director shall qualify by executing a good and sufficient bond for $5,000 that is:

(1) approved by the board;

(2) payable to the district; and

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

(b) Each director's bond and constitutional oath or affirmation of office shall be kept in the district's permanent records. (Acts 59th Leg., R.S., Ch. 310, Sec. 5 (part).)

Source Law

Sec. 5. … Each member of the Board of Directors shall qualify by executing the constitutional oath of office and by making a good and sufficient bond, [to be approved by said Commissioners Court,] for $5,000 payable to said District and conditioned upon the faithful performance of his duties as such director, and such oaths and bonds shall be kept in the permanent records of said District. [Except for said first Board of Directors,] the bonds of said directors shall be approved by the District Board of Directors.

Revisor's Note

(1) Section 5, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, requires each director to qualify by executing 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. In addition, the revised law requires retention in the district's permanent records of the constitutional affirmation as well as the constitutional oath because Section 1, Article XVI, Texas Constitution, permits an officer in this state to take either the oath or the affirmation. The omitted law reads:

Sec. 5. … [Each member of the Board of Directors shall qualify] by executing the constitutional oath of office and … .

(2) Section 5, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, requires the bonds of the initial directors to be approved by the commissioners court. The revised law omits that provision as executed. The omitted law reads:

Sec. 5. … [shall qualify … by making a good and sufficient bond,] to be approved by said Commissioners Court, … . Except for said first Board of Directors, [the bonds of said directors shall be approved by the District Board of Directors.]

Revised Law

Sec. 1035.055. 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 three, the remaining directors shall immediately call a special election to fill the vacancies. If the remaining directors do not call the election, a district court, on application of a district voter or taxpayer, may order the directors to hold the election. (Acts 59th Leg., R.S., Ch. 310, Sec. 7(g).)

Source Law

(g) All vacancies in the office of director shall be filled for the unexpired term by appointment of the remainder of the Board. If the number of directors is reduced to less than three (3), the remaining directors shall immediately call a special election to fill the vacancies. Upon failure to do so, a District Court may, upon application of any voter or taxpayer of the District, issue a mandate requiring the directors to call and hold an election.

Revisor's Note

Section 7(g), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, refers to an order to "call and hold" an election. The revised law omits the reference to calling an election because, in this context, calling an election is included in the meaning of holding an election. Under Chapter 3, Election Code, all elections must be ordered (called) before they may be held.

Revised Law

Sec. 1035.056. OFFICERS. (a) At the board's first regular meeting following the annual election of the directors, the board shall elect a chair, vice chair, and secretary from among its members to serve for a term of one year.

(b) The board may create additional officer positions. (Acts 59th Leg., R.S., Ch. 310, Sec. 7(a).)

Source Law

Sec. 7. (a) At the first regular meeting of the Board of Directors following the annual election of the directors, the Board of Directors shall elect a chair, vice chair, and secretary from their number to serve for a term of one year. The Board may create additional officer positions.

Revised Law

Sec. 1035.057. COMPENSATION; EXPENSES. A director serves without compensation but may be reimbursed for actual expenses incurred in the performance of official duties on approval of the expenses by the board. (Acts 59th Leg., R.S., Ch. 310, Sec. 7(f).)

Source Law

(f) The Board of Directors of the District shall serve without compensation but may be reimbursed for actual expenses incurred by them in the performance of their official duties upon the approval of such expenses by the Board of Directors thereof.

Revised Law

Sec. 1035.058. VOTING REQUIREMENT. A concurrence of a majority of the directors is sufficient in any matter relating to district business. (Acts 59th Leg., R.S., Ch. 310, Sec. 7(b) (part).)

Source Law

(b) [A majority of the directors …] a concurrence of a majority shall be sufficient in all matters pertaining to the business of the District.

Revisor's Note

Section 7(b), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that a majority of directors constitutes a quorum. The revised law omits that provision because it duplicates Section 311.013, Government Code (Code Construction Act), which provides that a quorum of a public body is a majority of the number of members fixed by statute. The omitted law reads:

(b) A majority of the directors shall constitute a quorum, and … .

Revised Law

Sec. 1035.059. DISTRICT ADMINISTRATOR. (a) The board shall appoint a qualified person as district administrator.

(b) The district administrator serves at the will of the board and is entitled to the compensation determined by the board.

(c) The board shall require that before assuming the duties of district administrator the administrator must execute a bond in an amount set by the board of not less than $5,000 that is:

(1) payable to the district; and

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

(d) The board may pay for the bond with district money. (Acts 59th Leg., R.S., Ch. 310, Sec. 7(h) (part).)

Source Law

(h) The Board of Directors shall appoint a qualified person as District administrator. The administrator serves at the will of the Board and shall receive the compensation determined by the Board. The Board shall require that before assuming the duties as administrator, a person must execute a bond payable to the District in an amount set by the Board of not less than $5,000 that is conditioned on the performance of the administrator's duties. The Board may pay for the bond with District funds. …

Revised Law

Sec. 1035.060. 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 59th Leg., R.S., Ch. 310, Sec. 7(h) (part).)

Source Law

(h) … Subject to the limitations prescribed by the Board, the administrator shall supervise the work and activities of the District and direct the affairs of the District.

Revised Law

Sec. 1035.061. RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES. The board may spend district money to recruit physicians, nurses, or other trained medical personnel. The board may pay the tuition or other costs or expenses of a full-time medical or nursing student who:

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

(2) contractually agrees to become a district employee in return for that assistance. (Acts 59th Leg., R.S., Ch. 310, Secs. 16A(a), (b).)

Source Law

Sec. 16A. (a) The Board of Directors may spend District funds to recruit physicians, nurses, or other trained medical personnel.

(b) The Board may enter into contracts with full-time medical or nursing students enrolled and in good standing in accredited schools, colleges, or universities, as authorized by this section. The Board may agree to pay the student's tuition or other costs or expenses in consideration of the student's contractual agreement to serve as an employee of the District on terms set out in the contract.

Revisor's Note

Section 16A(b), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that a student who receives assistance from the district must become a district employee "on terms set out in the contract." The revised law omits the quoted language because the provisions of a contract between the board and a student apply by their own terms.

Revised Law

Sec. 1035.062. CONTINUING EDUCATION; RETRAINING. The board may spend district money for continuing education and retraining of employees. (Acts 59th Leg., R.S., Ch. 310, Sec. 16A(c).)

Source Law

Revised Law

Sec. 1035.063. DOCTORS AND OTHER EMPLOYEES. The board may contract with doctors or appoint doctors to the medical staff and may employ technicians, nurses, and other employees the board considers necessary for the efficient operation of the district. The board may delegate that authority to the district administrator. (Acts 59th Leg., R.S., Ch. 310, Sec. 7(i).)

Source Law

(i) The Board may contract with doctors or appoint doctors to the medical staff and may employ technicians, nurses, and other employees the Board considers necessary for the efficient operation of the District. The Board may delegate that authority to the District administrator.

Revisor's Note

(End of Subchapter)

Section 4(d), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that a person must file a ballot application with the board secretary to be a candidate for director in accordance with Chapter 144, Election Code. The revised law omits the provision because Chapter 144 applies to the district by its own terms under Section 1.002, Election Code. The omitted law reads:

(d) A person who wants to have the person's name printed on the ballot as a candidate for director must file an application with the secretary of the Board in accordance with Chapter 144, Election Code.

[Sections 1035.064-1035.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Revised Law

Sec. 1035.101. DISTRICT RESPONSIBILITY. The district has full responsibility for providing medical and hospital care for the district's needy inhabitants. (Acts 59th Leg., R.S., Ch. 310, Sec. 2 (part).)

Source Law

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

Revisor's Note

Section 2, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that the district "shall assume" full responsibility for providing medical and hospital care for the district's needy inhabitants. The revised law substitutes "has" for the quoted language because the duty to assume the responsibility is executed.

Revised Law

Sec. 1035.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND DEBT. A political subdivision in DeWitt County, 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 59th Leg., R.S., Ch. 310, Sec. 2 (part).)

Source Law

Sec. 2. … After establishment of such District, no other municipality or political subdivision in DeWitt County shall have the power to levy taxes or issue bonds or other obligations for hospital purposes or for providing medical care within the boundaries of the District.

Revisor's Note

(1) Section 2, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that "[a]fter establishment of such District" certain political subdivisions may not levy taxes or issue bonds or other obligations for hospital purposes or for providing medical care in the district. The revised law omits the quoted language as executed. In addition, throughout this chapter, the revised law substitutes "impose" for "levy" because, in this context, the terms are synonymous and the former is more commonly used.

(2) Section 2, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, refers to a "municipality or political subdivision." The revised law omits the reference to "municipality" because "municipality" is included in the meaning of "political subdivision."

Revised Law

Sec. 1035.103. MANAGEMENT AND CONTROL. (a) The board has all powers necessary, convenient, or incidental to carry out the purposes for which the district was created.

(b) The board has complete management and control of all district business, including the power to negotiate and contract with any person to purchase or lease land, to construct and equip a hospital system, to operate and maintain a hospital or hospitals, and to negotiate and contract with other political subdivisions of this state or with private individuals, associations, or corporations for those purposes as the board determines necessary or desirable. (Acts 59th Leg., R.S., Ch. 310, Secs. 7(c), (e).)

Source Law

(c) Not by way of limitation, the Board shall have the complete management and control of all the business of the District, including but not limited to the power and authority to negotiate and contract with any person or body, public or private, to purchase or lease land, to construct and equip a hospital system, and to operate and maintain a hospital or hospitals, and to negotiate and contract with other political subdivisions of the State or private individuals, associations or corporations for such purposes, all as may be determined to be necessary or desirable for the District by the Board.

(e) The Board shall have all powers necessary, convenient or incidental to carry out the purposes for which the District is created.

Revisor's Note

(1) Section 7(c), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that, "[n]ot by way of limitation," the board has the complete management and control of the district, including certain specific powers. Throughout this chapter, the revised law omits the quoted language because it is an accepted general principle of statutory construction that a grant of a power does not act as a limitation. The general principle applies to this revision.

(2) Section 7(c), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, refers to "including, but not limited to." The revised law omits "but not limited to" because Section 311.005(13), Government Code (Code Construction Act), provides that "includes" and "including" are terms of enlargement and not of limitation and do not create a presumption that components not expressed are excluded.

(3) Section 7(c), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that the board has the "power and authority" to take certain actions. The revised law omits "authority" because, in this context, "authority" is included in the meaning of "power."

(4) Section 7(c), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that the board may contract with "any person or body, public or private." The revised law omits "body, public or private," because under Section 311.005(2), Government Code (Code Construction Act), "person" includes a public or private body.

Revised Law

Sec. 1035.104. HOSPITAL SYSTEM. The district shall provide for:

(1) the establishment of a hospital or hospital system in the district to furnish medical and hospital care to district residents by:

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

(B) equipping the buildings and improvements for those purposes; and

(2) the administration of the hospital system for hospital purposes. (Acts 59th Leg., R.S., Ch. 310, Sec. 2 (part).)

Source Law

Sec. 2. The District hereby authorized to be created shall provide for the establishment of a hospital or hospital system within its boundaries to furnish medical and hospital care to persons residing in said District by the purchase, construction, acquisition, repair or renovation of buildings and improvements and the equipping of same and the administration thereof for hospital purposes… .

Revised Law

Sec. 1035.105. PROVISION OF CERTAIN HEALTH SERVICES. The district may provide:

(1) emergency medical services;

(2) home health care services;

(3) long-term health care services;

(4) assisted living services; or

(5) any other appropriate health care services the board determines are necessary to meet the district's needs. (Acts 59th Leg., R.S., Ch. 310, Sec. 7A.)

Source Law

Sec. 7A. The District may provide emergency medical services, home health care services, long-term health care services, assisted living services, or any other appropriate health care services the Board of Directors determines are necessary to meet the needs of the District.

Revised Law

Sec. 1035.106. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain to acquire a fee simple or other interest in any type of property, real, personal, or mixed, located in district territory, if the interest is necessary for the district to exercise a right, power, privilege, or function conferred on the district by this chapter.

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

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

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

(3) provide a bond for costs or a supersedeas bond on an appeal or petition for review. (Acts 59th Leg., R.S., Ch. 310, Sec. 11.)

Source Law

Sec. 11. Said District shall have the right and power of eminent domain for the purpose of acquiring by condemnation any and all property of any kind or character, real, personal or mixed, or any interest therein, including outright ownership of such property in fee simple absolute, within the boundaries of said District, necessary to the exercise of the rights, powers, privileges and functions conferred upon it by this Act in the manner provided by General Law with respect to condemnation; provided that said District shall not be required to make deposits in the registry of the trial court of the sum required by Paragraph 2, Article 3268, Revised Civil Statutes of Texas, 1925, as amended, or to make the bond required therein. In condemnation proceedings being prosecuted by said District, said District shall not be required to pay in advance or to give bond or other security for costs in the trial court, nor to give any bond otherwise required for the issuance of a temporary restraining order or a temporary injunction relating to a condemnation proceeding, nor to give bond for costs or for supersedeas on any appeal or writ of error proceeding to any Court of Civil Appeals, or to the Supreme Court.

Revisor's Note

(1) Section 11, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that the district has the "right and power of eminent domain for the purpose of acquiring [property] by condemnation." The revised law substitutes for the quoted language "may exercise the power of eminent domain to acquire [property]" because the phrases have the same meaning and the latter phrase is consistent with modern usage in laws relating to eminent domain.

(2) Section 11, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that the district must exercise the power of eminent domain in the manner provided by "General Law with respect to condemnation." The revised law substitutes for the quoted language a reference to Chapter 21, Property Code, because that is the general law governing eminent domain.

(3) Section 11, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, refers to "Paragraph 2, 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, the revised law omits the reference 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 11, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that the district is not required to provide bond on any appeal or "writ of error proceeding" to "any Court of Civil Appeals, or to the Supreme Court." The revised law substitutes "petition for review" for "writ of error" because, effective September 1, 1997, the Texas Supreme Court replaced the writ of error procedure with the petition for review procedure. See Rule 53.1, Texas Rules of Appellate Procedure. The revised law also omits the references to the court of civil appeals (now the court of appeals) and the supreme court. The revised law omits the references because the court of appeals and the supreme court are the only courts to which the district may appeal or with which the district may file a petition for review.

Revised Law

Sec. 1035.107. GIFTS AND ENDOWMENTS. The board may accept for the district a gift or endowment to be held in trust and administered by the board for the purposes and under the directions, limitations, or other provisions prescribed in writing by the donor that are not inconsistent with the proper management and objectives of the district. (Acts 59th Leg., R.S., Ch. 310, Sec. 16.)

Source Law

Sec. 16. Not by way of limitation, the Board of Directors of said District is authorized in its behalf to accept donations, gifts and endowments for the District to be held in trust and administered by the Board of Directors for such purposes and under such direction, limitations and provisions as may be prescribed in writing by donor, not inconsistent with proper management and objects of the District.

Revisor's Note

Section 16, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, 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. 1035.108. CONTRACT WITH NIXON HOSPITAL DISTRICT. The district, through the board, may contract with the Nixon Hospital District of Gonzales and Wilson Counties, Texas, for the district to lease, manage, or operate a health care facility located in the Nixon Hospital District. (Acts 59th Leg., R.S., Ch. 310, Sec. 7(d).)

Source Law

(d) The District, through the Board of Directors, may contract with the Nixon Hospital District of Gonzales and Wilson Counties, Texas, for the District to lease, manage, or operate a health care facility located in the Nixon Hospital District of Gonzales and Wilson Counties, Texas.

Revised Law

Sec. 1035.109. PAYMENT FOR TREATMENT; PROCEDURES. (a) Each year, the board may set criteria for determining residency, eligibility for service, and the type of services available.

(b) 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) a relative of the patient who is legally responsible for the patient's support.

(c) The district without charge shall provide to a patient who resides in the district the care and treatment that the patient or a relative of the patient who is legally responsible for the patient's support cannot pay.

(d) On determining that the patient or a relative legally responsible for the patient's support can pay for all or part of the care and treatment provided by the district, the district administrator shall report that determination to the board, and the board shall issue an order directing the patient or the relative to pay the district a specified amount each week. The amount must be based on the individual's ability to pay.

(e) The district administrator may collect money owed to the district from the patient's estate or from that of a relative legally responsible for the patient's support in the manner provided by law for collection of expenses of the last illness of a deceased person.

(f) If there is a dispute relating to an individual's ability to pay, the board shall:

(1) call witnesses;

(2) hear and resolve the question; and

(3) issue a final order.

(g) The final order of the board may be appealed to a district court in the county in which the district is located. The substantial evidence rule applies to the appeal. (Acts 59th Leg., R.S., Ch. 310, Secs. 13A(a), (b) (part), (c), (d), (e), (f).)

Source Law

Sec. 13A. (a) The District shall without charge supply to a patient residing in the District the care and treatment that the patient or a relative of the patient who is legally responsible for the patient's support cannot pay.

(b) … The Board annually may set criteria to determine residency, eligibility for services, and the type of services available.

(c) The administrator of the District may have an inquiry made into the financial circumstances of any patient residing in the District and admitted to a District facility and into the financial circumstances of a relative of the patient who is legally responsible for the patient's support.

(d) On finding that the patient or a relative of the patient legally responsible for the patient's support can pay for all or any part of the care and treatment provided by the District, the administrator shall report that finding to the Board, and the Board shall issue an order directing the patient or the relative to pay the District each week a specified amount that the individual is able to pay.

(e) The administrator may collect money owed to the District from the estate of the patient or from that of a relative who was legally responsible for the patient's support in the manner provided by law for collection of expenses in the last illness of a deceased person.

(f) If there is a dispute relating to an individual's ability to pay, the Board shall call witnesses, hear and resolve the question, and issue a final order. An appeal from a final order of the Board must be made to a district court in the county in which the District is located and the substantial evidence rule applies.

Revisor's Note

Section 13A(b), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, requires the district to adopt an application procedure for assistance eligibility. The revised law omits the provision because it duplicates Sections 61.053(a) and (b), Health and Safety Code, which apply to the district and detail the application procedure. The omitted law reads:

(b) Not later than the beginning of each operating year, the District shall adopt an application procedure to determine eligibility for assistance, as provided by Section 10.03, Indigent Health Care and Treatment Act (Article 4438f, Vernon's Texas Civil Statutes). …

Revised Law

Sec. 1035.110. REIMBURSEMENT FOR SERVICES. (a) The board shall require a county, municipality, or public hospital located outside the district to reimburse the district for the district's care and treatment of a sick or injured person of that county, municipality, or public hospital as provided by Chapter 61, Health and Safety Code.

(b) The board shall require the sheriff of DeWitt County or the police chief of any municipality in the district to reimburse the district for the district's care and treatment of a person who is confined in a jail facility of DeWitt County or the municipality and is not a district resident. A prisoner in the DeWitt County jail or in a penal or police facility located in the district is not considered a district resident unless the person would meet the qualifications for residency notwithstanding the incarceration, its duration, or the facts surrounding the incarceration.

(c) The board may contract with the state or federal government for that government to reimburse the district for treatment of a sick or injured person. (Acts 59th Leg., R.S., Ch. 310, Sec. 13B.)

Source Law

Sec. 13B. (a) The Board shall require reimbursement from a county, municipality, or public hospital located outside the boundaries of the District for the District's care and treatment of a sick, diseased, or injured person of that county, municipality, or public hospital as provided by the Indigent Health Care and Treatment Act (Article 4438f, Vernon's Texas Civil Statutes).

(b) The Board shall require reimbursement from the DeWitt County sheriff or the police chief of any municipality in the District for the District's care and treatment of a person confined in a jail facility of DeWitt County or that municipality who is not a resident of the District. A prisoner in the DeWitt County jail or in a penal or police facility located in the District is not considered a resident of the District unless the person would meet the qualifications for residency notwithstanding the incarceration, its duration, or the facts surrounding the incarceration.

(c) The Board may contract with the state or federal government for the state or federal government to reimburse the District for treatment of a sick, diseased, or injured person.

Revisor's Note

(1) Sections 13B(a) and (c), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, refer to a "sick, diseased, or injured person." The revised law omits the references to "diseased" because it is included in the meaning of "sick."

(2) Section 13B(a), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, refers to the Indigent Health Care and Treatment Act (Article 4438f, Vernon's Texas Civil Statutes). That statute was codified in 1989 as Chapter 61, Health and Safety Code. The revised law is drafted accordingly.

Revised Law

Sec. 1035.111. AUTHORITY TO SUE AND BE SUED. As a governmental agency, the district may sue and be sued in its own name in any court of this state. (Acts 59th Leg., R.S., Ch. 310, Sec. 15 (part).)

Source Law

Sec. 15. [The hospital district created under this Act] … as a governmental agency may sue and be sued in any and all courts of this State in the name of such District.

Revisor's Note

(End of Subchapter)

Section 13, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides authority for the "State Board of Health, the State Board of Public Welfare, or any other State agency created for a similar purpose" to inspect district facilities and records. The revised law omits Section 13 because various state laws, including Chapters 222 and 241, Health and Safety Code, provide the necessary inspection authority to appropriate state agencies. The omitted law reads:

Sec. 13. After the creation and establishment of said District, it shall be subject to inspection by any duly authorized representative of the State Board of Health, the State Board of Public Welfare, or any other State agency created for a similar purpose, and the resident officers shall admit such representatives into all District facilities and give them access on demand to all records, reports, books, papers and accounts pertaining to said District.

[Sections 1035.112-1035.150 reserved for expansion]

SUBCHAPTER D. CHANGE IN BOUNDARIES

Revised Law

Sec. 1035.151. EXPANSION OF TERRITORY; BOARD ORDER. (a) The board may order an election on the question of:

(1) expanding the district's boundaries to include all of the territory in DeWitt County that is not included in the Yoakum Hospital District;

(2) the assumption by the additional territory of a proportionate share of district debts; and

(3) the imposition of taxes in the territory to be added to the district.

(b) Subsequent elections may be held on the same issue. (Acts 59th Leg., R.S., Ch. 310, Secs. 1B(a), (h) (part).)

Source Law

Sec. 1B. (a) The Board of Directors shall order an election on the question of expanding the District's boundaries to include all of the territory in DeWitt County that is not included in the Yoakum Hospital District, the assumption of a proportionate share of District debts, and the levy of taxes in the territory to be added to the District.

(h) [If the election results are not favorable to the proposition to expand the District,] subsequent elections may be held on the same issue.

Revisor's Note

Section 1B(a), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that the board "shall order an election on the question of expanding the District's boundaries." The revised law omits "shall" as executed because the district held an election to expand the district's boundaries, which failed.

Revised Law

Sec. 1035.152. ANNEXATION OF TERRITORY; PETITION. (a) The district may annex one or more tracts of territory in accordance with the method provided by this subchapter.

(b) A registered voter who resides in a defined territory may file a petition with the board requesting inclusion of the territory in the district. The territory:

(1) must be contiguous to the district's boundaries or to territory to be annexed under this subchapter; and

(2) may not be located in the boundaries of another district or a district for which the legislature has enacted enabling legislation.

(1) describe the territory to be annexed; and

(2) be signed by the lesser of:

(A) at least 100 registered voters who reside in that territory; or

(B) a majority of the registered voters.

(d) The board may act simultaneously on several petitions for annexation. If more than one petition requests annexation of the same territory, the board must act on the first petition filed.

(e) The board may not amend a petition. (Acts 59th Leg., R.S., Ch. 310, Secs. 1C(a), (b), (c) (part), (d) (part).)

Source Law

Sec. 1C. (a) The District may annex one or more tracts of territory in accordance with the method prescribed by this section.

(b) Registered voters who reside in a defined territory that is contiguous to the District boundaries or to territory to be annexed under this section and that is not within the boundaries of another district or a district for which the legislature has enacted enabling legislation, may file a petition with the Board of Directors requesting the inclusion of the territory in the District. The petition must describe the territory to be annexed and must be signed by at least 100 registered voters who reside in that territory or a majority of the registered voters, whichever is less.

(c) The Board may act simultaneously on several petitions. If more than one petition requests annexation of the same territory, the Board shall act on the first petition filed. …

(d) … The Board may not amend a petition.

Revised Law

Sec. 1035.153. APPROVAL OR DENIAL OF ANNEXATION PETITION. (a) If the board finds that annexation of territory into the district is in the district's best interest, the board shall, not later than the 90th day after the date the finding is made:

(1) approve the petition filed under Section 1035.152; and

(2) order an election on the question of annexing the territory.

(b) If the board finds that annexation is not in the district's best interest, the board shall deny the petition filed under Section 1035.152. (Acts 59th Leg., R.S., Ch. 310, Sec. 1C(d) (part).)

Source Law

(d) If the Board finds that annexation of the territory into the District is in the best interest of the District, the Board shall, not later than the 90th day after the date on which the finding is made, approve the petition and order an election on the question of annexing the territory. If the Board finds that annexation is not in the best interest of the District, the Board shall deny the petition… .

Revised Law

Sec. 1035.154. ELECTION ORDER. (a) The order calling an election under this subchapter must state:

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

(2) the date of the election;

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

(4) the location of the polling places.

(b) The board shall order an annexation election required by this subchapter so that the territory included in each approved annexation petition is allowed to vote separately on inclusion in the district. (Acts 59th Leg., R.S., Ch. 310, Secs. 1B(b), 1C(c) (part), (e).)

Source Law

[Sec. 1B]

(b) The order calling the election must state:

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

(2) the date of the election;

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

(4) the location of the polling places.

[Sec. 1C]

(c) … The Board shall order the election required by this section so that the territory included in each approved petition is allowed to vote separately on inclusion in the District.

(e) The order calling the election must state:

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

(2) the date of the election;

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

(4) the location of the polling places.

Revised Law

Sec. 1035.155. ELECTION DATE. (a) The election in the district and the election in the territory to be added or annexed must be held on the same day.

(b) Section 41.001(a), Election Code, does not apply to an election ordered under this section. (Acts 59th Leg., R.S., Ch. 310, Secs. 1B(d) (part), (g), 1C(g) (part), (j).)

Source Law

[Sec. 1B]

(d) … Section 41.001(a), Election Code, does not apply to an election ordered under this section.

(g) The election in the District and the election in the territory to be added must be held on the same day.

[Sec. 1C]

(g) … Section 41.001(a), Election Code, does not apply to an election ordered under this section.

(j) The election in the District and the election in the territory to be added must be held on the same day.

Revisor's Note

Sections 1B(d) and 1C(g), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, state that an election must be held not less than 35 days nor more than 60 days after the date the election is ordered. The revised law omits those provisions as superseded by Section 3.005, Election Code, applicable to the district under Section 1.002, Election Code. Section 3.005, as amended by Chapter 925, Acts of the 78th Legislature, Regular Session, 2003, requires an election order issued by the authority of a political subdivision to be issued not later than the 62nd day before election day and provides that Section 3.005 supersedes a law outside the Election Code to the extent of any conflict. The omitted law reads:

[Sec. 1B]

(d) The election shall be held not less than 35 days nor more than 60 days after the date on which the election is ordered… .

[Sec. 1C]

(g) The election shall be held not less than 35 days nor more than 60 days after the date on which the election is ordered… .

Revised Law

Sec. 1035.156. NOTICE OF ELECTION. (a) The board shall give notice of an election under this subchapter by publishing once a week for two consecutive weeks a substantial copy of the election order in a newspaper with general circulation in the district and the area to be added or annexed.

(b) The first publication of the notice must appear at least 30 days before the date set for the election. (Acts 59th Leg., R.S., Ch. 310, Secs. 1B(c), 1C(f).)

Source Law

[Sec. 1B]

(c) The Board shall give notice of the election by publishing a substantial copy of the election order in a newspaper with general circulation in the District and the area to be added once a week for two consecutive weeks. The first publication must appear at least 30 days before the date set for the election.

[Sec. 1C]

(f) The Board shall give notice of the election by publishing a substantial copy of the election order in a newspaper with general circulation in the District and the area to be annexed once a week for two consecutive weeks. The first publication must appear at least 30 days before the date set for the election.

Revised Law

Sec. 1035.157. BALLOT. (a) The ballot for an expansion election ordered under Section 1035.151 must be printed to permit voting for or against the proposition: "Expanding the DeWitt Medical District to include all of DeWitt County except that territory included in Yoakum Hospital District, the assumption by the additional territory of its proportionate share of the district's outstanding debts, and the imposition of a tax not to exceed 75 cents on each $100 of valuation of all taxable property in the expanded area of the district."

(b) The ballot for an annexation election ordered under Section 1035.153 must be printed to permit voting for or against the proposition: "Adding (description of territory to be added) to the DeWitt Medical District, the assumption by the additional territory of its proportionate share of the district's outstanding debts, and the imposition of a tax not to exceed 75 cents on each $100 of valuation of all taxable property in the annexed area of the district." (Acts 59th Leg., R.S., Ch. 310, Secs. 1B(e), 1C(h).)

Source Law

[Sec. 1B]

(e) The ballot for the election shall be printed to permit voting for or against the proposition: "Expanding the DeWitt Medical District to include all of DeWitt County except that territory included in Yoakum Hospital District, the assumption by the additional territory of its proportionate share of the district's outstanding debts, and the levy of a tax not to exceed 75 cents on each $100 of valuation of all taxable property in the expanded area of the district."

[Sec. 1C]

(h) The ballot for the election shall be printed to permit voting for or against the proposition: "Adding (description of territory to be added) to the DeWitt Medical District, the assumption by the additional territory of its proportionate share of the district's outstanding debts, and the levy of a tax not to exceed 75 cents on each $100 of valuation of all taxable property in the expanded area of the district."

Revised Law

Sec. 1035.158. ELECTION RESULTS. (a) The district boundaries may be expanded or territory may be annexed to the district under this subchapter only if the expansion or annexation, the assumption of debt, and the imposition of taxes are approved by a majority of the voters voting at:

(1) an election held in the district; and

(2) a separate election held in the territory to be added.

(b) If the election results for an election under this subchapter are not favorable to the proposition to expand the district or to annex the territory, subsequent elections may be held on the same issue. (Acts 59th Leg., R.S., Ch. 310, Secs. 1B(f), (h), 1C(i), (k).)

Source Law

[Sec. 1B]

(f) The District may not be expanded unless the expansion, the assumption of debt, and the levy of taxes are approved by a majority of the voters at an election held in the District and by a majority of the voters at a separate election held in the territory to be added.

(h) If the election results are not favorable to the proposition to expand the District, subsequent elections may be held on the same issue.

[Sec. 1C]

(i) The territory may not be annexed unless the annexation, the assumption of debt, and the levy of taxes are approved by a majority of the voters at an election held in the District and by a majority of the voters at a separate election held in the territory to be added.

(k) If the election results are not favorable to the proposition to annex the territory, subsequent elections may be held on the same issue.

[Sections 1035.159-1035.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 1035.201. DEPOSITORY. (a) The board by resolution shall designate a bank in the county as the district's depository. A designated bank serves for two years and until a successor is designated.

(b) All district money shall be secured in the manner provided for securing county funds. (Acts 59th Leg., R.S., Ch. 310, Sec. 10.)

Source Law

Sec. 10. As soon as practicable [sic] after the election and qualification of the first Board of Directors of said District, said Board shall by resolution designate a bank within the County as the District's depository, and all funds of said District shall be secured in the manner now provided for the security of County funds. Such depository shall serve for a period of two (2) years and until a successor has been selected.

Revisor's Note

Section 10, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, requires the board to select a depository "[a]s soon as practicable [sic] after the election and qualification of the first Board of Directors of said District." The revised law omits the quoted language as executed.

Revised Law

Sec. 1035.202. AUTHORITY TO BORROW MONEY; SECURITY. (a) The board may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time of the loan.

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

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

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

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

(c) A loan for which taxes or bonds are pledged must mature not later than the anniversary of the date the loan is made. A loan for which district revenue is pledged must mature not later than the 10th anniversary of the date the loan is made. (Acts 59th Leg., R.S., Ch. 310, Sec. 12A.)

Source Law

Sec. 12A. (a) The Board may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for District obligations at the time of the loan.

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

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

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

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

(c) A loan for which taxes or bonds are pledged must mature not later than the anniversary of the date on which the loan is made. A loan for which District revenues are pledged must mature not later than the 10th anniversary of the date on which the loan is made.

[Sections 1035.203-1035.250 reserved for expansion]

SUBCHAPTER F. BONDS

Revised Law

Sec. 1035.251. GENERAL OBLIGATION BONDS. The board may issue and sell general obligation bonds authorized by an election in the name and on the faith and credit of the district for any purpose relating to:

(1) the purchase, construction, acquisition, repair, or renovation of buildings or improvements; and

(2) equipping buildings or improvements for hospital purposes. (Acts 59th Leg., R.S., Ch. 310, Sec. 12(a) (part).)

Source Law

Sec. 12. (a) The Board of Directors shall have the power and authority to issue and sell, as the obligations of the District, and in the name and upon the faith and credit of the District, general obligation bonds authorized by an election for the purchase, construction, acquisition, repair or renovation of buildings and improvements and equipping the same for hospital purposes and for any or all of such purposes… .

Revised Law

Sec. 1035.252. TAX TO PAY GENERAL OBLIGATION BONDS. (a) At the time general obligation bonds are issued under Section 1035.251, an ad valorem tax shall be imposed 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 imposed for the district may not in any year exceed 75 cents on each $100 valuation of all taxable property in the district. (Acts 59th Leg., R.S., Ch. 310, Sec. 12(a) (part).)

Source Law

(a) … At the time of issuance of any general obligation bonds, sufficient annual tax shall be levied 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 a rate of seventy-five cents (75¢) on each One Hundred Dollar valuation of all taxable property within the District in any one year.

Revisor's Note

Section 12(a), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, requires the levy of a tax to pay the principal of and interest on bonds. The revised law specifies that the tax is an "ad valorem" tax because it is clear from the source law that the tax is a property tax and "ad valorem" is the term most commonly used to refer to a property tax.

Revised Law

Sec. 1035.253. GENERAL OBLIGATION BOND ELECTION. (a) The district may issue general obligation bonds only if the bonds are authorized by a majority of the district voters voting in an election called for that purpose and ordered by the board on its own motion.

(b) The election shall be conducted in accordance with Chapter 1251, Government Code. (Acts 59th Leg., R.S., Ch. 310, Secs. 6 (part), 12(c).)

Source Law

Sec. 6. … all bond elections shall be ordered and the returns thereof shall be canvassed by said Board of Directors.

[Sec. 12]

(c) No general obligation bonds shall be issued by the District until authorized by a majority vote of the District voters voting in an election called by the Board of Directors on its own motion, and the election shall be conducted in accordance with Chapter 1251, Government Code.

Revisor's Note

Section 6, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that "the [election] returns thereof shall be canvassed by said Board of Directors." The revised law omits the quoted language because it duplicates Section 67.002, Election Code, which requires the governing body of a political subdivision that orders an election to canvass the returns.

Revised Law

Sec. 1035.254. EXECUTION OF BONDS. (a) The board president shall execute district bonds in the district's name.

(b) The board secretary shall countersign the bonds. (Acts 59th Leg., R.S., Ch. 310, Sec. 12(b) (part).)

Source Law

(b) District bonds shall be executed in the name of the District and on its behalf by the president of the Board of Directors, countersigned by the secretary of the Board, and … .

Revisor's Note

Section 12(b), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds are subject to the requirements of Chapter 1202, Government Code, that relate to bond approval by the attorney general and registration of the bonds by the comptroller. The revised law omits the provision because it duplicates provisions of general law. Section 1202.003(a), Government Code, requires the 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. Those sections apply to district bonds by application of Section 1202.001, Government Code. The omitted law reads:

(b) [District bonds] … shall be subject to the same requirements in the manner of approval by the Attorney General of the State of Texas and the registration by the Comptroller of Public Accounts of the State of Texas as are provided by Chapter 1202, Government Code… .

Revised Law

Sec. 1035.255. INVESTMENT OF BOND PROCEEDS. Until the proceeds from the sale of district bonds are needed to carry out the bond purpose, the proceeds may be:

(1) invested in direct obligations of the United States; or

(2) placed on time deposit. (Acts 59th Leg., R.S., Ch. 310, Sec. 12(b) (part).)

Source Law

(b) … Until the time the bond proceeds are needed to carry out the bond purpose, the proceeds may be invested in direct obligations of the United States of America or may be placed on time deposit, or both.

Revised Law

Sec. 1035.256. REVENUE BONDS. (a) The board may issue and sell revenue bonds in the name and on the faith and credit of the district to purchase, construct, acquire, repair, renovate, or equip buildings or improvements for district purposes.

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

(d) The bonds must be issued in the manner provided by Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049, Health and Safety Code, for the issuance of revenue bonds by a county hospital authority. (Acts 59th Leg., R.S., Ch. 310, Sec. 12(e).)

Source Law

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

Revisor's Note

(End of Subchapter)

(1) Section 12(a), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds shall be sold at the time, in the manner, at the price, and on the terms provided by the board. The revised law omits that provision because it duplicates or is 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. Those sections apply to district bonds by application of Section 1201.002, Government Code. The omitted law reads:

(a) … The bonds shall be sold at the time or times, in the manner, at the price and on the terms as may be determined by the Board… .

(2) Section 12(d), Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that the district may issue refunding bonds without an election and that the bonds shall be issued in accordance with Chapter 1207, Government Code. The revised law omits the provisions because Chapter 1207, which applies to the district by its own terms, provides general authority for an issuer, including a hospital district, to issue refunding securities, and Section 1207.003, Government Code, authorizes an issuer to issue refunding bonds without an election. The omitted law reads:

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

(3) Section 14, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds are legal and authorized investments for certain entities. The revised law omits the provision as unnecessary. As to several of the entities listed, Section 14 has been superseded and impliedly repealed. Investments in securities by banks are regulated by Section 34.101, Finance Code (enacted in 1995 as Section 5.101, Texas Banking Act (Article 342-5.101, Vernon's Texas Civil Statutes)). Investments in securities by savings banks are regulated by Section 93.001(c)(10), Finance Code (enacted in 1993 as Section 7.15(10), Texas Savings Bank Act (Article 489e, Vernon's Texas Civil Statutes)). Investments in securities by trust companies are regulated by Section 184.101, Finance Code (enacted in 1997 as Section 5.101, Texas Trust Company Act (Article 342a-5.101, Vernon's Texas Civil Statutes)). Investments in securities by building and loan associations (now called savings and loan associations) are regulated by Sections 63.002 and 64.001, Finance Code. As to the remaining entities listed, Section 14 is superseded by Section 1201.041, Government Code, enacted as Section 9, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes). While Section 14 lists "guardians" and Section 1201.041 does not, the latter statute includes "fiduciaries" and a guardian is a fiduciary. Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code. The omitted law reads:

Sec. 14. All bonds issued by said District shall be and are hereby declared to be legal and authorized investments for banks, savings banks, trust companies, building and loan associations, insurance companies, fiduciaries, trustees, guardians, and for the sinking funds of cities, towns, villages, counties, school districts or other political corporations or subdivisions of the State of Texas; and … .

(4) Section 14, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that district bonds may secure certain deposits. Although Section 14 does not specifically mention the deposits the bonds are eligible to secure, the only deposits they could secure would be deposits of public funds of this state or political subdivisions of this state. As such, the revised law omits the provision as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions. The omitted law reads:

Sec. 14. … such bonds shall be lawful and sufficient security for deposits to the extent of their face value when accompanied by all unmatured coupons pertinent thereto.

[Sections 1035.257-1035.300 reserved for expansion]

SUBCHAPTER G. TAXES

Revised Law

Sec. 1035.301. 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) meet the requirements of district bonds;

(2) provide for the district's maintenance and operating expenses;

(3) make improvements and additions to the district's hospitals or hospital system; and

(4) acquire necessary sites by gift, purchase, lease, or condemnation. (Acts 59th Leg., R.S., Ch. 310, Sec. 8 (part).)

Source Law

Sec. 8. Upon the creation of such District, the Board of Directors shall have the power and authority, and it shall be their duty, to levy on all property subject to District taxation for the benefit of the District, a tax . . . for the purposes of: (1) meeting the requirements of the District's bonds; (2) providing for the District's maintenance and operating expenses; and (3) making improvements and additions to its hospitals or hospital system, and for the acquisition of the necessary sites therefor, by gift, purchase, lease or condemnation. . . .

Revisor's Note

Section 8, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that "[u]pon the creation of such District," the board shall impose taxes. The revised law omits the quoted language as executed.

Revised Law

Sec. 1035.302. TAX RATE. The board shall impose the tax at a rate not to exceed 75 cents on each $100 valuation of all taxable property in the district. (Acts 59th Leg., R.S., Ch. 310, Sec. 8 (part).)

Source Law

Sec. 8. . . . [the Board of Directors shall … levy … a tax …] at a rate not to exceed seventy-five cents (75¢) on the One Hundred Dollar valuation of all taxable property within such District, … .

Revised Law

Sec. 1035.303. TAX ASSESSOR-COLLECTOR. The board may:

(1) appoint a tax assessor-collector for the district; or

(2) contract for the assessment and collection of taxes as provided by the Tax Code. (Acts 59th Leg., R.S., Ch. 310, Sec. 9 (part).)

Source Law

Sec. 9. … The Board may provide for the appointment of a tax assessor-collector for the District or may contract for the assessment and collection of taxes as provided by the Tax Code.

Revisor's Note

Section 9, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that the Tax Code governs the appraisal, assessment, and collection of district taxes. The revised law omits that provision because Section 1.02, Tax Code, requires all taxing units of government to administer the assessment and collection of an ad valorem tax in conformity with Title 1, Tax Code. The omitted law reads:

Sec. 9. The Tax Code governs the appraisal, assessment, and collection of District taxes… .

Revisor's Note

(End of Chapter)

(1) Section 2, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that the act does not provide for the transfer of property or assumption of certain debt. The revised law omits that provision as executed. The omitted law reads:

Sec. 2. … Since there is no hospital, hospital system or hospital facilities of any nature presently owned by DeWitt County or any city or town within the boundaries of said District, no provisions are made herein for the transfer of properties or equipment or the assumption of outstanding indebtedness heretofore incurred for hospital purposes… .

(2) Section 17, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that the act is severable. The revised law omits that provision because it duplicates Section 311.032, Government Code (Code Construction Act), which provides that a provision of a statute is severable from each other provision of the statute that can be given effect. The omitted law reads:

Sec. 17. … If any provision of this Act should be invalid, such fact shall not affect the authorization for the creation of the District or the validity of any other provisions of this Act, and the Legislature hereby declares that it would have created the District and enacted the valid provisions of this Act notwithstanding the invalidity of any other provision or provisions hereof.

(3) Section 18, Chapter 310, Acts of the 59th Legislature, Regular Session, 1965, provides that public notice of enactment of the statute was provided in a manner that satisfies the requirements of the Texas Constitution. The revised law omits that section as executed. The omitted law reads:

Sec. 18. Proof of publication of the constitutional notice required in the enactment hereof under the provisions of Section 9, Article IX, Constitution of the State of Texas, has been made in the manner and form provided by law pertaining to the enactment of Local and Special Laws and is hereby found and declared to be proper and sufficient to satisfy such requirement.


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